Company began operations in 2019 and determined its ending inventory at cost and at lower-of-LIFO cost-or-market at December 31, 2019, and December 31, 2020. This information is presented below:
Cost Lower-of-Cost-or-Market
12/31/19 $356,000 $327,000
12/31/20 420,000 395,000
(a) Prepare the journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and a perpetual inventory system (cost-of-goods-sold method) is used. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/19 12/31/20
(b) Prepare journal entries required at December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market under a perpetual system (loss method is used). (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit 12/31/19 12/31/20
(c) Which of the two methods above provides the higher net income in each year?
Answer:
1. 12/31/19
Dr Cost of Goods Sold29,000
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Cost of Goods Sold 4,000
2. 12/31/19
Dr Loss due to market 29,000
Decline of Inventory
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Loss due to market 4,000
Decline of Inventory
C) Both the two methods provides the same net income each year
Explanation:
1. Preparation of the journal entries for both December 31, 2019, and December 31, 2020, assuming that the inventory is recorded at market, and perpetual inventory system
First step is to compute for inventory to market for December 31, 2019 and December 31, 2020
December 31, 2019
Cost of inventory at 12/31/19 $356,000
Less:Lower of cost or market at 12/31/19 (327,000)
Allowance amount needed to reduce inventoryto market (a)$29,000
December 31, 2020
Cost of inventory at 12/31/20 $420,000
Less: Lower of cost or market at 12/31/20(395,000)
Allowance amount needed to reduce inventoryto market (b)$25,000
Second step is to find the Recovery of previously recognized loss amount
Recovery of previously recognized loss = (a) – (b)
Recovery of previously recognized loss= $29,000 - $25,000
Recovery of previously recognized loss= $4,000
Now let prepare the Journal entry for December 31, 2019 and December 31, 2020
12/31/19
Dr Cost of Goods Sold29,000
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Cost of Goods Sold 4,000
2. Preparation for the journal entries for both Dec. 31, 2019 and Dec 31, 2020,assuming that the inventory is recorded at market under a perpetual system
12/31/19
Dr Loss due to market 29,000
Decline of Inventory
Cr Allowance to reduce29,000
Inventory to Market
12/31/20
Dr Allowance to Reduce 4,000
Inventory to Market
Cr Loss due to market 4,000
Decline of Inventory
C) Both the two methods provides the same net income each year
Kalani is an account executive with a medical device company that sells sophisticated camera equipment used in surgical procedures such as knee and hip surgery. Therefore, she primarily works with orthopedic surgeons and hospital surgical departments to promote her company's products. Kalani's territory includes five counties in the southwestern part of Tennessee. Kalani can easily visit each customer account once a month to maintain contact. What is the primary difference between business markets and the consumer markets described by Kalani's customer accounts
Answer:
The key difference throughout the particular circumstance is defined throughout the subsection following.
Explanation:
Fewer clients than consumer businesses have been composed of corporate sectors. Since consumers throughout the business community are only found throughout hospitals for treatment, they have become less frequent, whereas consumers mostly in the commercial market include customers across the world, unlike pharmacies where there would be some very buyers.Eric is an inventory manager at a garment manufacturing firm. How should he plan the ordering of inventory? A. He should order less inventory to save on inventory storage cost and ordering cost. B. He should order the exact inventory by forecasting demand. C. He should order excess inventory without calculating the requirement. D. He should order inventory as the requirement arises and avoid planning inventory storage.
Answer:
B
Explanation:
i just took the test and got it correct
B. He should order the exact inventory by forecasting demand.
Explanation:
PLATOAnswer:
On January 1, 2021, Kat Corp. granted an employee an option to purchase 60,000 shares of Kat's $5 par common stock at $20 per share. The options became exercisable on December 31, 2022, after the employee completed two years of service. The option was exercised on January 10, 2023. The market prices of Kat's stock were as follows: January 1, 2021, $30; December 31, 2022, $50; and January 10, 2023, $45. An option pricing model estimated the value of the options at $8 each on the grant date. For 2021, Kat should recognize compensation expense of: a. $ 0. b. $ 240,000. c. $ 300,000. d. $ 600,000
Answer:
b. $ 240,000
Explanation:
Calculation for what Kat should recognize as compensation expenses
Using this formula
Compensation expenses= (Purchase shares ×Value of options)/ Years of Service
Let plug in the formula
Compensation expenses=(60,000 shares
x $8 per option) / 2 years of service
Compensation expenses=480,00/2 years of service
Compensation expenses= = 240,000
Therefore what Kat should recognize as compensation expenses is 240,000
It is November 1 of Year 1. Sales for Corbin Company for November and December of Year 1 and January of Year 2 are forecasted to be as follows: November, 400,000; December 600,000; January, 200,000 On average, cost of goods sold is 70% of sales. During this period, Corbin Company expects inventory levels to remain constant. This means that inventory purchases are expected to equal the amount of cost of goods sold. 40% of purchases are for cash. Of the credit purchases, 5% are paid during the month of the purchase, 65% in the month following the purchase, and 30% in the second month following the purchase. Sales for September and October of Year 1 were 100,000 and 150,000, respectively. What is the forecasted amount of total cash payments for November of Year 1
Answer: $173,950
Explanation:
As this is for November, the relevant months will be September, October and November.
