Answer:
Dr Work In Process 467,000
Cr Raw Materials 467,000
Explanation:
Preparation of the journal entry to record raw materials used in production
Based on the information given if the Raw materials that was requisitioned for use in the production was the amount of $ 467,000 which means that the journal entry to record raw materials used in production will be :
Dr Work In Process 467,000
Cr Raw Materials 467,000
The following Information applies to the questions displayed below.) Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of It car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management belleves that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled:
Month Rental Returns Car Wash Costs
January 2,380 $ 10,825
February 2,421 $ 11,865
March 2,586 $ 11,332
April 2725 $ 12422
May 2968 $ 13850
June 3281 $ 14419
July 3,353 $ 14,935
August 3,489 $ 15,738
September 3,057 $ 13,563
October 2,876 $ 11,889
November 2,735 $ 12,683
December 2,983 $ 13,796
Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost Incurred to wash cars. (Round Fixed cost to the nearest whole dollar amount and the Varlable cost per unit to 2 decimal places.)
Answer:
a. The variable cost per rental return is $4.04.
b. The monthly fixed cost Incurred to wash cars is $1,376.
Explanation:
Note: See the attached excel file for the calculations of Rental Returns (x), Car Wash Costs (y), xy, and x^2.
Since Σ = Total of or summation of, we can therefore obtain the following from the attached excel file:
Σx = 34,854
Σy = 157,317
Σxy = 462,541,971
Σx^2 = 102,623,516
N = Number of months = 12
a. calculation of variable cost per rental return
To calculate the variable cost per rental return, the following formula is used:
Variable cost per rental return = (NΣxy − ΣxΣy) /((NΣx²) − (Σx)²) ……………… (1)
Substituting the relevant values into equation (1), we have:
Variable cost per rental return = ((12 * 462,541,971) - (34,854 * 157,317)) / (((12 * 102,623,516) - 34,854^2)
Variable cost per rental return = 4.03917240317595
Rounding to 2 decimal places as required, we have:
Variable cost per rental return = $4.04
Therefore, the variable cost per rental return is $4.04.
b. Calculation of monthly fixed cost Incurred to wash cars
To calculate the monthly fixed cost Incurred to wash cars, the following formula is used:
Fixed Cost per month = {Σy - (Variable cost per rental return * Σx) / N ....... (2)
Substituting the relevant values into equation (2), we have:
Fixed Cost per month = (157,317 - (4.04 * 34,854)) / 12
Fixed Cost per month = $1,375.57
Rounding to the nearest whole dollar amount as required, we have:
Fixed Cost per month = $1,376
Therefore, the monthly fixed cost Incurred to wash cars is $1,376.
The variable cost per rental return is $4.04 and the fixed cost per month is $1378.
The following can be depicted from the question
Σx = 34,854
Σy = 157,317
Σxy = 462,541,971
Σx² = 102,623,516
N = number of months = 12
Variable cost per rental return will be:
= ( N Σxy − Σx Σy)/{(N Σx²) − (Σx)²}
= {( 12 × 462,541,971) - (34,854 × 157,317) } / {(12 ×102,623,516) - (34,854)²}
= (5,550,503,652 - 5,483,126,718) / (1231482192 - 1214801316)
= 67,376,934 / 16680876
= $4.04
Fixed Cost per month will be:
= {Σy - ( Variable cost per rental return × Σx )/N
= {157,317 - (4.04 × 34,854)} /12
= ( 157,317 - 140,810.16) /12
= $1378
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I. Prepare a journal entry.
(a) Stockholder invests $15,000 into the business.
(b) Company borrows $15,000 signing a note payable to the bank that is due in three months.
(c) Receives and pays for a $10,000 truck and $5,000 of equipment.
(d) Purchases $600 of supplies on account.
(e) Signs contract for first website design for $10,000.
(f) Pays $200 to the supplier in (d).
(g) Purchases and pays for $400 of supplies.
(i) Orders a $900 computer, to be delivered in 90 days.
Transaction # Accounts titles (names) Debit Credit
II. Post the transactions to ledger accounts and then determine the ending balances of each of the following T-accounts.
Assets Liabilities Stockholders' Equity
Cash Accounts Payable Common Stock
Supplies Notes Payable Retained Earnings
Equipment
3. PREPARING A TRIAL BALANCE AND A CLASSIFIED BALANCE SHEET
Use the ending balances from the T-accounts to prepare a trial balance as of December 31, Year 1.
