A free enterprise system allows the supply and demand of consumers to determine the success or failure of an economic endeavor.
What is a free enterprise?It should be noted that a free enterprise simply means the freedom of individuals and businesses to regulation.
Here, free enterprise system provides individuals the opportunity to make their own economic decisions without restrictions.
Learn more about free enterprise on:
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Answer:
C.
Explanation:
free enterprise system
The following trial balance was taken from the books of Sheridan Corporation on December 31, 2020.
Account Debit Credit
Cash $8,500
Accounts Receivable 40,700
Notes Receivable 11,200
Allowance for Doubtful Accounts $1,870
Inventory 35,300
Prepaid Insurance 4,720
Equipment 122,600
Accumulated Depreciation--Equip. 14,100
Accounts Payable 10,100
Common Stock 49,100
Retained Earnings 64,550
Sales Revenue 268,000
Cost of Goods Sold 123,900
Salaries and Wages Expense 48,600
Rent Expense 12,200
Totals $407,720 $407,720
At year end, the following items have not yet been recorded.
a. Insurance expired during the year, $2,000.
b. Estimated bad debts, 1% of gross sales.
c. Depreciation on furniture and equipment, 10% per year.
d. Interest at 6% is receivable on the note for one full year.
e. Rent paid in advance at December 31, $5,400 (originally charged to expense).
f. Accrued salaries at December 31, $5,800.
Required:
a. Prepare the necessary adjusting entries.
b. Prepare the necessary closing entries.
Answer:
Sheridan Corporation
a. Adjusting Journal Entries on December 31, 2020:
a. Debit Insurance Expense $2,000
Credit Prepaid Insurance $2,000
To record the insurance expense for the year.
b. Debit Bad Debts Expense $2,680
Credit Accounts Receivable $2,680
To record bad debts written off.
c. Debit Depreciation Expense - Equipment $12,260
Credit Accumulated Depreciation - Equipment $12,260
To record the depreciation expense for the year.
d. Debit Interest Receivable $672
Credit Interest Revenue $672
To record interest revenue receivable on the note.
e. Debit Rent Prepaid $5,400
Credit Rent Expense $5,400
To record rent prepaid, previously recorded as an expense.
f. Debit Salaries and Wages Expense $5,800
Credit Salaries Payable $5,800
To record accrued salaries.
b. Closing Journal Entries on December 31, 2020:
Debit Sales Revenue $268,000
Interest Revenue $672
Credit Income Summary $268,672
To close the revenue accounts to the income summary.
Debit Income Summary $202,040
Credit:
Cost of Goods Sold 123,900
Salaries and Wages Expense 54,400
Rent Expense 6,800
Bad debts Expense 2,680
Insurance Expense 2,000
Depreciation Expense 12,260
To close the expense accounts to the income summary.
Explanation:
a) Data and Calculations:
Sheridan Corporation
Unadjusted Trial Balance as of December 31, 2020:
Account Titles Debit Credit
Cash $8,500
Accounts Receivable 40,700
Notes Receivable 11,200
Allowance for Doubtful Accounts $1,870
Inventory 35,300
Prepaid Insurance 4,720
Equipment 122,600
Accumulated Depreciation--Equip. 14,100
Accounts Payable 10,100
Common Stock 49,100
Retained Earnings 64,550
Sales Revenue 268,000
Cost of Goods Sold 123,900
Salaries and Wages Expense 48,600
Rent Expense 12,200
Totals $407,720 $407,720
Adjustments:
a. Insurance Expense $2,000 Prepaid Insurance $2,000
b. Bad Debts Expense $2,680 Accounts Receivable $2,680 (1% of $268,000)
c. Depreciation Expense - Equipment $12,260 Accumulated Depreciation - Equipment $12,260 (10% of $122,600)
d. Interest Receivable $672 Interest Revenue $672 (6% of $11,200)
e. Rent Prepaid $5,400 Rent Expense $5,400
f. Salaries and Wages Expense $5,800 Salaries Payable $5,800
Sheridan Corporation
Adjusted Trial Balance as of December 31, 2020:
Account Titles Debit Credit
Cash $8,500
Accounts Receivable 38,020
Notes Receivable 11,200
Interest Receivable 672
Allowance for Doubtful Accounts $1,870
Inventory 35,300
Prepaid Insurance 2,720
Prepaid Rent 5,400
Equipment 122,600
Accumulated Depreciation--Equip. 26,360
Accounts Payable 10,100
Salaries Payable 5,800
Common Stock 49,100
Retained Earnings 64,550
Sales Revenue 268,000
Interest Revenue 672
Cost of Goods Sold 123,900
Salaries and Wages Expense 54,400
Rent Expense 6,800
Bad debts Expense 2,680
Insurance Expense 2,000
Depreciation Expense 12,260
Totals $426,452 $426,452
Scholars have noted each of the following elements that explain the importance of conferences EXCEPT:
a. The conference is the crucial unit in shaping and regulating intercollegiate athletics because it can have more impact on shaping athletic policies than the NCAA does.
