Correct options read:
A. $0
B. $500,000
C. $700,000
D. $1,000,000
Answer:
C. $700,000
Explanation:
Note only payments made on this sale that fall under the year 2018 is accounted for. Hence, we can make the following conclusions:
Total payment due: $5 per unit x 200,000 = $1,000,000.Cavanaugh paid 40% of the contract price on September 25, 2018 = $400,000 (40% or 0.4 x $1,000,000).Also since half of the units were delivered on November 15, 2018, and he agreed to pay the rest in equal installments, we expect him to pay half the $600,000 left:
units were delivered on November 15, 2018 = $300,000 paid.Total payments in the year:
September 25, 2018; $400,000 + $300,000; November 15, 2018 = $700,000.
Identifying type and normal balances of accounts Lo C4 For each of the following (1) identify the type of account as an asset, liability equity, revenue, or expense; (2) identify the normal balance of the account, and (3) select debit (Dr or credit (Cr) to identify the kind of entry that would increase the account balance.
Account Type of Account Normal Balance Increase (Dr. or C
a. Land
b. Cash
c. Legal Expense
d. Prepaid Insurance
e. Accounts Receivable
f. Dividends
g. License Fee Revenue
h. Uneaned Revenue
i. Fees Earned
j. Equipment
k. Notes Payable
l. Common Stock
Answer:
a. Land - Asset, Debit, Dr
b. Cash - Asset, Debit, Dr
c. Legal Expense - Expense, Debit, Dr
d. Prepaid Insurance - Asset, Debit, Dr
e. Accounts Receivable - Asset, Debit, Dr
f. Dividends - Equity, Credit, Cr
g. License Fee Revenue - Revenue, Credit, Cr
h. Uneaned Revenue - Liability, Credit, Cr
i. Fees Earned - Revenue, Credit, Cr
j. Equipment - Asset, Debit, Dr
k. Notes Payable - Liability, Credit, Cr
l. Common Stock - Equity, Credit, Cr
Explanation:
Assets, liabilities and equity are the elements of a balance sheet. These 3 elements form the accounting equation which is given as
Assets = Liabilities + Equity
Assets usually have a debit balance while equity and liabilities are usually credit balances. Expenses like assets usually have a debit balance while revenue usually has a credit balance.
The balance in the equipment account is $3,150,000, and the balance in the accumulated depreciation—equipment account is $2,075,000. a. What is the book value of the equipment? $fill in the blank 1 b. Does the balance in the accumulated depreciation account mean that the equipment's loss of value is $2,075,000? , because depreciation is an allocation of the of the equipment to the periods benefiting from its use.
Answer:
A. $1,075,000
B. No
Explanation:
A. Calculation for the book value of the equipment
Using this formula
Book value of the equipment=Equipment account -Accumulated depreciation—equipment account
Let plug in the formula
Book value of the equipment= $3,150,000-$2,075,000
Book value of the equipment=$1,075,000
Therefore the book value of the equipment will be $1,075,000
(b) NO the balance in the accumulated depreciation account does NOT mean that the equipment's loss of value is the amount of $2,075,000.
When should you use capitalization?
Answer:
you should use capitalization at the beginning of a sentence. you should also use capitalization for pronouns. names of things for example cities and states people names etc
Mackenzie wants to purchase a new sofa for $900. Her brother tells her that if she can come up with 75% of the purchase price, he will lend her the rest of the amount. If Mackenzie produces the required amount, what will be the amount of the loan she receives from her brother?
Answer:
$225
Explanation:
The cost of the new sofa is $900.
Mackenzie need to raise 75% of the cost price.
Her brother will lend her the balance, which is equivalent to 75% of the cost price.
