Answer:
B. False
Explanation:
I majored in Business
Corinne is offered a job with a salary of $70,000, which she turns down to start her own business. She uses $20,000 of her own savings to help start the business, savings that had been providing her a return of $1,000 per year. Over her first year in business, Corinne collects total revenue of $180,000 and must cover explicit costs of $105,000. During her first year in business, Corinne's accounting profit is _____, and her economic profit is _____.
Answer:
Accounting profit $75,000
Economic profit $4,000
Explanation:
Calculation to determine the ACCOUNTING PROFIT
Using this formula
Accounting profit=Total revenue - Isxplicit costs
Let plug in the formula
Accounting profit=$180,000- $105,000
Accounting profit=$75,000
Calculation to determine the ECONOMIC PROFIT using this formula
Economic profit=Total revenue-Explicit costs of -Salary-Return per year
Let plug in the formula
Economic profit=$180,000-$105,00-$70,000-$1,000
Economic profit=$4,000
Therefore During her first year in business, Corinne's accounting profit is $75,000 and her economic profit is $4,000
Lamont Company produced 80,000 machine parts for diesel engines. There were no beginnings or ending work-in-process inventories in any department. Lamont incurred the following costs for May:
Molding Department Grinding Department Finishing Department
Direct materials $12,000 $5,400 $8,000
Direct labor 10,000 8,500 12,000
Applied overhead 17,000 14,000 11,000
Required:
1. Calculate the costs transferred out of each department.
2. Prepare the journal entries corresponding to these transfers. Also, prepare the journal entry for Grinding that reflects the costs added to the transferred-in goods received from Molding.
3. What if the Grinding Department had an ending WIP of $11,000? Calculate the cost transferred out.
4. What is the effect on finished goods calculated in Requirement 1, assuming the other two departments have no ending WIP?
Answer:
Lamont Company
1. The costs transferred out of each department:
Molding Grinding Finishing
Cost transferred out $39,000 $66,900 $86,900
WIP $11,000
Cost transferred out $39,000 $55,900 $86,900
2. Journal Entries:
Debit WIP: Grinding $39,000
Credit WIP: Molding $39,000
To record the transfer of cost from Molding to Grinding.
Debit Finishing $66,900
Credit WIP: Grinding $66,900
To record the transfer of cost from Grinding to Finishing.
Debit Finished Inventory $86,900
Credit Finishing $86,900
To record the transfer of cost from Finishing to Finished Inventory.
3. Molding Grinding Finishing
WIP $11,000
Cost transferred out $39,000 $55,900 $86,900
4. The effect of the ending WIP in the Grinding Department is that the cost of inventory transferred to the Finishing Department is reduced by the amount of the Work-in-Process Inventory ($11,000).
Explanation:
a) Data and Calculations:
Costs incurred in May:
Molding Grinding Finishing
Direct materials $12,000 $5,400 $8,000
Direct labor 10,000 8,500 12,000
Applied overhead 17,000 14,000 11,000
Total costs
transferred out $39,000 $27,900 $31,000
Grinding costs -39,000 39,000
Total costs 0 $66,900 $31,000
Cost transferred out to finishing -55,900 55,900
Total costs 0 0 $86,900
WIP 0 11,000
What do we call the value of the next best alternative given up when a choice is made?
A opportunity cost
B sunk cost
C needs
D scarcity
Answer:
A) Opportunity Cost
Explanation:
Jensen Automotive produces alternators for American-made cars. They generally use a static budget with the following costs based on 8,000 units per month: indirect materials, $22,000; indirect labor, $25,000; utilities, $12,000; supervision, $4,000; depreciation, $18,000. If Jensen wanted to create a flexible budget for 9,000 units, what value would they record for variable costs
Answer:
the value that should be recorded for variable cost is $66,375
Explanation:
The computation of the value that should be recorded for variable cost is shown below:
= Total variable cost ÷ budgeted units × flexible budget units
= ($22,000 + $25,000 + $12,000) ÷ 8,000 units × 9,000 units
= $59,000 ÷ 8,000 units × 9,000 units
= $66,375
hence, the value that should be recorded for variable cost is $66,375
The above formula is used
JOURNALIZING SALES TRANSACTIONS. Enter the following transactions in a sales journal. Use a 6% sales tax rate.
May 1 Sold merchandise on account to J. Adams, $2,000, plus sales tax. Sale No. 488.
