Answer:
It can be used to identify the appropriate criteria for evaluating employee job performance.
It can be used to design the format and rating format for a performance appraisal.
Explanation:
Since in the question it is mentioned that she meets with the vice present in order to design the new system so here the vice present could do the job analysis as follows;
1. There should be appropriate criteria for analysing and evaluating the job performance of the employees
2. Also the format should be designed and the rating format for the performance appraisal
These two things should be considered
tone Company produces carrying cases for CDs. It has compiled the following information for the month of June: Physical UnitsPercent Complete for ConversionBeginning work in process74,00060%Ending work in process94,00075Stone adds all materials at the beginning of its manufacturing process. During the month, it started 184,000 units. Using the FIFO method, reconcile the number of physical units.
Answer:
TOTAL 258,000
TOTAL 258,000
Explanation:
Calculation to reconcile the number of physical units Using the FIFO method
PHYSICAL UNITS
Beginning Inventory 74,000
Units Started 184,000
TOTAL 258,000
PHYSICAL UNITS
Units Completed 164,000
(258,000-94,000)
Ending Inventory 94,000
TOTAL 258,000
Therefore Using the FIFO method to reconcile the number of physical units will give us 258,000 and 258,000
A company issued 8%, 15-year bonds with a face amount of $100 million. The market yield for bonds of similar risk and maturity is 6%. Interest is paid semiannually. At what price did the bonds sell
Answer:
$119.60 million
Explanation:
The bond price formula provided below is very useful in determining the amount of money received from the bond investors when the bond were issued:
Bond price=face value/(1+r)^n+semiannual coupon*(1-(1+r)^-n/r
face value=$100 million
r=semiannual yield=6%*6/12=3%
n=number of semiannual coupon payments in 15 years=15*2=30
semiannual coupon=face value*coupon rate*6/12=$100million*8%*6/12=$4 million
bond price=$100/(1+3%)^30+$4*(1-(1+3%)^-30/3%
bond price=$100/(1.03)^30+$4*(1-(1.03)^-30/0.03
bond price=$100/2.42726247+$4*(1-0.41198676)/0.03
bond price=$100/2.42726247+$4*0.58801324/0.03
bond price=$41.20+$ 78.40=$119.60 million
The purpose of growth accounting is to estimate the contribution each component of the aggregate production function makes to overall economic growth. estimate the growth rate of an economy. use the change in total factor productivity to estimate the growth rate of an economy. estimate the extent to which growing costs are affecting the overall performance of an economy.
Answer:
Estimate the contribution each component of the aggregate production function makes to overall economic growth
Explanation:
Growth accounting is a quantitative tool used to estimate the contribution each component of the aggregate production function makes to overall economic growth.
Growth accounting was first developed by Robert Solow.
The growth accounting equation is :
Capital Growth*(Weight of Capital's Contribution) + Labour Growth*(Weight of Labour's Contribution) + Technological Advancement
Golf World sold merchandise to Mulligans for $83,000, offering terms of 1/15, n/30. Mulligans paid for the merchandise within the discount period. Both companies use perpetual inventory systems.
a. Prepare journal entries in the accounting records of Golf World to account for this sale and the subsequent collection. Assume the original cost of the merchandise to Golf World had been $6,500.
b. Prepare journal entries in the accounting records of Mulligans to account for the purchase and subsequent payment. Mulligans records purchases of merchandise at net cost.
c. Assume that, because of a change in personnel. Mulligans failed to pay for this merchandise within the discount period. Prepare the journal entry in the accounting records of Mulligans to record payment after the discount period.
Answer and Explanation:
The journal entries are shown below:
a.
Account receivable Dr $83,000
To Sales $83,000
(Being sales is recorded on account)
Cost of goods sold Dr $6,500
To Inventory $6,500
(Being cost of the merchandise is recorded)
Cash $82,170
Sales discount $830 ($83,000 × 1%)
To Account receivable $83,000
(being cash received is recorded)
b.
Inventory Dr $82,170
To Account payable $82,170
(being inventory purchased on account)
Account payable Dr $82,170
To Cash $82,170
(being cash paid is recorded)
c.
