Answer:
Since Warren and Liza were drafting their patnership agreement for their new home design and construction company, they should include the following:
B) Short- and long-term sales forecasts
C) Rights of the stockholders of the business
D) The amount of money each partner invests
Explanation:
Inclusion of the following above will help in the clarification of the information of what their individual stakes were in the company and what rights and privileges each of them has as a partner in the company that was to be established.
The items mentioned below were the requisites of the new partnership agreement that was drafted by Warren and Liza.
B) Short- and long-term sales forecasts
C) Rights of the stockholders of the business
D) The amount of money each partner invests.
The partnership agreement is termed as the document that is outlined and framed by the legal members of the company. The members of the company agree upon the terms and the conditions mentioned in the agreement.
It is structured as a legal document that contains all the obligations in regard to the duties, responsibilities, and authorities of the partnerships and their accountability towards the growth and the survival of the company in the market.
Therefore the correct options are B, C, D.
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Sunland Corporation had net sales of $2,427,500 and interest revenue of $40,000 during 2020. Expenses for 2020 were cost of goods sold $1,465,500, administrative expenses $220,600, selling expenses $289,300, and interest expense $47,900. Sunland’s tax rate is 30%. The corporation had 103,100 shares of common stock authorized and 71,990 shares issued and outstanding during 2020. Prepare a condensed multiple-step income statement for Sunland Corporation. (Round earnings per share to 2 decimal places, e.g. 1.48.)
Answer and Explanation:
The preparation of the condensed multiple-step income statement is presented below:
Net sales $2,427,500
Less: Cost of goods sold -$1,465,500
Gross profit $962,000
Less:
Selling expenses $289,300
Administrative expenses $220,600 ($509,900)
Income from operations $452,100
Other revenue and gains
Interest revenue $40,000
Other expenses and losses
Interest expense $47,900 ($7,900)
Income before income tax $444,200
Income tax expense(30%) ($133,260)
Net income $310,940
Earnings per share($310,960 ÷ 71,990 shares) $4.32
Eli Lilly is very excited because sales for his nursery and plant company are expected to double from $710,000 to $1,420,000 next year. Eli notes that net assets (Assets − Liabilities) will remain at 60 percent of sales. His firm will enjoy an 8 percent return on total sales. He will start the year with $310,000 in the bank and is bragging about the Jaguar and luxury townhouse he will buy.
1. Does his optimistic outlook for his cash position appear to be correct?2. Compute his likely cash balance or deficit for the end of the year. Start with beginning cash and subtract the asset buildup (equal to 50 percent of the sales increase) and add in profit.
Answer:
Since the profits are not enough to cover asset buildup, Eli will probably need to borrow money to cover them. Even though the company will be more profitable, its cash position will not be very healthy. ending cash balance = -$2,400Explanation:
current sales $710,000
net assets = equity = $710,000 x 60% = $426,000
return = $710,000 x 8% = $56,800
next year's sales $1,420,000
net assets = equity = $852,000
return = $1,420,000 x 8% = $113,600
asset buildup = $852,000 - $426,000 = $426,000
ending cash balance = beginning cash balance + profit - asset buildup = $310,000 + $113,600 - $426,000 = -$2,400
0.71 points eBookPrintReferences Check my work Check My Work button is now enabledItem 2Item 2 0.71 points Kerianne paints landscapes, and in late 2021 placed four paintings with a retail price of $300 each in the Holmstrom Gallery. Kerianne’s arrangement with Holmstrom is that Holmstrom will earn a 10% commission on paintings sold to gallery patrons. As of December 31, 2021, one painting had been sold by Holmstrom to gallery patrons. How much revenue with respect to these four paintings should Kerianne recognize in 2021?
Answer:
$300
Explanation:
Based on the information given we were told that Kerianne paints placed four paintings that include a retail price of the amount of $300 for each of the four paintings in the Holmstrom Gallery which simply means that the amount of revenue with respect to the four paintings that Kerianne paints will recognize in the year 2021 will be the amount of $300.
Why are tangible features important to include in development of a service?
