Answer:
Grackle Company
The total cash collected (both from accounts receivable and for cash sales) in the month of february is:
= $133,600.
Explanation:
a) Data and Calculations:
January 1, Accounts receivables = $50,000
January 2012, Sales = $120,000
February 2012, Sales = $140,000
March 2012, Sales = $150,000
January February March
Sales $120,000 $140,000 $150,000
20% Cash Sales 24,000 28,000 30,000
80% Credit Sales 96,000 112,000 120,000
Cash Collections:
20% Cash Sales 24,000 28,000 30,000
60% month of sale 57,600 67,200 72,000
40% following month 50,000 38,400 44,800
Total collections $131,600 $133,600 $146,800
Use the cost information below for Laurels Company to determine the cost of goods manufactured during the current year: Direct materials used$5,000 Direct labor 7,000 Total factory overhead 5,100 Beginning work in process 3,000 Ending work in process 4,000 Multiple Choice $12,000. $16,100. $17,100. $18,100. $13,600.
Answer:
$16,100
Explanation:
Add the total manufacturing costs for the year to determine the cost of goods manufactured during the current year. Also remember to account for change in work in process inventory.
McMurphy Corporation produces a part that is used in the manufacture of one of its products. The costs associated with the production of 12,000 units of this part are as follows: Direct materials $86,000 Direct labor 126,000 Variable factory overhead 58,000 Fixed factory overhead 138,000 Total costs 408,000 Of the fixed factory overhead costs, $55,000 is avoidable. Conners Company has offered to sell 12,000 units of the same part to McMurphy Corporation for $41 per unit. Assuming there is no other use for the facilities, Schmidt should ________. Group of answer choices buy the part, as this would save the company $192,000 buy the part, as this would save $16 per unit make the part, as this would save almost $14 per unit make the part, as this would save $16 per unit
Answer:
make the part, as this would save almost $14 per unit
Explanation:
We have to compare the total cost to make against the total cost to buy 12,000 units.
Total Cost to Make
Direct materials $86,000
Direct labor $126,000
Variable factory overhead $58,000
Fixed factory overhead $55,000
Total Cost $325,000
Total Cost to buy
Purchase Price = $41 x 12,000 units = $492,000
Difference
Financial Advantage = Total Cost to buy - Total Cost to Make
= $492,000 - $325,000
= $167,000
Conclusion :
Schmidt should make the part, as this would save almost $14 per unit
Question 9 of 10 Which of the following is a good example of responsible concern for consumer rights? O A. A construction company advises a potential customer that he can accomplish his project much faster and cheaper by contacting a different company. Giving this advice will likely lead to the company's loss of the consumer's business, O B. A snack food manufacturer knows that their snacks contain only minor traces of common allergens, such as peanuts, and doesn't want to cause unnecessary worry, so they don't identify this on the food labels. C. An employer is very concerned about the well being of his employees. He decides to sponsor their membership to a health club and pay for routine consultations with a dietician D. A sales representative for a communications provider is trained to present the most expensive service packages to consumers first. If the consumer asks for cheaper options, however, the sales representative is to offer those
Answer:
D. A sales representative for a communications provider is trained to present the most expensive service packages to consumers first. If the consumer asks for cheaper options, however, the sales representative is to offer those
Explanation:
Answer:
A. A construction company advises a potential customer that he can accomplish his project much faster and cheaper by contacting a different company. Giving this advice will likely lead to the company's loss of the consumer's business.
Explanation:
It is correct.
North Company has completed all of its operating budgets. The sales budget for the year shows 50,900 units and total sales of $2,301,800. The total unit cost of making one unit of sales is $23. Selling and administrative expenses are expected to be $303,800. Interest is estimated to be $11,820. Income taxes are estimated to be $200,800. Prepare a budgeted multiple-step income statement for the year ending December 31, 2020.
