Answer:
Following are the answer to this question:
Explanation:
3 reasons:
1. The tornado has always been something like never before in magnitude. Its city was damaged and 95% of its buildings are damaged. It gives you the chance to rebuild and green the city.
2. Building a green city would also inspire other cities to implement green technology in a tornado-ravaged area.
3. Greenburg is going to become a style icon and a model for the construction of a renewable town.
3 counter reason:
1. firstly, green technology is not inexpensive and would put public funds under pressure.
2. No one would cause a major lack of economic and private assets if Greenburg has been struck by a tornado of the very same size.
3. Its town can prioritize constructing tornado shelters that can respect and public assets rather than creating a green community.
Prepare general journal entries to record the following transactions. No explanations.Jan. 3 Paid office rent, $1,600.4 Bought a truck costing $50,000, making a down payment of $7,000.6 Paid wages, $3,000.7 Received $16,000 cash from customers for services performed.10 Paid $4,100 owed on last month's bills.12 Billed credit customers, $5,300.17 Received $1,800 from credit customers.19 Taylor Gordon, the owner, withdrew $1,700.23 Paid $700 on amount owed for truck.29 Received bill for utilities expense, $255.AccountsCashAccounts ReceivableTruckAccounts PayableTaylor Gordon, DrawingService FeesRent ExpenseWages ExpenseUtilities Expense
Answer:
Jan. 3 Paid office rent, $1,600.
Dr Rent expense 1,600
Cr Cash 1,600
4 Bought a truck costing $50,000, making a down payment of $7,000.
Dr Truck 50,000
Cr Cash 7,000
Cr Accounts payable 43,000
6 Paid wages, $3,000.
Dr Wages expense 3,000
Cr Cash 3,000
7 Received $16,000 cash from customers for services performed.
Dr Cash 16,000
Cr Service fees 16,000
10 Paid $4,100 owed on last month's bills.
Dr Accounts payable 4,100
Cr Cash 4,100
12 Billed credit customers, $5,300.
Dr Accounts receivable 5,300
Cr Service fees 5,300
17 Received $1,800 from credit customers.
Dr Cash 1,800
Cr Accounts receivable 1,800
19 Taylor Gordon, the owner, withdrew $1,700.
Dr Taylor Gordon, Drawing 1,700
Cr Cash 1,700
23 Paid $700 on amount owed for truck.
Dr Accounts payable 700
Cr Cash 700
29 Received bill for utilities expense, $255.
Dr Utilities expense 255
Cr Accounts payable 255
A local unemployment office keeps track of the number of new claims filed each day. Based on data collected, it determines that the expected number of new claims filed per day is 2.4 with a standard deviation of 0.8688. Suppose that the office is open five days per week. The expected number of new claims filed per week at this office is ________________________ . A. 4.344 B. 10 C. 12 D. 7.4 E. 5.25
Answer:
C. 12
Explanation:
As the expected number of new claims filed per day is 2.4 and the office is open 5 days per week, to be able to find the expected number of new claims filed per week, you have to multiply the expected number of claims per day for the number of days that the office is open in a week:
Expected number of new claims filed per week= 2.4*5= 12
According to this, the answer is that the expected number of new claims filed per week at this office is 12.
The expected number of new claims filed per week at this office is option C. 12
Calculation of the expected number of new claimed:Since the expected number of new claims filed per day is 2.4 with a standard deviation of 0.8688.
So per week, there is 5 days
So, here the expected number should be
= 2.4*5
= 12
hence, option c is correct.
learn more about claims here: https://brainly.com/question/22076057
Doctor Company prepared the tabulation below at December 31, 2017. Net Income $307,000 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation expense $32,000 Decrease in accounts receivable $50,000 Increase in inventory $12,000 Decrease in accounts payable $8,600 Increase in income taxes payable $1,500 Loss on sale of land $5,000 Net cash provided (used) by operating activities Show how each item should be reported in the statement of cash flows.
Answer:
$374,900
Explanation:
Doctor Company Statement of Cash Flow
Net Income $307,000
Reconciliation of net income to net cash:
Depreciation expense 32,000
.
Decrease in accounts receivable 50,000
Increase in inventory (12,000)
Decrease in accounts payable (8,600)
Increase in income taxes payable 1,500
Loss on sale of land 5,000
Net cash provided (used)by operating activities $374,900
A protective put strategy is Multiple Choice a long call plus a short put on the same underlying asset. None of the options are correct. a long put plus a long call on the same underlying asset. a long put plus a long position in the underlying asset. a long put plus a short call on the same underlying asset.
Answer:
a long put plus a long position in the underlying asset.
Explanation:
A protective put strategy is a long put plus a long position in the underlying asset. It is a risk management strategy that makes use of options contracts which are employed by investors to protect or guard their investments against a potential loss in stocks or assets such as commodities, indexes and currencies. The protective put strategy helps to mitigate or limit risk associated with buying stocks for the first time.
Generally, the value of the underlying asset is anticipated to decrease by the buyers while the value of the underlying asset is anticipated by sellers of call options to also decrease.
Hence, considering the prospective option holder, when the exercise price is higher, it means that the call options are worth less. Also, when the exercise price is higher, it means that the put options are worth more.
