Answer:
How much gain should Sheridan recognize on this exchange,
$32,700and at what amount should the acquired computer be recorded, respectively
the new computer should be recorded at $318,000Explanation:
Since the cash received ($135,000) represents more than 25% of the asset exchange, this transaction must be recorded as a cash sales.
Journal entry to record the transaction:
Dr Cash 135,000
Dr Computer, new 318,000
Dr Accumulated depreciation - computer, old 32,700
Cr Computer, old 453,000
Cr Gain on asset exchange 32,700
Swinnerton Clothing Company's balance sheet showed total current assets of $1,800, all of which were required in operations. Its current liabilities consisted of $575 of accounts payable, $300 of 6% short-term notes payable to the bank, and $145 of accrued wages and taxes. What was its net operating working capital that was financed by investors? Select the correct answer. a. $1,096 b. $1,088 c. $1,112 d. $1,080 e. $1,104
Answer:
d. $1,080
Explanation:
The computation of the net operating working capital that was financed by investors is shown below:
= Total current assets - account payable - accrued wages and taxes
= $1,800 - $575 - $145
= $1,080
By deducting the account payable and accrued wages from the total current assets we can calculate the net operating working capital and the same is to be considered
Juxipi Inc. is well known for having a stronger credit score than its competitors. that is why, buyers are more willing to buy promissory notes from Juxipi than its competitors. Which of the following short-term financing options is being offered by Juxipi Inc. in the given scenario?
a. Short-term bank loans
b. Factoring
c. Trade credit
d. Commercial paper
Answer:
d. Commercial paper
Explanation:
-Short-term bank loans is a loan that has to be paid back in a year.
-Factoring is when a company sells its accounts receivable to another company at a cheaper price.
-Trade credit is a credit that a supplier gives to its clients to make the payments later.
-Commercial paper is a promissory note used by companies to get money to cover short-term liabilities and has a period of time of up to a year.
According to this, the answer us that the short-term financing option that is being offered by Juxipi Inc. in the given scenario is commercial paper.
Pie Corporation paid $319,500 to acquire 90 percent ownership of Slice Company on April 1, 20X2. At that date, the fair value of the noncontrolling interest was $35,500. On January 1, 20X2, Slice reported these stockholders’ equity balances:
Answer and Explanation:
As per situation the Journal entries with narrations is here below:-
As per requirement of a
1. Slice Co. investment Dr, $319,500
To Cash $319,500
(Being cash paid is recorded)
2. Slice Co. investment Dr, $27,000
To Income from Slice Co. $27,000
(Being investment is recorded)
3 Cash Dr, $13,500
To Slice Co. investment $13,500
(Being cash is recorded)
As per requirement b
1. Sales Dr, $90,000
To Total Expenses $80,000
To Dividends Declared $5,000
To Retained Earnings $5,000
(Being sales is recorded)
2. Common stock Dr, $160,000
Additional paid-in capital Dr, $40,000
Retained earnings Dr, $155,000
Income from Slice Co. Dr, $27,000
NCI in NI of Slice Co. Dr, $3,000
To Dividends declared $15,000
($1,500 + $13,500)
To Investment in Slice Co. $333,000
($319,500 + $27,000 - $135,00)
To NCI in NA of Slice Co. $37,000
(Being acquisition is recorded)
Suppose $1 comma 500 is deposited in a bank account today (time 0), followed by $1 comma 500 deposits in years 2, 4, 6, and 8. At 9% annual interest, how much will the future equivalent be at the end of year 12?
Answer:
$15,391.91
Explanation:
the first step is to find the present value of the cash flows. After the future value of the sum would be determined.
present value is the sum of discounted cash flows.
present value can be determined using a financial calculator
Cash flow in year 0 = $1500
Cash flow in year 1 = 0
Cash flow in year 2 = $1500
Cash flow in year 3 = 0
Cash flow in year 4 = $1500
Cash flow in year 5 = 0
Cash flow in year 6 = $1500
Cash flow in year 7 = 0
Cash flow in year 8 = $1500
I = 9%
PV = $5472.36
The formula for calculating future value:
FV = P (1 + r) n
FV = Future value
P = Present value
R = interest rate
N = number of years
$5472.36(1.09)^12 = $15,391.91
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
Chang Co. issued a $50,172, 120-day, discounted note to Guarantee Bank. The discount rate is 10%. Assuming a 360-day year, the cash proceeds to Chang Co. are:___________.
