Answer:
the ending work in process inventory is $115,220
Explanation:
The computation of the cost of the company ending work in process inventory is as follows:
Material A introduced at the starting = $12.5
Conversion Cost = $6.6 × 60% = $3.96
Total cost is
= $12.5 + $3.96
= $16.64
Now
WIP ending inventory is
= $16.64 × 7,000 units
= $115,220
Hence, the ending work in process inventory is $115,220
The cost of the company's ending work-in-process inventory is: $115,220.
First step is top calculate the conversion cost
Conversion Cost = $6.6 × 60%
Conversion cost= $3.96
Second step is to calculate the Total cost
Total cost= $12.5 + $3.96
Total cost= $16.64
Third step is to calculate the ending work-in-process inventory
Ending work-in-process inventory= $16.64 × 7,000 units
Ending work-in-process inventory= $115,220
Inconclusion the cost of the company's ending work-in-process inventory is: $115,220.
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Walker Manufacturing Company reported the following materials data for the month ending June 30:
Materials purchased $776,400
Materials inventory, June 1 219,000
Materials inventory, June 30 174,800
Determine the cost of direct materials used in production by Walker during the month ended June 30.
Answer:
the cost of direct material used is $820,600
Explanation:
The computation of the cost of direct material used is shown below:
= Opening inventory + material purchased - ending inventory
= $219,000 + $776,400 - $174,800
= $820,600
Hence, the cost of direct material used is $820,600
It could come by applying the above formula
An insurance company accepts an obligation to pay 10,000 at the end of each year for 2 years. The insurance company purchases a combination of the following two bonds at a total cost of X in order to exactly match its obligation: 1-year 4% annual coupon bond with a yield rate of 5% 2-year 6% annual coupon bond with a yield rate of 5% Calculate X.
Answer:
$18,594.10
Explanation:
Insurance company has to pay $10,000 for two year with rate of 5% since market rate remain same in both the bond.
X = PV (PMT, N, I/Y)
X = PV(10000, 2, 5)
X = 18594.1043
X = $18,594.10
30) The theme dominating global financial markets today is the complexity of risks associated with financial globalization. List and explain examples of the complexity of risks affecting the leading and managing of multinational firms in the rapidly moving marketplace.
Answer and Explanation:
The following are the examples:
1. Effect on the big deficit or the public debt crisis: It involves the present eurozone crisis, in this the rate of interest and the exchange rate would be effected
2. The monetary system i.e. international would be under scrutiny. As if there is an increase in the renminbi of chinese so the outlook of the would be varied on the currencies i.e. reserved, currency exchange, etc
3. Many of the countries would continue the balance of payment that represent the country would import more goods, services as compared with the exports that would become dangereous
4. The ownership, the framework of the government would be varied over the globe
Listed below are three items. Required: Classify each of the items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These: Revenue Expense Other Changes to Stockholders' Equity None of These Deferred Revenue Supplies Expense Issuance of Stock
Answer:
Classification of items as Revenue, Expense, Other Changes to Stockholders' Equity (other than revenue or expense), or None of These:
1. Deferred Revenue = Revenue
2. Supplies Expense = Expense
3. Issuance of Stock = Changes to Stockholders' Equity
Explanation:
Revenue represents the gross income that an entity receives from the sale of goods and services to customers. Revenue is therefore classified as either Sales Revenue or Service Revenue. It is an important item in the computation of the net income of the entity at the end of a financial period.
Expense represents the gross costs incurred by an entity for the sale of goods and services to its customers. It is usually deducted from the Revenue to obtain the net income.
Changes to Stockholders' Equity occur from revenues and expenses. They also occur from other business transactions like the issuance of stock to stockholders.
