At December 31, 2026, the following balances existed for MICPA Corporation: Bonds Payable (6%) $600,000 Discount on Bonds Payable 50,000 The bonds mature on 12/31/28. Straight-line amortization is used. If 60% of the bonds are retired at 103 on January 1, 2028, what is the gain or loss on early extinguishment

Answers

Answer 1

Answer:

$25,800

Explanation:

The bonds would mature at the end of the year 2028, which means in 2 years, as result, annual discount amortization is  computed thus:

annual discount amortization=$50,000/2=$25,000

On January 1,2028, the balance in discount amortization is $25,000

Proceeds for 60% redemption=$600,000*60%*103%=$370,800

60% of bonds payable=$600,000*60%=$360,000

60% of unamortized discount=60%*$25,000=$15,000

In effecting the  journal entries, bonds payable is debited with $360,000 while cash and discount on bonds payable are credited with $370,800 and $15,000 respectively.

Total credits=$370,800+$15,000=$385,800  

total debit=$360,000

loss on early extinguishment is $25,800($385,800-$360,000)


Related Questions

Margot starts a new business and contributes $20,000 in cash; she also borrows $25,000 from her local bank. She utilizes the cash to purchase supplies for $5,000 and a computer system for $10,000. After these transactions, the total claims to the company's total resources are:

Answers

Answer:

$45,000

Explanation:

Given the above information, total resources is computed as;

Total resources = Cash + Purchase supplies + Equipment computer system

But

Cash = $20,000 + $25,000 - $5,000 - $10,000 = $30,000

Total resources = $30,000 + $5,000 + $10,000 = $45,000

A review of Parson Corporation's accounting records found that at a volume of 90,000 units, the variable and fixed cost per unit amounted to $8 and $4, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 85,000 units

Answers

Answer:

Total cost= $1,040,000

Explanation:

For 90,000 units:

Unitary variable cost= $8

Unitary fixed cost= $4

First, we need to calculate the total fixed cost:

Total fixed cost= 4*90,000= $360,000

Now, we can determine the total cost for 85,000 units:

Total cost= 85,000*8 + 360,000

Total cost= $1,040,000

Kendra Corporation uses a process-cost accounting system. The company adds direct materials and direct labor at the start of its production process; overhead cost is incurred evenly throughout manufacturing. The firm has no beginning work-in-process inventory; its ending work in process is 40% complete. Which of the following sets of percentages would be used to calculate the correct number of equivalent units in the ending work-in-process inventory?

a. Materials, 100%; labor, 100%; overhead cost, 40%.
b. Materials, 100%; labor, 100%; overhead cost, 100%.
c. Materials, 100%; labor 40%; overhead cost, 40%.
d. Materials, 40%; labor, 40%; overhead cost, 60%.
e. Materials, 40%; labor, 40%; overhead cost, 100%.

Answers

Answer:

a. Materials, 100%; labor, 100%; overhead cost, 40%.

Explanation:

The work in Process have already passed the mark at which Materials and Labor are added, that is the start of its production process so these are both 100% complete. Overheads are 40 % complete, which is the extent of work done on them since they occur evenly.

Terry Dactal has compiled the financial information displayed below. Which of the following is Terry’s net worth? Salaries $72,400 Credit Card Balance $8,600 Cash on Hand $1,500 Utilities paid to date $8,450 Coin Collection $2,350 Jewelry value $8,500 Home value $335,000 Auto loan balance $14,300 Stock Portfolio value $18,500 1967 Ford Mustang value $40,900 Grocery Expenses $7,550 Checking account $3,200 Mortgage Balance $278,600 Property Taxes owed $1,750 Mortgage loan payments made $19,500 Student loan balance $26,200 New York vacation expenses paid $4,200 Auto loan payments paid $6,600 Income taxes paid-to-date $9,100 Clothing/entertainment expense $5,000 Interest earned $400 Insurance premiums paid $5,500

Answers

Answer: $80,500

Explanation:

A person's net worth is their Net assets less their liabilities.

Terry's assets include:

Cash on hand, Coin collection, Home value, Jewellery, stock portfolio, 1967 Ford Mustang, Checking account

Terry's liabilities include:

Credit card balance, Auto loan balance, Mortgage balance, Property taxes owed, Student loan balance.

