Answer:
Indication of which account to be debited and credited:
Transaction Debit Credit
1. Work in Process - Cutting Raw materials
2. Work in Process - Shaping Manufacturing overhead
3. Work in Process - Shaping Work in Process - Cutting
4. Finished Goods Inventory Work in Process - Shaping
5. Cost of Goods Sold Finished Goods Inventory
Explanation:
a) Transaction Analysis:
1. Work in Process - Cutting Department $12,000 Raw materials $12,000
2. Work in Process - Shaping Department $10,000 Manufacturing overhead $10,000
3. Work in Process - Shaping Department $90,000 Work in Process - Cutting $90,000
4. Finished Goods Inventory $80,000 Work in Process - Shaping Department $80,000
5. Cost of Goods Sold $100,000 Finished Goods Inventory $100,000
Example 31: S borrows 5,00,000 to buy a house. If he pays equal instalments for 20 years
and 10% interest on outstanding balance what will be the equal annual instalment?
Solution: We know
Answer:
$58.729
Explanation:
To find the answer, we need to use the present value of an annuity formula.
The formula is:
P = X [(1 - (1 + i)^-n) / i ]
Where X is the annual instalment
P is the present value of the investment (500,000 in this case)(
i is the interest rate (10% in this case)
and n is the number of periods (20 years in this case)
We now plug the amounts into the formula:
500,000 = X [ (1 - (1 + 0.10)^-20) / 0.10 ]
500,000 = X [8.51356]
500,000 / 8.51356 = X
58,729 = X
So the value of the equal annual instalment will be $58.729
With respect to production costs, manufacturing overhead accumulates in the account and is applied to Work In Process based on the predetermine overhead rate or activity based cost rates. It is rare that manufacturing overhead is cleared out naturally by this process. If you have a debit balance in manufacturing overhead, the accounting department ________ has applied manufacturing overhead to the WIP accounts. Is this over or under applied. If the amount remaining at the end of the year is insignificant, the adjustment to clear the remaining manufacturing overhead balance is made to what other account?
Answer:
With respect to production costs, manufacturing overhead accumulates in the account and is applied to Work In Process based on the predetermine overhead rate or activity based cost rates. It is rare that manufacturing overhead is cleared out naturally by this process. If you have a debit balance in manufacturing overhead, the accounting department has under-applied manufacturing overhead to the WIP accounts. Is this over or under applied. If the amount remaining at the end of the year is insignificant, the adjustment to clear the remaining manufacturing overhead balance is made to what other account? Answer is: Cost of Goods Sold account
Debit balance in Overhead account = Actual Overheads which are more than Applied Overhead. This makes applied overhead be UNDER-APPLIED.
2. When percentage change in quantity demanded is greater than percentage change in price then,
a) Consumers are relatively sensitive to price changes
b) Demand is inelastic
c) Coefficient of price elasticity is less than one
d) All of the above
e) None of the above
Answer: A. Consumers are relatively sensitive to price changes
Explanation:
In a situation whereby the percentage change in quantity demanded is greater than the percentage change in price then, we can say that the demand for the product is elastic.
When demand is elastic, the consumers are relatively sensitive to price changes and the coefficient of price elasticity is greater than 1.
describe a real or made up but realistic situation in which you would want to use revolving credit 2-4 sentences
Answer:
Kindly check explanation
Explanation:
The revolving credit concept is one in which one can continously borrow up to a specific amount while paying back an agreed portion of what is borrowed on a fixed basis. This credit concept can help in financing and molding a startup with very little personal capital.
A scenario whereby revolving credit may be if hugely considered may be for a business startup such as an export business which involves quite a large sum which the investor might not be able to afford or due to the nature of the market requires an amount beyind one's capital outky, the evolving credit allows repeated borrowing of money with only a portion being paid on a regular basis. This can help business survival and growth.
