Answer:
Dr Lease receivable $76,441
Dr Cost of goods sold $42,178
Cr Sales revenue $73,619
Cr Equipment $45,000
Explanation:
Preparation of Journal entry
Based on the information given we were told that leased equipment cost the amount of $45,000 in which the lease agreement as well has a 6 annual payments of the amount of $15,000 while the present value of the lease agreement is the amount of $73,619 and the present value of the residual value is the amount of $2,822 which means that the Journal entry at beginning of the lease will be recorded as:
Dr Lease receivable $76,441
($73,619+$2,822)
Dr Cost of goods sold $42,178
($45,000-$2,822)
Cr Sales revenue $73,619
Cr Equipment $45,000
list down 10,10 real world examples of input and output markets (domestic and international)
Answer:
1) Example of an input market: you are an employee at CVS
input ⇒ labor (your work)
2) Example of an output market: you purchase medicines at CVS
output ⇒ goods (medicines)
3) Example of an input market: you deposit your savings at a bank
input ⇒ capital (savings)
4) Example of an output market: a company gets a loan from the bank
output ⇒ capital (loan)
5) Example of an input market: you have 2 houses and rent one of them
input ⇒ land (real estate)
6) Example of an output market: you rent a room at the university's dorm
output ⇒ land (room)
7) Example of an input market: a foreign company sells oil to the US
input ⇒ land (oil)
8) Example of an output market: an American company exports PVC products
output ⇒ goods (PVC products)
9) Example of an input market: you purchase bonds from Costco
input ⇒ capital (your money)
10) Example of an output market: Costco pays interest (coupons) to its bondholders
output ⇒ capital (interests)
Explanation:
Input factors are the resources used to produce goods and services.
Output factors are the goods or services that are produced using input factors.
A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: Selling price $ 160 Units in beginning inventory 100 Units produced 16,000 Units sold 15,800 Units in ending inventory 300 Variable costs per unit: Direct materials $ 51 Direct labor $ 46 Variable manufacturing overhead $ 8 Variable selling and administrative expense $ 5 Fixed costs: Fixed manufacturing overhead $560,000 Fixed selling and administrative expense $173,800 What is the total period cost for the month under variable costing
Answer:
Period costs= $813,800
Explanation:
Giving the following information:
Units produced 16,000
Variable selling and administrative expense $5
Fixed manufacturing overhead $560,000
Fixed selling and administrative expense $173,800
The period costs are the costs not directly involved in the production.
Period costs= fixed overhead + total variable selling and administrative costs
Period costs= 560,000 + 5*16,000 + 173,800
Period costs= $813,800
Zoe Corporation has the following information for the month of March: Purchases $92,000 Materials inventory, March 1 6,000 Materials inventory, March 31 8,000 Direct labor 25,000 Factory overhead 37,000 Work in process, March 1 22,000 Work in process, March 31 23,500 Finished goods inventory, March 1 21,000 Finished goods inventory, March 31 30,000 Sales 257,000 Sales and administrative expenses 79,000
Required:
Prepare (a) a statement of cost of goods manufactured, (b) an income statement for the month ended March 31, and (c) the inventory section of the balance sheet.
Refer to the Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. "Less" or "Plus" will automatically appear if it is required. You will not need to enter colons (:) on the financial statements.
Answer:
Zoe Company
a) Statement of Cost of Goods Manufactured:
Direct materials cost $90,000
Direct labor 25,000
Factory overhead 37,000
Work in process, March 1 22,000
Work in process, March 31 (23,500)
Cost of goods manufactured $150,500
b) Income Statement for the month ended March 31:
Sales $257,000
Finished goods inventory, March 1 $21,000
Cost of goods manufactured 150,500
Finished goods inventory, March 31 (30,000)
Cost of goods sold $141,500
Gross profit $115,500
Sales and administrative expenses 79,000
Net Income $36,500
c) Inventory Section of the Balance Sheet as of March 31:
Current Assets:
Inventory:
Materials inventory, March 31 $8,000
Work in process, March 31 23,500
Finished goods inventory, March 31 30,000
Total inventory $61,500
Explanation:
a) Data and Calculations:
Purchases $92,000
Materials inventory, March 1 6,000
Materials inventory, March 31 8,000
Direct labor 25,000
Factory overhead 37,000
Work in process, March 1 22,000
Work in process, March 31 23,500
Finished goods inventory, March 1 21,000
Finished goods inventory, March 31 30,000
Sales 257,000
Sales and administrative expenses 79,000
b) Materials inventory, March 1 $6,000
Purchases 92,000
Materials inventory, March 31 8,000
Direct materials cost $90,000
Lionel is an unmarried law student at State University Law School, a qualified educational institution. This year Lionel borrowed $24,000 from County Bank and paid interest of $1,440. Lionel used the loan proceeds to pay his law school tuition. Calculate the amounts Lionel can deduct for higher education expenses and interest on higher-education loans under the following circumstances: (Leave no answer blank. Enter zero if applicable.) b. Lionel's AGI before deducting interest on higher-education loans is $79,000.
