Answer:
Explanation:
cost of building = $800,000
business = $800,000 x 40% = $320,000 - $100,000 (depreciation) = $220,000
personal use = $800,000 x 60% = $480,000
adjusted basis:
business = $220,000
personal use = $480,000
decline in FMV:
business = $700,000 x 40% = $280,000
personal use = $700,000 x 60% = $420,000
loss on building (lesser of basis of decline in FMV):
business = $220,000
personal use = $420,000
recovery from insurance company $600,000
business = $600,000 x 40% = $240,000
personal use = $600,000 x 60% = $360,000
gain/loss on building:
business = $175,000 - $220,000 = -$45,000 (loss)
personal use = $360,000 - $420,000 = -$60,000 (loss)
gain/loss on contents:
business = $240,000 - $220,000 = $20,000 (loss)
personal use = $65,000 - $50,000 = $15,000 (gain)
AGI before the fire = $100,000
+ business gain on building $20,000
- business loss on contents ($45,000)
- personal loss on building up to personal gain ($15,000)
+ personal gain on contents $15,000
heather's AGI after the fire = $75,000
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
The Plastic Flowerpots Company has two manufacturing departments, molding and packaging. At the beginning of the month, the molding department has 2,000 units in inventory, 70% complete as to materials. During the month, the molding department started 18,000 units. At the end of the month, the molding department had 3,000 units in ending inventory, 80% complete as to materials. Units completed in the molding department are transferred into the packaging department. Cost information for the molding department for the month follows:
Beginning work in process inventory (direct materials) $1,200
Direct materials added during the month $27,900
Using the weighted-average method, compute the molding department’s (a) equivalent units of production for materials and (b) cost per equivalent unit of production for materials for the month.
Direct Materials
A) Equivalent units of production
B) Cost per equivalent unit of production
Answer:
The Plastic Flowerpots Company
A) Equivalent units of production:
Started and completed = 17,600
Ending WIP = 2,400
Total equivalent units = 20,000
B) Cost per equivalent unit of production:
Cost per equivalent unit = $27,900/20,000
= $1.40
Explanation:
a) Data:
Molding department:
Units started = 18,000
Ending WIP = 3,000
Degree of completion = 80% for WIP
Cost:
Beginning WIP: Direct materials $1,200
Direct materials during the month = $27,900
a) Equivalent units of production for materials:
Beginning WIP = 2,000
Started 18,000
Ending WIP (2,400) (80% of 3,000)
Completed 17,600
Started and completed = 17,600
Ending WIP = 2,400
Total equivalent units = 20,000
b) Cost per equivalent unit of production for materials:
Cost of materials $27,900
Equivalent units = 20,000
Cost per equivalent unit = $27,900/20,000
= $1.395
= $1.40
Imagine you are in the process of buying a new car. Give at least two examples of both qualitative and quantitative data that you would consider in your purchase decision. Explain and defend your choices. Provide at least one academic source other than our course textbooks to support your position and format the document per the CSU Global Writing Center (Links to an external site.). Use the CSU Global Library to find your other source.
Answer with Explanation:
Qualitative attributes would be the Quality of steel used, interior and exterior design of the car, additional features that it offers, etc.
These attributes are qualitative characteristics of cars because they give us feeling of superiority over other similar items. Hence the strength of steel used clearly reflects the strength of car, interior design gives comfort, exterior design increases sense of superiority, additional features that the car offers will give upperhand over other cars.
All these features of car are qualitative because these can not be measured in numbers. On the other hand, Quantitative attributes includes price of spare parts, car and mileage per litre.
Quantitative attributes are reflected in numbers and thus are more desicive in nature.
PLEASE HELP............
"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.
7. What is supply and demand? Give me an example of a supply and demand currently?
Answer:
Supplier sells the goods at various prices, depending on how much consumers want it, and at the rate that the goods are being sold.
For example, now, during the pandemic, face masks are now in very very high demand. Due to this, suppliers has now increased the price of the face masks, as to take advantage of the current situation
Partial adjusted trial balance for Sheffield Corp. at December 31, 2017, includes the following accounts: Retained Earnings $17,000, Dividends $6,700, Service Revenue $36,300, Salaries and Wages Expense $14,000, Insurance Expense $1,880, Rent Expense $4,080, Supplies Expense $1,440, and Depreciation Expense $900. The balance in Retained Earnings is the balance as of January 1. Prepare a retained earnings statement for the year assuming net income is $10,400.
Answer:
Sheffield Corp
Retained Earnings Statement for the year ended December 31, 2017:
Net Income $10,400
Retained Earnings, January 1 17,000
Dividends (6,700)
Retained Earnings, December 31 $20,700
Explanation:
Sheffield's statement of retained earnings shows the net income after tax, which is added to the Retained Earnings at the beginning of the period. Then the dividends paid are deducted to arrive at the Retained Earnings at the end of the period. The statement shows the distribution of net income to stockholders.