Account payable $82,170
Lost on purchase discount $830
To Cash $83,000
(Being cash payment is recorded)
Which factor should be most important if you are considering purchasing a new video game?
the number of games available for purchase
the quality of the games produced by that manufacturer
the popularity of the video game with your friends
the other things you could do with your money
Answer:
The popularity of the video game with your friends
If u wanna play with ur friends u have to make sure they have it too
Answer:
D
Explanation:
With that thought in mind, you have to consider opportunity cost, and think about the other things you can do with your money. If you do want to buy a video game, then you should take into mind that A and B would be more important than C. But thinking about C is a good idea, if you like playing with your friends.
Wattan Company reports beginning inventory of 10 units at $60 each.
Every week for four weeks it purchases an additional 10 units at respective costs of $61, $62, $65 and $70 per unit for weeks 1 through 4. Assume that no sales occur during those four weeks.
1. Calculate the cost of goods available for sale and
2. the units available for sale for this four week period.
Answer:
1. $3,180
2. 50 units
Explanation:
1. Calculation for the cost of goods available for sale
Beginning Inventory 10units *$60= $600
Week 1 purchase 10 units*$61=$ 610
Week 2 purchase 10units* $62=$ 620
Week 3 purchase 10 units*$65= 650
Week 4 purchase 10units*$70= $700
Cost of goods available for sale =$3,180
($600+$610+$620+$650+$700)
Therefore the cost of goods available for sale will be $3,180
2. Calculation for the units available for sale for this four week period.
Units available for sale =10 units+10 units+10 units+10 units+10 units
Units available for sale=50 units
Therefore the units available for sale for this four week period will be 50 units
Meyers, Inc. presented the following data:
2024 Net income $2,500
Preferred stock:
10% cumulative, not convertible $3,000
Common stock:
1/1: 1,000 shares outstanding
9/1: 1,000 shares issued in a 2-for-1 stock split
10/1: 200 shares treasury stock acquired
11/1: 240 shares issued for cash
No preferred dividends were declared or paid in 2014, the first year of the company. The denominator to be used in Basic EPS is:_____.
a. 1.910.
b. 1,657.
c. 2,090.
d. 1,990.
Answer:
d. 1,990.
Explanation:
The computation of the denominator that should be used for determining the basic EPS is as follows:
Outstanding shares Oustanding months Equivalent units
2,000 (9 ÷ 12) 1,500
(1,000 × 2)
1,800 (1 ÷ 12) 150
(2,000 - 200)
$2,040 (2 ÷ 12) 340
(1,800 + 240)
Total shares 1,990
Use the following items to prepare a balance sheet and a cash flow statement. Determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. Balance Sheet and Cash Flows Rent for the month$1,240 Monthly take-home salary$3,420 Cash in checking account 700 Savings account balance 2,110 Spending for food 820 Balance of educational loan 2,930 Current value of automobile 8,590 Telephone bill paid for month 69 Credit card balance 236 Loan payment 177 Auto insurance 239 Household possessions 3,680 Stereo equipment 3,240 Payment for electricity 110 Lunches/parking at work 271 Donations 169 Home computer 1,870 Value of stock investment 1,750 Clothing purchase 148 Restaurant spending 177
Answer:
1. Balance Sheet:
Assets:
Cash in checking account $700
Savings account balance 2,110
Current value of automobile 8,590
Home computer 1,870
Value of stock investment 1,750
Household possessions 3,680
Stereo equipment 3,240 $21,940
Liabilities:
Balance of educational loan 2,930
Credit card balance 236 $3,166
Net Worth $18,774
2. Cash Flows:
Cash Inflows:
Monthly take-home salary $3,420
Outflows:
Rent for the month $1,240
Spending for food 820
Telephone bill paid for month 69
Auto insurance 239
Payment for electricity 110
Lunches/parking at work 271
Donations 169
Clothing purchase 148
Restaurant spending 177
Loan payment 177
Total cash outflows $3,420
Explanation:
Monthly take-home salary $3,420
Rent for the month $1,240
Spending for food 820
Telephone bill paid for month 69
Auto insurance 239
Payment for electricity 110
Lunches/parking at work 271
Donations 169
Clothing purchase 148
Restaurant spending 177
Loan payment 177
Assets:
Cash in checking account 700
Savings account balance 2,110
Current value of automobile 8,590
Home computer 1,870
Value of stock investment 1,750
Household possessions 3,680
Stereo equipment 3,240
Liabilities:
Balance of educational loan 2,930
Credit card balance 236
Adriana and Belen are partners who share income in the ratio of 3:2 and have capital balances of $50,000 and $90,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $90,000. How much cash should be distributed to Adriana
Answer:
$54,000
Explanation:
First, we add the ratios together to determine the total parts:
3+2= 5
Next, we divide the cash balance of $90,000 by the total parts:
$90,000/5 = $18,000
To find the amount of cash distributed to Adriana we multiply by her ratio:
5*18,000 = $54,000.