A. Because services are an example of specialty goods.
B. Because they provide storage space for services.
C. Because services are mainly tangible.
D. Because customers can't try many services before buying.
The tangible features are important to include in generally and actually development of a service because customers can't try many services before buying Option(d) is correct.
What is an Tangible feature?A tangible feature is something that can fulfill a possibility's distinguished need. Tangible features are the realities that your possibilities coherently use to legitimize their profound choices.
They incorporate the graphic qualities of your item or administration and the components of your proposition, including motivating forces. The features of your item or administration are the qualities you use to portray it. They are the characteristics that can measure up to contenders.
You realize you're taking a gander at a tangible feature in the event that it very well may be recorded on a promotion, a spec sheet or a correlation diagram, similar to these models. These are features that you can rundown and guests can look at and verify. Your items and administrations have many features.
Therefore Option(d) is correct.
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1 point
if the price decreases from Rs
10 to Rs 8 of a commodity but
the quantity demanded
remains the same , price
elasticity is *
one
O zero
O infinity
O none of these
Answer:
O zero
Explanation:
Elasticity of demand is defined as the rate of change of quantity of a good demanded with change in price.
Commodities with low elasticity change a little with change in price, while those with high elasticity have a large change with change in price.
The formula for price elasticity is
Elasticity of demand = (% change in quantity demanded) ÷ (% change in price)
Assume the demand is 10 units
Elasticity of demand = ({10 - 10} ÷ 10 * 100) ÷ ({8 - 10} ÷ 10 * 100)
Elasticity of demand = (0) ÷ (-20)
Elasticity of demand = 0
Answer:
PED = 0
Explanation:
The PED or price elasticity of demand is a measure to track and determine the responsiveness of quantity demanded to changes in price of the commodity. The PED is calculated using the following formula,
PED = % Change in Quantity demanded / % Change in Price
or
PED = [( Q1 - Q0 ) / Q0] / [( P1 - P0 ) / P0]
Lets assume that at price 10 the quantity demanded was also 10 and when price decreased to 8, the quantity demanded remained the same i.e. 10
So,
PED = [( 10 - 10 ) / 10] / [( 8 - 10 ) / 10]
PED = 0
Thus, the price elasticity of demand is zero.
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data:_______.
Total machine-hours 30,000
Total fixed manufacturing overhead cost $252,000
Variable manufacturing overhead per machine-hour $ 2.10
Recently, Job T687 was completed with the following characteristics:________.
Number of units in the job 10
Total machine-hours 30
Direct materials $ 675
Direct labor cost $1,050
If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest:______
Answer:
Selling price= 240*1.4= $336
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (252,000/30,000) + 2.1
Predetermined manufacturing overhead rate= $10.5 per machine hour
Job T687:
Number of units in the job 10
Total machine-hours 30
Direct materials $ 675
Direct labor cost $1,050
Now, we need to allocate overhead and determine the total cost:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 10.5*30= $315
Total cost= 675 + 1,050 + 315= $2,040
Finally, the unitary cost and selling price:
Unitary cost= 2,040/10= $240
Selling price= 240*1.4= $336
Quinlan-Cohen, Inc., publishers of movie and song trivia books, made the following errors in adjusting the accounts at year-end (December 31):______.
a. Did not accrue $1,000 owed to the company by another company renting part of the building as a storage facility.
b. Did not record $15,000 depreciation on the equipment costing $121,000.
c. Failed to adjust the Unearned Fee Revenue account to reflect that $1,500 was earned by the end of the year.
d. Recorded a full year of accrued interest expense on a $21,000, 11 percent note payable that has been outstanding only since November 1.
e. Failed to adjust Prepaid Insurance to reflect that $620 of insurance coverage had been used.
Required:
1-a. Prepare the adjusting journal entry that was made, if any at year-end. (If no entry is made for a transaction/event, select "No journal entry made" in the first account field.)
1-b. Prepare the adjusting journal entry that should have been made at year-end. (Do not round intermediate calculations. If no entry is made for a transaction/event, select "No journal entry made" in the first account field.)