A.P. Hill Corporation uses a process-costing system. Products are manufactured in a series of three departments. The following data relate to Department Two for the month of February: Beginning work-in-process (70% complete) 10,000 units Goods started in production 80,000 units Ending work-in-process (60% complete) 5,000 units The beginning work-in-process was valued at $66,000, consisting of $20,000 of transferred-in costs, $30,000 of materials costs, and $16,000 of conversion costs. Materials are added at the beginning of the process; conversion costs are added evenly throughout the process. Costs added to production during February were Transferred-in $16,000 Materials used 88,000 Conversion costs 50,000 Question Assume that the company uses the first-in, first-out (FIFO) method of inventory valuation. Under FIFO, how much conversion cost did A.P. Hill transfer out of Department Two during February
Answer:
$64,360
Explanation:
Calculation for how much conversion cost did A.P. Hill transfer out of Department Two during February
First step is to calculate FIFO EUP for conversion
under the FIFO method
Beginning WIP 3,000
(10,000 units × 30%)
Started and completed 75,000
(80,000units-5,000 units=75,000 units)
(75,000 units × 100% )
Ending WIP 3,000
(5,000 units × 60% )
FIFO EUP for conversion 81,000
(3,000+75,000+3,000)
Now let calculate the conversion cost
Conversion cost =$16,000 + [3,000 Beginning WIP +75,000 Started and completed*($50,000/81,000)]
Conversion cost =[$16,000 + (78,000 × $.62)]
Conversion cost=[$16,000 + $48,360
conversion cost=$64,360
Therefore how much conversion cost did A.P. Hill transfer out of Department Two during February will be $64,360
Webber Technologies is an emerging manufacturer of 3.5 inch diagonal touch screens for mobile communication devices/media players. 2011 industry sales were reported at 17.50 million units. This number represents an 17.7 % increase over 2010 industry sales. Webber Technologies had a 2010 market share of 5.9 %, compared with a 2011 market share of 4.2%. What was the change in unit sales for Webber Technologies, from 2010 to 2011, attributable to the change in industry sales
Answer:
Industry Sales (2011) = 17,500,000
Industry Sales (2010) = Sales of 2011/1+growth = 17,500,000/1+17.7% = 17,500,000/1.177 = $14868309.26083263 = $14,868,309.26
Company Sales (2011) = 17,500,000 * 4.2% = $735,000
Company Sales (2010) = 14,868,309.26 * 5.9% = $877,230.25
Change in units = Company sales in 2011 - Company Sales in 2010 = $735,000 - $877,230.25 = $142,230.25
Change due to change in Industry growth = Company Sales in 2010 * 17.7% = $877,230.25 * 17.7% = 155,269.75
So, there is net increase of 155,269.75 units of sales due to industry growth.
GoodStuff, Inc. is considering investing in Project Awesome. The Project costs $120,000 and is expected to generate $64,000 in year one, $67,000 in year two, $56,000 in year three, and $45,000 in year four. GoodStuff, Inc.'s required rate of return for the project is 10%. The internal rate of return for the Project is
Answer:
35.27%
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
IRR can be calculated with a financial calculator
Cash flow in year 0 = -$120,000
Cash flow in year 1 = $64,000
Cash flow in year 2 = $67,000
Cash flow in year 3 = $56,000
Cash flow in year 4 = $45,000
IRR = 35.27%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
a. On April 1, the company retained an attorney for a flat monthly fee of $3,500. Payment for April legal services was made by the company on May 12.
b. A $324,000 note payable requires 9.0% annual interest, or $2,430, to be paid at the 20th day of each month. The interest was last paid on April 20 and the next payment is due on May 20. As of April 30, $810 of interest expense has accrued.
c. Total weekly salaries expense for all employees is $14,000. This amount is paid at the end of the day on Friday of each five-day workweek. April 30 falls on a Tuesday, which means that the employees had worked two days since the last payday. The next payday is May 3.
Required:
The above three separate situations require adjusting journal entries to prepare financial statements as of April 30. For each situation, present both the April 30 adjusting entry and the subsequent entry during May to record the payment of the accrued expenses.
Answer:
Journal Entries for April and May
a. April 30:
Debit Legal Fee Expense $3,500
Credit Legal Fee Payable $3,500
To record the legal fee expense for April.
May 12:
Debit Legal Fee Payable $3,500
Credit Cash $3,500
To record the payment of April legal fee.
b. April 30:
Debit Interest Expense $2,430
Credit Cash $1,620
Credit Interest Expense Payable $810
To record accrued interest expense
May 20:
Debit Interest Expense Payable $810
Credit Cash $810
To record the payment of accrued interest.
c. April 30:
Debit Salary Expense $5,600
Credit Salary Expense Payable $5,600
To record the salary expense for 2 days accrued.
