Answer:
Company address
Explanation:
Quick books is accounting software that is made for small and medium-sized organizations. They include cloud-based applications for business payments.
For setting up the software and first starting with the sales taxes for the contents one needs to enter the company address, and start with the other information.Learn more about the first set-up sales taxes for a client.
brainly.com/question/17082662.
The allowance method of accounting for bad debts has the following advantages over the direct write-off method including:_________.
A. Records estimated bad debts expense in the period when the related sales are recorded.
B. Records estimated bad debts expense when the account receivable is determined to be uncollectible.
C. Reports accounts receivable on the balance sheet at the estimated amount of cash to be collected
D. Reports sales on the income statement at the estimated amount of cash to be collected
Answer:
A) Records estimated bad debts expense in the period when the related sales are recorded.
C) Reports accounts receivable on the balance sheet at the estimated amount of cash to be collected
Explanation:
The allowance method cannbe regarded as ways used in reporting bad debts expense which comes from the action of the company by selling goods/services on credit.
The direct write-off method can be regarded as accounting method whereby uncollectible accounts receivable is been written off inform of bad debt. It should be noted that The allowance method of accounting for bad debts has the advantages over the direct write-off method in ways like
✓ Records estimated bad debts expense in the period when the related sales are recorded.
✓Reports accounts receivable on the balance sheet at the estimated amount of cash to be collected
What are THREE purposes of monetary policy? A to eliminate competition B. to promote price stability c. to eliminate unemployment D. to devalue foreign currency E, to promote economic growth F to control federal spending
Answer:
c. to eliminate unemployment,B. to promote price stability and F. to control federal spending
Explanation:
On a piece of paper or on a device with a touch screen, hand write the solution to the following problem. Then photograph or save the file in .pdf form and submit it on this page. You would like to buy a house for $1,000,000. You put $200,000 down, and then get a mortgage for the rest at 4%, compounded monthly. What is the difference in the What is the difference in the monthly payment if you amortize the loan over 30 years vs. 15 years
Answer:
The difference in monthly payment is:
= $2,098.18.
Explanation:
a) Data and Calculations:
Cost of the Mortgage House = $1,000,000
Down payment = $200,000 or 20%
Mortgage interest rate = 4%
Period of Mortgage amortization = 30 or 15
From an online financial calculator:
Monthly Pay: $3,819.32
House Price $1,000,000.00
Loan Amount $800,000.00
Down Payment $200,000.00
Total of 360 Mortgage Payments $1,374,956.05
Total Interest $574,956.05
Mortgage Payoff Date Apr. 2051
Monthly Pay: $5,917.50
House Price $1,000,000.00
Loan Amount $800,000.00
Down Payment $200,000.00
Total of 180 Mortgage Payments $1,065,150.61
Total Interest $265,150.61
Mortgage Payoff Date Apr. 2036
Monthly payment for 15 years = $5,917.50
Monthly payment for 30 years = 3,819.32
Difference in monthly payment = $2,098.18
In June 2015, the unemployment rate declined to 5.3 percent from 5.5 percent in May. The labor force participation rate also declined from May to June, from 62.9 percent to 62.6 percent. If the labor force participation rate had remained unchanged from May to June, the unemployment rate for June 2015 would be
Answer: A. greater than 5.3 percent because the value in the numerator of the formula for the unemployment rate would increase more than the value in the denominator.
Explanation:
The unemployment rate is calculated by dividing the number of those who are unemployed but actively seeking employment by the labor force.
= Unemployed / Labor force
If the labor force participation rate had remained unchanged then that would mean that the denominator for the unemployment rate did not change while unemployment did.
The unemployment rate will therefore be greater than 5.3% because the numerator which is the unemployment figure, would have increase more than the denominator.
