Answer and Explanation:
The matching is as follows:
1. Deferred revenue - the cash would be received in the present period and the same would be reported as a revenue for the future period
2. Accrued expense - It would be recorded as an expense for a present period but the cash would be paid in the future
3. Prepaid expense - The cash is paid or the obligation is to the pay the cash in the present period but the expense would be recorded in the future period
4. Accrued revenue - the revenue is recorded in the present period but the cash would be collected in a future period
5. It is April 19, 2012 and you suddenly remember that your credit card bill
is due the next day. You have the money in your checking account to pay
the bill in full. The mailing address for the credit card company is a few
thousand miles away so you assume that it will take a few days for your
check to arrive. What should you do?
Answer: Take a picture of the check and email it to the company's address.
Based on the information, what should you do is Access your credit card account online to see if they have online options available that will get the payment to them by April 20th. Thus the correct option is B.
What is a credit card?A credit card is said to be a type of plastic money that allows an individual to purchase goods on credit and pay back the amount later on some specified rate of interest being charged on it.
In order to avoid excessive spending, one should keep in mind that if a credit card debt is left unpaid at the end of the credit limit, interest will be imposed on the remaining balance.
Paying late fees results in unneeded costs, thus it's wiser to Check your credit card account online to see if there are any online solutions that will allow you to send the payment by April 20th without incurring any additional payment fees.
Therefore, option B is appropriate.
Learn more about credit cards, here:
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The complete question is Probably
It is April 19, 2012 and you suddenly remember that your credit card bill is due the next day. You have the money in your checking account to pay the bill in full. The mailing address for the credit card company is a few thousand miles away so you assume that it will take a few days for your check to arrive. What should you do?
answer choices
Take the letter to the post office to get it postmarked on or before April 20th since that will be fine with the credit card company.
Access your credit card account online to see if they have online options available that will get the payment to them by April 20th.
Send the check to your credit card company through your bank’s bill pay service which guarantees 48 hour delivery.
Call the credit card company to tell them you will be late with your payment.
2
Highlight four ways in which commercial banks differ from non-bank Financial institutions.
(4mks)
Commercial bank from non bank financial institution
Answer:
Commercial banks give short-term loans while non-bank financial institutions offer medium and long-term loans. -commercial banks offer current account while non-bank institutions do not. -commercial banks offer all types of accounts while non-bank financial institutions offer only savings and fixed deposit accounts.
Hope it helped!!!
Which of the following statements is FALSE? Group of answer choices Fundamentally, all interest rates are determined by the Federal Reserve. The Federal Reserve determines very short-term interest rates through its influence on the federal funds rate. The interest rates that are quoted by banks and other financial institutions are nominal interest rates. The interest rates that banks offer on investments or charge on loans depend on the horizon of the investment or loan.
Answer:
I think the false answer would be the first
The following information pertains to Darius Jakande's personal financial transactions. Opening Balances - December 1, 2018 Cash $14,200 Contents of Home $1,900 Automobile $19,900 House $156,900 Unpaid Accounts $6,400 Bank Loan $55,700 Transactions for the month of December 2018. 1. Paid maintenance expenses for the month of December with $800 cash. 2. Purchased a new computer worth $2,800 with cash. 3. Paid credit card liability of $6,400 (Unpaid Accounts) in full. 4. Paid telephone, electricity and water bill for December with $600 cash. 5. Purchased $2,100 of groceries and goods for personal consumption with cash. 6. Deposited $4,100 salary earned during the month. Do not enter dollar signs or commas in the input boxes. Use the negative sign for a deficit. The T-Account fields are labeled by transaction number. Record each transaction by entering the value into the corresponding T-Account field. Required a) Using the information provided, record the opening balances in the T-accounts. b) Record the transactions for the month of December in the T-accounts.
Answer:
Darius Jakande
T-accounts:a) Opening balances:
Cash
Account Title Debit Credit
Beginning balance 14,200
Contents of Home
Account Title Debit Credit
Beginning balance 1,900
Automobile
Account Title Debit Credit
Beginning balance 19,900
House
Account Title Debit Credit
Beginning balance 156,900
Unpaid Accounts
Account Title Debit Credit
Beginning balance 6,400
Bank Loan
Account Title Debit Credit
Beginning balance 55,700
Net Worth
Account Title Debit Credit
Beginning balance 130,800
b) Transactions for the month of December:
Cash
Account Title Debit Credit
Beginning balance 14,200
Maintenance expenses 800
Computer 2,800
Unpaid accounts 6,400
Utilities expenses 600
Food expenses 2,100
Salary 4,100
Contents of Home
Account Title Debit Credit
Beginning balance 1,900
Computer
Account Title Debit Credit
Cash 2,800
Automobile
Account Title Debit Credit
Beginning balance 19,900
House
Account Title Debit Credit
Beginning balance 156,900
Unpaid Accounts
Account Title Debit Credit
Beginning balance 6,400
Cash 6,400
Bank Loan
Account Title Debit Credit
Beginning balance 55,700
Net Worth
Account Title Debit Credit
Beginning balance 130,800
Salary Income
Account Title Debit Credit
Cash 4,100
Maintenance Expenses
Account Title Debit Credit
Cash 800
Utilities Expenses
Account Title Debit Credit
Cash 600
Food Expenses
Account Title Debit Credit
Cash 2,100
Explanation:
a) Data and Calculations:
Opening Balances - December 1, 2018
Cash $14,200
Contents of Home $1,900
Automobile $19,900
House $156,900
Total assets $192,900
Unpaid Accounts $6,400
Bank Loan $55,700
Total liabilities $62,100
Net Worth = $130,800 ($192,900 - $62,100)
The ledger of Marigold Corp. on July 31, 2017, includes the selected accounts below before adjusting entries have been prepared.