All other things the same, if a company uses long-term debt to purchase land to develop in the future, the company's return on total assets will decrease.
a) true
b) false
The company purchases land to broaden in the future. The companies' return on total assets will decrease. That is a false announcement.
What is long-term debt?Long-term period debt is debt that matures in a couple of years. Long-time period debt may be considered from two perspectives: monetary announcement reporting through the provider and monetary making an investment.
In monetary announcement reporting, agencies ought to report long-time period debt issuance and all of its related charge duties on their monetary statements.
On the other hand, making an investment in long-term period debt consists of placing cash into debt investments with maturities of a couple of years.
Long-term period debt is debt that matures in a couple of years. Entities select to pay off long-term debt with diverse considerations, more often than not, specializing in the time-frame for reimbursement and interest to be paid.
Investors spend money on long-time period debt for the blessings of hobby bills and keep in mind that the time to adulthood is a liquidity risk.
Overall, the lifetime obligations and valuations of long-term debt may be heavily influenced by marketplace fee changes and whether or not a long-term debt issuance has fixed or floating fee terms.
Organisation takes on debt to achieve instantaneous capital. For example, startup ventures require a broad budget to get off the ground.
This debt can take the shape of promissory notes and serve to pay for startup fees together with payroll, development, IP felony fees, equipment, and marketing.
Therefore, from the above statement, it's clear that alternative B, false, is the proper alternative.
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Because your patented Gidgit is starting to gain attention and investors are starting to show interest, the executive committee is considering becoming a publicly held company by selling the company to the government.
True
False
Answer:
False.
Explanation:
Patent can be defined as the exclusive or sole right granted to an inventor by a sovereign authority such as a government, which enables him or her to manufacture, use, or sell an invention for a specific period of time.
Generally, patents are used on innovation for products that are manufactured through the application of various technologies.
Basically, the three (3) main ways to protect an intellectual property is to employ the use of trademarks, copyright and patents.
In this scenario, Because your patented Gidgit is starting to gain attention and investors are starting to show interest, the executive committee is considering becoming a publicly held company.
Since Gidgit is patented it cannot be sold to the government because it is a registered intellectual property that cannot be used or sold without the approval or consent of the owner.
A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,000 per month for the next three years and then $1,000 per month for two years after that. If the bank is charging customers 9.75 percent APR, how much would it be willing to lend the business owner
Answer:
$78,443.29
Explanation:
we need to use the present value of an annuity formula:
the formula used to determine the present value factor of an annuity is:
present value annuity factor = [1 - 1/(1 + i)ⁿ ] / i
we must divide this into 2 parts:
the first part will deal with the $2,000 monthly payment
the second part deals with the $1,000 monthly payment
i = 9.75% / 12 = 0.8125%
n (first part) = 36
n (second part) = 24
the PV annuity factor for first part = [1 - 1/(1 + 0.8125%)³⁶ ] / 0.8125% = 31.1043
the PV annuity factor for first part = [1 - 1/(1 + 0.8125%)²⁴ ] / 0.8125% = 21.7251
loan = ($2,000 x 31.1043) + ($1,000 x 21.7251)//(1 + 0.8125%)³⁶ = $62,208.60 + $16,234.69 = $78,443.29
= [1 - 1/(1 + 0.0069942)240 ] / 0.0069942 = 116.135183
Following are selected accounts for Target Corporation. (a) Indicate whether each account appears on the balance sheet (B) or income statement (I). ($ millions)AmountClassification Sales$61,471Answer I Accumulated depreciation7,887Answer B Retained earnings12,761Answer B Depreciation expense1,659Answer I Net income2,849Answer I Property, plant
Answer:
Target Corporation
Accounts that appear on the balance or the income statement:
Balance Sheet:
Accumulated depreciation 7,887
Retained earnings 12,761
Property, plant
Income Statement:
Sales $61,471
Depreciation expense 1,659
Net income 2,849
Explanation:
The accounts that appear on the balance sheet of Target Corporation are permanent accounts, which are not closed to the income summary at the end of its financial period. These accounts are carried over to the next accounting period. They include assets, liabilities, and owners' equity. The accounts that appear on the income statement of Target Corporation are the temporary accounts, which are closed to the income summary at the end of the company's financial period. The accounts include revenue and expenses, which are compared to extract the net income or loss for the period.
