The following list includes a series of accounts for Sanjeev Corporation, which has been operating for three years. These accounts are listed and numbered for identification. Following the accounts is a series of transactions. For each transaction, indicate the account(s) that should be debited and credited by entering the appropriate account number(s) to the right of each transaction. The first transaction is used as an example.
Account No. Account Title Account No. Account Title
1 Cash 10 Income Taxes Payable
2 Accounts Receivable 11 Common Stock
3 Supplies 12 Additional Paid-in Capital
4 Prepaid Expenses 13 Retained Earnings
5 Equipment 14 Service Revenue
6 Patents 15 Operating Expenses (wages, supplies)
7 Accounts Payable 16 Income Tax Expense
8 Note Payable 17 Interest Expense
9 Wages Payable
Answers
Answer:
Note: The question is attached as picture
(a) Example has been illustrated
(b) Dr 15. Operating Expenses (wages, supplies)
Cr 1. Cash
(c) Dr 7. Account Payable
Cr 1. Cash
(d) Dr 3. Supplies
Cr 1. Cash
(e) Dr 2. Account Receivable
Cr 14. Service Revenue
(f) Dr 1. Cash
Cr 2. Account Receivable
(g) Dr 1. Cash
Cr 11. Common Stock
(h) Dr 15. Operating Expenses (wages, supplies)
Cr 1. Cash
(i) Dr 15. Operating Expenses (wages, supplies)
Cr 9. Wages Payable
(j) Dr 6. Patent
Cr 1. Cash
(k) Dr 1. Cash
Cr. 14. Service Revenue
(l) Dr 15. Operating Expenses (wages, supplies)
Cr 3. Supplies
(m) Dr 16. Income Tax Expense
Cr 1. Cash
Cr. 10. Income Tax Payable
(n) Dr 8. Note Payable
Dr 17. Interest Expense
Cr 1. Cash
(o) Dr 4. Prepaid Expense
Cr 1. Cash
Related Questions
Crinkle Cut Clothes Company manufactures two products CC1 and CC2. Current direct material and direct labor costs are detailed below. Next year the company wishes to use a plantwide overhead rate with direct labor hours as its allocation base. Next year's overhead is estimated to be $350,640. The direct labor and direct materials costs are estimated to be consistent with the current year. Direct labor costs $20 per hour and the company expects to manufacture 42,000 units of CC1 and 111,000 units of CC2 next year.
CC1: Direct material per unit $37.10, Direct Labor Dollars Per Unit $22.40
CC2: Direct material per unit $25.20, Direct Labor Dollars Per Unit $15.40
Required:
Compute the plantwide overhead rate for next year.
Answers
Answer:
Units of what?
Explanation:
Pearsall Company's defined benefit pension plan had a PBO of $275,000 on January 1, 2021. During 2021, pension benefits paid were $45,000. The discount rate for the plan for this year was 11%. Service cost for 2021 was $88,000. Plan assets (fair value) increased during the year by $55,000. The amount of the PBO at December 31, 2021, was:
Answers
Answer:
$329,150
Explanation:
Calculation for the amount of the PBO at December 31, 2021
PBO/1/1 $265,000
Add Service Cost 80,000
Add Interest Cost 29,150
($265,000 x 11%)
Less Benefits Paid (45,000)
PBO 12/31 $329,150
Therefore The amount of the PBO at December 31, 2021, was: $329,150
Target (TGT) recently earned a profit of $4.15 per share and has a P/E ratio of 23.19. Earnings have been growing at 11.5 percent per year over the past few years. If this growth continues, what would the stock price be in five years if the P/E ratio remains unchanged
Answers
Answer:
$165.85
Explanation:
Calculation for what would the stock price be in five years
First step is to calculate the EPS in 5 years
Using this formula
EPS in 5 years=EPS 0 (1+ Growth rate)^n
Let plug in the formula
EPS in 5 years=4.15*(1+11.5%)^5
EPS in 5 years=$7.1519
Now let calculate for the stock price in 5 years
Using this formula
Stock price in 5 years=P/E ratio*EPS in 5 years
Let plug in the formula
Stock price in 5 years=23.19*$7.1519
Stock price in 5 years=$165.85
Therefore what would the stock price be in five years is $165.85
A company issued 130 shares of $100 par value common stock for $15,400 cash. The total amount of paid-in capital in excess of par is:
Answers
Answer:
$2,400
Explanation:
For par stated shares, any amount paid in excess of the par value is called paid-in capital in excess of par and is included in shareholders equity reserves.