4 Sold merchandise on account to B. Clark, $1,800, plus sales tax. Sale No. 489.
8 Sold merchandise on account to A. Duck, $1,500, plus sales tax. Sale No. 490.
11 Sold merchandise on account to E. Hill, $1,950, plus sales tax. Sale No. 491.
Answer:
May 1
Dr Accounts Receivable- J. Adams2120
Cr Sales $2,000
Sales Tax Payable 120
May 4
Dr Accounts Receivable- B. Clark 1908
Cr Sales 1800
Cr Sales Tax Payable 108
May 8
Dr Accounts Receivable- A. Duck 1590
Cr Sales 1500
Cr Sales Tax Payable 90
May 11
Dr Accounts Receivable- E. Hill 2067
Cr Sales 1950
Cr Sales Tax Payable 117
Explanation:
Preparation of sales journal entries
May 1
Dr Accounts Receivable- J. Adams2120
(2,000+120)
Cr Sales $2,000 Sales Tax Payable 120
($2,000*6%)
May 4
Dr Accounts Receivable- B. Clark 1908
(1800+108)
Cr Sales 1800
Cr Sales Tax Payable 108
(1800*6%)
May 8
Dr Accounts Receivable- A. Duck 1590
(1500+90)
Cr Sales 1500
Cr Sales Tax Payable 90
(1500*6%)
May 11
Dr Accounts Receivable- E. Hill 2067
(1950+117)
Cr Sales 1950
Cr Sales Tax Payable 117
(1950*6%)
Crane Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 46,000 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials $12 Direct labor 7 Variable manufacturing overhead 2 Direct fixed manufacturing overhead 9 (30% salaries, 70% depreciation) Allocated fixed manufacturing overhead 7 Total unit cost $37 Clifton Clocks has offered to provide the timer units to Crane at a price of $33 per unit. If Crane accepts the offer, the current timer unit supervisory and clerical staff will be laid off. (a1) Calculate the total relevant cost to make or buy the timer units. (Round answers to 0 decimal places, e.g. 5,250.) Make Buy Total relevant cost $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places
Answer:
Crane Water Co.
Total relevant cost to make or buy Make Buy
Direct materials $12
Direct labor 7
Variable manufacturing overhead 2
Direct fixed manufacturing overhead 6
Total relevant cost to make = $27 $33
Explanation:
a) Data and Calculations:
Annual production of timers = 46,000
Direct materials $12
Direct labor 7
Variable manufacturing overhead 2
Direct fixed manufacturing overhead 9
(30% salaries, 70% depreciation)
Allocated fixed manufacturing overhead 7
Total unit cost $37
Clifton Clocks offer price = $33
Total relevant cost to make or buy Make Buy
Direct materials $12
Direct labor 7
Variable manufacturing overhead 2
Direct fixed manufacturing overhead 6
Total relevant cost to make = $27 $33
b) Crane Water Co. will be in a better position if it continues to make the timer. It should not accept the offer from Clifton Clocks. The relevant cost to make is lower than the relevant cost to buy the timer from Clifton Clocks.
Park Co.'s wholly-owned subsidiary, Schnell Corp., maintains its accounting records in German marks. Because all of Schnell's branch offices are in Switzerland, its functional currency is the Swiss franc. Remeasurement of Schnell's 20X1 financial statements resulted in a $7,600 gain, and translation of its financial statements resulted in an $8,100 gain. What amount should Park report as a foreign exchange gain in its income statement for the year ended December 31, 20X1
Answer: $7600
Explanation:
The amount that Park should report as a foreign exchange gain in its income statement for the year ended December 31, 20X1 will be $7600.
We should note that when we want to determine the net income for a particular period, the translatation adjustments will not be included. Therefore the $8100 gain won't be included in the calculation. Hence, Park should report only $7600 gain.
Pretzelmania, Inc., issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.
Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31.
Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,860 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
All 3 question are need to find the first interest payment The only difference between 3 is the rate is one below, one higher, one are equal. No need to find the issuance bonds. Because I already had that one done.
Please and solve for thefirst interest payment with the steps that would be wonderful, thanks
Record bond issue and related semiannual interest (L04) Pretzelmania, Inc., issues 796, 10-year bonds with a face amount of $70,000 for $70,000 on January 1 2015. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31 1. & 2. Record the bond issue and first interest payment on June 30, 2015. (If no entry is required for a transaction event, select "No journal entry required" in the first account field.) view transaction list view general journal Date General Journal Debit Credit January 01, 2015 Cash 70,000 Bonds payable 70,000 June 30, 2015 Interest expense Bonds payable Cash value: 3.33 points Brief Exercise 9-6 Record bond issue and related semiannual interest (L04) Pretzelmania, Inc., issues 796, 15-year bonds with a face amount of $70,000 for $63.948 on January 1 2015. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31 1. & 2. Record the bond issue and first interest payment on June 30, 2015. (If no entry is required for a transaction event, select "No journal entry required" in the first account field.) view transaction list view general journal Date General Journal Debit Credit January 01, 2015 Cash 63,948 Bonds payable 63,948 June 30, 2015 Interest expense Bonds payable Cash value: 3.34 points Brief Exercise 9-7 Record bond issue and related semiannual interest (L04) Pretzelmania, Inc., issues 796, 15-year bonds with a face amount of $70,000 for $76.860 on January 1 2015. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31 1. & 2. Record the bond issue and first interest payment on June 30, 2015. (lf no entry is required for a transaction event, select "No journal entry required" in the first account field.) view transaction list view general journal Date General Journal Debit Credit January 01, 2015 Cash 76,860 Bonds payable 76,860 June 30, 2015 Interest expense Bonds payable Cash
Answer:
Pretzelmania, Inc.
1. Records:
Debit Cash $70,000
Credit Bonds Liability $70,000
To record the issuance of 7% bonds at face value.