Park Corporation is planning to issue bonds with a face value of $780,000 and a coupon rate of 7.5 percent. The bonds mature in 4 years and pay interest semiannually every June 30 and December 31. All of the bonds were sold on January 1 of this year. Park uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 8.5 percent. (Use appropiate factors from the tables FV, PV, FVA, and PVA of $1)
1. Prepare the journal entry to record the issuance of the bonds.
2. Prepare the journal entry to record the interest payment on June 30 of this year.
3. What bond payable amount will Park report on its June 30 balance sheet?
Answer:
1. Dr Cash $735,385
Dr Premium on Bond Payable $44,615
Cr To Bond Payable $780,000
2. 30-Jun
Dr Interest expense $31,254
Cr Premium on bond payable $2,004
Cr Cash $29,250
3. $737,389
Explanation:
1. Preparation of the journal entry to record the issuance of the bonds.
First step is to calculate the Present value
$780,000 × 0.51379 = $400,756
$29,250* × 11.44031 = $334,629
Issue price = $735,385
$780,000 × .075 × 1/2 = $29,250
Now let Prepare the journal entry to record the issuance of the bonds.
1-Jan
Dr Cash $735,385
Dr Premium on Bond Payable $44,615
($780,000-$735,385)
Cr To Bond Payable $780,000
(To record issuance of the bonds.)
2. Preparation of the journal entry to record the interest payment on June 30 of this year.
30-Jun
Dr Interest expense $31,254
($735,385 × .085 × 1/2)
Cr Premium on bond payable $2,004
($31,254-$29,250)
Cr Cash $29,250
($780,000 × .075 × 1/2 )
(To record interest payment)
3. Calculation to determine the bond payable amount that Park will report on its June 30 balance sheet
Balance Sheet (Partial)
As of June 30
Particulars Amount
Long term liabilities:
Bond Payable $780,0000
Less Discount o Bonds payable ($42,611)
($44,615-$2,004)
Bonds payable $737,389
Therefore the bond payable amount that Park will report on its June 30 balance sheet is $737,389
You are managing a portfolio of $1.0 million. Your target duration is 11 years, and you can choose from two bonds: a zero-coupon bond with maturity five years, and a perpetuity, each currently yielding 5%. a. How much of (i) the zero-coupon bond and (ii) the perpetuity will you hold in your portfolio
In risk management what does risk control include
After its success in Japan, Starbucks worked with local operators, collecting initial fees and then royalties on store revenues as it entered other Asian countries. Starbucks insisted that the local operators incorporate an intensive employee-training program and follow strict specifications regarding the format and layout of the stores. This type of relationship best describes which strategy
Answer:
Franchising.
Explanation:
Franchise is a license consisting of a contractual arrangement between a parent company (franchiser or franchisor) and another (franchisee), that allows individuals or an organization access to its knowledge, processes, trademarks in order to provide a service.
One of the main advantages of a franchise is that, franchisers such as Starbucks do not require additional capital and development expenses to have their businesses being situated in a foreign market or country, as they only required to issue licenses to franchisors who are interested in being part of their business by paying a fee. For instance, Starbucks could give the authority to an individual or group of people which would enable them to do the same business in another geographical location.
Hence, this type of relationship best describes franchising because Starbucks worked with local operators while collecting initial setup fees and then royalties on store revenues generated by the franchisees as it entered other Asian countries.
Condensed financial data of Swifty Company for 2020 and 2019 are presented below. SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019 Cash $1,770 $1,170 Receivables 1,780 1,300 Inventory 1,570 1,880 Plant assets 1,870 1,710 Accumulated depreciation (1,210 ) (1,190 ) Long-term investments (held-to-maturity) 1,290 1,430 $7,070 $6,300 Accounts payable $1,200 $900 Accrued liabilities 200 250 Bonds payable 1,430 1,580 Common stock 1,860 1,730 Retained earnings 2,380 1,840 $7,070 $6,300 SWIFTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,820 Cost of goods sold 4,640 Gross margin 2,180 Selling and administrative expenses 910 Income from operations 1,270 Other revenues and gains Gain on sale of investments 80 Income before tax 1,350 Income tax expense 550 Net income 800 Cash dividends 260 Income retained in business $540 Additional information: During the year, $80 of common stock was issued in exchange for plant assets. No plant assets were sold in 2020. Prepare a statement of cash flows using the direct method.