Debit Credit
Investment in Note Receivable $22,000
Supplies 24,000
Prepaid Rent 3,600
Buildings 270,000
Accumulated Depreciation-Buildings $140,000
Unearned Service Revenue 12,000
An analysis of the company’s accounts shows the following.
1. Supplies on hand at the end of the month totaled $14,880.
2. The balance in Prepaid Rent represents 4 months of rent costs.
3. Employees were owed $2,480 related to unpaid and unrecorded salaries and wages.
4. Depreciation on buildings is $4,800 per year.
5. During the month, the company satisfied obligations worth $3,760 related to the Unearned Service Revenue account.
6. Unpaid and unrecorded maintenance and repairs costs were $1,840.
Prepare the adjusting entries at July 31 assuming that adjusting entries are made monthly.
Answer:
1. July 31
Dr Supplies expense $9,120
Cr Supplies $9,120
2. July 31
Dr Rent expense $900
Cr Prepaid rent $900
3. July 31
Dr Salaries and wages expense $2480
Cr Salaries and wages payable $2480
4. July 31
Dr Depreciation expense $400
Cr Accumulated depreciation - Building $400
5. July 31
Dr Unearned service revenue $3,760
Cr Service revenue $3,760
6. July 31
Dr Miscellaneous expense $1,840
Cr Miscellaneous expense payable $1,840
Explanation:
Preparation of the adjusting entries at July 31 assuming that adjusting entries are made monthly.
1. July 31
Dr Supplies expense $9,120
Cr Supplies $9,120
($24,000-$14,880)
(Being To record supplies expense)
2. July 31
Dr Rent expense $900
Cr Prepaid rent $900
(3,600*1/4)
(Being To record rent expense)
3. July 31
Dr Salaries and wages expense $2480
Cr Salaries and wages payable $2480
(Being To record salaries and wages expense)
4. July 31
Dr Depreciation expense $400
Cr Accumulated depreciation - Building $400
($4,800*1/12)
(BeingTo record depreciation expense)
5. July 31
Dr Unearned service revenue $3,760
Cr Service revenue $3,760
(Being To record unearned service revenue)
6. July 31
Dr Miscellaneous expense $1,840
Cr Miscellaneous expense payable $1,840
(Being To record maintenance and repairs expense)
Presented below is the trial balance of Cullumber Corporation at December 31, 2020.
Debit Credit
Cash $ 201,010
Sales $ 8,104,270
Debt Investments (trading) (at cost, $145,000) 157,270
Cost of Goods Sold 4,800,000
Debt Investments (long-term) 303,010
Equity Investments (long-term) 281,010
Notes Payable (short-term) 94,270
Accounts Payable 459,270
Selling Expenses 2,004,270
Investment Revenue 65,700
Land 264,270
Buildings 1,044,010
Dividends Payable 140,010
Accrued Liabilities 100,270
Accounts Receivable 439,270
Accumulated Depreciation-Buildings 152,000
Allowance for Doubtful Accounts 29,270
Administrative Expenses 902,700
Interest Expense 213,700
Inventory 601,010
Gain 82,700
Notes Payable (long-term) 904,010
Equipment 604,270
Bonds Payable 1,004,010
Accumulated Depreciation-Equipment 60,000
Franchises 160,000
Common Stock ($5 par) 1,004,270
Treasury Stock 195,27
Patents 195,000
Retained Earnings 82,010
Paid-in Capital in Excess of Par 84,010
Totals $12,366,070 $12,366,070
Prepare a balance sheet at December 31, 2020, for Cullumber Corporation. (Ignore income taxes). (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment. Enter account name only and do not provide the descriptive information provided in the question.)
