Answer:
4 per hour
Explanation:
The computation of the current hourly cost of defect is shown below:
= Defective average × cost of inspector × replacement cost
where,
The Defective average is 0.02
The Cost of the inspector is $8
And, the replacement cost is $25
Now placing these values to the above formula
So, the current hourly defective cost is
= 0.02 × $8 × $25
= 4 per hour
Think back to a purchase that you made recently. How would you describe your thinking before you made that purchase?
On January 1, 2021, Rapid Airlines issued $200 million of its 8% bonds for $184 million. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. Rapid Airlines records interest at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $188 million as determined by their market value in the over-the-counter market. Rapid determined that $1,000,000 of the increase in fair value was due to a decline in general interest rates.Required:1. Prepare the journal entry to record interest on June 30, 2021 (the first interest payment).2. Prepare the journal entry to record interest on December 31, 2021 (the second interest payment).3. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2021,
Answer:
1.Dr Interest expense $8million
Cr Cash $8 million
2.Dr Interest expense $8 million
Cr Cash 8 million
3. Dr Bonds Payable $12million
Cr Adjustment in fair value $12 million
Explanation:
Preparation of Journal entries
1) June 30, 2021 Preparation of Journal entry for interest payment
Dr Interest expense $8million
Cr Cash $8 million
[($200 million * 8%) *6/12]
The reason why it was multipled with 6/12 was because the payments are half yearly.
2) Dec 31, 2021 Preparation of Journal entry for interest payment
Dr Interest expense $8 million
Cr Cash 8 million
[($200 million * 8%) *6/12]
3) Dec 31, 2021 Preparation of Fair value adjustment
Dr Bonds Payable $12million
Cr Adjustment in fair value $12 million
($200 million - $188 million)
Ivanhoe uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $380000 ($584000), purchases during the current year at cost (retail) were $1855000 ($3100000), freight-in on these purchases totaled $119000, sales during the current year totaled $2800000, and net markups (markdowns) were $62000 ($98000). What is the ending inventory value at cost
Answer:
$532,883.2
Explanation:
Calculation for the ending inventory value at cost
First step is to calculate for retail
Beginning inventory at retail $584,000
Purchases current year at retail $3,100,000
Net markups $62,000
Sales ($2,800,000)
Markdown ($98,000)
=$848,000
Second step is to divide cost by retail
Beginning inventory at cost $380,000
Purchases current year at cost $1,855,000
Freight-in $119,000
Total $2,354,000
÷
Beginning inventory at retail $584,000
Purchases current year at retail $3,100,000
Net markups $62,000
Total =$3,746,000
Hence,
$2,354,000÷$3,746,000
=0.6284
Last step is to find the ending inventory value at cost
Ending inventory value=$848,000*0.6284
Ending inventory value=$532,883.2
Therefore the ending inventory value at cost is $532,883.2
Identifying adjusting entries with explanations LO P1 For each of the following entries, select the letter of the explanation that most closely describes it in the space beside each entry. (You can use letters more than once.)
A. To record receipt of unearned revenue.
B. To record this period's earning of prior unearned revenue.
C. To record payment of an accrued expense.
D. To record receipt of an accrued revenue.
E. To record an accrued expense.
F. To record an accrued revenue.
G. To record this perlod's use of a prepaid expense.
H. To record payment of a prepaid expense.
I. To record this period's depreclation expense.
Journal Entries Explanation Debit Credit
Interest Expense C 1,000
Interest Payable 1,000
Depreciation Expense 4,000 4,000
Unearned Professional Fees Professional Fees Earned
3,000 3,000
Insurance Expense 4,200
Prepaid Insurance 4,200
Salaries Payable 1,400
Cash 1,400
Prepaid Rent 4,500
Cash 4,500
Salaries Expense 6,000
Salaries Payable 6,000
Interest Receivable 5,000
Interest Revenue 5,000
Cash 9,000
Accounts Receivable (from consulting)9,000
Cash Unearned Professional Fees 7,500 7,500
Cash 2,000 Interest Receivable 2,000
Rent Expense Prepaid Rent 2,000 2,000
Answer:
