Answer:
d. Debit to prepaid insurance of $10,000
Explanation:
The company has paid for insurance that covers a period of 4-year, hence, based on the matching concept it is expected that the insurance cost would be expensed over 4 years as well.
However, the company has debited the whole $12,000 to insurance expense in year 1, hence, we need to adjust for the remaining cost of insurance for the future period.
Insurance expense for the 8-month period(May-Dec)=$12,000*8/48=$2000
Note there are 48 months in 4 years
balance of insurance paid=$12,000-$2,000=$10,000
The $10,000 would be credited to insurance in order to reduce the insurance recognized earlier as $12,000 to only $2,000 while prepaid insurance is debited with $10,000
19. In its accrual basis income statement for the year ended December 31, 2012, Nelson Company reported revenue of $3,500,000. Additional information is as follows: Accounts receivable-- Beg.
December 31, 2011 ............... $ 750,000
Net income for 2012 .................................. 140,000
Accounts receivable--End. December 31, 2012 ............... 1,010,000
Nelson should report cash collected from customers in its 2012 statement of cash flows (direct method) in the amount of
a. $3,240,000.
b. $3,100,000.
c. $3,380,000.
d. $3,760,000.
____ 20. Stiggins Corporation had the following account balances for 2012: December 31 January 1
Accounts Payable ...................... $67,200 $58,200
Prepaid Rent Expense .................. 24,600 37,200
Accounts Receivable (net) ............. 84,000 66,600
Stiggins' 2012 net income is $450,000. What amount should Stiggins include as net cash provided by operating activities in its 2012 statement of cash flows?
a. $436,200
b. $445,200
c. $453,600
d. $454,200
Answer:
a. $3,240,000.
b. $445,200
Explanation:
1. Particulars Amount
Beginning account receivable $750,000
Add: Revenue $3,500,000
Less: Ending account receivable $1,010,000
Cash collected from customer $3,240,000
2. Particulars Amount
Net income $450,000
Adjustment to reconcile net income
Increase account payable $9,000
Decrease prepaid rent expenses $12,600
Increase account receivable $17,400 $4,200
Net cash provided by operating activities $454,200
Match each type of adjusting entry with its definition.
Deferred revenue
Accrued expenses
Prepaid expenses
Accrued revenue
Match each of the options above to the items below.
Receive cash in the current period that will be recorded as a revenue in a future period.
Record an expense in the current period that will be paid in cash in a future period.
Record a revenue in the current period that will be collected in cash in a future period.
Pay cash (or have an obligation to pay cash) in the current period that will be recorded as an expense in a future period.
Answer and Explanation:
The matching is as follows:
1. Deferred revenue - the cash would be received in the present period and the same would be reported as a revenue for the future period
2. Accrued expense - It would be recorded as an expense for a present period but the cash would be paid in the future
3. Prepaid expense - The cash is paid or the obligation is to the pay the cash in the present period but the expense would be recorded in the future period
4. Accrued revenue - the revenue is recorded in the present period but the cash would be collected in a future period
WFO Corporation has gross receipts according to the following schedule:
Year 1
$22.00 million
Year 2
$24.00 million
Year 3
$26.00 million
Year 4
$24.50 million
Year 5
$25.00 million
Year 6
$27.00 million
If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?
Answer:
WFO Corporation
Given WFO Corporation's annual gross receipts, which exceed $20 million, it is expected to use the accrual basis starting from Year 1, whether it is a C-Corporation or an S-Corporation.
Explanation:
a) Data and Calculations:
Gross Receipts:
Year 1 $22.00 million
Year 2 $24.00 million
Year 3 $26.00 million
Year 4 $24.50 million
Year 5 $25.00 million
Year 6 $27.00 million
b) For a C-Corporation, when the average gross receipts for the past three years exceed $5 million, the corporation is expected to change from cash basis to accrual basis. Assuming that WFO Corporation is an S-Corporation, it is expected to change to the accrual basis if its annual gross receipts exceed $10 million.
Hillman Corporation reported a decrease in accounts receivable of $391,216. This is best defined as a _________ of cash on the _______________ segment on the statement of cash flows. source of cash; investing activities use of cash; operating activities use of cash investing activities source of cash; operating activities source of cash financing activities use of cash financing activities
Answer:
This is best defined as a SOURCE of cash on the OPERATING segment on the statement of cash flows.
Explanation:
The operating sector of the cash flow statement includes net income plus any adjustments that include depreciation expense, changes in accounts receivables, inventories, accounts payables, etc.
A decrease in accounts receivable increases operating cash flows.
