On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following are the transactions that occurred in Walker's first month of operations. You need to indicate for each transaction the accounts that should be debited and credited by selecting the account number(s).
1. Cash
2. Accounts Receivable
3. Supplies
4. Prepaid Insurance
5. Equipment
6. Truck
7. Notes Payable
8. Accounts Payable
9. Merry Walker, Capital
10. Merry Walker, Drawing
11. Fees Earned
12. Wages Expense
13. Rent Expense
14. Utilities Expense
15. Truck Expense
16. Miscellaneous Expense
17. Insurance Expense
Answers
Answer:
a. Recorded jobs completed on account and sent Invoices to customers.
Account to be Debited ⇒ 2. Accounts Receivable
Account to be Credited ⇒ 11. Fees Earned
The fees are to be credited as it is revenue. The amount will be debited to Accounts receivables because the customers owe the company.
b. Received an invoice for truck expense to be paid in February.
Account to be Debited ⇒ 15. Truck Expense
Account to be Credited ⇒ 8. Accounts Payable
This is an expense so it is debited as expenses are debited when they increase. As it is to be paid in future, it is a liability and will be credited to Payables.
c. Paid utilities expense
Account to be Debited ⇒ 14. Utilities Expense
Account to be Credited ⇒ 1. Cash
As explained, this is an expense and will have to be debited. It was paid with cash which will reduce the cash balance so Cash should be credited.
d. Received cash from customers on account
Account to be Debited ⇒ 1. Cash
Account to be Credited ⇒ 2. Accounts Receivable
Debtors are paying the company cash which will increase the cash balance so Cash is debited. The Receivables will be credited to reflect that they are decreasing from the debt settlement.
e. Paid Employees Wages
Account to be Debited ⇒ 12. Wages Expense
Account to be Credited ⇒ 1. Cash
As explained, this is an expense and will have to be debited. It was paid with cash which will reduce the cash balance so Cash should be credited.
f. Withdrew cash for personal use.
Account to be Debited ⇒ 10. Merry Walker, Drawing
Account to be Credited ⇒ 1. Cash
The owner withdrew cash for personal use and so this is sent to the Drawings account. It is debited to reflect that it is reducing capital. Cash will be credited as it is decreasing.
Related Questions
Apr. 2 Purchased $6,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
3 Paid $390 cash for shipping charges on the April 2 purchase.
4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $500.
17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased $13,100 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.
21 After negotiations, received from Frist a $400 allowance toward the $13,100 owed on the April 18 purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Required:
Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.
Answers
Answer:
Apr. 2
Merchandise $6,900 (debit)
Accounts Payable : Lyon Company $6,900 (credit)
Purchased Merchandise from Lyon Company on credit
April 3.
Accounts Payable : Lyon Company $390 (debit)
Cash $390 (credit)
Payment of Freight Charges Include in Invoice (FOB)
April 4.
Accounts Payable : Lyon Company $500 (debit)
Merchandise $500 (credit)
Returned Merchandise to Lyon Company
April 17.
Accounts Payable : Lyon Company $6,010 (debit)
Discount Received $120 (credit)
Cash $5,890 (credit)
Payment of amount due to Lyon Company and discount received
April 18.
Merchandise $13,100 (debit)
Accounts Payable: Frist Corp $13,100 (credit)
Purchased Merchandise on credit from Frist Corp
April 2.
Accounts Payable: Frist Corp $400 (debit)
Purchase allowance $400 (credit)
Received and allowance from Frist Corp
April 28.
Accounts Payable: Frist Corp $12,700 (debit)
Discount Received $127 (credit)
Cash $12,573 (credit)
Payment of amount due to Frist Corp and discount received
Explanation:
See the journals and their narrations prepared above.
Banana Computer Company sells Banana Computers both in the domestic and foreign markets. Because of the differences in the power supplies, a Banana computer purchased in one market cannot be used in the other market. This means that the company can use third degree price discrimination in order to maximize profits. Let’s suppose that it costs $1,000 to produce each computer (this is marginal and average cost). Let’s suppose further that the domestic and foreign demand curves are given as follows (the subscript "F" denotes "foreign" while the subscript "D" is used to denote "domestic"):
PD=13,000 -20QD
PF= 17,000-40QF
Required:
a. What prices maximize profits for this firm? How many computers do they sell in each market? How much profit does the company earn?
b. Now, suppose that somebody figured out a wiring trick that allows a Banana computer built for either market to be costlessly converted so that it works in the other market. This destroys the company's ability to practice third degree price discrimination and forces them to charge the same price in both markets. What price maximizes the company's profits now? How many computers will they sell in each location? How much profit does the company earn?