30% of credit sales are paid in the second month following the purchase.
65% are paid in the month following it
5% are paid in the same month.
For November therefore, the cash payments will be;
= 30% of September + 65% of October + 5% of November
September
Purchases = 70% * 100,000 = $70,000
Credit Purchases = 60% * 70,000 = $42,000
October
Purchases = 150,000 * 70% = $105,000
Credit Purchases = 105,000 * 60% = $63,000
November
Purchases = 400,000 * 70% =$280,000
Credit Purchases = 280,000 * 60% = $168,000
Cash Payments in November for credit purchases = (30% * 42,000) + (65% * 63,000) + (5% * 168,000)
= $61,950
Remember that 40% of purchases in a month are paid for in cash. The total cash payment for November is;
Total cash payments in November = Cash payment for credit purchases + Cash payment for purchases bought in cash in November
= 61,950 + ( 40% * 280,000)
= $173,950
Which of the following provides the correct sequence in the marketing research process? 1. defining the problem, analyzing the situation, getting problem-specific data, interpreting the data, solving the problem 2. analyzing the situation, defining the problem, getting problem-specific data, interpreting the data, solving the problem 3. getting problem-specific data, interpreting the data, defining the problem, solving the problem, analyzing the situation 4. analyzing the situation, getting problem-specific data, interpreting the data, defining the problem, solving the problem 5. getting problem-specific data, interpreting the data, analyzing the situation, defining the problem, solving the problem
Answer:
Marketing Research Process
The correct sequence is:
1. defining the problem, analyzing the situation, getting problem-specific data, interpreting the data, solving the problem
Explanation:
A good market research process requires a clear definition of the research problem. This definition is required to focus the research efforts on the identified problem.
Secondly, the situation must be analyzed to enable the development of a good marketing plan, which is the fulcrum of the research.
The third stage is the collection of relevant data that are problem-specific because only relevant data can solve the research questions.
At the fourth stage, the carefully selected and collected data are then analyzed and interpreted in order to create understanding of the issues and help point to solutions based on findings.
Finally, the need to put the identified solutions into action becomes imperative. Information discovered during the research must be put into action to resolve the problem.
A three-year bank CD paying 7.23 percent compounded quarterly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media A three-year bank CD paying 7.03 percent compounded monthly. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media A three-year bank CD paying 7.53 percent compounded annually. Calculate effective annual interest rate (EAR)? (Round answer to 2 decimal places, e.g. 15.25%.) Effective annual rate % eTextbook and Media Which of the above investments has the highest effective annual interest rate (EAR)?
Answer:
Follows are the solution to the question:
Explanation:
m = 4,
EAR = [tex](1 + \frac{0.08}{4}) \times 4-1[/tex]
[tex]= 1 + 0.02 \times 4-1\\\\= 1 + 0.08 -1\\\\= 0.08\\\\[/tex]
The successful quarter cumulative rate of interest = 8.24 \%
In Method 2 use Tool in Texas:
By Using the (ICONV) worksheet:
1)
To pick the worksheet, click ICONV 2.
2)
Its previous meaning will represent the NOM.
3)
To clear the worksheet, click [CLR WORK] 2nd
Continue as below.
Displayed keystrokes:
NOM = previous value 2nd ICONV:
NOM = 0.00 2nd CLRWORK:
8 DAYS: Name = 8.00.
EFF: DownArrow = 0.00
DownArrow: C / Y = meaning previous
4)
DOS: C / Y = 5.00 p.m.
EFF: DownArrow = 0.00
CPT: FRP = 8.24
Prepare summary journal entries to record the following transactions for a company in its first month of operations. a. Raw materials purchased on account, $98,000. b. Direct materials used in production, $41,500. Indirect materials used in production, $18,800. c. Paid cash for factory payroll, $45,000. Of this total, $33,000 is for direct labor and $12,000 is for indirect labor. d. Paid cash for other actual overhead costs, $8,125. e. Applied overhead at the rate of 125% of direct labor cost. f. Transferred cost of jobs completed to finished goods, $63,000. g1. Jobs that had a cost of $63,000 were sold. g2. Sold jobs on account for $90,000.
