Answer:
a. As per the relevant provisions of IRS, the maximum amount of contribution that can be made to Simple Retirement Account (IRA form) for the year 2016 by an employee is $12,500
b. The maximum amount of contribution that can be made to the Simple Retirement Account according to the provisions of IRS (2016) by the company is 3% of total compensation earned by the employee. So the total amount of company's contribution would be $1290.12 ($43,004*3%).
c. Weekly Pay (43,004/52) 827
Less: Weekly Retirement Contribution 240.38 (12,500/52)
Weekly Wages 586.62
Less
FICA Tax (827*6.2% + 827*1.45%) 63.2655
Federal Income Tax (Refer to Weekly 58
Wage Table for Married Persons, Column
for 2 Allowances)
State Income Tax (827*2.3%) 19.021
Weekly Take Home Pay $446.33
d. Weekly Pay (43,004/52) 827
Less: FICA Tax (827*6.2% + 827*1.45%) 63.2655
Federal Income Tax (Refer to Weekly 58
Wage Table for Married Persons,
Column for 2 Allowances)
State Income Tax (827*2.3%) 19.021
Weekly Take Home Pay $686.71
how stockholders can earn a return on their investments
Answer:
Dividends Capital gainsExplanation:
When people buy shares in a company, they become stockholders. These shares mean they have an ownership interest in the company and when the company makes a certain amount of profit, it may decide to share some of that profit with its shareholders as Dividends.
Another way is through Capital Gains. Capital gains are the result of the shares increasing in value after the stockholder has bought it. For instance, if you bought a Tesla share in December 2016 it would have cost you $50. Today it would be worth $872. That difference of $822 is the capital gain.
Those arguing against being socially responsible might make the claim that costs for social goals are ultimately
higher prices
Assume that a manufacturing company incurred the following costs: Direct labor $ 90,000 Advertising $ 40,000 Factory supervision $ 36,000 Sales commissions $ 15,000 Depreciation, office equipment $ 4,000 Indirect materials $ 5,000 Depreciation, factory building $ 20,000 Administrative office salaries $ 1,000 Utilities, factory $ 2,500 Direct materials $ 106,000 Insurance, factory $ 10,000 Property taxes, factory $ 7,000 What is the total amount of manufacturing overhead
The manufacturing overhead is calculated by taking all the costs that are incurred directly for the manufacturing process of goods.
Costs incurred are as follows:
Direct labor $90,000
Indirect Material $5,000
Depreciation factory building $20,000
Utilities (Factory) $2,500
Direct Materials $106,000
Factory $,7000
Total Manufacturing Overhead = $230,500
Therefore the answer to the question is $230,500
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Tax evasion versus tax avoidance
Money Management and Tax Planning
Money management includes effective tax planning. Your financial plan should include ways to lower your tax liability so you have more money to spend, invest, or donate. The key to effective tax planning is to reduce your taxable income, rather than your gross income, through all appropriate and legally available opportunities.
The act of reducing taxes by deliberately understating income or overstating deductions is called ______
Tax evasion or tax avoidance?
Ayesha is preparing her tax return for the year and is looking at ways to save on her tax bill Ayer women ur time in the day and tended bar at night. Her daytime employer reported her income for her job, but her tips from tending bar at night were not reported to the IRS. Ayesha is thinking about leaving the tip earnings out of her income on her tax return. Is this tax evasion or tax avoidance?
Tax avoidance
Tax evasion
Answer:
1. The act of reducing taxes by deliberately understating income or overstating deductions is called ______
Tax evasion
2. Leaving the tip earnings out of her income on her tax returns is
Tax evasion
Explanation:
Tax evasion is deliberate reduction of gross income either by excluding, understating, omitting income, or overstating deductions. It is not legal. Tax avoidance is managing taxable income by effective tax planning (e.g. through investments, insurance, etc.) so that less tax is paid. It is legal and allowed.
Holly wants to have $200,000 to send a recently born child to college. She sets up a 529 plan and wants to know how much she must invest at the end of the year for the next 18 years if the funds can earn 5 percent. If she can earn 7 percent, how much less will she have to invest each year?
Answer:
The amount Holly will have to invest less each year is $1,226.72.
Explanation:
This can be calculated using the following 3 steps:
Step 1: Calculation of monthly payment at 5% interest rate
This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:
FV = P_5% * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value or the amount Holly wants to have = $200,000
P_5% = Annual investment at 5% = ?
r = Annual interest rate = 5%, or 0.05
n = number of years = 18
Substituting the values into equation (1), we have:
$200,000 = P_5% * (((1 + 0.05)^18 - 1) / 0.05)
$200,000 = P_5% * 28.1323846738217
P_5% = $200,000 / 28.1323846738217
P_5% = $7,109.24
Step 2: Calculation of monthly payment at 7% interest rate
This can be calculated using the formula for calculating the Future Value (FV) of an Ordinary Annuity is used as follows:
FV = P_7% * (((1 + r)^n - 1) / r) ................................. (2)
Where,
FV = Future value or the amount Holly wants to have = $200,000
P_7% = Annual investment at 7% = ?
r = Annual interest rate = 7%, or 0.07
n = number of years = 18
Substituting the values into equation (2), we have:
$200,000 = P_7% * (((1 + 0.07)^18 - 1) / 0.07)
$200,000 = P_7% * 33.9990325104648
P_7% = $200,000 / 33.9990325104648
P_7% = $5,882.52
Step 3: Calculation of the amount Holly will have to invest less each year
Amount to invest less each year = P_5% - P_7%
Amount to invest less each year = $7,109.24 - $5,882.52
Amount to invest less each year = $1,226.72
Therefore, the amount Holly will have to invest less each year is $1,226.72.
