Answer:
1. Dr Salary expense $630,000
Cr Liability - compensated future absences $630,000
2. Dr Liability - compensated future absences $630,000
Dr Salary expense $31,031,500
Cr Cash or Salary Payable $31,661,500
Explanation:
1. Preparation of Journal entry for vacations earned but not taken in 2021.
Dr Salary expense $630,000
(700 weeks * $900 per week )
Cr Liability - compensated future absences $630,000
2. Preparation of journal entry that summarizes 2022 salaries and the payment for 2021 vacations taken in 2022
Dr Liability - compensated future absences $630,000
(700 weeks * $900 per week )
Dr Salary expense $31,031,500
[(5% * $630,000) + $31 million]
Cr Cash or Salary Payable $31,661,500
($31,031,500+$630,000)
Suppose your employer offers you a choice between a bonus and shares of the company's stock. Whichever one you choose will be awarded today. The stock is currently trading at per share. a. If you receive the stock bonus and you are free to trade it, which form of the bonus should you choose? What is its value? b. If you receive the stock bonus and you are required to hold it for at least one year, what can you say about the value of the stock bonus now? What will your decision depend on?
Answer:
the question in incomplete:
Suppose your employer offers you a choice between a $5000 bonus and 100 shares of the company stock. Whichever one you choose will be awarded today. The stock is currently trading for $63 per share.
a. If you receive the stock bonus and you are free to trade it, which form of the bonus should you choose? What is its value?
the value of the stock bonus is $6,300 while the cash bonus is only worth $5,000, therefore, I would choose the stock bonus.b. If you receive the stock bonus and you are required to hold it for at least one year, what can you say about the value of the stock bonus now? What will your decision depend on?
if you could sell the stocks today, then the stock bonus would be worth $6,300 but in one year, who knows. Since you work at the company you will be in a very good position to determine if the stock is priced correctly and how the price might change in 1 year. On the other hand, if you really need the money now, and you are not so sure about the future stock price, then the cash bonus might be better. Since the information is limited, I cannot tell which scenario would be best, because it depends on several variables.Previewing your reading material before class gives you:
a.) an outline to follow.
b.) background information on the topics to be covered in class.
c.) notes to recite before and after class.
d.) time to plan your reading time for assignments and tests.
The correct answer is B. Background information on the topics to be covered in class.
Explanation:
To preview one material or text involves to quickly look at the material (skim) and understand what the material is about. Moreover, one the general topic is identified the reader should try to remember background information or information he/she already knows about the topic. This helps the reader to better understand the material once it is read. Moreover, this strategy is ideal for class material because by previewing the materials students can activate their knowledge on the topic covered in the class (option B).
The artisans at Jewelry Junction in Phoenix are preparing to make gold jewelry during a 2-month period for the Christmas season. They can make bracelets, necklaces, and pins. Each bracelet requires 6.3 ounces of gold and 17 hours of labor, each necklace requires 3.9 ounces of gold and 10 hours of labor, and each pin requires 3.1 ounces of gold and 7 hours of labor. Jewelry Junction has available 125 ounces of gold and 320 hours of labor. A bracelet sells for $1,650, a necklace for $850, and a pin for $790. The store wants to know how many of each item to produce to maximize revenue.a. Formulate an integer programming model for this problem.b. Solve this model by using the computer. Compare this solution with the solution with the integer restrictions relaxed and indicate whether the rounded-down solution would have been optimal.
Answer:
The max revenue is "$32,300". The further explanation is described below.
Explanation:
(a)
The composition as well as response of models within 6 rows seems to be as described in the following:
Maximum 1650B + 850N + 790P (B bracelets, N necklaces and P pins produce overall revenue)
Yes of course,
The total gold ounces will be:
⇒ [tex]6.3B+3.9N+3.1P < = 125[/tex]
The total labor hours will be:
⇒ [tex]17B+10N+7P < = 320[/tex]
Integers B, N, P will become
The response for LINDO is:
B=10.0.
N=0
P=20
Final Value of Maximization will be:
= 32,300
(b)
10 bracelets, hardly any necklaces as well as 20 pins should always be made by the shop. These goods utilizing 125 ounces of gold simultaneously, It would use 310 hours of labor although 10 hours would then stay unused.The maximum salary will become:
= $32,300.