May 3:
Debit Salary Expense Payable $5,600
Debit Salary Expense $8,400
Credit Cash $14,000
To record the payment of salary for the week.
Explanation:
We have used the journal entries to adjust accrued expenses and also to record the actual payment when they occur. Journal entries help to record transactions as they occur and to make adjustments at the end of the accounting period so that accruals, prepayments, deferred revenue, and depreciation expense are properly recorded when they occur and not when payment is made.
Windswept, Inc. 2016 and 2017 Balance Sheets ($ in millions) 2016 2017 2016 2017 Cash $ 260 $ 280 Accounts payable $ 1,510 $ 1,772 Accounts rec. 1,070 970 Long-term debt 1,050 1,238 Inventory 1,740 1,640 Common stock 3,320 3,010 Total $ 3,070 $ 2,890 Retained earnings 630 880 Net fixed assets 3,440 4,010 Total assets $ 6,510 $ 6,900 Total liab. & equity $ 6,510 $ 6,900 Windswept, Inc., has 530 million shares of stock outstanding. Its price–earnings ratio for 2017 is 24. What is the market price per share of stock?
Answer:
$74,16
Explanation:
Note : I have attached the full question as images below !
Price Earning ratio = Price per share ÷ Earnings per share
= $24
Where,
Earnings per share = Earnings attributable to Common Stock holders ÷ Weighted Average Number of Common Stock Outstanding
therefore,
Earnings per share = $1,640 ÷ 530 = $3.09
so,
Market Price per share = Price Earning ratio x Earnings per share
Market Price per share = $24 x $3.09
= $74,16
Chang Corporation issued $6,000,000 of 9%, ten-year convertible bonds on July 1, 2020 at 96.1 plus accrued interest. The bonds were dated April 1, 2020 with interest payable April 1 and October 1. Bond discount is amortized semiannually on a straight-line basis. On April 1, 2021, $1,200,000 of these bonds were converted into 500 shares of $20 par value common stock. Accrued interest was paid in cash at the time of conversion.
What was the effective interest rate on the bonds when they were issued?
a. 9%
b. Above 9%
c. Below 9%
d. Cannot determine from the information given.
Answer:
b. Above 9%
Explanation:
given data
issue = $6,000,000
time= 10 year
rate = 9 %
shares = 500
solution
as we can see that here bond issue at discount rate
and we know that market rate is greater than coupon rate
so that the effective interest rate on the bonds when they were issued above 9 %
so correct answer b. Above 9%
Below is the trial balance for Sugar Almonds Ltd as at 31st December 2020
(i)From this Trial Balance you are to prepare the Income Statement of Profit or Loss and the Statement of Financial Position. (See below for pic)
Answer:
Net income = $31,130
Total Assets = Owner's Equity and Liabilities = $104,230
Explanation:
The the Income Statement of Profit or Loss and the Statement of Financial Position can be prepared as follows:
Sugar Almonds Ltd
Income Statement of Profit or Loss
For the Year Ended 31st December 2020
Particulars $ $
Sales Revenue 93,700
Cost of sales:
Opening inventory 12,000
Purchases 49,000
Closing inventory - income statement (24,350)
Cost of sales (36,650)
Gross profit 57,050
Operating expenses:
Administrative Expenses (850)
Rent paid (2,000)
Telephone (900)
Wages (21,650)
Travel expenses (330)
Total operating expenses (25,730)
Interest income (expense):
Interest paid (190)
Net income 31,130
Sugar Almonds Ltd
The Statement of Financial Position
As at 31st December 2020
Particulars $ $
Fixed Assets
Premises at cost 70,000
Vehicles at cost 5,800
Total Fixed Assets 75,800
Current Assets
Cash 630
Bank 2,100
Closing inventory - Statmt of fin positn 24,350
Trade Receivables 1,350
Total Current Assets 28,430
Total Assets 104,230
Owner's Equity
Capital 72,000
Drawings (6,450)
Net income 31,130
Total Owner's Equity 96,680
Current Liabilities
Trade Payables 6,400
VAT 1,150
Total Current Liabilities 7,550
Owner's Equity and Liabilities 104,230
Atlantic Corporation reported the following amounts at the end of the first year of operations: Common stock $ 270,000 Sales revenue $ 940,000 Total assets $ 740,000 Dividends declared $ 65,000 Total liabilities $ 410,000 What are the retained earnings of Atlantic at the end of the year, and what amount of expenses were incurred during the year
Answer:
See below
Explanation:
According to the above information, Retained earning is
Sales revenue $940,000 - dividend declared $65,000 = $875,000
Retained earning is $857,000
Margot starts a new business and contributes $20,000 in cash; she also borrows $25,000 from her local bank. She utilizes the cash to purchase supplies for $5,000 and a computer system for $10,000. After these transactions, the total claims to the company's total resources are:
Answer:
$45,000
Explanation:
Given the above information, total resources is computed as;
Total resources = Cash + Purchase supplies + Equipment computer system
But
Cash = $20,000 + $25,000 - $5,000 - $10,000 = $30,000
Total resources = $30,000 + $5,000 + $10,000 = $45,000
The normal balance for cash in bank is recorded
Answer: go to this link
Debits and Credits - Normal Balances, Permanent ...
