Answer:
$150,450
Explanation:
With regards to the above, her assets are: checking account, savings account, Home, furniture and appliances, laptop, mutual fund, car and retirement account.
= $750 + $1,900 + $91,000 + $11,000 + $3,300 + $5,500 + $37,000
= $150,450
Therefore, the total value of her asset is $150,450
Jolanta earned $80,000 and had the following income or expenses: Qualified dividend income $8,000 Credit card interest $ 250 Qualified mortgage interest $5600 Un-reimbursed employee medical expenses $12,000 Assuming she had no other income or expenses, what will be the amount of itemized deductions allowed on her federal tax return for 2018
Answer:
Jolanta
The amount of itemized deductions allowed on her federal tax return for 2018:
= $5,600
Explanation:
a) Data and Calculations:
Jolanta's earnings = $80,000
Other income or expenses:
Qualified dividend income $8,000
Credit card interest $ 250
Qualified mortgage interest $5600
Unreimbursed employee medical expenses $12,000
Itemized Deductions:
Qualified mortgage interest $5600
b) The Tax Cuts and Jobs Act eliminated the deduction for unreimbursed employee expenses for the tax year 2018 to 2025. This means that Jolanta cannot include the unreimbursed employee medical expenses of $12,000 in her itemized deductions. Credit card interest is not an allowed item under itemized deductions as the tax law classifies it as a personal interest.
An example of structural unemployment is a(n):_______.
A) autoworker who is temporarily laid off because of a decline in sales.
B) geologist who is permanently laid off because of an increase in wages won by labor unions.
C) worker at a fast-food restaurant who quits work and attends college.
D) real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
Answer:
b
Explanation:
structural unemployment is an unemployment that occurs as a result of changes in the economy. These changes can be as a result of changes in technology, polices or competition . Structural unemployment tends to be permanent.
The geologist lost his hob permanently due to increase in wages (polices)
Other forms of unemployment includes :
Frictional unemployment . the period of time a person is unemployed from the period he leaves his current job and the time he gets another job. Eg. when a real estate agent who leaves a job in Texas and searches for a similar, higher-paying job in California.
Voluntary unemployment : e.g. worker at a fast-food restaurant who quits work and attends college.
Cyclical unemployment ; UNEMPLOYMENT that occurs as a result of fluctuations in the economy
Miriam, the controller, is basically claiming that the company is retaliating against her for being pregnant, and that the fact that we raised performance issues was just a smokescreen. Do you think the EEOC and/or courts would agree with her, and, in any case, what should we do now?
Answer:
the EEOC and/or courts would agree with her
Explanation:
The pregnancy act and family and medical leave act states that when a pregnant woman is unable to do her job effectively because of her condition she should treat her as a temporarily disabled person.
Miriam can take advantage of various benefits of temporarily disabled persons like less hours, disability leave, and modified tasks.
What should be done now is that Miriam should take on fewer hours and less stressful jobs until she recovers and can function fully.
If not she can sue the company for not respecting provisions of the pregnancy act
are capital markets also organisational markets?
Answer:A capital market is a financial market in which long-term debt (over a year) or equity-backed securities are bought and sold.[6] Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments.[a] Financial regulators like Securities and Exchange Board of India (SEBI), Bank of England (BoE) and the U.S. Securities and Exchange Commission (SEC) oversee capital markets to protect investors against fraud, among other duties.
Modern capital markets are almost invariably hosted on computer-based electronic trading platforms; most can be accessed only by entities within the financial sector or the treasury departments of governments and corporations, but some can be accessed directly by the public. As an example, in the United States, any American citizen with an internet connection can create an account with TreasuryDirect and use it to buy bonds in the primary market, though sales to individuals form only a tiny fraction of the total volume of bonds sold. Various private companies provide browser-based platforms that allow individuals to buy shares and sometimes even bonds in the secondary markets. There are many thousands of such systems, most serving only small parts of the overall capital markets. Entities hosting the systems include stock exchanges, investment banks, and government departments. Physically, the systems are hosted all over the world, though they tend to be concentrated in financial centres like London, New York, and Hong Kong.
