Isaac Inc. began operations in January 2018. For certain of its property sales, Isaac recognizes income in the period of sale for financial reporting purposes. However, for income tax purposes, Isaac recognizes income when it collects cash from the buyer's installment payments. In 2018, Isaac had $688 million in sales of this type. Scheduled collections for these sales are as follows:

2018 $ 60 million
2019 120 million
2020 120 million
2021 150 million
2022 150 million
$ 600 million

Assume that Isaac has a 30% income tax rate and that there were no other differences in income for financial statement and tax purposes. Ignoring operating expenses and additional sales in 2019, what deferred tax liability would Isaac report in its year-end 2019 balance sheet?

a. $126 million.
b. $54 million.
c. $144 million.
d. $180 million.

Answers

Answer 1

Answer:

a. $126 million.

Explanation:

The computation of the deferred tax liability is as follows

Particulars                      2018                    2019

                                               (in $ millions)

Income for

Finan reporting              600                     0

Income for income

tax purpose                   60                       120

Difference                     540                     120

Opening balance                                     162

of dtl

Dtl creation

(30% of 540)             162                          0

Reversal of dtl

(30% of 120)               0                           -36

Ending balance        162                         126


Related Questions

A review of Parson Corporation's accounting records found that at a volume of 90,000 units, the variable and fixed cost per unit amounted to $8 and $4, respectively. On the basis of this information, what amount of total cost would Parson anticipate at a volume of 85,000 units

Answers

Answer:

Total cost= $1,040,000

Explanation:

For 90,000 units:

Unitary variable cost= $8

Unitary fixed cost= $4

First, we need to calculate the total fixed cost:

Total fixed cost= 4*90,000= $360,000

Now, we can determine the total cost for 85,000 units:

Total cost= 85,000*8 + 360,000

Total cost= $1,040,000

Terry Dactal has compiled the financial information displayed below. Which of the following is Terry’s net worth? Salaries $72,400 Credit Card Balance $8,600 Cash on Hand $1,500 Utilities paid to date $8,450 Coin Collection $2,350 Jewelry value $8,500 Home value $335,000 Auto loan balance $14,300 Stock Portfolio value $18,500 1967 Ford Mustang value $40,900 Grocery Expenses $7,550 Checking account $3,200 Mortgage Balance $278,600 Property Taxes owed $1,750 Mortgage loan payments made $19,500 Student loan balance $26,200 New York vacation expenses paid $4,200 Auto loan payments paid $6,600 Income taxes paid-to-date $9,100 Clothing/entertainment expense $5,000 Interest earned $400 Insurance premiums paid $5,500

Answers

Answer: $80,500

Explanation:

A person's net worth is their Net assets less their liabilities.

Terry's assets include:

Cash on hand, Coin collection, Home value, Jewellery, stock portfolio, 1967 Ford Mustang, Checking account

Terry's liabilities include:

Credit card balance, Auto loan balance, Mortgage balance, Property taxes owed, Student loan balance.

Net worth is therefore:

= (1,500 + 2,350 + 335,000 + 8,500 + 18,500 + 40,900 + 3,200) - (8,600 + 14,300 + 278,600 + 1,750 + 26,200)

= $80,500

What is a commodity

Answers

Answer:

Something useful or valuable.

Explanation:

It’s a Noun. Meaning a raw material or primary agricultural product that can be bought & sold, such as copper or coffee.

• a useful or valuable thing, such as water or time

A machine distributor sells two models, basic and deluxe. The following information relates to its master budget.

 Basic       Deluxe
Sales (units) 8,000 2,000
Sales price per unit $8,000 $12,000
Variable costs per unit $6,400 $9,000

Actual sales were 7,000 basic models and 2,800 deluxe models. The actual sales prices were the same as the budgeted sales prices for both models.

Required:
a. What is the sales activity variance for the basic model?
b. Is the sales activity variance for the basic model favorable or unfavorable? What is the sales activity variance for the deluxe model?
c. What is the sales mix variance for the basic model?
d. What is the sales quantity variance for the basic model?
e. What is the sales mix variance for the deluxe model based?
f. What is the sales quantity variance for the deluxe model?

Answers

Answer:

A. $1,600,000

B. Unfavorable

$2,400,000

C. $1,344,000

D. $256,000

E. $2,520,000

F. $120,000

Explanation:

a. Calculation for What is the sales activity variance for the basic model

Sales activity variance=(7,000 - 8,000) *($8,000 - $6,400)

Sales activity variance=$1,000*$600

Sales activity variance= $1,600,000

Therefore Sales activity variance for the basic model will be $1,600,000

b. The sales activity variance for the basic model is UNFAVORABLE reason been that the sales amount is lesser than the budgeted amount

Calculation for What is the sales activity variance for the deluxe model

Sales activity variance=(2,800 - 2,000) *($12,000 - $9,000)