Journal entries Debit Credit
Interest expenses $1000
Interest payable $1000
E. To record an accrued expense.
Depreciation expenses $4000
Accumulated depreciation $4000
I. To record this period's depreciation expense.
Unearned professional fees $3000
Profession fees earned $3000
B. To record this period's earning of prior unearned revenue.
Insurance expenses $4200
Prepaid insurance $4200
G. To record this period's use of a prepaid expense.
Salaries payable $1400
Cash $1400
C. To record payment of an accrued expense.
Prepaid rent $4500
Cash $4500
H. To record payment of a prepaid expense.
Salaries expenses $6000
Salaries payable $6000
E. To record an accrued expense.
Interest receivable $5000
Interest revenue $5000
F. To record an accrued revenue.
Cash $9000
Accounts receivable $9000
D. To record receipt of an accrued revenue.
Cash $7500
Unearned professional fees $7500
A. To record receipt of unearned revenue.
Cash $2000
Interest receivable $2000
D. To record receipt of an accrued revenue.
Rent expenses $2000
Prepaid rent $2000
G. To record this period's use of a prepaid expense.
Reasons for printing your document include all of the following except:
A. It gets to the recipient faster.
B. It can be more secure and private.
C. It is easier to proofread for errors.
D. You can get proof of delivery to the sender.
Answer: A. It gets to the recipient faster.
Fact Pattern: Jackson Industries employs a standard cost system in which direct materials inventory is carried at standard cost. Jackson has established the following standards for the prime costs of one unit of product: Standard Standard Standard Quantity Price Cost Direct materials 5 pounds $ 3.60/pound $18.00 Direct labor 1.25 hours $12.00/hour 15.00 $33.00 During May, Jackson purchased 125,000 pounds of direct materials at a total cost of $475,000. The total factory wages for May were $364,000, 90% of which were for direct labor. Jackson manufactured 22,000 units of product during May using 108,000 pounds of direct materials and 28,000 direct labor hours. Question Jackson’s direct labor usage (efficiency) variance for May is
Answer:
Efficiency varaince 6,000 unfavorable.
Explanation:
[tex](standard\:hours-actual\:hours) \times standard \: rate = DL \: efficiency \: variance[/tex]
std hours 27,500.00 (22.000 units x 1.25 units per hour)
actual hours 28,000.00
std rate $ 12.00
difference -500.00
efficiency variance $ (6,000.00)
Multiple Choice During periods of inflation, LIFO makes the balance sheet less representative of the actual inventory values than if FIFO were used During periods of inflation, FIFO makes the balance sheet less representative of actual inventory values than if LIFO were used After inflation ends, distortion due to LIFO will disappear as inventory is sold During periods of inflation, LIFO overstates earnings relative to FIFO
Answer:
The answer is "Option A".
Explanation:
The numbering of the choice is missing, which can be defined in the attached file please find it.
In the given question the first choice is correct because LIFO was introduced, its balance sheet throughout the LIFO reserve is unique and balance change in the current year reflects the on the cost of goods sold for the current year.
In this, the LIFO allows the financial sheet less representative of current stock values throughout periods of inflation then FIFO Utilized, that's why it is correct.
The Capital Asset Pricing Model (CAPM) is a nancial model that assumes returns on a portfolio are normally distributed. Suppose a portfolio has an average annual return of 14.7% (i.e. an average gain of 14.7%) with a standard deviation of 33%. A return of 0% means the value of the portfolio doesn't change, a negative return means that the portfolio loses money, and a positive return means that the portfolio gains money. (b) What is the cuto for the highest 15% of annual returns with this portfolio?
Answer:
49.02%
Explanation:
Given the following :
Population mean (m) = 14.7% = 0.147
Standard deviation (σ) = 33% = 0.33
The cut for the highest 15% of annual returns with this portfolio:
Highest 15% return = +ve (15/100) = +0.15 = 0.15 to the right of the normal distribution curve.
