Answer:
ABC Services
The total liabilities at the end of September, 2013
= $9,000
Explanation:
a) Data and Calculations:
Capital contribution = $23,500
Equipment = $11,500
Cash payment for equipment = $2,500
Note payable on equipment = $9,000
Insurance expense paid = $1,350
Utility expense paid = $980
Rent paid = $2,000
Sales = $12,000
Cash Sales = $7,200 (60% of $12,000)
Credit Sales = $4,800 (40% of $12,000)
Office furniture paid = $9,700
Therefore, total liabilities at the end of September, 2013 = $9,000. This represents the note payable for the office equipment purchased in B.
Matrix Inc. calculates cost for an equivalent unit of production using both the weighted-average and the FIFO methods.
Data for July:
Work-in-process inventory, July 1 (36,000 units):
Direct materials (100% completed) $122,400
Conversion (50% completed) 76,800
Balance in work in process inventory, July 1 $199,200
Units started during July 90,000
Units completed and transferred 102,000
Work-in-process inventory, July 31:
Direct materials (100% completed) 24,000
Conversion (50% completed)
Cost incurred during July:
Direct materials $180,000
Conversion costs 288,000
Cost per equivalent unit for conversion under the FIFO method is calculated to be:__________
(please provide step by step solution for further understanding)
a) $2.40.
b) $3.20.
c) $3.00.
d) $3.10.
e) $2.00.
Answer:
c) $3.00
Explanation:
The FIFO method assumes that the cost of the Beginning Work In Process will automatically go towards the completed units, because the units that were incomplete for the previous period are the first to be completed in the current period. Thus, we are only interested in the current costs instead of getting a weighted average (combining the cost of last year in beginning inventory and the cost of the current period).
Step 1
Calculate the equivalent units
To finish Beginning work in Process (36,000 x 50%) = 18,000
Started and Completed (102,000 - 36,000) x 100% = 66,000
Ending Work In Process (24,000 x 50%) = 12,000
Equivalent units of production for conversion Costs = 96,000
Step 2
Determine the Conversion Costs for the Current period
Conversion Costs incurred = $288,000
Step 3
Determine the Cost per equivalent unit for conversion costs
Cost per equivalent unit = Total Cost ÷ Total Equivalent units
therefore,
Cost per equivalent unit = $288,000 ÷ 96,000 = $3.00
Company B acquired the following piece of equipment. Your staff accountant computed the book and tax depreciation. It is up to you to determine the deferred tax amounts. Equipment cost $50,000 Salvage 5,000 Useful life 5 Tax rate 21% Depreciation for book and tax purposes is as follows: Book Tax 20X1 9,000 20,000 20X2 9,000 12,000 20X3 9,000 7,200 20X4 9,000 4,320 20X5 9,000 1,480 What is the deferred taxes payable balance as of December 31, 20X3?
Answer:
$2,562
Explanation:
Excess tax depreciation 20X1 = 20,000 - 9,000 = $11,000
Excess tax depreciation 20X2 = 12,000 - 9,000 = $3,000
Excess tax depreciation 20X3 = 7,200 - 9,000 = ($1,800)
Total Excess tax depreciation $12,200
Deferred taxes payable balance,Dec 31. 20X3 = Total Excess tax depreciation * Tax rate = $12,200 * 21% = $2,562 Credit
On January 1 of the current reporting year, Coda Company's projected benefit obligation was $30 million. During the year, pension benefits paid by the trustee were $4 million. Service cost was $10 million. Pension plan assets earned $5 million as expected. At the end of the year, there was no net gain or loss and no prior service cost. The actuary's discount rate was 10%. Required: Determine the amount of the projected benefit obligation at December 31.
Answer:
The amount of projected benefit obligation is on Dec 31 is $39 million
Explanation:
The computation of the amount of projected benefit obligation is on Dec 31 as follows;
Beginning PBO $30 million
Service cost $10 million
Interest cost (10% × $30) $3 million
Loss (gain) on PBO $0
Less: benefits paid -$4 million
Ending PBO $39 million
Hence, the amount of projected benefit obligation is on Dec 31 is $39 million
During 2021, Phil Rupp presents the following transactions:_______.