Explanation:
The Package Store hires workers to wrap packages. The store sells this service for $5. The marginal revenue product of this store's fifth worker is $50. The marginal product of the fifth worker is A) 0.01 package. B) 1 package. C) 10 packages. D) indeterminate from this information
Answer: 10 packages
Explanation:
Marginal revenue (MR) is defined as an increase in the revenue that a company makes which is gotten from an additional sale that is made from a unit of output.
The marginal product of the fifth worker will be calculated as:
= Marginal Revenue Product / Price
= 50/5
= 10
The primary objective of financial accounting is to: Group of answer choices Serve the decision-making needs of internal users. Provide accounting information that serves external users. Monitor and control company activities. Provide information on both the costs and benefits of looking after products and services. Know what, when, and how much product to produce.
Answer:
Provide accounting information that serves external users.
Explanation:
Financial accounting is an accounting technique used for analyzing, summarizing and reporting of financial transactions like sales costs, purchase costs, payables and receivables of an organization using standard financial guidelines such as Generally Accepted Accounting Principles (GAAP) and financial accounting standards board (FASB). The financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining standard financial accounting and reporting for general guidance of individuals such as investors, issuers and auditors.
Financial reporting can be defined as the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. Examples of financial statements includes Balance sheet, cash-flow and income statement.
Hence, the primary objective of financial accounting is to provide accounting information that serves external users so as to enable them have a good understanding of the financial inclination of a business firm and thus, make an informed decision whether or not to invest in the business firm.
Same information as the previous question Company A started business on January 1, 20X1, and bought the following piece of equipment. Cost of asset $150,000 Useful life 3 Tax rate 21% 20X1 estimated tax payment 1,800 Depreciation for book and tax purposes is as follows: Book Tax 20X1 40,000 100,000 20X2 40,000 20,000 20X3 40,000 0 20X1 income statement information: Sales 638,000 Expenses (does not include depreciation expense and tax expense) 510,000 What the ending balance of deferred taxes payable as of December 31, 20X1?
Answer:
$12,600
Explanation:
Excess tax depreciation 20X1 = 100,000 - 40,000
Excess tax depreciation 20X1 = $60,000
Tax rate = 21%
Ending balance of deferred taxes payable = Excess tax depreciation 20X1 * Tax rate
Ending balance of deferred taxes payable = $60,000*21%
Ending balance of deferred taxes payable = $12,600
So, the ending balance of deferred taxes payable as of December 31, 20X1 is $12,600.
BuyCo, Inc., holds 25 percent of the outstanding shares of Marqueen Company and appropriately applies the equity method of accounting. Excess cost amortization (related to a patent) associated with this investment amounts to $10,800 per year. For 2020, Marqueen reported earnings of $102,000 and declares cash dividends of $30,000. During that year, Marqueen acquired inventory for $54,000, which it then sold to BuyCo for $75,000. At the end of 2020, BuyCo continued to hold merchandise with a transfer price of $29,000.
1. What Equity in Investee Income should BuyCo report for 2017?
2. How will the intra-entity transfer affect BuyCo's reporting in 2018?
3. If BuyCo had sold the inventory to Marqueen, how would the answers to (a) and (b) have changed?
Answer and Explanation:
The computation is shown below:
a. The equity in investee income for the year 2017 is
Equity income Accrual ($102,000 × 25%) $25500
Less: Deferral of Infra-entity gross profit ($2,030)
Less: Amortization of patent ($10,800)
Equity in investee income $12,670
Working Note:
For Deferral of intraentity gross profit :-
Ending Balance of Inventory $29,000
Gross Profit Percentage (($75,000 - $54,000) ÷ $75,000) 28%
Profit within Remaining Inventory $8,120
Ownership Percentage 25%
Intraentity gross Profit Deferral $2,030
b. The intra-entity impact for the year 2018 is that yhe accrual equity would be increased by $2,030
c. In the case when the inventory is sold from BuyCo to Marqueen so the direction i.e. upstream or downstream would remain unaffected the above answers
Type the correct answer in the box. Spell all words correctly.
What are the three ways through which a company tries to sell its products?
Businesses generally sell through a product's features, benefits, or
Reset
Next
Answer:
Values
Explanation:
Businesses generally sell through a product's features, benefits, or values
Value selling refers to the process of convincing buyers that your products will add value to their lives. It involves giving reasons and reinforcing why your products are the most valuable in the market.
Value selling focuses on the value derived from consuming a product but not how much it costs. In value selling, the salesperson highlights the impact a product creates rather than its purchase costs.