Answer:
Total assets = Shareholders' Equity and Liabilities = $4,008,860
Explanation:
To prepare the balance sheet, the income statement is first prepared to determine the net income as follows:
Cullumber Corporation
Income Statement
For the Year ended December 31, 2020
Particulars $
Sales 8,104,270
Cost of Goods Sold (4,800,000)
Gross profit 3,304,270
Operating expenses
Selling Expenses (2,004,270)
Administrative Expenses (902,700)
Operating income 397,300
Other income (expenses)
Interest Expense (213,700)
Investment Revenue 65,700
Net income 249,300
The balance sheet can now be presented as follows:
Cullumber Corporation
Balance Sheet
As at December 31, 2020
Particulars $ $
Investments
Debt Investments (long-term) 303,010
Equity Investments (long-term) 281,010
Total investments 584,020
Intangible Assets
Franchises 160,000
Patents 195,000
Total intangible assets 355,000
Property, Plant and Equipment
Land 264,270
Buildings 1,044,010
Accumulated Depreciation-Buildings (152,000)
Equipment 604,270
Accumulated Depreciation-Equip. (60,000)
Net Property, Plant and Equipment 1,700,550
Current Assets
Cash 201,010
Debt Inv. (trading) (at cost, $145,000) 157,270
Accounts Receivable 439,270
Allowance for Doubtful Accounts (29,270)
Inventory 601,010
Total current assets 1,369,290
Total Assets 4,008,860
Shareholders' Equity
Common Stock ($5 par) 1,004,270
Treasury Stock (195,270)
Gain 82,700
Retained Earnings 82,010
Paid-in Capital in Excess of Par 84,010
Net income 249,300
Total Shareholders' Equity 1,307,020
Long-term Liabilities
Notes Payable (long-term) 904,010
Bonds Payable 1,004,010
Total Long-term Liabilities 1,908,020
Current Liabilities
Notes Payable (short-term) 94,270
Accounts Payable 459,270
Dividends Payable 140,010
Accrued Liabilities 100,270
Total current liabilities 793,820
Shareholders' Equity and Liabilities 4,008,860
Mobo, a wireless phone carrier, completed its first year of operations on October 31. All of the year's entries have been recorded, except for the following: At year-end, employees earned wages of $6,800, which will be paid on the next payroll date, November 6. At year-end, the company had earned interest revenue of $3,800. It will be collected December 1. Required: What is the annual reporting period for this company
Answer:
Explanation:
Missing word "2. Identify whether each required adjustment is a deferral or an accrual. First transaction is deferral O Second transaction is deferral Second transaction is accrual Both transactions are deferral O Both transactions are accruals First transaction is accrual 3. Show the accounting equation effects of each required adjustment. (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign.) Transaction Assets Liabilities + Stockholders' Equity b. 4. Why are these adjustments needed? Adjustments are needed to ensure the financial statements are up-to-date and complete Adjustments are needed to ensure the financial statements are prepared as per cash basis."
1. The annual reporting period for this company is November 1 through October 31
2. Both the transactions are accruals.
3. S/n Assets = Liabilities + Stockholders equity
a. No effects S&Wages payable $6,800 S&Wages Expenses -$6,800
b. I. receivable(3,800) No effect Interest revenue $3,800
4. Adjustments are required to ensure that the financial statements are up-to-date and complete.
Nona Curry started her own consulting firm, Curry Consulting Inc., on May 1, 2017. The following transactions occurred during the month of May. May 1 Stockholders invested $15,000 cash in the business in exchange for common stock.
2 Paid $600 for office rent for the month.
3 Purchased $500 of supplies on account.
5 Paid $150 to advertise in the County News.
9 Received $1,400 cash for services performed.
12 Paid $200 cash dividend.
15 Performed $4,200 of services on account.
17 Paid $2,500 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $1,200 for services performed on account on May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased office equipment for $2,000 paying $200 in cash and the balance on account.
30 Paid $180 for utilities.
Show the effects of the previous transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year.
Answer:
Curry Consulting Inc.
Showing the effects of transactions on the accounting equation:
Assets = Liabilities + Equity
May 1:
Assets (Cash + $15,000) = Liabilities + Equity (Common Stock + $15,000)
May 2:
Assets (Cash - $600) = Liabilities + Equity (Retained Earnings - $600)
May 3:
Assets (Supplies +$500) = Liabilities (Accounts Payable +$500) + Equity
May 5:
Assets (Cash - $150) = Liabilities + Equity (Retained Earnings - $150)
May 9:
Assets (Cash + $1,400) = Liabilities + Equity (Retained Earnings + $1,400)
May 12:
Assets (Cash - $200) = Liabilities + Equity (Retained Earnings - $200)
May 15:
Assets (Accounts Receivable +$4,200) = Liabilities + Equity (Retained Earnings +$4,200)
May 17:
Assets (Cash - $2,500) = Liabilities + Equity (Retained Earnings - $2,500)
May 20:
Assets (Cash -$500) = Liabilities (Accounts Payable -$500) + Equity
May 23:
Assets (Cash +$1,200 Accounts Receivable -$1,200) = Liabilities + Equity
May 26:
Assets (Cash +$5,000) = Liabilities (Notes Payable +$5,000) + Equity
May 29:
Assets (Cash -$200 Equipment +$2,000) = Liabilities (Accounts Payable +$1,800) + Equity
May 30:
Assets (Cash - $180) = Liabilities + Equity (Retained Earnings - $180)
Explanation:
The accounting equation shows that Assets = Liabilities + Equity. This equation is the basis of the double-system of accounting. It is always in balance when each transaction is correctly posted. The implication is that every business transaction affects, in two ways, either the assets side or the liabilities and equity side or both.
Beeman Company exchanged machinery with an appraised value of $4,680,000, a recorded cost of $7,200,000 and accumulated depreciation of $3,600,000 with Lacey Corporation for machinery Lacey owns. The machinery has an appraised value of $4,520,000, a recorded cost of $8,640,000, and accumulated depreciation of $4,752,000. Lacey also gave Beeman $160,000 in the exchange. Assume depreciation has already been updated.Instructions(a) Prepare the entries on both companies' books assuming that the exchange lacked commercial substance. (Round all computations to the nearest dollar.)