Sales activity variance=800*3,000

Sales activity variance= $2,400,000

Therefore the sales activity variance for the deluxe model will be $2,400,000

c. Calculation for What is the sales mix variance for the basic model

Sales mix variance=[7,000 - 8,000/10,000 *(7,000 + 2,800)] *($8,000 - $6,400)

Sales mix variance=[7,000 - 80% *(7,000 + 2,800)] *($8,000 - $6,400)

Sales mix variance=[7,000 - 80% *(9,800)] *($1,600)

Sales mix variance=[7,000 -7,840 ] *($1,600)

Sales mix variance=840*$1,600

Sales mix variance= $1,344,000

Therefore the sales mix variance for the basic model will be $1,344,000

d. Calculation for What is the sales quantity variance for the basic model

Sales quantity variance=(9,800 - 10,000) x (8,000/10,000) x ($8,000 - $6,400)

Sales quantity variance= $256,000

Therefore the sales quantity variance for the basic model will be $256,000

e. Calculation for What is the sales mix variance for the deluxe model based

Sales mix variance=[2,800 - 2,000/10,000 *(7,000 + 2,800)] *($12,000 - $9,000)

Sales mix variance=[2,800 - 20% *(7,000 + 2,800)] *($12,000 - $9,000)

Sales mix variance=[2,800 - 20% *(9,800)] *($3,000)

Sales mix variance=[2,800 -1,960 ] *($3,000)

Sales mix variance=840*$3,000

Sales mix variance= $2,520,000

Therefore the sales mix variance for the deluxe model based will be $2,520,000

f. Calculation for What is the sales quantity variance for the deluxe model

Sales quantity variance=(9,800 - 10,000) x (2,000/10,000) x ($12,000 - $9,000)

Sales quantity variance= $120,000

Therefore the sales quantity variance for the deluxe model will be $120,000

The question is about variances of a machine distributor.

A Sales Activity Variance Basic

8000 - 7000 = 1000 * $8000

= $8,000,000

B. Unfavorable

Sales Activity Variance Deluxe

2000 - 2800 = 800 * $12000

=9,600,000

Favorable  

Sales Mix Variance Basic

$8000 - $6400 = $1600

1000 * $1600 = $1,600,000

Sales Mix Variance Deluxe

$12000 - $9000 = $3000

800 * $3000 = $2,400,000

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22) One year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1. Since that time the rate of inflation in the U.S. has been 4% greater than that in Canada. Based on the theory of Relative PPP, the current spot exchange rate of U.S. dollars for Canadian dollars should be approximately ________. A) $0.96/C$ B) $1/C$1 C) $1.04/C$1 D) relative PPP provides no guide for this type of question

Answers

Answer: C) $1.04/C$1

Explanation:

We define the inflation rate in a certain country as

a rate at which the value of a currency is falling as a result the usual level of prices for goods and services keeps rising.

1 year ago the spot rate of U.S. dollars for Canadian dollars was $1/C$1.

That time inflation rate in US was 4% greater than in Canada.

So, the  current spot exchange rate of U.S. dollars for Canadian dollars :

($1 + 4% of $1)/C$1

=($1+$0.04)/ C$1

=$1.04 / C$1

Hence, the correct option is C) $1.04/C$1

Ricky’s Piano Rebuilding Company has been operating for one year. On January 1, at the start of its second year, its income statement accounts had zero balances and its balance sheet account balances were as follows: Cash $ 6,800 Accounts Payable $ 12,600 Accounts Receivable 32,750 Deferred Revenue (deposits) 3,250 Supplies 1,850 Notes Payable (long-term) 45,500 Equipment 14,500 Common Stock 7,500 Land 10,050 Retained Earnings 17,300 Building 20,200 Following are the January transactions: Received a $870 deposit from a customer who wanted her piano rebuilt in February. Rented a part of the building to a bicycle repair shop; $355 rent received for January. Delivered five rebuilt pianos to customers who paid $12,775 in cash. Delivered two rebuilt pianos to customers for $6,400 charged on account. Received $5,300 from customers as payment on their accounts. Received an electric and gas utility bill for $675 for January services to be paid in February. Ordered $945 in supplies. Paid $1,750 on account in January. Paid $11,000 in wages to employees in January for work done this month. Received and paid cash for the supplies in (g). Post the journal entries to the T-accounts. Show the unadjusted beginning and ending balances in the T-accounts

Answers

Answer:

Ricky’s Piano Rebuilding Company

Cash

Account Titles              Debit     Credit

Beginning Balance    $ 6,800

Deferred Revenue          870

Rent Revenue                 355

Service Revenue        12,775

Accounts Receivable  5,300

Accounts Payable                        $1,750

Wages Expense                           11,000

Balance                                     $13,350

Totals                       $26,100   $26,100

Accounts Receivable

Account Titles              Debit     Credit

Beginning Balance   $32,750

Service Revenue          6,400

Cash                                           $5,300

Balance                                    $33,850

Totals                       $39,150   $39,150

Supplies

Account Titles              Debit     Credit

Beginning Balance    $1,850

Equipment

Account Titles              Debit     Credit

Beginning Balance   $14,500

Building

Account Titles              Debit     Credit

Beginning Balance   $20,200

Land

Account Titles              Debit     Credit

Beginning Balance   $10,050

Utilities Expense

Account Titles              Debit     Credit

Accounts Payable        $675

Wages Expense

Account Titles              Debit     Credit

Cash                             $11,000

Accounts Payable

Account Titles              Debit     Credit

Beginning Balance                     $12,600

Cash                            $1,750

Balance                       10,850

Totals                        $12,600   $12,600

Deferred Revenue (deposits)

Account Titles              Debit     Credit

Beginning Balance                     $3,250

Cash                                                 870

Balance                       $4,120

Totals                          $4,120    $4,120

Rent Revenue

Account Titles              Debit     Credit

Cash                                              $355

Service Revenue

Account Titles              Debit     Credit

Cash                                           $12,775

Accounts Receivable                   6,400

Balance                      $19,175

Totals                         $19,175   $19,175

Notes Payable (long-term)

Account Titles              Debit     Credit

Beginning Balance                     $45,500

Common Stock

Account Titles              Debit     Credit

Beginning Balance                     $7,500

Retained Earnings

Account Titles              Debit     Credit

Beginning Balance                    $17,300

Explanation:

a) Data and Calculations:

Beginning Balance Sheet

As of January 1, Year 2:

Cash                          $ 6,800

Accounts Receivable 32,750

Supplies                        1,850

Equipment                  14,500

Building                     20,200

Land                           10,050  

Accounts Payable                  $ 12,600

Deferred Revenue (deposits)    3,250

Notes Payable (long-term)      45,500

Common Stock                          7,500

Retained Earnings                    17,300

Totals                     $86,150   $86,150

The journal entries to record the January transactions for Ricky's Piano Rebuilding Company are as follows. The unadjusted beginning and ending balances for the accounts are also shown in Sheet 1.

A journal entry is used to record a business transaction in the accounting records of a business.

A journal entry is usually recorded in the general ledger; alternatively, it may be recorded in a subsidiary ledger that is then summarized and rolled forward into the general ledger. The general ledger is then used to create financial statements for the business.

Here are the journal entries to record the January transactions for Ricky's Piano Rebuilding Company:

Attached is sheet 1.

Unadjusted Beginning and Ending Balances are shown in Sheet 2 attached.

Ending Balances:

The ending balance is the net residual balance in an account. It is usually measured at the end of a reporting period, as part of the closing process. An ending balance is derived by adding up the transaction totals in an account and then adding this total to the beginning balance.

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Below are several transactions that took place in Seneca Company last year: Paid suppliers for inventory purchases. Bought equipment for cash. Paid cash to repurchase its own stock. Collected cash from customers. Paid wages to employees. Equipment was sold for cash. Common stock was sold for cash to investors. Cash dividends were declared and paid. A long-term loan was made to a supplier. Income taxes were paid to the government. Interest was paid to a lender. Bonds were retired by paying the principal amount due. Required: Indicate how each of the above transaction would be classified on a statement of cash flows. As appropriate, place an X in the Operating, Investing, or Financing column. Also, place an X in the Cash Inflow or Cash Outflow column.

Answers

Answer:

Note: Operating = A, Investing = B, Financing = C,  Cash Inflow column = D, Cash Outflow column = E

                                                                A          B         C         D          E

a. Paid suppliers for inventory               X                                             X

purchases.

b. Bought equipment for cash.                           X                                 X

c. Paid cash to repurchase its                                         X                    X

own stock.

d. Collected cash from customers.         X                                  X

e. Paid wages to employees.                  X                                             X

f. Equipment was sold for cash.                          X                      X

g. Common stock was sold for                                        X          X

cash to investors.

h. Cash dividends were declared                                    X                     X

and paid.

i. A long-term loan was made to                                       X         X        

a supplier.

j. Income taxes were paid to                    X                                              X

the government.

k. Interest was paid to a lender.               X                                              X

l. Bonds were retired by paying                                        X                      X

the principal amount due

1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $28,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.

