Answer:
1. Particulars Amount
Reported net income of Little $70,000
Multiply: Ownership share of Big Co 60%
Investment income (from Little) $42,000
2. Particulars Amount
Reported net income of Little $70,000
Multiply: non-controlling share (100%-60%) 40%
Income to the NC Interest $28,000
3. Particulars Amount
Investment in Little at beginning $300,000
Investment income (from Little) $42,000
Less: Dividends received (20000*60%) $(12,000)
Investment in Little at end of year balance $330,000
4. Particulars Amount
NC Interest at beginning $200,000
Income to the NC Interest $28,000
Less: Dividends paid to NC Interest (20000*40%) $(8,000)
NC Interest reported on the 12/31/22 $220,000
Consolidated Balance Sheet
Limited Liability Companies (LLCs) are gaining in popularity over sub-chapter S corporations because:_____.
A. LLCs offer better liability protection to their members.
B. Sub-chapter S corporations are being phased out by the government which is promoting.
C. LLCs as they requires less paperwork on the part of the IRS.
D. Sub-chapter S corporations are being taxed at a higher rate by the IRS.
E. They are simpler when it comes to paperwork, offer some of the same tax advantages and also protect members from unlimited financial exposure.
Answer:
E. They are simpler when it comes to paperwork, offer some of the same tax advantages and also protect members from unlimited financial exposure
Explanation:
Limited liability companies are set up to protect the owners from liability. The business is a seperate entity from the individual owners and their assets are not used to settle debts of the business.
This type of business is gaining more use than S corporation. S corporation in addition to having liability advantages also requires more rigid requirements to set up. They do not pay corporate tax, but rather are taxed as sole proprietorship or a partnership.
Because of the ease of setting up an LLC more people prefer it to an S corporation. It also protects owners from unlimited financial liability
In Year 1, the investor acquired 10% ownership of investee and applied fair value method to account for the investment. In Year 2, the investor acquired another 30% ownership and applied equity method to account for the investment (40% ownership). In Year 3, the investor sold 35% ownership of the investee and started using fair value method again to account for the investment (5% ownership). Should the investor apply retrospective adjustment in Year 2 and Year 3
Answer:
b
Explanation:
On December 31, 2018 Dean Company changed its method of accounting for inventory from weighted average cost method to the FIFO method. This change caused the 2018 beginning inventory to increase by $960,000. The cumulative effect of this accounting change to be reported for the year ended 12/31/18, assuming a 40% tax rate, is Group of answer choices
Answer:
$576,000
Explanation:
Calculation for what The cumulative effect of this accounting change to be reported for the year ended 12/31/18, assuming a 40% tax rate, is
Accounting change cumulative effect= ($960,000 × (1 - .40)
Accounting change cumulative effect= ($960,000×0.6)
Accounting change cumulative effect= $576,000
Therefore The cumulative effect of this accounting change to be reported for the year ended 12/31/18, assuming a 40% tax rate, is $576,000
The bonds in our model have a maturity close to zero; they just pay the current interest rate, i, as a flow over time. We could consider, instead, a discount bond, such as a U.S. Treasury Bill. This type of asset has no explicit interest payments (called coupons) but pays a principal of, say, $1000 at a fixed date in the future. A Bill with one- year maturity pays off one year from the issue date, and similarly for 3-month or 6-month Bills. Let PB be the price of a discount bond with one-year maturity and principal of $1000. a. Is PB greater than or less than $1000.
a. Is P^B greater than or less than $1000?
b. What is the one-year interest rate on these discount bonds?
c. If prises, what happens to the interest rate on these bonds?
d. Suppose that, instead of paying $1000 in one year, the bond pays $1000 in two years. What is the interest rate per year on this two-year discount bond?
Answer:
Answer is explained in the explanation section below.
Explanation:
Part a.
[tex]P^{B}[/tex] will be less than $1000.
Reason: [tex]P^{B}[/tex] + interest = $1000, since interest >0 (Cannot be negative)
Hence,
[tex]P^{B}[/tex] < $1000
Part b.
Assuming the amount of interest to be i, [tex]P^{B}[/tex] would be $1000 - I
Rate of interest would be:
($1000 - ($1000-i)) / ($1000 - i) = i / ($1000 - i)
Rate of interest = i / ($1000 - i)
Part c.
If [tex]P^{B}[/tex] rises, the interest rate on these bonds would come down. Going back to a. [tex]P^{B}[/tex] = $1000 - i, and if [tex]P^{B}[/tex] rises, it implies that i reduces, which means that rate of interest will be reduced.
Part d.
If $1000 is a payment two years later, it implies that i (refer to b.) is the interest for two years. Assuming annual compounding, let's calculate rate of interest as follows:
Interest for two year (i) = $1000 - [tex]P^{B}[/tex] at the rate of i per year
= [tex]P^{B}[/tex] X i / 100 + ([tex]P^{B}[/tex] X (1+i/100))X i/100
We can solve for i to get annual rate of interest.