Answer:
Swifty Company
Explanation:
a) Data and Calculations:
SWIFTY COMPANY COMPARATIVE BALANCE SHEET AS OF DECEMBER 31, 2020 AND 2019 2020 2019
Cash $1,770 $1,170
Receivables 1,780 1,300
Inventory 1,570 1,880
Plant assets 1,870 1,710
Accumulated depreciation (1,210 ) (1,190 )
Long-term investments
(held-to-maturity) 1,290 1,430
Total assets $7,070 $6,300
Accounts payable $1,200 $900
Accrued liabilities 200 250
Bonds payable 1,430 1,580
Common stock 1,860 1,730
Retained earnings 2,380 1,840
Total liabilities and equity $7,070 $6,300
SWIFTY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020
Sales revenue $6,820
Cost of goods sold 4,640
Gross margin 2,180
Selling and administrative expenses 910
Income from operations 1,270
Other revenues and gains
Gain on sale of investments 80
Income before tax 1,350
Income tax expense 550
Net income 800
Cash dividends 260
Income retained in business $540
Additional Information:
a) Issue of Common stock for plant assets = $80
Adjustments for cash transactions:
Receipts:
Customers = $1,300 + $6,820 - $1,780 = $6,340
Sale of investment = $1,430 - $1,290 = $140
Common stock = $1,860 - $1,730 - $80 = $50
Payments:
Suppliers = $900 + $4,330 - $1,200 = $4,030
Expenses = $250 + $910 - $200 = $960
Bonds = $1,580 - $1,430 = $150
Plant = $1,870 - $80 - $1,710 = $80
Purchases = $1,570 + 4,640 - $1,880 = $4,330
Statement of Cash Flows for the year ended December 31, 2020:
Cash flows from operating activities:
Receipt from customers $6,340
Payment to suppliers (4,030)
Payment for services (960)
Income tax expense (550)
Net cash from operating activities 800
Cash flows from investing activities:
Receipt from sale of investments $140
Purchase of plant assets (80)
Net cash from investing activities 60
Cash flows from financing activities:
Issue of Common stock $50
Payment to bondholders (150)
Payment to stockholders (260)
Net cash from financing activities (360)
Net cash flows $500
Vaughn Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $2,088,000 on March 1, $1,236,000 on June 1, and $3,090,260 on December 31. Vaughn Company borrowed $1,083,960 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 9%, 5-year, $2,493,000 note payable and an 10%, 4-year, $3,319,800 note payable. Compute the weighted-average interest rate used for interest capitalization purposes.
Answer:
9.57 %
Explanation:
The computation of the weighted-average interest rate used for interest capitalization purposes is shown below:
Particulars Loan Amount Interest
9 % 5 year note payable $2,493,000 ($2,493,000 × 9 %) = $224,370
10 % 4 year note payable $3,319,800 ($3,319,800 × 10 %) = $331,980
Total $5,812,800 $556,350
Now
Weighted- average interest rate is
= $556,350 ÷ $5,812,800
= 9.57 %
Dinklemyer Corporation uses direct labor hours as its single cost driver. Actual overhead costs and actual direct labor hours for the first five months of the current year are as follows. Month Actual Total Overhead Actual Direct Labor Hours January $ 975,000 19,250 February 950,000 18,400 March 860,000 17,000 April 700,000 12,375 May 760,000 13,200 a. Compute the company's estimated variable manufacturing overhead cost per direct labor hour. b. Estimate the company's total monthly fixed manufacturing overhead cost. c. Estimate the company's total manufacturing overhead for June through August if 40,000 total direct labor hours are budgeted for that specific three-month period.
Answer:
a. Estimated variable manufacturing overhead cost per direct labor hour = $40 per hour
b. Total monthly fixed manufacturing overhead cost = $205,000
c. Total manufacturing overhead for June through August = $2,215,000
Explanation:
a. Compute the company's estimated variable manufacturing overhead cost per direct labor hour.
Difference between high and low overhead = January overhead - April overhead = $975,000 - $700,000 = $275,000
Difference between high and low Direct Labor Hours = January Direct Labor Hours - April Direct Labor Hours = 19,250 - 12,375 = 6,875
Therefore, we have:
Estimated variable manufacturing overhead cost per direct labor hour = Difference between high and low overhead / Difference between high and low Direct Labor Hours = $275,000 / 6,875 = $40 per hour
b. Estimate the company's total monthly fixed manufacturing overhead cost.
Total monthly fixed manufacturing overhead cost = High overhead - (Estimated variable manufacturing overhead cost per direct labor hour * High direct labor) = $975,000 - ($40 * 19,250) = $205,000
c. Estimate the company's total manufacturing overhead for June through August if 40,000 total direct labor hours are budgeted for that specific three-month period.
