Answer and Explanation:
The accounting principles and the suggestions are shown below:
a. Business Entity Concept:
In this given situation, the amount of $500 should be refunded to the business or it can be recognized as the withdrawal amount by Cathy Miller. The suggestion is that She should use a personal check for paying daycare in the future for her son
b. Going Concern Concept:
Since the business is closed for month-long vacation in the month of June. As Cathy's Antiques is not closing the business for permanent. As she plans for reopening on July 1. The suggestion is that she should hold an inventory decline sale or for other relevant sales.
c. Monetary Unit Concept:
The invoice should be restated in the united states for the purpose of accounting
d. Revenue Recognition Concept:
The revenue should be recognized when it is realized or earned. As the table is not delivered so the revenue should not be recognized.
The amount of $1,500 should be recorded for an account like deposits received from the customers until the delivering of the table is not done
Let us assume two students must prepare a presentation for their economics class. As part of their class presentation, they must do a series of calculations and prepare 50 PowerPoint slides. It would take James 10 hours to do the required calculation and 10 hours to prepare the slides. It would take Jane 12 hours to do the series of the calculations and 20 hours to prepare the PPT slides. A. How much time would it take the two students to complete the project if they divide the two tasks equally?B. How much time would it take the two students to complete the project if they use comparative advantage and specialize in calculating or preparing slides? C. If Larry and Kate have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?
Answer:
A. How much time would it take the two students to complete the project if they divide the two tasks equally?
James needs 10 hours to complete half the task and Jane needs 16 hours to do her part = total work 26 hoursB. How much time would it take the two students to complete the project if they use comparative advantage and specialize in calculating or preparing slides?
If they specialize, then Jane should do the calculations (12 hours) and James should prepare the slides (10 hours) = total work 22 hoursC. If James and Jane have the same opportunity cost of $5 per hour, is there a better solution than for each to specialize in calculating or preparing slides?
Yes, Jane should pay James so that he does the whole work all by himself. Since James opportunity cost is $5 per hour, his total economic cost of doing the work is $100, and half of that is $50. Jane's economic cost of doing her part is $60 (= 12 x $5), so if she pays any amount lower than $60 and equal or higher than $50 to James, then they would both win.Explanation:
50 powerpoint slides
James needs 10 hours to do the calculations and 10 hours to prepare the slides = 20 hours total / 2 = 10 hours
Jane needs 12 hours to do the calculations and 20 hours to prepare the slides = 32 hours total / 2 = 16 hours
James's opportunity cost of doing the calculations or preparing the slides is 10 / 10 = 1
Jane's opportunity cost of doing one hour of calculations is 20 / 12 = 1.67 hours of preparing slides.
Jane's opportunity cost of doing one hour of preparing slides is 12 / 20 = 0.6 hours of calculations.
Suppose you deposited $27,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year. How much would be in the account after 8 months, assuming each month has 30 days
Answer:
FV= $27,962.78
Explanation:
Giving the following information:
Suppose you deposited $27,000 in a bank account that pays 5.25% with daily compounding based on a 360-day year.
First, we need to calculate the daily interest:
Interest rate= 0.0525/360= 0.000146
Now, using the following formula, we can determine the final value:
FV= PV*(1+i)^n
FV= 27,000*(1.000146^240)
FV= $27,962.78
Consider three imaginary countries. In Aire, saving amounts to $4,000 and consumption amounts to $12,000; in Bovina, saving amounts to $3,000 and consumption amounts to $24,000; and in Cartar, saving amounts to $10,000 and consumption amounts to $50,000. The saving rate is
Answer:
The savings rate is higher in Aire than in Carttar and it is higher in cartar than in Bolivia.
Explanation:
To calculate savings rate:
[(Total income - consumption)/total income] x 100
Where total income = consumption + savings.
The savings rates are as follows
Aires: [(16000 -12,000)/16000] x 100
= 400/16
= 25%
Bovina: [(27000 - 24000)/27000] x 100
= 300/27
= 11.11%
Cartar: [(60000 - 50000)/60000] x 100
= 100/6
= 16.67%
An adjusting entry should never include Group of answer choices a debit to an expense account and a credit to a liability account a debit to an expense account and a credit to a revenue account a debit to a liability account and a credit to revenue account a debit to a revenue account and a credit to a liability account
Answer:
A debit to an expense account and a credit to a revenue account.