Mackenzie needs to raise
= 75% of 900
=75/100 x 900
=$675
Her brother will lend her
= $900 - $675
=$225
g A department store chain has 15,100 shares of common stock outstanding at a price per share of $75 and a rate of return of 14%. The company also has 400 bonds outstanding, with a par value of $1,500 per bond. The pretax cost of debt is 6.5% and the bonds sell for 98.2% of par. What is the firm's WACC if the tax rate is 29%
Answer:
10.79%
Explanation:
WACC = Pretax cost of debt*(1 - tax rate)*[(Number of bonds*Par value *selling price) / (Number of bonds*Par value*Selling price*Number of shares *Price per share)] + Rate of return*[(Number of shares*Price per share) / (Number of bonds*Par value*Selling price + Number of shares*Price per share)]
WACC = 0.065 *(1 - 0.29) * [(400*$1,500*98.2%) / (400*$1,500*98.2% + 15,100*$75)] + 0.14 x [(15,100*$75) / (400*$1,500*98.2% + 15,100*$ 75)]
WACC = 4.615%*[$ 589,200 / ($589,200 + $1,132,500)] + 0.14*[$1,132,500 / ($589,200 + $1,132,500)]
WACC= 4.615%*$589,200 / $1,721,700 + 0.14*$ 1,132,500/$ 1,721,700
WACC = 4.615%*0.342219899 + 14%*0.657780101
WACC = 1.579344834% + 9.208921415%
WACC = 10.79%
On January 1, 2022, Cullumber Company had a balance of $359,500 of goodwill on its balance sheet that resulted from the purchase of a small business in a prior year. The goodwill had an indefinite life. During 2022, the company had the following additional transactions
Jan. 2 Purchased a patent (7-year life) $313,950.
July 1 Acquired a 8-year franchise; expiration date July 1, 2,030, $583,200.
Sept. 1 Research and development costs $176,500.
Prepare the necessary entries to record the transactions related to intangibles. All costs incurred were for cash. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Date Account Titles and Explanation Debit Credit
SHOW LIST OF ACCOUNTS
LINK TO TEXT LINK TO VIDEO
Make an entry as of December 31, 2022, recording any necessary amortization. (Round answers to 0 decimal places, e.g. 125. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.)
Account Titles and Explanation Debit Credit
Indicate what the intangible asset account balances should be on December 31, 2022.
Patent $
Franchise $
Answer:
1. Jan 2
Dr Patent $313,950
Cr Cash $313,950
July 1
Dr Franchise $583,200
Cr Cash $583,200
Sept 1
Dr Research and development expense $176,500
Cr Cash $176,500
2. Dr Amortization expense $81,300
Cr Patent $44,850
Cr Franchise $36,450
Explanation:
1. Preparation of the necessary entries to record the transactions related to intangibles.
Jan 2
Dr Patent $313,950
Cr Cash $313,950
July 1
Dr Franchise $583,200
Cr Cash $583,200
Sept 1
Dr Research and development expense $176,500
Cr Cash $176,500
2. Preparation to the journal entry as of December 31, 2022, recording any necessary amortization.
December 31, 2022
Dr Amortization expense $81,300
($44,850+$36,450)
Cr Patent $44,850
($313,950/7 years)
Cr Franchise $36,450
($583,200/8 years*6/12)
Presented below are a number of operational guidelines and practices that have developed over time. Select the assumption, principle, or constraint that most appropriately justifies these procedures and practices.
a. Fair value changes are not recognized in the accounting records.
b. Financial information is presented so that investors will not be misled.
c. Intangible assets are amortized over periods benefited.
d. Agricultural companies use fair value for purposes of valuing crops.
e. Each enterprise is kept as a unit distinct from its owner or owners.
f. All significant post-balance-sheet events are disclosed.
g. Revenue is recorded when the product is delivered.
Answer:
a. Fair value changes are not recognized in the accounting records.
Appropriate Selection: Historical Cost Principle
b. Financial information is presented so that investors will not be misled.
Appropriate Selection: Full Disclosure Principle
c. Intangible assets are amortized over periods benefited.
Appropriate Selection: Expense Recognition Principle
d. Agricultural companies use fair value for purposes of valuing crops.
Appropriate Selection: Measurement Principle
e. Each enterprise is kept as a unit distinct from its owner or owners.
Appropriate Selection: Economic entity assumption
f. All significant post-balance-sheet events are disclosed.
Appropriate Selection: Full Disclosure Principle
g. Revenue is recorded when the product is delivered.
Appropriate Selection: Revenue Recognition Principle
In each of the following areas, give one example in which the government is involved as a producer, a regulator, or a purchaser of final goods and services distributed directly to individuals or used within government:______.
a. Education
b. Utilities
c. Transportation
d. Credit Markets
e. Insurance markets
f. Food
g. Housing
Answer:
a. Education
Producer = Provides public schools
Regulator = Government sets graduation requirements
Purchaser of goods = In awarding scholarships, the government is paying for school fees and buying education.
b. Utilities
Producer = Government provides water to residents
Regulator = Government regulates nuclear energy industry
Consumer = Government departments buy electricity for use.
c. Transportation
Producer = Government builds roads for transport
Regulator = The Federal Aviation Administration (FAA) regulates aviation transport.