The Zscore which corresponds to 0.15 using the z-distribution = 1.04
Zscore = (x - m) / σ
1.04 = (x - 0.147) / 0.33
1.04 * 0.33 = x - 0.147
0.3432 = x - 0.147
x = 0.3432 + 0.147
x = 0.4902
Cut for highest 15% of annual return = (0.4902 * 100%) = 49.02%
Recently, the owner of Martha's Wares encountered severe legal problems and is trying to sell her business. The company built a building at a cost of $1,290,000 that is currently appraised at $1,490,000. The equipment originally cost $770,000 and is currently valued at $517,000. The inventory is valued on the balance sheet at $460,000 but has a market value of only one-half of that amount. The owner expects to collect 99 percent of the $250,200 in accounts receivable. The firm has $11,000 in cash and owes a total of $1,490,000. The legal problems are personal and unrelated to the actual business. What is the market value of this firm?
Answer: $1,005,698
Explanation:
The following can be gotten from the question:
Building = $1490000
Add: Equipment= $517000
Add: Inventory:
= [$460000 × 1/2]
= $230000
Add: Accounts receivable:
= $250200 × 0.99
= $247698
Add: Cash = $11000
Less : liabilities = $1490000
Market value = $1,005,698
Therefore, the market value of the firm is $1,005,698.
Question 11
conster the resources that you have that are nited and those that are plentiful. How do you decide to use your resources to get the things
you want and new
Answer:
Explanation:
Know the difference between a want and a need. You do have resources, but it makes sense not to use everything that you have. Savings can make a big difference in times of need.
So, how to budget? It is a learned behavior. Be tight when you start budgeting and understand your needs. They have to be met first.
Tanner-UNF Corporation acquired as a long-term investment $330 million of 5.0% bonds, dated July 1, on July 1, 2021. Company management has the positive intent and ability to hold the bonds until maturity. The market interest rate (yield) was 6% for bonds of similar risk and maturity. Tanner-UNF paid $300.0 million for the bonds. The company will receive interest semiannually on June 30 and December 31. As a result of changing market conditions, the fair value of the bonds at December 31, 2021, was $310.0 million. Required: 1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2021 and interest on December 31, 2021, at the effective (market) rate. 3. At what amount will Tanner-UNF report its investment in the December 31, 2021, balance sheet? 4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2022, for $290.0 million. Prepare the journal entry to record the sale.
Answer and Explanation:
The Journal entries are shown below:-
1. Investment in bond Dr, $330 million
To Cash $300 million
To Discount on bond investment $30 million
(Being investment in bond is recorded)
2. Cash Dr, $8.25 million ($330 million × 5% × 6 ÷ 12)
Discount on bond investment Dr, $0.75 million
To Interest revenue $9 million ($300 million × 6% × 6 ÷ 12)
(Being recognition of bond interest and discount is recorded)
3. The computation of investment is shown below:-
Investment = $300 million + $0.75 million
= $300.75 million
4. The journal entry is shown below:-
Cash Dr, $290 million
Discount on bond inventment Dr, $29.25 million
Loss on sale of investment Dr, $10.75 million
To inventment in bond $330 million
(Being sale of investment is recorded)
An income statement for Sam's Bookstore for the first quarter of the year is presented below: Sam's Bookstore Income Statement For Quarter Ended March 31 Sales $ 840,000 Cost of goods sold 525,000 Gross margin 315,000 Selling and administrative expenses Selling $ 112,000 Administration 128,000 240,000 Net operating income $ 75,000 On average, a book sells for $60. Variable selling expenses are $6 per book with the remaining selling expenses being fixed. The variable administrative expenses are 5% of sales with the remainder being fixed. The contribution margin for Sam's Bookstore for the first quarter is:
Answer:
Total contribution margin= $189,000
Explanation:
Giving the following information:
Sales $ 840,000
Cost of goods sold $525,000
On average, a book sells for $60.
Variable selling expenses are $6 per book
Variable administrative expenses are 5% of sales
First, we need to calculate the number of units sold:
Units sold= 840,000/60= 14,000 units
The contribution margin is the result of deducting from sales of all variable components.
