Answer:
Debit credit analysis of given journal entries.
Explanation:
1. Cash ac dr , Purchase (common stock) ac cr ... 30000
2. No entry for hiring only , No accrual or cash transaction takes place
3. Furniture ac dr, creditor/ accounts payable (Furniture supplier) ac cr ... 3800
6. Debtor/ accounts recievables (Roads') ac dr, Comission ac cr ... 10800
10. Cash ac dr, Comission ac cr ... 140
27. creditor/ accounts payable (Furniture supplier) ac dr, Cash ac cr ... 700
30. Salary ac dr, Cash ac cr 3000
The following trial balance of Crane Co. does not balance.
CRANE CO.
TRIAL BALANCE
JUNE 30, 2017
Debit Credit
Cash $3,099
Accounts Receivable $3,460
Supplies 1,029
Equipment 4,029
Accounts Payable 2,895
Unearned Service Revenue 1,429
Common Stock 6,229
Retained Earnings 3,229
Service Revenue 2,609
Salaries and Wages Expense 3,629
Office Expense 1,169
Totals $14,745 $18,061
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a computer printer on account for $729 was recorded as a debit to Supplies for $729 and a credit to Accounts Payable for $729.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
4. A payment of $294 for telephone charges was recorded as a debit to Office Expense for $294 and a debit to Cash for $294.
5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $554 was performed prior to June 30 (related to Unearned Service Revenue).
6. A debit posting to Salaries and Wages Expense of $899 was omitted.
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
8. A dividend of $804 was debited to Salaries and Wages Expense for $804 and credited to Cash for $804.
Prepare a correct trial balance.
CRANE CO.
TRIAL BALANCE
JUNE 30, 2017
Debit
Credit $ $
Totals $ $
Answer and Explanation:
Cash= 3,099+180-294-294= 2691
Accounts receivable= 3,460-180=3280
Supplies =1,029-729=300
Equipment= 4,029+729=4758
Accounts payable =2,895-206-260= 2429
unearned service revenue=1,429-554= 875
Service revenue= 2,609+801+554 3964
Salaries & wage expense 3,629+899-804= 3724
Find attached
Analyzing the effects of transactions on the accounting equation.
On July 1, Alfred Herron established Herron Commercial Appraisal Services, a firm that provides expert commercial appraisals and represents clients in commercial appraisal hearings.
Instructions:
Analyze the following transactions. Record in equation form the changes that occur in assets, liabilities, and owner's equity.
Transactions:
The owner invested $200,000 in cash to begin the business.
Paid $40,500 in cash for the purchase of equipment.
Purchased additional equipment for $30,400 on credit.
Paid $25,000 in cash to creditors.
The owner made an additional investment of $50,000 in cash.
Performed services for $19,500 in cash.
Performed services for $15,600 on account.
Paid $12,000 for rent expense.
Received $11,000 in cash from credit clients.
Paid $15,100 in cash for office supplies.
The owner withdrew $24,000 in cash for personal expenses.
Analyze: What is the ending balance of cash after all transactions have been recorded?
Answer:
I used an excel spreadsheet to record the accounts using the accounting equation.
What is the ending balance of cash after all transactions have been recorded?
$163,900
The Cash ending balance after the recording of the transactions is $163,900.
Data Analysis:
a. Cash $200,000 Capital, Alfred Herron $200,000
b. Equipment $40,500 Cash $40,500
c. Equipment $30,400 Accounts Payable $30,400
d. Accounts Payable $25,000 Cash $25,000
e. Cash $50,000 Capital, Alfred Herron $50,000
f. Cash $19,500 Service Revenue $19,500
g. Accounts Receivable $15,600 Service Revenue $15,600
h. Rent Expense $12,000 Cash $12,000
i. Cash $11,000 Accounts Receivable $11,000
j. Supplies $15,100 Cash $15,100
k. Drawings, Alfred Herron $24,000 Cash $24,000
Thus, the total cash receipts are $280,500, while the total cash disbursements are $116,600, leaving an ending balance of $163,900 in cash.
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Intangible Assets and Goodwill: Amortization and Impairment In early 2011, Bowen Company acquired a new business unit in a merger. Allocation of the acquisition cost resulted in fair values assigned as follows:
Intangible Asset Fair Value Estimated Value
Customer lists $400,000 5 years
Developed technology 640,000 10 years
Internet domain name 1,040,000 Indefinite
Goodwill 4,960,000 Indefinite
The goodwill is assigned entirely to the acquired business unit. Impairment reviews at the end of 2011 and 2012 did not identify any impairment losses. After the business suffered a downturn during 2013, the year-end impairment review yielded the following information: Customer lists are estimated to have undiscounted future cash flows of $200,000 and discounted future cash flows of $144,000.