2. Using the following headings, indicate the effect of each error and the amount of the effect (that is, the difference between the entry that was or was not made and the entry that should have been made). Use O if the effect overstates the item, U if the effect understates the item. (Reminder: Assets = Liabilities + Stockholders' Equity; Revenues - Expenses = Net Income, and Net Income accounts are closed to retained Earnings, a part of Stockholders' Equity.)
Answer:
Quinlan-Cohen, Inc.
1-a. Adjusting journal entry made:
d. Debit Interest Expense $21,000
Credit Interest Expense Payable $21,000
Which recorded the full year of accrued expense.
1-b. Adjusting journal entry that should have been made:
a. Debit Rent Receivable $1,000
Credit Rent Revenue $1,000
To accrue rent.
b. Debit Depreciation Expense - Equipment $15,000
Credit Accumulated Depreciation - Equipment $15,000
To record depreciation expense for the period.
c. Debit Unearned Fee Revenue $1,500
Credit Fee Revenue $1,500
To record Earned Fee Revenue for the year.
d. Debit Interest Expense $3,500
Credit Interest Expense Payable $3,500
To accrue interest expense for the year (2 months).
e. Debit Insurance Expense $620
Credit Prepaid Insurance $620
To record insurance expense for the year.
2. Indication of the effect of each error and the amount of the effect:
Assets = Liabilities + Stockholders' Equity; Revenues - Expenses = Net Income
a. Assets $1,000 U = Liabilities + Stockholders' Equity $1,000 U
b. Assets $15,000 O = Liabilities + Stockholders' Equity $15,000 O
c. Assets = Liabilities $1,500 O + Stockholders' Equity $1,500 U
d. Assets = Liabilities $17,500 O + Stockholders' Equity $17,500 U
e. Assets $620 O = Liabilities + Stockholders' Equity $620 O
Explanation:
The accounting equation shows that with each transaction, Assets are always equal to Liabilities + Stockholders' Equity. This is illustrated with the above adjustments made.
Single Plantwide Factory Overhead Rate The total factory overhead for Bardot Marine Company is budgeted for the year at $3,277,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The speedboat and bass boat each require six direct labor hours for manufacture. Each product is budgeted for 11,500 units of production for the year. When required, round all per unit answers to the nearest cent. a. Determine the total number of budgeted direct labor hours for the year. direct labor hours b. Determine the single plantwide factory overhead rate. $ per dlh c. Determine the factory overhead allocated per unit for each product using the single plantwide factory overhead rate. Speedboat $ per unit Bass boat $ per unit
Answer:
(A) 138,000 direct labor hours
(B) $23.75 per direct labor hour
(C) $142.5 per unit for speedboat and $142.5 per unit for bass boat
Explanation:
(A) The number of direct hours for The speedboats can be calculated as follows
= 11,500 × 6
= 69,000
The number of direct hours for the bass boat can be calculated as follows
= 11,500 × 6
= 69,000
Total number of budgeted direct labor hours for the year is
= 69,000 + 69,000
= 138,000 direct labor hours
(B) The single plantwide factory overhead can be calculated as follows
= Budgeted overhead cost/total number of budgeted labor hours
= 3,277,500/138,000
= $23.75 per direct labor hour
(C) The factory overhead allocated or unit of each product can be calculated as follows
For speedboats
= 69,000 × 23.75
= 1,638,750
1,638,750/11,500
= $142.5 per unit
For bass boats
=69,000 × 23.75
= 1,638,750
1,638,750/11,50
= $142.5 per unit
Consider the market for bagels, which is currently at equilibrium, and where Pbagel and Qbagel denote the price and quantity of bagels in the market, respectively. If the change given in each problem is the only change that happened (all other things are held constant), what will be the effect on the equilibrium price and quantity of bagels? Please draw a graph to explain.
A) The price of cream cheese, complementary goods to bagels, increases.
B) The price of croissants, substitute goods to bagels, decrease
C) The economy experiences an overall decrease in income (Suppose that bagel is an inferior good).
