On July 1, 2021, Ross-Livermore Industries issued nine-month notes in the amount of $1,200 million. Interest is payable at maturity. Required: Determine the amount of interest expense that should be recorded in a year-end adjusting entry under each of the following independent assumptions: (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)
Answers
Answer and Explanation:
The computation of the interest expense that should be recorded to the following independent assumptions are as follows:
For December 31, 2021
= $1,200 × 11% × 6 months ÷ 12 months
= $66 million
For September 30, 2021
= $1,200 × 8% × 3 months ÷ 12 months
= $33 million
For October 31, 2021
= $1,200 × 7% × 4 months ÷ 12 months
= $44 million
For January 31, 2022
= $1,200 × 4% × 7 months ÷ 12 months
= $77 million
Related Questions
Babuca Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. Production volume 6,800 units 8,000 units Direct materials $ 402,560 $ 473,600 Direct labor $ 153,000 $ 180,000 Manufacturing overhead $ 1,007,900 $ 1,024,100 The best estimate of the total cost to manufacture 7,100 units is closest to: (Round your intermediate calculations to 2 decimal places.)
Answers
Answer:
solve yourselves
Explanation:
ASK UR TEACHER OR TRY YOURSELF DONT COME HERE FOR ANSWERS. OOPS CAPS. :)
Cost of Goods Manufactured and Sold
Direct labor cost $495,900
Purchases of direct materials 378,890
Freight-in on materials 7,500
Factory supplies used 18,500
Factory Utilities 54,000
Commissions paid 78,983
Factory supervision and indirect labor 165,000
Advertising 145,600
Materials handling 16,900
Work-in-process inventory, January 1 201,000
Work-in-process inventory, December 31 117,400
Direct materials inventory, January 1 37,200
Direct materials inventory, December 31 34,600
Finished goods inventory, January 1 59,200
Finished goods inventory, December 31 62,700
Anglin Company, a manufacturing firm, has supplied the following information from its accounting records for the last calendar year:
1. Prepare a cost of goods manufactured statement.
2. Prepare a cost of goods sold statement.
Answers
Answer:
Schedule for manufacturing cost
Beginning raw material 37200
Add Purchase of raw material 378890
Add Freight in on materials 7500
Total 423590
Less Ending Raw material 34600
Raw material used in production 388990
Add Direct labor 495900
Manufacturing overheads
Factory supplies 18500
Factory utilities 54000
Factory supervision and indirect labor 165000
Material handling 16900
Add Total overhead cost 254400
Total manufacturing cost 1139290
Cost of goods sold statement
Total manufacturing cost 1139290
Add Beginning work in progress 201000
1340290
Less Ending work in progress 117400
Cost of goods manufactured 1222890
Add Beginning finished goods inventory 59200
Cost of goods available for sale 1282090
Less Ending finished goods inventory 62700
Cost of goods sold 1219390
Oops! When you went in to make your deposit, the bank representative said the amount of required deposit reported in the advertisement was incorrect and should have read $22,500. This revision, which willreduce the interest rate earned on your deposited funds, will adjust your earned interest rate to
Answers
Answer: reduce; 2.67%
Explanation:
The original interest rate was:
= Annual Cashflow/ Present value
= 600 / 15,000
= 4%
The new interest rate is:
= 600 / 22,500
= 2.67%
We can see that the interest rate reduced from 4% to 2.67%.
This revision, which will reduce the interest rate earned on your deposited funds, will adjust your earned interest rate to 2.67%.
What are 4 status types that can be assigned to an estimate in QuickBooks Online?
Answers
Answer:
The status of estimates in QuickBooks Online is Pending, Accepted, Closed and Rejected.
Explanation:
The four status types are provided below:
PendingAcceptedClosedRejected→ Pending - To take account of something like the consumer, users can simply create a fresh quotation.
→ Accepted - The quotation has been somewhat acknowledged or confirmed by your client.
→ Closed - Around one several circumstances could be described here. Whether you have determined that you'll never seek particular goods as well as activity, or you'll never pay for something like this.
→ Rejected - The client opted not to acknowledge perhaps the appreciation.
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A farmer in Germany can use his land to produce corn or wheat. Suppose he can produce 1 million bushels of corn if it devotes all of its land to corn or 10 million bushels of wheat if it devotes all time to wheat. Plot the PPF with corn on the vertical access and wheat on the horizontal axis. What is the opportunity cost of a bushel of corn
Answers
Answer:
1/3 bushel of rye
Explanation:
Given that the farmer produces 30 bushels of corn every year but using the entire field on producing 30 corn bushels would cost 10 rye bushels. Thus, the opportunity cost of producing one bushel of corn would be 1/3 bushel of rye(10/30). The slope of the farmer's PPF would be -1/3 and hence, the opportunity cost of the farmer can be calculated by considering the reciprocal of a bushel of corn's opportunity cost.
