Answer: See explanation
Explanation:
First, we need to calculate the service charge expense which will be:
= 3% × $200
= 0.03 × $200.
= $6
Therefore, the entry that Tastee should make will be:
Debit: Cash $194
Debit: Service charge expense $6
Credit: Sales revenue $200
During 2016 Green Thumb Company introduced a new line of garden shears that carry a two-year warranty against defects. Experience indicates that warranty costs should be 2% of net sales in the year of sale and 3% in the year after sale. Net sales and actual warranty expenditures were as follows: Net sales Actual warranty expenditures 2016 $ 45,000 $ 1,000 2017 120,000 3,500 At December 31, 2017, Green Thumb should report as a warranty liability of:
Answer:
See below
Explanation:
Given the above information, the computation of warranty liability is shown below;
Warranty liability = (Net sales of 2016 × After sale percentage) + (Net sales of 2017 × Year of sale percentage)
= ($45,000 × 3%) + ($120,000 × 2%)
= $1,350 + $2,400
= $3,750
Therefore, Green Thumb should report as a warranty liability of $3,750
Tropical Tours reported revenue of $411,000 for its year ended December 31, 2021. Accounts receivable at December 31, 2020 and 2021, were $36,100 and $31,400, respectively. Using the direct method for reporting cash flows from operating activities, Tropical Tours would report cash collected from customers of:
Answer:
$406,300
Explanation:
The computation of the cash collection is shown below:
Cash Collected From Customers is
= Ending account receivable +Revenue For the Year - opening account receivable
= $31,400 + $411,000 - $36,100
= $406,300
Sweet Corporation purchased 360 shares of Sherman Inc. common stock for $11,900 (Sweet does not have significant influence). During the year, Sherman paid a cash dividend of $3.25 per share. At year-end, Sherman stock was selling for $37.50 per share. Prepare Sweet's journal entries to record (a) the purchase of the investment, (b) the dividends received, and (c) the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.)
Answer:
(a) Debit Equity Investments for $11,900; and Credit Cash for $11,900.
(b) Debit Cash for $1,170; and Credit Dividend Revenue for $1,170.
(c) Debit Fair Value Adjustment for $1,600; and Unrealized Holding Gain or Loss - Income for $1,600.
Explanation:
(a) Journal entries to record the purchase of the investment
The journal entries will look as follows:
Accounts Title and Description Debit ($) Credit ($)
Equity Investments 11,900
Cash 11,900
(To record the purchase of the investment.)
(b) Journal entries to record the dividends received
The journal entries will look as follows:
Accounts Title and Description Debit ($) Credit ($)
Cash (w.1) 1,170
Dividend Revenue 1,170
(To record the dividends received.)
(c) Journal entries to record the fair value adjustment. (Assume a zero balance in the Fair Value Adjustment account.
The journal entries will look as follows:
Accounts Title and Description Debit ($) Credit ($)
Fair Value Adjustment (w.2) 1,600
Unrealized Holding Gain or Loss - Income 1,600
(To record the fair value adjustment.)
Workings:
w.1: Cash = Dividend received = Number of shares * Cash dividend per share = 360 * $3.25 = $1,170
w.2: Fair Value Adjustment = Fair value - Common stock purchase cost = (Number of shares * Selling price per share) - Common stock purchase cost = (360 * $37.50) - $11,900 = $1,600
Aaron Corporation, which has only one product, has provided the following data concerning its most recent month of operations:
Selling price $101
Units in beginning inventory 0
Units produced 2,900
Units sold 2,350
Units in ending inventory 550
Variable costs per unit:
Direct materials $17
Direct labor $43
Variable manufacturing overhead $7
Variable selling and administrative expense $3
Fixed costs:
Fixed manufacturing overhead $54,900
Fixed selling and administrative expense $3,000
The total contribution margin for the month under variable costing is:_______
Answer:
Poop ❤️️
Explanation:
The financial records of Sunland Inc. were destroyed by fire at the end of 2020. Fortunately, the controller had kept certain statistical data related to the income statement as follows.
