Answer:
$46,500 unfavorable
Explanation:
The computation of the total sales quantity variance is as follows:
Total sales quantity variance
Sales quantity variance is
= (Actual quantity sold - Budgeted quantity) × Budgeted price
For product X, it would be
= (42,000 - 22,500) × $13
= $253,500 favorable
And, For product Y, it is
= (80,000 - 90,000) × $30
= $300,000 unfavorable
So, the total would be
= $300,000 - $253,500
= $46,500 unfavorable
This is the answer but the same would not be provided in the given options
Which of the following best describes a problem driven approach to a business opportunity decision process?
O A. An entrepreneur has an idea for a product and searches for a market
O B. An entrepreneur has brainstormed a variety of ideas and prioritized concepts based on industry trends
O C. An entrepreneur has identified a growth area for business
OD. An entrepreneur has found research on a potential hot business trend
O E. An entrepreneur has determined a business to pursue based on industry research
Answer:
I think the answer would be B
Explanation:
because it says An entrepreneur has brainstormed a variety of ideas and prioritized concepts based on industry trends. hope this helps
Port Ormond Carpet Company manufactures carpets. Fiber is placed in process in the Spinning Department, where it is spun into yarn. The output of the Spinning Department is transferred to the Tufting Department, where carpet backing is added at the beginning of the process and the process is completed. On January 1, Port Ormond Carpet Company had the following inventories:
Finished Goods $8,300
Work in Process-Spinning Department 2,000
Work in Process-Tufting Department 2,600
Materials 4,800
Departmental accounts are maintained for factory overhead, and both have zero balances on January 1. Manufacturing operations for January are summarized as follows:
Jan.
1 Materials purchased on account, $82,000
2 Materials requisitioned for use:
Fiber-Spinning Department, $42,600
Carpet backing-Tufting Department, $34,700
Indirect materials-Spinning Department, $3,300
Indirect materials-Tufting Department, $2,900
31 Labor used:
Direct labor-Spinning Department, $26,300
Direct labor-Tufting Department, $17,200
Indirect labor-Spinning Department, $12,500
Indirect labor-Tufting Department, $11,900
31 Depreciation charged on fixed assets:
Spinning Department, $5,300
Tufting Department, $3,100
31 Expired prepaid factory insurance:
Spinning Department, $1,000
Tufting Department, $800
31 Applied factory overhead:
Spinning Department, $22,400
Tufting Department, $18,250
31 Production costs transferred from Spinning Department to Tufting Department, $90,000
31 Production costs transferred from Tufting Department to Finished Goods, $153,200
31 Cost of goods sold during the period, $158,000
Required:
a. Journalize the entries to record the operations, using the dates provided with the summary of manufacturing operations.
b. Compute the January 31 balances of the inventory accounts.
c. Compute the January 31 balances of the factory overhead accounts.
Answer:
Port Ormond Carpet Company
1. Journal Entries:
Jan. 1:
Debit Materials $82,000
Credit Accounts payable $82,000
To record the purchase of materials on account.
Jan. 2:
Debit Work-in-Process - Spinning $42,600
Credit Materials $42,600
To record the materials requisitioned.
Jan. 2:
Debit Work-in-Process -Tufting $34,700
Credit Materials $34,700
To record carpet backing
Jan. 2:
Debit Overhead - Spinning $3,300
Debit Overhead - Tufting $2,900
Credit Materials $6,200
To record indirect materials used.
Jan. 31:
Debit Work-in-Process - Spinning $26,300
Debit Work-in-Process - Tufting $17,200
Credit Factory labor $43,500
To record direct labor costs.
Jan. 31:
Debit Overhead - Spinning $12,500
Debit Overhead - Tufting $11,900
Credit Factory labor $24,400
To record indirect labor costs.
Jan. 31:
Debit Overhead - Spinning $5,300
Debit Overhead - Tufting $3,100
Credit Factory Depreciation $8,400
To record depreciation costs.
Jan. 31:
Debit Overhead - Spinning $1,000
Debit Overhead - Tufting $800
Credit Factory Insurance $1,800
To record insurance costs.
Jan. 31:
Debit Work-in-Process - Spinning $22,400
Debit Work-in-Process - Tufting $18,250
Credit Factory Overhead $40,650
To record overhead costs applied.
Jan. 31:
Debit Work-in-Process - Tufting $90,000
Credit Work-in-Process - Spinning $90,000
To record the transfer to Tufting department.
Debit Finished Goods Inventory $153,200
Credit Work-in-Process- Tufting $153,200
To record the transfer to Finished Goods.
Jan. 31:
Debit Cost of Goods Sold $158,000
Credit Finished Goods $158,000
To record the cost of goods sold.
