Answer and Explanation:
The computation of price of the bonds is shown below:-
Interest on Bond = Bond Face Value × Interest rate × 6 ÷ 12 months
= $720,000 × 8% × 6 ÷ 12
= $28,800
Present Value of interest payments = Interest on bond × PVAF(i%, n)
i = semi annual discounting rate = 10% × 6 ÷ 12
= 5%
n = number of semi annual periods
= 20 years × 2 periods
= 40 periods
Present Value of interest payments = $28,800 × PVAF(5%, 40)
= $28,800 × 17.15909
= $494,182
Present Value of Redemption Value = Redemption Value × PVF(5%, 40)
= $720,000 × 0.142046
= $102,273
Price of Bonds = $494,182 + $102,273
= $596,455
1-b The Journal entries are shown below:-
a. Cash Dr, 596,455
Discount on Bonds Payable Dr, $123,545
To Bonds Payable $720,000
(Being the issuance of bonds is recorded)
b. Interest Expense Dr, $29,823 (596,455 × 10% × 6 ÷ 12)
To Discount on Bonds Payable $1,023
To Cash $28,800 ($720,000 × 8% × 6 ÷ 12)
(Being the first interest payment is recorded)
c. Interest Expense Dr, $29,874 (($596,455 + $1,023) × 10% × 6 ÷ 12)
To Discount on Bonds Payable $1,074
To Cash Dr, $28,800
($720,000 × 8% × 6 ÷ 12)
(To record the second interest payment)
d. Unrealized Holding Loss Dr, 1,448
To Fair Value Adjustment $1,448
(Being adjust the bonds to their fair value is recorded)
Working Notes:
1) Bonds Payable Value after adjusting Discount
= $596,455+$1,023+$1,074
= $598,552
Fair Value of Bonds as on Dec 31 = $600,000
Fair Value adjustment amount is
= $600,000 - $598,552
= $1,448
What are the economic problems
typically facing developing nations
like Malaguena?
Answer:
Developing countries were hit hard by the financial and economic crisis, although the impact was somewhat delayed. Every country had different challenges to master. The closer the developing countries are interconnected with the world economy, the crasser the effects. And the incipient recovery that is becoming noticeable is, for the time being, restricted to only a few countries and regions.
The crisis was transmitted primarily by trade and financial flows forcing millions back into poverty. Attainment of the Millennium Development Goals is seriously jeopardised in many countries. Many developing countries did not and do not have the resources to stimulate the economy and protect their socially disadvantaged populations to the same extent as the industrialised countries. However, many countries have made considerable efforts to mitigate the effects. Developing countries have also increased their cooperation with one another and are urgently demanding a greater voice in global economic affairs.
Explanation:
Answer:
Economic problems in the developing world include corruption, poor infrastructure, lack of skilled labor, political instability, weak protection of intellectual rights, and the possibility of contacts being canceled on a whim. Relatively few people have reaped the rewards of economic prosperity.basic level profession
Answer:
The basic level profession
Communication skills business communicator is a key point for every type of job. The ability to communicate effectively is very important for business relationships.Decision- Making skills one of the hardest things in our life is to make decisions. but it is also is one of the most important abilities that has a crucial role for us.Leadership skills are among the top qualities and competencies in the professional skills list.Organizational skills you need in the workplace can include general planning, coordinating resources, and meeting deadlines.Time Management skills are an important part of organizational skills.Flexibility is among the top abilities in the professional skills list.Stress Management skills is a good professional never allows stress to reflect his/ her job and tasksOriole Products manufactures two component parts: AJ40 and AJ60. AJ40 components are being introduced currently, and AJ60 parts have been in production for several years. For the upcoming period, 1,500 units of each product are planned for manufacturing. Assume that the only relevant overhead cost is for engineering change orders (any requested changes in product design or the manufacturing process). AJ40 components are expected to require 4 change orders and AJ60 only 2. Each AJ40 requires 1 machine hour, and each AJ60 requires 1.5 machine hours. The cost of a change order is $420.
Required:
Estimate the cost of engineering change orders for AJ40 and AJ60 components if Blue uses a traditional costing method and machine hours as the allocation base.
