Answer:
$574,517
Explanation:
Calculation for the amount that Jasperse will record a right-of-use asset
Annual payments = $90,000
Annual maintenance = $5,000 per year
Rate of interest = 10%
Period, n = 10 years
Right of use asset =(90,000 – 5,000) x PVAD, 10%, 10
Right of use asset= 85,000 ×6.75902
Right of use asset= $574,517
Therefore Right-of-use asset will be $574,517
The lowest amount a manufacturer can pay factory workers is an example of
an incentive.
a price floor.
a price ceiling.
an elastic service.
Answer:
The answer to this question is given below in the explanation section.
Explanation:
The correct answer to this question is the price floor.
The Price floor is the lowest amount that is imposed by the government or group-imposed lowest price limit for a product or service. The government uses the price floor to keep prices at a certain level from going to low. So price floors for workers set by the government that the employer should not pay less than the set amount.
while other options are not correct because::
The price ceiling is the high amount set by the government or the by other groups for a product or service.
An incentive is an amount or something that can be given to employees or someone for motivation or encouraging them to do something.
An elastic service is given by amazon to develop and run the application with different tools etc.
Answer:price floor
Explanation:
ogan Products computes its predetermined overhead rate annually on the basis of direct labor-hours. At the beginning of the year, it estimated that 40,000 direct labor-hours would be required for the period's estimated level of production. The company also estimated $466,000 of fixed manufacturing overhead expenses for the coming period and variable manufacturing overhead of $3.00 per direct labor-hour. Logan's actual manufacturing overhead for the year was $713,400 and its actual total direct labor was 41,000 hours.
Required:
Compute the company's pre-determined overhead rate for the year.
Answer:
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
Explanation:
Giving the following information:
Estimated direct labor hours= 40,000
Estimated fixed overhead= $466,000
Estimated variable overhead rate= $3.00 per direct labor-hour.
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
Predetermined manufacturing overhead rate= (466,000/40,000) + 3
Predetermined manufacturing overhead rate= $14.65 per direct labor hour
Nell and Kirby are in the process of negotiating their divorce agreement. What should be the tax consequences to Nell and Kirby if the following, considered individually, became part of the agreement?
a. In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.
Nell's basis for the stock is _______$ X
Kirby's basis in the house is ______$ X
b. Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.
The payments (qualify, do not qualify) as alimony and are (included in, excluded from) Nell's gross income as they are received.
c. Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.
$ X per month is alimony that is (included in, excluded from) Nell's gross income, and the remaining $ X per month is considered(child support, property settlement) and is (nontaxable, taxable) to Nell.
Answer:
a. In consideration for her one-half interest in their personal residence, Kirby will transfer to Nell stock with a value of $200,000 and $50,000 of cash. Kirby's cost of the stock was $150,000, and the value of the personal residence is $500,000. They purchased the residence three years ago for $300,000.
Nell's basis for the stock is $150,000
Kirby's basis in the house is $300,000
The transfer of property due to divorce is nontaxable. The $50,000 that Nell receives is generally considered alimony (for tax purposes).
b. Nell will receive $1,000 per month for 120 months. If she dies before receiving all 120 payments, the remaining payments will be made to her estate.
The payments NOT QUALIFY as alimony and are EXCLUDED FROM Nell's gross income as they are received.
The TC&JA changed alimony rules and made them not deductible for the spouse that gives it, and not taxable for the spouse that receives it. It now works in a similar manner than child support. It doesn't make any difference now if payments are alimony or not.
c. Nell is to have custody of their 12-year-old son, Bobby. She is to receive $1,200 per month until Bobby (1) dies or (2) attains age 21 (whichever occurs first). After either of these events occurs, Nell will receive only $300 per month for the remainder of her life.
$300 per month is alimony that is EXCLUDED FROM Nell's gross income, and the remaining $900 per month is considered CHILD SUPPORT and is NONTAXABLE to Nell.
Again, the TC&JA changed the rules, so alimony received is not taxable.
Lilla sees a search ad on her mobile phone for a restaurant. A button on the ad allows Jessica to click on the button and call the restaurant. This is a
Answer: Click-to-call ad
Explanation:
From the question, we are informed that Lilla sees a search ad on her mobile phone for a restaurant and a button on the ad allows Jessica to click on the button and call the restaurant.
It should be noted that the above is a click-to-call ad. They are form of Google Ads that when someone clicks them, it calls the business directly rather than linking to the website of the business. They are important to marketing campaigns.
Alpha Inc. has receivables from unrelated parties with a face value of $5,000. It transfers these receivables to bank for $4,500, without recourse. It will continue to collect the receivables, depositing them in a non-interest-bearing bank account with the cash flows remitted to the bank at the end of each month. It is not allowed to sell or pledge the receivables to anyone else and is under no obligation to repurchase the receivables from bank. Which of the following is the appropriate treatment for these Accounts receivables?
A) It should show these receivables in its Balance Sheet.
B) It should amortize these receivables.
C) It should derecognize these receivables.
D) It should derecognize these receivables if it retains the interest earned on these.
Answer:
The correct option is C) It should derecognize these receivables
Explanation:
Based on the information given the right and appropriate treatment of the ACCOUNT RECEIVABLES is to derecognized the receivable reason been that Alpha Inc does not have the right to either sell or pledge the receivables neither can he repurchased the receivable from the financial institution which is the bank despite the fact that the cash flows amount is been remitted to the bank at the end of every month.
