Answer:
Transactions Innovative Consulting Co.
Journal Entries:
Date Account Titles and Explanation Debit Credit
Oct. 1: 51 Rent Expense $2,500
11 Cash $2,500
Oct. 4: 52 Advertising Expense $1,000
11 Cash $1,000
Oct. 5: 13 Supplies $1,800
11 Cash $1,800
Oct. 6: 14 Office Equipment $11,500
21 Accounts payable $11,500
Oct. 12: 11 Cash $7,500
12 Accounts Receivable $7,500
Oct. 20: 21 Accounts payable $2,700
11 Cash $2,700
Oct. 27: 54 Miscellaneous Expense $700
11 Cash $700
Oct. 30: 53 Utilities Expense $475
11 Cash $475
Oct. 31: 12 Accounts Receivable $42,400
41 Fees Earned $42,400
Oct. 31: 53 Utilities Expense $900
11 Cash $900
Oct. 31: 33 Dividends $1,500
11 Cash $1,500
Explanation:
a) Data and Calculations:
Oct. 1: 51 Rent Expense $2,500 11 Cash $2,500
Oct. 4: 52 Advertising Expense $1,000 11 Cash $1,000
Oct. 5: 13 Supplies $1,800 11 Cash $1,800
Oct. 6: 14 Office Equipment $11,500 21 Accounts payable $11,500
Oct. 12: 11 Cash $7,500 12 Accounts Receivable $7,500
Oct. 20: 21 Accounts payable $2,700 11 Cash $2,700
Oct. 27: 54 Miscellaneous Expense $700 11 Cash $700
Oct. 30: 53 Utilities Expense $475 11 Cash $475
Oct. 31: 12 Accounts Receivable $42,400 41 Fees Earned $42,400
Oct. 31: 53 Utilities Expense $900 11 Cash $900
Oct. 31: 33 Dividends $1,500 11 Cash $1,500
Cullumber Company owns delivery equipment that cost $49,700 and has accumulated depreciation of $24,800 as of July 30, 2020. On that date, Cullumber disposes of this equipment. For parts b - d below, enter D for debit or C for credit in the first box and the amount in the second box. What is the net book value of the equipment on July 30, 2020
Answer:
The net book value of the equipment on July 30, 2020 is $24,900.
Explanation:
The net book value can be calculate using the following formula:
Net book value = Cost of the equipment - Accumulated depreciation …………………… (1)
Where:
Cost of the equipment = $49,700
Accumulated depreciation = $24,800
Substituting the values into equation (1), we have:
Net book value = $49,700 - $24,800 = $24,900
Therefore, the net book value of the equipment on July 30, 2020 is $24,900.
A good leader should have a positive outlook. Please select the best answer from the choices provided OT F
Answer:
true
Explanation:
if your leader dont have postivie outlook it will spread to the others
Answer:
true
Explanation:
Margerit is reviewing a project with projected sales of 1,500 units a year, a cashflow of $40 a unit and a three-year project life. The initial cost of the project is$95,000. The relevant discount rate is 15%. Margerit has the option to abandonthe project after one year at which time she feels she could sell the project for$60,000. At what level of sales should she be willing to abandon the project
Answer: 923 units
Explanation:
Margerit should abandon the project in a year if the cashflow associated with the project brings in a present value of less than or equal to $60,000 in a year.
The present value in year one should be set at $60,000.
The cashflow for the two years at a present value of $60,000 would be:
60,000 = Amount * Present value interest factor of an annuity, 2 periods, 15%
60,000 = Amount * 1.6257
Amount = 60,000 / 1.6257
= $36,907
The above is the amount received per sales that she should abandon the project at.
In units this is:
= 36,907 / 40 per unit
= 923 units
Describe a time where you provided or observed high-quality customer service. In Microsoft Word, margins are adjusted using?
Answer:
question was confusing
Explanation:
Select Layout > Margins. Select Custom Margins. In Margins, use the Up and Down arrows to enter the values you want. Select OK when done.
Refer to the data below. Retained earnings, December 31, 2019 $ 341,200 Cost of buildings purchased during 2020 48,000 Net income for the year ended December 31, 2020 55,100 Dividends declared and paid in 2020 32,600 Increase in cash balance from January 1, 2020, to December 31, 2020 23,400 Increase in long-term debt in 2020 45,000 Required: From the above data, calculate the Retained Earnings balance as of December 31, 2020:
Answer:
$363,700
Explanation:
The retained earnings balance as of December 31, 2020 is computed as;
= Retained earnings as of December 31, 2019 + Net income - Dividend paid
Given that
Retained earnings as of December 31, 2019 = $341,200
Dividends = $32,600
Net income = $55,100
Retained earnings balance as of December 31, 2020
= $341,200 + $55,100 - 32,600
= $363,700
You are planning to save for retirement over the next 30 years. To do this, you will invest $850 per month in a stock account and $350 per month in a bond account. The return of the stock account is expected to be 10% compounded monthly, and the bond account will pay 6% compounded monthly. When you retire, you will combine your money into an account with a return of 5% compounded monthly. How much can you withdraw each month from your account assuming a 25-year withdrawal period?