Answer and Explanation:
The Journal entries are prepared below:-
a. Raw materials inventory Dr, $98,000
To Accounts payable $98,000
(Being raw material is purchased on the account is recorded)
b. Work in process inventory Dr, 41,500
To Raw materials inventory $41,500
(Being direct material used is recorded)
Factory overhead Dr, 18,800
To Raw materials inventory $18,800
(Being indirect material used is recorded)
c. Work in process inventory Dr, $45,000
Factory overhead Dr, $33,000
To Cash $78,000
(Being cash paid is recorded)
d. Factory overhead Dr, $8,125
To Cash $8,125
(Being cash paid is recorded)
e. Work in process inventory Dr, $56,250 (45,000 × 125% )
To Factory overhead $56,250
(Being overhead is recorded)
f. Finished goods inventory Dr, $63,000
To Work in process inventory $63,000
(Being transferred cost is recorded)
g, Cost of goods sold Dr, $63,000
To Finished goods inventory $63,000
(Being cost of goods sold is recorded)
Accounts receivable Dr, $90,000
To Sales $90,000
(Being sales value is recorded)
The city of Ashkelon, on the eastern end of the Mediterranean Sea, is one of the major cities of the Philistines. A powerful merchant family (known henceforth as The Family) of this city has to decide how to allocate its vast but finite resources to further their own wealth and the glory and influence of their state. Some trade routes use camel caravans and go to the southern deserts, where they may trade in salt and gold with the great inland African nations; others may go north and west, oversea by galley, toward the Greeks; others may push their foul-mouthed, humped mounts east, overland toward Sumeria, to trade in spices and the crafted goods specific to that region. Some of the routes are over more arduous terrain than others, so make take longer to pay off (no revenue is realized by The Family until the caravan returns to Ashkelon). The financial costs and returns of each route are as follows (in Phils, the currency of the Philistines):
Route Costs, Period 0 Revenue, Period1 Revenue, Period 2 Revenue, Period 3
African Route -75,000 215,000
Greek Route -50,000 140,000
Sumerian Route -125,000 385,000
Costs are incurred at the end of year zero, and revenues accrue at the end of Periods 1, 2, and 3, for each respective route (for instance, the African caravan returns at the end of period two, at which time its revenue is realized). The discount rate for the shipping company is 5%.
Required:
a. Calculate the NPV, B/C ratio, Payback period, and IRR for each route option.
b. Rank the route options according to NPV, B/C ratio, Payback period, and IRR.
c. If the company had unlimited funds, which trade routes would you recommend the family pursue? Why? Be sure to consider all combinations of routes, including multiple caravans on the same trade route.
d. Given that the family can only invest 150,000 Phils, which combination of trade routes would you recommend pursuing? Why?
Answer:
African Route costs = -75,000, period 1 revenues = 215,000
Greek Route costs = -50,000, period 2 revenues = 140,000
Sumerian Route costs = -125,000, period 3 revenues = 385,000
discount rate = 5%
a) African route:
NPV = -75,000 + 215,000/1.05 = 129,762
B/C ratio = 215/75 = 2.87
Payback = 1 period
IRR = 187%
Greek route:
NPV = -50,000 + 140,000/1.05² = 76,984
B/C ratio = 140/50 = 2.8
Payback = 2 periods
IRR = 67%
Sumerian route
NPV = -125,000 + 385,000/1.05³ = 332,577
B/C ratio = 385/125 = 3.08
Payback = 3 periods
IRR = 45%
b) rank according to:
NPV = Sumerian route, African route, Greek route
B/C ratio = Sumerian route, African route, Greek route
Payback = African route, Greek route, Sumerian route
IRR = African route, Greek route, Sumerian route
c) if the family had unlimited resources, they should invest in the 3 routes since all their NPVs are positive.
d) African and Greek routes since they yield the highest gains (IRR).
When you go to stores or restaurants such as Burger King, Starbucks, or McDonald’s, are you paying for the food, the experience, or both? Explain.
Answer:
Both
Explanation:
I pay for both because I like having a nice environment to enjoy my meal or drinks in. I like starbucks the most becasuse I can sit there with a coffee and a snack and enjoy the space around me. They are always pleasant there.
The laws passed by Congress and by state legislatures are called:
Answer:
Rules
Explanation:
I think I'm right
Answer:
Rules
Explanation:
Yes I think this is right
Blossom Corporation had income from continuing operations of $10,895,300 in 2020. During 2020, it disposed of its restaurant division at an after-tax loss of $194,400. Prior to disposal, the division operated at a loss of $321,800 (net of tax) in 2020 (assume that the disposal of the restaurant division meets the criteria for recognition as a discontinued operation). Blossom had 10,000,000 shares of common stock outstanding during 2020. Prepare a partial income statement for Blossom beginning with income from continuing operations. (Round earnings per share to 2 decimal places, eg. 1.48.)
BLOSSOM CORPORATION
Income Statement (Partial) $
Answer and Explanation:
The preparation of the partial income statement is presented below:
Blossom Corporation
Income Statement (Partial)
For the Year 2020
Particulars Amount (in $)
Income from continuing operations 10,895,300
Income from discontinued operations:
Less:
Loss from disposal of Restaurant net of tax -194,400
Loss from the operation of discontinued -321,800
Total expense -516,200
Net income 10,379,100
Earning per share
Income from continued operations (10,895,300 ÷10,000,000) $1.09
Loss from discontinued operations (516,200 ÷ 10,000,000) ($0.05)
Earning per share $1.04
Thome and Crede, CPAs, are preparing their service revenue (sales) budget for the coming year (2020). The practice is divided into three departments: auditing, tax, and consulting. Billable hours for each department, by quarter, are provided below. Department Quarter 1 Quarter 2 Quarter 3 Quarter 4 Auditing 2,450 1,840 2,330 2,710 Tax 3,130 2,650 2,300 2,800 Consulting 1,640 1,640 1,640 1,640 Average hourly billing rates are auditing $84, tax $94, and consulting $105. Prepare the service revenue (sales) budget for 2020 by listing the departments and showing for each quarter and the year in total, billable hours, billable rate, and total revenue.