Parent Inc acquired 90% of Sub Inc on January 1, 20X8. Parent paid 50% of the acquisition price by cash and fund the rest with a notes payable. The book value of Sub’s individual assets and liabilities approximated their acquisition-date fair values. On the date of acquisition, Sub reported the following:
Cash and Receivables $116,000
Accounts Payable 531,000
Inventory 331,000
Buildings & Equipment (net) 621,000
Common Stock 585,000
Land 748,000
Retained Earnings 700,000
Total $1,816,000
Total 1,816,000
During the year Sub reported $800,000 in net income and declared $432,000 in dividends. Parent reported $506,000 in net income and declared $196,000 in dividends. Parent accounts for their investment using the equity method.
Required:
a. What journal entry will Parent make on the date of acquisition to record the investment in Son Inc.?
b. If Parent were to prepare a consolidated balance sheet on the acquisition date (January 31, 20X2), what is the basic consolidation entry Parent would use in the consolidation worksheet?
c. What is Parent’s balance in "Investment in Son Inc." prior to consolidation on December 31, 20X2?
d. What is the basic consolidation entry Parent would use in the consolidation worksheet on December 31, 20X2?
Answer and Explanation:
Please find attached
Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows.
January February
Sales $428,400 $476,000
Direct materials purchases 142,800 148,750
Direct labor 107,100 119,000
Manufacturing overhead 83,300 89,250
Selling and administrative expenses 94,010 101,150
All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,190 of depreciation per month.
Other data:
1. Credit sales: November 2019, $297,500; December 2019, $380,800.
2. Purchases of direct materials: December 2019, $119,000.
3. Other receipts: January—Collection of December 31, 2019, notes receivable $17,850; February—Proceeds from sale of securities $7,140.
4. Other disbursements: February—Payment of $7,140 cash dividend.
The company’s cash balance on January 1, 2020, is expected to be $71,400. The company wants to maintain a minimum cash balance of $59,500.
Required:
Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February.
Answer:
I used an excel spreadsheet since there is not enough room here.
what has the U.S customs created to force importing companies like wal-mart to provide more detailed information about
Answer: The Customs-Trade Partnership Against Terrorism (CTPAT)
Explanation:
The Customs-Trade Partnership Against Terrorism (CTPAT) is a partnership program between the public and private sector created by the US Customs to improve border and cargo security.
When a firm like Wal-Mart becomes a member of the CTPAT, the likelihood of their goods being examined at a port of entry falls but this is because of the oversight requirements imposed on the firms such as ensuring the members provide detailed information about their suppliers and transportation companies.
Ken is 63 years old and unmarried. He retired at age 55 when he sold his business, Understock.com. Though Ken is retired, he is still very active. Ken reported the following financial information this year. Assume Ken files as a single taxpayer.
a. Ken won $1,200 in an illegal game of poker (the game was played in Utah, where gambling is illegal).
b. Ken sold 1,000 shares of stock for $32 a share. He inherited the stock two years ago. His tax basis (or investment) in the stock was $31 per share.
c. Ken received $25,000 from an annuity he purchased eight years ago. He purchased the annuity, to be paid annually for 20 years, for $210,000.
d. Ken received $13,000 in disability benefits for the year. He purchased the disability insurance policy last year.
e. Ken decided to go back to school to learn about European history. He received a $500 cash scholarship to attend. He used $300 to pay for his books and tuition, and he applied the rest toward his new car payment.
f. Ken's son, Mike, instructed his employer to make half of his final paycheck of the year payable to Ken. Ken received the check on December 30 in the amount of $1,100.
g. Ken received a $610 refund of the $3,600 in state income taxes his employer withheld from his pay last year. Ken claimed $6,250 in itemized deductions last year (the standard deduction for a single filer was $6,200).
h. Ken received $30,000 of interest from corporate bonds and money market accounts.
Determine Ken's gross income
Answer: $46,950
Explanation:
a. All sources of income should be included including illegal ones.
b. Gain = 1,000 (32 - 31)
= $1,000
c. Gain = Amount received - Amount paid apportioned per year
= 25,000 - (210,000/20)
= 25,000 - 10,500
= $14,500
d. Not included as disability benefits are not included.
e. The $300 is deductible but the $200 that went towards car payment is not.
f. Taxation principles require that the person taxed should be the person earning the income so Ken will not be charged on the $1,100
g. The relevant figure here is the tax benefit before the $610 refund.
Ken claimed $6,250 in itemized deduction but the standard deduction is $6,200. Ken gained;
= 6,250 - 6,2000
= $50
h. The $30,000 is included as Ken earned it.
Gross Income = 1,200 + 1,000 + 14,500 + 200 + 50 + 30,000
= $46,950
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the____________________ using by_____________________________ the using___________ and multiplying by 100. However, the CPI reflects only the prices of all goods and services .
Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
a. A decrease in the price of a Chinese-made car that is popular among U.S. consumers.
b. An increase in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers.
Answer:
1. The GDP deflator for this year is calculated by dividing the Value of all goods and services produced in the economy this year using this year's prices by the Value of all goods and services produced in the economy in the base year using the base year's prices and multiplying by 100.