Explanation:
These are journal entries that makes accounting of a business to be properly arranged or said to be in order. Just like in the above sentence, it is should never include a debit to an expense account and a credit to a revenue account.
In certain scenarios, adjusting these journal entries are needed before the financial statements are been issued.
Sometimes when nothing has been inputed in the accounting records for an expenses or revenues in a period, but those expenses and/or revenues did occur and must be included in the current period's income statement and balance sheet. Also something has already been entered in the accounting records, but the amount needs to be divided up between two or more accounting periods.
Mouret Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products.
Activity Cost Pools Activity Rate
Setting up batches $92.68 per batch
Processing customer orders $95.08 per customer order
Assembling products $3.41 per assembly hour
Last year, Product N79A required 28 batches,
6 customer orders, and 712 assembly hours.
Required:
How much total overhead cost would be assigned to Product N79A using the company's activity-based costing system?
Answer:
$5,593.44
Explanation:
The computation of the total overhead cost assigned to Product N79A using the activity based costing is shown below:
Total overhead cost assigned is
= Setting up batches cost + processing customer orders cost + assembly products cost
As we know that
Overhead Cost assigned = Activity Rate × Number of activity
So,
Setting up batches cost = $92.68 × 28 batches = $2,595.04
Processing customer orders cost = $95.08 × 6 customer orders = $570.48
And,
Assembling products cost = $3.41 × 712 assembly hours = $2,427.92
So,
Total overhead cost assigned to Product N79A is
= $2,595.04 + $570.48 + $2,427.92
= $5,593.44
Handel Company uses the allowance method for estimating uncollectible accounts.
January 5 Sold merchandise to Terry Richman for $2,000, terms n/15.
April 15 Received $600 from Terry Richman on account.
August 21 Wrote off as uncollectible the balance of the Terry Richman account when she declared bankruptcy.
October 5 Unexpectedly received a check for $300 from Terry Richman. It is not felt any more will be received from Richman.
Prepare journal entries to record the above transactions.
Answer: Please refer to Explanation.
Explanation:
January 2
DR Accounts Receivable - Terry Richman $2,000
CR Sales $2,000
(To record sale of goods to Terry Richman on Account)
April 15
DR Cash $600
CR Accounts Receivable - Terry Richman $600
(To record cash received from Terry Richman)
August 21
DR Allowance for Doubtful Debt $1,400
CR Accounts Receivable - Terry Richman $1,400
(To record write off of Terry Richman Account)
October 5
DR Accounts Receivable - Terry Richman $300
CR Allowance for Doubtful Debt $300
October 5
DR Cash $300
CR Accounts Receivable $300
(To record Cash Received from Terry Richman)
Workings and Notes.
Terry Richman paid $600 out of their $2,000 debt before declaring bankruptcy.
= 2,000 - 600
= $1,400.
This is why $1,400 was the written off figure.
When an Receivables account is written off, it is debited to the Allowance for Doubtful Debt Account.
When money is unexpectedly received after a write off, the amount first has to be retrieved from the Allowance for Doubtful Debt and taken back to the Accounts Receivables and then it can be recorded as Cash received.
Assume the profit margin and dividend payout ratio are constant. By what amount will retained earnings increase if sales are projected to increase by 11 percent? Currently, the firm’s sales =$4,700, net income is $420, total assets=7890, dividends=125, A/P =790, LTD= 3130, and common stock=2780, and retained earnings =1190.
Answer:
The amount will retained earnings increase if sales are projected to increase by 11 percent is $327,45
Explanation:
In order to calculate the amount will retained earnings increase if sales are projected to increase by 11 percent we would have to make the following calculation:
amount will retained earnings increase=(net income-dividends)*increase percentage
amount will retained earnings increase= ($420-$125)*1.11
amount will retained earnings increase= $ 327.45
The amount will retained earnings increase if sales are projected to increase by 11 percent is $327,45
Mary Willis is the advertising manager for Flint Shoe Store. She is currently working on a major promotional campaign. Her ideas include the installation of a new lighting system and increased display space that will add $30,400 in fixed costs to the $272,000 currently spent. In addition, Mary is proposing that a 5% price decrease ($40 to $38) will produce a 20% increase in sales volume (20,000 to 24,000). Variable costs will remain at $24 per pair of shoes. Management is impressed with Mary’s ideas but concerned about the effects that these changes will have on the break-even point and the margin of safety.
