Answer:
the earnest money that must be paid with a contract is deposit to the seller that shows the intention of completing the transaction
earnest money is the money paid to a merchant or seller to complete a contract or money paid to a merchant / seller to show good faith in the transaction.
Sharon transfers to Russ a life insurance policy with a cash surrender value of $30,000 and a face value of $100,000 in exchange for real estate. Russ continues to pay the premiums on the policy until Sharon dies 7 years later. At that time, Russ has paid $14,000 in premiums, and he collects the $100,000 face value. How much of the proceeds, if any, are taxable to Russ?
Answer: $56,000
Explanation:
When a life insurance policy is transferred the taxable amount at death is the value of proceeds that the policy gives less the Cash surrender value and the premiums that have already been paid by the formula;
Taxable Proceeds = Total Proceeds received - (Cash Surrender Value + Premiums paid)
Taxable Proceeds = 100,000 - (30,000 + 14,000)
Taxable Proceeds = $56,000
The Pandora Company made the following errors on 12/31/19: Recorded the expiration of prepaid insurance by debiting Sales Revenue and crediting Depreciation Expense for $12. Recorded the issuance of 10-year bonds at par value by debiting Unearned Revenue and crediting Common Stock for $13. 12/31/19 Total Stockholders’ Equity is in error by:
Answer:
Total Stockholders’ Equity is in error by: $25.
Explanation:
It is important to remember that Stockholders’ Equity consist of Retained Profit and Common Stock and effect on the errors on these elements ultimately affects Stockholders’ Equity.
The correct entry for expiration of prepaid insurance
Insurance Expense $12 (debit)
Prepaid Insurance $12 (credit)
Effect on net profit of the error : overstatement of profit by $12
Effect on common stock of the error : none
The correct entry for Issuance of bonds :
Investments in Bonds $12 (debit)
Cash $12 (credit)
Effect on net profit of the error : none
Effect on common stock of the error : overstatement by $13
Conclusion :
Total Effect on Stockholders’ Equity = Overstatement of $25.
The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $100,000 a year. The firms that employ designers of normal ability each collect $400,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. However, the 200th company employs Janus Jacobs, an unusually talented designer. Because of Jacobs's talent, this company collects $1,000,000 in revenue a year.
Required:
a. How much will Jacobs earn?
b. What proportion of his annual salary will be economic rent?
c. Will the advertising company for which Jacobs works be able to earn an economic profit?
Answer:
a. $700,000
b. 6/7 or 85.7%
c. No they will not.
Explanation:
a. Jacobs will earn the normal salary that the other designers in the other companies are getting in addition to the incremental income he brings to the company as a result of his talents.
Incremental income = Revenue with Jacobs - Revenue without Jacobs
= 1,000,000 - 400,000
= $600,000
Jacobs earnings = Normal designer earnings + incremental income
= 100,000 + 600,000
= $700,000
b. Economic rent is the excess amount that the company is paying Jacobs over what it should normally cost to get a designer.
Normal cost of designer is $100,000. Company is therefore paying an economic rent of $600,000.
Proportion of Jacobs salary that is economic rent = [tex]\frac{Economic rent}{Jacobs annual earning}[/tex]
= [tex]\frac{600,000}{700,000}[/tex]
= 6/7 or 85.7%
c. The company hiring Jacobs will not be making an economic profit because for them to make an economic profit they would have to be making more than the $400,000 that the other firms make. They cannot make this amount because for them to do so they would have to reduce the amount they pay Jacobs. If they do so, Jacobs would leave for greener pastures and then they would be making the same $400,000 that the rest are making.
HELP ASAP
Since infants and toddlers need a variety of experiences in early childhood, it is
important that the home setting and the child care setting strive to be as different as
possible.
A. True
B. False
Answer:
I think that it is true to an extent
True or False: All other things being equal, firms exhibiting high degrees of operating leverage exhibit lower levels of business risk. This statement is: True False
Answer: False
Explanation:
Operating Leverage is used to measure how much a change in sales translates to a change in income. In general, a higher operating leverage means that a small change in sales leads to a higher change in income. This is quite risky because it shows that even a small error when forecasting sales can lead to a larger error in the cash flow that will be expected from the sales. This makes forecasting harder and increases business risk.
If the Fed lowers the interest rate, then A. only consumption expenditure decreases. B. only investment decreases. C. consumption expenditure decreases and investment increases. D. net exports will increase. E. both consumption expenditure and investment decrease.
Answer: D. net exports will increase.