World Wide Webster
Trial Balance
At December 31, Year 1
Answer:
1. Journal Entries:
a. Debit Cash $15,000
Credit Common Stock $15,000
To record investment by stockholder
b. Debit Cash $15,000
Credit Note Payable $15,000
To record note payable to the bank in three months.
c. Debit Truck $10,000
Debit Equipment $5,000
Credit Cash $15,000
To record the purchase of truck and equipment.
d. Debit Supplies $600
Credit Accounts Payable $600
To record the purchase of supplies on account.
e. No journal required.
f. Debit Accounts Payable $200
Credit Cash $200
To record the payment on account.
g. Debit Supplies $400
Credit Cash $400
To record the purchase of supplies for cash.
h. or i. No journal entry required.
II. Ledger Accounts:
Cash
Accounts titles Debit Credit
a. Common stock $15,000
b. Note payable 15,000
c. Truck & Equipment $15,000
f. Accounts payable 200
g. Supplies 400
Balance $14,400
Totals $30,000 $30,000
Common Stock
Accounts titles Debit Credit
a. Cash $15,000
Notes Payable
Accounts titles Debit Credit
b. Cash $15,000
Truck
Accounts titles Debit Credit
c. Cash $10,000
Equipment
Accounts titles Debit Credit
c. Cash $5,000
Supplies
Accounts titles Debit Credit
d. Accounts payable $600
g. Cash 400
Balance $1,000
Totals $1,000 $1,000
Accounts Payable
Accounts titles Debit Credit
d. Supplies $600
f. Cash $200
Balance $400
Totals $600 $600
III. Trial Balance
Accounts titles Debit Credit
Cash $14,400
Truck 10,000
Equipment 5,000
Supplies 1,000
Common stock $15,000
Notes payable 15,000
Accounts payable 400
Totals $30,400 $30,400
IV. Classified Balance Sheet
Assets
Current Assets:
Cash $14,400
Supplies 1,000 $15,400
Long-term Assets:
Truck 10,000
Equipment 5,000 $15,000
Total Assets $30,400
Liabilities + Equity:
Accounts payable 400
Notes payable 15,000
Common stock 15,000
Liabilities + Equity $30,400
Explanation:
Journal Entries are made to record transactions for the first time in the accounting books. These transactions are then posted to the general ledger where balances are extracted for the Trial Balance. Based on the Trial Balance, the financial statements are prepared to determine the financial performance and position of the business at the end of an accounting year.
Which of the following is not a way to improve your credit?
Keep your balances low
Move debt around
Keep established accounts
Pay your bills on time
Answer:
Move debt around
Explanation:
The way where the credit is not improved is that if we moving the debt around.
Information related to the credit score & creditworthiness:
The credit score is the mathematical expression that depends upon your creditworthiness. Creditworthiness is the willingness of the lender for believing you to pay off the debts.
The credit should be improved by:
Having established accounts.Bills are paid on timeLess balances.But if the debt is moving around so this does not improve your credit.
Therefore we can conclude that the way where the credit is not improved is that if we moving the debt around.
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What may make a small business loan challenging to obtain? List at least two potential obstacles.
Answer:
credit
work history
Explanation:
hope this helps
On July 1, 2013, a Japanese company enters into a forward contract to buy $1 million with yen on January 1, 2014. On September 1, 2013, it enters into a forward contract to sell $1 million on January 1, 2014. Describe the profit or loss the company will make in dollars as a function of the forward exchange rates on July 1, 2013 and September 1, 2013.
Answer:
Profit (loss) from the contract = (FER2 - FER1) million yen
Explanation:
Let FER1 represents the forward exchange rates for the contracts entered into by the company on July 1, 2013, and let FER2 represents the forward exchange rates for the contracts entered into by the company on September 1, 2013.
Also, let SPOT represents the spot rate on January 1, 2014.
Since all exchange rates are measured as yen per dollar, we therefore have:
First contract profit = (SPOT - FER1) million yen
Second contract profit = (FER2 - SPOT) million yen
Profit (loss) from the contract = First contract profit + Second contract profit
Removing the million yen first and later add to the final answer, we have:
Profit (loss) from the contract = (SPOT - FER1) + (FER2 - SPOT)
Profit (loss) from the contract = SPOT - FER1 + FER2 - SPOT
Profit (loss) from the contract = (FER2 - FER1) million yen
Therefore, the profit or loss the company will make in dollars as a function of the forward exchange rates on July 1, 2013 and September 1, 2013 is Profit (loss) from the contract = (FER2 - FER1) million yen.
You have received two bids from outside companies to conduct guest satisfaction surveys for you. You want at least 320 responses. Company A charges $3,200 + $6 per respondent. Company B charges $4,000 + $3 per respondent. Which company will cost you less?
a) Company A
b) Company B
From the two bids received from outside companies to conduct guest satisfaction surveys, the company that would cost me less will be Company B which charges $4,000 + $3 per respondent.