So, from the total price remove the par value price of 130 shares to determine the paid-in capital in excess of par.
Paid-in capital in excess of par = Total Paid - Price at Par
= $15,400 - (130 shares × $100)
= $2,400
Two-Stage ABC for Manufacturing
Detroit Foundry, a large manufacturer of heavy equipment components, has determined the following activity cost pools and cost driver levels for the year:
Activity Cost Pool Activity Cost Activity Cost Driver
Machine setup $720,000 12,000 setup hours
Material handling 120,000 3,000 material moves
Machine operation 680,000 10,000 machine hours
The following data are for the production of single batches of two products, C23 Cams and U2 Shafts during the month of August:
C23 Cams U2 Shafts
Units produced 500 300
Machine hours 4 5
Direct labor hours 200 400
Direct labor cost $5,000 $10,000
Direct materials cost $20,000 $15,000
Tons of materials 13 8
Setup hours 3 7
Determine the unit costs of C23 Cams and U2 Shafts using ABC.
Product Costs
C23 Cams U2 Shafts
Direct materials 30,000 $20,000
Direct labor 5,000 10,000
Manufacturing overhead
Machine setups 150 300
Material handling 780 480
Machine operation 100,000 X 75,000 X
Total job costs $135,930 X $105,830 X
Units produced 500 300
Cost per unit produced 271.86 352.77
Answers
Please find question attached
Answer and Explanation:
Find answer and explanation attached
A $3.6 million state lottery pays $15,000 at the beginning of each month for 20 years. How much money must the state actually have in hand to set up the payments for this prize if money is worth 5.8%, compounded monthly
Answers
Answer:
Present Value= $2,128,538.66
Explanation:
Giving the following information:
Cash flow= $15,000
Number of periods= 20*12= 240
Interest rate= 0.058/12= 0.00483
First, we need to calculate the future value of the monthly payments:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV={15,000*[(1.00483^240) - 1]} / 0.00483
FV= $6,765,529.2
Now, the present value:
PV= FV/(1+i)^n
PV= 6,765,529.2 / 1.00483^240
PV= $2,128,538.66
Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $45,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 5.5%. He currently has $100,000 saved, and he expects to earn 9% annually on his savings. How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal?
Answers
Answer:
Explanation:.
What is the growth rate of nominal GDP? Y0 real GDP= $1200 (in millions) Y1 real GDP= $1400 (in millions) Y0 price level= 125 Y1 price level= 140
Answers
Answer:
12%
Explanation:
The computation of the growth rate of nominal GDP is shown below:
As we know that
Nominal GDP = Real GDP × (Price level ÷ 100)
For
Nominal GDP, Y0
= $1,200 × (125 ÷ 100)
= $1,500
And,
Nominal GDP, Y1 is
= $1,200 × (140 ÷ 100)
= $1,680
Now the growth rate of nominal GDP is
= ($1,680 ÷ $1,500) - 1
= 12%
On January 1, 2021, NFB Visual Aids issued $720,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is payable semiannually on June 30 and December 31. NFB Visual Aids records interest expense at the effective rate and elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $600,000 as determined by their market value in the over-the-counter market. General (risk-free) interest rates did not change during 2021. (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.)
Required:
1-a. Determine the price of the bonds at January 1, 2021.
1-b to 4. Prepare the necessary Journal entries.