Answer:
Since 2019, the deduction limit for interest expense deductions on qualified higher education loans is $2,500. In order to qualify for this deduction, the taxpayer's adjusted AGI must be less than $85,000 for single filers (Lionel's income is below the threshold).
So Lionel will be able to deduct $1,440 as interest expense (above the line deduction).
Lionel can also deduct $2,500 form the American Opportunity Tax Credit for higher education expenses.
Ortho Company experienced the following events during its first- and second-year operations:
Year 1 Transactions: Acquired $68,000 cash from the issue of common stock.
Borrowed $36,000 cash from the National Credit Union.
Earned $59,000 of cash revenue.
Incurred $43,000 of cash expenses.
Paid a $7,000 cash dividend.
Paid $37,000 cash to purchase land.
Year 2 Transactions:
Acquired $50,000 cash from the issue of common stock.
Borrowed $20,000 cash from the National Credit Union.
Earned $85,000 of cash revenue.
Incurred $62,000 of cash expenses.
Paid a $2,000 cash dividend.
Paid $25,000 cash to purchase land.
Required
a. Record the transactions in an accounting equation like the equation shown next.
b. Record the amounts of revenue, expense, and dividends in the Retained Earnings column.
c. Provide the appropriate titles for these accounts in the last column of the table.
d. Show the totals at the end of Year 1 and use these totals as the beginning balances for the second accounting cycle.
d-1. Prepare an income statement for Year 1 and Year 2.
d-2. Prepare a stockholders' equity for Year 1 and Year 2.
d-3. Prepare a balance sheet for Year 1 and Year 2.
d-4. Prepare a statement of cash flows for Year 1 and Year 2.
Answer:
Due to space limitations, I used an excel spreadsheet to answer questions a, b, c and d.
d1)
Ortho Company
Income Statements
For years 1 and 2
Year 1 Year 2
Service revenue $59,000 $85,000
Expenses ($43,000) ($62,000)
Net income $16,000 $23,000
d2)
Ortho Company
Statement of Stockholders' Equity
For years 1 and 2
Year 1 Year 2
Beginning balance $0 $77,000
Common stocks issued $68,000 $50,000
Net income $16,000 $23,000
Subtotal $84,000 $150,000
Dividends paid ($7,000) ($2,000)
Ending balance Dec. 31, year 1 $77,000 $148,000
d3)
Ortho Company
Balance Sheet
For years 1 and 2
Year 1 Year 2
Assets:
Cash $76,000 $142,000
Land $37,000 $62,000
Total assets $113,000 $204,000
Liabilities:
Notes payables $36,000 $56,000
Stockholders' Equity:
Common stock $68,000 $118,000
Retained earnings $9,000 $30,000
Total liabilities + equity $113,000 $204,000
d4)
Ortho Company
Statement of cash flows
For years 1 and 2
Year 1 Year 2
Cash flows from operating act.
Net income $16,000 $23,000
No adjustments required $0 $0
Net cash provided by OA $16,000 $23,000
Cash flows from investing act.
Purchase of land ($37,000) ($20,000)
Net cash provided by IA ($37,000) ($20,000)
Cash flows from financing act.
Issuance of common stocks $68,000 $50,000
Dividends paid ($7,000) ($2,000)
Issuance of long term debt $36,000 $20,000
Net cash provided by FA $97,000 $68,000
Net increase in cash $76,000 $66,000
Initial cash balance $0 $76,000
Ending cash balance $76,000 $142,000
a - d. Recording the transactions in an accounting equation form for Ortho Company is as follows:
Year 1: Cash + Land = Note + Common + Retained
Payable Stock Earnings
Stock issuance $68,000 $68,000
Loan $36,000 $36,000
Cash revenue $59,000 $59,000
Cash expenses -43,000 -43,000
Dividends payment -7,000 -7,000
Land purchase -37,000 $37,000
Total $76,000 $37,000 $36,000 $68,000 $9,000
Year 2: Cash + Land = Note + Common + Retained
Payable Stock Earnings
Beginning balance $76,000 $37,000 $36,000 $68,000 $9,000
Stock issuance $50,000 $50,000
Loan $20,000 $20,000
Cash revenue $85,000 $85,000
Cash expenses -62,000 -62,000
Dividends payment -2,000 -2,000
Land purchase -25,000 $25,000
Total $142,000 $62,000 $56,000 $118,000 $30,000
The appropriate titles in the Retained Earnings column are Revenue, Expenses, Dividends. Space does not permit them to be indicated on a separate column.