(b) Prepare the entries on both companies ; books assuming that the exchange had commercial substance. (Round all computations to the nearest dollar.)
Answer:
Attached below is the solution
Explanation:
Given data:
A) prepare the entries on both companies books
B) Prepare entries on both companies
hello attached below is the detailed solution
Windsor Company leased equipment from Costner Company, beginning on December 31, 2019. The lease term is 5 years and requires equal rental payments of $59,394 at the beginning of each year of the lease, starting on the commencement date (December 31, 2019). The equipment has a fair value at the commencement date of the lease of $270,000, an estimated useful life of 5 years, and no estimated residual value. The appropriate interest rate is 5%.
Click here to view factor tables.
Prepare Windsor’s 2019 and 2020 journal entries, assuming Windsor depreciates similar equipment it owns on a straight-line basis. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. For calculation purposes, use 5 decimal places as displayed in the factor table provided and round final answers to 0 decimal places, e.g. 5,275.)
Date
Account Titles and Explanation
Debit
Credit
12/31/1912/31/20 12/31/1912/31/20
enter an account title To record lease liability on December 31 2019
enter a debit amount
enter a credit amount
enter an account title To record lease liability on December 31 2019
enter a debit amount
enter a credit amount
(To record lease liability)
12/31/1912/31/20 12/31/1912/31/20
enter an account title To record lease payment on December 31 2016
enter a debit amount
enter a credit amount
enter an account title To record lease payment on December 31 2016
enter a debit amount
enter a credit amount
(To record lease payment)
12/31/1912/31/20 12/31/1912/31/20
enter an account title To record interest expense on December 31 2020
enter a debit amount
enter a credit amount
enter an account title To record interest expense on December 31 2020
enter a debit amount
enter a credit amount
enter an account title To record interest expense on December 31 2020
enter a debit amount
enter a credit amount
(To record interest expense)
12/31/1912/31/20 12/31/1912/31/20
enter an account title To record amortization of the right-of-use asset on December 31 2020
enter a debit amount
enter a credit amount
enter an account title To record amortization of the right-of-use asset on December 31 2020
enter a debit amount
enter a credit amount
(To record amortization of the right-of-use asset)
Answer:
12/31/19
Dr Right-of-Use Asset $270,000
Cr Lease liability $270,000
12/31/19
Dr Lease liability $59,394
Cr Cash $59,394
12/31/20
Dr Interest expense $10,530
Dr Lease liability $48,864
Cash $59,394
12/31/20
Dr Amortization expense $54,000
Cr Right-of-Use asset $54,000
Explanation:
Preparation of Windsor’s 2019 and 2020 journal entries
12/31/19
Dr Right-of-Use Asset $270,000
Cr Lease liability $270,000
[Being To record lease liability]
12/31/19
Dr Lease liability $59,394
Cr Cash $59,394
[Being To record lease payment]
12/31/20
Dr Interest expense $10,530
[($270,000-$59,394) x 5%]
Dr Lease liability $48,864
($59,394 -$10,530)
Cash $59,394
[Being To record interest expense]
12/31/20
Dr Amortization expense $54,000
[$270,000/5 years]
Cr Right-of-Use asset $54,000
[Being To record amortization of the right-of-use asset]
Jack Hammer invests in a stock that will pay dividends of $3.17 at the end of the first year; $3.64 at the end of the second year; and $4.11 at the end of the third year. Also, he believes that at the end of the third year he will be able to sell the stock for $67. What is the present value of all future benefits if a discount rate of 10 percent is applied
Answer:
Total PV= $59.31
Explanation:
Giving the following information:
Cash flows:
Cf1= $3.17
Cf2= $3.64
Cf3= 4.11 + 67= $71.11
Discount rate= 10%
To calculate the present value, we need to use the following formula on each cash flow:
PV= Cf / (1+i)^n
PV1= 3.17/1.1= 2.88
PV2=3.64/1.1^2= 3
PV3= 71.11/1.1^3= 53.43
Total PV= $59.31
true or false the only reason to protect intellectual property is financial?
Answer:
false
Explanation:
Megan Finder, a recent college graduate, is applying for her first credit card. The creditor has asked for a personal net worth statement. Megan owns a scooter worth $2,000.00 and has $800.00 in her checking account. She owes Jaycee Auto $920.00 and River College $125.00. Complete a net worth statement for Megan Finder. Select Current Date in the appropriate field. Assets should be listed in order of liquidity, so Cash should be listed first. Liabilities should be reported in alphabetic order.
Answer and Explanation:
The computation of the net worth statement is shown below:
Assets
Checking account $800
Scooter $2,000
Total assets $2,800 (A)
Liabilities
OWed to jaycee Auto $920
River college $125
Total liabilities $1,045 (B)
Net worth $1,755 (A - B)
This discussion has 2 parts:_______.
Part 1: Generate a list of all of the attributes that make you...you. Things that are essential to who you are, that influence your decisions, and your behaviors. These could also be personality traits or other influential items.
