Answer:
c. Being on time.
Explanation:
Punctual is strictly adhering to the time set. A punctual person is never late for meetings or events. It's on time.
Punctual in making payments means the payments were not delayed. Punctuality refers to the ability to follow a schedule or a timetable.
The state of the economy alone can predict how the financial market will perform.
True
False
Answer:
true
Explanation:
Suppose you are interested in obtaining a mortgage loan for $250,000 in order to purchase your principal residence. Your lender has suggested that you might be interested in taking an FHA loan. In order to do so, you must pay an additional up-front mortgage insurance premium (UFMIP) of 1.0% of the mortgage balance. If the interest rate on the fully amortizing mortgage loan is 5% and the term is 30 years, what is your monthly mortgage payment assuming the UFMIP is financed
Answer:
$1,355.47
Explanation:
if you are going to finance the up-front mortgage insurance premium, then the total principal of the loan will increase by 1%, so it will be = $250,000 x 1.01 = $252,500. It is normal to finance UFMIP payments since they are additional closing costs and the whole purpose of FHA loans is to allow more people to be able to buy a house.
we can use the present value of an annuity formula to determine the monthly payment.
monthly payment = principal / PV annuity factor
principal = $252,500PV annuity factor = 186.2816monthly payment = $252,500 / 186.2816 = $1,355.474722 ≈ $1,355.47
I prepared an amortization schedule in order to check the answer. At the end the final balance is $3.83, but that is because you have to round to the nearest cent. If the payment is rounded to $1,355.48, the the balance is -$4.50.
The process of taking cash flow that is received or paid in the future and stating that cash flow in present value terms is called discounting. A. True B. False
Answer:
A. True
Explanation:
The process of taking cash flow that is received or paid in the future and stating that cash flow in present value terms is called discounting.
Discounting is the opposite of Compounding because discounting measures what the value of future cash flow is worth in the present while compounding takes the present value into the future. Discounting generally points to a method of knowing the present value of cash flow. Discounting is an important tool due to how a business could know the present value of what the business spends and gains by comparing it to the future value of what is to be received.
The cash flow that is received or paid in the future is less than the present value of the cash flow and that depicts the time value of money.
Lilliput is a country that has closed borders and does not import or export any goods or services; hence, they do not worry about trade with other countries. Total spending for the federal government of Lilliput for the last fiscal year was $4.71 billion. The country collected $4.83 billion in taxes during this same fiscal year. Assume government transfers were zero. Based on this information, what is Lilliput's budget balance
Answer: $0.12 billion
Explanation:
Based on the information given in the question:
Total spending for Lilliput last fiscal year = $4.71 billion
Tax collected(Revenue)= $4.83 billion
Government transfers = $0
Lilliput's budget balance based on the information provided will be:
= (Taxes - Government transfers) - Government expenditures
= ($4.83 billion - $0) - $4.71 billion
= $0.12 billion
Joe is a regular customer. He's been in 4 times over the past two weeks. Each
time, he's received a wire transfer of $2000. He immediately sends a wire for
$500 and comes back into the store the next day to send 3 more money
transfers of $500 each to 3 different people.
The situation raises the following Red Flags (Select all that apply)
Joe has multiple friends.
Joe's transaction activity is frequent and for larger dollar amounts.
Joe is breaking up the transaction into smaller amounts.
Joe sometimes purchases other items in the store such as toothpaste and medicine.
Joe is breaking up received money into smaller amounts of money and sending to
several people.
Answer:
Joe's situation raises the following Red Flags:
Joe is breaking up the transaction into smaller amounts.
Explanation:
Joe is following money laundry footsteps. I suspect that he may be involved in some fraudulent practices, no wonder he is making some frantic efforts to launder the wire transfer of $2,000. He had completed sending some of the proceeds to some other persons. Perhaps, he will remit more cash in similar ways.
Answer:
Joe is breaking up the transaction into smaller accounts
Joe's transaction activity is frequent and for larger dollar amounts.
Joe is breaking up received money into smaller amounts of money and sending to several people
Explanation:
Suppose that, in a competitive market without government regulations, the equilibrium price of gasoline is $3.00 per gallon.
Complete the following table by indicating whether each of the statements is an example of a price ceiling or a price floor and whether it is binding or nonbinding.
Statement Price Control Binding or Not
The government prohibits gas stations from selling gasoline for more than $2.50 per gallon.