d-1. The Income Statements for Year 1 and Year 2 are as follows:Year 1 Year 2
Revenue $59,000 $85,000
Expenses 43,000 62,000
Net income $16,000 $23,000
d-2. Stockholders' Equity for Year 1 and Year 2 are as follows:
Year 1 Year 2
Common stock $68,000 $68,000
Additional stock 50,000
Retained earnings $9,000
Net income $16,000 $23,000
Dividends 7,000 2,000
Retained earnings $9,000 $30,000
d-3. Balance Sheets for Year 1 and Year 2Year 1 Year 2
Assets:
Cash $76,000 $142,000
Land 37,000 62,000
Total assets $113,000 $204,000
Liabilities:
Notes Payable $36,000 $56,000
Equity:
Common Stock $68,000 $118,000
Retained earnings 9,000 30,000
Total equity $77,000 $148,000
Total equity and
liabilities $113,000 $204,000
d-4 Statement of Cash Flows:Operating Activities:
Year 1 Year 2
Net income $16,000 $23,000
Financing Activities:
Stock issuance $68,000 $50,000
Dividends paid -7,000 -2,000
Loan 36,000 20,000
Cash from financing $97,000 $68,000
Investing Activities:
Land purchase -$37,000 -$25,000
Net Cash Flows $76,000 $66,000
Learn more about preparing the financial statements here: https://brainly.com/question/24498019
The following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $115,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. On November 1, 2021, the company paid its landlord $5,400 representing rent for the months of November through January. Prepaid rent was debited. On August 1, 2021, collected $10,800 in advance rent from another company that is renting a portion of Microchip’s factory. The $10,800 represents one year’s rent and the entire amount was credited to deferred rent revenue. Depreciation on office equipment is $4,050 for the year. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $7,550. The company records vacation pay as salaries expense. Microchip began the year with $1,850 in its asset account, supplies. During the year, $6,200 in supplies were purchased and debited to supplies. At year-end, supplies costing $3,100 remain on hand. Required: 1. & 2. If Microchip’s accountant employed reversing entries for accruals, prepare the adjusting entries at the end of 2021 for only those entries that would be reversed. 3. Prepare the appropriate reversing entries at the beginning of 2022.
Answer:
Reversing entries are given below
Explanation:
The accountant would reverse the adjusting entries of the accrual of salaries payable and the accruals of interest receivable.
December 31, 2021 (To record interest receivable)
DEBIT CREDIT
Interest receivable [$115,000*8%*3/12] 2300
Interest revenue 2300
December 31, 2021 (To record salaries payable)
DEBIT CREDIT
Salaries expense 7550
Salaries payable 7550
January 1, 2022 (To reverse the entry recorded on December 31, 2021)
DEBIT CREDIT
Interest revenue 2300
Interest receivable 2300
January 1, 2022 (To reverse the entry recorded on December 31, 2021)
DEBIT CREDIT
Salaries payable 7550
Salaries expense 7550
Rhonda Corporation's relevant range of activity is 3,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Average Cost per Unit Direct materials $ 5.40 Direct labor $ 3.55 Variable manufacturing overhead $ 1.70 Fixed manufacturing overhead $ 4.05 Fixed selling expense $ 0.60 Fixed administrative expense $ 0.40 Sales commissions $ 1.00 Variable administrative expense $ 0.40 If 5,000 units are produced and sold, the fixed manufacturing overhead cost per unit is closest to:
Answer:
Unitary fixed overhead= $3.24
Explanation:
Giving the following information:
When it produces and sells 4,000 units, its average costs per unit are as follows:
Fixed manufacturing overhead $ 4.05
First, we need to calculate the total fixed overhead:
Total fixed overhead= 4.05*4,000= $16,200
Now, for 5,000 units:
Unitary fixed overhead= 16,200/5,000
Unitary fixed overhead= $3.24
Some companies cross-list their shares, meaning that their stock trades on more than one stock exchange. For example, BlackBerry Limited, the maker of BlackBerry mobile devices, trades on both the Toronto Stock Exchange and NASDAQ. If its price in Toronto is Canadian dollars per share and anyone can exchange Canadian dollars for U.S. dollars at the rate of per , what must BBRY's price be on NASDAQ?
Answer:See explanation
Explanation:
Your question isn't complete. But let's slot some values into the question in order to give you an idea on how to solve it.
Some companies cross-list their shares, meaning that their stock trades on more than one stock exchange. Forexample, BlackBerry Limited, the maker of BlackBerry mobile devices, trades on both the Toronto StockExchange and NASDAQ. If its price in Toronto is 56 Canadian dollars per share and anyone can exchange Canadian dollars for U.S. dollars at the rate of US$0.87 per C$1.00, what must BBRY's price be on NASDAQ?
Price in Toronto is given as:
= C$ 56 per share
Exchange rate is given as:
= US $ 0.87 per C$ 1.00
Therefore, BBRY's price be on NASDAQ will be:
= (56/1) x 0.87
= $48.72
Hence, BBRY's price be on NASDAQ will be $48.72
A software company that installs systems for inventory control using RFID technology spent $760,000 per year for the past 3 years in developing their latest product. The company optimistically hopes to recover its investment in 5 years on a single contract beginning immediately (year 0). The company is negotiating a contract that will pay $280,000 now and a to-be-agreed-upon annual increase of a constant amount each year through year 5. How much must the income increase (an arithmetic gradient) each year if the company wants to realize a return of 9% per year
Answer:
$2,096,924.50
Explanation:
Present value of an investment and cash inflows is measured at present time means year 0. Gradient is also valued at present time.