Part 2: Rank order these items in order of importance...so put a number 1 next to the most central or important item, number 2 next to the second most important etc... If you have a long list, only do the top 5.
Part 3 (o.k., I lied it's a 3 part question). Post your top 5 here and talk about how those five items influence the manner in which you communicate and engage with people. How do these influence and guide your daily behaviors?
Answer and Explanation:
The attributes that make me who I am, in order of importance and influence are:
1. Patience: Patience has enabled me to resolve a lot of calm in the most tense moments in my life, which allows me to go through my own challenges with less stress. It also allows me to have a better relationship with people, since relationships can be difficult at times.
2. Communication: I consider myself to be a communicative person, which has allowed me to express myself and remain honest with myself.
3. Family support: My family supports me a lot and this gives me the confidence to try to do what I want, to have a free mind, to experiment and not be afraid to let my true nature be expressed. This has made me a very brave person.
4. Thoughtful: Although I consider myself brave, I am afraid of causing bad results to me and the people around me, which makes me plan and think a lot before acting.
5. Kindness: I believe that I am very kind, which allows people to be comfortable with me and make me comfortable in their presence.
E14.3 (LO 1) (Entries for Bond Transactions) Presented below are two independent situations. 1. On January 1, 2020, Simon Company issued $200,000 of 9%, 10-year bonds at par. Interest is payable quarterly on April 1, July 1, October 1, and January 1. 2. On June 1, 2020, Garfunkel Company issued $100,000 of 12%, 10-year bonds dated January 1 at par plus accrued interest. Interest is payable semiannually on July 1 and January 1. Instructions For each of these two independent situations, prepare journal entries to record the following. a. The issuance of the bonds. b. The payment of interest on July 1. c. The accrual of interest on December 31. (Kieso 14-38) Kieso, Donald E., Jerry Weygandt, Terry Warfield. Intermediate Accounting, 17th Edition. Wiley, 02/2019. VitalBook file. The citation provided is a guideline. Please check each citation for accuracy before use.
Answer:
1) January 1, 2020
Dr Cash 200,000
Cr bonds payable 200,000
July 1, first coupon payment
Dr Interest expense 4,500
Cr Cash 4,500
December 31, fourth coupon payment
Dr Interest expense 4,500
Cr Interest payable 4,500
2) June 1, 2020
Dr Cash 104,000
Cr Bonds payable 100,000
Cr Bond interest payable 4,000
July 1, first coupon payment
Dr Interest expense 2,00
Cr Cash 2,000
December 31, accrued interest expense
Dr Interest expense 6,000
Cr Interest payable 6,000
Match each item with the appropriate description.
- General Ledger System
- ERP
- Managerial Accounting
A. Includes both financial and non-financial information for all areas of the business.
B. Uses accounting information for external reporting.
C. Is a subset of the non-financial integrated accounting system.
D. Includes the accounting part of the integrated information system.
E. Uses accounting information for internal reporting.
Answer:
Matching items with the appropriate descriptions:
A. Includes both financial and non-financial information for all areas of the business.
ERP
B. Uses accounting information for external reporting.
General Ledger System
C. Is a subset of the non-financial integrated accounting system.
Managerial Accounting
D. Includes the accounting part of the integrated information system.
General Ledger System
E. Uses accounting information for internal reporting.
Managerial Accounting
Explanation:
- General Ledger System. This system is where the financial accounting records of debit and credit are kept and summarized.
- ERP: "Enterprise Resource Planning” is the consolidated system for gathering and organizing business data, both financial and non-financial.
- Managerial Accounting: This is where internal accounting data are gathered and analyzed.
Below are transactions for Wolverine Company during 2021.
a. On December 1, 2021, Wolverine receives $3,100 cash from a company that is renting office space from Wolverine. The payment, representing rent for December and January, is credited to Deferred Revenue.
b. Wolverine purchases a one-year property insurance policy on July 1, 2021, for $12,120. The payment is debited to Prepaid Insurance for the entire amount.
c. Employee salaries of $2,100 for the month of December will be paid in early January 2022.
d. On November 1, 2021, the company borrows $10,500 from a bank. The loan requires principal and interest at 10% to be paid on October 30, 2022.
e. Office supplies at the beginning of 2021 total $910. On August 15, Wolverine purchases an additional $2,500 of office supplies, debiting the Supplies account. By the end of the year, $410 of office supplies remains.
Required:
Record the necessary adjusting entries at December 31, 2018, for Wolverine Company.
Answer:
a.Unearned revenue $1,550
Service revenue $1,550
b. Dr Insurance expense $6,060
Cr Prepaid insurance $6,060
c. Dr Salaries expense $2,100
Cr Salaries payable $2,100
d. Dr Interest expense $175
Cr Interest payable $175
e. Dr Supplies expense $3,000
Cr Supplies $3,000
Explanation:
Preparation to Record the necessary adjusting entries at December 31, 2018, for Wolverine Company.
a.Unearned revenue $1,550
Service revenue $1,550
($3,100/2)
(Being to record rent revenue)
b. Dr Insurance expense $6,060
Cr Prepaid insurance $6,060
($12,120*6/12)
(Being to record insurance expense l
c. Dr Salaries expense $2,100
Cr Salaries payable $2,100
(Being to record salaried expense)
d. Dr Interest expense $175
($10,500*10%*2/12)
Cr Interest payable $175
(Being to record Interest expense)
e. Dr Supplies expense $3,000
Cr Supplies $3,000
($910+$2,500-$410)
(Being to record Supplies expense)
Indiana Company produces couches. The fixed monthly cost of production is $8,000, and the variable cost per unit is $65. The couches sell for $180 apiece. Answer these questions: 3 points each 1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit. 2) Determine the monthly break-even volume for Indiana Company.
