Answer:
Date Particular Debit Credit
8/3 Purchases 11,941
Account payable 11,941
8/6 Cost of good sold 13,088
Inventory 13,088
8/6 Account Receivable 18,572
Cash 2,400
Revenue 20,972
8/16 Wages expense 2,750
Cash 2,750
8/20 Cash 17,046
Account Receivable 17,046
8/27 Account payable 14,635
Cash 14,635
Bridgeport Inc. wishes to accumulate $1,092,000 by December 31, 2030, to retire bonds outstanding. The company deposits $168,000 on December 31, 2020, which will earn interest at 10% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,092,000 is available at the end of 2030. (The quarterly deposits will also earn at a rate of 10%, compounded quarterly.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Answer: $9,479
Explanation:
The number of periods = 10 years * 4 quarters = 40 periods
Interest per quarter = 10%/4 = 2.5%
$168,000 has been deposited. The value of this cash after 10 years is;
= 168,000 ( 1 + 2.5%) ^ 40
= $451,090.72
Out of $1,090,000, the amount remaining is;
= $1,090,000 - 451,090.72
= $638,909.28
They need to deposit an annuity per quarter to get to $638,909.28.
Future Value of Annuity = Annuity * ([1 + I]^N - 1 )/I
638,909.28 = Annuity * [(1+0.025)^40 - 1] /0.025
638,909.28 = Annuity * 67.40255
Annuity = 638,909.28/67.40255
= $9,479
Tom Cruise Lines Inc. issued bonds five years ago at $1,000 per bond. These bonds had a 20-year life when issued and the annual interest payment was then 13 percent. This return was in line with the required returns by bondholders at that point as described below:
Real rate of return 4 %
Inflation premium 5
Risk premium 4
Total return 13 %
Assume that five years later the inflation premium is only 3 percent and is appropriately reflected in the required return (or yield to maturity) of the bonds. The bonds have 15 years remaining until maturity. Use Appendix B and Appendix D.
Answer:
"1143.817" is the appropriate answer.
Explanation:
According to the question:
Risk premium is:
= [tex]4+3+4[/tex]
= [tex]11 \ percent[/tex]
K = N
⇒ Bond Price = [tex]\Sigma [\frac{Coupon}{(1 + YTM)^k} ] + \frac{Per \ value}{(1 + YTM)^N}[/tex]
[tex]k = 1[/tex]
K = 15
On putting the values, we get
⇒ Bond Price = [tex]\Sigma [\frac{13\times \frac{1000}{100} }{(1 + \frac{11}{100})^k} ] + \frac{1000}{(1 + \frac{11}{100} )^{15}}[/tex]
= [tex]1143.817[/tex]
Your client, Bob, is the CEO of a corporation that has 12 stockholders who are also the only employees of the business. The corporation operates a boat dealership in Sherman, Texas. The corporation has accumulated earnings and profits of $3,000,000, not including the current year’s taxable income, which is expected to be $800,000. No dividends have been paid to stockholders. Bob has been very pleased with the corporation’s performance and he wants to reward the stockholders.
1. Why should Bob declare a cash dividend over giving stockholders a bonus?2. Why should Bob not consider paying a larger year-end bonus to his employee/stockholders’
Answer:
1. Why should Bob declare a cash dividend over giving stockholders a bonus?
Bob should not declare a cash dividend, instead he should give the employees/stockholders a bonus. A corporation distributes dividends with their after tax income, while bonuses actually decrease net income and lowers taxes. it is always better to pay less taxes.
2. Why should Bob not consider paying a larger year-end bonus to his employee/stockholders’.
In this case, if you have to choose between declaring a dividend or paying a bonus, Bob should definitely pay a bonus. But the bonus should not be larger than the corporation's expected income. It is not a good idea to incur in an operating loss due to huge bonuses.
Costs are transferred from the balance sheet to the income statement as cost of goods sold when ________. Group of answer choices
Answer: a. finished goods are sold
Explanation:
Finished goods stay in the balance sheet as the Inventory that the company has and it will be reflected at cost.
When the Finished goods are sold however, this cost to make the finished goods will be transferred to the Income statement as Cost of goods sold so that the company will be able to determine its Gross Profit.
