Answer:
Final Value= $61,037.04
Explanation:
Giving the following information:
Investment= $2,378 in a bank at the end of every year for 10 years.
The company makes no deposits during the subsequent 5 years.
Interest rate= 10%
First, we need to calculate the first 10 years.
FV= {A*[(1+i)^n-1]}/i
A= annual deposit
FV= {2,378*[(1.1^10)-1]} / 0.1
FV= $37,899.20
Now, the 5 years:
FV= PV*(1+i)^n
FV= 37,899.2*(1.1^5)
FV= $61,037.04
The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $1,412,700 Liabilities: Current liabilities $165,000 Note payable, 6%, due in 15 years 831,000 Total liabilities $996,000 Stockholders' equity: Preferred $4 stock, $100 par (no change during year) $1,494,000 Common stock, $10 par (no change during year) 1,494,000 Retained earnings: Balance, beginning of year $1,594,000 Net income 601,000 $2,195,000 Preferred dividends $59,760 Common dividends 143,240 203,000 Balance, end of year 1,992,000 Total stockholders' equity $4,980,000 Sales $27,384,550 Interest expense $49,860 Assuming that total assets were $5,677,000 at the beginning of the current fiscal year, determine the following. When required, round to one decimal place.
Answer:
a. Ratio of fixed assets to long-term liabilities = fixed assets / long term liabilities = $1,412,700 / $831,000 = 1.7
b. Ratio of liabilities to stockholders' equity = liabilities / equity = $996,000 / $4,980,000 = 0.2
c. Asset turnover = total revenue / average assets = $27,384,550 / [($5,976,000 + $5,677,000)/2] = 4.7
d. Return on total assets = (net income + interest expense) / average assets = ($601,000 + $49,860) / [($5,976,000 + $5,677,000)/2] = 11.2%
e. Return on stockholders’ equity = net income / average stockholders' equity = $601,000 / {[($1,594,000 + $1,494,000 + $1,494,000) + $4,980,000] / 2} = $601,000 / {($4,582,000 + $4,980,000) / 2} = $601,000 / $4,781,000 = 12.57%
f. Return on common stockholders' equity = (net income - preferred dividends) / average common stock = ($601,000 - $59,760) / $1,494,000 = 36.2%
Find the future value of a five-year $113,000 investment that pays 10.00 percent and that has the following compounding periods: (Do not round intermediate calculations, round final answers to 2 decimal places, e.g. 15.25.)
Answer: Future Value FV = 169,500
Explanation:
The information given to us are;
Present value PV = 113000
Interest R = 10% = 0.01
number of years T = 5
Future value FV = ?
So using the formula
FV = PV * [1 + (R * T)],
We input our value
FV = 113000 * [ 1 + ( 0.1 * 5) ]
FV = 113000 * [ 1 + 0.5]
FV = 113000 * 1.5
FV = 169500
Pacific Cruise Lines is a defendant in litigation involving a swimming accident on one of its three cruise ships.Required:1. The likelihood of a payment occurring is probable, and the estimated amount is $1.3 million.2. The likelihood of a payment occurring is probable, and the amount is estimated to be in the range of $1.1 to $1.6 million.3. The likelihood of a payment occurring is reasonably possible, and the estimated amount is $1.3 million.4. The likelihood of a payment occurring is remote, while the estimated potential amount is $1.3 million.Record the necessary entry for the scenarios given above.
Answer and Explanation:
According to the scenario, the journal entries are of the given data are as follow:-
Journal Entry
1. Loss A/c Dr. $1,300,000
To Contingent liability A/c $1,300,000
(Being the likelihood of a payment occurring is probable is recorded)
For recording this we debited the loss and credited the contingent liability as it increased the loss and liability
2. Loss A/c Dr. $1,100,000
To Contingent liability A/c $1,100,000
(Being the likelihood of a payment occurring is probable is recorded)
For recording this we debited the loss and credited the contingent liability as it increased the loss and liability
3. The likelihood of payment occurring is reasonably possible instead of probable, so we don’t have a need to record this entry. But we describe this in financial statements in the foot note
No Journal Entry Needed
4. The likelihood of payment occurring is remote so disclosure is not needed.
No Journal Entry Needed
Assuming that the contingency loss is "possible" and can be reasonably estimated, then journal entries should be recorded in order to collect the debt.
What is contingent liability?It is a liability the occurrence of which may or may not be possible. The journal entries passed in this case, is by debiting the necessary event and by crediting the contingent liability.