Sarjit Systems sold software to a customer for $176,000. As part of the contract, Sarjit promises to provide "free" technical support over the next six months. Sarjit sells the same software without technical support for $153,000 and a stand-alone six-month technical support contract for $27,000, so these products would sell for $180,000 if sold separately. Prepare Sarjit’s journal entry to record the sale of the software. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
DR Cash ..............................................................$ 176,000
CR Sales Revenue................................................................$149,600
CR Deferred Revenue..........................................................$26,400
Explanation:
Revenue should only be recorded when earned and as the 6 month technical support can be sold separately, it is revenue that has not be earned yet as the 6 months have not elapsed. This will therefore need to be recorded as Deferred revenue.
Sold alone, the revenue is more than when they are sold together so use the standalone price to find out the revenue when sold together by proportionality.
Sales revenue = 153,000/180,000 * 176,000
= $149,600
Deferred Revenue = 27,000/180,000 * 176,000
= $26,400
The state highway department has condemned Mr. Beamer's farm to build a new highway by-pass. They have already paid $160,000 for the property and have agreed to let Mr. Beamer continue to live in the house until construction on the by-pass actually begins. Due to state budget problems, all highway construction jobs in the region have been suspended indefinitely. Today Mr. Beamer deposits the entire amount paid for the property in an account at an interest rate of 4%, compounded monthly (12 times per year). He plans to use the entire balance in the account to invest in a new home at the time that construction on the by-pass actually begins. How much will Mr. Beamer have to invest in a new home if construction begins 4 years from today
Answer:
The invested amount is $187,412.68
Explanation:
The computation of the amount that have to invested is shown below:
Amount = Paid amount × (1 + rate of interest)^number of years
where,
The Paid amount is $160,000
rate of interest is 4% ÷ 12 = 0.33%
And, the number of years is = 4 × 12 = 48
Now the invested amount is
= $160,000 × (1 + 0.33%)^48
= $187,412.68
Hence, the invested amount is $187,412.68
Below is an incomplete contribution margin income statement for Barry's Coffee Cakes. Use this information to answer the following questions. BARRY'S COFFEE CAKES Contribution Margin Income Statement 20,000 units 25,000 units Total Total Per Unit Percents of Sales Sales revenue $ 150,000 Less: Variable costs 50,000 Contribution margin 100,000 Less: Fixed costs 30,000 Net operating income $ 70,000 Knowledge Check 01 What is the unit contribution margin
Answer:
Results are below.
Explanation:
Giving the following information:
Units sold: 20,000 or 25,000 is not clear.
Sales revenue $ 150,000
Less: Variable costs 50,000
Contribution margin 100,000
To calculate the unitary contribution margin, we need to use the following formula:
Unitary contribution margin= total contribution margin / number of untis
For 20,000 units:
Unitary contribution margin= 100,000/20,000= $5
For 25,000 units:
Unitary contribution margin= 100,000/25,000= $4
Calfee Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year: Beginning inventories: Raw materials $ 40,000 Work in process $ 19,000 Estimated total manufacturing overhead at the beginning of the year $595,000 Estimated direct labor-hours at the beginning of the year 35,000 direct labor-hours Results of operations: Raw materials purchased on account $ 423,000 Raw materials (all direct) requisitioned for use in production $ 420,000 Direct labor cost $ 641,000 Actual direct labor-hours 33,000 direct labor-hours Manufacturing overhead: Indirect labor cost $ 143,000 Other manufacturing overhead costs incurred $ 531,000 Cost of goods manufactured $1,441,000 The ending balance in the Work in Process inventory account is:
Answer:
$200,000
Explanation:
The computation of the ending balance in the work in process inventory account is shown below:
But before that determined the overhead rate per direct labor
Manufacturing OH estimated $595,000
Divide by DLH estimated 35000
OH rate per DLH $17
Now
Beginning Inventory of WIP $19,000
Current manufacturing cost
material $420,000
Labour $641,000
Manufacturing OH (33,000 × $17) $561000
Total Manufacturing cost $1,622,000
Total cost of WIP $1,641,000
Less: Cost of goods manufactured $1,441,000
Ending inventory of WIP $200,000
On April 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for April legal services was made by the company on May 12. As of April 30, $1,932 of interest expense has accrued on a note payable. The full interest payment of $5,797 on the note is due on May 20. Total weekly salaries expense for all employees is $14,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, which means that the employees had worked two days since the last payday. The next payday is May 3.
The above three separate situations require adjusting journal entries to prepare financial statements as of April 30. For each situation, present both the April 30 adjusting entry and the subsequent entry during May to record the payment of the accrued expenses. (Use 360 days a year. Do not round intermediate calculations.)
Answer:
A. Adjusting Entries on April 30:
Debit Legal Services Expense $3,500
Credit Legal Services Expense Payable $3,500
To record April legal services expense.
Debit Notes Interest Expense $1,932
Credit Notes Interest Payable $1,932
To record accrued interest expense.