A: Compute the current break-even point in units, and compare it to the break-even point in units if Mary’s ideas are used. (Round answers to 0 decimal places, e.g. 1,225.)B: Compute the margin of safety ratio for current operations and after Mary’s changes are introduced. (Round answers to 0 decimal places, e.g. 15%.)C: Prepare a CVP income statement for current operations and after Mary’s changes are introduced. Would you make the changes suggested?
Answer:
A. Current = 17,000, After Mary Ideas = 21,600
B. Current = 15% After Mary Ideas = 10%
C.
Current After Mary Ideas
Sales 800,000 912,000
Less Variable Costs (480,000) (576,000)
Contribution 320,000 336,000
Less Fixed Costs (272,000) (302,400)
Net Income/(Loss) 48,000 33,600
Conclusion :
No will not make the changes
Because they result in decrease in net income by $14,400
Explanation:
A: Compute the current break-even point in units
Current
break-even point in units = Fixed Costs / Contribution per unit
= $272,000 / ($40 - $24)
= 17,000 pairs of shoes
Mary ideas
break-even point in units = Fixed Costs / Contribution per unit
= ($272,000 + $30,400) / ($38 - $24)
= 21,600 pairs of shoes
B: Compute the margin of safety ratio
Current
margin of safety ratio = Expected Sales - Break even Sales / (Expected Sales)
= (20,000 - 17,000) / 20,000
= 15%
Mary Ideas
margin of safety ratio = Expected Sales - Break even Sales / (Expected Sales)
= (24,000 - 21,600) / 24,000
= 10%
In preparing a company's statement of cash flows for the most recent year, the following information is available: Loss on the sale of equipment Purchase of equipment Proceeds from the sale of equipment Repayment of outstanding bonds Purchase of treasury stock Issuance of common stock Purchase of land Increase in accounts receivable during the year Decrease in accounts payable during the year Payment of cash dividends $ 15,800 163,000 144,000 96,000 71,000 105,000 133,000 52,000 84,000 44,000 Net cash flows from investing activities for the year were:________ A. $136,200 of net cash used. B. $152,000 of net cash provided. C. $248,000 of net cash provided. D. $152,000 of net cash used. E. $288,000 of net cash used.
Answer:
Net cash flows from investing activities for the year were $152,000 of net cash used
Explanation:
According to given data, in order to calculate the Net cash flows from investing activities for the year we would have to calculate the following:
Cash Flow from investing activities= Purchase of equipment+ Proceeds from the sale of equipment-Purchase of land
Cash Flow from investing activities=-163,000+$144,000-$133,000
Cash Flow from investing activities=-$152,000
Net cash flows from investing activities for the year were $152,000 of net cash used
Marshall Company purchases a machine for $200,000. The machine has an estimated residual value of $80,000. The company expects the machine to produce four million units. The machine is used to make 440,000 units during the current period. If the units-of-production method is used, the depreciation expense for this period is:
Answer:
The depreciation expense for this period is: $13,200
Explanation:
The depreciation charge using units of production is calculated as follows :
Depreciation Expense = (Cost - Salvage Value) × (Period`s Production / Total Expected Production)
= ($200,000 - $80,000) × 440,000 units / 4,000,000 units
= $13,200
Conclusion:
The depreciation expense for this period is: $13,200
Make-or-Buy Decision Somerset Computer Company has been purchasing carrying cases for its portable computers at a purchase price of $24 per unit. The company, which is currently operating below full capacity, charges factory overhead to production at the rate of 40% of direct labor cost. The unit costs to produce comparable carrying cases are expected to be as follows: Direct materials $8.00 Direct labor 12.00 Factory overhead (40% of direct labor) 4.80 Total cost per unit $24.80 If Somerset Computer Company manufactures the carrying cases, fixed factory overhead costs will not increase and variable factory overhead costs associated with the cases are expected to be 25% of the direct labor costs.
a. Prepare a differential analysis dated April 30 to determine whether the company should make (Alternative 1) or buy (Alternative 2) the carrying case. If an amount is zero, enter "0".