The following information is available for Robstown Corporation for 20Y8:
Inventories
January 1
December 31
Materials $77,250 $93,600
Work in process 108,800 96,700
Finished goods 112,500 108,400
December 31
Advertising expense $ 67,800
Depreciation expense-office equipment 23,000
Depreciation expense-factory equipment 14,600
Direct labor 186,100
Heat, light, and power-factory 5,550
Indirect labor 23,800
Materials purchased 123,800
Office salaries expense 78,300
Property taxes-factory 4,145
Property taxes-office building 13,800
Rent expense-factory 6,550
Sales 861,500
Sales salaries expense 138,500
Supplies-factory 4,750
Miscellaneous costs-factory 4,420
a. Prepare the 20Y8 statement of cost of goods manufactured. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign.
Robstown Corporation
Statement of Cost of Goods Manufactured
1
2
Direct materials:
3
4
5
6
7
8
9
Factory overhead:
10
11
12
13
14
15
16
17
18
19
20
21
b. Prepare the 20Y8 income statement. Be sure to complete the statement heading. Refer to the list of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Enter amounts as positive numbers unless the amount is a calculation that results in a negative amount. For example: Net loss should be negative. Expenses should be positive.
Robstown Corporation
Income Statement
1
2
Cost of goods sold:
3
4
5
6
7
8
9
Operating expenses:
10
Administrative expenses:
11
12
13
14
Selling expenses:
15
16
17
18
Answers
Answer and Explanation:
The preparations are as follows:
1) For Cost of goods manufactured
Opening Work in process inventory $108,800
Direct materials:
Opening inventory $77,250
Add: Purchases $123,800
Cost of materials available for use $201,050
Less: Ending inventory - $93,600
Cost of direct materials used $107,450
Add: Direct labor $186,100
Factory overhead
Indirect labor $23,800
Depreciation expense - factory equipment $14,600
Heat, light, and power - factory $5,550
Property taxes - factory $4,145
Rent expense - factory $6,550
Supplies - factory $4,750
Miscellaneous cost - factory $4,420
Total factory overhead $63,815
Total manufacturing costs spent $357,365
Total manufacturing costs $466,165
Less: ending work in process inventory -$96,700
Cost of goods manufactured $369,465
2. For Income statement
Sales $861,500
Less: Cost of goods sold:
Opening finished goods inventory $112,500
Add: Cost of goods manufactured $369,465
Cost of finished goods available for sale $481,965
Less: Ending finished goods inventory -$108,400
Cost of goods sold $373,565
Gross profit $487,935
Less: Operating expenses:
Administrative expenses:
Office salaries expense $78,300
Depreciation expense - office equipment $23,000
Property taxes - office building $13,800
Selling expenses:
Advertising expense $67,800
Sales salaries expense $138,500
Total operating expenses $321,400
Net income $166,535
Larned Corporation recorded the following transactions for the just completed month. $76,000 in raw materials were purchased on account.
$74,000 in raw materials were used in production. Of this amount, $64,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $107,500 were paid in cash. Of this amount, $100,000 was for direct labor and the remainder was for indirect labor.
Depreciation of $199,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
No Transaction General Journal Debit Credit
1 a. Raw materials 90,000
Accounts payable 90,000
2 b. Work in process
Manufacturing overhead
Raw materials
3 c. Work in process
Manufacturing overhead
Wages payable
4 d. Manufacturing overhead
Answers
Answer:
1. Dr Raw material $76,000
Cr Account payable $76,000
2. Dr Work in process $64,000
Dr Manufacturing overhead $10,000
Cr Raw material $74,000
3. Dr Work in process $100,000
Dr Manufacturing overhead $7,500
Cr Cash $107,500
4. Dr Manufacturing overhead $199,000
Cr Accumulated depreciation-factory equipment $199,000
Explanation:
Preparation of the journal entries
1. Dr Raw material $76,000
Cr Account payable $76,000
2. Dr Work in process $64,000
Dr Manufacturing overhead $10,000
($74,000-$64,000)
Cr Raw material $74,000
3. Dr Work in process $100,000
Dr Manufacturing overhead $7,500
($107,500-$100,000)
Cr Cash $107,500
4. Dr Manufacturing overhead $199,000
Cr Accumulated depreciation-factory equipment $199,000
The process cost summary summarizes:_________
a. Physical flow of units.
b. Equivalent units of production.
c. Individual department's costs.
d. Costs per equivalent units.
e. Expenses incurred during the period.
f. Assignment of total costs to units worked on in the period.