However, the CPI reflects only the prices of all goods and services bought by consumers.
2. a. A decrease in the price of a Chinese-made car that is popular among U.S. consumers. Affects CPI.
This affects CPI because the CPI reflects only the prices of goods and services purchased by customers.
b. An increase in the price of a Waterman Industries deep-water reel, which is a commercial fishing product used for deep-sea fishing, made in the U.S., but not bought by U.S. consumers. Affects GDP Deflator.
This is a good produced in the United States so it will affect the GDP Deflator as that deals with GDP.
This activity is important because as world trade has grown, more companies have entered the global market. Once a firm decides to enter the global market, it must choose which means of market entry is the most appropriate. The global market entry strategies vary greatly on the dimensions of financial commitment, risk, marketing control, and profit potential.
The goal of this exercise is to demonstrate your understanding of the different types of global market entry strategies: exporting, licensing, joint venture, and direct investment. Roll over each company name to read the description of the firm's strategy, then drop it onto the correct global market entry strategy within the graphic.
1. Yoplait
2. Moodmatcher lipstick
3. McDonald's
4. Ericsson and CGCT
5. Boeing
6. Nissan
A. Indirect Exporting
B. Direct Exporting
C. Licensing
D. Franchising
E. Joint Venture
F. Direct Investment
Answer:
1. Yoplait ⇒ C. Licensing . Yoplait is the largest yogurt license in the world.
2. Moodmatcher lipstick ⇒ A. Indirect Exporting . It produces their products in the US and then sells them abroad through trading companies.
3. McDonald's ⇒ D. Franchising . McDonald's is one of the largest franchises in the world and it operates in a similar manner everywhere.
4. Ericsson and CGCT ⇒ E. Joint Venture . Ericsson is a Swedish telecommunications company and CGCT is a French company.
5. Boeing ⇒ B. Direct Exporting . Boeing is America's largest exporter. It opened its first overseas facility on December 15, 2018, in response to the trade dispute between China and the US. But the vast majority of its planes are still built int eh US.
6. Nissan ⇒ F. Direct Investment. Nissan is part of a French-Japanese car company that produces its cars on their own plants located around the world.
Luke offered to sell his farm to Kent at $75,000, an offer which Kent declined. A week later, Luke offered to sell the farm for $65,000, stating that it was the final offer, it was valid for one month, and that he would not alter it. Two days later, Kent replied by saying that he was willing to pay $60,000 for the farm. A week after Luke received Kent's offer, Luke declined it. Ten days after that, Kent agreed to buy the farm for $65,000, but Luke refused to sell the farm. Kent decided to sue Luke for a breach of contract. The judge ruled in favor of Luke. Which one of the following is the reason for the ruling in Luke's favor?
a. Luke's original offer of $75,000 is still valid, even though rejected.
b. Kent acted in an incompetent manner with regards to the offer.
c. Kent's acceptance was past the set time period in the offer.
d. Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid.
Answer:
Option D
Explanation:
Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid
Reason- Whenever a counteroffer is made, it voids the earlier offers That's because real estate laws in all 50 states say that a seller who makes a written counteroffer automatically renders the buyer's original offer null and void.
Tawna Reed was hired for a top managerial position in Nike Corporation because she had creative ability and a good overall feel for the athletic shoe industry. Reed is said to have good _____ skills.
Answer:
C) conceptual.
Explanation:
Conceptual skills are essential in managers of large companies, such as that of the multinational Nike.
This ability means that the manager has a vision of the organization as an integrated system, where each part has its relevance in the organizational whole and must be considered in the processing, evaluation and planning of the strategies that will lead to organizational success.
Having conceptual skills means having the skills to have a diffuse and analytical thinking of the organization and all the parts that involve it, which makes the entire management decision-making process much more efficient and aligned with the organization's objectives and goals.
Yesterday, Casey received a cable company ad for bundled TV, telephone, and Internet service that cost appreciably more than what she is currently paying. At the same time, she received a notice from her utility company that summer rates would be increasing. Her schoolbooks are costing almost twice what they cost last year, and yesterday, gasoline cost her 30 cents more per gallon than it did last week. As she ponders the situation, she can't help but wonder how prices could be rising when so many people have lost their jobs and are cutting back on expenditures. She is certain that this situation characterizes her economics professor's description of stagflation.
a. True
b. False
Answer:
a. True
Explanation:
It is true that her situation characterizes what her economics professor's mentioned on stagflation.
She experienced high internet cost more than she is paying, she was also notified on an increase in the utility summer rates, increase in the cost of her schoolbooks, and gasoline all point to what stagflation is.
Stagflation is detected when a nation experiences slow economic growth obvious with an increase in the cost of goods, which means a reduction in purchasing power as Casey experienced. When companies want to still be running their business, they will increase the cost of their services as there are fewer goods available and the currency weakened.
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:
Dennis Overton $180,000
Ben Testerman 120,000
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest.
2. Net income of $150,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $40,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell.
3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income.
Required:
Prepare a statement of partnership equity for the year ended December 31, 20Y5.