b. Conferences demand that schools and their leaders pay more attention to conference issues than to those of national governing bodies like the NCAA.
c. The conference is the locus where a small group of institutions in voluntary association agree to work together, to compete while showing some sign of mutual respect and comparable academic standards.
d. Conferences allow schools with similar concerns to form leagues with rules that operationalize their common philosophy and put their athletes and coaches in social circumstances where they will be dealing with people and similar expectations and constraints.
Answer:
b.
Explanation:
Conferences demand that schools and their leaders pay more attention to conference issues than to those of national governing bodies like the NCAA. Issues need to be chosen by its importance to the vast majority. If the issue that is affecting the vast majority of the population revolves around external factors such as those of a national governing body then those are the issues that the conference should revolve around. The conference needs to adapt to what is most important always.
Dolan Company's accounting records reflect the following inventories:
Dec. 31, 2020
Dec. 31, 2019
Raw materials inventory
$310,000
$260,000
Work in process inventory
300,000
160,000
Finished goods inventory
190,000
150,000
During 2020, $800,000 of raw materials were purchased, direct labor costs amounted to $670,000, and manufacturing overhead incurred was $640,000.
Dolan Company's total manufacturing costs incurred in 2020 amounted to
2. Management by exception
A. means that only unfavorable differences will be investigated.
B. means that material differences will be investigated.
C. means that all differences will be investigated.
D. causes managers to be buried under voluminous paperwork.
Answer and Explanation:
The computation of the total manufacturing cost is shown below:
As we know that
Total manufacturing cost is
= Direct raw material used + direct labor cost + manufacturing overhead cost
= ($260,000 + $800,000 - $310,000) + $670,000 + $640,000
= $2,060,000
2. The management of exception means examining the financial and operational business results and considered the issues that faced by the company by having attention on it. ALso it considered teh differences arise from the expected amount
So here means that non-favorable difference would be investigated or material difference would be investigated
Match each type of adjusting entry with its definition.
Deferred revenue
Accrued expenses
Prepaid expenses
Accrued revenue
Match each of the options above to the items below.
Receive cash in the current period that will be recorded as a revenue in a future period.
Record an expense in the current period that will be paid in cash in a future period.
Record a revenue in the current period that will be collected in cash in a future period.
Pay cash (or have an obligation to pay cash) in the current period that will be recorded as an expense in a future period.
Answer and Explanation:
The matching is as follows:
1. Deferred revenue - the cash would be received in the present period and the same would be reported as a revenue for the future period
2. Accrued expense - It would be recorded as an expense for a present period but the cash would be paid in the future
3. Prepaid expense - The cash is paid or the obligation is to the pay the cash in the present period but the expense would be recorded in the future period
4. Accrued revenue - the revenue is recorded in the present period but the cash would be collected in a future period
Which of the following is a reason companies are hiring temporary workers more often than in the past?
A- Temporary employees work harder than permanent employees.
B- Temporary workers are more loyal to the company, thereby making them more productive.
C- Most companies provide temporary workers with very few, if any, benefits.
D- Workers seeking temporary employment are better educated than those seeking permanent employment
Pierre Corporation has a precredit U.S. tax of $315,000 on $1,560,000 of taxable income in the current year. Pierre has $312,000 of foreign source taxable income characterized as foreign branch income and $156,000 of foreign source taxable income characterized as passive category income. Pierre paid $63,000 of foreign income taxes on the foreign branch income and $27,000 of foreign income taxes on the passive category income. What amount of foreign tax credit (FTC) can Pierre use on its current U.S. tax return and what is the amount of the carryforward, if any
Answer:
the carryforward amount is $90,000
Explanation:
The computation of the carryforward amount is given below:
= Foreign income tax paid on the foreign branch income + foreign income taxes on the passive category income
= $63,000 + $27,000
= $90,000
hence, the carryforward amount is $90,000
Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following table, identify which type of activity is described below.
a. Fitzi Chemical Co. earns revenue from its cash receipts from royalties.
b. The Yum chain of restaurants conducts an initial public offering to raise funds for expansion.
c. A company records a decrease in its total raw materials inventory from the previous year.
d. A pharmaceutical company buys marketing rights to sell a drug exclusively in East Asian markets.