Answers
Answer and Explanation:
The summary of the process cost involves the physical flow of units, equivalent units of production, cost per equivalent unit, and the total cost assignment to the units worked on the given time period
Only these four things would be shown in the summary of the process cost
Other than this would be ignored
Every day, Josephine buys coffee and lottery tickets. She has a budget of $12. The coffee at the bodega she goes to costs $0.75 and lottery tickets are $1.50 each. Which equation represents Josephine's budget constraint?
Answers
Answer:
12= 0.75x +1.5y
Explanation:
Josephine's budget constraint is represented by 0.75 + 1.5x ≤ 12 and thus Josephine can buy 7 lottery tickets.
What is inequality?A difference between two values indicates whether one is smaller, larger, or basically not similar to the other.
A mathematical phrase in which the sides are not equal is referred to as being unequal. In essence, a comparison of any two values reveals whether one is less than, larger than, or equal to the value on the opposite side of the equation.
Let's say the number of lottery tickets that Josephine can buy = x
Then,
1.5x = the Total amount of money for a lottery ticket.
Now,
Coffee cost + Lottery cost ≤ Budget
0.75 + 1.5x ≤ 12
1.5x ≤ 11.75
x ≤ 7.5 so Josephine can buy only 7 tickets.
Hence "Josephine's budget constraint is represented by 0.75 + 1.5x ≤ 12".
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The following information is for Punta Company for July: Factory overhead costs were applied to jobs at the predetermined rate of $51.50 per labor hour. Job S incurred 6,265 labor hours; Job T used 4,365 labor hours. Job S was shipped to customers during July. Job T was still in process at the end of July. The overapplied or underapplied overhead to the Cost of Goods Sold account was closed at the end of July. Factory utilities, factory depreciation, and factory insurance incurred are summarized as follows: Utilities $ 16,950 Depreciation 49,500 Insurance 19,800 Total $ 86,250 f. Direct materials and indirect materials used are as follows: Job S Job T Total Material A $ 33,000 $ 75,750 $ 108,750 Material B 14,700 37,700 52,400 Subtotal $ 47,700 $ 113,450 $ 161,150 Indirect materials 215,500 Total $ 376,650 g. Direct labor incurred for the two jobs and indirect labor are as follows: Job S $ 64,500 Job T 54,000 Indirect labor 151,000 Total $ 269,500
Required:
1. Calculate the total manufacturing cost for Job S and Job T for July. (Round your intermediate calculations and final answers to 2 decimal places.)
2. Calculate the amount of overapplied or underapplied overhead and state whether the Cost of Goods Sold account will be increased or decreased by the adjustment.?
Answers
Answer:
Solution 1 : Total Manufacturing Cost of Job S is $434,847.5 while for Job T is $ 392,247.5
Solution 2 : The amount of overheads has been over-applied and the Cost of Goods Sold will decrease by $94,695
Explanation:
Solution 1
Particulars Job S ($) Job T ($)
Direct material 47,700 113,450
Direct labor 64,500 54,000
Overhead Applied (Hours* $51.50) 322,647.5 224,797.5
Total manufacturing cost 434,847.5 392,247.5
Solution 2
In order to calculate the amount of over-applied or under-applied, we will take the difference between the overheads applied and the actual overheads incurred during the period. If the applied overheads are more than the actual then the amount has been over-applied and the Cost of Goods Sold will decrease. However, in case the overheads were under-applied then the Cost of Goods Sold would increase. The calculation has been done below:
Actual Overhead = $86,250 + $215,500 + $151,000 = $452,750
Applied overhead = 322,647.5 + 224,797.5 = $547,445
Over-applied/Under-applied overhead = Applied overhead - Actual Overhead
547,445 - 452,750 = $94,695. The overheads has been over-applied.
Cost of Goods Sold account will be decreased by $94,695.
At the beginning of September, Selena Cantu started Cantu Wealth Management Consulting, a firm that offers financial planning and advice about investing and managing money. On September 30, the accounting records of the business showed the following information.
Cash $66,200
Accounts Receivable 8,000
Office Supplies 6,800
Office Equipment 75,000
Accounts Payable 11,400
Selena Cantu, Capital, September 1, 2019 53,400
Fees Income 155,800
Advertising Expense 13,000
Salaries Expense 32,000
Telephone Expense 1,600
Withdrawals 18,000
Required:
Prepare a statement of owner’s equity for the month of September and a balance sheet for Cantu Wealth Management Consulting as of September 30, 2019.
