Answer and Explanation:
The adjusting journal entries are as follows:
On Dec 31
Amortization expense $22,150 ($110,750 ÷ 5 years)
To Copyrights $22,150
(Being amortization expense is recorded)
Here amortization expense is debited as it increased the expenses and credited the copyrights as it decreased the assets
On Dec 31
Amortization expense $19,250 ($38,600 ÷ 6 years × 10 ÷ 12)
To Patents $19,250
(Being amortization expense is recorded)
Here amortization expense is debited as it increased the expenses and credited the patents as it decreased the assets
On Dec 31
No journal entry is required
Johnson Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a percentage of credit sales. For 2013, net credit sales totaled $4,900,000, and the estimated bad debt percentage is 1.90%. The allowance for uncollectible accounts had a credit balance of $46,000 at the beginning of 2013 and $42,000, after adjusting entries, at the end of 2013.
If the company uses the direct write-off method, what would bad debt expense be for 2013?
Answer:
$97,100
Explanation:
Calculation for If the company uses the direct write-off method, what would bad debt expense be for 2013
Beginning Balance $46,000
Add Bad debt expense for 2013
(1.90% x $4,900,000) $93,100
Less Ending balance ($42,000)
Bad debt Expense $97,100
Therefore If the company uses the direct write-off method, what would bad debt expense be for 2013 is $97,100
On April 1, Cyclone Co. purchases a trencher for $280,000. The machine is expected to last five years and have a salvage value of $40,000. Exercise 8-12 Double-declining-balance, partial-year depreciation LO C2 Compute depreciation expense at December 31 for both the first year and second year assuming the company uses the double-declining-balance method. (Enter all amounts as positive values.)
Answer:
Year 1 = $84,000Year 2 = $78,400Explanation:
Double declining means that the asset is depreciating at double the rate that it would with straight method:
Straight line depreciation = 280,000 / 5 years
= $56,000
Rate = 56,000 / 280,000 = 20%
Double declining will be:
= 20 * 2 = 40%
Year 1 Depreciation:
= 40% * 280,000 * 9/12 months
= $84,000
Year 2 Deprecation:
= 40% * Net book value
= 40% * (280,000 - 84,000)
= $78,400
List at least one of each transaction related to all of the following business events:
a. Purchase of goods or services for cash
b. Providing services for cash
c. Providing services on account
d. Purchase of goods or services on account
e. Payment of a previously recorded expense
f. Receipt of a previously recorded revenue earned
Answer:
a. Purchase of goods or services for cash
Transaction: Cash paid towards the dresses and shoes for security guards.
Accounts affected: Cash and Purchases
b. Providing services for cash
Transaction: Cash received against Bill raised towards Security services to M/s Major Computers for November month
Accounts affected: Cash and Service Revenues
c. Providing services on account
Transaction: Bill raised towards Security services to M/s Prime innovators for November month
Accounts affected: Accounts Receivables and Service Revenues
d. Purchase of goods or services on account
Transaction: Purchases the dresses and shoes for security guards on credit form M/s Immediate Dress.
Accounts affected: Accounts Payable and Purchases
e. Payment of a previously recorded expense
Transaction: Payment of bill raised by M/s Immediate Dress towards purchase of security guards dresses and shoes last month.
Accounts affected: Accounts Payable and Cash
f. Receipt of a previously recorded revenue earned
Transaction: Received payments towards Bill raised to M/s Prime innovators for Security services for November month
Accounts affected: Accounts Receivables and Cash
Counselors of Mableton purchased equipment on January 1, 2017, for $37,000. Counselors of Mableton expected the equipment to last for five years and have a residual value of $4,500. Suppose counselors of Mableton sold the equipment for $25,200 on December 31, 2018, after using the equipment for two full years. Assume depreciation 2018 has been recorded. Journalize the sale of equipment, assuming straight-line depreciation was used
Answer:
Dr cash $25,200
Dr accumulated depreciation $13,000
Cr equipment $37,000
Cr profit on disposal $1,2000
Explanation:
The yearly depreciation expense on the equipment is computed thus:
depreciation=(cost-residual value)/useful life
cost=$37000
residual value=$4,500
useful life= 5 years
depreciation=($37000-$4500)/5
depreciation=$6,500
accumulated depreciation for 2 years=$6,500*2=$13,000
Cash proceeds from disposal=$25,200
Upon disposal, we would debit cash with $25,200 as well as accumulated depreciation with $13,000 while the equipment account is credited with the original cost of $37,000
Total debits=$25,200+$13,000=$38,200
total credit=$37,000
profit on disposal=$38,200-$37000=$1,200
Street Runner Engine Shop uses a job order cost system to determine the cost of performing engine repair work. Estimated costs and expenses for the coming period are as follows:
Engine parts $740,000
Shop direct labor 500,000
Shop and repair equipment depreciation 40,000
Shop supervisor salaries 133,000
Shop property taxes 22,000
Shop supplies 10,000
Advertising expense 20,000
Administrative office salaries 71,400
Administrative office depreciation expense 6,000
Total costs and expenses $1,542,400
The average shop direct labor rate is $20 per hour.