Sales= 840,000
COGS= (525,000)
Variable selling expense= 14,000*6= (84,000)
Variable administrative expense= (840,000*0.05)= (42,000)
Total contribution margin= 189,000
Stello Co. uses the percentage of credit sales method to determine its bad debt expense. All sales are made on credit. At the end of the current year, the company's net credit sales were $900,000, the balance in Accounts Receivable was $655,000, and the debit balance in Allowance for Doubtful Accounts was $800. Based on past experience, the company estimates 0.6% of net credit sales to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared
Answer:
$5,400
Explanation:
The amount that should be debited to bad debt expense is shown below:
= Net credit sales × uncollectible percentage
= $900,000 × 0.6%
= $5,400
We simply multiplied the net credit sales with the uncollectible percentage so that the bad debt expense should be computed and the same is to be considered
hence, the bad debt expense is $5,400
On June 30, 2021, Crane Company had outstanding 7%, $8040000 face amount, 15-year bonds maturing on June 30, 2031. Interest is payable on June 30 and December 31. The unamortized balance in the bond discount account on June 30, 2021 was $365000. On June 30, 2021, Crane acquired all of these bonds at 95 and retired them. What net carrying amount should be used in computing gain or loss on this early extinguishment of debt
Answer:
$7,675,000
Explanation:
The computation of the net carrying amount is shown below:-
Net carrying amount = Face amount - Unamortized balance in the bond discount account on June 30, 2021
= $8,040,000 - $365,000
= $7,675,000
Therefore for computing the net carrying amount we simply applied the above formula.
Hence, the net carrying amount is $7,675,000
what score did you get? (:
Which of the following is not an attribute of every leader?
O focused
O highly-paid
O a good listener
O able to teach others
In three to five sentences, describe how you would create a graph.
Answer: My explaintion is a math graph
Explanation:
I would find both values for example y and x. I would create my graph by using the values of x and y. The points will be proportional to the values given. Once the values are proportional to each other then will have a proportional graph.
Answer:
In order to create a graph, the first step is to highlight the data. Highlight cells with labels and numbers that you would like included in your graph. When entering the data into the spreadsheet, don't leave blank rows or columns between data. Once you've highlighted the proper data, use the command for inserting a graph or chart. The software will lead you through some steps for choosing layout, format, and range of cells.
Explanation:
Here you go, I moved it since one of the other answers was deleted.
Volbeat Corp. shows the following information on its 2015 income statement: sales = $255,000; costs = $156,000; other expenses = $7,900; depreciation expense = $15,600; interest expense = $14,800; taxes = $21,245; dividends = $12,000. In addition, you’re told that the firm issued $6,300 in new equity during 2015 and redeemed $4,800 in outstanding long-term debt.a. What is the 2015 operating cash flow? (Do not round intermediate calculations.)Operating cash flow $b. What is the 2015 cash flow to creditors? (Do not round intermediate calculations.)Cash flow to creditors $c. What is the 2015 cash flow to stockholders? (Do not round intermediate calculations.)Cash flow to stockholders $d. If net fixed assets increased by $28,000 during the year, what was the addition to NWC? (Do not round intermediate calculations.)Addition to NWC $
Answer:
A. $69,855
B. $19,600
C. $5,700
D. $28,000
Explanation:
A. Calculation for the operating cash flow
Using this formula
Operating cash flow = EBIT + Depreciation
First step is to find the EBIT using this formula
EBIT = Sales – Cost – Other expenses - Depreciation
Let plug in the formula
EBIT = 255,000 -156,000 – 7,900 -15,600
EBIT = 75,500
Now let calculate the Operating cash flow using this formula
Operating cash flow = EBIT + Depreciation
Let plug in the formula
Operating cash flow = 75,500 + 15,600 -21,245
Operating cash flow =$69,855
B. Calculation for the 2015 cash flow to creditors
Using this formula
Cash flow to creditor = Redeemed long term debt + Interest
Let plug in the formula
Cash flow to creditor= 4,800 + 14,800
Cash flow to creditor= $19,600
C. Calculation for 2015 cash flow to stockholders
Using this formula
Cash flow to stockholders = Dividends – Issued equity
Let plug in the formula
Cash flow to stockholders= 12,000 – 6,300
Cash flow to stockholders=$5,700
D.If net fixed assets increased by the amount of $28,000 the addition to Net Working Capital will be the same amount of $28,000 reason been NET WORKING Capital has the following :Current assets – Current liability + Fixed asset which are all part of current asset.