Answer:
Total allocated cost for AJ40 $189,000
Total allocated cost for AJ60 $283,500
Total $472,500
Explanation:
Calculation to Estimate the cost of engineering change orders for AJ40 and AJ60
First step is to calculate for the Total number of change orders
AJ40 AJ60
Units planned 1,500 1,500
÷No. of change orders 4 2
=Total number of change orders 375 +750=1,125
Second step is to for the Total cost of change order
AJ40 AJ60
Units planned 1,500 1,500
×Machine hours per unit 1 1.5
=Total machine hours required 1,500 + 2,250 =3,750
Third step is to find the Total cost of change order
AJ40 AJ60
Total number of change orders 375 750
× Cost of a change order $420 $420
=Total cost of change order $157,500 $315,00
Total cost of change order=$157,500 +$315,000
=Total cost of change order = $472,500
Now let Estimate the cost of engineering change orders for AJ40 and AJ60 using Traditional system
TRADITIONAL SYSTEM
Total allocated cost for AJ40 $189,000 (472,500*1,500/3,750)
Total allocated cost for AJ60 $283,500 (472,500*2,250/3,750)
Hence,
Total allocated cost for AJ40 $189,000+Total allocated cost for AJ60 $283,500
=$472,500
Sales and Purchase-Related Transactions Using Perpetual Inventory System The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system.
July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice.
5. Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30.
6. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the goods sold was $25,000.
7. Returned merchandise with an invoice amount of $6,850 purchased on July 5 from Kester Co.
13. Paid Hamling Co. on account for purchase of July 3.
15. Paid Kester Co. on account for purchase of July 5, less return of July 7.
21. Received cash on account from sale of July 6 to Parsley Co.
21. Sold merchandise on MasterCard, $108,000. The cost of the goods sold was $64,800.
22. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the goods sold was $10,000.
23. Sold merchandise for cash, $91,200. The cost of the goods sold was $55,000.
28. Paid Parsley Co. a cash refund of $7,150 for returned merchandise from sale of July 6. The cost of the returned merchandise was $4,250.
31. Paid MasterCard service fee of $1,650.
Required:
Journalize the transactions.
Answer:
General Journals
July 3.
Merchandise $62,650 (debit)
Accounts Payable : Hamling Co. $62,650 (credit)
Purchase of Merchandise on credit from Hamling Co
July 5.
Merchandise $33,450 (debit)
Account Payable : Kester Co $33,450 (credit)
Purchase of Merchandise on credit from Kester Co
July 6.
Account Receivable : Parsley Co $36,000 (debit)
Cost of Sales $25,000 (debit)
Sales Revenue $36,000 (credit)
Merchandise $25,000 (credit)
Sale of Merchandise on credit to Parsley Co
July 7.
Account Payable: Kester Co $6,850 (debit)
Merchandise $6,850 (credit)
Merchandise Returned to Kester Co
July 13.
Account Payable : Hamling Co. $62,650 (debit)
Discount Received $1,253 (credit)
Cash $61,397 (credit)
Payment of Merchandise supplied by Hamling Co. Net Cash Discount
July 15.
Account Payable : Kester Co. $26,600 (debit)
Discount Received $532 (credit)
Cash $26,068 (credit)
Payment of Merchandise supplied by Kester Co. Net Cash Discount
July 21.
Cash $108,000 (debit)
Cost of Sales $64,800 (debit)
Sales Revenue $108,000 (credit)
Merchandise $64,800 (credit)
Cash Sale of Merchandise
July 22.
Account Receivable : Tabor Co $16,650 (debit)
Cost of Sales $10,000 (debit)
Sales Revenue $16,650 (credit)
Merchandise $10,000 (credit)
Sale of Merchandise on credit to Tabor Co
July 23.
Cash $91,200 (debit)
Cost of Sales $55,000 (debit)
Sales Revenue $91,200 (credit)
Merchandise $55,000 (credit)
Cash Sale of Merchandise
July 28.
Sales Revenue $7,150 (debit))
Merchandise $4,250 (debit)
Account Receivable : Parsley Co $7,150 (credit)
Cost of Sales $4,250 (credit)
Refund for Merchandise Returned by Parsley Co
July 31.
Service Fees $1,650 (debit)
Cash $1,650 (credit)
Service Fees Paid
Explanation:
See the journal entries and their narrations prepared above.
Three categories of activities (operating, investing, and financing) generate or use the cash flow in a company. In the following , identify which type of activity is described by each statement. (Operating Activity Investing Activity Financing Activity)
a. Yum Co. uses cash to repurchase 10% of its common stock.
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity.
c. D and W Co. sells its last season’s inventory to a discount store.
d. A company records a loss of $70,000 on the sale of its outdated inventory.
Answer:
a. Yum Co. uses cash to repurchase 10% of its common stock. (Financing activity)
b. DigiInk Printing Co. buys new machinery to ramp up its production capacity. (Investing activity)
c. D and W Co. sells its last season’s inventory to a discount store. (Operating activity)
d. A company records a loss of $70,000 on the sale of its outdated inventory. (Operating activity)
Explanation:
Cash flow statement shows how cash is used and obtained in a business. There are different activities that influence cash flow. Below are the activities:
- Operating activities are those that include normal business operations like buying and selling of inventory, interest payments, and salaries.
- Investing activities involves use of cash for investment like purchase or sale of assets, merger and acquisitions payments, and purchase of equipment.