The internet domain name is estimated to have undiscounted future cash flows of $800,000 and discounted future cash flows of $600,000. The acquired business unit has a fair value of $13,600,000, a carrying amount of $14,800,000, and the fair value of its identifiable net assets is $11,360,000.
Required:
Determine Bowen's amortization expense and impairment write-offs for 2013.
A 6.75 percent coupon bond with 13 years left to maturity can be called in two years. The call premium is one year of coupon payments. It is offered for sale at $919.75. What is the yield to call of the bond? Assume interest payments are paid semi-annually and par value is $1,000.
Answer:
YTC = 14.23%
Explanation:
the yield to call formula is:
YTC = {coupon payment + [(call price - market price) / n]} / [(call price + market price) / 2]
YTC = {$33.75 + [($1,067.50 - $919.75) / 4]} / [($1,067.50 + $919.75) / 2]
YTC = ($33.75 + $36.94) / $993.63 = 0.0711 x 2 (semiannual coupon) = 0.1423 = 14.23%
a. Insurance expense 2,807
Prepaid insurance 2,807
b. Teaching supplies expense 2,433
Teaching supplies 2,433
c. Depreciation expense—Equipment 11,227
Accumulated depreciation—Equipment 11,277
d. Depreciation expense—Professional library 5,614
Accumulated depreciation—Professional library 5,614
e. Unearned training fees 2,700
Training fees earned 2,700
f. Accounts receivable 2,819
Tuition fees earned 2,819
g. Salaries expense 100
Salaries payable 100
h. Rent expense 2,097
Prepaid rent 2,097
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow.
Additional Information:
a. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired.
b. An inventory count shows that teaching supplies costing $2,433 are available at year-end 2017.
c. Annual depreciation on the equipment is $11,227. Annual depreciation on the professional library is $5,614.
d. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,619 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. The balance in the Prepaid Rent account represents rent for December.
Answer:
The question is incomplete, it is a really long question actually. I believe that you want to check if the adjusting entries were properly done.
a. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired.
Dr Insurance expense 2,807
Cr Prepaid insurance 2,807
CORRECT
b. An inventory count shows that teaching supplies costing $2,433 are available at year-end 2017.
Dr Teaching supplies expense (amount on trial balance - $2,433)
Cr Teaching supplies (amount on trial balance - $2,433)
You do not need to record $2,433, you need to record the difference between the balance of teaching supplies and the ending inventory.
c. Annual depreciation on the equipment is $11,227. Annual depreciation on the professional library is $5,614.
Dr Depreciation expense 16,841
Cr Accumulated depreciation, equipment 11,227
Cr Accumulated depreciation, professional library 5,614
CORRECT
d. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.
Dr Unearned training Fees 5,800
Cr Training fees earned 5,800 (2 months of accrued revenue)
On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,619 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) WTI's two employees are paid weekly.
Dr Accounts receivable 3,928.50
Cr Tuition fees earned 3,928.50 (1.5 months)
As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
Dr Wages expense 400
Cr Wages payable 400 (2 days x $100 x 2 employees)
The balance in the Prepaid Rent account represents rent for December.
Dr Rent expense 2,097
Cr Prepaid rent 2,097 (assuming that this was the account balance)
I ASSUME ITS CORRECT
marketing costs include what? please be precise
30 POINTS
Answer:
advertising, promotion and public relations
Explanation:
Hope this helps
Answer:
A marketing expense is “an amount of money the company spends on marketing,” according to Cambridge Dictionaries Online. ... Typically, some common marketing expenses include marketing salaries, marketing research, promotions, public relations and advertising costs.
Explanation:
A market has 10 sellers. The fifth and seventh in size merge, becoming the largest seller in the market. How can this merger support competition in the market?
Answer: b. If the newly merged seller becomes more efficient and offers lower prices
Explanation:
Competition in the market is spurred by efficiency. The more efficient a company is at producing, the more competitive it is because it will be able to offer lower prices than its competitors.
If the newly created firm starts offering lower prices due to it being more efficient, the effect would be that the other companies would be forced to become efficient so as to lower their prices as well thereby increasing competition in the market.
Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
March 1 Beginning inventory 20 $230 $4,600
March 5 Sale ($360 each) 15
March 9 Purchase 10 250 2,500
March 17 Sale ($410 each) 8
March 22 Purchase 10 260 2,600
March 27 Sale ($435 each) 12
March 30 Purchase 8 280 2,240
For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.
Required:
a. Calculate ending inventory and cost of goods sold at March 31, 2015, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes
from beginning inventory and eight bikes from the March 22 purchase.
b. Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
c. Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
d. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)
e. Calculate sales revenue and gross profit under each of the four methods.
Answer:
Greg's Bicycle Shop
Ending Inventory:
a. Specific Identification:
Beginning inventory 1 * $230 = $230
March 9 purchase 2 * $250 = 500
March 22 purchase 2 * $260 = 520
March 30 Purchase 8 * $280 =2,240
Total value of inventory 13 units = $3,490
Cost of goods sold = Cost of goods available for sale Minus Ending Inventory
= $11,940 - $3,490
= $8,450
b. FIFO:
March 22 Purchase 5 260 1,300
March 30 Purchase 8 280 2,240
Ending Inventory 13 $3,540
Cost of goods sold = Goods available for sale Minus Ending Inventory
= $11,940 - $3,540
= $8,400
c. LIFO:
Ending Inventory:
March 1 Inventory 13 $230 $2,990
Cost of goods sold = Goods available for sale Minus Ending Inventory
= $11,940 - $2,990
= $8,950
d) Weighted -Average Cost:
Ending Inventory = $248.75 * 13 = $3,233.75
Cost of Goods Sold = $248.75 * 35 = $8,706.25
Specific FIFO LIFO Weighted
Identification Average
Sales $13,900 $13,900 $13,900 $13,900.00
Cost of goods sold 8,450 8,400 8,950 $8,706.25
Gross profit $5,450 $5,500 $4,950 $5,193.75
Explanation:
Dat and Calculations:
Shop uses periodic inventory system
Date Transactions Units Unit Cost Total Cost Total
March 1 Beginning inventory 20 $230 $4,600 Sales
March 5 Sale ($360 each) 15 $360 $5,400
March 9 Purchase 10 250 2,500
March 17 Sale ($410 each) 8 $410 $3,280
March 22 Purchase 10 260 2,600
March 27 Sale ($435 each) 12 $435 $5,220
March 30 Purchase 8 280 2,240
Total Goods available for sale 48 35 $11,940 $13,900
Ending Inventory = 13 (48 - 35)
Weighted average cost = Cost of goods available for sale/Units of Goods available for sale
= $11,940/48 = $248.75
Specific Identification:
March 5 sale 15 consists of bikes from 15 beginning inventory Bal 5 - 4 = 1
March 17 sale 8 consists of bikes from the March 9 purchase Bal = 2
March 27 sale 12 consists of four bikes from beginning inventory and eight bikes from the March 22 purchase Bal = 2
Ending Inventory:
Specific Identification:
Beginning inventory 1 * $230 = $230
March 9 purchase 2 * $250 = 500
March 22 purchase 2 * $260 = 520
March 30 Purchase 8 * $280 =2,240
Total value of inventory 13 units = $3,490
FIFO:
March 22 Purchase 5 260 1,300
March 30 Purchase 8 280 2,240
Ending Inventory 13 $3,540
LIFO:
March 1 Beginning inventory 13 $230 $2,990
Weighted-Average Costs:
Ending Inventory = $248.75 * 13 = $3,233.75
Cost of Goods Sold = $248.75 * 35 = $8,706.25
List and describe the three types of income. Include information regarding how each one is taxed.
Answer:
Understanding The Three Types Of Income
Earned Income. The first type of income is the most common: earned income. ... Capital Gains Income. The next type of income that you can earn is called capital gains income. ... Passive Income. The final type of income that you can earn is called passive income.
Answer:
earned income, capital income, dont know the last one sorry
Explanation:
Gilbert is considering purchasing the Side Steamer 3000, a higher-end steamer, which costs $12,000, and has an estimated useful life of 6 years with an estimated salvage value of $1,200. This steamer falls into the MACRS 5-years class, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The new steamer is faster and would allow for an output expansion, so sales would rise by $2,000 per year; even so, the new machine's much greater efficiency would reduce operating expenses by $1,400 per year. To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultaneously increase by $700. Gilbert's marginal federal-plus-state tax rate is 40%, and its WACC is 12%.