Debit Salaries Expense $5,600
Credit Salaries Expense Payable $5,600
To record 2 days salaries accrued.
B. Journal Entries during May:
May 3:
Debit Salaries Expense Payable $5,600
Debit Salaries Expense $8,400
Credit Cash Account $14,000
To record payment of salaries.
May 12:
Debit Legal Services Expense Payable $3,500
Credit Cash Account $3,500
To record the payment of legal services for April.
May 20:
Debit Notes Interest Payable $5,787
Credit Cash Account $5,787
To record payment of interest on notes.
Explanation:
Adjusting entries are made at the end of an accounting period to record expenses and revenue that have accrued but are not yet paid or received. They are also used to account for expenses and revenue made in advance. The purpose is to ensure that the accounting records reflect the period's actual expenses and revenue incurred and earned.
Adams Co. reports the following balance sheet accounts as of December 31. Salaries payable $ 6,500 Retained earnings $ 55,000 Buildings 63,000 Notes payable (due in 9 years) 40,000 Prepaid rent 7,500 Office supplies 3,000 Merchandise inventory 15,000 Land 32,000 Accounts payable 15,000 Accumulated depreciation-Building 6,000 Prepaid insurance 4,000 Mortgages payable (due in 5 years) 22,000 Accounts receivable 9,000 Cash 26,000 Common stock 15,000 Required: Prepare a classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)
Answer is given below
Explanation:
given data
Salaries payable = $6,500
Retained earnings = $55,000
Buildings = 63,000
Payable = 40,000
Prepaid rent = 7,500
Office supplies = 3,000
Merchandise inventory = 15,000
Land = 32,000
Accounts payable = 15,000
Accumulated depreciation Building = 6,000
Prepaid insurance = 4,000
Mortgages payable = 22,000
Accounts receivable = 9,000
Cash = 26,000
Common stock = 15,000
solution
Current Assets
Cash $26,000
Accounts Receivable $9,000
Merchandise inventory $15,800
Office Supplies $3,000
Prepaid Rent $7,500
Prepaid Insurance $4,000
Total Current Assets: $65,300
and
Property, Plant and Equipment
Buildings $63,000
Land $32,000
Accumulated Depreciation 6,000
Total PP&E = $101,000
so
Total Assets = $166,300
and
Liabilities
Current Liabilities
Salaries Payable $6,500
Accounts payable $15,000
Total Current Liabilities = $21,500
and
Long-Term Liabilities
Notes Payable $40,000
Mortgages Payable $22,000
Total Long-Term Liabilities = $62,000
so
Total Liabilities = $83,500
and
Stockholders' Equity
Common Stock $15,000
Retained Earnings $55,000
Total Stockholders' Equity = $70,000
Total Liabilities + Stockholders' Equity = $83,500 + $70,000 = $153,500
You’re a bright, female investment analyst about to give a major presentation to a group of bankers supporting a corporate acquisition. After walking in and meeting the bankers before you give the presentation, you’re asked by your boss to "be a dear and serve them coffee." Imagine the insult and awkwardness of such a situation—what do you do? Do you carry through with the task, sacrificing your dignity or doing something wrong because you can’t afford to lose the job? Or do you speak up?
Explanation:
In this case, the ideal is to reject a task that is not mandatory in your contract. The boss's attitude in this situation was somewhat sexist, as it reduced the professional skills of a female investment analyst to having to be liked and serving coffee to bankers, since the professional was there to make a great professional presentation.
These unprofessional attitudes can be combated with an assertive attitude, without the professional feeling cornered by the possibility of suffering reprisals, but it is by maintaining an ethical, professional attitude and imposing respect, that it is possible for such unethical acts to be combated and not accepted any more. formal work environment.
equirement 1. Explain the characteristics and the internal control features of an imprest fund. An imprest fund has ▼ a credit a different the same balance at all times, which equals the sum of ▼ accounts receivable cash in the bank cash in the fund deposits in transit plus the ▼ check stubs credit memos total of the tickets that support payments from the fund. The internal control feature of an imprest fund is that it ▼ clearly debits clearly identifies decreases increases the amount of money for which the fund custodian is responsible.
Answer:
1. Explain the characteristics and the internal control features of an imprest fund.
An imprest fund has ▼ the same balance at all times, which equals the sum of ▼ cash in the fund plus the ▼ the total of the tickets that support payments from the fund. The internal control feature of an imprest fund is that it ▼ clearly identifies the amount of money for which the fund custodian is responsible.