Answer and Explanation:
The Preparation of service revenue is prepared below:-
For Quarter 1
Billable Hours Billable rate Total
Auditing 2,450 84 205,800
Tax 3,130 94 294,220
Consulting 1,640 105 172,200
Total 672,220
For Quarter 2
Billable Hours Billable rate Total
Auditing 1,840 84 154,560
Tax 2,650 94 249,100
Consulting 1,640 105 172,200
Total 575,860
For Quarter 3
Billable Hours Billable rate Total
Auditing 2,330 84 195,720
Tax 2,300 94 216,200
Consulting 1,640 105 172,200
Total 584,120
For Quarter 4
Billable Hours Billable rate Total
Auditing 2,710 84 227,640
Tax 2,800 94 263,200
Consulting 1,640 105 172,200
Total 663,040
Now the total revenue is
= $575,860 + $584,120 + $663,040
= $1,823,020
For Quarter 1: The Preparation of service revenue is 672,220
For Quarter 2: 575,860
For Quarter 3: 584,120
For Quarter 4: The total revenue is = $1,823,020
Calculation of Total revenueWhen The Preparation of service revenue is prepared below:-
For Quarter:1 is
Billable Hours Billable rate Total
Auditing 2,450 84 205,800
Tax 3,130 94 294,220
Consulting 1,640 105 172,200
Total 672,220
For Quarter:2 is
Billable Hours Billable rate Total
Auditing 1,840 84 154,560
Tax 2,650 94 249,100
Consulting 1,640 105 172,200
Total 575,860
For Quarter:3 is
Billable Hours Billable rate Total
Auditing 2,330 84 195,720
Tax 2,300 94 216,200
Consulting 1,640 105 172,200
Total 584,120
For Quarter:4 is
Billable Hours Billable rate Total
Auditing 2,710 84 227,640
Tax 2,800 94 263,200
Consulting 1,640 105 172,200
Total 663,040
Now the total revenue is
= $575,860 + $584,120 + $663,040
Therefore, = $1,823,020
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You would like to buy a house that costs $ 350 comma 000$350,000. You have $ 50 comma 000$50,000 in cash that you can put down on the house, but you need to borrow the rest of the purchase price. The bank is offering a 30-year mortgage that requires annual payments and has an interest rate of 8 %8% per year. You can afford to pay only $ 25 comma 580$25,580 per year. The bank agrees to allow you to pay this amount each year, yet still borrow $ 300 comma 000$300,000. At the end of the mortgage (in 30 years), you must make a balloon payment; that is, you must repay the remaining balance on the mortgage. How much will this balloon payment be?
Answer:
$121,012.53
Explanation:
principal = $300,000
APR = 8%
n = 30 years
annual payment = $25,580
assuming that interest is compounded annually, then the annual payment should be = $300,000 / 11.25778 (PV annuity factor, 8%, 30 periods) = $26,648.24
I prepared an amortization schedule to calculate the balloon payment: $121,012.53
GDP is calculated as the total market value of all final goods and services produced in a country during a year. (1) Suppose that in 2019, geologists discover large reserves of oil in Alaska which have a market value estimated at $50 billion at current oil prices. (2) Oil companies rush in and spend $1 billion to hire workers and position equipment to begin exploratory pumping during the same year. (3) One company accidentally spills some oil into a bay and by the end of the year pays $1 billion to other companies to clean it up. (4) The oil spill kills thousands of birds, seals, and other wildlife. What would be the effect of each of these 4 events on the US GDP for 2019 and why
Answer:
$2 billion
The amounts that would be included in GDP include the cost of hiring workers and the cost of cleaning up the spill.
1 billion + 1 billion = $2 billion
The negative effects of the oil spill would not be included in GDP because effects of population is not included in GDP.
Also, the value of the oil discovered would not be included in GDP because it was not sold in the current year.
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
services not rendered to oneself
Activities not reported to the government
illegal activities
sale or purchase of used products
sale or purchase of intermediate products
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
The FOMC has instructed the FRBNY Trading Desk to purchase $820 million in U.S. Treasury securities. The Federal Reserve has currently set the reserve requirement at 5 percent of transaction deposits. Assume U.S. banks withdraw all excess reserves and give out loans. a. Assume also that borrowers eventually return all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply? b. What is the full effect of this purchase on bank deposits and the money supply if borrowers return only 95 percent of these funds to their banks in the form of transaction deposits? (For all requirements, enter your answers in billions. Round your final answers to 2 decimal places. (i.e., 5,500,000,000 should be entered as 5.50).)
Answer: See explanation
Explanation:
a. . Assume also that borrowers eventually return all of these funds to their banks in the form of transaction deposits. What is the full effect of this purchase on bank deposits and the money supply?
Based on the above scenario, there'll be an increase in bank deposits and money supply by $16.4 billion.
= (1/5%) × $820 million
= (1/0.05) × $820 million
= 20 × $820 million
= 16,400,000,000
= 16.4 billion
b.What is the full effect of this purchase on bank deposits and the money supply if borrowersreturn only 95 percent of these funds to their banks in the form of transaction deposits?
This will lead to an increase in the bank deposits and money supply by $8.2 billion
= [1/(0.05+(1-0.95)] × $820 million
= [1/0.05+0.05] × $820 million
= (1/0.1) × $820 million
= 10 × $820 million
= $8.2 billion
_______ policy involves government changes to spending or taxation to affect the economy.
Budgetary
Fiscal
Inflation
Monetary
Answer:
The answer is B: Fiscal
Explanation:
Fiscal policy involves changes in the overall government spending and/or the overall level of taxation and the budgetary position.