a. What is each company's accounts receivable days? b. What is each company's inventory turnover? c. Which company is managing its accounts receivable and inventory more efficiently? a. What is each company's accounts receivable days? The accounts receivable days for Wal-Mart are nothing days. (Round to two decimal places.) The accounts receivable days for Target are nothing days. (Round to two decimal places.) b. What is each company's inventory turnover? Inventory turnover for Wal-Mart is nothing times. (Round to two decimal places.) Inventory turnover for Target is nothing times. (Round to two decimal places.) c. Which company is managing its accounts receivable and inventory more efficiently? (Select the best answers from the drop-down menus.) ▼ Wal-Mart Target is the company managing its accounts receivable more efficiently. ▼ Target Wal-Mart is the company managing its inventory more efficiently.
Answer:
a. Accounts receivable days = (Accounts Receivables/ Sales) * 365Walmart Accounts Receivable Days = 5,587/482,546 * 365
= 4.23 days
Target Accounts Receivable Days = 832/73,481 * 365
= 4.13 days
b. Inventory Turnover = Cost of Goods Sold/ InventoryWalmart Inventory Turnover = 360,628/45,362
= 7.95
Target Inventory Turnover = 52,560/8,549
= 6.15
c. With Accounts Receivable, the company with the lower Receivable Days is managing Accounts Receivables well because they are getting paid earlier.
Target has a lower Accounts Receivable Days so Target is the company managing its accounts receivable more efficiently.
A higher Inventory Turnover ratio means that a company is managing inventory better as they are selling and replacing inventory faster.
Walmart has a higher Inventory Turnover ratio so Wal-Mart is the company managing its inventory more efficiently.
Suppose there are two goods, food and clothing. My preference has the following properties:
1. I am rational.
2. I need at least one unit of food and one unit of clothing in order to survive.
3. I strictly prefer surviving over not surviving.
4. I am indifferent over all situations in which I do not survive.
5. When I have strictly more than one unit of each good, I satisfy monotonicity and strict convexity.
6. When I have strictly more than one unit of each good, I have a positive marginal rate
Answer:
The preference for the two goods, food and clothing include:
2. I need at least one unit of food and one unit of clothing in order to survive.
1. I am rational.
3. I strictly prefer surviving over not surviving.
5. When I have strictly more than one unit of each good, I satisfy monotonicity and strict convexity.
6. When I have strictly more than one unit of each good, I have a positive marginal rate
Explanation:
On January 1, 2021, Calloway Company leased a machine to Zone Corporation. The lease qualifies as a sales-type lease. Calloway paid $280,000 for the machine and is leasing it to Zone for $38,000 per year, an amount that will return 9% to Calloway. The present value of the lease payments is $280,000. The lease payments are due each January 1, beginning in 2021. What is the appropriate interest entry on December 31, 2021
Answer:
Dr Interest receivable 21,780
Cr Interest revenue 21,780
Explanation:
Preparation of the appropriate interest Journal entry on December 31, 2021
Based on the information given we were told that the company paid the amount of $280,000 for the machine in which the company will be leasing the machine to Zone for the amount of $38,000 per year while 9% of the amount will be return to Calloway which means that the interest entry on December 31, 2021 will be recorded as:
Dr Interest receivable 21,780
Cr Interest revenue 21,780
Calculated as :
Cost of machine $280,000
Less lease amount per year $38,000
=$242,000
Hence,
$242,000*9%
=$21,780
Initially, Stacy earns a salary of $300 per year and Virginia earns a salary of $200 per year. Stacy lends Virginia $100 for one year at an annual interest rate of 16% with the expectation that the rate of inflation will be 12% during the one-year life of the loan. At the end of the year, Virginia makes good on the loan by paying Stacy $116. Consider an unanticipated decrease in the rate of inflation. The rise in prices and salaries turns out to be 2% over the course of the year rather than 12%. The nominal value of Stacy's salary after one year is
Answer:
The answer is "$306 and $204".