A. $55,189
B. $50,172
C. $50,590
D. $48,500
Assuming a 360-day year, the cash proceeds to Chang Co. are $50,172. Thus, option (B) is correct
What is the rate?A number, amount, or degree measured in relation to another object. She typed at a speed of 80 words per minute. a charge or payment based on another quantity. more specifically: the premium per insurance unit. A rate in mathematics is the comparison of two related values expressed in different units.
Discounted note to Guarantee Bank. The discount rate is 10%. Assuming a 360-day year, the cash proceeds to Chang Co. are $50,172Investors buy discount notes at a price less than the note's face value since they are issued at a discount to par.
60 miles per hour is a standard or measure for a specific number or amount of one item when compared to a unit of another thing. a set price per quantity unit: 10 cents per pound is the price. To lower costs and prices for all home furniture.
Therefore, Thus, option (B) is correct
Learn more about the rate here:
https://brainly.com/question/14731228
#SPJ5
In the Chase case, Chase segmented customers based on the types of rewards they preferred. Which segmentation strategy does Chase use?
Answer:
The answer is behavioural segmentation
Explanation:
Behavioral Segmentation is a form of customer segmentation that divides consumers according to behavior patterns as they interact with a company. One of the objectives is to understand how to address the particular needs and desires of customer groups..
It helps us to analyze how consumers used their cards and how much they valued rewards. We have benefit-seeking buyers, Loyalty-oriented purchasing etc
Ashley is an attorney who specializes in family law. She uses the cash method of accounting and is a calendar-year taxpayer. Last year, she represented a client in a lawsuit and billed the client $5,000 for her services. Although she made repeated attempts, Ashley was unable to collect the outstanding receivable. Finally, in November of the current year, she finds out that the individual has moved without leaving any forwarding address. Ashley’s attempts to locate the individual are futile. What is the amount, if any, of the deduction that she may claim in connection with this bad debt?
Answer:
The Answer is explained below
Explanation:
Ashley is unable to collect the outstanding receivable after repeated attempts. In order to claim any deduction in connection with this bad debt Ashley has to record the income first but Ashley is using the cash method of accounting here. Therefore she can only claim any deduction when she receives any payment.
The price elasticity of supply for basmati rice (an aromatic strain of rice) is likely to be which of the following?
A. High in both the long run and the short run, because the inputs required to produce basmati rice can easily be duplicated.
B. Low in both the long and short runs, because rice farming requires only unskilled labor.
C. High, because consumers have a lot of other kinds of rice and other staple foods to choose from.
D. Higher in the long run than the short run, because farmers cannot easily change their decisions about how much basmati rice to plant once the current crop has been planted.
Answer: D. Higher in the long run than the short run, because farmers cannot easily change their decisions about how much basmati rice to plant once the current crop has been planted.
Explanation:
Price Elasticity of Supply refers to how Supply changes in response to a change in price. Essentially, if the price of a good increases, will Supplier supply more or less of that good as a result and by how much will they do so.
In the short run, the farmers would have already planted the crops and so would be unable start changing the quantity that they expect from the harvest. They will therefore supply the amount they harvested regardless of a price change.
In the long run however, they can change the amount of rice planted depending on the price of the rice in the market. Price Elasticity is therefore higher in the long run than in the short run.