Consumer = Private contractors transport military and are paid for it.
d. Credit Markets
Producer = Government provides low interest loans to farmers
Regulator = Fed mandates reserve requirements to Banks
Consumer = Fed buys bonds in open market operations.
e. Insurance markets
Producer = Government provides an unemployment scheme
Regulator = Laws governing the rejection of claims by insurer
Consumer = Government pays for Medicaid
f. Food
Producer = Department of Agriculture farms for experimentation purposes
Regulator = FDA requires that food in restaurants are cooked in certain sanitary conditions.
Consumer = Government pays for food stamps which allows people to get food.
g. Housing
Producer = Johnston Square Apartments built by State of Maryland for affordable housing.
Regulator = Housing codes by Counties
Consumer = Government subsidises rent for some people
When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _________________ of investing in physical capital.
Answer:
opportunity cost
Explanation:
When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the opportunity cost of investing in physical capital.
Uncle Fred recently died and left $280,000 to his 45-year-old favorite niece. She immediately spent $80,000 on a town home but decided to invest the balance for her retirement at age 65. What rate of return must she earn on her investment over the next 20 years to permit her to withdraw $75,000 at the end of each year through age 80 if her funds earn 10 percent annually during retirement
Answer:
6.06%
Explanation:
The computation of the rate of return is shown below:
Given that
NPER = 20 years
PV = ($280,000 - $80,000) = $200,000
PMT = $0
FV = $75,000 × PVIFA factor at 10% for 21 years
= $75,000 × 8.6487
= $648,652.50
The following formula should be applied
= RATE(NPER;PMT;-PV;FV;TYPE)
The present value comes in negative
After applying the above formula, the rate of return is 6.06%
Dollar General sells convenience items such as light bulbs, laundry detergent, and milk at a lower price than a customer pays at a grocery store, but the company is still able to maintain satisfactory profit margins. Dollar General is an example of _______ in the convenience store industry.
Answer:
cost leadership
Explanation:
Here are the options to this question :
Group of answer choices
reengineering
cost leadership
production innovations
efficient labor
A cost leader sells at a lower price when compared to its competitors
Many small firms seek to establish a particular niche in the market, realizing that they cannot afford to operate on a larger scale without exposing themselves to considerable risk of retaliation from larger companies. When a number of small businesses are operating in this manner, they are forcing the larger businesses to recognize and account for their influence on the market. In this way, small businesses are primarily Question 49 options:
Answer:
fostering competition
Explanation:
By deciding to focus on a particular niche these smaller firms in effect foster competitions among other larger firms.
For example, if in a market for shoes, a small firm A, that is newly established decides to focus only on selling shoes for children after recognizing they cannot match up with an existing larger company B that sells a variety of shoes (both children and adult shoes). At a point in time when a number of small businesses are operating in this manner, the larger companies would recognize and account for their influence on the market.
Alicia owns a small pottery factory. She can make 1000 pots per year and sell them for $100 each. It costs Alicia $20,000 for the raw materials to produce the 1000 pots. She has invested $100,000 in her factory and equipment: $50,000 from her savings and $50,000 borrowed at 10%. Alicia can work at a competing pottery factory for $40,000/year. What is the accounting profit at Alicia's factory?
Answer:
$-20,000
Explanation:
Accounting profit = total revenue - total explicit cost
Total revenue = price x quantity produced
$100 x 1000 = $100,000
Total explicit cost = fixed cost + variable cost
Fixed costs are costs that do not vary with output. e,g amount invested in the factory
Variable costs are costs that vary with production. e.g. cost of raw materials
$100,000 + $20,000 = $120,000
Accounting profit = $100,000 - $120,000 = $-20,000
The Mazzanti Wholesale Food Company's fiscal year-end is June 30. The company issues quarterly financial statements requiring the company to prepare adjusting entries at the end of each quarter. Assume all quarterly adjusting entries were properly recorded.
1. On December 1, 2020, the company paid its annual fire insurance premium of $7,200 for the year beginning December 1 and debited prepaid insurance.
2. On August 31, 2020, the company borrowed $115,000 from a local bank. The note requires principal and interest at 8% to be paid on August 31, 2021.