Answers
Answer and Explanation:
The computation of price of the bonds is shown below:-
Interest on Bond = Bond Face Value × Interest rate × 6 ÷ 12 months
= $720,000 × 8% × 6 ÷ 12
= $28,800
Present Value of interest payments = Interest on bond × PVAF(i%, n)
i = semi annual discounting rate = 10% × 6 ÷ 12
= 5%
n = number of semi annual periods
= 20 years × 2 periods
= 40 periods
Present Value of interest payments = $28,800 × PVAF(5%, 40)
= $28,800 × 17.15909
= $494,182
Present Value of Redemption Value = Redemption Value × PVF(5%, 40)
= $720,000 × 0.142046
= $102,273
Price of Bonds = $494,182 + $102,273
= $596,455
1-b The Journal entries are shown below:-
a. Cash Dr, 596,455
Discount on Bonds Payable Dr, $123,545
To Bonds Payable $720,000
(Being the issuance of bonds is recorded)
b. Interest Expense Dr, $29,823 (596,455 × 10% × 6 ÷ 12)
To Discount on Bonds Payable $1,023
To Cash $28,800 ($720,000 × 8% × 6 ÷ 12)
(Being the first interest payment is recorded)
c. Interest Expense Dr, $29,874 (($596,455 + $1,023) × 10% × 6 ÷ 12)
To Discount on Bonds Payable $1,074
To Cash Dr, $28,800
($720,000 × 8% × 6 ÷ 12)
(To record the second interest payment)
d. Unrealized Holding Loss Dr, 1,448
To Fair Value Adjustment $1,448
(Being adjust the bonds to their fair value is recorded)
Working Notes:
1) Bonds Payable Value after adjusting Discount
= $596,455+$1,023+$1,074
= $598,552
Fair Value of Bonds as on Dec 31 = $600,000
Fair Value adjustment amount is
= $600,000 - $598,552
= $1,448
Gilbert is considering purchasing the Side Steamer 3000, a higher-end steamer, which costs $12,000, and has an estimated useful life of 6 years with an estimated salvage value of $1,200. This steamer falls into the MACRS 5-years class, so the applicable depreciation rates are 20.00%, 32.00%, 19.20%, 11.52%, 11.52%, and 5.76%. The new steamer is faster and would allow for an output expansion, so sales would rise by $2,000 per year; even so, the new machine's much greater efficiency would reduce operating expenses by $1,400 per year. To support the greater sales, the new machine would require that inventories increase by $2,900, but accounts payable would simultaneously increase by $700. Gilbert's marginal federal-plus-state tax rate is 40%, and its WACC is 12%.
a. Should it replace the old steamer?b. NPV of replace = $2,083.51
SHOW WORK HOW TO GET THIS ANSWER
Answers
Answer:
Explanation:
initial outlay $12,000 + ($2,900 - $700) = $14,200
depreciable value = $10,800
depreciation per year:
$2,160$3,456$2,073.60$1,244.16$1,244.16$622.08incremental revenues = $2,000 + $1,400 = $3,400
CF year 0 = -$14,200
CF year 1 = [($3,400 - $2,160) x 0.6] + $2,160 = $2,904
CF year 2 = [($3,400 - $3,456) x 0.6] + $3,456 = $3,422.40
CF year 3 = [($3,400 - $2,073.60) x 0.6] + $2,073.60 = $2,869.44
CF year 4 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66
CF year 5 = [($3,400 - $1,244.16) x 0.6] + $1,244.16 = $2,537.66
CF year 6 = [($3,400 - $622.08) x 0.6] + $622.08 + $1,200 + $2,200 = $5,688.83
WACC = 12%
a) the steamer should not be replaced, since the NPV is negative.
b) Using a financial calculator, NPV = -$14,200 + $13,298.29 = -$901.71
According to the table, which religion had the most active congregations in New Jersey in 1765?
New Jersey – Active Congregations (1765)
Answers
Answer:
Presbyterian
39
Dutch Reformed
Explanation:
just did it on edge ooga booga
Answer:
According to the table, which religion had the most active congregations in New Jersey in 1765?
✔ Presbyterian
How many Quaker congregations were there in 1765?
✔39
There were the same number of Church of England congregations in New Jersey as
✔Dutch Reformed congregations.
Explanation:
Bill and Ted are deciding what musical instruments they want to learn pick between the guitar, keyboard, and the drums to play for their band. They can They both want to have a good band, but also each has a preference over what to play. Both like the guitar over all else. However, Bill likes the keyboard more than the drums and Ted likes the drums more than the keyboard. What is crucial is that each chooses a different instrument, otherwise the band is pretty terrible. The actual combination does not affect the quality of the band. One night, Bill and Ted simultaneously reveal to each other what instrument they have bought and learned to play. Since they bought AND learned to play the instru- are committed to it! Given the information above, answer the following: ment they
1. Does either Bill or Ted have a dominant/dominated strategy? Explain
2. If Bill picks the keyboard, is it a best response for Ted to pick the drums? Explain
3. If Ted picks the guitar, is it a best response for Bill to pick the keyboard? Explain
4. Can there exist a Nash equilibrium in which Bill picks the drums and Ted picks the keyboard? Explain
5. Can there exist a Nash Equlibrium in which Bill picks the guitar and Ted picks the drums? Explain
Answers
Answer and Explanation:
1. There is no dominant strategy as each person has to respond with a different strategy like using a different instrument depending on the instrument chosen by the other to achieve best payoff
2. If Bill picks keyboard then it would be best for Ted to pick guitar as this is his preferred instrument which would bring best payoff
3. If Ted picks guitar, then bull should pick keyboard which he prefers and would be the best payoff
4. A nash equilibrium would not exist here since Ted should choose guitar if bull chooses drums and bill should choose guitar if Ted chooses keyboard
5. A Nash equilibrium can exist here since Ted should choose drums when bill chooses guitar.
Broussard Skateboard's sales are expected to increase by 25% from $8.6 million in 2019 to $10.75 million in 2020. Its assets totaled $2 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 45%.