1 points eBookPrintReferences Check my work Check My Work button is now disabled3Item 2Item 2 1 points Today, your dream car costs $65,500. You feel that the price of the car will increase at an annual rate 2.4 percent. If you plan to wait 4 years to buy the car, how much will it cost at that time
Answer:
$72,018.011
Explanation:
Calculation of how much will it cost at that time you plan to wait 4 years to buy the car
Using this formula
Cost =Car cost (Increase in price)^ Number of years
Let plug in the formula
Cost =$65,500(1+0.024)^4
Cost =$65,500(1.024)^4
Cost =$65,500(1.09951162)
Cost =$72,018.011
Therefore the amount that it will cost at that time you plan to wait 4 years to buy the car will be $72,018.011
Metallica Bearings, Inc., is a young start-up company. No dividends will be paid on the stock over the next nine years, because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $14 per share 10 years from today and will increase the dividend by 5 percent per year thereafter.
Required:
If the required return on this stock is 14 percent, what is the current share price?
Answer:
we have to divide the money
Explanation:
as it is written its
Two mutually exclusive projects have an initial cost of $60,000 each. Project A produces cash inflows of $30,000, $27,000, and $20,000 for Years 1 through 3, respectively. Project B produces cash inflows of $80,000 in Year 2 only. The required rate of return is 10 percent for Project A and 11 percent for Project B. Which project(s) should be accepted and why
Answer:
Project B
Explanation:
The computation of the net present value is shown below:
For project A
(in dollars) (in dollars)
Year Cash flows Discount factor at 10% Present value
0 -60000 1 -60000.00 (A)
1 30000 0.9090909091 27272.73
2 27000 0.826446281 22314.05
3 20000 0.7513148009 15026.30
Total present value 64613.07 (B)
Net present value 4613.07 (B - A)
For project B
(in dollars) (in dollars)
Year Cash flows Discount factor at 11% Present value
0 -60000 1 -60000.00 (A)
1 0 0.9009009009 0
2 80000 0.8116224332 64929.79
3 0 0.7311913813 0
Total present value 64929.79 (B)
Net present value 4929.79 (B - A)
As we can see that project B has high net present value as compared with project A so project B should be accepted
Virginia owns an interior design company and hires freelance decorators to help with large jobs. In this way, she is able to keep costs low by only employing staff when they are needed. However, over time Virginia has added full‐time staff members as the company grows. How would you classify Virginia’s company? Group of answer choices As an investment center As a profit center As a cost center but not a profit center As both a cost center and a profit center, but not an investment center
Answer: As an investment centre
Explanation:
Based on the question, we are told that Virginia owns an interior design company and hires freelance decorators to help with large jobs and that by doing this, she is able to keep costs low by only employing staff when they are needed. Virginia's company is an investment centre.
An investment center is a business unit that is within an entity that is responsible for its own assets, revenue, and expenses and its financial results will be based on these factors. An investment center focuses on how it will minimize costs.
sales of $1.67 million, cost of goods sold of $810,800, depreciation expenses of $175,000, and interest expenses of $89,575. Assume that the firm has an average tax rate of 35 percent. What is the company’s net income? Set up an income statement to answer the question.
Answer:
Net income= 561,506.25
Explanation:
Giving the following information:
sales of $1.67 million, cost of goods sold of $810,800, depreciation expenses of $175,000, and interest expenses of $89,575.
Tax= 35 percent
We need to determine the net income.
