Answer:
Summer holiday
no coldness
beach time
camping
travel
Answer: Christmas
Explanation:
I think this holiday in particular brings everyone together. Huge festivities are all around and about as well.
What potential consequences could result from the
worst
kitchen safety violation that you see in this picture?
Which drawback of being an entrepreneur can disrupt your personal life?
Listed below are selected transactions of Blossom Department Store for the current year ending December 31.
1. On December 5, the store received $490 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15.
2. During December, cash sales totaled $821,100, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month.
3. On December 10, the store purchased for cash three delivery trucks for $110,300. The trucks were purchased in a state that applies a 5% sales tax.
4. The store determined it will cost $96,300 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Blossom estimates the fair value of the obligation at December 31 is $77,400.
Answer:
1. Dec. 5 Cash$490
Cr Due to customer$490
2. Dec. 1-31
Dr Cash821,100
Cr Sales Revenue782,000
Cr Sales Tax Payable 39,100
Dec. 10
Dr Trucks 115,815
Cr Cash115,815
Dec.31
Dr Land improvements 77,400
Cr Asset Retirement Obligation 77,400
Explanation:
Preparation of Journal entries
1. Dec. 5 Cash 490
Cr Due to customer 490
2. Dec. 1-31
Dr Cash821,100
Cr Sales Revenue782,000
Cr Sales Tax Payable 39,100
(821,100-782,000)
Dec. 10
Dr Trucks 115,815
Cr Cash115,815
Dec.31
Dr Land improvements 77,400
Cr Asset Retirement Obligation 77,400
Workings:
Dec. 1-31
Sales Revenue= ($821,100 ÷ 1.05)
Sales Revenue=$782,000
Sales Taxes Payable =($782,000 ×0.05)
Sales Taxes Payable=$39,100
Dec. 10Trucks= ($110,300 × 1.05)
Trucks =$115,815
When an organization tries to influence the adaptation of individuals, the process of _____ is occurring. Group of answer choices encounter socialization individualization metamorphosis
Answer:
B. socialization
Explanation:
Socialization can be defined as the process in which individuals learn to behave in a morally acceptable way or manner, acquire values, attitudes and habits that are in tandem with the environment where they found themselves such as an organization.
Hence, when an organization tries to influence the adaptation of individuals, the process of socialization is occurring.
Joker stock has a sustainable growth rate of 10 percent, ROE of 12 percent, and dividends per share of $1.30. If the PE ratio is 17.0, what is the value of a share of stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:value of a share of stock=$132.57
Explanation:
Sustainable growth rate = Retention ratio x ROE
= ROE X (1-Payout ratio)
10% = 12% x 1-payout ratio
10%/12%= 1-payout ratio
0.8333= 1-payout ratio
payout ratio= 1- 0.833=0.1667= 16.67%
Dividend payout ratio= dividend per share/Earnings per share
16.67%=$1.30/ earning per share
Earnings per share =1.30/ 16.67%= $7.7984
Value of a share of stock using the P/E ratio
P/E ratio= value of stock / Earning per share
17= value of stock/earning per share
value of stock= 17 x 7.7984= $132.57
What are the nominal and effective costs of trade credit under the credit terms of 3/10, net 30? Assume a 365-day year. Do not round intermediate calculations. Round your answers to two decimal places.
Answer:
Nominal cost of trade credit = [Discount percentage / (100- Discount Percentage) ] * [ 365 Days / (Credit's Outstanding - Discount Period) ]
Nominal cost of trade credit = 3/97 * 365/30 - 10
Nominal cost of trade credit = 3/97 * 365/20
Nominal cost of trade credit = 0.030928 * 18.25
Nominal cost of trade credit = 0.564436
Nominal cost of trade credit = 56.44%
Effective cost of trade = (1 + Periodic rate)^n - 1
Periodic rate = 0.03 / 0.97 = 0.3093
Periods/year = 365 / (30-10) = 18.25
Effective cost of trade = (1 + 0.3093)^18.25 - 1
Effective cost of trade = (1 .3093)^18.25 - 1
Effective cost of trade = 1.74354232297 - 1
Effective cost of trade = 0.74354232297
Effective cost of trade = 74.35%
Answer:
nominal cost of credit = 56.44% ;EAR = 74.35%
Explanation:
1.nominal cost of credit =
"(discount rate /1 - discount rate )" or part 1
multiply by "365/(days the credit is outstanding -discount days )" or part 2 .Thus ,nominal cost of credit= (0.03/1-0.03 )*(365 /30 -10)= part 1* part 2 = 0.030928*18.25=56.44%
2.EAR =[ (1 - "part 1 ") ^("part 2") ] - 1= [ (1+0.030928)^18.25 ] -1 =1.74348 -1 = 0.74348 or 74.348% or 74.35%
Last year Electric Autos had sales of $190 million and assets at the start of the year of $330 million. If its return on start-of-year assets was 15%, what was its operating profit margin
Answer:
2.61%
Explanation:
The first step is to calculate the operating income
= ROE × assets
= 15/100 × $330,000,000
= 0.15 × $330,000,000
= $49,500,000
Therefore the operating profit margin can be calculated as follows
= operating income/sales
= $49,500,000/190,000,000
= 0.2605 × 100
= 2.61 %
The following unadjusted trial balance is prepared at fiscal year-end for Nelson Company. Nelson company uses a perpetual inventory system. It categorizes the following accounts as selling expenses: Depreciation Expense—Store Equipment, Sales Salaries Expense, Rent Expense—Selling Space, Store Supplies Expense, and Advertising Expense. It categorizes the remaining expenses as general and administrative.