a. Should it replace the old steamer?b. NPV of replace = $2,083.51
SHOW WORK HOW TO GET THIS ANSWER
Answer:
Explanation:
initial outlay $12,000 + ($2,900 - $700) = $14,200
depreciable value = $10,800
depreciation per year:
$2,160$3,456$2,073.60$1,244.16$1,244.16$622.08incremental revenues = $2,000 + $1,400 = $3,400
CF year 0 = -$14,200
CF year 1 = [($3,400 - $2,160) x 0.6] + $2,160 = $2,904
CF year 2 = [($3,400 - $3,456) x 0.6] + $3,456 = $3,422.40
CF year 3 = [($3,400 - $2,073.60) x 0.6] + $2,073.60 = $2,869.44
CF year 4 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66
CF year 5 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66
CF year 6 = [($3,400 - $622.08) x 0.6] + $622.08 + $1,200 + $2,200 = $5,688.83
WACC = 12%
a) the steamer should not be replaced, since the NPV is negative.
b) Using a financial calculator, NPV = -$14,200 + $13,298.29 = -$901.71
The auditors of Steffey Ltd., decided to study the cash receipts and disbursements for the month of July of the current year under audit. They obtained the bank reconciliations and the cash journals prepared by the company accountants, which revealed the following: June 30: Bank balance, $355,001; deposits in transit, $86,899; outstanding checks, $42,690; general ledger cash balance, $399,210. July 1: Cash receipts journal, $650,187; cash disbursements journal, $565,397. July 31: Bank balance, $506,100; deposits in transit, $51,240; outstanding checks, $73,340; general ledger cash balance, $484,000. Bank statement record of deposits: $835,846; of payments: $684,747.
Required:Prepare a four-column proof of cash covering the month of July of the current year. Identify problems, if any.
Answer:
Bal. June 30 Receipts Disbursements Bal. July 31
Balance per Bank 355,001 835,846 684,747 506,100
Deposit in Transit
June 30 86,899 -86,899
July 31 51,240 51,240
Outstanding Checks
June 30 42,690 -42,690
July 31 73,340 73,340
Unrecorded Receipts -150,000 -150,000
Unrecorded Disbursement -150,000 -150,000
Balance per Books 399,210 650,187 565,397 484,000
When an organization tries to influence the adaptation of individuals, the process of _____ is occurring. Group of answer choices encounter socialization individualization metamorphosis
Answer:
B. socialization
Explanation:
Socialization can be defined as the process in which individuals learn to behave in a morally acceptable way or manner, acquire values, attitudes and habits that are in tandem with the environment where they found themselves such as an organization.
Hence, when an organization tries to influence the adaptation of individuals, the process of socialization is occurring.
Stine Corp.'s trial balance reflected the following account balances at December 31, 2014: Accounts receivable (net) $19,000 Trading securities 6,000 Accumulated depreciation on equipment and furniture 15,000 Cash 16,000 Inventory 30,000 Equipment 25,000 Patent 4,000 Prepaid expenses 2,000 Land held for future business site 18,000 In Stine's December 31, 2014 balance sheet, the current assets total is:__________
Answer:...
Explanation:
Stine Corp.'s trial balance reflected the following account balances at December 31, 2014:
Accounts receivable (net) $19,000
Trading securities 6,000
Accumulated depreciation on equipment and furniture 15,000
Cash 16,000
Inventory 30,000
Equipment 25,000
Patent 4,000
Prepaid expenses 2,000
Land held for future business site 18,000
In Stine's December 31, 2014 balance sheet, the current assets total is [A] (please enter your answer as a whole number without any dollar sign, thousand separator, or decimal points.
What are the nominal and effective costs of trade credit under the credit terms of 3/10, net 30? Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places.