Answer and Explanation:
The classifications are as follows:
a. Operating activities: As there is a cash receipts from royalities so the same come under this activity
b. Financing activities: As the funds are raised so the same would be come under this activity.
c. Operating activities: As there is a decrease in raw material inventory as compared to the last year so the same is come under this activity
d. Investing activities: As the marketing rights are purchased so the same would be come under this activity
Carla Vista Company has the following information available for September 2020.
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
Compute the unit contribution margin.
Unit contribution margin enter the unit contribution margin
Prepare a CVP income statement that shows both total and per unit amounts.
Compute Carla Vista’ break-even point in units.
Break-even point in units enter Break-even point in units units
Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Answer:
Carla Vista Company has the following information available for September 2020.
Unit selling price of video game consoles $410
Unit variable costs $328
Total fixed costs $36,900
Units sold 600
Compute the unit contribution margin.
Unit contribution margin enter the unit contribution margin
Prepare a CVP income statement that shows both total and per unit amounts.
Compute Carla Vista’ break-even point in units.
Break-even point in units enter Break-even point in units units
Prepare a CVP income statement for the break-even point that shows both total and per unit amounts.
Given the following demand and supply equations determine the market equilibrium price and quantity. QD=30-3p. As=10-5p. Where Q is quantity and P is price
Answer:
Equilibrium price, p = 2.5
Equilibrium Quantity, Q = 22.5
Explanation:
The equation is:
Qd = 30 - 3p
Qs = 10 + 5p
At equilibrium, Quantity demanded equals quantity supplied
Equate Qd = Qs to find equilibrium price
30 - 3p = 10 + 5p
30 - 10 = 5p + 3p
20 = 8p
p = 20/8
P = 2.5
Substitute equilibrium price into Qd and Qs equation to find equilibrium Quantity
Qd = 30 - 3p
= 30 - 3(2.5)
= 30 - 7.5
= 22.5
Qs = 10 + 5p
= 10 + 5(2.5)
= 10 + 12.5
= 22.5
Therefore,
Equilibrium price, p = 2.5
Equilibrium Quantity, Q = 22.5
Consider how health insurance affects the quantity of health care services performed. Suppose that the typical medical procedure has a cost of $100, yet a person with health insurance pays only $20 out of pocket. Her insurance company pays the remaining $80. (The insurance company recoups the $80 through premiums, but the premium a person pays does not depend on how many procedures that person chooses to undergo.) Consider the following demand curve in the market for medical care.
1. Based on the given demand and supply, the given transportation problem is
________?
2. Before finding the initial solution, a dummy_____________ should be introduced.?
3. The total cost of the optimal solution =____________?
Answer:
hello your question has some missing part attached below is the missing demand curve
Answer :
1) the quantity of health procedures Individuals will demand is greater than the optimal quantity ( 20 procedures )
2) quantity of medical procedure
3) $200
Explanation:
1) Based on the given demand and supply, the given transportation problem is the quantity of health procedures Individuals will demand is greater than the optimal quantity ( 20 procedures )
2) A dummy quantity of medical procedure should be introduced
3) Total cost of optimal solution
optimal quantity of medical procedure ( Qd) * price of medical procedure(Qp)
= 20 * 100
= $200
George secured an adjustable-rate mortgage (ARM) loan to help finance the purchase of his home 5 years ago. The amount of the loan was $350,000 for a term of 30 years, with interest at the rate of 9%/year compounded monthly. Currently, the interest rate for his ARM is 3.5%/year compounded monthly, and George's monthly payments are due to be reset. What will be the new monthly payment
Answer:
$1,680
Explanation:
during the first 5 years, the monthly payment will = $2,816.18
I prepared an amortization schedule. After the 60th payment, the principal owed = $335,580
the new monthly payment considering that the interest rate fell significantly to 3.5% = $1,680
calculation to determine the monthly payment:
present value of the loan = monthly payment x PVIFA
monthly payment = present value / PVIFA
PVIFA, 0.29167%, 300 periods = 199.7501
monthly payment = $335,580 / 199.7501 = $1,680
What is a conversion rate?