The government has instituted a legal minimum price of $3.40 per gallon for gasoline.
There are many teenagers who would like to work at gas stations, but they are not hired due to minimum-wage laws.
Answer:
Price ceiling binding
price floor binding
Price floor binding
Explanation:
A price floor is when the government or an agency of the government sets the minimum price of a product. A price floor is binding if it is set above equilibrium price.
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
The maximum price ($2.50) is less than the equilibrium price($3) . So it is a binding price ceiling
The minimum price ($3.40) is greater than the equilibrium price($3) . So it is a binding price floor
A perpetuity pays $170 per year and interest rates are 8.2 percent. How much would its value change if interest rates increased to 9.7 percent
Answer:
$320.59 decrease
Explanation:
The computation of the change in the value is shown below:
As we know that
The Value of perpetuity is
= Annual inflows ÷ interest rate
Current value is
= $170 ÷ 0.082
= $2,073.17
And,
New value is
= $170 ÷ 0.097
= $1,752.58
Now change in value is
= $2,073.17 - $1,752.58
= $320.59 decrease
We simply applied the above formula
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent. $900 per year for 12 years at 10%. $ 19,245.85 $450 per year for 6 years at 5%. $ 3,060.86 $200 per year for 6 years at 0%. $ Rework parts a, b, and c assuming they are annuities due. Future value of $900 per year for 12 years at 10%: $ 21,170.43 Future value of $450 per year for 6 years at 5%: $ 3,213.90 Future value of $200 per year for 6 years at 0%: $
Answer:
a. Futuere Value = $19,245.86
b. Futuere Value = $3,060.86
c. Futuere Value = $0
d-1. Futuere Value = $21,170.44
d-2. Futuere Value = $3,213.90
d-3. Futuere Value = $0
Explanation:
Note: The data in the question are merged. They are therefore sorted before answering the question as follows:
Find the future values of these ordinary annuities. Compounding occurs once a year. Do not round intermediate calculations. Round your answers to the nearest cent.
a. $900 per year for 12 years at 10%. $ 19,245.85
b. $450 per year for 6 years at 5%. $ 3,060.86
c. $200 per year for 6 years at 0%. $
d. Rework parts a, b, and c assuming they are annuities due.
Future value of $900 per year for 12 years at 10%: $ 21,170.43
Future value of $450 per year for 6 years at 5%: $ 3,213.90
Future value of $200 per year for 6 years at 0%: $
Explanation of the answer is now provided as follows:
The formula for calculating the Future Value (FV) of an Ordinary Annuity given as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (1)
Where,
FV = Future value of the amount =?
M = Annuity payment
r = Annual interest rate
n = number of periods years
This formula is now applied as follows:
a. $900 per year for 12 years at 10%. $ 19,245.85
Therefore, we have:
FV = ?
M = $900
r = 10%, or 0.10
n = 12
Substituting the values into equation (1), we have:
FV = $900 * (((1 + 0.10)^12 - 1) / 0.10)
FV = $900 * 21.38428376721
FV = $19,245.855390489
Rounding the nearest cent, we have:
FV = 19,245.86
b. $450 per year for 6 years at 5%. $ 3,060.86
Therefore, we have:
FV = ?
M = $450
r = 5%, or 0.05
n = 6
Substituting the values into equation (1), we have:
FV = $450 * (((1 + 0.05)^6 - 1) / 0.05)
FV = $450 * 6.8019128125
FV = $3,060.860765625
Rounding the nearest cent, we have:
FV = $3,060.86
c. $200 per year for 6 years at 0%. $
Therefore, we have:
FV = ?
M = $200
r = 0%, or 0
n = 6
Substituting the values into equation (1), we have:
FV = $200 * (((1 + 0)^6 - 1) / 0)
FV = $200 * ((1^6 - 1) / 0)
FV = $200 * ((1 - 1) / 0)
FV = $200 * (0 / 0)
FV = $200 * 0
FV = $0
d. Rework parts a, b, and c assuming they are annuities due.
The formula for calculating the Future Value (FV) of an Annuity Due is given as follows:
FV = M * (((1 + r)^n - 1) / r) * (1 + r) ................................. (2)
Where,
FV = Future value
M = Annuity payment
r = Annual interest rate
n = number of periods years
This formula is now applied as follows:
d-1. Future value of $900 per year for 12 years at 10%: $ 21,170.43
Therefore, we have:
FV = ?