Answer:
please refer to attachment for more explanation
Explanation:
a. a. Since both goods are complementary goods an increase in the price of cream cheese would cause equilibrium price and quantity of bagel to decrease.
b. If the price of the substitute good croissant decreases then the demand for bagel will fall since croissant is obviously cheaper therefore demand curve will shift downward and price and quantity will fall.
c. Lower income of the consumer would make the demand for the inferior good bagel to rise. Demand curve will shift upwards and price and quantity will rise.
he ledger of the General Fund of the City of New Elisa shows the following balances at the end of its fiscal year. Prepare closing journal entries for these budgetary and financial accounts. Estimated revenues $300,000 Appropriations 305,000 Budgetary fund balance 5,000 Revenues 300,000 Expenditures 285,000 Description Debit Credit Answer Answer Answer Answer Answer Answer Answer Answer Answer To close budgetary accounts. Answer Answer Answer Answer Answer Answer Answer Answer Answer To close financial accounts.
Answer and Explanation:
The closing journal entries are shown below:
1. Appropriations Dr $305,000
To Estimated revenues $300,000
To BUdgteary fund balance $5,000
(Being budgetary accounts are closed),
2. Revenues Dr $300,000
To Expenditures $285,000
To Fund balance $15,000
(Being the financial accounts are closed)
Which management tool helps managers evaluate their contributions to the organization's goals, vision, and mission?
Balanced scorecard
Strategic constituencies
Internal process
Systems resources
Answer:
B (strategic constutencies)
Explanation:
On January 1, 2020, a foundation made a pledge to pay $15,000 per year at the end of each of the next five years to the Cancer Research Center, a nonprofit voluntary health and welfare organization, as a salary supplement for a well-known researcher. On December 31, 2020, the first payment of $15,000 was received and paid to the researcher. On the books of the Cancer Research Center, record the pledge on January, assuming the appropriate discount rate is 5 percent on an annual basis. The appropriate present value annuity factor is 4.32948. Record the increase in the present value as of December 31. Record the receipt of the first $15,000 on December 31 and the payment to the researcher. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round intermediate calculations and final answers to the nearest whole dollar.)
Answer:
Journal entries
General journal Debit Credit
1) Contribution receivable $64,942
($15000 * 4.32948 )
Contribution- temporarily restricted $64,942
2) Contribution receivable $3,247
($64942 * 5%)
Contribution- temporarily restricted $3,247
3) Cash contribution - receivable $15,000
Contribution- receivable $15,000
Reclassification from temporarily restricted net
Assets expiration from temporarily restrictions
Reclassification to unrestricted net assets $15,000
Expiration of time restrictions $15,000
Research expenses:
Salary statement $15,000
Cash $15,000
Which of the following statements is CORRECT? a. If two firms differ only in their use of debt—i.e., they have identical assets, identical total invested capital, sales, operating costs, interest rates on their debt, and tax rates—but one firm has a higher total debt to total capital ratio, the firm that uses more debt will have a lower profit margin on sales and a lower return on assets. b. The total debt to total capital ratio as it is generally calculated makes an adjustment for the use of assets leased under operating leases, so the debt ratios of firms that lease different percentages of their assets are still comparable. c. A firm's use of debt will have no effect on its profit margin. d. If two firms differ only in their use of debt—i.e., they have identical assets, identical total invested capital, operating costs, and tax rates—but one firm has a higher total debt to total capital ratio, the firm that uses more debt will have a higher operating margin and return on assets. e. If one firm has a higher total debt to total capital ratio than another, we can be certain that the firm with the higher total debt to total capital ratio will have the lower TIE ratio, as that ratio depends entirely on the amount of debt a firm uses.
Answer: a. If two firms differ only in their use of debt—i.e., they have identical assets, identical total invested capital, sales, operating costs, interest rates on their debt, and tax rates—but one firm has a higher total debt to total capital ratio, the firm that uses more debt will have a lower profit margin on sales and a lower return on assets.
Explanation:
A firm that uses more debt financing will have to pay more interest. Interest is an expense that is deducted from Net Income so the more the debt, the higher the interest payment and the lower the net profit/ income.
Profit margin on sales is calculated by dividing profit by the sales revenue and return on assets is calculated by dividing net income by the average total assets. Both these ratios use the Net income as the numerator so if it is lower as a result of more interest payments, the ratio will be lower as well.
Income statement under absorption costing and variable costing
[The following information applies to the questions displayed below.]
