Answer:
I should be LEAST concerned about the tracking record of the general partner
Explanation:
Based on the information given what i should be LEAST concerned about should be the tracking record of the general partner reason been that the agent has been assigned to bring in customers to the general partner in which the agent will pay a 10 percent fee of the amount that was invested and secondly the agent been given brochure in which he has been assigned to distribute to the customers by the general partner, Hence this means that I should be basically concern about the violation of Regulation D, the security of the investment and the information that was been disclose in the brochure that was given to the agent to give to the customers.
Kroger, a grocery store chain, sells thousands of products from hundreds of
different producers that are shipped through a variety of shipping companies
and stored at various warehouses facilities. The coordinated efforts with each
channel partner at each touch point takes efficiency and communication. In
order for the process to run smoothly, which three functions do channel
partners need to perform to efficiently flow products and titles to the
consumer to get payments back to producers?
O transactional, logistical, and facilitating functions
o facilitating, commercial, and institutional functions
logistical, commercial, and transactional functions
Answer:
transactional, logistical, and facilitating functions
Explanation:
Select TWO Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis for the building and the related land is $450,000. On March 12 of the current year, state authorities notify Mitchell that his property is going to be condemned so that the highway can be widened. On June 20, Mitchell’s property is officially condemned, and he receives an award of $625,000. Because Mitchell’s business was successful in the past, he would like to reopen the restaurant in a new location. a. What is the earliest date Mitchell can acquire a new restaurant and qualify for § 1033 postponement? b. On June 30, Mitchell purchases land and a building for $610,000. Assuming that he elects the maximum postponement amount, what is his recognized gain? c. What is Mitchell’s adjusted basis for the new land and building? d. If he does not elect § 1033, what are Mitchell’s recognized gain and adjusted basis? e. Suppose he invests the $625,000 condemnation proceeds in the stock market on June 30. What is Mitchell’s recognized gain?
Answer:
a. The earliest date that Mitchell can acquire a new restaurant and qualify for § 1033 postponement is March 12
b. On June 30
Mitchell purchases land and a building for $610,000
Recognized gain = Condemnation proceed - Adjusted basis
= $625,000 - $450,000
= $175,000
Mitchell's recognized gain is limited to $625,000 - $610,000 = $15,000
Thus, Mitchell's recognized gain is $15,000
c. Adjusted basis for the new land and building = Cost of land and building - Postponed gain = $610,000 - $160,000 = $150,000. Thus, adjusted basis for the new land and building purchase by Mitchell is $450,000
d. Realized gain = $625,000 - $450,000 = $175,000. Thus, the unrealized gain by not option for section § loss = $175,000 and the adjusted basis for new land and building is $610,000
e. Under the section § 1033 , as no replacement property to purchased. Mitchell's recognized gain = $175,000
The fiscal year ends December 31 for Lake Hamilton Development. To provide funding for its Moonlight Bay project, LHD issued 7% bonds with a face amount of $570,000 on November 1, 2016. The bonds sold for $513,591, a price to yield the market rate of 8%. The bonds mature October 31, 2036 (20 years). Interest is paid semiannually on April 30 and October 31.Required:1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2016?Interest Expense $6,8482. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2016?Bonds Payable $513,789Interest Payable 3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2017?Interest Expense 4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2017?Bonds Payable Interest Payable
Answer:
1. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2016?
Interest expense 6,847.882. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2016?
carrying value of bonds payable = $513,591 + $197.88 = $513,788.88
interest payable $6,650
3. What amount of interest expense related to the bonds will LHD report in its income statement for the year ending December 31, 2017?
total interest expense = $13,701.04 + $20,567.60 + $6,864.10 = $41,132.74
4. What amount(s) related to the bonds will LHD report in its balance sheet at December 31, 2017?
carrying value of bonds payable = $515,021.62
interest payable $6,650
Explanation:
the journal entry to record the purchase:
November 1, 2016, bonds issued at a discount
Dr Cash 513,591
Dr Discount on bonds payable 56,409
Cr Bonds payable 570,000
journal entry to record accrued interests:
December 31, 2016
Dr Interest expense 6,847.88
Cr Interest payable 6,650
Cr Discount on bonds payable 197.88
bond discount amortization (December 31, 2016) = (513,591 x 8% x 2/12) - (570,000 x 7% x 2/12) = 6,847.88 - 6,650 = 197.88
journal entry to record first coupon payment:
April 30, 2017
Dr Interest expense 13,701.04
Dr Interest payable 6,650
Cr Cash 19,950
Cr Discount on bonds payable 401.04
bond discount amortization (December 31, 2016) = ($513,788.88 x 8% x 4/12) - (570,000 x 7% x 4/12) = 13,701.04 - 13,300 = 401.04
journal entry to record second coupon payment:
October 31, 2017
Dr Interest expense 20,567.60
Cr Cash 19,950
Cr Discount on bonds payable 617.60
bond discount amortization (December 31, 2016) = ($514,189.92 x 4%) - (570,000 x 3.5%) = 20,567.60 - 19,950 = 617.60
journal entry to record accrued interests:
December 31, 2017
Dr Interest expense 6,864.10
Cr Interest payable 6,650
Cr Discount on bonds payable 214.10
bond discount amortization (December 31, 2016) = (514,807.52 x 8% x 2/12) - (570,000 x 7% x 2/12) = 6,864.10 - 6,650 = 214.10
During March, the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of March and 110,000 that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 50% complete with respect to labor. At the end of March, 39,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. The production department incurred direct labor cost of $581,000 and its beginning inventory included labor cost of $56,400. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.