- Financing activities includes cash used to purchase or sell equity such as shares, payment of dividends, and repayment of principal from debt
Emily Lim owns and runs an ice cream parlor in San Diego. Last year, she had sales of $430,000 and an average tax rate of 34%. She spent $43,000 on ingredients, $21,500 on utilities, and $77,400 to rent the premises Emily has a few employees and paid them $86,000 in wages in total. She also paid herself a salary of $64,500 and spent $43,000 to pay for employee benefits A few years ago, Emily borrowed money to buy the ice making equipment. Last year, she paid $21,500 in interest on that loan. Depreciation for the equipment was $12,900 .
1. What was operating income (EBIT) for the year?
2. What was net income for the year?
Answer:
1). Operating Income (EBIT) = Sales - Expenses - Depreciation
Operating Income (EBIT) = $430,000 - ($43,000 - $21,500 - $77,400 - $86,000 - $64,500 - $43,000) - $12,900
Operating Income (EBIT) = $430,000 - $335,400 - $12,900
Operating Income (EBIT) = $81,700
2). Net Income = (EBIT - Interest)*[1 - t]
Net Income = ($81,700-$21,500)*(1-0.34)
Net Income = $60,200*0.66
Net Income = $39,732
Laws governing sales are only enacted when the rights of an organization are infringed upon
True
False
Answer:
This is true for odyssey-ware
Explanation:
At the end of each of the next four years, a new machine is expected to generate net cash flows of $8,000, $12,000, $10,000, and $15,000, respectively. What are the cash flows worth today if a 3% discount rate is appropriate
Answer:
Total PV= $41,556.88
Explanation:
Giving the following information:
Cash flows:
1= $8,000
2= $12,000
3= $10,000
4= $15,000
Interest rate= 3%
To calculate the present value, we need to use the following formula on each cash flow:
PV= FV/(1+i)^n
PV1= 8,000/1.03= 7,767
PV2= 12,000/1.03^2= 11,311.15
PV3= 10,000/1.03^3= 9,151.42
PV4= 15,000/1.03^4= 13,327.31
Total PV= $41,556.88
Sadie Equestrian Services established a petty cash fund in the amount of $500 on June 1, 2013. On June 30, a review of the petty cash vouchers showed disbursements for the following: Stamps $60 Cab Fare for Ms. Sadie to attend meeting downtown $28 Dinner for employees working overtime $185 Messenger Costs for delivering legal documents $54 Advance to salesperson for attending networking event $25 Purchase of emergency office supplies $69. The Petty cash fund had a remaining cash balance of $77. The proprietor, Ms. Sadie also decided to increase the size of the Petty Cash fund to $700. Journalize the following:
a) Transaction to establish
Petty Cash Fund
b) Transaction to replenish
Petty Cash Fund on June 30
c) Transaction to increase the size of the
Petty Cash Fund
Answer:
a. Date Description Debit Credit
1-Jun Petty cash fund $500
Cash $500
[To open the petty cash fund]
b. Date Description Debit Credit
30-Jun Stamps 60
Cab fare 28
Dinner expense 185
Messenger cost 54
Advance to sales person 25
Office supplies 69
Cash short and over 2
Petty cash fund 423
[To replenish the petty cash fund]
c. Date Description Debit Credit
June 30 Petty cash [$700-$500] $200
Cash $200
[To increase the petty cash fund]
If there are external or spillover benefits associated with consumption and production of a product, it can be said that the:
Answer:
supply curve for the product lies too far to the right to provide an efficient allocation of resources
Explanation:
Please find attached an image of the full question
A good has positive externality if the benefits to third parties not involved in production is greater than the cost. an example of an activity that generates positive externality is research and development. Due to the high cost of R & D, they are usually under-produced. Government can encourage the production of activities that generate positive externality by granting subsidies.
Goods that generate spill over benefits are usually underproduced and the supply curve lies too far to the right to provide an efficient allocation of resources
Suppose you decide (as did Steve Jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video recorders, and cell phones. Your initial market is the student body at your university. Once you have established your company and set up procedures for operating it, you plan to expand to other colleges in the area and eventually to go nationwide. At some point, hopefully sooner rather than later, you plan to go public with an IPO and then to buy a yacht and take off for the South Pacific to indulge in your passion for underwater photography.
1. What is an agency relationship? When you first begin operations, assuming you are the only employee and only your money is invested in the business, would any agency conflicts exist? 2. If you expanded and hired additional people to help you, might that give rise to agency problems?3. Suppose you need additional capital to expand and you sell some stock to outside investors. If you maintain enough stock to control the company, what type of agency conflict might occur?4. List three provisions in the corporate charter that affect takeovers.5. Briefly describe the use of stock options in a compensation plan. What are some potential problems with stock options as a form of compensation?6. What is block ownership? How does it affect corporate governance?7. Briefly explain how regulatory agencies and legal systems affect corporate governance.