Rushmont, Inc. operates a small package delivery service in the Nashville suburbs. If the company uses a regression equation to forecast total operating costs, the coefficient of the equations independent variable would correspond to the: Multiple Choice fixed operating costs. total operating costs. variable operating cost per delivery. number of deliveries. total variable operating costs.
Answer:
variable operating cost per delivery.
Explanation:
The regression equation to find out the total operating cost is
Y = a + bx
here
Y denotes total operating cost
a denotes fixed operating cost
b denotes coefficient of independent variable
x denotes variable operating cost per delivery
Therefore the above represent the answer
Ryan is self-employed. This year Ryan used his personal auto for several long business trips. Ryan paid $1,920 for gasoline on these trips. His depreciation on the car if he was using it fully for business purposes would be $3,900. During the year, he drove his car a total of 20,200 miles (a combination of business and personal travel). (Round your final answers to the nearest whole dollar amount.)
Required:
a. Ryan can provide written documentation of the business purpose for trips totaling 3,700 miles. What business expense amount can Ryan deduct (if any) for these trips?
b. Ryan estimates that he drove approximately 2,220 miles on business trips, but he can only provide written documentation of the business purpose for trips totaling 1,400 miles. What business expense amount can Ryan deduct (if any) for these trips?
Answer:
a. $2,634.36
$1,481.11
Explanation:
a. Ryan can claim the direct costs of the trip being gasoline and oil. He can therefore claim the $1,920 he paid for gasoline.
In addition, some of the indirect costs can be claimed as well such as depreciation. The claim is calculated as:
= Depreciation amount * Business miles / Total miles driven
= 3,900 * 3,700 / 20,200
= $714.36
Total deduction = 1,920 + 714.36
= $2,634.36
b. Ryan needs to be able to prove that the cost he is claiming are indeed business expenses. Total deductibles are:
= (3,900 * 1,400/ 20,200) + (1,400/2,220 * 1,920)
= $1,481.11
Woodman Company uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. Estimated and actual data for direct labor and manufacturing overhead for last year are as follows:
Estimated Actual
Direct Labor Hours: 600,000 550,000
Manufacturing Overhead Estimated $720,000 $680,000
Answer:
Underapplied overhead= $20,000
Explanation:
Giving the following information:
Estimated Actual
Direct Labor Hours: 600,000 550,000
Manufacturing Overhead Estimated $720,000 $680,000
I assume that we need to calculate the over/under applied overhead.
First, we need to determine the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 720,000/600,000
Predetermined manufacturing overhead rate= $1.2 per direct labor hour
Now, we apply overhead based on actual hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 1.2*550,000
Allocated MOH= $660,000
Finally, the under/over applied overhead:
Under/over applied overhead= real overhead - allocated overhead
Under/over applied overhead= 680,000 - 660,000
Underapplied overhead= $20,000
Sue views hot dogs (H) and hot dog buns (B) as perfect complements in her consumption, and the corners of her indifference curves follow the 45-degree line: H-B. Suppose the price of hot dogs is $5 per package (8 hot dogs), the price of buns is $3 per package (8 hot dog buns), and Sue's budget is $48 per month. What is her optimal choice under this scenario?
A. 6 packages of hot dogs and 6 packages of buns.
B. 6 packages of hot dogs and 8 packages of buns.
C. 8 packages of hot dogs and 8 packages of buns.
D. 8 packages of hot dogs and 6 packages of buns.
Answer:
A
Explanation:
a budget constraint is the total amount of goods and services an individual can buy given the price of the products and the income of the consumer.
Sue is constrained by her income. Thus, she must spend within $48
The equation for this is :
$5H + $3B = $48
where
H = hot dogs
B = Hot dog buns
(5 x 6 ) + (3 x 6 ) = $48
Brief Exercise 1-1 (Algo) Accrual accounting [LO1-2] Cash flows during the first year of operations for the Harman-Kardon Consulting Company were as follows: Cash collected from customers, $290,000; Cash paid for rent, $30,000; Cash paid to employees for services rendered during the year, $110,000; Cash paid for utilities, $40,000. In addition, you determine that customers owed the company $50,000 at the end of the year and no bad debts were anticipated. Also, the company owed the gas and electric company $1,000 at year-end, and the rent payment was for a two-year period. Calculate accrual net income for the year.