3. Mazzanti owns a warehouse that it rents to another company. On January 1, 2021, Mazzanti collected $26,400 representing rent for the 2021 calendar year and credited deferred rent revenue.
4. Depreciation on the office building is $19,200 for the fiscal year.
5. Employee salaries for the month of June 2021 $19,500 will be paid on July 20, 2021.
Required:
Prepare the necessary year-end adjusting entries at the end of June 30, 2018, for the above situations.
Answer:
1. Dr Insurance expense 1,800
Cr Prepaid insurance 1,800
2. Dr Interest expense 2,300
Cr Interest payable 2,300
3. Dr Deferred rent revenue 6,600
Cr Rent revenue 6,600
4. Dr Depreciation expense 4,800
Cr Accumulated depreciation—building 4,800
5. Dr Salaries and wages expense 19,500
Cr Salaries and wages payable 19,500
Explanation:
Preparation of the necessary year-end adjusting entries at the end of June 30, 2018, for the above situations
1. Dr Insurance expense 1,800
Cr Prepaid insurance 1,800
($7,200 × 3/12)
2. Dr Interest expense 2,300
Cr Interest payable 2,300
($115,000× 8% × 3/12)
3. Dr Deferred rent revenue 6,600
Cr Rent revenue 6,600
($26,400 × 3/12)
4. Dr Depreciation expense 4,800
Cr Accumulated depreciation—building 4,800
($19,200 × 3/12)
5. Dr Salaries and wages expense 19,500
Cr Salaries and wages payable 19,500
Jack works for Red, Blue and Green CPAs. Each year Red, Blue and Green asks Jack to fill out a form indicating all of his financial interests and those of his family members and close friends. Red, Blue and Green uses these charts to ensure that their auditors comply with the independence standards as described by the AICPA Code of Professional Conduct.
Code of Professional Conduct contains examples of situations that may impair an auditor's independence. Relationships are divided into three categories for purposes of the interpretations: immediate family, close relatives, and other relatives and friends. It is important for an auditor to understand how existing relationships fit into these categories so that the auditor can determine if there is an effect on his or her independence. Understanding of relationships is of primary importance to understanding the auditor's Code of Professional Conduct regarding independence. Place the following relationships into the appropriate category.
1. Immediate Family
2. Close Relative
3. Other Relative or Friend
a. Dependent
b. Child
c. Father
d. Cousin
e. Spouse
f. Sister
g. Golf
h. Partner
i. Spouse
j. Equivalent
k. Brother
l. Niece
m. Dependent
n. Parent
o. Mother
p. Nephew
q. Independent
r. Child
s. College
t. Friend
u. Grand father
Roommate
Answer:
1.Immediate Family:
Dependent Child
Spouse
Spouse equivalent
Dependent Parent
2.Close Relatives:
Father
Mother
Sister
Brother
Grand Father
Independent Child
3. Other relatives and Friends:
Cousin
Golf Partner
College Friend
Roommate
Nephew
Niece
Explanation:
Code of Professional conduct is a list of standards which are required to be followed by the CPA professionals. It provides guidance to the professionals about the decision making in certain situations. There are two broad categories which is rules and standard. Rules are mandatory to be followed regardless of the situation and there can not be any deviation allowed from the listed rule. Standard provide guidance for decision making in business scenarios.
At the end of August, Kaye Company had completed Jobs 40 and 42. Job 40 is for 1,000 units, and Job 42 is for 500 units.
The following data relate to these two jobs:
On August 4, raw materials were requisitioned for production as follows: 200 units for Job 40 at $24 per unit and 900 units for Job 42 at $18 per unit.
During August, Kaye Company accumulated 700 hours of direct labor costs on Job 40 and 1,000 hours on Job 42. The total direct labor was incurred at a rate of $24 per direct labor hour for Job 40 and $10 per direct labor hour for Job 42.
The predetermined factory overhead rate is $6.00 per direct labor hour.
a. Determine the balance on the job cost sheets for Jobs 40 and 42 at the end of August.
Job 40 $
Job 42 $
b. Determine the cost per unit for Jobs 40 and 42 at the end of August. If required, round your answers to the nearest cent.