Answer:
The solution can be defined as follows:
Explanation:
In the question, there are multiple choices that are defined, in which except the first three choices other are belong to a different topic, that's why we define only three choices.
In option 1:
There can be relationships between both the organization or managers as leaders assign making decisions with managers. This same relation could lead to conflicts between both the parties concerned. The said conflict is named an issue/confrontation agency. The confrontation between both the supervisors and employees and between owners and creditors may also exist.
There would be no dispute with both the department. Its reason for this is that organization conflict may occur unless the business owner does not hold 100% of the common stock of a corporation.
In that case, they will manage the operations of your company as the sole employee. Users will have the right to obtain all revenue earned from the company. It will keep owning 100% of a greater corporate share because you put the money in the company. There have been no external agencies that borrow. There will be no chance of every confrontation.
In option 2:
Yeah, once you recruit people to take on responsibilities or give them their proper decision-making authority, the conflict and you and your workers will occur. Disagreements may well be caused by differences of opinions or even by the sharing of profits you would have the right to receive when you operated together.
In option 3:
\Yeah, it can result in conflicts with the organization to hold shares out to buyers. Scandals among shareholders and managers and between borrowers and shareholders and between management, shareholders and debt holders may arise as a type of conflict.
The CIS Department at Tiny College maintains the Free Access to Current Technology (FACT) library of e-books. FACT is a collection of current technology e-books for use by faculty and students. Agreements with the publishers allow patrons to electronically check out a book, which gives them exclusive access to the book online through the FACT website, but only one patron at a time can have access to a book. A book must have at least one author but can have many. An author must have written at least one book to be included in the system but may have written many. A book may have never been checked out but can be checked out many times by the same patron or different patrons over time. Because all faculty and staff in the department are given accounts at the online library, a patron may have never checked out a book or they may have checked out many books over time. To simplify determining which patron currently has a given book checked out, a redundant relationship between BOOK and PATRON is maintained.
Required:
Write a query that will display all the Books that were published in 2016.
Answer:
Select BOOK_TITLE, BOOK_YEAR, BOOK_SUBJECT from book order by BOOK_SUBJECT asc, BOOK_YEAR desc, BOOK_TITLE asc;
BOOK_PUBLISH 2016;
Explanation:
The books subject will be displayed in ascending order, book year will be displayed in descending orders and book title will be displayed in ascending order. The query used will display all the books entered in the system. If there is specific year in which the search is used then the query will be update with year number instead of year such as BOOK_PUBLISH, 2016; This will show the list of all books that are published in 2016.
Determine whether each statement describes the income effect, the substitution effect, or neither. Assume that all other variables are held constant. The price of lobster doubles, making Henri feel less wealthy. As a result, Henri buys fewer lobsters. The price of chicken falls by $0.75 a pound. Since chicken is now relatively less expensive than ground beef, Mary buys more chicken and less beef. The average price of a DVD falls by 15 percent. Tom buys more DVDs because his monthly movie budget can now stretch further. Model Planes Incorporated reduces production of its wooden plane product line. Jessica sees that the price of orange juice is higher this week. She decides to buy less orange juice and more apple juice because orange juice is relatively more expensive.
Answer: See explanation
Explanation:
Income effect is when the demand for a particular good or service changes because the real income of the person has changed.
Substitution effect arises when there is a reduction in the sales for a good or service due to a price rise and therefore the consumers have switched to a cheaper alternative. For example, if the price of beef rises, the consumers may shift and purchase more of chicken.
Based on the above scenario, the following will then be:
• The price of lobster doubles, making Henri feel less wealthy. As a result, Henri buys fewer lobsters.
Income effect
Henry's real income has changed, he has more money and hence reduces the purchase for lobsters because he sees it as inferior good.
• The price of chicken falls by $0.75 a pound. Since chicken is now relatively less expensive than ground beef, Mary buys more chicken and less beef.
Substitution effect
Mary has moved to a cheaper alternative in this situation.
• The average price of a DVD falls by 15 percent. Tom buys more DVDs because his monthly movie budget can now stretch further.
Income effect
• Model Planes Incorporated reduces production of its wooden plane product line.
No effect
No effect here as it's neither income effect not substitution effect.
• Jessica sees that the price of orange juice is higher this week. She decides to buy less orange juice and more apple juice because orange juice is relatively more expensive.
Substitution effect
The reduction in the quantity demanded of lobsters describes the income effect.
Mary substituting chicken for ground beef is an example of the substitution effect.
The increase in the quantity demanded of DVDs describes the income effect.
Reduction in the production of wooden plane does not describe the income or substitution effect.
The increase in the demand for orange juice is an example of the substitution effect.