The Garden Company began the accounting period with a $46,000 credit balance in its Accounts Payable account. During the accounting period, Garden Company incurred expenses on account of $125,000. The ending Accounts Payable balance was $65,000. Required Based on this information, determine the amount of cash outflow for expenses during the accounting period. (Hint: Use a T-account for Accounts Payable. Enter the debits and credits for the given events, and solve for the missing amount.)
Answer:
the cash outflow for expenses is $106,000
Explanation:
The computation of the cash outflow for expenses is shown below:
Beginning balance $46,000
add; expenses $125,000
less; ending balance -$65,000
Cash outflow for expenses $106,000
Hence, the cash outflow for expenses is $106,000
You are looking at a one-year loan of $26,000. The interest rate is quoted as 11 percent plus two points. A point on a loan is 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. The interest rate quotation in this example requires the borrower to pay two points to the lender up front and repay the loan later with 11 percent interest.
What rate would you actually be paying here? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Interest rate %
Answer:
the rate of interest is 13.27%
Explanation:
The computation of the actual rate paid is shown below;
Present value is
= $26,000 - 2% of $26,000
= $26,000 - $520
= $25,480
The future value is
= $26,000 × (1 + 0.11)
= $28,860
Now as we know that
Future value = Present value × (1 + rate of interest)^number of years
$28,860 = $25,480 × (1 + rate of interest)
So, the rate of interest is 13.27%
Debit and Credit Effects of Transactions
Lincoln Corporation was involved in the following transactions during the current year:
Lincoln borrowed cash from the local bank on a note payable.
Lincoln purchased operating assets on credit. Lincoln paid dividends in cash.
Lincoln purchased supplies inventory on credit.
Lincoln used a portion of the supplies purchased in Transaction d.
Lincoln provided services in exchange for cash from the customer.
A customer received services from Lincoln on credit.
The owners invested cash in the business in exchange for common stock.
The payable from Transaction d was paid in full.
The receivable from Transaction g was collected in full.
Lincoln paid wages in cash.
Indicate the effect on assets, liabilities and stockholders equity.
Solution :
Stock holder's equity
Assets = Liabilities + Contributed Capital Retained earnings
a. Increase Increase
(debit) (credit)
b. Increase Increase
(debit) (credit)
c. Decrease Decrease
(credit) (debit)
d. Increase Increase
(debit) (credit)
e. Decrease Decrease
(credit) (debit)
f. Increase Increase
(debit) (Credit)
g. Increase Increase
(debit) (Credit)
h. Increase Increase
( debit) (credit)
i. Decrease Decrease
(Credit) (debit)
j. Increase/Decrease
(debit)/(credit)
k. Decrease Decrease
(credit) (debit)
Reporting Uncollectible Accounts and Accounts Receivable
LaFond Company analyzes its accounts receivable at December 31, 2016, and arrives at the aged categories below along with the percentages that are estimated as uncollectible.
Age Group Accounts Receivable Estimated Loss %
Current (not past due) $250,000 0.5%
1-30 days past due 90,000 1.0
31-60 days past due 20,000 2.0
61-120 days past due 11,000 5.0
121-180 days past due 6,000 10.0
Over 180 days past due 4,000 25.0
Total accounts receivable 381,000
At the beginning of the fourth quarter of 2016, there was a credit balance of $4,350 in the Allowance for Uncollectible Accounts. During the fourth quarter, LaFond Company wrote off $3,830 in receivables as uncollectible.
A. What amount of bad debts expense will LaFond report for 2016?
B. What is the balance of accounts receivable that it reports on its December 31, 2016, balance sheet? $376,300
C. Set up T-accounts for both Bad Debt Expense and for Allowance for Uncollectible Accounts. Enter any beginning balances and effects from the information above (including your results from parts a and b).
Bad Debts Expense Allowance for Doubtful Accounts
A) 4,700 0 Bag 0 4,350
Bal.