Job 40 $
Job 42 $
Answer:
a. Job 40 Job 42
Direct material 200*24= $4,800 900*18= $16,200
Direct labor 700*24= $16,800 1000*10 = $10,000
Overhead applied 700*6= $4,200 1000*6 = $6,000
Total Job cost $25,800 $32,200
b. Job 40 cost per unit = $25,800/1000 units
Job 40 cost per unit = $25.8 per unit
Job 42 cost per unit = $32,200/500 units
Job 42 cost per unit = $64.4 per unit
Ben wants to do business in the Middle East where it is an accepted practice to give gifts to government officials. However, Ben may not be able to carry out his plans because he doesn't want to violate The Foreign Corrupt Practices Act (FCPA), which was enacted because Congress was concerned about _______.
Answer:
U.S. corporations' use of illegal payments and bribes in international business dealings
Explanation:
From the question, we are informed about Ben who wants to do business in the Middle East where it is an accepted practice to give gifts to government officials. However, In this case, Ben may not be able to carry out his plans because he doesn't want to violate The Foreign Corrupt Practices Act (FCPA), which was enacted because Congress was concerned about U.S. corporations' use of illegal payments and bribes in international business dealings.
The Foreign Corrupt Practices can be regarded as one the U.S law of 1977 act. This law is about prohibition of citizens of U.S as well as entities from giving bribes to officials of government of foreign countries in order to be a beneficiary of their business interests
is adversity the same thing as marketing ?
Answer:
(I think you meant advertising) no, advertising would be like a commercial, billboard, rdio ad. marketing is coming up with the ad (like people who write jingles)
Explanation:
The following selected accounts and account balances were taken from the records of Nowell Company. Except as otherwise indicated, all balances are as of December 31, Year 2, before the closing entries were recorded.
Consulting revenue $10,100
Cash 7,600
Cash received from common stock issued during 2017 3,400
Travel expense 600
Dividends 1,300
Cash flow from investing activities 2,500
Rent expense 1,900
Payment to reduce debt principal 21,600
Retained earnings, January 1, 2018 14,300
Salary expense 3,300
Cash flow from operating activities 2,050
Common stock, December 31, 2018 11,800
Other operating expenses 1,700
1. Prepare the income statement Nowell would include in its 2018 annual report.
2. Identify the accounts that should be closed to the Retained Earnings account.
3. Determine the Retained Earnings account balance at December 31, 2018.
4. Which of the following statement(s) is true?
a. net income does not include revenue of the current year.
b. retained earnings does not include current year net income, but only the balance from previous years.
c. retained earnings not only includes current year net income, but also the balance from previous years and reductions for dividends.
d. net income only includes revenues and expenses for the current year.
Solution :
a). Income Statement
For the year ended December 31, 2018
Revenues
Consulting revenue $ 10,100
Total revenue $ 10,100
Expenses
Travel expense $ 600
Rent expense $ 1900
Salary expense $ 3300
Some operating expenses $ 1700
Total expenses $ 7500
Net Income $ 2600
b). Accounts that should be closed to the Reason
retained earnings account.
Consulting revenue
The Supplies expense All the income and the expenses
Travel expenses accounts & the dividends account
Dividends are closed to the retained earning
Rent expense account.
Salary expense
Other operating expense
c). The retained earnings account balance at Dec 31, year 2018 = balance at the beginning + net income - dividends
= 14,300 + 2,600 - 1,300
= $ 15,600
d). Statements which are true Reasons
The retained earnings includes As evident from formula for
the net income of the current year. It also the retained earnings given,
includes the balances of the previous year the retained earning balances
and the reduction for dividends. has adjustment for all these.
Net income that includes the revenues and Net income is derived from
the expenses for the current year. income statement that deals
with the income and the
expenses for the current year
only.
Mocha Company manufactures a single product by a continuous process, involving three production departments. The records indicate that direct materials, direct labor, and applied factory overhead for Department 1 were $100,000, $125,000, and $150,000, respectively. The records further indicate that direct materials, direct labor, and applied factory overhead for Department 2 were $55,000, $65,000, and $80,000, respectively. In addition, work in process at the beginning of the period for Department 1 totaled $75,000, and work in process at the end of the period totaled $60,000.
The journal entry to record the flow of costs into Department 2 during the period for direct materials is:________.