Explanation:
Manufacturing activities consist of materials, production, and sales activities. The materials activity consists of the purchase and issuance of materials to production. The production activity consists of converting materials into finished goods. At this stage in the process, the materials, labor, and overhead costs have been incurred and the schedule of cost of goods manufactured is prepared. The sales activity consists of selling some or all of finished goods available for sale. At this stage, the cost of goods sold is determined.
From the list below, select the items that are classified as a materials activity.
a. Raw materials used
b. Raw materials beginning inventory
c. Raw materials purchases
d. Work in process beginning inventory
e. Goods manufactured
f. Direct labor used
g. Factor overhead used
Answer:
a. Raw materials used
b. Raw materials beginning inventory
c. Raw materials purchases
Explanation:
Note: The materials activity consists of the purchase and issuance of materials to production
Thus, the items that are classified as a materials activity are :Raw materials used, Raw materials beginning inventory and Raw materials purchases
She began by asking around for suggestions and by reading through online reviews of different services such as Hulu Plus and Amazon Prime. After considering all her options, Elina decided to subscribe to Netflix for its wide selection of films and television programs, as well as for its popular original programming, which Netflix also made available for streaming. Little by little, Elina and her friends began spending less time at the local movie house where they'd go to watch older films for $6 a film, and more time in her dorm room where they could watch movies of all genres and time periods to their hearts' content. That, accidentally, turned out to be another huge cost-savings measure for Elina. It wasn't long before she recognized that she made the right decision. Elina became a Netflix convert and recommended to others to do the same.
Match the followings.
a. Tells friends how great Netflix is
b. Wants access to home entertainment
c. Compare Netflix, Amazon prime and Hulu plus
d. Provides credit card to Netflix
e. Asks a fried where he rents
1. Need recognition
2. Information Search
3. Alternative Evaluation
4. Purchase
5. Post-purchase
Answer :
a -- 5, b -- 1, c -- 3, d -- 4, e -- 2
Explanation :
In the context, it is given that Elina loves to watch movies and recently she subscribe Netflix to see movies and other program that are streaming on Netflix. She began to realize that she made a right decision and she save money in this way compared to when she spend money on the local theater.
From the context we can compare :
a. Tells friends how great Netflix is -- Post Purchase
b). Wants access to home entertainment -- Need recognition
c). Compare Netflix, Amazon prime and Hulu plus -- Alternative Evaluation
d). Provides credit card to Netflix -- Purchase
e). Asks a fried where he rents -- Information Search
HELP ASAP:
In the open market, oil shares are an example of:
A. finance.
B. accounting.
C. a commodity.
D. a security.
Answer:
C. A commodity
Explanation:
Yurman Co. sells major household appliance service contracts for cash. The service contracts are for a one-year, two-year, or three-year period. Cash receipts from contracts are credited to unearned service contract revenues. This account had a balance of $960,000 at December 31, 2019 before year-end adjustment. Service contract costs are charged as incurred to the service contract expense account, which had a balance of $240,000 at December 31, 2019. Outstanding service contracts at December 31, 2019 expire as follows:
During 2017 During 2018 During 2019
$200,000 $320,000 $140,000
What amount should be reported as unearned service contract revenues in Yurman's December 31, 2016 balance sheet?
a. $720,000.
b. $660,000.
c. $480,000.
d. $440,000.
