B) the value is the amount that puts the owner back in the same financial position they were in before the property was taken from them.
What is the owner's investment worth?
In basic terms, proprietor's value is characterized as how much cash put by the proprietor in the business less any cash taken out by the proprietor of the business. For instance: Owner's equity equals $100,000 in the scenario where a $500,000 real estate project has a $400,000 loan balance due.
What is the owner's equity worth?
Owner's equity is defined as the owner's investment in an asset after liabilities are deducted. The owner can determine what they own after paying off debts by looking at the difference between the number of assets and liabilities. Other names for owner's equity include net worth and net assets.
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Using these data from the comparative balance sheet of Rollaird Company, perform horizontal analysis.
December 31, 2020 December 31, 2019
Accounts receivable $524,000 $400,000
Inventory 868,000 620,000
Total assets 3,018,600 2,580,000
Increase or (Decrease)
December 31, 2020 December 31, 2019 Amount Percentage
Accounts receivable $524,000 $400,000 $ %
Inventory 868,000 620,000 $ %
Total assets 3,018,600 2,580,000 $ %
Answer:
Increase
2020 - 2019 Amount Percentage
Accounts receivable 524,000 400,000 $124,000 31%
Inventory 868,000 620,000 $248,000 40%
Total Assets 3,018,600 2,580,000 $438,600 17%
Percentage increase:
Accounts receivable = 124,000 / 400,000 = 31%
Inventory = 248,000 / 620,000 = 40%
Total Assets = 438,600 / 2,580,000 = 17%
Which one of the following statements is TRUE?
a. The supervisor-employee relation between a production line supervisor and a production line operator is an example of an agency relationship.
b. An example of an agency relationship is when the CEO nominates a slate of candidates to be on the board of directors.
c. An example of an agency relationship is when a supervisor hires a forklift operator.
d. In an agency relationship, the principal delegates decision-making authority to the agent.
e. In an agency relationship, the agent delegates authority to the principal."
Answer:
D.
Explanation:
Agency relationship implies that one person referred as principal allows another person agent to take decision or act on former's behalf.
In an agency relationship, the principal delegates decision-making authority to the agent.
Universal Foods has a debt-to-value ratio of 36%, its debt is currently selling on a yield of 8%, and its cost of equity is 12%. The corporate tax rate is 40%. The company is now evaluating a new venture into home computer systems. The internal rate of return on this venture is estimated at 13.4%. WACCs of firms in the personal computer industry tend to average around 14%.
a. What is Universal's WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
WACC
b. Will Universal make the correct decision if it discounts cash flows on the proposed venture at the firm's WACC?
A. Yes
B. No
c. Should the new project be pursued?
A. Yes
B. No
Answer:
A. 9.41%
B. No
C. No
Explanation:
a. Calculation to determine Universal's WACC
Using this formula
rEquity = (D / V) × (1 - Tc)rDebt + (E / V) × rEquity
Let plug in the formula
rEquity= 0.36× (1 - 0.40)(0.08) + (1 - 0.36) × 0.12
rEquity=0.36×(0.60)(0.08)+(0.64)×0.12
rEquity=(0.36×0.048)+0.0768
rEquity=0.01728+0.0768
rEquity=0.0941*100
rEquity=9.41%
Therefore Universal's WACC is 9.41%
b. No. Based on the above calculation the Universal would not make the correct decision if it discounts cash flows on the proposed venture at the firm's WACC reason been that it is above the company WACC.
c. No. The new project should not be pursued reason been that the INTERNAL RATE OF RETURN( IRR ) is lower than the required discount rate of 14% and it tend to have a negative NET PRESENT VALUE (NPV).
The Labor Market — End of Chapter Problem
The number of bank tellers declined from an aver-age of 20 per branch in 1988 to 13 in 2004, as ATMs replaced human tellers. This meant that the cost of running each branch fell. Banks responded by increasing the number of urban bank branches by 43% in the same time period, which increased the total number of bank employees. So ATMs shifted employees' work from routine tasks like deposits and withdrawals towards skills machines cannot provide, such as sales and customer service.
When the use of ATMs became more prevalent, reducing the banks' overall costs, the ______ was dominant. On net, labor and capital would be considered _______ in this industry.