Explanation:
An imprest fund is the fixed cash set aside for incidental and usually small daily expenses in an organization. The fund is controlled by an assigned custodian, sometimes called the petty cashier, who has the authority to make payments. The imprest fund depends on an allocated amount called "the float" and the accounting system for this fund is called the imprest system. The imprest system operates on a cash basis.
TB 01-85 Payment of accounts payable decreases both I...
Payment of accounts payable decreases both liabilities and assets.
True or False
True
False
The sentences in the following paragraph have been purposely placed in the wrong order. Examine key terms and transitional devices, and then rearrange the sentences so that the paragraph moves smoothly and logically from one sentence to the next. Indicate the correct order of the sentences by placing the sentence numbers in the order in which the sentences should appear. Briefly explain why you chose that particular order.(1) If such improvements could be achieved, the consequences would be significant for many different applications.
(2) However, the most challenging technical problem is achieving substantial increases in the quantities of electrical energy that can be stored per unit weight of the battery.
(3) The overall process yields about 70 percent of the electricity originally put into the battery.
(4) A storage battery is a relatively efficient way of storing energy.
Answer:
Rearrangement of the sentences so that the paragraph moves smoothly and logically from one sentence to the next:
(4) A storage battery is a relatively efficient way of storing energy.
(3) The overall process yields about 70 percent of the electricity originally put into the battery.
(2) However, the most challenging technical problem is achieving substantial increases in the quantities of electrical energy that can be stored per unit weight of the battery.
(1) If such improvements could be achieved, the consequences would be significant for many different applications.
Explanation:
A paragraph must have a main topic, which is captured in the topic sentence. This main sentence puts forward the thesis or the claim that is being made by the author. This is closely followed with supporting evidence and examples. The author can then introduce a counterclaim. Every good paragraph follows some logical patterns to convey the intended information to the readers.
Caterpillar is a manufacturer of heavy machinery that is sold around the world. A growing business for this U.S.-based company are products that feature the company's name or logo. Branded merchandise is available in over 150 countries through agreements known as _____, in which, for a fee, Caterpillar allows other firms to use its name or logo on products such as hats, boots, apparel, and scale model replicas of its equipment. g
Answer:
licensing
Explanation:
Licensing is another great source of income for big companies. Usually, it involves a legally binding agreement in which the bigger company (Licensor) grants the smaller company (Licensee) the right to use the licensor’s company's name or logo for an agreed fee.
Thus, Caterpillar could be said to have licensing agreements in over 150 countries.
Custom Homebuilders (CH) designs and constructs high-end homes on large lots owned by customers. CH has developed several formulas, which it uses to quote jobs. These include costs for materials, labor, and other costs. These estimates are also dependent on the region of the country a particular customer lives. The following are the cost estimates for one region in the Midwest. Administrative costs $ 20,000 Building costs – per square foot (basic) $ 90 Building costs – per square foot (moderate) $ 150 Building costs – per square foot (luxury) $ 225 Appliances (basic) $ 15,000 Appliances (moderate) $ 25,000 Appliances (luxury) $ 45,000 Utilities costs (if required) $ 40,000 Required: A customer has expressed interest in having CH build a moderate, 3,000 square-foot home on a vacant lot, which does not have utilities. Based on the engineering estimates above, what will such a house cost to build?
Answer:
$495,000
Explanation:
Based on the engineering estimates above cost to build such a house can be calculated by just adding the cost incurring in building the house as a moderate house.
The cost of a moderate 3000 square foot house
Administrative Cost = 20,000
Building Cost (150x3000) = 450,000
Appliances = 25,000
Utilities Cost = NIL
Total Cost = 495,000
YIELD CURVE FOR ZERO COUPON BONDS RATED AA Maturity YTM Maturity YTM Maturity YTM 1 year 8.00 % 7 year 9.15 % 13 year 10.45 % 2 year 8.11 % 8 year 9.25 % 14 year 10.65 % 3 year 8.20 % 9 year 9.35 % 15 year 10.75 % 4 year 8.50 % 10 year 9.47 % 16 year 10.95 % 5 year 8.75 % 11 year 9.52 % 17 year 11.00 % 6 year 8.85 % 12 year 9.77 % 18 year 11.25 % Assume that there are no liquidity premiums. To the nearest basis point, what is the expected interest rate on a four-year maturity AA zero coupon bond purchased six years from today
Answer:
10.41%
Explanation:
Calculation for the expected interest rate on a four-year maturity
Expected interest rate=[(1+.0947)^10 ÷1+.0885)^6 ]^1=4-1
Expected interest rate=[(1.0947)^10÷(1.0885)^6 ]^1/4-1
Expected interest rate=[(2.47÷1.66)^1/4]-1
Expected interest rate=(1.486^1/4)-1
Expected interest rate=1.1041-1
Expected interest rate=0.1041*100%
Expected interest rate=10.41%
Therefore the expected interest rate on a four-year maturity AA zero coupon bond purchased six years from today will be 10.41%
Which of the following statements applies to media planning? a. The location of the advertising target is irrelevant in media planning. b. Regardless of the message to be conveyed, newspapers are one medium that is appropriate for almost any circumstances. c. Total media dollars spent on advertising have decreased over the last 30 years. d. Characteristics of the product are the most important consideration in selecting the media for a campaign. e. The message content affects the types of media used for an advertising campaign.