Julie Brown is a single woman in her late 20s. She is renting an apartment in the fashionable part of town for $1,000 a month. After much thought, she's seriously considering buying a condominium for $175,000. She intends to put 20 percent down and expects that closing costs will amount to another $5,000; a commercial bank has agreed to lend her money at the fixed rate of 6 percent on a 15-year mortgage. Julie would have to pay an annual condominium owner's insurance premium of $560 and property taxes of $1,000 a year (she's now paying renter's insurance of $550 per year). In addition, she estimates that annual maintenance expenses will be about 0.5 percent of the price of the condo (which includes a $30 monthly fee to the property owners' association). Julie's income puts her in the 25 percent tax bracket (she itemizes her deductions on her tax returns), and she earns an after-tax rate of return on her investments of around 4 percent.
Required:
a. Evaluate and compare Julie’s alternatives of remaining in the apartment or purchasing the condo.
b. Working with a friend who is a realtor, Julie has learned that condos like the one that she’s thinking of buying are appreciating in value at the rate of 3.5 percent a year and are expected to continue doing so. Would such information affect the rent-or-buy decision made in a?
c. Discuss any other factors that should be considered when making a rent-or-buy decision.
d. Which alternative would you recommend for Julie in light of your analysis?
Answer:
a. Julie should continue live in her own apartment.
b. She should then purchase the condo
c. Home maintenance cost and tax benefit.
d. She should live in her own apartment and rent the condo after purchase.
Explanation:
Buying cost of condo $175,000
Loan interest amount $8,400 [ $175,000 * 80% * 6%]
Insurance premium $10 [560 - 550]
Property taxes $1,000
Maintenance expense $875 [$175,000 * 0.5%]
Total additional cost per year $10,280
If Julie plans to buy the condo she will have to incur additional cost of $10,280 per annum.
b. If the price of condo increases by 3.5% per year then she should consider buying the condo.
Your neighbor is asking you to invest in a venture that will double your money in 7 year(s). Compute the annual rate of return that he is promising you?
Answer: 10.3%
Explanation:
The Rule of 72 is useful here. The rule of 72 can be used to calculate the amount of time it would take to double an investment by dividing 72 by the interest rate.
As we already have the number of years the formula is;
7 = 72/i
i = 72/7
i = 10.3%
Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level.
Units Produced Total Cost
March 10,029 $16,724
April 8,765 15,312
May 10,480 17,492
June 8,600 14,860
July 9,293 15,781
Required:
a. Compute the variable cost per unit using the high-low method.
b. Compute the fixed cost elements using the high-low method.
c. Estimate the total cost if the company produces 8,170 units.
Answer & Explanation:
a. Using the high-low method, Variable cost per unit is;
[tex]= \frac{Highest Variable Cost - Lowest Variable Cost}{Highest number of units - Lowest number of Units} \\\\= \frac{17,492 - 14,860}{10,480 - 8,600} \\\\= $1.40[/tex]
= $1.40
b. Fixed Cost
= Total Cost at lowest unit - Variable costs at lowest unit
= 14,860 - (1.4 * 8,600)
= $2,820
c. Variable cost at 8,170 units + Fixed cost
= (8,170 * 1.4) + 2,820
= $14,258
Atlantic Video, a small video rental store in Philadelphia, is open 24 hours a day, and-due to its proximity to a major business school-experiences customers arriving around the clock. A recent analysis done by the store manager indicates that there are 30 customers arriving every hour, with a standard deviation of interarrival times of 2 minutes. This arrival pattern is consistent and is independent of the time of day. The checkout is currently operated by one employee, who needs on average 1.7 minutes to check out a customer. The standard deviation of this check-out time is 3 minutes, primarily as a result of customers taking home different numbers of videos.
Required:
a. If you assume that every customer rents at least one video (i.e., has to go to the checkout), what is the average time a customer has to wait in line before getting served by the checkout employee (i.e., waiting time in queue)?
b. If there are no customers requiring checkout, the employee is sorting returned videos, of which there are always plenty waiting to be sorted. How many videos can the employee sort over an 8-hour shift (assume no breaks) if it takes exactly 1.5 minutes to sort a single video?
c. What is the average number of customers who are at the checkout desk, either waiting or currently being served?