What is a bid?A bid is the price offer that a corporation or individual is willing to pay in the context of auctions, stock exchanges, or real estate. Bidding is an individual or business's offer to set a price for a product or service, or a demand that something is done. Bidding is a method of determining the price or worth of something.
Bidding can be done by a person who is influenced by a product or service in a given setting. It is used by numerous economic niches to determine demand and thus the worth of a commodity or property. In today's modern technology environment, the Internet is a preferred platform for giving bidding services.
Therefore, from the bids received it can be concluded that Company B would cost less.
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MacGuffins have a demand function of QD = 70 – P and a supply function of QS = 2P + 10. Determine the price at equilibrium
Answer: 20
Explanation:
For us to calculate the equilibrium price, we must equate the quantity demanded with the quantity supplied. In this case, Qd = Qs where,
QD = 70 – P
QS = 2P + 10.
QD = QS
70 - P = 2P + 10
70 - 10 = 2P + P
60 = 3P
P = 60/3
P = 20
The equilibrium price is 20
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.2 million cash on October 1, 2021, to provide working capital for anticipated expansion. Precision signs a one-year, 7% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each firm has a December 31 year-end.
Required:
a. Prepare the journal entries on October 1, 2021, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.
2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and (b) Midwest Bank.
3. Prepare the journal entries on September 30, 2021, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank.
Answer:
a. Prepare the journal entries on October 1, 2021, to record (a) the notes payable for Precision Castparts
Dr Cash 40,200,000
Cr Notes payable 40,200,000
and (b) the notes receivable for Midwest Bank.
Dr Notes receivable 40,200,000
Cr Cash 40,200,000
2. Record the adjustments on December 31, 2021, for (a) Precision Castparts and
Dr Interest expense 703,500
Cr Interest payable 703,500
(b) Midwest Bank.
Dr Interest receivable 703,500
Cr Interest revenue 703,500
3. Prepare the journal entries on September 30, 2021, to record payment of (a) the notes payable for Precision Castparts and
Dr Interest expense 2,110,500
Dr Notes payable 40,200,000
Dr Interest payable 703,500
Cr Cash 43,014,000
(b) the notes receivable for Midwest Bank.
Dr Cash 43,014,000
Cr Interest revenue 2,110,500
Cr Notes receivable 40,200,000
Cr Interest receivable 703,500
The Osgood county refuse department runs two recycling centers. Center 1 costs $40 to run for an eight hour day. In a typical day, 140 pounds of glass and 60 pounds of aluminum are deposited at Center 1. Center 2 costs $50 for an eight hour day, with 100lbs of glass and 180lbs of aluminum deposited per day. The county has a commitment to deliver at least 1540lbs of glass and 1440lbs of aluminum per week. How many days per week should the county open each center to minimize its cost and still meet the requirements?
Answer:
Center 1 should be open 7 days a week, and center 2 should be open 6 days a week. Total cost = $580
Explanation:
minimize the following equation 40A + 50B
where:
A = center 1
B = center 2
constraints:
140A + 100B ≥ 1540
60A + 180B ≥ 1440
A ≤ 7
B ≤ 7
A, B ≥ 0
using Solver, the optimal solution is 7A + 6B = 580
All of the following are examples of primary market research EXCEPT
Direct mail surveys
Fee product samples
Focus groups
Promotional email campaigns
Answer:
Fee product samples
Explanation:
makes pay
Don operates a taxi business, and this year one of his taxis was damaged in a traffic accident. The taxi was originally purchased for $15,500 and the adjusted basis was $1,050 at the time of the accident. The taxi was repaired at a cost of $2,975 and insurance reimbursed Don $757 of this cost. What is the amount of Don's casualty loss deduction
Answer:
$293
Explanation:
Calculation for the amount of Don's casualty loss deduction
Using this formula
Casualty loss deduction amount=Adjusted basis -Insurance reimbursed
Let plug in the formula
Casualty loss deduction amount=$1,050- $757
Casualty loss deduction amount=$293
Therefore the amount of Don's casualty loss deduction will be $293
You are asked to study the causal effect of hours spent on employee training (measured in hours per worker per week) in a manufacturing plant on the productivity of its workers (output per worker per hour). Describe EITHER ONE a-an ideal randomized controlled experiment to measure this causal effect.
Answer and Explanation:
An ideal randomized controlled experiment to measure the productivity of the factory would be established in the following way: owners of all sectors of the factory would be selected. This selection would be done completely randomly so that it was possible to select individuals different from each other. These employees would be divided into two groups. The first group would receive training, the second group would not receive training.
In this case, the productivity of one group would be compared to the productivity of the other, after both groups were submitted to a period of work, after the first group received training.