Answers
Answer:
A.$144,600
B. ASSETS $156,000
LIABILITIES $156,000
Explanation:
A. Preparation of a statement of owner’s equity for the month of September and a balance sheet for Cantu Wealth Management Consulting as of September 30, 2019
First step is to prepare the Income statement
INCOME STATEMENT
For the month of September, 2019
Fees income $155,800
Less: Expense
Advertising Expense ($13,000)
Salaries Expense ($32,000)
Telephone Expense ($1,600)
Net income $109,200
Now let prepare the Statement of owner's equity
STATEMENT OF OWNER'S EQUTIY
For the month of September, 2019
Selena Cantu, Capital, September 1,2019 $53,400
Add: net income $109,200
Less: Withdrawals $18,000
Selena Cantu, Capital, September 30, 2019 $144,600
Therefore the statement of owner’s equity for the month of September will be $144,600
B. Preparation of the balance sheet for Cantu Wealth Management Consulting as of September 30, 2019
BALANCE SHEET For the month ended
September 30, 2019
ASSETS:
Cash $66,200
Accounts receivable $8,000
Office Supplies $6,800
Office equipment $75,000
TOTAL ASSETS $156,000
($66,200+$8,000+$6,800+$75,000)
Liabilities and Owner's capital
LIABILITIES:
Accounts payable $11,400
Owner's capital:
Selena Cantu, Capital, September 30, 2019 $144,600
TOTAL LIABILITIES and OWNER'S CAPITAL $156,000
($11,400+$144,600)
Therefore the balance sheet for Cantu Wealth Management Consulting as of September 30, 2019 will be:
ASSETS $156,000
LIABILITIES $156,000
How do patents help promote competition?
A. They support people who wish to copy and profit from registered inventions
B. Knowing inventions can be protected and encourages people to create new things
C. The owner of the patent can prevent other people and businesses from innovation
D. A patent can discourage businesses from offering new or improved goods and services
Answers
Gotta make the answer longer
The answer is B. Knowing inventions can be protected and encourages people to create new things. Please give the other person Brainliest. They deserve it.
Hope this helps! :)
Select the examples that best demonstrate likely tasks for Family and Community Services workers. Check all that apply.
Darnell prescribes medications for patients in a hospital.
Heath mends torn clothing for customers.
Fatima teaches an elderly person about available resources.
Bunny plans and organizes a religious ceremony.
Chi represents and seeks the best interests of a child when dealing with a school.
Jolie responds to customer complaints for a company that sells cars.
Answers
Answer:
C. Fatima teaches an elderly person about available resources.
D. Bunny plans and organizes a religious ceremony.
E. Chi represents and seeks the best interests of a child when dealing with a school.
Explanation:
edge 2021 :)
stay safe and good luck <3
Some examples of Family and Community Service worker tasks include:
Fatima teaches an elderly person about available resources.Bunny plans and organizes a religious ceremony.Chi represents and seeks the best interests of a child when dealing with a school.What are some tasks in Family and Community Service work?Family and Community work involves those that are done on a volunteer basis and for the benefit of the society.
When Fatima teaches elderly people and Chi represents a child when dealing with a school, these are therefore Family and Community Service tasks because they are helping people in the community.
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Suppose the market for hamburgers is unregulated. That is, hamburger prices are free to adjust based on the forces of supply and demand. If a shortage exists in the hamburger market, then the current price must be ________than the equilibrium price. For the market to reach equilibrium, you would expect _______.
If a shortage exists in the hamburger market, then the current price must be a)higher b)lower than the equilibrium price. For the market to reach equilibrium, you would expect:__________
a) buyers to offer higher prices
b) sellers to offer lower prices
c) persistent excess demand
Answers
Answerp
lower, buyers to offer higher prices
Explanation:
An unregulated market, is one whereby the supply and demand is left unguided or unmonitored. This makes buyers and sellers execute different prices as they deem fit.
It is commonly known that Prices that is behind or below the equilibrium price brings about excess demand as various buyers would want to buy to more goods than sellers are willing to sell. In this case, the quantity supplied will be less than the quantity demanded at that price. Some buyers who wish to be hamburger at the current price will be unable to do so. In order to buy hamburger, some buyers will offer higher prices. Some sellers will be love to sell additional unit only if the buyers increases the selling rate. The market being move toward the equilibrium price, where the quantity of the hamburger demanded by buyers is of an equals amount with the quantity supplied by sellers.
In which statement(s) is "demand" used correctly?
(I) “An increase in the price of hot dogs will reduce the demand for hot dogs.”
(II) “An increase in the price of hot dogs will reduce the demand for hot dog buns.”