Rustafson Corporation is a diversified manufacturer of consumer goods. The company's activity-based costing system has the following seven activity cost pools:
Activity Cost Pool Estimated Overhead Cost Expected Activity
Labor-related $52,000 8,000 direct labor-hours
Machine-related $15,000 20,000 machine-hours
Machine setups $42,000 1,000 setups
Production orders $18,000 500 orders
Product testing $48,000 2,000 tests
Packaging $75,000 5,000 packages
General factory $108,800 8,000 direct labor-hours
Required:
Compute the company's pre-determined overhead rate, assuming that the company uses a Single plantwide predetermined overhead rate based on direct labor-hours.
Answer:
$48.23 per direct labor hour
Explanation :
Pre-determined overhead rate = Budgeted Overheads ÷ Budgeted Activity
where,
Budgeted Overheads = $52,000 + $15,000 + $42,000 + $18,000 + $48,000 + $75,000 + $108,800 = $358,800
Budgeted Activity (direct labor-hours) = 8,000 hours
therefore,
Pre-determined overhead rate = $358,800 ÷ 8,000 hours = $48.23 per direct labor hour
The company's pre-determined overhead rate, assuming that the company uses a Single plantwide predetermined overhead rate based on direct labor-hours is $48.23 per direct labor hour.
Pepper Enterprises owns 95 percent of Salt Corporation. On January 1, 20X1, Salt issued $220,000 of five-year bonds at 115. Annual interest of 10 percent is paid semiannually on January 1 and July 1. Pepper purchased $120,000 of the bonds on August 31, 20X3, at par value. The following balances are taken from the separate 20X3 financial statements of the two companies: Note: Assume using straight-line amortization of bond discount or premium. Pepper Enterprises Salt Corporation Investment in Salt Corporation Bonds $ 125,700 Interest Income 4,367 Interest Receivable 6,000 Bonds Payable $ 220,000 Bond Premium 20,600 Interest Expense 15,400 Interest Payable 12,000
Required:
a. Compute the amount of interest expense that should be reported in the consolidated income statement for 20X3.
b. Compute the gain or loss on constructive bond retirement that should be reported in the 20X3 consolidated income statement.
c. Prepare the consolidation worksheet consolidation entry or entries as of December 31, 20X3, to remove the effects of the intercorporate bond ownership.
Solution :
a).
Par value of the bonds outstanding 220,000
Annual interest rate x 10%
Interest payment 220,000
Amortization of the bonds premium 6600 [tex]$\left( \frac{220,000 \times 15\%}{5}\right)$[/tex]
Interest charged for full year 15400
Less:interest on the bond purchased 2567
by Online Enterprise (15400 x 1/2) x
(4 months / 12 months)
Interest expense included in the consolidated 12833
income statement
b).
Sale price of bonds, 1 Jan 20x1 138,000
(120,000 x 115%)
Amortization of premium 9600 [tex]$\left(\frac{\$120,000 \times 15\%}{5 \ yrs} \times 2\frac{2}{3}\right)$[/tex]
Book value at time of purchase 128,400
Purchase price 120,000
Gain on bond retirement 8400
c).
Events Accounts Debit Credit
1 Bonds payable 120,000
Bonds premium 6600
interest income 4367
investment in Salt bonds 120,000
Interest expense 2567
Gain on bond retirement 8400
2 interest payable 8100
(4950+11900+8750)
Interest receivable 8100
Which of the following statements about market segmentation is true the logic of market segmentation is that seldom meet the needs?
a. According to the model of market segmentation analysis,the process usually begins with deciding the segmentation strategy to be used.
b. In the process of market segmentation,deciding the segmentation strategy precedes determining the consumer's needs and wants.
c. The logic of market segmentation is that a single product item can seldom meet the needs and wants of all consumers.
d. According to the model of market segmentation analysis,the process begins with designing the marketing mix strategy.
Answer:
b. In the process of market segmentation,deciding the segmentation strategy precedes determining the consumer's needs and wants.