NELSON COMPANY Unadjusted Trial Balance January 31
Debit Credit
Cash $22,150
Merchandise inventory 13,000
Store supplies 5,100
Prepaid insurance 2,800
Store equipment 42,800
Accumulated depreciation—Store equipment $19,250
Accounts payable 17,000
Common stock 4,000
Retained earnings 25,000
Dividends 2,100
Sales 115,900
Sales discounts 2,100
Sales returns and allowances 2,000
Cost of goods sold 38,000
Depreciation expense—Store equipment 0
Sales salaries expense 12,900
Office salaries expense 12,900
Insurance expense 0
Rent expense—Selling space 8,000
Rent expense—Office space 8,000
Store supplies expense 0
Advertising expense 9,300
Totals $181,150 $181,150
Additional Information:
a. Store supplies still available at fiscal year-end amount to $2,550.
b. Expired insurance, an administrative expense, for the fiscal year is $1,720.
c. Depreciation expense on store equipment, a selling expense, is $6,500 for the fiscal year.
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,720 of inventory is still available at fiscal year-end.
Required:
a. Compute the current ratios as of January 31, 2017.
b. Prepare a multiple-step income statement for the year ended January 31.
c. Prepare a single-step income statement for the year ended January 31.
Answer:
a. Store supplies still available at fiscal year-end amount to $2,550.
Dr Supplies expense 2,550
Cr Supplies 2,550
b. Expired insurance, an administrative expense, for the fiscal year is $1,720.
Dr Insurance expense 1,720
Cr Prepaid insurance 1,720
c. Depreciation expense on store equipment, a selling expense, is $6,500 for the fiscal year.
Dr Depreciation expense 6,500
Cr Accumulated depreciation, equipment 6,500
d. To estimate shrinkage, a physical count of ending merchandise inventory is taken. It shows $10,720 of inventory is still available at fiscal year-end.
Dr Cost of goods sold 2,280
Cr Merchandise inventory 2,280
Cash $22,150
Merchandise inventory 10,720
Store supplies 2,550
Prepaid insurance 1,080
Store equipment 42,800
Accumulated depreciation—Store equipment $25,750
Accounts payable 17,000
Common stock 4,000
Retained earnings 25,000
Dividends 2,100
Sales 115,900
Sales discounts 2,100
Sales returns and allowances 2,000
Cost of goods sold 40,280
Depreciation expense—Store equipment 6,500
Sales salaries expense 12,900
Office salaries expense 12,900
Insurance expense 1,720
Rent expense—Selling space 8,000
Rent expense—Office space 8,000
Store supplies expense 2,550
Advertising expense 9,300
Totals $187,425 $187,425
a) current ratio = current assets / current liabilities = $36,050 / $17,000 = 2.12
c) Nelson company
Income Statement
For the month ended January 31, 202x
Revenues:
Net sales $111,800Expenses:
Cost of goods sold $40,280 Depreciation expense - equipment $6,500Sales salaries expense $12,900 Office salaries expense $12,900 Insurance expense $1,720 Rent expense - Selling space $8,000 Rent expense - Office space $8,000 Store supplies expense $2,550 Advertising expense $9,300 ($102,150)Operating income $9,650
b) Nelson company
Income Statement
For the month ended January 31, 202x
Sales:
Total sales $115,900 Sales discounts ($2,100 )Sales returns and allowances ($2,000 ) $111,800Cost of goods sold ($40,280)
Gross profit $71,520
Selling expenses:
Depreciation expense - equipment $6,500Sales salaries expense $12,900 Rent expense - Selling space $8,000 Store supplies expense $2,550 Advertising expense $9,300 ($39,250)S&A expenses:
Office salaries expense $12,900 Insurance expense $1,720 Rent expense - Office space $8,000 ($22,620)Operating income $9,650
Each quarter, Craig Anderson, who owns a chain of auto repair shops, does a detailed analysis of his firm's competitors. This analysis is called ___________ analysis. Group of answer choices competitor challenger strategic participant industry
Answer:
Competitor analysis
Explanation:
In any business, an analysis of competition is very essential as it gives an understanding of your competitive posting relative to competitors, provide or generate insights into competitive strategies. Competitor analysis encompasses insights benefited to influence and develop business strategy,identify current and potential competitors. the bargaining of power of supplier, the bargaining power of customers the threat of new entrants and also the threat of substitute products and services.