Answers

Answer:

1. a. Allocated prices

First add the market values = 444,150 + 255,150 + 56,700 + 189,000 = $945,0

00

Building allocated price                                     Land allocated price

= 444,150/ 945,000 * 830,000                        = 255,150/945,000 * 830,000

= $‭390,100‬                                                           = $224,100

Land improvement allocated price                  Four vehicles allocate price

= 56,700/945,000 * 830,000                          = 189,000/945,000 * 830,000

= $49,800                                                        = $166,000

b. Journal entry

Date                 Account Details                             Debit                   Credit

Jan. 1, 2017      Building                                       $390,100

                        Land                                            $224,100

                        Land improvement                     $49,800

                        Vehicles                                      $166,000

                        Cash                                                                         $830,000

2. Depreciation on building using straight-line method.

= (390,100 - 28,000) / 15

= $‭24,140‬

3. Depreciation on land improvements using double declining method.

First do straight line:

= 49,800/ 5 years

= $9,960

Straight line rate of depreciation = 9,960/49,800 = 20%

Double declining will be twice that rate = 40%

Depreciation = 40% * 49,800

= $‭19,920‬

Use the following items to prepare a balance sheet and a cash flow statement. Determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. Balance Sheet and Cash Flows Rent for the month$1,240 Monthly take-home salary$3,420 Cash in checking account 700 Savings account balance 2,110 Spending for food 820 Balance of educational loan 2,930 Current value of automobile 8,590 Telephone bill paid for month 69 Credit card balance 236 Loan payment 177 Auto insurance 239 Household possessions 3,680 Stereo equipment 3,240 Payment for electricity 110 Lunches/parking at work 271 Donations 169 Home computer 1,870 Value of stock investment 1,750 Clothing purchase 148 Restaurant spending 177

Answers

Answer:

1. Balance Sheet:

Assets:

Cash in checking account       $700

Savings account balance         2,110

Current value of automobile 8,590

Home computer                      1,870

Value of stock investment     1,750

Household possessions       3,680

Stereo equipment                 3,240   $21,940

Liabilities:

Balance of educational loan 2,930

Credit card balance                 236    $3,166

Net Worth                                          $18,774

2. Cash Flows:

Cash Inflows:

Monthly take-home salary $3,420

Outflows:

Rent for the month            $1,240

Spending for food                  820

Telephone bill paid for month 69

Auto insurance                       239

Payment for electricity             110

Lunches/parking at work        271

Donations                                169

Clothing purchase                  148

Restaurant spending              177

Loan payment                         177

Total cash outflows         $3,420

Explanation:

Monthly take-home salary $3,420

Rent for the month $1,240

Spending for food 820

Telephone bill paid for month 69

Auto insurance 239

Payment for electricity 110

Lunches/parking at work 271

Donations 169

Clothing purchase 148

Restaurant spending 177

Loan payment 177

Assets:

Cash in checking account 700

Savings account balance 2,110

Current value of automobile 8,590

Home computer 1,870

Value of stock investment 1,750

Household possessions 3,680

Stereo equipment 3,240

Liabilities:

Balance of educational loan 2,930

Credit card balance 236

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 6 workers, who together produced an average of 100 carts per hour. Workers receive $11 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $12 per hour, while output increased by 4 carts per hour. a. Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 3 decimal places.)

Answers

Answer:

A. Labor productivity before=16 cart per workers-hour

Labor productivity After=26 cart per workers-hour

B. Multifactor productivity Before=0.94 carts per hour

Multifactor productivity before=0.94 carts per hour

Explanation:

A. Computation of labor productivity under each system

Labor productivity Before=100 carts per hour/6 workers

Labor productivity Before=16 cart per workers-hour

Labor productivity After=(100 carts per hour+4 carts per hour)/4 workers

Labor productivity After=(104carts per hour /4 workers

Labor productivity After=26 cart per workers-hour

B. Computation of the multifactor productivity under each system.

Multifactor productivity Before=100 carts per hour/(6 workers*$11 per hour)+$40 per hour

Multifactor productivity Before=100 carts per hour/($66 per hour+$40 per hour)

Multifactor productivity Before=100 carts per hour/$106 per hour

Multifactor productivity Before=0.94 carts per hour

Multifactor productivity before=(100carts per hour + 4carts per hour)/(4 workers * $11 per hour$)+($40 per hour+12 per hour)

Multifactor productivity before=(104carts per hour /(4 workers * $11 per hour$)+($40 per hour+12 per hour)

Multifactor productivity before=(104carts per hour /($66 per hour+$52 per hour)

Multifactor productivity before=(104carts per hour /118per hour

Multifactor productivity before=0.94 carts per hour

_____ is a method of attempting to settle labor disputes in when a specialist from the federal government helps management and the union focus on the issues and acts as a communication channel through which management and the union can send messages and share information with each other.

Answers

Answer: e. Conciliation

Explanation:

This process is known as Conciliation and it falls under the purview of the Federal Mediation and Conciliation Service of the United States.

Conciliation stands out from Mediation because with mediation, the third party that is helping both sides negotiate might not be trained but with Conciliation, the third part is a specialist in the process and thus will be more effective in dealing with the dispute.