Total manufacturing overhead for June through August = (Total monthly fixed manufacturing overhead cost * Number of Months from June to August) + (Estimated variable manufacturing overhead cost per direct labor hour * Budgeted direct labor hours) = ($205,000 * 3) + ($40 * 40,000) = $2,215,000
The sales tax you pay when you gas up your car is regressive.
True.
False
Answer:
True
Explanation:
Regressive taxes place more burden on low-income earners. Since they are flat taxes, they take a higher percentage of income on the poor than on high-income earners. Taxes on most consumer goods, sales, gas, and Social Security payroll are examples of regressive taxes.
On January 1, 2021, the Highlands Company began construction on a new manufacturing facility for its own use. The building was completed in 2022. The company borrowed $2,050,000 at 11% on January 1 to help finance the construction. In addition to the construction loan, Highlands had the following debt outstanding throughout 2021:$6,000,000, 16% bonds$4,000,000, 11% long-term note Construction expenditures incurred during 2021 were as follows:January 1 $ 840,000March 31 1,440,000June 30 1,088,000September 30 840,000December 31 640,000Required:Calculate the amount of interest capitalized for 2021 using the specific interest method. (Do not round the intermediate calculations. Round your percentage answers to 1 decimal place (i.e. 0.123 should be entered as 12.3%).)
Answer:
Highlands Company
The interest capitalized is:
= $294,140.
Explanation:
a) Data and Calculations:
Borrowings on January 1 = $2,050,000 at 11%
Debt outstanding throughout 2021:
16% bonds = $6,000,000
11% long-term note = $4,000,000
Construction expenditures:
January 1 $ 840,000
March 31 1,440,000
June 30 1,088,000
September 30 840,000
December 31 640,000
Date Expenditure Weights Weighted-Average
January 1 $ 840,000 12/12 $840,000
March 31 1,440,000 9/12 1,080,000
June 30 1,088,000 6/12 544,000
September 30 840,000 3/12 210,000
December 31 640,000 0/12 0
Accumulated weighted-average expenditure = $2,674,000
Interest capitalized for 2021, using the specific interest method = $ ($2,674,000 * 11%)
= $294,140
Botany Bay Corporation (BBC) of Australia seeks to borrow US$ 30 comma 000 comma 000 in the eurodollar market. Funding is needed for two years. Investigation leads to three possibilities. Compare the alternatives and make a recommendation.
1. Botany Bay could borrow the US$ 30,000,000 for two years at a fixed 5 % rate of interest.
2. Botany Bay could borrow the US$ 30,000,000 at LIBORplus1.500 %. LIBOR is currently 3.500 %, and the rate would be reset every six months.
3. Botany Bay could borrow the US$ 30,000,000 for one year only at 4.500 %. At the end of the first year, Botany Bay would have to negotiate for a new one-year loan.
For Alternative 1, the interest cost per year is $ blank for the first year and $ blank for the second year.
For Alternative 2, the interest cost per year is $ blank for the first year and $ blank for the second year.
For Alternative 3, the interest cost per year is $ blank for the first year and $ blank for the second year.
Answer: See explanation
Explanation:
Alternative 1:
Principal = $30,000,000
Fixed Interest Rate = 5%
Number of Years = 2 Years
Interest Per Year = 5% × $30,000,000
= 0.05 × $30,000,000
= $1,500,000
Interest Cost per year for 1st year = $1,500,000
Interest Cost per year for 2nd year = $1,500,000
2. Alternative 2:
Principal = $30,000,000
LIBOR Rate = 3.5%
Interest Rate will be:
= LIBOR Rate + 1.5%
= 3.5% + 1.5%
= 5%
Number of Days = 6 months = 1m6 × 30 days = 180 Days
Interest Per Year = Principal × (LIBOR Rate/100) × Number of Days in Interest Period
Interest per Year = $30,000,000 × (0.05) × (180/360)
= $30,000,000 × 0.05 × 0.5
= $750,000
Interest Cost per year for 1st year = $750,000
Interest Cost per year for 2nd year = $750,000
3. Alternative 3:
Principal = $30,000,000
Fixed Interest Rate = 4.5%
Number of Years = 1 Year
Interest Per Year will be:
= 4.5% of $30,000,000
= $1,350,000
Interest Cost per year for 1st year = $1,350,000
Interest Cost per year for 2nd year = $0
Companies that use debt in their capital structure are said to be using financial leverage. Using leverage can increase shareholder returns, but leverage also increases the risk that shareholders bear. Consider the following case: Sombra Corp. is considering a project that will require $600,000 in assets. The project will be financed with 100% equity. The company faces a tax rate of 35%. What will be the ROE (return on equity) for this project if it produces an EBIT (earnings before interest and taxes) of $145,000
Answer:
ROE = 15.7%
Explanation:
Return on Equity (R.O.E). Equity capital is the capital provided by the ordinary shareholders. So the ROE measures, in percentage, the amount made as profit for every one Dollar of equity capital invested . That is, how much return is earned (in %) on every dollar of equity capital invested.
