AA is the marking this curves intersections with the axes while the country was at curve BB.
This limitation doesn't apply in situations when the surfaces are in contact or share a surface element. It is easy to locate these locations by equating the equations of the two lines; the sites of intersection are where they equal each other. In a plane, intersecting lines are those that cross one another three times or more. The point of intersection is the shared location between all intersecting lines that exists on all intersecting lines. Point O represents the point of intersection where lines P and Q meet in this instance. A conic section is, in any case, the curve formed by the intersection of a plane with a quadric. See for further information. Quadric contour lines are a significant use of plane sections of quadrics.
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Listed below are selected Rules of Conduct and ethical problems. Match the rule with the problem to which it applies. (One Rule of Conduct may apply to more than one ethical problem.)
Rules
A. Independence
B. Integrity and objectivity
C. General standards
D. Compliance with standards
E. Accounting principles
F. Contingent fees
G. Acts discreditable
H. Advertising and other forms of solicitation
I. Commissions and referral fees
J. Form or practice and name
Rules
1. An audit client owes the CPA past-due audit fees.
2. A member violates rules issued by the Accounting and Review Services Committee.
3. A CPA accepts a percentage of the client's loan as an audit fee.
4. A CPA robs a service station.
5. The auditors fail to qualify their opinion on financial statements that do not properly apply FASB standards.
Answer:
1. Contingent fees
2. Acts discreditable
3. Commissions and referral fees
4. Compliance and standards
5. Accounting principles
Explanation:
The auditors have responsibility to act professionally as the shareholders rely on their work. The auditors should not accept any gift from other businesses because it may impact their independence and objectivity. The auditors are required to follow all the rules and standards that are issued by the IASB.
You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $98 million in current taxes and had an interest expense of $48 million. Calculate the cash flows from assets and the cash flows to creditors and shareholders using the accounting information in the statement of cash flows.
Answer:
a. Cash Flows from Assets is $29m
b. Cash flow from creditors is 91.90m
Explanation:
a. Cash Flow to creditors = Interest Paid - Net new borrowings + retirement of debt
CFC = $48m - (-139.90) + 0
CFC = $91.90 m
b. Cash flow from Assets = Operating Cash Flow - Net capital spending - Change in net working capital
Cash flow from Assets = $520 - $375 - $116
Cash Flow from Assets = $29m
For each additional room in the house, we estimate the appraised value to increase $74,800. For a house with 0 rooms, we estimate the appraised value to be $74,800. For each additional room in the house, we estimate the appraised value to increase $17,800. For each additional dollar of appraised value, we estimate the number of rooms in the house to increase by 17.80 rooms.
Answer:
Answer is explained in the explanation section below.
Explanation:
Note: This question is incomplete and lacks necessary data to solve. Because, it contains only the options of the real question and the real question itself is missing. However I have found that real question. And will be choosing the right option from the given choices. And for your reference, I have attached the real question in the attachment below.
Solution:
The correct option for this question is:
For each additional room in the house, we estimate the appraised value to increase $17,800.
As this is the regression equation question.
y = βo + β1x
The intercept of the line βo = 17.80
Because the intercept of the regression model with the sample of n = 74 is 17.80, so the appraised value to increase is $17800.
Sunland Design was founded by Thomas Grant in January 2011. Presented below is the adjusted trial balance as of December 31, 2020.
SUNLAND DESIGN
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $11,760
Accounts Receivable 22,260
Supplies 5,760
Prepaid Insurance 3,260
Equipment 60,760
Accumulated Depreciation-Equipment $35,760
Accounts Payable 5,760
Interest Payable 228
Notes Payable 7,600
Unearned Service Revenue 6,360
Salaries and Wages Payable 1,496
Common Stock 10,760
Retained Earnings 4,260
Service Revenue 62,260
Salaries and Wages Expense 12,060
Insurance Expense 1,046
Interest Expense 578
Depreciation Expense 9,600
Supplies Expenses 3,400
Rent Expense 4,000
$134,484 $134,00
Instructions
Prepare an income statement and a retained earnings statement for the year ending December 31, 2020, and an unclassified balance sheet at December 31.