Answer:
Differential analysis as at April 30
Make (Alternative 1) Buy (Alternative 2)
Purchase Price $0.00 $24.00
Direct materials $8.00 $0.00
Direct labor $12.00 $0.00
Variable Costs - Case related $3.00 $0.00
Total Cost $23.00 $24.00
Conclusion
Company should make carrying cases instead of purchasing as this is cheaper by $1.00
Explanation:
There is a choice to be made between Make (Alternative 1) and Buy (Alternative 2). Compute the Total costs for these choices.
Ignore the fixed overheads as they are the same for both alternatives and hence irrelevant.
Choose the alternative with lower costs.
At the end of the quarter, a company did an adjusting entry to record $5,000 of depreciation on the fleet of automobiles used by the sales force. Which of the following items would be increased by this depreciation adjusting entry? (check all that apply)
a. Cost of Goods Sold
b. Cash from Operations
c. Total Assets
d. Retained Earnings
e. Depreciation Expense
Answer:
The answer is Option B and E which are Cash from operations and Depreciation expense
Explanation:
Solution
Given that:
The adjusted entry in recording depreciation is stated below:
Date Account Title Debit Credit
xxx Depreciation Expenses A/c 5,000
Accumulated Depreciation A/c 5,000
Thus,
The Accumulated depreciation will increase or goes higher
Depreciation is on Automobile used by the sales force, The administrative expenses with the selling General expenses will be increased.
Now, the Depreciation here is seen as a Non- Cash Expense, and much later it will be included back in Net Income for computing Cash From Operation, so Cash From Operations would also be increased.
Therefore, the following items that would increase are Cash From Operation, Accumulated Depreciation, Depreciation expense
Fresh Foods established a petty cash fund of $100 on January 2. On January 31, the fund contained cash of $9.20 and vouchers for the following cash payments: Maintenance expense Office supplies Transportation expense $61.50 12.50 15.00 The three distinct accounting events affecting the petty cash fund for the period were (1) establishment of the fund, (2) reimbursements made to employees, and (3) recognition of expenses and replenishment of the fund.Required:
a. Record each of the three events in a horizontal statements model.b. Record the events in general journal format.
Answer:
a. Net total assets = Stockholder's equity = $18.40; Total Expenses = Net income = ($90.80); and Net Cash flow = $18.40
b. Record the events in general journal format.
See the journal entries below.
Explanation:
a. Record each of the three events in a horizontal statements model.
Note: See the attached excel file for the horizontal statements
b. Record the events in general journal format.
The journal general entries will be as follows:
Date Details Dr ($) Cr ($)
Jan. 2 Petty cash account 100.00
Cash 100.00
(To record the petty cash fund establishment.)
Jan. 2-31 Maintenance expense 61.50
Office supplies 12.50
Transportation expense 15.00
Unaccounted amount (w.2.) 1.80
Petty cash account 90.80
(To record expenses during the month of January.)
Jan. 31 Petty cash account 90.80
Cash 90.80
(To record reimbursements made to employees.)
Workings:
w.1. Reimbursed amount = Petty cash fund - Fund balance on January 31 = $100 - $9.20 = $90.80
w.2. Unaccounted amount = Reimbursed amount - Maintenance expense - Office supplies - Transportation expense = $90.80 - $61.50 - $12.50 - $15.00 = $1.80.
TEB budgeted the following production cost for 1,000 units of product for job 588 during 20XX: Direct Materials (DM) 400 pounds at $5 per pound $ 2,000 Direct Labor (DL) 1,500 hours at $15 per hour 22,500 Manufacturing Overhead (MO) 1,500 Machine hours at $10* per machine hour 15,000 Total 39,500 *$60,000 estimated overhead for the year divided by 6,000 estimated machine hours for the year = $10 estimated overhead per machine hour. TEB, Inc. incurred the following actual costs for job 588: Direct Materials (DM) 420 pounds at $5.50 per pound $ 2,310 Direct Labor (DL) 1,540 hours at $14.50 per hour 22,330 Manufacturing Overhead (MO) $62,000 actual overhead for the year; 5,900 actual machine hours; 1,600 actual machine hours used on job 588 ? Compute the total cost (DM, DL, and MO) of job 588 using standard costing Using standard costing, what is the total job cost?