Net worth is therefore:

= (1,500 + 2,350 + 335,000 + 8,500 + 18,500 + 40,900 + 3,200) - (8,600 + 14,300 + 278,600 + 1,750 + 26,200)

= $80,500

A company has the following cash transactions for the period.
Accounts Amounts Cash
received from sale of products to customers 31,500
Çash received from the bank for long-term loan 36,500
Cash paid to purchase factory equipment (41,500)
Cash paid to merchandise suppliers (10,300)
Cash received from the sale of an unused warehouse 11,300
Cash paid to workers (22,300)
Cash paid for advertisement (2,300)
Cash received for sale of services to customers 21,500
Cash paid for dividends to stockholders (4,300)
Assume the balance of cash at the beginning of the period is $3,300.
Required: 1.
Calculate the ending balance of cash. Ending balance

Answers

Answer:

oha lan buney yaa hepsi english

Pension data for Goldman Company included the following for the current calendar year: Service cost $ 140,000 PBO, January 1 650,000 Plan assets, January 1 700,000 Amortization of prior service cost 5,000 Amortization of net loss 1,000 Discount rate, 6% Expected return on plan assets, 8% Actual return on plan assets, 10% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.)

Answers

Answer:

$129,000

Explanation:

Calculation for pension expense

Service Cost $140,000

Add: Interest Cost $39,000

($650,000 × 6%)

Add: Amortization of prior service cost $5,000

Add: Amortization of net loss $1,000

Less Expected return on plan assets $56,000 ($700,000 × 8%)

Pension Expense $129,000

Therefore Pension Expense is $129,000

As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 30% of Nursery Supplies Inc.'s 20 million shares for $63 million. The fair value and book value of the shares were the same at that time. During the year, Nursery Supplies earned net income of $40 million and distributed cash dividends of $1.00 per share. At the end of the year, the fair value of the shares is $59 million. Required:Prepare the appropriate journal entries from the purchase through the end of the yea

Answers

Answer:

1. Dr Investment in Nursery supplies $63million

Cr Cash $63million

2. Dr Investment in Nursery supplies $12million

Cr Investment Revenue $12million

3. Dr Cash $6million

Cr Investment in Nursery supplies $6million

4. No Entry

Explanation:

Preparation of the appropriate journal entries from the purchase through the end of the yea

1. Preparation of the journal entry to Record the investment in Nursery Supplies shares.

Dr Investment in Nursery supplies $63million

Cr Cash $63million

(Being To record purchase of 30% shares for $63 million)

2. Preparation of the journal entry to Record the investor's share of net income

Dr Investment in Nursery supplies ($40 million x 30%) $12million

Cr Investment Revenue $12million

(Being To record investor share of investee's net income)

3. Preparation of the journal entry to Record the cash dividends received from Nursery Supplies shares.

Dr Cash (20 million shares x 30% share x $1 per share) $6million

Cr Investment in Nursery supplies $6million

(Being To record receipt of dividend)

4. Preparation of the journal entry to Record fair value adjustment at year-end.

No Entry

Identifying type and normal balances of accounts Lo C4 For each of the following (1) identify the type of account as an asset, liability equity, revenue, or expense; (2) identify the normal balance of the account, and (3) select debit (Dr or credit (Cr) to identify the kind of entry that would increase the account balance.
Account Type of Account Normal Balance Increase (Dr. or C
a. Land
b. Cash
c. Legal Expense
d. Prepaid Insurance
e. Accounts Receivable
f. Dividends
g. License Fee Revenue
h. Uneaned Revenue
i. Fees Earned
j. Equipment
k. Notes Payable
l. Common Stock

Answers

Answer:

a. Land  -  Asset, Debit, Dr

b. Cash  - Asset, Debit, Dr

c. Legal Expense  - Expense, Debit, Dr

d. Prepaid Insurance  - Asset, Debit, Dr

e. Accounts Receivable  - Asset, Debit, Dr

f. Dividends  - Equity, Credit, Cr

g. License Fee Revenue  - Revenue, Credit, Cr

h. Uneaned Revenue  - Liability, Credit, Cr

i. Fees Earned  - Revenue, Credit, Cr

j. Equipment  - Asset, Debit, Dr

k. Notes Payable  - Liability, Credit, Cr

l. Common Stock - Equity, Credit, Cr

Explanation:

Assets, liabilities and equity are the elements of a balance sheet. These 3 elements form the accounting equation which is given as

Assets = Liabilities + Equity

Assets usually have a debit balance while equity and liabilities are usually credit balances. Expenses like assets usually have a debit balance while revenue usually has a credit balance.