M = $900
r = 10%, or 0.10
n = 12
Substituting the values into equation (2), we have:
FV = $900 * (((1 + 0.10)^12 - 1) / 0.10) * (1 + 0.10)
FV = $900 * 21.38428376721 * 1.10
FV = $2,1170.4409295379
Rounding the nearest cent, we have:
FV = $2,1170.44
d-2. Future value of $450 per year for 6 years at 5%: $ 3,213.90
Therefore, we have:
FV = ?
M = $450
r = 5%, or 0.05
n = 6
Substituting the values into equation (2), we have:
FV = $450 * (((1 + 0.05)^6 - 1) / 0.05) * (1 + 0.05)
FV = $450 * 6.8019128125 * 1.05
FV = $3,213.90380390625
Rounding the nearest cent, we have:
FV = $3,213.90
d-3. Future value of $200 per year for 6 years at 0%: $
Therefore, we have:
FV = ?
M = $200
r = 0%, or 0
n = 6
Substituting the values into equation (2), we have:
FV = $200 * (((1 + 0)^6 - 1) / 0) * (1 + 0)
FV = $200 * ((1^6 - 1) / 0) * 1
FV = $200 * ((1 - 1) / 0) * 1
FV = $200 * (0 / 0) * 1
FV = $200 * 0 * 1
FV = $0
Lawn Master Company, a manufacturer of riding lawn mowers, has a projected income for the coming year as follows: Sales $ 44,000,000 Operating expenses: Variable expenses $ 28,600,000 Fixed expenses 7,700,000 Total expenses 36,300,000 Operating profit $ 7,700,000 Required: 1. Determine the breakeven point in sales dollars. 2. Determine the required sales in dollars to earn a before-tax profit of $9,152,500. (Do not round intermediate calculations. Round your answer to the nearest whole dollar amount.) 3. What is the breakeven point in sales dollars if the variable expenses increases by 9%
Answer:
Please see attached
Explanation:
• Break even point in sales dollars $22,000,000
• Required sales in dollars $48,150,000
• Break even point in sales dollars $34,010,600
See as attached, detailed solution to the questions above.
Answer:
Results are below.
Explanation:
Giving the following information:
Sales $44,000,000
Variable expenses $ 28,600,000
Fixed expenses 7,700,000
To calculate the break-even point in dollars, we need to use the following formula:
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 7,700,000 / [(44,000,000 - 28,600,000)/44,000,000]
Break-even point (dollars)= $22,000,000
Now, we incorporate the desired profit of $9,152,500
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (7,700,000 + 9,152,500) /0.35
Break-even point (dollars)= $48,150,000
Finally, the new break-even point in dollars:
Total variable cost= 28,600,000*1.09= 31,174,000
Break-even point (dollars)= 7,700,000 / [(44,000,000 - 31,174,000) / 44,000,000]
Break-even point (dollars)= 7,700,000 / 0.2915
Break-even point (dollars)= $26,415,094.34
To what three different audiences might you have to give a presentation? How would the presentation differ for each? Which one would be the most challeng- ing for you?
Answer:
Please see explanation below.
Explanation:
°To what three different audiences might you have to give a presentation.
Answer:
• Senior manager
• Project manager
• Team leader.
° How would the presentation differ for each.
• Senior manager. The senior manager will be presented with existing IT structures in a brief manner. In addition to being given the short description of the previous IT system, a short explanation of the newly built and improvement on these existing systems will as well be presented to the senior manager.
• Project manager. A project manager would be presented with detailed description of the project. This is because the project manager must have first knowledge of the whole project and will be held accountable for the success or failure of the project. He would also be giving reports to the senior managers.
• Team leader. The details of the current process as the project progresses will be shared with the team leader.
° Which one will be the most challenging for you.
The most challenging for me will be the project manager because he would have to be presented with a well detailed and thorough description of the whole project. More so, further details of the cost expended on the system will be shared with the project manager.
You join the accounting department of a major tech firm after graduation and are asked to assist in preparing end of year adjusting entries to prepare the firm’s financial statements for the end of the fiscal year. One major item you discover is a large part of the firm’s compensation expense is for stock grants and restricted stock units (RSUs). You are unsure how to account for these and so turn to the codification for guidance. What is the accounting for these forms of compensation and how are they presented on the financial statements?