Answer:
A.19.82 minutes
B. 48 sorts
C. 10.75
Explanation:
A. Calculation for the average time
Based on Interarrival time 30 customers per hour will give us 1 customer per 2 minutes
Hence,
a = 2 min
Cva= 1
Process time which is p = 1.7 min
CVp will be :3 min/1.7 min = 1.765
Utilization will be calculated as :p/a = 1.7/2 = 0.85
Now let find the average time
Tq= 1.7 x [0.85/(1-0.85)]x[(1^2 + 1.765^2)/2]
Tq= 19.82 minutes
Therefore the average time will be 19.82 minutes
B. Calculation for How many videos can be sort
Utilization will be calculated as: p/a = 1.7/2 = 0.85
Idle time will be calculated as : 0.15 x 8 hours
Idle time = 1.2 hours =
1.2 hours converted to minutes will be 72 minutes
Hence,
Number of videos sorted = 72 minutes / 1.5
Number of videos sorted = 48 sorts
Therefore the numbers of video that can be sort will be 48 sort
C. Calculation for the average number of customers who are at the checkout desk
Tq= 19.82 minutes
p = 1.7
T = Tq+ p = 21.52 minutes
Iq= R x Tq= 1/a x 19.82 = 0.5
Iq=0.5 * 19.82
Iq = 9.9 customers
Hence we are going to use this formula to find the average number of customers
I = Iq+ Ip= Iq+ u
Let plug in the formula
I= 9.9 + 0.85
I= 10.75
Therefore the average number of customers who are at the checkout desk will be 10.75
On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $13 million. The loss from operations of the segment during 2021 was $4.8 million. Pretax income from continuing operations for the year totaled $7.8 million. The income tax rate is 25%.
Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)
Answer and Explanation:
The preparation of the lower portion is presented below:
Income from the continuing operation
before income tax $7,800,000
Less: Income tax expenses ($7,800,000 × 25%) (1,950,000)
Income from continuing operation(A) 5,850,000
Discontinued operation:
Loss from operation discontinued components
($15 - $13 - $4.8) ($2,800,000)
Income tax benefits ($2,800,000 × 25%) $700,000
Loss on discontinued operation(B) ($21,000,000)
Net loss (A - B) -$15,150,000
Nanjones Company manufactures a line of products distributed nationally through wholesalers. Presented below are planned manufacturing data for the year and actual data for November of the current year. The company applies overhead based on planned machine hours using a predetermined annual rate.
Planning Data
Annual November
Fixed overhead $1,200,000 $100,000
Variable overhead $2,400,000 $220,000
Direct labor hours 48,000 4,000
Machine hours 240,000 22,000
Data for November
Direct labor hours (actual) 4,200
Direct labor hours (plan based on output) 4,000
Machine hours (actual) 21,600
Machine hours (plan based on output) 21,000
Fixed overhead $101,200
Variable overhead $214,000
Nanjones’ variable overhead spending variance for November was:
a. $6,000 favorable.
b. $2,000 favorable.
c. $14,000 unfavorable.
d. $6,000 unfavorable.
Answer:
Variable manufacturing overhead spending variance= $2,000 favorable
Explanation:
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= 2,400,000 / 240,000
Predetermined manufacturing overhead rate= $10 per machine hour
To calculate the variable overhead spending variance, we need to use the following formula:
Variable manufacturing overhead spending variance= (standard rate - actual rate)* actual quantity
Variable manufacturing overhead spending variance= (15 - 214,000/21,600)*21,600
Variable manufacturing overhead spending variance= $2,000 favorable
The Nanjones' variable overhead spending variance for November is a. $6,000 favorable.
Data and Calculations:
Planning Data Actual Data Variances
Annual November November
Fixed overhead $1,200,000 $100,000 $101,200 $1,200 U
Variable overhead $2,400,000 $220,000 $214,000 $6,000 F
Direct labor hours 48,000 4,000 4,200 200 U
Machine hours 240,000 22,000 21,600 400 F
Thus, the Nanjones' variable overhead spending variance for November is the difference between planned expenses and actual expenses, which is $6,000 ($214,000 - $220,000) favorable.
Learn more about variable overhead spending variance here: https://brainly.com/question/4535958
BMW’s vehicle-assembly facility in South Carolina represents a direct investment inside the United States by the German manufacturer. This facility is an example of:
Answer:
Foreign direct investment.