Answers
Answer:
with price discrimination
Domestic Price 7,000 Quantity 300
Profit (7,000 - 1,000) * 300 = 1,800,000
Foreing Price 9,000 Quantity 200
Profit (9,000 - 1,000) * 200 = 1,600,000
Total 1,600,000 + 1,800,000 = 3,400,000
no price discrimination:
Price 7,667 Quantity 500
Profit (7,667 - 1,000) x 500 = 3,333,500
Explanation:
Sales Revenue (Domestic)
[tex]R = P \times Q_d = (13,000 - 20Q_d) \times Q_d = -20Q_d^2 + 13,000Q_d\\R' = \frac{dR_{(q)}}{dq} = 13,000 - 40Q_d[/tex]
We now equalice against Marginal Cost:
13,000 - 40Qd = 1,000
Qd = 12,000/40 = 300
Price: 13,000 - 20(300) = 7,000
We do the same process with Foreing demand:
(17,000 - 40Qf) x Qf = -40Qf^2 + 17,000Qf
R' = -80Qf + 17,000
-80Qf + 17,000 = 1,000
Qf = 16,000/80 = 200
Pf = 17,000 - 40(200) = 9,000
If the company cannot do price discrimination then:
We solve for the inverse of both market:
PD=13,000 -20QD
QD = 650 - PD/20
we take the price restrictions:
PD < 13,000
PF= 17,000-40QF
QF = (17,000 - PF)/40 = 425
QF = 425 - PF/40
PF < 17,000
Now, we aggregate the demands:
(650 -P/20 ) + (425 -P/40) =
Q= 1,075 - 0.075P
Make the inverse
P = (1,075 - Q ) / 0.075 = 14.333,33 -13.33Q
And solve for the Quantiy and Price that maximize profit
R = (14.333,33 -13.33Q) x Q = -13.33Q^2 + 14,333.33Q
R' = R(q)/dq = -26.66Q + 14,333.33
-26.66Q + 14,333.33 = 1,000
Q = 500
P = 14,333.33 - 13.33(500) = 7,667
If the AD shortfall is $700 billion and the MPC is 0.95, Instructions: Enter your responses rounded to one decimal place. a. How large is the desired fiscal stimulus
Answers
Answer:
a. The desired fiscal stimulus is $35.0 billion.
b. The income tax cut is $36.8 billion.
c. The amount of government spending that would achieve the target is $35.0 billion.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
If the AD shortfall is $700 billion and the MPC is 0.95, Instructions: Enter your responses rounded to one decimal place.
a. How large is the desired fiscal stimulus?
b. How large an income tax cut is needed?
c. Alternatively, how much government spending would achieve the target?
The explantion of the answers is now provided as follows:
From the question, we have:
Aggregate demand (AD) shortfall = $700 billion
Marginal Propensity to Consume (MPC) = 0.95
a. How large is the desired fiscal stimulus?
To calculate the the desired fiscal stimulus, we need to first calculate the multiplier as follows:
Multipliers = 1 (1 - MPC) ................... (1)
Substituting the value into equation (1), we have:
Multipliers = 1 (1 - 0.95) = 1 / 0.05 = 20
The formula for calculating the fiscal stimulus is as follows:
Fiscal stimulus = AD shortfall / Multiplier ..................... (2)
Substituting the values into equation (2), we have:
Fiscal stimulus = $700 billion / 20 = $35.0 billion.
Therefore, the desired fiscal stimulus is $35.0 billion.
b. How large an income tax cut is needed?
This can be calculated using the following formula:
Income tax cut = Fiscal stimulus / MPC .............. (3)
Substituting the values into equation (3), we have:
Income tax cut = $35 billion / 0.95 = $36.8421052631579 billion
Rounding to one decimal place, we have
Income tax cut = $36.8 billion
Therefore, the income tax cut is $36.8 billion.
c. Alternatively, how much government spending would achieve the target?
The amount of increase in government spending that would achieve the target is the same thing as the desired fiscal stimulus already obtained in part a above.
Therefore, the amount of government spending that would achieve the target is $35.0 billion.
Sunland Diesel owns the Fredonia Barber Shop. He employs 4 barbers and pays each a base rate of $1,440 per month. One of the barbers serves as the manager and receives an extra $520 per month. In addition to the base rate, each barber also receives a commission of $9.15 per haircut. Other costs are as follows.
Advertising $240 per month
Rent $1,100 per month
Barber supplies $0.35 per haircut
Utilities $185 per month plus $0.10 per haircut
Magazines $35 per month Sunland currently charges $16 per haircut.
Vin currently charges $10 per haircut.
Required:
a. Determine the variable costs per haircut and the total monthly fixed costs.
b. Compute the break-even point in units and dollars.
c. Prepare a CVP graph, assuming a maximum of 1,800 haircuts in a month. Use increments of 300 haircuts on the horizontal axis and $3,000 on the vertical axis.
d. Determine net income, assuming 1,600 haircuts are given in a month.
Answers
Answer:
a. Variable costs = $9.60 and Fixed Costs = $7,840
b. 1,225 haircuts and $19,600
c. See attachment
d. $2,400
Explanation:
Variable Costs per haircut Calculations
Barber supplies $0.35
Utilities $0.10
Commission $9.15
Total Variable Costs per haircut $9.60
Total Monthly Fixed Costs Calculation
Base Salary (1,440 × 4 + 520) $6,280
Advertising $240
Rent $1,100
Utilities $185
Magazines $35
Total Monthly Fixed Costs $7,840
Contribution per unit = Selling price per unit - Variable Cost per unit
= $16.00 - $9.60
= $6.40
Contribution Margin Ratio = Contribution ÷ Selling Price
= $6.40 ÷ $16.00
= 0.40
Break-even point (units) = Fixed Cost ÷ Contribution per unit
= $7,840 ÷ $6.40
= 1,225 haircuts
Break-even point (dollars) = Fixed Cost ÷ Contribution Margin Ratio
= $7,840 ÷ 0.40
= $19,600
Net income, assuming 1,600 haircuts are given in a month [calculation]
Contribution (1,600 × $6.40) $10,240
Less Fixed Costs ($7,840)
Net Income/(loss) $2,400
Part of implementing Quality Windows Limited new enterprise resource planning (ERP) software is ensuring all workstations and servers run secure applications. Since the ERP software is new, Quality Windows Limited needs a new policy to set security requirements for the software. This policy will guide administrators in developing procedures to ensure all client and server software is as secure as possible. The goal is to minimize exposure to threats to any part of the new ERP software or resources related to it.