Answers
Answer:
its Two
Explanation:
In the given statement "demand" is used correctly in “An increase in the price of hot dogs will reduce the demand for hot dog buns.” The correct option is (ii).
What do you mean by the demand?Demand is the consumer's intention to buy a specific product or service. The demand for a specific good on the market is known as market demand.
The total demand for goods and services in the economy is known as aggregate demand. The price of an item or service is determined by how well supply and demand match.
The law of demand is concerned with how often customers want to buy particular goods and services at particular costs.
Demand can refer to the overall demand for all the goods in an economy or the market demand for a particular good.
The real prices of items and the amount that trades hands in a market are determined by supply and demand.
Therefore, in the given statement "demand" is used correctly in “An increase in the price of hot dogs will reduce the demand for hot dog buns.”
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The basic difference for the lessor between a direct financing lease and a sales-type lease:_________
a. there is no difference for the lessor between a direct financing lease and a sales-type lease.
b. the lessor reimburses to the lessee the executory costs.
c. in a sales-type lease, the profit is recognized immediately. In a direct financing lease, the profit is deferred and recognized over the life of the lease.
d. in a direct financing lease, the profit is recognized immediately. In a sales-type lease, the profit is deferred and recognized over the life of the lease.
Answers
Answer:
c. in a sales-type lease, the profit is recognized immediately. In a direct financing lease, the profit is deferred and recognized over the life of the lease.
Explanation:
In the case of sales type lease, the profit is recorded instantly while on the other hand the financial lease in this there is a deferred profit and the same would be recorded over the lease life
Therefore according to the given situation, the option c is correct
And the rest of the options are wrong
Alex Vera organized Succulent Express at the beginning of February 20Y4. During February, Succulent Express entered into the following transactions:
a. Terry Mason invested $30,000 in Succulent Express in exchange for common stock.
b. Pald $5,400 on February i for an insurance premium on a one-year policy.
c. Purchased supplies on account, $1,800.
d. Received fees of $57,000 during February
e. Paid expenses as follows: wages, 521,600; rent, $6,400; utilities, $2,800; and miscellaneous, $3,200.
f. Paid dividends of $8,000.
Record the preceding transactions using the integrated financial statement framework. After each transaction, enter a balance for each item. If an amount box does not require an entry, leave it blank. Enter account decreases and net cash outflows as negative amounts using the minus sign.
Answers
Answer:
Net cash flow = $39,600
Net income = $18,050
Explanation:
Note: There is an error in the wages amount stated in the question. The correct amount of the wages is $21,600 not 521,600.
Explanation of the answer is now provided as follows:
Note: See the attached excel file for the integrated financial statement which comprises of Balance Sheet, Statement of Cash Flow and the Income Statement.
An integrated financial statement framework can be described as a type of framework which presents the balance sheet, cash flow statement, and income statement of a company.
In the attached excel file the following are used:
Insurance premium paid under Retained Earnings = Insurance premium paid * (11 Months / 12 Months) = $5,400 * (11 / 12) = $4,950
Prepaid insurance = Insurance premium paid - Insurance premium paid under Retained Earnings = $5,400 - $4,950 = $450
Expenses paid = wages + rent + utilities + miscellaneous = $21,600 + $6,400 + $2,800 + $3,200 = $34,000
Henry Carr and Noreen Mason formed a partnership, dividing income as follows: annual salary allowance to Carr of $42,000; interest of 7% on each partner's capital balance on January 1; any remaining net income is divided equally. Carr and Mason had $63,000 and $147,000 in their January 1 capital balances, respectively. Net income for the year was $442,000. How much net income should be distributed to Carr
Answers
Answer:
$239,060
Explanation:
The computation of the net income distributed to Carr as follows;
Particulars Carr Mason net income distributed Non-allocated
Net income $442,000
Salary
allowance $42,000 $42,000 $400,000
Interest
on capital $4,410 $10,290 $14,700 $385,300
left amount $192,650 $192,650 $385,300 $0
Net income $239,060
Company X and Company Y have the same cost of capital and identical asset portfolios with a market value of 1000. Company X has zero debt. The expected return on equity for Company X is 15%. The firm value of Company Y is made up of 50% debt and 50% equity. The expected return on debt for Company Y is 9%. Assuming perfect capital market, what is the expected return on equity for Company Y
Answers
Answer:
The expected return on equity for Company Y is:
= 0.21 or 21%
Explanation:
a) Data and Calculations:
Company X Company Y
Market value of assets 1,000 1,000
Equity 1,000 500
Debt 0 500
Expected return on equity 15%
Expected return on debt 9%
Return on Company X = 150 (1,000 * 15%)
Return on Company Y debt = 500 * 9% = 45
Return on Company Y equity = (150 - 45)/500 = 0.21
b) Under perfect capital market conditions, the total return for Company Y will be equal to 150 as in Company X. The rate of return will then be determined after subtracting the interest on debt (500 * 9%). This will leave 105 as the return for equity. This amount is then divided by the value of equity to derive the rate of return.