2. January 31 balances of the inventory accounts:
Finished Goods = $3,500
Work-in-Process - Spinning = $3,300
Work-in-Process - Tufting = $9,550
Materials = $600
3. Factory Overhead Accounts- Spinning:
Account Titles Debit Credit
Jan. 31 Materials (Indirect) 3,300
Indirect labor 12,500
Depreciation exp. 5,300
Factory insurance 1,000
Applied overhead 22,400
Overapplied overhead 300
Factory Overhead Accounts- Tufting:
Account Titles Debit Credit
Materials (Indirect) $2,900
Indirect labor 11,900
Depreciation expenses 3,100
Insurance expense 800
Applied overhead -WIP-Tufting 18,250
Underapplied overhead 450
Explanation:
a) Data and Calculations:
January 1 Inventories:
Finished Goods = $3,500
Work in Process- Spinning = $2,000
Work in Process - Tufting = $2,600
Materials = $4,800
Finished Goods
Account Titles Debit Credit
Beginning balance $8,300
Work-in-Process-Tufting 153,200
Cost of Goods Sold $158,000
Ending balance 3,500
Work-in-Process - Spinning
Account Titles Debit Credit
Beginning balance $2,000
Materials 42,600
Direct labor 26,300
Applied overhead 22,400
Work-in-Process -Tufting $90,000
Ending balance 3,300
Work-in-Process - Tufting
Account Titles Debit Credit
Beginning balance $2,600
Carpet backing 34,700
Direct labor 17,200
Applied overhead 18,250
WIP- Spinning 90,000
Finished Goods $153,200
Ending balance 9,550
Cost of Goods Sold
Finished Goods $158,000
Materials
Account Titles Debit Credit
Beginning balance $4,800
Accounts payable 82,000
Work-in-Process - Spinning $42,600
Work-in-Process - Tufting 37,400
Manufacturing overhead- Spinning 3,300
Manufacturing overhead- Tufting 2,900
Ending balance 600
A company's bank statement shows a cash balance of $4,210. Comparing the company's cash records with the monthly bank statement reveals several additional cash transactions such as checks outstanding of $2,100, NSF check of $230, interest earned of $36, service fee of $46, and a check for $180 recorded twice by the company. Calculate the correct balance of cash?
Answer:
Explanation:
Based on the information that have been provided in the question above, the correct balance of cash will be calculated as the difference between the bank balance that was shown in the bank statement and the checks that was outstanding. This will be:
= $4210 - $2100
= $2110
Therefore, the correct balance of cash will be $2110.
One employee is in charge of the following activities at a refreshment stand: Activity Activity Time per Customer Greet customer 5 seconds Take order 25 seconds Process order 1.5 minutes Print receipt 30 seconds If the demand rate is 20 customers per hour, what are the flow rate (in customers per hour), utilization, and cycle time (in minutes per customer)
Answer:
A. Flow rate = 20 customers per hour
B. Utilization =0.83
C. Cycle time= 3 minutes per customer
Explanation:
A. Calculation for the flow rate
First step is to calculate the Processing time
Processing time = 5 + 25 + (1.5 ×60) + 30
Processing time=30+90+30
Processing time= 150 seconds
Second step is to calculate the Process capacity
Process capacity = 1/150 ×60 per seconds/minute ×60 per minutes/hour
Process capacity= 24 customers per hour
Now let calculate the Flow rate
Using this formula
Flow rate= Min(Demand, Process capacity)
Let plug in the formula
Flow rate= Min(20, 24)
Flow rate = 20 customers per hour
Therefore the flow rate will be 20 customers per hour
B. Calculation for the utilization
Using this formula
Utilization = Flow rate/Process capacity
Let plug in the formula
Utilization = 20/24
Utilization =0.83
Therefore Utilization will be 0.83
C. Calculation for the Cycle time
Using this formula
Cycle time = 1/Flow rate ×60 per minutes/hour
Let plug in the formula
Cycle time= 1/20 ×60 per minutes/hour
Cycle time= 3 minutes per customer
Therefore the Cycle time will be 3 minutes per customer
Which of the following statements about the importance of each competitive factors (but especially such highly influential factors as selling prices, S/Q ratings, and number of models/styles offered) in determining company sales volumes and market shares in a particular geographic region is false
Question Completion:
O Tiny cross-company differences on a highly influential competitive factor (like selling prices, or S/Q ratings or models/styles) nearly always have a bigger impact on company sales/market shares in a region than do large company-to-company differences on less influential competitive factors.
O While it is true that some competitive factors affect the brand choices of buyers more than others, what matters most in determining sales and market shares is competitive effort and the regional average on each competitive factor
O How much differences in the number of models/styles that companies have in their product lines matter in determining each company's unit sales/market share in a region is not a fixed amount but rather is an amount that varies from *big (when model/style differences are also "big") to "small
O In the rare instance that all companies in a region should happen to offer buyers the very same number of differences are "small") to "zero" (when the models/styles offered by rivals are identical). models/styles, then models/styles become a total competitive non-factor and have zero impact on buyer appeal for one brand versus another-in such cases, 100% of the regional sales and market share differences among company rivals stem directly from differences on the other 12 competitive factors.
O Big company-to-company differences in the number of models/styles offered to buyers in a region weigh heavily in accounting for company-to-company differences in branded pairs sold and market share in all four geographic regions.
Answer:
The statements about the importance of each competitive factors (but especially such highly influential factors as selling prices, S/Q ratings, and number of models/styles offered) in determining company sales volumes and market shares in a particular geographic region which is false is:
O Tiny cross-company differences on a highly influential competitive factor (like selling prices, or S/Q ratings or models/styles) nearly always have a bigger impact on company sales/market shares in a region than do large company-to-company differences on less influential competitive factors.
Explanation:
This implies that the following factors drive company sales volumes and market shares in a particular geographic region: competitive effort, differences in the number of models/styles that companies have in their product lines, big company-to-company differences in the number of models/styles offered to buyers in a region, among the other 12 competitive factors.