Answer: scale effect; complement
Explanation:
When the use of ATMs became more prevalent, reducing the banks' overall costs, the (scale effect) was dominant while on net, labor and capital would be considered (complement) in this industry.
Labor and Capital are regarded as complement because they work alongside each other. The ATM machines can only work with the labor available who operates it. Therefore, they go hand in hand as one can't function without the other.
Marriott International is a worldwide operator, franchisor, and licensor of hotels, residential, and timeshare properties totaling nearly $1.8 billion in net property and equipment. Assume that Marriott replaced furniture that had been used in the business for five years. The records of the company reflected the following regarding the sale of the existing furniture:
Furniture (cost) ............................... $8,000,000
Accumulated depreciation .............. ...7,700,000
Required:
1. Give the journal entry for the disposal of the furniture, assuming that it was sold for
a. $300,000 cash
b. $900,000 cash
c. $100,000 cash
2. Based on the three preceding situations, explain the effects of the disposal of an asset.
Answer:
Marriott International
Journal Entries:
a. $300,000 cash
Debit Sale of Assets $8,000,000
Credit Furniture $8,000,000
To transfer the account to sale of assets account.
Debit Accumulated Depreciation $7,700,000
Credit Sale of Assets $7,700,000
To transfer the account to sale of assets account.
Cash $300,000
Sale of Assets $300,000
To record the cash receipts from the sale of assets.
No gain or loss on disposal.
b. $900,000 cash
Debit Sale of Assets $8,000,000
Credit Furniture $8,000,000
To transfer the account to sale of assets account.
Debit Accumulated Depreciation $7,700,000
Credit Sale of Assets $7,700,000
To transfer the account to sale of assets account.
Debit Cash $900,000
Credit Sale of Assets $900,000
To record the cash receipts from the sale of assets.
Sale of Assets $600,000
Gain on Disposal $600,000
To record the gain on the disposal of the furniture.
c. $100,000 cash
Debit Sale of Assets $8,000,000
Credit Furniture $8,000,000
To transfer the account to sale of assets account.
Debit Accumulated Depreciation $7,700,000
Credit Sale of Assets $7,700,000
To transfer the account to sale of assets account.
Debit Cash $100,000
Credit Sale of Assets $100,000
To record the cash receipts from the sale of assets.
Loss on Disposal $200,000
Sale of Assets $200,000
To record the loss on disposal of the furniture.
2. The disposal of an asset creates either a loss on disposal or a gain on disposal, which is normally regarded as a capital loss or a capital gain, as the case may be.
Explanation:
a) Data and Calculations:
Furniture (cost) ............................... $8,000,000
Accumulated depreciation .............. ...7,700,000
Net book value = $300,000
a. $300,000 cash
Sale of Assets $8,000,000
Furniture $8,000,000
Accumulated Depreciation $7,700,000
Sale of Assets $7,700,000
Cash $300,000
Sale of Assets $300,000
b. $900,000 cash
Sale of Assets $8,000,000
Furniture $8,000,000
Accumulated Depreciation $7,700,000
Sale of Assets $7,700,000
Cash $900,000
Sale of Assets $900,000
c. $100,000 cash
Sale of Assets $8,000,000
Furniture $8,000,000
Accumulated Depreciation $7,700,000
Sale of Assets $7,700,000
Cash $100,000
Sale of Assets $100,000
X Company uses determined that the net realizable value of its accounts receivable at December 31, 2018, based on an aging of the receivables, was $63,500. Additional information is as follows:
Allowance for doubtful account, 1/1/2018 $3,200 Uncollectible accounts written off during 2018 $650 Uncollectible accounts recovered during 2018 $300 Unadjusted accounts receivable at 12/31/2018 $67,200
For the year ended December 31, 2018, Ace's bad debt expense would be:_______.