Answer:
number of conversions divided by the total number of visitors.
Explanation:
Answer:
In electronic commerce, conversion marketing is marketing with the intention of increasing conversions--that is, site visitors who are paying customers. The process of improving the conversion rate is called conversion rate optimization.
Scenario
You are the marketing analyst for Better Beans Coffee Company, which has nine stores nationwide. The company wants to build two additional stores. Your executive team has decided that rather than expand to new markets, they want Better Beans to begin opening additional stores in existing markets. While this will create cannibalization in the short term, it will create marketing and operating efficiencies as more stores are opened in each city.
As a scrappy and growing startup, Better Beans does not yet have access to complex marketing analytics software. Fortunately, you are an expert at gathering market data from inside and outside the company and crunching accurate numbers with nothing more than an Excel spreadsheet.
You have been tasked with calculating the two best markets for opening an additional store. You have already calculated two things that allow you to estimate the net additional revenue in each market ueafter adding a second store:
Revenue for a second store in each market
The revenue lost from estimated cannibalization at the first store.
Important note: Due to the high investments already made in existing stores, management has specified that any market where cannibalization is 25% or more should be eliminated from consideration.
Ignoring cannibalization rates for now, what two markets have the highest net revenue increases when adding a second store?
A. Dallas and Portland
B. Los Angeles and Orlando
C. Chicago and Dallas
D. Orlando and Dallas
E. Los Angeles and Portland
What two markets should be chosen for a second store based on management's criteria that the cannibalization rate for the existing store should be less than 25%? Note: Cannibalization rates and net revenue increase amounts need to be considered when making this determination.
A. Los Angeles and Orlando
B. Atlanta and Houston
C. Atlanta and Portland
D. Los Angeles and Portland
E. Los Angeles and Houston
Existing Revenue Second store Cannibalization Revenue Net Revenue
Store Revenue Estimate Drop Due Increase for
Estimate to cannibalization Market(
Second
Store
Revenue
Cannibalization)
Los Angeles 4,050,000 $2,677,500 5% $202,500 2,475,000
Houston 1,950,000 1,522,500 5% 97,500 1,425,000
Orlando 2,800,000 2,175,000 25% 700,000 1,475,000
Atlanta 2,240,000 1,695,000 30% 720,000 975,000
Chicago 2,150,000 1,735,000 40% 860,000 875,000
San Diego 1,900,000 1,505,000 20% 380,000 1,125,000
Portland 1,500,000 1,050,000 20% 300,000 750,000
Dallas 2,450,000 1,702,500 45% 1,102,500 600,000
Boston 3,150,000 2,177,500 35% 1,102,500 1,075,000
Answer:
Better Beans Coffee Company
1. Two markets that have the highest net revenue increases when adding a second store are:
B. Los Angeles and Orlando
2. The two markets that should be choose for a second market are:
E. Los Angeles and Houston
Explanation:
a) Data and Calculations:
Existing Revenue Second Cannibalization Revenue Net Revenue Store Store Estimate Drop Due Increase from
Estimate Cannibali- Market
(Second Store
Revenue
Cannibalization)
Los Angeles 4,050,000 $2,677,500 5% $202,500 2,475,000
Houston 1,950,000 1,522,500 5% 97,500 1,425,000
Orlando 2,800,000 2,175,000 25% 700,000 1,475,000
Atlanta 2,240,000 1,695,000 30% 720,000 975,000
Chicago 2,150,000 1,735,000 40% 860,000 875,000
San Diego 1,900,000 1,505,000 20% 380,000 1,125,000
Portland 1,500,000 1,050,000 20% 300,000 750,000
Dallas 2,450,000 1,702,500 45% 1,102,500 600,000
Boston 3,150,000 2,177,500 35% 1,102,500 1,075,000
b) Cannibalization results from the reduction in sales revenue when a company introduces another similar product or store in an existing market. Before making decisions based on cannibalization, management should study the market dynamics and set measurable criteria for making the choice to go for cannibalization or preservation of an existing market. One of the best criteria for deciding on cannibalization is the net revenue from the second product or store after cannibalization.
Which statement does not describe the Linux operating systems?
It is proprietary software.
Its code can be modified by users.