Answer: See explanation
Explanation:
1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit.
Fixed monthly cost = $8000
Variable cost per unit = $65
Selling price = $180 each
Monthly volume = 300
Therefore, the total cost will be
= $8000 + ($65 × 300)
= $8000 + $19500
= $27500
The total revenue will then be:
= Price × Quantity
= $180 * 300 units
= $54000
Total profit will be:
= Sales revenue - Cost
= $54000 - $27500
= $26500
b) Break even volume simply means the volume whereby no profit or loss is incurred. This will be:
= $8000 / ($180 - $65)
= $8000 / $115
= 69.56 units
= 70 units
Suppose that in the market for loanable funds, the governement is currently running a deficit, and net exports are negative. Then, there is a sharp recession, causing consumer spending on both domestic and imported goods to fall (just as is currently happening), so that the size of the trade deficit shrinks. What effect will this have on the market for loanable funds
Answer: 4. Demand will shift inwards, lower rates and decreasing lending.
Explanation:
People demand loanable funds for spending on consumption and investment. If there is a recession, people will buy less goods and companies will invest less as well.
This will reduce the demand that people and companies have for loanable funds. The demand will therefore shift inwards to the left and lead to lower rates and decreased lending.
Prepare the Post-Closing Trial Balance for Smart Touch Learning as of December 31, 2016. Enter accounts in order of assets, liabilities, and equity. Assume all accounts have normal balances.
Account Balance
Accounts Receivable 1,500
Accumulated Depreciation - Furniture 100
Cash 50,980
Common Stock 40,800
Furniture 10,900
Office Supplies 290
Prepaid Insurance 900
Retained Earnings 14,670
Salaries Payable 4,400
Unearned Revenue 4,600
Answer:
Follows are the solution to this question:
Explanation:
Intelligent learning
Trail balance until closure
31st December 2016.
Account- title Dr. Cr.
Receivable Accounts 1,300
cash 45,710
Furniture 9,100
Office materials 350
Insurance prepayments 1,050
Accumulated deprecciation - Furniture 100
payable wages 4,600
Unearned income 4,400
Common inventory 35,500
retention of profits 12,910
Total 57,510 57,510
You own factory A and factory B. The next cash flow for each factory is expected in 1 year. Factory A has a cost of capital of 3.5 percent and is expected to produce annual cash flows of $19,300 forever. Factory B is worth $545,000 and is expected to produce annual cash flows of $19,900 forever. Which assertion is true
Answer: See Explanation
Explanation:
First, we have to calculate the worth of factory A which will be:
= Cash flow / Cost of capital
= $19300 / 3.5%
= $19300 / 0.035
= $551428.57
= $551429
Cost of capital of Factory B = Cash flow / Worth
= $19,900 / $545,000
= 0.0365
= 3.65%
Cost of capital of Factory A = 3.5%
Cost of capital of Factory B = 3.65%
Worth of factory A = $551429
Worth of Factory B = $545,000
Therefore, factory A is more valuable than Factory B and Factory B is more risky than Factory A.
The following is the information for the Brendan's Bread bakery company: Beginning raw materials inventory $ 53,200 Beginning work in process, inventory 78,400 Ending raw materials inventory 58,100 Ending work in process, inventory 98,000 Direct labor 149,800 Total factory overhead 105,000 Raw material purchases 210,000 Question: What is the value of Total Manufacturing Costs? Do not include a dollar sign or commas in your answer.
Answer:
$254,900
Explanation:
Total Manufacturing Costs include all costs involved in manufacturing a Product such as direct materials, direct labor and indirect costs or overheads incurred during the period of production.
Calculation of Total Manufacturing Cost
Raw Materials (53,200 +210,000 -58,100) $205,100
Direct Labor $149,800
Factory Overhead $105,000
Total Manufacturing Cost $254,900
Conclusion
Total Manufacturing Costs will be $254,900
Lucas Industries uses departmental overhead rates to allocate its manufacturing overhead to jobs. The company has two departments: Assembly and Sanding. The Assembly Department uses a departmental overhead rate of $50 per machine hour, while the Sanding Department uses a departmental overhead rate of $15 per direct labor hour. Job 603 used the following direct labor hours and machine hours in the two departments: Assembly Actual results Direct labor hours used Machine hours used The cost for direct labor is $30 per direct labor hour and the cost of the direct materials used by Job 603 is $1,400. How much manufacturing ovehead would be allocated to Job 603 using the departmental overhead rates?