Answer:
North Company
Budgeted multiple-step income statement for the year ending December 31, 2020
Sales $2,301,800
Less Cost of Goods Sold (50,900 units x $23) ($1,170,700)
Gross Profit $1,131,100
Less Expenses
Operating Expenses
Selling and administrative expenses $303,800
Operating Profit $827,300
Non Operating Expenses
Interest $11,820
Income taxes $200,800
Net Income (Loss) $614,680
Explanation:
North Company budgeted multiple-step income statement for the year ending December 31, 2020 is prepared above.
Several financial or economic factors are relevant to the rent-or-buy decision. From the following list, identify the financial or economic factors that should be considered when performing this analysis. Check all that apply.
a. The pride that comes from owning your own home
b. Current and expected future housing prices
c. Current and expected future housing-related tax deductions
Answer:
The financial and economic factors that should be considered when performing this analysis are:
b. Current and expected future housing prices
c. Current and expected future housing-related tax deductions
Explanation:
a) A rent-or-buy decision should be based on financial and economic factors. There is the financial implication of making a down payment, closing costs, and maintenance expenses when one decides to own a home instead of renting an apartment. However, for the occupant, renting provides the advantage of known monthly costs. Some advantages of owning a house are building equity and tax benefits. The pride that comes that comes from owning a home is not a financial and economic benefit.
Elbert Company classifies its selling and administrative expense budget into variable and fixed components. Variable expenses are expected to be $26,770 in the first quarter, and $5,240 increments are expected in the remaining quarters of 2020. Fixed expenses are expected to be $41,680 in each quarter. Prepare the selling and administrative expense budget by quarters and in total for 2020.
Answer:
Results are below.
Explanation:
Giving the following information:
Variable expense= $26,770 ($5,240 increase each quarter)
Fixed expense= $41,680
First, we will calculate the total cost per quarter:
Q1= 26,770 + 41,680
Q1= $68,450
Q2= (26,770 + 5,240) + 41,680
Q2= $73,690
Q3= (32,010 + 5,240) + 41,680
Q3= $78,930
Q4= (37,250 + 5,240) + 41,680
Q4= $84,170
Now, the total cost:
Total annual cost= $305,240
RecRoom Equipment Company received an $12,600, six-month, 5% note to settle an $12,600 unpaid balance owed by a customer.
The note is accepted by RecRoom on November 1, causing the company to increase its Notes Receivable and decrease its Accounts Receivable.
RecRoom adjusts its records for interest earned to its December 31 year-end.
RecRoom receives the interest on the note's maturity date.
RecRoom receives the principal on the note's maturity date.
Make journal entries:
A) Record the receipt of a note on November 1 for $8,000 to settle an outstanding accounts receivable balance of a customer.
B) Record the interest accrued on the note as of December 31.
C) Record the receipt of the interest on the note’s maturity date.
D) Record the receipt of the payment for the full principal.
Answer:
A. Dr Notes Receivable $12,600
Cr Cash $12,600
B. Dr Interest Receivable $105
Cr Interest Revenue $105
C. Dr Cash $315
Cr Interest Receivable $105
Cr Interest Revenue $210
D. Dr Cash $12,600
Cr Notes Receivable $12,600
Explanation:
A. Preparation of the journal entry to Record the receipt of a note on November 1
November 1
Dr Notes Receivable $12,600
Cr Cash $12,600
(Being to record the receipt of a note )
B. Preparation of the journal entry to Record the interest accrued on the note as of December 31.
December 31
Dr Interest Receivable $105
Cr Interest Revenue $105
($12,600 x .05 x 2/12= $105)
(Being to record interest accrued on the note)
C. Preparation of the journal entry to Record the receipt of the interest on the note’s maturity date.
Dr Cash $315
($12,600 x .05 x 6/12= $315)
Cr Interest Receivable $105
($12,600 x .05 x 2/12= $105)
Cr Interest Revenue $210
($12,600 x .05 x 4/12= $210)
(Being to record receipt of the interest on the note’s maturity date)