Explanation:
BMW’s vehicle-assembly facility in South Carolina represents a direct investment inside the United States by the German manufacturer. This facility is an example of foreign direct investment.
A foreign direct investment (FDI) can be defined as an investment made by an individual or business entity (investor) into an investment market (industry) located in another country. The investor here, shares a different country of origin from the country where his investment is located.
In a foreign direct investment (FDI), an investor must establish his business, factory and operations in a foreign country or acquire assets in a business that is being operated in a foreign country.
Additionally, foreign direct investment (FDI) are categorized into three (3) main types and these are;
1. Vertical FDI: it involves establishing a different business that is however similar to the main business owned by the investor.
2. Horizontal FDI: it involves establishing the same type of business in a foreign country as owned in the investor's country.
3. Conglomerate FDI: it involves establishing a business that is completely different in another (foreign) country.
Consider the markets for three products below. Indicate which characteristics of a competitive market are met by these markets.
Market: gasoline
a. Large number of buyers unanswered
b. Standardized good unanswered
c. Full information unanswered
d. No transaction cost unanswered
e. Participants are price takers unanswered
Market: barbershop haircuts
a. Large number of buyers unanswered
b. Standardized good unanswered
c. Full information unanswered
d. No transaction cost unanswered
e. Participants are price takers unanswered
Market: bicycles
a. Large number of buyers unanswered
b. Standardized good unanswered
c. Full information unanswered
d. No transaction cost unanswered
e. Participants are price takers
Answer:
Market: gasoline (monopolistic competition with few sellers and many buyers)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Market: barbershop haircuts (monopolistic competition with a lot of sellers and many buyers, but differentiated service)
a. Large number of buyers
d. No transaction cost
e. Participants are price takers
Market: bicycles (resembles a perfect competition market)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Explanation:
No market provides full information to all participants. The closest you can get are some markets where commodities are traded and the price is set be certain exchange institutions. E.g. the Chicago Mercantile Exchange sets the price of agricultural commodities in the US, and most trading companies follow that price but variations still exist (even though they are minimum).
It is not possible for all the consumers of gasoline, haircuts or bicycles to know the exact price of all the goods the services since the price varies from one seller to another. Even if they are part of a retail chain, the price varies. Full information only exists in theoretical models, it doesn't exist in the real world.
Market: gasoline (monopolistic competition with few sellers and many buyers)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Market: barbershop haircuts (monopolistic competition with a lot of sellers and many buyers, but differentiated service)
a. Large number of buyers
d. No transaction cost
e. Participants are price takers
Market: bicycles (resembles a perfect competition market)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Explanation:
No market provides full information to all participants. The closest you can get are some markets where commodities are traded and the price is set be certain exchange institutions. E.g. the Chicago Mercantile Exchange sets the price of agricultural commodities in the US, and most trading companies follow that price but variations still exist (even though they are minimum).
It is not possible for all the consumers of gasoline, haircuts or bicycles to know the exact price of all the goods the services since the price varies from one seller to another. Even if they are part of a retail chain, the price varies. Full information only exists in theoretical models, it doesn't exist in the real world.
A company has total equity of $2,160, net working capital of $240, long-term debt of $1,070, and current liabilities of $4,500. What is the company's net fixed assets?
Answer:
$2,990
Explanation:
A company's fixed asset consist of its plants and machineries, motor vehicles , buildings etc.
To get the company's net fixed asset, we would subtract the networking capital from total equity and add up long term debt.
Therefore,
Net fixed asset = $2,160 total equity - $240 working capital + $1,070 long term debt
= $2,990
Hence net fixed asset is $2,990
Global strategic planning is a primary function of a company's managers, and the process of strategic planning provides a formal structure for undertaking this process. Companies are confronting a set of environmental forces that are increasingly complex, global, and subject to rapid change. In response, many international firms have found it necessary to institute formal global strategic planning to provide a means for top management to identify opportunities and threats from all over the world.
Required:
Formulate strategies to handle them, and stipulate how to finance and manage the implementation of these strategies?