England and Scotland both produce scones and sweaters. Suppose that an English worker can produce 50 scones per hour or 1 sweater per hour. Suppose that a Scottish worker can produce 40 scones per hour or 2 sweaters per hour.
If free trade exists between the countries, then each country will benefit if
a. England exports scones, Scotland exports sweaters.
b. England exports sweaters, Scotland exports scones.
c. both countries export scones.
d. given the production possibilities, both countries will not benefit from trade.

Answers

Answer:

A

Explanation:

The country with a comparative advantage in the production of a good should export the good

A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries.

England

Comparative advantage in the production of scones = 1/50 = 0.02

Comparative advantage in the production of sweater = 50/1 = 50

Scotland

Comparative advantage in the production of scones = 2/40 =  0.05

Comparative advantage in the production of sweater = 40/2 = 20

England has a comparative advantage in the production of scones and should export scones

Scotland  has a comparative advantage in the production of sweaters and should export sweaters

(C____________ ) among buyers and sellers prohibits a single buyer or seller can dictate the price of a product or resource because others can undercut that price. The regulatory mechanism of the market system is ( c___________ ). As the result, the ( __________ ________ ) is widely distributed. In other words, competition diffuses ( __________ _________ ) and limits the actions of any single seller or buyer

Answers

Answer:

(Competion____________ ) among buyers and sellers prohibits a single buyer or seller can dictate the price of a product or resource because others can undercut that price. The regulatory mechanism of the market system is ( competition___________ ). As the result, the ( _economic_________ ___power_____ ) is widely distributed. In other words, competition diffuses ( __economic________ ___power______ ) and limits the actions of any single seller or buyer.

Explanation:

Economic power refers to the ability of countries, businesses, or individuals to improve their standard of living, making decisions that benefit themselves alone, and reducing the ability of any outside force to reduce their freedom.  Competition refers to the selling and buying of goods and services with others, who are also selling and buying the same goods and services.  It balances economic power, preventing a single individual from monopolizing the market interaction.

Uncle Fred recently died and left $280,000 to his 45-year-old favorite niece. She immediately spent $80,000 on a town home but decided to invest the balance for her retirement at age 65. What rate of return must she earn on her investment over the next 20 years to permit her to withdraw $75,000 at the end of each year through age 80 if her funds earn 10 percent annually during retirement

Answers

Answer:

6.06%

Explanation:

The computation of the rate of return is shown below:

Given that

NPER = 20 years

PV = ($280,000 - $80,000) = $200,000

PMT = $0

FV = $75,000 × PVIFA factor at 10% for 21 years

= $75,000 × 8.6487

= $648,652.50

The following formula should be applied

= RATE(NPER;PMT;-PV;FV;TYPE)

The present value comes in negative

After applying the above formula, the rate of return is 6.06%

Paying higher wages encourages workers to be more productive. Higher wages cause workers to shirk more of their responsibilities. Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity. Paying higher wages tends to reduce the average experience level of a firm's workers.

Answers

Answer:

The answer is "Choice First and third"

Explanation:

Please find the complete question in the attached file.

The higher wages will improve the productivity of workers in various ways, that are salary with the number of workers exceeds the cost of labor, in the fewer countries. It can be associated with both the poor diet and over-market wages in these environments can enable the workers of the company to remain fit and efficient. The fewer employees may decide to seek other employment opportunities when a business pays salaries just above the current market price. This elimination of employee sales will minimize company training costs because new employees need to be trained.

Paul Martin had worked for 12 years for the department of transportation when he applied for a promotion to dispatcher. Martin scored 75 on an interview test. Betty Palmer, another candidate, scored 73 and got the job. Martin sued the county for reverse discrimination. The county said that both Martin and Palmer were qualified and that Palmer had gotten the job as part of a voluntary affirmative action plan designed to achieve a work force that reflected the race and gender composition of the county. The county pointed out that none of 238 skilled craft workers jobs in the county were help by women. Answer the questions below around this case.

a. What issue(s) must the court decide in the case (for example, racial harassment)?
b. If you were the judge, how would you rule? Explain.
c. Describe two ways to help ensure workforce planning and employment are compliant.