1. The beginning merchandise inventory was $75,440 and decreased 20% during the current year.
2. Sales discounts amount to $18,700.
3. 17,108 shares of common stock were outstanding for the entire year.
4. Interest expense was $18,000.
5. The income tax rate is 30%.
6. Cost of goods sold amounts to $440,000.
7. Administrative expenses are 20% of cost of goods sold but only 8% of gross sales.
8. Four-fifths of the operating expenses relate to sales activities.
Required:
From the foregoing information prepare an income statement for the year 2020 in single-step form.
Answer:
Sunland Inc.
Income statement for the year 2020
Sales $1,100,000
Less Sales Discounts ($18,700)
Net Sales $1,081,300
Less Cost of goods sold ($440,000)
Gross Profit $641,300
Less Expenses
Administrative expenses ($440,000 x 20%) ($88,000)
Interest expense ($18,000)
Net Profit before tax $535,300
Income tax expense ($535,300 x 30%) ($160,590)
Net Profit after tax $374,710
Explanation:
The Income Statement shows the Profit earned during the Reporting Period. Only Revenues or Incomes and Expenses are recorded in this Statement.
Using the amount of admin expenses to fin the Gross Sales we have :
Gross Sales = 100 / 8 x $88,000 = $1,100,000
Kingston anticipates total sales for June and July of $370,000 and $318,000, respectively. Cash sales are normally 60% of total sales. Of the credit sales, 25% are collected in the same month as the sale, 60% are collected during the first month after the sale, and the remaining 15% are collected in the second month after the sale. Determine the amount of accounts receivable reported on the company’s budgeted balance sheet as of July 31.
Answer:
$117,600
Explanation:
Given that the company has Cash sales that are normally 60% of total sales and Of the credit sales, 25% are collected in the same month as the sale, 60% are collected during the first month after the sale, and the remaining 15% are collected in the second month after the sale
In June, total sales $370,000
Amount that would not have been collected from this sale at the end of July
= 40% * 15% * $370,000
= $22,200
In July, total sales is $318,000,
Amount that would not have been collected from this sale at the end of July
= 40% *75% * $318,000
= $95,400
Hence the amount of accounts receivable reported on the company’s budgeted balance sheet as of July 31
= $22,200 + $95,400
= $117,600
What is the Best loan option for your
lemonade Stand? Why?
Answer:
Short term loan
Explanation:
Lemonade stand can be regarded as a small business, Hence, the loan that suit the business is " Short term loan".
Short term loan can be regarded as loan that can be obtained to give support to ones personal as well as business capital. It is designed for the needs of small business capital with less interest compare to long term loan. The period of payment is usually within a year. It is of low risk and good profit.
NuEditions Book Company uses a final average salary formula to calculate an employee’s pension benefits. The amount used in the calculations is the salary average of the final 3 years of employment. The retiree will receive an annual benefit that is equivalent to 1.75% of the final average for each year of employment. Mike and Rob are both retiring at the end of this year. Calculate their annual retirement pension given the following information:
Mike: Years of employment: 25;
Final three annual salaries: $84,780, $84,900, $85,000
Kristy: Years of employment: 27;
Final three annual salaries: $71,600, $73,400, $78,000
Answer:
Mike : $37140.83
Kristy : $35,122.50
Explanation:
Given the data:
Mike:
Years of employment: 25;
Final three annual salaries: $84,780, $84,900, $85,000
Average :
$(84,780 + 84,900 + 85,000) /3
$254680 ÷ 3
= $84893.333
1.75% of average
0.0175 * $84893.333
= $1485.6333
$1485.6333 * number of years
$1485.6333 * 25
= $37140.833
Kristy:
Years of employment: 27;