Explanation:
Lower interest rates decrease the value of a currency because less investors will invest in it. This reduced currency value will mean that exports will become cheaper as they are quoted in the domestic currency. As the exports are cheaper, more countries will buy them leading to an increase in Net exports.
A 20-year maturity bond with par value $1,000 makes semiannual coupon payments at a coupon rate of 8%. Find the bond equivalent and effective annual yield to maturity of the bond if the bond price is $950. (Round your intermediate calculations to 4 decimal places. Round your answers to 2 decimal places.)
Answer:
The bond equivalent yield to maturity = 8.52%
The effective annual yield to maturity of the bond = 8.71%
Explanation:
Here, we start with calculating the yield to maturity YTM using the financial calculator
To find the YTM, we need to put the following values in the financial calculator:
N = 20*2 = 40;
PV = -950;
PMT = [8%/2]*1000 = 40;
FV = 1000;
Press CPT, then I/Y, which gives us 4.26
So, Periodic Rate = 4.26%
Bond equivalent yield = Periodic Rate * No. of compounding periods in a year
= 4.26% * 2 = 8.52%
effective annual yield rate = [1 + Periodic Rate]^(No. of compounding periods in a year) - 1
= [1 + 0.0426]^2 - 1 = 1.0871 - 1 = 0.0871, or 8.71%
Suppose your organization used function point analysis to estimate costs for software projects. How would the expertise level of a recently hired programmer affect your calculation of their function points on a monthly basis when compared to an older, more experienced programmer
Answer:
Please see explanations below
Explanation:
Cost estimation refers to the process of forecasting costs including other resources to manage, make decisions and to plan and set standards. It is also the approximation of product, project and service costs from available details in several documents and statements. Preparing precise and accurate cost estimation is important for a firm because such would be relied upon by customers hence could result to variant allocation of resources and misinterpretation to them and functional manager who control resources; where wrong cost estimations are made.
Function point analysis clears the facts that software function comes with different challenges which is dependent on the available resources. For a newly hired programmer, he could spend additional time while rating more of the functions assigned to him. Such could be rated as higher complexity hence create extra hour and also add to cost estimates because complexity estimates is a determinant of different programme features hence the more experienced and professional a programmer is, the lower the total cost of the whole programme process.
A firm currently sells $1,750,000 annually of an expensive product line. That firm is considering a similar, less expensive, discount line, and projects sales of $380,000. The discount line is expected to reduce sales of the expensive product line to $1,575,000. What is the incremental revenue associated with the discount product line?
Answer:
$175,000
Explanation:
A firm currently makes an amount of $1,750,000 annually from an expensive product line
The firm projects a sales of $380,000
The discount line is expected to cause a reduction in the sales of the expensive product line to $1,575,000
Therefore, the incremental revenue associated with the discount product line can be calculated as follows
= $1,750,000-$1,575,000
= $175,000
Hence the incremental revenue associated with the discount product line is $175,000
Steve goes to Tri-State University and pays $40,000 in tuition. Steve works a part-time job to pay for his schooling and has an AGI of $17,000. How much is his American Opportunity Credit? Group of answer choices
Answer:
$2,500
Explanation:
The calculation of American opportunity tax credit is shown below:-
According to the given situation, Steve's part-time job wouldn't come in between his not applying for the credit as the AGI is lower than the applying number.
Therefore, the credit would be 100% of first is
= $2,000 + 25% (Increased)
= $2,500
Assume that Kish Inc. hired you as a consultant to help estimate its cost of capital. You have obtained the following data: D 0 = $0.90; P 0 = $27.50; and g = 7.00% (constant). Based on the DCF approach, what is the cost of equity from retained earnings? 9.29% 9.68% 10.08% 10.50% 10.92%
Answer:
10.50%
Explanation:
According to the given situation, the solution of cost of equity from retained earning is shown below:-
Cost of equity = (D0 × (1 + g) ÷ P0) + g
Now we will put the values into the above formula.
= (0.90 × (1 + 0.07) ÷ 27.50) + 0.07
= 10.50%
Therefore for determining the cost of equity from retained earning we simply applied the above formula.
Business level strategy addresses two related issues: what businesses should a corporation compete in and how can these businesses be managed so that they create synergy.
Answer:
This statement is false, because it is the CORPORATE level strategy that addresses these two related issues.
Explanation:
The corporate level strategy can be defined as the strategy whose focus is to create synergy to effectively manage its competing business units and which constitute the organizational whole. Therefore, at this strategic level, the focus is to establish a focus to maximize profitability and positioning in a diverse organization.