It is calculated as follows:
ROE= (Profit/equity capital )× 100
Profit = EBIT - Tax = 145,000- (35%×145,000)=94,250
ROE = 94,250/600,000× 100 =15.7%
ROE = 15.7%
Assume that on September 1, Office Depot had an inventory that included a variety of calculators. The company uses a perpetual inventory system. During September, these transactions occurred.
Sept. 6 Purchased calculators from Dragoo Co. at a total cost of $1,680, terms n/30.
Sept. 9 Paid freight of $60 on calculators purchased from Dragoo Co.
Sept. 10 Returned calculators to Dragoo Co. for $58 credit because they did not meet specifications.
Sept. 12 Sold calculators costing $580 for $810 to Fryer Book Store, terms n/30.
Sept. 14 Granted credit of $45 to Fryer Book Store for the return of one calculator that was not ordered. The calculator costs $33.
Sept. 20 Sold calculators costing $570 for $740 to Heasley Card Shop, terms n/30.
Journalize the September transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answer:
Date Account Titles Debit Credit
Sept 6. Inventory $1,680
Accounts Payable $1,680
Sept 9. Inventory $60
Cash $60
Sept 10 Accounts Payable $58
Inventory $58
Sept 12 Accounts Receivable $810
Sales Revenues $810
Cost of Goods Sold $580
Inventory $580
Sept 14 Sales returns $45
Accounts Receivable $45
Inventory $33
Cost of Goods Sold $33
Sept 20 Accounts Receivable $740
Sales Revenues $740
Cost of Goods Sold $570
Inventory $570
The advantages of wireless networks include( select all that apply)
added security
decreased cost
increased flexibility
increased transmission distance
Answer:
increased flexibility
increased transmission distance
As a marketing manager what efforts you can put in place that can shape your companies brand to meet dramatic developments occurring in the marketplace everyday?
Answer:
Marketing is a broad subject with various techniques and tools. Thus, there can be a lot of methods through which a marketing manager can stabilize the operations of company to some extent. The main methods are as follows :
1. Use of social media :
Almost every second individual in our society is actively engaged in social media. Therefore, it is an efficient as well as relatively less expensive method of targeting the audience.
2. Knowing the audience :
One best way to hedge the market uncertainties is to completely understand the behavior of your customers. Thus, one can conduct research on different levels to understand customer preference.
The local Honda dealer, Finneas Auto, needs to decide how many light bulbs of a particular type to order for repairing Honda automobiles. This light bulb has a demand of 60 units per year and costs $20 each. The holding cost (also known as carrying charge) is 30 percent per year, and the ordering cost is $5 per order. a. What is the EOQ for this item?
Answer:
Economic order quantity (EOQ)= 10 units
Explanation:
Economic order quantity (EOQ) is the ideal order quantity a company should purchase to minimize inventory costs such as holding costs, shortage costs, and order costs.
Economic order quantity (EOQ)= √[(2*D*S)/H]
D= Demand in units
S= Order cost
H= Holding cost
In this case:
Demand= 60 units
S= $5
H= 20*0.3= $6
Economic order quantity (EOQ)= √[(2*60*5) / 6]
Economic order quantity (EOQ)= 10 units
Let corn denote per capita consumption of corn in bushels at the county level, let price be the price per bushel of corn, let income denote per capita county income, and let rainf all be inches of rainfall during the last corn-growing season. The following simultaneous equations model imposes the equilibrium condition that supply equals demand:
corn = α1 price + β1 income + u1
corn = α2 price + β2 rainfall + γ2 rainfall 2 + u2 .
