Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $220 million of 8% bonds, dated January 1, on January 1, 2018. Management intends to have the investment available for sale when circumstances warrant. When the company purchased the bonds, management elected to account for them under the fair value option. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $201 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2018, was $210 million.

Required:
a. Prepare the journal entry to record Fuzzy Monkey’s investment on January 1, 2018.
b. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2018.
c. Prepare the journal entries by Fuzzy Monkey to record interest on December 31, 2018.

Answers

Answer 1

Answer:

January 1, 2018

Dr Investment in bonds 220,000,000

    Cr Cash 201,000,000

    Cr Discount on investment in bonds 19,000,000

June 30, 2021

Dr Cash 8,800,000

Dr Discount on investment in bonds 1,250,000

    Cr Interest revenue 10,050,000

December 31, 2018

Dr Cash 8,800,000

Dr Discount on investment in bonds 1,312,500

    Cr Interest revenue 10,112,500

discount amortization = ($201,000,000 x 5%) - $8,800,000 = $1,250,000

discount amortization = ($202,250,000 x 5%) - $8,800,000 = $1,312,500


Related Questions

Which are included in a customer profile?

Select all that apply.

A.)social media messages
B.)socioeconomic status
C.)promotions and prices
D.)attitudinal and behavioral details
E.)marketing strategies
F.)demographic information

Answers

Hey there!

I would say the answers are B, C, F

The others do not seem like something that would be in a customer profile.

Hope it helps and have a great day!

A corporate culture is generally defined as the

Answers

Answer:

inner rites, rituals, heroes, and values of a firm. one's duty to do a job or perform a task is called.

Explanation:

A corporate culture is the shared values, beliefs, attitudes, and behaviors that exist within a company or organization.

Corporate culture is shaped by various factors, including the company's mission, vision, and core values, as well as its history, leadership style, and the behaviors exhibited by top management. It can also be influenced by the industry in which the organization operates, geographical location, and the composition of its workforce.

A positive corporate culture promotes teamwork, innovation, open communication, and a healthy work-life balance. On the other hand, a negative or toxic culture can lead to low morale, high turnover, and hinder the organization's overall success.

In conclusion, a corporate culture is the collective values, beliefs, attitudes, and behaviors that define an organization's identity and shape the working environment. It has a significant impact on employee engagement, productivity, and the overall success of the company.

To know more about corporate culture here

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Assuming that the balance sheet of BG Land Development is as follows:
Assets Liabilities and Capital
Cash $20,000 Accounts payable $80,000
Non-cash assets 200,000 Mitchell, Loan 10,000
Matthews, capital 50,000
Mitchell, capital 66,000
Michaels, capital 14,000
Total assets $220,000 Total Liab. and capital $220,000
Required:
If partners are to receive the final payment in a lump-sum, when BG Land Development is liquidated, Matthews receives $___, Mitchell receives $____, Michaels receives $____.

Answers

Answer:

BG Land Development

If partners are to receive the final payment in a lump-sum, when BG Land Development is liquidated, Matthews receives $_50,000__, Mitchell receives $_66,000___, Michaels receives $__14,000__.

Explanation:

a) Data and Calculations:

Assets Liabilities and Capital

Cash                     $20,000 Accounts payable          $80,000

Non-cash assets  200,000 Mitchell, Loan                    10,000

                                             Matthews, capital            50,000

                                             Mitchell, capital                66,000

                                             Michaels, capital               14,000

Total assets     $220,000   Total Liab. and capital $220,000

Totals assets = $220,000

Total liabilities     (90,000)

Net assets =     $130,000

Partners' capital:

Matthews, capital  50,000

Mitchell, capital     66,000

Michaels, capital    14,000

Total capital =      130,000

b) Each partner is entitled to the ratio of his capital balance or the profit and loss sharing ratio, if any.  The net asset is computed by deducting all the liabilities, including one of the partners' loans, from the total value of realizable assets.  Ordinarily, partners' loans enjoy priority over capital refund during partnership liquidation.

It is generally recognized that the spending habits of individuals changes over their lives. In general, young adults tend to spend__________ than they earn, while older adults tend to spend_________. To accommodate their spending habits, young adults tend to rely on funds raised from__________. Retired adults, in contrast, tend to rely on_________ to cover the frequent shortage between their current expenditures and their current incomes.