Explanation:
Given value:
Stacy salary = $300
Virginia salary = $200
The nominal value is 2%
Calculating the Stacy salary [tex]= 300 \times \frac{2}{100}[/tex]
[tex]= 3 \times 2 \\\\ =6[/tex]
[tex]\text{ Stacy salary = slaray+ percent value}[/tex]
[tex]= \$ 300 + \$ 6\\\\= \$ 306 \\[/tex]
Calculating the Virginia salary [tex]= 200 \times \frac{2}{100}[/tex]
[tex]= 2 \times 2 \\\\ =4[/tex]
[tex]\text{ Virginia salary = slaray+ percent value}[/tex]
[tex]= \$ 200 + \$ 4\\\\= \$ 204 \\[/tex]
The nominal value of Stacy's salary after one year is $204 and $306
InflationGiven the value is:
Stacy salary = $300, Virg-inia salary = $200 ,The nominal value is 2%
Calculating the Stacy salary = 300*2/100 = 3*2=6
The formula is Stacy salary= salary + Percent value= $300+$6
Therefore =$306
The Answer is $204 and $306
The term inflation is referred to the devaluation of the currency, and also that not to a rise in the price of goods.
Calculating the Virg-inia salary that is= 200*2/100 = 2*2=4
Virg-inia salary = salary+ percent value
= &200 + $4 = $204
Thus, The answer is "$306 and $204".
Find out more information about Inflation here:
https://brainly.com/question/9449402
Financial Statements of a Manufacturing Firm The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:______.
• Purchased $293,100 of materials.
• Used $252,100 of direct materials in production.
• Incurred $216,000 of direct labor wages.
• Applied factory overhead at a rate of 70% of direct labor cost.
• Transferred $594,500 of work in process to finished goods.
• Sold goods with a cost of $577,400.
• Revenues earned by selling bikes, $1,033,500.
• Incurred $248,300 of selling expenses.
• Incurred $92,400 of administrative expenses.
a. Prepare the income statement for Rushmore Biking Inc. for the month ending February 28. Assume that Rushmore Biking Inc. uses the perpetual inventory method. Rushmore Biking Inc. Income Statement For the Month Ended February 28 $ $ Selling and administrative expenses: $ Total selling and administrative expenses $
b. Determine the inventory balances on February 28, the end of the first month of operations. Materials inventory, February 28 $ Work in process inventory, February 28 $ Finished goods inventory, February 28 $
Answer:
Required a.
Rushmore Biking Inc.
Income Statement For the Month Ended February 28
Sales Revenue $1,033,500
Less Cost of Sales ($577,400)
Gross Profit $456,100
Less Expenses :
Selling expenses $248,300
Administrative expenses $92,400 ($340,700)
Net Income/(Loss) $115,400
Required b.
Materials inventory, February 28 is $41,000
Work in process inventory, February 28 is $24,800
Finished goods inventory, February 28 is $17,100
Explanation:
First, Calculate the Costs of Goods Manufactured, then the Income Statement
Manufacturing Costs Schedule
Direct Materials $252,100
Direct labor $216,000
Overheads ($216,000 × 70%) $151,200
Total Manufacturing Costs $619,300
Less Transfer to Finished Goods ($594,500)
Closing Work In Process Inventory $24,800
Raw Materials T - Account
Debit :
Purchases $293,100
Totals $293,100
Credit :
Transfer to Work In Process $252,100
Ending Balance $41,000
Totals $293,100
Finished Goods T - Account
Debit :
Transfer from Work In Process $594,500
Total $594,500
Credit :
Trading Account $577,400
Ending Balance $17,100
Total $594,500
Bert and Bertha estimate when they retire in 18 years that their retirement portfolio will need to have a value of $2,000,000 to finance their desired retirement lifestyle. They believe inflation will average 2% over time and their retirement investment return will average 8% until they retire. After they retire, they will invest more conservatively and the portfolio will average a 5% return during a 25 year retirement. If they currently have nothing saved for retirement, how much will they need to save at the end of each year to meet their retirement goal
Answer:
$46733.10
Explanation:
If Bert and Bertha currently have nothing saved for retirement, they need to save $46733.10 at the end of each year to meet their retirement goal.