D. Preparation of the journal entry to Record the receipt of the payment for the full principal.
Dr Cash $12,600
Cr Notes Receivable $12,600
(Being to to Record the receipt of the payment for the full principal)
Culver Company is involved in four separate industries. The following information is available for each of the four industries. Operating Segment Total Revenue Operating Profit (Loss) Identifiable Assets W $63,278 $14,930 $155,962 X 10,900 2,380 77,981 Y 27,275 (2,980) 18,823 Z 7,647 1,070 16,134 $109,100 $15,400 $268,900 Determine which of the operating segments are reportable based on the: Reportable Segments (a) Revenue test. select an operating segment (b) Operating profit (loss) test. select an operating segment (c) Identifiable assets test. select an operating segment eTextbook and Media
Answer:
Reportable Segments
(a) Revenue test. W and Y
(b) Operating profit (loss) test. W, X and Y
(c) Identifiable assets test. W and X
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
The explanation of the answers is now given as follows:
Note: See the attached excel file for the determination of the operating segments which are reportable (in bold red color).
Note that the criterion is that a segment is reportable if it contains an amount that is greater than 10% of the total amount. Otherwise, it is nonreportable.
Based on this criterion, we have the following from the attached excel file:
Reportable Segments
(a) Revenue test. W and Y
(b) Operating profit (loss) test. W, X and Y
(c) Identifiable assets test. W and X
Wilde Software Development has a 12% unlevered cost of equity. Wilde forecasts the following interest expenses, which are expected to grow at a constant 3% rate after Year 3. Wilde's tax rate is 25%. Year 1 Year 2 Year 3 Interest expenses $80 $95 $140 What is the horizon value of the interest tax shield
Answer: $400.56
Explanation:
Horizon value = Tax shield in 3rd year * (1 + growth rate) / (Required return - Growth rate)
Tax shield in year 3 = Interest expense * tax rate
= 140 * 25%
= $35
Horizon value = 35 * ( 1 + 3%) / (12% - 3%)
= $400.56
Classify each of the following based on the macroeconomic definitions of saving and investment.
A. Caroline buys new bulldozers for her construction firm.
B. Dmitri purchases a new condominium in Detroit.
C. Frances purchases stock in NanoSpeck, a biotech firm.
D. Antonio purchases a corporate bond issued by a car company.
Answer:
A. Investment
B. Investment
C. Saving
D. Saving
Explanation:
Saving refers to the amount that is set aside that can be used for any future emergencies or purchases.
Investment refers to purchasing assets such as bonds, stocks, mutual funds that help in making money.
A. Caroline buys new bulldozers for her construction firm. - Investment
B. Dmitri purchases a new condominium in Detroit. - Investment
C. Frances purchases stock in Nano Speck, a biotech firm. - Saving
D. Antonio purchases a corporate bond issued by a car company. - Saving
Rainey Company's true cash balance at October 31 is $4,700. The following information is available for the bank reconciliation: Outstanding checks, $740 Deposits in transit, $540 Bank service charges, $110 The bank had collected an account receivable for Rainey Company, $1,200 The bank statement included an NSF check written by one of Ramsey's customers for $720. What was the unadjusted book balance at October 31
Answer: $4330
Explanation:
The unadjusted book balance at October 31 is calculated below:
True cash balance = $4700
Add: Bank service charge = $110
Add: NSF Check = $720
Less: Account receivable = $1200
Unadjusted book balance = $4330
Islander Inc. is a new firm in a rapidly growing industry. The company would be paying $2.50 in dividend next year. After that the company intends to grow the dividend at a 8% rate annually over a long period. You plan to buy the stock now and expect to sell it for $48.23 three years from now. What price must you pay now if your required rate of return is 10%
Answer: $42.93
Explanation:
To solve this question goes thus:
Year 1:
Cash flow = $2.50
PV at 10% = 0.9091
Present value = $2.27
Year 2:
Cash flow = $2.70
PV at 10% = 0.8264
Present value = $2.23
Year 3:
Cash flow = $2.92
PV at 10% = 0.7513
Present value = $2.19
Price at Year 3:
Cash flow = $48.23
PV at 10% = 0.7513
Present value = $36.24
Price to be paid = $2.27 + $2.23 + $2.19 + $36.24 = $42.93
The fact that most medical care purchases are financed through insurance Group of answer choices has no effect on health care consumption because aggregate costs are the same regardless of payment method. reduces the amount of health care consumed by raising the price of additional units of care. has decreased health care costs and therefore reduced aggregate health care expenditures. increases the amount of health care consumed by reducing the price of additional units of care.