Answers

Answer:

a.)

The court has to hear the arguments from both side of the party , analyze the arguments that has imposed by the party on each other. And after analyzing, the court decide the judgement.

b.)

If I were the judge , then i would not consider the case under racial harassment .

Because the country has an argument that Palmer had gotten the job as part of a voluntary affirmative action plan designed to achieve a work force that reflected the race and gender composition of the county.

Also , we know others law that says about equal employment has to give to the person without any discrimination.

c.)

To lower down the illegal occupation activities , proper plan of the workspace is must.

Steps required for workspace planning -

1. Objective of Business

2. Current workforce

3. Workers Necessity

4. Gap Minimization

5. Action plan review.

Explanation:

As given,

Paul Martin had worked for 12 years for the department of transportation when he applied for a promotion to dispatcher.

Martin scored 75 on an interview test.

Betty Palmer, another candidate, scored 73 and got the job.

a.)

The court has to hear the arguments from both side of the party , analyze the arguments that has imposed by the party on each other. And after analyzing, the court decide the judgement.

b.)

If I were the judge , then i would not consider the case under racial harassment .

Because the country has an argument that Palmer had gotten the job as part of a voluntary affirmative action plan designed to achieve a work force that reflected the race and gender composition of the county.

Also , we know others law that says about equal employment has to give to the person without any discrimination.

c.)

To lower down the illegal occupation activities , proper plan of the workspace is must.

Steps required for workspace planning -

1. Objective of Business

2. Current workforce

3. Workers Necessity

4. Gap Minimization

5. Action plan review.

You buy a share of The Ludwig Corporation stock for $19.20. You expect it to pay dividends of $1.11, $1.1833, and $1.2614 in Years 1, 2, and 3, respectively, and you expect to sell it at a price of $23.26 at the end of 3 years. Calculate the growth rate in dividends. Round your answer to two decimal places. % Calculate the expected dividend yield. Round your answer to two decimal places. % Assuming that the calculated growth rate is expected to continue, you can add the dividend yield to the expected growth rate to obtain the expected total rate of return. What is this stock's expected total rate of return (assume market is in equilibrium with the required rate of return equal to the expected return)

Answers

Answer:

P0 = $19.20

D1 = $1.11

D2 = $1.1833

D3 = $1.2614

P3 = $23.26

a. Dividend growth rate = (1.2614-1.1833)/1.1833 = 0.0781/1.1833 = 0.06600186 = 6.60%

b. Expected Dividend Yield=(Expected Dividend/Price)*100 = $1.11/$19.20 = 0.0578125 = 5.78%

c. Total Rate of Return = 6.60% + 5.78% = 12.38%

Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States?

a. The costs of overfishing and other overly intensive uses of resources
b. Federal government paychecks to soldiers
c. The value Of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
d. The variety of goods available to consumers

When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the ________ component of GDP while also ____________ net exports by the same amount. Therefore, the purchase of wood from Brazil causes_________ in US GDP.

Answers

Answer:

a, c , d

investment

decreasing

no effect

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.  

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

6. Externalities

Investment spending by businesses includes purchases made by businesses. So, investment spending increases. Net export decreases because import is a negative function of GDP. The increase and decrease cancel each other out and there would be no change in GDP

A motive is always required for the suspect to be criminally liable

Answers

No, lots of cases have no motives.

Four different corporations, Amber, Blue, Coral, and Daffodil, show the same balance sheet data at at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, arere summarized as follows:
Total Assets Total Liabilities
Beginning of the year $1,220,000 $990,000
End of the year 1,730,000 1,150,000
On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (First determine the amount of increase or decrease in stockholders' equity during the year).
Amber: No additional common stock was issued and no dividends were paid.
Blue: No additional common stock was issued, but dividends of $60,000 were paid.
Coral: Additional common stock of $140,000 was issued, but no dividends were paid.
Daffodil: Additional common stock of $140,000 was issued and dividends of $60,000 were paid.