DATA
r = Periodic Interest rate = 8%
g = Inflation rate = 2%
n= no of periods = 18
C= Periodic Payments
FV of growing annuity = 2,000,000
Solution
[tex]FV of growing annuity =C * \frac{((1+r)^n - (1+g)^n)}{r-g}[/tex]
2,000,000 = C ((1+0.08)^17) - (1+0.02)^18)) / 0.08 - 0.02
2,000,000 = C (3.99601949918 - 1.42824624758) / 0.06
120,000 = C (2.5677732516)
C = $46733.10
Preparing adjusting entries LO P1, P3, P4
a. Wages of $10,000 are earned by workers but not paid as of December 31.
b. Depreciation on the company’s equipment for the year is $10,600.
c. The Office Supplies account had a $390 debit balance at the beginning of the year. During the year, $5,251 of office supplies are purchased. A physical count of supplies at December 31 shows $575 of supplies available.
d. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $1,600 of unexpired insurance benefits remain at December 31.
e. The company has earned (but not recorded) $900 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.
f. The company has a bank loan and has incurred (but not recorded) interest expense of $5,000 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.
For each of the above separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31.
Answer:
Adjusting Journal Entries:
a. Debit Wages Expense $10,000
Credit Wages Payable $10,000
To record unpaid wages as of December 31.
b. Debit Depreciation Expense - Equipment $10,600
Credit Accumulated Depreciation - Equipment $10,600
To record depreciation expense for the year.
c. Debit Supplies Expense $5,066
Credit Supplies $5,066
To record the supplies expense for the year.
d. Debit Insurance Expense $3,400
Credit Prepaid Insurance $3,400
To record the insurance expense for the year.
e. Debit Interest Revenue Receivable $900
Credit Interest Revenue $900
To record earned interest receivable.
f. Debit Interest Expense $5,000
Credit Interest Expense Payable $5,000
To record interest on bank loan incurred.
Explanation:
The above adjusting entries are made in order to ensure that transactions are recorded in accordance with the accrual concept and matching principle of generally accepted accounting principles. These require that expenses and revenues are accrued to the period that they are incurred or earned and not when they are paid or received in cash.
A production department in a process manufacturing system completed its work on 84,000 units of product and transferred them to the next department during a recent period. Of these units, 25,200 were in process at the beginning of the period. The other 58,800 units were started and completed during the period. At period-end, 16,200 units were in process. Prepare the department’s equivalent units of production with respect to direct materials under each of the three separate assumptions using the FIFO method for process costing
Answer:
FIFO method equivalent units are obtained by adding the beginning WIP and units started and deducting the ending WIP.
The equivalent units under each of the three assumptions are
Materials Conversion 67,800 67,800
Materials Conversion56730 56730
Materials Conversion 69060 69060
Explanation:
Assumption 1 : all materials are added at the beginning of the process and conversion is 100% complete
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
BWIP 25,200 100 100 25,200 25,200
Add
Units Started 58,800 58,800 58,800
Less
Units Completed
16,200 16,200 16,200
Equivalent Units 67,800 67,800
Assumption 2:
Beginning Inventory is 40% complete as to materials and conversions and ending inventory is complete 75 %as to materials and conversions.
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
BWIP 25,200 40 40 10,080 10,080
Add
Units Started 58,800 58,800 58,800
Less
Units Completed
16,200 75 75 12150 12150
Equivalent Units 56730 56730
Assumption 3:
Beginning Inventory is 60% complete as to materials and conversions and ending inventory is complete 30 %as to materials and conversions.
Particulars Units % of Completion Equivalent Units
Materials Conversion Materials Conversion
BWIP 25,200 60 60 15,120 15,120
Add
Units Started 58,800 58,800 58,800
Less
Units Completed
16,200 30 30 4860 4860
Equivalent Units 69060 69060
FIFO method equivalent units are obtained by adding the beginning WIP and units started and deducting the ending WIP.