You recently purchased 1,300 shares of stock at a cost per share of $54.10. The initial margin requirement on this stock is 60% and the maintenance margin is 30%. The stock is currently valued at $42.30 a share. What is your current margin position?
Answer:
The current margin position is 48.84%.
Explanation:
This can be calculated as follows:
Margin loan = Number of shares purchased * Cost per share * (1 - Initial margin requirement) = 1,300 * $54.10 * (1 - 60%) = $28,132
Current value of stock = Number of shares purchased * Current price per share = 1,300 * $42.30 = $54,990
Current equity = Current value of stock - Margin loan = $54,990 - $28,132 = $26,858
Current margin position = Current equity / Current value of stock = $26,858 / $54,990 = 0.488416075650118, or 48.8416075650118%
Rounding to 2 decimal places, we have:
Current margin position = 48.84%
Therefore, the current margin position is 48.84%.
ABC Services reported the following transactions for September, 2013. A) The owner opened the business with a capital contribution of $23,500 cash. It was credited to Capital. B) The business purchased office equipment for $11,500. The business paid $2,500 cash down and put the balance on a note payable. C) The business paid insurance expense of $1,350 cash. D) The business paid a utility bill for $980 cash. E. The business paid $2,000 cash for September rent. F. The business had sales of $12,000 in September. Of these sales, 60% were cash sales, and the balance was credit sales. G. The business paid $9,700 cash for office furniture. What are the total liabilities at the end of September, 2013
Answer:
ABC Services
The total liabilities at the end of September, 2013
= $9,000
Explanation:
a) Data and Calculations:
Capital contribution = $23,500
Equipment = $11,500
Cash payment for equipment = $2,500
Note payable on equipment = $9,000
Insurance expense paid = $1,350
Utility expense paid = $980
Rent paid = $2,000
Sales = $12,000
Cash Sales = $7,200 (60% of $12,000)
Credit Sales = $4,800 (40% of $12,000)
Office furniture paid = $9,700
Therefore, total liabilities at the end of September, 2013 = $9,000. This represents the note payable for the office equipment purchased in B.
Assume that the company uses departmental predetermined overhead rates with machine-hours as the allocation base in both production departments. Further assume that the company uses a markup of 50% on manufacturing cost to establish selling prices. The calculated selling price for Job M is closest to:
Answer:
Selling Price for Job M = $49,005
Explanation:
Note: This question is incomplete and lacks necessary data to solve. But I have found similar question on the internet and will be using its data to solve this question for the sake of understanding and concept.
Data Missing:
Estimated Total Machine Hours for Molding = 9000
Estimated Total Machine Hours for Customizing = 3600
Total = 9000 + 3600 = 12,600
Estimated Total Fixed manufacturing overhead cost for Molding = 36000
Estimated Total Fixed manufacturing overhead cost for Customizing = 13,320
Total = 36000 + 13320 = 49320
Estimated variable Manufacturing overhead cost per MH for Molding = 2.50
Estimated variable Manufacturing overhead cost per MH for Customization = 3.00
Data For JOB M:
Direct materials = $9,900
Direct labor Cost = $10,300
Molding Machine-hours = 1300
Customizing Machine Hours = 600
Required:
We are asked to calculate the selling price for Job M:
Solution:
Direct materials = $9,900
Direct labor Cost = $10,300
Variable manufacturing overhead For Molding:
(Estimated variable Manufacturing overhead cost per MH for Molding 2.50 x Molding Machine-hours = 1300)
Molding = 2.50 x 1300
Molding = 3,250
Similarly,
Variable manufacturing overhead For Customizing:
(Estimated variable Manufacturing overhead cost per MH for Customization = 3.00 x Customizing Machine Hours = 600)
Customizing = 3.00 x 600
Customizing = 1800
Now, we need to find Fixed manufacturing overhead for both molding and customizing:
For Molding:
First we need to find the cost per machine hour for molding:
Molding Cost per machine hour = (Estimated Total Fixed manufacturing overhead cost for Molding = 36000 / Estimated Total Machine Hours for Molding = 9000)'
Molding Cost per machine hour = 36000/9000
Molding Cost per machine hour = $4 per machine hour
So,
Fixed manufacturing overhead for Molding:
Molding = Molding Cost per machine hour x Molding Machine-hours = 1300
Molding = 4 x 1300
Molding = 5200
Similarly,
For Customizing:
Customizing Cost per machine hour = 13320/3600
Customizing Cost per machine hour = $3.70 per machine hour
Fixed manufacturing overhead for Customizing:
Customizing = Customizing Cost per machine hour x Customizing Machine Hours
Customizing = $3.70 x 600
Customizing = 2220
Now, we need to find the total cost for Job M:
Total Cost = Direct materials + Direct labor Cost + Variable manufacturing overhead For Molding + Variable manufacturing overhead For Customizing + Fixed manufacturing overhead for Molding + Fixed manufacturing overhead for Customizing
Total Cost = $9,900 + $10,300 + 3,250 + 1800 + 5200 + 2220
Total Cost = $32,670
Now, we need to find the Selling price for Job M, for which we need to add the markup into the total cost.