Answer:
Part a
Income Statement $ $
Service Revenue 62,260
Less Expenses
Salaries and Wages Expense 12,060
Insurance Expense 1,046
Interest Expense 578
Depreciation Expense 9,600
Supplies Expenses 3,400
Rent Expense 4,000 (30,684)
Net Income 31,576
Part b
Retained Income Statement $
Beginning Retained Earnings (27,316)
Add Profit for the year 31,576
Ending Retained Earnings 4,260
Part c
Unclassified Balance Sheet $
ASSETS
Equipment 60,760
Accumulated Depreciation-Equipment (35,760) 25,000
Accounts Receivable 22,260
Supplies 5,760
Prepaid Insurance 3,260
Cash 11,760
TOTAL ASSETS 68,040
EQUITY AND LIABILITIES
EQUITY
Common Stock 10,760
Retained Earnings 4,260
TOTAL EQUITY 15,020
LIABILITIES
Accounts Payable 5,760
Interest Payable 228
Notes Payable 7,600
Unearned Service Revenue 6,360
Salaries and Wages Payable 1,496
TOTAL LIABILITIES 21,440
TOTAL EQUITY AND LIABILITIES 36,460
Explanation:
The Income Statement shows the Profit earned during the year. Profit = Sales - Expenses
The Retained Earnings Statement Shows the Retained Earnings Balance at end of the year. Retained Earnings Balance = Opening Balance + Profit - Dividends.
The Balance Sheet shows the Asset, Liabilities and Equity balances as at the reporting date.
. The equality of MR and MC is essential for profit maximization in all market structures because if multiple choice 1 MR and MC are equal, economic profits will be zero. MR is less than MC, producing more will increase profits. MR and MC are equal, any other output level will result in reduced profits. MR is greater than MC, producing more will lower profits.
Answer:
MR and MC are equal, any other output level will result in reduced profits.
Explanation:
Marginal cost is the increase in the total cost as a result of producing one additional unit. Marginal revenue is the increase in revenue resulting from the sale of one additional unit. Profit-maximization is the process by which a firm determines the price and output level that will result in the largest profit. The reason behind this strategy is that the total profit reaches its maximum point where marginal revenue equals marginal cost and the firm will continue to produce until marginal profit is zero. The marginal profit equals the marginal revenue minus the marginal cost.
Would you rather be able to change the size of your body, or be able to change your age?
Coronado Co. reports the following information for 2020: sales revenue $767,500, cost of goods sold $505,000, operating expenses $84,800, and an unrealized holding loss on available-for-sale debt securities for 2020 of $52,000. It declared and paid a cash dividend of $12,650 in 2020. Coronado Co. has January 1, 2020, balances in common stock $360,700; accumulated other comprehensive income $86,400; and retained earnings $91,890. It issued no stock during 2020. (Ignore income taxes.)
Required:
Prepare a statement of stockholders' equity.
Answer and Explanation:
The preparation of the statement of stockholder equity is presented below:
The net income could be find out by applying the following formula
= Sales - cost of goods sold - operating expenses
The statement of stockholder equity is a collection of common stock, retained earnings, comprehensive income and other comprehensive income
At year-end, salaries expense of $17,000 has been incurred by the company but is not yet paid to employees. Salaries payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2
b. At its December 31 year-end, the company owes $325 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year. Interest payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
c. At its December 31 year-end, the company holds a mortgage payable that has incurred $950 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year. Interest payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Answer:
Following are the responses to the given points:
Explanation:
For part A:
Payable Salary
for point 1 $0 $19,500
for point 2 $17,000 Cr $21,800
$41,300
for point 3 Accounts title Dr. Cr.
Salaries expense $17,000
Payable Salary $17,000
For part A: Payable Interest
for point 1 $0 $0
for point 2 $325 Cr. $325
$325
for point 3 Accounts title Dr. Cr.
Interest on Expense $325
Payable Interest $325
For part C: Payable Interest
for point 1 $0 $0
for point 2 $950 Cr. $950
$950
for point 3 Accounts title Dr. Cr.
Interest on Expense $950
Payable Interest $950
Zetterberg Builders is given two options for making payments on a brush hog. Find the value of X such that they would be indifferent between the two cash flow profiles if their TVOM is 4.5% per year compounded yearly.
End of Year Series 1 Series 2
0 $300 $0
1 $350 $0
2 $400 $35X
3 $450 $25X
4 $0 $15X
5 $0 $5X
Answer:
14.90
Explanation:
The computation of the value of X is shown below;
End of Year Series 1 Series 2 series 1 series 2
0 $300 $0 1 $300 $0
1 $350 $0 1.045 $366 $0
2 $400 $35X 1.092025 $437 38.15X
3 $450 $25X 1.141166 $514 35.25X
4 $0 $15X 1.192519 $0 28.8X
5 $0 $5X 1.246182 $0 6.2X
$1,616 108.4X
Now
108.4X = $1,616
x = $1,616 ÷ 108.4
= 14.90
At the end of April, the first month of the company's year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for April and (b) the balance sheet as of April 30. Also indicate whether the items in error will be overstated or understated.