Explanation:
In the above stated statement, it is the truth about market segmentation due to the fact that, customers needs and wants differs. In other to ensure that those are met through segmentation of goods and services, there is need for the segmentation strategy to be adopted by the market. Without this segmentation strategy, their be conflicts between the needs and wants of the customers which would lead to not meeting their expectation.
The true statement about market segmentation is the logic of market segmentation is that a single product item can seldom meet the needs and wants of all consumers. Therefore, option c is correct.
Market segmentation is the process of dividing a broad market into distinct groups or segments based on certain characteristics or criteria.
This segmentation allows companies to target specific customer groups with tailored marketing strategies, products, and services that meet their unique needs and preferences.
By understanding the differences and preferences of various market segments, companies can create more effective marketing campaigns, develop products that resonate with their target audience, allocate resources efficiently, and ultimately increase customer satisfaction and profitability.
Market segmentation enables companies to focus their efforts and resources on the most relevant and profitable market segments.
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Mr. and Mrs. Nabulsi are 44 and 41 years old, respectively. They have two children, 14 and 16 years old. They are successful and highly paid professionals. They have two primary investment objectives, retirement and providing for their two children's education. They plan to retire when they turn 65 years old. Their liquidity constraint is best described by which of the following phrases?
a. Since both of them are highly paid professionals, they have no significant concerns to address in their investor policy statement.
b. Their IPS should address the expected payments for their children's education, but need not account for it in the asset allocation.
c. Their IPS should address the expected payments for their children's education and account for it in the asset allocation.
Answer:
mnb b
Explanation:
Presented below are a number of independent situations.
For each individual situation, determine the amount that should be reported as cash.
1. Checking account balance $937,790; certificate of deposit $1,444,000; cash advance to subsidiary of $983,730; utility deposit paid to gas company $188.
Cash balance
2. Checking account balance $514,570; an overdraft in special checking account at same bank as normal checking account of $18,300; cash held in a bond sinking fund $246,580; petty cash fund $308; coins and currency on hand $1,370.
Cash balance
3. Checking account balance $617,620; postdated check from a customer $13,030; cash restricted due to maintaining compensating balance requirement of $117,680; certified check from customer $9,640; postage stamps on hand $625.
Cash balance
4. Checking account balance at bank $46,220; money market balance at mutual fund (has checking privileges) $52,790; NSF check received from customer $859.
Cash balance
5. Checking account balance $716,200; cash restricted for future plant expansion $517,960; short-term Treasury bills $190,700; cash advance received from customer $937 (not included in checking account balance); cash advance of $7,840 to company executive, payable on demand; refundable deposit of $29,700 paid to federal government to guarantee performance on construction contract.
Cash balance
Answer:
1. Checking account balance $937,790; certificate of deposit $1,444,000; cash advance to subsidiary of $983,730; utility deposit paid to gas company $188.
Cash balance $937,790
CDs are not cash equivalents. Only if you are preparing a consolidated balance sheet should you consider the cash advance to the subsidiary as part of your cash balance.
2. Checking account balance $514,570; an overdraft in special checking account at same bank as normal checking account of $18,300; cash held in a bond sinking fund $246,580; petty cash fund $308; coins and currency on hand $1,370.
Cash balance = $514,570 - $18,300 + $308 + $1,370 = $497,948
3. Checking account balance $617,620; postdated check from a customer $13,030; cash restricted due to maintaining compensating balance requirement of $117,680; certified check from customer $9,640; postage stamps on hand $625.
Cash balance = $617,620 - $117,680 + $9,640 = $509,580
4. Checking account balance at bank $46,220; money market balance at mutual fund (has checking privileges) $52,790; NSF check received from customer $859.
Cash balance = $46,220 + $52,790 = $99,010
5. Checking account balance $716,200; cash restricted for future plant expansion $517,960; short-term Treasury bills $190,700; cash advance received from customer $937 (not included in checking account balance); cash advance of $7,840 to company executive, payable on demand; refundable deposit of $29,700 paid to federal government to guarantee ,performance on construction contract.