Answer and Explanation:
Stock based compensation: stock based compensation which is non cash expense is charged as operating expenses to operating income as stipulated in Accounting Standards Codification (ASC) 718. After a year, the equity account is credited and cash is debited
Restricted stock units: contra equity is debited and common stock is credited. Part of the shares after vesting and recognition as income is charged and withheld for taxes
Daisy, Inc., hopes to report a total book tax expense of $160,000 in the current year. This $160,000 expense consists of $240,000 in current tax expense and an $80,000 tax benefit related to the expected future use of an NOL by Daisy. If the auditors determine that a valuation allowance of $30,000 must be placed against Daisy's deferred tax assets, what is Daisy's total book tax expense
Answer:
$190,000
Explanation:
Calculation for total book tax expense
Using this formula
Total book tax expense=Total book tax expense+Valuation allowance
Let plug in the formula
Total book tax expense=$160,000+$30,000
Total book tax expense=$190,000
Therefore Daisy's total book tax expense will be $190,000
Total Company North South Sales $ 600,000 $ 400,000 $ 200,000 Variable expenses 360,000 280,000 80,000 Contribution margin 240,000 120,000 120,000 Traceable fixed expenses 120,000 60,000 60,000 Segment margin 120,000 $ 60,000 $ 60,000 Common fixed expenses 50,000 Net operating income $ 70,000 Required: 1. Compute the companywide break-even point in dollar sales. 2. Compute the break-even point in dollar sales for the North region. 3. Compute the break-even point in dollar sales for the South region.
Answer:
1. Company wide break-even point in dollar sales= $425,000
2. Break-even point in dollar sales for North region= $200,000
3. Break-even point in dollar sales for South region = $100,000
Explanation:
1. Computation of the companywide break-even point in dollar sales
First step is to find the Contribution margin ratio
Using this formula
Contribution margin ratio = Contribution margin / Sales
Contribution margin ratio:
Total company: ($240,000/$600,000)=0.4
North : ($120,000/$400,000)=0.4
South : ($120,000/$200,000)=0.6
Now let compute the Company wide break-even point in dollar sales using this formula
Company wide break-even point in dollar sales= Fixed costs / Contribution margin ratio
Let plug in the formula
Company wide break-even point in dollar sales= ($120,000 + $50,000) / 0.4
Company wide break-even point in dollar sales= $425,000
2. Computation for the break-even point in dollar sales for the North region using this formula
Break-even point in dollar sales for North region = Traceable fixed expenses / Contribution margin ratio
Let plug in the formula
Break-even point in dollar sales for North region= $60,000 / 0.3
Break-even point in dollar sales for North region= $200,000
3. . Computation for the break-even point in dollar sales for the South region.
Using this formula
Break-even point in dollar sales for South region = Traceable fixed expenses / Contribution margin ratio
Let plug in the formula
Break-even point in dollar sales for South region = $60,000 / 0.6
Break-even point in dollar sales for South region = $100,000
Corentine Co. had $154,000 of accounts payable on September 30 and $133,500 on October 31. Total purchases on account during October were $283,000. Determine how much cash was paid on accounts payable during October. On September 30, Valerian Co. had a $103,500 balance in Accounts Receivable. During October, the company collected $103,890 from its credit customers. The October 31 balance in Accounts Receivable was $91,000. Determine the amount of sales on account that occurred in October. During October, Alameda Company had $104,500 of cash receipts and $105,150 of cash disbursements. The October 31 Cash balance was $19,600. Determine how much cash the company had at the close of business on September 30.
Answer:
Explanation:
a. Accounts Payable
Payments on account $303,500 | Beginning balance $154,000
| Purchases on account $283,000
|
| Ending balance $133500
b. Accounts Receivable
Beginning balance $103,500 | Cash receipts on account $103,890
Sales on account $91,390 |
|
Ending balance $91,000 |
c. Cash
Cash receipts $104,500 | Cash disbursements $105,150
Beginning balance $20,250 |
|
Ending balance $19,600 |
During the year, TRC Corporation has the following inventory transactions. Date Transaction Number of Units Unit Cost Total Cost Jan. 1 Beginning inventory 60 $ 52 $ 3,120 Apr. 7 Purchase 140 54 7,560 Jul. 16 Purchase 210 57 11,970 Oct. 6 Purchase 120 58 6,960 530 $ 29,610 For the entire year, the company sells 450 units of inventory for $70 each. Exercise 6-4A Part 1 Required: 1. Using FIFO, calculate ending inventory, cost of goods sold, sales revenue, and gross profit.
