Answer:
A statement savings account can be drawn upon any time the customer requires cash (on demand). The customer can also deposit cash into the account at any time. The interest rate payable on the deposits is not fixed but fluctuates. A statement savings account is opened for a life-time and there is no fixed time for the deposits to stay.
The duration for which the Certificates of Deposit will be saved is fixed. A customer is not freely allowed to withdraw and deposit into the account. The customer withdraws at maturity. The interest rate is fixed and cannot be altered.
1. Both
2. Statement Savings Account
3. Certificate of Deposit
4. Certificate of Deposit
5. Statement Savings Account
Explanation:
A statement (or passbook) savings account is an ordinary savings account opened in a bank for depositing and withdrawing money regularly as needed by the customer.
A Certificate of Deposit (CD) is a fixed-term duration savings account, which is opened in a bank to enable the customer deposit some fixed amount that will not be withdrawn regularly by the customer until the maturity date. CDs are called time deposits because of the fixed time the deposits must stay.
Dickerson Co. is evaluating a project requiring a capital expenditure of $810,000. The project has an estimated life of 4 years and no salvage value. The estimated net income and net cash flow from the project are as follows: Year Net Income Net Cash Flow 1 $75,000 $285,000 2 100,000 290,000 3 109,000 190,000 4 36,000 125,000 $320,000 $890,000 The company's minimum desired rate of return is 12%. The present value of $1 at compound interest of 12% for 1, 2, 3, and 4 years is 0.893, 0.797, 0.712, and 0.636, respectively. Required: Determine the average rate of return on investment, including the effect of depreciation on the investment. Round your answer to one decimal place. %
Answer:
The average rate of return on investment is 19.8%
Explanation:
According to the given data we have the following:
Initial Investment = $810,000
Salvage Value = $0
Henc, Average Investment = (Initial Investment + Salvage Value) / 2
Average Investment = ($810,000 + $0) / 2
Average Investment = $405,000
Average Net Income = ($75,000 + $100,000 + $109,000 + $36,000) / 4
Average Net Income = $320,000 / 4
Average Net Income = $80,000
Therefore, Average Rate of Return on Investment = Average Net Income / Average Investment
Average Rate of Return on Investment = $80,000 / $405,000
Average Rate of Return on Investment = 19.8%
The average rate of return on investment is 19.8%
During Year 1, its first year of operations, Galileo Company purchased two available-for-sale investments as follows: Security Shares Purchased Cost Hawking Inc. 590 $20,709 Pavlov Co. 1,600 29,280 Assume that as of December 31, Year 1, the Hawking Inc. stock had a market value of $42 per share and the Pavlov Co. stock had a market value of $33 per share. Galileo Company had net income of $160,500 and paid no dividends for the year ending December 31, Year 1. All of the available-for-sale investments are classified as current assets. a. Prepare the Current Assets section of the balance sheet presentation for the available-for-sale investments.
Answer: Please see below for answer
Explanation:
Security Shares Purchased Cost
Hawking Inc. 590 $20,709
Pavlov Co. 1,600 $ 29,280
total $49,989
In December 31st, the Hawking Inc. stock with market value of $42 per share and the Pavlov Co. stock had a market value of $33
Stock Number of shares market value per share value
Hawking Inc. $42 590 $24,780
Pavlov Co. $33 1600 $52,800
Total value $77,580
Unrealized gain/loss = $77,580- $49,989= $27,591
Galileo Company Balance sheet
Current assets
Available for sale investments at cost $49,989
Allowance available for sale investments $27,591
Available for sale at fair value $77,580
You borrowed $30,000 to finance the education expenses for your senior year of college at the beginning of your senior year. The loan will be paid off over five years and the first installment will be due a year later. The loan carriers an interest rate of 7% per year and is to be repaid in equal annual installments over the next five years. Suppose you want to negotiate with the bank to defer the first loan installment until the end of year 2. (But you still desire to make five equal installments at 7% interest.) If the bank wishes to earn the same profit, what should be the new annual installment
Answer:
$7,828.869
Explanation:
For computing new annual installment first we have to determine the equivalent worth of borrowed amount i.e $30,000 which is shown below:
= Borrowed amount × (1 + interest rate)
= $30,000 × (1 + 0.07)
= $30,000 × 1.07
= $32,100
Now the new annual installment is
= Equivalent worth of borrowed amount × (A/P,7%,5%)
= $32,100 × 0.24389
= $7,828.869
Refer to the A/P table for determining the factor
The selected transactions below were completed by Cota Delivery Service during July: Indicate the effect of each transaction on the accounting equation by choosing the appropriate letter from the following list:
Increase in an asset, decrease in another asset. Increase in an asset, increase in a liability. Increase in an asset, increase in stockholders' equity. Decrease in an asset, decrease in a liability. Decrease in an asset, decrease in stockholders' equity.