Answer: increases the amount of health care consumed by reducing the price of additional units of care.
Explanation:
When individuals have health insurance, they pay only a certain amount of premiums per period yet when they have a health problem, the insurance company will cover the cost of that problem for the most part.
This means that the insured only have to pay a certain amount for healthcare which reduces their overall cost were they to consume additional units because they would not have to pay for those additional units.
What does the relationship between the unemployment rate and the natural unemployment rate tell us about cyclical unemployment?
When the unemployment rate is
than the natural unemployment rate, cyclical unemployment is
A. less; positive
B. greater, negative
C. less; negative
D. greater; is increasing
Answer:
C. less; negative
Explanation:
The unemployment rate=natural unemployment rate+cyclical unemployment rate
if The unemployment rate<natural unemployment rate then the cycalical rate of unemployment is negative.
Why were metal Coins suitable by then
Answer:
The coinage metals comprise, at a minimum, those metallic chemical elements which have historically been used as components in alloys used to mint coins. The term is not perfectly defined, however, since a number of metals have been used to make "demonstration coins" which have never been used to make monetized coins for any nation-state, but could be. Some of these elements would make excellent coins in theory (for example, zirconium), but their status as coin metals is not clear. In general, because of problems caused when coin metals are intrinsically valuable as commodities, there has been a trend in the 21st century toward use of coinage metals of only the least exotic and expensive types.
Explanation:
if it is helpful.......... plzzz. like and follow
Total demand for Oxy is 10,000 units and for Sonic is 6,000 units. Machine time is a scarce resource. During the year, 50,000 machine hours are available. Oxy requires 4 machine hours per unit, while Sonic requires 2.5 machine hours per unit. What is the maximum contribution margin Garrison can achieve during a year
Answer:
$444,250
Explanation:
Calculation to determine the maximum contribution margin Garrison can achieve during a year
First step is to calculate the Contribution margin per hour
Oxy sonic
Sales $75 $44
Less: variable cost $40 $21
=Contribution margin per unit 35 23
÷Machine hour per unit 4 2.5
=Contribution margin per hour $8.75 $9.2
Ranking 2 1
Second step is to calculate the Hour required for sonic
Hour required for sonic = 6,000*2.5
Hour required for sonic= 15,000 hours
Third step is to calculate the Hour available for oxy
Hour available for oxy = 50,000-15,000
Hour available for oxy = 35,000 hours
Fourth step is to calculate the Production of Oxy
Production of Oxy = 35,000/4
Production of Oxy= 8,750 units
Now let calculate the Maximum contribution margin
Maximum contribution margin = 8,750*35+ 6000*23
Maximum contribution margin =306,250+,138,000
Maximum contribution margin = $444,250
Therefore the maximum contribution margin Garrison can achieve during a year is $444,250
Zolas' Heaters is approached by Ms. Leila, a new customer, to fulfill a large one-time-only special order for a product similar to one offered to regular customers. Zolas' Heaters has excess capacity. The following per unit data apply for sales to regular customers: Direct materials $450.00 Direct manufacturing labor 160.00 Variable manufacturing support 100.00 Fixed manufacturing support 210.00 Total manufacturing costs 920.00 Markup (25% of total manufacturing costs) 230.00 Estimated selling price $1150.00 For Zolas' Heaters, what is the minimum acceptable price of this one-time-only special order
Answer:
Zolas' Heaters
The minimum acceptable price of this one-time-only special order is:
= $887.50.