Cool Sky reports the following costing data on its product for its first year of operations. During this first year, the company produced 44,000 units and sold 36,000 units at a price of $140 per unit. Manufacturing costs Direct materials per unit $ 60 Direct labor per unit $ 22 Variable overhead per unit $ 8 Fixed overhead for the year $ 528,000 Selling and administrative costs Variable selling and administrative cost per unit $ 11 Fixed selling and administrative cost per year $ 105,000
Assume the company uses absorption costing. Determine its product cost per unit.
Answer:
unitary product cost= $102
Explanation:
Giving the following information:
Manufacturing costs Direct materials per unit $60
Direct labor per unit $22
Variable overhead per unit $8
Fixed overhead for the year $528,000
Units produced= 44,000
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary fixed overhead:
Unitary fixed overhead= 528,000/44,000= $12
Now, the unitary product cost:
unitary product cost= 60 + 22 + 8 + 12
unitary product cost= $102
Davis Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.
Production volume 1,000 units 2,000 units
Direct materials $ 44,200 $ 88,400
Direct labor $ 37,300 $ 74,600
Manufacturing overhead $ 48,500 $ 62,200
The best estimate of the total monthly fixed manufacturing cost is:_________
a. $177,600
b. $225,200
c. $130,000
d. $34,800
Answer: $34800
Explanation:
Fixed cost is simply calculated as:
Total cost - Variable cost.
We need to find the total monthly variable manufacturing cost. To get this we'll calculate the variable cost per unit first. This can be calculated as:
= ($62200 − $48500)/(2000 units − 1000 units)
= $13700/1000 units
Variable cost per unit = $13.70 per unit
Variable cost = $13.70 × 1000
= $13,700
Fixed cost = Total cost - Variable cost.
Fixed cost = $48500 - $13700
Fixed cost = $34,800
The best estimate of the total monthly fixed manufacturing cost is $34800
classmate
Date
Page
and
controlling centre of the organizatroit:
Justity.
s
3 "An office is planning implementing
Answer:
what it is................
Which reasons can be fixed by having a money plan?
Answer:
The given question relates to budgeting. In simple words, budgeting helps one to set up a saving schedule for thier finances, it means that people still have sufficient funds for the items they need and activities which are valuable to them. The expenditure or savings strategy will either keep you free of trouble or assist you get this out of debt if you're already in debt.
he following information pertains to Adams Manufacturing Company for March Year 3. Assume actual overhead equaled applied overhead. March 1 Inventory balances Raw materials $ 123,900 Work in process 118,400 Finished goods 77,400 March 31 Inventory balances Raw materials $ 85,500 Work in process 145,200 Finished goods 80,900 During March Costs of raw materials purchased $ 118,900 Costs of direct labor 100,500 Costs of manufacturing overhead 62,800 Sales revenues 356,000 Required Prepare a schedule of cost of goods manufactured and sold. Calculate the amount of gross margin on the income statement.
Answer:
Instructions are below.
Explanation:
First, we need to calculate the cost of goods manufactured using the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 118,400 + (123,900 + 118,900 - 85,500) + 100,500 + 62,800 - 145,200
cost of goods manufactured= $293,800
Now, we can determine the cost of goods sold:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 77,400 + 293,800 - 80,900
COGS= $290,300
Finally, the gross margin:
Gross margin= sales - cogs
Gross margin= 356,000 - 290,300
Gross margin= $65,700
Select the accounting principle, assumption, or related item that best completes the sentence. Ex: Material. Full disclosure. Far value. Relevance. Periodicity. Consistency. Revenue recognition. Comparabitlity. Confirmatary value.1. _________and ___________are the two fundamental qualities that make accounting information useful for decision making.2. Information that helps users confirm or correct prior expectations has __________.3. _________enables users to identify the real similarities and differences in economic events between companies.4.________ is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.5. Information is __________if omitting it or misstating it could influence decisions that users make on the basis of the reported financial information.6. The _________characteristic requires that the same accounting method be used from one accounting period to the next, unless it becomes evident that an alternative method will bring about a better description of a firm's financial situation.7._______means that a company cannot select information to favor one set of interested parties over another.8. Providing information that is of sufficient importance to influence the judgement and decisions of an informed user is referred to as _________.9. Corporations must prepare accounting reports at least yearly due to the____________ assumption.10._____________occurs when the performance obligation is satisfied.