Answer:
Total Product cost for Job 588 is $ 41,453
Explanation:
Direct Materials (DM) = 420 pounds at $5.50 per pound = $ 2,310
Direct Labor (DL) = 1,540 hours at $14.50 per hour = $22,330
Manufacturing Overhead (MO) $62,000
actual overhead for the year; 5,900
actual machine hours; 1,600 actual machine hours used on job
Total Product Cost:
Overhead = ($62,000 ÷ 5,900) × 1600 = $16,813.56
Total Product Cost for Job 588 = $2,310 + $22,330 + $16,813.56
= $ 41,453.56
Total Product cost for Job 588 is $ 41,453
As the information technology advances and consumers buy products requiring more and more technology, the wages of people with high level programming and other technical skills would a. increase as the supply of high tech skills increases. b. increase as the demand for high tech skills increases. c. not be affected by consumers’ purchases d. decrease as the supply of high tech skills increases.
Answer:
b. increase as the demand for high tech skills increases.
Explanation:
Due to the fact that the demand for technological products is increasing, the demand for people who possess high tech skills would also increase as firms would want to provide more tech products to satisfy the demand of consumers.
This would lead to an increase the demand for people with high tech skills. When demand exceeds supply, wages would rise.
I hope my answer helps you
The government of Ruritania has implemented many programs that promote equality, but has become concerned about the very slow rate of growth that has held back their national economy for many years. In order to address this problem, the government is likely to:
Answer: b. reduce taxes and cut back on some social programs
Explanation:
When the Economy is not doing well, Social programs are usually targeted as they usually take a lot of money from the Government's coffers.
It is also a generally held view that reducing taxes as a Fiscal policy can help stimulate the Economy by leaving the public with more funds to invest in and spend on the Economy.
The Government of Ruritania is therefore most likely to combine reducing Social programs as well as reducing taxes. This will have the effect of leaving the Government with some money as it loses revenue from taxes whilst also enabling the public to have more money to invest and to spend which will then lead to Economic growth.
Here the government reduce taxes and cut back on some social programs
For addressing the given problem, the government should do:At the time when the Economy is not doing well, Social programs are should be considered since it take a lot of money from the Government's coffers. Also, the taxes are reduced since Fiscal policy can help stimulate the economy by leaving the public with additional funds to invest in and spend on the Economy.
Learn more about an economy here: https://brainly.com/question/24561404
Chico’s Clockworks uses job order costing for its custom clock-making business. Job GF1260 is a custom-made grandfather clock. Chico’s job cost sheet for Job GF1260 shows a total cost of $4,265, including direct labor of 50 hours at $20 per hour. Overhead is applied at 100% of direct labor cost. What is the direct materials cost for Job GF1260? A : $3,455 B : $1,000 C : $2,265 D : $2,895
Answer:
Option C,$2,265 , is correct
Explanation:
Labor cost =direct labor hours*rate per hour
direct labor hours is 50 hours
direct labor cost per hour is $20
labor cost=50*$20=$1,000
Overhead was applied as 100% of direct labor cost
overhead=100%*$1000=$1000
Total cost of job=direct material cost+direct labor+overhead
direct material cost=total cost-direct labor-overhead
direct material cost=$4,265-$1000-$1000=$2,265
The correct option is C,$2,265
Journalize the entries to record the following:
Check is issued to establish a petty cash fund of $750.
The amount of cash in the petty cash fund is now $176.
Check is issued to replenish the fund, based on the following summary of petty cash receipts: office supplies, $248; miscellaneous selling expense, $212; miscellaneous administrative expense, $96. (Because the amount of the check to replenish the fund plus the balance in the fund do not equal $750,
Record the discrepancy in the cash short and over account.) .
a. Journalize the entry to establish the petty cash fund.
b. Journalize the entry to replenish the petty cash fund.
Answer: Please see below
Explanation:
a. Journal to record the entry to establish the petty cash fund.
Account Particulars Debit Credit
Petty Cash $750
Cash $750
b. Journal to record the entry to replenish the petty cash fund.
Account Particulars Debit Credit
Office Supplies $248
Misc Selling Expense $212
Miscellaneous administrative expense, $96.