Management of Mittel Company would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported:
Inspection time: 0.5 days
Wait time (from order to start of production) 15.7days
Process time 2.8 days
Move time 0.7 days
Queue time 4.5 days
Required:
a. Compute the throughput time.
b. Compute the manufacturing cycle efficiency for the quarter.
c. What percentage of the throughput time was spent in non-value added activities?
d. Compute the cycle delivery time.
e. If by using Lean production all queue time during production is eliminated what will be the new MCE?
Answers
Answer:
a) throughput time is the sum of inspection + process + move + queue = 0.5 + 2.8 + 0.7 + 4.5 = 8.5 days
b) manufacturing cycle efficiency = process time / throughput time = 2.8 / 8.5 = 33%
c) percentage of the throughput time for non-value added activities = 1 - 33% = 67%
d) new throughput time = 4 days
MCE = 2.8 / 4 = 70%
Gwynn Incorporated had the following transactions involving current assets and current liabilities during February 2017.
Feb. 3 Collected accounts receivable of $15,000.
7 Purchased equipment for $23,000 cash.
11 Paid $3,000 for a 1-year insurance policy.
14 Paid accounts payable of $12,000.
18 Declared cash dividends, $4,000.
Additional information: As of February 1, 2017, current assets were $120,000 and current liabilities were $40,000.
Compute the current ratio as of the beginning of the month and after each transaction. (Round all answers to 2 decimal places, e.g. 1.83 :
Current ratio as of February 1, 2014 :1
Feb. 3 :1
Feb. 7 :1
Feb. 11 :1
Feb. 14 :1
Feb. 18 :1
Answers
Answer:
Gwynn Incorporated
Current Ratio After Each Transaction:
Feb. 1, 2017: Current Ratio = 3:1
Feb. 3, 2017: Current Ratio = 3:1
Feb. 7, 2017: Current Ratio = 2.43:1
Feb. 11, 2017: Current Ratio = 2.35:1
Feb. 14, 2017: Current Ratio = 2.93:1
Feb. 18, 2017: Current Ratio = 2.56
Explanation:
a) Data and Calculations:
February 1, 2017:
Current Assets = $120,000
Current Liabilities = $40,000
February 1, 2017: Current Ratio = $120,000/$40,000 = 3:1
Transactions:
Feb. 3 Collected accounts receivable of $15,000.
Current Assets = $120,000 (+$15,000 - $15,000)
Current Liabilities = $40,000
Current ratio = $120,000/$40,000 = 3:1
7 Purchased equipment for $23,000 cash.
Current Assets =$97,000 ($120,000 - $23,000)
Current Liabilities = $40,000
Current ratio = $97,000/$40,000 = 2.43:1
11 Paid $3,000 for a 1-year insurance policy.
Current Assets =$94,000 ($97,000 - $3,000)
Current Liabilities = $40,000
Current ratio = $94,000/$40,000 = 2.35:1
14 Paid accounts payable of $12,000.
Current Assets =$82,000 ($94,000 - $12,000)
Current Liabilities = $28,000 ($40,000 - $12,000)
Current ratio = $82,000/$28,000 = 2.93:1
18 Declared cash dividends, $4,000.
Current Assets =$82,000
Current Liabilities = $32,000 ($28,000 + $4,000)
Current ratio = $82,000/$32,000 = 2.56
b) The current ratio is one of the working capital ratios that show the relationship between current assets and current liabilities. It is computed as Current Assets divided by Current Liabilities.
You owe $5,000 on your credit card and you can pay the following monthly payments:
Month 1 2 3 4 5 6 7 8
Payment 500 550 600 650 700 750 800 850
IF the credit card company charges an interest rate of 1.5% per month, is this enough to pay off your credit card, and if so, by how much?
A. No, this cash flow falls short of paying off the credit card.
B. Yes, this cash flow exceeds the balance by $320.
C. Yes, this cash flow will pay off the credit card with $23.75 remaining.
D. No, this will only pay off $4,793.63 of the credit card.
Answers
Answer:
C. Yes, this cash flow will pay off the credit card with $23.75 remaining.
Explanation:
Calculation for how much will be enough to pay off your credit card
First step will be to use financial calculator to find the Net Present Value (NPV) of the payment amount from 1 month which is 500 to 8 month which is 850.
