Answer:
$9,156
Explanation:
Income = (Sales-expenses) + $10,000
Income = ($1,670,200 - $1,536,600) + $10,000
Total income = $143,600
Tax = Income * Tax Rate = $143,600 * 0.21 = $30,156
Now, total taxes payable is $30,156,but they estimated that payment to be $21,000, So company C has reserved $21,000 for future tax payments
So, Net deferred tax payable = $30,156 - $21,000 = $9,156. Therefore, ending balance of taxes payable on the 20X1 balance sheet is $9,156.
Manufacturing cost data for Copa Company are presented below. Indicate the missing amount for each letter (a) through (i).
Case A Case B Case C
Direct materials used $(a) $73,230 $133,500
Direct labor 59,750 90,370 (g)
Manufacturing overhead 50,000 84,670 104,900
Total manufacturing costs 198,600 (d) 257,500
Work in process 1/1/20 (b) 19,770 (h)
Total cost of work in process 224,960 (e) 339,300
Work in process 12/31/20 (c) 16,940 72,760
Cost of goods manufactured 189,300 (f) (i)
Answer:
(a) $88,850
(b) $26,360
(c) $35,660
(d) $248,270
(e) $268,040
(f) $251,100
(g) $19,100
(h) $81,800
(i) $412,060
Explanation:
$59,750 + $50,000 - $198,600 = $88,850
$198,600 - $224,960 = $26,360
$224,960 - $189,300 = $35,660
$73,230 + $90,370 + $84,670 = $248,270
$248,270 + $19,770 = $268,040
$268,040 - $16,940 = $251,100
$133,500 + $104,900 - $257,500 = $19,100
$257,500 - $339,300 = $81,800
$339,300 + $72,760 = $412,060
The cost of goods manufactured calculates the total production cost of manufactured goods in a particular period.
Manufacturing cost data for Copa Company
(A)Direct materials used= $59,750 + $50,000 - $198,600 = $88,850
(B)Work in process 1/1/20 =$198,600 - $224,960 = $26,360
(C)Work in process 12/31/20=$224,960 - $189,300 = $35,660
(D)Total manufacturing costs=$73,230 + $90,370 + $84,670 = $248,270
(E)Total cost of work in process =$248,270 + $19,770 = $268,040
(F)Cost of goods manufactured=$268,040 - $16,940 = $251,100
(G)Direct labor=$133,500 + $104,900 - $257,500 = $19,100
(H)Work in process 1/1/20 =$257,500 - $339,300 = $81,800
(I)Cost of goods manufactured=$339,300 + $72,760 = $412,060
Learn more about direct labor, refer to the link:
https://brainly.com/question/15860064
Wings Co. budgeted $555,600 manufacturing direct wages, 2,315 direct labor hours, and had the following manufacturing overhead:
Overhead Cost Pool - Budgeted O/H $ - Budgeted Level for Cost Driver - O/H Cost Driver
Materials Handling $160,000 3,200 lbs. Material Weight
Machine Setup 13,200 390 S/U�s # of S/Us
Machine Repair 1,380 30,000 Mach. Hrs Machine Hrs.
Inspections 10,560 160 Inspections # of Inspections
Requirements for Job #971 which included 4 Units of Production:
D/L Hours = 20 Hours
D/Mat�ls = 130 lbs.
Machine S/U = 30 Set-ups
Machine Hrs. = 15,000 Machine Hours
Inspections = 15 Inspections.
Using ABC, the materials handling overhead cost assigned to Job #971 is:______.
a. $2,300.
b. $990.
c. $6,500.
d. $690.
e. $1,020.
Answer:
c. $6,500.
Explanation:
The computation of the material cost assigned to Job 971 is as follows:
= Budgeted Overhead × Material Weight for Job 971 ÷ Total Weight
= $160,000 × 130 ÷ 3200
=$6,500
Hence, the material cost assigned to Job 971 is $6,500
Therefore the correct option is c.