Answer and Explanation:
The steps in global strategic planning include
Review or develop Vision & Mission: business aims to understand what its vision and mission is, reviewing one already there or developing a new one based on the current business environment and changes
Business and operation analysis. Here the business aims to understand it's environment in terms of it strengths and weaknesses internally and externally
Develop Strategic Options: business looks to find all strategic options available and weighs options to select best strategy on the basis of its business and operation analysis to understand strategy to tackle the current business situation
Establish Strategic Objectives: strategy objectives are developed to tackle new business environment
Strategy Execution Plan: the execution plan involves an effective plan that can duly implemented
Establish Resource Allocation: resources are allocated to execute the global strategic plan
Execution Review: execution is reviewed and quantified to see if the plan is being met
Jeremy is married to Amy, who abandoned him in 2019. He has not seen or communicated with her since April of that year. He maintains a household in which their son, Evan, lives. Evan is age 25 and earns over $6,000 each year. For tax year 2020, Jeremy's filing status is: a.Head of household. b.Surviving spouse. c.Married, filing jointly. d.Married, filing separately.
Answer: d. Married, filing separately.
Explanation:
From the question, we are informed that Jeremy is married to Amy, who abandoned him in 2019 and that he has not seen or communicated with her since April of that year.
We are further told that he maintains a household in which their son, Evan, lives and that Evan is age 25 and earns over $6,000 each year.
For tax year 2020, Jeremy's filing status is married, filling separately. This is because we are told that Jeremy hasn't has not seen or communicated with her since April. Since they're not divorced, it means they're still married but filing separately.
Amanda is a twenty-four year old student. For two years Amanda has been going to gym and using weight equipment, stationary bicycles, and step machines to improve muscle tone. One spring afternoon Amanda was using a weight machines in the usual way (and the way she was showed how to use it), when the machine malfunctioned causing her serious injury. The company that made the machine, Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem.
If Amanda files a lawsuit against Musclematic, the company might want to seriously consider:
a. How this litigation will affect its goodwill
b. Whether or not a settlement with Amanda is a viable option
c. Whether this suit will adversely affect other business relationships
d. The costs associated with litigating this claim
e. All of the other choices
Answer:
e. All of the other choices
Explanation:
Product liability is the responsibility that a company bears for injury caused by its products as a result of a defect.
In this instance Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem.
So for any injury users have they will be liable.
If Amanda files a lawsuit against Musclematic they will have to consider:
- How this litigation will affect its goodwill
- Whether or not a settlement with Amanda is a viable option
- Whether this suit will adversely affect other business relationships
- The costs associated with litigating this claim
This is because they will most likely lose the case.
Tariff effects: An overview
Consider two hypothetical countries, Alagir and Ertil. Both countries produce iGadgets, and the price of iGadgets is lower in Alagir than in Ertil. If Alagir and Ertil open to trade, producers in would be more likely to lobby their government for an import tariff on iGadgets in order to protect themselves from foreign competition.
Which of the following statements about the effects of the tariff compared to free trade are correct?
A. In Alagir, workers in iGadget importing companies lose their jobs.
B. In Ertil, some workers at retail and shipping companies that import iGadgets lose their jobs.
C. In Ertil, consumers pay more for the domestic iGadgets.
D. In Ertil, workers in iGadget importing companies see more jobs available to them.
E. In Ertil, producers of iGadgets are willing to expand output.
Answer:
1. If Alagir and Ertil open to trade, producers in Ertil would be more likely to lobby their government for an import tariff on iGadgets in order to protect themselves from foreign competition.
Producers in Ertil would be at a disadvantage because people in Ertil would simply buy the lower priced iGadgets from Alagir so the producers in Ertil would lobby their Government for tariffs to protect them.
2.
B. In Ertil, some workers at retail and shipping companies that import iGadgets lose their jobs.If an import tariff is imposed, people will find the goods from Alagir more expensive and so will import less. The companies who did the shipping and retail of the goods from Alagir would have to let go of some people to save costs or because they would close down.
C. In Ertil, consumers pay more for the domestic iGadgets.With tariffs to protect them, the domestic producers in Ertil can charge higher prices.
E. In Ertil, producers of iGadgets are willing to expand output.With the tariff protecting them, the producers will be willing to expand output so that they can sell more iGadgets at the new higher price.