Determine the predetermined shop overhead rate per direct labor hour.
Answer:
$8.20/Direct Labor hours
Explanation:
Cost of performing engine repair work = Shop and repair equipment depreciation + Shop supervisor salaries + Shop property taxes + Shop supplies
Cost of performing engine repair work = $40,000 + $133,000 + $22,000 + $10,000
Cost of performing engine repair work = $205,000
Direct Labor Hours = Direct Labor/Direct Labor rate
Direct Labor Hours = 500,000/$20 per hour
Direct Labor Hours = 25,000 hours
Predetermined shop overhead rate per direct labor hour = $205,000 / 25,000 Hours = $8.20/Direct Labor hours
Lucky Strike Mine (LLC) purchased a silver deposit for $1,500,000. It estimated it would extract 500,000 ounces of silver from the deposit. Lucky Strike mined the silver and sold it, reporting gross receipts of $1.8 million, $2.5 million, and $2 million for Years 1 through 3, respectively. During Years 1 through 3, Lucky Strike reported net income (loss) from the silver deposit activity in the amount of ($100,000), $400,000, and $100,000, respectively. In Years 1 through 3, Lucky Strike actually extracted 300,000 ounces of silver as follows: Ounces extracted per year Year 1 Year 2 Year 3 50,000 150,000 100,000 What is Lucky Strike's depletion deduction for Year 2 if the applicable percentage depletion for silver is 15 percent
Answer:
$375,000
Explanation:
depletion rate musts equal the lesser between:
net income = $400,000
or
15% of gross revenues = $2,500,000 x 15% = $375,000
in this case, $375,000 is the smallest amount.
The percentage of depletion is used by extraction companies, e.g. oil & gas companies or mining companies.
You would like to lock in the selling price on 50,000 bushels of wheat, which you plan to harvest and deliver to the market in September. The September futures price quote is currently 899?4. If you write September futures contracts on your wheat, you will be guaranteed a total price of ________ for your crop. Each contract is quoted in cents and 1/8ths of a cent per bushel with a contract size of 5,000 bushels.
a. $45.637.50.
b. 50 $541650.00.
c. $449750.00.
d. $297700.50.
e. $2.971.000.
Answer:
c. $449750.00.
Explanation:
1/8 of 10 lots of bushels of 5,000 per lot = 1.25
Therefore, the price quote of 899'4 cents is written as 899'4+1.25 = $8.995
Total value = Wheat(bushels) * Price Quote
Total value = 50,000 * $8.995
Total value = $449,750
Which of the following statements is most accurate regarding sufficient and appropriate documentation?
A. Audit documentation is the property of the client, and sufficient and appropriate copies should be retained by the auditor for at least 5 years.
B. Sufficient and appropriate documentation should include evidence that it has been reviewed.
C. Accounting estimates are not considered sufficient and appropriate documentation.
D. If additional evidence is required to document significant findings or issues, the original evidence is not considered sufficient and appropriate and therefore should be deleted from the working papers.
Answer:
A
Explanation:
Ayala Inc. has conducted the following analysis related to its product lines, using a traditional costing system (volume-based) and an activity-based costing system. Both the traditional and the activity-based costing systems include direct materials and direct labor costs.
Products Sales Revenue Traditional ABC
Product 540X $195,000 $56,000 $46,600
Product 137Y 158,000 55,000 37,000
Product 249S 84,000 10,000 37,400
Instructions
a) For each product line, compute operating income using the traditional costing system.
b) For each product line, compute operating income using the activity-based costing system
c) Using the following formula, compute the percentage difference in operating income for each of the product lines of Ayala:{Operating Income (ABC)-Operating Income traditional cost)]divided operating Income (traditional cost)(round the percentage to two decimals).