As per the given information, the journal entries are of the given data are as follows:-
1. Loss A/c Dr. $1,300,000
To Contingent liability A/c $1,300,000
(Being the likelihood of a payment occurring is possible is recorded)
2. Loss A/c Dr. $1,100,000
To Contingent liability A/c $1,100,000
(Being the likelihood of a payment occurring is possible is recorded)
3. The likelihood of payment occurring is reasonably possible instead of probable, so we don’t have a need to record this entry.
We write this in the financial statements as a footnote.
No Journal Entry.
4. The likelihood of payment occurring is not likely to happen at all so disclosure is not needed.
No Journal Entry.
Hence, The journal entry in terms of contingent liability will be debiting legal costs and credit to record legal liability.
Refer to this link to learn more about contingent liability:
https://brainly.com/question/7041428
Roman is the chief executive officer of Salty Snax Corporation. Roman’s responsibilities include decisions on product development, marketing, and other significant business directions. Roman is subject to the approval and oversight of Salty Snax’s board of directors. Teri is a Salty Snax manager whose duties include the firm’s day-to-day hiring, firing, purchasing, and selling. Umberto is a Salty Snax salesperson, whose daily activities are controlled by Teri. Velma writes sales manuals and promotional materials for Salty Snax’s products according to Roman’s instructions and subject to Salty Snax’s control, but has no dealings with the company’s customers or suppliers. Warren writes copy on a contract-per-project basis and is not otherwise subject to Salty Snax’s control.
Who is a principal? Who is an agent? Who is an employee? Who is an independent contractor?
Answer:
The correct answers are:
Roman is a principal
Velma is an agent
Umberto is an employee
Warren is an independent contractor
Explanation:
Roman is a principal due to the fact that he is the one who is in the highest position of them all and he has no superior in the company
Velma is an agent because she is under the control of the company.
Teri is an employee because she has to deal with the day-to-day operations and has a superior. And Umberto is an employee because he is in the lowest positions and is controlled by Teri
Warren is an independet contractor because he is not subejct to the company's control
Mark was terminated by his company because of his poor client management skills, which resulted in the company losing one of its major clients. Mark's termination best exemplifies _____.
Answer:
Involuntary turnover
Explanation:
Since Mark was terminated by the company, this exemplifies Involuntary turnover. Involuntary turnover is one type of turnover that occurs when an employee is terminated from a job position.
It is involuntary because Mark was laid off on account of poor client management which is bad for the company. He didn't not leave the position voluntarily.
. Markets and competition Identical products, as well as a large number of buyers and sellers, are characteristics of a market. In such markets, sellers of goods influence the prevailing market price, giving them the role of price in the market. True or False: The market for lettuce does not exhibit the two primary characteristics that define perfectly competitive markets. True
Answer:
The correct answer is: false.
Explanation:
The market for lettuce does exhibit the two primary characteristics that define perfectly competitive markets that is the fact of the sellers having identical products to offer and a large number of buyers and sellers are in the market and therefore is also known as an atomized market where both buyers and sellers do not influece in the price of the market but instead this price is already given by the market and accepted by both parties.
A debt contract is said to be incentive compatible if:______.
a. the borrower's net worth reduces the probability of moral hazard.
b. restrictive covenants limit the type of activities that can be undertaken by the borrower.
c. both the A or B of the above occur.
d. neither A nor B of the above occur.
Answer:
A. the borrower's net worth reduces the probability of moral hazard
Shankar Company uses a perpetual system to record inventory transactions. The company purchases inventory on account on February 2 for $34,000. In addition to the cost of inventory, the company also pays $540 for freight charges associated with the purchase on the same day.
Required:
Record the purchase of inventory on February 2, including the freight charges.
Answer:
Dr merchandise inventory($34,000+$540) $34,540
Cr accounts payable $34,000
Cr cash $540
Explanation:
The cost of inventory purchased is shown as an increase in merchandise inventory since perpetual system of inventory requires that inventory is updated each time there is a receipt or sale of inventory.
In other words, the cost of inventory purchased is debited to merchandise inventory and credited to accounts payable.
The cost of freight is also added to the cost of inventory while it is credited to cash account.