Answer:
Direct Labor Equivalent unit cost : $5,415463
Explanation:
[tex]\left[\begin{array}{ccccc}\\ &$Units to be assigned costs:&&Equivalent Units&\\&&$Whole Units&Materials&Conversion\\&$Beginning&35000&35000&17500\\&$Started and completed&71000&71000&71000\\&$transferred&106000&106000&106000\\&$ending&39000&39000&11700\\&$Total units to be assigned costs&145000&145000&117700\\\end{array}\right][/tex]
Transferred units:
beginning + started - ending = transferred
35,000 + 71,000 - 39,000 = 71,000
Labor cost: 581,000 + 56,400 = 637,400
equivalent units for conversion: 117,700
(trasnferrred + percentage of completion ending WIP)
Equivalent unit cost:
637,400 / 117,700 = 5,415463
Bostonian Company provided the following information related to its defined benefit pension plan for 2017: PBO on 1/1 $ 2,500,000 Fair value of plan assets on 1/1 2,000,000 Service cost 120,000 Actual return on plan assets 320,000 Payments made to retirees on 12/31 100,000 Amortization of prior service cost 40,000 Recognized actuarial losses 50,000 Contributions made to plan at 12/31 80,000 Interest rate for discounting pension obligations 6 % Expected return on plan assets 8 % Required: What amount of pension expense should Bostonian report for 2017
Answer:
$200,000
Explanation:
The computation of the amount of pension expense is shown below:
= Service cost + interest cost - expected return + amortization + actuarial gain
= $120,000 + $2,500,000 × 6% - $2,000,000 × 8% + $40,000 + $50,000
= $120,000 + $150,000 - $160,000 + $40,000 + $50,000
= $200,000
Hence, the amount of pension expense is $200,000 and the same is to be considered
Rhonda Corporation's relevant range of activity is 3,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.40 Direct labor $ 3.55 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 4.05 Fixed selling expense $ 0.60 Fixed administrative expense $ 0.40 Sales commissions $ 1.00 Variable administrative expense $ 0.40 If 5,000 units are produced and sold, the fixed manufacturing overhead cost per unit is closest to:
Answer:
Unitary fixed overhead= $3.24
Explanation:
Giving the following information:
When it produces and sells 4,000 units, its average costs per unit are as follows:
Fixed manufacturing overhead $ 4.05
First, we need to calculate the total fixed overhead:
Total fixed overhead= 4.05*4,000= $16,200
Now, for 5,000 units:
Unitary fixed overhead= 16,200/5,000
Unitary fixed overhead= $3.24
Ferrar Corporation has two major business segments-Consumer and Commercial. Data for the segment and for the company for March appear below: In addition, common fixed expenses totaled $210,000 and were allocated as follows: $122,000 to the Consumer business segment and $88,000 to the Commercial business segment The contribution margin of the Commercial business segment is: Select one: a. $137,000 b. $184,000 c. $62,000 d. $423,000
Answer:
Contribution margin of the Commercial business segment = $137,000
Explanation:
Given:
Fixed expenses = $210,000
Consumer business segment = $122,000
Commercial business segment = $88,000
Note:
Missing input
Sales revenue of Commercial business segment = $280,000
Variable expenses of Commercial business segment = $143,000
Find:
Contribution margin of the Commercial business segment
Computation:
Contribution margin = Sales revenue - Variable expenses
Contribution margin of the Commercial business segment = $280,000 - $143,000
Contribution margin of the Commercial business segment = $137,000
Identify the accounting concept that describes each situation below. Do not use any concept more than once. a. Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) choose the accounting concept b. Indicates that personal and business recordkeeping should be separately maintained. choose the accounting concept c. Ensures that all relevant financial information is reported. choose the accounting concept d. Assumes that the dollar is the "measuring stick" used to report on financial performance. choose the accounting concept e. Requires that accounting standards be followed for all items of significant size. choose the accounting concept f. Separates financial information into time periods for reporting purposes. choose the accounting concept g. Requires recognition of expenses in the same period as related revenues. choose the accounting concept h. Indicates that fair value changes subsequent to purchase are not recorded in the accounts.
Answer:
a. Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) - Going concern assumption
The going concern assumption, as the name implies, assumes that the firm will continue to operate in the foreseable future, and that it will be able to meet its financial obligations.
b. Indicates that personal and business recordkeeping should be separately maintained - Economic entity assumption
The economic entity assumption assumes that the firm is a separate entity from the owner, even if legally it is not so. For example, in accounting, a sole proprietorship is a separate entity even if under legal terms it is not so.
c. Ensures that all relevant financial information is reported - Full disclosure principle
This principle establishes that all financial information that may be relevant for the stockholders of the firm should be disclosed.
d. Assumes that the dollar is the "measuring stick" used to report on financial performance - Monetary unit assumption
This principle establishes that the value of all financial information should be expressed in monetary terms (for example, the dollar).
e. Requires that accounting standards be followed for all items of significant size - Materiality
The principle of materiality establishes that all financial information related to relevant items or transactions should be disclosed.
When the item or transaction is not considered to be relevant, then, it does not have to be disclosed.
For example, for a large multinational corporation, the purchase of a few pencils is not relevant, and does not have to be disclosed under the principle of materiality.
f. Separates financial information into time periods for reporting purposes - Periodicity
The periodicity principle relates to the fact that financial information is organized in specific periods of time, and these periods are carried out over time. These periods can go from daily to yearly.
g. Requires recognition of expenses in the same period as related revenues. choose the accounting concept - Matching principle
The matching principle establishes that revenues should be recognized when the associated expenses have been spent.
h. Indicates that fair value changes subsequent to purchase are not recorded in the accounts. - Measurement principle
The measurment principle of accounting focuses on past values, not on current values, although current market values may be also recognized.