which situation best describes the role of businesse in the circular flow of goods
Answer:
A company makes a new line of kitchen appliances
Explanation:
Just did it
Gilbert is considering purchasing the Side Steamer 3000, a higher-end steamer, which costs $12,000, and has an estimated useful life of 6 years with an estimated salvage value of $1,200. This steamer falls into the MACRS 5-years class, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The new steamer is faster and would allow for an output expansion, so sales would rise by $2,000 per year; even so, the new machine's much greater efficiency would reduce operating expenses by $1,400 per year. To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultaneously increase by $700. Gilbert's marginal federal-plus-state tax rate is 40%, and its WACC is 12%.
a. Should it replace the old steamer?b. NPV of replace = $2,083.51
SHOW WORK HOW TO GET THIS ANSWER
Answer:
Explanation:
initial outlay $12,000 + ($2,900 - $700) = $14,200
depreciable value = $10,800
depreciation per year:
$2,160$3,456$2,073.60$1,244.16$1,244.16$622.08incremental revenues = $2,000 + $1,400 = $3,400
CF year 0 = -$14,200
CF year 1 = [($3,400 - $2,160) x 0.6] + $2,160 = $2,904
CF year 2 = [($3,400 - $3,456) x 0.6] + $3,456 = $3,422.40
CF year 3 = [($3,400 - $2,073.60) x 0.6] + $2,073.60 = $2,869.44
CF year 4 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66
CF year 5 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66
CF year 6 = [($3,400 - $622.08) x 0.6] + $622.08 + $1,200 + $2,200 = $5,688.83
WACC = 12%
a) the steamer should not be replaced, since the NPV is negative.
b) Using a financial calculator, NPV = -$14,200 + $13,298.29 = -$901.71
Sunnyside Marine Products began the year with 10 units of marine floats at a cost of $11 each. During the year, it made the following purchases: May 5, 30 unit at $16; July 16, 15 units at $19; and December 7, 20 units at $23. Assuming there are 25 units on hand at the end of the period, determine the cost of goods sold under (a) FIFO, (b) LIFO, and (c) average-cost. Sunnyside uses the periodic approach.
Answer:
Sunnyside Marine Products
Determination of the Cost of Goods Sold under:
a) FIIFO:
= $780
(b) LIFO:
= $985
(c) Average-cost:
= $890
Explanation:
a) Data and Calculations:
Date Description Units Unit cost Total
January 1 Beginning Inventory 10 $11 $110
May 5, Purchase 30 $16 480
July 16 Purchase 15 $19 285
Dec. 7 Purchase 20 $23 460
Dec. 31 Ending Inventory 25
Dec. 31 Total Units Sold 50 $1,335
Average Cost = Total cost/Total inventory available
= $1,335/75
=$17.80
FIFO:Cost of goods sold = (10 * $11) + (30 * 16) + (10 * 19) = $780
LIFO: Cost of goods sold = (20 * $23) + (15 * $19) + (15 * 16)= $985
Average-Cost: Cost of goods sold = 50 * $17.80
b) Average-cost uses the average cost of goods available for sale divided by the total units available for sale under the periodic inventory system.
FIFO is based on the assumption that the first goods sold are the ones bought first. LIFO assumes that the first goods sold are the last ones bought.
The direct costs of manufacturing the goods that a company sells are referred to as COGS. The cost of the materials and labor directly employed to make the good is included in this figure.
Sunny side Marine Products
Determination of the Cost of Goods Sold under:a) FIFO:= $780
(b) LIFO:= $985
(c) Average-cost:= $890
SOLUTION:-
a) Data and Calculations:-
Date Description Units Unit cost Total
January 1 Beginning Inventory 10 $11 $110
May 5, Purchase 30 $16 480
July 16 Purchase 15 $19 285
Dec. 7 Purchase 20 $23 460
Dec. 31 Ending Inventory 25
Dec. 31 Total Units Sold 50 $1,335
Average Cost = Total cost/Total inventory available
= $1,335/75
=$17.80
FIFO:-Cost of goods sold = (10 * $11) + (30 * 16) + (10 * 19) = $780
LIFO:- Cost of goods sold = (20 * $23) + (15 * $19) + (15 * 16)= $985
Average-Cost:- Cost of goods sold = 50 * $17.80
b) Average-cost uses the average cost of goods available for sale divided by the total units available for sale under the periodic inventory system.