Cash Short and Over $18
Cash $574
To calculate Cash Short and Over= $750-(248+212+ 96)= 750 -556= $194
but the money in the pettycash fund On April 1 is $212.
therefore Cash short and over = $212-$194 = $18
This year, Druehl, Inc., will produce 57 comma 60057,600 hot water heaters at its plant in Delaware, in order to meet expected global demand. To accomplish this, each laborer at the plant will work 160160 hours per month. If the labor productivity at the plant is 0.250.25 hot water heaters per labor hour, how many laborers are employed at the plant
Answer:
The number of laborers employed by the plant is 120 laborers
Explanation:
According to given data Annual output = 57600 water heaters.
So the output per month = 57,600 / 12 months = 4,800 water heaters
Each labor works 160 hours per month
Suppose ,there are x number of laborers employed by the plant. So,x number of laborer will work 160x hours per month. So the labor input = 160x per month
Labor productivity = 0.25
Labor productivity = Output / Labor input
0.25 = 4800 / 160x
25/100 = 4800/160x
160x = (4800 X 100) / 25
160x = 19200
x = 19200/160
x = 120
Therefore, the number of laborers employed by the plant is 120 laborers
Outdoor Luggage Inc. makes high-end hard-sided luggage for sports equipment. Data concerning three of the company’s most popular models appear below.
Ski
Guard Golf
Guard Fishing
Guard
Selling price per unit $260 $330 $205
Variable cost per unit $120 $180 $135
Plastic injection molding machine processing
time required to produce one unit 9 minutes 12 minutes 11 minutes
Pounds of plastic pellets per unit 12 pounds 7 pounds 11 pounds
Required:
1a.
The total time available on the plastic injection molding machine is the constraint in the production process. What is the contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?
1b. Which product would be the most profitable use of this constraint?
Ski Guard
Fishing Guard
Golf Guard
1c. Which product would be the least profitable use of this constraint?
Ski Guard
Fishing Guard
Golf Guard
2a.
A severe shortage of plastic pellets has required the company to cut back its production so much that the plastic injection molding machine is no longer the bottleneck. Instead, the constraint is the total available pounds of plastic pellets. What is contribution margin per unit of the constrained resources for Ski Guard, Golf Guard and Fishing Guard?
2b. Which product would be the most profitable use of this constraint?
Golf Guard
Fishing Guard
Ski Guard
2c. Which product would be the least profitable use of this constraint?
Golf Guard
Fishing Guard
Ski Guard
3. Which product has the largest unit contribution margin?
Golf Guard
Fishing Guard
Ski Guard
Answer:
Ski Golf Fishing
Guard Guard Guard
selling price $260 $330 $205
variable cost $120 $180 $135
contribution margin $140 $150 $70
machine time 9 min. 12 min. 11 min.
lbs. of pellets 12 7 11
total machine time is the constraint in the production process
1a)
contribution margin per $933.33 $750 $381.82
machine hour
1b)
ski guard since its contribution margin per machine hour is much higher than the rest of the products
1c)
fishing guard since its contribution margin per machine hour is much lower than the rest of the products
2a)
Ski Golf Fishing
Guard Guard Guard
contribution margin per $11.67 $21.43 $6.36
lbs. of pellets
2b)
Golf guard since its contribution margin per lb. of pellets is much higher than the rest of the products
2c)
fishing guard since its contribution margin per lb. of pellets is much lower than the rest of the products
3)
Golf Guard ($150)
You and your new spouse each bring home $1400 each month after taxes and other payroll deductions. By living frugally, you intend to live on just one paycheck and save the other in a mutual fund yielding 7.83% compounded monthly. How long will it take to have enough for a 20% down payment on a $165,000 condo in the city? (Round your answer to two decimal places.)
Answer:
22 months
Explanation:
The 20% down payment which is target savings =$165,000*20%=$33,000
The are two paychecks which is $1,400 each
monthly savings is one paycheck=$1,400
rate of compounding is 7.83% yearly=7.83%/12=0.006525 monthly
The number of months the savings will reach $33,000 can be computed using the nper formula in excel as shown below:
=nper(rate,pmt,-pv,fv)
rate is the monthly rate i,e 0.006525
pmt is the monthly savings of $1,400
pv is the present worth of the savings which is unknown
fv is the future value of target savings which is $33,000
=nper(0.006525,-1400,0,33000)=22 months approximately
The equipment account had a $36,000 balance at the beginning of the year, and a $30,000 balance at the end of the year. The accumulated depreciation account had a balance of $22,000 at the beginning of the year, and a $17,000 balance at the end of the year. The income statement reported depreciation expense of $4,000 for the year. Equipment costing $10,000 was sold for its book value. Cash received from the sale to be reported in the Investing Activities section is
Answer:
$1000
Explanation:
The cash received from the equipment sale is equals to the initial cost of the equipment which is $10,000 minus total accumulated depreciation on the equipment charged till date.