Which is the supply equation, and which is the demand equation? Explain.
Answer:
corn = α1 price + β1 income + u1 <=== Demand equation
corn = α2 price + β2 rainfall + γ2 rainfall 2 + u2 <=== Supply equation.
Explanation:
Given:
corn = α1 price + β1 income + u1 …………………………………………. (1)
corn = α2 price + β2 rainfall + γ2 rainfall 2 + u2 …………………….. (2)
From the above, equation (1) is the demand equation while equation (2) the supply equation.
Equation (1) is the demand equation because parts of the factors determining the demand for a product are the price of the product itself and the income of the buyers. However, rainfall is NOT one of the factors determining the demand for a product.
Equation (2) is the supply equation because parts of the factors determining the supply a product are the price of the product itself and other factors such as rainfall for corn in this case. However, income of the buyers is NOT one of the factors determining the supply for a product.
Joan filed her individual income tax return 4½ months after it was due. She did not request an extension of time for filing. Along with her return, Joan remitted a check for $750, which was the balance of the taxes she owed with her return. Disregarding interest, calculate the total penalties that Joan will be required to pay, assuming the failure to file was not fraudulent
Answer:
$187.50
Explanation:
Calculation to determine the total penalties that she will be required to pay
Based on the information if she remitted a check for the amount of $750 the total penalties that she will be required to pay, if it was assumed that the failure to file was not fraudulent will be calculated as:
Total penalties=[$750*(5%*5)]
Total penalties=$750*0.25
Total penalties= $187.50
Therefore the total penalties that she will be required to pay is $187.50
Companies issue bonds, preferred stock, and common equity to raise capital to invest in capital budgeting projects. Capital is a necessary factor of production, and like any other factor, it has a cost. This cost is equal to the:_______
Answer:
Marginal investors
Explanation:
As we know that the company issue the bonds, preferred stock, common equity in order to raise the capital for investing in the capital budgeting process. Also the capital would be the necessary factor with respect to the production. So this cost would be equivalent to the marginal investor as the investor purchase the bonds, preferred stock or equity and in return they want the best returns
Blumen Textiles Corporation began April with a budget for 22,000 hours of production in the Weaving Department. The department has a full capacity of 29,000 hours under normal business conditions. The budgeted overhead at the planned volumes at the beginning of April was as follows: Variable overhead $50,600 Fixed overhead 34,800 Total $85,400 The actual factory overhead was $86,400 for April. The actual fixed factory overhead was as budgeted. During April, the Weaving Department had standard hours at actual production volume of 23,000 hours. Determine the variable factory overhead controllable variance and the fixed factory overhead volume variance. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Round your interim computations to the nearest cent, if required.
Answer:
A. 1300 Favorable
B. $7,200 UnFavorable
Explanation:
A. Calculation to determine the variable factory overhead controllable variance
First step is to calculate the Budgeted rate of variable overhead
Budgeted rate of variable overhead = $50,600/22,000
Budgeted rate of variable overhead= $2.3per hour
Second step is to calculate the Standard variable overhead for actual production
Standard variable overhead for actual production = 23,000 x $2.3
Standard variable overhead for actual production = $52,900
Now let calculate the Variable factory overhead controllable variance using this formula
Variable factory overhead controllable variance = Standard variable overhead - Actual variable overhead
Let plug in the formula
Variable factory overhead controllable variance= $52,900 - ($86,400 - 34,800)