Answer:
e. The message content affects the types of media used for an advertising campaign
Explanation:
Media planning refer to a process in which the identification and chosen of the media outlets could be done like newspaper, magazines, RV, etc and also it involved the paid advertisement
Based on the given options, the last option is correct as it impact the type of media that is used for advertising the company products so that the customer could aware of it
The following adjusted trial balance contains the accounts and year-end balances of Cruz Company as of December 31.
No. Account Title Debit Credit
101 Cash $ 19,000
126 Supplies 13,000
128 Prepaid insurance 3,000
167 Equipment 24,000
168 Accumulated depreciation
—Equipment $ 7,500
307 Common stock 10,000
318 Retained earnings 37,600
319 Dividends 7,000
404 Services revenue 44,000
612 Depreciation expense
—Equipment 3,000
622 Salaries expense 22,000
637 Insurance expense 2,500
640 Rent expense 3,400
652 Supplies expense 2,200
Totals $ 99,100 $ 99,100
1. Prepare the December 31, closing entries for Cruz Company. Assume the account number for Income Summary is 901.
2. Prepare the December 31, post-closing trial balance for Cruz Company. Note: The Retained Earnings account balance was $37,600 on December 31 of the prior year.
Answer:
CRUZ COMPANY
1. Closing Entries:
No. Account Title Debit Credit
901 Income Summary $33,100
612 Depreciation expense
—Equipment $3,000
622 Salaries expense 22,000
637 Insurance expense 2,500
640 Rent expense 3,400
652 Supplies expense 2,200
To close expenses to the Income Summary.
404 Services revenue $44,000
901 Income Summary $44,000
To close Service Revenue to the Income Summary.
318 Retained earnings $37,600
901 Income Summary (Retained Earnings) $37,600
To close the Retained Earnings of prior year to Retained Earnings section of the Income Summary.
901 Income Summary
(Retained Earnings) $7,000
319 Dividends $7,000
To close the Dividends to the Retained Earnings section of the Income Summary.
2. CRUZ COMPANY
Post-Closing Trial Balance
As of December 31
No. Account Title Debit Credit
101 Cash $ 19,000
126 Supplies 13,000
128 Prepaid insurance 3,000
167 Equipment 24,000
168 Accumulated depreciation
—Equipment $ 7,500
307 Common stock 10,000
318 Retained earnings 41,500
Totals $ 59,000 $ 59,000
Explanation:
a) Data and Calculations:
CRUZ COMPANY
Trial Balance
As of December 31
No. Account Title Debit Credit
101 Cash $ 19,000
126 Supplies 13,000
128 Prepaid insurance 3,000
167 Equipment 24,000
168 Accumulated depreciation
—Equipment $ 7,500
307 Common stock 10,000
318 Retained earnings 37,600
319 Dividends 7,000
404 Services revenue 44,000
612 Depreciation expense
—Equipment 3,000
622 Salaries expense 22,000
637 Insurance expense 2,500
640 Rent expense 3,400
652 Supplies expense 2,200
Totals $ 99,100 $ 99,100
b) Income Summary for the year ended December 31:
Revenue $44,000
Expenses (33,100)
Net Income $10,900
Retained Earnings 37,600
Dividends (7,000)
Retained Earnings $41,500
Verizox Company uses a job order cost system with manufacturing overhead applied to products based on direct labor hours. At the beginning of the most recent year, the company estimated its manufacturing overhead cost at $179,450. Estimated direct labor cost was $444,000 for 18,500 hours. Actual costs for the most recent month are summarized here: Item Description Total Cost Direct labor (1,850 hours) $ 44,401 Indirect costs Indirect labor 2,470 Indirect materials 3,420 Factory rent 3,350 Factory supervision 4,780 Factory depreciation 5,690 Factory janitorial work 1,290 Factory insurance 1,750 General and administrative salaries 4,280 Selling expenses 5,430 Required: 1. Calculate the predetermined overhead rate. 2. Calculate the amount of applied manufacturing overhead. 3. Calculate actual manufacturing overhead costs. 4. Compute over- or underapplied overhead.