The substitution effect when a change in the price of a good leads consumers to substitute the demand for the good with other goods. If the price of the good increases, consumers buy cheaper substitutes. If the price of the good declines, consumers reduce the consumption of the substitute and increase the demand for that good.
The income effect is when an increase in price lowers consumer's purchasing power, holding money income constant. This would lead to a fall in the quantity demanded of the good. When price decreases, purchasing power increases and consumers demand more of the good.
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On its December 31, 2017, balance sheet, Calgary Industries reports equipment of $370,000 and accumulated depreciation of $74,000. During 2018, the company plans to purchase additional equipment costing $80,000 and expects depreciation expense of $30,000. Additionally, it plans to dispose of equipment that originally cost $42,000 and had accumulated depreciation of $5,600. The balances for equipment and accumulated depreciation, respectively, on the December 31, 2018 budgeted balance sheet are:
a) $450,000; $98,400.
b) $450,000; $104,000.
c) $408,000; $104,000.
d) $328,000; $74,000.
e) $408,000; $98,400.
Quiz Instructions
Question 1
5 pts
(02.01 LC)
Which of these factors is likely to have the greatest influence on purchases by consumers to choose a different
option than originally intended?
The price of a good or service
The price of alternatives or substitutes
Their own income
Their personal preferences
Answer:
The price of alternatives or substitutes
Reason: When there are alternatives or substitutes, this means that the consumer can then get better options.
Evan has a bachelor’s degree in ethics and Human Resources and he has extensive experience working with employees and managers regrading ethics especially in the areas of ethical dilemmas in his current position he has assisted extensively in determining if the company decisions are both ethical and lawful. Which position in the company does Evan background make him ideally suited for
Answer:
Ethics Officer
Explanation:
An Ethics Officer is responsible for looking at every perspective of an organization's procedures to ensure that they are consistent with the organization's code of ethics. Their principal task is to develop a robust ethical culture across all departments.
As the ethics officer, Evans will serve as the company's internal control point for ethics. He will handle allegations /complaints on indecencies and conflicts of interest. Evans will render corporate leadership and advice on ethical issues in governance.
As operations manager, you are concerned about being able to meet sales requirements in the coming months. You have just been given the following production report: JAN FEB MAR APR Units produced 2,300 1,800 2,800 3,000 Hours per machine 325 200 400 320 Number of machines 3 5 4 4 Find the average of the monthly productivity figures (units per machine hour). (Do not round intermediate calculations. Round your answer to 2 decimal places.) Average productivity 2.06 correct units per machine hour
Answer: 2.36
Explanation: Hours per machine * # of machines
325 * 3 = 975
Units produced/ Machine Hour
2,300/975 = 2.36
The average of the monthly productivity figures is 2.36.
Who are managers?"Manager can be defined as a person who is in charge of managing or looking after an organization he is an acting leader who helps in delegating the responsibilities as well as setting the goals also he possesses some leadership qualities that help in running an organization smoothly."
Hours per machine 325
In total there are 3 units that are producing that the operation manager needs to focus on intaking the decision.
Total machine hour is calculated as:
Hours per machine * number of machines
= 325 * 3
= 975
The average of monthly productivity that the operating manager needs to incur for the smooth running of the business is:
Units produced/ Machine Hour
= 2,300/975
= 2.36
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ClevelandInc. leased a new crane to Abriendo Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $48,555 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $240,000, and a cost to Cleveland of $240,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Cleveland and Abriendo adjust and close books annually at December 31. Collectibility of the lease payments is probable. Abriendo’s incremental borrowing rate is 8%, and Cleveland’s implicit interest rate of 8% is known to Abriendo. Discuss what should be presented in the balance sheet, the income statement, and the related notes of both the lessee and the lessor at December 31, 2020.
Answer:
The correct answer is "2,40,000". The further explanation is given below.
Explanation:
The given fair value is:
= $240,000
The presentation in books of lessee will be:
⇒ [tex]Record \ of \ assets =PV \ of \ Lease \ Payment +Unguaranteed \ residual \ value[/tex]
⇒ [tex]Annuity \ value \ of \ 8 \ percent \5 \ year\times 48555+Anuity \ value \ of \ 5th \ year\times 45000[/tex]
On putting the values, we get
⇒ [tex]3.9927\times 48555+0.6806\times 45000[/tex]
⇒ [tex]193865.54+30627[/tex]
⇒ [tex]224492.54 \ i.e., 2,24,493[/tex] ($)
Presentation in books of Lessor , the fair value of assets will be
= [tex]2,40,000[/tex] ($)
You purchased a bond at a price of $13,100. In 15 years when the bond matures, the bond will be worth $30,000. It is exactly 7 years after you purchased the bond and you can sell the bond today for $21,300. If you hold the bond until it matures, what annual rate of return will you earn from today
Answer:
The annual rate of return is 2.10%
Explanation:
The computation of the annual rate of return is shown below:
Let us assume the annual rate of return be K
K is
= {Worth of the bond - selling price of the bond today)^(1 ÷ remaining time period) - 1
= [$30,000 ÷ $21,300]^(1 ÷ 8) - 1
= 2.10%
Hence, the annual rate of return is 2.10%
The same is to be considered
Oct. 1 Stockholders invest $30,000 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $36,000.