$760,000 each year at 9% for next 3 years is annuity payment and its Present value can be calculated as follow
PV of Annuity = P + P x ( 1 - ( 1 + r )^-(n-1) / r
Where
P = $760,000
r = 9%
n = 3 years
Placing values in the formula
PV of Annuity = $760,000 + $760,000 x ( 1 - ( 1 + 9% )^-(3-1) / 9%
PV of Annuity = $760,000 + $760,000 x 1.759111
PV of Annuity = $760,000 + $1,336,924.50
PV of Annuity = $2,096,924.50
Use the business transactions below to:
1. Stockholders invest $40,000 in cash in starting a real estate office operating as a corporation.
2. Purchased $500 of supplies on credit.
3. Purchased equipment for $25,000, paying $3,500 in cash and signed a 30-day, $21,500, note payable.
4. Real estate commissions billed to clients amount to $4,000.
5. Paid $700 in cash for the current month's rent.
6. Paid $250 cash on account for office supplies purchased in transaction 2.
7. Received a bill for $800 for advertising for the current month.
8. Paid $2,500 cash for office salaries.
9. Paid $1,200 cash dividends to stockholders.
10. Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.
Answer:
We have to journalize the transactions:
1. Stockholders invest $40,000 in cash in starting a real estate office operating as a corporation.
Account Debit Credit
Cash 40,000
Common Stock 40,000
2. Purchased $500 of supplies on credit.
Account Debit Credit
Supplies 500
Accounts Payable 500
3. Purchased equipment for $25,000, paying $3,500 in cash and signed a 30-day, $21,500, note payable.
Account Debit Credit
Equipment 25,000
Cash 3,500
Accounts Payable 3,500
4. Real estate commissions billed to clients amount to $4,000.
Account Debit Credit
Accounts Receivable 4,000
Service Revenue 4,000
5. Paid $700 in cash for the current month's rent.
Account Debit Credit
Cash 700
Rent Expense 700
6. Paid $250 cash on account for office supplies purchased in transaction 2.
Account Debit Credit
Cash 250
Accounts Payable 250
7. Received a bill for $800 for advertising for the current month.
Account Debit Credit
Advertising Expense 800
Accounts Payable 800
8. Paid $2,500 cash for office salaries.
Account Debit Credit
Cash 2,500
Wages Expense 2,500
9. Paid $1,200 cash dividends to stockholders.
Account Debit Credit
Cash 1,200
Dividends 1,200
10. Received a check for $2,000 from a client in payment on account for commissions billed in transaction 4.
Account Debit Credit
Cash 2,000
Accounts Receivable 2,000
anson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts receivable $13,800 Inventory 42,000 Patent 12,200 Investments 30,700 Prepaid insurance 7,700 Notes receivable, due 2024 51,800 Investments consist of treasury bills that were purchased in November, 2021, and mature in January, 2022. Prepaid insurance is for two years. What amount should be included in the current assets section of Janson’s December 31, 2021, balance sheet?
Answer:
$90,350
Explanation:
Accounts receivable $13,800 ⇒ current assets
Inventory 42,000 ⇒ current assets since the company expects to sell them in less than a year
Patent 12,200 ⇒ intangible non-current asset
Investments 30,700 ⇒ current asset since they mature in less than one month
Prepaid insurance 7,700 ⇒ only half of it is considered a current asset since it covers a 2 year period
Notes receivable, due 2024 51,800 ⇒ non-current asset
total current assets = $13,800 + $42,000 + $30,700 + ($7,700/2) = $90,350
Before the year began, Jupiter Manufacturing estimated that manufacturing overhead for the year would be $200,600 and that 25,600 direct labor hours would be worked. Actual results for the year included the following: Actual manufacturing overhead cost $182,500 Actual direct labor hours 20,000 If the company allocates manufacturing overhead based on direct labor hours, the manufacturing overhead for the year would have been ? (Round intermediary calculations to the nearest cent.) A. $18,100 overallocated. B. $18,100 underallocated. C. $25,700 overallocated. D. $25,700 underallocated.
Answer:
$25,700 Underallocated.
Explanation:
Calculation for the manufacturing overhead for the year
First step is to find the Predetermined overhead allocation rate using this formula
Predetermined overhead allocation rate = Manufacturing overhead/ Direct labor hours
Let plug in the formula
Predetermined overhead allocation rate=$200,600/25,600
=7.8359375
Second step is to multiply Predetermined overhead allocation rate by Actual direct labor hours
7.84*20,000
=$156,800
Lasr step is to find the manufacturing overhead for the year
Manufacturing overhead=$182,500-$156,800
Manufacturing overhead=$25,700 Underallocated
Therefore the manufacturing overhead for the year is $25,700 Underallocated
Identify the accounting concept that describes each situation below. Do not use any concept more than once. a. Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) choose the accounting concept b. Indicates that personal and business recordkeeping should be separately maintained. choose the accounting concept c. Ensures that all relevant financial information is reported. choose the accounting concept d. Assumes that the dollar is the "measuring stick" used to report on financial performance. choose the accounting concept e. Requires that accounting standards be followed for all items of significant size. choose the accounting concept f. Separates financial information into time periods for reporting purposes. choose the accounting concept g. Requires recognition of expenses in the same period as related revenues. choose the accounting concept h. Indicates that fair value changes subsequent to purchase are not recorded in the accounts.