Cash flow to stockholders must be positive when: both the cash flow to assets and the cash flow to creditors are positive. the net sale of common stock exceeds the amount of dividends paid. no income is distributed but new shares of stock are sold. the dividends paid exceed the net new equity raised. both the cash flow to assets and the cash flow to creditors are negative.
Answer:
The dividends paid exceeded the net new equity raised.
Explanation:
Productivity is defined as the Group of answer choices amount of goods and services produced from each unit of labor input. number of workers required to produce a given amount of goods and services. amount of labor that can be saved by replacing workers with machines. actual amount of effort workers put into an hour of working time.
Answer:
A,)amount of goods and services produced from each unit of labor input.
Explanation:
Productivity can be regarded as the measure of efficiency in production. It can be calculated by dividing aggregate output by single input over a particular period of time. It should be noted that Productivity is the amount of goods and services produced from each unit of labor input.
Hardigree Corporation uses a job-order costing system. Beginning balance in Work in Process $ 36,000 (1) Raw materials purchased on account $207,000 (2) Direct materials requisitioned for use in production $161,000 (3) Indirect materials requisitioned for use in production $ 42,000 (4) Direct labor wages incurred $ 87,000 (5) Indirect labor wages incurred $101,000 (6) Depreciation recorded on factory equipment $ 42,000 (7) Additional manufacturing overhead costs incurred $ 57,000 (8) Manufacturing overhead costs applied to jobs $219,000 (9) Cost of jobs completed and transferred from Work in Process to Finished Goods $403,000 The total amount of manufacturing overhead actually incurred was: Multiple Choice
Answer:
$242,000
Explanation:
Calculation of the total amount of manufacturing overhead actually incurred:
Particulars Amount
Indirect Materials $42,000
Indirect labor $101,000
Depreciation On factory equipment $42,000
Additional Manufacturing Overhead $57,000
Total Manufacturing Overhead incurred $242,000
What pathway in the Arts av technology a communication cluster does Jason work in
Your generous grandmother has just announced that she’s opened a savings account for you with a deposit of $10,000. Moreover, she intends to make you 9 more similar gifts, at the end of this year, next year, etc. If the savings account pays 8% interest, how much will you have
accumulated at the end of 10 years (one year after the last gift)?
Answer:
$156,454.87
Explanation:
Future Value of an annuity due: FV = Pmt x ((1+r)n -1))/r) x (1+r)
When Payment per period (PMT) = $10,000, Discount Rate per period= 8%,Number of periods (n) = 10
Future Value = $10,000 * ((1+0.08)^10 -1))/0.08) * 1.08
Future Value = $10,000 * [(1.08)^10 - 1 ]/ 0.08 * 1.08
Future Value = $10,000 * 2.15892499727-1/0.08 * 1.08
Future Value = $10,000 * 1.15892499727/0.08 * 1.08
Future Value = $10,000 * 14.486562465875 * 1.08
Future Value = 156454.87463145
Future Value = $156,454.87
The worth of a collection of regular payments at a future date, assuming a given discount rate, or rate of return (ROR) is called the future value of an annuity. (FAPThe present value (PV) of an annuity is the amount of money required to fund a series of future annuity payments (FAP) today.
COMPUTATION OF FUTURE VALUE OF ANNUITY DUE:
[tex]\text{Future Value of an annuity due (FV)} =[ \frac{\text{Pmt} \text{ x } ((1+r)^{n}}{r} -1] \text{ x } (1+r)[/tex]
[tex]\text{Where,}\\\text{Payment per period (PMT)} = 10,000, \\\text{Discount Rate per period(r)} = 0.08,\\\text{Number of periods (n)} = 10[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } ((1+0.08)^{10}}{0.08} -1] \text{ x } (1+0.08)[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } ((1.08)^{10}}{0.08} -1] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } 2.1589}{0.08} -1] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} =[ \frac{\ 10,000 \text{ x } 1.15892499727}{0.08} ] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} =[ 10,000 \text{ x } 14.486562465875} ] \text{ x } (1.08)[/tex]
[tex]\text{(FV)} = 156454.87463145[/tex]
[tex]\text{Future Value} = 156,454.87[/tex]
Therefore, the accumulated amount at the end of 10 years is $156,454.87.