Answer:
1. Relevance and faithful 2.confirmatory value 3.Comparability 4. fair value 5. material 6. consistency 7. neutrality 8.Full disclosure 9. periodicity 10. Revenue recognition
On April 1, Tamarisk, Inc. began operations. The following transactions were completed during the month.
1. Issued common stock for $21,600 cash.
2. Obtained a bank loan for $6,300 by issuing a note payable.
3. Paid $9,900 cash to buy equipment.
4. Paid $1,100 cash for April office rent.
5. Paid $1,300 for supplies.
6. Purchased $540 of advertising in the Daily Herald, on account.
7. Performed services for $16,200: cash of $1,800 was received from customers, and the balance of $14,400 was billed to customers on account.
8. Paid $360 dividend to stockholders.
9. Paid the utility bill for the month, $1,800.
10. Paid Daily Herald the amount due in transaction (6).
11. Paid $40 of interest on the bank loan obtained in transaction (2).
12. Paid employees’ salaries, $5,760.
13. Received $10,800 cash from customers billed in transaction (7).
14. Paid income tax, $1,350.
Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
No. Account Titles and Explanation Debit Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
Answer:
Given below
Explanation:
Tamarisk, Inc.
Genral Journal
No. Account Titles and Explanation Debit Credit
1. Cash $21,600 Dr
Common Stock $21,600 Cr
Issued common stock for $21,600 cash. Cash is received and stock is issued.
2. Cash $6,300 Dr
Note payable $6,300 Cr
Obtained a bank loan for $6,300 by issuing a note payable. Cash is received and the liability is also increased.
3. Equipment $9,900 Dr
Cash $9,900 Cr
Equipment is bought by paying cash.
4. Office rent $1,100 Dr
Cash $1,100 Cr
Office rent is paid through cash.
5. Supplies $1,300 Dr
Cash $1,300 Cr
Supplies are bought for $1,300 cash.
6. Advertising Expense $540 Dr
Accounts Payable Daily Herald $540 Cr
Advertising is purchased on accounts of Daily Herald for $540
7. Cash $1,800 Dr
Accounts Receivable $14,400 Dr
Revenue $16,200 Cr
Performed services for $16,200, cash of $1,800 is received from customers, and the balance of $14,400 is billed to customers on account.
8. Dividends $360 Dr
Cash $360 Cr
Paid $360 dividend to stockholders.
9. Utilities $1,800 Dr
Cash $1,800 Cr
Utility bill is paid for the month, $1,800.
10. Accounts Payable Daily Herald $540 Dr
Cash $540 Cr
Advertising bought on accounts is paid in cash $ 540.
11. Interest Expense $40 Dr
Cash $40 Cr
Paid $40 of interest on the bank for the loan of $6,300 obtained from the bank.
12. Salaries $5,760 Dr
Cash $5,760 Cr
Salaries for $5,760 are paid in cash.
13. Cash $14,400 Dr
Accounts Receivable $14,400 Cr
Cash is received for the balance of $14,400 billed to customers on account for services performed.
14. Tax Expense $1,350 Dr
Cash $1,350 Cr
Cash $1,350 is paid as Tax.
Cady Construction received a contract to construct a hospital for $2,500,000. Construction began in 2019 and ended in 2020. Cost and other data are presented below: 2019 2020Costs incurred during the year $1,500,000 $1,300,000Estimated costs to complete 1,200,000 0Billings during the year 1,200,000 1,300,000Cash collections during the year 1,000,000 1,500,000 What is gross profit recognized during 2020 if Cady recognizes revenue over time according to percentage of completion?