Explanation:
a) Data and Calculations:
Direct materials $450.00
Direct manufacturing labor 160.00
Variable manufacturing support 100.00
Fixed manufacturing support 210.00
Total manufacturing costs 920.00
Markup (25% of total manufacturing costs) 230.00
Estimated selling price $1,150.00
The minimum acceptable price of this one-time-only special order:
Direct materials $450.00
Direct manufacturing labor 160.00
Variable manufacturing support 100.00
Total manufacturing costs 710.00
Markup (25% of total variable mfg costs) 177.50
Selling price $887.50
1. The federal government is considering selling tracts of federally owned land to private developers and using the revenues to provide aid to victims of an earthquake in a foreign country. How would this policy affect the levels of federal revenues, expenditures, and deficits under a cash accounting system
Answer:
The responses to this question can be defined as follows:
Explanation:
In a currency system, its current amount of the debt is influenced by the cash financial statements, and sales will rise by amount and revenue would be compensated by spending increases on foreign aid. The financial accounting system must realize that its government sold a well-established resource and increased the overall scarcity.
Its capital account weakness relates to an undistorted added money from the currency exchange that would offset a decrease throughout the estimate of the benefits of Congress and lead to an increase in the utilization of the shortfall quickly.
One of the reasons we make bad decisions is because we have to rely on our perceptions.
a. True
b. False
Answer:
false??
Explanation:
Galactic Inc. manufactures flying drone toys. Sales units for January, February, March, April and May were 320, 300, 372, 332, and 400 respectively. Budgeted production in units for January, February, and March were 315, 318, and 362 respectively. Each unit requires 3 direct labor hours and Galactic’s hourly labor rate is $16 per hour. The company’s variable overhead is $5.00 per unit produced and its fixed overhead is $5,600 per month..
Required:
a. Determine Galactic's direct labor budget for the first quarter.
b. Determine Galactic's manufacturing overhead budget for the first quarter
Answer:
Direct labor costs= $47,760
total manufacturing overhead= $10,575
Explanation:
Giving the following information:
Production= 315 + 318 + 362= 995 units
Each unit requires 3 direct labor hours.
Hourly rate= $16
Variable overhead per unit= $5
Fixed overhead= $5,600
First, we need to calculate the direct labor hours:
Direct labor hours= 995*3= 2,985
Now, the direct labor costs:
Direct labor costs= $47,760
Finally, the total manufacturing overhead:
total manufacturing overhead= 5,600 + 5*995
total manufacturing overhead= $10,575
Beck Manufacturing reports the following information in T-account form for 2019. Raw Materials Inventory Begin. Inv. 11,600 Purchases 57,000 Avail. for use 68,600 DM used 48,000 End. Inv. 20,600 Work in Process Inventory Begin. Inv. 16,000 DM used 48,000 Direct labor 31,100 Overhead 57,000 Manuf. costs 152,100 Cost of goods manuf. 138,200 End. Inv. 13,900 Finished Goods Inventory Begin. Inv. 17,200 Cost of goods manuf. 138,200 Avail. for sale 155,400 Cost of Goods Sold 136,500 End. Inv. 18,900 Required: 1. Prepare the schedule of cost of goods manufactured for the year. 2. Compute cost of goods sold for the year.
Answer:
Beck Manufacturing
1. Schedule of the Cost of Goods Manufactured for the year:
Beginning WIP Inventory 16,000
Direct Materials used 48,000
Direct labor 31,100
Overhead applied 57,000
Total manufacturing costs 152,100
Less Ending WIP Inventory 13,900
Cost of goods manufactured 138,200
2. Cost of goods sold for the year:
Beginning Finished Goods 17,200
Cost of goods manufactured 138,200
Goods available for sale 155,400
Less Ending Finished Goods 18,900
Cost of Goods Sold 136,500
Explanation:
a) Data and Calculations:
T-account form for 2019.