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Jordan Sports Inc. has labor costs and overhead totaling $1.3 million during a given period. The company purchased $9.4 million of materials during the period and used $8.6 million of this amount. What is the amount of total manufacturing cost for the period?
Answer:
Jordan Sports Inc.
The amount of total manufacturing cost for the period is:
= $9.9 million
Explanation:
a) Data and Calculations:
Labor and overhead costs = $1.3 million
Cost of materials used - $8.6 million
Total manufacturing cost = $9.9 million
Cost of materials purchased = $9.4 million
Less Cost of materials used 8.6 million
Ending inventory of materials = $0.8 million
b) The total manufacturing cost for the period is the aggregate of costs of direct materials, direct labor, and manufacturing overheads incurred by Jordan Sports, Inc. to produce its products. It does not include the cost of ending inventory of materials of $0.8 million, which will be consumed in the following period.
Foyle, Inc., had 830,000 shares of common stock issued and outstanding at December 31, 2020. On July 1, 2021, an additional 40,000 shares of common stock were issued for cash. Foyle also had unexercised stock options to purchase 32,000 shares of common stock at $15 per share outstanding at the beginning and end of 2021. The average market price of Foyle's common stock was $20 during 2021. What is the number of shares that should be used in computing diluted earnings per share for the year ended
Answer:
$858,000
Explanation:
Calculation for What is the number of shares that should be used in computing diluted earnings per share for the year ended
Number of shares=830,000 + (40,000 × 6/12) + [32,000 – (32,000 × ($15 ÷ $20)]
Number of shares=830,000 + 20,000+ [32,000 – (32,000 × 0.75)]
Number of shares=830,000 + 20,000+ [32,000 – 24,000]
Number of shares=830,000 + 20,000+ 8,000
Number of shares= 858,000
Therefore the number of shares that should be used in computing diluted earnings per share for the year ended will be 858,000
3) Express 420cm as a percentage of 2m.
Answer:
210%
Explanation:
Answer:
[tex]210 \: {\%}[/tex]
Explanation:
2m = 200cm
[tex]\dfrac{420}{200} \cdot 100 {\%} =210 \: {\%}[/tex]
Dmitri lives in Houston and runs a business that sells guitars. In an average year, he receives $793,000 from selling guitars. Of this sales revenue, he must pay the manufacturer a wholesale cost of $430,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $15,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Dmitri does not operate this guitar business, he can work as a financial advisor, receive an annual salary of $50,000 with no additional monetary costs, and rent out his showroom at the $15,000 per year rate. No other costs are incurred in running this guitar business.
Identify each of Charles's costs in the following table as either an implicit cost or an explicit cost of selling guitars.
a. The wages and utility bills that Charles pays
b. The wholesale cost for the guitars that Charles pays the manufacturer
c. The rental income Charles could receive if he chose to rent out his showroom
d. The salary Charles could earn if he worked as a financial advisor
Answer:
Implicit costs are opportunity costs. They are the cost of the next best alternative that one could have taken from the one they took.
Explicit costs are normal accounting costs which represent the expenses involved in running a business.
a. The wages and utility bills that Charles pays. EXPLICIT COSTS.
These are normal accounting expenses so they are explicit costs.
b. The wholesale cost for the guitars that Charles pays the manufacturer. EXPLICIT COSTS.
Another cost of doing business so this is explicit as well.
c. The rental income Charles could receive if he chose to rent out his showroom. IMPLICIT COST.
By not renting out his showroom and using it instead, he is losing the rental income he could be making so this is an implicit cost.
d. The salary Charles could earn if he worked as a financial advisor. IMPLICIT COST.
Another income he could be making if he wasn't selling guitars. This make it an implicit cost.
Chiquitica Company currently does not use any debt at all? (it is an? all-equity firm). The firm has 4,000,000 shares selling for $50 per share. Its beta is 0.8, and the current risk-free rate is 2%. The expected market return for the coming year is 12%. Chiquitica Company will sell $40,000,000 in corporate bonds with a $1,000 par value. The bonds have a yield to maturity of 12%. When the bonds are sold, the beta of the company will increase to 1.2. Chiquitica will use the entire proceeds of the bond sale to repurchase an equal dollar amount of its equity (buyback shares). The corporate tax rate is 25%.
Required:
a. What is the WACC of Chiquitica Company before the bond sale?
b. What is the market value of debt after the bond sale?
c. What is the market value of equity after the bond sale?
d. What is the weight for equity in the capital structure (the value E/V) - used to compute the WACC?
e. What is the cost of debt after the bond sale?
f. What is the cost of equity after the bond sale?
g. What is the adjusted WACC of Chiquitica Company after the bond sale?