Answers

Answer:

Amber

Change in stockholders' equity = $580,000 - $230,000 = $350,000

No additional shares issued, so net income = $350,000

Blue

Change in stockholders' equity = $580,000 - $230,000 = $350,000

No additional shares issued, but dividends paid for $60,000, so net income = $410,000

Coral

Change in stockholders' equity = $580,000 - $230,000 = $350,000

Additional shares issued for $140,000, so net income = $210,000

Daffodil

Change in stockholders' equity = $580,000 - $230,000 = $350,000

Additional shares issued for $140,000, dividends paid for $60,000, so net income = $270,000

Shum Manufacturing, which uses the high-low method, makes a product called Kwan. The company incurs three different cost types (A, B, and C) and has a relevant range of operation between 2,500 units and 10,000 units per month. Per-unit costs at two different activity levels for each cost type are presented below. Type A Type B Type C Total 5,000 units $ 4 $ 9 $ 4 $ 17 7,500 units 4 6 3 13 If Shum produces 10,000 units, the total cost would be: Multiple Choice $90,000. $100,000. $110,000. $125,000. None of the answers is correct.

Answers

Answer:

$110,000

Explanation:

Variable cost is determined by high-low method:

Type A = $50,000

Type B = 0

Fixed cost determined using high low method is:

Type A = 0

Type B = $60,000

The total cost of high low method is $110,000.

Suppose that Harry drinks one cup of coffee with his preferred three packs of creamer every day for seven days. What is his utility for that week

Answers

Answer:

21

Explanation:

The computation of the utility for that week is as follows:

Given that

There are three packs

Also it is for seven days

u(x,y) = min(3x,y)

C = 1

x = 1

y = 3

So,

u = min(3,3)

= 3

For 7 days it would be

= 7 × 3

= 21

Hence, the utility for that week is 21

1. Friedman distinguishes between the two concepts that (a) businesses really do act in ways to maximize profit and (b) businesses have a moral responsibility (or, as he puts it, a social responsibility) to act to maximize profit. How does he defend the latter position? (See both the Friedman and Sandbu readings)

Answers

Explanation:

Friedman defends the position that companies have a social responsibility to act to maximize profit, in the sense that, the primary function of companies is to generate profit. The author goes against the growing opinions in society that companies must have social responsibility, that is, they need to create a positive and sensitive corporate image to please political and society interests and counter or even soften the words and actions its central purpose, which is profit generation. For him, social responsibility cannot be politicized in order to be an obligation of companies, as it limits freedom and interests arising from the business.

As a developing nation, India has relied on assistance for building roads, power plants, schools, and hospitals. In order to receive assistance, the government of India has lower trade barriers and fosters private business. Many high-tech start-ups and call centers are now located in India. This example illustrates the function of the _______.

Answers

Answer:

international monetary fund (IMF)

Explanation:

This example illustrates the function of the international monetary fund (IMF). This fund is what helps India build all the infrastructure that they need in order to maintain its financial stability and allows it to improve its international trade and relationships. Since India is a member of the International monetary fund and contributes to it they are able to receive assistance for such expenses from the fund itself. All country members contribute to the fund and mutually benefit from doing so.

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 100 carts per hour. Workers receive $11 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $12 per hour, while output increased by 4 carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 3 decimal places.)

Answers

Answer:

A. Labor productivity before=16 cart per workers-hour

Labor productivity After=26 cart per workers-hour

B. Multifactor productivity Before=0.94 carts per hour

Multifactor productivity before=0.94 carts per hour

Explanation:

A. Computation of labor productivity under each system

Labor productivity Before=100 carts per hour/6 workers

Labor productivity Before=16 cart per workers-hour

Labor productivity After=(100 carts per hour+4 carts per hour)/4 workers

Labor productivity After=(104carts per hour /4 workers

Labor productivity After=26 cart per workers-hour

B. Computation of the multifactor productivity under each system.

Multifactor productivity Before=100 carts per hour/(6 workers*$11 per hour)+$40 per hour

Multifactor productivity Before=100 carts per hour/($66 per hour+$40 per hour)

Multifactor productivity Before=100 carts per hour/$106 per hour

Multifactor productivity Before=0.94 carts per hour

Multifactor productivity before=(100carts per hour + 4carts per hour)/(4 workers * $11 per hour$)+($40 per hour+12 per hour)

Multifactor productivity before=(104carts per hour /(4 workers * $11 per hour$)+($40 per hour+12 per hour)

Multifactor productivity before=(104carts per hour /($66 per hour+$52 per hour)

Multifactor productivity before=(104carts per hour /118per hour

Multifactor productivity before=0.94 carts per hour

Below is the complete list of accounts of Sooner Company and the related balance at the end of April. All accounts have their normal debit or credit balance. Cash, $3,200; Prepaid Rent, $6,700; Accounts Payable $3,600; Common Stock, $33,000; Service Revenue, $24,700; Salaries Expense, $7,500; Accounts Receivable, $5,400; Land, $53,000; Deferred Revenue, $1,950; Retained Earnings, $21,250; Supplies Expense, $8,700. Required: Prepare a trial balance with the list of accounts in the following order: assets, liabilities, stockholders' equity, revenues, and expenses.