Bank loan proceeds received (to purchase a new car) of $15,000
Wages of $56,821
Contribution to a Roth IRA of $5,000
Pass-through loss from a partnership of $7,637
Interest income earned of $43
Assuming Phil Rupp files as single with one valid dependent in 2017, his gross income is _______, while his adjusted gross income is ______.
Answer:
Assuming Phil Rupp files as single with one valid dependent in 2017, his gross income is __$56,864__, while his adjusted gross income is __$44,227_.
Explanation:
a) Data and Calculations:
Bank loan proceeds received (to purchase a new car) of $15,000
Wages of $56,821
Contribution to a Roth IRA of $5,000
Pass-through loss from a partnership of $7,637
Interest income earned of $43
Gross income:
Wages of $56,821
Interest income earned of $43
Total gross income = $56,864
Adjusted gross income:
Gross income of $56,864
less:
Contribution to a Roth IRA of $5,000
Pass-through loss from a partnership of $7,637 (less than 20% of $56,864)
Adjusted gross income = $44,227 ($56,864 - $5,000 - $7,637)
b) With Pass-through each partner's share of business income, gain, deduction, or loss is passed through to the owner and reported on the owner's personal federal income tax return for the tax year. According to the Tax Cuts and Jobs Act of 2017, individual business owners are entitled to up to 20% of their income as pass-through losses.
Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $250,000 of materials. Used $180,000 of direct materials in production. Incurred $450,000 of direct labor wages. Incurred $180,000 of factory overhead. Transferred $760,000 of work in process to finished goods. Sold goods for $1,200,000. Sold goods with a cost of $675,000. Incurred $215,000 of selling expense. Incurred $125,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 Revenues $fill in the blank f6cd0703e073f92_2 Cost of goods sold fill in the blank f6cd0703e073f92_4 Gross profit $fill in the blank f6cd0703e073f92_6 Operating expenses: Selling expenses $fill in the blank f6cd0703e073f92_8 Administrative expenses fill in the blank f6cd0703e073f92_10 Total operating expenses fill in the blank f6cd0703e073f92_11 Net income $fill in the blank f6cd0703e073f92_13
Answer:
Missing word "b. Determine the inventory balances at the end of the first month of operations."
a) Income statement
Sales $1,200,000
Cost of goods sold $675,000
Gross profit $525,000
Selling and administrative expense
Selling expense $215,000
Administrative expense $125,000
Total Selling and administrative expense $340,000
Operating income $185,000
b) Inventory balance
Raw material inventory ($250,000 - $180,000) = $70,000
Work in process ($180,000+$450,000+$180,000-$760,000) = $50,000
Finished goods ($760,000-$675,000) = $85,000
Under absorption costing, which of the following costs would not be included in finished goods inventory?
Oa. variable and fixed factory overhead cost
Ob. variable and fixed selling and administrative expenses
Oc. direct labor cost
Od. direct materials cost
Answer: variable and fixed factory overhead cost
Explanation:
22) One year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1. Since that time the rate of inflation in the U.S. has been 4% greater than that in Canada. Based on the theory of Relative PPP, the current spot exchange rate of U.S. dollars for Canadian dollars should be approximately ________. A) $0.96/C$ B) $1/C$1 C) $1.04/C$1 D) relative PPP provides no guide for this type of question
Answer: C) $1.04/C$1
Explanation:
We define the inflation rate in a certain country as
a rate at which the value of a currency is falling as a result the usual level of prices for goods and services keeps rising.1 year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1.
That time inflation rate in US was 4% greater than in Canada.
So, the current spot exchange rate of U.S. dollars for Canadian dollars :
($1 + 4% of $1)/C$1
=($1+$0.04)/ C$1
=$1.04 / C$1
Hence, the correct option is C) $1.04/C$1
International data show a positive correlation between income per person and the health of the population.
True or False: Individuals with higher incomes have better access to clean water, medical care, and good nutrition, and healthier individuals are likely to be more productive than sick ones.
Answer:
True
Explanation:
In the case when the person income is high so he have an opportunity to have a good food, healthy environment, health care, etc this represents that the higher income defines the good health and if a person is healthy so he would work in efficient way as compared with the sick person
Therefore the given statement is true
[The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 43,000 $ 52,000 Work in process 10,200 21,300 Finished goods 63,000 35,600 Activities and information for May Raw materials purchases (paid with cash) 210,000 Factory payroll (paid with cash) 345,000 Factory overhead Indirect materials 15,000 Indirect labor 80,000 Other overhead costs 120,000 Sales (received in cash) 1,400,000 Predetermined overhead rate based on direct labor cost 70 % Raw materials purchases for cash. Direct materials usage. Indirect materials usage. Prepare journal entries for the above transactions for the month of May.