Final three annual salaries: $71,600, $73,400, $78,000
Average = $(71,600 + 73,400 + 78,000) / 3
Average = $223,000 / 3
= $74,333.333
1.75% * $74333.333
= $1300.8333
$1300.8333 * 27
= $35,122.5
Chrissy receives 200 shares of Chevron stock as a gift from her father. The stock cost her father $9,000 10 years ago and is worth $10,500 at the date of the gift. a. If Chrissy sells the stock for $12,500, calculate the amount of the gain or loss on the sale. $fill in the blank 515f94001054022_1 b. If Chrissy sells the stock for $4,600, calculate the amount of the gain or loss on the sale. $fill in the blank a9ba28057f9604d_1
Answer:
A. $3,500 gain
B. -$4,400 loss
Explanation:
A. Calculation for the amount of the gain or loss on the sale
Gain or loss on sale=$12,500-$9,000
Gain or loss on sale=$3,500 gain
Therefore the amount of the gain on the sale is $3,500
B.Calculation for the amount of the gain or loss on the sale
Gain or loss on sale=$4,600-$9,000
Gain or loss on sale=-$4,400 loss
Therefore the amount of the loss on the sale is
-$4,400 loss
Lupo Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on machine-hours. The company based its predetermined overhead rate for the current year on the following data: Total machine-hours 32,300 Total fixed manufacturing overhead cost$581,400 Variable manufacturing overhead per machine-hour$2.00 Recently, Job T687 was completed with the following characteristics: Number of units in the job 10 Total machine-hours 40 Direct materials$630 Direct labor cost$1,260 If the company marks up its unit product costs by 40% then the selling price for a unit in Job T687 is closest to
Answer:
See below
Explanation:
Given the above information, first we will calculate the overhead rate
Overhead rate = Cost of manufacturing overhead / Cost driver
= $581,400 / 32,300
= $18
Then,
Predetermined overhead rate = $18 fixed + $2 variable = $20
Now, we will apply this to job machine hours
Job machine hours 40
Overhead: Machine hours x
Predetermined rate = 40 × $20 = $80
Total cost = $630 + $1,260 + $880 = $2,770
The unit cost would be
= Total cost / Units
= $2,770 / 10
= $277
The selling price would therefore be;
Selling price : 40% over product cost
Selling price = Cost + 40% cost
Selling price = $227 + 40%($227)
Selling price = $227 + $90.8
Selling price = $317.8
2. On January 1, 2017, Gaskin Cabinetry Company purchases $300,000 of equipment by paying $50,000 in cash and
signing a 10-year mortgage note at 13% for the balance. Gaskin will make yearly payments of $46,072. The
amortization schedule for the first five payments is provided.
01/01/2017
01/01/2018
01/01/2019
01/01/2020
01/01/2021
01/01/2022
Beginning Principal Interest Total Ending
Balance Payment Expense Payment Balance
$250,000
$250,000 $13,572 $32,500 $46,072 236,428
236,428 15,336 30,736 46,072 221,092
221,092 17,330 28,742 46,072 203,762
203,762 19,583 26,489
46,072 184,179
184,179 22,129 23,943 46,072 162,050
Prepare the journal entry for the purchase of the equipment and for the January 1, 2018 mortgage payment.
Answer.
Answer:
(a) Debit Equipment for $300,000; Credit Cash for $50,000; and Credit Mortgage Note for $250,000
(b) Debit Mortgage Note for $13,572; Deebit Interest expense - Mortgage for $32,500; Credit Cash for $46,072.
Explanation:
(a) Prepare the journal entry for the purchase of the equipment.
The journal entries will look as follows:
Date Accounts Name and Explanation Debit ($) Credit ($)
1 Jan 2017 Equipment 300,000
Cash 50,000
Mortgage Note 250,000
(To record purchase of the equipment.)
(b) Prepare the journal entry for the January 1, 2018 mortgage payment.
The journal entries will look as follows:
Date Accounts Name and Explanation Debit ($) Credit ($)
1 Jan 2018 Mortgage Note 13,572
Interest expense - Mortgage 32,500
Cash 46,072
(To record mortgage and interest payments.)
what is a savings and loans bank? advantages and disadvantages.