Answer:
$13,287.70
Explanation:
first we must calculate the future value:
future value of stock account = $850 x [(1 + 0.1/12)³⁶⁰ - 1 ] / (0.1/12) = $1,921,415
future value of bond account = $350 x [(1 + 0.06/12)³⁶⁰ - 1 ] / (0.06/12) = $351,580
total future value = $2,272,995
monthly withdrawal = value of account / PVIFA
PVIFA, 300 periods, 0.4167% = [1 - 1/(1 + 0.05/12)³⁰⁰] / (0.05/12) = 171.06
monthly withdrawal = $2,272,995 / 171.06 = $13,287.70
The Armer Company is accumulating data to be use in preparing its annual profit plan for the coming year. The cost behavior pattern of the maintenance costs must be determined. The accounting staff has suggested the use of linear regression to derive an equation for maintenance hours and costs. Data regarding the maintenance hours and costs for the last year and the results of the regression analysis follow: Month Maintenance Cost Machine Hours Jan. $ 4,200 480 Feb. 3,000 320 Mar. 3,600 400 Apr. 2,820 300 May 4,350 500 June 2,960 310 July 3,030 320 Aug. 4,470 520 Sept. 4,260 490 Oct. 4,050 470 Nov. 3,300 350 Dec. 3,160 340 Sum $ 43,200 4,800 Average $ 3,600 $ 400 Average cost per hour $ 9.00 a (intercept) $ 684.65 b (coefficient) 7.2884 Standard error of the estimate 34.469 R-squared 0.99724 t-value for b 60.105
Based on the data derived from the regression analysis, 420 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest dollar at:________.
Answer:
Based on the data derived from the regression analysis, 420 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest dollar at: $3,746.
Explanation:
From the regression results given in the question, we can obtain the following:
a. Intercept = $684.65
b. Coefficient = $7.2884
Based on the above, the estimated regression equation can be provided as follows:
Maintenance costs = $684.65 + ($7.2884 * Maintenance hours) ............. (1)
Since we are given 420 maintenance hours in a month, we therefore substitute "Maintenance hours = 420" into equation (1) to obtain the maintenance costs that should be budgeted as follows:
Maintenance costs = $684.65 + ($7.2884 * 420) = $684.65 + $3,061.128 = $3,745.778
Rounding to the nearest dollars, we have:
Maintenance costs = $3,746
Therefore, based on the data derived from the regression analysis, 420 maintenance hours in a month mean that maintenance costs should be budgeted to the nearest dollar at: $3,746.
Crystal lives in the fictional country of Cuse, which raises government revenue by taxing everyone the same amount. The government of Cuse has just implemented a tax cut that reduces annual taxes by $2,500 per person. However, government spending has not changed, nor is it likely change in the future. The tax cut has raised Crystal's income by $2,500. If Crystal acts according to the prediction of new classical economics (and doesn't plan to leave Cuse), her consumption is likely to increase by_______ .
Suppose that instead of cutting taxes while keeping its spending the same, the government did the oppo it increased its spending by $2,500 per person while keeping taxes the same. If everyone in Cuse acted like Crystal, the likely increase in aggregate demand would be_______ per person.
Answer: $0; $0
Explanation:
New classical economists believe that any fiscal policy that the government embarks on is ineffective on the goods demanded by people.
If the government reduces taxes, Crystal (according to the New classical) will believe that the government will raise taxes in future to make up for the shortfall so she will send the $2,500 to savings so she can be able to pay off the future taxes.
If the government increases spending, Crystal will believe that this will be financed by future tax increases so she will still save the money to pay off future taxes.
Describe the legal aspects of buying ?
Answer:
Legal aspects of buying and selling a business.
Pre-Sale. The key here is to ensure that appropriate advisers in place; such as tax, financial and legal advisers. ...
Heads of Agreement. ...
Due Diligence. ...
The Contract of Sale. ...
Warranties/Indemnities/Disclosure.
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $4,590,000 (270,000 hours at $17/hour) and that factory overhead would be $1,570,000 for the current period. At the end of the period, the records show that there had been 250,000 hours of direct labor and $1,270,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate? (Round your answer to two decimal places.)
Answer: $5.82 per direct labor hour
Explanation:
The predetermined overhead rate will be calculated as:
= Estimated overhead cost / Estimated direct labor hours
= 1570000/270000
= 5.82 per direct labor hour
Therefore, the predetermined overhead rate will be $5.82 per direct labor hour
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $6,700 cash and $33,700 of photography equipment in the company in exchange for common stock. 2 The company paid $2,300 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $900 cash. 20 The company received $3,531 cash in photography fees earned. 31 The company paid $695 cash for August utilities. Required: 1. Post the transactions to the T-accounts. 2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
Answer:
1. See the attached excel file for the T-accounts.
2. Total of credit side = Total of debit side = $43,931
Explanation:
1. Post the transactions to the T-accounts.
Note: See the attached excel file for the T-accounts.