Answer:
450000
Explanation:
The statement of partners' capital shows the changes in each partner's capital account for the year or period being reported on. It has the same format as the statement of owner's equity except that it includes a column for each partner and a total column for the company rather than just one column. The statement starts with the beginning capital balance, followed by the amounts of investments made, the share of net income or loss, and withdrawals made during the reporting period to determine the capital balance at the end of the period.
Dennis Ben Randy Total capital
Balance jan1,20Y5 180,000 120,000 - 300,000
Admission of randy - - 75000 75000
Salary Allowance 40000 - - 40000
Remaining income 52800 35200 22000 110,000
Partners withdrawals (46400) (17600) (11000) (75000 )
Balance Dec 31,2015 226400 137600 86000 450000
Deferral adjustments are needed when the business:
a. Pays cash after the expense has been incurred.
b. Unanswered pays cash before the expense has been incurred.
c. Unanswered receives cash after the revenue has been generated.
d. Unanswered receives cash before the revenue has been generated.
Answer:
The correct answers are the options B and D: Pays cash before the expense has been incurred. And receives cash before the revenue has been generated.
Explanation:
To begin with, in the accounting field the term of "Deferral Adjustments" refers to those that the accountant does when they postpone the report of it in the income statement until a later period, so that means that when an event happens they might decide to postpone the report of that particular transaction doing what it is called "defer". Moreover, the two most common cases when the accountants use this technique are the ones choosen from the options, the cases B and D.
Based on the preceding information, which of the following is an consolidating entry needed to prepare a full set of consolidated financial statements at December 31, 20X8:
A. Common Stock 200,000
Retained Earnings 150,000
Income from Tester Co. 40,000
Dividends declared 10,000
Investment in Tester Co. 285,000
NCI in NA of Tester Co. 95,000
B. Depreciation Expense 5,000
Income from Tester Co. 4,000
NCI in NI of Tester Co. 1,000
C. Common Stock 200,000
Retained Earnings 150,000
Income from Tester Co. 30,000
NCI in NI of Tester Co. 10,000
Dividends declared 10,000
Investment in Tester Co. 285,000
NCI in NA of Tester Co. 95,000
D. Patents 50,000
Accumulated Depreciation 10,000
Investment in Tester Co. 30,000
NCI in NA of Tester Co. 10,000
Answer:
Based on the preceding information, which of the following is an consolidating entry needed to prepare a full set of consolidated financial statements at December 31, 20X8:
Based on the preceding information, which of the following is an consolidating entry needed to prepare a full set of consolidated financial statements at December 31, 20X8:
A. Common Stock 200,000
Retained Earnings 150,000
Income from Tester Co. 40,000
Dividends declared 10,000
Investment in Tester Co. 285,000
NCI in NA of Tester Co. 95,000
Explanation:
Data:
A is the only correct answer. With it, the following accounts are debited:
Common Stock 200,000
Retained Earnings 150,000
Income from Tester Co. 40,000
And these accounts are credited:
Dividends declared 10,000
Investment in Tester Co. 285,000
NCI in NA of Tester Co. 95,000
With these, the debit side and the credit side are made to be equal. Again, debiting and crediting the above accounts eliminate them from the combined or consolidated financial statements since they are reflected on opposite sides of the parent and subsidiary's financial statements.
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $750,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
200,000
Explanation:
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
Cash flow from operating activities
Net Income 5,000,000
Less Depreciation (450,000)
Cashflow from operations 5,450,000
Cash flow from investing activities
Purchase of Fixed assets 5,400,,000
Cash flow from investing activities
Issue of long term debt 1,000,000
Dividend paid (750,000)
Cash generated from investing activities 250,000
Change in cash 300,000
Beginning balance 100,000
Closing balance 200,000
Which of these is a way that politicians in the United States attempt to influence the media?
Answer:
They try to “spin” the news by manipulating
Explanation:
Answer:
Hope it helps
Explanation:
because they are tools that can be used to inform and mobilize users in new ways. Users are able to connect directly to politicians and campaign managers and engage in political activities in new ways.They try to "spin" the news by manipulating how reporters interpret events
Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts.
Jul.
1. Yardley contributed $68,000 cash to the business in exchange for common stock.
5. Paid monthly rent on medical equipment, $510.
9. Paid $16,000 cash to purchase land to be used in operations.
10. Purchased office supplies on account, $1 ,600.
19. Borrowed $26,000 from the bank for business use.
22. Paid $1 , 100 on account.
28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.
31. Revenues earned during the month included $6,300 cash and $5,300 on account.
31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.
31. The business received $1 ,340 for medical screening services to be performed next month.
31. Paid cash dividends of $6,900.
Answer:
July 1. Yardley contributed $68,000 cash to the business in exchange for common stock.
Dr cash 68,000
Cr common stock 68,000
July 5. Paid monthly rent on medical equipment, $510.
Dr rent expense 510
Cr cash 510
July 9. Paid $16,000 cash to purchase land to be used in operations.
Dr land 16,000
Cr cash 16,000
July 10. Purchased office supplies on account, $1 ,600.
Dr office supplies 1,600
Cr accounts payable 1,600
July 19. Borrowed $26,000 from the bank for business use.
Dr cash 26,000
Cr notes payable 26,000
July 22. Paid $1,100 on account.
Dr accounts payable 1,100
Cr cash 1,100
July 28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.
Dr advertising expense 250
Cr accounts payable 250
July 31. Revenues earned during the month included $6,300 cash and $5,300 on account.