It was developed by Torvalds.
It is an open-source application
Answer:
c your correct
Explanation:
Stewart owns a home with a replacement cost of $300,000. He purchased $200,000 of property insurance on the house with a $1,000 deductible for all losses. The house caught on fire and sustained $100,000 worth of damage. The actual cash value (ACV) of the damaged portion of the property was $80,000. How much will Stewart receive as reimbursement for the loss
Answer:
$82,333
Explanation:
The computation of the amount received as reimbursement for the loss is given below:
Given that
House Replacement= $300,000
80% of replacement cost = 80% of $300,000 = $240,000
Value of insurance = $200,000
Now
Amount of claim = [($200,000 ÷ $240,000) × $100,000] - $1,000 (deductible for all losses)
= $83,333 - $1,000
= $82,333
When you retire 35 years from now, you want to have $1.25 million. You think you can earn an average of 13.5 percent on your investments. To meet your goal, you are trying to decide whether to deposit a lump sum today, or to wait and deposit a lump sum 2 years from today. How much more will you have to deposit as a lump sum if you wait for 2 years before making the deposit
Answer:
$19,144.61
Explanation:
The first step would be to determine the present value of $1.25 million. After, the future value of that amount in 2 years has to be calculated
The formula for calculating future value:
P = FV / (1 + r)^n
FV = Future value
P = Present value
R = interest rate
N = number of years
$1.25 million / (1.135)^35 = $14,861.23
Now we find the future value using this formula :
FV = P (1 + r)^n
$14,861.23 x (1.135)^2 = $19,144.61
You are the manager of two plants (factories) in Mexico that manufacture shoes. The combined monthly output of both plants is to be 10,000 pairs of shoes. How you would best divide this output of 10,000 pairs of shoes between the two plants. You may make your arguments in words with the aid of diagrams, i.e., without the use of math. On the other hand, if you are comfortable with math (calculus), the following additional information may be made use of by you. The cost function of Plant 1 is C1 = a1Q1 + a2Q12 + Q13and that of Plant 2 is C2 = b1Q2 + b2Q22 + Q23, where Q1 and Q2 denote, respectively, the outputs of Plant 1 and Plant 2.
Answer:
Explanation:
The purpose of allocating the output of the shoes is to diminish the total cost of production. The process is achieved by assigning a pair of shoes that requires production at the factory with a marginal lower cost of the two plants. Afterward, the firms will have to equate the marginal cost of production across the two firms.
For firm 1:
The cost of production [tex]c_1 = a_1Q_1 ^2 +a_2Q_1^2+Q_1^3[/tex]
Differentiating with respect to [tex]Q_1[/tex] to determine the marginal cost;
For firm 1, the Marginal cost [tex]MC_1 = a_1 +2a_2Q_1+3Q_1^2[/tex]
For firm 2; the marginal cost [tex]MC_2 = b_1 +2b_2Q_2+3Q_2^2[/tex]
Equating both from above:
[tex]a_1 +2a_2Q_1+3Q_1^2 = b_1 +2b_2Q_2+3Q_2^2[/tex]
Recall that:
[tex]Q_1 = 10000 - Q_2[/tex]
Thus, we can replace the value of [tex]Q_1[/tex] into the above equation to determine the value of [tex]Q_2[/tex] in terms of [tex]a_1, a_2, b_1, b_2[/tex] by applying a quadratic formula.
Assuming we knew the values of [tex]a_1, a_2, b_1, b_2,[/tex] we can estimate the numerical value of [tex]Q_2[/tex], then replace it into the equation [tex]Q_1 = 10000 – Q_2[/tex] to find the numerical value for [tex]Q_1[/tex].
The following trial balance was prepared from the ledger accounts of Ricardo Company: RICARDO COMPANY Trial Balance April 30, Year 2 Account Titles Debit Credit Cash $ 71,900 Accounts receivable 36,000 Supplies 2,400 Prepaid insurance 4,200 Land $ 11,000 Accounts payable 10,200 Common stock 100,000 Retained earnings 29,640 Dividends 8,600 Service revenue 70,000 Rent expense 10,200 Salaries expense 32,700 Operating expense 33,600 Totals $ 199,600 $ 220,840 When the trial balance failed to balance, the accountant reviewed the records and discovered the following errors: The company received $590 as payment for services rendered. The credit to Service Revenue was recorded correctly, but the debit to Cash was recorded as $770. A $1,200 receipt of cash that was received from a customer on accounts receivable was not recorded. A $580 purchase of supplies on account was properly recorded as a debit to the Supplies account. However, the credit to Accounts Payable was not recorded. Land valued at $11,000 was contributed to the business in exchange for common stock. The entry to record the transaction was recorded as a $11,000 credit to both the Land account and the Common Stock account. A $800 rent payment was properly recorded as a credit to Cash. However, the Salaries Expense account was incorrectly debited for $800.