On October 31, 2021, Damon Company’s general ledger shows a checking account balance of $8,415. The company’s cash receipts for the month total $74,440, of which $71,325 has been deposited in the bank. In addition, the company has written checks for $72,485, of which $71,090 has been processed by the bank. The bank statement reveals an ending balance of $12,165 and includes the following items not yet recorded by Damon: bank service fees of $210, note receivable collected by the bank of $5,600, and interest earned on the account balance plus from the note of $620. After closer inspection, Damon realizes that the bank incorrectly charged the company’s account $540 for an automatic withdrawal that should have been charged to another customer’s account. The bank agrees to the error. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2021. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
The correct ending balance of cash on October 31, 2021 is $14,425.
Explanation:
A bank reconciliation refers to the process whereby the bank account balance in the books of account of a company or an entity is reconciled to the balance on the most recent bank statement obtained from bank of the entity.
Therefore, to prepare a bank reconciliation to calculate the correct ending balance of cash on October 31, 2021, all the amount which have already being included as either as additions or subtractions in the bank statement but has not been recorded by the entity will be added or subtracted from the bank balance as appropriate. Based on the information in the question, this can be done as follows:
Damon Company
Bank Reconciliation on October 31, 2021.
Details $
Balance as per checking account 8,415
Note receivable collected by the bank 5,600
Interest earned 620
Bank service fees of (210)
Balance per reconciliation by the company 14,425
Therefore, the correct ending balance of cash on October 31, 2021 is $14,425.
Ace Industries prepares its statement of cash flows using the direct method. Ace sold equipment with a book value of $6,400.00 at a loss of $800.00. The amount to be reported on the statement of cash flows under operating activities is A. $0.00. B. $800.00.
Answer:
Option B,$800 is correct
Explanation:
The operating activities need to be adjusted for loss made on sale of equipment which is not a cash flow in actual sense by adding back the loss to the net income and showing the cash received from the disposal as an inflow under investing activities.
As a result ,the correct option is B,$800,which should be added back to net income in order to show the impact of non-cash items in the statement of cash flows Ace industries
a. Present one recent instance (within the last 50 years only) whereby a language, custom or national culture has been lost or diminished by the elimination or blurring of an existing border via globalization. (Please select non-U.S. examples)
b. By extension, how have global oligopolies benefited from the decrease in local competition?
Answer: 1. A. China in Zambia
B. Increased Market Share
Explanation:
A. China in Zambia
For years now many have worried about Chinese influence in China and what they view as subtle attempts by China to engage in modern day Colonialism through methods such as Predatory Loaning practices.
One glaring example is that of Zambia.
There are several ways in which the Chinese have established a foothold in Zambia and are making the country lose its sovereignty and national culture.
1. Loans for Infrastructure
China has invested massively in Zambia which is a big Copper exporter to enable them mine and capture the Copper that Zambia has for use in production in China. In the last 6 years, Zambia has embarked on over 29 projects all funded by about $9 billion in Chinese loans. With such loans being owed, the amount of Chinese influence will be great.
2. Small Scale Entrepreneurs
Chinese people have emigrated to Zambia in droves and some of them have started street level businesses also called Chinese Shops where they sell every day goods ranging from AA batteries to bicycles. These put pressure and compete with local Entrepreneurs who might not be able to get those goods as cheaply as the Chinese can from China. This as well as the importation of Chinese goods and services to feed the Chinese people involved has led to Zambian adopting Chinese foods and goods for themselves as well.
3. Political Interference
With such a huge investment in Zambia, many have noted with concern that China often meddles in the politics of the Southern African nations by picking candidates that will be more friendly to their Economic aspirations. This directly leads to a loss of sovereignty as well as an erosion in the independence of the national culture.
2. Oligopolies refer to firms that exist in an industry that has very few competitors and with the less competitions have a chance to make huge profits. Getting into the industries they operate in can be quite difficult due to high start-up costs as well as already well established competition. These include industries like the Motor and Aeroplane manufacturing industries.
As a result of Globalization, these companies have spread across the globe and as they are already established, they have the unique opportunity to charge less for their goods due to Economies of Scale. This allowed them to discourage local manufacturers in the newer companies they came to which could not hope to compete with such giants. This enabled the Oligopolies to capture the market share that the local competitors gave up thereby increasing the market share of these Oligopolies and by extension their Profitability.
Jameson's Manufacturing Inc.'s debits to Work in Process-Assembly Department for July, together with data concerning production, are as follows:
July 1, work in process:
Materials cost, 3,000 units $ 8,000
Conversion costs, 3,000 units, 66.7% completed 6,000
Materials added during July, 10,000 units 30,000
Conversion costs during July 31,000
Goods finished during July, 11,500 units 0
July 31 work in process, 1,500 units, 50% completed 0
All direct materials are placed in process at the beginning of the process and the first-in, first-out method is used to cost inventories. The materials cost per equivalent unit for July is:__________.