Answers

Answer:

1. more

2. less

3. borrowing

4. past savings

Explanation:

It is generally recognized that the spending habits of individuals changes over their lives. In general, young adults tend to spend more than they earn, while older adults tend to spend less. To accommodate their spending habits, young adults tend to rely on funds raised from borrowing . Retired adults, in contrast, tend to rely on past savings to cover the frequent shortage between their current expenditures and their current incomes.

From a salesperson's perspective, the characteristics of a good manager: A. vary from manager to manager. B. conflict with the characteristics managers list as being traits of a good manager. C. are a rarity in modern sales organizations. D. include friendship and loyalty E. include flexibility and a team orientation.

Answers

Answer:

E. include flexibility and a team orientation.

Explanation:

Sales management is the process that maintains customers sales by planning, direction and control of the sales process.

It involves motivation, supervising, delegation, and equipping of the sales force.

This is a people oriented career and therefore requires flexibility and a team orientation. So the team is able to adapt to new strategies aimed at improving the sales process.

Direct Materials Variances Bellingham Company produces a product that requires 16 standard pounds per unit. The standard price is $9 per pound. If 2,400 units required 39,600 pounds, which were purchased at $8.64 per pound, what is the direct materials (a) price variance, (b) quantity variance, and (c) total direct materials cost variance? Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number.

Answers

Answer:

Results are below.

Explanation:

To calculate the direct material price and quantity variance, we need to use the following formula:

Direct material price variance= (standard price - actual price)*actual quantity

Direct material price variance= (9 - 8.64)*39,600

Direct material price variance= $14,256 favorable

Direct material quantity variance= (standard quantity - actual quantity)*standard price

Direct material quantity variance= (2,400*16 - 39,600)*9

Direct material quantity variance= -$10,800 unfavorable

Total variance= 14,256 - 10,800

Total variance= $3,456 favorable

Jefferson Company, a commercial painting contractor, uses a normal-costing system to cost each job. Its job-costing system has two direct-cost categories (direct materials and direct labor) and one indirect-cost pool called overhead costs. To each job, Jefferson allocates overhead at a budgeted rate of 80% of direct labor costs.

Jefferson provides the additional information for February:

1. As of February 1, Job A21, the only job in process, had incurred direct material costs of $30,000 and direct labor costs of $50,000.

2. Jobs A22, A23, and A24 were started in February.

3. Direct materials used during February were $150,000.

4. Direct labor costs for February were $120,000.

5. Actual overhead costs for February were $102,000.

6. On February 28, Job A24 was the only job still in process, and it had incurred direct materials costs of $20,000 and direct labor costs of $40,000.

As each job is completed, its cost is transferred to the Cost of Jobs Billed account. Each month, Jefferson closes any under-or over-allocated overhead to Cost of Jobs Billed.

1. Give one example of a direct cost and one example of an overhead cost for a job undertaken by Jefferson Company.

2. Calculate the overhead allocated to Job A21 as of February 1.

3. Calculate the overhead allocated to Job A24 as of February 28.

4. Calculate the under- or overallocated overhead for February.

5. Calculate ending balance of jobs still in process as of February 28.

6. Compute the Cost of Jobs Billed for February.

Answers

Answer:

Jefferson Company

1. An example of a direct cost is the cost of direct raw materials.  An example of an overhead cost is cost of factory repairs and maintenance.

2. The overhead allocated to Job A21 as of February 1 is $40,000.

3. The overhead allocated to Job A24 as of February 28 is $32.000.

4. The under-allocated overhead for February is $6,000

5. The ending balance of jobs still in process as of February 28 is $92,000.

6. The Cost of Jobs Billed for February is $394,000.

Explanation:

a) Data and Calculations:

Budgeted overhead allocation rate = 80% of direct labor costs

Beginning WIP:

Materials                     $30,000

Direct labor                   50,000

Overhead                     40,000 ($50,000 * 80%)

Overhead allocated to Job A21 as of February 1 = $40,000 ($50,000 * 80%)

Overhead allocated to Job A24 as of February 28 = $32,000 ($40,000 * 80%)

Total overhead allocated for February = $96,000 ($120,000 * 80%)

Actual overhead costs incurred = $102,000

Therefore, the under-allocated overhead for February = $6,000

The ending balance of jobs still in process as of February 28 (Job A24) =

Materials costs = $20,000

Labor costs = $40,000

Overhead applied = $32,000

Total costs = $92,000

Cost of Jobs Billed:

Beginning WIP: Cost of Job A21 = $120,000 ($30,000 + 50,000 + 40,000)

Costs incurred during the period:

Cost of Direct Materials                   150,000

Cost of Direct Labor                        120,000

Allocated overhead costs                 96,000

Total costs of production =          $486,000

Less Ending WIP (Job A24) =           92,000

Cost of Jobs Billed for February $394,000

n the following list are a number of well-known companies and the products that they sell. Which of the four types of markets (pure monopoly, oligopoly, monopolistic competition, perfect competition) best characterizes the markets in which they compete? Explain why. a) McDonald's- hamburgers b) ExxonMobil- gas c) Dell- personal computers d) Heinz- ketchup e) Proctor & Gamble- disposable diapers f) Starbucks- gourmet coffee g) Domino’s- pizza h) Intel- computer chip for the PC (p. 381 #9)

Answers

Answer:

Monopolistic Competition is the type of market that characterizes the markets in which the following compete:

a) McDonald's- hamburgers

b) ExxonMobil- gas  

c) Dell- personal computers

d) Heinz- ketchup

e) Procter & Gamble- disposable diapers  

f) Starbucks- gourmet coffee

g) Domino’s- pizza

h) Intel- computer chip for the PC

2. The reason for this choice is that there is no perfect competition in any market.  It remains an ideal.  The products of these firms are not perfect substitutes.  The firms do not have equal market share and control in their respective markets or industry.  Lastly, there is no single producer in any of the markets.

Explanation:

Types of markets:

Pure monopoly = a single producer with no substitute product or service.

Oligopoly = two or more firms in an industry with equal market share and control.

Monopolistic competition = Many firms offering similar products that are not perfect substitutes

Perfect competition = Many firms offering similar products that are perfect substitute.

Consider the following data that gives the quantity produced and unit price for three different goods across two different years to answer the following questions. Assume that the base year is 2012. Good2012 Price2012 Quantity2013 Price2013 Quantity A$2.00 500$2.50600 B$4.001,000$5.00900 C$2.00 200$1.00300 What was the real gross domestic product (GDP) in 2013

Answers

Answer:

$5400

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

Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.

($2 x 600) + ($4 x 900) + ($2 x 300) = $5400

Stupendous Productions, Inc. again this year want to put on its Rock-and-Roll Revival, a two-week fesitval with some of the greatest acts in the music industry, on your land. You are not sure you want to allow Stupendous Productions, Inc. to put on the festival. Stupendous is threatening legal action. What should Stupendous ask the Court to find?A. A prescriptive easementB. An implied license base upon prior useC. Breach of contractD. None of the above

Answers

Answer:

A. A prescriptive easement

Explanation:

A prescriptive easement is defined as the right of a person to use another person's property for a legally defined period of time.

This does not confer ownership to the user only the right to use the land.

In the given scenario Stupendous Productions, Inc. again this year want to put on its Rock-and-Roll Revival, a two-week fesitval with some of the greatest acts in the music industry, on your land.

Since they had used the land before, in court they can ask for a prescriptive easement to use the land for the concert

In 2004 a California woman named Lisa Torti was in a vehicle with her friend Alexandra Van Horn when they were involved in a car accident that was not their fault. Lisa, upon seeing what she thought was smoke, grabbed Alexandra and quickly pulled her out of the vehicle and away from danger. Alexandra had a severe spinal injury and later sued Lisa for moving her away from the smoking vehicle (and thereby causing more spinal injury).

Many states have laws that prevent bringing lawsuits against a "good samaritan" who is attempting to help you. However, in 2008 a California court ruled 4-3 that Alexandra’s lawsuit against Lisa was justified and could continue.

Assuming Lisa was in fact negligent in moving her friend from the vehicle, discuss your opinion on whether cases like this should be allowed to be brought. Under what circumstances should a "good samaritan" be allowed to be sued?

Explain your answer in 2 or more paragraphs. Then review a few of your classmates posts and give a substantive response to one of them with a paragraph.

Answers

The correct answer to this open question is the following.

This case is complex because the "good samaritan" is always doing things trying to help and under these circumstances such as danger or accident, tje individual is under so much stress, nervousness, and fear. So more than thinking, he/she is reacting.

And that is what Lisa did when she saw smoke in the car. She thought that her friend could be in danger or great risk and her first reaction -not thinking- was to move her and keep her out of the danger zone.

Assuming Lisa was in fact negligent in moving her friend from the vehicle, the trial should proceed but it is difficult to demonstrate in court the real intentions of the "good samaritan."