2. Use the amounts from the T-accounts in Requirement (1) to prepare an August 31 trial balance for Pose-for-Pics.
The trial balance will look as follows:
Pose-for-Pics
Trial balance
For August, 31
Details Debit ($) Credit ($)
Cash 6,336
Equipment 33,700
Common stock 40,400
Prepaid Insurance 2,204
Insurance Expenses 96
Office Supplies 900
Photography fees 3,531
Utilities Expense 695
Total 43,931 43,931
In 2020, Henry Jones works as a freelance driver, finding customers using various platforms like Uber and Grubhub. He is single and has no other sources of income. In 2020, Henry's qualified business income from driving is $61,200. Assume Henry takes the standard deduction of $12,400. Click here to access the 2020 individual tax rate schedule to use for this problem. Assume the QBI amount is net of the self-employment tax deduction. Compute Henry's QBI deduction and his tax liability for 2020.
Answer:
Henry's QBI deduction = $9,760
Henry's taxable income = $39,040
Henry's tax liability = $4,487.30
Explanation:
QBI deduction = (AGI - standard deduction) x 20% = ($61,200 - $12,400) x 20% = $9,760
total taxable income = $61,200 - $12,400 - $9,760 = $39,040
tax liability = $987.50 + [12% x ($39,040 - $9,875)] = $987.50 + $3,449.80 = $4,487.30
a) Why is ethical relativism considered to be self-contradictory?
b) Explain conceptual muddles with an example.
Answer:
El relativismo no puede ser contradictorio porque no afirma ni niega nada. La expresión de una actitud moral consiste en valorar la diversidad.
Explanation:
El relativismo no puede ser contradictorio porque no afirma ni niega nada. La expresión de una actitud moral consiste en valorar la diversidad.
Last year, Hever Inc. had sales of $500,000, based on a unit selling price of $250. The variable cost per unit was $175, and fixed costs were $75,000. The maximum sales within Hever Inc.'s relevant range are 2,500 units. Hever Inc. is considering a proposal to spend an additional $33,750 on billboard advertising during the current year in an attempt to increase sales and utilize unused capacity. Required: 1. Construct a cost-volume-profit chart on your own paper, indicating the break-even sales for last year. Break-even sales (dollars) Break-even sales (units) 2. Using the cost-volume-profit chart prepared in part (1), determine (a) the income from operations for last year and (b) the maximum income from operations that could have been realized during the year. Income from operations Maximum income from operations 3. Construct a cost-volume-profit chart (on your own paper) indicating the break-even sales for the current year, assuming that a noncancelable contract is signed for the additional billboard advertising. No changes are expected in the unit selling price or other costs. Dollars Units
Answer:
1. Break-even sales (dollars) $ 250,000
Break-even sales (units) 1000
2. Income from operations $ 75,000
Maximum income from operations $ 112,500
3. Break-even sales (dollars) $ 362,500
Break-even sales (units) 1450
4. Income from operations at 2,000 units $41,250
Maximum income from operations $ 78,750
Explanation:
1. Calculation to Construct a cost-volume-profit chart , indicating the break-even sales for last year.
First step is to calculate the Contribution margin using this formula
Contribution margin = unit selling price - variable costper unit
Let plug in the formula
Contribution margin =250-175
Contribution margin = 75
Second step is to calculate the Contribution margin Ratio using this formula
Contribution margin Ratio = Contribution margin /unit selling price
Let plug in the formula
Contribution margin Ratio = 75/250
Contribution margin Ratio = 30%
Now let calculate the Break-even sales (dollars) using this formula
Break-even sales (dollars) = fixed costs /Contribution margin Ratio
Let plug in the formula
Break-even sales (dollars) = 75,000/30%
Break-even sales (dollars) = $250,000
Therefore Break-even sales (dollars) is $250,000
Calculation for Break-even sales (units) using this formula
Break-even sales (units) = fixed costs /Contribution margin
Let plug in the formula
Break-even sales (units) = 75,000/75
Break-even sales (units) = 1000
Therefore Break-even sales (units) is 1000
2a. Calculation to determine the income from operations for last year Using the cost-volume-profit chart prepared in part (1)
First step is to calculate the No of Unit sold using this formula
No of Unit sold = Sale /Sale Price
Let plug in the formula
No of Unit sold = 500000/250
No of Unit sold= 2000
Now let calculate the Income from operations for last year Using this formula
Income from operations for last year = Contribution margin*No of Unit sold - Fixed cost
Let plug in the formula
Income from operations for last year = 75*2000 - 75000
Income from operations for last year = $ 75,000
Therefore Income from operations for last year is $75,000
2b. Calculation to determine the maximum income from operations that could have been realized during the year Using the cost-volume-profit chart prepared in part (1)
Using this formula
Maximum income from operations = Contribution margin*No of Maximum Unit can be sold - Fixed cost