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 6.5% service charge for sales on its credit card and credits the bank account of Mayfair immediately when credit card receipts are deposited. Mayfair deposits the Zisa credit card receipts each business day. When customers use Access credit cards, Mayfair accumulates the receipts for several days before submitting them to Access for payment. Access deducts a 5.5% service charge and usually pays within one week of being billed. Mayfair completes the following transactions in June. (The terms of all credit sales are 2/15, n/30, and all sales are recorded at the gross price.)
4 Sold $600 of merchandise (that had cost $300) on credit to Natara Morris.
5 Sold $9,400 of merchandise (that had cost $4,700) to customers who used their Zisa cards.
6 Sold $5,674 of merchandise (that had cost $2,837) to customers who used their Access cards.
8 Sold $4,250 of merchandise (that had cost $2,125) to customers who used their Access cards.
10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment.
13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $473 balance in McKee’s account stemmed from a credit sale in October of last year.
17 Received the amount due from Access.
18 Received Morris’s check in full payment for the purchase of June 4.
Required:
Prepare journal entries to record the preceding transactions and events.
Answer:
4-Jun
Dr Accounts receivable—N. Morris 600
Cr Sales 600
4-Jun
Dr Cost of goods sold 300
Cr Merchandise inventory 300
5-Jun
Dr Cash 8,883
Dr Credit card expense 517
Cr Sales 9,400
5-Jun
Dr Cost of goods sold 4,700
Cr Merchandise inventory 4,700
6-Jun
Dr Accounts receivable—Access 5,560
Dr Credit card expense 113.5
Cr Sales $5,674
6-Jun
Dr Cost of goods sold 2,837
Cr Merchandise inventory 2,837
8-Jun
Dr Accounts receivable—Access 4,165
Dr Credit card expense 85
Cr Sales $4,250
8-Jun
Dr Cost of goods sold $2,125
Cr Merchandise inventory $2,125
10-Jun No journal entry required
13-Jun
Dr Allowance for doubtful accounts 473
Cr Accounts receivable—A. McKee 473
17-Jun
Dr Cash 9,725
Cr Accounts receivable—Access 9,725
18-Jun
Dr Cash 588
Dr Sales discounts 12
Cr Accounts receivable—N. Morris 600
Explanation:
Preparation of the journal entries to record the preceding transactions and events.
4-Jun
DrAccounts receivable—N. Morris 600
Cr Sales 600
4-Jun
Dr Cost of goods sold 300
Cr Merchandise inventory 300
(Being to record Sales on credit)
5-Jun
Dr Cash 8,883
(9,400-517)
Dr Credit card expense 517
(5.5%*9,400)
Cr Sales 9,400
5-Jun
Dr Cost of goods sold 4,700
Cr Merchandise inventory 4,700
6-Jun
Dr Accounts receivable—Access 5,560.5
($5,674-113.5)
Dr Credit card expense 113.5
($5,674*2%)
Cr Sales $5,674
6-Jun
Dr Cost of goods sold 2,837
Cr Merchandise inventory 2,837
8-Jun
Dr Accounts receivable—Access 4,165
($4,250-$85)
Dr Credit card expense 85
(2%*$4,250)
Cr Sales $4,250
8-Jun
Dr Cost of goods sold $2,125
Cr Merchandise inventory $2,125
10-Jun No journal entry required
13-Jun
Dr Allowance for doubtful accounts 473
Cr Accounts receivable—A. McKee 473
17-Jun
Dr Cash 9,725
Cr Accounts receivable—Access 9,725
(5,560+4,165)
18-Jun
Dr Cash 588
(600-12)
Dr Sales discounts 12
(2%*600)
Cr Accounts receivable—N. Morris 600
Businesses, individuals, and governments often need to raise capital, while others have surplus funds. In a well-functioning economy, capital flows efficiently from those with surplus capital to those who need it. Transfers can take place in 3 ways: direct transfers without going through any type of financial institution, indirect transfers through investment banks that underwrite the securities, and indirect transfers through financial.
a. True
b. False
Answer:
The correct answer is the option A: True.