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations of the segment during 2021 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8 million. The income tax rate is 25%. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $7 million. Prepare the lower porti
Answer:
Net Income = $1,650,000
Explanation:
"The missing question is Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign"
California Micro-tech Corporation
Partial Income Statement
For the year ended December 31, 2021
Income from continuing operation $5,800,000
before Income taxes
- Income tax expenses $1,450,000
($5,800,000 * 25%)
Income from Continuing Operation A $4,350,000
Discontinued Operations
- Loss from operation discontinued $3,600,000
component
Income tax benefit $900,000
($3,600,000 * 25%)
Loss on discontinued operation B - $2,700,000 -$2,700,000
Net Income (A + B) $1,650,000
Use the business transactions below to:
1. Stockholders invest $40,000 in cash in starting a real estate office operating as a corporation.
2. Purchased $500 of supplies on credit.
3. Purchased equipment for $25,000, paying $3,500 in cash and signed a 30-day, $21,500, note payable.
4. Real estate commissions billed to clients amount to $4,000.
5. Paid $700 in cash for the current month's rent.
6. Paid $250 cash on account for office supplies purchased in transaction 2.
7. Received a bill for $800 for advertising for the current month.
8. Paid $2,500 cash for office salaries.
9. Paid $1,200 cash dividends to stockholders.
10. Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.
Answer:
We have to journalize the transactions:
1. Stockholders invest $40,000 in cash in starting a real estate office operating as a corporation.
Account Debit Credit
Cash 40,000
Common Stock 40,000
2. Purchased $500 of supplies on credit.
Account Debit Credit
Supplies 500
Accounts Payable 500
3. Purchased equipment for $25,000, paying $3,500 in cash and signed a 30-day, $21,500, note payable.
Account Debit Credit
Equipment 25,000
Cash 3,500
Accounts Payable 3,500
4. Real estate commissions billed to clients amount to $4,000.
Account Debit Credit
Accounts Receivable 4,000
Service Revenue 4,000
5. Paid $700 in cash for the current month's rent.
Account Debit Credit
Cash 700
Rent Expense 700
6. Paid $250 cash on account for office supplies purchased in transaction 2.
Account Debit Credit
Cash 250
Accounts Payable 250
7. Received a bill for $800 for advertising for the current month.
Account Debit Credit
Advertising Expense 800
Accounts Payable 800
8. Paid $2,500 cash for office salaries.
Account Debit Credit
Cash 2,500
Wages Expense 2,500
9. Paid $1,200 cash dividends to stockholders.
Account Debit Credit
Cash 1,200
Dividends 1,200
10. Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.
Account Debit Credit
Cash 2,000
Accounts Receivable 2,000
Alinger Company estimates that total factory overhead costs will be $132,000 for the year. Direct labor hours are estimated to be 22,000.
A. For Salinger Company, determine the pre-determined factory overhead rate using direct labor hours as the activity base.
B. During May, Salinger Company accumulated 530 hours of direct labor costs on Job 200 and 770 hours on Job 305. Determine the amount of factory overhead applied to Jobs 200 and 305 in May. C. Prepare the journal entry to apply factory overhead to both jobs in May according to the pre-determined overhead rate.
CHART OF ACCOUNTSAlmerinda CompanyGeneral Ledger
ASSETS110 Cash121 Accounts Receivable125 Notes Receivable126 Interest Receivable131 Materials132 Work in Process133 Factory Overhead134 Finished Goods141 Supplies142 Prepaid Insurance143 Prepaid Expenses181 Land191 Factory192 Accumulated Depreciation-FactoryLIABILITIES210 Accounts Payable221 Utilities Payable231 Notes Payable236 Interest Payable241 Lease Payable251 Wages Payable252 Consultant Fees PayableEQUITY311 Common Stock340 Retained Earnings351 Dividends390 Income Summary REVENUE410 Sales610 Interest RevenueEXPENSES510 Cost of Goods Sold520 Wages Expense531 Selling Expenses532 Insurance Expense533 Utilities Expense534 Office Supplies Expense540 Administrative Expenses560 Depreciation Expense-Factory590 Miscellaneous Expense710 Interest EA. For Almerinda Company, determine the predetermined factory overhead rate using direct labor hours as the activity base.
B. During April, Almerinda Company accumulated 20,000 hours of direct labor costs on Job 50 and 24,000 hours on Job 51. Determine the amount of factory overhead applied to Jobs 50 and 51 in April.
C. Prepare the journal entry on Apr.30 to apply factory overhead to both jobs in April according to the pre-determined overhead rate.
Answer:
A. Salinger Company
1. Predetermined factory overhead rate, using direct labor hours:
= $6
2. Factory overhead applied to Jobs 200 and 305:
Job 200 Job 305
Overhead rate $6 $6
Direct labor hours 530 770
Overhead applied $3,180 $4,620
3. Journal Entries:
Date Description Debit Credit
May 31 Job 200 $3,180
Job 305 $4,620
Factory Overhead 134 $7,800
To record the overhead applied to Jobs 200 and 305 respectively.
B. Almerinda Company
Question Completion:
Almerinda Company estimates that total factory overhead costs will be $1,750,000 for the year. Direct labor hours are estimated to be 500,000.