Edge2020
Good luck, Stay safe!
Fiscal policy involves government changes to spending or taxation to affect the economy.
What is Fiscal policy?Fiscal policy occurs when government make use o policies like tax to increase or improve the nations economy.
The spendings of the government can also be used as a policy to improve the economy.
Therefore, Fiscal policy involves government changes to spending or taxation to affect the economy.
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Jason Day Company had bonds outstanding with a maturity value of $300,000. On April 30, 2020, when these bonds had an unamortized discount of $10,000, they were called in at 104. To pay for these bonds, Day had issued other bonds a month earlier bearing a lower interest rate. The newly issued bonds had a life of 10 years. The new bonds were issued at 103 (face value $300,000).
Required:
Compute the gain or loss.
Answer: Loss of $22,000
Explanation:
Gain (loss) = Net Carrying Value of Bonds recalled - Price bond called at
Net Carrying Value of Bonds
= Par value - Unamortized discount
= 300,000 - 10,000
= $290,000
Gain (loss) = 290,000 - (300,000 * 104)
= ($22,000)
Wally Company makes dog beds. Last year Wally incurred the following costs related to quality control. What is Wally Company's cost of quality for internal failures? 1. Repairs for dog beds under warranty 2,127 2. Seamstress training 822 3. Wages of part-time inspector of products 1,314 4. Cost of replacements given to customers for defective dog beds 1,460 5. Product liability insurance 3,931 6. Inspection of sewing machines as part of routine maintenance 3,295 7. Inspection of fabric and thread for defects 1,661 8. Repairing defective dog beds prior to sale 1,651
Answer: $1,651
Explanation:
The only cost for Internal failure is Repairing the dog beds prior to sale which is $1,651.
The other costs are classified as;
Repairs for dog beds under warranty - External failure cost Seamstress training. - Prevention cost Wages of part-time inspector of products - Appraisal costCost of replacements given to customers for defective dog beds - External failure cost Product liability insurance - External failure costInspection of sewing machines as part of routine maintenance -Appraisal costInspection of fabric and thread for defects - Appraisal costWally Company's cost of quality for internal failures is $1,651
Calculation of the cost of quality for internal failure:= repairing defective dog
= $1,651
We know that
Repairs for dog beds under warranty - External failure cost
Seamstress training. - Prevention cost
Wages of part-time inspector of products - Appraisal cost
Cost of replacements given to customers for defective dog beds - External failure cost
Product liability insurance - External failure cost
Inspection of sewing machines as part of routine maintenance -Appraisal cost
Inspection of fabric and thread for defects - Appraisal cost
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Foyle Architects incorporated as licensed architects on April 1, 2014. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $21,341 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $445 per week, payable monthly.
2 Paid office rent for the month $1,067.
3 Purchased architectural supplies on account from Burlington Company $1,541.
10 Completed blueprints on a carport and billed client $2,253 for services.
11 Received $830 cash advance from J. Madison to design a new home.
20 Received $3,320 cash for services completed and delivered to M. Svetlana.
30 Paid secretary-receptionist for the month $1,780.
30 Paid $356 to Burlington Company for accounts payable due.
1.) Journalize the transactions. (If no entry is required, indicate "No entry". Record journal entries in the order presented in the problem.)
2.) Post to the ledger T-accounts. (Post entries in the order of journal entries presented in the question.)
3.) Prepare a trial balance on April 30, 201
Answer:
1)
April 1 Stockholders invested $21,341 cash in exchange for common stock of the corporation.
Dr cash 21,341
Cr common stock 21,341
April 1 Hired a secretary-receptionist at a salary of $445 per week, payable monthly.
no journal entry required
April 2 Paid office rent for the month $1,067.
Dr rent expense 1,067
Cr cash 1.067
April 3 Purchased architectural supplies on account from Burlington Company $1,541.
Dr supplies 1,541
Cr accounts payable 1,541
April 10 Completed blueprints on a carport and billed client $2,253 for services.
Dr accounts receivable 2,253
Cr service revenue 2,253
April 11 Received $830 cash advance from J. Madison to design a new home.
Dr cash 830
Cr unearned revenue 830
April 20 Received $3,320 cash for services completed and delivered to M. Svetlana.
Dr cash 3,320
Cr service revenue 3,320
April 30 Paid secretary-receptionist for the month $1,780.
Dr wages expense 1,780
Cr cash 1,780
April 30 Paid $356 to Burlington Company for accounts payable due.
Dr accounts payable 356
Cr cash 356
2)
Cash
debit credit
21,341
1.067
830
3,320
1,780
356
22,288
accounts receivable
debit credit
2,253
supplies
debit credit
1,541
accounts payable
debit credit
1,541
356
1,185
unearned revenue
debit credit
830
common stock
debit credit
21,341
service revenue
debit credit
2,253
3,320
5,573
rent expense
debit credit
1,067
wages expense
debit credit
1,780
3) debit credit
cash $22,288
accounts receivable $2,253
supplies $1,541
accounts payable $1,185
unearned revenue $830
common stock $21,341
service revenue $5,573
rent expense $1,067
wages expense $1,780
totals $28,929 $28,929
Which applicants would be best qualified for the jobs based on educational level?