A firm has the choice of investing in one of two projects. Both projects last one year. Project 1 requires an investment of $11,000 and yields $11,000 with a probability of 0.5 and $13,000 with a probability of 0.5. Project 2 also requires an investment of $11,000 and yields $5,000 with a probability of 0.5 and $20,000 with a probability of 0.5. The firm is capable of raising $10,000 of the investment required through a bond issue carrying an annual interest rate of 10 percent.
a. Assuming that the investors are concerned only about expected returns, which project would stockholders prefer? Why?
b. Which project would bondholders prefer? Why?
Answer:
a. Assuming that the investors are concerned only about expected returns, stockholders would prefer Project 2. It yields more returns with the high risk variability attached to the better yield of $20,000.
b. Bondholders would prefer Project 1. It yields good returns with moderate risk variability. Bondholders are generally risk-averse. They avoid risk wherever possible.
Explanation:
a) Data and Calculations:
Project 1 Project 2
Investment $11,000 $11,000
Expected Returns $12,000 $12,500
Bond issue = $10,000 with interest rate of 10%
Expected Returns for Project 1:
Yield Probability Expected Value
$11,000 0.5 $5,500
$13,000 0.5 $6,500
Total expected returns = $12,000
Expected Returns for Project 2:
Yield Probability Expected Value
$5,000 0.5 $2,500
$20,000 0.5 $10,000
Total expected returns $12,500
Suppose that in order to prevent loss of revenue due to used product markets, smartphone providers successfully lobby the government to make it illegal to buy or sell used smartphones. In effect, this limits consumers' property rights over their smartphones. Assuming that black markets do not exist and new phones are more expensive than used phones, which of the following statements is true?
a. There is no loss of mutually beneficial transactions since all consumers who would have bought a used phone can now simply purchase a new phone for the same price as a used one.
b. The equilibrium price and quantity of used phones will increase.
c. The equilibrium price and quantity of used phones will remain the same.
d. There is a loss of mutually beneficial transactions in the economy since some consumers would be willing and able to buy used smartphones and some would be willing and able to sell their used phones. Now, everyone must purchase news phones from providers.
Answer:
d.
Explanation:
Pam retires after 28 years of service with her employer. She is 66 years old and has contributed $57,750 to her employer's qualified pension fund, all of which was taxable when earned. She elects to receive her retirement benefits as an annuity of $5,775 per month for the remainder of her life. Assume that Pam lives 25 years after retiring. What is her gross income from the annuity payments in the twenty-fourth year?
Answer:
$69,300
Explanation:
Calculation for her gross income from the annuity payments in the twenty-fourth year
Using this formula
Gross income Annuity payment =Annuity retirement benefits*Number of month in a year
Let plug in the formula
Gross income Annuity payment =$5,775× 12 payments
Gross income Annuity payment = $69,300
Therefore her gross income from the annuity payments in the twenty-fourth will be $69,300
_____ are products that are bought from one country for use in another just as the U.S. buys wood pulp and timber from Canada.
Exports
Tariffs
Tangibles
Countertrades
Imports
Medtronic, Inc., is a medical technology company that competes for customers with St. Jude Medical S.C., Inc. James Hughes worked for Medtronic as a sales manager. His contract prohibited him from working for a competitor for one year after leaving Medtronic. Hughes sought a position as a sales director for St. Jude. St. Jude told Hughes that his contract with Medtronic was unenforceable and offered him a job. Hughes accepted. Medtronic filed a suit, alleging wrongful interference. Which type of interference was most likely the basis for this suit?
Medtronic, Inc., is a medical technology company that competes for customers with St. Jude Medical S.C., Inc. James Hughes worked for Medtronic as a sales manager. His contract prohibited him from working for a competitor for one year after leaving Medtronic.
1. Is the clause in this case commonly known as a non-compete clause?
2. Hughes sought a position as a sales director for St. Jude. St. Jude told Hughes that his contract with Medtronic was unenforceable and offered him a job. Hughes accepted. Medtronic filed a suit, alleging wrongful interference. What are the elements of the tort of wrongful interference with a contractual relationship?
A.There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract).
B. (There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract).
C. (There is a contract between two parties/ One party is seeking a greater market share for their product/ A third party knows the contract existsone party is targeting the others' customers/ A third party is inducing another to break a contract).
3. Medtronic is suing for wrongful interference with a _______.
4. Who are the parties to the initial contract?
5. _____is the third party who knew about the contract.
6. St. Jude learned about the contract and non-compete clause between Hughes and Medtronic from _____.
7. It is _____ that St. Jude intentionally induced Hughes to breach his contract with Medtronic.
8. St. Jude ______before he left Medtronic.
9. What did St. Jude represent regarding the noncompete clause?
10. Was the noncompete clause enforceable?
11. Did it matter if the clause was unenforceable?
12. Based on these facts, does it appear that St. Jude intentionally induced Hughes to break his contract with Medtronic?
13. Is Hughes liable for intentional interference with a contract?
14. Why?
15. Hughes is _______ to be held liable for breach of contract.
16. What if the effects were different?
17. _____ would be another factor the courts would consider.