June 30:
Interest Expense $2,450
Cash payment for interest $2,450
To record the first interest expense and payment.
(No amortization of discounts or premiums)
December 31: (not required but showed for emphasis)
Debit Interest Expense $2,450
Credit Cash payment for interest $2,450
To record the second interest expense and payment.
(No amortization of discounts or premiums)
2. Records:
Debit Cash $63,948
Bonds Discounts $6,052
Bonds Liability $70,000
To record the issuance of 7% bonds at discounts.
June 20, 2015:
Debit Interest Expense $2,557.92
Credit Amortization of bonds discounts $107.92
Credit Cash payment for interest $2,450
To record the first interest expense and payment, including amortization of bonds discounts.
December 31, 2015: (not required but showed for emphasis)
Debit Interest Expense $2,562.24
Credit Amortization of bonds discounts $112.24
Credit Cash payment for interest $2,450
To record the second interest expense and payment, including amortization of bonds discounts.
3. Records:
Debit Cash $76,860
Credit Bonds Liability $70,000
Credit Bonds Premium $6,860
To record the issuance of 7% bonds at premium.
June 30, 2015:
Debit Interest Expense $2,305.80
Debit Amortization of bonds premium $144.20
Credit Cash payment for interest $2,450
To record the first interest expense and payment, including amortization of bonds premium.
December 31, 2015: (not required but showed for emphasis)
Debit Interest Expense $2,301.50
Debit Amortization of Bonds Premium $148.50
Credit Cash payment for interest $2,450
To record the second interest expense and payment, including amortization of bonds premium.
Explanation:
1. issues 7%, 10-year bonds with a face amount of $70,000 for $70,000 on January 1, 2021. The market interest rate for bonds of similar risk and maturity is 7%. Interest is paid semiannually on June 30 and December 31.
a) Data and Calculations:
Face value of bonds = $70,000
Issuance value = $70,000
Interest rate on bonds = 7%
Market interest rate = 7%
Period of bonds = 10 years
Payment period = semiannually
Issue date = January 1, 2021
June 30:
Semiannual interest rate = 3.5% (7%/2)
Interest Expense = $2,450 ($70,000 * 3.5%)
Cash payment for interest = $2,450
No amortization of discounts or premiums
December 31:
Semiannual interest rate = 3.5% (7%/2)
Interest Expense = $2,450 ($70,000 * 3.5%)
Cash payment for interest = $2,450
No amortization of discounts or premiums
2. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $63,948 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 8%. Interest is paid semiannually on June 30 and December 31.
a) Data and Calculations:
Face value of bonds = $70,000
Issuance value = $63,948
Bonds discounts = $6,052 ($70,000 - $63,948)
Interest rate on bonds = 7%
Market interest rate = 8%
Period of bonds = 15 years
Payment period = semiannually
Issue date = January 1, 2015
June 30, 2015:
Semiannual interest rate = 3.5% (7%/2)
Interest Expense = $2,557.92 ($63,948 * 4%)
Amortization of bonds discounts = $107.92 ($2,557.92 - $2,450)
Cash payment for interest = $2,450 ($70,000 * 3.5%)
December 31, 2015:
Semiannual interest rate = 3.5% (7%/2)
Interest Expense = $2,562.24 (($63,948 + 107.92) * 4%)
Amortization of bonds discounts = $112.24 ($2,562.24 - $2,450)
Cash payment for interest = $2,450 ($70,000 * 3.5%)
3. Pretzelmania, Inc., issues 7%, 15-year bonds with a face amount of $70,000 for $76,860 on January 1, 2015. The market interest rate for bonds of similar risk and maturity is 6%. Interest is paid semiannually on June 30 and December 31.
a) Data and Calculations:
Face value of bonds = $70,000
Issuance value = $76,860
Bonds premium = $6,860 ($76,860 - $70,000)
Interest rate on bonds = 7%
Market interest rate = 6%
Period of bonds = 15 years
Payment period = semiannually
Issue date = January 1, 2015
June 30:
Semiannual interest rate = 3.5% (7%/2)
Cash payment for interest = $2,450 ($70,000 * 3.5%)
Interest Expense = $2,305.80 ($76,860 * 3%)
Amortization of bonds premium = $144.20 ($2,450 - $2,305.80)
December 31:
Semiannual interest rate = 3.5% (7%/2)
Cash payment for interest = $2,450 ($70,000 * 3.5%)
Interest Expense = $2,301.50 (($76,860 -144.20) * 3%)
Amortization of bonds premium = $148.50 ($2,450 - $2,301.50)
(Record bond issue and related semiannual interest)
At December 31 of the current year, Sunland Corporation had a number of items that were not reflected in its accounting records. Maintenance and repair costs of $900 were incurred but not paid. Utilities costing $370 were used but not paid, and use of a warehouse space worth $2,070 was provided to a tenant who had not been billed as of the end of the month. Record the required adjusting entries related to these events.