Dr cash 6,300
Dr accounts receivable 5,300
Cr service revenue 11,600
July 31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.
Dr wages expense 1,900
Dr rent expense 1,400
Dr utilities expense 600
Cr cash 3,900
July 31. The business received $1 ,340 for medical screening services to be performed next month.
Dr cash 1,340
Cr unearned revenue 1,340
July 31. Paid cash dividends of $6,900.
Dr dividends 6,900
Cr cash 6,900
cash
debit credit
July 1 68,000
July 5 510
July 9 16,000
July 19 26,000
July 22 1,100
July 31 6,300
July 31 3,900
July 31 1,340
July 31 6,900
101,640
accounts receivable
debit credit
July 31 5,300
office supplies
debit credit
July 10 1,600
land
debit credit
July 9 16,000
accounts payable
debit credit
July 10 1,600
July 22 1,100
July 28 250
750
unearned revenue
debit credit
July 31 1,340
notes payable
debit credit
July 19 26,000
common stock
debit credit
July 1 68,000
service revenue
debit credit
July 31 11,600
rent expense
debit credit
July 5 510
July 31 1,400
advertising expense
debit credit
July 28 250
wages expense
debit credit
July 31 1,900
utilities expense
debit credit
July 31 600
dividends
debit credit
July 31 6,900
The rule of 70 indicates that a 6% annual increase in the level of real GDP would lead to the output doubling in approximately _____ years.
Answer:
11.67
Explanation:
the time it would take real GDP to double = 70 / growth rate of real GDP = 70 / 6 = 11.67 years
Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead cost. The company assigns an overhead cost to jobs using the predetermined overhead rate of $18.40 per direct labor-hour. During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $8,500
Purchased during the month $38,000
Used in production $39,300
Labor:
Direct labor-hours worked during the month 1,900
Direct labor cost incurred $24,510
Actual manufacturing overhead costs incurred $33,300
Inventories:
Raw materials, May 30
Work in process, May 30 $16,937
Work in process inventory on May 30 contains $3,741 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the month would include a:________.
a: credit of $5,336 to Manufacturing Overhead.
b: credit of $1,660 to Manufacturing Overhead.
c: debit of $5,336 to Manufacturing Overhead.
d: debit of $1,660 to Manufacturing Overhead.
Accounting entries for adjustment of overhead expenses.
Generally overheads are applied to various jobs on a predetermined basis. But actual overheads incurred can be more than/ less than predetermined overhead costs. To adjust this difference journal entries are made at the end of the period.
Answer:
The answer is "Option b".
Explanation:
The value of Applied overhead:
[tex]= 18.40 \times 1900 \\\\ = 34960[/tex]
The Actual overhead:
[tex]= 33300[/tex]
The Overlapping overhead = Applied overhead- Actual overhead
[tex]= 34960-33300\\\\= 1660[/tex]
Journal entry:
Date and explanation account Dr. Cr.
Overhead production 1600
goods sold at prices 1600
(Overcast overhead is available to records)
Lemon Corporation generated $324,600 of income from ordinary business operations. It also sold several assets during the year. Compute Lemon’s taxable income under each of the following alternative assumptions about the tax consequences of the asset sales.
a. Lemon recognized a $5,500 capital gain and a $7,400 net Section 1231 loss.
b. Lemon recognized a $6,500 capital loss and a $4,700 net Section 1231 gain.
c. Lemon recognized a $2,500 capital gain, a $3,900 capital loss, and a $3,000 net Section 1231 gain.
d.Lemon recognized $4,000 of depreciation recapture, a $2,000 Section 1231 gain, and a $4,200 Section 1231 loss.
Answer:
a. Lemon’s taxable income = $322,700
b. Lemon’s taxable income = $324,600
c. Lemon’s taxable income = $326,200
d. Lemon’s taxable income = $326,400
Explanation:
Before the questions are answered, the provisions of section 1231 of the Internal Revenue Service (IRS) rules are quoted as follows:
- If you have a net section 1231 loss, it is an ordinary loss.
- If you have a net section 1231 gain, it is ordinary income up to the amount of your unrecaptured section 1231 losses from previous years. The rest, if any, is a long-term capital gain.
Therefore, net section 1231 loss which is an ordinary loss is deducted from ordinary business operations to obtain taxable income.
Also, we describe the following:
Taxable income can be described as the amount of income that is employed to calculated the amount of tax that is payable to the government by an individual or a company in a particular tax year. It is obtained after making all required additions and allowable deductions.
Capital gain can be described as an increase in the value of a capital asset which is realized when the asset is sold. For tax purposes, capital gain is added to the income from ordinary business operations to obtain taxable income.
Capital loss can be described as a decrease in the value of a capital asset which is recognised when the asset is sold. For tax purposes, capital loss is deducted from the income from ordinary business operations to obtain taxable income.
We therefore proceed as follows:
a. Lemon recognized a $5,500 capital gain and a $7,400 net Section 1231 loss.
From the question, we have the following:
Income from ordinary business operations = $324,600
Capital gain recognised = $5,500
Net Section 1231 loss recognised = $7,400
Based on the explanation provided above, Lemon’s taxable income under this scenario is therefore calculated as follows:
Lemon’s taxable income = Income from ordinary business operations + Capital gain recognised - Net Section 1231 loss recognised = $324,600 + $5,500 - $7,400 = $322,700
b. Lemon recognized a $6,500 capital loss and a $4,700 net Section 1231 gain.