Answer:
$850
Explanation:
Calculation to determine what Ace's bad debt expense would be:
First step is to calculate Ending Allowance for doubtful account
Ending Allowance for doubtful account=$67,200-$63,500
Ending Allowance for doubtful account=$3,700
Now let calculate what Ace's bad debt expense would be
Using this formula
Bad debt expense=[Ending Allowance for doubtful account-(Beginning Allowance for doubtful account-Uncollectible accounts written off+Uncollectible accounts recovered)]
Let plug in the formula
Bad debt expense=[$3,700-($3,200-$650+$300)]
Bad debt expense=$3,700-$2,850
Bad debt expense=$850
Therefore For the year ended December 31, 2018, Ace's bad debt expense would be:$850
Suppose that fixed costs for a firm in the automobile industry (start-up costs of factories, capital equipment, and so on) are $5 billion and that variable costs are equal to $17,000 per finished automobile. Because more firms increase competition in the market, the market price falls as more firms enter an automobile market, or specifically P = 17,000 + (150/n), where n represents the number of firms in a market. Assume that the initial size of the U.S, and the European automobile markets are 300 million and 533 million people, respectively.
a. Calculate the equilibrium number of firms in the U.S. and European automobile markets without trade.
b. What is the equilibrium price of automobiles in the United States and Europe if the automobile industry is closed to foreign trade?
c. Now suppose that the United States decides on free trade in automobiles with Europe. The trade agreement with the Europeans adds 533 million consumers to the automobile market, in addition to the 300 million in the United States. How many automobile firms will there be in the United States and in Europe combined? What will be the new equilibrium price of automobiles?
d. Why are prices in the United States different in (c) than in (b)? Are consumers better off with free trade? In what ways?
Answer:
Explanation:
Given that:
[tex]P =17000+(\dfrac{150}{n})[/tex]
where;
P = the price and;
n is the number of firms.
Now, Recall that:
[tex]AC = \dfrac{F}{Q}+C = \dfrac{F}{\dfrac{S}{n}}+C[/tex] [tex](for \ Q = \dfrac{S}{n})= n \times \dfrac{F}{S} + C[/tex]
where:
AC = average cost
F = fixed cost
Q = output of firm C
C = variable cost (The marginal cost is determined by variable costs and is influenced by fixed costs.)
S = The automobile sector's demand in each nation
But since avg. cost per unit, as well as the price, are just the same;
Then;
AC= P
[tex]17000+(\dfrac{150}{n})= n \times \dfrac{F}{S}+C --- (1)[/tex]
So, S is now worth $300 million in the United States.
Then, we get the value of n for the United States by replacing the values of S, F, and C in equation (1).
By solving:
n = 3
Similarly, S is valued at $53 million in Europe.
We get the estimated value of n for Europe by replacing the necessary values in equation (1).
Thus, by solving:
n = 4
Hence;
In the United States, the equilibrium number of companies is 3.
In Europe, the equilibrium number of firms is 4.
B)
Replacing the values for n in the equation:
[tex]P = 17000 +( \dfrac{150}{n})[/tex] we can determine the value of P in the United State:
[tex]P_{US} = 17000 + ( \dfrac{150}{3})[/tex]
= $17050.
Similarly, replacing the value for n in the equation;
[tex]P = 17000 +( \dfrac{150}{n})[/tex] we can determine the value of P in Europe
i.e.
[tex]P_{E} = 17000 + (\dfrac{150}{4})[/tex]
= $17037.50
C)
S is worth $833 million in the United States and Europe combined.
i.e (300 million + 533 million).
Replacing the values for S, F, and C in equation (1);
By solving;
The estimated value of n for both the United States and Europe is n = 5
However, replacing the value for n in the equation below, we have:
[tex]P = 17000 + ( \dfrac{150}{n})[/tex]
[tex]P = 17000+(\dfrac{150}{5})[/tex]
= $17030
Thus, the new equilibrium price of automobiles = $17030
D) Automobile prices have dropped to $17,030 per vehicle for both countries as a result of free trade. As a result, after the exchange is opened, customers would have to pay a reduced amount for an automobile purchase. Not only that but after the exchange, customers in each country have a wider range of products to choose from.
The amount of brands in the United States has increased from three to five, while in Europe it has increased from four to five. As a result, trade benefits customers in both countries.
Max wanted to open a pizza and sub restaurant. He compared purchasing a well-known franchise to opening his own restaurant as a small business. Which of the following would be a disadvantage to the franchise option? • Max will be able to use the business model provided by the franchise. • Max will have many competitors that offer pizzas and similar Italian fast food. • Max will have to use his savings and borrow some money to start his business. • Max will have to use the franchise's pizza sauce instead of his family recipe
Answer:
Max will have to use his savings and borrow some money to start his business
Explanation:
Max will be able to employ the franchise's offered business plan.A marketing concept that can be used by an organization as a strategy for business expansion is franchising. Hence option B is correct .