Explanation:
To begin with, according to the microeconomics theory regarding the basic model of the economy of a country in where the three major characters are the government, the companies and the families, the way that the surplus capital will go from one to the other is determine by the state of the economy itself, meaning that with everything being in perfect state, the the ones who need the capital will obtain it from the other through the use of intermediaries like the bank or also through a direct transsaction accorded with the owner of the capital as well as and indirect transfer using the financial sector.
Betty Crusher is a licensed CPA. During the first month of operations of her business (a sole proprietorship), the following events and transactions occurred.
April 2 Invested $27,750 cash and equipment valued at $12,920 in the business.
2 Hired an administrative assistant at a salary of $305 per week payable monthly.
3 Purchased supplies on account $673. (Debit an asset account.)
7 Paid office rent of $574 for the month.
11 Completed a tax assignment and billed client $1,188 for services rendered. (Use Service Revenue account.)
12 Received $3,207 advance on a management consulting engagement.
17 Received cash of $2,354 for services completed for Ferengi Co.
21 Paid insurance expense $105. 30 Paid administrative assistant $1,220 for the month.
30 A count of supplies indicated that $113 of supplies had been used.
30 Purchased a new computer for $7,092 with personal funds. (The computer will be used exclusively for business purposes.)
Required:
Journalize the transactions in the general journal.
Answer:
Date Account Details Debit Credit
April 2 Cash $ 27,750
Equipment $12,290
Owner's Capital $40,670
Date Account Details Debit Credit
April 2 Entry not required till payment
Date Account Details Debit Credit
April 3 Supplies $673
Accounts Payable $673
Date Account Details Debit Credit
April 7 Rent expense $574
Cash $574
Date Account Details Debit Credit
April 11 Accounts Receivables $1,188
Service Revenue $1,188
Date Account Details Debit Credit
April 12 Cash $3,207
Unearned revenue $3,207
Date Account Details Debit Credit
April 17 Cash $2,354
Service Revenue $2,354
Date Account Details Debit Credit
April 21 Insurance expense $105
Cash $105
Date Account Details Debit Credit
April 30 Salaries expense $1,220
Cash $1,220
Date Account Details Debit Credit
April 30 Supplies expense $113
Supplies $113
Date Account Details Debit Credit
April 30 Equipment $7,092
Owner's Capital $7,092
g A department store chain has 15,100 shares of common stock outstanding at a price per share of $75 and a rate of return of 14%. The company also has 400 bonds outstanding, with a par value of $1,500 per bond. The pretax cost of debt is 6.5% and the bonds sell for 98.2% of par. What is the firm's WACC if the tax rate is 29%
Answer:
10.79%
Explanation:
WACC = Pretax cost of debt*(1 - tax rate)*[(Number of bonds*Par value *selling price) / (Number of bonds*Par value*Selling price*Number of shares *Price per share)] + Rate of return*[(Number of shares*Price per share) / (Number of bonds*Par value*Selling price + Number of shares*Price per share)]
WACC = 0.065 *(1 - 0.29) * [(400*$1,500*98.2%) / (400*$1,500*98.2% + 15,100*$75)] + 0.14 x [(15,100*$75) / (400*$1,500*98.2% + 15,100*$ 75)]
WACC = 4.615%*[$ 589,200 / ($589,200 + $1,132,500)] + 0.14*[$1,132,500 / ($589,200 + $1,132,500)]
WACC= 4.615%*$589,200 / $1,721,700 + 0.14*$ 1,132,500/$ 1,721,700
WACC = 4.615%*0.342219899 + 14%*0.657780101
WACC = 1.579344834% + 9.208921415%
WACC = 10.79%
Many small firms seek to establish a particular niche in the market, realizing that they cannot afford to operate on a larger scale without exposing themselves to considerable risk of retaliation from larger companies. When a number of small businesses are operating in this manner, they are forcing the larger businesses to recognize and account for their influence on the market. In this way, small businesses are primarily Question 49 options:
Answer:
fostering competition
Explanation:
By deciding to focus on a particular niche these smaller firms in effect foster competitions among other larger firms.