Answer:
a. Operating income of Product 540X under traditional costing system: Operating income = Revenue - Operating cost = $195,000 - $56,000 = $139,000
Operating income of Product 137Y under traditional costing system: Operating income = Revenue - Operating cost = $158,000 - $55,000 = $103,000
Operating income of Product 249S under traditional costing system: Operating income = Revenue - Operating cost = $84,000 - $10,000 = $74,000
b. Operating income of Product 540X under activity-based costing system: Operating income = Revenue - Operating cost = $195,000 - $46,600 = $148,400
Operating income of Product 137Y under activity-based costing system: Operating income = Revenue - Operating cost = $158,000 - $37,000 = $121,000
Operating income of Product 249S under activity-based costing system: Operating income = Revenue - Operating cost = $84,000 - $37,400 = $46,600
c. % of the difference between the operating income of Product 540X under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100
= $148,400 - $139,000/$139,000 * 100
= $9,400/$139,000 * 100
= 0.0676258992805755 * 100
= 6.76%
% of the difference between the operating income of Product 137Y under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100
= $121,000 - $103,000/$103,000 * 100
= $18,000/$103,000*100
= 0.1747572815533981 * 100
= 17.48%
% of the difference between the operating income of Product 249S under traditional costing system and ABC system = Operating Income (ABC) - [Operating Income (Traditional cost)/Operating Income (Traditional cost)] * 100
= $46,600 - $74,000/$74,000 * 100
= -$27,400/$74,000 * 100
= -0.3702702702702703 * 100
= -37.03%
2. Efficiency and effectiveness (Connect, Perform) Read the scenario and then complete the sentence with the correct term. Management in Life Your parents are hosting the huge annual family reunion this year, and they have determined that quite a bit of work needs to be done before all the relatives show up. They ask if you will repair the leaking faucets and replace the rec room carpet. They ask your sister to rid the lawn of weeds and reseed the bare patches, and they ask your brother to rent tents, a huge barbeque grill, and other equipment. They want the family to feel comfortable and have fun. To achieve greater , your dad decides to mount speakers around the backyard so people can listen to music streaming from his Rhapsody account. This will be less expensive than hiring a live band. In your first day as a driver for Road-O-Rama Freight, you realize that something just isn’t right. Trucks go out half full, and drivers often get the wrong addresses so freight doesn’t arrive at its destination. When telling a friend about your new job, how would you describe this company’s operations? Both effective and efficient Effective but not efficient Efficient but not effective Neither effective nor efficient
Answer:
When telling a friend about your new job, how would you describe this company’s operations?
Neither effective nor efficient
Explanation:
The company's operations will be considered effective if they achieve objectives. But they do not produce the desired results because drivers often get the wrong addresses, making freights not to arrive at their destinations. Similarly, the company's operations cannot be described as efficient because trucks go out half full with wrong addresses. This is a waste of time, money, and efforts, and the performance competence of the company is questionable. Efficient operations accomplish results with the least amount of resources. Effective operations achieve desired results successfully.
Exchanged all of the securities for shares of preferred stock, which were not mandatorily redeemable. Market values at the date of the exchange were for the securities and per share for the preferred stock. The shares were retired immediately. What journal entries should record in connection with this transaction?
Answer:
The full question is as follows "The following accounts were among those reported on Good Corp.'s balance sheet at December 31, year 1: Available-for-sale securities (market value $140,000) $80,000 Preferred stock, $20 par value, 20,000 shares issued and outstanding 400,000 Additional paid-in capital on preferred stock 30,000 Retained earnings 900,000 On January 20, year 2, Good exchanged all of the available-for-sale securities for 5,000 shares of Good's preferred stock. Market values at the date of the exchange were $150,000 for the available-for-sale securities and $30 per share for the preferred stock. The 5,000 shares of preferred stock were retired immediately after the exchange. Prepare the general journal entry, without explanation, to record this event."
Date General Journal Entry Debit Credit
Preferred stock A/c $100,000
(5000*$20)
Add. paid-in capital on preferred stock $7,500
(30000 * 1/ 4)
Retained earnings $42,500
Trading securities A/c $140,000
Gain on exchange of securities $10,000
1.Which of the following products would it not be necessary to develop HACCP flow chart?