Answer:
1. Is the clause in this case commonly known as a non-compete clause?
Yes, this is a non-compete clause. Hughes's contract prohibited him from working for a competitor for one year after leaving Medtronic, and St. Jude is a competitor with Medtronic.
2. Hughes sought a position as a sales director for St. Jude. St. Jude told Hughes that his contract with Medtronic was unenforceable and offered him a job. Hughes accepted. Medtronic filed a suit, alleging wrongful interference. What are the elements of the tort of wrongful interference with a contractual relationship?
All the options given (A, B and C) are the same.
The three elements are for determining wrongful interference are:
A valid, enforceable contract must exist between two parties. A third party must know that this contract exists. The third party must intentionally induce a party to breach the contract.3. Medtronic is suing for wrongful interference with a AN EMPLOYEE.
4. Who are the parties to the initial contract?
Medtronic and Hughes.
5. ST. JUDE is the third party who knew about the contract.
6. St. Jude learned about the contract and non-compete clause between Hughes and Medtronic from HUGHES.
7. It is TRUE that St. Jude intentionally induced Hughes to breach his contract with Medtronic.
8. St. Jude OFFERED HUGHES A BEW JOB WITH A BETTER SALARY before he left Medtronic.
9. What did St. Jude represent regarding the noncompete clause?
That it was unenforceable
10. Was the noncompete clause enforceable?
Yes11. Did it matter if the clause was unenforceable?
No
12. Based on these facts, does it appear that St. Jude intentionally induced Hughes to break his contract with Medtronic?
Yes, that is why we call it wrongful interference.
13. Is Hughes liable for intentional interference with a contract?
No
14. Why?
because he was a party in the original contract.
15. Hughes is NOT to be held liable for breach of contract.
16. What if the effects were different?
If Hughes had been informed that the noncompete clause was valid, then it wouldn't be wrongful interference.
17. If HUGHES HAD QUITTED MEDTRONIC BEFORE GOING TO SEEK ANOTHER JOB TO ST. JUDE IT it would be another factor the courts would consider.
A taxi driver who opens the door for his customer is an example of ________. Fill in the blank.
Answer:
courtesy
Explanation:
It basically is having manners and being respectful of the customer. When a taxi driver opens the door for someone, he or she is being respectful
Avatar Company uses the indirect method to prepare its statement of cash flows. Please refer to the following portion of the comparative balance sheet:
2014 2013 Increase/decrease
Accounts payable $ 4,000 $ 6,000 $(2,000)
Accrued liabilities 2,000 1,000 1,000
Long-term notes payable 84,000 90,000 (6,000)
Total liabilities $90,000 $97,000 $(7,000)
Additional information provided:
During 2014, the company repaid $40,000 of long-term notes payable.
During 2014, the company borrowed $34,000 on a new note payable.
Based on the above information only, what amount of net cash flow would be shown in the financing section of the statement of cash flows?
A) $6,000 negative
B) $6,000 positive
C) $5,000 positive
D) $7,000 negative
Answer:
D) $7,000 negative
Explanation:
What amount of net cash flow would be shown in the financing section of the statement of cash flows?
Amount of net cash flow to be shown in the financing section of the statement of cash flows = Decrease in Account payable - Increase in accrued liabilities + Borrow of new long term notes payable - Repayment of long term notes payable
= -$2,000 + $1,000 + $34,000 - $40,000
= -$7,000
On January 1, 2021, Tropical Paradise borrows $39,000 by agreeing to a 6%, four-year note with the bank. The funds will be used to purchase a new BMW convertible for use in promoting resort properties to potential customers. Loan payments of $915.92 are due at the end of each month with the first installment due on January 31, 2021.
Required:
Record the issuance of the installment note payable and the first two monthly payments.
Answer:
1. January 01, 2021
Dr Cash39,000.00
Cr Notes Payable39,000.00
2. January 31, 2021
Dr Interest Expense 195.00
Dr Notes Payable720.92
Cr Cash915.92
3. February 28, 2021
Dr Interest Expense 191.40
Dr Notes Payable 724.52
Cr Cash915.92
Explanation:
Preparation of the journal entry to Record the issuance of the installment note payable and the first two monthly payments
1. January 01, 2021
Dr Cash 39,000.00
Cr Notes Payable 39,000.00
2. January 31, 2021
Dr Interest Expense 195.00
($39,000 × 6% × 1/12)
Dr Notes Payable 720.92
(915.92-195.00)
Cr Cash 915.92
3. February 28, 2021
Dr Interest Expense 191.40
([$39,000 − $720.92] × 6% × 1/12)
Dr Notes Payable 724.52
(915.92-191.40)
Cr Cash 915.92
Many Arab countries have a larger underground sector of the economy relative to developed countries. What effect would this have on the GDP of Arab countries?
Understate (reduce) the GDP of Arab countries,
Ob It has no effect on measuring the GDP of Arab countries.
Overstate (increase) the GDP of Arab countries.
C
None of the above,
Answer: Understate (reduce) the GDP of Arab countries,
Explanation:
Underground economy simply refers to the trade which involves goods and services that the government of a particular country isn't aware of or trading involving illegal activities.
We should note that the underground activities are not added to the gross domestic product of countries. This, therefore leads to a reduction in the GDP of such countries. In this case, there'll be an understatement of the GDP of the Arab countries.