FIFO is based on the assumption that the first goods sold are the ones bought first. LIFO assumes that the first goods sold are the last ones bought.
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A market has 10 sellers. The fifth and seventh in size merge, becoming the largest seller in the market. How can this merger support competition in the market?
Answer: b. If the newly merged seller becomes more efficient and offers lower prices
Explanation:
Competition in the market is spurred by efficiency. The more efficient a company is at producing, the more competitive it is because it will be able to offer lower prices than its competitors.
If the newly created firm starts offering lower prices due to it being more efficient, the effect would be that the other companies would be forced to become efficient so as to lower their prices as well thereby increasing competition in the market.
You want your longtime employees to make sure their retirement plans are best suited for their career stages. You think that most employees make wise investment choices when they join the company. However, you find that few employees make adjustments to their retirement plans as they advance in their careers. You are particularly concerned about employees who have worked at the company for more than ten years and haven't updated their retirement packages. Which of the following statements is most likely to persuade longtime employees to attend the presentation about retirement planning?
a. Choose a retirement package that best matches your career stage. At this presentation,we'll tell you how we can help you manage your longevity risk on your retirement package.
b. Choose a retirement package that best matches your career stage. At this presentation,you'll learn how you can make sure you have enough money for as long as you live.
c. Don't miss this opportunity to maximize your retirement income. At this presentation, we'lltell you how we can help you manage your longevity risk on your retirement package.
Answer:
b. Choose a retirement package that best matches your career stage. At this presentation,you'll learn how you can make sure you have enough money for as long as you live.
Explanation:
In the given scenario we are trying to persuade employees to update their retirement plans to meet the changing situation of their careers.
We want to invite them to a meeting where they can learn the benefits of getting a better retirement plan.
The best approach is to send a message that focuses on them and their role in this process. Not the company's role.
Option B exemplifies this by stating they are learning to how to choose a retirement plan that will provide for them for the rest of their lives.
The other two options uses the statement - we'll tell you how to manage your longevity.
This creates an impression that the company wants to impose their point of view on the employees, and this may not get the expected response from employees.
If annualized interest in the U.S. and France are 9% and 13%, respectively, and the spot value of the French franc is $0.1109, then at what 180-day forward rate will interest rate parity hold
Answer:
0.1130 FF/$
Explanation:
Spot value = 0.1109 FF/$
Interest rate in US for 180 days = 9%*180/365 = 0.044384
Interest rate in France for 180 days = 13%*180/365 = 0.06411
Forward rate = Spot value*(1+Interest rate in US)/(1+Interest rate in France)
Forward rate = 0.1109*(1+0.06411)/(1+0.044384)
Forward rate = 0.1109*(1.06411/1.044384)
Forward rate = 0.1109* 1.018888
Forward rate = 0.1130 FF/$
Alpha Industries is considering a project with an initial cost of $8.2 million. The project will produce cash inflows of $1.93 million per year for 6 years. The project has the same risk as the firm. The firm has a pretax cost of debt of 5.67% and a cost of equity of 11.31%. The debt-equity ratio is 0.62 and the tax rate is 21%. What is the net present value of the project
Answer:
$347,941.73
Explanation:
First, find the Weighted Average Cost of Capital (WACC). WACC is the minimum return that a project must offer before it can be accepted. It is thus used to discount the future cash flows of a project to its Present Value.
WACC = Ke × E/V + Kd × D/V
where,
Ke = cost of equity
= 11.31%
E/V = Market Weight of Equity
= (1/1.62 × 100)
= 61.73%
Kd = After tax cost of debt
= 5.67% × ( 1 - 0.21)
= 4.48 %
D/V = Market Weight of Debt
= 0.65/1.65 × 100
= 39.40%
Therefore,
WACC = 11.31% × 0.6773 + 4.48 % × 0.3940
= 9.43 %
Next, find the net present value of the project using a financial calculator as follows :
CFj -$8,200,000
CFj $1,930,000
CFj $1,930,000
CFj $1,930,000
CFj $1,930,000
CFj $1,930,000
i/yr = 9.43 %
Shift NPV = $347,941.73
If the risk-free rate of return is 6%, and if a risky asset is available with a return of 9% and a standard deviation of 3%, what is the maximum rate of return you can achieve if you are willing to accept a standard deviation of 2%
Answer:
8.01%
Explanation:
If risk-free rate of return is 6%
if a risky asset is available with a return of 9%
If standard deviation of the portfolio is 2%.
Portfolio Return if S.D. is 2% = 0.33*6% + 0.67*9%
Portfolio Return = 0.33*0.06 + 0.67*0.09
Portfolio Return = 0.0198 + 0.0603
Portfolio Return = 0.0801
Portfolio Return = 8.01%
Hence, the he maximum rate of return we can achieve if we are willing to accept a standard deviation of 2% is 8.01%
Analyzing the effects of transactions on the accounting equation.