Let plug in the formula
Maximum income from operations = 75*2500 - 75000
Maximum income from operations = $ 112,500
Therefore Maximum income from operations is $ 112,500
3. Calculation to Construct a cost-volume-profit chart indicating the break-even sales for the current year
First step is to calculate the Contribution margin using this formula
Contribution margin = unit selling price - variable costper unit
Let plug in the formula
Contribution margin =250-175
Contribution margin = 75
Second step is to calculate the Contribution margin Ratio using this formula
Contribution margin Ratio = Contribution margin /unit selling price
Let plug in the formula
Contribution margin Ratio = 75/250
Contribution margin Ratio = 30%
Third step is to calculate the Total fixed costs
Total fixed costs = 75,000+33,750
Total fixed costs = $108,750
Now let calculate the Break-even sales (dollars) using this formula
Break-even sales (dollars) = Fixed costs /Contribution margin Ratio
Let plug in the formula
Break-even sales (dollars) = 108,750/30%
Break-even sales (dollars) =$362,500
Therefore the Break-even sales (dollars) is $362,500
Calculation for the Break-even sales (units) using this formula
Let plug in the formula
Break-even sales (units) = Fixed costs /Contribution margin
Break-even sales (units) = 108,750/75
Break-even sales (units) = 1450
Therefore the Break-even sales (units) is 1450
4a. Calculation to determine (a) the income from operations if sales total 2,000 units Using the cost-volume-profit chart prepared in part (3)
First step is to calculate the No of Unit sold Using this formula
No of Unit sold = Sale /Sale Price
Let plug in the formula
No of Unit sold = 500,000/250
No of Unit sold 2000
Now let calculate the Income from operations for last year using this formula
Income from operations for last year = Contribution margin*No of Unit sold - Fixed cost
Let plug in the formula
Income from operations for last year = 75*2000 - 108,750
Income from operations for last year = $ 41,250
Therefore Income from operations for last year is $41,250
4b. Calculation to determine (b) the maximum income from operations that could be realized during the year Using the cost-volume-profit chart prepared in part (3)
Using this formula
Maximum income from operations = Contribution margin*No of Maximum Unit can be sold - Fixed cost
Let plug in the formula
Maximum income from operations = 75*2500 -108,750
Maximum income from operations = $ 78,750
Therefore Maximum income from operations is $ 78,750
The break-even sales are the point where the total revenue is equal to total costs. The break-even sales for the current period after the calculation is $$362,500.
What do you mean by Break-even sales?Break-even sales are the amount of revenue in which the business gains zero profit. This sale price includes exactly the core fixed costs of the business, as well as all the variable costs associated with the sale.
As per the information available:
1. We will construct a cost-volume-profit chart, indicating the break-even sales for last year. The first step is to calculate the Contribution margin using this formula:
[tex]\rm\,Contribution \;margin = Unit \;Selling \; Price - Variable \; Cost \;Per \;Unit[/tex]
[tex]\rm\,Contribution\; Margin =250-175\\\\Contribution \;margin = \$75[/tex]
Next, we have to calculate the contribution margin ratio:
[tex]\rm\,Contribution \; Margin \; Ratio = \dfrac{Contribution \;Margin \;}{Unit \;Selling \;Price}\\\\[/tex]
[tex]\rm\,Contribution \;Margin\; Ratio = \dfrac{75}{250}\\\\Contribution \;Margin\; Ratio = 30\%[/tex]
Calculation of the Break-even sales (dollars) using this formula:
[tex]\rm\,Break- \;Even \;Sales \;(dollars) = \dfrac{\; Fixed \;Costs }{Contribution \;Margin \; Ratio \;}[/tex]
[tex]\rm\,Break- \;even \;sales (dollars) = \dfrac{75,000}{30\%}\\\\Break- \;even \; sales \; (dollars) = \$250,000[/tex]
Thus Break-even sales are $250,000
The calculation for Break-even sales (units) using this formula:
[tex]\rm\,Break-\,even \,sales \,(units) =\dfrac{ Fixed\, Costs}{Contribution\, margin}[/tex]
[tex]\rm\,Break-even \;Sales (units) = \dfrac{75,000}{75}\\\\Break \;-even \;Sales \;(units) = 1000[/tex]
Similarly, we can apply the same formula of the above calculation for number 3. that is to calculate the break-even sales for the current year which is equal to Break-even sales (dollars) is $362,500 and Break-even sales (units) is 1450.
2. Calculation to determine the income from operations for last year Using the cost-volume-profit chart prepared in part (1):
The number of units sold will be equal to sale divided by selling price per unit:
[tex]\dfrac{\$500,000}{\$250} = 2,000\rm\,Units[/tex]
[tex]\rm\,Income \;from\; operations\; for \;last \;year = Contribution\; margin\times No \;of \;Unit\; sold - \;Fixed\; cost[/tex]
[tex]\rm\,Income \;from\; operations \;for \;last \;year = 75\times2000 - 75000\\\\Income\; from \;operations \;for \;last \;year = \$75,000[/tex]
Similarly, By applying the same formula as above, Income from operations for the current period is equal to $112,500.