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
The Hawthorne Works was a large Western Electric factory with 45,000 employees. During the 1920s and 1930s, Hawthorne Works was the site of some well-known industrial studies. In one of the studies, researchers investigated the impact of different working conditions on worker productivity. Prior to the start of the study, researchers secretly measured workers’ productivity for several weeks. Then researchers chose two workers, who then chose their own teams. The teams were separated from the general workforce and completed their work in different experiment rooms where the researchers could observe them more easily. Over a 5-year period researchers manipulated the structure of the workday for each team (number and duration of breaks and number of hours per shift). For each of these changes in working conditions, the researchers measured the effect on productivity. For some conditions, such as frequent short breaks, workers rebelled by intentionally decreasing productivity. Why did the researchers secretly measure the workers’ productivity before creating the two treatment groups?
Answer:
likely to determine their original behavioural condition
Explanation:
Remember, the main goal of the Hawthorne studies was to investigate the impact of different working conditions on worker productivity. Thus, in other to effectively measure any change in worker productivity, they needed to know the initial or original productivity of the workers.
For example, they observed to see the productivity of workers in poor and good lighting condition.
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
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
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.
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
Peter Heating/Cooling installs and services commercial heating and cooling systems. Peter uses job costing to calculate the cost of its jobs. Overhead is allocated to each job based on the number of direct labor hours spent on that job. Peter estimated that its overhead for the coming year would be $63,750. It also anticipated using 4,250 direct labor hours for the year.What is the predetermined overhead rate based on direct labor hours?
Answer:
Overhead rate = $15 per direct labor hour
Explanation:
given data
overhead for the coming year = $63,750
direct labor hours = 4,250
solution
we get here Estimated manufacturing overhead rate that is express as
Overhead rate = total estimated overhead costs for the period ÷ total amount of allocation base .....................1
put here value
Overhead rate = [tex]\frac{63750}{4250}[/tex]
Overhead rate = $15 per direct labor hour
Assume that the corporate tax rate is 34% and the personal tax rate is 32%. The founders of a newly formed business are debating between setting up the firm as a partnership versus a corporation. The firm will not need to retain any earnings, so all of its after-tax income will be paid out to its investors, who will have to pay personal taxes on whatever they receive. What is the difference in the percentage of the firm's pre-tax income that investors actually receive and can spend under the corporate and partnership forms of organization? Group of answer choices 23.12% 24.74% 19.88% 22.20% 25.43%
Answer:
23.12%
Explanation:
Calculation for the difference in the percentage of the firm's pre-tax income
First step is to multiply the difference between the two tax rate using this formula
Tax rate difference = (1 - Corporate tax rate)*(1 - Personal tax rate)
Tax rate difference= (1 - 34%)*(1 - 32%)
Tax rate difference=0.66*0.68
Tax rate difference= 0.4488*100
Tax rate difference=44.88%
Second step is to find the difference in the percentage of the firm's pre-tax income
Percentage of Pre-tax income difference =(1 - Personal tax rate)-Tax rate difference
Let plug in the formula
Percentage of Pre-tax income difference =(1 - 32%) - 44.88%
Percentage of Pre-tax income difference=0.68-0.4488
Percentage of Pre-tax income difference=0.2312*100
Percentage of Pre-tax income difference=23.12%
Therefore the difference in the percentage of the firm's pre-tax income will be 23.12%
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.
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
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%
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.
Watsontown Yacht Sales has been selling large power cruisers for 25 years. On January 1, 20X1, the company had $5,950,000 in inventory (based on a FIFO valuation). While the number of yachts in Watsontown Yacht Sales’s inventory remained fairly constant throughout 20X1, by December 31, 20X1, yacht prices were 7% higher than at the start of the year. The company reported cost of goods sold for 20X1 of $23,800,000. Required: Calculate the amount of realized holding gains in Watsontown Yacht Sales’s income for 20X1.
Answer: $416,500
Explanation:
The Holding gain will be the amount that inventory increased by in the year.
With the inventory remaining fairly constant and prices increasing to 7% more at the end of the year than the start, the realized holding gain will be;
= 5,950,000 * 7%
= $416,500
The reason this is true is because the closing inventory was higher by 7% than the opening inventory which would have reduced the Cost of Goods sold leading to the Sales income getting a gain of that same 7%.
When making a decision about housing, the first step should be
visiting different housing locations.
gathering information on available housing.
analyzing the availability of housing loans.
comparing the cost of housing alternatives.