You are a supplier of printed circuit boards (PCBs). Production of the circuit boards consists of several steps – Surface Mounting, Baking, and Final Assembly. Surface Mounting puts integrated circuits (ICs) and other components on a PCB. These PCBs are then Baked as a batch and kept in an oven for some time so that the ICs are soldered onto the PCBs. Finally, these PCBs are taken and manually assembled into a case, and wired with connectors. The processing rate at the Surface Mounting station is 15 PCBs/minute, the processing rate for Baking is 5 PCBs/minute, and the processing rate for Final Assembly is 3 PCBs/minute. If there are on average 24 units of (work in process) inventory and the system is working at capacity, what is the flow (throughput) time for PCBs?
Answer:
the flow (throughput) time for PCBs is 40 units per minute
Explanation:
Given that;
Work in progress WIP = 24
we calculate the time spent to make the PCBs, lead time
Processing rate at the Surface Mounting station is 15 PCBs/minute
so time taken by a single PCB at the SM operation = 1/15 min
Processing rate for Baking is 5 PCBs/minute
so time taken by a single PCB at the baking operation = 1/5 min
the processing rate for Final Assembly is 3 PCBs/minute
so time taken by a single PCB at the assembly = 1/3 min
∴ total time taken will be;
(1/15) + (1/5) + (1/3)
= 0.6 min
Now, using Little's Law;
Working in progress WIP = throughput × lead time
Throughput = WIP / Lead time
so we substitute
Throughput = 24 / 0.6 min
Throughput = 40 units per minute
Therefore the flow (throughput) time for PCBs is 40 units per minute
An investment offers $5,200 per year, with the first payment occurring one year from now. The required return is 7 percent. a. What would the value be today if the payments occurred for 20 years
Answer:
the present value of an annuity is $55,088.87
Explanation:
The computation of the value today is given below:
Present value of annuity is
= Annuity × [1 - (1+interest rate)^-time period] ÷ rate
= $5,200 × [1 - (1.07)^-20] ÷ 0.07
= $5,200 × 10.59401425
= $55,088.87
hence, the present value of an annuity is $55,088.87
The income statement for the Timberline Golf Club Inc. for the month ended July 31 shows Service Revenue $18,530; Salaries and Wages Expense $9,100; Maintenance and Repairs Expense $4,190; and Income Tax Expense $1,110. The statement of retained earnings shows an opening balance for Retained Earnings of $20,590 and Dividends $1,830.Prepare closing journal entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer and Explanation:
The closing journal entries are as follows:
1. Service revenue Dr $18,530
To Income summary $18,530
(being revenue account is closed)
2. Income summary Dr $14,400
To Salaries and Wages Expense $9,100
To Maintenance and Repairs Expense $4,190
To Income Tax Expense $1,110
(being expenses account is closed)
3. Income summary Dr $4,130 ($18,530 - $14,400)
To retained earnings $4,130
(Being closing of the net income is recorded)
4. Retained earnings Dr $1,830
To Dividend $1,830
(being dividend account is closed)
The following list includes selected permanent accounts and all of the temporary accounts from the December 31 unadjusted trial balance of Emiko Co., a business owned by Kumi Emiko, Emiko Co. uses a perpetual inventory system.
Credit Debit $ 30,000 5,600 33,000 $529,000 Merchandise inventory Prepaid selling expenses Dividends Sales Sales returns and allowances Sales discounts Cost of goods sold Sales salaries expense Utilities expense Selling expenses Administrative expenses 17,500 5,000 212,000 48,000 15,000 36,000 105,000
Additional Information
Accrued and unpaid sales salaries amount to $1700. Prepaid selling expenses of $3,000 have expired. A physical count of year-end merchandise inventory is taken to determine shrinkage and shows $28.700 of goods still available.
(a) Use the above account balances along with the additional information, prepare the adjusting entries.
(b) Use the above account balances along with the additional information, prepare the closing entries.
Answer:
a) Dr Sales salaries expense $1,700
Cr Sales salaries payable $1,700
Dr Selling expense $3,000
Cr Prepaid selling expense $3,000
Dr Cost of goods sold $1,300
Cr Inventory $1,300
b) 1. Dr Sales revenue $529,000
Cr Income summary $529,000
2. Dr Income summary $444,500
Cr Cost of goods sold $213,300
Cr Sales return and allowance $17,500
Cr Sales discount $5,000
Cr Sales salaries expense $49,700
Cr Utilities expense $15,000
Cr Selling expense $39,000
Cr Administrative expense $105,000
3.Dr Income summary $84,500
Cr Retained earnings $84500
4. Dr Retained earnings $33,000
Cr Dividend $33,000
Explanation:
a) Preparation of the adjusting entries.
Dr Sales salaries expense $1,700
Cr Sales salaries payable $1,700
Dr Selling expense $3,000
Cr Prepaid selling expense $3,000
Dr Cost of goods sold $1,300
($30,000-$28,700)
Cr Inventory $1,300
b) Preparation of the closing entries.