Answer:
a. WACC of the company before bond sale = Risk Free Rate + Beta * (Market return - Risk Free rate)
= 2% + 0.80 * 10%
= 2% + 0.80*0.1
= 2% + 8%
= 10%
b. Market value of Debt after Bond sales = $40,000,000
c. Market Value of equity = Current Value of Equity + Debt * tax rate - Debt
= 50*4,000,000 + 40000000*25% - 40000000
= 200000000 + 10000000 - 40000000
= $170,000,000
d. Weight of equity = Market value of equity / Total value of equity
= 170000000 / 200000000 + 10000000
= 170000000 / 210000000
= 0.80952381
= 81%
e. Cost of debt after bond sale = YTM * (1 - tax Rate)
= 12% * 0.75
= 0.09
= 9%
f. Cost of equity after bond sale = Risk Free Rate + Beta * (Market return - Risk Free rate)
= 2% + 1.20 * 10%
= 0.02 + 0.12
= 0.14
= 14%
g. Adjusted WACC = weight of debt * Cost of debt + weight of equity * cost of equity
= 19% * 9% + 81% * 14%
= 0.0171 + 0.1134
= 0.1305
= 13.05%
Daguio corporation uses direct labor hours in its predetermined overhead rate. at the beginning of the year, the total estimated manufacturing overhead was $224,580. At the end of the year actual direct labor hours for the year were 18,200 hours manufacturing overhead for the year was under applied by 12,100, and the actual manufacturing overhead was $219,580. The predetermined overhead rate for the year must have been closest to:_____
Answer:
$11.40 per direct labor-hour
Explanation:
Calculation for predetermined overhead rate for the year must have been closest to
First step is to calculate the Manufacturing overhead applied using this formula
Manufacturing overhead applied = Actual overhead - Underapplied overhead
Let plug in the formula
Manufacturing overhead applied=$219,580 - $12,100
Manufacturing overhead applied= $207,480
Now let calculate the Predetermined overhead rate using this formula
Predetermined overhead rate = Estimated total manufacturing overhead / Estimated total amount of the allocation base
Let plug in the formula
Predetermined overhead rate = $207,480 / 18,200 direct labor-hours
Predetermined overhead rate = $11.40 per direct labor-hour
Therefore The predetermined overhead rate for the year must have been closest to:$11.40 per direct labor-hour
Chuck, a single taxpayer, earns $79,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule.)
Income and $19,900 in interest from an investment in City of Heflin bonds. (Use the U.S tax rate schedule.)
Required:
a. How much federal tax will he owe?
b. What is his average tax rate?
c. What is his effective tax rate?
d. What is his current marginal tax rate?
Complete this question by entering your answers in the tabs below Req B Req D Req A Req C What is his average tax rate? (Do not round intermediate calculations. Round total tax to 2 decimal places.) Average Tax Rate Choose numeratorChoose denominator Total tax Taxable income 8,479.50 14.88% 57,000
Answer:
Base 98900 79000
tax excess 85525 40125
Excess 13375 38875
% 24% 22%
tax 1 3210 8552.5
tax 2 additional 14605.5 plus 24% of the excess 85.525
4617.5 plus 22% of the excess 40.125
total tax (tax1+tax2) 17815.5__13170
Change in tax
(17.815 - 13.170) / (98,900 - 79,000) =
4.645,5 / 19.900 = 23.34%
Explanation:
Base 98900 79000
tax excess 85525 40125
Excess 13375 38875
% 24% 22%
tax 1 3210 8552.5
tax 2 additional 14605.5 4617.5
total tax 17815.5 13170
Change in tax
(17.815 - 13.170) / (98,900 - 79,000) =
4.645,5 / 19.900 = 23.34%
The following information applies to the questions below.
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Its unadjusted trial balance as of December 31 follows along with descriptions of items a through h that require adjusting entries on December 31.
Additional Information Items
1. An analysis of WTI's insurance policies shows that $3,864 of coverage has expired.
2. An inventory count shows that teaching supplies costing $3,349 are available at year-end.
3. Annual depreciation on the equipment is $15,458.
4. Annual depreciation on the professional library is $7,729.
5. On September 1, WTI agreed to do five courses for a client for $2,800 each. Two courses will start immediately and finish before the end of the year. Three courses will not begin until next year. The client paid $14,000 cash in advance for all five courses on September 1, and WTI credited Unearned Training Fees.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an executive with payment due at the end of the class. At December 31, $12,000 of the tuition has been earned by WTI.
7. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
8. The balance in the Prepaid Rent account represents rent for December.
WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Debit Credit
Cash $ 27,849
Accounts receivable 0
Teaching supplies 10,710
Prepaid insurance 16,068
Prepaid rent 2,143
Professional library 32,133
Accumulated depreciation—Professional library $ 9,641
Equipment 74,968
Accumulated depreciation—Equipment 17,139
Accounts payable 36,341
Salaries payable 0
Unearned training fees 14,000
T. Wells, Capital 68,123
T. Wells, Withdrawals 42,845
Tuition fees earned 109,254
Training fees earned 40,702
Depreciation expense—Professional library 0
Depreciation expense—Equipment 0
Salaries expense 51,415
Insurance expense 0
Rent expense 23,573
Teaching supplies expense 0
Advertising expense 7,498
Utilities expense 5,998
Totals $ 295,200 $295,200
a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.
b. Prepare an adjusted trial balance.