Answer:
Nominal cost of trade credit = [Discount percentage / (100- Discount Percentage) ] * [ 365 Days / (Credit's Outstanding - Discount Period) ]
Nominal cost of trade credit = 3/97 * 365/30 - 10
Nominal cost of trade credit = 3/97 * 365/20
Nominal cost of trade credit = 0.030928 * 18.25
Nominal cost of trade credit = 0.564436
Nominal cost of trade credit = 56.44%
Effective cost of trade = (1 + Periodic rate)^n - 1
Periodic rate = 0.03 / 0.97 = 0.3093
Periods/year = 365 / (30-10) = 18.25
Effective cost of trade = (1 + 0.3093)^18.25 - 1
Effective cost of trade = (1 .3093)^18.25 - 1
Effective cost of trade = 1.74354232297 - 1
Effective cost of trade = 0.74354232297
Effective cost of trade = 74.35%
Answer:
nominal cost of credit = 56.44% ;EAR = 74.35%
Explanation:
1.nominal cost of credit =
"(discount rate /1 - discount rate )" or part 1
multiply by "365/(days the credit is outstanding -discount days )" or part 2 .Thus ,nominal cost of credit= (0.03/1-0.03 )*(365 /30 -10)= part 1* part 2 = 0.030928*18.25=56.44%
2.EAR =[ (1 - "part 1 ") ^("part 2") ] - 1= [ (1+0.030928)^18.25 ] -1 =1.74348 -1 = 0.74348 or 74.348% or 74.35%
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,288,076 as follows. Work in process,November 1Materials $79,000Conversion costs 48,200$127,200Materials added 1,594,520Labor 225,800Overhead 340,556Production records show that 34,600 units were in beginning work in process 30% complete as to conversion costs, 662,700 units were started into production, and 24,100 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
Answer:
Using the FIFO cost method:
beginning WIP 34,600 units
materials $79,000 (100% complete)
conversion $48,200 (30% complete, 70% remaining = 24,220 EU)
units started 662,700
materials added $1,594,520
conversion costs added $566,356
ending WIP 24,100
100% complete for materials
40% complete for conversion = 9,640 EU
units completed and transferred out = 34,600 + 662,700 - 24,100 = 673,200
units started and completed = 662,700 - 34,600 - 24,100 = 604,000
total equivalent units for the month:
materials 662,700
conversion = 24,220 + 604,000 + 9,640 = 637,860
total cost per EU:
materials = $1,594,520 / 662,700 = $2.4061
conversion = $566,356 / 637,860 = $0.8879
total = $3.294
cost of ending WIP:
materials = 24,100 x $2.4061 = $57,987
conversion = 9,640 x $0.8879 = $8,559.36 ≈ $8,559
total = $66,546
cost of units transferred out = $79,000 + $48,200 + $1,594,520 + $566,356 - $66,546 = $2,221,530
total units transferred out = 673,200
production cost per unit = $2,221,530 / 673,200 = $3.30
Tyrone and Akira, who are married, incurred and paid the following amounts of interest during 2019:
Home acquisition debt interest $ 15,000
Credit card interest 5,000
Home equity loan interest (used for home improvement) 6,500
Investment interest expense 10,000
Required: With 2019 net investment income of $2,000, calculate the amount of their allowable deduction for investment interest expense and their total deduction for allowable interest. Home acquisition principal, and the home equity loan principal combined are less than $750,000.
Answer:
The Investment Interest (limited to Investment income) = $2,000
Allowance deduction for Interest
Investment interest $2,000
Home acquisition debt interest $15,000
Home equity loan interest $6,500
$23,500 - Before phase out limits
Sunnyside Marine Products began the year with 10 units of marine floats at a cost of $11 each. During the year, it made the following purchases: May 5, 30 unit at $16; July 16, 15 units at $19; and December 7, 20 units at $23. Assuming there are 25 units on hand at the end of the period, determine the cost of goods sold under (a) FIFO, (b) LIFO, and (c) average-cost. Sunnyside uses the periodic approach.
Answer:
Sunnyside Marine Products
Determination of the Cost of Goods Sold under:
a) FIIFO:
= $780
(b) LIFO:
= $985
(c) Average-cost:
= $890
Explanation:
a) Data and Calculations:
Date Description Units Unit cost Total
January 1 Beginning Inventory 10 $11 $110
May 5, Purchase 30 $16 480
July 16 Purchase 15 $19 285
Dec. 7 Purchase 20 $23 460
Dec. 31 Ending Inventory 25
Dec. 31 Total Units Sold 50 $1,335
Average Cost = Total cost/Total inventory available
= $1,335/75
=$17.80
FIFO:Cost of goods sold = (10 * $11) + (30 * 16) + (10 * 19) = $780
LIFO: Cost of goods sold = (20 * $23) + (15 * $19) + (15 * 16)= $985
Average-Cost: Cost of goods sold = 50 * $17.80
b) Average-cost uses the average cost of goods available for sale divided by the total units available for sale under the periodic inventory system.
FIFO is based on the assumption that the first goods sold are the ones bought first. LIFO assumes that the first goods sold are the last ones bought.
The direct costs of manufacturing the goods that a company sells are referred to as COGS. The cost of the materials and labor directly employed to make the good is included in this figure.