On July 1, Alfred Herron established Herron Commercial Appraisal Services, a firm that provides expert commercial appraisals and represents clients in commercial appraisal hearings.
Instructions:
Analyze the following transactions. Record in equation form the changes that occur in assets, liabilities, and owner's equity.
Transactions:
The owner invested $200,000 in cash to begin the business.
Paid $40,500 in cash for the purchase of equipment.
Purchased additional equipment for $30,400 on credit.
Paid $25,000 in cash to creditors.
The owner made an additional investment of $50,000 in cash.
Performed services for $19,500 in cash.
Performed services for $15,600 on account.
Paid $12,000 for rent expense.
Received $11,000 in cash from credit clients.
Paid $15,100 in cash for office supplies.
The owner withdrew $24,000 in cash for personal expenses.
Analyze: What is the ending balance of cash after all transactions have been recorded?
Answer:
I used an excel spreadsheet to record the accounts using the accounting equation.
What is the ending balance of cash after all transactions have been recorded?
$163,900
The Cash ending balance after the recording of the transactions is $163,900.
Data Analysis:
a. Cash $200,000 Capital, Alfred Herron $200,000
b. Equipment $40,500 Cash $40,500
c. Equipment $30,400 Accounts Payable $30,400
d. Accounts Payable $25,000 Cash $25,000
e. Cash $50,000 Capital, Alfred Herron $50,000
f. Cash $19,500 Service Revenue $19,500
g. Accounts Receivable $15,600 Service Revenue $15,600
h. Rent Expense $12,000 Cash $12,000
i. Cash $11,000 Accounts Receivable $11,000
j. Supplies $15,100 Cash $15,100
k. Drawings, Alfred Herron $24,000 Cash $24,000
Thus, the total cash receipts are $280,500, while the total cash disbursements are $116,600, leaving an ending balance of $163,900 in cash.
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A relocation of a short stretch of rural highway feeding into Route 390 northwest of Dallas is to be made to accommodate new growth. The existing road is now unsafe, and improving it is not an alternative. Alternate new route locations are designated as East and West. The initial investment by government highway agencies will be $3, 950,000 for East and $5, 500,000 for West. Annual highway maintenance costs will be $120,000 for East and 590,000 for the shorter location West. Relevant annual road user costs, considering vehicle operation, time end route, fuel, safety, mileage, and so on, are estimated as $880,000 for East and only $690,000 for West. Assume a 20 year service life and i = 7 %. C
1. What is the present worth of the benefits and costs of route West over route East? PW benefits of route West over route East: $ PW costs of route West over route East: $ Carry all interim calculations to 5 decimal places and then round your Final answer to the nearest dollar. The tolerance is plusminus 50. Using incremental D/C ratio analysis, which alternative should be selected?
2. Compute the appropriate B/C ratio(s) and decide whether East or West should be constructed.
Full question attached
Answer and Explanation:
Please find attached
Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,288,076 as follows. Work in process,November 1Materials $79,000Conversion costs 48,200$127,200Materials added 1,594,520Labor 225,800Overhead 340,556Production records show that 34,600 units were in beginning work in process 30% complete as to conversion costs, 662,700 units were started into production, and 24,100 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
Answer:
Using the FIFO cost method:
beginning WIP 34,600 units
materials $79,000 (100% complete)
conversion $48,200 (30% complete, 70% remaining = 24,220 EU)
units started 662,700
materials added $1,594,520
conversion costs added $566,356
ending WIP 24,100
100% complete for materials
40% complete for conversion = 9,640 EU
units completed and transferred out = 34,600 + 662,700 - 24,100 = 673,200
units started and completed = 662,700 - 34,600 - 24,100 = 604,000
total equivalent units for the month:
materials 662,700
conversion = 24,220 + 604,000 + 9,640 = 637,860
total cost per EU:
materials = $1,594,520 / 662,700 = $2.4061
conversion = $566,356 / 637,860 = $0.8879
total = $3.294
cost of ending WIP:
materials = 24,100 x $2.4061 = $57,987
conversion = 9,640 x $0.8879 = $8,559.36 ≈ $8,559
total = $66,546
cost of units transferred out = $79,000 + $48,200 + $1,594,520 + $566,356 - $66,546 = $2,221,530
total units transferred out = 673,200
production cost per unit = $2,221,530 / 673,200 = $3.30
In general, research and development costs for projects other than software development should be: A. None of the answer choices are correct. B. Expensed if unsuccessful; capitalized if successful. C. Expensed in the period they are determined to be unsuccessful. D. Expensed in the period they are determined to be successful. E. Deferred pending determination of success.
Answer:
Research and development costs must be expended during the period that they occur, they are not capitalized. Whether the project is successful or not does not affect the expensing of the R&D costs.