Answer:
a. Is the rationale for why plant assets are not reported at liquidation value. (Do not use the historical cost principle.) - Going concern assumption
The going concern assumption, as the name implies, assumes that the firm will continue to operate in the foreseable future, and that it will be able to meet its financial obligations.
b. Indicates that personal and business recordkeeping should be separately maintained - Economic entity assumption
The economic entity assumption assumes that the firm is a separate entity from the owner, even if legally it is not so. For example, in accounting, a sole proprietorship is a separate entity even if under legal terms it is not so.
c. Ensures that all relevant financial information is reported - Full disclosure principle
This principle establishes that all financial information that may be relevant for the stockholders of the firm should be disclosed.
d. Assumes that the dollar is the "measuring stick" used to report on financial performance - Monetary unit assumption
This principle establishes that the value of all financial information should be expressed in monetary terms (for example, the dollar).
e. Requires that accounting standards be followed for all items of significant size - Materiality
The principle of materiality establishes that all financial information related to relevant items or transactions should be disclosed.
When the item or transaction is not considered to be relevant, then, it does not have to be disclosed.
For example, for a large multinational corporation, the purchase of a few pencils is not relevant, and does not have to be disclosed under the principle of materiality.
f. Separates financial information into time periods for reporting purposes - Periodicity
The periodicity principle relates to the fact that financial information is organized in specific periods of time, and these periods are carried out over time. These periods can go from daily to yearly.
g. Requires recognition of expenses in the same period as related revenues. choose the accounting concept - Matching principle
The matching principle establishes that revenues should be recognized when the associated expenses have been spent.
h. Indicates that fair value changes subsequent to purchase are not recorded in the accounts. - Measurement principle
The measurment principle of accounting focuses on past values, not on current values, although current market values may be also recognized.
Minarski Electronics sells computers and provides hardware maintenance services. On April 1st, Minarski sold a package deal containing a computer and a one-year unlimited maintenance/repair service for the computer at a bundle price of $1,000. If sold separately, the computer costs $984 and the one-year unlimited maintenance/repair service costs $216. How much revenue does Minarski Electronics recognize for the month ended April 30th, assuming that revenue is accrued monthly
Answer:
$835
Explanation:
Calculation for the amount of revenue that Minarski Electronics recognize
First step is to find the Total cost amount if sold separately
Total cost if sold separately = 984+ 216
Total cost if sold separately= 1200
Second step is to find the Percentage of computer
Percentage of Computer = 984/1,200
Percentage of Computer = 0.82
Percentage of Computer =82%
Third step is to find the Percentage of maintenance
Percentage of maintenance = 216/1,200
Percentage of maintenance=0.18*100
Percentage of maintenance=18%
Next step is to calculate for the Revenue to be recognized for both computer and Maintenance service costs
Computer Revenue= 1,000 * 82%
Computer Revenue= 820
Maintenance service costs revenue =(18% * 1,000)/12
Maintenance service costs revenue =180/12
Maintenance service costs revenue =15
Last step is to find the Total amount to be recognized
Total amount to be recognized = 820 + 15
Total amount to be recognized=$835
Therefore the amount of revenue that Minarski Electronics will recognize is $835
Select TWO Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis for the building and the related land is $450,000. On March 12 of the current year, state authorities notify Mitchell that his property is going to be condemned so that the highway can be widened. On June 20, Mitchell’s property is officially condemned, and he receives an award of $625,000. Because Mitchell’s business was successful in the past, he would like to reopen the restaurant in a new location. a. What is the earliest date Mitchell can acquire a new restaurant and qualify for § 1033 postponement? b. On June 30, Mitchell purchases land and a building for $610,000. Assuming that he elects the maximum postponement amount, what is his recognized gain? c. What is Mitchell’s adjusted basis for the new land and building? d. If he does not elect § 1033, what are Mitchell’s recognized gain and adjusted basis? e. Suppose he invests the $625,000 condemnation proceeds in the stock market on June 30. What is Mitchell’s recognized gain?
Answer:
a. The earliest date that Mitchell can acquire a new restaurant and qualify for § 1033 postponement is March 12
b. On June 30
Mitchell purchases land and a building for $610,000
Recognized gain = Condemnation proceed - Adjusted basis
= $625,000 - $450,000
= $175,000
Mitchell's recognized gain is limited to $625,000 - $610,000 = $15,000
Thus, Mitchell's recognized gain is $15,000
c. Adjusted basis for the new land and building = Cost of land and building - Postponed gain = $610,000 - $160,000 = $150,000. Thus, adjusted basis for the new land and building purchase by Mitchell is $450,000
d. Realized gain = $625,000 - $450,000 = $175,000. Thus, the unrealized gain by not option for section § loss = $175,000 and the adjusted basis for new land and building is $610,000
e. Under the section § 1033 , as no replacement property to purchased. Mitchell's recognized gain = $175,000
QUESTION 3 of 10: You worked the following hours this week: Monday 8 AM to 5 PM, Tuesday 9 AM to 3 PM, Thursday 8:30 AM to 2:15 PM. You get a 30-minute unpaid lunch break every work day. How many hours will you be paid for this week?