Cash balance = $716,200 + $190,700 + $937 - $7,840 = $899,997
what do you mean byv painting
Answer:
i don't know
really
Explanation:
If a company rents a warehouse, it must pay rent for the warehouse whether it is full of inventory or completely vacant. Other examples include executives' salaries, interest expenses, depreciation, and insurance expenses. As output is increased or decreased, these _______ costs remain unchanged.
a. dependent
b. fixed
c. opportunity
d. marginal
Answer:
b. fixed
Explanation:
-Dependent refers to a valariable that changes when other factors change.
-Fixed cost refers to a cost that doesn't change when the amount of goods produced increases or decreases.
-Opportunity cost refers to the benefit that you would have received from the option that was not chosen.
-Marginal cost refers to the change in the cost when you produce an additional unit.
According to this definitions and as the statement refers to a cost that doesn't change, the answer is that as output is increased or decreased, these fixed costs remain unchanged.
The Company (ROW) produces a line of non-motorized boats. ROW uses a normal-costing system and allocates manufacturing overhead using direct manufacturing labor cost. The following data are for :
Budgeted manufacturing overhead cost $125,000
Budgeted direct manufacturing labor cost $250,000
Actual manufacturing overhead cost $117,000
Actual direct manufacturing labor cost $228,000
Inventory balances on December 31, 2014, were as follows:
Account Ending balance 2014 Direct manufacturing labor cost in ending balance
Work in process $50,700 $20,520
Finished goods 245,050 59,280
Cost of goods sold 549,250 148,200
Required:
1. Calculate the predetermined overhead rate.
2. Compute the amount of under- or overapplied manufacturing overhead.
3. Calculate the ending balances in work in process, finished goods, and cost of goods sold if under- or overapplied manufacturing overhead is as follows:
a. Written off to cost of goods sold
b. Prorated based on ending balances (before proration) in each of the three accounts
Answer:
See
Explanation:
1. Predeterminer overhead
= Budgeted manufacturing overhead rate / Budgeted direct material labor cost
= 125,000/250,000
= 50%
2. Under or over allocated manufacturing overhead
= Actual manufacturing cost - Allocated manufacturing cost
= $117,000 - (50% × $228,000)
= $117,000 - $114,000
= $3,000
Over allocated manufacturing overhead = $3,000
It therefore means that the manufacturing overhead allocated is higher than the actual manufacturing cost hence it is over allocated.
1. On January 1, 20x1, Entity A acquires 25% interest in Entity B for
₱800,000. Entity B reports profit of ₱1,000,000 and declares dividends of
₱100,000 in 20x1. How much is the carrying amount of the investment in
associate on December 31, 20x1?
Answer: hfhf
Explanation:
According to the given data, the carrying amount of the investment in associate on December 31, 20x1 is $ 1,025,000. The correct option is (D).
What do you mean by dividends?A dividend is a gift that a business provides to its shareholders, whether it be currency or something else. Dividends may be distributed in a number of ways, including equity dividends, cash payments, and other types. The board of directors of a business determines its payout, which needs stockholder approval.
The dividend yield, which is the dividend per share, is stated as a proportion of the share price of a business, for example, 2.5%.
If a common shareholder of a dividend-paying company owns the shares on the ex-dividend date or earlier, they are entitled to receive a payout.
Therefore, according to the given data, the carrying amount of the investment in associate on December 31, 20x1 is $ 1,025,000.