Answer:
Gross profit recognized in 2020 = ($100,000)
Explanation:
Gross profit recognized = (Cost to date / Total estimated costs * Expected profit) - Previously recognized profit
Gross profit recognized in 2019 = $2,500,000 - ($1,500,000 + $1,200,000)
Gross profit recognized in 2019 = $2,500,000 - $2,700,000
Gross profit recognized in 2019 = $(200,000)
Gross profit recognized in 2020 = [$2,500,000 - ($1,500,000 + $1,300,000)] - $(-200,000)
Gross profit recognized in 2020 = $2,500,000 - $2,800,000 - (-$200,000)
Gross profit recognized in 2020 = $2,500,000 - $2,800,000 + $200,000
Gross profit recognized in 2020 = -$100,000
In the future, electrical power may come from quantum nucleonics, a form of nuclear power that produces no residual radiation. The ability to use this form of power will require equipment adaptations, but it will solve the world’s need for clean and efficient power. Companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency are operating at a(n) _____ responsibility level. Group of answer choices
Answer: legal
Explanation:
The Environmental Protection Agency (EPA) was established in so that both human and the environmental health can be protected.
Based on the information given in the question, the companies that replace inefficient sources of power with quantum nucleonics only after they are required to by the Environmental Protection Agency are operating at a legal responsibility level. It should be noted that the law will have to be obeyed by the business at this legal responsibility level.
Allitron, Inc., and Donovan, Ltd., are interstate competitors selling similar appliances, principally in the state of Illinois, Indiana, Kentucky, and Ohio. They agree that Allitron will no longer sell in Indiana and Ohio and that Donovan will no longer sell in Illinois and Kentucky. Identify the law or laws they are violating and why. Also, explain what, if any, punishment could result from this violation of the antitrust laws
Answer:
Since Allitron and Donovan engage in interstate commerce, they are regulated by the Sherman Antitrust Act. They incurred in collusion, which is illegal since they are restraining interstate commerce. Since they are competitors, they are prohibited from simply dividing sales territories, they should instead be competing for who serves them better.
Several punishments can result from this type of behavior:
the companies can be fined with up to $1 million eachtheir upper management can be sent to jail for up to 3 yearsthe Department of Justice should take actions that limit thisg Suppose a worker with an annual discount rate of 8 percent currently resides in Chicago and is deciding whether to remain there or to move to Phoenix. There are three work periods left in the life cycle. If the worker remains in Chicago, he will earn $40,000 in each of the three periods. If the worker moves to Phoenix, he will earn $43,500 in each of the three periods. What is the highest cost of migration that a worker is willing to incur and still make the move
Answer: $9,741.43
Explanation:
The highest cost of migration that the worker is willing to incur is the one that will equate the present value of the salary in Phoenix to the salary in Chicago.
Chicago = 40,000 + 40,000/(1 + 8%) + 40,000/ (1 + 8%)^2
= $111,330.59
Phoenix = 43,500 + 43,500/(1 + 8%) + 43,500/ (1 + 8%)^2
= $121,072.02
Hoghest cost of migration = 121,072.02 - 111,330.59
= $9,741.43
If the Cost of migration exceeds $9,741.43, the worker should stay in Chicago.
1. Assume a closed economy, perfectly elastic labor supply, and linear technol-ogy. Suppose the incremental capital-output ratio (ICOR) is 3, the depreciation rate is 3%, and the gross savings rate is 10%. Use the Harrod-Domar growth equation to determine the rate of growth. What would the gross savings rate have to be to achieve 5% growth? Assuming a perfectly elastic labor supply, state one criticism of this model from an exogenous growth theory viewpoint.
Answer:
Using the Harrod-Domar growth equation
Growth rate = Saving rate / Capital output ratio
Growth rate = 0.01 / 3
Growth rate = 0.003
Growth rate = 0.3%
Thus, the value of growth rate is 0.3%
When the incremental capital-output ratio is 3, to achieve the 5% growth rate, the gross saving rate is 0.24 or 24%
Exogenous growth: When the labor supply is perfectly elastic, then the exogenous does not allow any factor to substitute
Endogenous growth: When the labor supply is perfectly elastic, theem the exogenous does not lead to address the savings decision or sources of productivity growth.
easure of Damages. Before buying a house, Dean and Donna Testa hired Ground Systems, Inc. (GSI), to inspect the sewage and water disposal system. GSI reported a split system with a watertight septic tank, a wastewater tank, a distribution box, and a leach field. The Testas bought the house. Later, Dean saw that the system was not as GSI described—there was no distribution box or leach field, and there was only one tank, which was not watertight. The Testas arranged for the installation of a new system and sold the house. Assuming that GSI is liable for breach of contract, what is the measure of damages?