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next 11 years because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $16.25 per share 12 years from today and will increase the dividend by 5.5 percent per year thereafter. The required return on the stock is 13.5 percent. What is the price of the stock 11 years from today?
Answer:
P11 = $203.125
Explanation:
Using the constant growth model of dividend discount model, we can calculate the price of the stock in year 11. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price under this model is,
P0 = D0 * (1+g) / (r - g)
Where,
D1 is dividend expected for the next period /year
g is the growth rate
r is the required rate of return or cost of equity
P11 = 16.25 / (0.135 - 0.055)
P11 = $203.125
Which of the following types of insurance allows individuals to keep a former employer's group coverage for a set period of time?
COBRA
Individual health insurance
Hospital indemnity policy
Group health insurance
Answer:
group health insurance
The trial balance of Woods Company includes the following balance sheet accounts. Identify the accounts that might require adjustment. For each account that requires adjustment, indicate (1) the type of adjusting entry and (2) the related account in the adjusting entry.
Account Type of Adjustment Related Account
(a) Accounts Receivable Prepaid ExpensesAccrued RevenuesNot requiredAccrued ExpensesUnearned Revenues Interest ExpenseInsurance ExpenseService RevenueNot requiredDepreciation Expense
(b) Prepaid Insurance Unearned RevenuesAccrued RevenuesPrepaid ExpensesNot requiredAccrued Expenses Service RevenueInsurance ExpenseNot requiredDepreciation ExpenseInterest Expense
(c) Equipment Accrued RevenuesNot requiredPrepaid ExpensesAccrued ExpensesUnearned Revenues Interest ExpenseService RevenueDepreciation ExpenseInsurance ExpenseNot required
(d) Accumulated Depreciation's Equipment Prepaid ExpensesAccrued RevenuesNot requiredAccrued ExpensesUnearned Revenues Depreciation ExpenseService RevenueNot requiredInsurance ExpenseInterest Expense
(e) Notes Payable Not requiredUnearned RevenuesAccrued ExpensesAccrued RevenuesPrepaid Expenses Interest ExpenseNot requiredInsurance ExpenseService RevenueDepreciation Expense
(f) Interest Payable Prepaid ExpensesNot requiredAccrued RevenuesUnearned RevenuesAccrued Expenses Insurance ExpenseNot requiredDepreciation ExpenseInterest ExpenseService Revenue
(g) Unearned Service Revenue Unearned RevenuesPrepaid ExpensesAccrued ExpensesAccrued RevenuesNot required Not requiredDepreciation ExpenseService RevenueInterest ExpenseInsurance Expense
Answer:
Woods Company
Accounts Requiring Adjustment, Type of Adjusting Entry, and the Related Account:
Account Type of Adjustment Related Account
a) Account receivable Accrued revenue Service revenue
b) Prepaid insurance Prepaid expense Insurance expense
c) Equipment Not required Not required
d) Accumulated depreciation Accrued expense Depreciation expense
e) Notes Payable Not required Not required
f) Interest Payable Accrued expense Interest expense
g) Unearned service revenue Unearned revenue Service revenue
Explanation:
End of period adjustments are made to accounts in order to bring them in line with the accrual concept and matching principle of accounting. These principles require that expenses and revenues for the period are matched in order to determine the appropriate profit generated for the period. The implication is that transactions are recorded when they are incurred and not when cash is exchanged. For example, if rent expense is incurred for the year and payment is made in the following year, the expense must be recognized in the current year. The same applies to revenue.
Swifty Corporation records all prepayments in income statement accounts. At April 30, the trial balance shows Supplies Expense $2,700, Service Revenue $9,400, and zero balances in related balance sheet accounts. Prepare the adjusting entries at April 30 assuming: (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) (a) $800 of supplies on hand and (b)$3,200 of service revenue should be reported as unearned
Answer:
Apr. 30
Dr Supplies Expense $1,900
Cr Supplies $1,900
Dr Unearned Service Revenue 3200
Cr Service Revenue 3200
Explanation:
Preparation of the adjusting entries at April 30
Based on the information given the adjusting entries at April 30 will be :
Apr. 30
Dr Supplies Expense $1,900
Cr Supplies $1,900
($2,700-$800)
(Being to record supplies on hand)
Dr Unearned Service Revenue 3200
Cr Service Revenue3200
(Being to record Unearned Service Revenue)
Green marketing refers to:________
A) the purchasing of products from producers whose farming practices are Fair Trade certified.
B) the marketing efforts taken by new and smaller companies that lack both the experience and resources of their major competitors.
C) the marketing efforts to produce,promote,and reclaim environmentally sensitive products.