1. Received cash in exchange for common stock, $35,000.
2. Purchased supplies for cash, $1,100.
3. Paid rent for October, $4,500.
4. Paid advertising expense, $900.
5. Received cash for providing delivery services, $33,000.
6. Billed customers for delivery services on account, $58,000.
7. Paid creditors on account, $2,900.
8. Received cash from customers on account, $27,500.
9. Determined that the cost of supplies on hand was $300 and $8,600 of supplies had been used during the month.
10. Paid cash dividends, $2,500.
Indicate the effect of each transaction on the accounting equation by listing the numbers identifying the transactions, (1) through (10), in column, and inserting at the right of each number the appropriate letter form the following list:
a. Increase in the asset, decrease in another asset.
b. Increase in and asset, increase in a liability.
c. Increase in an asset, increase in stockholders' equity.
d. Decrease in an asset, decrease in a liability.
e. Decrease in an asset, decrease in stockholders' equity.
Answer:
1.c
2.a
3.e
4.e
5.c
6.c
7.d
8.a
9.e
10.e
Explanation:
First it is important to know and understand the definition of Asset, Liability and stockholders' equity. Then establish if these elements increase or decrease in a transaction.
Assets are economic resources controlled by a company as a result of past events from which economic benefits are expected to flow into the entity.
Liabilities are present obligation that arises as a result of past event settlement of which would result in outflow of economic benefits from the entity.
Stockholders equity is the residue in Assets after removing the liabilities.
In what ways can succession planning be regarded as a type of contingency planning?
Answer & Explanation: A contigency plan refers to a plan to achieve an outcome other than in the usual plan. A succession planning involves identifying and developing new leaders who can easily replace exisiting leaders when the need arises.
Succession planning is a type of contingency plan as its goal is to accomodate the transfer of ownership/ managerial roles to a successor should the owner become disabled, dies or unable to operate business.
For example, a business owner may plan to transfer ownership of his business to his child but dies prematurely. Having already identified several successors, as a contingency plan one of them can run the business until the child mentioned in the will becomes of age and able to take over. This ensures the going concern of the business.
Sarah works for a company that has offered a promotion if she is willing to relocate. Sarah accepts the position and puts her house on the market right away. She sells her house the first day that the realtor holds an open house. The buyer agrees to pay cash for the full purchase price of the house. Sarah is thrilled, except that it means that she will have to put her furniture in storage until she finds another house in her new city. She enters into a written contract with Safe Storage, Inc. The agreement includes a clause excusing Safe Storage, Inc. from any liability for loss or damage, even if the loss or damage results from Safe Storage's negligent acts. Because of Self Storage's negligence, a fire destroys the warehouse and all of its contents, including Sarah's household goods and furniture. Sarah claims that Safe Storage, Inc. is liable for the full value of the contents, which is approximately $10,000. Is Sarah correct
Answer: Yes, because storage warehouses are strictly liable for loss or damage, regardless of fault and regardless of exculpatory clauses.
Explanation:
An exculpatory clause is a contract between two parties that relieves one party of liability if damages are caused during the execution of the contract. The party issuing the exculpatory clause is the one looking to be relieved of any potential liability. exculpatory clauses can also be rejected when they are unreasonable.
In this scenerio Sarah is right because storage warehouse are usually liable for loss or damages of goods regardless of a pre agreed exculpatory clause.
On May 9, 2017, Calvin acquired 250 shares of stock in Hobbes Corporation, a new startup company, for $68,750. Calvin acquired the stock directly from Hobbes, and it is classified as § 1244 stock (at the time Calvin acquired his stock, the corporation had $900,000 of paid-in capital). On January 15, 2019, Calvin sold all of his Hobbes stock for $7,000. Assuming that Calvin is single, determine his tax consequences as a result of this sale. If an amount is zero, enter "0". As a result of the sale, Calvin has: Ordinary loss: $ Short-term capital loss: $ Long-term capital loss: $
Answer:
Ordinary Loss: $50,000
Short Term Capital Loss : 0
Long Term Capital Loss : $11,750.
Explanation:
The objective of this question is to determine his tax consequences as a result of this sale
From the question given ; the result of the sale which Calvin possess is as follows:
Ordinary Loss: The Ordinary loss is said to be limited to $50,000 for individual. ( According to Section 1244 ; the section give opportunities for losses from sale of shares of small and domestic corporations to be deducted as ordinary losses instead of as capital losses up to a maximum of $50,000 for individual .)