The circumstances in which a "good samaritan" should be allowed to be sued is when there is clear evidence that he/she acted on purpose, trying to inflict pain or damage to the other person.

Lisa Torti was sued by her friend Alexandra Van Horn, after a car accident in 2004. The California court concluded that there was no medical reason to pull Alexandra out of the car, causing her vertebral damage.  

The following transactions apply to Pecan Co. for 2018, its first year of operations:1. Received $100,000 cash in exchange for issuance of common stock.2. Secured a $300,000 five-year installment loan from State Bank. The interest rate is 5 percent and annual payments are $69,292.3. Purchased land for $100,0004. Provided services for $260,000.5. Paid other operating expenses of $150,000.6. Paid the annual payment on the loan. Round answers to nearest whole dollar.Required:a. Organize the transaction data in accounts under an accounting equation.b. Prepare an income statement and balance sheet for 2018.c. What is the interest expense for 2019? 2020?

Answers

Answer:

Pecan Co.

a. Accounting equation: Assets = Liabilities + Equity

Assets: Cash ($100,000 + 300,000 - 100,000 - 150,000 - 69,292) + Land ($100,000) + Accounts Receivable ($260,000) = Liabilities: Bank Loan ($245,708) + Equity: Common stock ($100,000) + Retained Earnings ($260,000 - 150,000 - 15,000)

b1: Income Statement

Service Revenue       $260,000

Operating expenses    150,000

Interest expense            15,000

Net income                  $95,000

Balance Sheet

Cash                                 $80,708

Accounts Receivable      260,000

Land                                 100,000

Total assets                  $440,708

Bank Loan                    $245,708

Common stock               100,000

Net income                      95,000

Total liabilities+equity $440,708

b2. The interest expense for 2019 is $15,000 ($300,000 * 5%)

The interest expense for 2020 is $12,285.40 ($300,000 +15,000 - 69,292) * 5%.

Explanation:

a) Data and Calculations:

Cash $100,000 + 300,000 - 100,000 - 150,000 - 69,292 = $80,708

Accounts Receivable $260,000

Land $100,000

Common stock $100,000

Bank Loan $300,000 + 15,000 - 69,292 = $245,708

Service Revenue $260,000

Operating expenses $150,000

Amortization Schedule, using an online financial calculator:

Beginning  Interest              Principal Ending

           Balance                                                       Balance

1 $300,000.00 $15,000.00 $54,292.44 $245,707.56

2 $245,707.56 $12,285.38 $57,007.06 $188,700.50

3 $188,700.50 $9,435.02 $59,857.41 $128,843.08

4 $128,843.08 $6,442.15 $62,850.29 $65,992.80

5 $65,992.80 $3,299.64 $65,992.80 $0.0

Which of the following financial statements are required for a Debt Service Fund? Multiple Choice Statement of revenues, expenditures, and changes in fund balances only. Balance sheet and statement of revenues, expenditures, and changes in fund balance only. Balance sheet; statement of revenues, expenditures, and changes in fund balance; and statement of cash flows. Statement of net position only.

Answers

Answer:

Balance sheet; statement of revenues, expenditures, and changes in fund balance.

Explanation:

Under the Codification of Governmental Accounting and Financial Reporting Standards by the Governmental Accounting Standards Board (GASB); Code 200 states that debt service funds are to be used to service terms and bond reserves, guaranty, warrants, note, capital leases, or sinking funds.

Debt service funds is a cash reserve which is used to report account and pay for the interest and principal payment on financial resources that are restricted, committed or assigned to expenditure except debt of proprietary and fiduciary funds who account for their own interest and principle payments.

The purpose of using a debt service fund is to reduce the risk of a debt security for investors, thereby making it more attractive and appealing to them. Also, the debt service fund helps to mitigate the effective interest rate needed by the government to sell the offering.

The following financial statements are required for a Debt Service Fund;

I. Balance sheet.

II. Statement of revenues.

III. Expenditures.

IV. Changes in fund balance.

criminal charges are prosecuted by the party that was wronged true or falsebusiness​

Answers

It’s true

Criminal Law

It’s a crime to make unauthorized and harmful physical contact with another person (battery). In fact, it’s a crime even to threaten such contact (assault). Criminal law prohibits and punishes wrongful conduct, such as assault and battery, murder, robbery, extortion, and fraud. In criminal cases, the plaintiff—the party filing the complaint—is usually a government body acting as a representative of society. The defendant—the party charged in the complaint—may be an individual (such as your roommate) or an organization (such as a business). Criminal punishment includes fines, imprisonment, or both.