A current liability is a debt that is reasonably expected to be paid a. out of cash currently on hand b. within one year c. out of currently recognized revenues d. between 6 months and 18 months
Answer: within one year
Explanation:
Current liabilities are the liabilities that are incurred by a firm and must be settled within a year.
Typically, the current liabilities are settled by using the current assets. Examples of current liabilities are the accounts payable, noted payable, dividends and the short-term debt.
The market has an expected rate of return of 11.4 percent. The current nominal expected yield on U.S. Treasury bills is 4.3 percent. The inflation rate is 2.2 percent. What is the market risk premium? (round answer to whole number with two decimal points: i.e., use 1.23 percent instead of 0.0123)
Answer:
7.1%
Explanation:
According to the CAPM,
expected market return = risk free rate + market risk premium
11.4% = 4.3% + market risk premium
market risk premium = 11.4% - 4.3% = 7.1%
On January 1, you sold short one round lot (that is, 100 shares) of Four Sisters stock at $21 per share. On March 1, a dividend of $2 per share was paid. On April 1, you covered the short sale by buying the stock at a price of $15 per share. You paid 50 cents per share in commissions for each transaction. What is the value of your account on April 1?
Answer:
The value of your account on April 1 is $300
Explanation:
Proceed from short sales
Sales proceed = $2,100 ($21 * 100 shares)
Less Commission= $50 ($0.50 * 100 shares)
Proceeds = $2,050
Dividend payment
= 100 shares * $2
=$200
Total Cost of buy back
Buy back= $1,500 ($15 * 100 shares)
Add commission= $50 ($0.50 * 100 shares)
Total cost = $1,550
Value of Account on April 1
Proceed = $2,050
Less Dividend payment = $200
Less Total cost of buy back= $1,550
Value of Account = $300
Therefore, the value of your account on April 1 is $300
Zarina Corp. signed a new installment note on January 1, 2018, and deposited the proceeds of $15,000 in its bank account. The note has a two-year term, compounds 4 percent interest annually, and requires an annual installment payment on December 31. Zarina Corp.
Required:
1. Use an online application, such as the loan calculator with annual payments at mycalculators.com, to generate an amortization schedule. Enter that information into an amortization schedule with the following headings: Year, Beginning Notes Payable, Interest Expense, Repaid Principal on Notes Payable, and Ending Notes Payable.
2. Prepare the journal entry on January 1, 2018, the adjusting journal entry to accrue interest on March 31, 2018. Assuming the journal entry from requirement 3 also is recorded on June 30, September 30, and December 31, 2018, prepare the journal entry to record the first annual installment payment on December 31, 2018.
3. Calculate the amount of interest expense that should be accrued for the quarter ended March 31, 2019.
Answer:
1)
the annual installment = $7,952.94
total Interest paid = $905.88
Year Beginning Interest Repaid Ending
Notes Payable Expense Principal Notes Payable
1 $15,000 $600 $7,352.94 $7,647.06
2 $7,647.06 $305.88 $7,647.06 $0
2)
March 31, 2018, accrued interests on notes payable
Dr Interest expense 150
Cr Interest payable 150
June 30, 2018, accrued interests on notes payable
Dr Interest expense 150
Cr Interest payable 150
September 30, 2018, accrued interests on notes payable
Dr Interest expense 150
Cr Interest payable 150
December 31, 2018, accrued interests on notes payable
Dr Interest expense 150
Cr Interest payable 150
December 31, 2018, first installment on notes payable
Dr Notes payable 7,352.94
Dr Interest payable 600
Cr Cash 7,952.94
3)
March 31, 2019, accrued interests on notes payable
Dr Interest expense 76.47
Cr Interest payable 76.47
1. The Amortization schedule is:
Year Beginning Notes Interest expense Repaid Principle Ending notes
Payable on notes payable Payable
2018 15,000 600 7,353 7,647
2019 7,647 306 7,647 0
The annual payment is an annuity and can be found as:
Loan= Annuity x Present value interest factor of annuity, 4%, 2 years
15,000 = Annuity x 1.886
Annuity = 15,000 / 1.886
= $7,953
Principal repaid in first year = Amount paid - interest
= 7,953 - (15,000 x 4%)
= 7,953 - 600
= $7,353
Principal repaid in second year
= 7,953 - (4% x 7,647)
= $7,647
2.