Paul Martin had worked for 12 years for the department of transportation when he applied for a promotion to dispatcher. Martin scored 75 on an interview test. Betty Palmer, another candidate, scored 73 and got the job. Martin sued the county for reverse discrimination. The county said that both Martin and Palmer were qualified and that Palmer had gotten the job as part of a voluntary affirmative action plan designed to achieve a work force that reflected the race and gender composition of the county. The county pointed out that none of 238 skilled craft workers jobs in the county were help by women. Answer the questions below around this case.

a. What issue(s) must the court decide in the case (for example, racial harassment)?
b. If you were the judge, how would you rule? Explain.
c. Describe two ways to help ensure workforce planning and employment are compliant.

Answers

Answer:

a.)

The court has to hear the arguments from both side of the party , analyze the arguments that has imposed by the party on each other. And after analyzing, the court decide the judgement.

b.)

If I were the judge , then i would not consider the case under racial harassment .

Because the country has an argument that Palmer had gotten the job as part of a voluntary affirmative action plan designed to achieve a work force that reflected the race and gender composition of the county.

Also , we know others law that says about equal employment has to give to the person without any discrimination.

c.)

To lower down the illegal occupation activities , proper plan of the workspace is must.

Steps required for workspace planning -

1. Objective of Business

2. Current workforce

3. Workers Necessity

4. Gap Minimization

5. Action plan review.

Explanation:

As given,

Paul Martin had worked for 12 years for the department of transportation when he applied for a promotion to dispatcher.

Martin scored 75 on an interview test.

Betty Palmer, another candidate, scored 73 and got the job.

a.)

The court has to hear the arguments from both side of the party , analyze the arguments that has imposed by the party on each other. And after analyzing, the court decide the judgement.

b.)

If I were the judge , then i would not consider the case under racial harassment .

Because the country has an argument that Palmer had gotten the job as part of a voluntary affirmative action plan designed to achieve a work force that reflected the race and gender composition of the county.

Also , we know others law that says about equal employment has to give to the person without any discrimination.

c.)

To lower down the illegal occupation activities , proper plan of the workspace is must.

Steps required for workspace planning -

1. Objective of Business

2. Current workforce

3. Workers Necessity

4. Gap Minimization

5. Action plan review.

On November​ 1, 2018, a company using accrual​ accounting, pays for a television advertising campaign. Commercials will run evenly over six months beginning on November​ 1, 2018. How much Advertising Expense will be reported on an income statement prepared for the year ended December​ 31, 2018?

Answers

Answer:

the advertising expense reported is $340,000

Explanation:

The computation of the advertising expense reported is as follows:

= Amount to be paid × number of months ÷ given months

= $1,020,000 × 2 months ÷ 6 months

= $340,000

Here the number of months would be 2 that is taken from Nov 1, 2018 to December 31,2018

Hence, the advertising expense reported is $340,000

On May 1, 2020, Sheffield Company enters into a contract to transfer a product to Eric Company on September 30, 2020. It is agreed that Eric will pay the full price of $24,040 in advance on June 15, 2020. Eric pays on June 15, 2020, and Sheffield delivers the product on September 30, 2020. Prepare the journal entries required for Sheffield in 2020.

Answers

Answer: Please see answer in explanation column

Explanation:

Date              Account titles and explanation           Debit                Credit

May 1st, 2020                 NO ENTRY                                   NO ENTRY

2. Journal to record payment for product on June 15

Date              Account titles and explanation           Debit                Credit

June 15, 2020                  Cash                                  $24,040

Unearned Sales Revenue                                                                  $24,040

3. Journal to record delivery of  product on  September 30

Date              Account titles and explanation           Debit                Credit

September 30, 2020    Unearned Sales Revenue        $24,040

                                           Sales Revenue                                            $24,040      

During 2021, Phil Rupp presents the following transactions:_______.
Bank loan proceeds received (to purchase a new car) of $15,000
Wages of $56,821
Contribution to a Roth IRA of $5,000
Pass-through loss from a partnership of $7,637
Interest income earned of $43
Assuming Phil Rupp files as single with one valid dependent in 2017, his gross income is _______, while his adjusted gross income is ______.

Answers

Answer:

Assuming Phil Rupp files as single with one valid dependent in 2017, his gross income is __$56,864__, while his adjusted gross income is __$44,227_.

Explanation:

a) Data and Calculations:

Bank loan proceeds received (to purchase a new car) of $15,000

Wages of $56,821

Contribution to a Roth IRA of $5,000

Pass-through loss from a partnership of $7,637

Interest income earned of $43

Gross income:

Wages of $56,821

Interest income earned of $43

Total gross income = $56,864

Adjusted gross income:

Gross income of $56,864

less:

Contribution to a Roth IRA of $5,000

Pass-through loss from a partnership of $7,637 (less than 20% of $56,864)

Adjusted gross income = $44,227 ($56,864 - $5,000 - $7,637)

b) With Pass-through each partner's share of business income, gain, deduction, or loss is passed through to the owner and reported on the owner's personal federal income tax return for the tax year.  According to the Tax Cuts and Jobs Act of 2017, individual business owners are entitled to up to 20% of their income as pass-through losses.