A. Work in Process--Department 2 55,000
Materials 55,000
B. Work in Process--Department 2 150,000
Materials 150,000
C. Materials 55,000
Work in Process--Department 2 55,000
D. Work in Process--Department 2 100,000
Materials 100,000
Answer:
A. Work in Process--Department 2 55,000
Explanation:
The journal entry is shown below:
Work in Process - Department 2 Dr $55,000
To Materials $55,000
(Being the recording of the flow of cost for the direct material is done)
Here the work in process would be debited as it increased the asset and credited the material as it decreased the asset
Therefore the first option is correct
Common-size and trend percents for Rustynail Company's sales, cost of goods sold, and expenses follow. Common-Size Percents Trend Percents Current Yr 1 Yr Ago 2 Yrs Ago Current Yr 1 Yr Ago 2 Yrs Ago Sales 100.0 % 100.0 % 100.0 % 104.5 % 103.3 % 100.0 % Cost of goods sold 63.7 61.5 57.4 116.0 110.7 100.0 Total expenses 14.3 13.8 14.1 106.1 101.1 100.0 Determine the net income for the following years. Did the net income increase, decrease, or remain unchanged in this three-year period?
Answer:
Rustynail Company
1. The net income for the following years:
Common-Size Percents and Trend Percents
Current 1 Yr 2 Yrs Current 1 Yr 2 Yrs
Yr Ago Ago Yr Ago Ago
Sales 100.0 % 100.0 % 100.0 % 104.5 % 103.3 % 100.0 %
Cost of goods sold 63.7 61.5 57.4 116.0 110.7 100.0
Total expenses 14.3 13.8 14.1 106.1 101.1 100.0
Net Income 22.0 24.7 28.5 77.2 86.7 100.0
2. The net income decrease in this three-year period.
Explanation:
a) Data and Calculations:
Common-Size Percents and Trend Percents
Current 1 Yr 2 Yrs Current 1 Yr 2 Yrs
Yr Ago Ago Yr Ago Ago
Sales 100.0 % 100.0 % 100.0 % 104.5 % 103.3 % 100.0 %
Cost of goods sold 63.7 61.5 57.4 116.0 110.7 100.0
Total expenses 14.3 13.8 14.1 106.1 101.1 100.0
Net Income 22.0 24.7 28.5 77.2 86.7 100.0
b) The net incomes for the common-size percents are obtained by deducting the cost of goods sold and the total expenses from sales. The net incomes for the trend percents are obtained by stating the base year as 100% and then calculating the other years. This takes the form of taking the net income for the analysis year/base year's and then multiplying by 100.
Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or Access. Zisa deducts a 6.5% service charge for sales on its credit card and credits the bank account of Mayfair immediately when credit card receipts are deposited. Mayfair deposits the Zisa credit card receipts each business day. When customers use Access credit cards, Mayfair accumulates the receipts for several days before submitting them to Access for payment. Access deducts a 5.5% service charge and usually pays within one week of being billed. Mayfair completes the following transactions in June. (The terms of all credit sales are 2/15, n/30, and all sales are recorded at the gross price.)
4 Sold $600 of merchandise (that had cost $300) on credit to Natara Morris.
5 Sold $9,400 of merchandise (that had cost $4,700) to customers who used their Zisa cards.
6 Sold $5,674 of merchandise (that had cost $2,837) to customers who used their Access cards.
8 Sold $4,250 of merchandise (that had cost $2,125) to customers who used their Access cards.
10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment.
13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $473 balance in McKee’s account stemmed from a credit sale in October of last year.
17 Received the amount due from Access.
18 Received Morris’s check in full payment for the purchase of June 4.
Required:
Prepare journal entries to record the preceding transactions and events.
Answer:
4-Jun
Dr Accounts receivable—N. Morris 600
Cr Sales 600
4-Jun
Dr Cost of goods sold 300
Cr Merchandise inventory 300
5-Jun
Dr Cash 8,883
Dr Credit card expense 517
Cr Sales 9,400
5-Jun
Dr Cost of goods sold 4,700
Cr Merchandise inventory 4,700
6-Jun
Dr Accounts receivable—Access 5,560
Dr Credit card expense 113.5
Cr Sales $5,674
6-Jun
Dr Cost of goods sold 2,837
Cr Merchandise inventory 2,837
8-Jun
Dr Accounts receivable—Access 4,165
Dr Credit card expense 85
Cr Sales $4,250
8-Jun
Dr Cost of goods sold $2,125
Cr Merchandise inventory $2,125
10-Jun No journal entry required
13-Jun
Dr Allowance for doubtful accounts 473
Cr Accounts receivable—A. McKee 473
17-Jun
Dr Cash 9,725
Cr Accounts receivable—Access 9,725
18-Jun
Dr Cash 588
Dr Sales discounts 12
Cr Accounts receivable—N. Morris 600
Explanation:
Preparation of the journal entries to record the preceding transactions and events.