Answer:
1. T-accounts:
Cash
Account Titles Debit Credit
Unadjusted Trial Balance $ 27,849
Accounts receivable
Account Titles Debit Credit
Unadjusted Trial Balance $ 0
Training fees earned 12,000
Teaching supplies
Account Titles Debit Credit
Unadjusted Trial Balance $10,710
Supplies Expense $7,361
Balance 3,349
Totals $10,710 $10,710
Prepaid insurance
Account Titles Debit Credit
Unadjusted Trial Balance $16,068
Insurance Expense $3,864
Balance 12,204
Totals $16,068 $16,068
Prepaid rent
Account Titles Debit Credit
Unadjusted Trial Balance $2,143
Rent expense $2,143
Professional library
Account Titles Debit Credit
Unadjusted Trial Balance $32,133
Accumulated depreciation—Professional library
Account Titles Debit Credit
Unadjusted Trial Balance $ 9,641
Depreciation expense 7,729
Balance $17,370
Totals $17,370 $17,270
Equipment
Account Titles Debit Credit
Unadjusted Trial Balance $74,968
Accumulated depreciation—Equipment
Account Titles Debit Credit
Unadjusted Trial Balance $17,139
Depreciation expense 15,458
Balance $32,597
Totals $32,597 $32,597
Accounts payable
Account Titles Debit Credit
Unadjusted Trial Balance $36,341
Salaries payable
Account Titles Debit Credit
Unadjusted Trial Balance $0
Salaries expense 400
Unearned training fees
Account Titles Debit Credit
Unadjusted Trial Balance $14,000
Training Fees Revenue $5,600
Balance 8,400
T. Wells, Capital
Account Titles Debit Credit
Unadjusted Trial Balance $68,123
T. Wells, Withdrawals
Account Titles Debit Credit
Unadjusted Trial Balance $42,845
Tuition fees earned
Account Titles Debit Credit
Unadjusted Trial Balance $109,254
Training fees earned
Account Titles Debit Credit
Unadjusted Trial Balance $40,702
Unearned Training fee 5,600
Accounts receivable 12,000
Balance $58,302
Depreciation expense—Professional library
Account Titles Debit Credit
Unadjusted Trial Balance $ 0
Accumulated depreciation 7,729
Depreciation expense—Equipment
Account Titles Debit Credit
Unadjusted Trial Balance $ 0
Accumulated depreciation 15,458
Salaries expense
Account Titles Debit Credit
Unadjusted Trial Balance $51,415
Salaries payable 400
Balance $51,815
Insurance expense
Account Titles Debit Credit
Unadjusted Trial Balance $0
Prepaid Insurance 3,864
Rent expense
Account Titles Debit Credit
Unadjusted Trial Balance $23,573
Prepaid rent 2,143
Balance $25,716
Teaching supplies expense
Account Titles Debit Credit
Unadjusted Trial Balance $0
Teaching supplies $7,361
Advertising expense
Account Titles Debit Credit
Unadjusted Trial Balance $7,498
Utilities expense
Account Titles Debit Credit
Unadjusted Trial Balance $5,998
b. WELLS TECHNICAL INSTITUTE
Adjusted Trial Balance
December 31
Account Titles Debit Credit
Cash $ 27,849
Accounts receivable 12,000
Teaching supplies 3,349
Prepaid insurance 12,204
Professional library 32,133
Accumulated depreciation—Professional library $17,370
Equipment 74,968
Accumulated depreciation—Equipment 32,597
Accounts payable 36,341
Salaries payable 400
Unearned training fees 8,400
T. Wells, Capital 68,123
T. Wells, Withdrawals 42,845
Tuition fees earned 109,254
Training fees earned 58,302
Depreciation expense—
Professional library 7,729
Depreciation expense—
Equipment 15,458
Salaries expense 51,815
Insurance expense 3,864
Rent expense 25,716
Teaching supplies expense 7,361
Advertising expense 7,498
Utilities expense 5,998
Totals $330,787 $330,787
Explanation:
a) WELLS TECHNICAL INSTITUTE
Unadjusted Trial Balance
December 31
Debit Credit
Cash $ 27,849
Accounts receivable 0
Teaching supplies 10,710
Prepaid insurance 16,068
Prepaid rent 2,143
Professional library 32,133
Accumulated depreciation—Professional library $ 9,641
Equipment 74,968
Accumulated depreciation—Equipment 17,139
Accounts payable 36,341
Salaries payable 0
Unearned training fees 14,000
T. Wells, Capital 68,123
T. Wells, Withdrawals 42,845
Tuition fees earned 109,254
Training fees earned 40,702
Depreciation expense—Professional library 0
Depreciation expense—Equipment 0
Salaries expense 51,415
Insurance expense 0
Rent expense 23,573
Teaching supplies expense 0
Advertising expense 7,498
Utilities expense 5,998
Totals $ 295,200 $295,200
Which of the following relationships between book value and cash received at sale results in a loss on the sale of a long-term depreciable asset?
a. Book value is greater than cash received.
b. The determination of a gain or loss does not involve the book value.
c. Book value is less than cash received.
d. Book value is equal to cash received.