For example, if in a market for shoes, a small firm A, that is newly established decides to focus only on selling shoes for children after recognizing they cannot match up with an existing larger company B that sells a variety of shoes (both children and adult shoes). At a point in time when a number of small businesses are operating in this manner, the larger companies would recognize and account for their influence on the market.
Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 2 during the period for direct materials is:________.
A. Work in Process--Department 2 55,000
Materials 55,000
B. Work in Process--Department 2 150,000
Materials 150,000
C. Materials 55,000
Work in Process--Department 2 55,000
D. Work in Process--Department 2 100,000
Materials 100,000
Answer:
A. Work in Process--Department 2 55,000
Explanation:
The journal entry is shown below:
Work in Process - Department 2 Dr $55,000
To Materials $55,000
(Being the recording of the flow of cost for the direct material is done)
Here the work in process would be debited as it increased the asset and credited the material as it decreased the asset
Therefore the first option is correct
is adversity the same thing as marketing ?
Answer:
(I think you meant advertising) no, advertising would be like a commercial, billboard, rdio ad. marketing is coming up with the ad (like people who write jingles)
Explanation:
A review of Parson Corporation's accounting records found that at a volume of 90,000 units, the variable and fixed cost per unit amounted to $8 and $4, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 85,000 units
Answer:
Total cost= $1,040,000
Explanation:
For 90,000 units:
Unitary variable cost= $8
Unitary fixed cost= $4
First, we need to calculate the total fixed cost:
Total fixed cost= 4*90,000= $360,000
Now, we can determine the total cost for 85,000 units:
Total cost= 85,000*8 + 360,000
Total cost= $1,040,000
Marge owns land and a building (held for investment) with an adjusted basis of $75,000 and a fair market value of $250,000. The property is subject to a mortgage of $400,000. Because Marge is in arrears on the mortgage payments, the creditor is willing to accept the property in return for canceling the amount of the mortgage.
a. How can the adjusted basis of the property be less than the amount of the mortgage?
b. If the creditor's offer is accepted, what are the effects on the amount realized, the adjusted basis, and the realized gain or loss for Marge?
c. Does it matter in (b) if the mortgage is recourse or nonrecourse?
Answer:
A. The amount deducted for Depreciation may be higher than the amortized amount of the mortgage principal.
Decrease in the value of the property after they granted the mortgage
Bi $400,000
ii. $75,000
iii. $325,000
C.No
Explanation:
a. The adjusted basis of the property can be tend to be lesser than the amount of the mortgage due to the fact that in the beginning of an asset life the amount that was deducted for Depreciation may be more higher than the amortized amount of the mortgage principal .
Secondly the adjusted basis of the property can be tend to be lesser than the amount of the mortgage when their is Decrease in the value of the property after they granted the mortgage .
Lastly the adjusted basis of the property can be tend to be lesser than the amount of the mortgage when the fair market value of Property are been given instead of the Adjusted basis of the property.
b. Calculation for the effects on the amount realized, the adjusted basis, and the realized gain or loss for
i. Based on the information given the amount that was realized will be the amount of $400,000
ii. Based on the information given the Adjusted basis will be the amount of $75,000
iii. Realized gain=$400,000 − $75,000
Realized gain= $325,000
c.No it don't not matter if the mortgage is recourse or nonrecourse since the amount that was realized was the amount of $400,000 and
to justify the nonrecourse mortgage is that the taxpayer has already enjoy some benefit when the mortgage was acquired due to the increase in Adjusted basis of the property.
What is the difference between a programmed and a non-programmed decision?
When should you use capitalization?
Answer:
you should use capitalization at the beginning of a sentence. you should also use capitalization for pronouns. names of things for example cities and states people names etc
Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended January 30, 2016, are available in the Connect. This material also is available under the Investor
1. What amounts did Target report for the following items for the year ended January 30, 2016?
b) Income from current operations
c) Net income or net loss
d) Total assets
e) Total equity
2) What was Target’s basic earnings per share for the year ended January 30, 2016?
Why do you think Target has chosen to have its fiscal year end on January 30, as opposed to December 31?
3) Regarding Target’s audit report:
Who is Target’s auditor?