Balance 4,700 0 Write-off 3,850
Solution :
Account Estimated Estimated
receivable loss% bad debts
Current 250,000 0.5 1250
1-30 days of past due 90,000 1.0 900
31-60 days of past due 20,000 2.0 400
61-120 days of past due 11,000 5.0 550
121-180 days of past due 6,000 10.0 600
Over 180 days of past due 4,000 25.0 1000
Total account receivable 381,000 4700
a). The amount for the bad debts expense is = 4700 - (4350 - 3830)
= 4180
b). Balance in the accounts receivable
Accounts receivable = 381,000
Less : allowance for bad debts = - 4180
Net realizable value of the accounts receivable = 376,820
c). Bad debts expense
a). 4180
Balance: 4180
The allowance for un-collectible account
Beg. Bal : 4350
write off : 3830
a). 4180
Balance 4700
Morris Company applies overhead based on direct labor costs. For the current year, Morris Company estimated total overhead costs to be $432,000, and direct labor costs to be $2,160,000. Actual overhead costs for the year totaled $404,000, and actual direct labor costs totaled $1,880,000. At year-end, the balance in the Factory Overhead account is a:
Answer:
$28,000 Underapplied
Explanation:
Calculation for what the balance in the Factory Overhead account is
Estimated Overhead Cost/Estimated DL = Overhead Rate
$432,000/$2,160,000 = 20 %
Actual Overhead: $404,000
Applied Overhead: (DL 20%) = ($1,880,000 20%) = $376,000
Actual OH - Applied OH = FOH
$404,000 - $376,000 =
$28,000 Underapplied
Therefore At year-end, the balance in the Factory Overhead account is a:$28,000 Underapplied
Problem 3 (Current Liability Entries and Adjustments) Described below are certain transactions of Edwardson Corporation. The company uses the periodic inventory system: 1. On February 2, the corporation purchased goods from Martin Company for $70,000 subject to cash discount terms of 2/10, n/30. Purchases and accounts payable are recorded by the corporation at net amounts after cash discounts. The invoice was paid on February 26. 2. On April 1, the corporation bought a truck for $50,000 from General Motors Company, paying $4,000 in cash and signing a 1-year, 12% note for the balance of the purchase price. 3. On May 1, the corporation borrowed $83,000 from Chicago National Bank by signing a $92,000 zerointerest-bearing note due 1 year from May 1. 4. On August 1, the board of directors declared a $300,000 cash dividend that was payable on September 10 to stockholders of record on August 31. Instructions (a) Make all the journal entries necessary to record the transactions above using appropriate dates. (b) Edwardson Corporation's year-end is December 31. Assuming that no adjusting entries relative to the transactions above have been recorded, prepare any adjusting journal entries concerning interest that are necessary to present fair financial statements at December 31. Assume straight-line amortization of discounts.
Answer:
1. February 2
Dr Purchases68,600
Cr Account payable 68,600
February 26
Dr Account payable 68,600
Dr Purchase Discount loss 1,400
Cr Cash 70,000
December 31
No adjustment necessary
2. April 1
Dr Trucks 50,000
Cr Cash 4,000
Cr Note payable 46,000
December 31
Dr Interest expenese 4,140
Cr Interest Payable 4,140
3. May 1
Dr Cash 83,000
Dr Discount on notes payable 9,000
Cr Notes payable 92,000
December 31
Dr Interest expense 6,000
Cr Discount on notes payable 6,000
4. Aug 1
Dr Dividend $300,000
Cr Dividend payable $300,000
Sept 10
Dr Dividend payable$300,000
Cr Cash $300,000
December 31
No adjustment necessary
Explanation:
Preparation of the journal entries
1. February 2
Dr Purchases68,600
[$70,000 * (100%-2%)]
Cr Account payable 68,600
February 26
Dr Account payable 68,600
Dr Purchase Discount loss 1,400
(70,000-68,600)
Cr Cash 70,000
December 31
No adjustment necessary
2. April 1
Dr Trucks 50,000
Cr Cash 4,000
Cr Note payable 46,000
(50,000-4,000)
December 31
Dr Interest expenese 4,140
Cr Interest Payable 4,140
($46,000* 12% * 9/12 = $4,140)
3. May 1
Dr Cash 83,000
Dr Discount on notes payable 9,000
Cr Notes payable 92,000
December 31
Dr Interest expense 6,000
Cr Discount on notes payable 6,000
($9,000 * 8/12 (STRAIGHT-LINE) = $6,000)
4. Aug 1
Dr Dividend $300,000
Cr Dividend payable $300,000
Sept 10
Dr Dividend payable$300,000
Cr Cash $300,000
December 31
No adjustment necessary
A company purchased $2,000 of merchandise on July 5 with terms 1/10, n/30. On July 7, it returned $220 worth of merchandise. On July 8, it paid the full amount due. The amount of the cash paid on July 8 equals:
Answer:
$1,762.2
Explanation:
Calculation for what The amount of the cash paid on July 8 equals:
Cash Paid = ($2,000 - $220) * (199%-1%)
Cash Paid = ($2,000 - $220) * 0.99
Cash Paid = ($1,780*0.99)
Cash Paid = $1,762.2
Therefore The amount of the cash paid on July 8 equals:$1,762.2
what are the consequences of bad netiquette
Answer:
it can make people or students uncomfortable
student will feel irritation
students will feel embracement in front of many students
Explanation:
3. Curve Number and SCS Travel Time Assignment (2 pts) You need to calculate the curve number for a site which is composed of: 25 acres industrial buildings, 125 acres 1 acre lots, 60 acres parks/open space with good cover, 40 acres of commercial development, and 225 acres of meadows. The soil was determined to be 50% Sand, 25 % Silt and 25% Clay. a. Determine the Soils Type b. Determine Curve Number for AMC III.