From the question, there is nothing related past five years stated and it is therefore assumed that there is no net section 1231 loss in the past five years.
As result, the total of $4,700 net Section 1231 gain is regarded as a capital gain and it is set-off against the $6,500 capital loss as follows to obtain the non-deductible expense as follows:
Non-deductible expense = $6,500 - $4,700 = $1,800
Since there is nothing deductible again, Lemon’s taxable income under this scenario is therefore equal to the income from ordinary business operations of $324,600. That is,
Lemon’s taxable income = $324,600
c. Lemon recognized a $2,500 capital gain, a $3,900 capital loss, and a $3,000 net Section 1231 gain.
Since no net section 1231 loss in the past five years is indicated here, the $3,000 net Section 1231 gain will be treated as a long-term capital gain.
Based on the provisions of section 1231 of the Internal Revenue Service (IRS) rules quoted above, non-deductible expense is calculated by deducting the $3,900 capital loss to the extent of the $2,500 capital gain as follows:
Non-deductible expense = $3,900 - $2,500 = $1,400
Since the $3,000 net Section 1231 gain has to be treated as a long-term capital gain, the $1,400 will be deducted from it obtain the net capital gain as follows:
Net capital gain = $3000 - $1400 = $1600
Lemon’s taxable income under this scenario is therefore calculated by adding the $1,600 net capital gain to the $324,600 income from ordinary business operations as follows:
Lemon’s taxable income = $324,600 + $1600 = $326,200
d. Lemon recognized $4,000 of depreciation recapture, a $2,000 Section 1231 gain, and a $4,200 Section 1231 loss.
We have the following:
Section 1231 loss = $4,200
Section 1231 gain = $2,000
Therefore, we have:
Net section 1231 loss = Section 1231 loss - Section 1231 gain = $4,200 - 2,000 = $2,200
This net section 1231 loss of $2,200 is therefore treated as ordinary loss as already stated in the provisions of section 1231 of the Internal Revenue Service (IRS) rules quoted above and deducted from the $324,600 income from ordinary business operations.
In addition, the depreciation recapture of $4,000 will be treated as ordinary income and it will be added to the $324,600 income from ordinary business operations.
Lemon’s taxable income under this scenario is therefore calculated as follows:
Lemon’s taxable income = Income from ordinary business operations + Depreciation recapture - Net section 1231 loss = $324,600 + $4,000 - $2,200 = $326,400
Pooling has been used for a long time by businesses as a way to reduce risk. Imagine that years ago a small paint factory employed 200 people, each with an annual salary of $600/year. The factory owner knew from experience that 4 percent of workers were being injured each year, becoming unable to work. The factory owner decided to set up a fund to pay injured workers three months of salary to help their families and build good will with employees. The owner did not contribute to the injury fund. The workers themselves contributed a fixed amount each year to fund the plan. Answer the following questions (1 point each):_____.
1. How much did the owner need to collect from employees in total to fully fund the plan each year?
2. How much did each employee have to contribute each year to fully fund the plan?
3. What percentage of salary did each employee contribute to have an injury fund like this?
Answer:
1. Amount required to fund the plan = % of injured*Total employees* Annual salary
Amount required to fund the plan = 4%*200 people* $600
Amount required to fund the plan = $4800
2. Amount contributed by each employee = Amount required to fund the plan / Number of employees
Amount contributed by each employee = $4800/200
Amount contributed by each employee = $24
3. Percentage of salary = Amount contributed by each employee / Salary
Percentage of salary = 24/600
Percentage of salary = 0.04
Percentage of salary = 4%
Rutgers Racquet Club adjusts its accounts monthly. Club members pay their annual dues in advance by January 15. The entire amount is initially credited to Unearned Membership Dues (a liability account). At the end of each month, an appropriate portion of this amount is credited to Membership Dues Earned. Guests of the club members normally pay a court rental fee before being allowed to play. The amounts collected are credited to Court Rental Revenue at the time of receipt. Certain guests are billed for court rental fees at the end of the month. The following information can be used for preparing adjusting entries at December 31, 20x5:
1. Salaries earned by club employees that have not yet been recorded or paid amount to $3,700.
2. A local VFW sponsored a tournament at Rutgers Racquet Club that took place on December 22, 20x5 of the current year. At December 31, the $1,200 owed by the VFW for court rentals on December 22 had not yet been recorded or billed.
3. A one-year fire and flood insurance policy had been purchased on May 31. The entire premium of $7,200 was initially recorded as Prepaid Insurance.
4. Rutgers Racquet Club was built in 20x1. The cost of the building and equipment was $320,000. Depreciation of the club's building and equipment is based on an estimated life of 20 years and a salvage value of $80,000. The straight-line method of depreciation is used.
5. A 36-month bank loan in the amount of $108,000 had been obtained by Rutgers Racquet Club on December 1, 20x5. Interest is computed at an annual rate of 9%. The entire $108,000, plus all of the interest accrued over the 36-month life of the loan, is due in full on December 1, 20x8.