What was Franchise ?Where applicable, a franchisor grants a franchisee a license to use all or part of its operational methods, intellectual property, business model, brand, and rights to market and sell its branded goods and services. In exchange, the franchisee agrees to pay certain fees and adhere to specific requirements, usually outlined in a franchise agreement.
The word "franchise" is Anglo-French in origin, deriving from the French verb "francer," which means "to be free." Instead than expanding through acquisition, the franchisor's utilization of a franchise system is an alternate corporate growth approach.
Chains of stores controlled by corporations. For the selling and distribution of goods and services, a franchise system business growth plan reduces the franchisor's capital investment and liability risk.
Particularly in the conventional structure where the franchisee is an individual, franchising is rarely an equal partnership.
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Part of the screening process when choosing which markets to expand to involves gathering information on local markets. One way to gain information is by participating in trade fairs and trade missions. However, companies will often need additional information on markets that require further research. Collecting primary data in foreign markets can present some challenges in researchers especially because of cultural and technical differences between the markets. Identify whether each statement about the research process is most kikely to be associated with cuftural differences between markets or technical differences.
a. The meaning of words can change from one region to another.
b. Research instruments may need to be translated.
c. Social desirability bias may exist.
d. Street signs may be unreadable.
e. Mail service may be unreliable.
1. Cultural Differences
2. Technical Differences
Answer:
Cultural and Technical Differences Between Markets
a. Cultural
b. Cultural
c. Cultural
d. Technical
e. Technical
Explanation:
1. Cultural Differences: Cultural differences are the unique beliefs, behaviors, languages, practices, and expressions arising from differences in ethnic, racial, or national origins. For example, if the researcher is not versed in the local language, the research instruments or the researcher's answers will require translation.
2. Technical Differences: These differences arise from educational, legal, scientific, engineering, and business practice differences. For example, the "street signs may be unreadable" because there are no updated maps.
Explain Business Management Definition
Answer:
The process of organization coordinations for business activities
Explanation:
Business Management Definition and Its Functions in the Company
Definition of business management. The word business management comes from two words, namely management and business.
Business management function. The main objective of business management is the effective use of various resources within...
The type of management needed in business. The function of business Cordiantions
Logan Township acquired its water system from a private company on June 1. No receivables were acquired with the purchase. Therefore, total accounts receivable on June 1 had a zero balance. Logan plans to bill customers in the month following the month of sale, and 70% of the resulting billings will be collected during the billing month. In the next following month, 90% of the remaining balance should be collectable. The remaining uncollectible amounts will relate to citizens who have moved away. Such amounts are never expected to be collected and will be written off.
Water sales during June are estimated at $4,000,000, and expected to increase 30% in July. August sales will be the same as July sales.
Required:
Estimate the monthly cash collections for June, July, August, and September.
Answer:
Logan Township
Estimate of the monthly cash collections for June, July, August, and September:
June July August September
Sales of water $4,000,000 $5,200,000 $5,200,000
Cash Collections:
70% month of sale 2,800,000 3,640,000 3,640,000
27% following month 1,080,000 1,404,000 $1,404,000
Monthly cash
collections $2,800,000 $4,720,000 $5,044,000 $1,404,000
Explanation:
a) Data and Calculations:
Collections:
70% month of sale
90% of 30% following month of sale = 27%
10% of 30% Uncollectible = 3%
Water sales in June = $4,000,000
Water sales in July = $5,200,000 ($4,000,000 * 1.3)
Water sales in August = $5,200,000
June July August September
Sales of water $4,000,000 $5,200,000 $5,200,000
Cash Collections:
70% month of sale 2,800,000 3,640,000 3,640,000
27% following month 1,080,000 1,404,000 $1,404,000
Monthly cash
collections $2,800,000 $4,720,000 $5,044,000 $1,404,000
Which of the following is not a benefit of contributing to a retirement
account?
A. Contributions earning interest once deposited
B. Contributions equaling "free money"
O C. Reduction in taxable income
D. Employer matching
Answer:
"as long as you contribute, you dont have to pay any taxes" is the correct answer for me.
Explanation:
i just took the quiz, hope this helps!
The following is not a benefit of contributing to a retirement account: Contributions equaling "free money". Thus option (B) is correct.