D) the marketing of products that have in no way been altered or reprocessed by artificial means.
E) the marketing of those products made exclusively from recycled materials.
Answer:
C) the marketing efforts to produce,promote,and reclaim environmentally sensitive products.
Explanation:
Green marketing can be understood as a way for organizations to concentrate efforts to produce, promote and recover environmentally sensitive products.
It is correct to say that this is a positive marketing for companies to reduce their negative impacts on the environment and adopt environmentally responsible attitudes, due to the fact that today's society expects companies to be positive transforming agents of society, being more than just entities profitable, stekeholders influence companies to adopt strict environmental standards in their processes and thus gain greater reliability, positioning and increase their market value.
what is Amazon's current price-to-book value?
Answer:
The current price to book value of Amazon as on date (25 February 2021) is 16.48
Explanation:
The current price to book value of Amazon as on date (25 February 2021) is 16.48
However, on 24th February 2021, the price to book value of Amazon was 17.03
The following balance sheet for the Hubbard Corporation was prepared by the company:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2021
Assets
Buildings $754,000
Land 262,000
Cash 64,000
Accounts receivable (net) 128,000
Inventory 248,000
Machinery 284,000
Patent (net) 104,000
Investment in equity securities 68,000
Total assets $1,912,000
Liabilities and Shareholders' Equity
Accounts payable $219,000
Accumulated depreciation 259,000
Notes payable 508,000
Appreciation of inventory 84,000
Common stock (authorized and issued
104,000 shares of no par stock) 416,000
Retained earnings 426,000
Total liabilities and shareholders' equity $1,912,000
Additional information:
The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $54,000 but, due to a significant increase in market value, is listed at $128,000. The increase in the land account was credited to retained earnings. The investment in equity securities account consists of stocks of other corporations and are recorded at cost, $24,000 of which will be sold in the coming year. The remainder will be held indefinitely. Notes payable are all long term. However, a $140,000 note requires an installment payment of $35,000 due in the coming year. Inventory is recorded at current resale value. The original cost of the inventory is $164,000.
Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2018.
Answer:
Assets
Current assets
Cash $64,000
Accounts receivable (net) $128,000
Inventory $164,000
Available for sale securities $24,000
Total current assets $380,000
Non-current assets
Buildings $754,000
Land $188,000
Machinery $284,000
Patent (net) $104,000
Investment in equity securities $44,000
Accumulated depreciation 259,000
Total non-current assets $1,115,000
Total assets $1,495,000
Liabilities and Shareholders' Equity
Current liabilities
Accounts payable $219,000
Current portion of long term debt $35,000
Total current liabilities $254,000
Long term liabilities
Notes payable $473,000
Total long term liabilities $473,000
Stockholders' equity
Common stock (authorized and issued
104,000 shares of no par stock) $416,000
Retained earnings $352,000
Total equity $768,000
Total liabilities and shareholders' equity $1,495,000
Markel entered into a contract with Jaylin to paint a portrait for her in consideration of $600. This contract was freely negotiated. There was nothing in the terms of the agreement about when Markel had to start on the portrait or how long it should take him to finish. It took Markel a long time to complete the portrait, almost 18 months. Which of the following is true of this contract?
a. It must be in writing because it took longer than one year to complete.
b. It must be in writing because it was for more than $500.
c. It is a unilateral contract.
d. The contract need not be in writing.
Answer:
It is a unilateral contract.
Explanation:
A unilateral contract is a type of contract where only one party of the persons involved in the contract agrees to offer something.
In this case, Markel is offering to give Jaylin $600 for her portrait and Jaylin is not giving any specified time of delivery.
The contract is termed as the legal agreement between two-person that defines the rights and duties between the individuals or among the parties.
It is a legally enforceable obligation or the boundation between the person that accepts at their own wish for the exchange of the goods and services.
The correct option is c. It is a unilateral contract.
A unilateral contract is a type of contract where only one party of the persons involved in the contract agrees to offer something.
In this case, Markel is offering to give Jaylin $600 for her portrait and Jaylin is not giving any specified time of delivery. This is the correct option because it has been specified in the context itself about the one side contract by Markel.
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Some firms pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. Which approach is likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation?
Answer:
departmental rate
Explanation:
From the question we are informed about Some firms which pool overhead into a single plantwide overhead pool, while others accumulate overhead costs into manufacturing departments, each of which has an overhead cost pool and overhead cost application rate. In this case, the approach likely to provide more accurate cost numbers for cost estimating, pricing, and performance evaluation is departmental overhead rate.