Answer:
b. $660,000.
Explanation:
Deferred revenues or unearned revenues refer to money that a company received in advance for goods or services that it still has delivered or provided. In this case, the company hasn't provided services for years 2017, 2018 and 2019 = $200,000 + $320,000 + $140,000 = $660,000
Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $1,200 per month. (Round your answers to the nearest cent.)
(a) Find the amount needed at maturity to generate $1,350 per month interest, if they can get 7 % interest compounded monthly.
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9 % and the term is twenty years.
Answer:
(a) The amount needed is $192,000.
(b) The monthly payment is $150.98.
Explanation:
Note: There are errors in this question. The correct question is therefore provided before answering the question as follows:
Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $1,200 per month. (Round your answers to the nearest cent.)
(a) Find the amount needed at maturity to generate $1,200 per month interest, if they can get 7.25% interest compounded monthly.
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9.75% and the term is twenty years.
The explanation of the answer is now given as follows:
(a) Find the amount needed at maturity to generate $1,200 per month interest, if they can get 7.25% interest compounded monthly.
This can be calculated using the following future value formula:
FV = P / i ........................... (1)
Where;
FV = Amount needed at maturity = ?
P = Monthly payment or amount to generate monthly = $1,200
i = monthly interest rate = Annual interest rate / 12 = 7.25% / 12 = 0.075 / 12 = 0.00625
Substituting the values into equation (1), we have:
FV = $1,200 / 0.00625 = $192,000
Therefore, the amount needed is $192,000.
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9.75% and the term is twenty years.
This can be calculated using the Future Value (FV) of an Ordinary Annuity as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (2)
Where,
FV = Future value = $192,000
M = Monthly payment = ?
r = Monthly interest rate = 9.75% / 12 = 0.0975 / 12 = 0.008125
n = number of months = 25 years * Number of months in a year = 25 * 12 = 300
Substituting the values into equation (2) and solve for M, we have:
$192,000 = M * (((1 + 0.008125)^300 - 1) / 0.008125)
$192,000 = M * 1271.65920375075
M = $192,000 / 1271.65920375075
M = $150.98
Therefore, the monthly payment is $150.98.
A shopper at a local supermarket spent the following amounts in her last eight trips to the store: $32.92 $14.14 $30.80 $28.34 $75.58 $36.33 $33.51 $22.94 The amount spent of _________ is most likely an outlier. Give answer as $XX.XX. Please type the correct answer in the following input field, and then select the submit answer button or press the enter key when finished.
Answer well if this is adding then the answer is 274.56$ so that is the amount spent
Explanation:
add all of it and you get the answer
Reading the newspaper this morning, you found an article that mentions a woman named Nada who used to live down the street from you. Nada was recently hired by the First State Bank to assist in the evaluation and forecasting of future financial and economic conditions in the communities served by the bank. In which area of finance does Nada work
Answer:
the options are missing:
Financial services
Financial markets and institutions
Managerial finance
Investments
the answer is Financial services.
Explanation:
Financial markets and institutions deals with stock and bond markets, it doesn't include evaluation of local markets.
Managerial finance deals with financial data analysis, and has nothing to do with Nada.
Investments generally deals with large clients, so neighborhood or community analysis doesn't fit very well either
Financial services includes serving smaller clients, e.g. opening checking accounts, mortgages, etc.