Answer each of the following independent questions. Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $64,000 cash immediately, (2) $20,000 cash immediately and a six-period annuity of $8,000 beginning one year from today, or (3) a six-period annuity of $13,000 beginning one year from today. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. Assuming an interest rate of 6%, determine the present value for the above options. Which option should Alex choose? 2. The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $100,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030?
Answer:
Option 1$1,381,645Explanation:
1. Alex needs to pick the option that offers the highest present value.
Option 1 present value = $64,000
Option 2:
Mix of lump-sum and annuity:
Present value of annuity = Annity * Present value interest factor of annuity, 6%, 6 periods
= 8,000 * 4.9173
= $39,338.40
Present value of option B = 20,000 + 39,338.40
= $59,338.40
Option 3:
Present value of annuity = Annity * Present value interest factor of annuity, 6%, 6 periods
= 13,000 * 4.9173
= $63,924.90
Alex should choose option 1 as it has the largest present value.
2.As this concerns a future amount, the future value of an annuity is used.
Future value of Annuity = Annuity * (( 1 + rate)^n - 1 )/ r
= 100,000 * ((1 + 7%)¹⁰ - 1) / 7%
= 100,000 * 13.8164479612795
= $1,381,644.79
= $1,381,645
Eric wants to invest in government securities that promise to pay $1,000 at maturity. The opportunity cost (interest rate) of holding the security is 13.80%. Assuming that both investments have equal risk and Ericâs investment time horizon is flexible, which of the following investment options will exhibit the lower price?
a. An investment that matures in four years
b. An investment that matures in five years
Answer:
The second option which 5 years to maturity exhibited a lower price of
$523.95
Explanation:
In order to ascertain the option with lower, it is important we determine the price of each investment based on the fact the price of an investment opportunity today is the present value of its future cash flow is the maturity value of $1000 in both cases:
a.
PV=FV/(1+r)^n
PV=price of investment
FV=future value=$1000
r= 13.80%.
n=4 years
PV=$1000/(1+13.80%)^4
PV=$596.25
b.
PV=FV/(1+r)^n
PV=price of investment
FV=future value=$1000
r= 13.80%.
n=5 years
PV=$1000/(1+13.80%)^5
PV= $523.95
you are in a 98 story building taking the elevator to the top from the bottom. Each story is 15 feet. The elevator travels at 20 miles per hour. There are 5,280 feet in a mile. How long do you have for your elevator pitch ?
Answer: 50 seconds
Explanation:
I took the test just now.
You are in a 98-story building taking the elevator to the top from the bottom. Each story is 15 feet. The elevator travels at 20 miles per hour. There are 5,280 feet in a mile. Around 50 seconds you can have for your elevator pitch.
What is an elevator pitch?An elevator pitch, elevator speech, or elevator statement is a short description of an idea, product, or company that explains the concept in a way such that any listener can understand it in a short period.
This description typically explains who the thing is for, what it does, why it is needed, and how it will get done. When explaining a person, the description generally explains one's skills and goals, and why they would be a productive and beneficial person to have on a team or within a company or project.
An elevator pitch does not have to include all of these components, but it usually does at least explain what the idea, product, company, or person is and their value.
Learn more about elevator, here:
https://brainly.com/question/27128408
#SPJ5
Mansfield, Inc., has two production departments, Assembly and Packaging. The company uses a job-order costing system and computes a predetermined overhead rate in each production department. The predetermined overhead rate in the Assembly Department is based on machine hours (MHs) and it is based on direct labor-hours (DLHs) in the Packaging Department. At the beginning of the year, the company made the following estimates Packaging Assembly 5,200 68, 400 Direct labor-hours Machine-hours Total fixed manufacturing overhead cost Variable manufacturing overhead per DLH Variable manufacturing overhead per MH 62,000 11,900 $419,000 $ 3.75 $390,000 $ 3.00
1 What is the estimated total manufacturing overhead in the Assembly Department?
a. $595,20o
b. $651,600
c. $809.000
d. $1,246,700
2 What is the predetermined overhead rate for the Packing Department?
a. $8.70 per DLH
b. $9.61 per DLH
c. $10.51 per DLH
d. $18.28 per DLH
Answer:
1. a. $595,200
2. c. $10.51 per DLH
Explanation:
The computation is shown below;
1.. Estimated total manufacturing overhead
Total Fixed Manufacturing Overheads $390,000
Add: Total Variable Manufacturing Overheads $205,200
(68400 × 3.00 per MH)
Total Estimated Manufacturing Overheads $595,200
2. The predetermined overhead rate is
Variable Manufacturing Overheads $3.75
Fixed manufacturing Overheads per DLH $6.76 ($419,000 ÷ 62,000)
Pre-determined Oh rate per DLH 10.51
Grimm Manufacturing is trying to determine the equivalent units for conversion costs with 15,000 units of ending work in process at 40% completion when there is a total 45,000 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period. What are the equivalent units for conversion costs for the current period
Answer: 36000 units
Explanation:
Ending work in process = 15,000 units
Completion rate = 40%
Total physical units = 45,000
The units completed will be:
= Total Units - Ending working in process
= 45,000 - 15,000
= 30,000
Since only 40% of the ending work in process inventory units has been completed, the completed units will then be:
= 15,000 × 40%
= 15000 × 0.4
= 6,000 units.