Answer:
Overstatement is the situation where the amount of any item has been stated more than its actual figure
Understatement is the situation where the amount of any item has been stated less than its actual figure
a. The rent earned will be understated, as a result of which the income statement will give a lower net income.
b. Because of lower net income, retained earnings in stockholders' equity will be understated, and the liability account of unearned rent will be overstated
Most interest-paying checking accounts exhibit characteristics of both checking and savings accounts. Specifically, they earn relatively high rates of interest, especially compared with regular savings accounts, and allow relatively limited check-writing privileges. They are available through depository and nondepository institutions, including commercial banks, savings banks, credit unions, stock brokerage firms, mutual funds, and other financial services companies. What are some of the important characteristics of the following four major types of interest-paying checking accounts?
a. AMA: Asset Management Accounts
b. MMDA: Money Market Deposit Accounts
c. MMMF: Money Market Mutual Funds
d. NOW: Negotiable order of Withdrawal
Answer:
Some of the important characteristics are explained below:
a. AMA (Assets management accounts):
This account offers a various service to the account holders such as verifying the accounts, debit or credit card facilities, transfers of money between the accounts of account holders and provides facility of lower interest rate on loan.
b. MMDA (Money market deposit accounts):
This is a saving account which helps to the account holders in earning higher rate of annual yield as compared to the traditional savings account. This account needs a higher minimum balance in accounts of the accounts holder as compared to the standard savings bank account.
c. MMMF (Money market mutual funds):
This is a account which facilitates to the individual to invest their money in debt or securities for a short term period and they can be withdrawal their money when they require or needs the money.
d. NOW (Negotiable order of withdrawal):
This is the interest earnings account which facilitates to the account holders in making the drafts in against of the money which they deposit with their respective banks.
Suppose that you are running a business and you need some extra space for one year. Your bank offers you a loan of $200,000 at 0% interest. You consider borrowing this amount, buying the building, using it for one year, and then selling the building to pay back the loan. Unfortunately, the economy in which you are operating is experiencing deflation at a rate of 10% per year.
After one year, you should be able to sell the building for _.
Suppose that owning the building for a year would earn you $5,000. To decide whether or not you will be better off by owning it for one year and then selling it, you sought advice from three different people: (1) Your brother says that you should not buy the building because in one year it will cost you $100,000. (2) Your accountant says that you should definitely buy the building because you can borrow $100,000 at zero interest while the building will generate $5,000 in extra income. Then when you sell it, you will be $5,000 richer. (3) Your bookkeeper says that if you sell the building in a year, you will have to come up with more money to pay off the loan than you will make in extra income.
Keeping in mind that the economy experiences deflation at the rate of 10%, yourbookkeeper is right because: ________
a. When the nominal interest rate is zero, you do not incur any cost when you take out a loan.
b. The extra income you will earn will be less than the cost of owning the building for the year.
c. When the nominal interest rate is zero, the cost of a building is its full purchase price
Answer:
a. $180,000
b. The extra income you will earn will be less than the cost of owning the building for the year.
Explanation:
a) Data and Calculations:
Bank loan = $200,000
Interest rate = 0%
Cost of building = $200,000
Deflation rate = 10%
After one year, the price of the building will reduce to $180,000 ($200,000 * 90%)
So with deflation rate of 10%, you should be able to sell the building for only $180,000.
Expected revenue from owning the building for a year = $5,000
Cost of owning the building for a year = $20,000 ($200,000 - $180,000)
Therefore, the cost of owning the building for a year outstrips the revenue from owning the building by $15,000 ($20,000 -$5,000)
b. When The extra income you will earn then will be less than the cost of owning the building for the year.
Explanation:
a) When Data and Calculations:Then Bank loan = $200,000After that Interest rate = 0%Then Cost of building = $200,000Now Deflation rate = 10%Now After that one year, the price of the building will be reduce to $180,000 ($200,000 * 90%)So with deflation rate of 10%, you should be able to sell the building for only that is $180,000.When the Expected revenue from owning the building for a year = $5,000
After that the Cost of owning the building for a year = $20,000 ($200,000 - $180,000)So thus that Therefore, the cost of owning the building for a year outstrips the revenue from owning the building by $15,000 ($20,000 -$5,000)Learn more about:
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Dillon Company incurred the following costs while producing 480 units: direct materials, $9 per unit; direct labor, $22 per unit; variable manufacturing overhead, 12 per unit; total fixed manufacturing overhead costs, $7,680; variable selling and administrative costs, $4 per unit; total fixed selling and administrative costs, $4,320. There are no beginning inventories.
What is the unit product cost using variable costing?
A. $72 per unit
B. $59 per unit
C. $47 per unit
D. $43 per unit
Answer:
The unit cost is $43 per unit
Explanation:
Required
Determine the unit product cost?