Answer:
Dr Maintenance and repair expense $900
Cr Accrued expense $900
Being entries to record maintenance and repair costs incurred
Utilities costing $370 were used but not paid
Dr Utilities expense $900
Cr Accrued expense $900
Being entries to record utilities used but unpaid for
use of a warehouse space worth $2,070 was provided to a tenant who had not been billed as of the end of the month
Dr Unbilled receivables $2,070
Cr Rental Income $2,070
Being entries to recognize income from warehouse space unbilled
Explanation:
When an expense is incurred but unpaid for, an accrual is recognized to capture the cost. For income earned but unbilled, unbilled receivable is recognized. This is based on the accrual concept.
Considering the transactions given
Maintenance and repair costs of $900 were incurred but not paid
Dr Maintenance and repair expense $900
Cr Accrued expense $900
Being entries to record maintenance and repair costs incurred
Utilities costing $370 were used but not paid
Dr Utilities expense $900
Cr Accrued expense $900
Being entries to record utilities used but unpaid for
use of a warehouse space worth $2,070 was provided to a tenant who had not been billed as of the end of the month
Dr Unbilled receivables $2,070
Cr Rental Income $2,070
Being entries to recognize income from warehouse space unbilled
Select the correct word(s) from the drop down menu to finish the following sentences:
Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are_____. If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are_____. Considering those two characteristics, fish in the ocean are____.
Question Completion:
Drop-down menu:
- excludable
- non-excludable
- rivalrous
- non-rivalrous
- common goods
- club goods
- public goods
- private goods
Answer:
Correct words to finish the sentences:
Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are__non-excludable___.
If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are__rivalrous___.
Considering those two characteristics, fish in the ocean are_common goods___.
Explanation:
The two key characteristics of a public good are: it is non-excludable and non-rivalrous. A common good is non-excludable but rivalrous. A private good is excludable and rivalrous. A club good is excludable and non-rivalrous.
Non-excludable refers to goods that are costly and impossible for a person to exclude other users from using the goods.
Non-rivalrous good refers to goods that a person can use without preventing others from using the goods.
Taxable income and pretax financial income would be identical for Skysong Co. except for its treatments of gross profit on installment sales and estimated costs of warranties. The following income computations have been prepared.
Taxable income 2019 2020 2021
Excess of revenues over
expenses (excluding two
temporary differences) $154,000 $191,000 $88,100
Installment gross profit
collected 8,500 8,500 8,500
Expenditures for warranties (4,500) (4,500) (4,500)
Taxable income $158,000 $195,000 $92,100
Pretax financial income 2019 2020 2021
Excess of revenues over
expenses (excluding two
temporary differences) $154,000 $191,000 $88,100
Installment gross profit
recognized 25,500 -0- -0-
Estimated cost of
warranties (13,500) -0- -0-
Income before taxes $166,000 $191,000 $88,100
The tax rates in effect are 2019, 40%; 2020 and 2021, 45%. All tax rates were enacted into law on January 1, 2019. No deferred income taxes existed at the beginning of 2019. Taxable income is expected in all future years. Prepare the journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2016, 2017, and 2018.
Answer:
See the journal entry below.
Explanation:
Before preparing the journal entry, the following are calculated first:
Income tax expense in 2019 = (Taxable income in 2019 * Tax rate in 2019) + (Taxable income in 2020 * Tax rate in 2020) + (Taxable income in 2021 * Tax rate in 2021) = ($158,000 * 40%) + ($195,000 * 45%) + ($92,100 * 45%) = $193,395
Deferred tax liability in 2019 = (Taxable income in 2020 * Tax rate in 2020) + (Taxable income in 2021 * Tax rate in 2021) = ($195,000 * 45%) + ($92,100 * 45%) = $129,195
Income tax payable in 2019 = Taxable income in 2019 * Tax rate in 2019 = $158,000 * 40% = $63,200
Income tax payable in 2020 = Taxable income in 2020 * Tax rate in 2020 = $195,000 * 45% = $87,750
Income tax payable in 2021 = Taxable income in 2021 * Tax rate in 2021 = $92,100 * 45% = $41,445
The journal entry will look as follows:
Date General journal Debit ($) Credit ($)
31 Dec 2019 Income tax expense 193,395
Deferred tax liability 129,195
Income tax payable 63,200
(To record income tax payable.)
31 Dec 2020 Deferred tax liability 87,750
Income tax payable 87,750
(To record income tax payable.)
31 Dec 2021 Deferred tax liability 41,445
Income tax payable 41,445
(To record income tax payable.)
Each service starts on a different date because the services depend on each other. Enter the starting dates for the remaining services as follows:
a. In cell D6, enter a formula without using a function that adds 4 days to the value in cell 06.
b. In cell E6, enter a formula without using a function that subtracts 3 days from the value in cell C6
c. In cell F6, enter a formula without using a function that adds 2 days to the value in cell E6
d. In cell G6, enter a formula without using a function that adds 2 days to the value in cell C6.
Answer:
a. Copy the range of cell D7:D9 then select cell D6 and paste the selection with date format selected. The function will be represented in formula bar with adding +4;365 days.
b. Copy the range of cell D7:D9 then select cell D6 and paste the selection with date format selected. The function will be represented in formula bar with adding -3;365 days.
c. In the formula bar type =365 days; +2 : E6
d. In the formula bar type =365 days ; +2 : C6
Explanation:
Excel is a software which helps the users to easily calculate complex calculation with just one function input. The users can create worksheets using the excel and then link those worksheets with each other. The data can be displayed in the form of table or simple text. It has multiple options to create annual day wise filtered worksheets.