Solution :
It is given that the soil consists of :
Sand -- 50 %
Silt -- 25 %
Clay -- 25 %
Clay is present in the soil and so it has a very slow infiltration rates when the soil is thoroughly wetted.
a). Therefore the type of soil bis HSG Group D.
b). It is give that :
Industrial building is 25 acres, i.e.
CN = 93
adjusted CN = 93 x 1 = 93
I acre lots is 125 acres, i.e.
CN = 84
Adjusted CN = 84 x 1.07 = 89.88
= 90 (approx.)
60 acres of open or park space, i.e.
CN = 80
Adjusted CN = 80 x 1.14 = 91.2
= 91 (approx.)
225 acres of the meadows
CN = 78
Adjusted CN = 78 x 1.14 = 88.92
= 89 (approx.)
Commercial development of 40 acres, i.e.
CN = 95
Adjusted CN = 95 x 1 = 95
Therefore the curve number is given by :
[tex]$=\frac{(25 \times 93)+(125 \times 90)+(60 \times 91)+(40 \times 95)+(225 \times 78)}{25+125+60+40+225}$[/tex]
[tex]$= 85.02$[/tex]
[tex]$\sim 85$[/tex]
Thus, the curve number for the site for AMC III = 85
Answer:
It is given that the soil consists of :
Sand -- 50 %
Silt -- 25 %
Clay -- 25 %
Clay is present in the soil and so it has a very slow infiltration rates when the soil is thoroughly wetted.
a). Therefore the type of soil bis HSG Group D.
b). It is give that :
Industrial building is 25 acres, i.e.
CN = 93
adjusted CN = 93 x 1 = 93
I acre lots is 125 acres, i.e.
CN = 84
Adjusted CN = 84 x 1.07 = 89.88
= 90 (approx.)
60 acres of open or park space, i.e.
CN = 80
Adjusted CN = 80 x 1.14 = 91.2
= 91 (approx.)
225 acres of the meadows
CN = 78
Adjusted CN = 78 x 1.14 = 88.92
= 89 (approx.)
Commercial development of 40 acres, i.e.
CN = 95
Adjusted CN = 95 x 1 = 95
Therefore the curve number is given by :
Thus, the curve number for the site for AMC III = 85
Explanation:
The following information pertains to Darius Jakande's personal financial transactions. Opening Balances - December 1, 2018 Cash $14,200 Contents of Home $1,900 Automobile $19,900 House $156,900 Unpaid Accounts $6,400 Bank Loan $55,700 Transactions for the month of December 2018. 1. Paid maintenance expenses for the month of December with $800 cash. 2. Purchased a new computer worth $2,800 with cash. 3. Paid credit card liability of $6,400 (Unpaid Accounts) in full. 4. Paid telephone, electricity and water bill for December with $600 cash. 5. Purchased $2,100 of groceries and goods for personal consumption with cash. 6. Deposited $4,100 salary earned during the month. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a deficit. The T-Account fields are labeled by transaction number. Record each transaction by entering the value into the corresponding T-Account field. Required a) Using the information provided, record the opening balances in the T-accounts. b) Record the transactions for the month of December in the T-accounts.