6. Membership dues earned in December, 20x5 for collections received at January 15, 20x5 amounts to $52,000.
7. Unrecorded Income Taxes Expense accrued in December amounts to $16,000. This amount will not be paid until January 15, 20x6.
Required:
For each of the items above, prepare the necessary adjusting entry at December 31, 20x5.
Answer:
1. Salaries earned by club employees that have not yet been recorded or paid amount to $3,700.
Dr wages expense 3,700
Cr wages payable 3,700
2. A local VFW sponsored a tournament at Rutgers Racquet Club that took place on December 22, 20x5 of the current year. At December 31, the $1,200 owed by the VFW for court rentals on December 22 had not yet been recorded or billed.
Dr accounts receivable 1,200
Cr rental fees 1,200
3. A one-year fire and flood insurance policy had been purchased on May 31. The entire premium of $7,200 was initially recorded as Prepaid Insurance.
Dr insurance expense 4,200
Cr prepaid insurance 4,200
4. Rutgers Racquet Club was built in 20x1. The cost of the building and equipment was $320,000. Depreciation of the club's building and equipment is based on an estimated life of 20 years and a salvage value of $80,000. The straight-line method of depreciation is used.
Dr depreciation expense 12,000
Cr accumulated depreciation, building 12,000
5. A 36-month bank loan in the amount of $108,000 had been obtained by Rutgers Racquet Club on December 1, 20x5. Interest is computed at an annual rate of 9%. The entire $108,000, plus all of the interest accrued over the 36-month life of the loan, is due in full on December 1, 20x8.
Dr interest expense 810
Cr interest payable 810
6. Membership dues earned in December, 20x5 for collections received at January 15, 20x5 amounts to $52,000.
Dr unearned membership dues 52,000
Cr membership dues earned 52,000
7. Unrecorded Income Taxes Expense accrued in December amounts to $16,000. This amount will not be paid until January 15, 20x6.
Dr income tax expense 16,000
Cr income tax payable 16,000
FlanCrest Enterprises is a mid-sized auto supply company that manufactures electronic components for cars. It has approximately 200 employees, with about 150 working on the production line. Its primary customer is Widespread Motors, a large international auto manufacturer. Widespread Motors primarily sells their cars based on price, aiming to make the prices as low as possible in any particular market segment. The cars may not have as many features, but still operate and cost less than those of their competitors. FlanCrest, under the direction of Widespread, has been asked to reduce the price of its electronic components for the next order due to competitive pressure in the market for Widespread's best-selling car. To cut its prices and keep its biggest customer, FlanCrest announces that they will be eliminating the popular community college tuition reimbursement program and eliminating all overtime for production workers.
Which of the below choices most accurately describes the new HR strategy at FlanCrest Enterprises?
a. Commitment, because they are demonstrating commitment to the development of their workforce
b. Control, because they are attempting to control employees within the workplace
c. Commitment, because they are demonstrating commitment to their key customers
d. Control, because they are attempting to minimize labor costs
Answer:
c. Commitment, because they are demonstrating commitment to their key customers
Explanation:
In the given scenario FlanCrest specialise in selling electronic components for cars. Their main customer is Widespread Motors who are known for primarily sells their cars based on price, aiming to make the prices as low as possible in any particular market segment.
Based on this mode of doing business by their client FlanCrest have decided to cut its prices and keep its biggest customer, FlanCrest announces that they will be eliminating the popular community college tuition reimbursement program and eliminating all overtime for production workers.
This action was taken as a way to keep its key customer based on their business needs
Liam Wallace is general manager of moonwalk salons. during 2016 while this works for the company all year at a $13600 monthly salary he also earned a year end bonus = 15% of his annual salary. Wallace's federal income tax withheld during 2016 was $952 per month plus $3672 on his bonus check. state income tax withheld came to a $150 per month plus $90 on bonuses. FICA tax was withheld on annual earnings. Wallace authorized the following payroll deductions charity fund contribution of 3% of total earnings and life insurance of $50 per month.
1. Compute Wallace's gross pay, payroll deductions, and net pay for the full year 2016. Round all amounts to the nearest dollar
2. Compute Moonwalk's total 2016 payroll expense for Wallace
3. Make the journal entry to record Moonwalk's expense for Wallace's total earnings for the year, his payroll deductions, and net pay. Debit Salaries Expense and Bonus Expense as appropriate. Credit liability accounts for the payroll deductions and Cash for net pay. An explanation is not required
4. Make the journal entry to record the accrual of Moonwalk's payroll tax expense for Wallace's total earnings.
Answer:
1. Gross Pay = Salary + Bonus
= (13,600 * 12) + (15% * (13,600 * 12))
= 163,200 + 24,480
= $187,680
2.Wallace 2016 Payroll = Gross Pay - Deductions
Deductions
= FICA-Social security tax + FICA-Medicare tax + Federal income tax + State income tax + Charity Fund contribution + Life insurance contribution
= (6.2% x 117,000) + (1.45% x 187,680) + {(952 x 12) + 3,672} + {(150 x 12) + 90} + (3% x 187,680) + (50 x 12)
= 7,254 + 2,721.36 + 15,096 + 1,890 + 5,630.40 + 600
= $33,191.76
Wallace 2016 Payroll = 187,680 - 33,191.76
= $154,488.24
3.