The departmental overhead rate can be regarded as expense rate that is been calculated in production process of a factory for each of the departments. It varies at stages of the production process
Adjusting Entries and Adjusted Trial Balances
Emerson Company is a small editorial services company owned and operated by Suzanne Emerson. On October 31, 20Y6, Emerson Company's accounting clerk prepared the following unadjusted trial balance:
Emerson Company
Unadjusted Trial Balance
October 31, 20Y6
Debit Credit
Balances Balances
Cash 3,930
Accounts Receivable 35,640
Prepaid Insurance 6,640
Supplies 1,810
Land 104,800
Building 269,090
Accumulated Depreciation—Building 128,060
Equipment 125,950
Accumulated Depreciation—Equipment 91,210
Accounts Payable 11,180
Unearned Rent 6,340
Suzanne Emerson, Capital 285,400
Suzanne Emerson, Drawing 13,890
Fees Earned 302,030
Salaries and Wages Expense 180,010
Utilities Expense 39,570
Advertising Expense 21,140
Repairs Expense 16,010
Miscellaneous Expense 5,740
824,220 824,220
The data needed to determine year-end adjustments are as follows:
Unexpired insurance at October 31, $4,450.
Supplies on hand at October 31, $540.
Depreciation of building for the year, $2,950.
Depreciation of equipment for the year, $2,550.
Unearned rent at October 31, $1,650.
Accrued salaries and wages at October 31, $2,880.
Fees earned but unbilled on October 31, $16,910.
Required:
1. Journalize the adjusting entries using the following additional accounts: Salaries and Wages Payable; Rent Revenue; Insurance Expense; Depreciation Expense—Building; Depreciation Expense—Equipment; and Supplies Expense. If an amount box does not require an entry, leave it blank.
2. Determine the balances of the accounts affected by the adjusting entries and prepare an adjusted trial balance.
Answer:
Emerson Company
1. Adjusting Journal Entries
Debit Insurance expense $2,190
Credit Prepaid Insurance $2,190
To record expired insurance expense for the year.
Debit Supplies expense $1,270
Credit Supplies $1,270
To record supplies expense for the year.
Debit Depreciation expense of building $2,950
Credit Accumulated depreciation - building $2,950
To record depreciation expense for the year.
Debit Depreciation expense of equipment $2,550
Credit Accumulated depreciation - equipment $2,550
To record depreciation expense for the year.
Debit Unearned rent $4,690
Credit Rent Revenue $4,690
To record rent earned for the year.
Debit Salaries and wages Expense $2,880
Credit Salaries and wages payable $2,880
To record accrued salaries and wages.
Debit Accounts receivable $16,910
Credit Fees earned $16,910
To record fees earned but unbilled.
2. Adjusted Trial Balance as of October 31, 20Y6
Emerson Company
Adjusted Trial Balance as of October 31, 20Y6
Debit Credit
Cash $3,930
Accounts Receivable 52,550
Prepaid Insurance 4,450
Supplies 540
Land 104,800
Building 269,090
Accumulated Depreciation—Building $131,010
Equipment 125,950
Accumulated Depreciation—Equipment 93,760
Accounts Payable 11,180
Salaries and Wages Payable 2,880
Unearned Rent 1,650
Suzanne Emerson, Capital 285,400
Suzanne Emerson, Drawing 13,890
Fees Earned 318,940
Rent Revenue 4,690
Salaries & Wages Expense 182,890
Utilities Expense 39,570
Advertising Expense 21,140
Repairs Expense 16,010
Miscellaneous Expense 5,740
Insurance Expense 2,190
Supplies Expense 1,270
Depreciation Exp. Building 2,950
Depreciation Exp. Equip. 2,550
Totals $849,510 $849,510
Explanation:
a) Data and Calculations:
Emerson Company
Unadjusted Trial Balance as of October 31, 20Y6
Debit Credit
Cash $3,930
Accounts Receivable 35,640
Prepaid Insurance 6,640
Supplies 1,810
Land 104,800
Building 269,090
Accumulated Depreciation—Building $128,060
Equipment 125,950
Accumulated Depreciation—Equipment 91,210
Accounts Payable 11,180
Unearned Rent 6,340
Suzanne Emerson, Capital 285,400
Suzanne Emerson, Drawing 13,890
Fees Earned 302,030
Salaries & Wages Expense 180,010
Utilities Expense 39,570
Advertising Expense 21,140
Repairs Expense 16,010
Miscellaneous Expense 5,740
Totals $824,220 $824,220
Adjustments:
Prepaid Insurance balance = $4,450
Insurance expense = $2,190 (6,640 -4,450)
Supplies balance = $540
Supplies expense = $1,270 (1,810 - 540)
Depreciation expense of building = $2,950
Accumulated depreciation - building = $131,010 (128,060 + 2,950)
Depreciation expense of equipment = $2,550
Accumulated depreciation - equipment = $93,760 (91,210 + 2,550)
Unearned rent = $1,650
Rent Revenue = $4,690 (6,340 - 1,650)
Salaries and wages payable = $2,880
Salaries and wages = $182,890 (180,010 + 2,880)
Accounts receivable = $52,550 (35,640 + 16,910)
Fees earned = $318,940 (302,030 + 16,910)
you have $26,605.46 in a brokerage account, and you plan to deposit an additional $5,000 at the end of every future year until your account totals $270,000. you expect to earn 10% annually on the account. how many years will it take to reach your goal? do not round intermediate calculations. round your answer to the nearest whole number.