Describe the goals that define a secure application. Specifically, you will write two policies to ensure Web browsers and Web servers are secure. All procedures and guidelines will be designed to fulfill the policies you create.
Answer the following questions for Web browser and Web server software:
a. What functions should this software application provide?
b. What functions should this software application prohibit?
c. What controls are necessary to ensure this applications software operates as intended?
d. What steps are necessary to validate that the software operates as intended?
Answers
Answer:
A)i) web browser software :
ii) web server software :
B) i) Web browser software: Auto-download updates and Tracking functionality
ii) web server software : unauthorized access and unsecure connection from web browse
C) i) Legal and regulatory controls
ii) Access controls
D) i) Validation process -
ii) Define Requirements-
iii) Develop:
iv)Testing: Test what has been developed
v) Review/Management :
Explanation:
A ) Functions that the software application should provide
i) web browser software : This functions requires the software to make requests from the relevant web pages and sending them to the web server software application and serve it up to customers
ii) web server software : This function means that the software should be able to store, process and deliver web pages to web browser applications’.
B) Functions that this software application should prohibit
i) Web browser software: Auto-download updates and Tracking functionality
ii) web server software : unauthorized access and unsecure connection from web browser
C) Controls that are necessary to ensure application software operates as intended
i) Legal and regulatory controls such as privacy laws, and copyright policies will help the software operate smoothly
ii) Access controls such as user authentication when a user is trying to login is very vital for the security of the user
D Steps necessary to validate that the software operates as intended
i) Validation process - The validation process is the first step which is intended to implement plans that identifies who has access to the software, what is been done on the software, and where the software is going to be accessed from.
ii) Define Requirements- defining the functions of the software and what the system can't do as well
iii) Develop: after Defining the requirements the next step is to develop the software in line with the defined requirements
iv)Testing: Test what has been developed
v) Review/Management : After successful testing of the product/software a review of the whole process before commercializing it is required as well
Please complete the spreadsheet template:
Trans no. Transaction
1. Pamela Wong, the owner, opened a checking account for the business by depositing $48,000 of her personal funds.
2. Paid the monthly rent of $1,500.
3. Bought office furniture on account for $1,000.
4. Pamela Wong invested $3,000 of office equipment in the business.
5. Paid cash for a new computer for the business, $5,000.
6. Paid for an advertisement in the local newspaper, $200.
7. Completed graphic desktop publishing services for a client and sent a bill for $800.
8. Paid $700 on account for the office furniture bought earlier.
9. Received $500 on account from a client.
10. Pamela Wong withdrew $1,000 for personal use.
11. Received $400 cash for desktop publishing services completed for a client.
Answers
Answer:
I used an excel spreadsheet sine there is not enough room here.
Explanation:
Excel templates make it simpler to create a spreadsheet with a polished appearance by including all of the following, with the exception of Data.
What is Excel Sheet ?To eliminate the necessity for the user to generate those designs from scratch, templates are made to specify the fundamental structure of each document that is repeated.
A template typically includes formatting and pre-defined formulas. However, it won't include any data as the template's goal is to have a consistent structure but allow for variable values so that it can respond appropriately to the data.
Formatting and pre-made formulas are frequently included in templates. Although the template aims to have a consistent structure and allow for variable values so that it can react appropriately to the data, it won't contain any data.
Any template will therefore include design but not data. We are able to make a new one, modify an existing template, or utilize the default template.
Learn more about Templates here
https://brainly.com/question/13270285
# SPJ 5
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool Activity Rates
Labor-related $5.00 per direct labor-hour
Machine-related $10.00 per machine-hour
Machine setups $30.00 per setup
Production orders $200.00 per order
Shipments $140.00 per shipment
General factory $10.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
J78 B52
Direct materials cost per unit $5.50 $20.00
Direct labor cost per unit $4.25 $7.00
Number of units produced per year 2,000 200
Total Expected Activity
J78 B52
Direct labor-hours 1,500 50
Machine-hours 2,600 30
Machine setups 6 1
Production orders 8 1
Shipments 8 1
Required:
Compute the unit product cost of each product listed above.
Answers
Answer:
J78= $35.45
B52= $34.2
Explanation:
First, we need to allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
J78:
Labor-related= 5*1,500= 7,500
Machine-related= 10*2,600= 26,000
Machine setups= 30*6= 180
Production orders= 200*8= 1,600
Shipments= 140*8= 1,120
General factory= 10*1,500= 15,000
Total allocated overhead= $51,400
Unitary allocated overhead= 51,400/2,000= $25.7
B52:
Labor-related= 5*50= 250
Machine-related= 10*30= 300
Machine setups= 30*1= 30
Production orders= 200*1= 200
Shipments= 140*1= 140
General factory= 10*50= 500
Total allocated overhead= $1,420
Unitary allocated overhead= 1,420/200= $7.1
Finally, the unitary cost:
J78= 5.5 + 4.2 + 25.7= $35.45
B52= 20 + 7 + 7.2= $34.2
Read the following sentences, and identify the error.
a. Paolo recruited job applicants for the company that showed promise.
The error in this sentence is a:_________ .
b. We will be visiting our accounts in California, Oregon, and visiting our accounts in Washington.
The error in this sentence is a:________ .
Before you decide whether to use passive or active voice, you should consider the purpose of your message and the nature of the situation. Read the scenario, and then fill in the blanks.
You work for a printing company, and you realize that your colleague sent incorrect price quotes to a client. You begin to write an e-mail to the client to apologize for the mistake. You want to remedy the situation without criticizing your colleague. The sentence excerpted from the e-mail uses ______________ voice. Given the purpose of your message, this voice ___________ appropriate.