Hence, break-even sales for the last year and the current period are calculated where the break-even sales for the last year are equal to $250,000 and for the current period is equal to $362,500.
To learn more about break-even sales, refer to the link:
https://brainly.com/question/9212451
Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labor) and one indirect-cost category (manufacturing overhead). The following information is obtained for:_____.
• Total manufacturing costs, $8,450,000 • Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs) • Work-in-process inventory on January 1, 2017, $390,000 • Cost of finished goods manufactured, $8,020,000
Requirements:
1. Use information in the first two bullet points to calculate (a) direct manufacturing labor costs in and (b) cost of direct materials used in .
2. Calculate the ending work-in-process inventory on December 31, 2011.
Answer:
Results are below.
Explanation:
Giving the following information:
Total manufacturing costs, $8,450,000
Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs)
Work-in-process inventory on January 1, 2017, $390,000
Cost of finished goods manufactured, $8,020,000
First, we need to calculate the direct material and direct labor:
Direct labor= Manufacturing overhead allocated/2.5
Direct labor= 3,375,000 / 2.5
Direct labor= $1,350,000
Total manufacturing costs= Direct material + direct labor + allocated overhead
8,450,000= Direct material + 1,350,000 + 3,375,000
Direct material= $3,725,000
Finally, the ending work-in-process:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
8,020,000= 390,000 + 8,450,000 - Ending WIP
Ending WIP= $820,000
what is the role of marketing?
Exotic Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows: Engine parts $380,000 Shop direct labor 1,872,000 Shop and repair equipment depreciation 62,500 Shop supervisor salaries 240,000 Shop property taxes 36,940 Shop supplies 10,000 Advertising expense 28,000 Administrative office salaries 150,000 Administrative office depreciation expense 8,000 Total costs and expenses $2,787,440 The average shop direct labor rate is $37.50 per hour. Determine the predetermined shop overhead rate per direct labor hour. $fill in the blank 1 per direct labor hour
Answer:
$7 per direct labor hour
Explanation:
Given the above information ,
Overhead cost = Shop and repair equipment and depreciation + Shop supervisor salaries + shop property taxes + shop supplies
Overhead cost = $62,500 + $240,000 + $36,940 + $10,000 = $349,440
Number of direct labor hours = 1,872,000/$37.5 = 49,920
Predetermined overhead rate = Overhead cost/Direct labor hours
Predetermined overhead rate
= $349,440/49,920
= $7 per direct labor hour
Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $42,100 for Division A. Division B had a contribution margin ratio of 35% and its sales were $220,000. Net operating income for the company was $34,200 and traceable fixed expenses were $50,100. Corbel Corporation's common fixed expenses were:
Answer:
Common fixed costs= $34,800
Explanation:
First, we need to calculate the contribution margin for Division B:
Contribution margin Division B= slaes*contribution margin ratio
Contribution margin Division B= 220,000*0.35
Contribution margin Division B= $77,000
Now, the segmented margin for both Divisions:
Segmented margin= (42,100 + 77,000) - 50,100
Segmented margin= $69,000
Finally, the common fixed costs:
Common fixed costs= segmented margin - net income
Common fixed costs= 69,000 - 34,200
Common fixed costs= $34,800
A large country can gain from imposing a tariff on the import of a good if: Group of answer choices the part of the tariff paid by the foreign exporters is greater than the losses arising from the production and consumption effects of the tariff in the domestic market the tariff is high enough that the country becomes an exporter of the product. the tariff drives the quantity imported to zero. the tariff revenue collected by the domestic government is less than the losses caused by the production and consumption effects of the tariff.
Answer:
part of the tariff paid by the foreign exporters is greater than the losses arising from the production and consumption effects of the tariff in the domestic market
Explanation:
Tariff is a form of tax levied on imported goods. Tariffs increases the price of import. This would discourage foreign exporters because there would be less demand for their good.
Tariffs would reduce the consumption of foreign goods and this would lead to negative welfare effect on consumers. This negative welfare effect can be mitigated if the tariff paid is greater than the welfare losses
The following information applies to the questions displayed below.
On October 29, 2014, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The razors have a 90-day warranty that requires the company to replace any nonworking razor. When a razor is returned, the company discards it and mails a new one from Merchandise Inventory to the customer. The company’s cost per new razor is $20 and its retail selling price is $75 in both 2014 and 2015. The manufacturer has advised the company to expect warranty costs to equal 8% of dollar sales. The following transactions and events occurred.
2014
Nov. 11 Sold 105 razors for $7,875 cash.
30 Recognized warranty expense related to November sales with an adjusting
entry.
Dec. 9 Replaced 15 razors that were returned under the warranty.
16 Sold 220 razors for $16,500 cash.
29 Replaced 30 razors that were returned under the warranty.
31 Recognized warranty expense related to December sales with an adjusting
entry.