Did Target receive a "clean" (unmodified) audit opinion?
Answer:
1. What amounts did Target report for the following items for the year ended January 30, 2016?
b) Income from current operations
$2,669 million
c) Net income or net loss
$2,737 million
d) Total assets
$37,431 million
e) Total equity
$10,953
2) What was Target’s basic earnings per share for the year ended January 30, 2016?
$4.74 per share
Why do you think Target has chosen to have its fiscal year end on January 30, as opposed to December 31?
I guess that Christmas Holiday season is very important for them and a large percentage of their revenue is generated during November and December. It reports at the end of January to have time to consolidate its financial statements.
3) Regarding Target’s audit report:
Who is Target’s auditor?
Ernst & Young
Did Target receive a "clean" (unmodified) audit opinion?
yes, it did
Marketing and common sense
Suppose you have two friends who have the same underlying ability, took the same courses in college, and have the same GPA. One of them decides to go to a business school for an MBA, while the other one chooses to pursue a PhD in English literature. Given that the expected earnings of an MBA are much higher than the expected earnings of an English PhD, is one of your friends being irrational?
Answer:
Rational is based on the logical preference. Being irrational does not means that the choice is made based on monetary preference. It is more logical than monetary.
Explanation:
The two friends took same courses in college but after the completion of college degree one decides to go for MBA and other pursues PhD in English. The expected earnings of MBA are higher than PhD but one of friend who chooses the PhD has not considered the logical decision making based on money. He might have chose the PhD because he is more interested in becoming a professor rather than a business professional.
Common-size and trend percents for Rustynail Company's sales, cost of goods sold, and expenses follow. Common-Size Percents Trend Percents Current Yr 1 Yr Ago 2 Yrs Ago Current Yr 1 Yr Ago 2 Yrs Ago Sales 100.0 % 100.0 % 100.0 % 104.5 % 103.3 % 100.0 % Cost of goods sold 63.7 61.5 57.4 116.0 110.7 100.0 Total expenses 14.3 13.8 14.1 106.1 101.1 100.0 Determine the net income for the following years. Did the net income increase, decrease, or remain unchanged in this three-year period?
Answer:
Rustynail Company
1. The net income for the following years:
Common-Size Percents and Trend Percents
Current 1 Yr 2 Yrs Current 1 Yr 2 Yrs
Yr Ago Ago Yr Ago Ago
Sales 100.0 % 100.0 % 100.0 % 104.5 % 103.3 % 100.0 %
Cost of goods sold 63.7 61.5 57.4 116.0 110.7 100.0
Total expenses 14.3 13.8 14.1 106.1 101.1 100.0
Net Income 22.0 24.7 28.5 77.2 86.7 100.0
2. The net income decrease in this three-year period.
Explanation:
a) Data and Calculations:
Common-Size Percents and Trend Percents
Current 1 Yr 2 Yrs Current 1 Yr 2 Yrs
Yr Ago Ago Yr Ago Ago
Sales 100.0 % 100.0 % 100.0 % 104.5 % 103.3 % 100.0 %
Cost of goods sold 63.7 61.5 57.4 116.0 110.7 100.0
Total expenses 14.3 13.8 14.1 106.1 101.1 100.0
Net Income 22.0 24.7 28.5 77.2 86.7 100.0
b) The net incomes for the common-size percents are obtained by deducting the cost of goods sold and the total expenses from sales. The net incomes for the trend percents are obtained by stating the base year as 100% and then calculating the other years. This takes the form of taking the net income for the analysis year/base year's and then multiplying by 100.
A country has constant opportunity cost of production. If they devote all of their resources to the production of blankets they can produce a total of 284 per week. If they devote all of their resources to the production of t-shirts they can produce a total of 612 shirts per week. What is the opportunity cost of producing 1 blanket
Answer:
2.15 shirts
Explanation:
Opportunity cost or implicit is the cost of the next best option forgone when one alternative is chosen over other alternatives
By producing one more blanket, the country would be forgoing the opportunity to produce one more shirt.
opportunity cost of producing 1 blanket = 612 shirts / 284 = 2.15 shirts
Katherine Stein told her boss, "Dan, a number of our senior staff will be retiring within five years. We can't afford to have the combined expertise, skills, wisdom, and relationships of these retirees walk out the door without first discovering and sharing these intellectual resources. I recommend that we implement a(n) ______________ system to harness this intellect."