1. Dr Sales revenue $529,000
Cr Income summary $529,000
2. Dr Income summary $444,500
($213,300+$17,500+$5,000+$49,700+$15,000+$39,000+$105,000)
Cr Cost of goods sold $213,300
($212,000+$1,300)
Cr Sales return and allowance $17,500
Cr Sales discount $5,000
Cr Sales salaries expense $49,700
($48,000+$1,700)
Cr Utilities expense $15,000
Cr Selling expense $39,000
($36,000+$3,000)
Cr Administrative expense $105,000
3. Dr Income summary $84,500
($529,000-$444,500)
Cr Retained earnings $84500
4. Dr Retained earnings $33,000
Cr Dividend $33,000
Selected transactions from the journal of Metlock Inc. during its first month of operations are presented here:
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Cash 9,000
Aug. 10 Cash 1,400
Service Revenue 1,400
Aug. 12 Equipment 5,600
Cash 1,540
Notes Payable 4,060
Aug. 25 Accounts Receivable 2,570
Service Revenue 2,570
Aug. 31 Cash 750
Accounts Receivable 750
Required:
Post the transactions to T-accounts.
(Post in same order as question)
Answer:
Metlock, Inc.
T-accounts:
Common Stock
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Cash
Date Account Titles Debit Credit
Aug. 1 Common Stock 9,000
Aug. 10 Service Revenue 1,400
Aug. 12 Equipment 1,540
Aug. 31 Accounts receivable 750
Service Revenue
Date Account Titles Debit Credit
Aug. 10 Cash 1,400
Aug. 25 Accounts receivable 2,570
Equipment
Date Account Titles Debit Credit
Aug. 12 Cash 1,540
Notes Payable 4,060
Accounts Receivable
Date Account Titles Debit Credit
Aug. 25 Service Revenue 2,570
Aug. 31 Cash 750
Explanation:
Common stock of $9,000 was posted on the debit side as it appeared first. This follows the normal order of recording transactions in the journal. The accounts to be debited are recorded first before the accounts to be credited. However, this entry appears abnormal. Cash of $9,000 should have appeared first in the journal before the Common Stock. Whichever is the correct interpretation, all the journal entries have been posted to the T-accounts accordingly.
You have just been hired as the accountant for Fan-Tastic Sports Gear Inc., a wholesaler of sporting goods and apparel. The previous accountant left abruptly in late December, 20Y7, and an accounting intern has been drafting the journal entries since January. You are examining the accounting records before finalizing the journal entries for the first quarter of 20Y8. The following journal shows some of the accounts receivable transactions that you are reviewing.
JOURNAL
ACCOUNTING EQUATION
DATE DESCRIPTION POST. DEBIT CREDIT ASSETS LIABILITIES EQUITY
1 Jan.
17 Sales 9,600.00
2 Bad Debt Expense 9,600.00
3 17 Bad Debt Expense 9,600.00
4 Accounts Receivable-
CJ’s Sports Corp. 9,600.00
5 21 Cash 10,700.00
6 Bad Debt Expense 2,200.00
7 Accounts Receivable-Four
Seasons Sportswear Co. 12,900.00
8 Feb.
15 Accounts Receivable-Healthy
Running Inc. 3,000.00
9 Bad Debt Expense 500.00
10 Sales 3,500.00
11 Mar.
4 Accounts Receivable-Four
Seasons Sportswear Co. 2,200.00
12 Bad Debt Expense 2,200.00
13 4 Cash 2,200.00
14 Bad Debt Expense 2,200.00
15 13 Cash 5,540.00
16 Accounts Receivable-
Barb’s Best Gear 5,540.00
17 31 Bad Debt Expense 20,970.00
18 Accounts Receivable-
Healthy Running Inc. 5,150.00
19 Accounts Receivable-
The Locker Room 4,100.00
20 Accounts Receivable-
CJ’s Sports Corp. 2,780.00
21 Accounts Receivable-
Get Your Gear Inc. 7,050.00
22 Accounts Receivable-
Ready-2-Go 1,890.00
CHART OF ACCOUNTS
Fan-Tastic Sports Gear Inc.
General Ledger
ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable-Healthy Running Inc.
122 Accounts Receivable-The Locker Room
123 Accounts Receivable-CJ’s Sports Corp.
124 Accounts Receivable-Get Your Gear Inc.
125 Accounts Receivable-Four Seasons Sportswear Co.
126 Accounts Receivable-Ready-2-Go
127 Accounts Receivable-Barb’s Best Gear
132 Notes Receivable-Fast Feet Co.
136 Interest Receivable
141 Inventory
145 Office Supplies
151 Prepaid Insurance
181 Land
191 Store Equipment
192 Accumulated Depreciation-Store Equipment
193 Office Equipment
194 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
211 Salaries Payable
212 Unearned Rent
213 Customer Refunds Payable
215 Notes Payable
EQUITY
310 Common Stock
311 Retained Earnings
312 Dividends
313 Income Summary
REVENUE
410 Sales
610 Rent Revenue
612 Interest Revenue
EXPENSES
510 Cost of Goods Sold
520 Sales Salaries Expense
521 Advertising Expense
522 Depreciation Expense-Store Equipment
523 Delivery Expense
529 Miscellaneous Selling Expense
530 Office Salaries Expense
531 Rent Expense
532 Depreciation Expense-Office Equipment
533 Insurance Expense
534 Office Supplies Expense
536 Credit Card Expense
537 Cash Short and Over
538 Bad Debt Expense
539 Misc. Administrative Expense
710 Interest Expense
1. Finalize the journal entries shown on the Fan-Tastic Sports Gear Inc. panel and make any necessary changes.
2. Journalize the entry needed to record information about the note receivable from Fast Feet for the year 20Y7.
3. Journalize the entry needed to record collection of the note at maturity on March 19, 20Y8.
Answer:
Accounts Receivable (Dr.) $9,600
Sales (Cr.) $9,600
Bad debt expense (Dr.) $500
Accounts Receivable (Cr.) $500
Bad Debt Expense (Dr.) $2,200
Accounts Receivable (Cr.) $2,200
Notes Receivable - Fast Feet (Dr.) $3,600
Sales (Cr.) $3,600
Explanation:
Fan-Tastic Sports Gear Inc., has incurred business transactions. It has recorded sales to Sportswear Co on accounts. The money is not received and the accounts receivable are offset by recording bad debt expense.