Raw Materials Inventory
Account Title Debit Credit
Begin. Inv. 11,600
Purchases 57,000
DM used 48,000
End. Inv. 20,600
Avail. for use 68,600 68,600
Work in Process Inventory
Account Title Debit Credit
Begin. Inv. 16,000
DM used 48,000
Direct labor 31,100
Overhead 57,000
Cost of goods manuf. 138,200
End. Inv. 13,900
Manuf. costs 152,100 152,100
Finished Goods Inventory
Account Title Debit Credit
Begin. Inv. 17,200
Cost of goods
manufacture 138,200
Cost of Goods Sold 136,500
End. Inv. 18,900
Avail. for sale 155,400 155,400
AAA Advertising hires Christopher as a photographer to take photographs of products for AAA’s use in its advertising campaigns. Christopher is to use his own DSLR camera. Christopher will have an office at AAA but only needs to come in 10 hours a week, of his own choosing. Christopher will work under a supervisor who will tell him exactly what photos to take and how many of each product. He will be paid a flat $2,000 salary every other week, regardless of how much work he does. 1) What is Christopher’s employment status with AAA, is he an employee or independent contractor? 2) Discuss each of the applicable factors used to determine whether a worker is an independent contractor or employee.
Answer:
Christopher is an Employee
Explanation:
1) Christopher is an Employee because he is been paid a flat rate regardless of the amount of work he puts in, also he is directly supervised, has an office in AAA and also he must put in 10 hours of work per week
2) Factors that makes a worker an independent contractor or an Employee includes
level of instruction; If the company or its representative directs the worker on how, when and where a job can be done this indicates that the worker is an employee work schedule: An independent contractor is totally in control of his time and determines the amount of hours to put in but if the work schedule is determined by the company then it will be an employee arrangement form of payment ; Hourly, weekly and monthly payments are mostly used for employees ,most independent contractors collect their pay once a task is completed by themprofit or loss : Employees do not share in the profit or loss of the organization since they are paid a flat rate.A firm' s sales procedure involves preparing sales invoices based on shipping documents; posting the sales amounts to accounts receivable records; and posting quantities billed to the inventory records. Due to control weaknesses in the procedure, certain goods that are shipped may not be reflected in the sales invoices. The exposure from this risk can result in:
Answer: understatement of revenues and receivables and over statement of inventory
Explanation:
Control weakness simply refers to the failure by a company to implement the internal controls. Based on the information given, the exposure from this risk can result in understatement of revenues and receivables and over statement of inventory.
There'll be understatement of revenue and receivables since sales is not recorded while the inventory will be overstated.
Michelle is an active participant in the rental condominium property she owns. During the year, the property generates a ($15,000) loss; however, Michelle has sufficient tax basis and at-risk amounts to absorb the loss. If Michelle has $115,000 of salary, $10,000 of long-term capital gains, $3,000 of dividends, and no additional sources of income or deductions, how much loss can Michelle deduct
Answer: $11000
Explanation:
The total income earned by Mitchell will be the addition of the salary, long term capital gain and dividend. This will be:
= $115,000 + $10,000 + $3,000
= $128,000
The exception amount of $25000 can be gotten.