Markup percentage = 50%
So,
Markup = Markup% x Total Cost
Markup = 0.50 x 32,670
Markup = $16,335
Selling Price = Markup + Total Cost
Selling Price for Job M = $16,335 + $32,670
Hence,
Selling Price for Job M = $49,005
Suppose that a consumer has an initial endowment of 48.00 eggs. He is able to sell these eggs freely on the market for $1.00 per egg, but has no other income. However, he still demands some eggs himself. His demand is given by the following equation:
x1 = 16.00+ m/4p1
The price for eggs increases to $2.00 per egg. Calculate this consumer's endowment income effect.
Answer and Explanation:
The computation of the consumer's endowment income effect is as follows:
But before that following calculations must be done
Beginning value of the endowment,
m = 48 × 1
= 48
Now New value of endowment,
m' = 48 × new price
= 48 × 2
= 96
so,
Consumer's endowment income effect is
= x1(p1', m') - x1(p1', m)
= 28 - 22
= 6 eggs.
Working notes:
(x1(p1', m') is
= 16 + (96 ÷ 4 × 2)
= 16 + (96 ÷ 8)
= 16 + 12
= 28
And, x1(p1', m) is
= 16 + (48 ÷ 4 × 2)
= 16 + (48 ÷ 8)
= 16 + 6
= 22
Which option identifies the farm to fork benefit demonstrated in the following scenario?
Herb owns a restaurant that is committed to the farm to fork concept. Accordingly, he buys from local farmers, his customers are mostly from the surrounding area, and he makes his financial transactions with his hometown bank. Also, Herb spends his profits at locally owned businesses.
doing business locally to reduce tax burdens
using a diverse selection of products found locally
keeping money local to strengthen the local economy
staying local to reduce waste and pollution
Answer:
using a diverse selection of products found locally
Explanation:markme brainliest
Alex is a salesperson who receives an annual salary of $18,000 paid semimonthly plus commissions of 5% of the retail price of each unit he sells which is paid on the final pay date of the month. During his first month of employment, he sold four units for a total of $1,000 and requested a 5% draw against his $15,000 monthly minimum sales, in accordance with his employment agreement. How much should Alex receive in his gross pay for the end of his first month
Answer:
the alex should received the gross pay of $1,550 for the end of his first month
Explanation:
The computation of the gross pay is as follows
Salary ($18,000 ÷ 12 months) $1,500
Add: Commission ($1,000 × 5%) $50
Gross pay $1,550
We simply added the salary and the commission to determine the gross pay
hence, the alex should received the gross pay of $1,550 for the end of his first month
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transactions would have upon cash and net income. The first transaction has been completed as an example. (If an amount reduces the account balance then enter with negative sign preceding the number e.g. -15,000 or parentheses e.g. (15,000).)
Required:
a. Purchased $133 of supplies for cash.
b. Recorded an adjusting entry to record use of $31 of the above supplies.
c. Made sales of $1,297, all on account.
d. Received $865 from customers in payment of their accounts.
e. Purchased equipment for cash, $2,528.
f. Recorded depreciation of building for period used, $610.