Use the following information available as of December 31 to prepare an income statement for the year and a balance sheet for Goldie Company.
Fees for services performed during the year, $123,000
Accounts payable, $17,800
Accounts receivable, $17,400
Miscellaneous expenses for the year, $9,000
Supplies on hand, $3,300
Notes payable, $25,000
Interest expense on the note for the year, $3,700
Equipment, $92,700
Cash on hand, $11,600
Salaries expense for the year, $71,500
Supplies expense for the year, $8,500
Rent expense for the year, $11,100
Common stock that has been issued, $55,000
Retained earnings at the end of the year, $27,200
Answer:
Goldie Company
a) Income Statement for the year ended December 31:
Fees for services $123,000
Miscellaneous expenses 9,000
Interest expense 3,700
Salaries expense 71,500
Supplies expense 8,500
Rent expense 11,100 $103,800
Net income 19,200
b) Balance Sheet as of December 31:
Assets:
Cash on hand $11,600
Accounts receivable 17,400
Supplies on hand 3,300
Equipment 92,700
Total assets $125,000
Liabilities and Equity:
Accounts payable $17,800
Notes payable 25,000
Common stock 55,000
Retained earnings 27,200
Total liabilities & equity $125,000
Explanation:
a) Data and Calculations:
Trial balance as of December 31:
Account Titles Debit Credit
Cash on hand $11,600
Accounts receivable 17,400
Supplies on hand 3,300
Equipment 92,700
Accounts payable $17,800
Notes payable 25,000
Common stock 55,000
Retained earnings 8,000
Fees for services 123,000
Miscellaneous expenses 9,000
Interest expense 3,700
Salaries expense 71,500
Supplies expense 8,500
Rent expense 11,100
Totals $228,800 $228,800
Retained Earnings at January 1 = $8,000 (27,200 - 19,200)
Net income 19,200
Retained Earnings at December 31 $27,200
Black Bear Construction Company has a contract to construct a $6,000,000 bridge at an estimated cost of $5,300,000. The contract is to start in July 2017, and the bridge is to be completed in October 2019. The following data pertain to the construction period.
2015 2016 2017
Costs to date $1,325,000 $3,780,000 $5,430,000
Estimated costs to complete 3,975,0001, 620,000 —
Progress billings during the year 1,200,000 3,200,000 1,600,000
Cash collected during the year 1,000,000 2,340,000 2,660,000
What amount of gross profit should Black Bear recognize in 2017 using the percentage-of-completion method?
a. $150,000
b. $169,000
c. $210,000
d. $530,000
Answer:
a. $150,000
Explanation:
Calculation for What amount of gross profit should Black Bear recognize in 2017 using the percentage-of-completion method
First step is to calculate the Total estimated contract costs at 2016
Total estimated contract costs at 2016=$3,780,000+$1,620,000
Total estimated contract costs at 2016=$5,400,000
Second step is to calculate the Percentage of completion
Percentage of completion = $3,780,000 / ($3,780,000+$1,620,000)
Percentage of completion =$3,780,000 / $5,400,000
Percentage of completion =0.7*100
Percentage of completion =70%
Now let calculate the gross profit
Using this formula
Gross profit=Percentage of completion *(Contract Price-Total estimated contract costs at 2016)
Let plug in the formula
Gross profit=70%*($6,000,000-$5,400,000)
Gross profit=70%*$600,000
Gross profit=$150,000
Therefore amount of gross profit should Black Bear recognize in 2017 using the percentage-of-completion method will be $150,000
Northwood Company manufactures basketballs. The company has a ball that sells for $25. At present, the ball is manufactured in a small plant that relies heavily on direct labor workers. Thus, variable expenses are high, totaling $15.00 per ball, of which 60% is direct labor cost. Last year, the company sold 60,000 of these balls, with the following results:
Sales (60,000 balls) $1,500,000
Variable expenses 900,000
Contribution margin 600,000
Fixed expenses 375,000
Net operating income $225,000
Required:
a. Compute the CM ratio and the break-even point in balls.