Modified adjusted gross income = $100,000
Phased out amount = ($128000 - $100000) × 50%
= $28000 × 0.5
= $14000
Mitchell's loss = $25000 - $14000 = $11000
Cream 424,000 at $130 per gallon Liquid skim 344,500 at $115 per gallon The cost of purchasing 820,000 gallons of direct materials and processing it up to the split-off point to yield a total of 797,500 gallons of good product was $2,350,000. When using a physical-volume measure, what is the approximate amount of joint costs that will be allocated to cream and liquid skim
Question Completion:
Production:
Cream = 443,000 gallons
Liquid skim = 354,500 gallons
Total production = 797,500 gallons
Answer:
The approximate amount of joint costs that will be allocated to cream and liquid skim =
Cream = $1,305,392
Liquid skim = $1,044,608
Explanation:
a) Data and Calculations:
Direct materials purchased = 820,000 gallons
Total yield at split-off = 797,500
Joint costs = $2,350,000
Cream Liquid Skim
Sales units at split-off 424,000 344,500 gallons
Selling price per unit $130 $115
Production Cream 443,000 354,500 gallons
Allocation of joint costs, using a physical volume measure:
Cream = $2,350,000 * 443,000/797,500 = $1,305,392
Liquid Skim = $2,350,000 * 354,500/797,500 = $1,044,608
Acquired $34,500 cash from the issue of common stock. Purchased inventory for $27,600 cash. Sold inventory costing $15,400 for $31,000 cash. Required a. Record the events in general journal format. b. Post the entries to T-accounts. c. Determine the amount of gross margin. d. What is the amount of net cash flow from operating activities for Year 1
Answer:
a. General Journal Format:
Accounts Titles Debit Credit
Cash $34,500
Common stock $34,500
To record the issue of common stock for cash.
Inventory $27,600
Cash $27,600
To record the purchase of inventory for cash.
Cash $31,000
Sales revenue $31,000
To record the sale of goods for cash.
Cost of goods sold $15,400
Inventory $15,400
To record the cost of goods sold.
b. T-accounts:
Cash
Accounts Titles Debit Credit
Common stock $34,500
Inventory $27,600
Sales revenue 31,000
Common stock
Accounts Titles Debit Credit
Cash $34,500
Inventory
Accounts Titles Debit Credit
Cash $27,600
Cost of goods sold $15,400
Sales revenue
Accounts Titles Debit Credit
Cash $31,000
Cost of goods sold
Accounts Titles Debit Credit
Inventory $15,400
c. Gross margin:
Sales revenue $31,000
Cost of goods sold 15,400
Gross margin $15,700
d. Net Cash Flow from operating activities for Year 1:
Cash from customers $31,000
Cash paid to suppliers (27,500)
Net cash flow from
operating activities $3,500
Explanation:
a) Data and Analysis of Transactions:
Cash $34,500 Common stock $34,500
Inventory $27,600 Cash $27,600
Cost of goods sold $15,400 Inventory $15,400
Cash $31,000 Sales revenue $31,000
For its first year of operations, Tringali Corporation's reconciliation of pretax accounting income to taxable income is as follows: Pretax accounting income $ 280,000 Permanent difference (15,500 ) 264,500 Temporary difference-depreciation (19,300 ) Taxable income $ 245,200 Tringali's tax rate is 25%. Assume that no estimated taxes have been paid. What should Tringali report as its income tax expense for its first year of operations
Answer:
$61,300
Explanation:
Calculation to determine What should Tringali report as its income tax expense for its first year of operations
Using this formula
Income tax expense=Taxable income * Tringali's tax rate
Let plug in the formula
Income tax expense=$ 245,200*25%
Income tax expense=$61,300
Therefore What should Tringali report as its income tax expense for its first year of operations will be $61,300
Journalize the following sales transactions for Straight Shot Archery using the periodic inventory system. E (Record debits first, then credits. Exclude explanations from journal entries.
Aug. 1 Sold $6,500 of equipment on account, credit terms are 1/10, n/30.
Aug. 8 Straight Shot received payment from the customer on the amount due from August 1, less the discount.
Aug. 15 Sold $3,100 of equipment on account, credit terms are n/45, FOB destination.
Aug. 15 Straight Shot paid $90 on freight out.
Aug. 20 Straight Shot negotiated a $500 allowance on the goods sold on August 15.
Aug. 24 Received payment from the customer on the amount due from August 15, less the allowance.