Answer:
19 hours
Explanation:
8 and a half
5 and a half
5 and 15
The semiconductor business of the California Microtech Corporation qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $8 million. The loss from operations of the segment during 2021 was $3.6 million. Pretax income from continuing operations for the year totaled $5.8 million. The income tax rate is 25%. The estimated fair value of the segment's assets, less costs to sell, on December 31 was $7 million. Prepare the lower porti
Answer:
Net Income = $1,650,000
Explanation:
"The missing question is Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign"
California Micro-tech Corporation
Partial Income Statement
For the year ended December 31, 2021
Income from continuing operation $5,800,000
before Income taxes
- Income tax expenses $1,450,000
($5,800,000 * 25%)
Income from Continuing Operation A $4,350,000
Discontinued Operations
- Loss from operation discontinued $3,600,000
component
Income tax benefit $900,000
($3,600,000 * 25%)
Loss on discontinued operation B - $2,700,000 -$2,700,000
Net Income (A + B) $1,650,000
Cormorant Corp. manufactured equipment at a cost of $600,000 and leased it to Boreal Corp. on January 1, year 9 for an eight-year period expiring December 31, year 16. Eight years is considered a major part of the asset’s economic life. Equal payments under the lease are $60,000 and are due on January 1 and July 1 of each year. The first payment was made on January 1, year 9. The list selling price of the equipment is $750,000 and the implicit rate used by Cormorant is 8%. What amount of selling profit or loss should Cormorant report for the year ended December 31, year 9?
Answer:
$127,104 profit
Explanation:
Given the following :
Cost of manufacture = $600,000
Periodic payment made semianually = $60,000
Implicit interest rate (i) = 8% ; hence semiannual interest rate = 8% / 2 = 0.04
Number of lease years = 8 years ; period = (2 × 8) = 16 periods
Semiannual payment * (present value of annuity due factor)
Using the present value of annuity due factor table, PVAD(4%, 16) = 12.1184
Hence,
$60,000 × 12.1184 = 727, 104
Profit or loss made:
$727,104 - Cost of manufacture
$727,104 - $600,000
= $127,104 profit
g On January 2, 2010, Howdy Doody Corporation purchased 12% of Ranger Corporation's common stock for $50,000 and classified the investment as available for sale. Ranger's net income for the years ended December 31, 2010 and 2011, were $10,000 and $50,000, respectively. During 2011, Ranger declared and paid a dividend of $60,000. There were no dividends in 2010. On December 31, 2010, the fair value of the Ranger stock owned by Howdy Doody had increased to $70,000. How much should Howdy Doody show in the 2011 income statement as income from this investment
Answer:
$7,200
Explanation:
The calculation of income that should be presented in the income statement is shown below:-
Dividend Received = Given percentage × Paid dividend
= 12% × $60,000
= $7,200
Therefore for computing the income that should be presented in the income statement we simply applied the above formula.
Therefore the above is the answer
A Project Charter includes which of the following?
O VOC to CTQ Flow
O Problem Statement
O Goal Statement
O Both B & C
Frank Dewey Esquire from the firm of Dewey, Cheatum, and Howe, has been offered an upfront retainer of $30,000 to provide legal services over the next 12 months to Taggart Transcontinental. In return for this upfront payment, Taggart Transcontinental would have access to 8 hours of legal services from Frank for each of the next 12 months. Frank's normal billable rate is $250 per hour for legal services. Assuming that Dewey's cost of capital is 12% EAR, then the IRR of his retainer offer is closest to:
Answer:
-39.3%
Explanation:
Calculation for the IRR of his retainer offer
First step is to find Opportunity Cost
Opportunity Cost= 8 hours × $250 per hour
Opportunity Cost = $2,000
Since we have known the monthly Opportunity Cost the second step will be to compute IRR
Present Value= $30,000
N = 12
PMT = -2,000
FV = 0
Now let compute the IRR
IRR= -3.276502% × 12
IRR= -39.3180% Approximately - 39.3%
Therefore the IRR of his retainer offer is closest to: - 39.3%
On March 12, Klein Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Klein uses the perpetual inventory system and the gross method of accounting for sales. On March 15, Babson returns some of the merchandise. The selling price of the merchandise is $600 and the cost of the merchandise returned is $350. Babson pays the invoice on March 20, and takes the appropriate discount. The journal entry that Klein makes on March 20 is:
Answer:
Cash 7,056
Sales discounts 144
Accounts receivable 7,200
Explanation:
The journal entry is shown below:
Cash $7,056
Sales discounts $144 ($7,200 × 2%)
To Accounts receivable $7,200 ($7,800 - $600)
(Being the cash is recorded)
Here it debited the cash and sales discount as it increased the assets and discounts also credited the account receivable as it decreased the assets
Presented below is financial information for two different companies.