2015
Jan. 5 Sold 150 razors for $11,250 cash.
17 Replaced 50 razors that were returned under the warranty.
31 Recognized warranty expense related to January sales with an adjusting
entry.
Required
1. Prepare journal entries to record these transactions and adjustments.
2. How much warranty expense is reported for November and for December?
3. How much warranty expense is reported for January?
4. What is the balance of the Estimated Warranty Liability account as of December 31?
5. What is the balance of the Estimated Warranty Liability account as of January 31?
Answer:
Lobo Co.
Journal Entries:
Nov. 11 Debit Cash $7,875
Credit Sales Revenue $7,875
To record the sale of 105 razors for cash.
Nov. 11 Debit Cost of Goods Sold $2,100
Credit Inventory $2,100
To record the cost of goods sold for 105 razors at $20 each.
Dec. 16: Debit Cash $16,500
Credit Sales Revenue $16,500
To record the sale of 220 razors for cash.
Debit Cost of Goods Sold $4,400
Credit Inventory $4,400
To record the cost of goods sold.
Jan. 5: Debit Cash $11,250
Credit Sales Revenue $11,250
To record the sale of 150 razors for cash.
Debit Cost of Goods Sold $3,000
Credit Inventory $3,000
To record the cost of goods sold.
Adjusting Journal Entries:
Nov. 30: Debit Warranty Expense $630
Credit Warranty Liability $630
To record the warranty expense for November sales.
Dec. 9: Debit Warranty Liability $300
Credit Inventory $300
To replace 15 razors.
Dec. 16: Debit Warranty Expense $1,672
Credit Warranty Liability $1,672
To record the warranty expense for December sales.
Dec. 29: Debit Warranty Liability $600
Credit Inventory $600
To replace 30 razors.
Dec. 31: Debit Income Summary $2,302
Credit Warranty Expense $2,302
To recognize the warranty expense for the period.
Jan. 5: Debit Warranty Expense $900
Credit Warranty Liability $900
To record warranty expense for January sales.
Jan. 17: Debit Warranty Liability $1,000
Credit Inventory $1,000
To record the replacement of 50 razors.
Jan. 31: Debit Warranty Expense $100
Credit Warranty Liability $100
To recognize warranty expense for January sales.
2. The Warranty Expense for November is $630 and for December is $1,602.
3. The Warranty Expense for January is: $1,000
4. The balance of the Estimated Warranty Liability account as of December 31 is:
= $1,402
5. The balance of the Estimated Warranty Liability account as of January 31 is:
= $1,302
Explanation:
a) Data and Calculations:
Cost per new razor = $20
Retail selling price = $75
Expected warranty costs = 8% of dollar sales
b) Estimated Warranty Liability Account:
Nov. 30: Credit Warranty Liability $630
Dec. 9: Debit Warranty Liability ($300)
Dec. 16: Credit Warranty Liability $1,672
Dec. 29: Debit Warranty Liability ($600)
Dec. 31: Balance $1,402
Jan. 5: Credit Warranty Liability $900
Jan. 17: Debit Warranty Liability ($1,000)
Jan. 31 Balance $1,302
Warranty Expense Account:
Nov. 30: Debit Warranty Expense $630
Dec. 16: Debit Warranty Expense $1,672
Dec. 31: Debit Income Summary $2,302
Jan. 5: Debit Warranty Expense $900
Jan. 31: Debit Warranty Expense $100
Jan. 31: Debit Income Summary $1,000
A small business company is considering updating the current production line. There are two plans. For plan A, the fixed cost will be $40,000 and the variable cost will be $27 per unit after the update. For plan B, the fixed costs will be $54,000 and the variable cost will be $26 per unit after the update. Please answer the following questions: (a) Suppose the selling price is $35, what is the break-even volume for each plan
Answer:
Results are below.
Explanation:
Giving the following information:
Plan A:
Fixed costs= $40,000
Unitary varaible cost= $27
Plan B:
Fixed costs= $54,000
Unitary varaible cost= $26
Selling price per unit= $35
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Plan A:
Break-even point in units= 40,000 / (35 - 27)
Break-even point in units= 5,000
Plan B:
Break-even point in units= 54,000 / (35 - 26)
Break-even point in units= 6,000
1. My boss asks me politely to do things, gives me reasons why, and invites my suggestions. 2. I am encouraged to learn skills outside of my immediate area of responsibility. 3. I am left to work without interference from my boss, but help is available if I want it. 4. I am given credit and praise when I do good work or put in the extra effort. 5. People leaving the company are given an 'exit interview' to hear their views on the organization. 6. I am incentivized to work hard and well. 7. If I want extra responsibility my boss will find a way to give it to me. 8. If I want extra training my boss will help me find how to get it or will arrange it. 9. I call my boss and my boss's boss by their first names. 10. My boss is available for me to discuss my concerns or worries or suggestions. 11. I know what the company's aims and targets are. 12. I am told how the company is performing on a regular basis. 13. I am given an opportunity to solve problems connected with my work. 14. My boss tells me what is happening in the organization. 15. I have regular meetings with my boss to discuss how I can improve and develop.