Answer:
The Record the purchase of inventory on February 2, including the freight charges would be as follows:
Debit Credit
February 2
Merchandise Inventory $34,000
Accounts Payable $34,000
(To Record the Company Purchases Inventory on Account)
Debit Credit
February 2
Merchandise Inventory $540
Cash $540
(To Record the Freight Charges Paid by the Company)
Explanation:
The Record the purchase of inventory on February 2, including the freight charges would be as follows:
The company purchases inventory on account on February 2, for $34,000, therefore, journal entry would be:
Debit Credit
February 2
Merchandise Inventory $34,000
Accounts Payable $34,000
(To Record the Company Purchases Inventory on Account)
The company also pays $410 for freight charges associated with the purchase on the same day. Therefore journal would be:
Debit Credit
February 2
Merchandise Inventory $540
Cash $540
(To Record the Freight Charges Paid by the Company)
"The Bank of Moronto has negotiated a plain vanilla swap whereby it will exchange fixed payments of 10 percent for floating payments equal to LIBOR plus 0.5 percent at the end of each of the next three years. In the first year, LIBOR is 8 percent; in the second year, 9 percent; in the third year, LIBOR is 7 percent. What is the total net payment the Bank of Moronto makes over the three-year period if the notional principal is $10 million
Answer:
The total net payment the Bank of Moronto makes over the three-year period if the notional principal is $10 million is $450,000
Explanation:
According to the given data we have the followning:
According to the swap, Bank of Moronto pays 10% and receives LIBOR + 0.5%
Therefore, At the end of year 1 - Pays 10% & Receives - ( 8 + 0.5)% = 10-8.5 = 1.5%
Hence, Net Payment = 1.5 %
At the end of year 2 - Pays 10% & Receives - ( 9 + 0.5)% = 10-8.5 = 0.5%
Hence, Net Payment = 0.5 %
At the end of year 3 - Pays 10% & Receives - ( 7 + 0.5)% = 10-7.5 = 2.5%
Hence, Net Payment = 2.5 %
Therefore, Total Payment = Total Basis * Notional Amount
= ( 1.5 + 0.5 + 2.5)% * 10 * 10^6
= 4.5% * 10 * 10^6
Total Payment= $450,000
The total net payment the Bank of Moronto makes over the three-year period if the notional principal is $10 million is $450,000
Lois Bragg owns a small restaurant in Boston. Ms. Bragg provided her accountant with the following summary information regarding expectations for the month of June. The balance in accounts receivable as of May 31 is $53,000. Budgeted cash and credit sales for June are $148,000 and $586,000, respectively. Credit sales are made through Visa and MasterCard and are collected rapidly. Seventy percent of credit sales is collected in the month of sale, and the remainder is collected in the following month. Ms. Bragg's suppliers do not extend credit. Consequently, she pays suppliers on the last day of the month. Cash payments for June are expected to be $713,000. Ms. Bragg has a line of credit that enables the restaurant to borrow funds on demand; however, they must be borrowed on the last day of the month. Interest is paid in cash also on the last day of the month. Ms. Bragg desires to maintain a $31,000 cash balance before the interest payment. Her annual interest rate is 9 percent.
Required:
a. Compute the amount of funds Ms. Bragg needs to borrow for June.
b. Determine the amount of interest expense the restaurant will report on the June pro forma income statement.
c. What amount will the restaurant report as interest expense on the July pro forma income statement?
Answer:
a. Compute the amount of funds Ms. Bragg needs to borrow for June.
$101,800b. Determine the amount of interest expense the restaurant will report on the June pro forma income statement.
$0c. What amount will the restaurant report as interest expense on the July pro forma income statement?
$763.50Explanation:
beginning balance AR $53,000
cash sales $148,000
credit sales $586,000 (70% collected in current month and 30% collected next month)
cash outflows = ($713,000)
minimum desired cash balance $31,000
Cash balance June 30 = $31,000 (beginning cash balance) + $53,000 (collected from May's AR) + $148,000 (cash sales) + $410,200 ($586,000 x 70%) = $642,200
Ending cash balance + outflows = $31,000 + $713,000 = $744,000
June's cash deficit = $744,000 - $642,200 = $101,800
interest expense due on July 31 = $101,800 x 9% x 1/12 = $763.50
In a major metropolitan area, one chain of coffee shops has gained a large market share because customers feel its coffee tastes better than its competitors'.
Dozens of companies produce plain white socks. Consumers regard plain white socks as identical and don't care about who sells them their socks. The technology for producing socks is widely known, and any reputable person who wanted to start a sock manufacturing business could obtain a loan from a bank to buy the necessary machinery.