What is a retirement account?A retirement account is a type of investment account designed to help individuals save for retirement. These accounts are intended to provide a source of income for individuals after they retire from work. There are several different types of retirement accounts, each with its own set of rules and tax advantages.
Overall, retirement accounts can be an effective way to save for retirement, and can provide tax advantages, potential employer contributions, and the benefits of compound interest over time.
Contributions equaling "free money" is not a benefit of contributing to a retirement account. Therefore option (B) is correct.
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What factor might an Irrational decision maker consider when making economic decisions?*
A emotions
B perceptions
C sunk costs
D any of the above
Based on the readings: match the following business example with its associated product cost term A businessowner pays for rent and equipment at their office An airline considers the costs of serving food and beverages to its passengers A company considers the costs it pays to its employees A clothing manufacturer buys new machines for its factory A. variable costs B. fixed costs C. fixed cost D. variable costs
Answer:
A business owner pays for rent and equipment at their office ⇒ FIXED COSTs since the amount of rent paid should be the same year after year
An airline considers the costs of serving food and beverages to its passengers ⇒ VARIABLE COSTS since the cost of serving food will increase as the number of passengers increase, or will decrease if the number of passengers decrease
A company considers the costs it pays to its employees ⇒ VARIABLE COSTS since the number of employee can vary and the number of hours worked can also vary
A clothing manufacturer buys new machines for its factory ⇒ FIXED COSTS since the machines are depreciated at a predetermined rate that doesn't depend on the factory's output
Kier Company issued $700,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 4-year term to maturity. The bonds have a 6.50% stated rate of interest and interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1
Answer: Interest expense = $45500
Cash outflow = $45500
Explanation:
Based on the information that were given in the question, the amounts of interest expense and cash flows from operating activities, that will be reported in the financial statements for the year ending December 31, Year 1 will be calculated thus:
Interest expense = $700,000 × 6.50%
= $700,000 × 0.065
= $45500
The interest expense of $45500 will be reported on December 31, Year 1 in the income statement and will also be reported in the cash outflow as well. Therefore,
Interest expense = $45500
Cash outflow = $45500
Click this link to view O*NET’s Skills section for General and Operations Managers. Note that common skills are listed toward the top and less common skills are listed toward the bottom. According to O*NET, what are common skills needed by General and Operations Managers? Select four options.
speaking
critical thinking
active listening
computer repair
reading comprehension
equipment selection
Answer:
i got bcde
Explanation:
abce
Explanation:
Describing Skills for General and Operations Managers
Anna Conda purchased a new Toyota Tundra pickup truck for $45,000 and financed $41,000 with a 5 year, 3.5% loan. Following the format of the loan disclosure statement, answer the following question. What is the total of all of the loan payments made?
Answer:
Anna Conda
The total of all the loan payments made is
= $48,708.
Explanation:
a) Data and Calculations:
Cost of the new Toyota Tundra pickup truck = $45,000
Loan to finance the purchase of the truck = $41,000
Period of loan = 5 years
Interest rate on the loan for financing the purchase = 3.5%
Future Value Factor at 3.5% for 5 years from a FV table = 1.188
Future Value of the loan = $41,000 * 1.188 = $48,708
The total interest on the loan = $7,708 ($48,708 - $41,000)
Based on the available data, the total of all of the loan payments made would be:
$48,708.According to the given question, we need to find the total of all the loan payments which have been made by Anna Conda based on her purchase of a new Toyota Tundra and her repayment plan.
As a result of this, we can see that we would use the available data to make the necessary calculations which would be first listed out as:
Price of the truck= $45,000
Loan gotten= $41,000
Time duration of loan= 5 years
Interest rate= 3.5%
Future Value at 3.5% for 5 years would be= 1.19
Therefore, the FV of the loan would be $41,000 x 1.19 = $48,708
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Taking a smartphone to the gym when you work out becomes more popular. What is the result of this event?
As a result, _______.
A. the quantity of smartphones demanded increases
B. the demand for smartphones increases
C. the quantity of smartphones demanded decreases
D. the demand for smartphones decreases
Answer:
B is the answer
Explanation:
it's B i think
When the smartphone you take to gym becomes more popular, then, the result will be an an increases in demand for smartphones
Demand means the willingness to acquire a product or service. Here, the popularity of the smartphone will result to an increase in its demand because people want to use the smartphone.