Then, the equivalent units for conversion costs for the current period will be:
= 30,000 + 6,000
= 36,000 units.
preparing its Manufacturing Overhead Budget for the fourth quarter of the year. The budgeted variable manufacturing overhead rate is $1.70 per direct labor-hour; the budgeted fixed manufacturing overhead is $116,000 per month, of which $30,000 is factory depreciation. If the budgeted direct labor time for December is 4,000 hours, then the predetermined manufacturing overhead per direct labor-hour for December would be:
An outside supplier has offered to sell the component for $17. If Damon purchases the component from the outside supplier, the manufacturing facilities would be unused and could be rented out for $10,000. If Damon purchases the component from the supplier instead of manufacturing it, the effect on income would be:
Answer:
C. a $10,000 decrease.
Explanation:
Calculation for what the effect on income would be
First step is to calculate Make
Make=$100,000 + $160,000 + $60,000
Make = $320,000
Second step is to calculate Buy
Buy= $20,000 × $17 = $340,000 – $10,000
Buy = $330,000
Now let calculate the effect on income
Effect on income = $320,000 – $330,00
Effect on income = –$10,000 decrease
Therefore the effect on income would be –$10,000 decrease
Kara files her income tax return 64 days after the due date of the return without obtaining an extension from the IRS. Along with the return, she remits a check for $15,400, which is the balance of the tax she owes. Note: Assume 30 days in a month.
Required:
Disregarding the interest element, enter Kara's penalty amount for each, failure to file and failure to pay.
Failure to pay________$
Failure to file________$
Answer:
failure to file :$2079
failure to pay:$231
Explanation:
given data
remits a check = $15,400
days in a month = 30
return = 64 days
solution
computation of Kara's penalty amount for failure to pay
failure to pay will be
failure to pay = 0.5% of tax owed × number of months .......................1
failure to pay = 0.5% × $15400 × 3
failure to pay = $231
and
Computation of Kara's penalty amount for failure to file
failure to file will be
failure to file = (5% of tax owed × number of months or part thereof) - failure to pay penalty .......................2
failure to file = (5% × $15400 × 3) - $231
failure to file = $2310 - $231
failure to file = $2079
After graduating from college, you are hired by the Ford automobile company as an economic analyst. For your first project, you are asked to estimate what would happen to the sales of Ford Mustangs as a result of a change in (i) the price of a Chevrolet Camaro, (ii) the price of gasoline, and (iii) consumer incomes. You are given the following elasticities:
price elasticity Of demand for Ford Mustangs= -2.5
Cross-price elasticity between Ford Mustangs and Camaros =1.5
Cross-price elasticity between Ford Mustangs and gasoline= -0.80
Income elasticity of demand for Ford Mustangs= 3.00
a. Suppose the price Of a Camaro falls by 10%. With all else being equal, sales of Ford Mustangs would______ by_______%
b. If the price of gasoline increases by 20%, the quantity of Ford Mustangs would _________by_______%
Answer:
a. Decrease by 15%
b. decrease by 16%
Explanation:
a. As we know that
Camaro and ford mustangs would be considered as a substitute goods as the cross price elasticity of demand comes in positive so in the case when the price of camaro decrease so the quantity of Mustang would also decreased by 1.5 ×10% = 15%
b. As we know that Gasoline and mustang would be considered as complementary goods so if the price of gasoline would increase by 20% so the quantity of mustang be decreased by 0.80 × 20% = 16%
Ultra Fine Furnishings is in the process of selling its peripheral businesses and focusing on its upscale clients. In conjunction with this reorganization, the dividend will be decreased by 10 percent for the next 3 years. After that, the dividend will resume increasing at an annual rate of 5 percent. The required return on this stock is 14 percent and the last dividend paid was $2.40 a share. What is one share of this stock worth today?
Answer:
$18.35
Explanation:
P0 = D1/(1+r)^1 + D2/(1+r)^2 + D3/(1+r)^3 + P3/(1+r)^3
D1 = $2.40 * 0.90 = $2.16
D2 = $2.16 * 0.90 = $1.944
D3 = $1.944 * 0.90 = $1.7496
P3 = D3*(1+g)/(r-g) = $1.7496*(1+0.05)/(0.14-0.05) = $20.412
P0 = D1/(1+r)^1 + D2/(1+r)^2 + D3/(1+r)^3 + P3/(1+r)^3
P0 = [$2.16/(1+0.14) + $1.944(1+0.14)^2 + $1.7496/(1+0.14)^3 + $20.412/(1+0.14)^3]
P0 = $18.35
Therefore, the worth of the stock today is $18.35.