Both options C and D are correct:
C. Expensed in the period they are determined to be unsuccessful. D. Expensed in the period they are determined to be successful.Explanation:
On the other hand, software companies are allowed to capitalize some (not all) R&D costs.
The following trial balance of Crane Co. does not balance.
CRANE CO.
TRIAL BALANCE
JUNE 30, 2017
Debit Credit
Cash $3,099
Accounts Receivable $3,460
Supplies 1,029
Equipment 4,029
Accounts Payable 2,895
Unearned Service Revenue 1,429
Common Stock 6,229
Retained Earnings 3,229
Service Revenue 2,609
Salaries and Wages Expense 3,629
Office Expense 1,169
Totals $14,745 $18,061
Each of the listed accounts should have a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors.
1. Cash received from a customer on account was debited for $570, and Accounts Receivable was credited for the same amount. The actual collection was for $750.
2. The purchase of a computer printer on account for $729 was recorded as a debit to Supplies for $729 and a credit to Accounts Payable for $729.
3. Services were performed on account for a client for $890. Accounts Receivable was debited for $890 and Service Revenue was credited for $89.
4. A payment of $294 for telephone charges was recorded as a debit to Office Expense for $294 and a debit to Cash for $294.
5. When the Unearned Service Revenue account was reviewed, it was found that service revenue amounting to $554 was performed prior to June 30 (related to Unearned Service Revenue).
6. A debit posting to Salaries and Wages Expense of $899 was omitted.
7. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
8. A dividend of $804 was debited to Salaries and Wages Expense for $804 and credited to Cash for $804.
Prepare a correct trial balance.
CRANE CO.
TRIAL BALANCE
JUNE 30, 2017
Debit
Credit $ $
Totals $ $
Answer and Explanation:
Cash= 3,099+180-294-294= 2691
Accounts receivable= 3,460-180=3280
Supplies =1,029-729=300
Equipment= 4,029+729=4758
Accounts payable =2,895-206-260= 2429
unearned service revenue=1,429-554= 875
Service revenue= 2,609+801+554 3964
Salaries & wage expense 3,629+899-804= 3724
Find attached
a. Insurance expense 2,807
Prepaid insurance 2,807
b. Teaching supplies expense 2,433
Teaching supplies 2,433
c. Depreciation expense—Equipment 11,227
Accumulated depreciation—Equipment 11,277
d. Depreciation expense—Professional library 5,614
Accumulated depreciation—Professional library 5,614
e. Unearned training fees 2,700
Training fees earned 2,700
f. Accounts receivable 2,819
Tuition fees earned 2,819
g. Salaries expense 100
Salaries payable 100
h. Rent expense 2,097
Prepaid rent 2,097
Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow.
Additional Information:
a. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired.
b. An inventory count shows that teaching supplies costing $2,433 are available at year-end 2017.
c. Annual depreciation on the equipment is $11,227. Annual depreciation on the professional library is $5,614.
d. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,619 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. The balance in the Prepaid Rent account represents rent for December.
Answer:
The question is incomplete, it is a really long question actually. I believe that you want to check if the adjusting entries were properly done.
a. An analysis of WTI's insurance policies shows that $2,807 of coverage has expired.
Dr Insurance expense 2,807
Cr Prepaid insurance 2,807
CORRECT
b. An inventory count shows that teaching supplies costing $2,433 are available at year-end 2017.
Dr Teaching supplies expense (amount on trial balance - $2,433)
Cr Teaching supplies (amount on trial balance - $2,433)
You do not need to record $2,433, you need to record the difference between the balance of teaching supplies and the ending inventory.
c. Annual depreciation on the equipment is $11,227. Annual depreciation on the professional library is $5,614.
Dr Depreciation expense 16,841
Cr Accumulated depreciation, equipment 11,227
Cr Accumulated depreciation, professional library 5,614
CORRECT
d. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,900, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.
Dr Unearned training Fees 5,800
Cr Training fees earned 5,800 (2 months of accrued revenue)
On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $2,619 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.) WTI's two employees are paid weekly.
Dr Accounts receivable 3,928.50
Cr Tuition fees earned 3,928.50 (1.5 months)
As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
Dr Wages expense 400
Cr Wages payable 400 (2 days x $100 x 2 employees)
The balance in the Prepaid Rent account represents rent for December.
Dr Rent expense 2,097
Cr Prepaid rent 2,097 (assuming that this was the account balance)
I ASSUME ITS CORRECT
The contract drawings prepared by the architect are generally not specific enough to facilitate accurate fabrication of the materials involved. Therefore, to produce the necessary materials for a project, subcontractors and suppliers must provide ________________________ to amplify/clarify the contract drawings.
Answer:
construction specifications
Explanation:
Construction contracts must always include construction specifications. These specifications refer to what materials, installations and specialized labor is required to perform correctly the building process.