Current Attempt in Progress
Cullumber Company entered into these transactions during May 2022, its first month of operations.
1. Stockholders invested $42,500 in the business in exchange for common stock of the company.
2. Purchased computers for office use for $31,900 from Ladd on account.
3. Paid $2,900 cash for May rent on storage space.
4. Performed computer services worth $17,900 on account.
5. Performed computer services for Wharton Construction Company for $5,400 cash.
6. Paid Western States Power Co. $8,300 cash for energy usage in May.
7. Paid Ladd for the computers purchased in (2).
8. Incurred advertising expense for May of $1,600 on account.
9. Received $14,000 cash from customers for contracts billed in (4).
Create a tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Answer:
Assets = Liabilities + Stockholders' Equity = $68,600
Explanation:
Note: See the attached excel file for the tabular analysis of the effect of each transaction on the accounting equation.
From the attached excel file, we have:
Assetes = Total assets balance = = $18,800 + $17,900 + 31,900 = $68,600
Liabilities = Total liabilities balance = $1,600
Stockholders' Equity = Total Common Stock balance + Total Net Income balance = $42,500 + $25,500 = $67,000
Liabilities + Stockholders' Equity = $1,600 + $67,000 = $68,600
Therefore, we have:
Assets = Liabilities + Stockholders' Equity = $68,600
In its first year of operations, Crane Company recognized $31,700 in service revenue, $7,700 of which was on account and still outstanding at year-end. The remaining $24,000 was received in cash from customers. The company incurred operating expenses of $16,600. Of these expenses, $12,690 were paid in cash; $3,910 was still owed on account at year-end. In addition, Crane prepaid $3,260 for insurance coverage that would not be used until the second year of operations.
Required:
Calcuate the first year's net earnings under the cash basis of accounting, and calculate the first years net earnings under the accrual basis of accouriting.
Answer:
Under the cash basis, expenses and revenue are recorded in the period the cash is received or spent.
Under the Accrual basis, expenses and revenue are recorded in the period incurred.
Under Cash basis:
= Cash Revenue - cash expenses - Prepaid expenses
= 24,000 - 12,690 - 3,260
= $8,050
Under Accrual basis:
= Revenue for the year - Expenses for the year
= 31,700 - 16,600
= $15,700
Click this link to view O*NET’s Skills section for General and Operations Managers. Note that common skills are listed toward the top and less common skills are listed toward the bottom. According to O*NET, what are common skills needed by General and Operations Managers? Select four options.
speaking
critical thinking
active listening
computer repair
reading comprehension
equipment selection
Answer:
i got bcde
Explanation:
abce
Explanation:
Describing Skills for General and Operations Managers
Required: Determine the specific eight- or nine-digit Codification citation (XXX-XX-XX-XX) that describes the following items: 1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed. 2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities. 3. Accounting for the revenue from separately priced extended warranty contracts. 4. The criteria to determine if an employer must accrue a liability for vacation pay.
Answer:
The codes for the Financial Accounting Standards Board (FASB) Accounting Standards Codification can be found on the FASB website.
The format is (XXX-XX-XX-XX).
The first XXX is the Topic.
The first XX is the Subtopic
The second XX is the Section
The third XX or X is the Paragraph.
The Codes for the following are:
1. If it is only reasonably possible that a contingent loss will occur, the contingent loss should be disclosed. 450-20-50-3
Topic ⇒ Contingencies
Subtopic ⇒ Loss Contingencies
Section ⇒ Disclosure
2. Criteria allowing short-term liabilities expected to be refinanced to be classified as long-term liabilities. 470-10-45-14
Topic ⇒ Debt
Subtopic ⇒ Overall
Section ⇒ Other Presentation Matters
3. Accounting for the revenue from separately priced extended warranty contracts. 605-20-25-3
Topic ⇒ Revenue Recognition
Subtopic ⇒ Services
Section ⇒ Recognition
4. The criteria to determine if an employer must accrue a liability for vacation pay. 710-10-25-1.
Topic ⇒ Compensation - General
Subtopic ⇒ General
Section ⇒ Recognition
Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevant data are summarized below: Contract amount $ 3,000,000 Cost: 2020 1,200,000 2021 600,000 Gross profit: 2020 800,000 2021 400,000 Contract billings: 2020 1,500,000 2021 1,500,000 ADH recognizes revenue over time with respect to these contracts. What would be the journal entry made in 2020 to record revenue
Answer:
Dr Construction $800,000
Dr Cost of construction $1,200,000
Cr Revenue form long-term contracts $2,000,000
Explanation:
Preparation of the journal entry made in 2020 to record revenue.
Based on the information given What would be the journal entry made in 2020 to record revenue is
Dr Construction $800,000
Dr Cost of construction $1,200,000
Cr Revenue form long-term contracts $2,000,000
($800,000+$1,200,000)
(Being to record revenue)
What is a factor that does NOT go into an economic analysis?