Question Completion:
Given the above scenario, which management theory is dominantly in operation?
Theory X
Theory Y
Answer:
The dominant management theory in this case is:
Theory Y.
Explanation:
Theory X: This theory presents a process-driven work situation, whereby workers follow rules that they did not contribute in making. There is a lack of individual initiative and motivation because the assumption is that the workers dislike their work and must be coerced, directed, and controlled in order to achieve organizational goals.
Theory Y: With this theory, workers are treated as the most valuable assets of the company. Employees are self-motivated and generally, there is a high sense of value placed on human esteem and self-actualization by the workers and managers. The workers do not dislike their work, and they work to achieve goal congruence between organizational and individual goals.
Use the following information to answer the next question. Total Asset = $40 million Depreciation = $1.0 million. Basic earning power (BEP) ratio is 20% Lease payments = 0.6 million Times-interest-earned (TIE) ratio is 6.55 Principal payments = 4 million What is the company's EBIT? The company's interest expense? Select one: a. $8.0 million; $1.22 million b. $7.5 million; $0.75 million c. $8.0 million; $0.62 million d. $1.35 million; $0.37 million e. $3.33 million; $0.83 million
Answer:
a. $8.0 million; $1.22 million
Explanation:
The computation is shown below:
As we know that
Basic earnings power = EBIT ÷ total assets
So,
EBIT = Basic earnings power × total assets
= 0.20 × 40 million
= $8 million
Now
Times interest earned = EBIT ÷ interest expense
So,
Interest expense = EBIT ÷ Times interest earned
= $8 million ÷ 6.55
= $1.22 million
University Printing Services offer a program of reproducing class notes for participating professors teaching large classes with an enrollment uniformly distributed between 200 and 300 students. Professor Pulat has subscribed to this program. A copy of her notes costs $8 to produce and it sells for $12. The students purchase their books at the start of the semester. Any unsold notes are shredded for recycling as she makes changes to her notes every semester. In the meantime, when all copies are sold, no additional copies are printed. If the University Printing Services wants to maximize its revenues, how many copies should it print
Answer:
233 copies
Explanation:
Cost of shortage (Cs)= Revenue per unit - Cost per unit
Cost of shortage (Cs) = $12 - $8
Cost of shortage (Cs) = $4
Cost of excess (Ce) = Original cost per unit - Salvage value per unit
Cost of excess (Ce) = $8 - $0
Cost of excess (Ce) = $8
Service Level (SL) = Cs/(Cs+Ce)
Service Level (SL) = $4 / ($4+$8)
Service Level (SL) = $4/$12
Service Level (SL) = 0.33
Optimum Level = Minimum student + SL*(Maximum student - Minimum student)
Optimum Level = 200 + 0.33*(300 - 200)
Optimum Level = 200 + 33
Optimum Level = 233 copies
Suppose two workers could be hired, F and G, and they take the same time to complete tasks as the current five workers. F and G can be assigned to work on the same pair of tasks as one of the current workers. For example, F could be assigned tasks T1 and T2 (just like worker A) while G is assigned T5 and T6 (just like worker C). They cannot be assigned tasks that are currently assigned to two workers. For example, F cannot be assigned to tasks T2 and T3 (because they are currently being done by workers A and B). What is the capacity of this process with workers F and G included ( toothbrushes per minute)?
Answer:
Explanation:
The missing table is attached below.
Recall that:
The capacity of the interaction is controlled by the capacity of the bottleneck workers.
The extra resources accessible ought to be added to workers with the most noteworthy preparing times.
For this situation, they are Worker A and Worker E.
Summing up of resources halves the handling times for Worker A and E.
SO;
Worker Old time(sec) New time (sec) Capacity
A 65 32.5 1.85
B 35 35 1.71
C 25 25 2.40
D 30 30 2.00
E 60 30 2.00
Along these lines, the new capacity of the framework is characterized by new bottleneck B.
So the capacity of the cycle is 60/35 = 1.71 toothbrush per each minute
Mazzeo Co. provided the following information on selected transactions during 2017: Purchase of land by issuing bonds $650,000 Proceeds from issuing stock 520,000 Purchases of inventory 950,000 Purchases of treasury stock 350,000 Loans made to affiliated corporations 175,000 Dividends paid to preferred stockholders 100,000 Proceeds from issuing preferred stock 210,000 Proceeds from sale of land 325,000 The net cash provided (used) by investing activities during 2017 is
Answer:
$150,000
Explanation:
Calculation to determine what The net cash provided (used) by investing activities during 2017 is
Using this formula
The net cash provided (used) by investing activities during 2017 =Proceeds from sale of land -Loans made to affiliated corporations,
Let plug in the formula
The net cash provided (used) by investing activities during 2017=$325,000-$175,000
The net cash provided (used) by investing activities during 2017= $150,000
Therefore The net cash provided (used) by investing activities during 2017 is $150,000
Read the overview below and complete the activities that follow.