Total accumulated depreciation on the equipment=Opening balance of accumulated depreciation+depreciation charge for the year-closing balance of accumulated depreciation
Total accumulated depreciation on the equipment=$22,000+$4,000-$17,000
=$9,000
cash proceeds=$10,000-$9,000=$1000
The Containers Inc. experienced the following events during its first year of operations,
Year 1:
Acquired $42,000 cash by issuing common stock.
Earned $25,000 revenue on account.
Paid $18,000 cash for operating expenses.
Borrowed $10,000 cash from a bank.
Collected $22,000 of the balance in accounts receivable.
Paid a $1,000 cash dividend.
Required
a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31, Year 1, balance sheet?
b. Determine the balance of the accounts receivable account that would appear on the December 31, Year 1, balance sheet.
c. Determine the amount of net income that would appear in the Year 1 income statement.
d. Determine the amount of the cash flow from operating activities that would appear in the Year 1 statement of cash flows.
Answer:
a. Would the accounts receivable account appear in the assets, liabilities, or stockholders' equity section of the December 31, Year 1, balance sheet?
The accounts receivable account would appear in the assets section, and more specifically, in the current assets section. This is because accounts receivable are considered to be an assset.
b. Determine the balance of the accounts receivable account that would appear on the December 31, Year 1, balance sheet.
The Containeres Inc. first earned $25,000 on account, and by the end of the year, it had collected $22,000, thus, the final balance of the accounts receivable is $3,000.
c. Determine the amount of net income that would appear in the Year 1 income statement.
Net Income = Revenue - Expenses
Net Income = $25,00 - $18,000
= $7,000
A Canadian subsidiary of a U.S. parent firm is instructed to bill an export to the parent in U.S. dollars. The Canadian subsidiary records the accounts receivable in Canadian dollars and notes a profit on the sale of goods. Later, when the U.S. parent pays the subsidiary the contracted U.S. dollar amount, the Canadian dollar has appreciated 10% against the U.S. dollar. In this example, the Canadian subsidiary will record a
Answer:
10% foreign exchange loss on the U.S. dollar accounts receivable
Explanation:
Based on the information provided within the question it can be said that in this example the Canadian subsidiary will record a 10% foreign exchange loss on the U.S. dollar accounts receivable. That is because as the Canadian dollar has appreciated 10% against the U.S. dollar, it means that it has lost 10% of it's buying power due to its foreign exchange price change, thus resulting in a loss which needs to be recorded.
Darian and Ivan have been friends since college. They started a limousine rental business from scratch in Philadelphia. They are now contemplating opening an additional location for their business in Baltimore. They have crunched the numbers and discover it would mean adding $2 million more in expenses, and their profit would increase by $250,000 each year for the next 5 years (all other things equal). Darian and Ivan decide
Answer: c) to not open in a new city because the marginal costs prove to be too high.
Explanation:
This decision depends on if the new location will be worth the investment of $2,000,000 put into it. To check whether it will be worth it, the total Revenue expected over the amount of time that the location would be making revenue should be added up. If the sum is greater than $2 million then it is a viable Investment. If it is not, it should not be picked.
The prospective location is estimated to be able to add $250,000 per year in revenue over 5 years.
In 5 years that means
= 250,000 * 5
= $1,250,000 would be made in revenue.
This Revenue of $1,250,000 is far short of the $2 million that will be added in Expenses and so the Investment is not viable.
Darian and Ivan should not open in the new city because the Marginal Cost of Investment is too high to be covered by the Marginal Revenue.
Karl Corporation was organized on January 2, 2018. During 2018, Karl issued 40,000 shares at $24 per share, purchased 6,000 shares of treasury stock at $26 per share, and had net income of $600,000. What is the total amount of stockholders’ equity at December 31, 2018?