Three advantages of savings accounts are the potential to earn interest, it's easy to open and access, and FDIC insurance and security. Three disadvantages of savings accounts are minimum balance requirements, lower interest rates than other accounts/investments, and federal limits on saving withdrawal.
Testbank Multiple Choice Question 100 Bramble Corp. purchased machinery on January 2, 2015, for $880000. The straight-line method is used and useful life is estimated to be 10 years, with a $86000 salvage value. At the beginning of 2021 Bramble spent $188000 to overhaul the machinery. After the overhaul, Bramble estimated that the useful life would be extended 4 years (14 years total), and the salvage value would be $42000. The depreciation expense for 2021 should be
Answer:
33,585.71
Explanation:
Prepare a cost estimate for the construction of a small, high quality, office building that contains 18,525 square feet of floor area. Use the data on the last page to prepare the estimate. Assume the cost of design for the project is 7% of construction, and a site-work cost of $180,000. What range or percentage of this cost would you recommend to define the level of accuracy
Answer: $2197570
Explanation:
The cost estimate is prepared below:
Base cost = $101.15 × 18525 = $1873804
Add: Site work cost = $180000
Total = $1,873,804 + $180,000 = $2053804
Add: Design fees = 7% × $2053804 = 0.07 × $2053804 = $143766
Estimated cost = $2053804 + $143766 = $2197570
The range or percentage of this cost will be +50%.
1. (make sure you know what date to use) On August 4, 2020, William purchased a new office building for $3,600,000. On October 2, 2020, he began to rent out office space in the building. On July 23, 2024, he sold the office building. Determine the cost recovery deduction for 2020. Determine the cost recovery deduction for 2024.
Answer:
Date of assets placed in service is used as starting date for depreciation calculation. The office property is ready to use on August 4, 2020
The building is a non-residential property, so MACRS table for the type of property will be used
Depreciation Base $3,600,000
Cost recovery rate per table 0.963%
Cost recovery deduction for 2020 $34,668
Depreciation Base $3,600,000
Cost recovery rate per table 2.564%
Cost recovery deduction for 2020 $49,998
In perfect competition, an individual firm Question 4 options: can not affect its price nor determine the quantity it sells in the marketplace. sets the price and determines the quantity it sells in the marketplace. sets the price but does not determine the quantity it sells in the marketplace. determines the quantity it sells in the marketplace but has no influence over its price.
Answer:
sets the price and determines the quantity it sells in the marketplace.
Explanation:
In a perfect competition, there are many buyers and sellers of homogeneous products, and there is free entry and exit in the market.
This simply means that, in a perfectly competitive market, there are many buyers and sellers (price takers) of homogeneous products (standardized products with substitute) and the market is free (practically open) to all individuals or business entities that are willing to trade all their goods and services.
Generally, a perfectly competitive market is characterized by the following features;
1. Perfect information.
2. No barriers, it is typically free.
3. Equilibrium price and quantity.
4. Many buyers and sellers.
5. Homogeneous products.
Examples of a perfectly competitive market are the Agricultural sector, e-commerce and the foreign exchange market.
In perfect competition, an individual firm sets the price and determines the quantity it sells in the marketplace.
Which statement describes why the people in a nation with a command
economy might resist a shift to a free market economy?
A. People who hold political power are threatened by fundamental changes.
B. Workers are reluctant to give up their participation in a classless society.
C. Workers are reluctant to accept complete government control of their economy.
D. Factory and business owners are reluctant to place their capital under worker
authority Xd
Answer:
People who hold political power are threatened by fundamental changes.
Explanation:
People who hold political power are threatened by fundamental changes is the statement describes why the people in a nation with a command economy might resist a shift to a free market economy. Thus, option (a) is correct.
What is economy?The mechanism through which a nation or region organizes its money, industry, and trade is concerned to as its “economy.” The economy is the important part of the country. The primary sector of the economy is the industrial sector and agriculture sector. The family (consumption) and company (product sales) are both parts of the economy.