Using variable costing, the unit product cost is:
[tex]Unit = DM+ DL + VMO[/tex]
[tex]DM = Direct\ Materials =\$9[/tex]
[tex]DL = Direct\ Labor =\$22[/tex]
[tex]VMO = Variable\ Manufacturing\ Overhead = \$12[/tex]
So, we have:
[tex]Unit = \$9 + \$22 + \$12[/tex]
[tex]Unit = \$43[/tex]
Hence, the unit cost is $43 per unit
Your client, Keith Teal Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 27 years. Teal has an investment cost of $430,300 in the machine, which has a useful life of 27 years and no salvage value at the end of that time. Your client is interested in earning an 11% return on its investment and has agreed to accept 27 equal rental payments at the end of each of the next 27 years.
A. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)
B. Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.)
Answer:
Souvenirs Corporation (Lessee)
A. Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $430,300.00 $47,333.00 $3,007.44 $427,292.56
2 $427,292.56 $47,002.18 $3,338.26 $423,954.31
3 $423,954.31 $46,634.97 $3,705.46 $420,248.84
4 $420,248.84 $46,227.37 $4,113.06 $416,135.78
5 $416,135.78 $45,774.94 $4,565.50 $411,570.28
6 $411,570.28 $45,272.73 $5,067.71 $406,502.57
7 $406,502.57 $44,715.28 $5,625.15 $400,877.42
8 $400,877.42 $44,096.52 $6,243.92 $394,633.50
9 $394,633.50 $43,409.68 $6,930.75 $387,702.74
10 $387,702.74 $42,647.30 $7,693.14 $380,009.61
11 $380,009.61 $41,801.06 $8,539.38 $371,470.23
12 $371,470.23 $40,861.73 $9,478.71 $361,991.52
13 $361,991.52 $39,819.07 $10,521.37 $351,470.15
14 $351,470.15 $38,661.72 $11,678.72 $339,791.43
15 $339,791.43 $37,377.06 $12,963.38 $326,828.05
16 $326,828.05 $35,951.09 $14,389.35 $312,438.69
17 $312,438.69 $34,368.26 $15,972.18 $296,466.51
18 $296,466.51 $32,611.32 $17,729.12 $278,737.39
19 $278,737.39 $30,661.11 $19,679.32 $259,058.07
20 $259,058.07 $28,496.39 $21,844.05 $237,214.02
21 $237,214.02 $26,093.54 $24,246.89 $212,967.12
22 $212,967.12 $23,426.38 $26,914.05 $186,053.07
23 $186,053.07 $20,465.84 $29,874.60 $156,178.47
24 $156,178.47 $17,179.63 $33,160.81 $123,017.67
25 $123,017.67 $13,531.94 $36,808.49 $86,209.17
26 $86,209.17 $9,483.01 $40,857.43 $45,351.75
27 $45,351.75 $4,988.69 $45,351.75 -$0.00
Payment Every Year = $50,340.44
B. Journal Entries for first two years of the lease for the Lessee:
2020:
Debit Right of Use Asset $1,359,191.80
Credit Lease Liability $1,359,191.80
To record the lease for 27 years.
Debit Lease Liability $3,007.44
Debit Interest on Lease $47,333.00
Credit Cash $50,340.44
To record the lease interest expense.
2021:
Debit Lease Liability $3,338.26
Debit Interest on Lease $47,002.18
Credit Cash $50,340.44
To record the lease interest expense.
Explanation:
a) Data and Calculations
Cost of Machine = $430,300
Useful life of machine = 27 years
Salvage value = $0
Expected return on investment = 11%
Period of equal rental payments = 27 years
From the online financial calculator:
Payment Every Year = $50,340.44
Total of 27 Payments = $1,359,191.80
Total Interest = $928,891.80
Amortization Table shows that at the end of 27 years:
Principal = 32%
Interest = 68% of the total lease payments.
Tyler Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2014, Tyler entered into a 3-year service contract with Walleye Tech. Walleye promises to pay $10,500 at the beginning of each year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $9,800. In addition, Walleye agrees to pay an additional $20,600 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification). The extended contract services are similar to those provided in the first 2 years of the contract.
1. Prepare the journal entries for Tyler in 2014 and 2015 related to this service contract. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2014
Dec 31, 2014
Jan 1, 2015
Dec 31, 2015
2. Prepare the journal entries for Tyler in 2016 related to the modified service contract, assuming a prospective approach. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2016
Dec 31, 206
3. Repeat the requirements for part (b), assuming Tyler and Walleye agree on a revised set of services (fewer bookkeeping services but more tax services) in the extended contract period and the modification results in a separate performance obligation. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2016
Dec 31, 2016
Answer:
Tyler Financial Services
1. Journal Entries:
January 1, 2014:
Debit Cash $10,500
Unearned Service Revenue $10,500
To record cash collected for unearned services.
December 31, 2014:
Debit Unearned Service Revenue $10,500
Credit Service Revenue $10,500
To record the earned service revenue for the year.
January 1, 2015:
Debit Cash $10,500
Unearned Service Revenue $10,500
To record cash collected for unearned services.