Sales= 1,670,000
COGS= (810,800)
Gross profit= 859,200
Depresiation= (175,000)
Interest= (89,575)
EBT= 594,625
Tax= (594,625*0.35)= (208,118.75)
Depreciation= 175,000
Net income= 561,506.25
Zen Inc. manufactures two types of products, the G.1 and the T.1 models. The manufacturing process consists of two principal departments: production and assembly. The production department has 58 skilled workers, each of whom works 7 hours per day. The assembly department has 25 workers, who also work a 7-hour shift. On an average, to produce a G.1 model, Zen Inc. requires 3.5 labor hours for production and 2 labor hours for assembly. The T.1 model requires 4 labor hours for production and 1.5 labor hours in assembly. The company anticipates selling at least 1.5 times as many T.1 models as G.1 models. The company operates five days per week and makes a net profit of $130 on the G.1 model, and $150 on the T.1 model. Zen Inc. wants to determine how many of each model should be produced on a weekly basis to maximize net profit. Formulate the problem.Let the number of G.1 product produced each week be G.Let the number of T.1 product produced each week be T.Formulate the problem.MaxabG +Spell checkTsubject toSpell checkG +Spell checkT ?Spell check(production labor constraint)Spell checkG +Spell checkT ?Spell check(assembly labor constraint)T ?Spell checkG (constraint reflecting demand)G, T ?Spell check(non-negativity conditions)
Explanation:
Below is the problem formulation:
Workers:
Production dept. — 58
Assembly dept. — 25
Available work hours each day for each employee per Department:
Production dept. — 7
Assembly dept. — 7
Average Required Labor Hours per Model:
G.1— Production 3.5; Assembly 2
T.1— Production 4; Assembly 1.5
Net Profit per Model
G.1— $130
T.1— $150
Constraints:
For Labor Hours:
Production
i) 3.5G ≤ 7
ii) 4T≤ 7
Assembly
i) 2G ≤ 7
ii) 1.5T ≤ 7
Objective function: Max Z= 130G+ 150T
The production department in a process manufacturing system completed 94,000 units of product and transferred them to finished goods during a recent period. Of these units, 28,200 were in process at the beginning of the period. The other 65,800 units were started and completed during the period. At period-end, 16,700 units were in process. Compute the departments equivalent units of production with repect to direct materials under each of three seperate assumptions, using the weighted average method, then using the FIFO method
a. All direct materials are added to products when processing begins.
b. Beginning inventory is 40% complete to materials and conversion costs. Ending inventory is 75% complete as to materials and conversion costs
c. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending Inventory is 30% complete as to materials and 60% complete to conversion costs.
Answer:
Weighted Average Method.
a. 110,700 units
b. 106,525 units
c. 82,090 units
FIFO
a. 85,500 units
b. 95,245 units
c. 99,010 units
Explanation:
Calculation of equivalent units of production with respect to direct materials.
FIFO.
a. All direct materials are added to products when processing begins.
Materials
To finish Opening Work in Process 0
Started and Completed 65,800
Closing Work in process (16,700 × 100%) 16,700
Total equivalent units of production 85,500
b. Beginning inventory is 40% complete to materials and conversion costs. Ending inventory is 75% complete as to materials and conversion costs
Materials
To finish Opening Work in Process (28,200 × 60%) 16,920
Started and Completed (65,800 × 100%) 65,800
Closing Work in process (16,700 × 75%) 12,525
Total equivalent units of production 95,245
c. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending Inventory is 30% complete as to materials and 60% complete to conversion costs.
Materials
To finish Opening Work in Process (28,200 × 40%) 11,280
Started and Completed (65,800 × 100%) 65,800
Closing Work in process (16,700 × 30%) 5,010
Total equivalent units of production 82,090
Weighted Average Method.
a. All direct materials are added to products when processing begins.
Materials
Completed and transferred (94,000 × 100%) 94,000
Closing Work in process (16,700 × 100%) 16,700
Total equivalent units of production 110,700
b. Beginning inventory is 40% complete to materials and conversion costs. Ending inventory is 75% complete as to materials and conversion costs
Materials
Completed and transferred (94,000 × 100%) 94,000
Closing Work in process (16,700 × 75%) 12,525
Total equivalent units of production 106,525
c. Beginning inventory is 60% complete as to materials and 40% complete as to conversion costs. Ending Inventory is 30% complete as to materials and 60% complete to conversion costs.
Materials
Completed and transferred (94,000 × 100%) 94,000
Closing Work in process (16,700 × 30%) 5,010
Total equivalent units of production 99,010
Bonds with a face amount $1,000,000, are sold at 96. The entry to record the issuance is
A. Cash 1,000,000
Premium on Bonds Payable 40,000
Bonds Payable 960,000
B. Cash 960,000
Premium on Bonds Payable 40,000
Bonds Payable 1,000,000
C. Cash 960,000
Discount on Bonds Payable 40,000
Bonds Payable 1,000,000
D. Cash 960,000
Bonds Payable 960,000
Answer:
Option C is correct
Explanation:
The cash proceeds from the bond issuance is 96% of its face value i.e 96%*$1,000,000=$960,000
The discount on bonds payable=Face value-cash proceeds
The discount on bonds payable=$1,000,000-$960,000=$40,000
The appropriate entries would be to credit bonds payable with $1000,000 while cash and discount on bonds payable are debited with $960,000 and $40,000 respectively
In the Schedule of Cost of Goods Manufactured and Cost of Goods Sold, the cost of goods manufactured is computed according to which of the following equations?