3 Buys office furniture for $3,800, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $10,800 (not paid by Roads at this time).
10 Receives cash of $140 as commission for acting as rental agent renting an apartment.
27 Pays $700 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $3,000 in salary for October.
Required:
Prepare the debit—credit analysis for each transaction.
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
Sales and purchase-related transactions using perpetual inventory system The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual inventory system.
July 3. Purchased merchandise on account from Hamling Co., list price $85,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $960 added to the invoice.
5. Purchased merchandise on account from Kester Co., $47,550, terms FOB destination, 2/10, n/30.
6. Sold merchandise on account to Parsley Co., $16,680, terms n/15. The cost of the goods sold was $9,440.
7. Returned merchandise with an invoice amount of $13,500 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3.
15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co.
21. Sold merchandise on MasterCard, $212,670. The cost of the goods sold was $144,350.
22. Sold merchandise on account to Tabor Co., $60,200, terms 2/10, n/30. The cost of the goods sold was $33,820.
23. Sold merchandise for cash, $38,610. The cost of the goods sold was $22,180. 28. Paid Parsley Co. a cash refund of $6,070 for returned merchandise from sale of July 6.
The cost of the returned merchandise was $3,630. 31.
Paid MasterCard service fee of $3,510.
Instructions Journalize the transactions.
Answer:
July 3. Purchased merchandise on account from Hamling Co., list price $85,000, trade discount 25%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $960 added to the invoice.
Dr Merchandise inventory 63,435
Cr Accounts payable 63,435
July 5. Purchased merchandise on account from Kester Co., $47,550, terms FOB destination, 2/10, n/30.
Dr Merchandise inventory 46,599
Cr Accounts payable 46,599
July 6. Sold merchandise on account to Parsley Co., $16,680, terms n/15. The cost of the goods sold was $9,440.
Dr Accounts receivable 16,680
Cr Sales revenue 16,680
Dr Cost of goods sold 9,440
Cr Merchandise inventory 9,440
July 7. Returned merchandise with an invoice amount of $13,500 purchased on July 5 from Kester Co.
Dr Accounts payable 13,230
Cr Merchandise inventory 13,230
July 13. Paid Hamling Co. on account for purchase of July 3.
Dr Accounts payable 63,435
Cr Cash 63,435
July 15. Paid Kester Co. on account for purchase of July 5, less return of July 7.
Dr Accounts payable 33,369
Cr Cash 33,369
July 21. Received cash on account from sale of July 6 to Parsley Co.
Dr Cash 16,680
Cr Accounts receivable 16,680
July 21. Sold merchandise on MasterCard, $212,670. The cost of the goods sold was $144,350.
Dr Cash (assuming MasterCard pays immediately) 212,670
Cr Sales revenue 212,670
Dr MasterCard fee expense 3,510
Cr MasterCard fee payable 3,510
Dr Cost of goods sold 144,350
Cr Merchandise inventory 144,350
I recorded the transaction this way because on July 31, a payment to MasterCard is recorded. Generally the transaction should have been recorded differently since MasterCard withholds its fee automatically, you do not pay it.
Dr Cash (assuming MasterCard pays immediately) 209,160
Dr MasterCard fee expense 3,510
Cr Sales revenue 212,670
July 22. Sold merchandise on account to Tabor Co., $60,200, terms 2/10, n/30. The cost of the goods sold was $33,820.
Dr Accounts receivable 58,996
Cr Sales revenue 58,996
Dr Cost of goods sold 33,820
Cr Merchandise inventory 33,820
July 23. Sold merchandise for cash, $38,610. The cost of the goods sold was $22,180.
Dr Cash 38,610
Cr Sales revenue 38,610
Dr Cost of goods sold 22,180
Cr Merchandise inventory 22,180
July 28. Paid Parsley Co. a cash refund of $6,070 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,630.
Dr Sales revenue 6,070
Cr Cash 6,070
Dr Merchandise inventory 3,630
Cr Cost of goods sold 3,630
July 31. Paid MasterCard service fee of $3,510.