Answer:
Darius Jakande
T-accounts:a) Opening balances:
Cash
Account Title Debit Credit
Beginning balance 14,200
Contents of Home
Account Title Debit Credit
Beginning balance 1,900
Automobile
Account Title Debit Credit
Beginning balance 19,900
House
Account Title Debit Credit
Beginning balance 156,900
Unpaid Accounts
Account Title Debit Credit
Beginning balance 6,400
Bank Loan
Account Title Debit Credit
Beginning balance 55,700
Net Worth
Account Title Debit Credit
Beginning balance 130,800
b) Transactions for the month of December:
Cash
Account Title Debit Credit
Beginning balance 14,200
Maintenance expenses 800
Computer 2,800
Unpaid accounts 6,400
Utilities expenses 600
Food expenses 2,100
Salary 4,100
Contents of Home
Account Title Debit Credit
Beginning balance 1,900
Computer
Account Title Debit Credit
Cash 2,800
Automobile
Account Title Debit Credit
Beginning balance 19,900
House
Account Title Debit Credit
Beginning balance 156,900
Unpaid Accounts
Account Title Debit Credit
Beginning balance 6,400
Cash 6,400
Bank Loan
Account Title Debit Credit
Beginning balance 55,700
Net Worth
Account Title Debit Credit
Beginning balance 130,800
Salary Income
Account Title Debit Credit
Cash 4,100
Maintenance Expenses
Account Title Debit Credit
Cash 800
Utilities Expenses
Account Title Debit Credit
Cash 600
Food Expenses
Account Title Debit Credit
Cash 2,100
Explanation:
a) Data and Calculations:
Opening Balances - December 1, 2018
Cash $14,200
Contents of Home $1,900
Automobile $19,900
House $156,900
Total assets $192,900
Unpaid Accounts $6,400
Bank Loan $55,700
Total liabilities $62,100
Net Worth = $130,800 ($192,900 - $62,100)
White Company has two departments, Cutting and Finishing. The company uses a job-order costing system and computes a predetermined overhead rate in each department. The Cutting Department bases its rate on machine-hours, and the Finishing Department bases its rate on direct labor-hours. At the beginning of the year, the company made the following estimates:
Cutting Finishing
Direct labor-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,000 30,000
Machine-hours . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48,000 5,000
Total fixed manufacturing overhead cost . . . . . . . . . . . . . . . . $264,000 $366,000
Variable manufacturing overhead per machine-hour . . . . . . ....$2.00 ______
Variable manufacturing overhead per direct labor-hour . . . . . _____ $4.00
Required:
Compute the predetermined overhead rate to be used in each department.
Answer and Explanation:
The computation of the predetermined overhead rate is shown below:
For Cutting department
= Variable manufacturing overhead per machine hour + (Total fixed manufacturing overhead ÷ machine hours)
= $2 + ($264,000 ÷ 48,000)
= $2 + $5.50
= $7.50
For finishing department
= Variable manufacturing overhead per direct labour + (Total fixed manufacturing overhead ÷ direct labor hours)
= $4 + ($366,000 ÷ 30,000)
= $4 + $12.20
= $16.20
Sunland Company began operations in July 2019. At the end of the month, the company prepares monthly financial statements. It has the following information for the month. 1. At July 31, the company owed employees $1,800 in salaries that the company will pay in August. 2. On July 1, the company borrowed $32,000 from a local bank on a 10-year note. The annual interest rate is 12%. 3. Service revenue unrecorded in July totaled $2,600. Prepare the adjusting entries needed at July 31, 2019. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer:
July 31, 2019
Dr Salaries and Wages Expense $1,800
Cr Salaries and Wages Payable $1,800
Dr Interest Expense 320
Cr Interested Payable 320
Dr Accounts Receivable $2,600
Cr Service Revenue $2,600
Explanation:
Preparation of the adjusting entries needed at July 31, 2019
July 31, 2019
Dr Salaries and Wages Expense $1,800
Cr Salaries and Wages Payable $1,800
Dr Interest Expense 320
Cr Interested Payable 320
[$32,000*12%-($32,000*12%*11/12)]
Dr Accounts Receivable $2,600
Cr Service Revenue $2,600
Tyler Financial Services performs bookkeeping and tax-reporting services to startup companies in the Oconomowoc area. On January 1, 2014, Tyler entered into a 3-year service contract with Walleye Tech. Walleye promises to pay $10,500 at the beginning of each year, which at contract inception is the standalone selling price for these services. At the end of the second year, the contract is modified and the fee for the third year of services is reduced to $9,800. In addition, Walleye agrees to pay an additional $20,600 at the beginning of the third year to cover the contract for 3 additional years (i.e., 4 years remain after the modification). The extended contract services are similar to those provided in the first 2 years of the contract.
1. Prepare the journal entries for Tyler in 2014 and 2015 related to this service contract. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2014
Dec 31, 2014
Jan 1, 2015
Dec 31, 2015
2. Prepare the journal entries for Tyler in 2016 related to the modified service contract, assuming a prospective approach. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2016
Dec 31, 206
3. Repeat the requirements for part (b), assuming Tyler and Walleye agree on a revised set of services (fewer bookkeeping services but more tax services) in the extended contract period and the modification results in a separate performance obligation. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
Jan 1, 2016
Dec 31, 2016
Answer:
Tyler Financial Services
1. Journal Entries:
January 1, 2014:
Debit Cash $10,500
Unearned Service Revenue $10,500
To record cash collected for unearned services.