A)Caesar salad
B)Tuna salad
C)Seafood salad
D)Citrus fruit salad
2. Which of the following criteria is least important when determining a food operation’s need for a particular piece of equipment? Will the equipment:
A)Produced a significant saving in labor and material?
B)Make the facility more attractive to customers?
C)Result in improved quality of food?
D)Improve sanitation?
Answer:
1. The product which is not necessary to develop HACCP flow chart for is:
A) Caesar salad
2. The least important criterion when determining a food operation's need for a particular piece of equipment is whether the equipment will:
B) Make the facility more attractive to customers?
Explanation:
These two regulatory bodies run the HACCP programs. The Food and Drug Administration (FDA)regulates the program for juice, while the United States Department of Agriculture (USDA) regulates the program for meat. Their purposes are to ensure food safety and protect public health. A HACCP flow chart diagrammatically depicts the process flow of a food operation, starting from the incoming materials to the end product for the customer.
Answer:
A) Caesar salad is necessary to develop HACCP flow chart.
B) Will the equipment make the facility more attractive to customers? is the least important criteria when determining a food operation’s need for a particular piece of equipment
Explanation:
1.
A HACCP flow chart refers to a graphical representation of the complete manufacturing process of the business of food. This chart contains information regarding the raw material, serving the finished products, etc.
Caesar salad is necessary to develop a HACCP flow chart.
2.
To determine a need for food operation for a particular piece of equipment, it's not necessary to check if the equipment can make the facility more attractive to customers
For more information:
https://brainly.com/question/19676572?referrer=searchResults
Catherine Jones has determined the following information about her own financial situation. Her checking account is worth $750 and her savings account is worth $1,900. She owns her own home that has a market value of $91,000. She has furniture and appliances worth $11,000 and a laptop worth $3,300. She has a car worth $11,500. She has recently purchased a mutual fund worth $5,500 and she has a retirement account worth $37,000. What is the total value of her assets
Answer:
$150,450
Explanation:
With regards to the above, her assets are: checking account, savings account, Home, furniture and appliances, laptop, mutual fund, car and retirement account.
= $750 + $1,900 + $91,000 + $11,000 + $3,300 + $5,500 + $37,000
= $150,450
Therefore, the total value of her asset is $150,450
Stevens Company's inventory on March 1 and the costs charged to Work in Process—Department B during March are as follows:
Beginning work in process, 12,000 units, 60% completed $62,400
From Department A, 55,000 units started this period
Direct materials added 115,500
Direct labor incurred 384,916
Factory overhead incurred 138,000
During March, all direct materials were transferred from Department A, the units in process at March 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units that were 70% completed. Inventories are costed by the first-in, first-out method.
Required:
Prepare a cost of production report for March.
Solution :
Particulars Direct materials Conversions
Cost per equivalent unit
Total costs for month March in Department B 115500 522915
Total equivalent units 55000 58000
Cost per equivalent unit 2.10 9.0158
So, total conversion cost for March in the Department B
= 384915 + 138000
= $ 522915
Costs charged to production:
Direct Materials Conversion Total cost
Costs costs
Inventory in process, March 1 62400
Cost incurred in March 638415
Total costs accounted by the department 700815
Therefore, the cost incurred in March = 115500 + 384915 + 138000
= $ 638415
Return to questionItem 4 Required information Skip to question Retained earnings at the beginning of the period was $300. During the period, Kilgore Company earned revenue of $1,100 and incurred expenses of $400. Assuming dividends paid to stockholders were $200, the ending balance in retained earnings must have been:
Answer:
$800
Explanation:
The first task here is to determine the amount of net income recognized in the year which is the earned revenue minus incurred expenses as shown thus:
net income=earned revenue-incurred expenses
earned revenue= $1,100
incurred expenses=$400
net income=$1,100-$400=$700
retained earnings for the period=net income-dividends paid
dividends paid=$200
retained earnings for the period=$700-$200=$500
ending balance of retained earnings=beginning retained earnings+retained earnings for the period
beginning retained earnings=$300
ending balance of retained earnings=$300+$500=$800
A local partnership is liquidating and has only two assets (cash of $10,000 and land with a cost of $35,000). All partnership liabilities have been paid. All partners are personally insolvent. The partners have capital balances and share profits and losses as follows. Brown, capital (40%) $ 25,000 Fish, capital (30%) 15,000 Stone, capital (30%) 5,000 If the land is sold for $25,000, how much cash does each partner receive in a final settlement
Answer:
The amount of cash that each partner receives in a final settlement is as follows:
Brown = $14,000
Fish = $10,500
Stone = $10,500
Explanation:
a) Data and Calculations:
Partnership assets:
Cash = $10,000
Land (cost) = $35,000
Capital balances and sharing of profits and losses:
Brown, capital (40%) $ 25,000
Fish, capital (30%) 15,000
Stone, capital (30%) 5,000
Cash realized from land = $25,000
Total cash available for distribution = $35,000 ($10,000 + $25,000)
Distribution:
Brown (40%) = $14,000 (40% of $35,000)
Fish (30%) = $10,500 (30% of $35,000)
Stone (30%) = $10,500 (30% of $35,000)
Total $35,000
b) When a partnership is liquidated, the partners share the net assets of the partnership in their profit and loss sharing ratios. If the net assets are negative, they also share the balance in their profit and loss sharing ratios and make the required contributions.