Solution :
Required :
Items Cash Net Income
a). Supplies of $133 purchased for cash - $ 133 --
b). Recorded the adjustment entry so as to
record use the $31 for the above supplies -- $ 31
c). Made sales of the $ 1297 on account -- $ 1,297
d). $865 received from customers as payment
of accounts $ 865 --
e). $ 2,528 purchased the equipment for cash - $ 2, 528 --
f). Recorded the depreciation of the building
for the period use of $ 610 -- $ 610
Consider a firm making production decisions in the short run. Select the statement(s) that must be correct. Choose one or more: A. Average total cost will always exceed average variable cost. B. Average total cost cannot decline as output increases, at any level of output. C. Average fixed cost cannot increase with output, at any level of output. D. Average variable cost is always above the average fixed cost. E. Average variable cost cannot decline with output, at any level of output.
Answer:
A). Average total cost will always exceed average variable cost.
C). Average fixed cost cannot increase with output, at any level of output
Explanation:
In the short term, a company that increases its profits will increase production if the marginal cost is less than the marginal income. Reduction in production if marginal cost exceeds marginal income. Continue production when the average variable cost is less than the unit. so correct answer is A and CFrankenberger Company, which uses a weighted-average process-costing system, had 7,000 units in production at the end of the current period that were 60% complete. Material A is introduced at the beginning of the process; material B is introduced at the end of the process; and conversion cost is introduced evenly throughout manufacturing. Equivalent-unit production costs follow. Material A: $12.50 Material B: $2.00 Conversion cost: $6.60 The cost of the company's ending work-in-process inventory is:
Answer:
the ending work in process inventory is $115,220
Explanation:
The computation of the cost of the company ending work in process inventory is as follows:
Material A introduced at the starting = $12.5
Conversion Cost = $6.6 × 60% = $3.96
Total cost is
= $12.5 + $3.96
= $16.64
Now
WIP ending inventory is
= $16.64 × 7,000 units
= $115,220
Hence, the ending work in process inventory is $115,220
The cost of the company's ending work-in-process inventory is: $115,220.
First step is top calculate the conversion cost
Conversion Cost = $6.6 × 60%
Conversion cost= $3.96
Second step is to calculate the Total cost
Total cost= $12.5 + $3.96
Total cost= $16.64
Third step is to calculate the ending work-in-process inventory
Ending work-in-process inventory= $16.64 × 7,000 units
Ending work-in-process inventory= $115,220
Inconclusion the cost of the company's ending work-in-process inventory is: $115,220.
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Following is financial information for three ventures:
VENTURE XX VENTURE YY VENTURE ZZ
After-tax profit margins 5% 25% 15%
Asset turnover 2.0 times 3.0 times 1.0 times
a. Calculate the return on assets (ROA) for each firm.
b. Which venture is indicative of a strong entrepreneurial venture opportunity?
c. Which venture seems to be more of a commodity type business?
Answer:
a. The ROA:
Venture XX = After tax profit margin * Asset turnover = 5% * 2 = 10%
Venture YY = 25% * 3 = 75%
Venture ZZ = 15% * 1 = 15%
B) The strong entrepreneurial venture opportunity is Venture YY being havibg higher ROA at 75%.
C) The Venture ZZ seems to be more of a commodity-type business because the return on sales and asset turnover is moderate one.
Wildhorse Co. began operations on January 2, 2020. It employs 13 people who work 8-hour days. Each employee earns 10 paid vacation days annually. Vacation days may be taken after January 10 of the year following the year in which they are earned. The average hourly wage rate was $18 in 2020 and $19.75 in 2021. The average vacation days used by each employee in 2021 was 9. Wildhorse Co. accrues the cost of compensated absences at rates of pay in effect when earned.
Required:
Prepare journal entries to record the transactions related to paid vacation days during 2020 and 2021.
Answer and Explanation:
The Journal entries are as follows:
On 2020,
Wages expense Dr. $18,720 (13 × 8 hrs × 10 days × $18)
To vacation wages payable $18,720
(being the wages expense is recorded)
On 2021
Wages expense Dr $1,638
Vacation wages payable $16,848 (13 × 8 hrs × 9 days × $18)
To Cash $18,486 (13 × 8 hrs × 9 days × $19.75)
(being cash paid is recorded)
Wages expense Dr. $20,540 (13 × 8 hrs × 10 days × $19.75)
To vacation wages payable $20,540
(being the wages expense is recorded)
Better Corp. completed the following transactions during Year 2:
a. Purchased land for $10,500 cash.
b. Acquired $36,000 cash from the issue of common stock.
c. Received $75,000 cash for providing services to customers.
d. Paid cash operating expenses of $40,900.
e. Borrowed $21,000 cash from the bank.
f. Paid a $10,500 cash dividend to the stockholders.
g. Determined that the market value of the land purchased in event 1 is $46,000.