A. $610
B. $330
C. $580
D. $740
Answer:
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Explanation:
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An engineering student has just finished the freshman year and has received an offer of $20,000 per year in a full-time job. with prospects of salary increasing 3 % per year until retirement after 33 years. If employment is taken, the student will likely not finish his engineering degree. Tuition and other costs are $10,000 next year, increasing at 7% per year. A starting salary of $45.000 could be expected upon graduation from the fouryear program. Salary increases in the engineering job are estimated at 4% per year until retirement after 30 years.
Required:
On the basis of economics alone, should the student take the job now or finish college? Analyze as two mutually exclusive alternatives and solve with present worth analysis. Interest rate is 7%.
Answer:
Since the $860,886.33 which is the present worth of net salary if he finishes his engineering degree is greater than the $357,788.81 which is the present worth of net salary if he does NOT finish his engineering degree, the student should finish college.
Explanation:
This can be dermined based on the following 3 steps:
Step 1: Calculation of present worth of net salary if he does NOT finish his engineering degree
This can be calculated using the formula for calculating the present worth (PW) of a growing annuity as follows:
PWN = (P / (r - g)) * (1 - ((1 + g) / (1 + r))^n) .................... (1)
Where;
PWN = present worth of net salary if he does NOT finish his engineering degree = ?
P = Annual salary = $20,000
r = interest rate per year = 7%, or 0.07
g = growth rate of salary = 3% or 0.03
n = number of years = 33
Substituting the values into equation (1), we have:
PWN = ($20,000 / (0.07 - 0.03)) * (1 - ((1 + 0.03) / (1 + 0.07))^33)
PWN = $357,788.81
Step 2: Calculation of present worth net salary if he finishes his engineering degree
Calculation of the present worth of tuition and other costs
This can be calculated using the formula for calculating the present worth (PW) of a growing annuity as follows:
PWT = (P / (r - g)) * (1 - ((1 + g) / (1 + r))^n) .................... (2)
Where;
PWT = present worth tuition and other costs = ?
P = Tuition and other costs next year = $10,000
r = interest rate per year = 7%, or 0.07
g = growth rate of tuition and other costs = 7% or 0.07
n = number of years = Number of years for engineering degree - One year already spent = 4 - 1 = 3
Substituting the values into equation (2), we have:
PWT = (10,000 / (0.07 - 0.07)) * (1 - ((1 + 0.07) / (1 + 0.07))^3)
PWT = undefined or 0
Note: The PWT is undefined because r = g here. Therefore, it should not be considered in the further analysis.
Calculation of the present worth of salary after graduation
This can be calculated using the formula for calculating the present worth (PW) of a growing annuity as follows:
PWG = (P / (r - g)) * (1 - ((1 + g) / (1 + r))^n) .................... (3)
Where;
PWG = present worth of salary after graduation = ?
P = Starting salary = $45,000
r = interest rate per year = 7%, or 0.07
g = growth rate of salary = 4% or 0.04
n = number of years = 30
Substituting the values into equation (3), we have:
PWG = ($45,000 / (0.07 - 0.04)) * (1 - ((1 + 0.04) / (1 + 0.07))^30)
PWG = $860,886.33
Step 3: Decision
Present worth of net salary if he does NOT finish his engineering degree = $357,788.81
Present worth of net salary if he finishes his engineering degree = present worth of salary after graduation = $860,886.33
Since the $860,886.33 which is the present worth of net salary if he finishes his engineering degree is greater than the $357,788.81 which is the present worth of net salary if he does NOT finish his engineering degree, the student should finish college.
A company that makes fasteners and sells them to many different
manufacturing companies around the world would most likely benefit from
using which distribution channel?
A. Producer to wholesaler to business buyers
B. Producer to business buyers
C. Producer to wholesaler to consumers
D. Producer to retailers to business buyers
Answer:
A
Explanation:
A. Producer to wholesaler to business buyers
Question Mode Multiple Select Question Select all that apply At the end of the previous year, a customer owed Chocolates R US $500. On January 31 of the current year, the customer paid $900 total, which included the $500 owed plus $400 owed for the current month of January. What would be the journal entry on January 31 that reflects this
Answer:
January 31
Dr Cash $900.
Cr Service revenue $400.
Cr Accounts receivable $500.
Explanation:
Preparation of the journal entry
Based on the information given What would be the journal entry on January 31 that reflects this are :
January 31
Dr Cash $900.
Cr Service revenue $400.
Cr Accounts receivable $500.
The Converting Department of Worley Company had 2,400 units in work in process at the beginning of the period, which were 35% complete. During the period, 10,800 units were completed and transferred to the Packing Department. There were 1,900 units in process at the end of the period, which were 60% complete. Direct materials are placed into the process at the beginning of production.
Required:
Determine the number of equivalent units of production with respect to direct materials and conversion costs.