O Applicant 2 is qualified to be a Radiologist, applicant 1 is qualified to be an Orderly, and applicants 2, 3, and 4
are qualified to be Biomedical Engineers.
O Applicant 3 is qualified to be a Radiologist, applicant 2 is qualified to be an Orderly and applicants 1 and 4 are
qualified to be Biomedical Engineers
O Applicant 1 is qualified to be a Radiologist, applicant 4 is qualified to be an Orderly, and applicants 2 and 3 are
qualified to be Biomedical Engineers.
O Applicant 4 is qualified to be a Radiologist, applicant 3 is qualified to be an Orderly, and applicants 1, 2, and
are qualified to be Biomedical Engineers
Answer:
Applicant 4 is qualified to be a Radiologist, applicant 3 is qualified to be an Orderly, and applicants 1, 2, and 4 are qualified to be Biomedical Engineers.
Explanation:
Applicant 4 is qualified to be a Radiologist, applicant 3 is qualified to be an Orderly, and applicants 1, 2, who are qualified to be Biomedical Engineers would be best qualified for the jobs based on educational level.
What is a job?Body of reporting, particularly a particular task carried out as part of one's daily duties or for a set fee. As a means of generating income and gaining access to a variety of crucial and – anti-goods, systems, and exercises, work plays a significant role in the framing of a patient's identity development.
In this, there will be an application that will be some changes with the person who is qualified. This can be with respect to the carriers that were like radiologists, Biomedical Engineers. As the person will be the one who will be educated will get the job.
Learn more about the job, Here:
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Innovative Consulting has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
Transactions
Mar. 1 Paid rent for the month, $4,000.
3 Paid advertising expense, $1,350.
5 Paid cash for supplies, $1,800.
6 Purchased office equipment on account, $11,500.
10 Received cash from customers on account, $8,600.
15 Paid creditor on account, $3,180.
27 Paid cash for miscellaneous expenses, $700.
30 Paid telephone bill for the month, $550.
31 Fees earned and billed to customers for the month, $37,200.
31 Paid electricity bill for the month, $830.
31 Paid dividends, $2,000.
Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Zenith Consulting Co.
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Office Equipment
LIABILITIES
21 Accounts Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Rent Expense
52 Advertising Expense
53 Utilities Expense
54 Miscellaneous Expense
Answer:
Innovative ConsultingGeneral JournalDate Account Details Debit Credit
Mar. 1 51 Rent Expense $4,000
11 Cash $4,000
To record the payment for rent for the month.
Mar. 3 52 Advertising Expense $1,350
11 Cash $1,350
To record the payment for advertising expense.
Mar. 5 13 Supplies $1,800
11 Cash $1,800
To record the payment for supplies.
Mar. 6 14 Office Equipment $11,500
21 Accounts Payable $11,500
To record the purchase of office equipment on account.
Mar. 10 11 Cash $8,600
12 Accounts Receivable $8,600
To record the receipt of cash from customers.
Mar. 15 21 Accounts Payable $3,180
11 Cash $3,180
To record the payment of creditor on account.
Mar. 27 54 Miscellaneous Expense $700
11 Cash $700
To record the payment of Miscellaneous expense.
Mar. 30 53 Utilities Expense $550
11 Cash $550
To record the payment of telephone bill.
Mar. 31 2 Accounts Receivable $37,200
41 Fees Earned $37,200
To record fees earned and billed to customers for the month.
Mar. 31 53 Utilities Expense $830
11 Cash $830
To record the payment of electricity bill.
Mar. 31 33 Dividends $2,000
11 Cash $2,000
To record the payment of dividends to shareholders.
Explanation:
Innovative Consulting records business transactions as they occur on a daily basis in the general journal. Journal entries are the first set of records in the accounting books. They identify the accounts to be debited and the accounts to be credited in the general ledger.
Sparky Corporation uses the FIFO method of process costing. The following information is available for February in its Molding Department: Units: Beginning Inventory: 38,000 units, 100% complete as to materials and 55% complete as to conversion. Units started and completed: 123,000. Units completed and transferred out: 161,000. Ending Inventory: 36,500 units, 100% complete as to materials and 25% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $56,000. Costs in beginning Work in Process - Conversion: $61,850. Costs incurred in February - Direct Materials: $375,730. Costs incurred in February - Conversion: $612,150. Calculate the cost per equivalent unit of conversion.