Answer:
Ending inventory = $3,440; Cost of goods sold = $24,370; Sales revenue = $31,500; and Gross profit = $7,130.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the represented question with the sorted data.
Explanation to the answer is now presented as follows:
Note: the attached excel for the calculation of calculation of Cost of goods available for sale, Cost of goods sold, and Ending inventory using FIFO.
First In, First Out (FIFO) can be described as an inventory accounting method in which inventory items that bought first are sold first, while the one that are bought last are the ones that are sold last.
In the attached excel file, since the inventory purchased on Oct. 6 is the one bought last, the number of unit of inventory purchased on Oct. 6 which are sold is calculated as follows:
by deducting the sum of the beginning
inventory and inventory purchased before Oct. 6 from the total inventory sold as follows:
Number of unit of inventory purchased on Oct. 6 that are sold = Total inventory sold – sum of the beginning inventory and inventory purchased before Oct. 6 = 450 - (60 + 140 + 210) = 4
The number of ending inventory is therefore calculated as follows:
Number of unit of ending inventory = Number of inventory purchased on Oct. 6 - Number of inventory purchased on Oct. 6 sold = 120 – 40 = 80
Sales revenue = Number of unit units of inventory sold for the entire year * Selling price per unit = 450 * $70 = $31,500
From the attached excel file, we have:
Cost of goods sold = $24,370
Ending inventory = $3,440
Therefore, we have:
Gross profit = Sales revenue - Cost of goods sold = $31,500 - $24,370 = $7,130
The maintenance expense (paid at the end of the year) on a machine, with 6 years of useful life, is expected to be (in constant dollars of year 0) $5,000 during the first year and to increase (in constant dollars) $500 each year for the following five years. The average inflation rate for the next 6 years is calculated to be 3%. What is the equivalent equal annual maintenance cost (in actual dollars) for the machinery if the interest rate is 8%
Answer: $1387.5
Explanation:
Given data:
Useful life of the machine = 6years
Inflation for the 6years period = 3%
Interest rate = 8%.
Cost of maintenance = $5000
Yearly increments = $500 for five years.
Solution:
Total cost of maintenance for five years
= cost of maintenance + yearly increments x 5
= $5000 + $500(5)
= $5000 + $2500
= $7500.
Interest rate on the machinery = 8%
= 0.08 x $7500
= $600
Inflation rate
= 0.03 x 7500
= $225
Equal yearly maintenance cost
= $7500 + $600 + $225/ 6
= $8325/6
= $1387.5
Companies, the military, the government, and nonprofit organizations can operate because they have determined the levels of authority and reporting structure for their organizations. What is the name given to this line of authority
Answer:
Chain of command.
Explanation:
Chain of command is been used in the description of operation flow pattern in companies, government, universities and in many organisations which aid in a better reporting relationship. This report is said to set records straight and also puts every individual in a category in this chart organization. Also a chain of command is established so that everyone knows whom they should report to and what responsibilities are expected at their level. A chain of command enforces responsibility and accountability.
A charitable foundation has $500,000 invested in an account that earns 7%. The foundation has promised to begin making annual payments to beneficiaries in one year, and the first payment will be $25,000. The foundation has promised that future payments will grow at a constant rate forever. At what rate can the foundation afford to increase payments assuming that it makes no additional deposits into the account?
Answer:
2%
Explanation:
Calculation for the rate that the foundation can afford to increase payments
Using this formula
Growth rate=Return-First payment/ Amount Invested
Let plug in the formula
Growth rate=7%- (25,000/500,000)
Growth rate=7%-5%
Growth rate=2%
Therefore the rate that the foundation can afford to increase payments will be 2%
Use the Gordon growth model formula to compute the price of a stock that will pay a $5 dividend per share next year and the dividend is expected to stay at $5 forever. Assume 5% cost of equity. The price of the stock today is $______
Answer:
the price of the stock today is $100
Explanation:
The computation of the price of the stock today is shown below:
Given that
D1 = 5
Growth Rate = 0%
Cost of Equity = 5%
Now the price of the stock today is
= D1 ÷ Cost of Equity
= $5 ÷ 5%
= $100
Hence, the price of the stock today is $100
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Ramon had AGI of $165,000 in 2020. He is considering making a charitable contribution this year to the American Heart Association, a qualified charitable organization. Determine the current allowable charitable contribution deduction in each of the following independent situations, and indicate the treatment for any amount that is not deductible currently. Identify any planning ideas to minimize Ramon's tax liability.