In a large city, two taxi companies own all the licenses that the city will grant to operate taxis. Consumers don't care which cab company they take—if they decide it's worth taking a cab, they flag down the nearest one. The government has granted a patent to a drug company for an experimental AIDS drug. That company is the only firm permitted to sell the drug.
1. How many firms?
A.One
B. Many or Few
2. Type of product
A. Unique
B. Anything
C. Standardized
D. Differentiated
3. Market Value
A. Perfect competition
B. Oligopoly
C. Monopolistic competition or monopoly
Answer: The answer is provided below
Explanation:
Coffee shop chain:
Many firms are supplying the needs of the market. But there is one particular coffee shop that has many customerw because it tastes bette. It is a differentiated product due to the fact that consumers feels it tastes is better than the taste of others. This is monopolistic competition.
White socks company:
Many firms arr producing the same output. This is a standardized product because each firm produces same homogenous output. This is a perfect competition. In a perfect competition, each firm is the price taker.
Taxi companies:
Few firms, or to be more precise only two taxi companies are in the market. We can deduce that their product is anything homogenous because the customers do not differentiate. Therefore the firms are in the oligopoly market.
Patented drug:
Only one single firm is in operation in the market, therefore this is a monopoly. There is one single seller in the market selling a unique drug that no firm else sells.
Suppose you have $ 200000 in a bank term account you earn 5% interest per annum from this account you anticipate that the inflation rate will be 4% during the year . However the actual inflation rate for the year is 6%. Calculate the impact of inflation on the bank term deposit you have and examine the effects of inflation in your city of residence with attention to food and accommodation expenses.
Answer:
Explanation:350
The key duties of a company's board of directors in the strategy-making, strategy-executing process include:________
1. taking the lead in formulating the company's strategic plan but then delegating the task of implementing and executing the strategic plan to the company's CEO and other senior executives.
2. overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making/strategy-executing skills.
3. approving the company's operating strategies, functional-area strategies, business strategy, and overall corporate strategy.
4. taking the lead in developing the company's business model and strategic vision.
5. coming up with compelling strategy proposals of their own to debate against those put forward by top management.
Answer:
2). Overseeing the company's financial accounting and financial reporting practices and evaluating the caliber of senior executives' strategy-making/strategy-executing skills.
Explanation:
A company's board of directors is primarily responsible for ensuring the appropriate management in the company keeping the interests of the shareholders in mind. Therefore, they constantly overview the financial accounting as well as financial reporting practices of the company so that there is no loophole. At the same time, they are responsible for assessing the efficacy of the skills and caliber of strategy-making and strategy-executing of senior executives as they make day-to-day decisions to run the company. Therefore, their efficacy would play a vital role in determining the company's success and growth. Thus, option 2 is the correct answer.
Lott Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2020, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $21,200, direct labor $12,720, and manufacturing overhead $16,960. As of January 1, Job 49 had been completed at a cost of $95,400 and was part of finished goods inventory. There was a $15,900 balance in the Raw Materials Inventory account.
During the month of January, Lott Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were also sold on account during the month for $ 134,200 and $ 173,800 , respectively. The following additional events occurred during the month.
1. Purchased additional raw materials of $ 99,000 on account.
2. Incurred factory labor costs of $ 77,000 . Of this amount $ 17,600 related to employer payroll taxes.
3. Incurred manufacturing overhead costs as follows: indirect materials $ 18,700 ; indirect labor $ 22,000 ; depreciation expense on equipment $ 13,200 ; and various other manufacturing overhead costs on account $ 17,600 .
4. Assigned direct materials and direct labor to jobs as follows.
Job No. Direct Materials Direct Labor
50 $ 11,000 $ 5,500
51 42,900 27,500
52 33,000 22,000
Required:
Calculate the predetermined overhead rate for 2020, assuming Lott Company estimates total manufacturing overhead costs of $924,000, direct labor costs of $770,000, and direct labor hours of 22,000 for the year.
Answer:
Predetermined manufacturing overhead rate= $42 per direct labor hour
Explanation:
Giving the following information:
Estimated manufacturing overhead= $924,000
Estimated direct labor hours= 22,000
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 924,000/22,000
Predetermined manufacturing overhead rate= $42 per direct labor hour
After years of experience, Dilcort Company reasonably estimated that a loss from a pending lawsuit was probable at September 30 of the current year. Dilcort Company estimated that the loss would amount to $57,500. Required: Prepare the journal entry, if any, to record the lawsuit at its September 30 year-end.