4-Jun
DrAccounts receivable—N. Morris 600
Cr Sales 600
4-Jun
Dr Cost of goods sold 300
Cr Merchandise inventory 300
(Being to record Sales on credit)
5-Jun
Dr Cash 8,883
(9,400-517)
Dr Credit card expense 517
(5.5%*9,400)
Cr Sales 9,400
5-Jun
Dr Cost of goods sold 4,700
Cr Merchandise inventory 4,700
6-Jun
Dr Accounts receivable—Access 5,560.5
($5,674-113.5)
Dr Credit card expense 113.5
($5,674*2%)
Cr Sales $5,674
6-Jun
Dr Cost of goods sold 2,837
Cr Merchandise inventory 2,837
8-Jun
Dr Accounts receivable—Access 4,165
($4,250-$85)
Dr Credit card expense 85
(2%*$4,250)
Cr Sales $4,250
8-Jun
Dr Cost of goods sold $2,125
Cr Merchandise inventory $2,125
10-Jun No journal entry required
13-Jun
Dr Allowance for doubtful accounts 473
Cr Accounts receivable—A. McKee 473
17-Jun
Dr Cash 9,725
Cr Accounts receivable—Access 9,725
(5,560+4,165)
18-Jun
Dr Cash 588
(600-12)
Dr Sales discounts 12
(2%*600)
Cr Accounts receivable—N. Morris 600
Sally and Tom are about to get a mortgage for their first home. If they want to make the same monthly payments for the life
of the loan, they should get an ARM (Adjustable Rate Mortgage).
True or False
Answer:
False
Explanation:
An Adjustable Rate Mortgage is the opposite: it is a type of mortgage that has payments that vary throughout the period of loan. They vary according to some index, variable rate, or agreement between the loaner and the borrower.
Sally and Tom should seek a Fixed Rate Mortgage instead. That is a type of mortgage whose payments do not vary across the life of the loan. In other words, a Fixed Rate Mortgage is an annuity.
Stephenson Company's computer system recently crashed, erasing much of the company's financial data. The following accounting information was discovered soon afterwards on the CFO's back-up computer data.
Cost of Goods Sold $380,000
Work-in-Process Inventory, Beginning 30,000
Work-in-Process Inventory, Ending 40,000
Selling and Administrative Expense 50,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning ?
Direct Materials Purchased 171,000
Factory Overhead Applied 112,000
Operating Income 22,000
Direct Materials Inventory, Beginning 18,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 340,000
Direct Labor 55,000
The CFO of Stephenson Company has asked you to recalculate the following accounts and report to him by week's end.
What should be the amount of direct materials used?
a. $208,400
b. $405,500
c. $440,800
d. $201,500
Answer:
Direct material used= $183,000
Explanation:
Giving the following information:
Direct Materials Purchased 171,000
Direct Materials Inventory, Beginning 18,000
Direct Materials Inventory, Ending 6,000
To calculate the direct material used, we need to use the following formula:
Direct material used= beginning inventory + purchases - ending inventory
Direct material used= 18,000 + 171,000 - 6,000
Direct material used= $183,000
Prove:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 30,000 + 183,000 + 55,000 + 112,000 - 40,000
cost of goods manufactured= $340,000
National Orthopedics Co. issued 9% bonds, dated January 1, with a face amount of $500,000 on January 1, 2021. The bonds mature on December 31, 2024 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. Required: 1. Determine the price of the bonds at January 1, 2021. 2. Prepare the journal entry to record their issuance by National on January
Answer:
The price of the bonds $483,841.97
Journal entry:
Dr cash $483,841.97
Dr discount on bonds payable $16,158.03
Cr bonds payable $500,000.00
Explanation:
Using a financial calculator, we determine the bond price by using the following inputs:
N=8(number of semiannual coupons in 4 years=4*2=8)
PMT=22500 (semiannual coupon=face value*coupon rate*6/12= $500,000*9%*6/12=$22,500)
I/Y=5(semiannual yield=10%%*6/12=5%)
FV=500000( the face value is $600,000)
CPT PV=$483,841.97
Bond discount=face value-bond price
Bond discount=$500,000-$483,841.97
Bond discount=$16,158.03
The double entries are to debit cash and discount on bonds payable with $483,841.97 and $16,158.03 respectively while bonds payable is credited with the face value of $500,000
Businesses, individuals, and governments often need to raise capital, while others have surplus funds. In a well-functioning economy, capital flows efficiently from those with surplus capital to those who need it. Transfers can take place in 3 ways: direct transfers without going through any type of financial institution, indirect transfers through investment banks that underwrite the securities, and indirect transfers through financial.
