Answer:
19 hours
Explanation:
8 and a half
5 and a half
5 and 15
Omega Company adjusts its accounts at the end of each month. The following information has been assembled in order to prepare the required adjusting entries at December 31, Year 1: (1) A one-year bank loan of $720,000 at an annual interest rate of 12% had been obtained on December 1, Year 1. (2) The company pays all employees up-to-date each Friday. Since December 31, Year 1, fell on Tuesday, there was a liability to employees at that date for two day's pay amounting to $6,800. (3) On December 1, Year 1, rent on the office building had been paid for four months. The monthly rent is $6,000. (4) Depreciation of office equipment is based on an estimated useful life of six years. The balance in the Office Equipment account is $9,360; no change has occurred in the account during the year. (5) Fees of $9,800 were earned during the month for clients who had paid in advance. After the appropriate adjusting entry is recorded, the balance in the liability account Unearned Fees will:
Answer: Decrease by $9,800
Explanation:
It is shown that fees of $9,800 were earned during the month from clients who had paid in advance. Unearned fees are liabilities because they represent revenue that a company made for services it has not delivered yet.
When the company delivers the service like these ones just did, they will reduce this liability because they have now earned this revenue by delivering the service.
Omega will therefore reduce their unearned fees account by $9,800.
Mercer Corporation acquired $400,000 of Park Company’s bonds on June 30, 2018, for $409,991.12. The bonds carry a 12% stated interest rate and pay interest semiannually on June 30 and December 31. The appropriate market interest rate is 11%, and the bonds are due June 30, 2021. Required: 1. Prepare an investment interest income and premium amortization schedule, using the: a. straight-line method b. effective interest method 2. Prepare journal entries to record the December 31, 2018, and December 31, 2020, interest receipts using both methods.
Answer:
I will start with question 2:
journal entry to record purchase of bonds
June 30, 2018, bonds purchased at a premium
Dr Investment in bonds 400,000
Dr Premium on investment in bonds 9,991.12
Cr Cash 409,991.12
straight line amortization of bond premium:
December 31, 2018 = 1,665.19
June 30, 2019 = 1,665.19
December 31, 2019 = 1,665.18
June 30, 2020 = 1,665.19
December 31, 2020 = 1,665.19
June 30, 2021 = 1,665.18
December 31, 2018
Dr Cash 24,000
Cr Interest revenue 22,334.81
Cr Premium on investment in bonds 1,665.19
December 31, 2020
Dr Cash 24,000
Cr Interest revenue 22,334.81
Cr Premium on investment in bonds 1,665.19
amortization of bond premium using effective interest method:
December 31, 2018 = (409,991.12 x 0.055) - 24,000 = 1,450.49
June 30, 2019 = (408,540.63 x 0.055) - 24,000 = 1,530.27
December 31, 2019 = (407,010.36 x 0.055) - 24,000 = 1,614.43
June 30, 2020 = (405,395.93 x 0.055) - 24,000 = 1,703.22
December 31, 2020 = (403,692.71 x 0.055) - 24,000 = 1,796.90
June 30, 2021 = 1,895.81
December 31, 2018
Dr Cash 24,000
Cr Interest revenue 22,549.51
Cr Premium on investment in bonds 1,450.49
December 31, 2020
Dr Cash 24,000
Cr Interest revenue 22,203.10
Cr Premium on investment in bonds 1,796.90
1) I used an excel spreadsheet to prepare the amortization schedules:
Simpkins Corporation does not pay any dividends because it is expanding rapidly and needs to retain all of its earnings. However, investors expect Simpkins to begin paying dividends, with the first dividend of $0.75 coming 3 years from today. The dividend should grow rapidly - at a rate of 70% per year - during Years 4 and 5. After Year 5, the company should grow at a constant rate of 6% per year. If the required return on the stock is 13%, what is the value of the stock today (assume the market is in equilibrium with the required return equal to the expected return)
Answer:
The current value of stock is $20.40
Explanation:
D3 = $0.75
The Growth rate for Year 4 & Year 5 is 70%. The experience after was constant growth rate (g) of 6%
D4 = $0.75 * 1.70 = $1.28
D5 = $1.28 * 1.70 = $2.18
D6 = $2.18 * 1.06 = $2.31
To get the Value of stock, r = 16%
P5 = D6 / (r - g)
P5 = $2.31 / (0.13 - 0.06)
P5 = $2.31 / 0.07
P5 = $33
P0 = $0.75/1.13^3 + $1.28/1.13^4 + $2.18/1.13^5 + $33/1.13^5
P0 = $0.75/1.4429 + $1.28/1.6305 + $2.18/1.8424 + $33/1.8424
P0 = $0.5198 + $0.7850 + $1.1832 + $17.9114
P0 = $20.3994
P0 = $20.40
So, current value of stock is $20.40
What will happen to the quantity demanded of Starbucks coffee if the price of their coffee drops from $1 to $.50 per ounce? Why?