Answer:
Net Income for the year is $174,000
Explanation:
Net Income Calculation for the year is done below:
Particulars $
Revenues (290,000 + 50,000) 340,000
Less: Rent (30,000 / 2) (15,000)
Less: Salaries (110,000)
Less: Utilities (40,000 + 1,000) (41,000)
Net Income 174,000
Please note the following with regard to the calculation done above:
Revenue includes both the cash collected from customers and cash owed by the customers, which received later on at the end of the year.Rent has been divided by two, this is due to the fact that calculation of net income is done for the current period so only one year rent is taken.Utilities include cash paid for utilities and the amount company owed to gas & electric company.Joanna is a Master Sergeant in the U.S. Air Force. In June of 2019, her duty station changed from Offutt Air Force Base in Nebraska to Lackland Air Force Base in Texas. She drove 918 miles and spent $1,300 to move her household items. Joanna also incurred costs of $880 when she sold her home in her former city. Included on her Form W-2, in box 12, is code P for $1,484. Joanna's moving expenses adjustment is
Answer:
$1,300
Explanation:
Based on the information given we were told that She drove 918 miles in which spent the amount of $1,300 to move all her household items which simply means that her moving expenses adjustment will be the amount of $1,300 which was the amount spent to move her household items from Nebraska to Texas.
Therefore Joanna's moving expenses adjustment is $1,300.
B) Suppose that regular raises at your job allow you to increase your annual payment by 5% each year. For simplicity, assume this is a nominal rate, and your payment amount increases continuously. How long will it take to pay off the mortgage
Answer:
Time period required to pay off the mortgage = 18 years
Explanation:
Note: This question is incomplete and lacks necessary data to solve. But I have found that necessary data on the internet, which I have written down and solved the question accordingly.
Data Missing:
Buying Cost of House = $320000
Interest rate = 7%
Annual Mortgage Payment = $25525.8
Now, we are required to calculate the time period required to pay off the mortgage.
Solution:
Data Given:
Increase in annual payment percentage = 5%
So,
Formula:
P = C[tex]e^{A-i}[/tex] + C[tex]e^{2(A-i)}[/tex] + C[tex]e^{3(A-i)}[/tex] + ........ + C[tex]e^{n(A-i)}[/tex]
Where,
P = Buying Cost of House = $320000
i = interest rate = 7% = 0.07
A = Increase in annual payment percentage = 5% = 0.05
C = Annual Mortgage Payment = $25525.8
P = C[tex]e^{A-i}[/tex] + C[tex]e^{2(A-i)}[/tex] + C[tex]e^{3(A-i)}[/tex] + ........ + C[tex]e^{n(A-i)}[/tex]
In this formula, we have all the required things expect the value of n, which we have to calculate.
n = Time period required to pay the mortgage.
So,
$320000 = 25525.8 [tex]e^{0.05 - 0.07}[/tex] + 25525.8 [tex]e^{2(0.05 - 0.07)}[/tex] + 25525.8 [tex]e^{3(0.05 - 0.07)}[/tex] + ..... + 25525.8 [tex]e^{n(0.05 - 0.07)}[/tex]
Taking 25525.8 common,
320000 = 25525.8 ( [tex]e^{-0.02}[/tex] + [tex]e^{-0.04}[/tex] + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )
320000/25525.8 = ( [tex]e^{-0.02}[/tex] + [tex]e^{-0.04}[/tex] + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )
12.536 = ( [tex]e^{-0.02}[/tex] + [tex]e^{-0.04}[/tex] + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )
Taking e common:
12.536 = [tex]e^{-0.02 -0.04 - 0.06 + .... -0.02n}[/tex]
Taking Ln to solve for n, we get:
n = 17.89
n ≈ 18
n = 18 years
Hence, Time period required to pay off the mortgage = 18 years
What is a whistleblower
Answer:
A whistle-blower is a person who informs on a person or an organization that is engaged in an illicit activity.