Hence, when the smartphone you take to gym becomes more popular, then, the result will be an an increases in demand for smartphones
Therefore, the Option B is correct
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Suppose that Federal Reserve policy leads to higher interest rates in the U.S.
If the U.S. is a closed economy in the short run, real GDP will _________ increase stay the same decrease .
If the U.S. is an open economy real GDP will _______ increase stay the same decrease by ________ more than in a closed economy the same amount as in a closed economy less than in a closed economy .
Answer:
If the U.S. is an open economy real GDP will decrease by more than in a closed economy.
Explanation:
Federal fund rate is the rate of depository fund which banks pay overnight. The rise in fed will cause the banks to pay more interest on the mandated reserve. If the interest rates are increased the real GDP will decrease because there will be reduced investments, less spending and consumption which leads to declined net exports. These all factors lead to decline in the Real GDP of U.S.
Faux Stamp company contemplating the acceptance of a special order has the following cost behavior, based on production of 10,000 units. The company is currently operating at 70% of its manufacturing capacity. A customer wants to purchase 2,000 units at a special unit price of $25. The normal price per unit is $50. Direct materials are $4 per unit, direct labor is $10 per unit, variable overhead is $8 per unit, and fixed overhead is $60,000 total. Perform an incremental analysis to determine the effect on net income if the special order is accepted, and decide whether management should accept the special order. What is the impact on net income if you accept the order?
Answer:
Management should accept the order because it increases net income by $6,000.
Explanation:
Giving the following information:
Number of units= 2,000
Unit selling price= $25
Direct material= $4
Direct labor= $10
Variable overhead= $8
Because it is a special order and there is unused capacity, we won't take into account the fixed costs.
To calculate the effect on income, we need to use the following formula:
Effect on income= number of units*unitary contribution margin
Effect on income= 2,000*(25 - 4 - 10 - 8)
Effect on income= $6,000 increase
Management should accept the order because it increases net income by $6,000.
Teal Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $3,420,000 on March 1, $2,280,000 on June 1, and $5,700,000 on December 31. Teal Company borrowed $1,900,000 on March 1 on a 5-year, 10% note to help finance construction of the building. In addition, the company had outstanding all year a 12%, 5-year, $3,800,000 note payable and an 11%, 4-year, $6,650,000 note payable. Compute avoidable interest for Teal Company. Use the weighted-average interest rate for interest capitalization purposes
Answer:
$418,790
Explanation:
Computation for the avoidable interest for Teal Company using the weighted-average interest rate for interest capitalization purposes
First step is to calculate the Expenditure for the year
Expenditure for the year
Mar-01 $3,420,000*10/12=$2,850,000
Jun-01 $2,280,000 *7 12=$1,064,000
Dec-31 $5,700,000*0/ 12=$ -
Total $ 11,400,000 $3,914,000
Second step is to compute the Weighted Average rate of all debt
Weighted Average rate of all debt:-
$3,800,000*12%=$456,000
$6,650,000*11%=$731,500
Total $10,450,000 $1,187,500
Weighted Average rate of all debt=($1,187,500 / $10,450,000)
Weighted Average rate of all debt = 11.36%
Now let compute the avoidable interest
AVOIDABLE INTEREST
$3,914,000
Less:$1,900,000*10%=$190,000
Balance$ 2,014,000*11.36% =$228,790
($3,914,000-$1,900,000=$ 2,014,000)
Avoidable Interest =$418,790
($190,000+$228,790)
Therefore the avoidable interest for Teal Company using the weighted-average interest rate for interest capitalization purposes will be $418,790
Jane Cooper's Department Stores allocates the costs of the Personnel and Payroll departments to three retail sales departments, Housewares, Clothing, and Furniture. In addition to providing services to the operating departments, Personnel and Payroll provide services to each other. Copper's allocates Personnel Department costs on the basis of gross payroll. Cost and allocation information for June is as follows:
Personnel Payroll Housewares Clothing Furniture
Direct department cost $15,600 $6,400 $24,400 $40,000 $33,500
Number of employees 15 12 24 32 12
Gross payroll $12,000 $6,600 $21,200 $26,100 $16,200
A) Determine the percentage of total Personnel Department services that was provided to the Payroll Department
B) Determine the percentage of total Payroll Department services that was provided to the Personnel Department.