Answer:
Dr lawsuit expense $57,500
Cr other liabilities $57,500
Explanation:
Since it has been established that the lawsuit would be cost $57,500 based on past experience,it is required that a contingent liability be recognized in the books of accounts to reflect the possible obligation that may arise from the lawsuit by debiting lawsuit damages account with the expense and a corresponding liability account to record the likely obligation as shown below.
The lawsuit expense/damages would be debited since an increase in expense account is naturally a debit entry while other liability account is credited.
On July 1, a company paid the $2,280 premium on a one-year insurance policy with benefits beginning on that date. What will be the insurance expense on the annual income statement for the first year ended December 31
Answer:
The insurance expense on the annual income statement for the first year ended December 31 is $ 1,140.00
Explanation:
The insurance expense that would appear on the company's income statement for the year ended 31st December is the portion of the premium paid that relates to the commensurate timing horizon in the year i.e July 1 to 31 December,which gives six months in total.
Insurance expense=total premium paid*6/12
total premium paid is $2,280
insurance expense=$2,280*6/12=$ 1,140.00
The total factory overhead for Bardot Marine Company is budgeted for the year at $1,760,850, divided into four activities: fabrication, $858,000; assembly, $351,000; setup, $298,350; and inspection, $253,500. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:
Fabrication Assembly Setup Inspection
Speedboat 9,750 dlh 29,250 dlh 70 setups 122 inspections
Bass boat 29,250 9,750 515 853
39,000 dlh 39,000 dlh 585 setups 975 inspections.
Each product is budgeted for 5,000 units of production for the year. Determine the activity rates for each activity.
Fabrication $per direct labor hour
Assembly $per direct labor hour
Setup $ per setup
Inspection $per inspection
B. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.
Speedboat $per unit
Bass boat $per unit
Answer:
Instructions are below.
Explanation:
Giving the following information:
Activity - Speedboat - Bass boat:
Fabrication= 9,750 + 29,250= 39,000 direct labor hours
Assembly= 29,250 + 9,750= 39,000 direct labor hours
Setup= 70 + 515= 585 setups
Inspection= 122 + 853= 975 inspections
Department costs:
Fabrication= 858,000
Assembly= 351,000
Setup= 298,350
Inspection= 253,500
Each product is budgeted for 5,000 units of production for the year.
First, we need to calculate the predetermined overhead rate for each activity:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Fabrication= 858,000/39,000= $22 per direct labor hour
Assembly= 351,000/39,000= $9 per direct labor hour
Setup= 298,350/585= $510 per setup
Inspection= 253,500/975= $260 per inspection
Now, we can allocate overhead to each product line:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Speedboats= 22*9,750 + 9*29,250 + 70*510 + 122*260= $545,170
Bass boat= 22*29,250 + 9*9,750 + 515*510 + 853*260= $1,215,680
Finally, overhead per unit:
Speedboats= 545,170/5,000= $109.034
Bass boat= 1,215,680/5,000= $243.136
Vista Company installed a standard cost system on January 1. Selected transactions for the month of January are as follows. 1. Purchased 17,900 units of raw materials on account at a cost of $2.80 per unit. Standard cost was $2.60 per unit. 2. Issued 17,900 units of raw materials for jobs that required 17,520 standard units of raw materials. 3. Incurred 15,000 actual hours of direct labor at an actual rate of $4.80 per hour. The standard rate is $5.20 per hour. (Credit Factory Wages Payable.) 4. Performed 15,000 hours of direct labor on jobs when standard hours were 15,200. 5. Applied overhead to jobs at the rate of 100% of direct labor cost for standard hours allowed.
Journalize the January transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (Round answers to 0 decimal places, e.g. 125.)