Required:
a. Record the transactions In the approprlate general ledger accounts. Record the amounts of revenue, expense, and dividends In the Retalned Earnings column. Provide the appropriate titles for these accounts In the last column of the table.
b. As of December 31, 2018, determine the total amount of assets, lablities, and stockholders' equity and present this Information In the form of an accounting equation.
c. What is the amount of total assets, liabilities, and stockholders' equity as of January 1, 2019?
Answer:
Better Corp.
a. Journal Entries:
a. Debit Land $10,500
Credit Cash $10,500
To record the purchase of land.
b. Debit Cash $36,000
Credit Common Stock $36,000
To record the issuance of stock for cash.
c. Debit Cash $75,000
Credit Service Revenue $75,000
To record the receipt of cash for services provided.
d. Debit Operating expenses $40,900
Credit Cash $40,900
To record the payment of operating expenses.
e. Debit Cash $21,000
Credit Bank Loan $21,000
To record the borrowing of cash from the bank.
f. Debit Dividends $10,500
Credit Cash $10,500
To record the payment of cash dividend to stockholders.
g. N/A
a2. a. Assets (Land +$10,500 + Cash- $10,500) = Liabilities + Equity
b. Assets (Cash + $36,000) = Liabilities + Equity (Common Stock + $36,000)
c. Assets (Cash $36,000 + 75,000) = Liabilities + Equity (Common Stock $36,000 + Retained Earnings + $75,000) Service Revenue
d. Assets (Cash 111,000 - $40,900) = Liabilities + Equity (Common Stock $36,000 + Retained Earnings $75,000 = $40,900) Operating Expense
e. Assets (Cash $70,100 + $21,000) = Liabilities (Bank Loan + $21,000) + Equity (Common Stock $36,000 + Retained Earnings $34,100)
f. Assets (Cash $91,100 - $10,500) = Liabilities (Bank Loan + $21,000) + Equity (Common Stock $36,000 + Retained Earnings $34,100 - $10,500) Dividends
g. Assets (Cash $80,600) = Liabilities (Bank Loan + $21,000) + Equity (Common Stock $36,000 + Retained Earnings $23,600)
b. Total amount of assets, liabilities, and stockholders' equity as of December 31, 2018:
Total assets $80,600 = Liabilities $21,000 + Equity (Common Stock $36,000 + Retained Earnings $23,600)
c. The amount of total assets, liabilities, and stockholders' equity as of January 1, 2019:
Assets = $80,600
Liabilities = $21,000
Equity = $59,600
Explanation:
The accounting equation is Assets = Liabilities + Equity. It is the basis of the double-entry system of accounting. With this equation, every transaction is always recorded twice.
Dell is undergoing a major expansion. The expansion will be financed by issuing new 15-year, $1,000 par, 9% annual coupon bonds. The market price of the bonds is $1,070 each. Dell's flotation expense on the new bonds will be $50 per bond. Dell's marginal tax rate is 35%. What is the pre-tax cost of debt for the newly-issued bonds
Answer:
8.76%
Explanation:
The computation of the pre-tax cost of debt is as follows:
Market price of the bond is
= $1,070 - $50
= $1,020
Coupon payment = Face value × Annual coupon rate
= $1,000 × 9%
= $90
Now YTM would be
Given that
NPER = 15
PMT = $90
PV = $1,020
FV = $1,000
The formula is given below:
=RATE(NPER;PMT;-PV;FV;TYPE)
After applying the above formula, the yield to maturity is 8.76%
Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. (Please note that the second part of this question is different from other examples found online).
Units sold 1,217
Sales price each $1,700
Total labor hours 46,672
Wage rate $12/hour
Total materials $60,000
Total energy $4,000
Calculate:
I. the productivity in sales revenue/labor expense
(I think that I have done this part correctly; part II is what I don't understand)
(1217 x 1700) / (46672 x 12) =
2068900 / 560064 = 3.69
II. the total productivity.
I understand that total productivity could be expressed in units sold, or dollars of sales; please show both.