Question Completion:
Prepare the corrected Trial Balance of Ricardo Company.
Answer:
RICARDO COMPANY
The corrected Trial Balance April 30, Year 2
Account Titles Debit Credit
Cash $ 72,920
Accounts receivable 34,800
Supplies 2,400
Prepaid insurance 4,200
Land 11,000
Accounts payable $10,780
Common stock 100,000
Retained earnings 29,640
Dividends 8,600
Service revenue 70,000
Rent expense 11,000
Salaries expense 31,900
Operating expense 33,600
Totals $ 210,420 $ 210,420
Explanation:
a) Data and Calculations:
RICARDO COMPANY
Trial Balance April 30, Year 2
Account Titles Debit Credit
Cash $ 71,900
Accounts receivable 36,000
Supplies 2,400
Prepaid insurance 4,200
Land $11,000
Accounts payable 10,200
Common stock 100,000
Retained earnings 29,640
Dividends 8,600
Service revenue 70,000
Rent expense 10,200
Salaries expense 32,700
Operating expense 33,600
Totals $ 199,600 $ 220,840
Cash Account:
Account Titles Debit Credit
Balance $ 71,900
Overstated service revenue 180
Accounts receivable 1,200
Balance $72,920
Totals $73,100 $73,100
Balance $72,920
Accounts Receivable
Account Titles Debit Credit
Balance $36,000
Cash $1,200
Balance $34,800
Totals $36,000 $36,000
Balance $34,800
Accounts Payable
Account Titles Debit Credit
Balance $10,200
Supplies 580
Balance $10,780
Totals $10,780 $10,780
Balance $10,780
Land
Account Titles Debit Credit
Balance $11,000
Correction of error $22,000
Balance $11,000
Totals $22,000 $22,000
Balance $11,000
Salaries Expense
Account Titles Debit Credit
Balance $32,700
Rent Expense $800
Balance $31,900
Totals $32,700 $32,700
Balance $31,900
Rent Expense
Account Titles Debit Credit
Balance $10,200
Salaries Expense 800
Balance $11,000
Totals $11,000 $11,000
Balance $11,000
Help? Its for personal finance.
Answer:
it's the bottom right
Explanation:
since the groceries have the biggest number it should have the biggest piece and that is the only one that has groceries as the biggest piece of the chart
how important are the development of the many management theories
Answer:
Explanation:
Management theories help organizations to focus, communicate, and evolve. Using management theory in the workplace allows leadership to focus on their main goals. When a management style or theory is implemented, it automatically streamlines the top priorities for the organization.
the point where total expenses equals to total income?
Answer:
yfku
Explanation:
Jeremy earned $100,000 is salary and $6,000 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of the household and has $23,000 in itemized deductions. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What is Jeremy’s tax refund or tax due including the tax on the capital gain?
Answer:
Follows are the solution to this question:
Explanation:
Points Description Amount Computation
(1) Major Revenue $110,000 [tex]\$ 100,000 \ salary + \$ 6,000 \\ \\Interest \ income + \$4,000 \\\\ \text{ capital gain in long term}[/tex]
(2) AGI allowance 0
(3) Gross sales adjusted $110,000 (1) - (2)
(4) Deduction norm 18,350 Chief of Household
(5) susceptible to deductions 23,000
(6) Enhanced standard (23,000) (5) > (4)
deduction or individualized
deductions
(7) Taxable Revenue $87,000
(8) Response for $13,298 [tex][(83,000 - 52,850) \times[/tex]
incoming taxes [tex]22\%+ \$6,065] + \$4000\times 15\%[/tex]
(See the household head tax
plan)
(9) Allowance for children's taxes (2,000)
(10) Withdrawal of tax (11,000)
Taxes due $ 298 (8) + (9) + (10)
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture. Required: 1. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect. 2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2020. Assume the following manufacturing costs: Direct materials: $2,600 Factory overhead: $520 Direct labor: $1,200 Beginning work in process: none (December 31, 2019) Ending work in process: $590 (January 31, 2020) Beginning finished goods inventory: none (December 31, 2019) Ending finished goods inventory: $370 (January 31, 2020) 3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2020. Pre
Answer:
Results are below.