Answer:
The coffee demand will increase
Explanation:
getting coffee at a lower price will raise the demand since it is cheaper, so more people will want it since it'll cost them less
A local finance company quotes an interest rate of 19.9 percent on one-year loans. So, if you borrow $48,000, the interest for the year will be $9,552. Because you must repay a total of $57,552 in one year, the finance company requires you to pay $57,552/12, or $4,796.00 per month over the next 12 months. a. What rate would legally have to be quoted? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the effective annual rate? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal p
Answer and Explanation:
The computation is shown below:
a. For annual percentage rate
The excel spreadsheet is attached that contains two attachment one of formula and the other one is of final values
Therefore applying the given formula, the rate at which it is legally quoted is 34.91%
b. For the effective annual rate:
The excel spreadsheet is attached that contains two attachment one of formula and the other one is of final values
Therefore applying the given formula, the rate at which it is legally quoted is 41.07%
"Willow's team has split up the contributions for its group writing project equally, with individual team members committing various amounts of time. Jim's team has decided to let each member decide how much time he or she wants to spend according to individual schedules. Wyatt's team has divided up the contributions and time commitments equally. Jill's team wrote a team charter but then disbanded. Which team has the best approach to group writing?"
Answer:
The correct answer is the first option: Willow's team has split up the contribution for its group writing project equally, with individual team members commiting various amounts of time.
Explanation:
To begin with, the reason why the team of Wyatt has the best approach to group writing is due to the fact that they decided together to split up all the work in equal parts so that they work with the same amount of information available and also because they know that every member could add more or less time depending on themself so that freedom to develop the use of the time as they need is also very important for the quality of the final work. The most important is to understand that every member knows how to work so they should decide to use whether so much time or not so much of it.
Lorenzo Company applies overhead to jobs on the basis of direct materials cost. At year-end, the Work in Process Inventory account shows the following. Work in Process Inventory Date Explanation Debit Credit Balance Dec. 31 Direct materials cost 1,800,000 1,800,000 31 Direct labor cost 200,000 2,000,000 31 Overhead applied 846,000 2,846,000 31 To finished goods 2,757,000 89,000 1. Determine the predetermined overhead rate used (based on direct materials cost). 2. Only one job remained in work in process inventory at December 31. Its direct materials cost is $32,000. How much direct labor cost and overhead cost are assigned to this job
Answer and Explanation:
1. The computation of the predetermined overhead rate is shown below:
= Overhead applied ÷ direct material cost
= $846,000 ÷ $1,800,000
= 47%
2. The direct labor and overhead cost assigned to the job is shown below:
Total cost $89,000
Less: direct material cost $32,000
Less: overhead cost $15,040 ($32,000 × 0.47)
Direct labor cost $41,960
Some experts estimated that national health spending in the United States grew at 1% in excess of the growth rates of GDP. Assume that this trend would persist for the foreseeable future, and given the fact that the share of GDP on health spending stood at 18% in 2016, what would become the share in 2064, 45 years from now (and 48 years from 2016, the base year), when most of you would enter the traditional retirement age? We should assume that GDP would grow at 3% annually. Do you have a problem with the number you arrive at?