Answer: knowledge management
Explanation:
Based on the information given, knowledge management would be used to harness this intellect.
Knowledge management simply has to do with the creation, and management of information and knowledge for an organization so that the organization's objectives can be achieved.
In each of the following areas, give one example in which the government is involved as a producer, a regulator, or a purchaser of final goods and services distributed directly to individuals or used within government:______.
a. Education
b. Utilities
c. Transportation
d. Credit Markets
e. Insurance markets
f. Food
g. Housing
Answer:
a. Education
Producer = Provides public schools
Regulator = Government sets graduation requirements
Purchaser of goods = In awarding scholarships, the government is paying for school fees and buying education.
b. Utilities
Producer = Government provides water to residents
Regulator = Government regulates nuclear energy industry
Consumer = Government departments buy electricity for use.
c. Transportation
Producer = Government builds roads for transport
Regulator = The Federal Aviation Administration (FAA) regulates aviation transport.
Consumer = Private contractors transport military and are paid for it.
d. Credit Markets
Producer = Government provides low interest loans to farmers
Regulator = Fed mandates reserve requirements to Banks
Consumer = Fed buys bonds in open market operations.
e. Insurance markets
Producer = Government provides an unemployment scheme
Regulator = Laws governing the rejection of claims by insurer
Consumer = Government pays for Medicaid
f. Food
Producer = Department of Agriculture farms for experimentation purposes
Regulator = FDA requires that food in restaurants are cooked in certain sanitary conditions.
Consumer = Government pays for food stamps which allows people to get food.
g. Housing
Producer = Johnston Square Apartments built by State of Maryland for affordable housing.
Regulator = Housing codes by Counties
Consumer = Government subsidises rent for some people
If you deposit $5,000 4 years from today, how much can you withdraw 10 years from today if interest is 6 percent per year compounded annually?
Answer:
the future value is $7,093
Explanation:
The computation of the future value is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^number of years
= $5,000 × (1 + 0.06)^6
= $5,000 × 1.06^6
= $7,093
Hence, the future value is $7,093
National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by National on January
Answer:
The price of the bonds $483,841.97
Journal entry:
Dr cash $483,841.97
Dr discount on bonds payable $16,158.03
Cr bonds payable $500,000.00
Explanation:
Using a financial calculator, we determine the bond price by using the following inputs:
N=8(number of semiannual coupons in 4 years=4*2=8)
PMT=22500 (semiannual coupon=face value*coupon rate*6/12= $500,000*9%*6/12=$22,500)
I/Y=5(semiannual yield=10%%*6/12=5%)
FV=500000( the face value is $600,000)
CPT PV=$483,841.97
Bond discount=face value-bond price
Bond discount=$500,000-$483,841.97
Bond discount=$16,158.03
The double entries are to debit cash and discount on bonds payable with $483,841.97 and $16,158.03 respectively while bonds payable is credited with the face value of $500,000
Identifying type and normal balances of accounts Lo C4 For each of the following (1) identify the type of account as an asset, liability equity, revenue, or expense; (2) identify the normal balance of the account, and (3) select debit (Dr or credit (Cr) to identify the kind of entry that would increase the account balance.