Civil Law

Assault and battery may also be a matter of civil law—law governing disputes between private parties (again, individuals or organizations). In civil cases, the plaintiff sues the defendant to obtain compensation for some wrong that the defendant has allegedly done the plaintiff. Thus your roommate may be sued for monetary damages by the homeowner’s neighbor, with whom he made unauthorized and harmful physical contact.

In civil litigation, contract and tort claims are by far the most numerous. The law attempts to adjust for harms done by awarding damages to a successful plaintiff who demonstrates that the defendant was the cause of the plaintiff’s losses. Torts can be intentional torts, negligent torts, or strict liability torts. Employers must be aware that in many circumstances, their employees may create liability in tort.

Bonita Industries pays all salaried employees on a biweekly basis. Overtime pay, however, is paid in the next biweekly period. Bonita accrues salaries expense only at its December 31 year end. Data relating to salaries earned in December 2020 are as follows: Last payroll was paid on 12/26/20, for the 2-week period ended 12/26/20. Overtime pay earned in the 2-week period ended 12/26/20 was $26000. Remaining work days in 2020 were December 29, 30, 31, on which days there was no overtime. The recurring biweekly salaries total $445000.

Assuming a five-day workweek, Bonita should record a liability at December 31, 2020 for accrued salaries of:________

Answers

Answer:

$159,500

Explanation:

Liability for accrued salaries = $26,000 + ($445,000/10*3)

Liability for accrued salaries = $26,000 + $133,500

Liability for accrued salaries = $159,500

So, Bonita should record a liability at December 31, 2020 for accrued salaries of $159,500

At the end of its most recent accounting period, Hinch Corporation had a balance of Accounts Receivable of $725,000 and a credit balance in Allowance for Uncollectible Accounts of $4,800. An aging of Accounts Receivable performed at the end of that period determined that the balance in Allowance for Uncollectible Accounts should be $31,400. The adjusting entry to record Bad Debts Expense should include which of the following:

a. Debit to Bad Debts Expense of $26,600
b. Credit to Bad Debts Expense of $31,400
c. Debit to Bad Debts Expense of $36,200
d. Credit to Allowance for Uncollectible Accounts of $31,400

Answers

Answer:

a. Debit to Bad Debts Expense of $26,600

Explanation:

The computation of the bad debt expense is shown below:

= Allowance for uncollectible accounts - credit balance of allowance for uncollectible accounts

= $31,400 - $4,800

= $26,600

Hence, the first option is correct

Edith is the owner and manager of a small coffee shop that employs three workers who use the shop’s one coffee machine to make and serve coffee to paying customers. Business has begun to pick up; lines are getting longer every day in her shop. On a busy morning, she sees her baristas scrambling to take orders, get cups, fill coffee from the coffee machine, add cream and sugar, and serve customers in a timely manner. She figures if she hires three more baristas she’ll be able to sell twice as much coffee.Adding more and more workers does not constantly increase production because of _______SELECT THE CORRECT ANSWER different productivity levels between various laborers.diminishing marginal costs.diminishing marginal product of labor.substitutes in production.

Answers

Answer:

diminishing marginal product of labor.

Explanation:

The diminishing marginal product of labor theory states that as more of a variable production factor is increased there will initially be an increase in production.

However as more of the variable factor is added increase in production reduces until increase in variable factor results in decrease in production.

In the given scenario where Edith employs 3 baristas, an increase to 6 may yield lower productivity per unit of employee added

A partial listing of costs incurred at Archut Corporation during September appears below: Direct materials $ 113,000 Utilities, factory $ 5,000 Administrative salaries $ 81,000 Indirect labor $ 25,000 Sales commissions $ 48,000 Depreciation of production equipment $ 20,000 Depreciation of administrative equipment $ 30,000 Direct labor $ 129,000 Advertising $ 135,000 The total of the manufacturing overhead costs listed above for September is: Multiple Choice $292,000 $50,000 $586,000 $30,000 PrevQuestion 7 of 10 Total7 of 10Visit question mapNext

Answers

Answer: $50,000

Explanation:

Manufacturing overhead are the costs that are indirectly related to production.

In this scenario those costs are:

Utilities, Factory, Indirect labor and Depreciation of production equipment.