December 31, 2015:
Debit Unearned Service Revenue $10,500
Credit Service Revenue $10,500
To record the earned service revenue for the year.
2. Journal Entries:
January 1, 2016:
Debit Cash $30,400
Unearned Service Revenue $30,400
To record cash collected for unearned services.
December 31, 2016:
Debit Unearned Service Revenue $9,800
Credit Service Revenue $9,800
To record the earned service revenue for the year.
Explanation:
a) Data and Calculations:
Annual contract fee = $10,500 in 2014 and 2015
Modified contract fee = $9,800 in 2016
Additional fee from year 3 = $20,600 for 3 more years ($6,867 each year) from 2017 to 2019
b) Cash received ($30,400) on January 1, 2016 includes the $9,800 for 2016 and the $20,600 for the years 2017 to 2019.
For the current year, Power Cords Corp. expected to sell 42,100 industrial power cords. Fixed costs were expected to total $1,650,500; unit sales price was expected to be $3,800; and unit variable costs were budgeted at $2,300.
Power Cord Corp.'s margin of safety (MOS) in sales dollars is: (Do not round intermediate calculations.)
A. $155,798,733.
B. $189,973,732.
C. $161,718,730.
D. $173,523,730.
E. $145,348,733.
Answer:
A. $155,798,733.
Explanation:
The first task to determine the break-even point in sales dollars as shown below:
break-even point in sales dollars=fixed costs/contribution margin ratio
fixed costs=$1,650,500
contribution margin ratio=unit contribution margin/sales price
unit contribution margin=unit sales price- unit variable costs
unit contribution margin=$3,800-$2,300
unit contribution margin=$1,500
contribution margin ratio=$1500/$3,800
contribution margin ratio=39.47%
break-even point in sales dollars=$1,650,500/39.47%
break-even point in sales dollars=$4,181,657
margin of safety (MOS) in sales dollars=current sales- break-even point in sales dollars
current sales=42,100*$3,800=$159,980,000
margin of safety (MOS) in sales dollars=$159,980,000-$4,181,657=$155,798,343(closest to $155,798,733)
Giblin Corporation earned $9,700 of service revenue on account during Year 1. The company collected $8,245 cash from accounts receivable during Year 1. Required Based on this information alone, determine the following for Giblin Corporation. (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign.)
a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet.
b. The amount of net income that would be reported on the Year 1 income statement.
c. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows.
d. The amount of retained earnings that would be reported on the Year 1 balance sheet.
Answer and Explanation:
The computation is shown below:
a. The balance in the account receivable is
= $9,700 - $8,245
= $1,455
b. The amount of the net income is equivalent to the service revenue earned i.e. $9,700
c. The net cash flow from operating activities is
Net income $9,700
Less; increase in account receivable -$1,455
Net cash flow from operating activities $8,245
d. The retained earnings is equivalent to the amount of the net income i.e. $9,700
The level of analysis for the Industry environment is the _____ level:
Garcia Company issues 8.50%, 15-year bonds with a par value of $390,000 and semiannual interest payments. On the issue date, the annual market rate for these bonds is 12.50%, which implies a selling price of 79. The effective interest method is used to allocate interest expense. 1. Using the implied selling price of 79, what are the issuer's cash proceeds from issuance of these bonds.
Answer:
$308,100
Explanation:
Calculation for what are the issuer's cash proceeds from issuance of these bonds
Using this formulaIssuer's cash proceeds from issuance of bonds=Fave value*Implies a selling price percentage
Let plug in the formula
Issuer's cash proceeds from issuance of bonds=$390,000*79/100
Issuer's cash proceeds from issuance of bond=$308,100
Therefore the issuer's cash proceeds from issuance of these bonds will have be $308,100
Compute the (a) cost of products transferred from weaving to sewing, (b) cost of products transferred from sewing to finished goods, and (c) cost of goods sold. 2. Prepare journal entries dated June 30 to record (a) goods transferred from weaving to sewing, (b) goods transferred from sewing to finished goods, (c) sale of finished goods, and (d) cost of goods sold
Question Completion:
The following information applies to Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories:
Beginning Ending
Inventory Inventory
Raw materials inventory $ 120,000 $ 185,000
Work in process inventory-Weaving 300,000 330,000
Work in process inventory-Sewing 570, 000 700,000
Finished goods inventory 1,266,000 1,206,000
The following additional information describes the company's manufacturing activities for June:
Raw materials purchases (on credit) $500,000
Factory wages cost (paid in cash) 3,060,000
Other factory overhead cost (other Accounts credited) 156, 000
Materials used:
Direct-Weaving $ 240, 000
Direct-Sewing 75,000
Indirect 120,000
Labor used:
Direct-Weaving $1,200, 000
Direct-Sewing 360,000
Indirect 1,500,000
Overhead rates as a percent of direct labor:
Weaving Sewing
80% 150%
Sales (on credit) $4,000,000
Answer:
Pro-Weave
1. Computation of:
a) Cost of products transferred from Weaving to Sewing = $2,370,000
b) Cost of products transferred from Sewing to Finished Goods = $3,215,000
c) Cost of Goods Sold = $3,275,000
2. Journal Entries on June 30 to record:
(a) goods transferred from weaving to sewing
Debit WIP: Sewing $2,370,000
Credit WIP: Weaving $2,370,000
To transfer goods from weaving to sewing.