Answer:
a. Book value is greater than cash received.
Explanation:
Book value of an asset is the cost of an asset less accumulated depreciation
Cash received is the price the asset is sold for.
If the asset is sold for less than its book value, it is sold at a loss
If an asset is sold for more than its book value, it is sold at a gain
Choose the response that correctly completes the following sentence about the Harrisons' refund or balance due. The Harrisons will:
a. Receive a refund that is greater than $ 4,500 but less than $4,800
b. Receive a refund that is greater than $4,200 but less than $4,500
c. Have a balance due that is greater than $200 but less than $500
d. Have a balance due that is greater than $500 but less than $800
Answer:
ni
Explanation:
bnn
Initially, suppose Bellissima uses 1 million hours of labor to produce rye and 3 million hours to produce jeans, while Dolorium uses 3 million hours of labor to produce rye and 1 million hours to produce jeans. Consequently, Dolorium produces 32 million pairs of jeans and 24 million bushels of rye, and Bellissima produces 72 million pairs of jeans and 12 million bushels of rye. Assume there are no other countries willing to trade goods, so in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces.
Dolorium's opportunity cost of producing one bushel of rye is_________ of jeans, and Bellissima's opportunity cost of producing one bushel of rye is _______ of jeans. Therefore, ________ has a comparative advantage in the production of rye and ________ has a comparative advantage in the production of jeans.
Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce_________ bushels, and the country that produces jeans will produce _____ pairs. In the table at the end of this problem, enter each country's production decision on the second row (marked "Production").
Answer:
Bellisima's opportunity cost:
Production of rye per million hours of labor = 24 / 12 = 2 pairs of jeans
Production of jeans per million hours of labor = 12 / 24 = 0.5 bushels of rye
Dolorium's opportunity cost:
Production of rye per million hours of labor = 32 / 8 = 4 pairs of jeans
Production of jeans per million hours of labor = 8 / 32 = 0.25 bushels of rye
Dolorium has a comparative advantage in the production of jeans while Bellisima has a comparative advantage in the production of rye.
If both countries specialize:
Bellisima will produce 48 million bushels of rye.
Dolorium will produce 128 million pairs of jeans.
Total production of rye has increased by 12 million bushels.
Total production of jeans has increased by 24 million pairs.
The following transactions occurred during March 2021 for the Wainwright Corporation. The company owns and operates a wholesale warehouse.
a. Issued 28,000 shares of common stock in exchange for $280,000 in cash.
b. Purchased equipment at a cost of $36,000. $9,000 cash was paid and a notes payable to the seller was signed for the balance owed.
c. Purchased inventory on account at a cost of $86,000. The company uses the perpetual inventory system.
d. Credit sales for the month totaled $110,000. The cost of the goods sold was $66,000.
e. Paid $4,000 in rent on the warehouse building for the month of March.
f. Paid $5,800 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2021. Paid $66,000 on account for the merchandise purchased in 3.
g. Collected $49,500 from customers on account.
h. Recorded depreciation expense of $900 for the month on the equipment.
Required:
Prepare journal entries to record each of the transactions listed above.
Answer:
Wainwright Corporation
Journal Entries:
a. Debit Cash $280,000
Credit Common Stock $280,000
To record the issuance of common stock shares for cash.
b. Debit Equipment $36,000
Credit Cash $9,000
Credit Notes payable $27,000
To record the purchase of equipment.
c. Debit Inventory $86,000
Credit Accounts payable $86,000
To record the purchase of inventory on account.
d. Debit Cost of goods sold $66,000
Credit Inventory $66,000
To record the cost of goods sold.
d. Debit Accounts Receivable $110,000
Credit Sales Revenue $110,000
To record the sale of goods on account.
e. Debit Rent expense $4,000
Credit Cash $4,000
To record the payment of rent for the month.
f. Debit Prepaid Insurance $5,800
Credit Cash $5,800
To record the prepayment of insurance for one year, beginning April 1.
f. Debit Accounts payable $66,000
Credit Cash $66,000
To record the payment on account.
g. Debit Cash $49,500
Credit Accounts Receivable $49,500
To record the collection of cash on account.
h. Debit Depreciation Expense $900
Credit Accumulated Depreciation - Equipment $900
To record the depreciation expense for the month.
Explanation:
Journal entries are used by Wainwright Corporation to record its business transactions as they occur daily. They are the first records of business transactions in the accounting books. They show the accounts to be debited and the others to be credited. They are also used to record adjustments.