Murphy Company, a cash-basis, calendar-year taxpayer, received a call on December 28, year 1, from a client stating that a check for $9,000 as payment in full for their services can be picked up at their offices, two blocks away, any weekday between 1:00 and 6:00 P.M. Murphy does not pick up the check until January 3, year 2. In which year does Murphy recognize the income?

Answers

Answer:

Murphy Company

The year in which Murphy recognizes the income is year 2.

Explanation:

As a cash basis taxpayer, Murphy Company reports income and deductions in the year that they are actually paid or received.  Similarly, as a cash basis taxpayer, Murphy Company deducts expenses in the year the expenses are paid off, which is not necessarily the year they were incurred.  The income for services of $9,000 rendered to a customer, for which payment was received on January 3, year 2, will be recognized in year 2 and not in year 1 when the services were performed.

Identifying type and normal balances of accounts Lo C4 For each of the following (1) identify the type of account as an asset, liability equity, revenue, or expense; (2) identify the normal balance of the account, and (3) select debit (Dr or credit (Cr) to identify the kind of entry that would increase the account balance.
Account Type of Account Normal Balance Increase (Dr. or C
a. Land
b. Cash
c. Legal Expense
d. Prepaid Insurance
e. Accounts Receivable
f. Dividends
g. License Fee Revenue
h. Uneaned Revenue
i. Fees Earned
j. Equipment
k. Notes Payable
l. Common Stock

Answers

Answer:

a. Land  -  Asset, Debit, Dr

b. Cash  - Asset, Debit, Dr

c. Legal Expense  - Expense, Debit, Dr

d. Prepaid Insurance  - Asset, Debit, Dr

e. Accounts Receivable  - Asset, Debit, Dr

f. Dividends  - Equity, Credit, Cr

g. License Fee Revenue  - Revenue, Credit, Cr

h. Uneaned Revenue  - Liability, Credit, Cr

i. Fees Earned  - Revenue, Credit, Cr

j. Equipment  - Asset, Debit, Dr

k. Notes Payable  - Liability, Credit, Cr

l. Common Stock - Equity, Credit, Cr

Explanation:

Assets, liabilities and equity are the elements of a balance sheet. These 3 elements form the accounting equation which is given as

Assets = Liabilities + Equity

Assets usually have a debit balance while equity and liabilities are usually credit balances. Expenses like assets usually have a debit balance while revenue usually has a credit balance.

Paying higher wages encourages workers to be more productive. Higher wages cause workers to shirk more of their responsibilities. Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity. Paying higher wages tends to reduce the average experience level of a firm's workers.

Answers

Answer:

The answer is "Choice First and third"

Explanation:

Please find the complete question in the attached file.

The higher wages will improve the productivity of workers in various ways, that are salary with the number of workers exceeds the cost of labor, in the fewer countries. It can be associated with both the poor diet and over-market wages in these environments can enable the workers of the company to remain fit and efficient. The fewer employees may decide to seek other employment opportunities when a business pays salaries just above the current market price. This elimination of employee sales will minimize company training costs because new employees need to be trained.

Jia is considering whether to go out to dinner at a restaurant with her friend. The meal is expected to cost $40, Jia typically leaves a 20% tip, and an Uber will cost $5 each way. Jia values the restaurant meal at $25. Jia enjoys her friend s company and is willing to pay $30 just to spend an evening with her. If Jia does not go out to the restaurant, she will eat at home, using groceries that cost her $8.
a. Calculate Jia's cost associated with going out to dinner with her friend.
b. Calculate Jia's benefits associated with going out to dinner with her friend.

Answers

Answer:

a. Jia's cost associated with going out to dinner with her friend

= $58

b. Jia's benefit associated with going out to dinner with her friend

= $47

Explanation:

a) Data and Calculations:

Expected cost of meal =  $40

Tips (20%)                             8

Transport to & from =         10

Total cost of going out = $58

Benefits with going out:

Value of restaurant meal =     $25

Amount Jia is willing to pay = $30

Less of eating at home            ($8)

Total benefits with going out $47

The following units of an inventory item were available for sale during the year. Use this information to answer the following questions.

Beginning inventory 10 units at $55
First purchase 25 units at $60
Second purchase 30 units at $65
Third purchase 15 units at $70

The firm uses the periodic inventory system. During the year, 60 units of the item were sold.

The value of ending inventory using FIFO is:________

a. $1,350
b. $1,150
c. $1,375
d. $1,250

Answers

Answer:

The value of ending inventory using FIFO is $1,375

Explanation:

Under FIFO the items of inventory purchases earlier will be sold first and the items purchased later will be sold at last.

First, we need to calculate the total available inventory units

Numbers of units available to sale = Beginning Inventory + First purchase  + Second purchase + Third purchase  = 10 units + 25 units + 30 units + 15 units = 80 units

Now 60 units out of 80 are sold the remaining 20 units ( 80 units - 60 units ) will be in the ending inventory.