December 31, 2014:
Debit Unearned Service Revenue $10,500
Credit Service Revenue $10,500
To record the earned service revenue for the year.
January 1, 2015:
Debit Cash $10,500
Unearned Service Revenue $10,500
To record cash collected for unearned services.
December 31, 2015:
Debit Unearned Service Revenue $10,500
Credit Service Revenue $10,500
To record the earned service revenue for the year.
2. Journal Entries:
January 1, 2016:
Debit Cash $30,400
Unearned Service Revenue $30,400
To record cash collected for unearned services.
December 31, 2016:
Debit Unearned Service Revenue $9,800
Credit Service Revenue $9,800
To record the earned service revenue for the year.
Explanation:
a) Data and Calculations:
Annual contract fee = $10,500 in 2014 and 2015
Modified contract fee = $9,800 in 2016
Additional fee from year 3 = $20,600 for 3 more years ($6,867 each year) from 2017 to 2019
b) Cash received ($30,400) on January 1, 2016 includes the $9,800 for 2016 and the $20,600 for the years 2017 to 2019.
Transactions Concrete Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Jason Payne, Capital; Jason Payne, Drawing; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
Transactions:
Oct. 1 Paid rent for the month, $2,800.
3 Paid advertising expense, $525.
5 Paid cash for supplies, $1,250.
6 Purchased office equipment on account, $9,300.
10 Received cash from customers on account, $16,600.
15 Paid creditors on account, $3,720.
27 Paid cash for miscellaneous expenses, $590.
30 Paid telephone bill (utility expense) for the month, $275.
31 Fees earned and billed to customers for the month, $50,160.
31 Paid electricity bill (utility expense) for the month, $830.
31 Withdrew cash for personal use, $1,700.
Journalize the following selected transactions for October 2019.
Answer:
Oct 1
Rent expense Dr. $2800
Cash Cr. $2800
(To record entry for payment of rent for month)
Oct 3
Advertising expenses Dr. $525
Cash Cr. $525
(To record entry for Advertising expenses)
Oct 5
Supplies Dr. $1250
Cash Cr. $1250
(To record entry for purchase of supplies)
Oct 6
Office equipment Dr. $9300
Accounts Payable Cr. $9300
(To record purchase of office equipment on account)
Oct 10
Cash Dr. $16600
Accounts Receivable Cr. $16600
(To record cash received from customers on account)
Oct 15
Accounts payable Dr. $3720
Cash Cr. $3720
(To record payment made to creditors)
Oct 27
Miscellaneous expenses Dr. $590
Cash Cr. $590
(To record repair expense of office equipment)
Oct 30
Telephone expense Dr. $275
Cash Cr. $275
(To record payment made for telephone bill)
Oct 31
Accounts receivables Dr. $50160
Service fees Cr. $50160
(To record fees earned )
Oct 31
Utility expense Dr. $830
Cash CR $830
(To record payment made for electricity bill)
Oct 31
Personal use Dr. $1700
Cash Cr. $1700
(To record payment of dividend)
Tomkat Corp. has only a single asset. This asset generates operating cash flow of $300,000 per year, in perpetuity. Tomkat also has a single liability, which is a perpetual bond (the maturity date is infinitely far in the future) that has a face value of $1 million and that pays coupon interest at a rate of 6% once per year. The appropriate discount rate for the asset is 10%, while that for the bond is 5% per year.
Required:
What is the value of Tomkat’s equity?
Answer:
$1,800,000
Explanation:
Value of Tomcat's Asset = $300000 / 0.1
Value of Tomcat's Asset = $3,000,000
Interest amount = $1,000,000 * 6%
Interest amount = $60000
Value of Liability (bond) = $60000/0.05
Value of Liability (bond) = $1,200,000
Value of Tomcat's equity = $3000000 - $1200000
Value of Tomcat's equity = $1,800,000
Who Is Lil Loaded i want to know
Answer:
search it up
Explanation:
Answer:
he is a rapper dude. search it up
Explanation:
From a salesperson's perspective, the characteristics of a good manager: A. vary from manager to manager. B. conflict with the characteristics managers list as being traits of a good manager. C. are a rarity in modern sales organizations. D. include friendship and loyalty E. include flexibility and a team orientation.