Dodson Company traded in a manual pressing machine for an automated pressing machine and gave $8,000 cash. The old machine cost $93,000 and had a net book value of $71,000. The old machine had a fair market value of $60,000. Which of the following is the correct journal entry to record the exchange?
a. Equipment 68,000
Loss on Exchange 11,000
Accumulated Depreciation 22,000
Equipment 93,000
Cash 8,000
b. Equipment 68,000
Equipment 60,000
Cash 8,000
c. Cash 8,000
Equipment 60,000
Loss on Exchange 11,000
Accumulated Depreciation 22,000
Equipment 101,000
d. Equipment 123,000
Accumulated Depreciation 22,000
Equipment 93,000
Cash 8,000
Answer:
a. Dr Equipment 68,000
Dr Loss on Exchange 11,000
Dr Accumulated Depreciation 22,000
Cr Equipment 93,000
Cr Cash 8,000
Explanation:
Preparation of the correct journal entry to record the exchange
Based on the information given the correct journal entry to record the exchange will be
Dr Equipment 68,000
(60,000+8,000)
Dr Loss on Exchange 11,000
(71,000-60,000)
Dr Accumulated Depreciation 22,000
(93,000-71,000)
Cr Equipment 93,000
Cr Cash 8,000
(Being to record the exchange)
Different perspectives on management have been dominant at different times. Place these management perspectives in the order in which they would appear on a timeline of management history. Dominant Management Perspective Timeline Order Management science perspective
A. Humanist perspective
B. Open (collaborative) innovation
C. Contingency view
D. Systems thinking
Answer:
1.) Humanist perspective
2.) Management science perspective
3.) Systems thinking
4.) Contingency view
5.) Open (collaborative) innovation
It should actually be in that order^^^
But u didnt include the Management science perspective in any of the options, so just do this one instead, unless you forgot to put the Management science perspective one.
1.) Humanist perspective (A)
2.) Systems thinking (D)
3.) Contingency view (C)
4.) Open (collaborative) innovation (B)
A, D, C, B
Hope this helped!
Have a supercalifragilisticexpialidocious day!
Bob's Performance Pizza is a small restaurant in Chicago that sells gluten-free pizzas. Bob's very tiny kitchen has barely enough room for the four ovens in which his workers bake the pizzas. Bob signed a lease obligating him to pay the rent for the four ovens for the next year. Because of this, and because Bob's kitchen cannot fit more than four ovens, Bob cannot change the number of ovens he uses in his production of pizzas in the short run.
However, Bob's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Bob lets them know how many workers he needs for each day of the week. In the short run, these workers________ are inputs. inputs, and the ovens are _______ inputs
Answer:
✓VARIABLE input
✓FIXED input
Explanation:
From the question, we are informed about Bob's performance pizza, and how Bob signed a lease obligating him to pay the rent for the four ovens for the next year. We were told that "Bob's kitchen cannot fit more than four ovens" which means the oven is a " Fixed input".
✓✓A fixed input can be regarded as factor of production, resources by an organization/ firms which cannot be altered in short run, because any change will alter the quantity of output that will be produced by the firm. There are alot of firms having several fixed input in short run as regards to production. This could be equipment as well as building.
We were also informed that Bob's decision regarding how many workers to use can vary from week to week because his workers tend to be students. In this case, the workers are the " Variable input"
✓✓variable input can be regarded as factor of production that is not dependent of level of production. It can be changed and this on the basis of how much it is chosen to produce, hence the cost can be changed too. Variable input could be machinery as well as labor
.
Sheridan Company had these transactions during the current period. June 12 Issued 84,000 shares of $1 par value common stock for cash of $315,000. July 11 Issued 3,400 shares of $102 par value preferred stock for cash at $107 per share. Nov. 28 Purchased 1,350 shares of treasury stock for $8,150.
Prepare the journal entries for the Sheridan Company transactions shown above.
On January 1, Marigold Corp. had 61,700 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.
Apr. 1 Issued 12,600 additional shares of common stock for $12 per share.
June 15 Declared a cash dividend of $1.50 per share to stockholders of record on June 30.
July 10 Paid the $1.50 cash dividend.
Dec. 1 Issued 5,600 additional shares of common stock for $11 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $1.70 per share to stockholders of record on December 31.
(a) Prepare the entries, if any, on each of the three dates that involved dividends.
Answer:
The table is shown below
Explanation:
The table is as follows :
Claremore Industries uses a weighted-average process-costing system. All materials are added at the beginning of the process; conversion costs are incurred evenly throughout production. The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion. Total material costs amounted to $220,000; conversion costs were $414,000. The cost of the ending work in process is: Multiple Choice $54,000. $78,000. $114,000. $195,000. None of the answers is correct.
Answer:
$78,000
Explanation:
Calculation for The cost of the ending work in process
First step is to calculate the Material cost per unit.