= 5,000 + 25,000 + 20,000

= $50,000

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,283,744 as follows.
Work in process, November 1
Materials $78,600
Conversion costs 48,700 $127,300
Materials added 1,592,280
Labor 225,100
Overhead 339,064
Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 661,000 units were started into production, and 25,400 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
Determine the equivalent units of production and the unit production costs for the Assembly Department. (Round unit costs to 2 decimal places, e.g. 2.25.)

Answers

Answer:

Equivalent units of Production for Materials.

= Units transferred out + Ending WIP

Units transferred out = Beginning WIP + Units started in production - Ending WIP

= 35,200 + 661,000 - 25,400

= 670,800 units

= 670,800 + 25,400

= 696,200 units

Equivalent units of Production for Conversion

= Units transferred out + Ending WIP Conversion

= 670,800 + (25,400 * 40%)

= 680,960 units

Units cost of production for Materials

= (Beginning material cost + Materials added) / Materials EUP

= (78,600 + 1,592,280) / 696,200

= $2.40

Units cost of production for Conversion

= (Beginning conversion + labor + overhead) / Conversion EUP

= (48,700 + 225,100 + 339,064) / 680,960

= $0.90

How do you make people interested in your business?

Answers

Identify Your Ideal Client. It's easier to look for customers if you know the type of consumers you seek.

Discover Where Your Customer Lives.

Know Your Business Inside and Out.

Position Yourself as the Answer.

Try Direct Response Marketing.

Build Partnerships.

Follow Up.

Attract New Customers Using Social Media. Optimizing your social media accounts takes very little time to do and can significantly increase your reach.

Improve Website SEO.

Engage with Loyal Customers.

Collaborate with Local Business Partners.

Social Media Giveaways.

Explanation:

Ask for referralsNetworkoffer discounts and incentive for new customers onlyRe- contact old customersImprove your websitepartners with complementary businesspromote your expertiseuse online reviews to your advantage

Assume the following adjustment data.
1. Supplies on hand at October 31 total $500.
2. Expired insurance for the month is $100.
3. Depreciation for the month is $75.
4. As of October 31, services worth $800 related to the previously recorded unearned revenue had been performed.
5. Services performed but unbilled (and no receivable has been recorded) at October 31 are $280.
6. Interest expense accrued at October 31 is $70.
7. Accrued salaries at October 31 are $1,400.
Prepare the adjusting entries for the items above.

Answers

Answer:

1.Dr Supplies Expense $2,000

Cr Supplies $2,000

2. Dr Insurance Expense $100

Cr Prepaid Insurance $100

3. Dr Depreciation Expense $75

Cr Accumulated Depreciation- Equipment $75

4. Dr Unearned Service Revenue $800

Cr Service Revenue $800

5. Dr Accounts Receivable $280

Cr Service Revenue $280

6. Dr Interest Expense $70

Cr Interest Payable $70

7. Dr Salaries & Wages Expense $1,400

Cr Salaries & Wages Payable $1,400

Explanation:

Preparation of the adjusting entries

1. Dr Supplies Expense $2,000

Cr Supplies $2,000

[$2,500 - $500]

2. Dr Insurance Expense $100

Cr Prepaid Insurance $100

3. Dr Depreciation Expense $75

Cr Accumulated Depreciation- Equipment $75

4. Dr Unearned Service Revenue $800

Cr Service Revenue $800

5. Dr Accounts Receivable $280

Cr Service Revenue $280

6. Dr Interest Expense $70

Cr Interest Payable $70

7. Dr Salaries & Wages Expense $1,400

Cr Salaries & Wages Payable $1,400

An accountant is starting a new job and wants to make sure he does not put himself or his company at legal risk. He talks to his companyâs law department about which areas of law he should brush up on. The company lawyer tells him relevant areas of the law he should be aware of include:

a. White collar crime, liability of accountants, contracts
b. Product liability, comparative law, agency law
c. Antitrust law, liability of accountants, insurance law
d. Liability of accountants, international law, employment discrimination
e. Antitrust law, international law, consumer law

Answers

Answer: White collar crime, liability of accountants, contracts

Explanation:

Based on the information given, the company lawyer will tell him relevant areas of the law he should be aware of such as white collar crime, liability of accountants, and contracts.

White-collar crime simply refers to crime that a person may commit against a business and they are financially motivated e.g embezzlement, fraud, money laundering etc.

Also, when a misstatement occurs when preparing an account, the accountant is liable and in such case,will be held responsible for any inaccuracies that was noticed.

Based on the above explanation, the accountant should be aware of white collar crime, liability of accountants, contracts.