a) Cost of goods manufactured = Total manufacturing costs + Beginning finished goods inventory – Ending finished goods inventory
b) Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory
c) Cost of goods manufactured = Total manufacturing costs + Ending work in process inventory – Beginning work in process inventory
d) Cost of goods manufactured = Total manufacturing costs + Ending finished goods inventory – Beginning finished goods inventory
Answer:
Cost of goods manufactured = Total manufacturing costs + Beginning work in process inventory – Ending work in process inventory
Explanation:
Cost of goods sold is the total direct costs of producing the goods sold by a company.
Cost of goods sold = cost of direct materials + cost of direct labour + Manufacturing Overhead + Beginning work in process inventory – Ending work in process inventory
When talking about economic profits in a perfectly competitive market, the difference between the long run and the short run is that, in the short run, firms:
Swifty Corporation purchased from its stockholders 5,500 shares of its own previously issued stock for $275,000. It later resold 1,700 shares for $53 per share, then 1,700 more shares for $48 per share, and finally 2,100 shares for $42 per share. Prepare journal entries for the purchase of the treasury stock and the three sales of treasury stock.
Answer: The answer is given below
Explanation:
A journal is a book that is used in accounting to record the transactions that takes place in a company.
It should be noted that in the attached file, the amount that was paid in capital from the treasury stock was calculated as:
= 5,100 - 3,400
= 1,700
The retained earnings was also calculated as:
= 105,000 - 88,200 - 1,700
= 15,100
Check the attached file for further information.
Answer with its Explanation:
1. The repurchase of 5,500 shares from the sharesholders will be recorded as under:
Dr Treasury Stock $275,000
Cr Cash $275,000
2. The sale of 1,700 shares at $53 per share would be recorded as under:
Dr Cash ( 1,700 shares * $53 ) $90,100
Cr Treasury Stock ( 1,700 shares * $50 ) $85,000
Cr Paid in capital ( 1,700 shares * $3 ) $5,100
3. The Selling of the 1,700 shares at $48 each will be recorded as under:
Dr Cash ( 1,700 Shares * $48) $81,600
Dr Paid in capital ( 1,700 shares * $2) $3,400
Cr Treasury Stock ( 1,700 shares * $ 50 ) $85,000
4. The selling of 2,100 shares at $42 will be recorded as under:
Dr Cash ( 2,100 shares * $ 42 ) $88,200
Dr Paid in capital from treasury stock $1,700 ........ Step 1
Dr Retained Earnings $15,100 ...... Balancing Figure
Cr Treasury Stock ( 2,100 shares * $ 50 ) $105,000
Step 1. Paid in capital from Treasury Stock
Paid in capital from Treasury Stock = 5,100 - 3,400 = $1,700 Paid In capital
Retained Earnings will be Balancing Figure = 105,000 - 88,200 - 1,700 Paid In capital = $15,100
If Mikael decides to go out with his friends instead of study for his biology test, what is the opportunity cost?
Answer:
Studying his biology test
Explanation:
opportunity cost refers to the cost of the forgone alternative inorder to enjoy another service
Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as Group of answer choices
The question is incomplete:
Costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as Group of answer choices
-Period costs
-Conversion costs
-Product costs
-Factory overhead costs
Answer:
Period costs
Explanation:
-Period costs are costs that can't be related to the production process but to a period of time and they help to earn profits and are recorded as an expense, for example, comissions and administrative expenses.
-Conversion costs is the amount of money that the company uses to transform the raw materials into finished goods.
-Product costs refer to all the costs incurred by a business to create a product.