Answer and Explanation:
The computation is shown below:
a. The productivity in terms of sales revenue / labor expense:
Sales revenue = Units sold × sales price
= 1,217 × $1,700
= $2,068,900
Labor expense = Total labor hours × wage rate
= 4,6672 × $12
= $560,064
Now sales revenue to labor expense is
= $2,068,900 ÷ $560,064
= 3.69
2. Total productivity
As we know that
Total productivity =Output ÷ (labor + material + energy)
= ($2,068,900) ÷ ($560,064 + $60,000 + $4,000)
= $2,068,900 ÷ $624,064
= $3.315
Exercise 1-16 Cost Classifications for Decision Making [LO1-5] Warner Corporation purchased a machine 7 years ago for $383,000 when it launched product P50. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 300 machine costing $373,650 or by a new model 200 machine costing $342,000. Management has decided to buy the model 200 machine. It has less capacity than the model 300 machine, but its capacity is sufficient to continue making product P50. Management also considered, but rejected, the alternative of dropping product P50 and not replacing the old machine. If that were done, the $342,000 invested in the new machine could instead have been invested in a project that would have returned a total of $445,600. Required: 1. What is the total differential cost regarding the decision to buy the model 200 machine rather than the model 300 machine
Answer:
Missing word "2. What is the total sunk cost regarding the decision to buy the model 200 machine rather than the model 300 machine? 3. What is the total opportunity cost regarding the decision to invest in the model 200 machine?"
1. Differential cost of buying model 200 machine = Cost of model 200 machine - Cost of model 300 machine
= $342,000 - $373,650
= -$31,650
We'll have a savings of $31,650 if model 200 is purchased rather than model 300
2. $383,000 (The Cost of existing machine). Note: $383,000 is a sunk cost since it has already been incurred.
3. Opportunity cost is the total return of the project if the money was invested elsewhere. The Opportunity cost of investing in model 200 machine is $445,600 (Returns from the alternate project)
Benjamin and Amelia Hopkins have been married since 2016.
Benjamin is a U.S. citizen with a valid Social Security number. Amelia is a resident alien with an Individual Taxpayer Identification Number (ITIN). They elect to file Married Filing Jointly.
Benjamin worked in 2020 and earned wages of $25,000. Amelia worked part-time and earned wages of $15,000.
They have two children: Harper, who is 9 years old, and Evelyn, who is 12 years old.
Both children were supported by their parents all year. Harper is a U.S. citizen and has a valid Social Security number. Evelyn is a resident alien and has an ITIN.
Benjamin, Amelia, Harper, and Evelyn lived together in the U.S. all year 7. Evelyn is a qualifying child for the child tax credit.
1. Which credit(s) can the Hopkins claim on their 2020 tax return?
a. Child tax credit for Harper
b. Credit for other dependents for Evelyn
c. Both a and b
d. Neither a norb
2. Are the Hopkins eligible to claim the earned income credit?
a. Yes, because Benjamin has a Social Security number.
b. Yes, because everyone has a taxpayer identification number.
c. No, because their income is too high.
d. No, because Amelia has an ITIN.
Answer:
1. c. Both a and b
2. a. Yes, because Benjamin has a Social Security number.
Explanation:
According to tax laws, you can claim a child tax credit for an American dependant below the age of 17 which qualifies Harper for it. Evelyn however qualifies for a Credit for other dependents as she is a resident alien and has an Individual Taxpayer Identification Number (ITIN).
Because Benjamin has a Social Security Number, the Hopkins are indeed eligible to claim an earned income credit. Married couples filling jointly can claim the credit if either of them are U.S. citizens with a valid Social Security number.
Below are certain events that took place at Hazzard, Inc., last year: Collected cash from customers. Paid cash to repurchase its own stock. Borrowed money from a creditor. Paid suppliers for inventory purchases. Repaid the principal amount of a debt. Paid interest to lenders. Paid a cash dividend to stockholders. Sold common stock. Loaned money to another entity. Paid taxes to the government. Paid wages and salaries to employees. Purchased equipment with cash. Paid bills to insurers and utility providers. Required: Indicate how each of the transaction would be classified on a statement of cash flows. Place an X in the Operating, Investing, or Financing column as appropriate.
Answer:
Events Operating Investing Financing
a. Paid cash to repurchase its own stock. X
b. Borrowed money from a creditor. X
c. Paid suppliers for inventory purchases. X
d. Repaid the principal amount of a debt. X
e. Paid interest to lenders. X
f. Paid a cash dividend to stockholders. X
g. Sold common stock. X
h. Loaned money to another entity. X
i. Paid taxes to the government. X
j. Paid wages and salaries to employees. X
k. Purchased equipment with cash. X
l. Paid bills to insurers and utility providers. X