Answers
Answer:
a. Paolo recruited job applicants for the company that showed promise.
The error in this sentence is a: AMBIGUITY.
Who showed promise? The company or the job applicants? This sentence is not specific and you really cannot tell whether the job applicants or the company showed promise.
b. We will be visiting our accounts in California, Oregon, and visiting our accounts in Washington.
The error in this sentence is a: LACK OF PARALLELISM.
In order to show parallelism you should include the dates of the visits, since you cannot visit all 3 states in the same day and do your work properly.You work for a printing company, and you realize that your colleague sent incorrect price quotes to a client. You begin to write an e-mail to the client to apologize for the mistake. You want to remedy the situation without criticizing your colleague.
The sentence is missing, so I looked for a similar question:
"Bill made an error when he was processing your invoice."
The sentence excerpted from the e-mail uses ACTIVE voice. Given the purpose of your message, this voice IS NOT appropriate.
The whole purpose of this message is to solve a problem without criticizing Bill, but by using active voice, you are directly criticizing him.. Suppose you bought 100 shares of stock at an initial price of $37 per share. The stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41. (1) What is your total dollar return on this investment
Answers
Answer: $428
Explanation:
From the question, we are informed that one bought 100 shares of stock at an initial price of $37 per share and that the stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41.
The total dollar return on this investment will be calculated as:
= 100(41 - 37 + 0.28)
= $428
An Investment Adviser Representative (IAR) manages the assets of the ABC Corporation Profit Sharing Plan. The trustee of the plan contacts the IAR, explaining to the IAR that he wants a check drawn from the plan account to buy a building that ABC Corporation will occupy. The IAR should:
Answers
Answer:
refuse to issue the check because it is a breach of the IAR's fiduciary obligation
Explanation:
This check should not be issued because if it is issued it would be a breach of the investment advisor representative fiduciary obligation. His main responsibility is to offer advices that relates to investment because he is a financial planner. He has to act in the best interest of his client with loyalty and also in good faith.
At Davide Corporation, direct materials are added at the beginning of the process and conversions costs are uniformly applied. Other details include:
WIP beginning (60% for conversion) 17,500 units
Units started 114,500 units
Units completed and transferred out 111,700 units
WIP ending (30% for conversion) 20,300 units
Beginning WIP direct materials $22,300
Beginning WIP conversion costs $19,700
Costs of materials added $370,000
Costs of conversion added $280,000
What is the total cost of units completed and transferred out?
Answers
Answer and Explanation:
For materials
Equivalent completed units = Completed units + WIP ending
= 111,700 + 20,300
= 132,000 units
Cost of materials = Beginning WIP + Cost of materials added
= 22,300 + 370,000
= $392,300
Cost of material per units = 392,300 ÷ 132,000
= $2.97197
For conversions
Equivalent completed units = Completed units + WIP ending
= 111,700 + 20,300 × 30%
= 117,790 units
Cost of Conversion = Beginning WIP + Cost of conversion added
= 19,700 + 280,000
= $299,700
Cost of conversion per units = 299,700 ÷ 117,790
= $2.54436
Total cost of units completed and transferred out
= 111,700 × (2.97197 + 2.54436)
= $616,174
The given statements pertain to aggregate supply and aggregate demand. Label each statement as being either true or false.
Statement 1: An increase in the cost of energy affects both aggregate supply and aggregate demand.
A. True
B. False
Statement 2: One of the factors that increase aggregate demand is the consumption of more imports.
A. True
B. False
Statement 3: If the value of people's stock portfolios increases or if peoples houses appreciate in value, then this very easily could lead to an increase in aggregated demand.
A. True
B. False
Answers
Answer:
Statement 1: An increase in the cost of energy affects both aggregate supply and aggregate demand.
A. TrueAn increase in energy costs reduces both aggregate supply and demand.
Statement 2: One of the factors that increase aggregate demand is the consumption of more imports.
B. FalseIf net exports decrease (exports - imports), then the aggregate demand curve will shift to the left, which means it will decrease.
Statement 3: If the value of people's stock portfolios increases or if peoples houses appreciate in value, then this very easily could lead to an increase in aggregated demand.
A. TrueThis would lead to an increase in the net worth of households, which generally leads to higher spending.
Ten years ago, Ginny inherited $50,000 from her grandmother. She decided to invest all of this money in GE stock. Suppose she decides to sell the stock today so she can purchase her first home. The sale price of the stock is $64,500. Calculate the size of Ginny's taxable capital gain.
Answers
Answer:
$14,500
Explanation:
The size of Ginny's taxable capital gain = $64,500 - $50,000 = $14,500
Note: Capital gains tax is a tax on the profit realized on the sale of a non-inventory asset.
General store accounts were the easiest forms of credit
-true
-false
Answers
Answer:
false
Explanation:
Im just guessing
g after examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of percent compounded or from a bank at an APR of percent compounded . Which alternative is more attractive? a. If you borrow $ from a finance company at an APR of percent compounded for year, how much do you need to payoff the loan?
Answers
question text WITH missing information:
After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of 12 percent compounded monthly or from a bank at an APR of 13 percent compounded annually. Which alternative is more attractive?
If you borrow $100 from a finance company at an APR of 9% percent compounded for year, how much do you need to payoff the loan?
Answer:
The finance company option is better as we are taking the loan we want the lower rate possible.
We need $109 to payoff the loan of $100 at 9% annualy after a whole year.