Short Term Capital Loss is said to be zero If it's one year or less.
Long Term Capital Loss is $11,750. How obtained this desired output of $11,750 is as a result of the following:
We know that :
Value of shares Acquired $68,750
Calvin sold all of his Hobbes stock for $7,000 (i.e the selling price rate)
Also , the Ordinary loss = $50,000
Therefore :
Value of shares Acquired = $68,750 - $7,000 - $50,000 = $11,750
Schumacher Industries Inc. manufactures recreational vehicles. Schumacher Industries uses a job order cost system. The time tickets from June jobs are summarized as follows:
Job 11-101 $3,880
Job 11-102 2,630
Job 11-103 2,080
Job 11-104 3,190
Job 11-105 2,080
Factory supervision 1,800 Factory overhead is applied to jobs on the basis of a predetermined overhead rate of $22 per direct labor hour. The direct labor rate is $18 per hour.
Journalize the entry to record the factory labor costs. If an amount box does not require an entry, leave it blank.
Answer:
Explanation:
Job 11-101=$3,880
Job 11-102= $2,630
Job 11-103= $2,080
Job 11-104= $3,190
Job 11-105= $2,080
Total 13,860
Direct labor rate = $18
Predetermined overhead rate = $22
Direct labor hour = 13,860/18 = 770 hours
Applied factory overhead rate = 770 *22 = $16,940
Factory labor cost
Dr Cr
Work in progress 13,860
Factory Overhead 18,000
Wages payable 31,860
Factory Overhead
Work in progress 16,940
Factory overhead 16,940
Your coin collection contains 95 1952 silver dollars. If your grandparents purchased them for their face value when they were new, how much will your collection be worth when you retire in 2060, assuming they appreciate at an annual rate of 4.9 percent
Answer:
FV= $16,652.38
Explanation:
Giving the following information:
Your coin collection contains 95 1952 silver dollars.
Number of years= 2060 - 1952= 108
They appreciate at an annual rate of 4.9 percent.
To calculate the future value of the coins, we need to use the following formula:
FV= PV*(1+i)^n
FV= 95*(1.049^108)
FV= $16,652.38
The total dollar value of bison killed from Huntington Forest is f(b)=42b-1.1b^2, where b is the number of bison killed. The marginal cost of killing bison is 0. What is the optimal bison-killing tax (per bison) to avoid the tragedy of the commons in this forest?
Answer: 20.99
Explanation:
The optimal bison-killing tax is 20.99
Before the optimal bison-killing tax (per bison) is gotten, we had to calculate the optimum amount of killing first which is represented by b.
After b has been gotten, the value of b was 19.1 and this was slotted into the tax in order to get the value of t.
The analysis and explanation has been attached below
A firm's dividends have grown over the last several years. 3 years ago the firm paid a dividend of $1. Yesterday it paid a dividend of $7. What was the average annual growth rate of dividends for this firm? Round the answer to two decimal places in percentage form.
Answer:
The average annual growth rate of dividends for this firm is 90.05%
Explanation:
In order to calculate the average annual growth rate of dividends for this firm we would to have to use the following formula:
A=P(1+r/100)^n
where
A=future value
P=present value
r=rate of interest
n=time period.
7=1*(1+r/100)^3
(7/1)^(1/3)=(1+r/100)
(1+r/100)=1.9005
r=(1.9005-1)*100
=90.05%(Approx).
The average annual growth rate of dividends for this firm is 90.05%
Southwestern Wear Inc. has the following balance sheet:
Current assets $1,875,000
Accounts payable $375,000
Fixed assets 1,875,000
Notes payable 750,000
Subordinated debentures 750,000
Total debt $1,875,000
Common equity 1,875,000
Total assets $3,750,000
Total liabilities and equity $3,750,000
The trustee’s costs total $281,250, and the firm has no accrued taxes on wages. The debentures are subordinated only to the notes payable. If the firm goes bankrupt and liquidates, how much will each class of investors receive if a total of $2.5 million is received from the sale of the assets?
Answer:
The investors will receive $343,750
Explanation:
In order to calculate the amount each class of investors receive we would have to calulate first the Balance available for Investors as follows:
Balance available for Investors=Total funds received -Trustee’s cost
Balance available for Investors=$2,500,000 -$281,250
Balance available for Investors =$2,218,750
Therefore, Balance available for stock holder=Balance available for Investors-Payment to Accounts payable-Notes Payable-Subordinated debentures
Balance available for stock holder=$2,218,750 - $375,000 -$750,000 - $750,000
Balance available for stock holder= $343,750
The investors will receive $343,750
Printers Company pays a $25,000 annual membership fee to a trade association for paper wholesalers. The trade association estimates that 60% of its dues are allocated to lobbying activities. If amount is zero, enter, "0". a. Printers Company's total deductible expense for tax purposes is $ . b. Assume the same facts as above except that the $25,000 was incurred for in-house lobbying expenses. Printers Company's total deductible expense for tax purposes is $ .