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This is an incomplete question the complete question is:
On January 1, 20x1, Entity A acquires 25% interest in Entity B for ₱800,000. Entity B reports profit of ₱1,000,000 and declares dividends of ₱100,000 in 20x1. How much is the carrying amount of the investment in associate on December 31, 20x1?
a.800,000
b.1,250,000
c.1,000,000
d.1,025,000
According to the basic double entry principle of accounting, we
A Credit ever account and debt the receive account
B. Debit the Elver account and credit the receiver account
Credit the ever and receiver acce
D. Any of the above, depending on the transactions
Answer:
D. Any of the above, depending on the transactions
Explanation:
The double entry principle simply means that any accounting transaction has two records: one credit, and one debit, and it depends on the nature of the transaction, and of the accounts involved which specific value is credited and which one is debited.
For example, if a firm purchases 100$ of office supplies with cash, the credited account is cash, because cash is reduced by $100, while the office supplies account is debited by the same value.
If a firm sells 100$ of office supplies instead, the office supplies inventory is credited for this value, while the same amount of cash is debited for this same amount.
Which factor of production is LEAST likely labeled in the photo?
Ride Tools
A)
capital
B)
human resources
C)
entrepreneurship
D
natural resources
Answer:
Natural resources
Explanation:
Humans should bring an end to all ways of degradation. Cutting down on food waste would only increase the amount of atmospheric carbon dioxide. Alternatively, inspire people to grow more trees in order to maintain nature's harmony. Furthermore, it reduces electricity consumption around the board.
Put in chronological order the events that take an economy from its original long-run equilibrium to a new long-run equilibrium.
a. Stock prices rise in the United States, increasing citizens’ real wealth.
b. Aggregate demand shifts to the right, increasing the price level in the short run.
c. Gradually, all prices in the economy adjust to the demand shift.
d. Short-run aggregate supply shifts to the left, returning to long-run equilibrium and a higher price level.
Answer:
b. Aggregate demand shifts to the right, increasing the price level in the short run.
a. Stock prices rise in the United States, increasing citizens’ real wealth.
d. Short-run aggregate supply shifts to the left, returning to long-run equilibrium and a higher price level.
c. Gradually, all prices in the economy adjust to the demand shift.
Explanation:
The above arranged statement are the chronological order of the events which takes an economy from its original long-run equilibrium to a new long-run equilibrium.
For Ruger Corporation, we will assume 750 of the 1,000 gold medallions in Job
A were shipped to customers by the end of the month for total sales revenue of
$225,000. Because 1,000 units were produced and the total cost of the job
from the job cost sheet was $158,000, the unit product cost was $158. WHAT The
following journal entries would recorded?
Answer:
hsjs
hshsjsoa
sjieieiw
The growth of American tourism to Cuba has dramatically affected private sector employment, as Cuban entrepreneurs start ventures focused on this new group of tourists.
a. True
b. False
Answer:
True
Explanation:
Tourism is one of the largest industries of Cuba. Cuban government is putting lot of emphasis on developing the private sector enterprise. Many Cuban residents seek to create business within this industry to create employment as state government is unable to create stable job opportunities. Also, the new set of travellers within this industry need innovative and immersive experiences. Hence, the Cuban entrepreneur are trying to develop creative tourism to attract tourist from America.
Hence, the given statement is true
The Phoenix Corporation's fiscal year ends on December 31. Phoenix determines inventory quantity by a physical count of inventory on hand at the close of business on December 31. The company's controller has asked for your help in deciding if the following items should be included in the year-end inventory count.
1. Merchandise held on consignment for Trout Creek Clothing.
2. Goods shipped f.o.b. destination on December 28 that arrived at the customer's location on January 4.
3. Goods purchased from a vendor shipped f.o.b. shipping point on December 26 that arrived on January 3.
4. Goods shipped f.o.b. shipping point on December 28 that arrived at the customer's location on January 5.
5. Phoenix had merchandise on consignment at Lisa's Markets, Inc.
6. Goods purchased from a vendor shipped f.o.b. destination on December 27 that arrived on January 3.
7. Goods sold to a customer sitting on the loading dock on December 31 waiting to be picked up by the customer.
8. Freight charges on goods purchased in 3.
Required:
Determine if each of the items above should be included or excluded from the company's year-end inventory.