Answers

Answer:

                                           Trial Balance

                                                     Debit               Credit

Land                                             53000

Accounts Receivable                  5400

Cash                                              3200

Prepaid Rent                                6700

Accounts Payable                                                 3600

Deferred revenue                                                  1950

Common Stock                                                      33000

Retained earnings                                                 21250

Service Revenue                                                   24700

Salaries expense                          7500

Supplies expense                        8700                            

Totals                                            84500               84500                    

Explanation:

The trial balance has been made in the answer section.

These are selected 2017 transactions for Swifty Corporation: Jan. 1 Purchased a copyright for $122,750. The copyright has a useful life of 5 years and a remaining legal life of 30 years. Mar. 1 Purchased a patent with an estimated useful life of 4 years and a legal life of 26 years for $51,120. Sept. 1 Purchased a small company and recorded goodwill of $154,200. Its useful life is indefinite. Prepare all adjusting entries at December 31 to record amortization required by the events.

Answers

Answer:

Dr Amortization expense $24,550

Cr Copyright asset $24,550

Dr Amortization $10,650

Cr Patent asset $10,650

Explanation:

Preparation of all adjusting entries at December 31 to record amortization required by the events

Based on the information given the adjusting entries at December 31 to record amortization required by the events will be :

Dr Amortization expense $24,550

Cr Copyright asset $24,550

Dr Amortization $10,650

Cr Patent asset $10,650

Calculation for Annual amortization of copyrights

Annual amortization of copyrights = Cost of copyright/Useful life

Annual amortization of copyrights= $122,750/5

Annual amortization of copyrights= $24,550

Calculation for Annual amortization of patent

Annual amortization of patent = Cost of patents/Useful life

Annual amortization of patent= $51,120/4

Annual amortization of patent= $12780

Amortization of patent for 2017 = $12780 x 10/12

= $10,650

Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics.

Required:
For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object

Cost Cost Object Direct cost/indirect Cost

Ex. Catered food served to patients A particular patient
The wages of pediatric nurses The pediatric department
Prescription drugs A particular patient
Heating the hospital The pediatric department
The salary of the head of pediatrics The pediatric department
The salary of the head of pediatrics A particular pediatric patient
Hospital chaplain's salary A particular patient
Lab tests by outside contractor A particular patient
Lab tests by outside contractor A particular department

Answers

Answer:

   Cost and Cost object / Explanation

a. The wages of pediatric nurses/The pediatric department

The wages of pediatric nurses are the costs and the pediatric department is the cost object and are directly related to each other. Wages is an element of direct cost. The wages of pediatric nurses relating to the pediatric department are Direct costs.

b. Prescription drugs / A particular patient

The prescription drugs are the costs and a particular patient is the cost object. The prescription drugs are direct costs as such costs are directly attributable to the treatment of a particular patient. This cost is incurred in direct proportion to the requirement of the pediatric patient.

c. Heating the hospital / The pediatric department

The cost of heating the hospital is an indirect cost as it is not directly required for the treatment of the pediatric patient. The cost of heating the hospital is to be incurred irrespective of the number of patients. It is a fixed cost and is not related to the level of activity.

d. The salary of the head of pediatrics / The pediatric department

The expenses of pediatric department are dependent upon the number of pediatric patients as it is the principal source of revenue for the department. The salary of the head of pediatrics relating to the pediatric patient is directly related to the number of pediatric patients. Thus, it is a direct cost.

e. The salary of the head of pediatrics / A particular pediatric patient

The treatment of the particular patient involves certain fixed or variable costs. The salary of the head of pediatrics is not directly relevant for the treatment of the particular patient. Thus, it is an indirect cost.