Answer and Explanation:
As in the question it is mentioned that GDP grow at 3% annually and the health spending is also grow at 1% so the growth rate would be 4%
Now the GDP for the year 2064 is
= Share of health spending × (1 + growth rate)^time period
= 0.18 × (1 + 0.04)^48
= 1.18%
As it can be seen that the share of health spending is higher in the year 2024 so it would be warranted and highest share that contains no problem
On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway paid $280,000 for the machine and is leasing it to Zone for $38,000 per year, an amount that will return 9% to Calloway. The present value of the lease payments is $280,000. The lease payments are due each January 1, beginning in 2021. What is the appropriate interest entry on December 31, 2021
Answer:
Dr Interest receivable 21,780
Cr Interest revenue 21,780
Explanation:
Preparation of the appropriate interest Journal entry on December 31, 2021
Based on the information given we were told that the company paid the amount of $280,000 for the machine in which the company will be leasing the machine to Zone for the amount of $38,000 per year while 9% of the amount will be return to Calloway which means that the interest entry on December 31, 2021 will be recorded as:
Dr Interest receivable 21,780
Cr Interest revenue 21,780
Calculated as :
Cost of machine $280,000
Less lease amount per year $38,000
=$242,000
Hence,
$242,000*9%
=$21,780
ob A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,800 of direct materials and used $4,300 of direct labor. The job was not finished by the end of September, but needed an additional $3,300 of direct materials in October and additional direct labor of $6,800 to finish the job. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October
Answer:
Work in process= $20,300
Explanation:
Giving the following information:
October:
$3,300 of direct materials
$6,800 to finish the job.
The company applies overhead at the end of each month at a rate of 150% of the direct labor cost.
To calculate the cost for October, we need to allocate overhead and all 3 components.
Work in process= 3,300 + 6,800 + (6,800*1.5)
Work in process= $20,300
Identifying adjusting entries with explanations LO P1 For each of the following entries, select the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)
A. To record receipt of unearned revenue.
B. To record this period's earning of prior unearned revenue.
C. To record payment of an accrued expense.
D. To record receipt of an accrued revenue.
E. To record an accrued expense.
F. To record an accrued revenue.
G. To record this perlod's use of a prepaid expense.
H. To record payment of a prepaid expense.
I. To record this period's depreclation expense.
Journal Entries Explanation Debit Credit
Interest Expense C 1,000
Interest Payable 1,000
Depreciation Expense 4,000 4,000
Unearned Professional Fees Professional Fees Earned
3,000 3,000
Insurance Expense 4,200
Prepaid Insurance 4,200
Salaries Payable 1,400
Cash 1,400
Prepaid Rent 4,500
Cash 4,500
Salaries Expense 6,000
Salaries Payable 6,000
Interest Receivable 5,000
Interest Revenue 5,000
Cash 9,000
Accounts Receivable (from consulting)9,000
Cash Unearned Professional Fees 7,500 7,500
Cash 2,000 Interest Receivable 2,000
Rent Expense Prepaid Rent 2,000 2,000
Answer:
Journal entries Debit Credit
Interest expenses $1000
Interest payable $1000
E. To record an accrued expense.
Depreciation expenses $4000
Accumulated depreciation $4000
I. To record this period's depreciation expense.
Unearned professional fees $3000
Profession fees earned $3000
B. To record this period's earning of prior unearned revenue.
Insurance expenses $4200
Prepaid insurance $4200
G. To record this period's use of a prepaid expense.
Salaries payable $1400
Cash $1400
C. To record payment of an accrued expense.
Prepaid rent $4500
Cash $4500
H. To record payment of a prepaid expense.
Salaries expenses $6000
Salaries payable $6000
E. To record an accrued expense.
Interest receivable $5000
Interest revenue $5000
F. To record an accrued revenue.
Cash $9000
Accounts receivable $9000
D. To record receipt of an accrued revenue.
Cash $7500
Unearned professional fees $7500
A. To record receipt of unearned revenue.
Cash $2000
Interest receivable $2000
D. To record receipt of an accrued revenue.
Rent expenses $2000
Prepaid rent $2000
G. To record this period's use of a prepaid expense.
The best definition of an accounting system is: The concepts, principles, and standards specifying the information which should be included in financial statements, and how that information should be presented. Journals, ledgers, and worksheets. The personnel, procedures, devices, and records used by an entity to develop accounting information and communicate this information to decision makers. Manual or computer-based records used in developing information about an entity for use by managers and also persons outside the organization.