Date Account title Debit Credit
Jan 1, 2018 Cash $15,000
Notes Payable $15,000
Date Account title Debit Credit
March 31, 2018 Interest expense $150
Interest payable $150
Working:
= Loan amount x Rate x period of loan so far
= 15,000 x 4% x 3/ 12 months
= $150
Date Account title Debit Credit
Dec 1, 2018 Interest payable $600
Notes payable $7,353
Cash $7,953
3. Interest accrued March 31,2019:
= Loan amount in second year x 4% x 3/12 months
= 7,647 x 4% x 3/12
= $76
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An aging of a company's accounts receivable indicates that the estimate of uncollectible accounts totals $6,400. If Allowance for Doubtful Accounts has a $1,300 debit balance, the adjustment to record the bad debt expense for the period will require a
Answer:
Debit to Bad Debt Expense for $7,700
Explanation:
Based on the information given we were told that company's accounts receivable shows the estimate of uncollectible accounts totals of the amount of $6,400 while the Allowance for Doubtful Accounts has the amount of $1,300 as the debit balance. This means that the adjustment to record the bad debt expense for the period will require a
Debit to Bad Debt Expense for $7,700 Calculate as:
Dr Bad Debts 7700
(6300+1300)
Cr To Allowance for Doubtful Accounts 7700
Novak Inc.’s $11 par value common stock is actively traded at a market price of $14 per share. Novak issues 5,700 shares to purchase land advertised for sale at $76,000. Journalize the issuance of the stock in acquiring the land.
Answer:
DR Land $79,800
CR Common stock $62,700
CR Paid-in capital in excess of par $17,100
(To record land purchased by stock issuance)
Working
Land
= $14 * 5,700
= $79,800
Common Stock
= $11 par value * 5,700
= $62,700
Paid-in capital in excess of par
= $79,800 - $62,700
= $17,100
Calculate the average and marginal tax rates in the following table. (Hint: Enter your answers as decimals and do not round when computing tax rates. For example, 8.25% should be entered as "8.25" and not "0.825")
Total Taxable Income Total Tax Due Average Tax Rate Marginal Tax Rate
(Dollars) (Dollars) (Percentage) (Percentage)
0 0 0 0
2,000 130
10,000 650
20,000 1,300
100,000 6,500
The tax rates shown in this table are:________.
True or False: If the marginal tax rate is equal to the average tax rate, then the average tax rate must remain the same.
A. True
B. False
Sean, Yvette, and Bob are the only voters in a small society and are considering whether to publicly finance a project.
Indicate in the following table what each individuals vote would be and whether the public project will be funded
Name Marginal Cost Marginal Benefit Vote
Sean $100 $108
Yvette $100 $12
Bob $100 $125
Total $300 $245
If this same project were taking place in the private sector, a firm ________ fund the project.
In private markets, decisions to provide goods or services to the market are generally made if marginal benefits ________ marginal costs. in comparison, the decisions to provide goods and services by governments are made through _______. as a result, governments may approve projects whose costs _________ their benefits.
Answer:
1. a. Average Tax rate = 130/2,000 = 6.5%
Marginal Tax Rate = (130 - 0)/ (2,000 - 0) = 6.5%
b. Average Tax rate = 650/10,000 = 6.5%
Marginal Tax Rate = [tex]\frac{650-130}{10,000-2,000}[/tex] = 6.5%
c. Average Tax rate = 1,300/20,000 = 6.5%
Marginal Tax Rate = [tex]\frac{1,300-650}{20,000-10,000}[/tex] = 6.5%
d. Average Tax rate = 6,500/100,000 = 6.5%
Marginal Tax Rate = [tex]\frac{6,500-1,300}{100,000-20,000}[/tex] = 6.5%
2. The tax rates shown in this table are: Proportional
Proportional Taxes take the same percentage of income across all income groups.
3. A. True
4. Sean and Bob would both vote yes as the Marginal Benefit of the project exceeds their marginal cost but project will not be funded in the end as the Total Marginal Cost exceeds Total Marginal benefit. Sean and Bob may want to pay but Yvette will not.
5. If this same project were taking place in the private sector, a firm would not fund the project.
6. In private markets, decisions to provide goods or services to the market are generally made if marginal benefits exceed marginal costs
7. As a result, governments may approve projects whose costs exceed their benefits.
Madison Company's perpetual inventory records indicate that $875,300 of merchandise should be on hand on October 31. The physical inventory indicates that $781,900 is actually on hand.
Required:
Journalize the adjusting entry for the inventory shrinkage for madison company for the year ended October 31.
Answer:
Dr Cost of Goods Sold $93,400
Cr Inventory $93,400
Explanation:
The closing inventory in perpetual inventory is $875,300 which is recorded in excess of its inventory in hand $781,900 which means that additional $93,400 must be adjusted in Cost of Goods Sold.