Answer:
Journals have been prepared below !
Explanation:
Planes frequently push back from the gate on time, but then wait 2 feet away from the gate until it is time to queue up for takeoff. This increases fuel consumption, and increases the time that passengers must sit in a cramped plane awaiting takeoff.
Which of the following performance metrics would, if emphasized in evaluations, incentivize airlines to engage in such practices?
A. A performance metric that measures customer satisfaction, based on customer comfort while on the plane
B. A performance metric that measures timeliness of the flight, where a flight is considered "on time" as long as the flight is boarded and away from the gate by the scheduled departure time
C. A performance metric that measures timeliness of the flight, where a flight is considered "on time" as long as the plane takes off by the scheduled departure time.
Answer:
B.
Explanation:
The performance metric that would incentivize this would be one that measures timeliness of the flight, where a flight is considered "on time" as long as the flight is boarded and away from the gate by the scheduled departure time. This is because the time it takes for the plane to be boarded and ready for departure can vary and ultimately depends on many factors. Once the plane is completely boarded and away from the gate, the rest of the variables that affect the plane's ETA can be easily calculated by flight control and therefore can be considered as "on time"
Binder Corporation agreed to build a warehouse for a client at an agreed contract price of $4,000,000. Expected (and actual) costs for the warehouse follow: 2017, $640,000; 2018, $1,600,000; and 2019, $800,000. The company completed the warehouse in 2019. Compute net income for each year 2017 through 2019 using the cost-to-cost method. a. 2017: $200,000 2018: $520,000 2019: $240,000 b. 2017: $640,000 2018: $1,600,000 2019: $800,000 c. 2017: $0 2018: $0 2019: $960,000 d. 2017: $320,000 2018: $320,000 2019: $320,000
Answer:
The correct option is a. 2017: $200,000 2018: $520,000 2019: $240,000.
Explanation:
The formula for cost to cost method is expected or actual cost incurred to date divided by the total cost of the project or contract.
Therefore, we have:
Total cost = Cost in 2017 + Cost in 2018 + Cost in 2019 = $640,000 + $1,600,000 + $800,000 = $3,040,000
Cost in 2017 contribution to total cost = Cost in 2017 / Total cost = $640,000 / $3,040,000 = 0.21
Cost in 2018 contribution to total cost = Cost in 2018 / Total cost = $1,600,000 / $3,040,000 = 0.53
Cost in 2019 contribution to total cost = Cost in 2019 / Total cost = $800,000 / $3,040,000 = 0.26
Revenue in 2017 = Cost in 2017 contribution to total cost * Contract price = 0.21 * $4,000,000 = $840,000
Revenue in 2018 = Cost in 2018 contribution to total cost * Contract price = 0.53 * $4,000,000 = $2,120,000
Revenue in 2019 = Cost in 2019 contribution to total cost * Contract price = 0.26 * $4,000,000 = $1,040,000
Therefore, net income for each year 2017 through 2019 using the cost-to-cost method can be computed as follows:
Net income for year 2017 = Revenue in 2017 - Cost in 2017 = $840,000 - $640,000 = $200,000
Net income for year 2018 = Revenue in 2018 - Cost in 2018 = $2,120,000 - $1,600,000 = $520,000
Net income for year 2019 = Revenue in 2019 - Cost in 2019 = $1,040,000 - $800,000 = $240,000
Therefore, the correct option is a. 2017: $200,000 2018: $520,000 2019: $240,000.
Answer:
Eet
Explanation:
These are selected 2017 transactions for Flounder Corporation: Jan. 1 Purchased a copyright for $110, 750. The copyright has a useful life of 5 years and a remaining legal life of 33 years. Mar. 1 Purchased a patent with an estimated useful life of 6 years and a legal life of 20 years for $138, 600. Sept. 1 Purchased a small company and recorded goodwill of $153, 350. Its useful life is indefinite.