Sunny side Marine Products
Determination of the Cost of Goods Sold under:a) FIFO:= $780
(b) LIFO:= $985
(c) Average-cost:= $890
SOLUTION:-
a) Data and Calculations:-
Date Description Units Unit cost Total
January 1 Beginning Inventory 10 $11 $110
May 5, Purchase 30 $16 480
July 16 Purchase 15 $19 285
Dec. 7 Purchase 20 $23 460
Dec. 31 Ending Inventory 25
Dec. 31 Total Units Sold 50 $1,335
Average Cost = Total cost/Total inventory available
= $1,335/75
=$17.80
FIFO:-Cost of goods sold = (10 * $11) + (30 * 16) + (10 * 19) = $780
LIFO:- Cost of goods sold = (20 * $23) + (15 * $19) + (15 * 16)= $985
Average-Cost:- Cost of goods sold = 50 * $17.80
b) Average-cost uses the average cost of goods available for sale divided by the total units available for sale under the periodic inventory system.
FIFO is based on the assumption that the first goods sold are the ones bought first. LIFO assumes that the first goods sold are the last ones bought.
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When a woman makes a dress and takes it to town to trade it for eggs and milk, it is an example of
Answer:
Barter trade
Explanation:
Barter trade is the exchange of goods and services between parties without using a medium of exchange. In barter trade, the transacting parties exchange goods and services for other goods and services. Barter trade was in practice before money become widely accepted as a medium of exchange.
One challenge with barter trade is the double coincidence of wants. A person with good A and needs product B has to find another person with products B and need good A. In this case, the woman has a dress and need eggs and milk. She has to find someone with eggs and milk is willing to trade them for a dress.
Answer:
subsistence economy
Explanation:
Terms of a lease agreement and related facts were:
a. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $6,652.
b. The retail cash selling price of the leased asset was $550,000.
c. Its useful life was three years with no residual value.
d. The lease term is three years and the lessor paid $550,000 to acquire the asset.
e. Annual lease payments at the beginning of each year were $200,000.
f. Lessor’s implicit rate when calculating annual rental payments was 9%.
(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2018.
2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs.
3. Record any entry(s) necessary at December 31, 2018, the fiscal year-end.
Answer:
1) January 1, 2018, asset leased
Dr Lease receivable 550,000
Cr Equipment 550,000
January 1, incremental costs associated with lease transaction
Dr Lease receivable 6,652
Cr Cash 6,652
January 1, 2018, first lease payment collected
Dr Cash 200,000
Cr Lease receivable 200,000
2) to calculate the effective rate we can use the present value of an annuity due formula
PV annuity due factor, 3 periods, ?% = present value of lease receivable / annual payment = $556,652 / $200,000 = 2.78326
Now we must use an annuity due table to determine a possible rate. In this case, the exact rate is 8%.
3) December 31, 2018, interest receivable on lease contract
Dr Interest receivable 28,532
Cr Interest revenue 28,532
interest receivable = ($556,652 / $200,000) x 8% = $28,532
What potential consequences could result from the
worst
kitchen safety violation that you see in this picture?
which situation best describes the role of businesse in the circular flow of goods
Answer:
A company makes a new line of kitchen appliances
Explanation:
Just did it
Listed below are selected transactions of Blossom Department Store for the current year ending December 31.
1. On December 5, the store received $490 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15.
2. During December, cash sales totaled $821,100, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month.
3. On December 10, the store purchased for cash three delivery trucks for $110,300. The trucks were purchased in a state that applies a 5% sales tax.
4. The store determined it will cost $96,300 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Blossom estimates the fair value of the obligation at December 31 is $77,400.
Answer:
1. Dec. 5 Cash$490
Cr Due to customer$490
2. Dec. 1-31
Dr Cash821,100
Cr Sales Revenue782,000
Cr Sales Tax Payable 39,100
Dec. 10
Dr Trucks 115,815
Cr Cash115,815
Dec.31
Dr Land improvements 77,400
Cr Asset Retirement Obligation 77,400
Explanation:
Preparation of Journal entries
1. Dec. 5 Cash 490
Cr Due to customer 490
2. Dec. 1-31
Dr Cash821,100
Cr Sales Revenue782,000
Cr Sales Tax Payable 39,100
(821,100-782,000)
Dec. 10
Dr Trucks 115,815
Cr Cash115,815
Dec.31
Dr Land improvements 77,400
Cr Asset Retirement Obligation 77,400
Workings:
Dec. 1-31
Sales Revenue= ($821,100 ÷ 1.05)
Sales Revenue=$782,000
Sales Taxes Payable =($782,000 ×0.05)
Sales Taxes Payable=$39,100
Dec. 10Trucks= ($110,300 × 1.05)
Trucks =$115,815
At the beginning of 2020, Pronghorn Company acquired a mine for $1,732,800. Of this amount, $112,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,600,000 units of ore appear to be in the mine. Pronghorn incurred $190,400 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $44,800. During 2020, 2,718,000 units of ore were extracted and 2,310,000 of these units were sold.