Account Type of Account Normal Balance Increase (Dr. or C
a. Land
b. Cash
c. Legal Expense
d. Prepaid Insurance
e. Accounts Receivable
f. Dividends
g. License Fee Revenue
h. Uneaned Revenue
i. Fees Earned
j. Equipment
k. Notes Payable
l. Common Stock
Answer:
a. Land - Asset, Debit, Dr
b. Cash - Asset, Debit, Dr
c. Legal Expense - Expense, Debit, Dr
d. Prepaid Insurance - Asset, Debit, Dr
e. Accounts Receivable - Asset, Debit, Dr
f. Dividends - Equity, Credit, Cr
g. License Fee Revenue - Revenue, Credit, Cr
h. Uneaned Revenue - Liability, Credit, Cr
i. Fees Earned - Revenue, Credit, Cr
j. Equipment - Asset, Debit, Dr
k. Notes Payable - Liability, Credit, Cr
l. Common Stock - Equity, Credit, Cr
Explanation:
Assets, liabilities and equity are the elements of a balance sheet. These 3 elements form the accounting equation which is given as
Assets = Liabilities + Equity
Assets usually have a debit balance while equity and liabilities are usually credit balances. Expenses like assets usually have a debit balance while revenue usually has a credit balance.
A professor who teaches at a university is part of which type of career?
A. Education
B. Office administration
C. Management
D. Transportation
Answer:
A
Explanation:
Education
Answer:
a
Explanation:
Cost of Goods Sold Section, Multiple-Step Income Statement
Based on the information that follows, prepare the cost of goods sold section of a multiple-step income statement.
Merchandise Inventory, January 1, 20-- $37,000
Estimated Returns Inventory, January 1, 20-- 1,000
Purchases 102,000
Purchases Returns and Allowances 4,200
Purchases Discounts 2,040
Freight-In 800
Merchandise Inventory, December 31, 20-- 30,500
Estimated Returns Inventory, December 31, 20-- 1,500
Income Statement
For Year Ended December 31, 20--
Cost of goods sold:
$
$
$
$
$
$
$
Cost of goods sold $
Answer and Explanation:
The preparation of the cost of goods sold section of a multiple-step income statement is presented below:
Cost of goods section
Multiple-income statement
Opening inventory $37,000
Estimated return inventory $1,000
Purchase $102,000
Less purchase returns -$4,200
Less: Purchase discount -$2,040
Add: Freight in $800
Less: closing inventory -$30,500
Less: estimated return inventory -$1,500
Cost of goods sold $102,560
Dollar General sells convenience items such as light bulbs, laundry detergent, and milk at a lower price than a customer pays at a grocery store, but the company is still able to maintain satisfactory profit margins. Dollar General is an example of _______ in the convenience store industry.
Answer:
cost leadership
Explanation:
Here are the options to this question :
Group of answer choices
reengineering
cost leadership
production innovations
efficient labor
A cost leader sells at a lower price when compared to its competitors
Ben wants to do business in the Middle East where it is an accepted practice to give gifts to government officials. However, Ben may not be able to carry out his plans because he doesn't want to violate The Foreign Corrupt Practices Act (FCPA), which was enacted because Congress was concerned about _______.
Answer:
U.S. corporations' use of illegal payments and bribes in international business dealings
Explanation:
From the question, we are informed about Ben who wants to do business in the Middle East where it is an accepted practice to give gifts to government officials. However, In this case, Ben may not be able to carry out his plans because he doesn't want to violate The Foreign Corrupt Practices Act (FCPA), which was enacted because Congress was concerned about U.S. corporations' use of illegal payments and bribes in international business dealings.
The Foreign Corrupt Practices can be regarded as one the U.S law of 1977 act. This law is about prohibition of citizens of U.S as well as entities from giving bribes to officials of government of foreign countries in order to be a beneficiary of their business interests
The following transactions occurred during the month of June 2021 for the Stridewell Corporation. The company owns and operates a retail shoe store.Issued 100,000 shares of common stock in exchange for $500,000 cash.Purchased office equipment at a cost of $100,000. $40,000 was paid in cash and a note payable was signed for the balance owed.Purchased inventory on account at a cost of $200,000. The company uses the perpetual inventory system.Credit sales for the month totaled $280,000. The cost of the goods sold was $140,000.Paid $6,000 in rent on the store building for the month of June.Paid $3,000 to an insurance company for fire and liability insurance for a one-year period beginning June 1, 2021.Paid $120,000 on account for the merchandise purchased in 3.Collected $55,000 from customers on account.Paid shareholders a cash dividend of $5,000.Recorded depreciation expense of $2,000 for the month on the office equipment.Recorded the amount of prepaid insurance that expired for the month.