Prepare all adjusting entries at December 31 to record amortization required by the events. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)
Answer and Explanation:
The adjusting journal entries are as follows:
On Dec 31
Amortization expense $22,150 ($110,750 ÷ 5 years)
To Copyrights $22,150
(Being amortization expense is recorded)
Here amortization expense is debited as it increased the expenses and credited the copyrights as it decreased the assets
On Dec 31
Amortization expense $19,250 ($38,600 ÷ 6 years × 10 ÷ 12)
To Patents $19,250
(Being amortization expense is recorded)
Here amortization expense is debited as it increased the expenses and credited the patents as it decreased the assets
On Dec 31
No journal entry is required
Miguel Alvarez in the accounting department at Baumer Company has provided the following information:
Cost per Unit Cost per Period
Direct materials $6.25
Direct labor $3.20
Variable manufacturing overhead $1.20
Fixed manufacturing overhead $13,200
Sales commissions $1.20
Variable administrative expense $0.50
Fixed selling and administrative expense $3,300
The incremental manufacturing cost that the company will incur if it increases production from 5,500 to 5,501 units is closest to:_____
The incremental manufacturing cost that the company will incur if it increases production from 5,500 to 5,501 units is closest to $10.65.
Here, the fixed cost would not be relevant for the computation.
Incremental manufacturing cost when production level changed is
= Direct material cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit
= $6.25 + $3.20 + $1.20
= $10.65
In conclusion, the incremental manufacturing cost that the company will incur if it increases production from 5,500 to 5,501 units is closest to $10.65.
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how can you ensure that your personal brand remains credible
On January 1, 2020, Sheridan Company sold 10% bonds with a face value of $2750000. The bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $2973100 to yield 8%. Using the effective-interest method of amortization, interest expense for 2020 is
Answer:
$227,591.04
Explanation:
The computation of the interest expense is shown below;
The interest expense on the face value
= $2,750,000 × 10% × 6 months ÷ 12 months
= $137,500
And, the interest expense on the sale value
= $2,973,100 × 8% × 6 months ÷ 12 months
= $118,924
Now the closing balance would be
= $2,973,100 - $137,500 - $118,924
= $2,716,676
Now the interest on the same is
= $2,716,676 × 8% × 6 months ÷ 12 months
= $108,667.04
Now the interest expense is
= $108,667.04 + $118,924
= $227,591.04
The following transactions took place for Tanaka company in June: Purchased equipment on account for $9,800. Billed customers $5,600 for services performed. Made payment of $2,400 on account for equipment purchased earlier in month. Collected $3,900 on customer accounts. What are the Accounts Payable and Accounts Receivable balances at June 30, 2016
Answer: See explanation
Explanation:
The Accounts Payable balance would be calculated as:
Beginning balance = $9800
Less: Amount Paid = $2400
Account payable = $7400
The Accounts Receivable balances at June 30, 2016 would be:
Beginning balance = $5600
Less: Amount received = $3900
Account receivable balance = $1700
Suppose you win $1 million in a lottery and your winnings are scheduled to be paid as follows: $400000 at the end of one year, $400000 at the end of two years, and $200000 at the end of three years. If the interest rate is 5 percent, what is the present discounted value of your winnings
Answer:
The present discounted value of the winnings is $916,531.69.
Explanation:
The present discounted values of each of the payment can be calculated using the present value formula as follows:
PV = FV / (1 + r)^n ...................... (1)
Where;
PV = Present discounted value of payment at the end of specified year(s)
FV = Future value or the scheduled amount
r = interest rate
n = year in which the payment is scheduled to be paid
Using equation (1), we have:
PV of payment at the end of one year = $400000 / (1 + 5%)^1 = $380,952.38
PV of payment at the end of two years = $400000 / (1 + 5%)^2 = $362,811.79
PV of payment at the end of three years = $200000 / (1 + 5%)^3 = $172,767.52
The present discounted value of the winnings can now be calculated as the additions of the 3 PVs above as follows:
PV of the winnings = PV of payment at the end of one year + PV of payment at the end of two years + PV of payment at the end of three years = $380,952.38 + $362,811.79 + $172,767.52 = $916,531.69
Therefore, the present discounted value of the winnings is $916,531.69.
What happens to your employer-sponsored retirement plan if you decide to change employers?
Answer:
Most 401 (k) or IRA accounts allow employees to roll-over their accounts from the old employer to the new employer. Depending on the account and how much time you have been making contributions, you could also cash your retirement account, but that would mean starting from zero with the new employer.