Answer:
The personnel, procedures, devices, and records used by an entity to develop accounting information and communicate this information to decision makers.
Explanation:
Accounting system is a system used to organise financial information. Accounting system can be manual or electronic
Which of the following statements is true? By comparing earnings per share of a single corporation over time, a stockholder can evaluate the corporation’s relative earnings performance. Earnings per share is an internal measure and is not used by stockholders. Net income is not adjusted when computing earnings per share. The denominator used in computing earnings per share represents the shares of common stock outstanding on the last day of the accounting period.
Answer:
By comparing earnings per share of a single corporation over time, a stockholder can evaluate the corporation’s relative earnings performance.
Explanation:
Remember, earnings per share often makes up part of the financial statement of a corporation. Since a shareholder of a corporation usually has a stake or interest in the company's performance, such comparisons of the earnings per share of a single corporation over time, can enable him or her evaluate the corporation’s relative earnings performance.
Bob is a manager at a local Toyota dealership who has lost five of his employees during the last year. Now he has to make a decision about how to retain the employees on his team. Having recently taken a class on decision making, Bob decides to follow the six-step process for deciding what to do. What problem is Bob most likely to face during the evaluation and feedback step in the decision-making process? Jumping to solutions before understanding the problem Considering only "tried and true" solutions without creating new possibilities Neglecting to gather information on whether or not the plan was successful Satisficing, or choosing the first solution that works, not the best solution
Answer:
Neglecting to gather information on whether or not the plan was successful.
Explanation:
In this step, he is most likely to face the problem of Neglecting to gather information on whether or not the plan was successful. The whole goal of the evaluation and feedback step is to analyze the results that occurred due to the decision that was made and determine whether or not it was successful, and this is done by receiving feedback from those that the decision affects. The biggest problem seen in this step is when the individual fails to gather enough information to determine effectively whether or not the decision was a good decision based on whether or not it accomplished what it was meant to accomplish.
Which of the following is an example of employee advocacy?
A. Asking a manager to hire the relative of an employee
B. Negotiating with management for fair pay and benefits
c. Offering personal advice to an employee about a family matter
Answer:
Negotiating with management for fair pay and benefits
Explanation:
A p e x
PLEASE HELP............
Sylvia Taylor stresses that a _______, which is a written statement of all the things a worker actually does and how he or she does them, is essential in helping workers understand what their job entails and how they can have the most impact on their performanceSylvia Taylor stresses that a _______, which is a written statement of all the things a worker actually does and how he or she does them, is essential in helping workers understand what their job entails and how they can have the most impact on their performance
Answer:
Job description
Explanation:
A job description is defined as a written document that enumerates the duties that is expected from someone occupying a particular position.
Job description gives an employee a guide on how to effectively meet up with performance requirements in a position, since all key performance activities are enumerated.
Skills needed to succeed on the job can also be communicated in the job description.
In this scenario where Sylvia is referring to a statement of all the things a worker actually does and how he or she does them, is essential in helping workers understand what their job entails and how they can have the most impact on their performance. She is describing a job description.