A. $3.00
B. $3.80
C. $2.92
D. $2.31
Answer:
Option A is correct
Cost per equivalent unit for material - $3
Explanation:
Cost per equivalent unit = Total direct material cost / Total equivalent unit
Equivalent units of materials
Item Equivalent unit
Opening inventory 3000×0% = 0
Fully worked 8,500× 100% = 8,500
Closing inventory 1,500 ×100%= 1,500
Total equivalent units 10,000
Notes:
Fully worked represent the units started and completed in July
Fully worked = newly introduced units in July - Closing inventory in July
Fully worked = 10,000 -1500 = 8,500
Cost per equivalent unit = Total direct material cost / Total equivalent unit
= 30,000/10,000=$3
Cost per equivalent unit for material =$3
A sole proprietorship was started on January 1, 2018, when it received $55,500 cash from Marlin Jones, the owner. During 2018, the company earned $43,600 in cash revenues and paid $19,080 in cash expenses. Jones withdrew $6,100 cash from the business during 2018.
Required:
Prepare the income statement. capital statement (statement of changes in equity). balance sheet. and statement of cash flows for Jones's 2018 fiscal year.
Answer:
a. Net income = $24,520
b. Ending capital = $73,920
c. Total assets = $73,920; and Total Equities and Liabilities = $73,920.
d. Ending cash balance = $73,920.
Explanation:
a. Income statement
Details Amount ($)
Revenue 43,600
Expenses 19,080
Net income 24,520
b. Capital statement (statement of changes in equity)
Details Amount ($)
Beginning capital 55,500
Net income 24,520
Withdrawal (6,100)
Ending capital 73,920
c. Balance sheet.
Details Amount ($)
Assets:
Cash 73,920
Total assets 73,920
Equity and Liabilities:
Capital 73,920
Total 73,920
d. Statement of cash flows
Details Amount ($) Amount ($)
Cash from operating activities:
Cash from revenue 43,600
Cash paid for expenses (19,080)
Cash generated from operating activities 24,520
Cash flow from financing activities:
Capital introduced 55,500
Cash withdrawal (6,100)
Cash generated from financing activities 49,400
Net cash generated 73,920
Beginning cash balance 0
Ending cash balance 73,920
Analysis of an income statement, balance sheet, and additional information from the accounting records of Gadgets, Inc., reveals the following items.
Required: Select the section of the statement of cash flows in which each of these items would be reported: operating activities (indirect method), investing activities, financing activities, or a separate noncash activities note.
1. Purchase of a patent. 2. Depreciation expense. 3. Decrease in accounts receivable. 4. Issuance of a note payable. 5. Increase in inventory. 6. Collection of notes receivable. 7. Purchase of equipment. 8. Exchange of long-term assets. 9. Decrease in accounts payable. 10. Payment of dividends.
Answer and Explanation:
The categorization is shown below:
1 Purchase of a patent = Investing activities as it represents in a negative sign because it is a cash outflow
2 Depreciation expense Operating activities as it is added to the net income
3 Decrease in accounts receivable = Operating activities as it is added to the change in adjustments column
4 Issuance of a note payable = Financing activities as it represents in a a positive sign because it is a cash inflow
5 Increase in inventory = Operating activities as it is deducted from the change in adjustments column
6 Collection of note receivable = Investing activities as it represents in a positive sign because it is a cash inflow
7 Purchase of equipment = Investing activities as it represents in a negative sign because it is a cash outflow
8 Exchange of long term assets = Separate non cash activities note as it does not involved any cash transactions
9 Decrease in accounts payable = Operating activities as it is deducted from the change in adjustments column
10 Payments of dividend = Financing activities as it represents in a negative sign because it is a cash outflow
Larkspur, Inc. uses a periodic inventory system. Its records show the following for the month of May, in which 80 units were sold.
Date Explanation Units Unit Cost Total Cost
May 1 Inventory 28 $9 $252
15 Purchase 26 10 260
24 Purchase 39 11 429
Total 93 $941
Required:
1. Calculate the weighted-average unit cost. (Round answer to 3 decimal places, e.g. 5.125.)
2. Calculate the ending inventory at May 31 using the FIFO, LIFO and average-cost methods. (Round answers to 0 decimal places, e.g. 125.)
Answer:
Explanation:
Date Unit Unit cost Total Goods sold Cost Total
May 1 28 9 252 28 9 252
May 15 26 10 260 26 10 260
May 24 39 11 429 26 11 286
Total 93 941 80
1) Weighted average unit cost = 941/93 = $10.118
FIFO method
2)Ending inventory (93-80)*11 =$ 143
FIFO method assumes that the first set of inventory are the first to be sold
LIFO method
LIFO assumes that the last set of inventory are the first to be sold
Goods Sold Cost Total
39 11 429
26 10 260
15 9 135
Ending Inventory = (93-80)*9 = $117
Average Cost Method
Ending Inventory = 13 * 10.118 =$131.534
Why did the Federal Reserve allow the Bank of United States to fail in 1930? A. The Fed was prohibited from aiding the bank because its assets were concentrated in real estate. B. The Fed did not want to be viewed as rewarding the poor business decisions of the bank's managers. C. The Fed was unable to obtain the approval of the U.S. Treasury for its purchase of the bank's toxic assets. D. The bank's managers refused to abide by Fed rules governing the use of Fed loans. Why did the Federal Reserve allow Lehman Brothers to fail in 2008? A. The Fed did not have the legal authority to assist an investment bank. B. By the time the Fed understood the extent of the trouble at Lehman Brothers, it was much too late to act. C. The Fed believed that Lehman Brothers had found a suitable buyer and would recover. D. The Fed feared that assisting Lehman Brothers would increase the extent of moral hazard in the financial system. Contrast the Fed's actions following the failure of the Bank of United States with its actions following the failure of Lehman Brothers. A. The Fed aggressively intervened following the 1930 failure but remained largely inactive for several years following the 2008 failure. B. The Fed intervened aggressively following the 2008 failure but remained largely inactive for several years following the 1930 failure. C. The Fed's actions following both failures were the same; it aggressively intervened with assistance
Answer: 1. B. The Fed did not want to be viewed as rewarding the poor business decisions of the bank's managers.