-Factory overhead costs refers to the costs incurred by a business to create a product but that can't be related to the production process, for example, factory utilities and repairs.
According to this, the answer is that the costs that are incurred in generating revenues during the period, but are not involved in the manufacturing process are referred to as period costs because these are costs that help the company to earn money but that can't be traced to a specific stage of the production process.
Understanding cost behavior depends on all of the following except a.intangibles. b.relevant range. c.activity drivers. d.activity bases.
Answer:
a.intangibles.
Explanation:
The cost behavior refers to behavior in which it shows the changes in the cost if there is a change in any kind of activity
It can be based on given range, activity drivers, activity bases but not with the intangible cases as intangible refers to the asset which cannot be visible or even touched like intellectual properties i.e copyrights, patents, goodwill, etc
Hence, the correct option is a.
If a major misdeed is committed by a brokerage that results in a substantial drain on the real estate recovery trust account, what options are available to replenish the fund?
Answer:
Explanation:
Real Estate Recovery Trust Account are accounts that are funded by administrative penalties and dispersed to consumers that are owed damages due to a license holder's conduct and subsequent inability to pay. These licence holders may be charged an additional $10 fee on the renewal date in order to make up for the substantial drain, or receive a special assessment if the replenishment is urgent.
Norred Corporation has provided the following information: Cost per Unit Direct materials Direct labor Variable manufacturing overhead Fixed manufacturing overhead Sales commissions Variable administrative expense Fixed selling and administrative expense 7.50 3.70 1.60 1.50 $ 045 Cost per Period 121,500 44,500 If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: A) $120,800 B) $134,300 C) $12,800 D) $121,500
Answer:
$134,300
Explanation:
Total indirect manufacturing cost = (Unit Produced * Variable manufactured overhead) + Fixed manufacturing overhead
= (8,000 * 1.60) + 121,500
=12,800 + 121,150
=$134,300
Hencc, the total amount of indirect manufacturing cost is $134,300
Buckeye Incorporated has operating income of $ 434,000, a sales margin of 7%, and a capital turnover rate of 2. What amount would Buckeye report for sale
Answer:
The amount Buckeye would report for sale is $6,200,000.
Explanation:
Sale refers to income or revenue that a company got by selling its goods or providing its services.
In accounting ratio analysis, sales margin is obtained by dividing the operating profit by sale. Therefore, the formula for sales margin can be written as follows:
Sales margin = Operating income / Sale ................... (1)
To obtain Sale, we can substitute the figures for sales margin and operating profit from the question into equation (1) and then solve for sale as follows:
7% = $434,000 / Sale
Sale * 7% = $434,000
Sale = $434,000 / 7%
Sale = $6,200,000
Therefore, the amount Buckeye would report for sale is $6,200,000.
Company F purchased 40% of the outstanding stock of company K on June 30, 20XX. Both of the companies have a December 31st, year end. Company K is a publicly traded company and reports its net income to company F. Company K also pays a hefty dividend to the shareholders of company F. How should company F report the above facts on its December 31, 20XX balance sheet and income statement
Answer and Explanation:
Within the U.S. GAAP, Company F is an owner owning greater than 20 percent but smaller than or equivalent to 50 percent of Company K's stock and is thus considered to have the right to exercise considerable control on Company K's financial affairs.
According to the GAAP, there is nothing exist explicit information that there is no substantial impact.
Company F will use the EQUITY method to compensate for all assets in the 20 to 50 percent ownership range.