Three weeks ago, Mike McGee left to join a larger company, and management decided to reorganize the IT department. Felesia Stukes was promoted to IT director, and to save money, her old job was eliminated. You, Lauren, Cathy, and Joe will report to her. The rest of the team is unchanged, except that a new programmer, Annie Edenton, has been hired, reporting to Dawn Rountree. Dawn’s title has been changed to Senior Data Technician. Also, to update your journal, you need to add more information about the various development methods: What are some pros and cons of each development method? What modeling tools are typically used with each development method
Answer:do you like pizza
Explanation:
The catering manager of La Vista Hotel, Lisa Ferguson, is disturbed by the amount of silverware she is losing every week. Last Friday night, when her crew tried to set up for a banquet for 500 people, they did not have enough knives. She decides she needs to order some more silverware, but wants to take advantage of any quantity discounts her vendor will offer. For a small order (2,000 or fewer pieces), her vendor quotes a price of $1.80/piece. If she orders 2,001–5,000 pieces, the price drops to $1.60/piece. 5,001–10,000 pieces brings the price to $1.40/piece, and 10,001 and above reduces the price to $1.25. Lisa’s order costs are $200 per order, her annual holding costs are 5%, and the monthly demand is 3750 pieces. For the best option:
Answer:
economic order = 16,971 units
annual holding cost = $503.34
annual ordering cost = $530.32
total cost of silverware per year = $57,283.66
Explanation:
we must first calculate the holding costs for the different prices:
$1.80 x 5% = $0.09
$1.60 x 5% = $0.08
$1.40 x 5% = $0.07
$1.25 x 5% = $0.0625
EOQ = √[(2 x S x D) / H]
S = order cost = $200
D = annual demand = 45,000
H = holding cost = we will try all 4 options
EOQ₁ = √[(2 x 200 x 45,000) / 0.09] = 14,142.13 units
EOQ₂ = √[(2 x 200 x 45,000) / 0.08] = 15,000 units
EOQ₃ = √[(2 x 200 x 45,000) / 0.07] = 16,035.67 units
EOQ₄ = √[(2 x 200 x 45,000) / 0.0625] = 16,970.56 units
Since all EOQs are over 10,000 units, then we will definitely use the holding cost of $0.0625, price per unit $1.25, and economic order of 16,971 units.
annual holding cost = average inventory x holding cost = (16,971 / 2) x $0.0625 = $503.34
annual ordering cost = (45,000 / 16,971) x $200 = $530.32
total cost of silverware per year = (45,000 x $1.25) + $503.34 + $530.32 = $57,283.66
Excel Online Structured Activity: Amortization schedule The data on a loan has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the questions below. Open spreadsheet a. Complete an amortization schedule for a $15,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 12% compounded annually. Round all answers to the nearest cent. Beginning Repayment Ending Year Balance Payment Interest of Principal Balance 1 $ $ $ $ $ 2 $ $ $ $ $ 3 $ $ $ $ $ b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places. % Interest % Principal Year 1: % % Year 2: % % Year 3: % %
Answer:
a. Ending balance in year 3 = $0
b.
% Interest % Principal
Year 1: 28.82% 71.18%
Year 2: 20.28% 79.72%
Year 3: 10.71% 89.29%
Explanation:
a. Complete an amortization schedule for a $15,000 loan to be repaid in equal installments at the end of each of the next three years. The interest rate is 12% compounded annually. Round all answers to the nearest cent.
Note: See part a of the attached excel file for the calculations.
In the excel function, the yearly payment is calculated by using PMT function in Excel: =PMT(12%,3,-15000,,)
b. What percentage of the payment represents interest and what percentage represents principal for each of the three years? Round all answers to two decimal places.
Note: See part b of the attached excel file for the calculations.
Suppose you believe that Du Pont's stock price is going to decline from its current level of $ 83.97 sometime during the next 5 months. For $ 279.07 you could buy a 5-month put option giving you the right to sell 100 shares at a price of $ 76 per share. If you bought a 100-share contract for $ 279.07 and Du Pont's stock price actually changed to $ 85.05 at the end of five months, your net profit (or loss) after behaving rationally on the decision to exercise the option would be ______
Answer:
Net loss $1,184.07
Explanation:
Calculation for the Net profit/loss
Using this formula
Net profit/Loss =Share contract amount-[Numbers of shares*(Price per shares-Changed in stock price)]
Let plug in the formula
Net profit/loss=$279.07-[100*($76-$85.05)]
Net profit/loss=$279.07-(100*$-9.05)
Net loss=-$279.07- $905)
Net loss=-$1,184.07
Therefore the net profit (or loss) after behaving rationally on the decision to exercise the option would be $1,184.07
On June 30, 2021, Crane Company had outstanding 7%, $8040000 face amount, 15-year bonds maturing on June 30, 2031. Interest is payable on June 30 and December 31. The unamortized balance in the bond discount account on June 30, 2021 was $365000. On June 30, 2021, Crane acquired all of these bonds at 95 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt
Answer:
$7,675,000
Explanation:
The computation of the net carrying amount is shown below:-
Net carrying amount = Face amount - Unamortized balance in the bond discount account on June 30, 2021
= $8,040,000 - $365,000
= $7,675,000
Therefore for computing the net carrying amount we simply applied the above formula.