The cost of production of completed and finished goods during the period amounted to $400,000, and the finished products shipped to customers had total production costs of $337,000. From the following, select the entry to record the transfer of costs from work in process to finished goods.
a. Finished Goods 337,000 Work in Process 337,000
b. Work in Process 337,000 Finished Goods 337,000
c. Work in Process 400,000 Finished Goods 400,000
d. Finished Goods 400,000 Work in Process 400,000
Answer:
d. Finished Goods 400,000 Work in Process 400,000
Explanation:
Based on the information given the appropriate entry to record the transfer of costs from work in process to finished goods will be to Debit Finished Goods 400,000 and Cedit Work in Process 400,000 reason been that we were told that The cost of production of the completed and finished goods during the period was the amount of $400,000.
Dr Finished Goods 400,000
Cr Work in Process 400,000
Novak Corp. bought equipment on January 1, 2022. The equipment cost $390000 and had an expected salvage value of $35000. The life of the equipment was estimated to be 5 years. The company uses the straight-line method of depreciation. The book value of the equipment at the beginning of the third year would be
Answer:
$177,000
Explanation:
In order to find the book value of the equipment we need to find the amount of depreciation per year. To do this we need to subtract the salvage value from the initial cost and then simply divide by 5 which is the life span of the equipment...
(390,000 - 35,000) / 5 = x
355,000 / 5 = x
71,000 = x
Now we see that the equipment will depreciate by $71,000 per year. In three years the depreciation would be
71,000 * 3 = 213,000
Now we simply subtract this value from the initial cost to get the book value in the third year
390,000 - 213,000 = 177,000
An internal study by the Technology Services department at Lahey Electronics revealed company employees receive an average of 6.0 non-work-related e-mails per hour. Assume the arrival of these e-mails is approximated by the Poisson distribution.
a. What is the probability Linda Lahey, company president, received exactly 1 email between 4 P.M. and 5 P.M. yesterday?
b. What is the probability she received 5 or more emails during the same period?
c. What is the probability she did not receive any emails during the period?
Answer:
B.
Explanation:
measure of how many times an event is likely to occur within "X" period of time. the closest answer is letter B. Example if the fastfood had an average of 500 customer every Wednesday what is the probability that 700 customers will come every Wednesday?.
What are the five components of internal control briefly explain each component?
Answer: The five components of internal control are control environment, risk assessment, control activities, information and communication, and monitoring.
Explanation:
The five components of internal control are control environment, risk assessment, control activities, information and communication, and monitoring.
Control environment; is also known as internal control environment. These are set of standards and structures that guides the basis of carrying out internal control within an organization. It is the awareness, attitude and action of the management team regarding internal control and it's relevance to the organization
Risk assessment is used to describe the process and method of identifying hazard and risk which have potentials to raise harm in an environment
Control activities are policies, techniques and procedures that are pit in place to manage or reduce risk in an environment. Their actions carried out to minimize or limit risk in an environment
Information and communication is a method of information being passed through systems by means of communication. To place everyone involved in the system enlightened by communicating properly to them.
Monitoring is the act of observing a process to control both success and failure that may tend to arise within the process.
What is one key advantage to an employer-sponsored retirement plan?
Answer:
An employee's funds grow tax deferred in the plan. They don't pay taxes on investment earnings until they withdraw their money from the plan. An employee will pay income taxes and possibly an early withdrawal penalty if they withdraw their money from the plan.
Explanation:
I hope this helps. :D
One key advantage of an employer-sponsored retirement plan is the opportunity for employees to receive matching contributions from their employer.
Many employers offer a matching contribution as part of their retirement plan, which means that for every dollar an employee contributes to their retirement account, the employer will also contribute a certain amount, up to a specified limit.
This matching contribution is essentially free money provided by the employer to help employees save for retirement. It serves as an additional incentive for employees to participate in the retirement plan and contribute to their own savings.
Hence, The matching contribution is the key advantage to an employer-sponsored retirement plan.
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Karl works at Moe's grocery. This year Karl was paid $30,000 in salary, but he was allowed to purchase his groceries at 15 percent below Moe's cost. This year Karl spent $2,040 to purchase groceries, costing Moe $2,400. The groceries were worth $3,600. What amount must Karl include in his gross income
Answer:
$30,360
Explanation:
Calculation for What amount must Karl include in his gross income
Gross income amount= [($30,000 + ($2,400 × .15))]
Gross income amount=$30,000 + $360
Gross income amount= $30,360
Therefore the amount that Karl must include in his gross income is $30,360
A company's ledger is: Group of answer choices A record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item. A journal in which transactions are first recorded. A collection of documents that describe transactions and events entering the accounting process. A list of all accounts a company uses with an assigned identification number. A record containing all accounts and their balances used by the company.