Answer:
$1,404,000
Explanation:
To calculate the total amount of stockholders’ equity at December 31, 2018 you have to use the following formula:
Stockholder’s equity= Paid-up capital+Retained earnings-Treasury stock
Paid-up capital= $24*40,000= $960,000
Retained earnings= $600,000
Treasury stock= $26*6,000= $156,000
Now, you can replace the values on the formula:
Stockholder’s equity= $960,000+$600,000-$156,000
Stockholder’s equity= $1,404,000
According to this, the total amount of stockholders’ equity at December 31, 2018 is $1,404,000.
Russ and Linda are married and file a joint tax return claiming their three children, ages 4, 7, and 18, as dependents. Their adjusted gross income for 2019 is $415,300. What is Russ and Linda's total child and other dependent credit for 2019?
Answer:
$3,700
Explanation:
Given that
Adjusted gross income for the year 2019 = $415,300
Children ages = 4, 7, and 18 as dependents
Based on the given information, Russ and Linda's total child and other dependent credit for the year 2019 is
= (Maximum amount per qualifying child + non-refundable tax credit) - (deductible amount × age)
= ($2,000 × 2 + $500) - ($50 × 16)
= $4,500 - $800
= $3,700
After $400,000 the $50 is decreased for each and every $1,000
In large high rise condominiums, each unit is owned by individual owners. The elevators, parking garage, and swimming pool are called: A. proprietary elements B. common area elements C. separate property D. community property
Answer:
B. common area elements
Explanation:
Common Area elements are those spaces in real estate that are meant for general use. They are not owned exclusively by one person but are rather shared by the people who live within the area. The people pay some maintenance fee to keep the common area elements in good conditions.
In condominiums, the elevators, parking garage, and swimming pools are collectively shared by residents, and they all pay for the maintenance of these properties. Therefore, they can be said to be Common Area elements. Common Area elements can be found in residential, business and Government-owned properties.
Answer:
B. common area elements
Explanation:
-Proprietary elements refer to something that has a trademark or it is protected by property rights and can only be used or sold by the owner.
-Common area elements refer to the parts of a condominium that can be used by all the people living there and that belong to all the owners.
-Separate property refers to a property that people get before marriage and doesn't count as part of the marital property.
-Community property refers to property purchased during marriage that is considered marital property.
According to this, the answer is that the elevators, parking garage, and swimming pool are called common area elements.
Following are two income statements for Alexis Co. for the year ended December 31. The left number column is prepared before adjusting entries are recorded, and the right column is prepared after adjusting entries. The company records cash receipts and payments related to unearned and prepaid items in balance sheet accounts.
Income Statements
For Year Ended December 31
Unadjusted Adjusted
Revenues
Fees earned $24,000 $ 30,000
Commissions earned 42,500 42,500
Total revenues $66,500 72,500
Expenses
Depreciation expense—Computers 0 1,500
Depreciation expense—Office furniture 0 1,750
Salaries expense 12,500 14,950
Insurance expense 0 1,300
Rent expense 4,500 4,500
Office supplies expense 0 480
Advertising expense 3,000 3,000
Utilities expense 1,250 1,320
Total expenses 21,250 28,800
Net income $45,250 $ 43,700
Analyze the statements and prepare the seven adjusting entries that likely were recorded. Hint: Entry for a refers to fees that have been earned but not yet billed. None of the entries involve cash.
Answer and Explanation:
The Journal entries are shown below:-
1. Accounts receivableDr, $6,000 ($30,000 - $24,000)
To Fees earned $6,000
(Being accrued income is recorded)
2. Depreciation expense - Computors Dr, $1,500
To Accumulated Depreciation - Computors $1,500
(Being depreciation expenses is recorded)
3. Depreciation expense - Office Furniture Dr, $1,750
To Accumulated Depreciation - Office Furniture $1,750
(Being depreciation expenses is recorded)
4. Salaries expense Dr, $2,450 (14,950 - $12,500)
To Salaries and wages payable $2,450
(Being salaries expenses is recorded)
5. Insurance expenses Dr, $1,300
To Prepaid insurance $1,300
(Being expired insurance is recorded)
6. Office supplies expense Dr, $480
To Office supplies $480
(Being office supplies expenses is recorded)
7. Utilities expenses Dr, $70 ($1,320 - $1,250)
To Accounts payable $70
(Being utilities expenses accrued is recorded)
What is the purpose of a labor union?