a. True
b. False
Answer:
The correct answer is the option A: True.
Explanation:
To begin with, according to the microeconomics theory regarding the basic model of the economy of a country in where the three major characters are the government, the companies and the families, the way that the surplus capital will go from one to the other is determine by the state of the economy itself, meaning that with everything being in perfect state, the the ones who need the capital will obtain it from the other through the use of intermediaries like the bank or also through a direct transsaction accorded with the owner of the capital as well as and indirect transfer using the financial sector.
Which 4 sections of the Overview screen can be used to perform a high-level review?
A. Company Setup
B. Outstanding Taxes
C. Bank Activity
D. Common issues
E. Transaction Volume
F. Client Mileage
Answer:
Company Setup, Bank Activity, Transaction Volume and Client Mileage
Explanation:
The nature of a company setup is an important aspect to perform a high level review. The set up of the company i.e. Private Ltd. or Public Ltd. or the goal and the motive of the company its operation to earn revenue are important aspects of a high level review. Not only the company set up but also the Banking Activity, Transaction Volume and Client Mileage are also some important areas in which the review takes place. if the company has a large volume of transaction and as well as it is doing a good amount of business with the banks then it can be said that the company is healthy. Moreover the customer satisfaction is an important aspect of a high level review. The following other options are incorrect because they are less important for a high level review.
A professor who teaches at a university is part of which type of career?
A. Education
B. Office administration
C. Management
D. Transportation
Answer:
A
Explanation:
Education
Answer:
a
Explanation:
Strauch Co. has one class of common stock outstanding and no other securities that are potentially convertible into common stock. During 2024, 100,000 shares of common stock were outstanding. In 2025, two distributions of additional common shares occurred: On April 1, 20,000 shares of treasury stock were sold, and on July 1, a 2-for-1 stock split was issued. Net income was $410,000 in 2025 and $350,000 in 2024. What amounts should Strauch report as earnings per share in its 2025 and 2024 comparative income statements issued early in 2026?
Year 2025 Year 2024
A. $2.34 $3.50
B. $1.78 $3.50
C. $1.78 $1.75
D. $2.34 $1.75
Answer:
C. $1.78 $1.75
Explanation:
Calculation for What amounts should Strauch report as earnings per share in its 2025 and 2024 comparative income statements issued early in 2026
Calculation for What amounts should Strauch report as earnings per share in its 2025
First step is to calculate the Weighted average shares for year 2025
Weighted average shares 2025 = [100,000 + 20,000(9/12)]÷2
Weighted average shares 2025=(100,000+15,000)*2
Weighted average shares 2025=115,000*2
Weighted average shares 2025= 230,000
Now let calculate the Earnings per share for year 2025
2025 Earnings per share for year= $410,000/230,000
2025 Earnings per share for year= $1.78
Therefore the 2025 Earnings per share for year will be $1.78
Calculation for What amounts should Strauch report as earnings per share in its 2024
First step is to calculate the Weighted average shares for year 2024
Weighted average shares 2024= 100,000(2)
Weighted average shares 2024= 200,000
Now let calculate the Earnings per share for year 2024
2024 Earnings per share = $350,000/200,000 2024 Earnings per share= $1.75
Therefore the Earnings per share for year 2024 will be $1.75
Sheffield Corp. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 250, the only job still in process at the end of August, has been charged with manufacturing overhead of $11700. What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000
Answer:
$20,300
Explanation:
Calculation for What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000
Direct materials charged to Job 250=$45,000 - ($11,700 / .90) - $11,700
Direct materials charged to Job 250=$45,000 - $13,000- $11,700
Direct materials charged to Job 250= $20,300
Therefore the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000 will be $20,300