(a) Explain the quantity theory and
(b) how does the theory explains the cause of inflation​

Answers

The quantity theory is a framework to understand price changes in relation to the supply of money in an economy.

It assumes an increase in money supply creates inflation and vice versa.

Ryan Corporation manufactures auto steering systems. Cost estimates for one unit of the product for the year follow:
Direct materials $200
Direct labor ($12/hour) $300
Machine hours 20
This product requires 15 hours of direct labor in Department A and 10 hours in Department B. Also, it requires 5 machine hours in Department A and 15 machine hours in Department B.
The factory overhead costs estimated in these two departments follow:
Variable cost Fixed cost
A $ 150,000 94,000
B $ 80,000 163,000

Management expects the firm to produce 1,000 units during the year.
Required
1. Assume that factory overhead was applied on the basis of direct labor hours. Compute the predetermined plantwide factory overhead rate.
2. If factory overhead were applied on the basis of machine hours, what would be the plantwide overhead rate?
3. If the company produced 1,000 units during the year, what was the total amount of applied factory over-head in each department in requirements 1 and 2?
4. If you were asked to evaluate the performance of each department manager, which allocation basis (cost driver) would you use? Why?
5. Compute the departmental overhead rate and amount of applied overhead for Department A using direct labor hours as the allocation base and for Department B using machine hours as the allocation base.

Answers

1) The predetermined plantwide factory overhead rate based on direct labor hours is $10.28.

2) The predetermined plantwide factory overhead rate based on machine hours = $12.85 ($257,000/20,000)

3) The total applied factory overhead:

                           Department A    Department B    Total

Requirement 1        $154,200            $102,800    $257,000

Requirement 2          64,250               192,750      257,000

4. The allocation basis for Department A should be direct labor hours.  The department is more labor-intensive.  The allocation basis for Department B should be machine hours as it is more machine-intensive.

5) The computation of the departmental overhead rate and amount of applied overhead for Department A using direct labor hours as the allocation base and for Department B using machine hours as the allocation base is as follows:

                                          Department A    Department B

Direct labor hours                       15,000                        

Machine hours                                                       15,000

Fixed factory overheads         $94,000           $163,000

Departmental overhead rate  $6.27                    $10.87 ($163,000/15,000)

Applied Overhead                  $154,200          $192,750

                                       ($10.28 x 15,000)    ($12.85 x 15,000)

Data and Calculations:

Cost of One Unit:

Direct materials $200

Direct labor ($12/hour) $300

Direct labor hour per unit = 25 hours ($300/$12)

Total direct labor hours = 25,000 (25 x 1,000)

Total machine hours = 20,000 (20 x 1,000)

                                          Department A    Department B    Total

Direct labor hours                      15                        10                 25

Machine hours                            5                        15                  20

Variable factory overheads $150,000           $80,000    $230,000

Fixed factory overheads         94,000            163,000       257,000

Total annual production units = 1,000 units

1) Predetermined plantwide factory overhead rate based on direct labor hours = $10.28 ($257,000/25,000)

2) Predetermined plantwide factory overhead rate based on machine hours = $12.85 ($257,000/20,000)

3) Total applied factory overhead:

                                          Department A    Department B    Total

Direct labor hours                 $154,200            $102,800    $257,000

Machine hours                          64,250              192,750       257,000

5) Departmental Overhead Rate and Applied Overhead:

                                          Department A    Department B

Direct labor hours                       15,000                        

Machine hours                                                       15,000

Fixed factory overheads         $94,000           $163,000

Departmental overhead rate  $6.27                    $10.87 ($163,000/15,000)

Applied Overhead                  $154,200          $192,750

                                       ($10.28 x 15,000)    ($12.85 x 15,000)

Learn more about predetermined overhead rates at https://brainly.com/question/26372929

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The distance between defects in an automated weaving process at Craft Mills, Inc. is exponentially distributed. On average there are 0.025 defects per foot. Use the random number 0.749 to simulate the distance between two defects.

Answers

Answer:

28.57 ft

Explanation:

On an average there are about : 0.025 defects per foot

using a random number of 0.749 to simulate the distance between two defects is = 28.57 ft

attached below is  a detailed solution of the above problem

Jeremiah expressed his disdain for the economic reports he heard on the news. "All economists care about is increasing GDP," he said. "I wish economists cared about living conditions and well-being instead of just some economic indicator." How could you acknowledge the shortcomings of GDP to Jeremiah, while also showing him how GDP functions as both an economic indicator and a measure of well-being? While it is true that GDP calculations omit such things as and , it is still a useful way to measure .