The journal entry on October 31, 2020, is given as under:
Dr Cost of Goods Sold $93,400
Cr Inventory $93,400
At the beginning of June, Bezco Toy Company budgeted 24,000 toy action figures to be manufactured in June at standard direct materials and direct labor costs as follows: Direct materials $36,000 Direct labor 8,640 Total $44,640 The standard materials price is $0.6 per pound. The standard direct labor rate is $9 per hour. At the end of June, the actual direct materials and direct labor costs were as follows: Actual direct materials $33,400 Actual direct labor 8,000 Total $41,400 There were no direct materials price or direct labor rate variances for June. In addition, assume no changes in the direct materials inventory balances in June. Bezco Toy Company actually produced 21,600 units during June. Determine the direct materials quantity and direct labor time variances. Round your per unit computations to two decimal places, if required. Enter a favorable variance as a negative number using a minus sign and an unfavorable variance as a positive number. Direct materials quantity variance $ -3,600 Unfavorable Direct labor time variance $ -864 Unfavorable Feedback
Answer:
Direct material quantity variance = $1,000
Direct labor time variance = $224
Explanation:
Calculation of the direct materials quantity
Direct material quantity variance = Actual quantity at standard price - Standard Quantity at standard price
Direct material quantity variance = $33,400 - (($36,000/24,000) * 21,600
Direct material quantity variance = $$33,400 - ($1.5 * $21,600)
Direct material quantity variance = $33,400 - $32,400
Direct material quantity variance = $1,000
Calculation of direct labor time variances
Direct labor time variance = Actual labor time at standard cost - Standard labor time at standard cost
Direct labor time variance = $8,000- (($8,640/24,000) * $21,600
Direct labor time variance = $8,000 - (0.36) * $21,600
Direct labor time variance = $8,000 - $7,776
Direct labor time variance = $224
Sweeties, Inc., manufactures a sugar product by a continuous process, involving three production departments-Refining, Sifting, and Packing. Assume that records indicate that direct materials, direct labor, and applied factory overhead for the first department, Refining, were $369,000, $146,000, and $97,600, respectively. Also, work in process in the Refining Department at the beginning of the period totaled $30,200, and work in process at the end of the period totaled $28,400.
Required:
A1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.
A2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.
A3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.
B. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.
Answer:
A1) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct materials.
Dr Work-in process: Refining Department 369,000
Cr Materials inventory 369,000
A2) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for direct labor.
Dr Work-in process: Refining Department 146,000
Cr Wages payable 146,000
A3) On September 30, journalize the entry to record the flow of costs into the Refining Department during the period for factory overhead.
Dr Work-in process: Refining Department 97,600
Cr Manufacturing overhead: Refining Department 97,600
B. On September 30, journalize the entry to record the transfer of production costs to the second department, Sifting.
Dr Work-in process: Sifting Department 614,400
Cr Work-in process: Refining Department 614,400
$30,200 - $28,400 + $369,000 + $146,000 + $97,600 = $614,400
A mutual fund sponsor has three different income funds, holding AAA rated debt securities with similar maturities. Assuming that the expense ratios for the funds are identical, which fund would have the lowest yield from investment income?
Answer: C. Municipal Bond Fund
Explanation:
Municipal Bonds would be the fund with the lowest yield from investment income. This is assuming they are all AAA rated debt securities with similar maturities. This is because Municipal bonds are tax exempt and not very risky so their yields will be quoted as less as they do not have to compensate investors on tax losses.
Corporate Bonds are the riskiest of the options given so they will have the highest yield as they have to compensate for both risk and taxes.
Government Bonds are considered very low when it comes to risk but they are taxed by the Federal Government so have higher yields to compensate for tax.
Which of the following types of contracts does not fall within the statute of frauds? Select one: A. Contracts not performed within six months B. Contracts for the sale of goods totaling more than $500 C. Contracts for one party to pay the debt of another party if the initial party fails to pay D. Promises made in consideration of marriage E. Agreements related to an interest in land
Answer:
Correct Answer:
C. Contracts for one party to pay the debt of another party if the initial party fails to pay
Explanation:
In a business setting which exist between two parties, when there is a renegation of agreement between the parties involved by one person, then there is consequences. In a situation where the renegation of agreement was deliberate, then, fraud is said to have occurred.
Option C does not fall within the statue of fraud.
The type of contract that does not fall within the statute of fraud is when the one part agrees to pay the debt of another party.
The following are the situations where the fraud could have existed:
Contract not performed for six months. The sale of goods is more than $500.The promise is made for marriage. Agreements are to be done for land.Therefore we can conclude that the type of contract that does not fall within the statute of fraud is when the one part agrees to pay the debt of another party.