The balanced scorecard: Multiple Choice Fails to reflect environmental and social effects of the firm's operations. Helps focus managers' attention to bottom line profits. Is not comprehensive, since it doesn't include all the critical success factors which contribute to competitive success. Is forward looking, stressing nonfinancial measures that can lead to benefits in the future. Is heavily weighted toward the financial critical success factors.
Answer:
Is forward looking, stressing nonfinancial measures that can lead to benefits in the future.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
In Financial accounting, Horizontal analysis can be defined as an analysis and evaluation of a financial statement which illustrates or gives information about changes in the amount of corresponding financial statement items, benchmarks or financial ratio over a specific period of time. It is one of the most important technique that is used to measure how a business is doing financially.
Hence, the balanced scorecard is forward looking, stressing nonfinancial measures that can lead to benefits in the future and as such it is a strategic management planning technique.
Jia is considering whether to go out to dinner at a restaurant with her friend. The meal is expected to cost $40, Jia typically leaves a 20% tip, and an Uber will cost $5 each way. Jia values the restaurant meal at $25. Jia enjoys her friend s company and is willing to pay $30 just to spend an evening with her. If Jia does not go out to the restaurant, she will eat at home, using groceries that cost her $8.
a. Calculate Jia's cost associated with going out to dinner with her friend.
b. Calculate Jia's benefits associated with going out to dinner with her friend.
Answer:
a. Jia's cost associated with going out to dinner with her friend
= $58
b. Jia's benefit associated with going out to dinner with her friend
= $47
Explanation:
a) Data and Calculations:
Expected cost of meal = $40
Tips (20%) 8
Transport to & from = 10
Total cost of going out = $58
Benefits with going out:
Value of restaurant meal = $25
Amount Jia is willing to pay = $30
Less of eating at home ($8)
Total benefits with going out $47
You are analyzing a large stable company. For the year ending 12/31/2015 the company reported earnings of $58,900 and book value at the end of 2015 was $371,700. You expect earnings to grow at 5% a year in perpetuity, and the dividend payout ratio of 70% to continue. The company borrows at 8%, and has a cost of equity of 12%. The company has 25,000 shares outstanding. What is your estimate of price per share using the dividend discount model at 12/31/2015
Answer:
$24.74
Explanation:
Total earnings for the year ending 12/31/2015= $58,900
dividend payout ratio=70%
current year total dividends= $58,900*70%
current year total dividends=$41,230.00
current dividend per share=current year total dividends/shares outstanding
current dividend per share=$41,230.00/25,000
current dividend per share=$1.6492
expected dividend=current dividend per share*(1+growth rate)
growth rate of dividends forever=5%
expected dividend=$1.6492*(1+5%)
expected dividend=$1.73166
share price=expected dividend/(cost of equity-growth rate)
cost of equity=12%
share price=$1.73166/(12%-5%)
share price=$24.74
You've selected the formula for the turmeric shake. You now need to decide on the best packaging style. Your design team has come up with three options for the pre-mixed shakes. Based on what you learned from your focus group, what is the best packaging style
Answer:
Drink Pouch - 12 ounces drink pouch with screw top that are resealable, portable and light weight. The pouches are fairly inexpensive.