Answer and Explanation:
The Journal entry is shown below :-
1. Raw Materials Inventory Dr, $46,540
Materials Price Variance Dr, $3,580
To Accounts Payable $50,120
(Being accounts payable is recorded)
Working note
Materials price variance = (Actual price - Standard Price) × Actual Quantity
= ($2.80 - $2.60) × 17,900
= $3,580 Unfavorable
Raw Material = Actual Quantity × Standard Price
= 17,900 × $2.60
= $46,540
Accounts Payable = Actual Quantity × Actual price
= 17,900 × $2.80
= $50,120
2. Work in Process Inventory Dr, $45,552
Materials Quantity Variance Dr, $988
To Raw Materials Inventory $46,540
(Being raw material inventory is recorded)
Working Note
Materials quantity variance = (Actual Quantity Used- Standard Quantity) × Standard Price
= (17,900 - 17,520) × $2.60
= $988 Unfavorable
Work in Process Inventory = Standard Quantity × Standard Price
= 17,520 × $2.60
= $45,552
Raw Material = Actual Quantity × Standard Price
= 17,900 × $2.60
= $46,540
3. Factory Labor Dr, $78,000
To Labor Price Variance $6,000
To Factory Wages Payable $72,000
(Being factory labor is recorded)
Working Note:-
Labor price variance = (Actual Rate - Standard Rate) × Actual Hour
= ($4.80 - $5.20) × 15,000
= $6,000 Favorable
Factory labor = Standard Rate × Actual Hour
= $5.20 × 15,000
= $78,000
Factory Wages Payable = Actual Rate × Actual Hour
= $4.80 × 15,000
= $72,000
4. Work in Process Inventory Dr, $79,040
To Labor Quantity Variance $1,040
To Factory Labor $78,000
(Being work in progress is recorded)
Working note
Labor Quantity variance = (Actual Hour - Standard Hour) × Standard Rate
= (15,000 - 15,200) × $5.20
= $1,040
Work in Process Inventory = Standard Hour × Standard Rate
= 15,200 × $5.20
= $79,040
Factory Labor = Actual Hour × Standard Rate
= 15,000 × $5.20
= $78,000
5. Work in Process Inventory Dr, $79,040
To Manufacturing Overhead $79,040
(Being manufacturing overhead is recorded)
Skysong Company, a machinery dealer, leased manufacturing equipment to Mays Corporation on January 1, 2017. The lease is for a 7-year period and requires equal annual payments of $30,259 at the beginning of each year. The first payment is received on January 1, 2017.Skysong had purchased the machine during 2016 for $95,000. Collectibility of lease payments is reasonably predictable, and no important uncertainties surround the amount of costs yet to be incurred by Skysong. Skysong set the annual rental to ensure an 9% rate of return.The machine has an economic life of 8 years with no residual value and reverts to Skysong at the termination of the lease.
Compute the amount of the lease receivable.The amount of the lease receivable $
Answer:
$ 165,998.41
Explanation:
The amount lease receivable is the present value of annual lease rental which is $30,259 per for 7 years.
The present value can be determined using the present value formula in excel given below:
=-pv(rate,nper,pmt,fv,type)
rate is the 9% rate of return per year
nper is the number of years the payment would be made which is 7
pmt is the regular lease payment per year which is $30.259
fv is the total payments payable by the leasee which is unknown
type is 1 since payment is received at the beginning of the year,it would have been zero if payments are expected end of the year
=-pv(9%,7,30259,0,1)=$165,998.41
The journal entry to record the purchase of materials on account in process cost accounting is:___________ 1. debit Raw Materials Inventory and credit Accounts Payable 2. debit Production Materials, and credit Accounts Payable 3. debit Accounts Payable and credit Raw Materials Inventory 4. debit Accounts Payable and credit Production Materials
Answer:
The correct option is the first one which is debit Raw Materials Inventory and credit Accounts Payable
Explanation:
The raw materials inventory which is the receiving account for the raw materials received into the factory is debited since receiving account or increase in asset account is naturally a debit entry according to the golden rule of double entry.
The credit goes to the accounts payable as obligation owed by the company to the supplier of the raw materials payable at a later date
Little Bobby, who is 5 years old, finds his older brother’s "Extendo Sword", a toy sword about a foot long that is sharp and springs out to 5 feet long when a button is pushed on the handle. The label on the sword says it is safe for children over 3 years of age. Bobby pushes the button when the sword is pointed toward his face and, just as all properly functioning "Extendo Swords" do, the sword shot out. Bobby is injured and under products liability, sues the toy store that sold the toy. Bobby will most likely: lose because of contributory negligence. lose if he cannot prove negligence on the part of the toy store. win on the basis of a manufacturing defect. win on the basis of a design defect. lose if the defendant can show that the sword was a state of the art design.
Answer: Win on the basis of a manufacturing defect
Explanation:
Under Products Liability, those who are involved in making or distributing a product which causes injuries such as manufacturers, distributors, suppliers, and retailers can be held liable for said injuries.
The product was stated to be safe for children above the age of 3 to be able to play with and yet injured Bobby who is 5 years of age. This means that the product is defective in design and so if Bobby can prove this then he should win the case.