Hence,
NPV=$5,023.75
Now let calculate how much will be enough to pay off your credit card
Credit card pay off Amount =$5,023.75-$5,000
Credit card pay off Amount=$23.75
Therefore YES it will be enough to pay off the credit card and the amount that will be enough to pay off your credit card will be $23.75.
Sorter Company purchased equipment for $120,000 on January 2, 2019. The equipment has an estimated service life of 8 years and an estimated residual value of $12,000.
Required:
Compute the depreciation expense for 2019 under each of the following methods:
a. Straight-line
b. Sum-of-the-years'-digits
c. Double-declining-balance
Answers
Answer:
$13,500
$24,000
$30,000
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($120,000 - $12,000) / 8 = $13,500
the depreciation expense each year would be $13500
b. Sum-of-the-year digits = (remaining useful life / sum of the years ) x (Cost of asset - Salvage value)
Sum of the years = 1 +2 +3 +4 + 5 + 6 + 7 + 8 = 36
Remaining useful life = 8
(8/36) x ($120,000 - $12,000) = $24,000
c. Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/8 = 0.25
0.25 x $120,000 = $30,000
Treasury Stock Facts Target Inc. arranged to purchase a large block of its common stock from a major shareholder. The total number of shares purchased is 10,000 and these shares are to be held as treasury shares. Target Inc. uses the cost method to account for treasury shares. This shareholder had a controlling interest before the transaction. After the transaction this shareholder no longer has a controlling interest. Given these facts, to induce the shareholder to sell the block of stock Target Inc. was forced to pay an amount in excess of the current market price of the stock. Target Inc. paid the shareholder $40 per share when the market price was $30 per share.Question How should Target Inc. account for the purchase of this treasury stock?a. Provide a brief written description of the proper accounting treatment, including how the extra $10 paid per share is recorded.b. Prepare a formal journal entry to record the treasury stock transaction.c. Identify the specific paragraph of the FASB Codification which addresses this issue.
Answers
Answer:
Target Inc.
a. Under the cost method, as adopted by Target Inc., the cost of acquiring the treasury stock is debited to the Treasury Stock account and credited to the Cash account. This means that there is no differentiation of the extra $10 just as there is no differentiation between the par-value and the cost of acquiring each share.
b. Journal Entry:
Debit Treasury Stock $40,000
Credit Cash $40,000
To record the repurchase of 10,000 shares at $40 each.
c. The FASB Codification which addresses Treasury Stock accounting is called Codification Topic 505-30. The cost of treasury stock is reported separately from the gain or loss.
Explanation:
a) Data and Calculations:
Total number of shares purchased = 10,000
Price paid for the purchase = $40
Market price of the share = $30
Extra cost paid = $10
b) Two methods are adopted for recording treasury stock. There is the par-value method. This method records the treasury stock at the par value multiplied by the number of treasury stock. The difference in the purchase cost and the par-value is then recorded in the Additional Paid-in Capital account. The other method is the cost method. Here, the cost of acquiring the treasury stock (not the par-value) is recorded in the Treasury Stock account, with a credit entry to the Cash account. Treasury Stock account is a contrary account to the stockholders' equity, and as a result, is a deduction from the amounts in the Stockholders' Equity in the balance sheet, in both cases.
Inventories: March 1 March 31 Raw material $18,000 $15,000 Work in process 9,000 6,000 Finished goods 27,000 36,000 Additional information for March: Raw material purchased $42,000 Direct labor payroll $30,000 Direct labor rate per hour $7.50 Overhead rate per direct labor hour $10.00 Refer to Crawford Enterprises. For March, conversion cost incurred was
Answers
Answer:
$118000
Explanation:
Calculation for conversion cost incurred
First step is to calculate the Prime Cost
Opening stock Of Raw Material $18000
Add: Material purchased $42000
Less: Closing stock of raw material ($15000)
Add: Direct Labour $30000
Prime Cost $75000
Now let calculate the conversion cost incurred
Prime cost $75000
Add: overhead expenses $40000
[($30000/ $7.50)**10]
( 4000 * $10=$40000)
Total $115000
($75000+$40000)
Add: opening work in progress $9000
Total $124000
($115000+$9000)
Less: Closing stock of work in progress ($6000)
Factory cost or conversion cost $118000
($124000-$6000)
Therefore For March, conversion cost incurred was $118,000
The Blue Bird Bus Company in Georgia sells buses to the South African government. To South Africa, these buses are an example of:
Group of answer choices
countertrades
intangibles
exports
imports
tariffs
Answers
Ayala Architects incorporated as licensed architects on April 1, 2017. During the first month of the operation of the business, these events and transactions occurred:
Apr.