1. marginal analysis
2. societal concerns
3 ethical concerns
4 sunk costs
Expenses recognition Sun Microsystems uses the accrual basis of accounting and recognizes revenue at the Lime it sells goods or renders services. It applies U.S. GAAP and reports in U.S. dollars. Indicate the amount of expenses (if any) the firm recognizes during the months of June. July, and August in each of the following hypothetical transactions. The firm does the following:
a. Pays $180,000 on July 1 for one year’s rent on a warehouse beginning on that date.
b. Receives a utility bill on July 2 totaling $4,560 for services received during June. It pays the utility bill during July.
c. Purchases office supplies on account costing $12,600 during July. It pays $5,500 for these purchases during July and the remainder during August. Office supplies on hand on July 1 cost $2,400, on July 31 cost $9,200, and On August 31 cost $2,900.
d. Pays $7,200 on July 15 for property taxes on office facilities for the current calendar year.
e. Pays $2,000 on July 15 as a deposit on a custom-made delivery van that the manufacturer will deliver on September 30.
f. Pays $4,500 on July 25 as an advance on the August salary of an employee.
g. Pays $6,600 on July 25 for advertisements that appeared in computer journals during June.
Answer:
Sun Microsystems
Amount of Expenses to recognize during the months of June, July, and August in each of the following transactions:
a. Rent Expense = $30,000
b. Utility Expense = $4,650
c. Supplies Expense = $9,700
d. Property Taxes = $1,800
e. No expense is recognized.
f. Salary Expense = $4,500
g. Advertising Expense = $6,600
Explanation:
Data and Calculations:
a. Rent Expense = $180,000/12 * 2 = $30,000 Rent Prepaid $150,000
b. Utility Expense $4,560
c. Supplies Expense $9,700 ($12,600 - $2,900)
d. Property Taxes = $7,200 *3/12 = $1,800
e. No expense is recognized for the advance payment for delivery van.
f. Salary Expense $4,500
g. Advertising Expense $6,600
On January 1, 2021, the Dayton Auto Parts Company acquired nine identical assembly robots for a total of $594,000 cash. The robots had an expected useful life of 10 years and an expected residual value of $54,000 in total. Dayton uses straight-line depreciation.1. What is the journal entry for the acquisition
Answer:
the journal entry for the acquisition
Debit : Assembly Robots $594,000
Credit: Cash $594,000
Explanation:
First, identify if the item is an asset, liability, equity or income. The assembly robots represents Assets as economic benefits will flow into the entity as a result of their use.
Next, assets are initially measured at their cost which is purchase price plus any costs directly related to placing the asset in the location and condition intended for use by management.
Cost of the Assembly Robots is $594,000
The financial information below presents selected information from the financial statements of Pelican Company. Sales revenue during the current year was $13,340,300 and cost of goods sold was $8,914,195. All of Pelican's sales are made on account and are due within 30 days. Prior Year Current Year Cash and cash equivalents $ 570,330 $ 635,780 Accounts receivable 4,730,000 3,818,000 Inventory 938,360 1,277,440 Total current assets 8,250,030 8,210,100 Total assets 11,118,020 10,998,000 Total current liabilities 7,830,300 6,306,000 Total liabilities 8,467,900 8,276,700 Required: Current ratios as of the end of the current and prior year. Calculate the receivables turnover ratio for the current year. Calculate the days to collect for the current year. Calculate the inventory turnover ratio for the current year. Calculate the days to sell for the current year.
Required A
Required B
Required C
Required D
Required E
Current ratios as of the end of the current and prior year. (Round your answers to 2 decimal places.)
Current Year Prior Year
Current Ratio
Required A
Required B
Required C
Required D
Required E
Calculate the receivables turnover ratio for the current year. (Round your answer to 2 decimal places.)
Receivables Turnover Ratio
Complete this question by entering your answers in the tabs below.
Required A
Required B
Required C
Required D
Required E
Calculate the days to collect for the current year. (Round your intermediate calculations. Round your final answer to 2 decimal places.)
Days to Collect
Required A
Required B
Required C
Required D
Required E
Calculate the inventory turnover ratio for the current year. (Round your answer to 2 decimal places.)
Inventory Turnover Ratio
Required A
Required B
Required C
Required D
Required E
Calculate the days to sell for the current year. (Round your intermediate calculations. Round your final answer to 2 decimal places.)