Answer:
See answers below
Explanation:
1 The predetermined overhead rate
= Estimated manufacturing overhead / Estimated direct labor hour
= $179,450 / 18,500 hours
= $9.7 per direct labor hour
2. The applied manufacturing overhead
= Actual direct labor hours × predetermined overhead rate per direct labor hour
= 1,850 hours × $9.7
= $17,945
3 Actual manufacturing overhead costs
Indirect labor 2,470 + Indirect materials 3,420 + Factory rent 3,350 + Factory supervision 4,780 + Factory depreciation 5,690 + Factory janitorial work + 1,290 + Factory insurance 1,750
Actual manufacturing overhead costs
= $21,000
4. Over or under applied overhead
= $21,000 - $17,945
= $3,055
Under applied overhead is $3,055
"Case 3Adam Jones, the purchasing manager for ACME Cor-poration, is under suspicion for committing fraud. Hissuperiors believe he is accepting kickbacks and bribesfrom various vendors. As the company’s fraud expert,you are investigating this possible fraud and are pre-paring to interview Adam. You suspect that Adam willbe defensive and possibly hostile when interviewed.1.What investigation procedures should be com-pleted before your admission-seeking interviewwith Adam?2.If you find evidence that proves Adam is commit-ting fraud at ACME, what might his initial reactionbe when he is confronted? What other emotionsand/or reactions might you expect from Adam?How do you know this?"
Answer:
ACME Corporation
Fraud Suspicion of Adam Jones:
1. Pre-admission-seeking Investigation Procedures:
a. Review the company's policies and procedures
b. Interview those who raised the suspicion to establish reasonable basis
c. Interview suppliers and vendors to determine facts
d. Decide if investigation was necessary in the light of company policies and preliminary findings
e. Plan the interview
2. Adam's initial reaction when confronted:
Adam would try to deny the existence of such acts, especially when he is not sure that you have got some evidence against him.
3. Adam might try to cover his track when suspicion alert has been raised to his knowledge. He might contact the vendors and suppliers involved to ensure that they did not disclose any unfavorable information to the investigator. He might also engage in bluffing, that is trying to prove his innocence before the investigation proper.
4. I know this because I have dwelt with such reactions before.
Explanation:
In law, fraud is the deliberate misrepresentation of facts for the purpose of depriving someone of a valuable possession or enriching oneself.
Coronado Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigned Job Number April May June Month Completed 10 $6,200 $4,900 May 11 5,000 4,700 $3,100 June 12 1,500 April 13 5,600 4,600 June 14 7,000 4,100 Not complete Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month following completion.
1. What is the balance in Work in Process Inventory at the end of each month?2. What is the balance in Finished Goods Inventory at the end of each month?3. What is the gross profit for May, June, and July?
Answer:1) Balance in work in Process Inventory for April, May, June
= $11,200, $22,300, $11,`100
2) Balance of finished goods for April, May, June= $1,500, $11,100, $23,000
3)Gross profit for May , June, July $375,$2,775 $5,750
Explanation:
Given
Manufacturing Costs Assigned
Job Number April May June Month Completed
10 $6,200 $4,900 May
11 5,000 4,700 $3,100 June
12 1,500 April
13 5,600 4,600 June
14 7,000 4,100 Not complete
Solution
1) Balance in work in Process Inventory
Job April May June
10 $6,200
11 5,000 5,000+ 4700(9,700)
12 - - -
13 -- 5,600 --
14 --- $7000 $7000 + 4,100 (11,100)
Total $11,200 $22,300 $11,`100
2) Balance of finished goods
Job April May June
10 --- $6,200+ $4,900(11.100)
11 ---- ------ 5,000+4,700 + $3,100(12,800)
12 $1,500 - -
13 -- ---- 5,600+4,600 (10,200)
14 Not complete Not complete
Total $1,500 $11,100 $23,000
3) Gross profit for May , June, July.
May = Finished goods from previous month x mark up percent
$1,500 x 25%=$375
June = Finished goods from previous month x mark up percent
$11,100 x 25%=$2,775
July= Finished goods from previous month x mark up percent
$23,000 x 25%=$5,750
Suppose your firm receives a million order on the last day of the year. You fill the order with million worth of inventory. The customer picks up the entire order the same day and pays million up front in cash; you also issue a bill for the customer to pay the remaining balance of million within 40 days. Suppose your firm's tax rate is (i.e., ignore taxes). Determine the consequences of this transaction for each of the following:
a. Revenues
b. Earnings
c. Receivables
Answer:
a. Revenues - These will increase by $5 million to represent the entire value of the order.
b. Earnings. - Increase by $3 million
Earnings in this case are revenue less the cost of inventory which will be;
= 5 - 2
= $3 million
c. Receivables - Increase by $4 million
The customer paid $1 million upfront which means that they still owe $4 million out of the $5 million. This will go to the receivables account to show that the customer owes the business.