Rocket Products manufactures three types of remote-control devices: Economy, Standard, and Deluxe. The company, which uses activity-based costing, has identified five activities (and related cost drivers). Each activity, its budgeted cost, and related cost driver is identified below. Activity Cost Cost Driver Material handling $ 225,000 Number of parts Material insertion 2,475,000 Number of parts Automated machinery 840,000 Machine hours Finishing 170,000 Direct labor hours Packaging 170,000 Orders shipped Total $ 3,880,000 The following information pertains to the three product lines for next year: Economy Standard Deluxe Units to be produced 10,000 5,000 2,000 Orders to be shipped 1,000 500 200 Number of parts per unit 10 15 25 Machine hours per unit 1 3 5 Labor hours per unit 2 2 2 Assume that Rocket is using a volume-based costing system, and the preceding overhead costs are applied to all products on the basis of direct labor hours. The overhead cost that would be assigned to the Standard product line is closest to:
Answer:
See calculation below
Explanation:
With regards to the above information, overhead cost assigned to the Standard product line
= Total overhead × Units produced for standard product line / Total units produced
= 3,880,000 × 5,000 / $1,000 + $5,000 + 7,000
= $1,492,307
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following:
Machine A could be purchased for $60,500. It will last 10 years with annual maintenance costs of $2,100 per year. After 10 years the machine can be sold for $6,050.
Machine B could be purchased for $55,000. It also will last 10 years and will require maintenance costs of $8,400 in year three, $10,500 in year six, and $12,600 in year eight. After 10 years, the machine will have no salvage value.
Required:
Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year.
Answer:
Esquire should purchase Machine A.
Explanation:
Note: The requirement of this question is not complete. The complete requirement is therefore presented before answering the question as follows:
Required:
Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Ignore income tax considerations.
Calculate the present value of Machine A & Machine B. Which machine Esquire should purchase? (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)
Explanation of the answer is now given as follows:
Note: See the attached excel file for the calculations of the present value of Machine A & Machine B.
In the attached excel file, the following is used:
Discounting factor = 1 / (1 + r)^n ……………………………. (1)
Where:
r = interest rate = 8%, or 0.08
n = the year in focus
From part 1 of the attached excel file, we have:
Net present value of Machine A = -$71,788.85
From part 2 of the attached excel file, we have:
Net present value of Machine B = -$75,092.36
Since the Net present value of Machine A of -$71,788.85 is less than the Net present value of Machine B of -$75,092.36, Esquire should purchase Machine A.
6. Classify each of the following statements as positive or normative. Explain. a. Society faces a short-run trade-off between inflation and unemployment. b. A reduction in the rate of money growth will reduce the rate of inflation. c. The Federal Reserve should reduce the rate of money growth. d. Society ought to require welfare recipients to look for jobs. e. Lower tax rates encourage more work and more saving.
Answer:
Positive
b. Positive
c. Normative
d. Normative
e. Positive
Explanation:
Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.
For example, there is a theory known as Phillips curve. It is when society faces a short-run trade-off between inflation and unemployment. Also it is known that lower tax increases disposable income which increases savings or consumption.
Normative economics is based value judgements, opinions and perspectives. For example, the statement - The Federal Reserve should reduce the rate of money growth is an opinion
Fuzzy Monkey Technologies, Inc., purchased as a long-term investment $80 million of 8% bonds, dated January 1, on January 1, 2021. Management has the positive intent and ability to hold the bonds until maturity. For bonds of similar risk and maturity the market yield was 10%. The price paid for the bonds was $66 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2021, was $70 million.
Required:
a. Prepare the journal entry to record Fuzzy Monkey's investment on January 1, 2021.
b. Prepare the journal entry by Fuzzy Monkey to record interest on June 30, 2021 (at the effective rate).
c. Prepare the journal entries by Fuzzy Monkey to record interest on December 31, 2021 (at the effective rate).
d. At what amount will Fuzzy Monkey report its investment in the December 31, 2021, balance sheet? Why?
e. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment?
Answer:
A. 1-Jan-21
Dr Investment in Bond Dr $80.00
Cr To Cash $66.00
Cr To Discount on bond investment $14.00
B.30-Jun-21
Dr Cash $3.20
Dr Discount on bond investment $0.10
Cr To Interest revenue $3.30
C. 31-Dec-21
Dr Cash $3.20
Dr Discount on bond investment Dr $0.11
Cr To Interest revenue $3.31
D. $70 million Due to the change in market conditions
E. CASH FLOW FROM OPERATING ACTIVITIES:
Interest received $7.40 INFLOW
CASH FLOW FROM INVESTING ACTIVITIES:
Cash paid for purchase of investment -$66.00 OUTFLOW
Explanation:
a. Preparation of the journal entry to record Fuzzy Monkey's investment on January 1, 2021.