Required:
a. Compute the total amount of depletion for 2020.
b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.
Answer: a. $434880
b. $369,600
Explanation:
a. Compute the total amount of depletion for 2020.
Depletion Rate can be calculated as:
= (Mine cost - Value of land + Obligation + Development cost)/Ore extracted
= ($1,732,800 - $112,000 + $44,800 + $190,400)/$11,600,000
= $1856000/$11600000
= 0.16
Total amount of depletion for 2020 will now be calculated as:
= Depletion Rate × Ore extracted
= 0.16 × 2,718,000
= $434880
b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.
This will be calculated as the totsl depletion for 2014 divided by the value of the amount of ore that was extracted multiplied with amount of unit sold. This will be:
= (434,880/2,718,000) × 2,310,000
= 0.16 × 2,310,000
= $369,600
Which drawback of being an entrepreneur can disrupt your personal life?
We discussed the debt situation in the US and referred to the 'US mysteries' . Write an essay explaining these mysteries and why, the US is in a unique position relative to the rest of world. Make sure your answer includes a discussion of exorbitant privilege and 'dark matter.' Complete your essay with a discussion of why some are worried about the sustainability of this unique position and what the consequences would be on the US economy if we lost this 'unique position.'
Answer:
The Debit situation in the US is a very unique one unlike other debit situations around the world, and this is because the US is unique it its ways of handling Debit situations and also not forgetting the fact that the US enjoys certain privileges' in its Financial dealings with others.
These privileges is evident in the Ability of US corporations/companies to have a debit of over $1.9 trillion and still able to be in business, despite this high indebtedness the US economy have witnessed a growth stability at 3% and inflation rate below2% and its unemployment rate is close to 4% making US economy the Number 1 in the world. But the consequences this might have in future for The US is that most US companies would go Bankrupt when the Government is unable to churn out good financial policies to sustain this high level of indebtedness
Explanation:
The Debit situation in the US is a very unique one unlike other debit situations around the world, and this is because the US is unique it its ways of handling Debit situations and also not forgetting the fact that the US enjoys certain privileges' in its Financial dealings with others.
These privileges is evident in the Ability of US corporations/companies to have a debit of over $1.9 trillion and still able to be in business, despite this high indebtedness the US economy have witnessed a growth stability at 3% and inflation rate below2% and its unemployment rate is close to 4% making US economy the Number 1 in the world. But the consequences this might have in future for The US is that most US companies would go Bankrupt when the Government is unable to churn out good financial policies to sustain this high level of indebtedness
The City of Clear Lake signed a lease agreement with Mountainside Builders whereby Mountainside will construct a new office building for city administrative use and lease it to the City for 30 years. The fair market value of the building is $12 million. The City has agreed to make an initial payment of $822,441 and annual payments in the same amount for the next 29 years. (This assumes a 6 percent discount rate.) The lease includes a funding clause, which allows Clear Lake to terminate the lease agreement if the government does not appropriate funds for the lease payments. Clear Lake does not intend to exercise this option unless there is a financial emergency. Upon completion, the building had an appraised value of $13 million and an estimated useful life of 40 years.
Required:
Provide journal entries the city should make for both the capital projects fund and governmental activities at the government-wide level to record the lease at the date of inception.
Try making discount to 5% they will have to pay just a little more for what they are buying. Try moving the payment to 822,000 so you can save the 441 dollars.
Mazeppa Corporation sells relays at a selling price of $28 per unit. The company's cost per unit, based on full capacity of 160,000 units, is as follows:
Direct materials $6
Direct labor 4
Overhead (2/3 of which is variable) 9
Mazeppa has been approached by a distributor in Montana offering to buy a special order consisting of 30,000 relays. Mazeppa has the capacity to fill the order. However, it will incur an additional shipping cost of $2 for each relay it sells to the distributor.