Explanation:
First, we need to calculate the following costs as variable-fixed, and direct-indirect:
Direct materials: $2,600 (variable - direct)
Factory overhead: $520 (mixed - indirect)
Direct labor: $1,200 (variable - direct)
Now, we can calculate the cost of goods manufactured using the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 0 + 2,600 + 1,200 + 520 - 590
cost of goods manufactured= 3,730
Finally, the cost of goods sold:
beginning finished inventory= 0
cost of goods manufactured= 3,730
ending finished inventory= (370)
COGS= $3,360
If the mean of three observations x + 2, x + 4, and x + 6 is 15, then x is equal to
a) 12
(b) 13
(c) 15
(d) 11
Answer:
x+2+x+4+x+6/3=15
3x+12=15x3
3x+12=45
3x=45-12
3x=33
x=33/3
x=11
hope it helps u
Answer:
D
Explanation
3x+12 divided by 3 multiple by 15
Townsend Industries Inc. manufactures recreational vehicles. Townsend uses a job order cost system. The time tickets from November jobs are summarized as follows:
Job 11-101 $6,240
Job 11-102 9,000
Job 11-103 7,210
Job 11-104 6,750
Factory supervision 4,000
Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $18 per direct labor hour. The direct labor rate is $40 per hour.
A. Journalize the entry to record the factory labor costs.
B. Journalize the entry to apply factory overhead to production for November.
Answer:
Part A
Debit :Work In Process - Job 11-101 (6,240 x $40) $249,600
Debit :Work In Process - Job 11-102 (9,000 x $40) $360,000
Debit :Work In Process - Job 11-103 (7,210 x $40) $280,400
Debit :Work In Process - Job 11-104 (6,750 x $40) $270,000
Credit: Salaries and Wages Payable (29,200 x $40) $1,168,00
Part B
Debit :Work In Process - Job 11-101 (6,240 x $18) $112,320
Debit :Work In Process - Job 11-102 (9,000 x $18) $162,000
Debit :Work In Process - Job 11-103 (7,210 x $18) $129,780
Debit :Work In Process - Job 11-104 (6,750 x $18) $121,500
Credit: Factory Overheads (29,200 x $18) $525,600
Explanation:
The Work In Process Account is the account used to accumulate factory cost incurred. Debit this account to show accumulation of labour and overheads.
Beachside Realty rents condominiums and furnishings. Below is the adjusted trial balance at December 31.
Debit Credit
Cash 1,500
Accounts Receivable 2,000
Interest Receivable 100
Prepaid Insurance 1,600
Notes Receivable (long-term) 2,800
Equipment 15,000
Accumulated Depreciation 3,000
Accounts Payable 2,400
Accrued Expenses Payable 3,920
Income Taxes Payable 2,700
Unearned Rent fees 500
Common Stock 5,000
Retained Earnings 2,700
Dividends 2,000
Rent Fees Earned 37,000
Furniture Rental Revenue 1,200
Interest Revenue 100
Wages Expense 19,000
Depreciation Expense 1,800
Utilities Expense 320
Insurance Expense 700
Maintenance Expense 9,000
Income Tax Expense 2,700
58,520 58,520
Prepare the entry required to close the expense accounts at the end of the period.
Answer and Explanation:
The journal entry required to close the expense account is given below:
Income summary Dr $33,520
To Wages Expense $19,000
To Depreciation Expense $1,800
To Utilities Expense $320
To Insurance Expense $700
To Maintenance Expense $9,000
To Income Tax Expense $2,700
(being the expenses accounts are closed)
Aaron, clerical supervisor for a health maintenance organization, wants to hire the best person for the receptionist job. Ramona, his manager, is doubtful that the candidate Aaron has selected will be capable because she uses a wheelchair. Ramona is concerned that other workers will have to spend a lot of time helping the receptionist get in and out of the office for lunch, breaks, and so on. How can Aaron ensure that his candidate will be an asset to the firm?