An agent of a broker-dealer is solicited by the general partner of an oil and gas income program being offered as a private placement only to accredited investors. The general partner explains that for each customer that the agent brings to the general partner, he will pay a finder's fee of 10% of the amount invested. The agent gets 20 copies of a full-color brochure from the general partner and distributes them to his largest customers for their consideration. Based on this information, you should be LEAST concerned about:
Answer:
I should be LEAST concerned about the tracking record of the general partner
Explanation:
Based on the information given what i should be LEAST concerned about should be the tracking record of the general partner reason been that the agent has been assigned to bring in customers to the general partner in which the agent will pay a 10 percent fee of the amount that was invested and secondly the agent been given brochure in which he has been assigned to distribute to the customers by the general partner, Hence this means that I should be basically concern about the violation of Regulation D, the security of the investment and the information that was been disclose in the brochure that was given to the agent to give to the customers.
Which of the following is not included in the typical pattern of behavior for a poverty-stricken person?
a.
higher crime rate
c.
higher standard of living
b.
higher divorce rate
d.
higher chance of being a victim of crime
Answer:
I believe the answer is D
Explanation:
Answer:
It's C on Edg.
Explanation
As chief financial officer, it is your responsibility to weigh financial pros and cons of the many investment opportunities developed by your company's research and development division. You are currently evaluating two competing 15-year projects that differ in several ways. Relative to your firm's current EPS, the first project is expected to generate above-average EPS during the first 5 years, average EPS during the second 5 years, and then below-average EPS in the last 5 years. The second project is expected to generate below-average EPS during the first 5 years, average EPS in the second 5 years, and then well-above-average EPS in the last 5 years. Is the choice obvious if you expect that the second investment will result in a larger overall earnings increase?
Given the goal of the firm, what issues will you consider before making a final decision?
Is the choice obvious if you expect that the second investment will result in a larger overall earnings increase?
Answer:
a) The choice is not obvious even if I expect that the second investment will result in a larger overall earnings increase. The volume and value of the cash flows are not disclosed in this instance. Earnings are not the same as cash flows.
b) The timing, volume, and cash flows are very important issues here. Because of the time value of money, the second choice with its larger overall earnings may not necessarily be the better choice. This is because its cash flows are delayed relative to the first choice.
c) However, since the consideration centers around the EPS (Earnings Per Share), the company's goal will be to grow the EPS. This goal favors the second choice that bears more increasing earnings year-on-year than the first choice.
Explanation:
a) Data and Checks:
1st Project:
During first 5 years, above-average EPS
During second 5 years, average EPS
During last 5 years, below-average EPS
2nd Project:
During first 5 years, below-average EPS
During second 5 years, average EPS
During last 5 years, well-above average EPS
Company's goal:
Grow the EPS
under what conditions can a medicare prescription drug plan reduce its coverage for a given drug during the first 60 days of the year
Answer:
When a formulary change is in response to a drug's removal from the market.
Explanation:
What is the marginal propensity to consume when consumption changes from 7 to 6 and disposable income changes from 5 to 3? If disposable personal income is 10 and consumption is 12, what is personal savings? What does this mean? What is the multiplier when the change in equilibrium level of real GDP in the aggregate expenditures model is 9, and change in autonomous aggregate expenditures is 3? What is the multiplier when the marginal propensity to save is 1/3? What would happen to the marginal propensity to save when a tax cut was enacted causing the multiplier to change to 5?
Answer:
Explanation:
First,
MARGINAL PROPENSITY TO CONSUME (MPC) is the rate of change of an individual's consumption, with change in his income.
1. What is the MPC when consumption falls from 7 to 6 units, as disposable income changes from 5 to 3 units?
Change in Consumption/ Change in income = (7-6) / (5-3)
MPC = 1/2 = 0.5
2. If personal income is 10 units and personal consumption is 12 units, what is personal savings?
Personal Savings = Personal Income - Personal Consumption
Savings = Income - Consumption
The personal savings is = -2
3. What does the above mean?
The above answer means that the individual is dissaving; either drawing up on former savings or borrowing. It shows he consumed more than this particular income.
As for the other questions, the values or coefficients of all components of the model are needed.
The marginal propensity to consume will be 0.5.