During its first year in business, Comfy Home accounted for its inventory using the last in first out (LIFO) method. In the second year of business, Tenisa asks the accountant if the company can switch to first in first out (FIFO) because she recently learned FIFO will tend to increase both the value of assets and net income. The accountant tells Tenisa that US GAAP allows a company to choose its inventory valuation method as long as it doesn't change over time without a justifiable reason. This is an example of the principle of:________
a. Conservatism.
b. Relevance.
c. Consistency.
d. Reliability.
Answer:
Consistency principle
Explanation:
Accounting principles are defined as the general rules of.axcpunting that businesses are expected to follow when reporting financial information.
Accounting principles include:
- Accrual principle
- Conservatism principle
- Consistency principle
- Cost principle
- Economic entity principle
- Full disclosure principle
- Going concern principle
- Matching principle
- Materiality principle
- Monetary unit principle
- Reliability principle
- Revenue recognition principle
- Time period principle
Consistency principle requires one the continue using an accounting method consistently for future accounting periods so that information can be easily comparable.
In the given scenario the accountant tells Tenisa that US GAAP allows a company to choose its inventory valuation method as long as it doesn't change over time without a justifiable reason.
This is an example of consistency principle
The bookkeeper for Sheffield Corp. asks you to prepare the following accrued adjusting entries at December 31.
1. Interest on notes payable of $500 is accrued.
2. Services performed but not recorded total $2,000.
3. Salaries earned by employees of $540 have not been recorded. Use the following account titles: Service Revenue, Accounts Receivable, Interest Expense, Interest Payable, Salaries and Wages Expense, and Salaries and Wages Payable. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
(a) Dec 31
Debit Interest Expense $500
Credit Interest Payable$500
(b) Dec 31
Debit Account Receivable $2,000
Credit Service Revenue $2,000
(c) Dec 31
Debit Salaries & wages expense $540
Credit Salaries & wages payable $540
Explanation:
Preparation of the accrued adjusting entries at December 31
(a) Dec 31
Debit Interest Expense $500
Credit Interest Payable$500
(b) Dec 31
Debit Account Receivable $2,000
Credit Service Revenue $2,000
(c) Dec 31
Debit Salaries & wages expense $540
Credit Salaries & wages payable $540
You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 6 years (72 months), and the nominal interest rate would be 9%, with interest paid monthly. What is the monthly loan payment? Do not round intermediate calculations. Round your answer to the nearest cent. $ What is the loan's EFF%? Do not round intermediate calculations. Round your answer to two decimal places.
Answer:
1. $360.51
2. 9.38%
Explanation:
1. Calculation for What is the monthly loan payment
Based on the information given we would be
Using TVM financial calculator to find the monthly loan payment
PMT = [PV = $20,000, FV = 0, N = 72 months, I = 0.09/12]
PMT = $360.51
Therefore the monthly loan payment will be $360.51
2. Calculation for the loan's EFF%
EFF%= (1 + 0.09/12)^12 - 1
EFF% = 9.38%
Therefore the loan's EFF% will be 9.38%
A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 90 carts per hour. Workers receive $15 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour, while output increased by 5 carts per hour.
Comment on the changes in productivity according to the two measures. (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.)
1. Labor productivity is increased or decreased by what %?
2. Multifactor productivity is increased or decreased by what %?
Answer: Hope this help. Please mark me brainliest :)
Explanation:
a.
Before: 90 ÷ 6 = 15.00 carts per worker per hour.
After: 96 ÷ 5 = 19.20 carts per worker per hour.
b.
Before: $14 x 6 = $84 + $40 = $124; hence 90 ÷ $124 = 0.73 carts/dollar cost.
After: $14 x 5 = $70 + $51 = $121; hence 96 ÷ $121 = 0.79 carts/dollar cost.
c.
Labor productivity increased by 28.00% (4.20/15.00).
Multifactor productivity increased by 8.22% (0.06/0.73).
Which of the following is an incorrect statement regarding values?
Values come from the interplay of ethics.
Values represent our understanding of the purposes we will fulfill by making particular decisions.
Values are positive abstractions.
D
Values are ideas that underlie conversations about business ethics.
E
Values capture our sense of what is good or desirable.
Answer:
" values are ideas that underlie conversations about business ethics " is the answer
Among the following, an incorrect statement regarding values is Values are ideas that underlie conversations about business ethics. Thus the correct option is D.
What are Values?Values are a person's personal ideas that guide their behavior. They act as norms for how individuals should behave. Our values are significant as they aid in the development of the future we desire.
Ethics and values interact because values are our understanding of the goals we hope to achieve by taking certain actions which help in decision-making.