A company sold land, investments, and issued their own common stock for $11 million, $15 million, and $21 million, respectively. They also purchased treasury stock, equipment, and a patent for $2 million, $2 million, and $4 million, respectively. a. What amount should the company report as net cash flows from investing activities
Answer:
Net cash flow from investing activities: $20 million
Net cash flow from financing activities: $19 million
Explanation:
a. Calculation for flow from investing activities
Sale of land $11
Sale of investments 15
Purchase of equipment (2)
Purchase of patent (4)
Net cash flow from investing activities: $20
b. Calculation for Cash flow from financing activities
Issuance of common stock $21
Purchase treasury stock (2)
Net cash flow from financing activities: $19
Therefore Net cash flow from investing activities is $20 million while Net cash flow from financing activities is $19 million
Ayayai Inc. wishes to accumulate $1,066,000 by December 31, 2030, to retire bonds outstanding. The company deposits $164,000 on December 31, 2020, which will earn interest at 8% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,066,000 is available at the end of 2030.
Answer:
Quarterly deposit= $11,653.28
Explanation:
Future Value= $1,066,000
Number of periods= 10*4= 40 quarters
Interest rate= 0.08/4= 0.02
First, we need to calculate the future value of the initial investment. Then, determine the difference required to reach the objective.
FV= PV*(1+i)^n
FV= 164,000*(1.02^40)
FV= $362,118.50
Difference= 1,066,000 - 362,118.5= $703,881.5
To calculate the quarterly deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= quarterly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (703,881.5*0.02) / [(1.02^40) - 1]
A= $11,653.28
Landhill Corporation is authorized to issue 49,000 shares of $5 par value common stock. During 2020, Sandhill took part in the following selected transactions.
1. Issued 4,500 shares of stock at $45 per share, less costs related to the issuance of the stock totaling $7,900.
2. Issued 1,100 shares of stock for land appraised at $49,000. The stock was actively traded on a national stock exchange at approximately $46 per share on the date of issuance.
3. Purchased 470 shares of treasury stock at $41 per share. The treasury shares purchased were issued in 2016 at $38 per share.
Required:
a. Prepare the journal entry to record item 1.
b. Prepare the journal entry to record item 2.
c. Prepare the journal entry to record item 3 using the cost metho
Answer: Please see answer in explanation column
Explanation:
1. Journal to record common stock issued
Account title Debit Credit
Cash $210,400
Common stock $22,500
Paid in capital in excess of par $187,900
common stock
Calculation:
Cash = 4,500 x $45 + $7900= $210,400
Common stock =4,500 x $5=$22,500
Paid in capital in excess of par common stock = Cash - Common stock =$210,400-$22,500=$187,900
2) To reccord Land purchased in exchange of common stock
Account title Debit Credit
Land $50,600
Common stock $ 5,500
Paid in capital in excess of par $45,100
common stock
Calculation:
Land= 1,100 x $46 = $50,600
Common stock =1,100 x $5=$5,500
Paid in capital in excess of par common stock = 1100 x (46-5)$41=45,100
3) To record purchase of treasury stock
Account title Debit Credit
Treasury stock $19,270
Cash $19,270
Calculation:
Treasury stock = 470 shares x$41= $19,270
Carving Creations jointly produces wood chips and sawdust used in agriculture. The wood chips and sawdust are actually by-products of the company’s core operations, but Carving Creations accounts for them just like normally produced goods because of their large volumes. One jointly produced batch yields 3,000 cubic yards of wood chips and 10,000 cubic yards of sawdust, and the estimated cost per batch is $21,400. However, the joint production of each good is not equally weighted. Management at Carving Creations estimates that for the time it takes to produce 10 cubic yards of wood chips in the joint production process, only 2 cubic yards of sawdust are produced.
Given this information, allocate the joint costs of production to each product using the weighted average method.