Dr MasterCard fee payable 3,510
Cr Cash 3,510
Alameda Manufacturing manufactures a variety of wooden picture frames using recycled wood from old barns. Alameda Manufacturing has reported the following costs for the previous year. Assume no production inventories.Advertising………………………………………………………………….. $25,600Cost of hardware (hangers, decorations, etc)…………….… $42,300Cost of wood…………………………………………………………..... .$121,200Depreciation on production equipment…………………….... $32,000Factory property taxes……………………………………………….....$15,500Factory rent……………………………………………………………..….. $50,000Glue……………………………………………………………………...…….… $3,030Production supervisor salary…………………………………….. $41,200Sales manager salary…………………………………………………. $41,500Utilities for factory………………………………………………………. $27,800Wages for maintenance workers.......................................$33,200Wages of assembly workers..............................................$87,400Wages of finishing workers...............................................$74,100A compute the direct material cost 1a.____ $163,500 _______Compute the direct labor cost. 1b.________ $161,500 ________Compute the manufacturing overhead. 1c.____ $232,730 ______Compute the total manufacturing cost. 1d.____ $557,730 _____Compute the prime cost. 1e_________$325,000 ______Compute the conversion cost. 1f.____ $394,230 _____Compute the total period cost 1g.____ $67,100 ________
Answer:
Direct Material Cost
= Cost of hardware + cost of wood
= 42,300 + 121,200
= $163,500
Direct labor
= Wages of Assembly workers + Finishing workers
= 87,400 + 74,100
= $161,500
Manufacturing Overhead
= Depreciation + Factory prop. taxes + Factory rent + Glue + Production Supervisor salary + Utilities for factory + Wages for maintenance workers
= 32,000 + 15,500 + 50,000 + 3,030 + 41,200 + 27,800 + 33,200
= $202,730
Prime Cost
= Direct labor + Direct material
= 161,500 + 163,500
= $325,000
Conversion Cost
= Direct labor + Manufacturing Overhead
= 161,500 + 202,730
= $364,230
Total Period Cost
= Advertising + Sales Manager's salary
= 25,600 + 41,500
= $67,100
Atlas Enterprises Inc. manufactures elliptical exercise machines and treadmills. The products are produced in its Fabrication and Assembly production departments. In addition to production activities, several other activities are required to produce the two products. These activities and their associated activity rates are as follows:
Activity Activity Rate
Fabrication $34 per machine hour
Assembly $14 per direct labor hour
Setup $46 per setup
Inspecting $26 per inspection
Production scheduling $14 per production order
Purchasing $8 per purchase order
The activity-base usage quantities and units produced for each product were as follows:
Elliptical
Activity Base Machines Treadmills
Machine hours 663 415
Direct labor hours 180 78
Setups 21 9
Inspections 119 181
Production orders 16 9
Purchase orders 90 50
Units produced 268 134
Required:
Use the activity rate and usage information to calculate the total activity cost and activity cost per unit for each product.
Answer:
Results are below.
Explanation:
First, we need to allocate overhead to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Elliptical:
Fabrication= 34*663= 22,542
Assembly= 14*180= 2,520
Setup= 46*21= 966
Inspecting= 26*119= 3,094
Production scheduling= 14*16= 224
Purchasing= 8*90= 720
Total allocate cost= $30,066
Unitary cost= 30,066/268= $112.19
Treadmills:
Fabrication= 34*415= 14,110
Assembly= 14*78= 1,092
Setup= 46*9= 414
Inspecting= 26*181= 4,706
Production scheduling= 14*9= 126
Purchasing= 8*50= 400
Total allocate cost= $20,848
Unitary cost= 20,848/134= $155.58
what is Framing in a conversation?
Answer:
How someone frames an issue affects how it is seen by others and focuses their attention on specific aspects of it. Framing is the basis of approaching a particular audience to connect. Although framing seems very simple conceptually, the reality is that most people don't do it well.
Explanation:
A man invests his savings in two accounts, one paying 6 percent and the other paying 10 percent simple interest per year. He puts twice as much in the lower-yielding account because it is less risky. His annual interest is 4202 dollars. How much did he invest at each rate?
Answer:
Amount at 6% = $38,200Amount at 10% = $19,100Explanation:
Assume x is the amount in the 10% account.
The formula to solve would be;
(2x * 6%) + x * 10% = 4,202
0.12x + 0.1x = 4,202
0.22x = 4,202
x = 4,202/0.22
x = $19,100
The amount he invested at 6% is therefore;
= 19,100 * 2
= $38,200
The purchase of office equipment at a cost of $7,600 with an immediate payment of $4,200 and agreement to pay the balance within 60 days is recorded by the purchaser with:_____.
A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.
B. A debit of $7,600 to Office Equipment, a debit of $4,200 to Accounts Receivable, and a credit of $3,400 to Accounts Payable.
C. A debit of $3,400 to Accounts Receivable, a debit of $4,200 to Cash, and a credit of $7,600 to Office Equipment.
D. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Receivable.