Explanation:
We solve for the effective rate of 12% compounded monthly
[tex](1+\frac{0.12}{12} )^{12}[/tex] = 1.12682503 = 0.126825 = 12.6825%
As this rate is lower than 13% this option is better
If we take 100 dollars after a year we have to pay:
$100 x (1 + r) = 100 x (1 + 0.09) = 100 x 1.09 = $109
The stockholders’ equity accounts of Castle Corporation on January 1, 2020, were as follows.
Preferred Stock (8%, $50 par, 10,000 shares authorized) $400,000
Common Stock ($1 stated value, 2,000,000 shares authorized) 1,000,000
Paid-in Capital in Excess of Par—Preferred Stock 100,000
Paid-in Capital in Excess of Stated Value—Common Stock 1,450,000
Retained Earnings 1,816,000
Treasury Stock (10,000 common shares) 50,000
During 2020, the corporation had the following transactions and events pertaining to its stockholders’ equity.
Feb. 1 Issued 25,000 shares of common stock for $120,000.
Apr. 14 Sold 6,000 shares of treasury stock—common for $33,000.
Sept. 3 Issued 5,000 shares of common stock for a patent valued at $35,000.
Nov. 10 Purchased 1,000 shares of common stock for the treasury at a cost of $6,000.
Dec. 31 Determined that net income for the year was $452,000.
Instructions:
A) Journalize the transactions and the closing entry for net income.
B) Enter the beginning balances in the accounts, and post the journal entries to the stockholders’ equity accounts. (Use J5 for the posting reference.)
C) Prepare a stockholders’ equity section at December 31, 2017.
Answers
Answer:
Castle Corporation
A) Journal Entries:
Feb. 1:
Debit Cash Account $120,000
Credit Common Stock $25,000
Credit Paid-in Capital in Excess of Stated Value—Common Stock $95,000
To record the issue of 25,000 common stock shares for $120,000
Apr. 14:
Debit Cash Account $33,000
Credit Treasury Stock $33,000
To record the reissue of 6,000 shares of treasury stock- common for $33,000.
Sept. 3:
Debit Patent $35,000
Credit Common Stock $5,000
Credit Paid-in Capital in Excess of Stated Value—Common Stock $30,000
To record the issue of common stock shares for a patent valued at $35,000
Nov. 10:
Debit Treasury Stock $6,000
Credit Cash $6,000
To record the purchase of treasury stock for $6,000
Dec. 31:
Debit Net Income (Income Statement) $452,000
Credit Retained Earnings $452,000
To close the net income on the income statement to the Statement of retained earnings.
B) Stockholders' Equity Accounts:
Preferred Stock (8%, $50 par, 10,000 shares authorized)
Date Accounts Titles Debit Credit
Jan. 1, 2020 Beginning balance $400,000
Common Stock ($1 stated value, 2,000,000 shares authorized)
Date Accounts Titles Debit Credit
Jan. 1, 2020 Beginning balance $1,000,000
Feb. 1, 2020 Cash Account 25,000
Sept. 3 Patent 5,000
Dec. 31 Ending balance $1,030,000
Paid-in Capital in Excess of Par—Preferred Stock
Date Accounts Titles Debit Credit
Jan. 1, 2020 Beginning balance $100,000
Paid-in Capital in Excess of Stated Value—Common Stock
Date Accounts Titles Debit Credit
Jan. 1, 2020 Beginning balance $1,450,000
Feb. 1, 2020 Cash Account 95,000
Sept. 3 Patent 30,000
Dec. 31 Ending balance $1,575,000
Retained Earnings
Date Accounts Titles Debit Credit
Jan. 1, 2020 Beginning balance $1,816,000
Dec. 31 Net Income 452,000
Dec. 31 Ending balance $2,268,000
Treasury Stock (10,000 common shares)
Date Accounts Titles Debit Credit
Jan. 1, 2020 Beginning balance $50,000
Apr. 14 2020 Cash Account $33,000
Nov. 10 2020 Cash Account 6,000
Dec. 31 2020 Ending balance $23,000
C. Stockholders' Equity accounts on December 31, 2020:
Preferred Stock (8%, $50 par, 10,000 shares authorized) $400,000
Common Stock ($1 stated value, 2,000,000 shares authorized) 1,030,000
Paid-in Capital in Excess of Par—Preferred Stock 100,000
Paid-in Capital in Excess of Stated Value—Common Stock 1,575,000
Retained Earnings 2,268,000
Treasury Stock (5,000 common shares) (23,000)
Explanation:
Stockholders' Equity accounts on January 1, 2020:
Preferred Stock (8%, $50 par, 10,000 shares authorized) $400,000
Common Stock ($1 stated value, 2,000,000 shares authorized) 1,000,000
Paid-in Capital in Excess of Par—Preferred Stock 100,000
Paid-in Capital in Excess of Stated Value—Common Stock 1,450,000
Retained Earnings 1,816,000
Treasury Stock (10,000 common shares) 50,000
At year-end, Marshall Enterprise's Factory Overhead account has a credit balance of $5,000, which is not a material amount. What entry should Marshall make at year-end
Answers
Answer:
Factory overheads $5,000 - Debit
Cost of goods sold $5,000 - Credit
Explanation:
Credit balance of overheads means over-applied overheads. Hence, when it is not material amount, it will be closed in Cost of goods sold account.