The next dividend payment by Zone, Inc., will be $2.08 per share. The dividends are anticipated to maintain a growth rate of 6 percent forever. If the stock currently sells for $42 per share, what is the required return
Answer:
10.95%
Explanation:
According to the gordon growth model,
the value of stock (price) = dividend / required return - growth rate
42 = 2.08/ r - 0.06
42(r-0.06) = 2.08
2.08/42 = r - 0.06
r = 10.95%
Global Tek is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 16 percent a year for the next four years and then the growth slows down to a rate of 3.5 percent per year indefinitely. The company just paid its annual dividend in the amount of $0.20 per share. What is the current value of one share of this stock if the required rate of return is 15.5%?
Answer:
The value of the stock is $2.558
Explanation:
We need to calculate the present value of future cash flows to calculate the Stock value
First Calculate each year's Dividend
Use the following formula to calculate the expected dividend
Expected Dividend = Current Dividend x ( 1 + Growth rate )^n
Year ______ Working _________ Dividend
1 ______ $0.20 x ( 1 + 16% )^1 ____ $0.232
2______ $0.20 x ( 1 + 16% )^2 ____ $0.269
3______ $0.20 x ( 1 + 16% )^3 ____ $0.312
4______ $0.20 x ( 1 + 16% )^4 ____ $0.362
5______$0.362 x ( 1 + 3.5% ) _____$0.375
Now calculate the present value of each year's dividend using following formula
PV = Dividend / ( 1 + required rate of return )^numbers of years
Year _____ Working ______________________ PRESENT VALUES
1 ______ $0.232 / ( 1 + 15.5% )^1 _____________ $0.201
2______ $0.269 / ( 1 + 15.5% )^2 _____________$0.202
3______ $0.312 / ( 1 + 15.5% )^3 _____________ $0.203
4______ $0.362 / ( 1 + 15.5% )^4 _____________$0.203
5______$0.375 / (15.5% - 3.5% ) ) / ( 1 + 15.5% ) __$1.749
Now calculate the sum of present value of all the dividends
Value of stock = $0.201 + $0.202 + $0.203 + $0.203 + $1.755
Value of stock = $2.558
In the market for financial capital,
a. those who supply financial capital pay interest on loans.
b. those who demand financial capital receive interest on loans.
c. the demand for financial capital comes from savings, and the supply goes to making loans.
d. the supply of financial capital comes from savings, and the demand goes to making loans.
Answer:
d. the supply of financial capital comes from savings, and the demand goes to making loans.
Explanation:
Capital markets refer to the areas where deposits and investment are transferred between the capital providers and others in need of capital. Capital markets consist of the main market, where new shares are released and exchanged, and the secondary market, where already issued securities are exchanged by investors.
Portions of the financial statements for Peach Computer are provided below. PEACH COMPUTER Income Statement For the year ended December 31, 2021 Net sales $ 1,725,000 Expenses: Cost of goods sold $ 1,020,000 Operating expenses 530,000 Depreciation expense 47,000 Income tax expense 37,000 Total expenses 1,634,000 Net income $ 91,000 PEACH COMPUTER Selected Balance Sheet Data December 31 2021 2020 Increase (I) or Decrease (D) Cash $ 99,000 $ 83,500 $ 15,500 (I) Accounts receivable 46,300 50,500 4,200 (D) Inventory 72,000 53,500 18,500 (I) Prepaid rent 2,700 4,400 1,700 (D) Accounts payable 42,000 35,500 6,500 (I) Income tax payable 4,700 8,500 3,800 (D) Required: Prepare the operating activities section of the statement of cash flows for Peach Computer using the indirect method.
Answer:
PEACH COMPUTER
Operating Activities Section of Cashflow Statement
Cash flows from operating activities: $91,000
Adjustments to reconcile net income to
net cashflows from operating activities:
Add: Depreciation $47,000
Changes in operating assets and liabilities:
Increase in Inventory ($18,500)
Decrease in accounts receivable $4,200
Increase in Accounts Payable $6,500
Decrease in Prepaid rent $1,700
Decrease in Income tax payable ($3,800) $37,100
Net Cash from Operating activities $128,100
The following information is available for the first year of operations of Engle Inc., a manufacturer of fabricating equipment:
Sales $7,270,000
Gross profit 1,450,000
Indirect labor 330,000
Indirect materials 195,000
Other factory overhead 90,000
Materials purchased 5,100,000
Total manufacturing costs for the period 6,170,000
Materials inventory, end of period 480,000
Using this information, determine the following missing amounts:
A. Cost of goods sold.
B. Direct materials cost.
C. Direct labor cost.
Answer:
A. $5,820,000
B. $4,425,000
C. $1,130,000
Explanation:
A. Cost of goods sold.
Cost of goods sold = Sales - Gross Profit
= $7,270,000 - $1,450,000
= $5,820,000
B. Direct materials cost.
Direct materials cost = Material Purchases - Ending Material Inventory - Indirect Materials
= $5,100,000 - $480,000 - $195,000
= $4,425,000
C. Direct labor cost.
Direct labor cost = Total Manufacturing Cost - Indirect labor - indirect materials - direct materials - other factory overheads
= $6,170,000 - $330,000 - $195,000 - $4,425,000 - $90,000
= $1,130,000
A purchase of a pair of Italian designer jeans by a resident of Japan would be considered an_____when counting GDP in Japan. As a result, this purchase would be_____Japanese GDP. A purchase of a light pickup truck made in Japan and sold in Canada would be considered an_____for Japanese GDP, which would be_____Japanese GDP.
Answer and Explanation:
In the case when the purchase of Italian jeans made by the Japan resident so it would be considered an import at the time of counting GDP in Japan. So the purchase would be deducted or excluded from Japanese GDP
In the case when the purchase of truck would be made in Japan and then sold it in Canada so it would be considered as an export so the same would be included or added in Japanese GDP.
The transactions completed by PS Music during June 2018 were described at the end of Chapter
1. The following transactions were completed during July, the second month of the business's operations:
July 1. Peyton Smith made an additional investment in PS Music in exchange for common stock by depositing $5,000 in PS Music's checking account.
1 Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, $1,750. 1. Paid a premium of $2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period.
2. Received $1,000 on account.
3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of $3,600. Any additional hours beyond 80 will be billed to KXMD at $40 per hour. In accordance with the contract, Peyton received $7,200 from KXMD as an advance payment for the first two months. 3. Paid $250 on account.
4. Paid an attorney $900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense)
5. Purchased office equipment on account from Office Mart, $7,500.
8. Paid for a newspaper advertisement, $200.
11 Received $1,000 for serving as a disc jockey for a party
13. Paid $700 to a local audio electronics store for rental of digital recording equipment.
14. Paid wages of $1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal:
16. 18. 21. 22. Received $2,000 for serving as a disc jockey for a wedding reception. Purchased supplies on account, $850. Paid $620 to Upload Music for use of its current music demos in making various music sets. Paid $800 to a local radio station to advertise theservices of PS Music twice daily for the remainder of July 23. Served as disc jockey for a party for $2500. Received $750, with the remainder due August 4, 2018
27. Paid electric bill, $915.
28. Paid wages of $1200 to receptionist and part-time assistant.
29. Paid miscellaneous expenses, $540. 30. Served as a disc jockey for a charity ball for $1,500. Received $500, with the remainder due on August 9, 2018. 31 Received $3,000 for serving as a disc jockey for a party 31. Paid $1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. Paid dividends, $1,250. 31.
Question Completion:
Journalize the transactions.
Answer:
PS Music
Journal Entries:
July 1 Debit Cash $5,000
Credit Common Stock $5,000
To record the additional investment by Peyton Smith.
July 1: Debit Rent Expense $1,750
Credit Cash $1,750
To record the payment of rent for July.
July 1: Debit Prepaid Insurance $2,700
Credit Cash $2,700
To record the prepayment of insurance premium for one year.
July 2: Debit Cash $1,000
Credit Service Revenue $1,000
To record the receipt of cash on account.
July 3: Debit Cash $7,200
Credit Service Revenue $3,600
Credit Unearned Service Revenue $3,600
To record the receipt of service revenue for July and August.
July 3: Debit Accounts Payable $250
Credit Cash $250
To record payment on account.
July 4: Debit Miscellaneous Expense $900
Credit Cash $900
To record the payment contract review by an attorney.
July 5: Debit Office Equipment $7,500
Credit Accounts Payable (Office Mart) $7,500
To record purchase of office equipment on account.
July 8: Debit Advertising Expense $200
Credit Cash $200
To record the payment for a newspaper advertisement.
July 11: Debit Cash $1,000
Credit Service Revenue $1,000
To record the receipt of cash for services.
July 13: Debit Equipment Rental Expense $700
Credit Cash $700
To record the payment for rental of digital recording equipment.
July 14: Debit Wages Expense $1,200
Credit Cash $1,200
To record the payment of wages.
July 16: Debit Cash $2,000
Credit Service Revenue $2,000
To record the receipt of cash for services.
July 18: Debit Supplies $850
Credit Accounts Payable $850
To record the purchase of supplies on account.
July 21: Debit Music Expense $620
Credit Cash $620
To record the payment of cash for uploading music.
July 22: Debit Advertising Expense $800
Credit Cash $800
To record the payment for advertising expense.