Answer: a. $10,000. b. $0
Explanation:
Lobbying expenses are the money that are used to influence a legislative body either at the federal, state or local level. I'm general, the lobbying expenses are not typically deductible. The amount that was paid to the trade association which was not part of the lobbying will be as deduction.
a. We are told that the trade association estimates that 60% of its dues are allocated to lobbying activities. This means that (100% - 60%) = 40% wasn't part of the lobbying expenses. We will now find 40% of $25,000. This will be:
= 40% of $25,000
= 40/100 × $25000
= 0.4 × $25000
= $10,000
Therefore, the total deductible expense for tax purposes is $10,000
b. We are told that the $25,000 was incurred for in-house lobbying expenses. Therefore Printers Company's total deductible expense for tax purposes will be $0.
Fowler, Inc., just paid a dividend of $2.75 per share on its stock. The dividends are expected to grow at a constant rate of 6.5 percent per year, indefinitely. Assume investors require a return of 11 percent on this stock.
a. What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. What will the price be in three years and in fifteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
Answer:
Stock price now is $65.08
Stock price in 3 years is $78.61
Stock price in 15 years is $ 167.38
Explanation:
The current price of the stock is given by the stock price formula below:
stock price=Di*(1+g)/k-g
Di is the dividend just paid of $2.75 per share.
g is the growth rate of dividend of 6.5%
k is the investors' expected return of 11%
stock price=$2.75*(1+6.5%)/(11%-6.5%)=$ 65.08
In calculating stock price in 3 and 15 years,we use the future value formula
FV=PV*(1+r)^n
PV is the current price
r is the growth rate whereas the n is the number of years
Stock in 3 years=$65.08*(1+6.5%)^3=$78.61
Stock in 15 years=$65.08*(1+6.5%)^15=$ 167.38
1) Prepare an ending 2015 Income Statement and Balance Sheet from the following information: Sales $800,000; Cost of Goods Sold $300,000; Accounts Receivables $20,000; Bonds Outstanding $160,000; Accounts Payable $20,000; Advertising Expense $1,000; Administrative Expenses $35,000; Interest Expense $24,000; Depreciation Expense $40,000; Dividends Paid $137,000; Rent Expense $5,000; Accruals $20,000; Common Stock $100,000; Retained Earnings $245,000 (Beginning 0f 2015); Cash $20,000; Inventory $45,000; Net Fixed Assets $600,000 (Beginning of 2015). (Assume a 40% Tax Rate)
Answer:
Ending retained earning for 2015 = $345,000
Total Assets = $645,000
Shareholder's equity = $445,000
Total liabilities = $200,000
Explanation:
a. Income Statement for the year ended 2015
Details $
Sales 800,000
Cost of Goods Sold 300,000
Gross profit 500,000
Advertising Expense (1,000)
Administrative Expenses (35,000)
Depreciation Expense (40,000)
Rent Expense (5,000)
Operating income 419,000
Interest Expense (24,000)
Income before tax 395,000
Taxation (40% * $395,000) (158,000)
Net income 237,000
Dividend paid (137,000)
Retained earning for the year 100,000
Beginning retained earning 245,000
Ending retained earning 345,000
a. Balance sheet as at the year ended 2015
Details $ $
Assets:
Beginning Net Fixed Assets 600,000
Depreciation 40,000
Ending Net Fixed Assets 560,000
Current Assets:
Cash 20,000
Accounts Receivables 20,000
Inventory 45,000
Total Assets 645,000
Shareholder's Fund:
Common Stock 100,000
Ending retained earning 345,000
Shareholder's equity 445,000
Bonds Outstanding 160,000
Accounts Payable 20,000
Accruals 20,000
Total liabilities 200,000
Total equities and Liabilities 645,000
Purchases Transactions Nieman Company purchased merchandise on account from Springhill Company for $9,900, terms 2/10, n/30. Nieman returned merchandise with an invoice amount of $2,400 and received full credit. a. If Nieman Company pays the invoice within the discount period, what is the amount of cash required for the payment? If required, round the answer to the nearest dollar.