Date Accounts title and explanation Debit Credit
Factory Overheads $5,000
Cost of goods sold $5,000
(For closing the overheads credit balance)
Consider a project to supply Detroit with 20,000 tons of machine screws annually for automobile production. You will need an initial $3,000,000 investment in threading equipment to get the project started; the project will last for four years. The accounting department estimates that annual fixed costs will be $850,000 and that variable costs should be $450 per ton; accounting will depreciate the initial fixed asset investment straight-line to zero over the four-year project life. It also estimates a salvage value of $280,000 after dismantling costs. The marketing department estimates that the automakers will let the contract at a selling price of $600 per ton. The engineering department estimates you will need an initial net working capital investment of $300,000. You require a return of 18 percent and face a marginal tax rate of 38 percent on this project.
Required:
a. What is the estimated OCF for this project?
b. Suppose you believe that the accounting department’s initial cost and salvage value projections are accurate only to within ±15 percent; the marketing department’s price estimate is accurate only to within ±10 percent; and the engineering department’s net working capital estimate is accurate only to within ±5 percent. What is your worst-case and best-case scenario for this project?
Answers
Answer:
a) expected revenue = 20,000 tons x $600 = $12,000,000 per year
initial investment = $3,000,000 + $300,000 = $3,300,000
contribution margin per unit = $600 - $450 = $150
total contribution margin = $150 x 20,000 = $3,000,000
annual fixed costs = $850,000
depreciation expense per year = $750,000
tax rate = 38%
required return rate = 18%
after tax salvage value = $280,000 x (1 - 38%) = $173,600
NCF₀ = -$3,300,000
NCF₁ = [($3,000,000 - $850,000 - $750,000) x 0.62] + $750,000 = $1,618,000
NCF₂ = $1,618,000
NCF₃ = $1,618,000
NCF₄ = $1,618,000 + $300,000 + $173,600 = $2,091,600
NPV = $1,296,797.61
IRR = 36.36%
b) our best case scenario:
expected revenue = 20,000 tons x $660 = $13,200,000 per year
initial investment = $2,550,000 + $285,000 = $2,835,000
contribution margin per unit = $660 - $450 = $210
total contribution margin = $210 x 20,000 = $4,200,000
annual fixed costs = $850,000
depreciation expense per year = $637,500
tax rate = 38%
required return rate = 18%
after tax salvage value = $322,000 x (1 - 38%) = $199,640
NCF₀ = -$2,835,000
NCF₁ = [($4,200,000 - $850,000 - $637,500) x 0.62] + $637,500 = $2,319,250
NCF₂ = $2,319,250
NCF₃ = $2,319,250
NCF₄ = $2,319,250 + $285,000 + $199,640 = $2,803,890
NPV = $3,655,445.13
IRR = 74.34%
our worst case scenario:
expected revenue = 20,000 tons x $540 = $10,800,000 per year
initial investment = $3,450,000 + $315,000 = $3,765,000
contribution margin per unit = $540 - $450 = $90
total contribution margin = $90 x 20,000 = $1,800,000
annual fixed costs = $850,000
depreciation expense per year = $862,500
tax rate = 38%
required return rate = 18%
after tax salvage value = $238,000 x (1 - 38%) = $147,560
NCF₀ = -$3,765,000
NCF₁ = [($1,800,000 - $850,000 - $862,500) x 0.62] + $862,500 = $916,750
NCF₂ = $916,750
NCF₃ = $916,750
NCF₄ = $916,750 + $315,000 + $147,560 = $1,379,310
NPV = -$1,060,302.54
IRR = 3.56%
f Europe has a real GDP growth rate of 5%, and the United States has a real GDP growth rate of 6%, while money growth in Europe is 7%, and money growth in the United States is 5%, what would the monetary exchange rate model predict for exchange rates in the long run
Answers
Answer:
the dollar will appreciate by 3% against the euro
Explanation:
long run change in the exchange rate = (growth rate money supply Europe - growth rate money supply US) - (growth rate real GDP Europe - growth rate real GDP US) = (7% - 5%) - (5% - 6%) = 2% - (-1%) = 2% + 1% = 3%
This is a very simplistic approach to the monetary exchange rate model, but since we are given only this information, it's all that we can use.
Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
A. The equipment was purchased on account for $25,000. Credit terms were 2/10, n/30. Payment was made within the discount period and the company records the purchases of equipment net of discounts.
B. Connors gave the seller a noninterest-bearing note. The note required payment of $27,000 one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of 10% properly reflects the time value of money in this situation.
C. Connors traded in old equipment that had a book value of $6,000 (original cost of $14,000 and accumulated depreciation of $8,000) and paid cash of $22,000. The old equipment had a fair value of $2,500 on the date of the exchange. The exchange has commercial substance.
D. Connors issued 1,000 shares of its nopar common stock in exchange for the equipment. The market value of the common stock was not determinable. The equipment could have been purchased for $24,000 in cash.
Required:
For each of the above situations, prepare the journal entry required to record the acquisition of the equipment.
Answers
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Journal Entries
Debit Credit
A. The equipment was purchased on account for $25,000.
Equipment $25,000
Accounts Payable $25,000
B. Connors gave the seller a noninterest-bearing note. The note required payment of (27,000 x 1/(1+10%)
Equipment $24,545
Discount on Notes Payable $2,455
Note Payable $27,000
C. Connors traded in old equipment that had a book value of $6,000
Equipment New $24,500
Accumulated Depreciation $8,000
Loss on Equipment $3,500
Cash $22,000
Equipment Old $14,000
D.Connors issued 1,000 shares of its no-par common stock in exchange for the equipment
Equipment $24,000
Common Stock $24,000
A.
Journal entry 25,000/(1-.02) = 24,500
Debit: Equipment - new 24,500
Credit: Accounts Payable 24,500
B. 27,000/(1+.10)=24,545 then 27,000-24,545 = 2,455
Debit: Equipment - new 24,545
Debit: Discount on Notes Payable 2,455
Credit: Notes Payable 27,000
C.