Required:
Use the AFN equation to forecast Broussard's additional funds needed for the coming year.
Answers
Answer:
$236,500
Explanation:
Using the AFN equation to forecast Broussard's additional funds
Sales expected in 2019 2,150,000
( 8,600,000* .25)
After-tax profit margin 430,000
(10,750,000*4%)
Dividend payments 193,500
[$430,000 * 45%]
Addition to retained earnings $236,500
[$430,000 - $193,500]
Therefore forecast Broussard's additional funds needed for the coming year will be $236,500
How should you handle an employee who keeps coming to you asking for information regarding major policies, vacations, and benefit(s)?
Answers
Answer:
tell him to not talk about politics at work and stop asking for more vacations and benifits.
Explanation:
tell him arguing about policies means less work done. And if he would get more vacation days, and more benifits the other employees would think you are showing favoritism.
You want to buy a house that costs $140,000. You have $14,000 for a down payment, but your credit is such that mortgage companies will not lend you the required $126,000. However, the realtor persuades the seller to take a $126,000 mortgage (called a seller take-back mortgage) at a rate of 5%, provided the loan is paid off in full in 3 years. You expect to inherit $140,000 in 3 years, but right now all you have is $14,000, and you can afford to make payments of no more than $22,000 per year given your salary. (The loan would call for monthly payments, but assume end-of-year annual payments to simplify things.)
Required:
a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?
b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?
c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?
Answers
Answer:
Kindly check explanation
Explanation:
Given the following :
Cost of house = $140,000
Down payment = $14000
Take back mortgage = 126000 = PV
Rate (r) = 5%
Yearly payment one can afford = 22000
a. If the loan was amortized over 3 years, how large would each annual payment be? Could you afford those payments?
Number of period = 3
Using the relation:
PMT = r(PV) / 1 - (1 + r)^-n
PMT = 0.05(126000) / 1 - 1.05^-3
PMT = 6300 / (1-0.8638375)
PMT = 46,268.23
He won't be able to afford it, as the monthly payment is larger than the affordable amount of $22000
b. If the loan was amortized over 30 years, what would each payment be? Could you afford those payments?
PMT = r(PV) / 1 - (1 + r)^-n
PMT = 0.05(126000) / 1 - 1.05^-30
PMT = 6300 / (1-0.2313774)
PMT = 8196.48
He would be able to afford it, as the monthly payment is lower than the affordable amount of $22000
c. To satisfy the seller, the 30-year mortgage loan would be written as a balloon note, which means that at the end of the third year, you would have to make the regular payment plus the remaining balance on the loan. What would the loan balance be at the end of Year 3, and what would the balloon payment be?
Present value of remaining balance after the 3rd year:
Present Value (PV) = PMT[(1 - (1 + r)^-n) / r]
Where
PMT = periodic payment = 8196.48
r = Interest rate = 5% = 0.05
n = number of periods = 30 - 3 = 27
PV = 8196.48[(1 - (1 + 0.05)^-27) / 0.05]
PV = 8196.48[(1 - (1. 05)^-27) / 0.05]
PV = 8196.48[0.7321516 / 0.05]
PV = 120,021.32
Balloon payment :
120,021.32 + 8196.48 = 128,217.80
a. The annual payment if the Mortgage was amortized over three years is $45,315.96 (Interest + Principal)
The Mortgage payments are not affordable because his affordability funds are limited to $22,000 annually.
Annual Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $126,000.00 $5,393.36 $39,922.60 $86,077.35
2 $86,077.35 $3,350.86 $41,965.10 $44,112.18
3 $44,112.18 $1,203.81 $44,112.15 $0.00
b. The annual payment if the Mortgage was amortized over thirty years is $8,116.80 (Interest + Principal)
The Mortgage payments are now affordable with his affordability amount of $22,000 per year.
Annual Amortization Schedule for the first three years:
Beginning Balance Interest Principal Ending Balance
1 $126,000.00 $6,257.79 $1,859.01 $124,141.04
2 $124,141.04 $6,162.68 $1,954.12 $122,186.97
3 $122,186.97 $6,062.70 $2,054.10 $120,132.93
c. Payments made by the end of the third year were $5,867.07 with a balance of $120,132.93.