Answer:
$7,350
Explanation:
The terms 2/10, n/30 indicates that the customer would get a 2% discount if the discount is made within 10 days. If the payment is not made in this period, the customer would have to pay the complete amount within 30 days. Taking this into consideration and as Nieman returned merchandise with an invoice amount of $2,400, you have to subtract this amount from the purchased they made:
$9,900-$2,400= $7,500
Then, you have to calculate the 2% of $7,500 to find the discount and subtract it from $7,500:
$7,500*2%= $150
$7,500-$150= $7,350
According to this, if Nieman Company pays the invoice within the discount period, the amount of cash required for the payment is: $7,350.
Which of the following clauses states that full payment of damages to structures under the homeowners policy will be made only if the insurance equals 80 or more percent of the replacement cost of the structure and is carried on the property at the time of the loss?
a. Coinsurance clause.
b. Inflation rider clause.
c. Reinsurance clause.
d. Replacement clause
Answer: coinsurance clause
Explanation:
A coinsurance clause is a provision in the home insurance policy which requires the individual to carry coverage that is worth a certain percentage of the home's value. The failure to meet requirement will reduces the compensation after a loss.
Under the coinsurance clause, the insurance company will reimburses the value of damages to an insured asset for at least 80% of the replacement value of the asset. The reinsurance clause allows an insurer to take the reinsurance based on the original insurance.
On December 31, 2016, Yong sells his 10% interest in Catawissa LLC to Mei for $17,500. Yong is a calendar year taxpayer. Catawissa owns no hot assets, and its tax year ends on September 30. On October 1, 2016, Yong’s basis in the LLC interest was $11,000. His share of current LLC income is $4,000 for the period in which he owned the LLC interest (October 1 to December 31).
Yong recognizes a $____________ capital gain on the sale.
Answer:
$6,500
Explanation:
Capit gain on sales = sales of interest by Yong -basis of Yong in the LLC interest
Sales of interest by Yong $17,500
Less Basis of Yong in the LLC interest $11,000
Gain $6,500
Therefore Yong will tend to recognize a gain of $6,500 because he makes a sale of $17,500 in which his basis in the LLC interest was $11,000 making him to have a capital gain of $6,500
The journal entry to close the Fees Earned, $750, and Rent Revenue, $175, accounts during the year-end closing process would be: a. Dec. 31Income Summary925 Fees Earned750 Rent Revenue175 b. Dec. 31Income Summary925 Revenues925 c. Dec. 31Fees Earned750 Rent Revenue175 Income Summary925 d. Dec. 31Revenues925 Income Summary925
Answer:
c. Dec. 31Fees Earned750 Rent Revenue175 Income Summary925
Explanation:
The journal entry to record the closing of Fees earned and rent revenue is given below:
On Dec 31
Fees earned $750
Rent revenue $175
To Income summary $925
(Being the revenues and fees earned is closed)
For recording this we debited the fees earned and rent revenue and credited the income summary so that the correct recording and posting could be done
Therefore the total amount of $925 is credited to income summary
Electro Company manufactures an innovative automobile transmission for electric cars. Management predicts that ending finished goods inventory for the first quarter will be 86,000 units. The following unit sales of the transmissions are expected during the rest of the year: second quarter, 430,000 units; third quarter, 455,000 units; and fourth quarter, 247,500 units. Company policy calls for the ending finished goods inventory of a quarter to equal 20% of the next quarter's budgeted sales. Prepare a production budget for both the second and third quarters that shows the number of transmissions to manufacture.
Answer:
Production Budget
Quarter 2= 435,000 units
Quarter 3= 413,500 units
Explanation:
The production budgeted for a particular period is the expected units to be produced after adjusting the sales budget figures for opening and closing inventories.
Production budget = Sales volume + closing inventory - opening inventory
Quarter 2
Closing inventory in second quarter =20%× Quarter 3 sales= 20%×455,000
Opening inventory in Quarter 2 = Closing inventory quarter 1= 20% × quarter 2= 20%× 430,000
Production budget in Quarter 2 = 430,000 + (20%×455,000) - (20%× 430,000)=435000
Quarter 3
Closing inventory in third quarter =20%× Quarter 4 sales= 20%× 247,500
Opening inventory in Quarter 3 = Closing inventory quarter 2= 20%×455,000
Production budget in Quarter 3 = 455,000 + (20%× 247,500) +(20%×455,000)= 413500
Production Budget
Quarter 2= 435,000
Quarter 3= 413,500
The GDP of a country hasnt improved in the past three years. The central bank decided to take a measure that will increase the amount of
money people spend on goods and services. Which step should the central bank take?