Answer:
a). You may roll your money over to a new plan through your new employer.
b) You can withdraw the money from your plan in one lump sum and pay income taxes and likely a penalty as well.
c) You can leave the money in the plan with your former employer.
answer is correct
d) All of the above
Explanation:
The town clerk receives the mail for the Town of Charity, every day. Included in the mail are utility payments, both in cash and check form. The amount of money taken in by the Utility Department is lower than it should be. The Utility Department also takes in checks and cash on a daily basis. No customer has complained that they are not credited for payment of their bill. Different people make the ledger entries in the Utility Department Office. Different people make the bank deposits. How did she commit the fraud
Unclear question. However, I answered based on the case above.
Answer:
by stealing from the utility cash payments
Explanation:
Recall we are told that the utility payments are received in both cash and check form.
Hence, it is possible for the clerk to steal from the cash utility payment rather than the checks because it can easily go unnoticed by customers, or differences may be overlooked by some, and so she was able to commit this fraud.
Use the following tax rates, ceiling and maximum taxes:
Employee and Employer OASDI: 6.20% $127,200 $7,886.40
Employee* and Employer HI: 1.45% No limit No maximum
Self-employed OASDI: 12.4% $127,200 $15,772.80
Self-employed HI: 2.9% No limit No maximum
*Employee HI: Plus an additional 0.9% on wages over $200,000. Also applicable to self-employed.
Rounding Rules: Unless instructed otherwise compute hourly rate and overtime rates as follows:
Carry the hourly rate and the overtime rate to 3 decimal places and then round off to 2 decimal places (round the hourly rate to 2 decimal places before multiplying by one and one-half to determine the overtime rate).
If the third decimal place is 5 or more, round to the next higher cent.
If the third decimal place is less than 5, drop the third decimal place.
Also, use the minimum hourly wage of $7.25 in solving these problems and all that follow.
Jax Company's (a monthly depositor) tax liability (amount withheld from employees' wages for federal income tax and FICA tax plus the company's portion of the FICA tax) for July was $1,210. No deposit was made by the company until August 24, 20--. Determine the following:
Note: Round your answers to the nearest cent and assume 365 days in a year.
a. The date by which the deposit should have been made August 25
b. The penalty for failure to make timely deposit $________
c. The penalty for failure to fully pay tax when due $________
d. The interest on taxes due and unpaid (assume a 4% interest rate) $________
Answer:
A. 15th August
B. 60.5
C. 6.05
D. 1.19
Explanation:
Let assume that during the lookback period, you reported a tax rate of $50000 or less. It implies that you're a monthly depositor(based on schedule) and all taxes much be deposited on or before the 15th day of the next month.
Inability to meet up with the timely deposit has penalty based on their tiers.
For 1 - 5 days late = 2% of upaod depsot
6 - 15 late = 5% on tax payment
15 days late = 10% on deposits
10 days late of IRS = 15% on deposit
Since no deposits were made till Aug 24, then deposit has been delayed by 9 days (i.e. Aug 15 - 24)
Thus, the penalty for making timely deposit = 1210 × 0.05 = 60.5
Inability to pay the penalty = 0.5 percent per month ( for unpaid taxes).
So, the penalty for failure of fully paid tax = 120 × 0.5% = 6.05
Assuming a 4% interest rate; the interest on taxes due & unpaid is
= 1210 × 0.04 × 9/365
= 1.19
Therefore, the total penalty imposed = 60.5 + 6.05 + 1.19 = 67.74
The Beckham Company has the following information about their activity cost pools: Activity Cost Pools Total Overhead Cost Total Activity Machine Setups $ 125,000 5,000 setups Customer Orders $ 200,000 1,250 orders Product Design $ 300,000 2,500 product design hours The activity rate for machine setups is ________. multiple choice $125,000 $0.04 per setup $10 per setup $25 per setup
Answer:
$25 per setup
Explanation:
With regards to the above, activity rate is computed as;
= Activity cost pool resources / Activity driver
Activity cost pool resources = $125,000
Activity driver = 5,000
Activity rate for machine setup = $125,000/5,000 = $25 per setup
_____ is a method of attempting to settle labor disputes in when a specialist from the federal government helps management and the union focus on the issues and acts as a communication channel through which management and the union can send messages and share information with each other.