2. D. The Fed feared that assisting Lehman Brothers would increase the extent of moral hazard in the financial system.
3. B. The Fed intervened aggressively following the 2008 failure but remained largely inactive for several years following the 1930 failure.
Explanation:
1. In 1930 when the Great Depression was at it's early stages, the Central Bank could have done some things that would have reduced it's impact on the world but they remained passive and did little. One of the reasons was that there was a lack of cohesion between the Fed Districts and some of the directors subscribed to the "liquidationist" which meant that companies that engaged in adverse financial decisions be allowed to fail to as to prune the financial system and make it better. This contributed to the failure to help the Bank of the United States.
2. The Fed did not want to be seen as aiding Moral Hazard when they refused to bail out the Lehman Brothers in 2008. The Lehman Brothers had engaged in very risky transactions that brought it to ruin in 2008 and the Central Bank did not want to encourage the precedent of saving Banks that did so. Moral Hazard is when a risky action is engaged in by a company or person because they will not pay for the risk if things go awry. For example, a person with car insurance might drive more recklessly because they know that if the car crashes, the insurance will cover it. This is what the Fed did not want to encourage. A situation where Banks would engage in risky actions knowing that the Fed would back them up.
3. In the 1930s during the Great Depression, the Fed did not do enough to stem the depression because there was not coordination amongst the districts. They could not agree on a way forward and so did little. They even admitted their failure when in 2002, a member of the Board of Governors called Ben Bernanke said they could have done more.
In 2008 though, the Fed stepped in to help the economy get back on track. They reduced Interest rates and poured money into the economy through various ventures that helped the American public amongst others. Their actions ensured that the 2008 financial crises did not last as long as the Great Depression.
Nevertire Ltd purchased a delivery van costing $52,000. It is expected to have a residual value of $12,000 at the end of its useful life of 4 years or 200,000 kilometers. Ignore GST.
Required:
a) Assume the van was purchased on 1 July 2019 and that the accounting period ends on 30 June. Calculate the depreciation expense for the year 2019–20 using each of the following depreciation methods
straight-line.
diminishing balance (depreciation rate has been calculated as 31%).
units of production (assume the van was driven 78,000 kilometers during the financial year).
b) Record the adjusting entries for the depreciation on 30 June 2021 using a diminishing balance method.
c) Show how the van would appear in the balance sheet prepared at the end of year 2 using the Straightline method.
Answer:
a.
Straight line method
This method gives a uniform depreciation figure over the lifetime of the asset. Formula is,
= ( Cost - Residual Value) / Useful life
= (52,000 - 12,000) / 4
= $10,000
Diminishing Balance Method
This method applies depreciation at a faster rate so that the assets depreciates faster in it's earlier years.
Formula is,
= Cost * Depreciation rate
= 52,000 * 31%
= $16,120
Units of Production
This method depreciates based on the usage of the asset vs the total capacity of the asset. Assuming the van was driven 78,000 kilometers during the financial year
Formula is,
= (( Cost - Residual value) * units for the year) / Estimated production capacity
= ((52,000 - 12,000)*78,000)/200,000
= 3,120,000 / 200,000
= $15,600
b.
Date
June 30 2021
DR Depreciation $11,123
CR Accumulated Depreciation $11,123
Working
June 30 2021 Depreciation
= ( Cost - 2020 Depreciation ) * 31%
= (52,000 - 16,120 ) * 31%
= 35,880 * 31%
= $11,123
c. Straight line depreciation is constant so Value at the second year using Straight line will be,
= Cost - 2020 Depreciation - 2021 Depreciation
= 52,000 - 10,000 - 10,000
= $32,000
Balance sheet excerpt,
Particulars Amount
Assets
Fixed assets
Vechicles $32,000
Krizun Industries makes heavy construction equipment. The standard for a particular crane calls for 14 direct labor-hours at $16 per direct labor-hour. During a recent period 1,000 cranes were made. The labor efficiency variance was $4,400 Unfavorable. How many actual direct labor-hours were worked
Answer:
14,275= actual hours
Explanation:
Giving the following information:
The standard for a particular crane calls for 14 direct labor-hours at $16 per direct labor-hour.
During a recent period, 1,000 cranes were made.
The labor efficiency variance was $4,400 Unfavorable.