f. Hospital chaplain's salary / A particular patient

Hospital chaplain’s salary relating to a particular patient is not directly related to the patient. It is an indirect cost as it is a period cost or fixed cost. It has to be incurred irrespective of the number of patients.

g. Lab tests by outside contractor / A particular patient

Lab test is for the treatment of a particular patient due to which it is considered as a direct cost for the hospital. Lab tests by outside contractor relating to a particular patient is a direct cost as the nature of the expense is variable.  

h. Lab tests by outside contractor / A particular department

This cost is a direct cost as it relates to a particular department and not the entire hospital. Lab tests by outside contractor relating to a particular department is a direct cost as the nature of the expense is variable.

The Beckham Company has the following information about their activity cost pools: Activity Cost Pools Total Overhead Cost Total Activity Machine Setups $ 125,000 5,000 setups Customer Orders $ 200,000 1,250 orders Product Design $ 300,000 2,500 product design hours The activity rate for machine setups is ________. multiple choice $125,000 $0.04 per setup $10 per setup $25 per setup

Answers

Answer:

$25 per setup

Explanation:

With regards to the above, activity rate is computed as;

= Activity cost pool resources / Activity driver

Activity cost pool resources = $125,000

Activity driver = 5,000

Activity rate for machine setup = $125,000/5,000 = $25 per setup

Which 4 sections of the Overview screen can be used to perform a high-level review?

A. Company Setup
B. Outstanding Taxes
C. Bank Activity
D. Common issues
E. Transaction Volume
F. Client Mileage

Answers

Answer:

Company Setup, Bank Activity, Transaction Volume and Client Mileage

Explanation:

The nature of a company setup is an important aspect to perform a high level review. The set up of the company i.e. Private Ltd. or Public Ltd. or the goal and the motive of the company its operation to earn revenue are important aspects of a high level review. Not only the company set up but also the Banking Activity, Transaction Volume and Client Mileage are also some important areas in which the review takes place. if the company has a large volume of transaction and as well as it is doing a good amount of business with the banks then it can be said that the company is healthy. Moreover the customer satisfaction is an important aspect of a high level review. The following other options are incorrect because they are less important for a high level review.

During January, Year 2, Geo entered into the following transactions: Paid $728 on account for utilities that were used during December, Year 1. Purchased $488 of supplies for cash. Signed a rental agreement for office space and paid $6,100 in advance for six months of rent beginning February 1, Year 2. Purchased $21,000 of new equipment, signing a promissory note. Provided $32,500 of services. $16,000 was received in cash and $16,500 was provided on credit. Paid workers $7,400 for work done in January. Required: Prepare journal entries for each of the following January activities, and post results to the relevant T-accounts. Compute the ending balance of each T-account. Beginning balances have been entered.

Answers

Answer:

Geo

1. Journal Entries:

1. Debit Utilities Payable $728

Credit Cash $728

To record the payment of utilities on account.

2. Debit Supplies $488

Credit Cash $488

To record the purchase of supplies for cash.

3. Debit Prepaid Rent $6,100

Credit Cash $6,100

To record the prepayment of rent for 6 six months.

4. Debit Equipment $21,000

Credit Note Payable $21,000

To record the purchase of equipment on account.

5. Debit Cash $16,000

Debit Accounts Receivable $16,500

Credit Services Revenue $32,500

To record the rendering of services for cash and on account.

6. Debit Salaries Expense $7,400

Credit Cash $7,400

To record the payment of salaries for January.

2. T-accounts:

Utilities Payable

Accounts Titles       Debit        Credit

Cash                        $728

Cash

Accounts Titles       Debit        Credit

Utilities payable                       $728

Supplies                                     488

Prepaid Rent                           6,100

Service Revenue  $16,000

Salaries Expense                   7,400

Supplies

Accounts Titles       Debit        Credit

Cash                       $488

Prepaid Rent

Accounts Titles       Debit        Credit

Cash                    $6,100

Equipment

Accounts Titles       Debit        Credit

Note Payable        $21,000

Note Payable

Accounts Titles       Debit        Credit

Equipment                             $21,000

Accounts Receivable

Accounts Titles       Debit        Credit

Service Revenue $16,500

Services Revenue

Accounts Titles            Debit        Credit

Cash                          $16,000

Accounts Receivable 16,500

Salaries Expense

Accounts Titles       Debit        Credit

Cash                      $7,400

Explanation:

Since the beginning balances were not supplied, the T-accounts are not balanced at the end of the period.  Journal entries were prepared to record the daily business transactions for the first time in the accounting system.  The entries showed the accounts to be debited and credited respectively.