1-Jan-21
Dr Investment in Bond Dr $80.00
Cr To Cash $66.00
Cr To Discount on bond investment $14.00
(80-66)
(Being to record investment in bond )
b. Preparation of the journal entry by Fuzzy Monkey to record interest on June 30, 2021 (at the effective rate).
30-Jun-21
Dr Cash $3.20
($80 *8% * 6/12)
Dr Discount on bond investment $0.10
($3.30-$3.20)
Cr To Interest revenue $3.30
($66*10%*6/12)
(Being to record revenue recognition for bond interest and discount amortized)
c. Preparation of the journal entries by Fuzzy Monkey to record interest on December 31, 2021 (at the effective rate)
31-Dec-21
Dr Cash $3.20
($80 *8% * 6/12)
Dr Discount on bond investment Dr $0.11
($3.31- $3.20)
Cr To Interest revenue $3.31
[ $66+.1*(10%*6/12) ]
(Being to record revenue recognition for bond interest and discount amortized)
d. Based on the information given Fuzzy monkey will report its investment on December 31, 2021 balance sheet at fair value of the amount of $70 million reason been that we were told that because of the change in the market conditions, the fair value of the bonds at December 31, 2021, was the amount of $70 million.
e. Calculation for How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment
STATEMENT OF CASH FLOW (PARTIAL)
For 2021
CASH FLOW FROM OPERATING ACTIVITIES:
Interest received $7.40 INFLOW
($3.20+$3.20)
CASH FLOW FROM INVESTING ACTIVITIES:
Cash paid for purchase of investment -$66.00 OUTFLOW
On May 1, Cobb and Mott formed a partnership and agreed to share profits and losses in the ratio of 3:7, respectively. Cobb contributed a parcel of land that cost him $10,000. Mott contributed $40,000 cash. The land was sold for $18,000 on that same date, immediately after formation of the partnership. What amount should be recorded in Cobb's capital account on formation of the partnership
Answer: $18000
Explanation:
We should note that the value of the contributed assets would be based on the fair values.
With regards to the question, we are already informed that the land was sold for $18,000 which in this case is the fair value of the asset.
Therefore, the amount that should be recorded in Cobb's capital account on formation of the partnership would be $18000.
Failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause Group of answer choices net income to be overstated. an understatement of assets and an understatement of revenues. an understatement of revenues and an understatement of liabilities. an understatement of revenues and an overstatement of liabilities.
Answer:
an understatement of assets and an understatement of revenues.
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). Examples of financial statements includes Balance sheet, cash-flow and income statement.
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.
Hence, failure to prepare an adjusting entry at the end of a period to record an accrued revenue would cause an understatement of assets and an understatement of revenues.
calculate the break even number of units if the fixed expenses are $7000 and the contribution margin is $14 per unit
Answer:
500 units
Explanation:
14x=7000. The breakeven point is where you have to make just as much as what you are spending. So your total would be 7000 and since it's 14 for each unit you're just looking for x and make it into an equation. 7000/14= 500 units
The break even number of units is 500
Breakeven point is where neither profit nor loss is incurred by a firm. It is where you have to make just as much as what you are spending.
Break even point (BEP) is computed as ;
= Fixed cost / Contribution margin
= $7,000 / $14
= 500 units.
Therefore, the break even number of units if the fixed expenses are $7000 and the contribution margin is $14 per unit is 500 units
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A motive is always required for the suspect to be criminally liable
6. Suppose Billy Bud's Bucking Broncos employs 20 workers at a daily wage rate of $60 each. The average product of labor is 30 bucking broncos per day; the marginal product of the last worker is 12 bucking broncos per day; and total fixed cost is $3,600 for equipment. What is the marginal cost of the last bucking bronco produced
Answer:
5
Explanation:
Calculation for What is the marginal cost of the last bucking bronco produced
using this formula
Marginal cost of the last bucking bronco produced=Daily wage rate/Marginal product
Let plug in the formula
Marginal cost of the last bucking bronco produced=$60 each/12 bucking broncos per day
Marginal cost of the last bucking bronco produced=5
Therefore the Marginal cost of the last bucking bronco produced will be 5