To determine the actual hours worked, we need to use the direct labor efficiency variance formula:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
-4,400= (14*1,000 - actual hours)*16
-4,400= 224,000 - 16actual hours
228,400/16= actual hours
14,275= actual hours
Differential Analysis for a Discontinued Product A condensed income statement by product line for Healthy Beverage Inc. indicated the following for Fruit Cola for the past year: Sales $12,750,000 Cost of goods sold 8,500,000 Gross profit $ 4,250,000 Operating expenses 6,000,000 Loss from operations $ (1,750,000) It is estimated that 25% of the cost of goods sold represents fixed factory overhead costs and that 15% of the operating expenses are fixed. Because Fruit Cola is only one of many products, the fixed costs will not be materially affected if the product is discontinued. a. Prepare a differential analysis dated January 5 to determine whether Fruit Cola should be continued (Alternative 1) or discontinued (Alternative 2). If an amount is zero, enter "0". Use a minus sign to indicate a loss. Differential Analysis Continue Fruit Cola (Alt. 1) or Discontinue Fruit Cola (Alt. 2) January 5 Continue Fruit Cola (Alternative 1) Discontinue Fruit Cola (Alternative 2) Differential Effect on Income (Alternative 2) Revenues $ $ $ Costs: Variable cost of goods sold Variable operating expenses Fixed costs Income (Loss) $ $ $ b. Should Fruit Cola be retained
Answer:
Healthy Beverage Inc.
a) Differential Analysis
1) Continue Fruit Cola (Alt. 1)
Sales $12,750,000
Cost of goods sold 8,500,000
Gross profit $4,250,000
Operating expenses 6,000,000
Loss from operations ($1,750,000)
2) Discontinue Fruit Cola (Alt. 2)
Differential Effect on Income (Alternative 2):
Fixed costs:
Cost of goods sold $2,125,000
Operating expenses 900,000
Income (Loss) ($3,025,000)
b. Should Fruit Cola be retained ?
The production and sale of the Fruit Cola should be continued. Discontinuing it would not save the company the incurrence of the fixed cost.
Explanation:
Differential analysis is a managerial accounting technique for analyzing the different costs and benefits that would arise from alternative solutions to a particular problem.
In the above scenario, discontinuing the production and sale of Fruit Cola would not save the company the fixed costs, so the product should be continued. It is not the product that is causing the net loss but allocated fixed costs. Fixed cost is a sunk cost that is not relevant in differential analysis type of decision making.
The capitalist economy comprises two forms of economic organization, the market mechanism operated by prices and the administrative mechanism of firms. a. The market mechanism is referred to as the "visible hand" while the administrative mechanism of firms is referred to as the "invisible hand". b. The market mechanism is referred to as the "invisible hand" while the administrative mechanism of firms is referred to as the "visible hand". c. The simultaneous operation of both "hands" means that the capitalist system is often referred to as an "ambidextrous organization". d. The notion of the capitalist economy as governed by market processes is a myth. In reality the global capitalist economy is controlled by large corporations.
Answer:
Option B: The market mechanism is referred to as the "invisible hand" while the administrative mechanism of firms is referred to as the "visible hand"
Explanation:
The invisible hand of the market mechanism is simply the known first form of the market as it is the point in which individuals and firms make independent decisions and well guided by market prices. Deliberate and conscious global planning is not needed in invisible hand market mechanism.
The visible hand market mechanism is also called administrative mechanism as it involves active planning in coordinating players.
Economic decisions are usually in the hierarchy that is the firm by managers and imposed through a hierarchy.
The following transactions are for Kingbird Company.
1. On December 3, Kingbird Company sold $450,000 of merchandise to Blossom Co., on account, terms 1/10, n/30. The cost of the merchandise sold was $310,000.
2. On December 8, Blossom Co. was granted an allowance of $22,000 for merchandise purchased on December 3.
3. On December 13, Kingbird Company received the balance due from Blossom Co.
Instruction:
Prepare the journal entries to record these transactions on the books of Mack Company. Mack uses a perpetual inventory system.
Answer and Explanation:
The Journal entries are shown below:-
1. Account Receivable Dr, $450,000
To Sales revenue $450,000
(Being credit sales is recorded)
here we debited the accounts receivable as it increased the assets and we credited the sales revenue as it also increased the sales.
Cost of goods sold Dr, $310,000
To Inventory $310,000
(Being Cost of goods sold is recorded)
here we debited the cost of goods sold as it increased the expenses and we credited the inventory as it decreased the assets
2. Sales return and allowances Dr, $ 22,000
To Account Receivable $22,000
(Being sales return is recorded)
here we debited the sales return and allowances as it increased the sales return and we credited the accounts receivable as it decreased the assets
3. Cash Dr, $423,720
Sales discount Dr, $4,280 ($428,000 × 1%)
To Account Receivable $428,000 ($450,000 - $22,000)
(Being cash and sales discount is recorded)
Here we debited the cash and sales discount as it increased the assets and sales discount and we credited the accounts receivable as it decreased the assets
The adjusted trial balance columns of the worksheet for Bridgeport Company are as follows.
Bridgeport Company
Worksheet (Partial)
For the Month Ended April 30, 2019
Adjusted Trial Balance
Account Titles Dr. Cr.