Days to Sell
Answer:
Current Ratio 1.05
Receivable turnover days 129 days
Days to collect 2.83
Inventory Turnover days 38 days
Days to sell 9.61
Explanation:
Current Ratio : Total Current Assets / Total Current Liabilities
Current Ratio : 8,250,030 / 7,830,300 = 1.05
Receivable turnover days : ( Accounts Receivable / Total Sales ) * 365 days
Receivable turnover days : ( 4,730,000 / 13,340,300 ) * 365
Receivable turnover days : 129 days
Days to collect : 365 days / Accounts receivable turnover days
Days to collect : 365 / 129 days = 2.83
Inventory turnover days : ( Inventory / Cost of goods sold ) * 365
Inventory turnover days : ( 938,360 / 8,914,195 ) * 365
Inventory turnover days : 38 days
Days to sell : 365 days / Inventory turnover ratio
Days to sell : 365 / 38 days = 9.61
The customer-service department at Park-E Bank complains it is unable to keep track of its new business clients as the department handling data compilation has failed to enable a free exchange of information between the two departments. This has hindered the customer-service department to follow up on its customers' queries and update their relationship status with the bank. This has also impacted the department's sales target. This scenario exemplifies conflict due to
Answer:
task interdependence
Explanation:
Task interdependence is a form of conflict that occurs when there is more than one department needed to complete a task, and when one of them fails, consequently the other is affected and the task is not completed effectively. This is the case of Park-E Bank, which complains that it is unable to keep up with its new commercial customers, as the department that deals with the compilation of data has failed to allow the free exchange of information between the two departments.
The interdependence of tasks is a conflict that affects organizational activities as a whole, and can bring essential problems for the correct flow of business, it is necessary then that there is a correct management, control and coordination of tasks to reduce the bottlenecks found in organizational processes and improve continuous improvement that is beneficial for all organizational systems to operate correctly.
Old Economy Traders opened an account to short-sell 1,300 shares of Internet Dreams at $46 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $46 to $59, and the stock has paid a dividend of $3.50 per share. a. What is the remaining margin in the account? (Round your answer to the nearest whole dollar.)
Answer: $8450
Explanation:
First, we need to calculate the total initial asset which will be the value of shares sold and the margin which will be:
= (1300 × $46) + (50% × 1300 × $46)
= $59800 + $29900
= $89700
We will then calculate total liability which will be:
= (1300 × $59) + (1300 × $3.50)
= $76700 + $4550
= $81250
The remaining margin will then be:
= $89700 - $81250
= $8450
Mervon Company has two operating departments: Mixing and Bottling. Mixing has 330 employees and Bottling has 220 employees. Indirect factory costs include administrative costs of $192,000. Administrative costs are allocated to operating departments based on the number of workers. Determine the administrative costs allocated to each operating department.
Answer:
Mixing= $115,199.7
Bottling= $76,799.8
Explanation:
First, we need to calculate the allocation rate for Administrative costs:
Allocation rate= total estimated costs for the period/ total amount of allocation base
Allocation rate= 192,000 / (330 + 220)
Allocation rate= $349.09 per employee
Now, we can allocate costs:
Mixing= 330*349.09= $115,199.7
Bottling= 220*349.09= $76,799.8
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $94,000. Manufacturers Southern's fiscal year ends December 31. (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.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $18,200 at the beginning of each period Economic life of asset 2 years Fair value of asset $138,287 Implicit interest rate 6% Required: 1. Show how International Machines determined the $18,200 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
Answer:
1. $18,200 per quarter
2. 1-Jan-21
Dr Lease Receivable $138,287
Dr Cost of Goods Sold $94, 000
Cr Inventory of Equipment $94,000
Cr Sales Revenue $138,287
Dr Cash $18,200
Cr Lease Receivable $18,200
1-Apr-21
Dr Cash $18,200
Cr Lease Revenue $1,801
Cr Lease Receivable $16,399
Explanation:
1. Calculation to Show how International Machines determined the $18,200 quarterly lease payments
First step is to find the Present value of annuity at period start
Lease term=n = 2 x 4 quarters
Lease term=n= 8 periods
Fair value of asset = $138,287
Implicit interest rate, i = 6%, quarterly rate = 6%/4 Implicit interest rate= 1.5%
Present value of annuity at period start at 1.5%, 8 periods
Present value of annuity at period start = 7.5982
Now let determine the quarterly payments
Quarterly payments= $138,287/7.5982
Quarterly payments = $18,200 per quarter
Therefore the quarterly lease payments is $18,200
2) Preparation of the appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
1-Jan-21
Dr Lease Receivable $138,287
Dr Cost of Goods Sold $94, 000
Cr Inventory of Equipment $94,000
Cr Sales Revenue $138,287
(To record lease at its beginning)
Dr Cash $18,200
Cr Lease Receivable $18,200
(To record lease at its beginning)
1-Apr-21
Dr Cash $18,200
Cr Lease Revenue $1,801
Cr Lease Receivable $16,399
(To record second lease payment)
Calculation of lease revenue as on April 1, 2021
Lease revenue = ($138,287 – $18,200) x 1.5%
Lease revenue= $120,087×1.5%
Lease revenue= $1,801
Lease receivable = $18,200 – $1,801
Lease receivable = $16,399
Eco Cycle, an eco-friendly bicycle manufacturer has developed a new product known as Green Ride. Green Ride is a stationary bicycle for home use which generates power for electronics and household appliances, such as televisions, video game consoles, dishwashers, and washing machines. Given the recent shift toward sustainable living, renewable energy sources, and a focus on positively impacting climate change, Eco Cycle expects this product to do well in the market. While the company knows that all consumers follow a similar adoption process for products, not all consumers follow it at the same time. In one or more fully formed paragraphs, identify each of the five types of adopters and explain in detail the characteristics of each type of adopter for Eco Cycle and the Green Ride.