Architects are paid for their blueprints, i.e. their designs. Sometimes an architect can recommend certain materials that fit his/her design, but the contractor is responsible for carrying on the actual construction.
The contractor has to specify which materials will be used and how the construction process will be carried out. E.g. it is not the same to build a house with luxurious materials like expensive floors and ceilings than a normal house.
At the beginning of 2020, Pronghorn Company acquired a mine for $1,732,800. Of this amount, $112,000 was ascribed to the land value and the remaining portion to the minerals in the mine. Surveys conducted by geologists have indicated that approximately 11,600,000 units of ore appear to be in the mine. Pronghorn incurred $190,400 of development costs associated with this mine prior to any extraction of minerals. It also determined that the fair value of its obligation to prepare the land for an alternative use when all of the mineral has been removed was $44,800. During 2020, 2,718,000 units of ore were extracted and 2,310,000 of these units were sold.
Required:
a. Compute the total amount of depletion for 2020.
b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.
Answer: a. $434880
b. $369,600
Explanation:
a. Compute the total amount of depletion for 2020.
Depletion Rate can be calculated as:
= (Mine cost - Value of land + Obligation + Development cost)/Ore extracted
= ($1,732,800 - $112,000 + $44,800 + $190,400)/$11,600,000
= $1856000/$11600000
= 0.16
Total amount of depletion for 2020 will now be calculated as:
= Depletion Rate × Ore extracted
= 0.16 × 2,718,000
= $434880
b. Compute the amount that is charged as an expense for 2014 for the cost of the minerals sold during 2020.
This will be calculated as the totsl depletion for 2014 divided by the value of the amount of ore that was extracted multiplied with amount of unit sold. This will be:
= (434,880/2,718,000) × 2,310,000
= 0.16 × 2,310,000
= $369,600
Blaine Air Transport Service, Inc., providing air delivery service for businesses, has been in operation for three years. The following transactions occurred in February:
February 1 Paid $275 for rent of hangar space in February.
February 2 Purchased fuel costing $490 on account for the next flight to Dallas.
February 4 Received customer payment of $820 to ship several items to Philadelphia next month.
February 7 Flew cargo from Denver to Dallas; the customer paid $910 for the air transport.
February 10 Paid $175 for an advertisement in the local paper to run on February 19.
February 14 Paid pilot $2,300 in wages for flying in January (recorded as expense in January).
February 18 Flew cargo for two customers from Dallas to Albuquerque for $3,800; one customer paid $1,600 cash and the other asked to be billed.
February 25 Purchased on account $2,550 in spare parts for the planes.
February 27 Declared a $200 cash dividend to be paid in March.
Required:
Prepare journal entries for each transaction. Be sure to categorize each account as an asset (A), liability (L). stockholders' equity (SE). revenue (R). or expense (E).
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
February 1 (Paid $275 for rent of hangar space in February)
Rent (Expense) Dr $275
Cash (Asset) Cr $275
February 2 (Purchased fuel costing $490 on account for the next flight to Dallas.)
Fuel (Expense) Dr $490
Accountt Payable (Liability) Cr $490
February 4 (Received customer payment of $820 to ship several items to Philadelphia next month.)
Cash (Asset) Dr $820
Shipment (R) Cr $820
February 7 (Flew cargo from Denver to Dallas; the customer paid $910 for the air transport)
Cash (A) Dr $910
Ticket (R) Cr $910
February 10 (Paid $175 for an advertisement in the local paper to run on February 19.)
Advertisement (E) Dr $175
Cash (A) Cr $175
February 14 (Paid pilot $2,300 in wages for flying in January (recorded as an expense in January))
Wages payable (L) Dr 2300
Cash (A) Cr 2300
February 18 Flew cargo for two customers from Dallas to Albuquerque for $3,800; one customer paid $1,600 cash and the other asked to be billed.
Cash (A) Dr 1600
Account Receivable (A) Dr 2200
Ticket (R) Cr 3800
February 25 Purchased on account of $2,550 in spare parts for the planes.
Spares (E) Dr 2550
Account Payable (L) Cr 2550
February 27 (Declared a $200 cash dividend to be paid in March.)
Retained Earnings (SE) Dr 200
Dividend Payable (L) Cr 200
A 6.75 percent coupon bond with 13 years left to maturity can be called in two years. The call premium is one year of coupon payments. It is offered for sale at $919.75. What is the yield to call of the bond? Assume interest payments are paid semi-annually and par value is $1,000.