A increase interest rates
OB
reduce interest rates
oc
increase taxes
OD
increase the required reserve ratio
OE increase the price of goods and services
The correct answer is B. Reduce interest rates
Explanation:
The GDP or gross domestic product is measured based on the amount of money products and services produced by a country cost. This concept is related to the amount of money people in a country spend on goods and services. Additionally, one of the ways to increase the GDP by motivating people to spend more money is if interest rates are reduced because if the interest rate is low (money people need to pay for a loan) consumers are more likely to request loans and use the money of these on goods and services. This increases the amount of services and goods and therefore has a positive impact on the GDP.
Kenner Company is considering two projects.
Project A Project B
Initial investment $85,000 $24,000
Annual Cash Flows $20,676 $6,011
Life of the Project 6 years 5 years
Depreciation per year $14,167 $4,800
Present value of an Annuity of $1 in Arrears
Periods 8% 10% 12 % 14 %
1 0.926 0.909 0.893 0.877
2 1.783 1.736 1.690 1.647
3 2.577 .487 2.402 .322
4 3.312 3.170 3.037 .914
5 3.993 3.791 3.605 14.433
6 4.623 14.355 4.111 3.889
7 5.206 14.868 4.564 14.288
8 5.747 5.335 4.968 4.639
9 6.247 5.759 5.328 4.946
10 6.710 6.145 5.650 5.216
Required:
a. Which of the two projects, A or B, is better in terms of internal rate of return?
Answer:
Project A is better
Explanation:
The internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested.
IRR can be calculated using a financial calculator
For project A ,
Cash flow in year 0 = $-85,000
Cash flow each year from year 1 to 6 = $20,676
IRR = 12%
For project B ,
Cash flow in year 0 = $-24,000
Cash flow each year from year 1 to 5= $6,011
IRR = 8%
Because project A has the higher IRR, it is better than project B.
To find the IRR using a financial calacutor:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
I hope my answer helps you
How can you apply Total Quality Management, Six Sigma, Kaizen & Lean principles to improve the management of an academic institution
Answer:
TQM , Six sigma and Kaizen principles are essential for the development of a quality education system.
Explanation:
TQM is the management principle that focuses on maintaining a total quality system in involves the clarification of the mission, vision, and values of academic institutions, many use it to improve the effectiveness and quality of the programs. Self-evaluation and improvement of human relations. Helps to identify the barriers in academic institutions. In education six sigma improves the quality of the matter taught the audio and visual devices like the projector in te conferencing and paper presentation etc. Skill development and creation of a value-added standard and help in emotional development. The lean and kaizen have a streamlined process to improve efficiency in administering large scale programs helps to reduce cost, time and learning, applying analytical skills and developing competencies and improve workflow and opportunities.The per-unit standards for direct labor are 2 direct labor hours at $15 per hour. If in producing 2900 units, the actual direct labor cost was $81600 for 5100 direct labor hours worked, the total direct labor variance is
Answer:
$5400 Favorable
Explanation:
Standard 2 hour at $15 per hour
Standard hours 2 hour per unit * 2900 units = 5800 hours
Total Standard cost = 5800 hours * $15 per hour = $87,000
Actual hours = 5100
Actual cost = $81600 / 5100 hours = $16 per hour
Variance = Standard - Actual
Labor hour Variance Favorable = 700 hours (5800 hours - 5100 hours)
Total Labor variance = $5400 ($87,000 - $81,600)
On November 10 of the current year, Flores Mills sold carpet to a customer for $9,000 with credit terms 4/10, n/30. Flores uses the gross method of accounting for cash discounts. What is the correct entry for Flores on November 17, assuming the correct payment was received on that date
Answer:
Dr cash $8,640
Dr sales discount $360
Cr accounts receivable $9,000
Explanation:
First and foremost , it is noteworthy that receiving payment on 17 November means that customer paid within the stipulated discount period of ten days, hence entitled to a 4% discount off the purchase price.
Cash received=$9,000*(1-4%)=$ 8,640.00
Discount allowed=$9,000-$ 8,640=$360
As a result of the above computations, the cash account would be debited with $8,640 while sales discount is debited with $360.
The accounts receivable is debited with the full purchase price of $9,000
Shen's Performance Pizza is a small restaurant in Philadelphia that sells gluten-free pizzas. Shen's very tiny kitchen has barely enough room for the three ovens in which his workers bake the pizzas. Shen signed a lease obligating him to pay the rent for the three ovens for the next year. Because of this, and because Shen's kitchen cannot fit more than three ovens, Shen cannot change the number of ovens he uses in his production of pizzas in the short run.
However, Shen's decision regarding how many workers to use can vary from week to week because his workers tend to be students. Each Monday, Shen lets them know how many workers he needs for each day of the week. In the short run, these workers are_________ inputs, and the ovens are__________ inputs.