At the end of August, Rothchild Company had completed Jobs 40 and 42. Job 40 is for 10,000 units, and Job 42 is for 11,000 units.The following data relate to these two jobs:On August 4, Rothchild Company purchased on account 12,000 units of raw materials at $14 per unit. On August 24, raw materials were requisitioned for production as follows: 5,000 units for Job 40 at $8 per unit and 6,200 units for Job 42 at $14 per unit.During August, Rothchild Company accumulated 3,500 hours of direct labor costs on Job 40 and 4,200 hours on Job 42. The total direct labor was incurred at a rate of $25.00 per direct labor hour for Job 40 and $23.50 per direct labor hour for Job 42.Rothchild Company estimates that total factory overhead costs will be $810,000 for the year. Direct labor hours are estimated to be 90,000.a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.Job 40 $Job 42 $b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to two decimal places.Job 40 $Job 42 $
Answer:
1.
The balance of Job 40 = $159000
The balance of Job 42 = $223300
2.
The cost per unit for job 40 = $15.90 / unit
The cost per unit for job 42 = $20.30 / unit
Explanation:
The task here is to:
1. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.
2. Determine the cost per unit for Jobs 40 and 42 at the end of August.
Now; to start with the first question .
From the data given ; we can represents our given data in an imaginary table form and determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.
Let's have a go on that:
Particulars Job 40 Job 42
Raw material cost
(5000 units × $8 /unit) $40,000
(6200 units × $14 /unit) $ 86,800
Direct labor cost
(3,500 hours × $25 / labor hour) $87,500
(4,200 hours × $23.50 / labor hour) $98,700
Factory Overhead Cost
($810,000/ 90,000 labor hours)×3500 $31,500
hours
(($810,000/ 90,000 labor hours)×4200 $37,800
hours
Total cost $159000 $223300
Thus;
The balance of Job 40 = $159000
The balance of Job 42 = $223300
2.
Cost per unit = Total cost of the job / Number of Units produced
For Job 40; the cost per unit will be = $159000/ 10000
= $15.90 / unit
For Job 42; the cost per unit will be = $223300/ 11000
= $20.30 / unit
Thus;
The cost per unit for job 40 = $15.90 / unit
The cost per unit for job 42 = $20.30 / unit
Sheffield Manufacturing spends 49 minutes per order on non-value-added activities. The total manufacturing cycle time is 1.8 hours. Calculate the manufacturing cycle efficiency. (Round answer to 1 decimal place, e.g. 5.1%.)
Answer:
The manufacturing cycle efficiency is 54.44%
Explanation:
Sheffield manufacturing spends 49 minutes per order
The total manufacturing cycle rime is 1.8 hours
Firstly we Convert 49 minutes to hours=49/60=0.82 hours, thus Sheffield manufacturing spends 49 minutes per order
Percentage of time spent on non-value added activities = 100% -Manufacturing cycle efficiency
(0.82/1.8)*100 = 100%-Manufacturing cycle efficiency
0.4555*100 = 100%-Manufacturing cycle efficiency
45.56% = 100%-Manufacturing cycle efficiency
Manufacturing cycle efficiency=100%-45.56% = 54.44%
According to the efficient market hypothesis, which of the following statements is true?
1. High-beta stocks are consistently overpriced.
2. Low-beta stocks are consistently overpriced.
3. Positive alphas on stocks will quickly disappear.
4. Negative alpha stocks consistently yield low returns for arbitrageurs.
Answer:
Positive alphas on stocks will quickly disappear.
Explanation:
This is a theory that tells or show that stock prices affect or reflect in availability of the stock in the market. Stocks producing abnormal excess returns will increase in price to eliminate the positive alpha.
While in the case above, it is said that positive alphas on stock will quickly disappear.
Markets are efficient in determining the prices of financial securities.
Investors tend to be rational.
In the other hand, if the efficient market hypothesis lies or is not seen to be the truth, a larger role for regulators to intervene in stock bubbles to prevent a boom and bust is enabled.
The difference between a standard and a budget is that:________.
A. a budget generally indicates a per unit amount while a standard indicates a total amount
B. a standard acts as an overall guide for operating the business on a planned course of action
C. a standard projects future costs while a budget examines past costs
D. a budget generally indicates a total amount while a standard indicates a per unit amount
In the project portfolio selection process,the preprocess phase is likely to involve:_______.
A) Determining selection methodologies and guiding strategic principles for project evaluation.
B) Prescreening to ensure projects fit broader strategic goals.