Compute the missing amounts.
Windsor Company Sheridan Company
Sales revenue 96,570
Sales returns and allowances 5,420
Net sales 81,960 94,350
Cost of goods sold 55,730
Gross profit 40,900
Operating expenses 15,070 21,380
Net income 19,520
Answer and Explanation:
The computation of missing amounts is shown below:-
a. Net Sales = Sales revenue - Sales returns and allowances
$81,960 = $96,570 - Sales returns and allowances
Sales returns and allowances = $96,570 - $81,960
= $14,610
b. Gross Profit = Net sales - Cost of goods sold
= $81,960 - $55,730
= $26,230
c. Net income = Gross Profit - Operating expenses
= $26,230 - $15,070
= $11,160
d. Sales revenue = Net sales + Sales returns and allowances
= $94,350 + $5,420
= $99,770
e. Cost of goods sold = Net sales - Gross Profit
= $94,350 - $40,900
= $53,450
Accounts with a normal credit balance include: (select all that apply)
A) Accounts receivable
B) Allowance for Uncollectible Accounts
C) Bad Debt Expense
D) Cash
E) Sales Revenue
Answer:
C). Bad Debt Expense
E). Sales Revenue
Explanation:
As per the question, the accounts that are kept with a normal credit balance includes 'bad debt expense' and 'sales revenue account.' Bad debt account is characterized as the account made for noting the expenses incurred in a business due to incollectibility of debts from the debtors or customers who were sold the goods or money on credit and are unable to pay the amount. While sales revenue account is made for the revenue generated by the company from either provision of services or sale of goods. It includes both the cash and a part of it is also held for sales revenue remunerated on credit. Thus, options C and E are the correct answers.
The accounts or accounting is referred to as the method of bookkeeping where the individual ledger pages are maintained to record the individual accounts of assets, liabilities, expenses, and incomes. The normal balance of each account is defined as either a debit balance or a credit balance.
The accounts with a normal credit balance are:
Option C). Bad Debt Expense
Option E). Sales Revenue
Reasons:
The bad debt is the account that is made for recording the expenses incurred by the business due to the uncollected amount of debts from the credit customers or the debtors of the business.The sales revenue account is maintained to record all the revenues generated by the business from the sale of goods or providing services. It records the credit sale as well as cash sale of goods.As per the general accounting rules, all the revenues and losses have a normal credit balance.
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Kroger, a grocery store chain, sells thousands of products from hundreds of
different producers that are shipped through a variety of shipping companies
and stored at various warehouses facilities. The coordinated efforts with each
channel partner at each touch point takes efficiency and communication. In
order for the process to run smoothly, which three functions do channel
partners need to perform to efficiently flow products and titles to the
consumer to get payments back to producers?
O transactional, logistical, and facilitating functions
o facilitating, commercial, and institutional functions
logistical, commercial, and transactional functions
Answer:
transactional, logistical, and facilitating functions
Explanation:
Peter Plaintiff is citizen of Kentucky. He drives to Tennessee and purchases a lawn mover from Lousy Lawn Mowers, Inc. Peter Plaintiff returns to Kentucky and is seriously injured when the lawnmower explodes during normal use. Lousy Lawn Mowers, Inc. does not do business in Kentucky and is incorporated in Delaware. May Peter Plaintiff bring a lawsuit against Lousy Lawn Mowers, Inc. in a state or federal court, and why?
Answer:
state court.
Explanation:
It is a matter of diversity of citizenship between the two parties in different states. This case falls under federal jurisdiction only if the matter is federal law or statute, or if the amount is above $ 75,000. This is a product liability case, which is a state case and is therefore being heard in state courts (Kentucky) because the plaintiff is a citizen of the state of KentuckyMatch the following activities to their effect on the general ledger accounts. Drag and drop application.
Allocate overhead costs to jobs Debit Raw Materials Inventory
Pay factory utilities Credit Factory Overhead
Purchase indirect material Debit Factory Overhead
Use indirect materials Debit Work in Process Inventory
Direct labor used Credit Raw Materials Inventory
Answer:
1. Allocate overhead costs to jobs: Credit Factory Overhead.
2. Pay factory utilities: Debit Factory Overhead.
3. Purchase indirect material: Debit Raw Materials Inventory.
4. Use indirect materials: Credit Raw Materials Inventory.
5. Direct labor used: Debit Work in Process Inventory.
Explanation:
1. When you allocate overhead costs to jobs: Credit factory overhead. Factory overhead can be defined as cost incurred in the manufacturing process of finished goods and cannot be linked directly to the goods.
2. When you pay factory utilities: Debit factory overhead. Factory overhead can be defined as cost incurred in the manufacturing process of finished goods and cannot be linked directly to the goods.
3. When you purchase indirect material: Debit raw materials inventory. The raw materials inventory comprises of the overall cost of all resources such as component parts that a business has in stock which haven't been used for production of finished goods or work in process.