Joint Product Allocation
Sawdust _____$
Wood chips _____
Totals _____ $
Answer:
Carving Creations
Joint Product Allocation
Sawdust _____$ 12,840 ($0.428 * 30,000)
Wood chips _____ $8,560 ($0.428 * 20,000)
Totals _____ $21,400
Explanation:
a) Data and Calculations:
Wood chips = 3,000 cubic yards
Sawdust = 10,000 cubic yards
Estimated batch cost = $21,400
Weight assigned to wood chips production = 10
Weight assigned to sawdust production = 2
Weighted Allocation of the joint costs:
Wood chips = 3,000 * 10 = 30,000
Sawdust = 10,000 * 2 = 20,000
Total weighted units = 50,000
Allocation rate based on weights = $21,400/50,000
= $0.428
Joint Product Allocation
Sawdust _____$ 12,840 ($0.428 * 30,000)
Wood chips _____ $8,560 ($0.428 * 20,000)
Totals _____ $21,400
Tasty Subs acquired a delivery truck on October 1, 2021, for $25,600. The company estimates a residual value of $1,600 and a six-year service life. Required: Calculate depreciation expense using the straight-line method for 2021 and 2022, assuming a December 31 year-end.
Answer:
Depreciation Expense 2021= $1,000
Depreciation Expense 2022= $4,000
Explanation:
Calculation for depreciation expense using the straight-line method for 2021 and 2022
Using this formula
Depreciation = ( Cost − Residual Value )/
Useful Life
Where,
Cost of Truck on October 1,2021= $25,600
Residual Value = $1,600
Useful life of truck = 6 years service life
Let plug in the formula
2021
Depreciation Expense = $25,600 - $1,600 / 6 years * 3/12
Depreciation Expense 2021= $1,000
Note October 1 to 31 December 2021 will give us 3 months
2022
Depreciation Expense=$25,600 - $1,600 / 6 years
Depreciation Expense 2022= $4,000
Therefore the Depreciation Expense for 2021 will be $1,000 while the Depreciation Expense for 2022 will be $4,000
So, I'm just wondering, but what is the best job in Mesa, AZ?
I know that's not what this website is for, but I need to know and this is the only website I can go to for help.
Answer:
I'm not really sure but you can definitely google the highest paid jobs there.
Selected Information from Balance Sheets (As of Year End for Years 0 and 1)
Year 0 Year 1
Cash 1,000 2,000
Accounts Receivables 1,000 5,000
Inventory 5,000 4,000
Property, Plant and Equipment (net) 12,000 11,000
Accounts Payable 5,000 4,000
Unearned Revenue 2,000 1,000
Bonds Payable 5,000 6,000
Common Stock 3,000 4,000
Retained Earnings 5,000 7,000
Income Statement (Year 1)
Sales 20,000
Costs of Goods Sold (8,000)
Wage Expense (4,000)
Depreciation Expense (2,000)
Loss from PP&E Sale (1,000)
Net Income Before Tax 5,000
Tax Expense (2.000)
Net Income 3.000
In the space provided, prepare the Operating section of the statement of cash flow for Year 1, using the indirect approach.
Answer:
The Operating Activities section of the Statement of Cash Flow for Year 1:
Net Income $3,000
Add non-cash expenses:
Depreciation Expense 2,000
Loss from PP&E Sale 1,000
Operating cash flow 6,000
Changes working capital -5,000
Net cash flow from operating activities 1,000
Explanation:
Changes in working capital items:
Year 0 Year 1 Changes
Accounts Receivables 1,000 5,000 -4,000
Inventory 5,000 4,000 1,000
Accounts Payable 5,000 4,000 -1,000
Unearned Revenue 2,000 1,000 -1000
Net changes in working capital -5,000
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 36,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $82,100 consisted of $58,000 of direct materials costs and $24,100 of conversion costs.
During the month, the forming department started 520,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 35% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department is as follows:
Beginning work in process inventory $82,100
Direct materials added during the month 1,942,930
Conversion added during the month 1,359,730
1A. Calculate the equivalent units of production for the forming department.
1B. Calculate the costs per equivalent unit of production for the forming department.
1C. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.
Answer:
Please see attached detailed solution
Explanation:
1a. Direct material 550,000
Conversion 530,000
1b. Direct materials $3.64 per EUP
Conversion $2.61 per EUP
1c. Costs assigned to the forming department's output
• Total cost of ending work in process $160,300
• Total costs assigned $3,384,760
Please see attached detailed solution to the above questions and answers.
QUESTION 2 / 10
Which of the following is the BEST reason to use cash for making purchases?
A. Keeping track of how much you have spent is simple.
B. Splitting bills with friends is easier.
C. Getting more cash from an ATM machine is easy to do.
D. Knowing what you have spent your money on is
simple.
The best reason to use cash for making purchases is keeping track of how much you have spent is simple. Thus, option A is correct.