Answer:
Explanation:
1. Merchandise held on consignment would be included in Phoenix's ending inventory as Phoenix is the consignor or supplier and Trout creek clothing is the consignee.
2. FOB destination goods are included in Phoenix's ending inventory as till the point goods reaches destination, it will be considered as part of the seller's inventory and would be transferred to buyer's inventory after goods reach destination.
3. In case of FOB shipping point, goods are included in buyer's inventory the day goods are shipped irrespective when it reaches the buyer. Here, Phoenix is the buyer so goods will be included in its ending inventory.
4. This would not be part of Phoenix's ending inventory as goods are shipped FOB shipping on December 28. So, this would be included in buyer's inventory.
5. In this case, Phoenix is the consignee and Lisa's market is consignor. So, merchandise on consignment would not be included in Phoenix's inventory.
6. Here, goods would not be included in Phoenix's ending inventory as terms are FOB destination and Phoenix is the buyer. Since, goods will arrive at the destination only On january 3, it will not be included.
7. Goods sold to a customer sitting on loading truck that has not yet been picked up by customer will not be included in Phoenix's inventory. It would be considered as customer's inventory.
8. Freight charges on goods bought are included in inventory cost of the buyer.
Please help me on this I’m stuck!!
Answer:
I have no clue, sorry. need the points
A Canadian radio station asks listeners o call in to voice their option on whether a Canadian figure skater should have won gold. What bias might be present
The bias which is present here is Response bias. Thus option B is correct.
What is Sampling Bias?Sampling bias occurs when certain members of a population are consistently more likely to be chosen for a sample than other members of the community. Ascertainment bias is another name for it in the medical areas.
Since sampling bias jeopardises external validity, particularly population validity, it restricts the generalizability of findings. In other words, conclusions drawn from bias samples can only be extrapolated to populations with similar traits of the sample. In probability sampling, each person in the population has a known chance of being chosen. To choose a straightforward random sample from your population, for instance, you may use a random number generator.
Therefore, we can conclude that B is the correct option.
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Your question is incomplete. But, most probably your complete question was:
A Canadian radio station asks listeners to call in to voice their opinion on whether a Canadian figure skater should have won gold. What bias might be present:
A. Sampling
B. Response
C. Measurement
D. Non-response
Suzanne owns interests in a bagel shop, a lawn and garden store, and a convenience store. Several full-time employees work at each of the enterprises. As of the end of November of the current year, Suzanne has worked 150 hours in the bagel shop, 250 hours at the lawn and garden store, and 70 hours at the convenience store. In reviewing her financial records, you learn that she has no passive investments that are generating income and that she expects these three ventures collectively to produce a loss.
Required:
What recommendation would you offer Suzanne as she plans her activities for the remainder of the year?
Answer:
In order for Suzanne to be considered an active participant in her stores, she must work at least 31 hours more. That way, her total working hours will be above 500, and she can deduct any losses from her adjusted gross income.
If she doesn't work at least 31 hours more, these activities will be considered passive activities and can only offset passive income.
Explanation:
Match the stages of business cycle to their financial needs.
growth stage
startup stage
maturity stage
seed stage
decline stage
Answer:
funds raised from personal savings and mortgages - seed stage
external financing through equity or debt - startup stage
external financing, mostly through equity and venture capital - growth stage
high retained earnings that are used in the business - maturity stage
external financing is not needed and debts are paid back - decline stage
Explanation:
Seed stage: The seed stage is when a business first comes into existence. The initial capital needed to finance the business is raised at this time. This capital is usually raised by the owner in the form of personal savings, mortgages, or borrowings from family and friends. This is a high-risk stage, so external financing options are limited.
Start-up stage: The start-up stage is where the first revenues come into the business, but the profits are yet to be realized. Because there are no retained earnings, there is a need for external financing. If the business has an established potential and the owners have credibility, it is easy at this stage for the owner to get external financing through debt or equity from family members, friends, and angel investors.