b. Compute the the degree of operating leverage at last year
Answer:
A. 37,500 balls
B.2.67
Explanation:
A. Compution for the CM ratio and the break-even point in balls.
First step is to calculate the Contribution margin
Selling price $25 100%
Variable expenses $15 60%
Contribution margin $10 40%
($25-$15)
Now let calculate the CM ratio and the break-even point in balls using this formula
Unit sales to break even=Fixed expenses/Unit contribution margin
Let plug in the formula
Unit sales to break even=$375,000/$10
Unit sales to break even= 37,500 balls
Therefore the CM ratio and the break-even point in balls will be 37,500 balls
b. Computation for the degree of operating leverage at last year
Using this formula
Degree of operating leverage =Contribution margin/Net operating income
Let plug in the formula
Degree of operating leverage=$600,000/$225,000=
Degree of operating leverage = 2.67 (rounded)
Therefore the degree of operating leverage at last year will be 2.67
Countries' real GDP per capita growth rates differ largely due to disparities in the rates at which they accumulate ____________ , as well as the rate of _________. In many countries, growth has been achieved through high rates _________ and________ spending.
Answer:
Human and physical capital; technological change; savings; investment.
Explanation:
The Gross Domestic Products (GDP) is the measure of the total market value of all finished goods and services made within a country during a specific period.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being, these includes;
I. Real Gross Domestic Product should be adjusted for any price level change using a price index. This simply means, it is adjusted for inflation to measure the value of goods and services produced by a country in a specific period of time.
Mathematically, [tex]{Real \; GDP} = \frac{Nominal \; GDP}{GDP \; deflator}[/tex]
Countries' real GDP per capita growth rates differ largely due to disparities in the rates at which they accumulate human and physical capital, as well as the rate of technological change. In many countries, growth has been achieved through high rates savings and investment spending.
Hence, an inflationary gap, also known as the expansionary gap in economics is used to measure the difference between the gross domestic product (GDP) and the current level of Real Gross Domestic Products that exists when a country's economy is gauged at a full employment rate.
A mortgage is a document in which a lender reclaims a property due to lack of payment by the borrower.
True
False
Answer:
False!
Explanation:
A foreclosure document is what a lender uses to reclaim a property due to lack of borrower payment.
Now imagine that Tiger Pros is 60% financed with equity and 40% financed with debt. Cost of equity is 16.5% and after-tax cost of debt is 11%. It has the same perpetual EBIT of $500 a year but has a $120 perpetual interest expense. The firm is subject to a 21% tax rate. What is the market value of Tiger Pros
Answer:
$2,762.24
Explanation:
The computation of the market value as follows:
But before that WACC is
WACC is
= Weight of Equity × Cost of Equity + Weight of Debt × Cost of Debt × (1 -Tax Rate)
= 60% × 16.5% + 40% × 11%
= 14.30%
Now the Market Value is
= (EBIT) × (1 - Tax rate) ÷ WACC
= $500 × (1 - 21%) ÷ 14.30%
= $2,762.24
Adams Company has two products: A and B. The annual production and sales of Product A is 2,300 units and of Product B is 1,700 units. The company has traditionally used direct labor-hours as the basis for applying all manufacturing overhead to products. Product A requires 0.3 direct labor-hours per unit and Product B requires 0.6 direct labor-hours per unit. The total estimated overhead for next period is $105,475.
The company is considering switching to an activity-based costing system for the purpose of computing unit product costs for external reports. The new activity-based costing system would have three overhead activity cost pools--Activity 1, Activity 2, and General Factory--with estimated overhead costs and expected activity as follows:
Total Estimated
Overhead
Costs Expected Activity
Product A Product B Total
Activity 1 $32,592 1,600 1,200 2,800
Activity 2 18,564 2,300 800 3,100
General Factory54,319 690 1,020 1,710
Total $105,475
(Note: The General Factory activity cost pool's costs are allocated on the basis of direct labor-hours.)
The overhead cost per unit of Product B under the traditional costing system is closest to:________.
a. $20.30
b. $14.62
c. $16.71
d. $37.01
Answer:
The correct answer is D.
Explanation:
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Total estimated overhead= $105,475
Total direct labor hours= (2,300*0-3) + (1,700*0.6)
Total direct labor hours= 1,710
Predetermined manufacturing overhead rate= 105,475 / 1,710
Predetermined manufacturing overhead rate= $61.68 per direct labor hour
Now, we can allocate overhead to Product B:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 61.68*(0.6*1,700)
Allocated MOH= $62,913.6
Finally, the cost per unit:
Cost per unit= 62,913.6/1,700
Cost per unit= $37