Answers

Answer: the value as opposed to the price of an item; environmental degradation; total output and income.

Explanation:

While it is true that GDP calculations omit such things as the value as opposed to the price of an item and environmental degradation, it is still a useful way to measure total output and income.

Gross Domestic Product is a means of measuring economic performance over a given period(usually a year). It works by adding up the final value of the goods and services produced in a country in that given period and thus can show the total output and income in a country.

Sadly however, it has some shortcomings. One of those is that it uses the prices of goods not their actual value. Another is that it does not take into account important factors such as environmental degradation which if added, would reduce GDP because the environment on average suffers negatively from production.

Suppose that Portugal and Austria both produce beer and cheese. Portugal's opportunity cost of producing a pound of cheese is 3 barrels of beer while Austria's opportunity cost of producing a pound of cheese is 11 barrels of beer.
By comparing the opportunity cost of producing cheese in the two countries, you can tell that_______has a comparative advantage in the production of cheese and _______ has a comparative advantage in the production of beer.
Suppose that Portugal and Austria consider trading cheese and beer with each other. Portugal can gain from specialization and trade as long as it receives more than_______of beer for each pound of cheese it exports to Austria. Similarly, Austria can gain from trade as long as it receives more than _______ of cheese for each barrel of beer it exports to Portugal.
Based on your answer to the last question, which of the following prices of trade (that is, price of cheese in terms of beer) would allow both Austria and Portugal to gain from trade?
A. 4 barrels of beer per pound of cheese
B. 6 barrels of beer per pound of cheese
C. 13 barrels of beer per pound of cheese
D. 2 barrels of beer per pound of cheese

Answers

Answer:

Portugal and Austria

Comparative Advantage in the Production of Beer and Cheese:

1a. Portugal

b. Austria

2. a. 3 barrels and

b. 0.09 or 1/11 pounds

3.  A. 4 barrels of beer per pound of cheese

Explanation:

a) Data and Calculations:

Portugal's opportunity cost of producing a pound of cheese = 3 barrels of beer

Austria's opportunity cost of producing a pound of cheese = 11 barrels of beer

Price of trade (cheese in terms of beer) = 11/3 = 3.667 = 4

b) Portugal's comparative advantage over the production of cheese is her economy's ability to produce cheese at a lower opportunity cost than Austria.  This comparative advantage gives Portugal the ability to sell cheese at a lower price than Austria and realize a more favorable balance of trade.

Martin Inc. began construction on a building in 2020 and paying a construction company $600,000 in 2020. Martin also had avoidable interest of $30,000 and actual interest of $100,000 in 2020. Martin financed the construction with a $1,000,000, 10% loan specific to the project. The project was completed on September 30, 2021. Additional expenditures in 2021 were as follows:

Feb. 28 $90,000
Apr. 30 180,000
Jul. 1 36,000
Sept. 30 64,000

Required:
Once completed, how much is capitalized in Martin’s Building account? Show all your work.

Answers

Answer:

$1,000,00

Explanation:

Amount paid to Construction company = $600,000

Additional expenditures in 2021 are Feb 28 = 90,000, Apr. 30 180,000, Jul. 1 = 36,000, Sept. 30 = 64,000. Avoidable interest Cost = 30,000

So, amount to be capitalized in Martin's Building account = $600,000 + $90,000 + $180,000 + $36,000 + $64,000 + $30,000 = $1,000,000

The organizational structure is sometimes used in conjunction with the traditional line-and-staff structure.
A. functional
B. product
C. process
D. matrix​

Answers

Option A functional.

You are negotiating a transaction on behalf of one of your clients, Blair Burke. During the negotiationyou become aware that the other party to the transaction does not adequately understand the tax consequences of the proposed transaction, which are highly favorable to Burke. In fact, if the transaction were completed as proposed, the other side would suffer significant negative tax consequences.

Required:
Ethically, should you inform the other party of the potential negative tax consequences of the proposed transaction?

Answers

Answer:

No

Explanation:

In this scenario, you are acting as a fiduciary to Blair Burke. This means that you have an obligation to Blair Burke and every decision that you make needs to be in his/her best interest. Therefore, you should not inform the other party about the negative tax consequences. That is a job for the other individual's representative or fiduciary to handle and advise their client. Informing the other party could jeopardize the deal and cost your client an opportunity/money which would go against their best interest.

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