4. When you use indirect materials: Credit raw materials inventory. Raw materials inventory comprises of the overall cost of all resources such as component parts that a business has in stock which haven't been used for production of finished goods or work in process.
5. For direct labor used: Debit work in process inventory.
1. Allocate overhead costs to jobs: Credit Factory Overhead.
2. Pay factory utilities: Debit Factory Overhead.
3. Purchase indirect material: Debit Raw Materials Inventory.
4. Use indirect materials: Credit Raw Materials Inventory.
5. Direct labor used: Debit Work in Process Inventory.
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During March, the production department of a process operations system completed and transferred to finished goods 35,000 units that were in process at the beginning of March and 110,000 that were started and completed in March. March's beginning inventory units were 100% complete with respect to materials and 50% complete with respect to labor. At the end of March, 39,000 additional units were in process in the production department and were 100% complete with respect to materials and 30% complete with respect to labor. The production department incurred direct labor cost of $581,000 and its beginning inventory included labor cost of $56,400. Compute the direct labor cost per equivalent unit for the department using the weighted-average method.
Answer:
Direct Labor Equivalent unit cost : $5,415463
Explanation:
[tex]\left[\begin{array}{ccccc}\\ &$Units to be assigned costs:&&Equivalent Units&\\&&$Whole Units&Materials&Conversion\\&$Beginning&35000&35000&17500\\&$Started and completed&71000&71000&71000\\&$transferred&106000&106000&106000\\&$ending&39000&39000&11700\\&$Total units to be assigned costs&145000&145000&117700\\\end{array}\right][/tex]
Transferred units:
beginning + started - ending = transferred
35,000 + 71,000 - 39,000 = 71,000
Labor cost: 581,000 + 56,400 = 637,400
equivalent units for conversion: 117,700
(trasnferrred + percentage of completion ending WIP)
Equivalent unit cost:
637,400 / 117,700 = 5,415463
A manager is applying the Transportation Model of linear programming to solve an aggregate planning problem. Demand in period 1 is 100 units, and in period 2, demand is 150 units. The manager has 125 hours of regular employment available for $10/hour each period. In addition, 50 hours of overtime are available for $15/hour each period. Holding costs are $2 per unit each period. a. How many hours of regular employment should be used in period 1? (Assume demand must be met in both periods 1 and 2 for the lowest possible cost and that production is 1 unit per hour.)
Answer:
125 (hours)
Explanation:
Remember, the Linear programming model is simply a technique used to optimize a particular set of processes.
Note the statement from the question, "the manager has 125 hours of regular employment available for $10/hour each period." Which means this would form part of the constraints of the linear programming model.
In other words, the number of total hours available in period 1 is 125 hours.
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools
Activity Cost Pool
Estimated
Overhead Cost
Expected Activity
Labor-related $ 52,000 8,000 direct labor-hours
Machine-related $ 15,000 20,000 machine-hours
Machine setups $ 42,000 1,000 setups
Production orders $ 18,000 500 orders
Product testing $ 48,000 2,000 tests
Packaging $ 75,000 5,000 packages
General factory $ 108,800 8,000 direct labor-hours
Compute the activity rate for each activity cost pool. (Round your answers to 2 decimal places.)
Activity Cost Pool Activity Rate
Labor-related $ per DLH
Machine-related $ per MH
Machine setups $ per setup
Production orders $ per order
Product testing $ per test
Packaging $ per package
General factory $ per DLH
Compute the company's predetermined overhead rate, assuming that the company uses a single plantwide predetermined overhead rate based on direct labor-hours. (Round your answer to 2 decimal places.)
Predetermined overhead rate $ per DLH
Answer:
Rustafson Corporation
1. Computation of the activity rate for each activity cost pool:
Activity Cost Pool Activity Rate
Labor-related $6.50 per DLH
Machine-related $0.25 per MH
Machine setups $42 per setup
Production orders $36 per order
Product testing $24 per test
Packaging $15 per package
General factory $13.60 per DLH
2. Computation of the predetermined overhead rate:
Predetermined overhead rate = Total overhead divided by total direct labor hours
= $358,800/8,000
= $44.85
Explanation:
a) Data and Calculations:
Estimated Overhead Cost Expected Activity Activity Rate
Labor-related $ 52,000 8,000 direct labor-hours $6.50 (52,000/8,000)
Machine-related $ 15,000 20,000 machine-hours $0.25 ($15,000/20,000)
Machine setups $ 42,000 1,000 setups $42 ($42,000/1,000)
Production orders $ 18,000 500 orders $36 ($18,000/500)
Product testing $ 48,000 2,000 tests $24 ($48,000/2,000)
Packaging $ 75,000 5,000 packages $15 ($75,000/5,000)
General factory $ 108,800 8,000 direct labor-hours $13.60 ($108,800/8,000)
Total overhead = $358,800
Total direct labor hours = 8,000 DLH
Predetermined overhead rate = Total overhead divided by total direct labor hours
= $358,800/8,000
= $44.85