(b) goods transferred from sewing to finished goods
Debit Finished Goods Inventory $3,215,000
Credit WIP: Sewing $3,215,000
To transferred goods from sewing to finished goods.
(c) sale of finished goods, and
Debit Accounts Receivable $4,000,000
Credit Sales Revenue $4,000,000
To record the sale of goods on credit.
(d) cost of goods sold
Debit Cost of Goods Sold $3,275,000
Credit Finished Goods Inventory $3,275,000
To record the cost of goods sold.
Explanation:
a) Data and Calculations:
Items Weaving Sewing Finished Goods
Beginning Inventory $ 300,000 $570,000 $1,266,000
Direct materials 240,000 75,000
Direct labor 1,200,000 360,000
Overhead applied:
(1,200,000 * 80%) 960,000
($360,000 * 150%) 540,000
Cost of Weaving $2,700,000
Less Ending Inventory 330,000
Transferred to Sewing ($2,370,000) 2,370,000
Total cost of Sewing $3,915,000
Less Ending Inventory 700,000
Transferred to Finished Goods ($3,215,000) 3,215,000
Goods available for sale $4,481,000
Less Ending Inventory 1,206,000
Cost of Goods Sold $3,275,000
Manufacturing overhead actually incurred:
Indirect materials 120,000
Indirect labor 1,500,000
Total incurred 1,620,000
Which of the statements is the best description of inflation? The prices of only consumer goods are increasing. The price of all goods and services have increased proportionately. The price of all goods and services in the economy are increasing. Real GDP is rising. An increase in the overall price level has occurred.
Answer:
An increase in the overall price level has occurred.
Explanation:
Inflation can be defined as the persistent general rise in the price of goods and services in an economy at a specific period of time.
Mathematically, inflation is given by the formula;
Inflation = Nominal interest - Real interest rate
Hence, the best description of inflation is an increase in the overall price level has occurred.
Additionally, economics can be classified into two (2) main categories, namely;
1. Macroeconomics can be defined as the study of behaviors, performance and factors that affect the entire economy. Hence, it focuses on aggregate phenomena such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.
2. Microeconomics can be defined as the study of the effect of price and quantity levels through interactions between individual buyers and sellers in various markets. Simply stated, it focuses on analyzing or evaluating the decisions of consumers (buyers) and those of firms (sellers) such as methods of production, pricing; and the manner in which government policies affect those decisions.
Hence, macroeconomic is a kind of externalities that affects the levels of unemployment, inflation, or growth in the economy as a whole.
On December 1, 2022, Escobar Consulting, which uses a calendar year as its fiscal year, signs a $4,000, 12%, four-month note payable. Journalize the entry to record the payment of the note and entire interest on April 1, 2023.
A. Debit Notes Payable $4,160 Credit Interest Expense 160 Credit Cash $4,000
B. Debit Notes Payable $4,160 Credit Cash $4,160 You got it wrong :
C. Debit Notes Payable $4,000 Debit Interest Expense 160 Credit Cash $4,160 This is correct answer :
D. Debit Notes Payable $4,000 Debit Interest Expense 120 Debit Interest Payable 40 Credit Cash $4,160
Answer:
D. Debit Notes Payable $4,000 Debit Interest Expense 120 Debit Interest Payable 40 Credit Cash $4,160
Explanation:
The journal entry is shown below:
Note payable Dr $4,000
Interest expense $120 (($4,000 × 12% × 4 months ÷ 12 months) - $40)
Interest payable $40 ($4,000 × 12% × 4 months ÷ 12 months ÷ 4 month)
To Cash $4,160
(being cash paid is recorded)
Here the note payable, interest payable and interest expense is debited as it decreased the liabilities and increased the expenses while on the other hand the cash is credited as it decreased the assets
Why is prioritization an important skill to practice as a student?
Prioritization allows us to make decisions about what is important so we can know what to focus on and what's not as important. Being able to discern tasks that are necessary from those that we should do is crucial. Prioritization is a critical skill to have, but can take some practice to achieve.