Marketers have access to a wide range of online research tools that can help enable the collection of data related to a specific market research effort. This activity is important because marketing managers must be able to understand how to leverage different types of online research tools in order to efficiently and effectively address the research problem as it has been defined. The goal of this exercise is to demonstrate your understanding of each of the different categories of online research tools that can be used in the context of a specific research context. Online research tools fall into three categories: databases, focus groups, and sampling. Each of these three categories offers unique opportunities to expand the reach and usefulness of market research. Hover over each individual item to read about the specific research problem faced by a given marketing manager, as well as any other relevant considerations provided. Then, drag the item to the online research tool category that would best serve the related marketing manager's needs.
1. Sarah
2. Diana
3. John
A. Online (Cloud) Databases
B. Online Focus Groups
C. Online Sampling
Answer:
1. Sarah - Online Focus Groups
2. Diana - Online Sampling
3. John - Online (Cloud) Databases
Explanation:
Marketing research is an important aspect for any business. The type of research tools used for any marketing strategy depends on the multiple factors like, type of product, target market and customer need. In the given scenario Sarah should go for Online focus group research, Diana should go for Online sampling and John should go for Online Cloud Databases.
Suppose that you have the following information for an economy:______.
Marginal propensity to consume - MPC 0.80 Autonomous consumption - A $500 Planned investment - PI $600 Net exports - NX -$400 Government spending - G $300
You will need this information for the questions that follow.
Part 1. When real GDP is equal to $4,500, aggregate expenditure is equal to $ _____.
Part 2. When real GDP is equal to $5,000, aggregate expenditure is equal to $ _____.
Part 3. When real GDP is equal to $5,500, aggregate expenditure is equal to $ _____.
Answer:
Part 1. When real GDP is equal to $4,500, aggregate expenditure is equal to $4,600.
Part 2. When real GDP is equal to $5,000, aggregate expenditure is equal to $5,000.
Part 3. When real GDP is equal to $5,500, aggregate expenditure is equal to $5,400.
Explanation:
The aggregate expenditure (AE) can be calculated using the following formula:
AE = (A + (MPC * Y)) + PI + G + NX ………………. (1)
Where;
AE = aggregate expenditure = ?
A = Autonomous consumption = $500
MPC = Marginal propensity to consume = 0.80
Y = Real GDP
PI = Planned investment = $600
G = Government spending = $300
NX = Net exports = -$400
Based on the above, we can now proceed as follows:
Part 1. When real GDP is equal to $4,500, aggregate expenditure is equal to $ _____.
This implies that:
Y = Real GDP = $4,500
Substituting this and other values given above into equation (1), we have:
AE = ($500 + (0.80 * $4,500)) + $600 + $300 - $400 = $4,600
Therefore, when real GDP is equal to $4,500, aggregate expenditure is equal to $4,600.
Part 2. When real GDP is equal to $5,000, aggregate expenditure is equal to $ _____.
This implies that:
Y = Real GDP = $5,000
Substituting this and other values given above into equation (1), we have:
AE = ($500 + (0.80 * $5,000)) + $600 + $300 - $400 = $5,000
Therefore, when real GDP is equal to $5,000, aggregate expenditure is equal to $5,000.
Part 3. When real GDP is equal to $5,500, aggregate expenditure is equal to $ _____.
This implies that:
Y = Real GDP = $5,500
Substituting this and other values given above into equation (1), we have:
AE = ($500 + (0.80 * $5,500)) + $600 + $300 - $400 = $5,400
Therefore, when real GDP is equal to $5,500, aggregate expenditure is equal to $5,400.
Which of the following will not cause the production possibility frontier to shift? Group of answer choices the introduction of "fiber optic" technology a land reclamation program an increase in the working population a reduction in unemployment an explosion destroying a chemical plant
Answer:
an increase in the working population
Explanation:
The Production possibilities frontier (PPF) is a curve that shows the various combination of two goods a company can produce when all its resources are fully utilised.
The PPC is concave to the origin. This means that as more quantities of a product is produced, the fewer resources it has available to produce another good. As a result, less of the other product would be produced. So, the opportunity cost of producing a good increase as more and more of that good is produced.
The PPF can shift either inward or outward.
An outward shift is associated with an increase in output while an inward shift is associated with a reduction in output.
Factors that cause the PPF to shift
1. changes in technology. technological progress leads to outward shift of the PPF. introduction of "fiber optic" technology would shift the PPF outward.
2. changes in available resources. a land reclamation program would increase the land available for production and this would increase output. While an explosion destroying a chemical plant would reduce output and lead to an inward shift of the PPF
3. changes in the labour force. A decrease in unemployment would increase output and shift the the PPF outward
Working population is the number of people between 15-59.
Pls help me with the graph , the choices are below
the answer to your question is graph 1