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Sunland Company purchases $50,400 of raw materials on account, and it incurs $61,300 of factory labor costs. Journalize the two transactions on March 31, assuming the labor costs are not paid until April.
No. Date Account Titles and Explanation Debit Credit
a) Mar. 31
b) 31
Answer:
A. Mar 31
Dr Raw materials $50,400
Cr Account pay $50,400
B. 31
Dr Factory labour $61,300
Cr Factory wages $61,300
Explanation:
Preparation of the Journal entries for Sunland Company
A. Since we were told that the company purchases the amount of $50,400 of raw materials on account this means that the transaction will be recorded as:
Mar 31
Dr Raw materials $50,400
Cr Account pay $50,400
B. Based on the information given we were told that the company incurs the amount of $61,300 of factory labor costs this means that the transaction will be recorded as:
31
Dr Factory labour $61,300
Cr Factory wages $61,300
Eppich Corporation has provided the following data for the most recent month: Raw materials, beginning balance $ 20,500 Work in process, beginning balance $ 32,800 Finished Goods, beginning balance $ 50,800 Transactions: (1) Raw materials purchases $ 79,100 (2) Raw materials used in production (all direct materials) $ 77,900 (3) Direct labor $ 52,800 (4) Manufacturing overhead costs incurred $ 92,500 (5) Manufacturing overhead applied $ 72,800 (6) Cost of units completed and transferred from Work in Process to Finished Goods $ 190,000 (7) Any overapplied or underapplied manufacturing overhead is closed to Cost of Goods Sold ? (8) Finished goods are sold $ 221,700 Required: Complete the following T-accounts by recording the beginning balances and each of the transactions listed above.
Answer:
Raw Materials T - Account
Debit :
Beginning Balance $ 20,500
Raw materials purchases $ 79,100
Total $99,600
Credit :
Raw materials used in production $ 77,900
Closing Balance $ 21,700
Total $99,600
Overheads T - Account
Debit :
Manufacturing overhead costs incurred $ 92,500
Totals $ 92,500
Credit :
Manufacturing overhead applied $ 72,800
Understatement of Overheads $ 19,700
Totals $ 92,500
Work In Process T - Account
Debit :
Beginning Work In Process $ 32,800
Raw materials $ 77,900
Direct Labor $ 52,800
Manufacturing overhead applied $ 72,800
Totals $236,300
Credit :
Transferred to Finished Goods $ 190,000
Ending Work In Process $46,300
Totals $236,300
Finished Goods T - Account
Debit :
Beginning Balance $ 50,800
Transferred from Work In Process $ 190,000
Totals $240,800
Credit :
Trading Account $ 221,700
Ending Balance $ 19,100
Totals $240,800
Cost of Goods Sold = $241,400
Explanation:
Cost of Goods Sold = $ 221,700 + $ 19,700 (under-applied overheads)
= $241,400
Research online and find two software tools for bank account reconciliation. Write a 500-word report comparing their features and benefits.
Answer:
1. CashBook
2. BlackLine
Explanation:
1. Cashbook can provide bank reconciliations quick, easily and this software also claims to be affordable. The Cashbook Bank reconciliation module allows reconciliation between the organizations system and the bank accounts statement. CashBook software enables an organizations finance department to set rules which will be followed when the software is performing Bank reconciliation.
2. BlackLine is unified cloud for finance and accounting. The software is updated continuously to provide up to date financial calculations. This software provide accurate bank reconciliation to ease the process of preparing financial statements. The tasks BlackLine can perform includes, balance sheet integrity, close process management and compliance. This software is closely designed with SAP.
When a software is used to perform bank reconciliation the results are accurate and quick as compared to an employee carrying out the task. Bank Reconciliation requires the organizations general ledger to be compared with the bank accounts statement to find out any transactions that are not recorded in the system or are not performed by the bank at the given time. The transactions identified as not recorded in the ledger are recorded in the system by the authorized personnel mostly these transactions are bank charges of which the organization and finance departments employees are unaware of, the rest of the transactions are initiated at the request of the finance department employees (authorized personnel). If a person performs this task it can take hours and hours for that employee to reconcile a single account, as the process will be carried out manually but on the other hand if the same task which is bank reconciliation is performed over the software can provide the results in minutes. The employee performing bank reconciliation can also be utilized to perform other tasks of the department as required this may include preparing invoices, booking receivables, preparing receivable aging and so on, but a software cannot perform these tasks or if the software can then further modules of the software might required to be purchased in order to benefit from other financial services, while on the other hand an employee can have multiple responsibilities. The amount for which an employee for the relevant role can be hired and the amount for which the software is available can be relevant as both are giving benefits, if the software is cheaper but reliable than hiring an employee then the software should be purchased and if hiring an employee for bank reconciliation is cheaper as compared to buying the licence of the software then the employee must be hired as it will save up the organizations cost which can be utilized elsewhere.