July 23: Debit Cash $750
Debit Accounts Receivable $1,750
Credit Service Revenue $2,500
To record service revenue earned for cash and on account.
July 27: Debit Utilities Expense $915
Credit Cash $915
To record the payment of electric bill.
July 28: Debit Wages Expense $1,200
Credit Cash $1,200
To record the payment of wages.
July 29: Debit Miscellaneous Expense $540
Credit Cash $540
To record the payment of miscellaneous expense.
July 30: Debit Cash $500
Debit Accounts Receivable $1,000
Credit Service Revenue $1,500
To record service revenue earned for cash and on account.
July 31: Debit Cash $3,000
Credit Service Revenue $3,000
To record the receipt of cash for services.
July 31: Debit Music Expense $1,400
Credit Cash $1,400
To record the payment of royalties.
July 31: Debit Dividends $1,250
Credit Cash $1,250
To record the payment of dividends to the stockholder.
Explanation:
Journal entries are the first records made to record business transactions as they occur on a daily basis. They identify the accounts involved in each transaction and the ones to be debited and credited respectively.
Journal entries are the first records made to record business transactions as they occur on a daily basis. They identify the accounts involved in each transaction and the ones to be debited and credited respectively.
What are business's operations?Business operations is a term used to define a broad range of activities. In essence, it refers to everything a firm does day-to-day to keep running and making money. Those activities, therefore, can differ hugely from one company to the next.
Business operations also include the technologies, systems, processes, equipment, and workflows essential to deliver value to customers. Planning operations management allows decision-makers to supervise business activities and assign responsibilities to authorized individuals.
Learn more about Business operations here,
https://brainly.com/question/14751622
#SPJ5
An economic profit includes implicit costs and accounting profit does not. A distinction between them is important because an accounting profit is a relative amount of money. Some amount of accounting profit may or may not be a sufficient amount of profit to keep an entrepreneur in:________
Answer:
his/ her present line of business
Explanation:
Economic profit is accounting profit less implicit cost
Accounting cost is total revenue less explicit cost
Implicit cost is the cost of the next best option forgone when one alternative is chosen over other alternatives
Explicit cost is the actual cost incurred in carrying out an activity.
In determining profit, it is essential to consider implicit cost to determine if the business is earning economic profit
The type of system that integrates the information of departments and functions of a company into a single computer system is called a(n) Multiple choice question. Electronic Data Processing system. Enterprise Resource Planning (ERP) system. Accounting Data system.
Answer:
The appropriate alternative is option B (ERP system).
Explanation:
The ERP system has become a corporation software platform that has the core purpose of integrating various processes and employees throughout the financial institution into a standard desktop software application that might boost the growth of the agency. They encourage organizations to implement resource planning by assimilating all of the mechanisms necessary to execute one‘s corporations with such a single platform.The two other possibilities are not connected to the condition in question. Therefore the choice above is the perfect one.
Tom is comparing two printers for his small business. The purchase price for Printer A is $1,000, with maintenance and operations costs of $400. Printer B increases productivity by $100, and reduces the maintenance and operations costs by half. The expected lifetime value is one year for both printers. What is the economic value to the customer (EVC) of Printer B
Answer:
EVC = $1300
Explanation:
In this question, we need to find the economic value to the customer (EVC) of Printer B.
First of all we need to know the basics of Economic value of a product,
It is basically starts with evaluating the additional values of the product first which are associated with it and then, those values are added to the next best product in the market. In this case, Printer A is the next best product whose price is $1000.
We know that, Printer B increase productivity by $100
Reduce the maintenance and operations costs by half, which means $400/2 = $200.
Additional value of the product = $100 + $200
Cost of the next best product = $1000
So,
According to the EVC definition and understandings, we must add the additional values of the product to value of the next best product.
Hence,
EVC = $1000 + $100 + $200
EVC = $1300
Question 3: Cost terminology in manufacturing firms a) Direct materials include all materials and components only raw materials such as steel and glass only major materials and components Correct: Your answer is correct. Direct labor includes all production labor including supervisors and maintenance staff only managers who directly supervise the production process only hourly production workers (aka assembly workers) Correct: Your answer is correct. Manufacturing overhead includes only big items that cannot be traced (e.g., factory rent) only non-manufacturing costs only small items that are not worth tracing (e.g., glue, grease) both big items that cannot be traced (e.g., factory rent) and small items that are not worth tracing (e.g., glue, grease) Correct: Your answer is correct. b) Classify the following items as direct materials (DM), direct labor (DL), or manufacturing overhead (OH) for a car assembly plant: Rent for the factory building DL DM OH Correct: Your answer is correct. Cost of engines used in production DL DM OH Correct: Your answer is correct. Depreciation on production equipment DL DM OH Correct: Your answer is correct. Cost of lubricant used in production DL DM OH Correct: Your answer is correct. Production supervisor's salary DL DM OH Correct: Your answer is correct. Assembly workers' wages DL DM OH Correct: Your answer is correct.