Answer:
A. A debit of $7,600 to Office Equipment, a credit of $4,200 to Cash, and a credit of $3,400 to Accounts Payable.
Explanation:
Recognize the Asset - Office Equipment and Accounts Payable Accounts as these are increasing. De-recognize the Cash Account as this account is decreasing.
A local government operates on a calendar-year basis. Prepare journal entries to record the following transactions and events for calendar year 2018.
1. On February 1, 2018, borrowed $400,000 on tax anticipation notes (TANs). The TANs will be repaid with 1.0 percent interest on January 31, 2019.
2. To prepare for issuing financial statements for 2018, accrue interest on the TANs through December 31, 2018.
3. Invested $100,000 in a certificate of deposit (CD) on April 1, 2018. The CD, which pays interest of 0.8 percent, will mature on September 30, 2018.
4. The CD matured on September 30, 2018.
Answer:
Feb. 1 DR Cash $400,000
CR Tax anticipation notes $400,000
Dec 31 DR Expenditures - Interest $3,666.67
CR Accrued Interest Payable $3,666.67
Working
February to December = 11 months
Interest = 400,000 * 1.0% * 11/12 months = $3,666.67
April 1 DR Investments $100,000
CR Cash $100,000
Sept. 30 DR Cash $50,200
CR Investments $50,000
Interest Income $200
Working
Interest Income = 50,000 * 0.8% * 6/12 months
= $200
Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report.
October 31 (in millions) 2007 2006
Accounts receivable, net $13,420 $10,873
HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts.
For the fiscal years ended October 31 (in millions)
2007 2006 2005
Allowance for doubtful accounts-accounts receivable
Balance, beginning of period $220 $227 $286
Increase in allowance from acquisition 245 3 4
Addition of bad debts provision 32 37 17
Deductions, net of recoveries (29) (48) (76)
Balance, end of period $226 $220 $227
Required:
a. What is the gross amount of accounts receivables for HPQ in fiscal 2007 and 2006?
b. What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2007 and 2006?
c. What amount of bad debts expense did HPQ report each year 2007 through 2006? What amount was actually written off?
Answer:
The answer is below
Explanation:
Interpreting the Accounts receivable Footnote Hewlett-Packard Company (HPQ) reports the following in its 2007 10-K report. We have the following:
(a) What is the gross amount of accounts receivables for HPQ in fiscal 2007 and 2006?($ millions)2007, 2006
Gross accounts receivable for year 2007 = $13,646 for year 2006 = 11,093
(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2007 and 2006?(Round your answers to two decimal places.)($ millions) 2007 2006 Percentage of uncollectible accounts to gross accounts receivable for year 2007 = 1.66% for year 2006 =1.98 %
(c)What amount of bad debts expense did HPQ report each year 2005 through 2007? What amount was actually written off? ($ millions)2007, 2006, 2005,
Bad debt expense for year 2007 = $32. Year 2006 = $37. Year 2005 = $17
Amount actually written off for year 2007 = $29. Year 2006 = $48 Year 2005 = $76
Darryl, a cash basis taxpayer, gave 1,000 shares of Copper Company common stock to his daughter on September 29, 2011. Copper Company is a publicly held company that has declared a $1.00 per share dividend on September 30 every year for the last 20 years. Just as Darryl had expected, Copper Company declared a $1.00 per share dividend on September 30th, payable on October 15th, to stockholders of record as of October 10. The daughter received the $1,000 dividend on October 18, 2011. How does this information impact who must recognize the dividend as income?a. Darryl must recognize the $1,000 dividend as his income because he knew the dividend would be paid.b. Darryl must recognize $750 of the dividend because he owned the stock for three fourths of the year.c. Darryl must recognize the income of $1,000 because he constructively received the $1,000.d. The daughter must recognize the income because she owned the stock when the dividend was declared and she received the $1,000.e. None of the above
Answer:
d. The daughter must recognize the income because she owned the stock when the dividend was declared and she received the $1,000.
Explanation:
A stock of a corporation is the shares of all the ownership of the corporation earnings, assets.
The declaration date (or announcement date) of a stock is the date in which the board of directors release a statement about the dividend size and its payment date. Only the owners of the stock are the declaration date would receive the dividend payment.
Since the daughter owned the stock at the declaration date, she must recognize the income.
Your parts supplier gives you one-quarter of a year to pay for parts ordered today, or offers you a discount if you pay cash at purchase. You have just purchased $94,500 worth of parts from your supplier and the discount is at an annual rate of 10%. How much will you pay for the parts if you pay today
Answer: $92,275
Explanation:
The amount you will pay today is the present value of the purchase price given a 10% discount for a quarter of a year.
= 94,500/ (1 + 10%) ^ 1/4 year
= 92,274.91147
= $92,275