Hence, the net carrying amount is $7,675,000
what score did you get? (:
Actual demand for a product for the past three months was: Three months ago400 units Two months ago350 units Last month325 units a. Using a simple three-month moving average, make a forecast for this month. (Round your answer to the nearest whole number.) Forecast for this month 358 correct units b. If 300 units were actually demanded this month, what would your forecast be for next month, again using a 3-month moving average
Answer:
a. Forecast is 358
b. Forecast is 325
Explanation:
a. Simple moving average is calculated as ;
= (N1 + N2 + N3) / N
Where N1 , N2, N3 are prices of instruments, while N is total period or time
Since
N1 = 400
N2 = 350
N3 = 325
Total periods = 3
Therefore,
Simple moving average = (400 + 350 + 325) / 3
= 1,075 / 3
= 358.333
We can forecast demand to be 358 using the simple moving average
b. If 300 units were actually demanded for this month, then;
Simple three moving average would be
N1 = 350
N2 = 325
N3 = 300
Total periods = 3
Since simple moving average = (N1 + N2 + N3) /3
= (350 + 325 + 300) / 3
= 975 / 3
= 325.
We can forecast the demand to be 325 this month , using a simple moving average.
E. O. Cue, Materials Management Specialist for Cue's Custom Billiard Balls, periodically needs to place orders for ivory, one of the raw materials used in producing billiard balls. Mr. Cue knows that manufacturing uses ivory at a rate of 50 kilograms each day, and that it costs $ .04 per day to carry a kilogram of ivory in inventory. He also knows that the clerical costs for placing an order for ivory are $100.00 per order, and that the lead time between placing and receiving each order is four days. Assume 250 days in one year. What is Mr. Cue's economic order quantity (EOQ) for ivory?
Answer: 500kg
Explanation:
Economic Order Quantity (EOQ) is the amount of units that should be added by a company to its inventory so.as to reduce total inventory cost.
From the question, the economic order quantity will be calculated as:
Drmqnd per year will be:
= 250 days/$0.04
= 12500 kg/year
The annual carrying cost per unit will be:
= $0.04/250
= $10/year
Ordering cost = 100
EOQ =[√(2×12500×100)/10]
= √2500000/10
= ✓250000
= 500 kg
Presented below is information related to Vaughn Corp. for the year 2020. Net sales $1,404,000 Write-off of inventory due to obsolescence $86,400 Cost of goods sold 842,400 Depreciation expense omitted by accident in 2019 59,400 Selling expenses 70,200 Casualty loss 54,000 Administrative expenses 51,840 Cash dividends declared 48,600 Dividend revenue 21,600 Retained earnings at December 31, 2019 1,058,400 Interest revenue 7,560 Effective tax rate of 20% on all items (a) Prepare a multiple-step income statement for 2020. Assume that 65,664 shares of common stock are outstanding for the entire year. (Round earnings per share to 2 decimal places, e.g. 1.49.Prepare a separate retained earnings statement for 2020. ()
Answer and Explanation:
The Preparation of multiple-step income statement for 2020 is presented below:-
Vaughn Corporation
Multiple Step Income statement
For the Year Ended December 31, 2020
Sales Revenue
Net Sales $1,404,000
Less: Cost of good sold ($842,400)
Gross Profit $561,600
Operating expenses:
Selling expenses $70,200
Administrative expenses $51,840
Total operating expenses ($122,040)
Operating Income $439,560
Other revenue
Dividend Revenue $21,600
Interest Revenue $7,560 $29,160
Total $468,720
Other Expense and losses
Write-off of inventory due to obsolescence ($86,400)
Income before taxes and extraordinary item $382,320
Less: income tax [382320 × 20%] ($76,464)
Income before extraordinary item $305,856
Extraordinary Item
Casualty loss $54,000