Answer:
B: gathering information on available housing
Explanation:
did the quiz :)
The first step is gathering information on available housing when making a decision about housing.
What is decision making process?Decision making process is how an individual or organizations consider various alternative solutions before deciding on the best option that suit the problem at hand.
Steps in decision making includes:
Gathering informationAssessing alternative resolutionImplement the decision takenEvaluate the decision takenHence, the first step is gathering information on available housing when making a decision about housing.
Learn more about decision making process here : https://brainly.com/question/1249089
#SPJ2
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:
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:
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
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.
Olivet, Inc. has the following transactions during the month of May: May 1st: Prepaid three months of rent for $6,000, covering May through July. May 5th: Collected $56,000 payment in advance for work to be performed. $20,000 is performed in May and the rest in June. May 18th: Performed $7,500 of services, receiving $1,800 now and billing client for remainder. May 25th: Received $800 from client billed on May 18th. May 30th: Received utility bill for May of $4,000; will pay in June. What amount of net income would Olivet record for May under the accrual basis of accounting
Answer:
Olivet, Inc.
Net income = $21,500
Explanation:
a) Data and Calculations:
Rent expense = $2,000 ($6,000/3)
Service Revenue:
Advance receipt = $20,000
On account May 18th 7,500
Total Service Revenue $27,500
Utility expense = $4,000
b) Olivert, Inc. Income Statement for the month of May:
Service Revenue $27,500
Less Expenses:
Rent $2,000
Utility 4,000 6,000
Net Income $21,500
b) Olivert's net income of $21,500 represents the difference between the service revenue of $27,500 for the month of May and the expenses totaling $6,000.
Which of the following equations represent the correct formula for computing a taxpayer’s taxable income? Check all that apply. Taxable income = Total income - Exclusions - Adjustments to income - Deductions - Exemptions Taxable income = Gross income - Adjustments to income - Deductions - Exemptions Taxable income = Adjusted gross income - (Deductions + Exemptions) Taxable income = Total income - Exclusions Taxable income = Adjusted gross income - Tax credits Taxable income = Total income + Deductions and Exemptions Taxable income = Gross income - Adjustments Taxable income = Gross income - Exclusions
Answer:
The correct equations which represent the correct formular for computing a taxpayer's taxable income include the following:
1. Taxable income = Total income - Exclusions - Adjustments to income - Deductions - Exemptions
2. Taxable income = Adjusted gross income - (Deductions + Exemptions)
3. Taxable income = Gross income - Exclusions
4. Taxable income = Adjusted gross income - Tax credits
Explanation:
The above formular's are the various equations for calculating or computing the taxpayer's taxable income.
The equations that represent the correct formula for computing a taxpayer’s taxable income include the following:
A. Taxable income = Total income - Exclusions - Adjustments to income - Deductions - Exemptions.
B. Taxable income = Gross income - Adjustments to income - Deductions - Exemptions.
C. Taxable income = Adjusted gross income - (Deductions + Exemptions).
Taxation refers to an involuntary and compulsory fee that are usually levied on individuals or business firms (entities) by the government, in order to generate revenues which are used in funding public institutions and activities.
Taxable income can be defined as an individual or a business firm's earnings (amount of income) that is used by federal or state authorities, as a base to determine the tax to be levied on them.
In conclusion, the equations that represent the correct formula for computing a taxpayer’s taxable income include the following:
[tex]Taxable\; income = Total \;income - Exclusions - Adjustments \;to\; income - Deductions - Exemptions[/tex][tex]Taxable\; income = Gross\; income - Adjustments\; to\; income - Deductions - Exemptions[/tex][tex]Taxable\; income = Adjusted \;gross\; income - (Deductions + Exemptions)[/tex]Read more: https://brainly.com/question/7633204
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.
"I want to expand our social media presence, engaging our customers on their preferred platforms in a cost-effective manner. If I use a rational decision-making process, what can I expect the outcome to be?" "The chances are high that your decision will be biased, especially because the current problem is complex and past patterns will be an inaccurate guide." "Your decision will be based primarily on your preconceptions about social media, what you learn about social media as you begin your research, and Mi Ola’s past experiences engaging with customers online." "You will rate all alternatives against known criteria and choose the course of action that will maximize return to the organization." "You will make a decision that is about 80 percent accurate, which is good enough to meet your objectives given the time and information at your disposal."
Answer:
"You will rate all alternatives against known criteria and choose the course of action that will maximize return to the organization."
Explanation:
Remember, a rational decision-making process is one that is not based on emotions but on carefully considering the facts. In other words, it involves forming conclusions based on examined evidence, even if they go against our initially perceived outcome.
Therefore, in this case, you will rate all alternatives against known criteria and choose the course of action that will maximize return to the organization.
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.