Cash 10,000
Accounts Receivable 8,080
Prepaid Rent 2,500
Equipment 22,700
Accumulated Depreciation—Equip. 5,500
Notes Payable 5,700
Accounts Payable 5,500
Common Stock 19,460
Retained Earnings 8,100
Dividends 3,400
Service Revenue 15,000
Salaries and Wages Expense 10,980
Rent Expense 900
Depreciation Expense 700
Interest Expense 60
Interest Payable 60
Totals 59,320 59,320
Journalize the closing entries at April 30.
Post the closing entries to Income Summary and Retained Earnings.
Prepare a post-closing trial balance at April 30.
Answer:
The purpose of the post closing trial balance is to verify thtat the debit totals equal credit totals of the permananet accounts and temperoray accounts have zero balances.
Explanation:
Bridgeport Company
Closing Entries
Date Particulars Debit Credit
Apr 30 Income Summary 12,640
Common Stock 19,460
Salaries & Wages Expense 10,980
Rent Expense 900
Depreciation Expense 700
Interest Expense 60
Closing Expense Accounts to Income Summary
Service Revenue 15,000
Income Summary 15,000
Closing Revenue Accounts to Income Summary
Retained Earnings 8,100
Income Summary 8100
To close retained earnings to income summary
Retained Earnings 3400
Dividends 3400
To close dividends
Bridgeport Company
Post Closing Trial Balance
Debit Credit
Cash 10,000
Accounts Receivable 8,080
Prepaid Rent 2,500
Equipment 22,700
Accumulated Depreciation—Equip. 5,500
Common Stock 19,460
Notes Payable 5,700
Accounts Payable 5,500
Interest Payable 60
Capital / RE 7060
Total 43280 43280
QuickBooks Online offers many solutions for categorizing financial transactions. The most common categories used are Chart of Accounts and Products and Services items. Which 4 additional lists are available to categorize financial activity and further optimize QuickBooks Online for your client? (Select all that apply)
Answer:
- class and/or location tracking
- projects
- sub-customers
Explanation:
Remember, QuickBooks online is an Enterprise resource tool that allows businesses manage their inventory and transactions which includes reports that would show details about projects, sub-customers and location.
Joanie recognizes that the board and CEO are particularly worried that individuals will post negative information about the company on company-sponsored social media sites. Joanie create what specific set of policies in response for how to contend the employees?
Answer:
Should create a non disclosure agreement policy
Explanation:
This is a legally binding agreement that mandates parties to a contract in this case between an employer with an employee, in which the employee agrees not to disclose publicly or to any one negative information about the company that is deemed confidential (secret or private), and that may affect the company negatively.
Thus, to reduce the worries of the board and CEO, Joanie should create a non disclosure agreement signed by employees.
Consumer _____ refers to the personal, social, and economic significance of a purchase. Group of answer choices acculturative response aspiration involvement selective perception motivation
Answer:
Consumer Involvement
Explanation:
Consumer Involvement refers to the level of importance a consumer places on a purchase. The consumer factors in the personal, social and economic significance of the product before going ahead to make the purchase. The levels of consumer involvement could be of three types, namely; low, medium and high involvement.
A low involvement purchase is one in which the consumer does not give so much thought to before making the purchase. Example is household products like detergents. Medium Involvement purchase are those in which the consumer puts in some thought before acquisition. An example could be new clothes. High Involvement purchase require considerable thought and research before the purchase is made. An example could be a new car.
Alanco, Inc. manufactures a variety of products and is currently manufacturing all of their own component parts. An outside supplier has offered to sell one of those components to Alanco. To evaluate this offer, the following information has been gathered relating to the cost of producing the component internally:
Direct Materials $4
Direct Labor $6
Variable Manufacturing Overhead $2
Fix Manufacturing Overhead, Traceable* $5
Fix Manufacturing Overhead, Common but Allocated $8
Total Cost $25.00
Supplier Price = $21
Units Per Year = 12,000
Fix manufacturing overhead, traceable is composed of two items:
Depreciation of Equipment: 30%
Supervisor Salary: 70%
Assuming the company has no alternative use for the facilities now being used to produce the component, complete the following analysis to determine if the outside supplier's offer should be accepted.
Based on this analysis, write an if statement to determine if Alanco should make or buy the component.
Alanco should ............. the component.
3 Per Unit Differential Cost 12,000 units
Make Buy Make Buy
Cost of purchasing
Direct materials
Direct labor
Variable manufacturing overhead
Fixed manufacturing overhead
total costs,
Based on this analysis, wrie an if statement to determine if Alanco should make or buy the component. Alanco should the _____________component
Answer:
If the company decides to purchase the component from the outside supplier, its operating income will decrease by $66,000 per year. Therefore, Alanco should keep producing the component.
Explanation:
cost of producing the component (per unit):
direct materials $4
direct labor $6
variable manufacturing overhead $2
fixed manufacturing overhead, traceable $5 (non avoidable $1.50)
fixed manufacturing overhead, not traceable $8
total cost per unit = $25
units per year = 12,000
price offered by supplier $21 per unit
alternative A alternative B differential
keep producing buy amount
purchase cost $0 $252,000 ($252,000)
avoidable man.
costs $186,000 $0 $186,000
total $186,000 $252,000 ($66,000)
if the company decides to purchase the component from the outside supplier, its operating income will decrease by $66,000 per year.