Answer:
Explanation:
There are two things that Aaron can do to make sure of this. The first is to make the office wheelchair-friendly. Meaning installing ramps in the necessary places so that the candidate can easily traverse the office and get to and from the places she needs easily and by herself. The second thing that Aaron can do is make sure that the candidate's abilities are better than the other candidates. These skills will make her an asset because she will be able to bring insight and experience that the other candidates would never be able to.
Trak Corporation incurred the following costs while manufacturing its bicycles. Bicycle components $100,000 Advertising expense $45,000 Depreciation on plant 60,000 Property taxes on plant 14,000 Property taxes on store 7,500 Delivery expense 21,000 Labor costs of assembly-line workers 110,000 Sales commissions 35,000 Factory supplies used 13,000 Salaries paid to sales clerks 50,000
Identify each of the above costs as direct materials, direct labor, manufacturing overhead, or period costs. Bicycle components select a classification Depreciation on plant select a classification Property taxes on store select a classification Labor costs of assembly-line workers select a classification Factory supplies used select a classification Advertising expense select a classification Property taxes on plant select a classification Delivery expense select a classification Sales commissions select a classification Salaries paid to sales clerks
Answer:
Bicycle components $100,000
Identification: Direct material
Advertising expense $45,000
Identification: Period cost
Depreciation on plant 60,000
Identification: Manufacturing overhead
Property taxes on plant 14,000
Identification: Manufacturing overhead
Property taxes on store 7,500
Identification: Period cost
Delivery expense 21,000
Identification: Period cost
Labor costs of assembly-line workers 110,000
Identification: Direct labor
Sales commissions 35,000
Identification: Period cost
Factory supplies used 13,000
Identification: Manufacturing overhead
Salaries paid to sales clerks 50,000
Identification: Period cost
Desert, Inc. has year-end account balances as of December 31, 2020 of Sales Revenue $907,000; Interest Revenue $24,000; Cost of Goods Sold $593,000; Administrative Expenses $188,000; Income Tax Expense $31,000; Dividends $18,000, Unrealized Pension Liability Adjustments of $21,500 (dr) and a correction of an error in recording Depreciation Expense for 2018 of $12,000 (dr).
To prepare the year-end closing entry required to close the Income Summary account, Desert would record a:_________
a. Debit to Net Income for $107.000.
b. Debit to Income Summary for $119,000
c. Debit to Retained Earnings for $89,000
d. Debit to Income Summary for $67,500
Answer:
Dr to income summary for $119,000
Explanation:
The year end closing entry to required to close the income entry would be ;
Sales revenue. Dr $907,000
Interest revenue Dr $24,000
Income summary Cr $931,000
Income summary Dr $812,000
Cost of goods sold Cr $593,000
Administrative expenses Cr $188,000
Income tax expense Cr $31,000
*Income summary Dr. $119,000
Retained earnings Cr $119,000
Retained earnings. Dr $18,000
Dividend Cr $18,000
Velocity, a consulting firm, enters into a contract to help Burger Boy, a fast-food restaurant, design a marketing strategy to compete with Burger King. The contract spans eight months. Burger Boy promises to pay $87,000 at the end of each month. At the end of the contract, Velocity either will give Burger Boy a refund of $29,000 or will be entitled to an additional $29,000 bonus, depending on whether sales at Burger Boy at year-end have increased to a target level. At the inception of the contract, Velocity estimates an 80% chance that it will earn the $29,000 bonus and calculates the contract price based on the expected value of future payments to be received. At the start of the fifth month, circumstances change, and Velocity revises to 60% its estimate of the probability that it will earn the bonus. At the end of the contract, Velocity receives the additional consideration of $29,000.
Required:
1) Prepare the journal entry to record revenue each month for the first four months of the contract.
2) Prepare the journal entry that the Velocity Company would record after four months to recognize the change in estimate associated with the reduced likelihood that the bonus will be received.
3) Prepare the journal entry to record the revenue each month for the second four months of the contract.
4) Prepare the journal entry after eight months to record receipt of the cash bonus.
Answer:
Accounts Receivable (Dr.) $87,000
Bonus receivable (Dr.) $29,000
Service Revenue (Cr.) $116,000
Explanation:
Expected Value at contract inception is :
($87,000 * 8 months + $29,000) * 80% = $580,000
($87,000 * 8 months - $29,000) * 20% = $133,400
Total = $713,400
$725,000 / 8 = $89,175
The service revenue is estimated to be 116,000 if there is no probability estimate. When the expected value is incorporated the service revenue will be $89,175.