As per FIFO 20 units will be values as per the last 20 units purchases which will be as follow

Ending Invetory = ( 15 units x $70 ) + ( (20-15) units x $65 ) = $1,375

A motive is always required for the suspect to be criminally liable

Answers

No, lots of cases have no motives.

Four different corporations, Amber, Blue, Coral, and Daffodil, show the same balance sheet data at at the beginning and end of a year. These data, exclusive of the amount of stockholders' equity, arere summarized as follows:
Total Assets Total Liabilities
Beginning of the year $1,220,000 $990,000
End of the year 1,730,000 1,150,000
On the basis of the preceding data and the following additional information for the year, determine the net income (or loss) of each company for the year. (First determine the amount of increase or decrease in stockholders' equity during the year).
Amber: No additional common stock was issued and no dividends were paid.
Blue: No additional common stock was issued, but dividends of $60,000 were paid.
Coral: Additional common stock of $140,000 was issued, but no dividends were paid.
Daffodil: Additional common stock of $140,000 was issued and dividends of $60,000 were paid.

Answers

Answer:

Amber

Change in stockholders' equity = $580,000 - $230,000 = $350,000

No additional shares issued, so net income = $350,000

Blue

Change in stockholders' equity = $580,000 - $230,000 = $350,000

No additional shares issued, but dividends paid for $60,000, so net income = $410,000

Coral

Change in stockholders' equity = $580,000 - $230,000 = $350,000

Additional shares issued for $140,000, so net income = $210,000

Daffodil

Change in stockholders' equity = $580,000 - $230,000 = $350,000

Additional shares issued for $140,000, dividends paid for $60,000, so net income = $270,000

Miguel Alvarez in the accounting department at Baumer Company has provided the following information:

Cost per Unit Cost per Period
Direct materials $6.25
Direct labor $3.20
Variable manufacturing overhead $1.20
Fixed manufacturing overhead $13,200
Sales commissions $1.20
Variable administrative expense $0.50
Fixed selling and administrative expense $3,300

The incremental manufacturing cost that the company will incur if it increases production from 5,500 to 5,501 units is closest to:_____

Answers

The incremental manufacturing cost that the company will incur if it increases production from 5,500 to 5,501 units is closest to $10.65.

Here, the fixed cost would not be relevant for the computation.

Incremental manufacturing cost when production level changed is

= Direct material cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit

= $6.25 + $3.20 + $1.20

= $10.65

In conclusion, the incremental manufacturing cost that the company will incur if it increases production from 5,500 to 5,501 units is closest to $10.65.

Read more about manufacturing cost

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Manufacturing cost data for Copa Company are presented below. Indicate the missing amount for each letter (a) through (i).

Case A Case B Case C
Direct materials used $(a) $73,230 $133,500
Direct labor 59,750 90,370 (g)
Manufacturing overhead 50,000 84,670 104,900
Total manufacturing costs 198,600 (d) 257,500
Work in process 1/1/20 (b) 19,770 (h)
Total cost of work in process 224,960 (e) 339,300
Work in process 12/31/20 (c) 16,940 72,760
Cost of goods manufactured 189,300 (f) (i)

Answers

Answer:

(a) $88,850

(b) $26,360

(c) $35,660

(d) $248,270

(e) $268,040

(f) $251,100

(g) $19,100

(h) $81,800

(i) $412,060

Explanation:

$59,750 + $50,000 - $198,600 = $88,850

$198,600 - $224,960 = $26,360

$224,960 - $189,300 = $35,660

$73,230 + $90,370 + $84,670 = $248,270

$248,270 + $19,770 = $268,040

$268,040 - $16,940 = $251,100

$133,500 + $104,900 - $257,500 = $19,100

$257,500 - $339,300 = $81,800

$339,300 + $72,760 = $412,060

The cost of goods manufactured calculates the total production cost of manufactured goods in a particular period.

Manufacturing cost data for Copa Company

(A)Direct materials used= $59,750 + $50,000 - $198,600 = $88,850

(B)Work in process 1/1/20 =$198,600 - $224,960 = $26,360

(C)Work in process 12/31/20=$224,960 - $189,300 = $35,660

(D)Total manufacturing costs=$73,230 + $90,370 + $84,670 = $248,270

(E)Total cost of work in process =$248,270 + $19,770 = $268,040

(F)Cost of goods manufactured=$268,040 - $16,940 = $251,100

(G)Direct labor=$133,500 + $104,900 - $257,500 = $19,100

(H)Work in process 1/1/20 =$257,500 - $339,300 = $81,800

(I)Cost of goods manufactured=$339,300 + $72,760 = $412,060

Learn more about direct labor, refer to the link:

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Joshua loans his son, Seth, $100,000 interest free for five years. Seth uses the money for a down payment on his home. Assume that the applicable federal interest rate is 4 percent. What are the tax consequences of this loan to Joshua and to Seth? How would your answer change if Seth uses the money to invest in corporate bonds paying 8 percent annual interest? [LO

Answers

Answer:

What are the tax consequences of this loan to Joshua and to Seth?