Answer:
YTC = 14.23%
Explanation:
the yield to call formula is:
YTC = {coupon payment + [(call price - market price) / n]} / [(call price + market price) / 2]
YTC = {$33.75 + [($1,067.50 - $919.75) / 4]} / [($1,067.50 + $919.75) / 2]
YTC = ($33.75 + $36.94) / $993.63 = 0.0711 x 2 (semiannual coupon) = 0.1423 = 14.23%
Terms of a lease agreement and related facts were:
a. Incremental costs of commissions for brokering the lease and consummating the completed lease transaction incurred by the lessor were $6,652.
b. The retail cash selling price of the leased asset was $550,000.
c. Its useful life was three years with no residual value.
d. The lease term is three years and the lessor paid $550,000 to acquire the asset.
e. Annual lease payments at the beginning of each year were $200,000.
f. Lessor’s implicit rate when calculating annual rental payments was 9%.
(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Prepare the appropriate entries for the lessor to record the lease and related payments at its beginning, January 1, 2018.
2. Calculate the effective rate of interest revenue after adjusting the net investment by initial direct costs.
3. Record any entry(s) necessary at December 31, 2018, the fiscal year-end.
Answer:
1) January 1, 2018, asset leased
Dr Lease receivable 550,000
Cr Equipment 550,000
January 1, incremental costs associated with lease transaction
Dr Lease receivable 6,652
Cr Cash 6,652
January 1, 2018, first lease payment collected
Dr Cash 200,000
Cr Lease receivable 200,000
2) to calculate the effective rate we can use the present value of an annuity due formula
PV annuity due factor, 3 periods, ?% = present value of lease receivable / annual payment = $556,652 / $200,000 = 2.78326
Now we must use an annuity due table to determine a possible rate. In this case, the exact rate is 8%.
3) December 31, 2018, interest receivable on lease contract
Dr Interest receivable 28,532
Cr Interest revenue 28,532
interest receivable = ($556,652 / $200,000) x 8% = $28,532
marketing costs include what? please be precise
30 POINTS
Answer:
advertising, promotion and public relations
Explanation:
Hope this helps
Answer:
A marketing expense is “an amount of money the company spends on marketing,” according to Cambridge Dictionaries Online. ... Typically, some common marketing expenses include marketing salaries, marketing research, promotions, public relations and advertising costs.
Explanation:
The Polishing Department of Major Company has the following production and manufacturing cost data for September.Materials are entered at the beginning of the process.Production:Beginning Inventory 1,880 units that are 100% complete as to materials and 30% complete as to conversion costs;Units started during the period are 44,300;Ending inventory of 7,200 units 10% complete as to conversion costs.Manufacturing Costs:Beginning Inventory costs, comprised of $21,900 of materials and $37,162 of conversion costs;Materials costs added in Polishing during the month, $214,080;labor and overhead applied in Polishing during the month, $127,600 and $258,440, respectively.Required:1. Compute the equivalent units of production for materials and conversion costs for the month of September.Materials Conversion CostsThe equivalent units of production 2. Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, e.g. 2.25)Materials Conversion CostsUnit Costs 3. Determine the costs to be assigned to the units transferred out and in process. (Round unit costs to 2 decimal places, e.g. 2.25 and final answers to 0 decimal places.)Transferred Out $Ending work in process $
Answer:
1. Materials = 46,180 and Conversion Costs = 39,700
2.Materials = $5.11 and Conversion Costs = $10.66
3.Transferred Out = $614,715 and Ending work in process = $44,467
Explanation:
First, calculate the number of units completed and transferred to finished goods
Number of units completed and transferred to finished goods = Beginning Inventory Units + Units Started during the Period - Ending Inventory Units
Therefore,
Units completed and transferred = 1,880 + 44,300 - 7,200
= 38,980
Calculation of Equivalent Units of Production with respect to Materials and Conversion Costs
1. Materials
Ending Work In Process (7,200 × 100%) = 7,200
Completed and Transferred (38,980 × 100%) = 38,980
Equivalent Units of Production with respect to Materials = 46,180
2. Conversion Costs
Ending Work In Process (7,200 × 10%) = 720
Completed and Transferred (38,980 × 100%) = 38,980
Equivalent Units of Production with respect to Materials = 39,700
Calculation of the unit costs for materials and conversion costs for the month.
Unit Cost = Total Cost ÷ Total Equivalent Units
1. Materials
Unit Cost = ($21,900 + $214,080) ÷ 46,180
= $5.11 (2 decimal places)
2. Conversion Costs
Unit Cost = ($37,162 + $127,600 + $258,440 ) ÷ 39,700
= $10.66 (2 decimal places)
3. Total Unit Cost
Total Unit Cost = Materials + Conversion Costs
= $5.11 + $10.66
= $15.77
Calculation of costs to be assigned to the units transferred out and in process.
Transferred Out = Units Completed and Transferred × Total Unit Cost
= 38,980 × $15.77
= $614,715
Ending work in process = Materials Cost + Conversion Costs
= ($5.11 × 7,200) + ($10.66 × 720)
= $44,467