Answer:
1. a. Only major materials and components.
Only the major materials and components are include as direct materials because these are the materials that directly needed for production.
b. Only hourly production workers (aka assembly workers).
The direct labor has to be those people who are directly involved in production which in this case is the assembly workers. Managers and Supervisors are not integral so are not direct labor.
c. Both big items that cannot be traced (e.g., factory rent) and small items that are not worth tracing (e.g., glue, grease).
All other items involved in production should be included as manufacturing overheads including big items and small items that cannot be traced.
2.
Rent for the factory building ⇒ Manufacturing Overhead (OH).
Cost of engines used in production ⇒ Direct materials (DM).
Depreciation on production equipment ⇒ Manufacturing Overhead (OH).
Cost of lubricant used in production. ⇒ Manufacturing Overhead (OH).
Production supervisor's salary. ⇒ Manufacturing Overhead (OH).
Assembly workers' wages. ⇒ Direct Labor.
Tierney Construction, Inc. recently lost a portion of its financial records in an office theft. The following accounting information remained in the office files:
Cost of goods sold $88,250
Work in process inventory, January 1, 2016 21,800
Work in process inventory, December 31, 2016 17,250
Selling and Administrative Expenses 20,400
Net Income 35,500
Factory overhead 21,650
Direct materials inventory, January 1, 2016 28,200
Direct materials inventory, December 31, 2016 15,375
Cost of goods manufactured 107,350
Finished goods inventory, January 1, 2016 35,675
Direct labor cost incurred during the period amounted to 2.5 times the factory overhead. The CFO of Tierney Construction, Inc. has asked you to recalculate the following accounts and to report to him by the end of tomorrow.
What should be the amount in the finished goods inventory at December 31, 2016?
Answer:
$54,775
Explanation:
The computation of the finished goods inventory is shown below:
As we know that
Cost of Goods sold = Cost of goods manufactured + Opening stock of Finished goods - Closing stock of Finished goods
Now
Ending Stock of Finished goods = Cost of goods manufactured + Opening stock of Finished goods - Cost of Goods sold
So,
Ending Stock of Finished goods is
= $107,350 + $35,675 - $88,250
= $54,775
Mijka Company was started on January 1, Year 1. During Year 1, the company experienced the following three accounting events: (1) earned cash revenues of $30,400, (2) paid cash expenses of $13,800, and (3) paid a $2,100 cash dividend to its stockholders. These were the only events that affected the company during Year 1.
Required:
a. Record the effects of each accounting event under the appropriate general ledger account headings.
b. Prepare an income statement, statement of changes in stockholdersâ equity, and a balance sheet dated December 31, 2018, for Mijka Company.
Answer:
Mijka Company
a. Journal Entries
Debit Cash $30,400
Credit Service Revenue $30,400
To record the proceeds for services provided.
Debit Expenses $13,800
Credit Cash $13,800
To record the payment of cash for services.
Debit Dividend $2,100
Credit Cash $2,100
To record the payment of cash dividend.
b. Income Statement for the year ended December 31, 2018:
Service Revenue $30,400
Expenses 13,800
Net Income $16,600
Dividends (2,100)
Retained earnings $14,500
Statement of Changes in Stockholders' Equity as of December 31, 2018:
Retained Earnings $14,500
Balance Sheet as of December 31, 2018:
Assets:
Cash $14,500
Equity:
Retained Earnings $14,500
Explanation:
a) Data and Calculations:
Cash revenue $30,400
Cash expense (13,800)
Cash dividend (2,100)
Cash balance $14,500
Distributors of cigarettes earn some monopoly profits in their local markets but see them slowly erode as substitutes enter the market. Suppose Nebraska has scheduled a vote on the legalization of marijuana. Additionally, suppose that marijuana and cigarettes are substitutes and that the legalization of marijuana would lead to a decrease in the price of marijuana.
Given the relationship between marijuana and cigarettes, the legalization of marijuana would lead to_______in demand for cigarettes. Thus, distributors of cigarettes would likely____the legalization of marijuana.
Answer:
The question is incomplete, the options are missing. The options are the following:
For the first gap: increase/decrease.
For the second gap: support/oppose.
And the correct answers are: Decrease/oppose.
Explanation:
To begin with, in the microeconomics theory when it comes to concept of substitutes it refers to the relationship that exists between two goods that are similar in characteristics and therefore that they are probably to substitue one for the other in the market in the case when one's price is higher that the other. That is why that in this case presented, the legalization of the marijuana would obviously lead to a decrease in the demand of the cigarattes due to the fact that now the consumers will start to consume more of the other, letting the cigarette fall. And therefore that the distributors of cigarattes would likely be oppose to the legalization because it will affect their business.