Answer: e. Conciliation
Explanation:
This process is known as Conciliation and it falls under the purview of the Federal Mediation and Conciliation Service of the United States.
Conciliation stands out from Mediation because with mediation, the third party that is helping both sides negotiate might not be trained but with Conciliation, the third part is a specialist in the process and thus will be more effective in dealing with the dispute.
What are the costs and sources of inefficiency in a barter B apply.) A. Productivity is increased by specialization. B. Each good has only one price. C. There is increased time and effort spent looking for trading partners. D. There is a lack of standardization. E. There is difficulty in accumulating wealth. OF. Transactions costs are almost always high.
Answer:
C)There is increased time and effort spent looking for trading partners.
D)There is a lack of standardization.
E)There is difficulty in accumulating wealth.
Explanation:
barter in a trade can be regarded as a system of exchange that involves exchange of goods and services for another without using money as a medium of exchange. Barter is been considered as 'inefficient' as a result of the needs for 'double coincidence of wants'. For instance in a situation whereby someone is buying particular amount of another's goods, but the payment he/she has is for just one indivisible unit of another good, and the worth is higher than what he/she want to obtain, in this case there won't be barter transaction.
It should be noted that the costs and sources of inefficiency in a barter are;
✓There is increased time and effort spent looking for trading partners.
✓There is a lack of standardization.
✓There is difficulty in accumulating
In 2019, Martin had two employers during the year. Both employers withheld Social Security tax from his wages in the amounts of $4,314.05 and $4,274.75. What amount can Martin claim as a credit against his income tax when he files his income tax return
Answer:
$1241.80
Explanation:
From the given information:
the social security taxes withheld by both employers are $4314.05 and $4274.75 respectively.
Let's recall that the maximum amount the IRS can also withhold from wages is $7347.00.
Therefore;
the required amount that can be claimed as a credit is:
= $4,314.05 + $4,274.75 - $7347.00
= $1241.80
Answer:
$349
Explanation:
1) 4,314.05 + 4,274.75 = 8,588.80
2) Social security withheld max: 132,900 * 6.2% = 8,239.80
3) 8,588.80 - 8,239.80 = 349
The management of Krach Corporation would like to investigate the possibility of basing its predetermined overhead rate on activity at capacity. The company's controller has provided an example to illustrate how this new system would work. In this example, the allocation base is machine-hours and the estimated amount of the allocation base for the upcoming year is 13,000 machine-hours. Capacity is 19,000 machine-hours and the actual level of activity for the year is assumed to be 9500 machine-hours. All of the manufacturing overhead is fixed and both the estimated amount at the beginning of the year and the actual amount at the end of the year are assumed to be $22,800 per year. For simplicity, it is assumed that this is the estimated manufacturing overhead for the year as well as the manufacturing overhead at capacity. It is further assumed that this is also the actual amount of manufacturing overhead for the year. If the company bases its predetermined overhead rate on capacity, what would be the cost of unused capacity reported on the income statement prepared for internal management purposes
Answer:
the cost of the unused capacity reported is $11,400
Explanation:
The computation of the cost of the unused capacity reported is as follows:
= (Estimated amount of overhead ÷ capacity machine hours) × (capacity machine hours - actual machine hours)
= ($22,800 ÷ 19,000 machine hours) × (19,000 - 9,500)
= $1.2 × (9,500)
= $11,400
hence, the cost of the unused capacity reported is $11,400
You own one futures contract on gold that you purchased at a quoted price of 1,448.5. The current price quote is 1,405.5. The contract size is 100 ounces and the quotes are expressed in dollars and cents per ounce. What is your current profit or loss on this investment?
a. $912.00.
b. $4,300.00.
c. −$43.00.
d. −$4,300.00.
e. −$912.00.
Answer:
d. -$4,300.00
Explanation:
Calculation for What is your current profit or loss on this investment
Using this formula
Current profit or loss = Contract size*(Current price quote-Quoted price )
Let plug in the formula
Current profit or loss = 100 *($1,405.5-$1,448.5)
Current profit or loss = 100 *-$43
Current loss = -$4,300.00
Therefore your current loss on this investment will be -$4,300.00
Compare and by converting their income statements to common size. Martinez Rojo Net sales. . . . . . . . . . . . . . . . . . . . . . . . . . . $10,900 $19,536 Cost of goods sold. . . . . . . . . . . . . . . . . . 6,660 14,203 Other expense. . . . . . . . . . . . . . . . . . . 3,564 4,356 Net income. . . . . . . . . . . . . . . . . . . . . . . . . $676 $977 Which company earns more net income? Which company's net income is a higher percentage of its net sales?