Answer:
Variable
Fixed
Explanation:
Varbaibe inputs are inputs that can be changed or varied with production. If production is rising, the demand for variable inputs would increase. Because Shen varies his workers, they are a variable input.
Fixed inputs are inputs that cannot be varied or changed in the short run.
I hope my answer helps you
On October 1, 20Y6, Jay Crowley established Affordable Realty, which completed the following transactions during the month: Oct. 1 Jay Crowley transferred cash from a personal bank account to an account to be used for the business in exchange for common stock, $40,000. 2 Paid rent on office and equipment for the month, $4,800. 3 Purchased supplies on account, $2,150. 4 Paid creditor on account, $1,100. 5 Earned sales commissions, receiving cash, $18,750. 6 Paid automobile expenses (including rental charge) for month, $1,580, and miscellaneous expenses, $800. 7 Paid office salaries, $3,500. 8 Determined that the cost of supplies used was $1,300. 9 Paid dividends, $1,500. 1. Journalize entries for transactions Oct. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. 2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of October 31, 20Y6. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for October. 5. Determine the increase or decrease in retained earnings for October.
Answer and Explanation:
1. According to the scenario, the journal entries are shown below:
Journal Entry
October 1 Cash A/c Dr. $40,000
To Common stock A/c $40,000
(Being the exchange for the common stock is recorded)
October 2 Rent expenses A/c Dr. $4,800
To Cash A/c $4,800
(Being the paid rent on office and equipment is recorded)
October 3 Supplies A/c Dr. $2,150
To Accounts payable A/c $2,150
(Being the purchase of supplies is recorded)
October 4 Accounts payable A/c Dr. $1,100
To Cash A/c $1,100
(Being the cash paid is recorded)
October 5 Cash A/c Dr. $18,750
To Sales commission A/c $18,750
(Being the earned sales commission is recorded)
October 6 Automobile expense A/c Dr. $1,580
Miscellaneous expense A/c Dr. $800
To Cash A/c $2,380
(Being the automobile and miscellaneous expenses paid is recorded)
October 7 Office salaries expense A/c Dr. $3,500
To Cash A/c $3,500
(Being the office salaries paid is recorded)
October 8 Supplies expense A/c Dr. $1,300
To Supplies A/c $1,300
(Being the cost of supplies is recorded)
October 9 Dividend A/c Dr. $1,500
To Cash A/c $1,500
(Being the dividend paid is recorded)
2. Now the posting of various accounts are as follows
T Accounts
Cash A/c
Particular Amount ($) Particular Amount ($)
Common stock 40,000 Rent expenses 4,800
Sales commission 18,750 Account payable 1,100
Automobile expense 1,580
Miscellaneous expense 800
Office salaries expense 3,500
Dividend expense 1,500
Supplies Account
Particular Amount ($) Particular Amount ($)
Accounts payable 2,150 Supplies expenses 1,300
Accounts Payable
Particular Amount ($) Particular Amount ($)
Cash 1,100 Supplies 2,150
Common Stock
Particular Amount ($) Particular Amount ($)
Cash 40,000
Dividends
Particular Amount ($) Particular Amount ($)
Cash 1,500
Sales Commission
Particular Amount ($) Particular Amount ($)
Cash 18,750
Rent expense
Particular Amount ($) Particular Amount ($)
Cash 4,800
Office Salaries expense
Particular Amount ($) Particular Amount ($)
Cash 3,500
Supplies Expenses
Particular Amount ($) Particular Amount ($)
Supplies 1,300
Automobile Expense
Particular Amount ($) Particular Amount ($)
Cash 1,580
Miscellaneous expense
Particular Amount ($) Particular Amount ($)
Cash 800
3. Now unadjusted trail balance is presented below:
Unadjusted Trial Balance
Particular Debit Amount ($) Particular Credit Amount ($)
Cash 45,470 Accounts payable 1,050
Supplies 850 Common stock 40,000
Dividends 1,500 Sales Commission 18,750
Rent expense 4,800
Office salaries expense 3,500
Automobile expense 1,580
Supplies expense 1,300
Miscellaneous expense 800
Total 59,800 Total 59,800
4
a).Amount of total revenue recorded in the ledger
Sales commissions = $18,750
b). Amount of total expenses recorded in the ledger
Particular Amount ($)
Rent expense 4,800
Office salaries expense 3,500
Automobile expense 1,580
Supplies expense 1,300
Miscellaneous expense 800
Amount of total expenses
recorded in the ledger 11,980
c).Amount of Net income for October is
= Total Revenue - Total Expenses
= $18,750 - $11,980
= $6,770
d) Increase or decrease in retained earnings for October is
= Net Income - Dividends
= $6,770 - $1,500
= $5,270
All assets, expenses and dividend contains normal debit balance while the liabilities, revenues, and the stockholder equity contains normal credit balance
Norton Manufacturing expects to produce 2,900 units in January and 3,600 units in February. Norton budgets $20 per unit for direct materials. Indirect materials are insignificant and not considered for budgeting purposes. The balance in the raw materials inventory account (all direct materials) on January 1 is $38,650. Norton desires the ending balance in raw materials inventory to be 10% of the next month's direct materials needed for production. Desired ending balance for February is $51,100. What is the cost of budgeted purchases of direct materials needed for January
Answer:
Purchases= $26,550
Explanation:
Giving the following information:
Production:
January= 2,900 units
February= 3,600 units
Norton budgets $20 per unit for direct materials.