Growth stage: The growth stage is when a company establishes itself and begins to show profits on its balance sheet. However, the profits and other internal funds may not be enough to sustain growth at this stage. The business needs a steady flow of working capital (short-term funds) to strengthen its operations and fuel further growth. External funding needs are high at this stage, and funds are raised through equity and venture capital. Some companies also issue initial public offerings (IPOs) at this stage to get more funding.
Maturity stage: The maturity stage is when the business has established itself, has a sizable number of customers, and experiences slower growth. Retained earnings will be high, and there is no need for external financing. Businesses issue bonds and securities to fund their operations at this stage.
Decline: A business reaches a decline when demand for its products and services falls, and sales go down. The external financing needs are very low. The business may buy back stock and repay debts at this stage.
The giant superstore Costco makes several requirements of its customers. Children must be kept with their parents at all times. They can't wander around to the various food stations of the warehouse on their own. Costco also asks that its customers not show up looking as if they just came from the beach. Hey, it's not too much to ask that they wear shoes and shirts while shopping. Lastly, Costco wants permission to look in the briefcases, backpacks, and packages of those entering its warehouse. It's too easy to slip items into big bags. Unlike other supermarkets, Costco is a private membership store and thus can make reasonable demands of its customers. But it needs help. How can it fit all of these restrictions on a concise sign at its entrance?
Assume you are a staff member of a consulting firm hired by Costco to draft a sign for the entrance. Individually, prepare one draft version of an entrance sign in a positive view.
The correct answer to this open question is the following.
My draft of the sign that would be placed at the main entrance of COSTO stores is this.
Dear customer,
As part of our policies, COSTO respectfully informs you that to enter the premises you are required to wear a shirt and shoes, keep your children with you at all times, and your bags and briefcases will be checked for security reasons with your permission.
We kindly ask you to cooperate with us in order to have the best shopping experience with us.
Thank you for your comprehension.
These kinds of signs are understandable in shopping premises like COSTO or other supermarkets. There have been some incidents inside the stores that could have been prevented if some measures like the above-mentioned could be taken.
That is why is positive that the management of the stores ask their consumers for these minimum requirements to have a nice visit where everybody feels happy and safe.
Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes to record the following transactions.
External Transaction Accounts Debit Credit
1. Owners invest $12,500 in the company and receive common stock. Common Stock 12,500
Cash 12,500
2. Receive cash of $3,500 for services provided in the current period. Cash Service Revenue 3,500
3,000
3. Purchase office supplies on account, $250. Supplies 250
Cash 250
4. Pay $550 for next month's rent. Rent Expense 550
Cash 550
5. Purchase office equipment with cash of $1,950. Cash 1,950
Equipment 1,950
Required:
Assess whether the junior accountant correctly proposes how to record each transaction. If incorrect, provide the correction.
Answer:
Scarlet Knight Corporation
Correct postings:
Accounts Debit Credit
1. Cash 12,500
Common Stock 12,500
2. Cash 3,500
Service Revenue 3,500
3. Supplies 250
Cash 250
4. Rent Expense 550
Cash 550
5. Equipment 1,950
Cash 1,950
Explanation:
a) Data and Calculations:
Accounts Debit Credit
1. Common Stock 12,500
Cash 12,500
2. Cash 3,500
Service Revenue 3,000
3. Supplies 250
Cash 250
4. Rent Expense 550
Cash 550
5. Cash 1,950
Equipment 1,950
b) The accounting rule is to debit the value receiver and to credit the value giver. Generally, assets, expenses, and losses normally have debit balances while liabilities, equities, incomes, and gains have credit balances.
Loran's pretax accounting income in 20X1 is $100,000. Loran had bad debt expense for financial reporting purposes of $14,000 in 20X1. In 20X1, Loran deducted $4,000 in bad debts. Loran expects the timing difference to reverse $3,000 in 20X2 and $7,000 in 20X3. The income tax rate is 40%. Which of the following entries would be included for the deferred tax entry required at the end of 20X2?