Answer:
E. include flexibility and a team orientation.
Explanation:
Sales management is the process that maintains customers sales by planning, direction and control of the sales process.
It involves motivation, supervising, delegation, and equipping of the sales force.
This is a people oriented career and therefore requires flexibility and a team orientation. So the team is able to adapt to new strategies aimed at improving the sales process.
Match each item with the appropriate description.
- General Ledger System
- ERP
- Managerial Accounting
A. Includes both financial and non-financial information for all areas of the business.
B. Uses accounting information for external reporting.
C. Is a subset of the non-financial integrated accounting system.
D. Includes the accounting part of the integrated information system.
E. Uses accounting information for internal reporting.
Answer:
Matching items with the appropriate descriptions:
A. Includes both financial and non-financial information for all areas of the business.
ERP
B. Uses accounting information for external reporting.
General Ledger System
C. Is a subset of the non-financial integrated accounting system.
Managerial Accounting
D. Includes the accounting part of the integrated information system.
General Ledger System
E. Uses accounting information for internal reporting.
Managerial Accounting
Explanation:
- General Ledger System. This system is where the financial accounting records of debit and credit are kept and summarized.
- ERP: "Enterprise Resource Planning” is the consolidated system for gathering and organizing business data, both financial and non-financial.
- Managerial Accounting: This is where internal accounting data are gathered and analyzed.
Jeremiah expressed his disdain for the economic reports he heard on the news. "All economists care about is increasing GDP," he said. "I wish economists cared about living conditions and well-being instead of just some economic indicator." How could you acknowledge the shortcomings of GDP to Jeremiah, while also showing him how GDP functions as both an economic indicator and a measure of well-being? While it is true that GDP calculations omit such things as and , it is still a useful way to measure .
Answer: the value as opposed to the price of an item; environmental degradation; total output and income.
Explanation:
While it is true that GDP calculations omit such things as the value as opposed to the price of an item and environmental degradation, it is still a useful way to measure total output and income.
Gross Domestic Product is a means of measuring economic performance over a given period(usually a year). It works by adding up the final value of the goods and services produced in a country in that given period and thus can show the total output and income in a country.
Sadly however, it has some shortcomings. One of those is that it uses the prices of goods not their actual value. Another is that it does not take into account important factors such as environmental degradation which if added, would reduce GDP because the environment on average suffers negatively from production.
Business Question! Just the first problem please, thank you
Answer:
34 coupons. $33.75Explanation:
The coupons are the interest payments the bond makes.
1. The bond has a term of 17 years and coupons are to be paid semi-annually.
This means that for every year, 2 coupon payments will be made.
In 17 years therefore:
= 17 * 2
= 34 coupons
2. The interest on this bond is 6.75% in a year. The coupon is however, semi-annual. Payment per coupon will therefore be half of the yearly rate:
= 6.75% * 1,000 * 1/2
= $33.75
Answer:
Huh? hshjssjsjsjshshshsjsjs
Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow: Planned production in units10,000 Actual production in units10,000 Number of units sold8,500 There were no variances. The income (loss) under absorption costing is:
Answer:
$18,000
Explanation:
Calculation for what The income (loss) under absorption costing is:
First step is to calculate the Fixed manufacturing
per unit
Fixed manufacturing per unit = $60,000 ÷ 10,000
Fixed manufacturing per unit= $6
Second step is to calculate per unit cost
Cost Per Unit=$45 − $9 − $2 − $6 ×$ 8,500
Cost Per Unit = $238,000
Now let calculate the income (loss)
Income (loss)= $238,000 − $220,000
Income (loss) = $18,000
Therefore The income (loss) under absorption costing is:$18,000
Suppose that a restaurant uses a focus group of regular customers to determine how many customers would buy a proposed new menu item at various prices. Can this information be used to estimate an inverse demand curve? A demand curve? Explain briefly. Asking how many customers would buy a proposed new menu item at various prices can be used to estimate A. the inverse demand curve, and the demand curve can be calculated from it. B. only the inverse demand curve. C. neither the demand curve nor the inverse demand curve. D. only the demand curve. E. the demand curve, and the inverse demand curve can be calculated from it.
Answer:
E. the demand curve, and the inverse demand curve can be calculated from it.
Explanation:
A demand function helps to show the relation between quantity demanded and price, the price here is the quantity is a function of price. So, writing the function in other way round, the price which is a function of quantity demanded is called as an inverse demand function.
As per the details given in the question above, it is clear that the quantity is a function of price. The prices on the menu varies and the quantity demanded is determined through various prices. Using this a demand function can easily be computed since quantity is a function of price.