FORco, a country F corporation, wants to open a sales office in the United States. FORco does not form a U.S. subsidiary, but instead operates in the U.S. as a branch. Country F does not have a income tax treaty with the U.S. If FORco loans operating funds to the U.S. branch, when the U.S. branch makes interest payment to FORco, the interest payment will be subject to:____.
Answer:
C. Subject to 30% withholding tax under the Branch Interest Withholding tax rules.
Explanation:
Options are "A. No interest withholding as the interest is deemed paid by the foreign corporation, since the U.S. branch is not a U.S. corporation. B. No interest withholding tax since the recipient of the interest is a foreign corporation. C. Subject to 30% withholding tax under the Branch Interest Withholding tax rules. D. Subject to 15% withholding tax under the Branch Profits tax rules. Reset Selection"
The interest payment will be subject to 30% withholding tax under the Branch Interest Withholding tax rules. Interest paid by a branch's U.S. trade or business, is considered U.S. source income and is subject to U.S. withholding tax at a rate of 30%, unless the tax is reduced or eliminated by a specific treaty or Code provision.
Question
Felicia Rashad Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2006 through 2014 as follows.
Income (Loss) Tax Rate
2006 $29,000 30 %
2007 40,000 30 %
2008 17,000 35 %
2009 48,000 50 %
2010 (150,000 ) 40 %
2011 90,000 40 %
2012 30,000 40 %
2013 105,000 40 %
2014 (60,000) 45 %
Pretax financial income (loss) and taxable income (loss) were the same for all years since Rashad has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
a) What entries for income taxes should be recorded for 2010? .
b) Indicate what the income tax expense portion of the income statement for 2010 should look like. Assume all income (loss) relates to continuing operations.
c)What entry for income taxes should be recorded in 2011?
d) How should the income tax expense section of the income statement for 2011 appear?
e) what entry for income taxes should be recorded in 2014
f) how should the income tax expense section of the statement for 2104 appear to be ?
?
Answer:
A. Dr Deferred Tax Asset 60,000.00
Cr Deferred Tax 60,000.00
B. Income Statement (Partial)
Current Tax -
Deferred Tax (60,000.00)
Total Tax (60,000.00)
C.Dr Deferred Tax Asset 36,000
Cr Deferred Tax 36,000
D. Income Statement (Partial)
Current Tax -
Deferred Tax 36,000
Total Tax 36,000
E. Dr Deferred Tax Asset 27,000
Cr Deferred Tax 27,000
F. Income Statement (Partial)
Current Tax -
Deferred Tax 27,000
Total Tax 27,000
Explanation:
A. Calculation for what the entries for income taxes should be recorded for 2010
Entries for Income tax for 2010
Dr Deferred Tax Asset 60,000.00
Cr Deferred Tax 60,000.00
2010 (150,000 *40 %)
(To record timing difference of carry forward losses)
b) Indication for what the income tax expense portion of the income statement for 2010 should look like. :
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax (60,000.00)
Total Tax (60,000.00)
c) Calculation for what the entries for income taxes should be recorded for 2011
Dr Deferred Tax Asset 36,000
Cr Deferred Tax 36,000
2011 (90,000* 40 %)
(To record deferred tax asset utilization)
d) Income tax expense section of the income statement for 2011 appear
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax 36,000
Total Tax 36,000
e) Calculation for what the entries for income taxes should be recorded for 2014
Dr Deferred Tax Asset 27,000
Cr Deferred Tax 27,000
2014 (60,000*45 %)
(To record deferred tax asset utilization)
f) Income tax expense section of the income statement for 2014 appear
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax 27,000
Total Tax 27,000
As noted in the case, HP considered approaching chain stores that sell store-brand cartridges compatible with its printers and offering them incentives if they end the practice. Considering the various types of allowances and discounts to channel members discussed within the chapter, what type of discount or allowance could the approach that HP is contemplating be most clearly identified as
Answer: a trade discount
Explanation:
Based on the information that was provided, the type of discount or allowance could the approach that HP is contemplating be most clearly identified as a trade discount.
A trade discount simply refers to the scenario when a manufacturer reduces the retail price it sells its good to the wholesaler or the retailer. Since HP approached chain stores, then a trade discount is considered here.
The following information is related to Nash Company for 2020.
Retained earnings balance, January 1, 2020 $901,600
Sales Revenue 23,000,000
Cost of goods sold 14,720,000
Interest revenue 64,400
Selling and administrative expenses 4,324,000
Write-off of goodwill 754,400
Income taxes for 2020 1,144,480
Gain on the sale of investments 101,200
Loss due to flood damage 358,800
Loss on the disposition of the wholesale division (net of tax) 404,800
Loss on operations of the wholesale division (net of tax) 82,800
Dividends declared on common stock 230,000
Dividends declared on preferred stock 73,600
Prepare a multiple-step income statement. (Round earnings per share to 2 decimal places, e.g. 1.49.)