Answer:
The answer is "2800".
Explanation:
The positive temporary difference at 20X2 end[tex]= 7000[/tex]
X Tax rate on revenue[tex]=40\%[/tex]
At the end of 20X2 deferred account of tax assets= [tex]2800[/tex]
Banc Corp. Trust is considering either a bankwide overhead rate or department overhead rates to allocate $360,000 of indirect costs. The bankwide rate could be based on either direct labor hours (DLH) or the number of loans processed. The departmental rates would be based on direct labor hours for Consumer Loans and a dual rate based on direct labor hours and the number of loans processed for Commercial Loans. The following information was gathered for the upcoming period:
Department DLH Loans Processed Direct Costs
Consumer 17,000 500 $ 290,000
Commercial 6,000 400 $ 190,000
If Banc Corp. Trust uses a bankwide rate based on the number of loans processed, what would be the total costs for the Consumer Department?
Answer:
Consumer Department= $200,000
Explanation:
Giving the following information:
Loans Processed
Consumer= 500
Commercial= 400
Total= 900
Total estimated overhead= $360,000
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= $400 per loan processed
Now, we can allocate overhead to Consumer Department:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Consumer Department= 400*500
Consumer Department= $200,000
There are two nations that, using all of their resources, both produce lemon drops and boxes. Nation A can produce either 300 lemon drops and 0 boxes per day or 100 boxes and 0 lemon drops per day or any combination that lies on its constant cost PPC. Nation B can produce either 200 lemon drops and 0 boxes per day or 200 boxes and 0 lemon drops per day or any combination that lies on its constant cost PPC.
Required:
Draw a correctly labeled PPC for each nation. Use lemon drops on the vertical axis and boxes on the horizontal axis.
Answer:
I drew the production possibilities frontier curve for both nations, A and B, and attached it.
Explanation:
Among the top motivator driving corporation to engage in CSR includes all of the following reasons except
Answer: meeting or exceeding budget
Explanation:
The options include:
a. Meeting or exceeding budget
b. Ethical considerations
c. Innovation and learning
d. Employee motivation
Corporate social responsibility simply refers to the responsibility of organizations to the society. It is when companies contribute to the goals of the society at large by engaging in charitable deeds or supporting practices that are environmental friendly or ethically viable.
The motivator that drives organizations to engage in corporate social responsibility include ethical consideration, employees motivation, innovation and learning etc.
Therefore, the option that doesn't motivate companies to engage in corporate social responsibility is meeting or exceeding budget.
A company has non-current assets with a net book value totaling $820,000 at the start of the year. Assets costing $95,000 was disposed of. These assets were held for three years at a straight-line depreciation rate of 20%. The depreciation charge for the year was $150,000. If the closing balance for the total non-current assets (at net book value) at the end of the year was $975,000, what value of new assets were purchased during the year?
Answer:
343,000
Explanation:
The value of new assets purchased during the year is $ 400,000 which includes closing balance of non-current assets, depreciation, and cost of assets disposed minus the opening balance of assets.
What is an Asset?A resource with the economic worth that an individual, company, or country possesses or controls with the hope of future gain is referred to as an asset.
In the given case, we need to calculate the value of assets purchased during the year:
[tex]\rm\,Value\,of\,new\,assets\,purchased\,during\,the\,year = Closing\,balance\,of\,Non\,Current\,assets\,+ \\\,Depreciation\,+ \,Cost\,of\,the\,goods\,sold\,- Beginning\,balance\,of\,Non\,Current\,assets\,\\\\= \$\,975,000\,+\,\$150,000\,+\,\$95,000\,-\,\$820,000\\\\=\$400,000[/tex]
Hence, the value of new assets that were purchased during the year is
$ 400,000.
To learn more about Assets, refer to the link:
https://brainly.com/question/25895372