Answer:
Explanation:
The Green Ride is an ecologically friendly bicycle product from Eco-Cycle. It is to be utilized at home to produce power for gadgets and family things in this way giving an inexhaustible wellspring of energy.
The milestone book " Diffusion of Innovations" by sociologist Everett Rogers in 1962 originally sorted the adopter types premise on specific attributes as recorded beneath:
1) Innovators: These arrangement of individuals receive new innovation or product as they are recently dispatched. This arrangement of individuals are prepared to face challenges and they are the boldest. For this situation, some corporates may get intrigued to evaluate the Green Ride alternative to perceive how it tends to be utilized to save cost on the force front.
2) Early Adopters: This arrangement of individuals make trends and need to see them on the ball, subsequently they will become the early adopters. For this situation, individuals who are lethargic towards open-air exercises will get their hands on this bicycle as it is locally (home) established and be the early adopter of this product.
3) Early Majority: These arrangements of individuals settle on choices dependent on utilities and the useful benefits of the product. For this situation, everyone who is worried about the use and benefits of Green Ride will get input from Early Adopters and can continue likewise.
4) Late Majority: This arrangement of individuals imparts a few qualities to the Early Majority set of individuals yet they are generally careful prior to submission. For this situation, youngsters may not get intrigued to utilize a bicycle which is kept to Indoors as it were.
5) Laggards: These arrangements of individuals are delayed to adjust to new innovation or product. They will in general embrace just when they are constrained. For this situation, the arrangement of individuals who are customary bicycle clients won't be prepared to acknowledge this new product except if compelled to do as such because of the limited development during circumstances such as the present.
We have implicitly assumed that Ace Airline starts paying the salary of $15,000 per month only at the end of the two-month school. Such a practice drew significant complaints from the trainees. Ace decided to change its practice and pay the trainees during the training session as well. How would the new policy change Ace's class size
Answer:
Ace Airline class size will increase as more trainees would be willing to work with Ace Airlines.
Explanation:
Ace airlines is paying trainees $15,000 per month after they complete their training. There was a complain by trainees that they are not paid for the training and the training expense is born by the trainees themselves. Ace decides to pay the trainees for the training sessions as well and this will attract more trainees to work for Ace.
Ready Company has two operating (production) departments: Assembly and Painting. Assembly has 150 employees and occupies 44,000 square feet; Painting has 100 employees and occupies 36,000 square feet. Indirect factory expenses for the current period are as follows: Administration$80,000 Maintenance$100,000 Administration is allocated based on workers in each department; maintenance is allocated based on square footage. The amount of maintenance expenses that should be allocated to the Painting Department for the current period is:Multiple Choice$110,000.$55,000.$103,000.$48,000.$45,000.
Answer:
$77,000
Explanation:
Calculation to determine what The amount of maintenance expenses that should be allocated to the Painting Department for the current period is:
Administration=$80,000×[100/(150 + 100)] Administration=$32,000
Maintenance=$100,000×[36,000/(44,000 + 36,000)]
Maintenance=$45,000
Total$ 77,000
($32,000+$45,000)
Therefore The amount of maintenance expenses that should be allocated to the Painting Department for the current period is:$77,000
MillerCoors Brewing Company is the world’s fifth largest brewer. In the United States, its tie to the magical appeal of the Rocky Mountains is one of its most powerful trademarks. Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the Operating Activities (O), Investing Activities (I), or Financing Activities (F) section of the statement or use (NA) if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement.)
Answer:
1. Purchase of stock. FINANCING ACTIVITIES.
Financing activities relate to transactions that involve the capital of the company. They include long term debt and equity. In this case, the company is buying back its own shares so this falls under Financing activities as it has to do with the company's own capital.
2. Principal payment on long-term debt. FINANCING ACTIVITIES.
Principal repayment retires long term debt and as mentioned above, financing activities relate to activities that involve long term debt.
3. Proceeds from sale of properties. INVESTING ACTVITIES.
Properties are fixed assets and transactions involving these are considered investing activities so the proceeds from a sale of properties would rightfully be an investing activity.
4. Inventories (decrease). OPERATING ACTIVITIES.
Transactions that have to do with the day to day operations of the business fall under operating activities and this includes inventories decreasing.
5. Accounts payable (decrease). OPERATING ACTIVITIES.
Operations of the business includes accounts payables decreasing as well.
6. Depreciation and amortization. OPERATING ACTIVITIES.
Depreciation and amortization arise from using the fixed assets for day to day operations so this will fall under Operating activities.
Assume the following information for Splish Brothers Corp.
Accounts receivable (beginning balance) $143,000
Allowance for doubtful accounts (beginning balance) 11,470
Net credit sales 950,000
Collections 902,000
Write-offs of accounts receivable 5,500
Collections of accounts previously written off 2,300
Uncollectible accounts are expected to be 9% of the ending balance in accounts receivable.
1. Prepare the entry to record the write-off of uncollectible accounts during the period.
2. Prepare the entries to record the recovery of the uncollectible account during the period.
3. Prepare the entry to record bad debt expense for the period.