Data and Calculations:
Cost of house = $140,000
Down payment = $14,000
Mortgage value = $126,000($140,000 - $14,000)
Mortgage interest rate = 5%
Affordable annual payments = $22,000
Thus, the balloon payment is always based on an agreed percentage of the loan, which is not provided here.
Learn more: https://brainly.com/question/16653335 and https://brainly.com/question/14388610
Mason Corporation had $650,000 in invested assets, sales of $700,000, operating income amounting to $99,000, and a desired minimum return on investment of 15%. The investment turnover for Mason Corporation is
Answers
Answer:
1.08 times
Explanation:
Mason corporation has $650,000 in invested assets
Sales is $700,000
Operating income is $99,000
Minimum investment on return is 15 percent
Therefore the investment turnover for mason corporation can be calculated as follows
= net sales/debt
= 700,000/650,000
= 1.08 times
research how consumers might use dispute resolution to resolve conflicts with businesses.
Answers
Answer:
The two most popular types of dispute resolution are mediation and arbitration. In mediation, a neutral third party — a mediator — helps you and the other party try to resolve the problem through facilitated dialogue. However, it's up to you and the other party to reach an agreement.
Explanation:
Answer:
what I researched is that
Explanation:
Explanation.
Oriole Products manufactures two component parts: AJ40 and AJ60. AJ40 components are being introduced currently, and AJ60 parts have been in production for several years. For the upcoming period, 1,500 units of each product are planned for manufacturing. Assume that the only relevant overhead cost is for engineering change orders (any requested changes in product design or the manufacturing process). AJ40 components are expected to require 4 change orders and AJ60 only 2. Each AJ40 requires 1 machine hour, and each AJ60 requires 1.5 machine hours. The cost of a change order is $420.
Required:
Estimate the cost of engineering change orders for AJ40 and AJ60 components if Blue uses a traditional costing method and machine hours as the allocation base.
Answers
Answer:
Total allocated cost for AJ40 $189,000
Total allocated cost for AJ60 $283,500
Total $472,500
Explanation:
Calculation to Estimate the cost of engineering change orders for AJ40 and AJ60
First step is to calculate for the Total number of change orders
AJ40 AJ60
Units planned 1,500 1,500
÷No. of change orders 4 2
=Total number of change orders 375 +750=1,125
Second step is to for the Total cost of change order
AJ40 AJ60
Units planned 1,500 1,500
×Machine hours per unit 1 1.5
=Total machine hours required 1,500 + 2,250 =3,750
Third step is to find the Total cost of change order
AJ40 AJ60
Total number of change orders 375 750
× Cost of a change order $420 $420
=Total cost of change order $157,500 $315,00
Total cost of change order=$157,500 +$315,000
=Total cost of change order = $472,500
Now let Estimate the cost of engineering change orders for AJ40 and AJ60 using Traditional system
TRADITIONAL SYSTEM
Total allocated cost for AJ40 $189,000 (472,500*1,500/3,750)
Total allocated cost for AJ60 $283,500 (472,500*2,250/3,750)
Hence,
Total allocated cost for AJ40 $189,000+Total allocated cost for AJ60 $283,500
=$472,500
The defect rate for data entry of insurance claims at Sadegh Kazemi Insurance Co. has historically been about 1.50% This exercise contains only parts a, b, c, d, and e.
a. If you wish to use a sample size of 100, the 3-sigma control limits are: UCLD (enter your response as a number between 0 and 1, rounded to three decimal places).
b. what if the sample size used were 50, with 3 standard deviation?
c. what if the sample size used were 100, with 2 standard deviation?
d. what if the sample size used were 50, with 2 standard deviation?
e. what happens to standard deviation Ap when the sample size is larger?
f. explain why the lower control limits cannot be less then 0.
Answers
Answer and Explanation:
Answer and explanation attached
The purpose of a bond sinking fund is to: Multiple Choice accumulate funds needed to pay the tax liability on the bond proceeds. accumulate funds to pay the regular interest payments. hold the bond proceeds until the funds need disbursed. repay bonds early either through purchases or calls. repay bondholders from a trust fund if the issuer defaults.
Answers
Answer:
repay bonds early either through purchases or calls.
Explanation:
A bond sinking fund can be defined as a restricted asset containing money owned by a company and set aside to repay bonds early or pay off a debt.
The purpose of a bond sinking fund is to repay bonds early either through purchases or calls. It is usually reported in the balance sheet after the current assets section.