Answer:
A record containing all accounts and their balances used by the company.
Explanation:
A company's ledger is a record containing increases and decreases in a specific asset, liability, equity, revenue, or expense item.
When a transaction occurs, it is initially recorded in a journal, which serves as the first entry point for documenting transactions. The journal provides a chronological order of transactions. These transactions are then transferred to the ledger, where they are organized by account.
The ledger consists of individual accounts, each assigned an identification number. These accounts represent different categories, such as cash, accounts payable, inventory, sales revenue, etc. Every transaction affecting these accounts is recorded in the ledger, indicating the increases or decreases in their respective balances.
Overall, the ledger provides a comprehensive snapshot of the company's financial position and helps in generating financial statements. It allows businesses to monitor their financial health, track transactions accurately, and prepare financial reports for analysis and decision-making.
Hence the correct option is (a).
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Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of 2018. The inventory as reported at the end of 2017 using LIFO would have been $70,000 higher using FIFO. Retained earnings at the end of 2017 was reported as $880,000 (reflecting the LIFO method). The tax rate is 34%.
Required:
1. Calculate the balance in retained earnings at the time of the change (beginning of 2013) as it would have been reported if FIFO had been used in prior years.
2. Prepare the journal entry at the beginning of 2013 to record the change in accounting principle. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
Answer:
1. Adjusted net income = Ending inventory higher by amount * (1-Tax rate) = $70,000*(1-34%) = $70,000 * 66% = $46,200
Details Amount
Beginning retained earnings for the year 2017 $880,000
Add: Adjusted net income $46,200
Beginning adjusted retained earnings for year 2017 $926,200
2. Tax payable = Inventory * Tax rate = $70,000*34% = $23,800
Date Account Titles and Explanation Debit Credit
Inventory $70,000
Retained earnings $46,200
Tax payable $23,800
(To record adjustment of ending inventory)
Concord Company sells televisions at an average price of $887 and also offers to each customer a separate 3-year warranty contract for $93 that requires the company to perform periodic services and to replace defective parts. During 2020, the company sold 318 televisions and 238 warranty contracts for cash. It estimates the 3-year warranty costs as $22 for parts and $42 for labor, and accounts for warranties separately. Assume sales occurred on December 31, 2020, and straight-line recognition of warranty revenues occurs.
Required:
a. Record any necessary journal entries in 2014:
b. What liability relative to these transactions would appear on the December 31, 2014, balance sheet and how would it be classified? In 2015, Dos Passos Company incurred actual costs relative to 2014 television warranty sales of $2,000 for parts and $4,000 for labor.
c. Record any necessary journal entries in 2015 relative to 2014 television warranties.
d. What amounts relative to the 2014 television warranties would appear on the December 31, 2015, balance sheet and how would they classified?
Answer:
A. Dr Cash 304,200
Cr Sales Revenue 282,066
Cr Unearned Warranty Revenue 22,134
Explanation:
A. Preparation of entry to Record any necessary journal entries in 2014:
Dr Cash 304,200
,(282,066+22,134)
Cr Sales Revenue 282,066
($887*318)
Cr Unearned Warranty Revenue (238*93)22,134
Dale and Dana work at a self-service gas station and convenience store. Dale opens up every day, and Dana arrives later to help stock the store. They are both paid the current market wage of $9.50 per hour. But Dale feels he should be paid much more because the revenue generated from the gas pumps he turns on every morning is much higher than the revenue generated by the items that Dana stocks.
Required:
Assess this argument.
Answer is given below :
Explanation:
Dale argument is wrong, because the business owner hires workers for up to $9.50 per hour, the last person's marginal product. This implies that all other hired workers will have a marginal product value of more than 9.50 per hour, although wages equal to 50 9.50 will be paid. Therefore any employee who opens a station, be it Dala or Dana, has more value than a marginal product than any other person who reports for work.Johnson Company calculates its allowance for uncollectible accounts as 10% of its ending balance in gross accounts receivable. The allowance for uncollectible acccounts had a credit balance of $10,000 at the beginning of 2021. No previously written-off accounts receivable were reinstated during 2021. At 12/31/2021, gross accounts receivable totaled $166,700, and prior to recording the adjusting entry to recognize bad debts expense for 2021, the allowance for uncollectible accounts had a debit balance of 18,300.