Values reflect our perception of what is right or desirable. Values are moral concepts that reflect a person's sense of what is right and acceptable.
Therefore, option D Values are ideas that underlie conversations about business ethics is appropriate.
Learn more about Values, here:
https://brainly.com/question/13523172
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In each of the following cases, determine how supply or demand shifts and how the equilibrium changes.
Select the correct answer in each blank space (_______)
a. Smartphones: Microchips used in smartphones become less costly to produce. As a result, the __________________( *Supply of and demand for, *Supply of, or *Demand for) smartphones increase(s), causing the equilibrium price to (*Rise, *Fall, or *Rise, fall or remain unchanged) and the equilibrium quantity to (*Rise, fall or remain unchanged, *Rise, *Fall)
b. ALS medical research funds: The ALS ice bucket challenge goes viral, leading to greater awareness of the benefits of and need for ALS research. As a result, the _____________ ( *Supply of and demand for, *Supply of, or *Demand for) ALS research increase(s), causing the equilibrium price (or opportunity cost) of such research to __________ (*Rise, fall or remain unchanged, *Rise, *Fall) and the equilibrium quantity to __________ (*Rise, fall or remain unchanged, *Rise, *Fall)
Answer:
Supply of
fall
rise
b. demand for
rise
rise
Explanation:
A microchip is a complement in the production of smartphones
Complement goods are goods used together.
If the price of microchips reduces, the cost of making smartphones falls and as a result, the supply of smart phones increases. This would lead to a rightward shift of the supply curve. This leads to a decrease in equilibrium price and an increase in equilibrium quantity
Due to the awareness, the demand for ALS research would increase, this would lead to a rise in price and quantity demanded.
To set up Instant Desposits, what must be done first?
Answer:
Open a new "deposit-only" bank account and link it to QuickBooks Online
Explanation:
To set up instant deposits, a QuickBooks payment account will be needed first. The debit card of the customer is used by the QuickBooks to deposit money into his or her checking account.
To begin, the customer signs into QuickBooks online. At the sales menu, the deposits tab is selected. The customer selects the Get Set Up option, enters his debit card details , a confirmation code and then verifies the newly set up account.
Why is the infrastructure used for marketing sales in the past becoming useless for today’s needs?
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Answer:
The infrastructure used for marketing sales in the past becoming useless for today’s needs is described below in detail.
Explanation:
Public activities are the design of modern life. Whether community or agricultural, the roads that convey our goods, the gutters that preserve our health and wealth, the cables that provide our electricity, and the vessels that transport our water enable society to operate. Every amenity our neighborhoods take for the award is built on preparation, architecture, building, and managing these assets.
Throughout history, people have prospered through improvements in government works.
State and EXPLAIN three methods of paying workers
Answer:
three methods employers use to pay the employees are salary, commission, and hourly wage.
Explanation:
salary is a fixed amount that you get for working per month
commmission is getting a percentage of the total that you sell
hourly wage is getting paid for each hour that you work
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A manager is trying to decide whether to purchase a certain part or to have it produced internally. Internal production could use either of two processes. One would entail a variable cost of $17 per unit and an annual fixed cost of $200,000; the other would entail a variable cost of $14 per unit and an annual fixed cost of $240,000. Three vendors are willing to provide the part. Vendor A has a price of $20 per unit for any volume up to 30,000 units. Vendor B has a price of $22 per unit for demand of 1,000 units or less, and $18 per unit for larger quantities. Vendor C offers a price of $21 per unit for the first 1,000 units, and $19 per unit for additional units.
A. If the manager anticipates an annual volume of 10,000 units, which alternative would be best from a cost standpoint? For 20,000 units, which alternative would be best?
B. Determine the range for which each alternative is best. Are there any alternatives that are never best? Which?
TC for 10,000 units TC for 20,000 units
Int. 1: $ Int. 1: $
Int. 2: $ Int. 2: $
Vend A $ Vend A $
Vend B $ Vend B $
Vend C $ Vend C $
Answer:
A. If the manager anticipates an annual volume of 10,000 units, the alternative that would be best from a cost standpoint is Vendor B.
Again, for annual volume of 20,000 units, Vendor B is the best choice.
B. For Process I, it is best within the range of 20,555 and 200,000
For Process 2, the best range is 200,000 and above
Vender A, there is no best range
Vender B, the best range is 1 to 20,555
Vender C, there is no best range
Explanation:
a) Data and Calculations:
Internal Process 1 = $17Q + $200,000
Internal Process 2 = $14Q + $240,000
Vendor A = $20Q up to 30,000 units
Vender B = $18Q
Vender C = $21*1,000 + $19(Q-1,000)
Calculation of total cost under each alternative:
Internal Vender A Vender B Vender C
Process 1 Process 2
Cost of production:
Variable cost per unit $17 $14 $20 $18 $19
For 10,000 Units:
Fixed costs $200,000 $240,000 0 0 $21,000
Variable cost 170,000 140,000 $200,000 $180,000 $171,000
Total cost $370,000 $380,000 $200,000 $180,000 $192,000
For 20,000 units:
Fixed costs $200,000 $240,000 0 0 $21,000
Variable cost 340,000 280,000 $400,000 $360,000 $361,000
Total cost $540,000 $520,000 $400,000 $360,000 $382,000