Answer: See explanation
Explanation:
Based on that attachment given, we should note that the following was gotten as:
1. Inventory in process beginning:
This was gotten as:
= 2,400 × 65%
= 2400 × 0.65
= 1,560
Started and completed:
= 10,800 - 2,400
= 8,400
Inventory in process ending
= 1,900 × 60%
= 1900 × 0.6
= 1,140
The following information is available pertaining to Bonita Division, that uses a plant-wide overhead rate based on machine hours: Mixing Dept. Finishing Dept. Total Overhead $30,000 $60,000 $90,000 Direct labor-hours 7,500 2,500 10,000 Machine-hours 2,500 7,500 10,000 Production information pertaining to Job 101: Mixing Dept. Finishing Dept. Total Prime costs $5,000 $0 $5,000 Direct Labor-hours 250 0 250 Machine-hours 10 10 20 Units produced 500 0 500 What are the total overhead costs assigned to Job 101
Answer:
$180
Explanation:
Calculation for What are the total overhead costs assigned to Job 101
Using this formula
Total overhead costs assigned to Job 101=(Total Overhead/Total Machine-hours)*Machine-hours
Let plug in the formula
Total overhead costs assigned to Job 101 = ($90,000/10,000) *20
Total overhead costs assigned to Job 101=9*20
Total overhead costs assigned to Job 101=$180
Therefore Total overhead costs assigned to Job 101 will be $180
The Garden Company began the accounting period with a $46,000 credit balance in its Accounts Payable account. During the accounting period, Garden Company incurred expenses on account of $125,000. The ending Accounts Payable balance was $65,000. Required Based on this information, determine the amount of cash outflow for expenses during the accounting period. (Hint: Use a T-account for Accounts Payable. Enter the debits and credits for the given events, and solve for the missing amount.)
Answer:
the cash outflow for expenses is $106,000
Explanation:
The computation of the cash outflow for expenses is shown below:
Beginning balance $46,000
add; expenses $125,000
less; ending balance -$65,000
Cash outflow for expenses $106,000
Hence, the cash outflow for expenses is $106,000
Hakara Company has been using direct labor costs as the basis for assigning overhead to its many products. Under this allocation system, product A has been assigned overhead of $10.80 per unit, while product B has been assigned $3.60 per unit. Management feels that an ABC system will provide a more accurate allocation of the overhead costs and has collected the following cost pool and cost driver information:
Cost Pools Activity Costs Cost Drivers Driver Consumption
Machine setup $360,000 Setup hours 4,000
Materials handling 100,000 Pounds of materials 20,000
Electric power 40,000 Kilowatt-hours 40,000
The following cost information pertains to the production of A and B, just two of Hakara's many products:
A B
Number of units produced 4,000 20,000
Direct materials cost $42,000 $54,000
Direct labor cost $24,000 $40,000
Number of setup hours 400 200
Pounds of materials used 1,000 3,000
Kilowatt-hours 2,000 4,000
Required:
Use activity-based costing to determine a unit cost for each product.
Answer:
Results are below.
Explanation:
First, we need to calculate the activities rates of allocation:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setup= 360,000/4,000= $90 per set up hour
Materials handling= 100,000/20,000= $5 per pound of material
Electric power= 40,000/40,000= $1 per kilowwat hour
Now, we can allocate costs to each product:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
A:
Allocated MOH= 90*400 + 5*1,000 + 1*2,000
Allocated MOH= $43,000
B:
Allocated MOH= 90*200 + 5*3,000 + 1*4,000
Allocated MOH= $37,000
Finally, the total and unitary cost:
A:
Total cost= 42,000 + 24,000 + 43,000
Total cost= $109,000
Unitary cost= 109,000/4,000
Unitary cost= $2.73
B:
Total cost= 54,000 + 40,000 + 37,000
Total cost= $131,000
Unitary cost= 131,000/20,000
Unitary cost= $6.55
The Activity-based costing (ABC) costing system is based on activities, overseen by any event, task unit, or targeted activity
What do you mean by Acitivity based costing?
Activity-based costing (ABC) is a way of providing assigning overhead and indirect costs such as salaries and services — to products and services.
Predetermined manufacturing overhead rate is equal to total estimated overhead costs for the period/ total amount of allocation base
[tex]\rm\,Machine \;setup= \dfrac{360,000}{4,000}= \$90 \; per \;set \;up \;hour\\\\Materials \;handling= \dfrac{100,000}{20,000}= \$5 \;per \;pound \;of \;material\\\\Electric \; power= \dfrac{40,000}{40,000}= \$1 \;per \; kilowatt \;hour[/tex]
We can allocate costs to each product:
Allocated manufacturing overhead is equal to Estimated manufacturing overhead rate multiplied by Actual amount of allocation base.
[tex]\rm\,A: Allocated MOH= 90 \times 400 + 5\times 1,000 + 1\times2,000\\\\Allocated MOH= \$43,000\\\\B: Allocated MOH= 90 \times200 + 5\times3,000 + 1\times4,000\\\\Allocated MOH= \$37,000[/tex]
The total and unitary cost:
[tex]\rm\, A. Total\; cost = 42,000 + 24,000 + 43,000\\\\Total \;cost= \$109,000\\\\Unitary \;cost= \dfrac{109,000}{4,000}\\\\Unitary \;cost= \$2.73\\\\B: Total \;cost= 54,000 + 40,000 + 37,000\\\\Total\; cost= \$131,000\\\\Unitary\; cost= \dfrac{131,000}{20,000}\\\\Unitary\; cost= \$6.55\\\\[/tex]
Thus, Activity based costing (ABC) is used to determine a unit cost for each product A and B.
To learn more about Activity based costing (ABC), refer:
https://brainly.com/question/6654166