Based on the information given, the shift in consumption will be:
= 7 - 6 = 1
The income change will be:
= 5 - 3 = 2.
The marginal propensity to consume will be: = 1/2 = 0.5
If disposable personal income is 10 and consumption is 12, the value of personal savings will be:
= 10 - 12 = -2
The multiplier effect will be:
= 1/1 - MPC
= 1 / (1 - 0.5)
= 1 / 0.5 = 2
The multiplier when MPS is 1/3 will be:
= 1/0.33 = 3.03
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Activity-Based And Department Rate Product Costing and Product Cost Distortions Black and Blue Sports Inc. manufactures two products: snowboards and skis. The factory overhead incurred is as follows: Indirect labor $507,000 Cutting Department 156,000 Finishing Department 192,000 Total $855,000 The activity base associated with the two production departments is direct labor hours. The indirect labor can be assigned to two different activities as follows: Activity Budgeted Activity Cost Activity Base Production control $237,000 Number of production runs Materials handling 270,000 Number of moves Total $507,000 The activity-base usage quantities and units produced for the two products follow: Number of Production Runs Number of Moves Direct Labor Hours-Cutting Direct Labor Hours-Finishing Units Produced Snowboards 430 5,000 4,000 2,000 6,000 Skis 70 2,500 2,000 4,000 6,000 Total 500 7,500 6,000 6,000 12,000 Required: 1. Determine the factory overhead rates under the multiple production department rate method. Assume that indirect labor is associated with the production departments, so that the total factory overhead is $315,000 and $540,000 for the Cutting and Finishing departments, respectively. Round per unit amounts to the nearest whole cent.
Answer:
Cutting department = $52.50
Finishing department = $90.00
Explanation:
The computation of factory overhead rates under the multiple production department rate method is shown below:-
For cutting department
= Overhead cost ÷ Direct labor hour
= $315,000 ÷ 6,000
= $52.50
For Finishing department
= Overhead cost ÷ Direct labor hour
= $540,000 ÷ 6,000
= $90.00
Hence, the above are the answers and the same is to be considered
Harding Company is in the process of purchasing several large pieces of equipment from Danning Machine Corporation. Several financing alternatives have been offered by Danning: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
1. Pay $1,210,000 in cash immediately.
2. Pay $471,000 immediately and the remainder in 10 annual installments of $95,000, with the first installment due in one year.
3. Make 10 annual installments of $157,000 with the first payment due immediately.
4. Make one lump-sum payment of $1,740,000 five years from date of purchase.
Required:
Determine the best alternative for Harding, assuming that Harding can borrow funds at a 7% interest rate. (Round your final answers to nearest whole dollar amount.)
Answer:
The best alternative is alternative 2.
PV = $1138240.246 rounded off to $1138240
Explanation:
To determine the best alternative, we need to find the present value of each alternative and the alternative with the lowest present value will be the best one.
To calculate the present value of a single sum, we will use the normal present value formula,
PV = Future Value / (1+r)^t
Where,
r is the discount ratet is the time in periodsTo calculate the present value of alternative with equal payments over a period of time with same intervals, we will use the present value of annuity formula which is attached.
The present value of alternative 1 is already known.
The present value of alternative 2 will be calculated using the present value of annuity ordinary formula as the payments of 95000 are made at the end of each period.
PV = 471000 + 95000 * [( 1 - (1+0.07)^-10) / 0.07]
PV = $1138240.246 rounded off to $1138240
The present value of alternative 3 will be calculated using the present value of annuity due formula as the payments of 157000 are made at the start of each period.
PV = 157000 * [( 1 - (1+0.07)^-10) / 0.07] * (1+0.07)
PV = $1179891.463 rounded off to $1179891
The present value of alternative 4 will be calculated using the present value
of the sum formula,
PV = 1740000 / (1+0.07)^5
PV = $1240595.952 rounded off to $1240596
The best alternative is alternative 2.
Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $340,000; Cash paid for rent, $40,000; Cash paid to employees for services rendered during the year, $120,000; Cash paid for utilities, $50,000. In addition, you determine that customers owed the company $60,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $2,000 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.
Answer:
$208,000
Explanation:
Net income= Revenue -expenses
The first step is to calculate the total revenue
Total revenue= credit sales+cash collected from customers
= $60,000 + $340,000
= $400,000
The total expenses can be calculated as follows
= Rent expense + salaries expense + utilities expense
= (40,000/2)+$120,000 + ($50,000 + $2,000)
= $20,000 + $120,000 + $52,000
= $192,000
Therefore the accrual net income for the year can be calculated as follows
= $400,000 - $192,000
= $208,000
Hence the accural net income for the year is $208,000