Answer:
the situations are missing, so I looked for similar questions:
a. A cash gift of $68,500.
In the current year, Ramon may deduct $68,500 since his charitable contribution is limited to $165,000.
b. A gift of OakCo stock worth $68,500 on the contribution date. Ramon had acquired the stock as an investment two years ago at a cost of $61,650.
The stock's value for determining the contribution is $68,500 (fair market value). The deduction for 2020 is $49,500 (30% of AGI). The remaining $19,000 for years.
c. A gift of a painting worth $68,500 that Ramon purchased three years ago for $61,650. The charity has indicated that it would sell the painting to generate cash to fund medical research.
The contribution is valued at $61,650 (the charity will sell the painting immediately). The amount deductible in the current year is $61,650.
Explanation:
The charitable contribution limit was increased to 100% of AGI for 2020 by the CARES Act (Coronavirus Aid, Relief, and Economic Security Act).
The following transactions occurred at the Daisy King Ice Cream Company.
1. Started business by issuing 10,000 shares of capital stock for $23,000.
2. Signed a franchise agreement to pay royalties of 5% of sales.
3. Leased a building for three years at $530 per month and paid six months' rent in advance.
4. Purchased equipment for $5,700, paying $2,000 down and signing a two-year, 10% note for the balance.
5. Purchased $2,100 of supplies on account.
6. Recorded cash sales of $1,100 for the first week.
7. Paid weekly salaries and wages, $470.
8. Paid for supplies purchased in item (5).
9. Paid royalties due on first week's sales.
10. Recorded depreciation on equipment, $70.
Required:
Prepare journal entries to record each of the transactions listed above. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal Entries Needed as followed:
1. Started business by issuing 10,000 shares if capitol stock for $23,000
2. Signed a franchise agreement to pay royalties of 5% of sales
3. Leased a building for 3yrs st $530 per month and paid 6 months rent in advance
4. Purchased equipment for $5700, paying $2000 down and signing a 2yr 10% note for the balance.
5. Purchased $2100 of supplies on account
6. Recorded cash sales of $1100 for the 1st week
7. Paid weekly salareies and wages $4700
8. Paid for suplies purchased in item (5)
9. Paid royalites due on 1st weeks sales
10. Recorded depreciation on equipment $70
Answer:
Daisy King Ice Cream Company
General Journal
1. Debit Cash Account $23,000
Credit Capital Stock $23,000
To record the issue of 10,000 shares for cash.
2. No journal entry required.
3. Debit Prepaid Rent $3,180
Credit Cash Account $3,180
To record the payment in advance of six months' rent.
4. Debit Equipment $5,700
Credit Cash $2,000
Credit Notes Payable $3,700
To record the purchase of equipment for cash and 10% two-year notes.
5. Debit Supplies $2,100
Credit Accounts Payable $2,1000
To record the purchase of supplies on account.
6. Debit Cash Account $1,100
Credit Sales Revenue $1,100
To record the sale of goods for cash.
Debit Royalties Expense $55
Credit Royalties Payable $55
To record 5% royalties payable on sales.
7. Debit Salaries and Wages Expense $470
Credit Cash Account $470
To record the payment of weekly salaries and wages.
8. Debit Accounts Payable $2,100
Credit Cash Account $2,100
To record the payment for supplies purchase on account.
9. Debit Royalties Payable $55
Credit Cash Account $55
To record the payment of royalties due.
10. Debit Depreciation Expense $70
Credit Accumulated Depreciation $70
To record the depreciation expense for the period.
Explanation:
For Daisy King Ice Cream Company, the recording of business transactions in the journal is the first step of maintaining the double-entry system of book-keeping. In it, the accounts to be debited and credited are identified and recorded for onward posting to the general ledger.
Park competes with World by providing a variety of rides. sells tickets at $110 per person as a one-day entrance fee. Variable costs are $44 per person, and fixed costs $412,500 are per month. Under these conditions, the breakeven point in tickets is 6,250 and the breakeven point in sales dollars is $687,500.