1. Predetermined factory overhead rate, using direct labor hours:
= $3.50
2. Determination of factory overhead applied to Job 50 and Job 51 in April:
Factory overhead applied to Jobs 200 and 305:
Job 50 Job 51
Overhead rate $3.50 $3.50
Direct labor hours 20,000 24,000
Overhead applied $70,000 $84,000
3. Journal Entries:
Date Description Debit Credit
April 30 Job 50 $70,000
Job 51 84,000
Factory Overhead $154,000
To record the overhead applied to Jobs 50 and 51 respectively.
Explanation:
a) Salinger Company
Data and Calculations:
Total factory overhead = $132,000
Direct labor hours (estimate) = 22,000
Predetermined factory overhead rate = Factory overhead divided by direct labor hours
= $132,000/22,000
= $6
b) Almerinda Company
Data and Calculations:
Total factory overhead = $1,750,000
Direct labor hours (estimate) = 500,000
Predetermined factory overhead rate = Factory overhead divided by direct labor hours
= $1,750,000/500,000
= $3.50
To address a rise in inflation, a government may
A. invest in programs like unemployment benefits to help people in
need.
B. reduce the amount of money it puts into circulation.
C. lower interest rates to allow businesses to borrow more money.
D. raise interest rates to allow businesses to borrow more money.
It should be B. I took the quiz.
To address a rise in inflation, a government may reduce the amount of money it puts into circulation.Thus the correct answer is B.
What is inflation?When the prices of goods and services increase during a given period of time which affects the purchasing parity of individuals is known as inflation. This results in an increase in the cost of living in the country as the price rise and gives rise to economic inequality.
To address a rise in inflation, a government may reduce the amount of money it puts into circulation which results in a fall in the prices of goods and services and reduce the inflation rate.
Therefore, option B is appropriate.
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The market value: Group of answer choices of accounts receivable is generally higher than the book value of those receivables. of fixed assets will always exceed the book value of those assets. of an asset is reflected in the balance sheet. of an asset is lowered each year by the amount of depreciation expensed for that asset. of an asset tends to provide a better guide to the actual worth of that asset than does the book value.
Answer:
Option E would be the appropriate response.
Explanation:
Market value seems to be the fair market rate of a commodity and is widely often used the reference to something like the capital structure of the economy. An underlying asset fair value seems to have been a clearer reference to the true valuation of even a commodity than that of the market value, so users apparently can't get the power compared or equality to the market price if someone attempt to sell an investment, otherwise you get the cost is equivalent to the valuation.Some other options aren't tied to something like the valuation of the sector. The last alternative, then, seems to be the right answer.
Number the following in the order of the flow of manufacturing costs for a company.
A. Closing under/overapplied factory overhead to Cost of Goods Sold.
B. Materials purchased.
C. Factory labor used and factory overhead incurred in production.
D. Completed jobs moved to finished goods.
E. Factory overhead applied to jobs according to the predetermined overhead rate.
F. Materials requisitioned to jobs.
G. Selling of finished product.
H. Preparation of financial statements to determine gross profit.
Answer:
B. Materials purchased.
F. Materials requisitioned to jobs.
C. Factory labor used and factory overhead incurred in production.
E. Factory overhead applied to jobs according to the predetermined overhead rate.
D. Completed jobs moved to finished goods.
A. Closing under/overapplied factory overhead to Cost of Goods Sold.
G. Selling of finished product.
H. Preparation of financial statements to determine gross profit.
Explanation:
Manufacturing costs can be defined as the overall costs associated with the acquisition of resources such as materials and the cost of converting these raw materials into finished goods. Manufacturing costs include direct labor costs, direct materials cost and manufacturing overhead costs.
The order of the flow of manufacturing costs for a company in an ascending order is;
1. Materials purchased.
2. Materials requisitioned to jobs.
3. Factory labor used and factory overhead incurred in production.
4. Factory overhead applied to jobs according to the predetermined overhead rate.
5. Completed jobs moved to finished goods.
6. Closing under/overapplied factory overhead to Cost of Goods Sold.
7. Selling of finished product.
8. Preparation of financial statements to determine gross profit.
A Project Charter includes which of the following?
O VOC to CTQ Flow
O Problem Statement
O Goal Statement
O Both B & C
A body of the letter is composed of the:
Answer: Introduction, supporting details, and conclusion.
Answer:
Introduction, supporting details, and conclusion.
Explanation:
Match the following activities to their effect on the general ledger accounts. Drag and drop application.
Allocate overhead costs to jobs Debit Raw Materials Inventory
Pay factory utilities Credit Factory Overhead
Purchase indirect material Debit Factory Overhead
Use indirect materials Debit Work in Process Inventory
Direct labor used Credit Raw Materials Inventory
Answer:
1. Allocate overhead costs to jobs: Credit Factory Overhead.
2. Pay factory utilities: Debit Factory Overhead.
3. Purchase indirect material: Debit Raw Materials Inventory.
4. Use indirect materials: Credit Raw Materials Inventory.
5. Direct labor used: Debit Work in Process Inventory.
Explanation:
1. When you allocate overhead costs to jobs: Credit factory overhead. Factory overhead can be defined as cost incurred in the manufacturing process of finished goods and cannot be linked directly to the goods.
2. When you pay factory utilities: Debit factory overhead. Factory overhead can be defined as cost incurred in the manufacturing process of finished goods and cannot be linked directly to the goods.
3. When you purchase indirect material: Debit raw materials inventory. The raw materials inventory comprises of the overall cost of all resources such as component parts that a business has in stock which haven't been used for production of finished goods or work in process.
4. When you use indirect materials: Credit raw materials inventory. Raw materials inventory comprises of the overall cost of all resources such as component parts that a business has in stock which haven't been used for production of finished goods or work in process.