Less: Applicable tax deduction ($10,800) $43,200
(54,000 × 20%)
Net Income $262,656
Earnings Per Share of Common Stock
Income before extraordinary item $4.66
(305,856 ÷ 65,664]
Extraordinary item ($0.66)
[43,200 ÷ 65,664]
Net Income $4.00
2. The preparation of retained earnings is shown below:-
Vaughn Corporation
Retained earnings
For the Year Ended December 31, 2020
Beginning retained earnings $1,058,400
Less: Depreciation error ($59,400 × 80% $57,520
Retained earnings as on Jan 1 $1,000,880
Add: Net income $262,656
Less: Dividend declared $48,600
Retained earnings Dec 31 $1,214,936
The assets of Dallas & Associates consist entirely of current assets and net plant and equipment, and the firm has no excess cash. The firm has total assets of $2.9 million and net plant and equipment equals $2.4 million. It has notes payable of $155,000, long-term debt of $747,000, and total common equity of $1.45 million. The firm does have accounts payable and accruals on its balance sheet. The firm only finances with debt and common equity, so it has no preferred stock on its balance sheet. Write out your answers completely. For example, 25 million should be entered as 25,000,000. Negative values, if any, should be indicated by a minus sign. Round your answers to the nearest dollar, if necessary.
a. What is the company’s total debt?
b. What is the amount of total liabilities and equity that appears on the firm’s balance sheet?
c. What is the balance of current assets on the firm’s balance sheet?
d. What is the balance of current liabilities on the firm’s balance sheet?
e. What is the amount of accounts payable and accruals on its balance sheet? (Hint: Consider this as a single line item on the firm’s balance sheet.)
f. What is the firm’s net working capital?
g. What is the firm’s net operating working capital?
h. What is the explanation for the difference in your answers to parts f and g?
Answer: See explanation
Explanation:
a. What is the company’s total debt?
The company's total debt is the addition of the notes payable of $155,000, and the long-term debt of $747,000. This will be:
= $155,000 + $747,000
= $902000
b. What is the amount of total liabilities and equity that appears on the firm’s balance sheet?
Since the firm has total assets of $2.9 million and in a balance sheet, assets must be equal to the liabilities, then the total liabilities and equity = $2.9 million
c. What is the balance of current assets on the firm’s balance sheet?
Total assets:
= Current assets + Net plant and equipment
2.9 million= Current asset + 2.4 million
Current asset = 2.9 million - 2.4 million
= 0.5 million
= $500,000
d. What is the balance of current liabilities on the firm’s balance sheet?
Total liabilities and equity:
= Current liabilities + Long-term debt + Total common equity
2.9 million= Current liabilities + $747000 + $1,450,000
Current liabilities = 2,900,000 - 2,197,000
Current liabilities= $703,000
e. What is the amount of accounts payable and accruals on its balance sheet? (Hint: Consider this as a single line item on the firm’s balance sheet.)
Accounts payable and accruals = Current liabilities - Notes payable
Accounts payable and accruals = $703,000 - $155,000
= $548,000
f. What is the firm’s net working capital?
Net working capital = Current assets - Current liabilities
= $500,000 - $703,000
= -$203,000
g. What is the firm’s net operating working capital?
Net operating working capital:
= Current assets - (Current liabilities - Notes payable)
= $500,000 - ($703,000 - $155,000)
= $500000 - $548000
= $48,000
h. What is the explanation for the difference in your answers to parts f and g?
= $203,000 - $48,000
= $155,000
The difference between (f) and (g) is the note payable balance.