Also, a bond sinking fund when properly implemented through the process of making regular deposit, helps to provide security for bondholders.
DelRay Foods must purchase a new gumdrop machine. Two machines are available. Machine 7745 has a first cost of $8,000, an estimated life of 10 years, a salvage value of $1,000, and annual operating costs estimated at $0.01 per 1,000 gumdrops. Machine A37Y has a first cost of $8,000, a life of 10 years, and no salvage value. Its annual operating costs will be $260 regardless of the number of gumdrops produced. MARR is 6%/year, and 30 million gumdrops ware produced each year.
Based on an internal rate of return analysis, which machine should be recommended?
Answers
Answer:
I would recommend Machine 7745
Explanation:
Machine 7745
initial outlay = $8,000
operational costs per year = $300
depreciation cost per year = $700
salvage value (at year 10) = $1,000
total costs per year (1 - 9) = $1,000
total costs year 10 = $0
using an excel spreadsheet, the IRR = 2%. Since you are analyzing costs only, not incremental revenue, then you must select the project with the lowest IRR.
Machine A37Y
initial outlay = $8,000
operational costs per year = $260
depreciation cost per year = $800
total costs per year (1 - 10) = $1,060
using an excel spreadsheet, the IRR = 4%
The fact that generally accepted accounting principles allow companies flexibility in choosing between certain allocation methods can make it difficult for a financial analyst to compare periodic performance from firm to firm. Suppose you were a financial analyst trying to compare the performance of two companies. Company A uses the double-declining-balance depreciation method. Company B uses the straight-line method. You have the following information taken from the 12/31/2021 year-end financial statements for Company B:
Income Statement
Depreciation expense $12,500
Balance Sheet
Assets:
Plant and equipment, at cost $125,000
Less: Accumulated depreciation (50,000)
Net $75,000
You also determine that all of the assets constituting the plant and equipment of Company B were acquired at the same time, and that all of the $125,000 represents depreciable assets. Also, all of the depreciable assets have the same useful life and residual values are zero.
Required:
a. In order to compare performance with Company A, estimate what B's depreciation expense would have been for 2021?
b. If Company B decided to switch depreciation methods in 2021 from the straight line to the double-declining-balance method, prepare the 2021 journal entry to record depreciation for the year
Answers
Answer:
a. Company B's depreciation expense for 2021 is $12,800
b. Accumulated Depreciation (Dr.) $23,800
Plant and equipment (Cr.) $23,800
Explanation:
The depreciation expense of 2021 will be $12,800. The cost of plant and equipment is $125,000.
Depreciation 2018 : $125,000 * 10% = 12,500 * 2 = $25,000
2019 : $125,000 - $25000 = $100,000 * 10% * 2 = $20,000
2020: $100,000 - $20,000 = $80,000 * 10% * 2 = $16,000
2021 : $80,000 - $16,000 = 64,000 * 10% * 2 = $12,800
Due to use, wear and tear, or obsolescence, the monetary worth of an object decreases with time. Depreciation is the term used to describe this reduction.
A.Company B's depreciation expense for 2021 is $12,800
B. Accumulated Depreciation (Dr.) $23,800
Plant and equipment (Cr.) $23,800
Solution:-
The depreciation expense of 2021 will be $12,800. The cost of plant and equipment is $125,000.