Answer:
Aug. 1
Debit :
Credit :
Aug. 8
Debit :
Credit :
Aug. 15
Debit :
Credit :
Aug. 15
Debit :
Credit :
Aug. 20
Debit :
Credit :
Aug. 24
Debit :
Credit :
Explanation:
Permabilt Corp. was incorporated on January 1, 2019, and issued the following stock for cash: 2,000,000 shares of no-par common stock were authorized; 750,000 shares were issued on January 1, 2019, at $35 per share. 800,000 shares of $100 par value, 7.5% cumulative, preferred stock were authorized; 540,000 shares were issued on January 1, 2019, at $105 per share. No dividends were declared or paid during 2019 or 2020. However, on December 22, 2021, the board of directors of Permabilt Corp. declared dividends of $15,000,000, payable on February 12, 2022, to holders of record as of January 8, 2022.
Prepare the journal entries to record each of the below transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The issuance of common stock and preferred stock on January 1, 2019.
The declaration of dividends on December 22, 2021.
The payment of dividends on February 12, 2022.
b. Of the total amount of dividends declared during 2021, how much will be received by preferred shareholders?
c. Calculate the common stock dividends per share declared during 2021. (Round your answer to 2 decimal places.)
Answer:
Permabilt Corp.
a. Journal Entries:
Debit Cash $26,250,000
Credit Common stock $26,250,000
To record the issuance of 750,000 shares at $35 per share.
2. Debit Cash $56,700,000
Credit Preferred stock $54,000,000
Credit Additional paid-in capital- preferred stock $2,700,000
To record the issuance of 540,000 shares at $105 per share.
3. Debit Cumulative preferred stock dividends $12,150,000
Debit Common stock $2,850,000
Dividends Payable $15,000,000
To record the declaration of dividends.
b. Preferred shareholders will receive $12,150,000 out of the $15 million declared dividends during 2021 ($4,050,000 for each year)
c. Common stock dividends per share = $3.80 ($2,850,000/750,000)
Explanation:
a) Data and Calculations:
Authorized share capital:
Common stock = 2,000,000 shares of no-par value
7.5% cumulative, preferred stock = 800,000 shares at $100 par value
Issued share capital:
Common stock, 750,000 at $35 = $26,250,000
Cash $26,250,000 Common stock $26,250,000
Preferred stock, 540,000 at $105 = $56,700,000
Cash $56,700,000 Preferred stock $54,000,000 Additional paid-in capital $2,700,000
Declared Dividends = $15,000,000
Cumulative preferred stock dividends for 3 years
= $12,150,000($4,050,000 * 3)
Common stock = $2,850,000 ($15,000,000 - $12,150,000)
One of the themes that came out of the survey responses is that employees take their responsibility of serving fresh, hot food quickly and helping customers find menu items that they will like very seriously. But most of the time, employees do not feel like the work they do is very important. According to the job characteristics theory, which of the following should you do to address this issue?
A. Improve employees' growth need strength.
B. Improve feedback.
C. Improve skill variety.
D. Improve task significance.
C. After carefully considering the most recent employee survey results, you decide that the core issue that you need to address to improve employee motivation is that employees do not seem to know how they are doing relative to what is expected of them. Knowing this, which critical psychological state will you be most targeting in your job redesign initiative?
A. Experienced responsibility for outcomes of the work.
B. Growth need strength.
C. Knowledge of the actual results of work activities.
D. Experienced meaningfulness of the work.
Answer:
D. Improve task significance.
C. Knowledge of the actual results of work activities.
Explanation:
1. In order to address this issue you should focus on improving task significance. Doing so will increase employee motivation as they will begin actually seeing that their work is important. Being able to visualize the consequences that your work has on others or in general is incredibly motivating in a work environment as it provides purpose to the otherwise mundane tasks.
2. In this case, you would need to target a redesign of Knowledge of the actual results of work activities. Employees need to be able to visualize or atleast hear feedback of how they are performing. This feedback will allow them to adjust their actions/performance and improve upon it. Without this feedback there is no way for the employees to improve as they have no baseline of what is exceptional behavior if they do not have data or an example to compare their performance to.