5. For direct labor used: Debit work in process inventory.
1. Allocate overhead costs to jobs: Credit Factory Overhead.
2. Pay factory utilities: Debit Factory Overhead.
3. Purchase indirect material: Debit Raw Materials Inventory.
4. Use indirect materials: Credit Raw Materials Inventory.
5. Direct labor used: Debit Work in Process Inventory.
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Jeff Kaufmann’s machine shop sells a variety of machines for job shops. A customer wants to purchase a model XPO2 drilling machine from Jeff’s store. The model XPO2 sells for $180,000, but Jeff is out of XPO2s. The customer says he will wait for Jeff to get a model XPO2 in stock. Jeff knows that there is a wholesale market for XPO2s from which he can purchase an XPO2. Jeff can buy an XPO2 today for $150,000, or he can wait a day and buy an XPO2 (if one is available) tomorrow for $125,000. If at least one XPO2 is still available tomorrow, Jeff can wait until the day after tomorrow and buy an XPO2 (if one is still available) for $110,000. There is a 0.40 probability that there will be no model XPO2s available tomorrow. If there are model XPO2s available tomorrow, there is a 0.70 probability that by the day after tomorrow, there will be no model XPO2s available in the wholesale market. Three days from now, it is certain that no model XPO2s will be available on the wholesale market.a. What is the maximum expected profit if Jeff makes the purchase today?b. What is the maximum expected profit if Jeff makes the purchase tomorrow?c. What is the maximum expected profit if Jeff makes the purchase two days from now?d. What is the maximum expected profit if Jeff makes the purchase three days from now?e. What should Jeff do?
Answer:
a) If Jeff purchases today, then he can expect to earn $30,000.
b) If Jeff decides to wait and try to purchase tomorrow, his expected profit is $22,000.
c) If Jeff decides to wait even more and buy the day after tomorrow, then his expected profit is $8,400.
d) Three days form now there will be no XPO2 available, so his profit is $0.
e) Jeff should purchase the XPO2 today and earn $30,000.
Explanation:
selling price $180,000
buys today, then profit = $180,000 - $150,000 = $30,000buys tomorrow, then profit = $180,000 - $125,000 = $55,000 x 40% = $22,000if he buys the day after tomorrow, then profit = $180,000 - $110,000 = $70,000 x 40% x 30% = $8,400if he waits 3 days, then his profit is $0 because there are no XPO2s available."Ramon runs the marketing department at his company. His department gets a budget every year, and every year, he must spend the entire budget without going over. If he spends less than the budget, then his department gets a smaller budget the following year. At the beginning of this year, Ramon got $2.5 million for the annual marketing budget. He must spend the budget such that 2,500,000−x=0. What property of addition tells us what the value of x must be?"
Answer:
Property of additive inverse
Explanation:
Given: Ramon got $2.5 million for the annual marketing budget such that he must spend the budget such that [tex]2,500,000-x=0[/tex]
To find: property of addition that help us to know what the value of x must be
Solution:
1 million is equal to [tex]1,000,000[/tex]
So,
[tex]2.5\,\,million=2.5(1,000,000)=2,500,000[/tex]
According to property of additive inverse,
[tex]a+(-a)=0[/tex]
Given equation is [tex]2,500,000-x=0[/tex]
This equation can be written as [tex]2,500,000+(-x)=0[/tex]
So,
[tex]x=2,500,000[/tex]
A software company that installs systems for inventory control using RFID technology spent $760,000 per year for the past 3 years in developing their latest product. The company optimistically hopes to recover its investment in 5 years on a single contract beginning immediately (year 0). The company is negotiating a contract that will pay $280,000 now and a to-be-agreed-upon annual increase of a constant amount each year through year 5. How much must the income increase (an arithmetic gradient) each year if the company wants to realize a return of 9% per year
Answer:
$2,096,924.50
Explanation:
Present value of an investment and cash inflows is measured at present time means year 0. Gradient is also valued at present time.
$760,000 each year at 9% for next 3 years is annuity payment and its Present value can be calculated as follow
PV of Annuity = P + P x ( 1 - ( 1 + r )^-(n-1) / r
Where
P = $760,000
r = 9%
n = 3 years
Placing values in the formula
PV of Annuity = $760,000 + $760,000 x ( 1 - ( 1 + 9% )^-(3-1) / 9%
PV of Annuity = $760,000 + $760,000 x 1.759111
PV of Annuity = $760,000 + $1,336,924.50
PV of Annuity = $2,096,924.50
Cormorant Corp. manufactured equipment at a cost of $600,000 and leased it to Boreal Corp. on January 1, year 9 for an eight-year period expiring December 31, year 16. Eight years is considered a major part of the asset’s economic life. Equal payments under the lease are $60,000 and are due on January 1 and July 1 of each year. The first payment was made on January 1, year 9. The list selling price of the equipment is $750,000 and the implicit rate used by Cormorant is 8%. What amount of selling profit or loss should Cormorant report for the year ended December 31, year 9?
Answer:
$127,104 profit
Explanation:
Given the following :
Cost of manufacture = $600,000
Periodic payment made semianually = $60,000
Implicit interest rate (i) = 8% ; hence semiannual interest rate = 8% / 2 = 0.04
Number of lease years = 8 years ; period = (2 × 8) = 16 periods
Semiannual payment * (present value of annuity due factor)
Using the present value of annuity due factor table, PVAD(4%, 16) = 12.1184
Hence,
$60,000 × 12.1184 = 727, 104
Profit or loss made:
$727,104 - Cost of manufacture
$727,104 - $600,000
= $127,104 profit
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work in process, March 1 22,000 Work in process, March 31 23,500 Finished goods inventory, March 1 21,000 Finished goods inventory, March 31 30,000 Sales 257,000 Sales and administrative expenses 79,000
Required:
Prepare (a) a statement of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) the inventory section of the balance sheet.
Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. "Less" or "Plus" will automatically appear if it is required. You will not need to enter colons (:) on the financial statements.
Answer:
Zoe Company
a) Statement of Cost of Goods Manufactured:
Direct materials cost $90,000
Direct labor 25,000
Factory overhead 37,000
Work in process, March 1 22,000
Work in process, March 31 (23,500)
Cost of goods manufactured $150,500
b) Income Statement for the month ended March 31:
Sales $257,000
Finished goods inventory, March 1 $21,000
Cost of goods manufactured 150,500
Finished goods inventory, March 31 (30,000)
Cost of goods sold $141,500
Gross profit $115,500
Sales and administrative expenses 79,000
Net Income $36,500
c) Inventory Section of the Balance Sheet as of March 31:
Current Assets:
Inventory:
Materials inventory, March 31 $8,000
Work in process, March 31 23,500
Finished goods inventory, March 31 30,000
Total inventory $61,500
Explanation:
a) Data and Calculations:
Purchases $92,000
Materials inventory, March 1 6,000
Materials inventory, March 31 8,000
Direct labor 25,000
Factory overhead 37,000
Work in process, March 1 22,000
Work in process, March 31 23,500
Finished goods inventory, March 1 21,000
Finished goods inventory, March 31 30,000
Sales 257,000
Sales and administrative expenses 79,000
b) Materials inventory, March 1 $6,000
Purchases 92,000
Materials inventory, March 31 8,000
Direct materials cost $90,000
Ravenna Company is a merchandiser that uses the indirect method to prepare the operating activities section of its statement of cash flows. Its balance sheet for this year is as follows:
Ending Balance Beginning Balance
Cash $64,400 $76,900
Accounts receivable 53,200 57,200
Inventory 71,400 65,000
Total current assets 189,000 199,100
Property, plant, and equipment 192,000 182,000
Less accumulated depreciation 64,000 45,500
Net property, plant, and equipment 128,000 136,500
Total assets $317,000 $335,600
Accounts payable $41,600 $74,000
Income taxes payable 32,400 39,600
Bonds payable 78,000 65,000
Common stock 91,000 78,000
Retained earnings 74,000 79,000
Total liabilities and stockholders’ equitY$317,000 $335,600
During the year, Ravenna paid a $7,800 cash dividend and it sold a piece of equipment for $3,900 that had originally cost $8,400 and had accumulated depreciation of $5,600. The company did not retire any bonds or repurchase any of its own common stock during the year.
Required:
1. What is the amount of the net increase or decrease in cash and cash equivalents that would be shown on the company’s statement of cash flows?
7-a. What is the combined amount and direction (+ or −) of the inventory and accounts payable adjustments to net income in the operating activities section of the statement of cash flows?
7-b. What does this amount represent?
Cash paid to suppliers > Cost of goods sold
Cash paid to suppliers > Purchases
Cash paid to suppliers < Cost of goods sold
8-a. If the company debited income tax expense and credited income taxes payable $940 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?
9-a. What is the amount and direction (+ or −) of the income taxes payable adjustment to net income in the operating activities section of the statement of cash flows?
9-b. What does this adjustment represent?
Tax paid < Income tax expenses
No taxes are payable
Tax paid > Income tax expenses
11. What is the amount of net cash provided by (used in) operating activities in the company’s statement of cash flows?
10. Would the operating activities section of the company’s statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction ( + or − ) of the adjustment?
8-b. What does the amount of these debits represent?
Tax refunds
Cash paid for income taxes
Taxes payable
12.What is the amount of gross cash outflows reported in the investing section of the company’s statement of cash flows?
13.What is the company’s net cash provided by (used in) investing activities?
14.What is the amount of gross cash inflows reported in the financing section of the company’s statement of cash flows?
15.What is the company’s net cash provided by (used in) financing activities?
Answer:
1. What is the amount of the net increase or decrease in cash and cash equivalents that would be shown on the company’s statement of cash flows?Answer: Net decrease:$12,500
7-a. What is the combined amount and direction (+ or −) of the inventory and accounts payable adjustments to net income in the operating activities section of the statement of cash flows?
Answer: $-38,800
7-b. What does this amount represent?
Cash paid to suppliers > Cost of goods sold
Cash paid to suppliers > Purchases
Cash paid to suppliers < Cost of goods sold
Answer: Cash paid to suppliers>Purchases
8-a. If the company debited income tax expense and credited income taxes payable $940 during the year, what is the total amount of the debits recorded in the Income Taxes Payable account?
Answer: $8,140 (cash paid )
8-b. What does the amount of these debits represent?
Tax refunds
Cash paid for income taxes
Taxes payable
Answer: cash paid for income taxes
9-a. What is the amount and direction (+ or −) of the income taxes payable adjustment to net income in the operating activities section of the statement of cash flows?
Answer: Add back income tax expense $940 and subtract tax paid $-8,140
9-b. What does this adjustment represent?
Tax paid < Income tax expenses
No taxes are payable
Tax paid > Income tax expenses
Answer: Tax paid >Income tax expense
10. Would the operating activities section of the company’s statement of cash flows contain an adjustment for a gain or a loss? What would be the amount and direction ( + or − ) of the adjustment?