C) Considering interactions among various portfolio projects and interdependencies.
D) Analyzing and evaluating current projects that have passed a critical review gate.
Answer:
A) Determining selection methodologies and guiding strategic principles for project evaluation.
Explanation:
Project portfolio selection process is defined as the process by which various project portfolios are screened to ensure they align with organisational goals and objectives.
The aim of project portfolio selection is to maximise output of projects that are eventually selected for execution.
The preprocess involves selection of methodologies and guiding strategic principles for project evaluation.
This will ensure that the right projects are selected to meet the goals of the organisation
Removal for cause is a device used to prevent a prospective juror who is biased from serving on a case. true or false
Answer:
True
Explanation:
A Juror is a member of a jury in a court of law. It is expected that a Juror carries out his / her duty with a maximum objectivity without being partial or bias. For this reason , a set of criteria are used to screen potential Jurors during selection and if any is sound unqualified , such will be prevented from being part of a Jury.
The two methods of screening are peremptory where the attorney removes a Juror without giving any reason and the removal for cause where the potential Juror is removed because it is perceived that he will be impartial in the course of duty.
Assume that you are offered an annuity that pays $100 at the end of each year for 10 years. You could earn 8% on your money in other investments with equal risk. What is the most you should pay for the annuity
Answer:
The annuity is worth $671.01
Explanation:
Giving the following information:
Cash flow= $100
The number of years= 10 years.
Interest rate= 8%
To calculate the value of the annuity, we need to calculate the present value.
First, we need to calculate the final value:
FV= {A*[(1+i)^n-1]}/i
A= annual cash
FV= {100*[(1.08^10)-1]} / 0.08
FV= $1,448.66
Now, the present value:
PV=FV/(1+i)^n
PV= 1,448.66/(1.08^10)
PV= $671.01
Reporting Land Transactions on Statement of Cash Flows
On the basis of the details of the following fixed asset account, indicate the items to be reported on the statement of cash flows:
ACCOUNT Land ACCOUNT NO.
Balance
Date Item Debit Credit Debit Credit
Jan. 1 Balance 1,223,000
Mar. 12 Purchased for cash 404,000 1,627,000
Oct. 4 Sold for $222,000 190,000 1,437,000
Item Section of Statement of
Cash Flows Added or Deducted Amount
Mar. 12: Purchase of fixed asset Investing activities section Deducted $
Oct. 4: Sale of fixed asset Investing activities section Added $
Gain on sale of fixed asset (assume the indirect method) Operating activities section Deducted $
Answer: Please see below
Explanation:
Date Item Debit Credit Debit Credit
Jan. 1 Balance 1,223,000
Mar. 12 Purchased
for cash 404,000 1,627,000
Oct. 4 Sold for
$222,000 190,000 1,437,000
items Section for statement Added or Amount
of Cash flows Deducted
Mar. 12: Purchase
of fixed asset Investing activities Deducted$404,000
Oct. 4: Sale of
fixed asset Investing activities Added $222,000
Gain on sale of
fixed asset Operating activities Deducted $32,000
(assume the indirect method)
Sale of asset - credit of 190,000
=$222,000 -$190,000= 32,000.
According to indirect method,The statement of cash flows involves adjusting the net income to changes in balance sheet accounts to determine amount of cash accrued by operating activities.
Cash flows In the indirect method format follows the general classification of
-Cash flows from operating activities
-Cash flows from investing activities
-Cash flows from financing activities
Here, purchase of land would be an investing activity and would be deducted from net income.Sale of land would be an investing activity but added to net income and a gain on asset would be under operating activities and deducted from net income
10. Leon, a minor, signed a contract with Step-Up Employment Agency, in which Leon promised to pay a fee if Step-Up secured him a job as a pianist. Step-Up did find suitable employment, but Leon refused to pay the $500 fee since he was a minor. Can Step-Up recover the fee
Answer: No. Step Up can't recover the fee.
Explanation:
From the information given in the question, we are told that Leon, who is a minor, signed a contract with Step-Up Employment Agency, where he promised to pay a fee on the condition that Step-Up Employment Agency gets him a job as a pianist. Leon tyem refused to pay the $500 after h was given the job.
In this scenario, for Step Up Employment Agency to get their fee, that means they must have signed a legal contract with Leon. From them to sign a legal contract, the person must be a major but we are told that Leon is a minor. Even if there was a legal contract, it will be void since Leon is a minor. Therefore, Set -Up Employment agency will not be able to recover the fee.