Answer:
a. Rojo
b. Martinez
Explanation:
When converting the income statement to common size, everything is made a percentage of net sales.
Martinez Rojo
Net Sales 100% 100%
Cost of goods sold (61.1% ) ( 72.7%)
Other expenses (32.7% ) ( 22.3%)
Net Income 6.2% 5.0%
Working
Martinez Rojo
Cost of goods 6,660/10,900 14,203/19,536
Other expenses 3,564/10,900 4,365/19,536
Net income 676/10,900 977/19,536
a. Company with more Net income
= Rojo
b. Company with higher net income as percentage of net sales
= Martinez
Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2018 bank statement included the following information:
Balance, July 1, 2018 $56,428
Deposits 180,100
Checks processed (193,210 )
Service charges (60 )
NSF checks (1,500 )
Monthly loan payment deducted directly by bank from account (includes $520 in interest) (3,620 )
Balance, July 31, 2018 $38,138
The company's general ledger account had a balance of $38,918 at the end of July. Deposits outstanding totaled $6,300 and all checks written by the company were processed by the bank except for those totaling $8,420. In addition, a $2,000 July deposit from a credit customer was recorded as a $200 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $30 disbursement was incorrectly processed by the bank as a $300 disbursement.
Required:
a. Prepare a bank reconciliation for the month of July.
b. Prepare the necessary journal entries at the end of July to adjust the general ledger cash account.
Answer:
A. Corrected bank balance $35,538
Corrected cash balance $35,538
B. 1. Dr Cash 1,800
Cr Accounts receivable 1,800
2.Dr Miscellaneous expense (Bank service charges) 60
Dr Accounts receivable (NSF Check) 1,500
Dr Interest expense 520
Cr Cash 2,080
Explanation:
a. Preparation of a bank reconciliation for the month of July.
BANK RECONCILATION STATEMENT
Bank balance to correct balance
Balance per bank statement $38,138
Add: Deposits outstanding 6,300
Add: Bank error in recording check (300-30) 270
Deduct: Checks outstanding ($8,420)
Corrected bank balance $35,538
Book balance to corrected balance
Balance as per books $38,918
Add: Error in recording cash receipt (2,000-200) 1,800
Deduct: NSF checks (1,500)
Deduct: Automatic monthly loan payment (3,620)
Deduct: Service charges (60)
Corrected cash balance 35,538
b. Preparation of the necessary journal entries at the end of July to adjust the general ledger cash account.
1. Dr Cash 1,800
Cr Accounts receivable 1,800
(Being To record the correct error in recording cash receipt)
2.Dr Miscellaneous expense (Bank service charges) 60
Dr Accounts receivable (NSF Check) 1,500
Dr Interest expense 520
Cr Cash 2,080
(To record credit to cash)
Determine how the following scenarios affect the firm's cash position. Identify whether the scenario describes a financing, investing, or operating activity (as defined on the Statement of Cash Flows). Scenario Operating Activity Investing Activity Financing Activity Sell a tract of land it has held for years Pay preferred stock dividends Increase accrued liabilities Sell some old equipment Issue shares of common stock Increase inventory holdings Buy property for a future factory Now, indicate which of the scenarios below are expected to increase a company's cash flow. Check all that apply. Increase accrued liabilities Increase inventory holdings Sell some old equipment Issue shares of common stock Pay preferred stock dividends
Answer:
Scenario Description
Sell a tract of land it has held for years Investing
Pay preferred stock dividends Financing
Increase accrued liabilities Investing
Sell some old equipment Operating
Issue shares of common stock Financing
Increase inventory holdings Operating
Buy property for a future factory Investing
Also, Scenarios that are expected to increase a company’ cash-flow are Issue shares of common stock, Increase accrued liabilities and Sell some old equipment.
Imagine that you and a friend have developed a new sneaker and would like to manufacture the sneaker and sell it to Foot Locker. In a paragraph state what form of business organization you would select for your company and why. Be specific and include some advantages and
disadvantages of the organization you chose and those that you did not choose.
Answer:
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