DR Salaries Expense 163,200
Bonus Expense 24,480
CR FICA-Social Security Tax Payable 7,254
FICA- Medicare Tax Payable 2,721.36
Federal Income tax payable 15,096
State Income tax payable 1,890
Charity Fund Payable 5,630.90
Life Insurance Payable 600
Cash 154,488.24
4. Moonwalk's payroll tax expense for Wallace's total earnings.
DR Payroll Tax Expense 10,395.36
CR FICA-Social Security Tax Payable 7,254
FICA- Medicare Tax Payable 2,721.36
FUTA Payable (0.6% * 7,000) 42
SUTA Payable ( 5.4% * 7,000) 378
A small nation of 10 people idolizes the TV show The Voice. All they produce and consume are karaoke machines and CDs, in the following amounts:
Karaoke Machines CDs
Quantity Price(Dollars) Quantity Price (Dollars)
2020 20 50 60 5
2021 21 70 80 6
Using a method similar to that used to calculate the consumer price index, the percentage change in the overall price level is_____________ . (Note: Use 2020 as the base year, and fix the basket at 2 karaoke machines and 6 CDs.) Using a method similar to that used to calculate the GDP deflator, the percentage change of the overall price level is_____________ . (Note: Again, use 2020 as the base year.) Which of the following statements is correct? Check all that apply.
a. The inflation rate in 2021 is not the same using the two methods.
b. The CPI allows the basket of goods and services to change.
c. The GDP deflator holds the basket of goods and services constant.
Answer:
The inflation rate is different using the two methods as the rate of inflation calculated by the CPI holds basket of goods and services constant while the GDP deflator allows it to change.
Explanation:
i. Value of market basket of the good in 2020 = ($50*2) + ($5*6) = $130
Value of market basket of the good in 2021 = ($70*2) + ($6*6) = $176
CPI in 2020 = ($130 / $130) * 100 = 100
CPI in 2021 = ($176 / $130) * 100 = 135.38
Thus, The percentage change in overall price level is = [(135.38 - 100) / 100) * 100 = 35.38%
ii. Nominal GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300
Nominal GDP in 2021 = ($70 * 21) + ($6 * 80) = $1950
Real GDP in 2020 = ($50 * 20) + ($5 * 60) = $1300
Real GDP in 2021 = ($50 * 21) + ($5 * 80) = $1450
GDP deflator in 2020 = (Nominal GDP in 2107 / Nominal GDP in 2107) * 100 = ($1300 / $1300) * 100 = 100
GDP deflator in 2021 = (Nominal GDP in 2108 / Nominal GDP in 2108) * 100 = ($1950 / $1450) * 100 = 134.48
Thus, the percentage change in overall price level is = [(134.48 - 100) / 100) * 100 = 34.48%
Sherrie, a member, performs various bookkeeping functions for her very small closely held clients including posting cash receipts and disbursements to the client's general ledger. The client provides Sherrie with copies of check stubs and deposit slips where the client has provided account codes that Sherrie merely records in the general ledger. In addition, on a monthly basis, Sherrie calculates adjusting journal entries for depreciation, amortization, and tax accruals and posts these entries to the client's general ledger. Which of the following statements is true regarding Sherrie's independence with regard to these bookkeeping clients?
a. Sherrie's posting of client coded cash receipts and disbursements does not impair independence.
b. Sherrie's posting of adjusting journal entries does not impair independence whether or not she discusses them withthe client because these are routine accounting entries that small clients do not understand.
c. Neither of the described functions would impair independence under any circumstances.
d. None of the above statements is true.
Answer:
b. Sherrie's posting of adjusting journal entries does not impair independence whether or not she discusses them with the client because these are routine accounting entries that small clients do not understand.
Explanation:
This is likely the answer to the question asked about Sherrie's independence and the bookkeeping.
The statement which is true regarding Sherrie's independence with regard to these bookkeeping clients is:
B. Sherrie's posting of adjusting journal entries does not impair independence whether or not she discusses them with the client because these are routine accounting entries that small clients do not understand.Based on the given question, we can see that Sherrie is a bookkeeper who does her job of posting cash receipts and making disbursements and also the check stubs and monthly adjusting of journals.
WIth this in mind, impaired independence has to do with the responsibility which a bookkeeper takes with regards of the records of the client and her posting of journal entries does not impair independence.
Therefore, the correct answer is option
Read more about impaired independence here:
https://brainly.com/question/8026742
Rank the following items from the lowest (1) to highest (6) authority in the Federal tax law system: Ranking a. Interpretive Regulation. b. Legislative Regulation. c. Letter Ruling. 1 d. Revenue Ruling. e. Internal Revenue Code. f. Proposed Regulation.
Answer:
Items are being ranked from lowest (1) to highest (6)-
1. Letter ruling.
2. Proposed Regulation.
3. Revenue Ruling.
4. Interpretive Regulation.
5. Legislative Regulation.
6. Internal Revenue Code.
Explanation:
Federal tax law system: The term "federal tax law system" is described as a system that is being administered through the IRS that is responsible for collecting money on the basis of "earned income". Federal income tax is supposed to be collected by a "withholding process" wherein the employer tend to deduct tax from every employee payroll.
In the question above, the given statement represents the answer as c-f-d-a-b-e.