Plato answer
Answers may vary.)
Cashbook
Cashbook is an online software tool that offers bookkeeping and accounting solutions. It offers bank reconciliation solutions to help consumers reconcile bank accounts. It offers consumers an online general ledger to keep track of account transactions. Consumers can link their bank accounts directly to Cashbook so the software can automatically download and update the general ledger. Importing bank statements off the Internet means consumers don’t have to waste time typing everything out. Cashbook can make consumers confident that their deductions and additions to the account balance are done correctly. Once an account is balanced, the software allows consumers to search and sort through their data and print off reports. Cashbook also provides customer support so the consumer can have help learning how to use the software. It also offers how-to videos on different aspects of the application. The best aspect of Cashbook is that it is free.
Once consumers set up their records, they are ready to enter the bank opening balances. Without accurate opening balances, the reports created by Cashbook will be incorrect. Go to Cashbook Settings, then to Financial Settings to input the information.
QuickBooks
QuickBooks is an accounting program that keeps track of all your financial transactions. Check writing, money withdrawals, deposits, incurred bank charges, and fees are recorded in QuickBooks and reconciled with the bank’s records. To begin the reconciliation process, consumers first need to compare the beginning balance on their bank statements to the beginning balance on QuickBooks. This establishes that the information in QuickBooks is correct. In order to have correct information, you have to clear transactions directly in the account register within the software. To do this, consumers have to go into their bank account, choose Begin Reconciliation, select the appropriate account, and in the Statement Data field, enter the date of the bank statement to be reconciled. Compare that amount to the amount on the bank statement. Next, find the ending balance on the bank statement and enter it in the Ending Balance field. Also enter any service charges or interest earned. In the field for service charges, consumers enter the name of the expense account to track service charges. For interest, enter the name of the income account to track interest income. QuickBooks will then reconcile the account.
If the beginning balance and the statement don’t match, QuickBooks has a system for checking and correcting the issue. QuickBooks not only offers reconciliation and reports, but also offers graphs, bill tracking, overdue notices, and other services.
Both Cashbook and QuickBooks are accounting software programs to help consumers reconcile their accounts. Cashbook offers a more basic interface for reconciling accounts. It also requires less data entry than QuickBooks. However, it relies only on the information from the bank’s site. This means if there is an error on the bank side, Cashbook will not catch it. QuickBooks requires more data entry, but does more comparison as well. There are more entry fields for line items, such as service charges and interest earned. It also offers additional services that Cashbook doesn’t. When comparing the two, QuickBooks appears to offer consumers more options, reminders, and services.
A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5) taken. The population standard deviation is 1.36.
SAMPLE
1 2 3 4 5 6 7 8 9 10
5 6 9 10 9 10 9 12 8 9
8 9 9 8 12 11 9 9 6 10
6 8 5 7 10 8 10 9 4 12
4 7 3 8 8 6 12 10 4 11
5 4 2 9 8 6 8 6 5 7
Using information from the above table:
Calculate the standard deviation of the sample means, σ×.
Determine the control limits for the mean chart, using A2 and σ× if z=3.
Determine the control limits for the range chart.
Construct mean (using A2) and range control charts by using information from (ii) and (iii).
Comment on your results.
Answer:
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Question : A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5) taken. The population standard deviation is 1.36. SAMPLE 1 2 3 4 5 6 7 8 9 10 5 6 9 10 9 10 9 12 8 9 8 9 9 8 12 11 9 9 6 10 6 8 5 7 10 8 10 9 4 12 4 7 3 8 8 6 12 10 4 11 5 4 2 9 8 6 8 6 5 7 Using information from the above table: Calculate the standard deviation of the sample means, σ×. Determine the control limits for the mean chart, using A2 and σ× if z=3. Determine the control limits for the range chart. Construct mean (using A2) and range control charts by using information from (ii) and (iii). Comment on your results.