Explanation:
Customer prefer the packaging style which is easy to store. Turmeric shakes, juices and bottled energy drinks are preferred in small packaging which has one serving. This packaging is easy to store and consume by one person. The pouches are easy to be carried in bag as they are light weight and portable. The price is also low which is a plus for customers.
Grimaldi Chocolates projects its factory rent to be $8,000 in July when 4,000 pounds of candy are expected to be produced. If rent is a fixed cost, and if production is expected to increase to 6,000 units in August, what is the expected cost of rent in August
Answer:
$8,000
Explanation:
With regards to the above information, the expected cost of rent in August is $8,000. This is because the $8,000 is fixed in total.
We know that fixed costs are those costs that do not vary with the level of output. Invariably, it means they remained the same as activity level or output changes.
Although, production increases to 6,000 units in August from 4,000 candy pounds of candy that are expected to be produced in March, yet, the fixed cost of $8,000 would remain the same whether or not production increases or decreases.
During its first year of operations, Fisher Plumbing Supply Co. had sales of $480,000, wrote off $7,700 of accounts as uncollectible using the direct write-off method, and reported net income of $52,800. Determine what the net income would have been if the allowance method had been used, and the company estimated that 1 1/2% of sales would be uncollectible.
Answer:
Sales $480,000
Less: Expenses (Bal Figure) $419,500
Less: Write Off Account $7,700
Net Income $52,800
If Allowance Method Is Used
Sales $480,000
Less: Expenses $419,500
Less: Write Off Account (1.5% of 480,000) $7,200
Net Income $53,300
The board of directors of a corporation:________.
a) Are elected by the corporate registrar.
b) Are responsible for day-to-day operations of the business.
c) Do not have the power to bind the corporation to contracts, due to lack of mutual agency.
d) May not also be executive officers of the corporation, due to the separate entity principle.
e) Are responsible for and have final authority for managing corporate activities.
Answer:
e) Are responsible for and have final authority for managing corporate activities.
Explanation:
A corporation can be defined as a corporate organization that has facilities and owns or controls assets used for the production of goods and services in at least one country other than its headquarter (home office) located in its home country.
This ultimately implies that, a corporation is a corporate organization that owns or controls its business in two or more countries.
Some examples of multinational firms are Ap-ple, Volkswagen, Go-ogle, Shoprite, Nestlé, Accenture, Shell BP, Chevron etc.
An owner of a corporation is known as a stockholder and he or she can decide to sell the corporation through stocks or shares as a publicly traded firm.
Basically, the board of directors who are representing the stockholders of a corporation are responsible for and have final authority for managing corporate activities because they are typically considered to be a governing body saddled with oversight functions and responsibilities.
GenX Furnishings Company manufactures designer furniture. GenX Furnishings uses a job order cost system. Balances on June 1 from the materials ledger are as follows:
Fabric $24,900
Polyester filling 7,500
Lumber 55,800
Glue 2,400
The materials purchased during June are summarized from the receiving reports as follows:
Fabric $121,300
Polyester filling 168,600
Lumber 332,400
Glue 11,500
Materials were requisitioned to individual jobs as follows:
Fabric Polyester Filling Lumber Glue Total
Job 601 $43,700 $55,100 $147,300 $246,100
Job 602 33,600 59,900 128,900 222,400
Job 603 31,000 40,600 71,700 143,300
Factory overhead-indirect materials $5,700 5,700
Total $108,300 $155,600 $347,900 $5,700 $617,500
The glue is not a significant cost, so it is treated as indirect materials (factory overhead).
a. Journalize the entry to record the purchase of materials in June.
b. Journalize the entry to record the requisition of materials in June.
c. Determine the June 30 balances that would be shown in the materials ledger accounts.