Answer:
cost per equivalent unit of conversion = $4.10
Explanation:
beginning WIP = 38,000
100% complete for materials
55% complete for conversion, 45% remaining to be completed
units started and completed = 123,000
units completed and transferred out = 161,000 (including 38,000 of beginning WIP)
ending WIP = 36,500
100% complete for materials
25% complete for conversion
equivalent units processed during this period:
materials = 123,000 + 36,500 = 159,500 EUP
conversion costs = (38,000 x 0.45) + 123,000 + (36,500 x 025%) = 149,225 EUP
cost per equivalent unit of conversion = $612,150 / 149,225 EUP = $4.102194672 ≈ $4.10
g A company is evaluating a project requiring an initial cash outflow of $2 million. The investment will generate cash flows for a period of 5 years. If the firm launches the project immediately, then the after-tax cash flows will be $1 million per year. Alternatively, if the firm delays the launch by one year, then there is a 65% likelihood that the annual after-tax cash flows will be $1.5 million and a 35% likelihood that they will be $500,000. Using a discount rate of 10%, what is the value of the option to wait
Answer:
Explanation:
NPV of first option = - 2 + 1 / 1.1 + 1 / 1.1² + 1 / 1.1³ + 1 / 1.1⁴ + 1 / 1.1⁵
= -2 + .909 + .826+ .751+.683+ .620 = $1.789
NPV of the second option :--
NPV when annual cash flow is 1.5 million
-2 / 1.1 + 1.5 /1.1² + 1.5/1.1³ + 1.5 / 1.1⁴ + 1.5 / 1.1⁵ + 1.5 / 1.1⁶
= -1.818 + 1.239 + 1.127+1.024+.931+.846
= -1.818 + 5.167
= 3.349
NPV when annual cash flow is 0.5 million
-2 / 1.1 + .5 /1.1² + .5/1.1³ + .5 / 1.1⁴ + .5 / 1.1⁵ + .5 / 1.1⁶
= - 1.818 + 1.722 = $ -0 .096
NPV = .65 x 3.349 - .35 x .096
= 2.177 - .0336
= $2.1434
value of option wait = $2.1434 - $1.789
= $ 0.3544
cite three real life situations where quadratic equations are illustrated. Formulate quadratic equations out of these situations then describe each.
Answer:
I want to know the sides of a pizza if the width is 9 inches larger than the height and the area is 250 squared inches.
My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.
My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.
Explanation:
To solve this you just have to think on the unknown value and represent it as "X" in the first problem we do not know the length or width but we have a values given between them, so if "x" is the height then the width becomes "x+9" so those two values multiplied become the area.
[tex]x(x+9)=250\\x^{2} +9x=250\\x^{2} +9x-250=0\\[/tex]
With this you just keep solving the others.
My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.
2m as an area and the height is "x"
[tex]x(x+-5)=2\\x^{2} +.5x=2\\x^{2} +.5x-2=0\\[/tex]
My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.
57,600 is the area and width will be "x"
[tex]x(x+200)=57,600\\x^{2} +200x=57,600\\x^{2} +200x-57,600=0\\[/tex]
I. Journalize the following transactions: 1. Madison Co. purchased $225,500 of raw materials on account. 2. Actual manufacturing overhead costs include: a. Utilities : $2,800 b. Depreciation on equipment: $12,650 c. Repairs on account: $3,200 d. Rent paid, $6,000 e. Insurance (prepaid policy): $3,350 3. Madison Co. issued $75,500 of material to Process A. 4. Assigned $18,000 is factory labor, of which $12,000 is indirect labor 5. Manufacturing Overhead costs are applied at 82% of material issued 6. Balance in WIP – A is transferred to Process –B 7. $51,000 of material is issued to Process – B 8. Assigned $22,000 of factory labor, of which $15,000 is indirect labor 9. Manufacturing overhead costs are applied to Process B at a rate of 62.5% of material issued (to process B) 10. Actual manufacturing overhead costs paid totaled $39,500; manufacturing overhead costs charged to accounts payable totaled $1,500 11. Balance of Process B is transferred to Finished Goods 12. The cost transferred to finished goods included 62,500 units. Calculate the cost per unit (round to hundredths); Madison Co. sold 13,250 units for $79,000 cash; they sold 4,125 units for $24,500 on account 13. Determine over or under-applied manufacturing overhead and prepare adjusting entry.
Answer and Explanation:
Dr raw materials 225000
Cr accounts payable 225000
Dr wages 40000
Cr materials 40000
Dr manufacturing overhead 28000
Cr cash 2800
Cr accumulated depreciation 12650
Cr rent 3200
Cr repairs 6000
Cr prepaid insurance 3350
Work in progress A Dr 75500
Raw material Cr 75500
Work in progress A Dr 6000
Manufacturing overhead Dr 12000
Wages Cr 18000
Work in progress A Dr 61910
Manufacturing overhead cr 61910
cash dr 79500
account receivable dr 24500
Sales cr 104000
cost of goods Dr 64853
Finished goods Cr 64853
Manufacturing overhead Dr 9785
Cost of goods sold Cr 9785
Note
Work in progress A to overhead calculated 82% of 79500=61910
Shirine has been debating between two career pathways in finance. She creates a Venn diagram to compare the two careers. In a Venn diagram, the separate circles contain characteristics unique to each item being compared and the intersection contains characteristics that are common to both items being compared. This is the Venn diagram that Shirine creates:
Which accurately labels the titles in Shirine's diagram?
A) Title 1 should be Investment Career Pathway, and Title 2 should be Banking Career Pathway
B) Title 1 should be Banking Career Pathway, and Title 2 should be Investment Career Pathway
C) Title 1 should be Banking Career Pathway, and Title 2 should be Financial Career Pathway
D) Title 1 should be Financial Management Career Pathway, and Title 2 should be Investment Career Pathway
Answer:
Explanation:
The answer is C.Title 1 should be Banking Career Pathway, and Title 2 should be financial management Career Pathway.