According to the population is the important part of the economy. The individual citizen in the nation is a command economy might resist a shift to a free market economy. A people are the special rights to hold political power are imperiled by fundamental changes.
As a result, the significance of the economy are the aforementioned. Therefore, option (a) is correct.
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A process in which computer software that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customers' behavior is known as ________. Group of answer choices Total Quality Management Data Mining Guerilla Marketing Individualized Marketing
Answer:
Data Mining
Explanation:
A database management system (DBMS) can be defined as a collection of software applications that typically enables computer users to create, store, modify, retrieve and manage data or informations in a database. Generally, it allows computer users to efficiently retrieve and manage their data with an appropriate level of security.
A data dictionary can be defined as a centralized collection of information on a specific data such as attributes, names, fields and definitions that are being used in a computer database system.
In a data dictionary, data elements are combined into records, which are meaningful combinations of data elements that are included in data flows or retained in data stores.
This ultimately implies that, a data dictionary found in a computer database system typically contains the records about all the data elements (objects) such as data relationships with other elements, ownership, type, size, primary keys etc. This records are stored and communicated to other data when required or needed.
A process in which computer software that uses statistical analysis, database technology, and artificial intelligence finds hidden patterns, trends, and connections in data so that business owners can make better marketing decisions and predictions about customers' behavior is known as data mining. It plays a significant role in the growth and development of a business and its products or services.
Allocating a transaction price to multiple performance obligations includes which of the following steps: Consolidate the components of the contract to two performance obligations because a contract should not have more than two performance obligations. Allocate the transaction price based on relative fair values.The best measure of fair value is what the good or service could be sold for on a standalone basis (standalone selling price). All of these choices are correct. Complete each performance obligation before recognizing any revenue from the contract.
Answer:
The best measure of fair value is what the good or service could be sold for on a standalone basis (standalone selling price).
Explanation:
A performance obligation can be defined as a promise made in a contractual agreement by a seller or service provider to provide goods and services to a customer. This obligation exists only if a customer can benefit from the goods or services provided.
Allocating a transaction price to multiple performance obligations includes;
The best measure of fair value is what the good or service could be sold for on a standalone basis (standalone selling price).
Given the following information, calculate the current value of the stock: current dividend is $3.00, projected super normal growth for three years at 20%, growth rate after year 3 should remain constant at 11% and you want to earn a 16% annual return. What should you pay for the stock?
A.$67.55
B.$83.34
C.$74.39
D.$61.46
Answer:
B. $83.34
Explanation:
Current Dividend (D0) = $3.00
Super Normal growth for next three years (g1) = 20% = 0.20
Growth Rate after three year (g2) = 11% = 0.11
Required rate of Return (r) = 16% or 0.16
P3 = D4/(r-g2) = D0*(1+g1)^3*(1+g2)/(r-g2)
P3 = $3.00*(1+0.20)^3*(1+0.11)/(0.16-0.11)
P3 = $115.0848
Value of Share (P0) = [D1/(1+r)] + [D2/(1+r)^2] + [D3/(1+r)^3] + [P3/(1+r)^3]
Value of Share (P0) = [D0*(1+g1)/(1+r)1] + [D0*(1+g1)^2/(1+r)^2] + [D0*(1+g1)^3/(1+r)^3] + [P3/(1+r)^3]
Value of Share (P0) = [$3.00*(1+0.20)/(1+0.16)^1] + [$3.00*(1+0.20)^2/(1+0.16)^2] + [$3.00*(1+0.20)^3/(1+0.16)^3] + [$115.0848/(1+0.16)^3]
Value of Share (P0) = $3.10 + $3.21 + $ 3.32 + $73.72
Value of Share (P0) = $83.34
Marlin Corporation reported pretax book income of $1,005,000. During the current year, the net reserve for warranties increased by $26,000. In addition, book depreciation exceeded tax depreciation by $100,500. Finally, Marlin subtracted a dividends received deduction of $15,500 in computing its current year taxable income. Marlin's current income tax expense or benefit would be:
Answer: $234360
Explanation:
Marlin's current income tax expense or benefit would be calculated thus:
Pre-tax book income = $1,005,000
Add: net reserve for warranties = $26,000
Add: Increase in Book depreciation over tax depreciation = $100,500.