Answer: Deduct the gain on disposal $-1,100
11. What is the amount of net cash provided by (used in) operating activities in the company’s statement of cash flows?
Answer: Net cash used in operating activities: $-3,200
12.What is the amount of gross cash outflows reported in the investing section of the company’s statement of cash flows?
Answer: $18,400 on account of PPE purchased ($192,000+$8,400-$192,000)
13.What is the company’s net cash provided by (used in) investing activities?
Answer: $-14,500
14.What is the amount of gross cash inflows reported in the financing section of the company’s statement of cash flows?
Answer: $13,000
15.What is the company’s net cash provided by (used in) financing activities?
Answer: Net cash inflow from financing activities $5,200
Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $24,000 from County Bank and paid interest of $1,440. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher-education loans under the following circumstances: (Leave no answer blank. Enter zero if applicable.) b. Lionel's AGI before deducting interest on higher-education loans is $79,000.
Answer:
Since 2019, the deduction limit for interest expense deductions on qualified higher education loans is $2,500. In order to qualify for this deduction, the taxpayer's adjusted AGI must be less than $85,000 for single filers (Lionel's income is below the threshold).
So Lionel will be able to deduct $1,440 as interest expense (above the line deduction).
Lionel can also deduct $2,500 form the American Opportunity Tax Credit for higher education expenses.
QUESTION 3 of 10: You worked the following hours this week: Monday 8 AM to 5 PM, Tuesday 9 AM to 3 PM, Thursday 8:30 AM to 2:15 PM. You get a 30-minute unpaid lunch break every work day. How many hours will you be paid for this week?
Answer:
19 hours
Explanation:
8 and a half
5 and a half
5 and 15
Accounts with a normal credit balance include: (select all that apply)
A) Accounts receivable
B) Allowance for Uncollectible Accounts
C) Bad Debt Expense
D) Cash
E) Sales Revenue
Answer:
C). Bad Debt Expense
E). Sales Revenue
Explanation:
As per the question, the accounts that are kept with a normal credit balance includes 'bad debt expense' and 'sales revenue account.' Bad debt account is characterized as the account made for noting the expenses incurred in a business due to incollectibility of debts from the debtors or customers who were sold the goods or money on credit and are unable to pay the amount. While sales revenue account is made for the revenue generated by the company from either provision of services or sale of goods. It includes both the cash and a part of it is also held for sales revenue remunerated on credit. Thus, options C and E are the correct answers.
The accounts or accounting is referred to as the method of bookkeeping where the individual ledger pages are maintained to record the individual accounts of assets, liabilities, expenses, and incomes. The normal balance of each account is defined as either a debit balance or a credit balance.
The accounts with a normal credit balance are:
Option C). Bad Debt Expense
Option E). Sales Revenue
Reasons:
The bad debt is the account that is made for recording the expenses incurred by the business due to the uncollected amount of debts from the credit customers or the debtors of the business.The sales revenue account is maintained to record all the revenues generated by the business from the sale of goods or providing services. It records the credit sale as well as cash sale of goods.As per the general accounting rules, all the revenues and losses have a normal credit balance.
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Ortho Company experienced the following events during its first- and second-year operations:
Year 1 Transactions: Acquired $68,000 cash from the issue of common stock.
Borrowed $36,000 cash from the National Credit Union.
Earned $59,000 of cash revenue.
Incurred $43,000 of cash expenses.
Paid a $7,000 cash dividend.
Paid $37,000 cash to purchase land.
Year 2 Transactions:
Acquired $50,000 cash from the issue of common stock.
Borrowed $20,000 cash from the National Credit Union.
Earned $85,000 of cash revenue.
Incurred $62,000 of cash expenses.
Paid a $2,000 cash dividend.
Paid $25,000 cash to purchase land.
Required
a. Record the transactions in an accounting equation like the equation shown next.
b. Record the amounts of revenue, expense, and dividends in the Retained Earnings column.
c. Provide the appropriate titles for these accounts in the last column of the table.
d. Show the totals at the end of Year 1 and use these totals as the beginning balances for the second accounting cycle.
d-1. Prepare an income statement for Year 1 and Year 2.
d-2. Prepare a stockholders' equity for Year 1 and Year 2.
d-3. Prepare a balance sheet for Year 1 and Year 2.
d-4. Prepare a statement of cash flows for Year 1 and Year 2.
Answer:
Due to space limitations, I used an excel spreadsheet to answer questions a, b, c and d.
d1)
Ortho Company
Income Statements
For years 1 and 2
Year 1 Year 2
Service revenue $59,000 $85,000
Expenses ($43,000) ($62,000)
Net income $16,000 $23,000
d2)
Ortho Company
Statement of Stockholders' Equity
For years 1 and 2
Year 1 Year 2
Beginning balance $0 $77,000
Common stocks issued $68,000 $50,000
Net income $16,000 $23,000
Subtotal $84,000 $150,000
Dividends paid ($7,000) ($2,000)
Ending balance Dec. 31, year 1 $77,000 $148,000
d3)
Ortho Company
Balance Sheet
For years 1 and 2
Year 1 Year 2
Assets:
Cash $76,000 $142,000
Land $37,000 $62,000
Total assets $113,000 $204,000
Liabilities:
Notes payables $36,000 $56,000
Stockholders' Equity:
Common stock $68,000 $118,000
Retained earnings $9,000 $30,000
Total liabilities + equity $113,000 $204,000
d4)
Ortho Company
Statement of cash flows
For years 1 and 2
Year 1 Year 2
Cash flows from operating act.