The IRS requires that any loans must charge a minimum interest rate, and in this case, since Joshua is not charging any interest to his son, the IRS will consider the minimum interest rate as a gift and will tax it that way. Since Joshua can make gifts for $15,000 per year, if the threshold is already passed, the IRS will consider $100,000 x 4% = $4,000 as taxable gifts.

How would your answer change if Seth uses the money to invest in corporate bonds paying 8 percent annual interest?

The answer shouldn't change since Joshua is the one that can be taxed here. Seth cannot deduct any interest expense or gift tax expense either.

Although GDP is a reasonably good measure of a nation's output, it does not necessarily include all transactions and production for that nation. Which of the following scenarios are either not accounted for or measured inaccurately by either the income or the expenditure methods of calculating GDP for the United States?

a. The costs of overfishing and other overly intensive uses of resources
b. Federal government paychecks to soldiers
c. The value Of babysitting services, when the babysitter is paid in cash and the transaction isn't reported to the government
d. The variety of goods available to consumers

When a U.S. company purchases and imports wood from Brazil to use to build new houses within the United States, this purchase increases the ________ component of GDP while also ____________ net exports by the same amount. Therefore, the purchase of wood from Brazil causes_________ in US GDP.

Answers

Answer:

a, c , d

investment

decreasing

no effect

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Net export = exports – imports

When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.  

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

6. Externalities

Investment spending by businesses includes purchases made by businesses. So, investment spending increases. Net export decreases because import is a negative function of GDP. The increase and decrease cancel each other out and there would be no change in GDP

On January 1, year 8, Derek Co.’s defined benefit pension plan had plan assets with a fair value of $750,000, and a projected benefit obligation of $875,000. In addition: Actual and expected return on plan assets – 7% Interest cost – 9% Service costs - $24,000 Unamortized prior service cost - $120,000 Employer contributions to the plan - $45,000 Distributions to employees from the plan - $60,000 Unamortized prior service cost is being amortized over the expected remaining service lives of covered employees, which consists of a total of 9 employees: 2 employees are each expected to have 9 years remaining 3 employees are each expected to have 6 years remaining 4 employees are each expected to have 1 year remaining How much amortization of prior service cost will be included in Derek Co.’s pension expense for year 8?

Answers

Answer: $27,000

Explanation:

Amortization of prior cost = (No. of employees / Total number of years left) * Unamortized prior service cost

Total number of years left:

2 employees are each expected to have 9 years remaining = 2 * 9

= 18 years

3 employees are each expected to have 6 years remaining = 3 * 6

= 18 years

4 employees are each expected to have 1 year remaining = 4 * 1

= 4 years

Total number of years = 18 + 18 + 4

= 40 years

Amortization of prior cost = (9 / 40) * 120,000

= $27,000

A company has the following cash transactions for the period.
Accounts Amounts Cash
received from sale of products to customers 31,500
Çash received from the bank for long-term loan 36,500
Cash paid to purchase factory equipment (41,500)
Cash paid to merchandise suppliers (10,300)
Cash received from the sale of an unused warehouse 11,300
Cash paid to workers (22,300)
Cash paid for advertisement (2,300)
Cash received for sale of services to customers 21,500
Cash paid for dividends to stockholders (4,300)
Assume the balance of cash at the beginning of the period is $3,300.
Required: 1.
Calculate the ending balance of cash. Ending balance

Answers

Answer:

oha lan buney yaa hepsi english

Margot starts a new business and contributes $20,000 in cash; she also borrows $25,000 from her local bank. She utilizes the cash to purchase supplies for $5,000 and a computer system for $10,000. After these transactions, the total claims to the company's total resources are:

Answers

Answer:

$45,000

Explanation:

Given the above information, total resources is computed as;

Total resources = Cash + Purchase supplies + Equipment computer system

But

Cash = $20,000 + $25,000 - $5,000 - $10,000 = $30,000

Total resources = $30,000 + $5,000 + $10,000 = $45,000

The purpose of a SWOT analysis is to ___.
a. evaluate the marketing strategy that a company has been using.
b. determine the best strategy for the company.
c. compare the company's advantages with that of its competitors.
d. identify important company and environmental factors.
e. formulate goals and objectives for a company.

Answers

Answer: e. formulate goals and objectives for a company.

Explanation:

The SWOT analysis helps in decisions making in businesses. It helps in changing the needs of the organization. It helps the organization to build a plan so as to meet goals and improve the performances, and it also helps in keeping the relevancy in businesses in terms of decisions. It helps in analyzing the deep strengths, threats and weaknesses of the organization. It helps in promoting the overall growth, production, and services. It targets the market competition to develop necessary strategy.

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