Less: Dividend deduction = ($15500)
Taxable income = $1,116,000
Since tax rate = 21%, then the income expense will be:
= 21% × $1,116,000
= 0.21 × $1,116,000
= $234360
Why aren't they hiring kids to work for Epic Games? They could give the workers more ideas. Not that they don't have good ideas already. Wouldn't they?
Independent of your answer to requirement (1), assume the company plans to produce 620,000 units of finished product in the three-month period ending September 30, and to have raw-material inventory on hand at the end of the three-month period equal to 25 percent of the use in that period. Compute the total estimated cost of raw-material purchases for the entire three-month period ending September 30
Answer:
Purchases= 1,595,000 pounds
Explanation:
Giving the following information:
Production= 620,000 units
Beginning raw materials inventory= 730,000 pounds
Desired ending inventory= 25% of the three months requirement.
Each unit requires 3 pounds of raw material.
To calculate the purchases required, we need to use the following formula:
Purchases= production + desired ending inventory - beginning inventory
Purchases= (620,000*3) + (620,000*3)*0.25 - 730,000
Purchases= 1,595,000 pounds
The idea that a person who has custody of money or products should never
be the person keeping records accounting for them is called
A. risk assessment
B. assignment of responsibilities
C. separation of duties and approvals
D. dual control
Answer:
it's C
Explanation:
I ACTUALLY TOOK THE TEST
The idea that a person who has custody of money or products should never be the person keeping records accounting for them is called separation of duties and approvals. Hence, option C is correct.
What is separation of duties and approvals?One important internal control is the separation of duties, which prevents employees from being able to commit fraud or errors while also covering them up while performing their regular duties.
Separation of duties refers to the process by which no one individual has complete control over the course of a transaction. A transaction shouldn't ideally be initiated, recorded, authorized, and reconciled by a single individual.
relates to the idea that no user should be granted sufficient power to independently abuse the system. For instance, it is inappropriate for the person authorizing a paycheck to also be the one who can prepare it.
Thus, option C is correct.
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PLEASE HELP ILL LITERALLY DO ANYTHING I NEED THIS ASAP!!!!!
A marketer of automobiles wants to introduce a new model using a message
that combines visuals, music, words, and action. Which category of
advertising media will best meet this marketer's goals?
A. Television
B. Magazines
C. Radio
D. Outdoor
Answer: Probably television.
Explanation: TV ads have visuals, music, words, and action.
Other than culture, what other organizational factors should be used to determine which project structure should be used?
Answer:
The two major considerations are the percentage of core work that involves projects and resource availability.
You have been asked to estimate the market value of an apartment complex that is producing annual net operating income of $44,500. Four highly similar and competitive apartment properties within two blocks of the subject property have sold in the past three months. All four offer essentially the same amenities and services as the subject. All were open-market transactions with similar terms of sale. All were financed with 30-year fixed-rate mortgages using 70 percent debt and 30 percent equity. The sale prices and estimated first year net operating incomes were as follows:
Comparable 1: Sales price $500,000; NOI $55,000
Comparable 2: Sales price $420,000; NO/ $50,400
Comparable 3: Sales price $475,000; NO/ $53,400
Comparable 4: Sales price $600,000; NOI $69,000
Required:
What is the indicated value of the subject property using direct capitalization?
Practice Drawing Timelines!
Purpose: This section describes how to draw a timeline and visualizing the problem being presented. It is important because a time problem that is set up incorrectly will lead to incorrect answers. For each of the descriptions below, draw the timeline on your own.
Inserted a picture of your timeline (the picture can be a jpeg or pasted in a word document).