Answer:
The Testas will probably be entitled to compensatory damages since they probably overpaid for the house. If they had known that the house did not have a proper sewage and water disposal system, they would have probably offered a lower price for the house or might have even decided not to buy it. The amount of the damages should be equal to the difference in the price of the house having a proper sewage and water disposal system vs. not having it.
4. Human judgment and experience can play a role in the advent of stock market crash because
O Investors with an experience of financial crises are better at diversifying their portfolios
Investors with an experience of financial crises are better at explolong profit opportunities
Investors with an experience of financial crises are better at staying out of the market in turbulent times.
A lot of people who have lived through financial crises have reported that as a consequence of these crises and
their narratives, their faiths in the market have diminished
Answer:
Investors with an experience of financial crises are better at diversifying their portfolios
Explanation:
When an investor has experienced a financial crisis in the past, and decides to diversify his investment portfolio as a result, he is using both human judgment and experience to take the best decisions available to him.
Diversifying your investment porftolio is a good decision because it reduces risk (although it may also reduce profitability so there is a trade-off). Investors with past experience tend to spread their investments in order to reduce risk and avoid large losses. They do this because they see the possibility of a new financial crisis in the near future.
Kenney Co. uses process costing to account for the production of canned energy drinks. Direct materials are added at the beginning of the process and conversion costs are incurred uniformly throughout the process. Equivalent units have been calculated to be 15,600 units for materials and 12,950 units for conversion costs. Beginning inventory consisted of $9,500 in materials and $4,450 in conversion costs. April costs were $55,800 for materials and $55,824 for conversion costs. Ending inventory still in process was 5,300 units (100% complete for materials, 50% for conversion). The cost per equivalent unit for conversion costs using the weighted average method would be:_______.
a. $4.00.b. $4.40.c. $1.10.d. $8.70.
Answer:
Kenny Co.
Cost per equivalent units:
Materials Conversion
Costs: $55,800 $55,824
Equivalent units 15,600 12,950
Cost per equivalent:
Materials:
$55,800/15,600 = $3.58 $4.31 ($55,824/12,950)
Cost per equivalent unit for Conversion = $4.31
Explanation:
a) Data and Calculations:
Equivalent units:
Materials 15,600
Conversion 12,950
Beginning WIP:
Materials $9,500
Conversion $4,450
April costs:
Materials = $55,800
Conversion $55,824
Ending WIP:
Materials = 5,300 (100% complete)
Conversion = 2,650 (50% complete)
On July 1, 2017, Ling Co. pays $15,360 to Sunland Company for a 2-year insurance contract. Both companies have fiscal years ending December 31. For Sunland Company, enter the July 1 transaction and the December 31 adjustment in the tabular summary that follows. (If a transaction results in a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Answer:
The payment to Sunland will increase the cash account of Sunland by $15,360.
It will also increase the liability account of Unearned Service revenue because Sunland has been paid for a service hat they have not rendered yet.
In December, they would have earned part of that money as 6 months would have elapsed.
Assuming the insurance is per month, for 2017, the revenue earned would be;
= 15,360 * 6/24 months
= $3,840
This amount will be sent to revenue on Dec. 31 and debited from the Unearned service revenue account to reduce that liability.
On September 12, Vander Company sold merchandise in the amount of $5,800 to Jepson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Vander uses the periodic inventory system and the gross method of accounting for sales. On September 14, Jepson returns some of the non-defective merchandise, which is restored to inventory. The selling price of the returned merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Vander must make on September 14 is (are):
Answer:
DR Sales returns and Allowances ............................. $500
CR Accounts Receivable........................................................$500
Explanation:
Jepson returned $500 worth of goods so this would need to be accounted for by reducing the Accounts receivable amount by $500.
The returns will be accounted for in the Sales returns and allowances account which will be debited to reflect this.