Required:
a. Assume that Mazeppa is currently operating at a level of 100,000 units. Show the calculation for the unit price to charge the distributor which will generate an increase in operating income of $2 per unit.
b. Assume that Mazeppa is currently operating at full capacity. To fill the special order, regular customers will have to be turned away. Now what unit price should it charge the distributor if it wishes to increase total operating income by $60,000 more than it would be without accepting the special order?
Answer:
a. $20.00
b. $28,75
Explanation:
Find the total incremental costs to satisfy the special order and add $2.00 profit (because we are aiming for a profit not to just break-even).
Calculation of Total Incremental Unit Costs
Direct materials $6 .00
Direct labor $4.00
Variable Overheads (2/3 × $9) $6.00
Shipping Cost $2.00
Total Incremental Unit Cost $18.00
Add Profit Element $2.00
Unit Selling Price for the Special Order $20.00
In this case no changes will occur on fixed overheads, hence it is irrelevant.
Calculation of Desired Net Operating Income
Sales ($28 × 160,000 units) $4,480,000
Less Product Costs :
Direct materials ($6 .00 × 160,000 units) ($960,000)
Direct labor ($4.00 × 160,000 units) ($640,000)
Variable Overheads ($6.00 × 160,000 units) ($960,000)
Fixed Overheads ($3.00 × 160,000 units) ($480,000)
Current Operating Income $1,440,000
Add Desired Increase in Operating Income $60,000
Desired Operating Income $1,500,000
Unit Profit = $1,500,000 ÷ 160,000 units
= $9.375
Unit Profit = Unit Selling Price - Total Unit Costs - Unit Incremental Profit
therefore,
Unit Selling Price = Unit Profit + Total Unit Costs + Unit Incremental Profit
= $9.375 + $19.00 + $0.375
= $28,75
North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31.
Account Titles Debit Credit
Cash $ 11,200
Accounts Receivable 5,200
Prepaid Rent 2,240
Equipment 20,200
Accumulated Depreciation $ 1,180
Accounts Payable 1,180
Income Tax Payable 0
Common Stock 24,000
Retained Earnings 1,300
Sales Revenue 47,080
Salaries and Wages Expense 24,200
Utilities Expense 11,700
Rent Expense 0
Depreciation Expense 0
Income Tax Expense 0
Totals $ 74,740 $ 74,740
Other data not yet recorded at December 31:
1. Rent expired during the year, $1,120.
2. Depreciation expense for the year, $1,180.
3. Utilities used and unpaid, $8,200.
4. Income tax expense, $310.
Required:
Indicate the accounting equation effects of each required adjustment. (Enter all amounts as positive values.)
Answer and Explanation:
The accounting equation effects of each required adjustment is shown below:-
Transactions Assets
a. Prepaid rent - $1,280
b. Accumulated
depreciation - $1,180
c. NE
d. NE
Transactions = Liabilities + Stockholders' Equity
a. NE Rent expenses -$1,280
b. NE Depreciation expenses -$1,180
c. Accounts payable + $8,200 Utilities expenses -$8,200
d. Income tax payable + $310 Income tax expense -$310
Last year Electric Autos had sales of $190 million and assets at the start of the year of $330 million. If its return on start-of-year assets was 15%, what was its operating profit margin
Answer:
2.61%
Explanation:
The first step is to calculate the operating income
= ROE × assets
= 15/100 × $330,000,000
= 0.15 × $330,000,000
= $49,500,000
Therefore the operating profit margin can be calculated as follows
= operating income/sales
= $49,500,000/190,000,000
= 0.2605 × 100
= 2.61 %
A relocation of a short stretch of rural highway feeding into Route 390 northwest of Dallas is to be made to accommodate new growth. The existing road is now unsafe, and improving it is not an alternative. Alternate new route locations are designated as East and West. The initial investment by government highway agencies will be $3, 950,000 for East and $5, 500,000 for West. Annual highway maintenance costs will be $120,000 for East and 590,000 for the shorter location West. Relevant annual road user costs, considering vehicle operation, time end route, fuel, safety, mileage, and so on, are estimated as $880,000 for East and only $690,000 for West. Assume a 20 year service life and i = 7 %. C
1. What is the present worth of the benefits and costs of route West over route East? PW benefits of route West over route East: $ PW costs of route West over route East: $ Carry all interim calculations to 5 decimal places and then round your Final answer to the nearest dollar. The tolerance is plusminus 50. Using incremental D/C ratio analysis, which alternative should be selected?
2. Compute the appropriate B/C ratio(s) and decide whether East or West should be constructed.
Full question attached
Answer and Explanation:
Please find attached