Depreciation 2018 : $125,000 * 10% = 12,500 * 2 = $25,000
2019 : $125,000 - $25000 = $100,000 * 10% * 2 = $20,000
2020: $100,000 - $20,000 = $80,000 * 10% * 2 = $16,000
2021 : $80,000 - $16,000 = 64,000 * 10% * 2 = $12,800
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How has the introduction of these markets, technologies and resources affected the lifestyle of the people of Cuba
Answers
Answer:
he economy of Cuba is a largely planned economy dominated by state-run enterprises. The government of Cuba owns and operates most industries and most of the labor force is employed by the state. Following the fall of the Soviet Union in 1991, the ruling Communist Party of Cuba encouraged the formation of worker co-operatives and self-employment. However, greater private property and free market rights were granted by the 2019 Constitution.[10][11] It has also been acknowledged that foreign market investment in various Cuban economic sectors increased before 2019 as well.[12][13]
As of 2000, public-sector employment was 76% and private-sector employment (mainly composed of self-employment) was 23% - compared to the 1981 ratio of 91% to 8%.[14] Investment is restricted and requires approval by the government. The government sets most prices and rations goods to citizens. In 2016 Cuba ranked 68th out of 182 countries, with a Human Development Index of 0.775, much higher than its GDP per capita rank (95th).[15]As of 2012, the country's public debt comprised 35.3% of GDP, inflation (CDP) was 5.5%, and GDP growth was 3%.[16]
Housing and transportation costs are low. Cubans receive government-subsidized education, healthcare and food subsidies.[17]
The country achieved a more even distribution of income after the Cuban Revolution of 1953–1959,[citation needed] which was followed by an economic embargo by the United States (1960- ). During the Cold War period, the Cuban economy was heavily dependent on subsidies from the Soviet Union, valued at $65 billion in total from 1960 to 1990 (over three times as the entirety of U.S. economic aid to Latin America), an average of $2.17 billion a year.[18] This accounted for anywhere between 10% and 40% of Cuban GDP, depending on the year.[19] While the massive Soviet subsidies did enable Cuba's enormous state budget, they did not lead to a more advanced or sustainable Cuban economy; although described by economists as "a relatively highly developed Latin American export economy" in 1959 and the early 1960s, Cuba's basic economic structure changed very little between then and 1990. Tobacco products such as cigars and cigarettes were the only manufactured products among Cuba's leading exports, and even these were produced by a preindustrial process. The Cuban economy remained inefficient and over-specialized in a few highly subsidized commodities provided by the Soviet bloc countries.[20] Following the collapse of the Soviet Union, Cuba's GDP declined by 33% between 1990 and 1993, partially due to the loss of Soviet subsidies[21] and a crash in sugar prices in the early 1990s. It rebounded in the early 2000s due to a combination of marginal liberalization of the economy and heavy subsidies from the friendly government of Venezuela, which provided Cuba with low-cost oil and other subsidies worth up to 12% of Cuban GDP annually.[22] Cuba retains high levels of healthcare and education.[23]
Contents
1 History
1.1 Before the Revolution
1.2 Cuban Revolution
1.3 Special Period
1.4 Recovery
1.5 Post-Fidel reforms
1.5.1 International debt negotiations
2 Sectors
2.1 Energy production
2.1.1 Energy sector
2.2 Agriculture
2.3 Industry
2.4 Services
2.4.1 Tourism
2.4.2 Retail
2.5 Finance
2.6 Foreign investment and trade
2.7 Currencies
2.8 Private businesses
3 Wages, Development, and Pensions
4 Public facilities
5 Connection with Venezuela
6 Economic freedom
7 Taxes and revenues
8 See also
9 References
9.1 Citations
9.2 Sources
10 External links
History
Before the Revolution
Although Cuba belonged to the high-income countries of Latin America since the 1870s, income inequality was high, accompanied by capit
Explanation:
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Can anyone help me match these into the correct category?
Answers
Answer:
see below
Explanation:
Hotel chain owner
Owns all the products of the groupOwns the brand nameOwns all the properties in the groupRetains all profits of the groupFranchise hotel owner
Pays a fee to use the brand name and productsOwns one or more independent unitsA hotel chain owner owns the entire business either as an individual or in a group. They have exclusive rights to the brand name of the business. They keep all the profits from the business but suffer all the losses.
A franchise is a business relationship where the business owner( the franchisor) grants a license to a third party ( the franchisee) to start and run a business similar to that of the franchisor. The franchisee gets permission to operates under the franchisor's brand name, colors, design, layout, and operating processes. They are allowed to trade franchisor's products and services.
Toil & Oil processes crude oil to jointly produce gasoline, diesel, and kerosene. One batch produces 3,415 gallons of gasoline, 2,732 gallons of diesel, and 1,366 gallons of kerosene at a joint cost of $12,000. After the split-off point, all products are processed further, but the estimated market price for each product at the split-off point is as follows:
Gasoline $2 per gallon
Diesel 1 per gallon
Kerosene 3 per gallon
Using the market value at split-off method, allocate the $12,000 joint cost of production to each product.
Joint Product Allocation
Gasoline $
Diesel
Kerosene
Totals $
Answers
Answer: See attachment
Explanation:
Allocation rate was calculated as:
Gasoline: 6830/13660 × 100 = 50%
Diesel: 2732/13660 × 100 = 20%
Kerosene: 1366/13660 × 100 = 30%
Cost to be allocated:
Gasoline = 50% × $12000 = $6000
Diesel: 20% × $12000 = $2400
Kerosene: 30% × $12000 = $3600
Check the attachment for further details.