Debit: Equipment - new 24,500 (22,000+2,500)
Debit: Accumulated Depreciation 8,000
Debit: Loss on Exchange of assets 3,500 (6,000-2,500)
Credit: Cash 22,000
Credit: Equipment - old 14,000
D.
Debit: Equipment 24,000
Credit: Common Stock 24,000
The technique recommended by the text to organize an analysis of external strategic factors is called
Answers
Pham can work as many or as few hours as she wants at the college bookstore for $12 per hour. But due to her hectic schedule, she has just 15 hours per week that she can spend working at either the bookstore or other potential jobs. One potential job, at a café, will pay her $15 per hour for up to 6 hours per week. She has another job offer at a garage that will pay her $13 an hour for up to 5 hours per week. And she has a potential job at a daycare center that will pay her $11.50 per hour for as many hours as she can work.
If her goal is to maximize the amount of money she can make each week, how many hours will she work at the bookstore?
Answers
Answer:
4 hours
Explanation:
For Pham to maximize her income, she must consider the jobs with the highest per-hour earnings first. She has 15 hours to work. Her priorities should be as below.
Work at the cafe for 6 hours for $15 per hourWork at the garage for 5 hours for $13 per hourWork at the books store for 4 hours for $12 per hourA total of 15 hours. Pham can work at the book store for 4 hours per week to maximize her income.
Pham will have to work 4 hour per week at the bookstore to maximize her pay.
Given data
Total number of hours available per week = 15 hours
Cafe will pay her $15 per hour up to 6 hoursGarage offers $13 per hour up to 5 hoursDycare Centre offers $11.50 per hours for as long as she can workOut of the potential job, only the cafe and garage centre pay is more than the pay of bookstore
Hence, in order to maximize the amount of money, Pham have to devote 6 hours at the cafe, 5 hours at the garage centre and remaining 4 hours at bookstore,
In this way, the amount of money she will receives will be at maximum.
Working at Cafe she will make $15 * 6 = $90 Working at Garage centre she will make $13 * 5 = $65Working at Bookstore she will make $12*4 = $48Total amount she will earn = $90 + $65 + $48
Total amount she will earn = $203
Therefore, Pham will have to work 4 hour per week at the bookstore to maximize her pay.
Read more about pay maximization
brainly.com/question/10880329
on an annal basis, the first set of expenses is ____% of the second set of expenses. MAria spends 17 dollars on lottery tickets every week and spends
Answers
Completion Question:
On an annualbasis, the first set of expenses is _______% of the second set of expenses. Maria spends $17 on lottery tickets every week and spends $133 per month on food. On an annual basis, the money spent on lottery tickets is % of the money spent to buy food. (Round to the nearest percent asneeded.)
Answer:
Maria's Spending
On an annualbasis, the first set of expenses is ____55.39___% of the second set of expenses. Maria spends $17 on lottery tickets every week and spends $133 per month on food. On an annual basis, the money spent on lottery tickets is 55.39 % of the money spent to buy food.
Explanation:
Maria spends $17 on lottery tickets every week
Therefore, every 4-week month, she spends $68 ($17 * 4) on lottery tickets
Normally, a year = 52 weeks.
Annually, Maria spends $884 ($17 * 52) on lottery tickets
Also
Maria spends $133 per month on food.
Normally, a year = 12 months.
Annually, she spends $1,596 ($133 x 12) on food
Ratio of Lottery tickets to Food annually:
= $884 : $1,596
= $884/$1,596
= 55.39%
or
0.5539 : 1
b) What is done here is to convert to each cost to its annual equivalent. The cost of Lottery tickets was converted from per week basis to per annum. The cost of food was converted from per month basis to per annum. These conversions make the two variables comparable, since they have been reduced to similar standards of measurement.
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.
Answers
Answer:
Cash flow from operating activities = $1,000
Explanation:
Statement of Cash flow
Cash from Operating activities
Net Income $3,000
+ Depreciation $2,000
+ Loss from sales of PPE $1,000
Adjustment on Working capital
Increase in accounts receivables -$4,000
(1,000 - 5,000)
Decrease in Inventory $1,000
(5,000 - 4,000)
Decrease in Account payable -$1,000
(4,000 - 5,000)
Decrease in unearned revenue -$1,000
(1,000 - 2,000)
Cash flow from operating activities $1,000
Help me please thank you
Answers
Answer:
You have to be intelligent, risk taking and you haver to care about your people.
Explanation:
Firms may not include all income taxes for a period on the line for income tax expense in the income statement. Other places that income tax expenses may occur include all of the following except: Select one: a. Extraordinary Items b. Other Comprehensive Income c. Common Stock d. Discontinued Operations
Answers
Answer:
Option C
Explanation:
Firms may not include all income taxes for a period on the line for income tax expense in the income statement. Other places that income tax expenses may occur include all of the following except Common Stock. Common stock is a form of corporate equity ownership, a type of security. Common stock is reported in the stockholder's equity section of a company's balance sheet.
Computech Corporation is expanding rapidly and currently needs to retain all of its earnings; hence, it does not pay dividends. However, investors expect Computech to begin paying dividends, beginning with a dividend of $1.25 coming 3 years from today. The dividend should grow rapidly - at a rate of 32% per year - during Years 4 and 5; but after Year 5, growth should be a constant 6% per year. If the required return on Computech is 17%, what is the value of the stock today? Round your answer to the nearest cent. Do not round your intermediate calculations.