Sheffield Corp. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 250, the only job still in process at the end of August, has been charged with manufacturing overhead of $11700. What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000

Answers

Answer:

$20,300

Explanation:

Calculation for What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000

Direct materials charged to Job 250=$45,000 - ($11,700 / .90) - $11,700

Direct materials charged to Job 250=$45,000 - $13,000- $11,700

Direct materials charged to Job 250= $20,300

Therefore the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is $45000 will be $20,300

A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.

 Basic       Deluxe
Sales (units) 8,000 2,000
Sales price per unit $8,000 $12,000
Variable costs per unit $6,400 $9,000

Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models.

Required:
a. What is the sales activity variance for the basic model?
b. Is the sales activity variance for the basic model favorable or unfavorable? What is the sales activity variance for the deluxe model?
c. What is the sales mix variance for the basic model?
d. What is the sales quantity variance for the basic model?
e. What is the sales mix variance for the deluxe model based?
f. What is the sales quantity variance for the deluxe model?

Answers

Answer:

A. $1,600,000

B. Unfavorable

$2,400,000

C. $1,344,000

D. $256,000

E. $2,520,000

F. $120,000

Explanation:

a. Calculation for What is the sales activity variance for the basic model

Sales activity variance=(7,000 - 8,000) *($8,000 - $6,400)

Sales activity variance=$1,000*$600

Sales activity variance= $1,600,000

Therefore Sales activity variance for the basic model will be $1,600,000

b. The sales activity variance for the basic model is UNFAVORABLE reason been that the sales amount is lesser than the budgeted amount

Calculation for What is the sales activity variance for the deluxe model

Sales activity variance=(2,800 - 2,000) *($12,000 - $9,000)

Sales activity variance=800*3,000

Sales activity variance= $2,400,000

Therefore the sales activity variance for the deluxe model will be $2,400,000

c. Calculation for What is the sales mix variance for the basic model

Sales mix variance=[7,000 - 8,000/10,000 *(7,000 + 2,800)] *($8,000 - $6,400)

Sales mix variance=[7,000 - 80% *(7,000 + 2,800)] *($8,000 - $6,400)

Sales mix variance=[7,000 - 80% *(9,800)] *($1,600)

Sales mix variance=[7,000 -7,840 ] *($1,600)

Sales mix variance=840*$1,600

Sales mix variance= $1,344,000

Therefore the sales mix variance for the basic model will be $1,344,000

d. Calculation for What is the sales quantity variance for the basic model

Sales quantity variance=(9,800 - 10,000) x (8,000/10,000) x ($8,000 - $6,400)

Sales quantity variance= $256,000

Therefore the sales quantity variance for the basic model will be $256,000

e. Calculation for What is the sales mix variance for the deluxe model based

Sales mix variance=[2,800 - 2,000/10,000 *(7,000 + 2,800)] *($12,000 - $9,000)

Sales mix variance=[2,800 - 20% *(7,000 + 2,800)] *($12,000 - $9,000)

Sales mix variance=[2,800 - 20% *(9,800)] *($3,000)

Sales mix variance=[2,800 -1,960 ] *($3,000)

Sales mix variance=840*$3,000

Sales mix variance= $2,520,000

Therefore the sales mix variance for the deluxe model based will be $2,520,000

f. Calculation for What is the sales quantity variance for the deluxe model

Sales quantity variance=(9,800 - 10,000) x (2,000/10,000) x ($12,000 - $9,000)

Sales quantity variance= $120,000

Therefore the sales quantity variance for the deluxe model will be $120,000

The question is about variances of a machine distributor.

A Sales Activity Variance Basic

8000 - 7000 = 1000 * $8000

= $8,000,000

B. Unfavorable

Sales Activity Variance Deluxe

2000 - 2800 = 800 * $12000

=9,600,000

Favorable  

Sales Mix Variance Basic

$8000 - $6400 = $1600

1000 * $1600 = $1,600,000

Sales Mix Variance Deluxe

$12000 - $9000 = $3000

800 * $3000 = $2,400,000

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