Net income $16,000 $23,000
No adjustments required $0 $0
Net cash provided by OA $16,000 $23,000
Cash flows from investing act.
Purchase of land ($37,000) ($20,000)
Net cash provided by IA ($37,000) ($20,000)
Cash flows from financing act.
Issuance of common stocks $68,000 $50,000
Dividends paid ($7,000) ($2,000)
Issuance of long term debt $36,000 $20,000
Net cash provided by FA $97,000 $68,000
Net increase in cash $76,000 $66,000
Initial cash balance $0 $76,000
Ending cash balance $76,000 $142,000
a - d. Recording the transactions in an accounting equation form for Ortho Company is as follows:
Year 1: Cash + Land = Note + Common + Retained
Payable Stock Earnings
Stock issuance $68,000 $68,000
Loan $36,000 $36,000
Cash revenue $59,000 $59,000
Cash expenses -43,000 -43,000
Dividends payment -7,000 -7,000
Land purchase -37,000 $37,000
Total $76,000 $37,000 $36,000 $68,000 $9,000
Year 2: Cash + Land = Note + Common + Retained
Payable Stock Earnings
Beginning balance $76,000 $37,000 $36,000 $68,000 $9,000
Stock issuance $50,000 $50,000
Loan $20,000 $20,000
Cash revenue $85,000 $85,000
Cash expenses -62,000 -62,000
Dividends payment -2,000 -2,000
Land purchase -25,000 $25,000
Total $142,000 $62,000 $56,000 $118,000 $30,000
The appropriate titles in the Retained Earnings column are Revenue, Expenses, Dividends. Space does not permit them to be indicated on a separate column.
d-1. The Income Statements for Year 1 and Year 2 are as follows:Year 1 Year 2
Revenue $59,000 $85,000
Expenses 43,000 62,000
Net income $16,000 $23,000
d-2. Stockholders' Equity for Year 1 and Year 2 are as follows:
Year 1 Year 2
Common stock $68,000 $68,000
Additional stock 50,000
Retained earnings $9,000
Net income $16,000 $23,000
Dividends 7,000 2,000
Retained earnings $9,000 $30,000
d-3. Balance Sheets for Year 1 and Year 2Year 1 Year 2
Assets:
Cash $76,000 $142,000
Land 37,000 62,000
Total assets $113,000 $204,000
Liabilities:
Notes Payable $36,000 $56,000
Equity:
Common Stock $68,000 $118,000
Retained earnings 9,000 30,000
Total equity $77,000 $148,000
Total equity and
liabilities $113,000 $204,000
d-4 Statement of Cash Flows:Operating Activities:
Year 1 Year 2
Net income $16,000 $23,000
Financing Activities:
Stock issuance $68,000 $50,000
Dividends paid -7,000 -2,000
Loan 36,000 20,000
Cash from financing $97,000 $68,000
Investing Activities:
Land purchase -$37,000 -$25,000
Net Cash Flows $76,000 $66,000
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A manager is applying the Transportation Model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units, and in period 2, demand is 150 units. The manager has 125 hours of regular employment available for $10/hour each period. In addition, 50 hours of overtime are available for $15/hour each period. Holding costs are $2 per unit each period. a. How many hours of regular employment should be used in period 1? (Assume demand must be met in both periods 1 and 2 for the lowest possible cost and that production is 1 unit per hour.)
Answer:
125 (hours)
Explanation:
Remember, the Linear programming model is simply a technique used to optimize a particular set of processes.
Note the statement from the question, "the manager has 125 hours of regular employment available for $10/hour each period." Which means this would form part of the constraints of the linear programming model.
In other words, the number of total hours available in period 1 is 125 hours.
Minarski Electronics sells computers and provides hardware maintenance services. On April 1st, Minarski sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $984 and the one-year unlimited maintenance/repair service costs $216. How much revenue does Minarski Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly
Answer:
$835
Explanation:
Calculation for the amount of revenue that Minarski Electronics recognize
First step is to find the Total cost amount if sold separately
Total cost if sold separately = 984+ 216
Total cost if sold separately= 1200
Second step is to find the Percentage of computer
Percentage of Computer = 984/1,200
Percentage of Computer = 0.82
Percentage of Computer =82%
Third step is to find the Percentage of maintenance
Percentage of maintenance = 216/1,200
Percentage of maintenance=0.18*100
Percentage of maintenance=18%
Next step is to calculate for the Revenue to be recognized for both computer and Maintenance service costs
Computer Revenue= 1,000 * 82%
Computer Revenue= 820
Maintenance service costs revenue =(18% * 1,000)/12
Maintenance service costs revenue =180/12
Maintenance service costs revenue =15
Last step is to find the Total amount to be recognized
Total amount to be recognized = 820 + 15
Total amount to be recognized=$835
Therefore the amount of revenue that Minarski Electronics will recognize is $835
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 160 Units in beginning inventory 100 Units produced 16,000 Units sold 15,800 Units in ending inventory 300 Variable costs per unit: Direct materials $ 51 Direct labor $ 46 Variable manufacturing overhead $ 8 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $560,000 Fixed selling and administrative expense $173,800 What is the total period cost for the month under variable costing
Answer:
Period costs= $813,800
Explanation:
Giving the following information:
Units produced 16,000
Variable selling and administrative expense $5
Fixed manufacturing overhead $560,000
Fixed selling and administrative expense $173,800
The period costs are the costs not directly involved in the production.
Period costs= fixed overhead + total variable selling and administrative costs
Period costs= 560,000 + 5*16,000 + 173,800
Period costs= $813,800