On August 31, 2021, the general ledger of The Dean Acting Academy shows a balance for cash of $7,824. Cash receipts yet to be deposited into the checking account total $3,218, and checks written by the academy but not yet processed by the bank total $1,305. The company's balance of cash does not reflect a bank service fee of $23 and interest earned on the checking account of $34. These amounts are included in the balance of cash of $5,922 reported by the bank as of the end of August. Required: 1. Prepare a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021. (Amounts to be deducted should
Answer:
1. Bank balance per reconciliation $7,835
Company balance per reconciliation $7,835
2. August 31, 2021
Dr Cash $34
Cr Interest revenue $34
August 31, 2021
Dr Service fees expense $23
Cr Cash $23
Explanation:
1. Preparation of a bank reconciliation to calculate the correct ending balance of cash on August 31, 2021 .
BANK CASH BALANCE
Per bank statement $5,922
Add deposit outstanding $3,218
Less check Outstanding ($1,305)
Bank balance per reconciliation $7,835
COMPANY CASH BALANCE
Per general ledger $7,824
Less service fees ($23)
Interest earned $34
Company balance per reconciliation $7,835
Therefore the correct ending balance of cash on August 31, 2021 will be :
Bank balance per reconciliation $7,835
Company balance per reconciliation $7,835
2.Preparation of the necessary entries to adjust the balance for cash
August 31, 2021
Dr Cash $34
Cr Interest revenue $34
August 31, 2021
Dr Service fees expense $23
Cr Cash $23
On January 1, 2020, HD Corp. paid $60,000 and issued a 5-year noninterest bearing note payable with a face value of $120,000 in exchange for a piece of equipment. The applicable interest rate is 8%. HD Corp depreciates over a straight-line basis and utilizes the effective interest method to record interest expense. The equipment is expected to be in service for 8-years at which point it will be worthless.
Required:
What is the carrying value of the note payable on 12/31/2021?
a. $120,000
b. $88,204
c. $75.136
d. $95.260
e. $89,335
Answer:
b. $88,204
Explanation:
The computation of the carrying value of the note payable is shown below:
= Present value of the notes + interest
= $120,000 × 0.680583 + ($120,000 × 0.680583 × 8%)
= $81,670 + $6,534
= $88,204
hence, the second option is correct
This discussion has 2 parts:_______.
Part 1: Generate a list of all of the attributes that make you...you. Things that are essential to who you are, that influence your decisions, and your behaviors. These could also be personality traits or other influential items.
Part 2: Rank order these items in order of importance...so put a number 1 next to the most central or important item, number 2 next to the second most important etc... If you have a long list, only do the top 5.
Part 3 (o.k., I lied it's a 3 part question). Post your top 5 here and talk about how those five items influence the manner in which you communicate and engage with people. How do these influence and guide your daily behaviors?
Answer and Explanation:
The attributes that make me who I am, in order of importance and influence are:
1. Patience: Patience has enabled me to resolve a lot of calm in the most tense moments in my life, which allows me to go through my own challenges with less stress. It also allows me to have a better relationship with people, since relationships can be difficult at times.
2. Communication: I consider myself to be a communicative person, which has allowed me to express myself and remain honest with myself.
3. Family support: My family supports me a lot and this gives me the confidence to try to do what I want, to have a free mind, to experiment and not be afraid to let my true nature be expressed. This has made me a very brave person.
4. Thoughtful: Although I consider myself brave, I am afraid of causing bad results to me and the people around me, which makes me plan and think a lot before acting.
5. Kindness: I believe that I am very kind, which allows people to be comfortable with me and make me comfortable in their presence.
Manufacturers of large equipment such as aircraft and ships and companies involved in road construction have jobs that may require two or more years for completion. For example, Boeing Corporation might have an order for 50 aircraft for a particular airline, and the order will extend over a three- to five-year period. Aircraft are delivered as completed, but not in a batch of 50 at one time. In the typical fashion, the overhead application rate must be calculated and applied in such a way that each aircraft that is delivered has the proper amount of overhead for that aircraft. Required: What unique difficulties do you see in the calculation and application of overhead in industries such as aircraft manufacturing or shipbuilding
Answer and Explanation:
The unique difficulty that faced by industries in terms of aircraft manufacturing or ship building that includes the measurement of the capciaty cost that would be distributed each year with respect to the job. The overhead would be distributed to the capacity spent. Also the company find to be difficult for tracking the actual capacity i.e. used in the production of a single aircraft or ship. In this case, the predetermined overhead rate would not be worked.