Answer:
a. Date Account Titles and Explanation Debit Credit
June 1 Raw materials inventory - Fabric A/c $121,300
Raw materials inventory - Polyster A/c $168,600
Raw materials inventory - Lumber A/c $332,400
Raw materials inventory - Glue A/c $11,500
To account payable $633,800
(Being recorded for the purchase of materials in June)
b. Date Account Titles and Explanation Debit Credit
June 3 Work in process - Job 601 A/c $222,400
Raw materials inventory - Fabric A/c $43,700
Raw materials inventory - Polyster A/c $55,100
Raw materials inventory - Lumber A/c $147,300
Work in process - Job 602 A/c $143,300
Raw materials inventory - Fabric A/c $31,000
Raw materials inventory - Polyster A/c $40,600
Raw materials inventory - Lumber A/c $71,700
Work in process - Job 603 A/c $222,400
Raw materials inventory - Fabric A/c $33,600
Raw materials inventory - Polyster A/c $59,900
Raw materials inventory - Lumber A/c $128,900
Factory Overhead A/c $5,700
To Raw materials inventory - Glue A/c $5,700
c. Particulars Fabrics Polyster Lumber Glue
Beg. Inventory June 1 $24,900 $7,500 $55,800 $2,400
Add: Purchases $121,300 $168,600 $332,400 $11,500
$146,200 $175,100 $388,200 $13,900
Less: Issued to production $108,300 $155,600 $347,900 $5,700
End. Inventory June 30 $37,900 $20,500 $40,300 $8,200
Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on account. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
Answer:
Dr Office equipment 31,700
Cr cash 7,600
Cr Accounts payable 24,100
Explanation:
Preparation of the journal entry for the purchase of office equipment on February 19
Based on the information given the if asset was purchased on February 19 for the amount of $31,700 in which the company paid the amount of $7,600 cash and the remainder on account which means that the journal entry will be:
February 19
Dr Office equipment 31,700
Cr cash 7,600
Cr Accounts payable 24,100
(31,700-7,600)
19. What are conflicting responsibilities? Why do conflicts arise in professions?
Answer: being in the military
Explanation: reason is, because if your in the military you get to miss out on holidays , birthdays and even extra time with family and thats a big problem
The clear, broad, underlying industry category or market sector of an organization's offering defines its
O shareholders.
O objectives
O culture
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business
Explanation:
thats difficult
Suppose the demand function for good X is given by: where is the quantity demanded of good X, is the price of good X, and is the price of good Y, which is related to good X. Using the midpoint method, if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8, the cross price elasticity of demand is about:_________
Answer:
Quantity demanded is -0.4
Explanation:
Quantity demanded is -0.4 if the prices decline from $8 to $10. The cross price elasticity is the change in quantity demanded for the goods when the price of other goods changes. The price change can be minor and the quantity demanded change can be high.
Which of the following is true about specification ?
a. A specification is defined as the value separating acceptable from unacceptable performance.
b. Specifications should not be set arbitrarily. If you set a specification to loosely, the customer will be dissatisfied or upset with the performance of what you provided, even though it meets the specification.
c. The specification is set to tightly; you will spend more resources than you should to perform within the overly narrow goals.
Answer:
b. Specifications should not be set arbitrarily. If you set a specification to loosely, the customer will be dissatisfied or upset with the performance of what you provided, even though it meets the specification.
Explanation:
Specification is defined as a set of requirements that needs to be met when producing a product. They give a value that seperate this product from others in performance.
Specification should be narrowly defined as this will help effectively meet the customer needs.
When specifications are too loosely defined the product might not meet customer needs.
For example if a developer requires a laptop with high processing power and the company decides to provide a more generic and lower processing power, the target customer will not be satisfied
Assume the following adjustment data.
a. Supplies on hand at October 31 total $520.
b. Expired insurance for the month is $120.
c. Depreciation for the month is $135.
d. As of October 31, services worth $950 related to the previously recorded unearned revenue had been performed.
e. Services performed but unbilled (and no receivable has been recorded) at October 31 are $250.
f. Interest expense accrued at October 31 is $75.
g. Accrued salaries at October 31 are $1,520.
Required:
Prepare the adjusting entries for the items above.
Answer:
a.
Debit : Balance Sheet $520
Credit : Supplies $520
b.
Debit : Insurance expense $120
Credit : Prepaid Insurance $120
c.
Debit : Depreciation expense $135
Credit : Accumulated depreciation expense $135
d.
Debit : Unearned Revenue $950
Credit : Revenue Earned $950
e.
Debit : Trade Receivable $250
Credit : Service Revenue $250
f.
Debit : Interest expense $75
Credit : Note Payable $75
g.
Debit : Salaries expense $1,520
Credit : Accounts Payables $1,520
Explanation:
So adjusting entries are done at the end of the reporting period, in this case it is the end of October.
For most of these entries we recognize expenses and a corresponding decrease in assets or increase in liabilities.
As for revenue previously unearned, we have to recognize the revenue portion now earned.