What is purchases?Purchasing is the process through which a company or organization acquires products or services in order to achieve its objectives. Although numerous organizations seek to establish standards in the purchasing process, practices can vary widely amongst firms.
Cash makes budgeting and sticking to it simpler. When you pay with cash that you've planned for purchases, it's easy to keep track of where your money is going. It's also eye-opening and keeps you grounded in terms of how much money is going out vs coming in from week to week or month to month.
The main incentive to utilize cash for purchases is that it is simple to keep account of the amount you have spent. As a result, option A is correct.
Learn more about purchases here:
https://brainly.com/question/24112214
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In the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical Union. Atlanta agreed to a type of arrangement known as a(n)
Answer: closed shop
Explanation:
From the question, we are informed that in the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical Union.
It should be noted that here, Atlanta agreed to a type of arrangement known as closed shop. This occurs when the workers have to belong to a particular union before they'll be employed. This was legal in 1930 but it was later declared illegal by Taft Hartley Act.
Carol wants to invest money in a 6% Certificate of Deposit (CD) that compounds semiannually. Carol would like the account to have a balance of $50,000 five years from now. How much must Carol deposit to accomplish her goal
Answer:
the present value is $37,230.10
Explanation:
The computation of the present value is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^time period
$50,000 = Present value × (1 + 0.06 ÷ 2)^5 × 2
$50,000 = Present value × (1.03)^10
$50,000 = Present value × 1.343
So, the present value is $37,230.10
hence, the present value is $37,230.10
We simply applied the above formula
Farr Corp. purchased a new delivery van on January 1, 2020 and chose to use the double declining balance depreciation method. The van cost $48,000 with an estimated life of five years and a $12,000 salvage value. After the year end adjustment, how much accumulated depreciation would be recorded on the van at December 31, 2021
Answer:
$30,720
Explanation:
First, we will calculate the depreciation for 2020.
Depreciation for 2020 = ($48,000 cost - 0) × 40%
= $19,200
Depreciation for 2021 = ($48,000 cost - $19,200 depreciation 2020) × 40%
= $11,520
Accumulated depreciation at the end of 2021
= $11,520 + $19,200
= $30,720
The value of $30,720 will be recorded as accumulated depreciation on the value of the van at December 31, 2021.
• Note, the asset's annual depreciation will be 20% of the depreciation cost since its useful life is 5. It will however be 40% since we are using the double declining balance method.
MotorCar, a major automobile company headquartered in Detroit, is concerned about being left behind in the race to produce autonomous vehicles. There remains much uncertainty regarding the future of autonomous vehicle technology. Some industry experts say fully self-driving cars could be brought to market within a couple of years. Others believe the technology could take decades to develop. And still others are skeptical that the technology will ever be safe enough to bring to the automobile mass market. Further, in addition to safety and technological hurdles, there are regulatory obstacles as well. However, MotorCar has decided that it needs to innovate.
The company is considering (1) increasing funding to its existing R&D department to expand to the development of AI (artificial intelligence) technology, needed for self-driving vehicles; (2) launching a fully owned subsidiary (a new company that it owns and controls) focused exclusively on AI; or (3) partnering with a major Silicon Valley tech company that has already made considerable progress on AI technology.
Required:
What do you see as some of the potential benefits and risks of these different organizational approaches?
Answer:
(1) increasing funding to its existing R&D department to expand to the development of AI (artificial intelligence) technology, needed for self-driving vehicles
This strategy would produce the benefit of puttinig the company on the edge of the development of AI in order to produce driverless vehicles.
The risk is that the investment could be too high for the initial benefit, since there is no certainty that driveless cars will be in the market in the short-term.
(2) launching a fully owned subsidiary (a new company that it owns and controls) focused exclusively on AI
This strategy would produce a similar benefit as the strategy above. However, it could also benefit from a little bit less administrative control because in this case, the AI development would be in charge of a subsidiary, not a division.
The risk is the same as above: initial investments may be too high for the initial benefits.
(3) partnering with a major Silicon Valley tech company that has already made considerable progress on AI technology.
This strategy produces the benefit of requiring less investment while still putting the company on the edge of AI research. However, the risk lies in loss of control over the thecnology, and possible future conflicts with the partner company.