Material cost per unit = $220,000 / (40,000+15,000)
Material cost per unit= $220,000 / 55,000
Material cost per unit= $4
Second step is to calculate the Conversion cost per unit
Conversion cost per unit= $414,000 / (40,000 + (15,000*40%)
Conversion cost per unit= $414000 / 46000
Conversion cost per unit= $9
Third step is to calculate total cost per equivalent unit
Total cost per equivalent unit= $4 + $9
Total cost per equivalent unit= $13
Fourth step is to calculate the equivalent unit of the ending work in process
Equivalent unit of the ending work in process= 15,000 × 40%
Equivalent unit of the ending work in process= 6,000
Now let calculate cost of the ending work in process
Cost of the ending work in process = 6,000 × $13
Cost of the ending work in process = $78,000
Therefore The cost of the ending work in process is $78,000
Which of the following illustrates economies of scale , diseconomies of scale , and constant returns to scale ?
Liza's average total cost changes from $4.50 to $2.20 when she increases salad production from 7 to 9 an hour. Sam's average total cost changes from $1.30 to $2.80 when he increases smoothie production from 5 to 8 gallons an hour. Tina's average total cost remains at $3 when she increases pizza production from 12 to 13 an hour.
a. Sam faces economies of scale; Liza faces diseconomies of scale; Tina faces constant returns to scale.
b. Sam faces economies of scale; Tina faces diseconomies of scale; Liza faces constant returns to scale.
c. Tina faces economies of scale; Sam faces diseconomies of scale; Liza faces constant returns to scale.
d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scal
Answer: d. Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale
Explanation:
Economies of scale occurs when the increase in production by companies brings about a reduction in cost. Diseconomies of scale is when a rise in production leads to an increase in cost as well. For a constant return to scale, the cost remains the same.
Therefore, the answer will be option D "Liza faces economies of scale; Sam faces diseconomies of scale; Tina faces constant returns to scale".
The owner of a bicycle repair shop forecasts revenues of $236,000 a year. Variable costs will be $69,000, and rental costs for the shop are $49,000 a year. Depreciation on the repair tools will be $29,000. Prepare an income statement for the shop based on thee estimates. The tax rate is 20%. Calculate the operating cash flow by using dollars in minus dollars out, adjusted accounting profits, after tax operating cash flow.
Answer:
A. $71,200
Bi)$100,200
Bii)$100,200
Biii)$100,200
Explanation:
A. Preparation of an income statement for the shop based on thee estimates
INCOME STATEMENT
Revenues $236,000
Expenses:
Variable costs $69,000
Rental cost $49,000
Depreciation $29,000
Total Expenses $147,000
Tax profit $89,000
($236,000-$147,000)
Less Income Tax (at 20%) $17,800
(20%*$89,000)
Net Income $71,200
($89,000-$17,800)
Therefore Net Income will be $71,200
bi) Calculation for the operating cash flow by using dollars in minus dollars out method
Using this formula
Operating cash flow=Revenue-Cash expenses-Taxes
Let plug in the formula
Operating cash flow=$236,000-($69,000+$49,000)-$17,800
Operating cash flow=$236,000-$118,000-$17,800
Operating cash flow=$100,200
Therefore the operating cash flow by using dollars in minus dollars out method will be $100,200
bii) Calculation of the operating cash flow by using adjusted accounting profits,
Adjusted accounting profit=$71,200+$29,000
Adjusted accounting profits=$100,200
Therefore the operating cash flow by using adjusted accounting profits will be $100,200
biii)Calculate the operating cash flow by using after tax operating cash flow
After tax operating cash flow=[$236,000-($69,000+$49,000)]*(1-0.20)+(0.20*$29,000)
After tax operating cash flow=($236,000-$118,000)*0.80+$5,800
After tax operating cash flow=($118,000*0.80)+$5,800
After tax operating cash flow=$94,400+$5,800
After tax operating cash flow=$100,200
Therefore the operating cash flow by using after tax operating cash flow will be $100,200
Suppose that at a local farmers' market there are a large number of vegetable sellers. Some sell zucchini, some sell broccoli, some sell Brussels sprouts, and so on. This week, the zucchini sellers decide to gang together and fix the price of zucchini at a price higher than they would sell otherwise. Which of the following statements is most likely true?
a. The zucchini sellers will not sell any zucchini.
b. The zucchini sellers will be able to earn a lot more money.
c. The zucchini sellers have limited market power because consumers have many alternatives.
d. The zucchini sellers will enjoy a large degree of market power.
Answer: c. The zucchini sellers have limited market power because consumers have many alternatives.
Explanation:
As the Zucchini sellers have fixed the price such that it is the same for all of them, they will have market power in the sale of Zucchini.
In terms of the whole market however, they will have only limited power because even though they control the pricing of Zucchini, there are other alternatives there that they do not control and can be switched to by other consumers.
The true statement is the zucchini sellers have limited market power because consumers have many alternatives.
What is a monopolistic competition?A monopolistic competition is when there are plenty sellers of unidentical goods and services in an industry.
A monopolistic competition has characteristics of both a monopoly and a perfect competition. The demand curve in a monopolistic competition is downward sloping.
Broccoli is a substitute for zucchini. So, if zucchini sellers increase the price of their good, consumers can begin to consumer more broccoli.
To learn more about monopolistic competition, please check: https://brainly.com/question/1622043