Criteria: Full points will be based three separate timelines attached as a picture. Your work should be original and not copied, borrowed, or obtained from another student (this would be cheating as defined by Texas Tech University and stated in the syllabus).
Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate - 6% (These are uneven cash flows- there is no pattern).
2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)).
3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date).
Answer:
1. Since the last cash flow occurs at year 5, the timeline ends at 5th year.
2. Since the same cash flow for a finite time of 8 years, the timeline ends at 8th year.
3. The 3 dots at the end of the timeline indicates a perpetuity.
Explanation:
A timeline refers to a line that shows the timing and amount of cash flows. Therefore, we have:
1. Consider an asset that generates $3,000 in 5 years and $5,000 in 1 year; discount rate - 6% (These are uneven cash flows- there is no pattern).
Note: See number 1 in the attached photo for the timeline.
The fact that the last cash flow occurs at year 5 makes the timeline to end at 5th year.
It can also be seen in the timeline that the 6% discount rate is shown in between the previous period and the next.
2. Consider an asset that pays $500 per year for 8 years (This is an annuity- it is the same cash flow, evenly spaced, for a finite time (it has an end)).
Note: See number 2 in the attached photo for the timeline.
The fact that the same cash flow for a finite time of 8 years makes the timeline to end at 8th year.
3. Consider an asset that pays $50 per year starting at the end of year 3 (This is a delayed perpetuity- it is the same cash flow evenly spaced forever, but does not begin until a future date).
Note: See number 3 in the attached photo for the timeline.
It should be noted the 3 dots at the end of the time line indicates a perpetuity.
Jones Furniture Company produces beds and desks for college students. The production process requires carpentry and varnishing. Each bed requires 6 hours of carpentry and 4 hour of varnishing. Each desk requires 4 hours of carpentry and 8 hours of varnishing. There are 36 hours of carpentry time and 40 hours of varnishing time available. Beds generate $30 of profit and desks generate $40 of profit. Demand for desks is limited, so at most 8 will be produced.a. Formulate the LP model for this problem. b. Solve the problem using the graphical method.
Explanation:
To formulate the LP model for this problem,
Let,
X1 = Number of beds to produce
X2 = Number of Desks to produce
Our objective function:
Max: 30X1 + 40X2
Constraints:
6X1 + 4X2 ≤ 36 available carpentry hours 4X1 + 8X2 ≤ 40 available vanishing hoursX2 ≤ 8 (demand for X2)X1, X2 ≥0Based on the constraints information as well as the objective function you can then solve using the graphical method.
The ledger of Umatilla, Inc. on March 31, 2022, includes the following selected accounts before adjusting entries.
Debit Credit
Supplies 2,500
Prepaid Insurance 2,400
Equipment 30,000
Unearned Service Revenue 10,000
An analysis of the accounts shows the following.
1. Insurance expires at the rate of $300 per month.
2. Supplies on hand total $900.
3. The equipment depreciates $200 per month.
4. During March, services were performed for two-fifths of the unearned service revenue.
Prepare the adjusting entries for the month of March.
Answer:
1. Dr Insurance expence $300
Cr Prepaid insurance $300
2. Dr Supplies expense $1,600
Cr Supplies Asset $1,600
3. Dr Depreciation expense $200
Cr Accumulated Depreciation $200
4. Dr Unearned Service Revenue $4,000
Cr Service revenue $4,000
Explanation:
Preparation for the adjusting entries for the month of March.
1. Dr Insurance expence $300
Cr Prepaid insurance $300
(Being to record expired Insurance)
2. Dr Supplies expense $1,600
Cr Supplies Asset $1,600
($2,500+$900)
(Being to record Supplies on hand)
3. Dr Depreciation expense $200
Cr Accumulated Depreciation $200
(Being to record Depreciation of equipment)
4. Dr Unearned Service Revenue $4,000
Cr Service revenue $4,000
(2/5*$10,000)
(Being to record two-fifths of the unearned service revenue)