Based on the make or buy analysis, Alanco Inc. should continue to manufacture the 12,000 components annually.
It will save $66,000 if it makes the components internally but loses the same amount if it buys it from the outside supplier.
Data and Calculations:
Relevant / avoidable costs:
Direct Materials $4
Direct Labor $6
Manufacturing Overhead $2
Supervisor's salary $3.5 ($70% x $5)
Variable manufacturing cost per unit = $15.50
Supplier Price = $21
Units Per Year = 12,000
Total relevant cost of production = $186,000 ($15.50 x 12,000)
Total relevant cost of outside purchase = $252,000 ($21 x 12,000)
Difference in cost = $66,000 ($252,000 - $186,000)
Thus, Alanco should continue to manufacture 12,000 units of the components annually instead of buying from the supplier.
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During April, the production department of a process manufacturing system completed a number of units of a product and transferred them to finished goods. Of these transferred units, 60,000 were in process in the production department at the beginning of April and 240,000 were started and completed in April. April's beginning inventory units were 60% complete with respect to materials and 40% complete with respect to conversion. At the end of April, 82,000 additional units were in process in the production department and were 80% complete with respect to materials and 30% complete with respect to conversion.
1. Compute the number of units transferred to finished goods.
2. Compute the number of equivalent units with respect to both materials used and conversion used in the production department for April using the weighted-average method.
Answer:
a) Units transferred = 218,000 units
b)
Equivalent units of material 283,600
Equivalent units of conversion cost 283,600
Explanation:
a) units transferred out
Units transferred = opening inventory + newly introduced - closing inventory
= 60,000 + 240,000 - 82,000= 218,000
Units transferred = 218,000 units
Equivalent units for material
Items units Equivalent units
Transferred out 218,000 100%×218,000 218,000
Closing inventory 82,000 80% × 82,000 65,060
Equivalent units 283,600
Equivalent units for conversion cost
Items units Equivalent units
Transferred out 218,000 100%×218,000 218,000
Closing inventory 82,000 30% × 82,000 24,600
Equivalent units 242,600
Equivalent units of material 283,600
Equivalent units of conversion cost 283,600
An investor has $19,000 to invest and believes that the IBM stock price is going to increase in the following 12 months from the current stock price of $200. Call options on IBM stock expiring in 12 months have a strike price of $207 and sell at a premium of $20 each. Assume that the stock price will be $268 per share after 12 months.
a. What will be the investor's rate of return if they buy 450 call options?
b. What will be the investor's rate of return if they buy 45 shares?
Answer:
a.305%
b.34%
Explanation:
If 450 options were bought,the investor would have invested just the amount paid for the options which is $9,000 ($20*450).
On exercising the option,the investor would gain per share the excess of market price over the option exercise price i.e 450*($268-$207)=$27,450.00
return on investment= 27,450/9000=305%
If the investor had bought the shares he would invested $9000 ($200*45)
By selling the shares for $268 return would $3,060 ($268-$200)*45
return on investment=$3,060/$9,000=34%
Consider an imaginary economy that has been growing at a rate of 6% per year. Government economists have proposed a number of policies to increase the growth rate but first need to convince the president that the policies will pay off. To do so, they want to present a comparison of the number of years it will take for the economy to double, depending on the growth rate.
Using the rule of 70, determine the number of years it will take the economy to double at each growth rate.Growth rate(Percent Years Required to Double(nearest whole number of years)4 5 6
Answer:
11.67 years
Explanation:
The rule of 70 requires that in determining when the economy growth rate will double its current growth rate, the appropriate thing to do is divide 70 by the current growth rate of 6% per year.
The economy's growth rate of 6% has its percentage ignored when the calculation is carried out.
=70/6= 11.67
The current economy's growth rate would double in 11.67 years' time
The industrial engineering approach is most likely to emphasize:
A. defining work arrangements and reporting requirements.
B. exploring new and diverse ways of doing the same job.
C. designing jobs in such a way that they require minimal specialization.
D. streamlining jobs to make them simpler and more efficient.
E. creating complex and challenging jobs that require innovative employees.
Answer:
Option D is correct
D)streamlining jobs to make them simpler and more efficient
Explanation:
Industrial engineering is an aspect of engineering profession that deals with the efficient optimization of complex processes as well as systems. It involves the development of integrated system of materials,equipment.
Industrial engineering cross accross fields such as has mechanical engineering, philosophy, economics, as well as sociology.
Industrial Engineering uses different approach to achieve it's goals, some of these approach are:
- It gather and analyse fact about the operation that is about to be carried out
-It examine all available fact critically by devicing different techniques such as charts, diagram.
- Getting alternative solution by brainstorming
-selection of best the best method.
All these steps helps industrial Engineers in streamlining jobs to make them simpler and more efficient.
Blossom Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Blossom Company purchased 9,500 premiums at 75 cents each and sold 120,000 boxes of soap powder at $3.00 per box; 41,800 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption.
Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020.