The following balance sheet for the Hubbard Corporation was prepared by the company:
HUBBARD CORPORATION
Balance Sheet
At December 31, 2016
Assets
Buildings $760,000
Land 280,000
Cash 70,000
Accounts receivable (net) 140,000
Inventories 260,000
Machinery 290,000
Patent (net) 110,000
Investment in marketable equity securities 80,000
Total assets $1,990,000
Liabilities and Shareholders' Equity
Accounts payable $225,000
Accumulated depreciation 265,000
Notes payable 520,000
Appreciation of inventories 90,000
Common stock, authorized and issued
110,000 shares of no par stock 440,000
Retained earnings 450,000
Total liabilities and shareholders' equity $1,990,000
Additional information:
1. The buildings, land, and machinery are all stated at cost except for a parcel of land that the company is holding for future sale. The land originally cost $60,000 but, due to a significant increase in market value, is listed at $140,000. The increase in the land account was credited to retained earnings.
2. Marketable equity securities consist of stocks of other corporations and are recorded at cost, $30,000 of which will be sold in the coming year. The remainder will be held indefinitely.
3. Notes payable are all long-term. However, a $200,000 note requires an installment payment of $50,000 due in the coming year.
4. Inventories are recorded at current resale value. The original cost of the inventories is $170,000.
Required:
Prepare a corrected classified balance sheet for the Hubbard Corporation at December 31, 2016.
Answers
Answer:
HUBBARD CORPORATION
Balance Sheet as at December 31, 2016
Assets Amount$
Current assets
Cash 70000
Marketable securities 30000
Accounts receivable (net) 140000
Inventories 170000
Total current assets 410000
Investments:
Marketable securities 50000
Land held for sale 60000
Total investments 110000
Property, plant, and equipment:
Land 140000
Buildings 760000
Machinery 290000
1190000
Less: Accumulated -265000
depreciation
Net property, plant, and equipment 925000
Intangible assets:
Patent 110000
Total assets 1555000
Liabilities and Shareholders' Equity
Current liabilities:
Accounts payable 225000
Current maturities of long-term debt 50000
Total current liabilities 275000
Long-term liabilities
Notes payable 470000
Shareholders’ equity:
Common stock, no par value 440000
110,000 shares authorized; 110,000
shares issued and outstanding
Retained earnings 370000
Total shareholders’ equity 810000
Total liabilities and shareholders’ equity 1555000
Identify cash equivalents from the listed items.
a. Money market funds
b. Supplies
c. Three-month Treasury bills
d. Accounts receivable
e. Prepaid rent
Answers
Answer:
Money market funds , Three-month treasury bills
Explanation:
Cash equivalents are the liquid current assets that are easily convertible into a known cash amount. Examples of cash equivalents are commercial paper, treasury bills, marketable securities, and money market holdings.
Stocks, bonds, and derivatives, are excluded from the category of cash equivalents.
Money market funds , Three-month treasury bills are considered as cash equivalents.
Bill works at Peterbuilt on the assembly line producing truck frames. Bill is exceptionally knowledgeable about the equipment needed to do his job and often makes recommendations to management on the specifications for and alternative suppliers of needed equipment. Given Bill’s position on the assembly line as an operator, he probably functions in the buying center at Peterbuilt as a(n):
Answers
Answer:
A User
An Initiator
An Influencer
Explanation:
Bill’s position on the assembly line as an operator, he probably functions as a user, influencer, initiator by putting machines parts together, ensure maintenance, helps in decision making and also influence the sales of machines parts, negotiate sales and other duties.
Determine the taxable income for a firm as described here: The firm recorded revenues of $46,000 and recaptured depreciation of $2,000 for the year just ended During the year, the firm incurred cash expenses of $27,500 and depreciation expenses of $15,575.
Answers
Answer:
Taxable Income = $4,925
Explanation:
Computation of taxable income
Particulars Amount
Revenue $46,000
Add: Recaptured depreciation $2,000
Less: Cash expenses $27,500
Less: Depreciation expenses $15,575
Taxable Income $4,925
You purchased a bond at a price of $13,100. In 15 years when the bond matures, the bond will be worth $30,000. It is exactly 7 years after you purchased the bond and you can sell the bond today for $21,300. If you hold the bond until it matures, what annual rate of return will you earn from today
Answers
Answer:
The annual rate of return is 2.10%
Explanation:
The computation of the annual rate of return is shown below:
Let us assume the annual rate of return be K
K is
= {Worth of the bond - selling price of the bond today)^(1 ÷ remaining time period) - 1
= [$30,000 ÷ $21,300]^(1 ÷ 8) - 1
= 2.10%
Hence, the annual rate of return is 2.10%
The same is to be considered