Requirement
1. Suppose Park cuts its ticket price from to to increase the number of tickets sold. Compute the new breakeven point in tickets and in sales dollars. 2. Begin by selecting the formula labels and then entering the amounts to compute the number of tickets must sell to break even under this scenario
Answer:
Instructions are below.
Explanation:
Giving the following information:
Variable costs are $44 per person
Fixed costs $412,500
Let's suppose that the new selling price is $100.
To calculate the break-even point in units and dollars, we need to use the following formulas:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 412,500 / (100 - 44)
Break-even point in units= 7,366 units
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 412,500 / (56/100)
Break-even point (dollars)= $736,607
g Question 3 (ASC Required - 20 points): After graduation, you work for a few years at a major accounting firm and advance to Senior. However, as part of this role, you start working on a client that is different from your other background: specifically, a major bank located in San Francisco. This bank primarily takes deposits from retail and business customers and lends money out to others. The accounting seems to be completely different from what you are used to and so you go to the Codification to find out what the accounting standards for this industry consist of. Describe the major classes of transactions undertaken by this sort of entity and how they should be accounted for.
Answer with Explanation:
The major transactions that a bank will be involved in are listed below:
Deposits of accounts holders: These deposits are basically the liability of the bank which it will pay them back in near future. Hence it must be recorded as a Current or Non-current liability depending upon the type of account and agreement between the parties to contract. Money lendings to borrowers: This money must be accounted for as a current or non-current asset depending upon the type of account and agreement made.Interest on the money lendings: It is interest income and must be accounted for as revenue.ATM and other Transaction processing charges: These fee charges are also part of income and thus must be accounted for as income.Roose, Inc. reported revenue of $92 million and incurred total expenses of $84 million. The total expenses included cost of goods sold of $50 million, salaries and other administrative expenses of $9 million, $11 million of interest paid on a building's mortgage, and $14 million of depreciation. Assuming Roose is subject to the interest expense limitation, what amount of interest expense can the business deduct in the current year
Answer:
Roose, Inc.
The business can deduct $9.5 million in the current year.
Explanation:
Revenue = $92 million
Expenses allowed = 73 million ( $84 - $11 million for interest expense)
Adjusted taxable income before interest = $19 million
50% of adjusted taxable income = $9.5 million
Disallowed interest expense in the current year = $1.5 million
The interest expense allowed (deductible) is 50% for 2019 and 2020, as amended by the CARES Act) of the taxpayer's adjusted taxable income.
he Production Department of Hruska Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter Units to be produced 11,900 10,900 12,900 13,900 Each unit requires 0.20 direct labor-hours and direct laborers are paid $15.00 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $99,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $39,000 per quarter. Required: 1. Calculate the company’s total estimated direct labor cost for each quarter of the the upcoming fiscal year and for the year as a whole. 2&3. Calculate the company’s total estimated manufacturing overhead cost and the cash disbursements for manufacturing overhead for each quarter of the upcoming fiscal year and for the year as a whole.
Answer:
1. Total estimated direct labor cost = $148,800
2. Total estimated manufacturing overhead cost = $410,880
3. Total Cash disbursement for the fiscal year = $254,880
Explanation:
Please see attached detailed explanation of the above questions and answers.
A firm has fixed operating costs of $10,000, the sale price per unit of its product is $25, and its variable cost per unit is $15. The firm's operating breakeven point in units is ________ and its breakeven point in dollars is ________.
A) 1,000; $6,250.
B) 400; $10,000.
C) 400; $25,000.
D) 1,000; $25,000.
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Fixed costs= $10,000
Selling price= $25
Unitary variable cost= $15
To calculate the break-even point in units and dollars, we need to use the following formulas:
Break-even point in units= fixed costs/ contribution margin per unit
Break-even point in units= 10,000 / (25 - 15)
Break-even point in units= 1,000
Break-even point (dollars)= fixed costs/ contribution margin ratio
Break-even point (dollars)= 10,000 / (10/25)
Break-even point (dollars)= $25,000
Answer:
D) 1,000; $25,000.
Explanation:
Let us assume the company produces x units. The total cost is:
Total cost = fixed cost + variable cost × number of items = $10000 + 15 × x = 10000 + 15x
The revenue = number of unit × price per unit = x × $25 = 25x
At breakeven, the revenue and cost are equal, therefore:
25x = 10000 + 15x
25x - 15x = 10000
10x = 10000
x = 10000/10
x = 1000 units
The price at breakeven point = 25x = 25(1000) = $25000
Keller Cosmetics maintains an operating profit margin of 7% and asset turnover ratio of 4.
a. What is its ROA? (Enter your answer as a whole percent.)
b. If its debt-equity ratio is 1, its interest payments are $9,300 and taxes are $10,600, and EBIT is $26,500, what is its ROE?