Answer:
Nash Company
Multi-step Income Statement
For the year ended December 31, 2020:
Sales Revenue $23,000,000
Cost of goods sold 14,720,000
Gross income $8,280,000
Operating Expenses:
Selling and administrative expenses 4,324,000
Loss due to flood damage 358,800
Write-off of goodwill 754,400
Total operating expenses $5,437,200
Operating income $2,842,800
Interest revenue 64,400
Gain on the sale of investments 101,200
Income before taxes $3,008,400
Income taxes for 2020 1,144,480
Income after taxes $1,863,920
Loss on the disposition of
the wholesale division (net of tax) 404,800
Loss on operations of the
wholesale division (net of tax) 82,800
Net Comprehensive Income $1,376,320
Dividends declared: preferred stock 73,600
Earnings available to equity holders 1,302,720
Retained earnings 1/1/2020 901,600
Dividends declared: common stock 230,000
Retained earnings, 12/31/2020 $1,974,320
Explanation:
Nash's multi-step income statement has separate sections for operating income and other incomes before net comprehensive income. This last income is the point at which dividends are paid out to preferred stockholders before the retained earnings beginning balance are added, and then dividends are paid to the common stock.
Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a process cost system. There are multiple process departments. Three of these departments are the Molding, Cutting, and Welding departments. All items eventually end up in the Packaging Department, which prepares items for sale in kits or individually. The following information is available for the Molding department for January.
Work in process beginning:
Units in process 24,100
Stage of completion for materials 80%
Stage of completion for labor and overhead 30%
Costs in work in process inventory:
Materials $168,470
Labor 68,020
Overhead 17,160
Total costs in beginning work in process $253,650
Units started into production in January 59,800
Units completed and transferred in January 58,300
Costs added to production: Materials $281,593
Labor 311,150
Overhead 60,120
Total costs added into production in January $652,863
Work in process ending:
Units in process 25,600
Stage of completion for materials 50%
Stage of completion for labor and overhead 10%
Required:
Prepare a production cost report for Waterways using the weighted-average method.
Answer:
Waterways
Molding Department
Production Cost Report
Total costs of production:
Units Materials Conversion Total
Costs in work in process inventory: $168,470 $85,180 $253,650
Units started in January $281,593 371,270 $652,863
Total costs of production $450,063 $456,450 $906,513
Equivalent units of production:
Units Materials Conversion
Units completed & transferred 58,300 58,300 58,300
Work in process ending: 25,600 12,800 2,560
(25,600*50%) (25,600*10%)
Total equivalent units 71,100 60,860
Cost per equivalent unit:
Materials Conversion
Total costs of production $450,063 $456,450
Total equivalent units 71,100 60,860
Cost per equivalent unit $6.33 $7.50
Costs Assigned to units:
Materials Conversion Total
Cost per equivalent unit $6.33 $7.50
Units started and completed (58,300) $369,039 $437,250 $806,289
Work in Process, ending 12,800/2,560 81,024 19,200 100,224
Total costs assigned $450,063 $456,450 $906,513
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Work in process beginning: 24,100 80% 30%
Costs in work in process inventory: $168,470 $85,180 $253,650
Labor 68,020
Overhead 17,160
Units started in January 59,800 $281,593 371,270 $652,863
Units transferred 58,300
Labor 311,150
Overhead 60,120
Work in process ending: 25,600 50% 10%
How do financial institutions contribute to the development of a market economy?
A.
They collect sales tax on goods and services for local and state governments.
B.
They impose and collect tariffs on products imported from other countries.
C.
They prevent businesses and people from overspending when prices are high.
D.
They provide loans so that businesses and people can buy goods and services.
Answer:
Option D
Explanation:
I just used this on my test and got it correct
4. The following is Arkadia Corporation's contribution format income statement for last month: Sales $1,200,000 Variable expenses 800,000 Contribution margin 400,000 Fixed expenses 300,000 Net operating income $100,000 The company has no beginning or ending inventories and produced and sold 20,000 units during the month. (Each requirement is worth 3 points for a total of 18 points) Required: a. What is the company's contribution margin ratio
Answer:
Missing word "sold 20,000 units during the month at a sales price of $60 per unit.. b. What is the company's degree of operating leverage? c. How many units would the company have to sell to achieve a desired operating income before taxes of $150,000?"
a. Contribution Margin Ratio = Contribution margin / Sales
= 400000 / 1200000
= 0.3333
= 33.33%
b. Operating Leverage = Contribution / Net Income
= 400000 / 100000
= 4 Times
c. Sale to achieve desired profit = (Fixed Cost + Desired Profit) / Contribution Margin Ratio
= (300000 + 150000) / 0.3333
= $1350000
Sales in Units = $1350000 / 60 units = 22500 units