Answers
Answer:
P₀ = $12.23
Explanation:
Div₃ = $1.25
Div₄ = $1.65
Div₅ = $2.178
Div₆ = $2.30868
first we must calculate the terminal value using the dividend discount model = $2.30868 / (17% - 6%) = $20.988
now we must discount all the future dividends + terminal value
P₀ = $1.25/1.17³ + $1.65/1.17⁴ + $2.178/1.17⁵ + $20.988/1.17⁵ = $12.23
Presented below is the trial balance of Sage Corporation at December 31, 2020.
Debit Credit
Cash $201,720
Sales $8,101,160
Debt Investments (trading) (at cost, $145,000) 154,160
Cost of Goods Sold 4,800,000
Debt Investments (long-term) 303,720
Equity Investments (long-term) 281,720
Notes Payable (short-term) 91,160
Accounts Payable 456,160
Selling Expenses 2,001,160
Investment Revenue 67,870
Land 261,160
Buildings 1,044,720
Dividends Payable 140,720
Accrued Liabilities 97,160
Accounts Receivable 436,160
Accumulated Depreciation-Buildings 152,000
Allowance for Doubtful Accounts 26,160
Administrative Expenses 904,870
Interest Expense 215,870
Inventory 601,720
Gain 84,870
Notes Payable (long-term) 904,720
Equipment 601,160
Bonds Payable 1,004,720
Accumulated Depreciation-Equipment 60,000
Franchises 160,000
Common Stock ($5 par) 1,001,160
Treasury Stock 192,160
Patents 195,000
Retained Earnings 82,720
Paid-in Capital in Excess of Par 84,720
Totals $12,355,300 $12,355,300
Required:
Prepare a balance sheet at December 31, 2020, for Sage Corporation.
Answers
Answer:
Balance sheet at December 31, 2020, for Sage Corporation.
Current Assets
Cash $201,720
Debt Investments (trading) $154,160
Equity Investments (long-term) $281,720
Accounts Receivable $436,160
Allowance for Doubtful Accounts ($26,160)
Inventory $601,720
Total Current Assets $1,649,320
Non-Current Assets
Land $261,160
Buildings $1,044,720
Franchises $160,000
Patents $195,000
Accumulated Depreciation-Buildings ($152,000)
Accumulated Depreciation-Equipment ($60,000)
Total Non-Current Assets $1,448,880
Current Liabilities
Notes Payable (short-term) $91,160
Dividends Payable $140,720
Accrued Liabilities $97,160
Total Current Liabilities $329,040
Non-Current Liabilities
Accounts Payable $456,160
Notes Payable (long-term) $904,720
Bonds Payable $1,004,720
Total Non-Current Liabilities $2,365,600
Stockholder's Equity
Common Stock ($5 par) $1,001,160
Treasury Stock $192,160
Retained Earnings $82,720
Paid-in Capital in Excess of Par $84,720
Total Stockholder's Equity $1,360,760
An example of economies of scope is: Group of answer choices Google utilizing its information processing capabilities to provide data analysis services to other firms. The 200,000 unit production threshold for GM to make a profit on a car model. Decreasing per unit costs given increased unit production. Increasing per unit costs given increased unit production. None of the available answers.
Answers
Answer:
Google utilizing its information processing capabilities to provide data analysis services to other firms.
Explanation:
Many people confuse economies of scope with economies of scale. Economies of scope result when producing 2 or more different goods or services together is cheaper than producing them separately. While economies of scale refers to decreasing unit costs as the total output increases.
In the example above, Google already processes information for itself, and it is using that information to sell services to other companies. By producing both services together, the production costs lower.
There are two machines for sale that you are considering purchasing for your sawmill to produce hardwood flooring. You want to find the one that has a higher process capability index, or Cpk. The goal is to produce flooring that is between 46 and 50 millimeters thick. The first machine is more accurate on average, producing to a mean of 48 millimeters...but unfortunately it has more variation with a standard deviation of 7 millimeters. The second machine is not as accurate, with a mean of 47mm, but does deliver a more consistent output, with standard deviation of 3mm.
[ Select] What is the Cpk of machine 1?
[Select] What is the Cpk of machine 2?
[ Select] If your goal is to be capable', what would you do?
[ Select] If (somehow) you could combine the best of both machines (the centering or average of machine 1 coupled with the constancy or standard deviation of machine 2, what would the Cpk be?
Answers
Answer:
Machine 1 = 0.092
Machine 2 = 0.111
Combined = 0.222
Explanation:
Given the following :
Lower specification limit (LSL) = 46 mm
Upper specification limit (USL) = 50 mm
MACHINE 1:
Mean 1 (m1) = 48
Standard deviation 1 (σ1) = 0.7
MACHINE 2:
Mean 2 (m2) = 47
Standard deviation 2 (σ2) = 0.3
Cpk formula:
Min(USLcpk, LSLcpk)
USLcpk = (USL - m) / 3σ
LSLcpk = (m - LSL) / 3σ
FOR MACHINE 1:
USLcpk = (50 - 48) / 3(7) = 0.0952
LSLcpk = (48 - 46) / 3(7) = 0.0952
Cpk = Min(0.952, 0.952) = 0.952
FOR MACHINE 2:
USLcpk = (50 - 47) / 3(3) = 0.333
LSLcpk = (47 - 46) / 3(3) = 0.111
Min(USLcpk, LSLcpk)
Cpk = Min(0.333, 0.111) = 0.111
When combined :
Mean = 48
σ = 3
USLcpk = (50 - 48) / 3(3) = 0.222
LSLcpk = (48 - 46) / 3(3) = 0.222
Min(USLcpk, LSLcpk)
Cpk = Min(0.222, 0.222) = 0.222