Answer:
Sew below
Explanation:
Sidwell
Debit Cash account $500,000
Credit Common stock $625,00
To record the issue of 100,000 shares for cash
Debit office equipment $100,000
Credit cash account $40,000
Credit notes payable $60,000
To record the purchase of office equipment
Debit inventory $200,000
Credit Accounts payable $200,000
To record the purchase of inventory
Debit Accounts receivables $280,000
Credit Sales revenue $280,000
To record the sales of goods on account
Debit Cost of goods sold $140,000
Credit Inventory $140,000
To record the cost of goods sold
Debit rent expenses $6,000
Credit cash account $6,000
To record the payment of rent for the month
Rasmussen Corporation expects to incur indirect overhead costs of $80,000 per month and direct manufacturing costs of $12 per unit. The expected production activity for the first four months of 2017 is as follows:
Required
a. Calculate a predetermined overhead rate based on the number of units of product expected to be made during the first four months of the year.
b. Allocate overhead costs to each month using the overhead rate computed in Requirement a.
c. Calculate the total cost per unit for each month using the overhead allocated in Requirement b.
Month Jan Feb March April
Number of Units 6,000 7,000 3,000 4,000
Expected Cost
Overhead ? ? ? ?
Direct Cost ? ? ? ?
Total Cost
Cost per unit ? ? ? ?
Answer:
Results are below.
Explanation:
First, we need to calculate the predetermined overhead rate for the period:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= (80,000*4) / 20,000
Predetermined manufacturing overhead rate= $16 per unit
Now, we can allocate overhead to each month:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
January= 6,000*16= $96,000
February= 7,000*16= $112,000
March= 3,000*16= $48,000
April= 4,000*16= $64,000
The total unitary manufacturing costs are constant:
Total unitary manufacturing cost= 12 + 16
Total unitary manufacturing cost= $28
The following selected accounts and account balances were taken from the records of Nowell Company. Except as otherwise indicated, all balances are as of December 31, Year 2, before the closing entries were recorded.
Consulting revenue $10,100
Cash 7,600
Cash received from common stock issued during 2017 3,400
Travel expense 600
Dividends 1,300
Cash flow from investing activities 2,500
Rent expense 1,900
Payment to reduce debt principal 21,600
Retained earnings, January 1, 2018 14,300
Salary expense 3,300
Cash flow from operating activities 2,050
Common stock, December 31, 2018 11,800
Other operating expenses 1,700
1. Prepare the income statement Nowell would include in its 2018 annual report.
2. Identify the accounts that should be closed to the Retained Earnings account.
3. Determine the Retained Earnings account balance at December 31, 2018.
4. Which of the following statement(s) is true?
a. net income does not include revenue of the current year.
b. retained earnings does not include current year net income, but only the balance from previous years.
c. retained earnings not only includes current year net income, but also the balance from previous years and reductions for dividends.
d. net income only includes revenues and expenses for the current year.
Solution :
a). Income Statement
For the year ended December 31, 2018
Revenues
Consulting revenue $ 10,100
Total revenue $ 10,100
Expenses
Travel expense $ 600
Rent expense $ 1900
Salary expense $ 3300
Some operating expenses $ 1700
Total expenses $ 7500
Net Income $ 2600
b). Accounts that should be closed to the Reason
retained earnings account.
Consulting revenue
The Supplies expense All the income and the expenses
Travel expenses accounts & the dividends account
Dividends are closed to the retained earning
Rent expense account.
Salary expense
Other operating expense
c). The retained earnings account balance at Dec 31, year 2018 = balance at the beginning + net income - dividends
= 14,300 + 2,600 - 1,300
= $ 15,600
d). Statements which are true Reasons
The retained earnings includes As evident from formula for
the net income of the current year. It also the retained earnings given,
includes the balances of the previous year the retained earning balances
and the reduction for dividends. has adjustment for all these.
Net income that includes the revenues and Net income is derived from
the expenses for the current year. income statement that deals
with the income and the
expenses for the current year
only.