Par On, a firm that creates games for mobile devices and PCs, has an unusual training program for all its new employees. The program lasts for five days and does not involve doing any work. During this period the trainees, in teams of three, visit different departments, gathering information about the company and various department functions. Additionally, they are paired with more experienced employees to discuss their goals at the company and to learn more about the organization's culture and policies. The form of training used for new employees at Par On is known as
Answer:
On boarding
Explanation:
The process of creating a new employee on boarding has been going on since the employee in the company was established. Orientation is the onboarding process in which new employees learn about the company's culture, organization structure and their job roles and duties.What the company is trying to do in those five days is to introduce new company employees to its company culture and structure, as well as tell them what to expect.Mannisto Inc. uses the FIFO inventory cost flow assumption. In a year of rising costs and prices, the firm reported net income of $260,472 and average assets of $1,427,670. If Mannisto had used the LIFO cost flow assumption in the same year, its cost of goods sold would have been $36,100 more than under FIFO, and its average assets would have been $31,190 less than under FIFO. Required: a. Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO). (Enter your answers as percentages rounded to 1 decimal place (i.e., 12.2%).) b. Suppose that two years later costs and prices were falling. Under FIFO, net income and average assets were $304,072 and $1,746,020, respectively. If LIFO had been used through the years, inventory values would have been $43,040 less than under FIFO, and current year cost of goods sold would have been $24,802 less than under FIFO. Calculate the firm's ROI under each cost flow assumption (FIFO and LIFO). (Enter your answers as percentages rounded to 1 decimal place (i.e., 12.2%).)
Answer:
Please see attached solution to the question above.
Explanation:
a. ROI under FIFO = 18.2%
ROI under LIFO = 16.1%
b. ROI under FIFO = 17.4%
ROI under LIFO = 19.3%
Further explanation is as attached below for the above question.
Windsor Industries had one patent recorded on its books as of January 1, 2020. This patent had a book value of $355,200 and a remaining useful life of 8 years. During 2020, Windsor incurred research and development costs of $93,000 and brought a patent infringement suit against a competitor. On December 1, 2020, Windsor received the good news that its patent was valid and that its competitor could not use the process Windsor had patented. The company incurred $102,000 to defend this patent. At what amount should patent(s) be reported on the December 31, 2020, balance sheet, assuming monthly amortization of patents?
Answer:
$411,600
Explanation:
the patent's carrying value on January 1, 2018 was $355,200
its remaining useful life is 8 years or 96 months
patent amortization per month = $355,200 / 96 = $3,700
legal costs increase the patents carrying value by $102,000, which will increase the amortization per month by $102,000 / (96 - 11) = $1,200
the company amortized the patent by $3,700 for 11 months and its December amortization was $3,700 + $1,200 = $4,900
total amortization for the year = ($3,700 x 11) + $4,900 = $45,600
patent's carrying value = ($355,200 + $102,000) - $45,600 = $411,600
Four years ago, on January 1, California Creamery bought a new delivery truck for $30,000. The company planned to use the truck for 7 years, and then sell it for $2,000. The company used the truck for 4 years and properly recorded straight-line depreciation each year. At the beginning of the 5th year, a change in emissions standards made the truck illegal in California. The company expects to sell the truck outside of California later this year for $6,000. The company should record a journal entry that includes a(n) ______. (
Answer:
Dr Impairment Loss $8,000
Cr Truck $8,000
Explanation:
Preparation of journal entry
Based on the information given we told that the new delivery truck cost the amount of $30,000 in which the company intend to sell the delivery truck for the amount of $2,000 after using it for 7 years and secondly we were told that in the 5th year of using the truck the truck was considered as illegal in which the company is expected to sell the truck later this year for the amount of $6,000 which means journal entry should be recorded as:
Dr Impairment Loss $8,000
Cr Truck $8,000
($6,000+$2,000)
The managers of Presto Pizza, a popular pizzeria in Concord, California, have been encouraging senior citizens to order takeout and free express delivery from the pizzeria's several outlets spread across the city. Anticipating a rise in the population of senior citizens in the area, the management of Alfredo's Pizza is seeking to tap into this promising segment that consists of retired, affluent consumers. In this instance, most likely, the managers of Alfredo's Pizza are anticipating company growth through ________.
Answer:
Market Development
Explanation:
The company has not change their product, which they want to sell their ultimate buyer. Instead they only wish to focus on a single market segment. In this case that market segment consists of senior citizens.
Moreover, the strategy requires to persuade the non buyer (senior citizens) to buy the product by providing them services (in this case free express delivery) which would encourage them to make the decision of buying pizza from Presto Pizza.