C) Prepare a schedule showing Personnel Department and Payroll Department cost allocations to the operating departments, assuming Cooper's uses the step method.
Answer:
Jane Cooper's Department Stores
A) The percentage of total Personnel Department services provided to the Payroll Department is:
= 7.45%
b) The percentage of total Payroll Department services provided to the Personnel Department is:
= 14.33%
C) A Schedule showing Personnel Department and Payroll Department Cost Allocations to the operating departments, using the step method:
Allocation of service departments' costs:
Service Departments Retail Sales Departments
Personnel Payroll Housewares Clothing Furniture
Direct department cost $15,600 $6,400 $24,400 $40,000 $33,500
Number of employees 15 12 24 32 12
Gross payroll $12,000 $6,600 $21,200 $26,100 $16,200
Total costs $27,000 $13,000 $45,600 $66,100 $49,700
Personnel costs -27,000 2,013 7,060 10,233 7,694
Total costs remaining 0 15,013 $52,660 $76,333 $57,394
Payroll costs -15,013 4,242 6,148 4,623
Total costs after allocation of service costs $56,902 $82,481 $62,017
Explanation:
a) Data and Calculations:
Cost Allocation
Service Departments Retail Sales Departments
Personnel Payroll Housewares Clothing Furniture
Direct department cost $15,600 $6,400 $24,400 $40,000 $33,500
Number of employees 15 12 24 32 12
Gross payroll $12,000 $6,600 $21,200 $26,100 $16,200
Personnel costs:
Payroll = $13,000/$174,400 * $27,000 = $2,013
Housewares = $45,600/$174,400 * $27,000 = $7,060
Clothing = $66,100/$174,400 * $27,000 = $10,233
Furniture = $49,700 /$174,400 * $27,000 = $7,694
Payroll costs:
Housewares = $52,660/$186,387 * $15,013 = $4,242
Clothing = $76,333/$186,387 * $15,013 = $6,148
Furniture = $57,394/$186,387 * $15,013 = $4,623
Total Personnel Department services provided to the Payroll Department:
= $2,013/$27,000 * 100 = 7.45%
= $13,000/$174,400 * 100 = 7.45%
Total Payroll Department services provided to the Personnel Department:
= $27,000/$188,400 * 100 = 14.33%
Which of these best describes the Federal
Reserve System?-
It is an independent agency that
supervises and manages the financial
system.
-It is an agency through which Congress
supervises and manages the financial
system.
-It is an agency through which the judiciary
supervises and manages the financial
system.
-It is an agency through which the
executive branch supervises and manages
the financial system.
Answer:
Option A
Explanation:
The Federal Reserve System was created by Congress in order to provide an independent agency to the nation that can deal with the national monetary and financial system. It is the central bank of US that make monetary policies to maximize employment and stabilize inflation and interest rates.
Hence, option A is correct
Hoffman Corporation issued $60 million of 9%, 15-year bonds at 106. Each of the 60,000 bonds was convertible into one share of $1 par common stock. Prepare the journal entry to record the issuance of the bonds. (Enter your answers in millions rounded to 1 decimal place (i.e., 5,500,000 should be entered as 5.5). If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
Dr Cash $63,600,000
Cr Premium on Bonds $3,600,000
Cr Bonds payable $60,000,000
Explanation:
Preparation of the journal entry to record the issuance of the bonds.
Dr Cash $63,600,000
(106%*$60,000,000)
Cr Premium on Bonds $3,600,000
($63,600,000-$60,000,000)
Cr Bonds payable $60,000,000
(To record issuance of the bonds)
A mother notices that when she divides brownies equally between her two children and gives each child her share on a separate plate, the brownies last a long time. But when she gives her children a plate to share, the brownies are gone pretty quickly. The mother concludes from this that brownies given on a single plate are:_______.
A) excludable but they might either be rival or nonrival.
B) nonexcludable and nonrival.
C) excludable and rival.
D) excludable and nonrival.
E) nonexcludable and rival.
Answer:
E
Explanation:
I think this because if the children had'nt rivaled over the brownies, they would've lasted longer.
All of the following statements are true regarding the periodic inventory system except Under the periodic system, a company uses separate accounts to record freight costs, returns, and discounts. Using the periodic inventory system affects the balance sheet contents differently than when the perpetual system is used. Under the periodic inventory system, the balance of cost of goods sold is calculated at the end of the period. Under the periodic inventory system, the balance in ending inventory is calculated at the end of the period.