Within this approach,
Business F will pass the following journal entry on the purchase of shares in K:
Particulars Debit Credit
Investment In K Dr, XXXXXX
To Cash XXXXXX
(Being cash paid is recorded)
For recording this we debited the investment as it increased the assets and credited the cash as it decreased the assets
If Company K declares net income in Dec 20XX, Company F will instantly recognize its share of income for the proportionate period of keeping the 40 percent (that is 6 months net income) by way of a journal entry is shown below: (Total net income of K × 40 percent × 6 ÷ 12)
Particulars Debit Credit
Investment in K Dr, XXXXXX
To Investment Income -Co. K XXXXXX
(Being the investment is recorded)
For recording this we debited the investment as it increased the assets and credited the investment income as it also increased the income
If Company K pays dividends to company owners F
The investment account reduces by the amount of cash dividend earned, and the below entry must be passed on to F's books:
Particulars Debit Credit
Cash Dr, XXXXXX
To Investment in K XXXXXX
(Being the cash is recorded)
For recording this we debited the cash as it increased the assets and credited the investment as it decreased the assets
Once Company F sells shown above investment it makes a clear entry:
Particulars Debit Credit
Cash Dr, XXXXXX
To Investment in K XXXXXX
(Being the cash is recorded)
For recording this we debited the cash as it increased the assets and credited the investment as it decreased the assets
The investment carrying value come by
= Purchase price + Net income accrued - Dividends received
Any balance shall be debited in respect of losses on the selling of investment in K-equity securities or Credited to Investment in K -Equity Securities Gain on Sale
So this amount of investment in other companies' equity (40 percent), includes forwarding the above-mentioned journal entries, in the buying company's accounts.
What program is used to determine employee's bonuses? A. time series B. exponential smoothing C. regression D. weighted moving averages
Answer:
The correct answer is: D. weighted moving averages
Explanation:
To determine employee bonuses, companies use the weighted moving average program.
This is an indicator that works using a calculation that ensures greater relevance to recent data, that is, there is a weighting factor that ensures that weights are differentiated, since it uses the multiplication of factors to differentiate weights in relation to different data.
So it is the ideal program for averaging employee bonuses.
Coronado Industries developed the following data for the current year: Beginning work in process inventory $190000 Direct materials used 94000 Actual overhead 238000 Overhead applied 166000 Cost of goods manufactured 214000 Total manufacturing costs 570000 Coronado Industries's ending work in process inventory is
Answer:
Ending WIP= $546,000
Explanation:
Giving the following information:
Beginning work in process inventory $190,000
Cost of goods manufactured 214,000
Total manufacturing costs 570,000
To calculate the ending work in process, we need to use the following formula:
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
214,000= 190,000 + 570,000 - Ending WIP
Ending WIP= $546,000
Which of the following is an incorrect statement? a If individual audit risk remains the same, detection risk bears an inverse relationship to inherent and control risk. b The greater the inherent and control risk the auditor believes exist the less detection risk that can be accepted. c The auditor might make separate or combined assessments of inherent risk and control risk. d Detection risk cannot be changed at the auditor’s discretion.
Answer:
d Detection risk cannot be changed at the auditor’s discretion.
Explanation:
Audit risk can be defined as the risk that financial reports issued by an auditor are materially incorrect due to fraud or errors, despite the fact that the inappropriate audit opinion states that the financial reports are void of any material misstatements. There are two (2) main components of an audit risk, these are;
1. Detection risk: this deals with the fact that procedures used by the auditor will not detect any material misstatement as a result of errors.
2. Risk of material misstatement: this deals with the material misstatements of financial statements before auditing. There are two main types namely, inherent and control risks.
The following statements are true and correct;
A. If individual audit risk remains the same, detection risk bears an inverse relationship to inherent and control risk.
B.The greater the inherent and control risk the auditor believes exist the less detection risk that can be accepted.
C. The auditor might make separate or combined assessments of inherent risk and control risk.
However, saying that detection risk cannot be changed at the auditor’s discretion is false. Since it is arises as a result of error, if the auditor conducts a proper sampling procedure it can be detected and eventually changed.
The equal total payments pattern for installment notes consists of changing amounts of interest but constant amounts of principal over the life of the note.
A. True
B. False
Answer:
B. False
Explanation:
The equal total payments pattern for installment notes is when the regular payments on an installment note are always for the same amount. However, the amounts of interest and principal change over the life of the note because at the begining, most of the payment amount goes toward the interest and as you make payments your principal starts to decrease making the amount that goes toward the interest to decrease and the money that goes towards the principal to increase. According to that, the statement is false.