Beginning inventory raw materials= $38,650.
Desired ending inventory direct materials= 10% of the next month's direct materials needed for production.
To calculate the purchases of direct material, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= 2,900*20 + (3,600*0.1)*20 - 38,650
Purchases= $26,550
Lomani Ltd acquired two new machines for cash on 1 January 2017. The cost of machine A was $400 000, plus GST, and of machine B, $600 000, plus GST. Each machine was expected to have a useful life of 10 years, and residual values were estimated at $20 000 for machine A and $50 000 for machine B. Because of technological advances, Lomani Ltd decided to replace machine A. It traded in machine A on 31 March 2021 for a new machine, C, which cost $420 000. A $200 000, plus GST, trade-in was allowed for machine A, and the balance of machine C’s cost was paid in cash. Machine C was expected to have a useful life of 8 years and a residual value of $20 000. On 2 July 2021, extensive repairs were carried out on machine B for $66 000 cash. Lomani Ltd expected these repairs to extend machine B’s useful life by 4 years and it revised machine B’s estimated residual value to $19 500. Machine B was eventually sold on 1 April 2023 for $300 000, plus GST, cash. On 1 July 2023, Lomani Ltd decided to use the revaluation model for valuation of Machine C. The fair value of Machine C was assessed to be $220 000 and the future useful life was estimated to be 5 years, residual value remains the same. Lomani Ltd uses the straight-line depreciation method, recording depreciation to the nearest whole month. The end of the reporting period is 30 June. Required: Prepare general journal entries to record the above transactions and depreciation journal entries required at the end of each reporting period up to 30 June 2024. Required: Prepare general journal entries to record the above transactions and depreciation journal entries required at the end of each reporting period up to 30 June 2024
Answer:
2017
Machine A (Dr.) $400,000
Machine B (Dr.) $600,000
Cash (Cr.) $1,000,000
2018
Depreciation Expense (Dr.) $93,000
Accumulated Depreciation (Cr.) $93,000
2019
Depreciation Expense (Dr.) $93,000
Accumulated Depreciation (Cr.) $186,000
2020
Depreciation Expense (Dr.) $93,000
Accumulated Depreciation (Cr.) $279,000
2021
Machine C (Dr.) $420,000
Machine A (Cr.) $200,000
Cash (Cr.) $220,000
(To record trade in of machine A)
Repairs expense Machine B (Dr.) $66,000
Cash (Cr.) $66,000
(To record repairs of machine B)
2022
Depreciation Expense (Dr.) $79,450
Accumulated Depreciation (Cr.) $358,450
2023
Cash (Dr.) $300,000
Machine B (Cr.) $284,550
Gain on selling (Cr.) $15,450
Explanation:
Straight line depreciation recognize an assets carrying amount evenly over its useful life.
Straight line Depreciation = (Cost - Estimated Residual Value) / useful life
Depreciation expense for Machine A:
($400,000 - $20,000) / 10 years
= $38,000
Depreciation expense for Machine B:
($600,000 - $50,000) / 10 years
= $55,000
Depreciation expense for Machine C:
($420,000 - $20,000) / 8 years
= $50,000
Revised Depreciation of Machine B:
($314,000 - $19,500) / 10 years
= $29,450
Oriole, Inc., has four-year bonds outstanding that pay a coupon rate of 6.20 percent and make coupon payments semiannually. If these bonds are currently selling at $920.89. What is the yield to maturity that an investor can expect to earn on these bonds
Answer:
8.58%
Explanation:
For computing the yield to maturity we need to apply the RATE formula i.e to be shown in the attachment below:
Provided that,
Present value = $920.89
Assuming figure - Future value or Face value = $1,000
PMT = 1,000 × 6.20% ÷ 2 = $31
NPER = 4 years × 2 = 8 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after applying the formula
The yield to maturity is
= 4.29% × 2
= 8.58%