Answer:
a. What is its ROA?
return on assets (ROA) = profit margin x asset turnover = 7% x 4 = 28%
mathematically it can be solved this way:
profit margin = net income / total sales
total sales = net income / 7%
asset turnover = total sales / total assets
total sales = 4 x total assets
net income / 7% = 4 x total assets
ROA = net income / total assets = 7% x 4 = 28%
b. If its debt-equity ratio is 1, its interest payments are $9,300 and taxes are $10,600, and EBIT is $26,500, what is its ROE?
ROE = profit margin x asset turnover x leverage
leverage = net income / earnings before taxes
net income = EBIT - interests - taxes
net income = $26,500 - $9,300 - $10,600 = $6,600
earnings before taxes = EBIT - interests = $26,500 - $9,300 = $17,200
leverage = $6,600 / $17,200 = 0.38372
ROE = 7% x 4 x 0.38372 = 10.74416% ≈ 10.74%
Select Foods Inc. uses activity-based costing to determine product costs. For each acitivty listeed in the left column, match an appropriate activity base from the right column. You may use items in the activity-base list more than once or not at all.
Activity Activity Base
Accounting reports Engineering change orders
Customer return processing Kilowatt hours used
Electric power Number of accounting reports
Human resources Number of customers
Inventory control Number of customer orders
Invoice and collecting Number of customer returns
Machine depreciation Number of employees
Materials handling Number of inspections
Order shipping Number of inventory transactions
Payroll Number of machine hours
Production control Number of material moves
Production setup Number of payroll checks processed
Purchasing Number of production orders
Quality control Number of purchase orders
Sales order processing Number of sales orders
Number of setups
Answer:
kindly check the explanation section.
Explanation:
So, without mincing words, let us dive straight into the solution to the question/problem. So, the question simply require matching Accounting reports that is the activity to the correct activity base for each of the activities provided.
Here is how it looks like;
Activity = Activity Base
[1]. Accounting reports = Number of Accounting reports.
[2]. Customer return processing = Number of customer returns.
[3]. Electric power = Kilowatts Hours used.
[4]. Human resources = number of employees.
[5]. Inventory control = number of inventory transactions.
[6]. Invoice and collecting = number of customers.
[7]. Machine depreciation = number of machine hours.
[8]. Materials handling = number of materials move.
[9]. Order shipping = number of customer orders.
[10]. Payroll = number of payroll checks proposed.
[11]. Production control = number of production orders.
[12]. Production setup = number of setups.
[13]. Purchasing = number of purchase orders.
[14]. Quality control = number of inspections.
[15]. Sales order processing = number of sales orders.
Jen Rogers withdrew a total of $15,000 from her business during the current year. The entry needed to close the withdrawals account is:_________
A. Debit Income Summary and credit Cash for $31,000.
B. Debit Jen Rogers, Withdrawals and credit Cash for $31,000 Debit Income Summary and credit Jen Rogers, Withdrawals for $31,000.
C. Debit Jen Rogers, Capital and credit Jen Rogers, Withdrawals for $31,000.
D. Debit Jen Rogers, Withdrawals and credit Jen Rogers, Capital for $31,000.
Answer: C. Debit Jen Rogers, Capital and credit Jen Rogers, Withdrawals for $15,000
Explanation:
The options do not match the question. Correct answer is posted.
When closing the Withdrawal account at the end of the period, the withdrawals need to be accounted for from the capital invested by the investor because the withdrawals would reduce the capital balance.
To do this the Capital account should be debited to signify that it is reducing. The opposing entry therefore will be to credit the Withdrawals account.
What current trend in the sport or entertainment area do you think will fall into disfavor with the consumer population
Answer:
Bantering of words between entertainers in the social media forums.
Explanation:
Today, it is not unusual to find entertainers in the sport and entertainment industries, exchanging words, and settling squabbles on social media platforms. Such behaviors are unprofessional and persistently resorting to these crude ways would create tensions among fans who are the consumer population.
Most fans who are enlightened would definitely not be favorably disposed to these trends. Entertainers should do well not to foster disunity among themselves.