Question : A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5) taken. The population standard deviation is 1.36. SAMPLE 1 2 3 4 5 6 7 8 9 10 5 6 9 10 9 10 9 12 8 9 8 9 9 8 12 11 9 9 6 10 6 8 5 7 10 8 10 9 4 12 4 7 3 8 8 6 12 10 4 11 5 4 2 9 8 6 8 6 5 7 Using information from the above table: Calculate the standard deviation of the sample means, σ×. Determine the control limits for the mean chart, using A2 and σ× if z=3. Determine the control limits for the range chart. Construct mean (using A2) and range control charts by using information from (ii) and (iii). Comment on your results.
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Question
Asked Apr 22, 2020
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Question :
A process that is considered to be in control measures an ingredient in ounces. Below are the last ten samples (each of size n=5) taken. The population standard deviation is 1.36.
SAMPLE
1
2
3
4
5
6
7
8
9
10
5
6
9
10
9
10
9
12
8
9
8
9
9
8
12
11
9
9
6
10
6
8
5
7
10
8
10
9
4
12
4
7
3
8
8
6
12
10
4
11
5
4
2
9
8
6
8
6
5
7
Using information from the above table:
Calculate the standard deviation of the sample means, σ×.
Determine the control limits for the mean chart, using A2 and σ× if z=3.
Determine the control limits for the range chart.
Construct mean (using A2) and range control charts by using information from (ii) and (iii).
Comment on your results.
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Expert Answer
Step 1
Note- We’ll answer the first three subparts of the question since the exact one wasn’t specified. Please submit a new question specifying the one you’d like answered.
Given data,
Samples
Observation
1
2
3
4
5
6
7
8
9
10
1
5
6
9
10
9
10
9
12
8
9
2
8
9
9
8
12
11
9
9
6
10
3
6
8
5
7
10
8
10
9
4
12
4
4
7
3
8
8
6
12
10
4
11
5
5
4
2
9
8
6
8
6
5
7
Step 2
The method of standard deviation is similar to the population standard deviation.
Operations Management homework question answer, step 2, image 1
The standard deviation of the sample mean can be calculated by the following formula.
Operations Management homework question answer, step 2, image 2
On substituting the given value in the formula.
Operations Management homework question answer, step 2, image 3
Hence, the standard deviation for the sample mean is 0.60
Step 3
Ans 2:
(x-bar) is calculated by calculating the average of given numbers in a column and Range is calculated by subtracting the largest value from the smallest value.
Samples
Observation
1
2
3
4
5
6
7
8
9
10
1
5
6
9
10
9
10
9
12
8
9
2
8
9
9
8
12
11
9
9
6
10
3
6
8
5
7
10
8
10
9
4
12
4
4
7
3
8
8
6
12
10
4
11
5
5
4
2
9
8
6
8
6
5
7
5.6
6.8
5.6
8.4
9.4
8.2
9.6
9.2
5.4
9.8
Range R
(8-4)
= 4
(9-4)
= 5
(9-2)
= 7
(10-7)
= 3
(12-8)
= 4
(11-6)
= 5
(12-8)
= 4
(12-6)
= 6
(8-4)
= 4
(12-7)
= 5
...
Explanation:
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Polly Smith, a supervisor at Kroger's, was recently evaluated by her subordinates. Their responses indicated that Polly uses Theory X assumptions when dealing with employees. For example, one of the comments indicated that she treats employees as if they:_______.
a. naturally like work.
b. will work toward goals they are committed to.
c. have little ambition.
d. have the potential to accomplish the organization's goals.
e. seek out and accept responsibility.
Answer:
c. have little ambition.
Explanation:
Theory X is a theory that refers to people's behavior at work and suggests that managers tend to think that people are not motivated and don't like to work, avoid responsibility, don't have ambition and because of that, they have to be rewarded or punished to complete their job. According to that, the answer is that for example, one of the comments indicated that she treats employees as if they have little ambition because theory X says that managers have a negative opinion of people.
The other options are not right because they all refer to theory Y in which managers tend to have a positive view of their workers and think that they like their work, are motivated and are willing to take responsibility.
Kipling Company has sales of $1,500,000 for the first quarter of 2016. In making the sales, the company incurred the following costs and expenses.
Variable Fixed
Product costs $500,000 $550,000
Selling expenses 100,000 75,000
Administrative expenses 80,000 67,000
Calculate net income under CVP for 2016.
Answer:
Kipling Company
Cost volume profit (CVP) Income Statement
Revenue $1,500,000
Variable costs ($680,000)
Contribution margin $820,000
Fixed costs ($692,000)
Net income $128,000
Explanation:
Variable Fixed
Product costs $500,000 $550,000
Selling expenses $100,000 $75,000
Administrative expenses $80,000 $67,000
In order to prepare a CVP income statement we must first determine the total variable and total fixed costs. It is very similar to a variable costing income statement.