Answer:
Using the periodic inventory system affects the balance sheet contents differently than when the perpetual system is used
Explanation:
Periodic inventory system can be regarded as a method used in inventory valuation for the purpose of
financial reporting whereby physical count of the inventory is carried out at specific intervals. There is no effort made in keeping up-to-date records patterning the cost of goods sold as well as inventory under this system. It should be noted that these followings as regards to periodic inventory system
✓ Under the periodic system, a company uses separate accounts to record freight costs, returns, and discounts.
✓Under the periodic inventory system, the balance of cost of goods sold is calculated at the end of the period. ✓Under the periodic inventory system, the balance in ending inventory is calculated at the end of the period.
The Toronto Maple Company (TMC) produces maple syrup and syrup based products. During the current period, the firm's Production Department started production of 210,000 gallons of syrup. During the period, the firm completed and transferred 205,000 gallons to the Shipping Department. The firm ended the period with 12,500 gallons in ending inventory. All direct materials costs are added at the beginning of the production cycle. Weighted-average costing is used by the company. Part 1 (4 points): What were the equivalent units for conversion costs for the period if the beginning inventory was 75% complete as to conversion costs and the ending inventory was 40% complete as to conversion costs
Answer:
Equivalent units of production= 210,000 units
Explanation:
The weighted average method blends the costs and units of the previous period with the costs and units of the current period.
We need to use the following formula:
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 205,000 + (12,500*0.4)
Equivalent units of production= 210,000 units
You have decided to start a lawn service business to help pay your tuition so that you can complete your undergraduate accounting degree. You plan to provide various lawn maintenance services that will include lawn mowing services, aeration and fertilization. You and two of your friends have agreed to work for you in this new business endeavor. Which of the following would best describe organizing for your new business?
A. Preparing monthly billing statements for clients.
B. Determining the types of lawn services that you will provide for clients.
C. Providing employees with the authority to make decisions regarding a client.
D. Hiring and training new employees.
Answer:
B. Determining the types of lawn services that you will provide for clients.
Explanation:
As can be seen in the question above, you have decided to open a gardening business. However, as we know, gardening is very broad and many services can be associated with it. In order not to leave your business disorganized and to define the service you are offering, you have organized your business by determining the types of lawn services that your business offers, such as lawn mowing, aeration and fertilization.
On August 10, a credit card account had a balance of $325. A purchase of $56 was made on August 15, and $157 was charged on August 27. A payment of $79 was made on August 15. The interest on the average daily balance is 1.35% per month. Find the finance charge on the September 10 bill. (Round your answer to two decimal places.)
Answer:
The finance charge on the September 10 bill is $5.08.
Explanation:
Note: See the attached excel file for the calculation of the sum of total amount owed each day (in bold red color).
From the attached excel file, we have:
Sum of total amount owed each day = $11,675
Average daily balance = Sum of total amount owed each day / Number of days in the billing period = $11,675 / 31 = $376.61
Finance charge = Average daily balance * Interest rate per month = $376.61 * 1.35% = $5.08
Therefore, the finance charge on the September 10 bill is $5.08.
Scoring: Your score will be based on the number of correct matches. There is no penalty for incorrect or missing matches.
Match each of the following transactions to the journal in which it would be entered.
Clear All
Revenue journal Cash receipts journal Purchases journal Cash payments journal General journal Recognized depreciation on the building Journalized the adjusting entry for supplies used during the period Closed the revenue account at the end of the period Received cash from the bank in exchange for a note payable Withdrew cash for personal use (by owner)
Answer:
Matching transactions to the journal in which they would be entered:
Transactions Journal Type
1. Recognized depreciation on the building General Journal
2. Journalized the adjusting entry for supplies
used during the period General Journal
3. Closed the revenue account at the end
of the period General Journal
4. Received cash from the bank in exchange
for a note payable Cash Receipts Journal
5. Withdrew cash for personal use (by owner) Cash Payments Journal
Explanation:
Revenue journal records revenue transactions.
Cash receipts journal records all cash receipts.
Purchases journal records all purchases on account.
Cash payments journal records all cash payments.
General journal is used for all transactions, especially those that cannot be recorded in any of the other specialized journals.