Solar Hydro manufactures a revolutionary aeration system that combines coarse and fine bubble aeration components. This year (year 1) the cost for check valve components is $9,000. Based on closure of a new contract with a distributor in China and volume discounts, the company expects this cost to decrease. If the cost in year 2 and each year thereafter decreases by $560, what is the equivalent annual cost for a 5-year period at an interest rate of 10% per year
Answer:
$7,986
Explanation:
To calculate the equivalent annual cost for 5 year period at an interest rate of 10% per year we need to go through some minor calculations first.
DATA
Cost in first year (A) = $10,000
Decrease in cost each year after the first year (G) = $560
Interest rate = 10%
Time period = 5 years
Solution
EAC = A - G (A/G, i, n)
EAC = $9,000 - $560(A/G, 10%, 5)
EAC = $9,000 - ($560 * 1.8101)
EAC = $9,000 - $1,013.656
EAC = $7,986
Below are several amounts reported at the end of the year. Currency located at the company $ 1,050 Supplies 3,200 Short-term investments that mature within three months 1,950 Accounts receivable 3,500 Balance in savings account 8,500 Checks received from customers but not yet deposited 650 Prepaid rent 1,450 Coins located at the company 110 Equipment 9,400 Balance in checking account 6,200 Required: Calculate the amount of cash to report in the balance sheet.
Answer: $18,460
Explanation:
Amounts that will go towards the cash account at the end of the year include all actual cash, undeposited checks, bank balances and short term investments.
The Total amount of cash to report will therefore be;
= Currency located at the company + Short-term investments that mature within three months + Balance in savings account + Checks received from customers but not yet deposited + Coins located at the company + Balance in checking account
= 1,050+ 1,950 + 8,500 + 650 + 110 + 6,200
= $18,460
1. Rick Radar, the sole stockholder, invested $15,000 cash in the business in exchange for common stock. 2. Rick contributed $22,000 of equipment to the business in exchange for common stock. 3. The company provided $8,000 of services to customers on account. 4. The company paid $1,000 cash to rent office space for the month of March and April ($500 per month). 5. The company collected $11,000 cash for repair services, $10,000 representing payment for services provided during March* and $1,000 representing payment for services to be provided in April. *these are additional March services & are unrelated to transaction #3. 6. The company paid $1,000 for salaries for the month of March. 7. The company purchased $2,000 of supplies. Radar paid $1,000 of cash at the time the supplies were delivered and purchased the remaining supplies on account. 8. The company collected $3,000 from customers as payment on account for services rendered on account in March (transaction #3). Based on this information, total stockholder's equity reported on the balance sheet at the end of March would be:
Answer: $53500
Explanation:
Stockholders' equity is gotten when all liabilities that are owned by a company have been settled and the remaining value of assets are then calculated.
Based on the information given in the question, total stockholder's equity reported on the balance sheet at the end of March would be:
Investment in Common Stock = $15000
Add: Contributed in Common Stock = $22000
Add: Net income = $16500
Total Stockholder's equity will now be:
= $15000 + $22000 + $16500
= $3500
Identify which error will cause the trial balance to be out of balance. Multiple Choice A $330 cash salary payment posted as a $330 debit to Cash and a $330 credit to Salaries Expense. A $230 cash receipt from a customer in payment of her account posted as a $230 debit to Cash and a $23 credit to Accounts Receivable. A $140 cash receipt from a customer in payment of her account posted as a $140 debit to Cash and a $140 credit to Cash. A $89 cash purchase of office supplies posted as a $89 debit to Office Equipment and a $89 credit to Cash. An $1,450 prepayment from a customer for services to be rendered in the future was posted as an $1,450 debit to Unearned Revenue and an $1,450 credit to Cash.
Answer:
The answer is "Option B".
Explanation:
In the numbering of the choices were missing, which is defined in the attached file please find it.
In the given question the choice B is correct because in which the customer cash receipt of $230, published as a deposit of $230, as well as an Account Credit of $23, and the other choices were wrong because all the given choices may not tie with balance of its trail.