Variable factory overhead controllable variance= 1300 Favorable
Therefore Variable factory overhead controllable variance is 1300 Favorable
B. Calculation to determine the fixed factory overhead volume variance.
First step is to calculate the Predetermined fixed overhead rate using this formula
Predetermined fixed overhead rate = 34,800/29,000
Predetermined fixed overhead rate = $1.20 per hour
Second step is to calculate the Fixed overhead applied
Using this formula
Fixed overhead applied = Standard hours x Standard rate
Let plug in the formula
Fixed overhead applied= 23,000 x $1.20
Fixed overhead applied= $27,600
Now let calculate the Fixed overhead volume variance using this formula
Fixed overhead volume variance = Fixed overhead applied - Budgeted fixed overhead
Let plug in the formula
Fixed overhead volume variance= $27,600 - 34,800
Fixed overhead volume variance= $7,200 UnFavorable
Therefore The Fixed overhead volume variance is $7,200 UnFavorable
Dilly Farm Supply is located in a small town in the rural west. Data regarding the store's operations follow: Sales are budgeted at $297,000 for November, $317,000 for December, and $217,000 for January. Collections are expected to be 70% in the month of sale and 30% in the month following the sale. The cost of goods sold is 75% of sales. The company desires to have an ending merchandise inventory at the end of each month equal to 80% of the next month's cost of goods sold. Payment for merchandise is made in the month following the purchase. Other monthly expenses to be paid in cash are $21,800. Monthly depreciation is $24,500. Ignore taxes. Balance Sheet October 31 Assets Cash$28,500 Accounts receivable 80,500 Merchandise inventory 178,200 Property, plant and equipment, net of $624,000 accumulated depreciation 1,011,000 Total assets$1,298,200 Liabilities and Stockholders' Equity Accounts payable$243,000 Common stock 747,000 Retained earnings 308,200 Total liabilities and stockholders' equity$1,298,200 Accounts payable at the end of December would be:
Answer:
$177,750
Explanation:
Calculation to determine what the Accounts payable at the end of December would be:
Accounts payable = (317,000*75%)+(217,000*75%*80%)-(317000*75%*80%)
Accounts payable =$237,750+$130,200-$190,200
Account payable = $177,750
Therefore the Accounts payable at the end of December would be:$177,750
Pendleton Company, a merchandising company, is developing its master budget for 2015. The income statement for 2014 is as follows:
Pendleton Company Income Statement For Year Ending December 31, 2014
Gross sales $3,000,000
Less:
Estimated uncollectible accounts (60,000)
Net sales 2,940,000
Cost of goods sold (1,650,000)
Gross profit 1,290,000
Operating expenses (including $25,000 depreciation) (750,000)
Net income $540,000
The following are management's goals and forecasts for 2015:
1.Selling prices will increase by 6 percent, and sales volume will increase by 4 percent.
2.The cost of merchandise will increase by 3 percent.
3.All operating expenses are fixed and are paid in the month incurred. Price increases for operating expenses will be 10 percent. The company uses straight-line depreciation.
4.The estimated uncollectibles are 2 percent of budgeted sales.
Prepare a budgeted functional income statement for 2015.
Answer:
$651,076
Explanation:
Preparation of a budgeted functional income statement for 2015.
PENDLETON COMPANY budgeted functional income statement for the year 2015.
Sales $3,307,200
($3,000,000*106%*104%)
Less: Estimated uncollectible accounts $66,144
($3,307,200*2%)
Net sales $3,241,056
($3,307,200-$66,144)
COGS $1,767,480
(1,650,000*104%*103%)
Gross Profit $1,473,576
($3,241,056-$1,767,480)
Operating expenses $822,500
[(725000*110%)+25000]
($750,000-$25,000=$725,000)
Net Income $651,076
($1,473,576-$822,500)
Therefore the budgeted functional income statement for 2015 is $651,076
Carlsbad Corporation's sales are expected to increase from $5 million in 2016 to $6 million in 2017, or by 20%. Its assets totaled $2 million at the end of 2016. Carlsbad is at full capacity, so its assets must grow in proportion to projected sales. At the end of 2016, current liabilities are $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accrued liabilities. Its profit margin is forecasted to be 3%, and the forecasted retention ratio is 30%. Use the AFN equation to forecast the additional funds Carlsbad will need for the coming year. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest cent.
Answer:
$246,000
Explanation:
Calculation to determine the additional funds Carlsbad will need for the coming year
First step is to calculate the 2020 retained earnings using this formula
2020 retained earnings= net income margin* sales* retention ratio
Let plug in the formula
2020 retained earnings= 3%*6000000*30%
2020 retained earnings= $54,000
Now let calculate the AFN using this formula
AFN = Increase in assets-Increase in spontaneous liabilities -Retained earnings
Let plug in the formula
Increase in assets =$2,000,000*20% =$400,000
Increase in spontaneous liabilities= (250000+250000)*20%=100000
AFN= 400000-100000-$54000
AFN =$246,000
Therefore the additional funds Carlsbad will need for the coming year is $246,000
The situations presented here are independent of each other.