Answer:
C
Explanation:
Just did the test like 20 minutes ago
upo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours32,800 Total fixed manufacturing overhead cost$164,000 Variable manufacturing overhead per machine-hour$ 5 Recently, Job T687 was completed with the following characteristics: Number of units in the job10 Total machine-hours30 Direct materials$ 745 Direct labor cost$1,490 The unit product cost for Job T687 is closest to: (Round your intermediate calculations to 2 decimal places.)
Answer: $253.50 per unit
Explanation:
Total Overhead = Fixed manufacturing Overhead + Variable Manufacturing Overhead
= 164,000 + ($5 * 32,800)
= $328,000
Manufacturing overhead rate per hour = Total Overhead/ Machine hours
= 328,000/32,800
= $10 per hour
Job T687 used 30 machine hours so its manufacturing overhead is;
= 10 * 30
= $300
Job T687 cost = Direct materials + Direct labor cost + Manufacturing overhead
= 745 + 1,490 + 300
= $2,535
There were 10 units in the Job so unit product cost is;
= 2,535/10
= $253.50 per unit
Racket Corporation and Laocoon Corporation create Raccoon Corporation. Racket transfers $600,000 in assets for all of Raccoon's common stock. Racket distributes its remaining assets ($300,000) and the Raccoon common stock to its shareholder, Mia, for all her stock in Racket (basis $950,000) and then liquidates. Laocoon receives all the Raccoon preferred stock for its $400,000 of assets. Laocoon distributes its remaining assets ($300,000) and the Raccoon preferred stock to its shareholder, Carlos, for all his stock in Laocoon (basis $200,000) and then liquidates. What type of acquisition (if any) is this an example of?
Answer:
Type A reorganization
Explanation:
Type A reorganizations are known as statutory mergers or consolidations. This transaction involves 2 corporations, but one of them (Racket) will absorb the other one (Laocoon).
In this case, Mia doesn't have to recognize any loss or gain resulting from this merger, but Carlos has to recognize a gain equal to the remaining assets that were distributed ($300,000).
Alameda Tile sells products to many people remodeling their homes and thinks that it could profitably offer courses on tile installation, which might also increase the demand for its products. The basic installation course has the following (tentative) price and cost characteristics. Tuition $ 800 per student Variable costs (tiles, supplies, and so on) 480 per student Fixed costs (advertising, salaries, and so on) 160,000 per year Required: a. What enrollment will enable Alameda Tile to break even? b. How many students will enable Alameda Tile to make an operating profit of $80,000 for the year? c. Assume that the projected enrollment for the year is 800 students for each of the following (considered independently): 1. What will be the operating profit (for 800 students)? 2. What would be the operating profit if the tuition per student (that is, sales price) decreased by 10 percent? Increased by 20 percent? 3. What would be the operating profit if variable costs per student decreased by 10 percent? Increased by 20 percent? 4. Suppose that fixed costs for the year are 10 percent lower than projected, whereas variable costs per student are 10 percent higher than projected. What would be the operating profit for the year?
Answer:
Alameda Tile
a. The enrollment to enable Alameda Tile to break even = 500 students.
b. To make an operating profit of $80,000, number of students
= 750 students
c. With projected enrollment for the year of 800 students:
1. Operating profit = Total Contribution - Fixed Costs
= ($320 * 800) - $160,000
= $96,000
2. a) Operating Profit, if the tuition per student decreased by 10%.
New selling price = $720 which is $800 * (1 - 10%)
Variable cost 480
Contribution $240
Operating profit = Total Contribution - Fixed Costs
= ($240 * 800) - $160,000
= $32,000
2. b) Operating Profit, if the tuition per student increased by 20%.
New selling price = $960 which is $800 * (1 + 20%)
Variable cost 480
Contribution $480
Operating profit = Total Contribution - Fixed Costs
= ($480 * 800) - $160,000
= $224,000
3. a) Operating Profit, if variable costs per student decreased by 10%.
Selling price = $800
Variable cost 432 $480 * (1 - 10%)
Contribution $368
Operating profit = Total Contribution - Fixed Costs
= ($368 * 800) - $160,000
= $134,400
3. b) Operating Profit, if variable costs per student increased by 20%.
Selling price = $800
Variable cost 576 $480 * (1 + 20%)
Contribution $224
Operating profit = Total Contribution - Fixed Costs
= ($224 * 800) - $160,000
= $19,200
4. Operating profit, if fixed costs reduced by 10% and variable cost increased by 10%:
Selling price = $800
Variable cost 528 $480 * (1 + 10%)
Contribution $272
Operating profit = Total Contribution - Fixed Costs
= ($272 * 800) - $144,000 ($160,000 * (1 - 10%)
= $73,600
Explanation:
a) Data and Calculations:
Tentative Price and Cost Characteristics:
Tuition $ 800 per student
Variable costs (tiles, supplies, and so on) 480 per student
Fixed costs (advertising, salaries, and so on) 160,000 per year
Per unit Tentative
Selling price = $800
Variable cost 480
Contribution $320
b) Computation of break-even point:
To break-even with fixed cost of $160,000, sales unit will be equal to:
Fixed cost/Contribution per unit = $160,000/$320 = 500 students
c) Fixed cost + Target Profit /Contribution per unit:
= ($160,000 + $80,000)/$320
= $240,000/320
= 750 students