1 Stockholders invested $18,000 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $375 per week, payable monthly.
2 Paid office rent for the month $900.
3 Purchased architectural supplies on account from Burmingham Company $1,300.
10 Completed blueprints on a carport and billed client $1,900 for services.
11 Received $700 cash advance from M. Jason to design a new home.
20 Received $2,800 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,500.
30 Paid $300 to Burmingham Company for accounts payable due.
Required:
Journalize the transactions.
Answers
Answer:
Apr. 1
Dr Cash 18000
Cr Common stock 18000
Apr. 1
No entry
Apr. 2
Dr Rent expense 900
Cr Cash 900
Apr. 3
Dr Supplies 1300
Cr Accounts payable 1300
Apr. 10
Dr Accounts receivable 1900
Cr Service revenue1900
Apr. 11
Dr Cash700
Cr Unearned service revenue700
Apr. 20
Dr Cash 2800
Cr Service revenue 2800
Apr. 30
Dr Salaries and wages expense 1500
Cr Cash1500
Apr. 30
Dr Accounts payable 300
Cr Cash300
Explanation:
Preparation of the journal entries
Apr. 1
Dr Cash 18000
Cr Common stock 18000
Apr. 1
No entry
Apr. 2
Dr Rent expense 900
Cr Cash 900
Apr. 3
Dr Supplies 1300
Cr Accounts payable 1300
Apr. 10
Dr Accounts receivable 1900
Cr Service revenue1900
Apr. 11
Dr Cash700
Cr Unearned service revenue700
Apr. 20
Dr Cash 2800
Cr Service revenue 2800
Apr. 30
Dr Salaries and wages expense 1500
Cr Cash1500
Apr. 30
Dr Accounts payable 300
Cr Cash300
The pumping cost for delivering water from the Ohio River to Wheeling Steel for cooling hot rolled steel was $1.8 million for the first 4 years. An effective energy conservation program resulted in a reduced cost of $1.77 million in year 5, and $1.74 million in year 6, and amounts decreasing by $30,000 each year through year 10. What is the present worth of the pumping costs in year 0 at an interest rate of 12% per year?
Answers
Answer:
$9,923,100
Explanation:
The computation of the present worth is as follows:
Year Annual cost PV factor at 12% Present value
1 $1,800,000 0.893 $1.607,400
2 $1,800,000 0.797 $1,434,600
3 $1,800,000 0.712 $1,281,600
4 $1,800,000 0.636 $1,144,800
5 $1,770,000 0.567 $1,003,590
6 $1,740,000 0.507 $882,180
7 $1,710,000 0.452 $772,920
8 $1,680,000 0.404 $678,720
9 $1,650,000 0.361 $595,650
10 $1,620,000 0.322 $521,640
Present worth $9,923,100
Rainbow Corp. hires a new secretary, Polonova, who differs from the vast majority of the company's employees in terms of her ethnicity. The company has a collectivist culture with a culturally diverse workforce and several policies to support the minorities. Yet, after a few weeks, she quits the company. Which of the following, if true, helps explain why she quit?
A) Polonova has a strong sense of personal ambition and independence.
B) Rainbow Corp. recently had a huge turnover and plans to expand its market.
C) Polonova is more likely to conform to others' ideas and opinions rather than come up with her own.
D) All secretaries, regardless of their gender, are paid equal salaries at Rainbow Corp.
E) Polonova is gregarious and comfortable in changing contexts and ambiguous situations.
Answers
Answer:
A) Polonova has a strong sense of personal ambition and independence.
Explanation:
From the question we are informed Rainbow Corp. who hires a new secretary, Polonova, who differs from the vast majority of the company's employees in terms of her ethnicity. The company has a collectivist culture with a culturally diverse workforce and several policies to support the minorities. Yet, after a few weeks, she quits the company. In this case, she quit because Polonova has a strong sense of personal ambition and independence.
Personal Ambition can be regarded as strong desire as well as aspiration to work towards acheiving something or goals which requires alot of dedication and extra work. Personal independent also require the ability of someone to independently carry out some task productivity with freedom of choice in an organization.
ABC Company has elected to adopt the dollar-value LIFO inventory method when the inventory is valued at $125,000. The adoption takes place as of January 1, 20X1 when the entire inventory represents a single pool. ABC Company determined that the inventory at December 31, 20X1 was $144,375 at current year cost and $131,250 at base year cost using a relevant price index of 1.10. The inventory at December 31, 20X1 under dollar value LIFO is
Answers
Answer:
Explanation:
K