Required:
1. What was the balance in gross accounts receivable as of 12/31/2020?
2. What journal entry should Johnson record to recognize bad debt expense for 2021?
3. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021. Determine the amount of accounts receivable written off during 2021
4. If Johnson instead used the direct write-off method, what would bad debt expense be for 2021?
Required 3 Required 1 Required 2 Required 4
What was the balance in gross accounts receivable as of 12/31/2020? Balance in gross accounts receivable
Record entry Clear entry View general journal .. Assume Johnson made no other adjustment of the allowance for uncollectible accounts during 2021.
Determine the amount of accounts receivable written off during 2021. Amount of accounts receivable written off Required 2 Required 4 If Johnson instead used the direct write-off method, what would bad debt expense be for 20211? Bad debt expense for 2021
Answer:
1. $100,000
2. 2021
Dr Bad debt expense $34,970
Cr Allowance for uncollectible account $34,970
3. $28,300
4. $28,300
Explanation:
1. Calculation for What was the balance in gross accounts receivable as of 12/31/2020
Balance in gross accounts receivable as of 12/31/2020=$10,000/ 10%
Balance in gross accounts receivable as of 12/31/2020 = $100,000
Therefore the balance in gross accounts receivable as of 12/31/2020 will be $100,000
2. Preparation of the journal entry that Johnson should record to recognize bad debt expense for 2021
2021
Dr Bad debt expense $34,970
Cr Allowance for uncollectible account $34,970
(10%*$166,700 + $18,300)
3. Calculation to Determine the amount of accounts receivable written off during 2021
2021 Accounts receivable written off = $10,000 - (-$18,300)
2021 Accounts receivable written off= $28,300
Therefore the amount of accounts receivable written off during 2021 will be $28,300
4. In a situation where Johnson used the direct write-off method, what would bad debt expense be for 2021 will be $28,300 calculated as : [$10,000 - (-$18,300) ]
=$28,300
Therefore the Bad debt expense under direct write off method will be $28,300
Developing the cash flow for each alternative in a study is a pivotal, and usually the most difficult, step in the engineering economic analysis procedure. An integrated approach for developing cash flows includes three major components:
a. A work breakdown structure (WBS) definition of the project.
b. A cost and revenue structure that identifies all the cost and revenue elements involved in the study
c. Estimating techniques (models).
Required:
Discuss the concept of equivalence - if two cash flows (or a series of cash flows) are equivalent for a stated interest rate, and under what circumstances you would be willing to trade one for the other.
Answer:
The concept of equivalence, also known as economic equivalence, describes the reduction of a series of cash inflows (benefits) and cash outflows (costs) to a single point in time, using a single interest rate, which enables the cash flows to be compared or equated. This implies that while the amounts and timing of the cash flows (both inflows and outflows) may differ, an appropriate interest rate, factoring in the time value of money, will cause one set to be equal to the other. Therefore, to establish economic equivalence, series of cash flows that occur at different points in time must be equalized using a single interest rate through present value calculations.
Explanation:
The concept of equivalence describes a combination of a single interest rate and the idea of the time value of money. This combination helps to determine the different amounts of money at different points in time that are equal in economic value, such that a person would not hesitate to trade one for the other.
For example, if the interest rate is 10% in Year 1 and in Year 2 and you are to be paid $1,000 in Year 1, it will not make any difference to you if you are paid $1,100 in Year 2. This is because, given the prevailing interest rate of 10%, the value you receive in Year 1 and Year 2 are equivalent.
Theories aim to _____________.
Select the correct answer below:
a) create applied (or empirical) representations
b) take a complex, real-world issue and simplify it down to its essentials
c) implement a method to view the world through the same lens as other disciplines, such as anthropology and biology
d) build a physical model that sits on a tabletop
Answer:
B) take a complex, real-world issue and simplify it down to its essentials
Explanation:
Theory can be regarded as contemplative as well as rational type of abstract, it is a generalizing thinking regarding a phenomenon and it could be the results of such thinking. The theory is associated with process such as observational study as well as research. It should be noted that Theories aim to take a complex, real-world issue and simplify it down to its essentials