The following information describes the investment portfolio of Stevens, Incorporated. All of the securities were purchased on 3/1/19, and are held with the intention of appreciation. Tlet, Loxat, and Barnes each have more than 1,000,000 common shares issued and outstanding throughout 2019 and 2020. No dividends have been received by Stevens, Inc. on these investments. On 5/1/2020, when Loxat was trading at $81 per share, Stevens Inc. sold 1000 shares.
Security Cost at 12/31/19 / share FMV at 12/31/2019 /share FMV at 12/31/2020/share
Tlet Inc (1000 sh) $23,000 28,500 37,000
Loxat Co (2000 sh) 100,000 142,500 96,500
Barnes Inc (2000 sh) 46,000 39,000 42,000
Total $169,000 210,000 175,500
Required:
a. Prepare the Necessary Journal Entries for 2019 and 2020
b. Complete a fair value adjustment
Answer:
a. 3/1/2019
Dr Investment in Tlet Inc $23,000
Dr Investment in Loxat Co $100,000
Dr Investment in Barnes Inc $46,000
Cr Cash $169,000
12/31/2019
Dr Fair value adjustment $41,000
Cr Unrealised holding gain or loss,Net $41,000
5/1/2020
Dr Cash $81,000
Cr Investment in Loxat Co $50,000
Cr Recognized gain on sale $31,000
12)31/2020
Dr Fair value adjustment $15,500
Cr Unrealised holding gain or loss,Net $15,500
b. Fair value adjustment $41,000
Fair value adjustment $15,500
Explanation:
a. Preparation of the Necessary Journal Entries for 2019 and 2020
3/1/2019
Dr Investment in Tlet Inc $23,000
Dr Investment in Loxat Co $100,000
Dr Investment in Barnes Inc $46,000
Cr Cash $169,000
12/31/2019
Dr Fair value adjustment $41,000
Cr Unrealised holding gain or loss,Net $41,000
($169,000-$210,000)
5/1/2020
Dr Cash $81,000
( $81 per share*1,000 shares)
Cr Investment in Loxat Co $50,000
[($100,000/2,000 shares=50 shares)
[($50*1,000 =$50,000)
Cr Recognized gain on sale $31,000
($81,000-$50,000)
12)31/2020
Dr Fair value adjustment $15,500
Cr Unrealised holding gain or loss,Net $15,500
[($119,000-$175,500)-$41,000]
($23,000+$50,000+$46,000=$119,000)
b.Calculation to Complete the fair value adjustment
A. Fair value adjustment =$169,000-$210,000
Fair value adjustment $41,000
B. Fair value adjustment=[($119,000-$175,500)-$41,000]
Fair value adjustment=$56,500-$41,000
Fair value adjustment= $15,500
Therefore the Fair value adjustment will be:
A. $41,000
B. $15,500
On January 1, Year 1, a contractor began work on a $3.2 million construction contract that is expected to be completed in 3 years. The contractor concludes that it is appropriate to recognize revenue over time using the input method based on costs incurred (cost-to-cost method). At the inception date, the estimated cost of construction was $2.4 million. The following data relate to the actual and expected construction costs:
Year 1 Year 2 Year 3
Costs incurred $720,000 $1,170,000 $1,110,000
Expected future costs $1,680,000 $810,000 $0
For this long-term construction contract, the contractor needs to calculate the estimated dollar values of the revenue and gross profit (loss) to be recognized each year. Complete the contractor's long-term construction contract using the information above. Write the appropriate amounts in the associated cells. Indicate losses by using a leading minus (-) sign. Round all amounts to the nearest dollar. If no entry is necessary, enter a zero (0).
Revenue Gross profit (loss)
Year 1
Year 2
Answer:
Revenue Costs Incurred Gross profit (loss)
Year 1 $768,000 $720,000 $48,000
Year 2 $1,248,000 $1,170,000 78,000
Year 3 $1,184,000 $1,110,000 74,000
Total $3,200,000 $3,000,000 $200,000
Explanation:
a) Data and Calculations:
Construction contract = $3.2 million
Completion period = 3 years
Estimated cost of construction = $2.4 million
Construction costs:
Year 1 Year 2 Year 3 Total Costs
Costs incurred $720,000 $1,170,000 $1,110,000 $3 million
% of annual costs to total 24% 39% 37% 100%
Expected future costs $1,680,000 $810,000 $0
Annual Revenue $768,000 $1,248,000 $1,184,000 $3.2 million
Revenue Calculation:
Costs incurred/Total costs * $3,200,000
Revenue Costs Incurred Gross profit (loss)
Year 1 $768,000 $720,000 $48,000
Year 2 $1,248,000 $1,170,000 78,000
Year 3 $1,184,000 $1,110,000 74,000
Total $3,200,000 $3,000,000 $200,000
b) The revenue for each year is based on the costs incurred, as determined by the contractor.