For each situation, prepare the appropriate journal entry for the redemption of the bonds.
Flounder Corp. redeemed $124,000 face value, 10% bonds on April 30, 2022, at 105. The carrying value of the bonds at the redemption date was $111,972. The bonds pay annual interest, and the interest payment due on April 30, 2022, has been made and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Debit Credit Date Account Titles and Explanation Apr. 30
Shamrock, Inc. redeemed $162,000 face value, 12.5% bonds on June 30, 2022, at 99. The carrying value of the bonds at the redemption date was $174,960. The bonds pay annual interest, and the interest payment due on June 30, 2022, has been made and recorded. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Debit Credit Date Account Titles and Explanation Jun. 30
Answer and Explanation:
The journal entries are shown below:
On Apr. 30
Bonds payable $124,000
Loss on redemption of bonds( bal fig) $18,228
Discount on Bonds payable ($124,000 - $111,972) $12,028
Cash (124,000 × 1.05) $130,200
(Being redemption of bonds at 105 is recorded)
On Jun. 30
Bonds payable $162,000
Premium on Bonds payable ($174,960 - $162,000) $12,960
Gain on redemption of bonds ( bal fig) $14,580
Cash (162,000 × .99) $160,380
(Being redemption of bonds at 98 is recorded)
Mexico and Brazil, ran large trade deficits and borrowed heavily from abroad in the 1970s, but the inflow of financial capital did not boost productivity sufficiently, which meant that Select the correct answer below: the inflow of capital was beneficial to their economies these countries faced enormous troubles repaying the money borrowed these countries were prudent with their spending on imports none of the above
Answer:
these countries were prudent with their spending on imports
Explanation:
The trade deficit arise when the exports value would be lower than the imports value. Here the countries have to borrow so that they are able to pay back the amount so that the economy could be run in the smooth manner
The money that is borrowed from the rest of the world could increase the production so that the imports value could be increased
So according to the given situation, these countries would be prudent with their imports spending
Match the following functions with their descriptions.
A. It allows companies to organize and share information
B. It provides instantaneous tracking by containing identifying information
C. It provides complete visibility of product location Provides access to global markets, suppliers and distribution channels
D. It enables exchange of documents in a standard
Answer:
A. ERP
B. RFID
C. Barcodes
D. E-business
E. EDI
Explanation:
Here is the complete question :
Match the following functions with their descriptions.
(E-Business, EDI, Bar Codes, ERP, RFID)
A. It allows companies to organize and share information
B. It provides instantaneous tracking by containing identifying information
C. It provides complete visibility of product location
D. Provides access to global markets, suppliers and distribution channels
E. It enables exchange of documents in a standard format
Enterprise resource planning (ERP) is a software used to organise a business core processes
Electronic Data Interchange (EDI) is used to exchange business documents in a standardised format electronically
Types of EDI
Direct EDI EDI via value added networks (VANs)Web EDI Mobile EDIAdvantages of EDI
It increases business efficiency It reduces operating costsDisadvantages of EDI
Initial setup cost is usually quite highRadio-frequency identification (RFID) is used to identify and track tags that are attached to items
Barcodes are used as a means of identification of a product. They can identify the country a product is manufactured.
Electronic business (E-business) has accelerated the rate of global integration. It has increased the access to global markets, suppliers and distribution channels.
The actual cost of direct materials is $47.50 per pound. The standard cost per pound is $51.75. During the current period, 7,200 pounds were used in production. The standard quantity for actual units produced is 7,100 pounds. How much is the direct materials price variance? A. $30,600 favorable B. $30,600 unfavorable C. $30,175 favorable D. $30,175 unfavorable
Answer:
A. $30,600 favorable
Explanation:
The computation of the direct material price variance is shown below:
Direct Materials Price Variance = Actual quantity used × (Actual Cost - Standard Cost)
= 7,200 pounds ×($47.50 per pound - $51.75 per pound)
= $30,600 Favorable
Hence, the direct material price variance is $30,60 favorable
So the same should be considered