Answer:
Dr Purchased premiums 7,125
Cr Cash 7,125
Dr Cash 360,000
Cr Sales 360,000
Dr Premium Expense 3,135
Cr Inventory Premiums 3,135
Dr Premium Expense 2,265
Cr Estimated Liability Premiums 2,265
Explanation:
Blossom Company Journal entry
Dr Purchased premiums 7,125
(9,500×0.75)
Cr Cash 7,125
Dr Cash 360,000
(120,000×3.00per box)
Cr Sales 360,000
Dr Premium Expense 3,135
Cr Inventory Premiums (41,800 ÷ 10 coupons×0.75) 3,135
Dr Premium Expense 2,265
Cr Estimated Liability Premiums 2,265
[(120,000 ×0.60) – 41,800) ÷ 10 × .75]
=72,000-41,800÷10×.75
=30,200÷10×.75
=3020×.75
=2,265
Wilson Trucking, Inc. reports these account balances at January 1, 2015 (shown in alphabetical order):Accounts Payable $220,000Accounts Receivable $200,000Buildings $480,000Capital Stock $680,000Cash $160,000Equipment $320,000Land $400,000Notes Payable $520,000Retained Earnings $140,000On January 5, Wilson Trucking collected $175,000 of its accounts receivable, paid $150,000 on its accounts payable, and paid $11,000 on its note payable.Refer to the information above. In a trial balance prepared on January 6, 2015, the total of the credit column is:__________.(a) $1,721,000(b) $1,350,000(c) $1,399,000(d) $1,560,000.
Answer:
The correct option is C,$ 1,399,000
Explanation:
The items on the credit column would be the sum of accounts payable, capital stock, notes payable and retained earnings minus the payment of accounts payable and notes payable
Accounts payable is $220,000
capital stock is $680,000
notes payable is $520,000
retained earnings is $140,000
payment in respect of accounts payable is $150,000
payment in respect of notes payable is $11,000
total of credit column=$220,000+$680,000+$520,000+$140,000-$150,000-$11,000=$ 1,399,000.00
Based on the information given the total of the credit column is:(c) $1,399,000.
Credit column
Accounts payable $220,000
Capital stock $680,000
Notes payable $520,000
Retained earnings $140,000
Less payment in respect of accounts payable ($150,000)
Less payment in respect of notes payable ($11,000)
Total credit column $1,399,000
Inconclusion the total of the credit column is:(c) $1,399,000.
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Steve Drake sells a rental house on January 1, 2019, and receives $100,000 cash and a note for $50,000 at 7 percent interest. The purchaser also assumes the mortgage on the property of $25,000. Steve's original cost for the house was $170,000 on January 1, 2011 and accumulated depreciation was $27,000 on the date of sale. He collects only the $100,000 down payment in the year of sale.
If Steve elects to recognize the total gain on the property in the year of sale, calculate the taxable gain.
Answer:
$32,000
Explanation:
The computation of the taxable gain is shown below;
Taxable gain on sale = Amount Realized - Adjusted Basis
where,
Amount Realized = Cash Received + Note received + Mortgage assumed by Purchaser
= $100,000 +$50,000 + $25,000
= $175,000
And, the adjusted basis is
= Original cost - Accumulated Depreciation
= $170,000 - $27,000
= $143,000
So, the taxable gain on sale is
= $175,000 - $143,000
= $32,000
The gain which is arise from purchasing the asset to the sale of the asset i.e difference in these amounts attract the taxable gain
Southwest Components recently switched to activity-based costing from the department allocation method. The Fabrication Department manager has estimated the following cost drivers and rates:
Activity Centers Cost Drivers Rate per
Cost Driver Unit
Materials handling Pounds of material handled $ 16 per pound
Quality inspections Number of inspections $ 240 per inspection
Machine setups Number of machine setups $ 2,700 per setup
Running machines Number of machine-hours $ 21.00 per hour
Direct materials costs were $306,000 and direct labor costs were $161,000 during July, when the Fabrication Department handled 3,900 pounds of materials, made 760 inspections, had 50 setups, and ran the machines for 13,000 hours.
Required:
Use T-accounts to show the flow of materials, labor, and overhead costs from the four overhead activity centers through Work-in-Process Inventory and out to Finished Goods Inventory.
Answer:
Direct Materials T - Account
Debit :
Cash $306,000
Totals $306,000
Credit:
Work In Process $306,000
Totals $306,000
Direct Labor T - Account
Debit :
Cash $161,000
Totals $161,000
Credit:
Work In Process $161,000
Totals $161,000
Overhead T - Account
Debit :
Cash $652,800
Totals $652,800
Credit:
Work In Process :
Materials handling ( $ 16 × 3,900 pounds) $62,400
Quality inspections ( $ 240 × 760 inspections) $182,400
Machine setups ( $ 2,700 × 50 setups) $135,000
Running machines ( $ 21.00 × 13,000 hours) $273,000
Totals $652,800
Work In Process T - Account
Debit :
Direct Materials $306,000
Direct Labor $161,000
Overheads $652,800
Totals $1,119,800
Credit:
Finished Goods $1,119,800
Totals $1,119,800
Explanation:
Direct Materials T - Account
Accumulates Material costs used in manufacturing process
Direct Labor T - Account
Accumulated labor costs used in manufacturing process
Overhead T - Account
Accumulated Overhead costs incurred in manufacture
Work In Process T - Account
Accumulates total costs used in manufacture and transfers the cost to Finished Goods inventory
