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
Describe the steps in the process of human resource planning. Explain the relationships between the steps.
Explanation:
The human resources planning process is the set of strategic actions that a company will develop to use organizational human capital in an improved and effective way, that is, they are the necessary actions for attracting and retaining qualified and motivated employees to assist employees. organizational goals and objectives.
There are four main stages of HR planning, they are:
1. Analysis of the offer:
In the first stage, the company's human capital and characteristics are analyzed, that is, everything that concerns the company's workers, how many employees, what position they occupy, what benefits the company offers, etc.
2. Demand forecast:
At this stage, an analysis is made of how the company will deal with the future needs of its employees, such as promotions, layoffs, etc.
After the first stage of identifying the workforce, the HR area needs to deal with the future of human capital in the company, as people will have growth needs in the company and others.
3. Balance supply and demand:
In the third stage, HR seeks to analyze how the company's future demands seen in the second stage will influence the needs of the positions in the organization. Like the possibility of hiring more managers, the need to develop training and development programs, etc.
4. implementation:
Each previous stage of human resource planning will lead the department to identify best practices in this fourth and final stage of HR planning.
In this phase, policies, measures and actions necessary to implement the HR plan are developed so that the company can manage its human capital in the best possible way for its success, protecting the rights and duties of employees supported by development, training actions and solving your needs.
In, & Sons, a small environmental-testing firm, has a small environmental-testing firm, performed 11,400 radon tests for $260 each and 15,000 lead tests for $210 each. Because newer homes are being built with lead-free pipes, lead-testing volume is expected to decrease by 12% next year. However, awareness of radon-related health hazards is expected to result in a 5% increase in radon-test volume each year in the near future. Jim Hart feels that if he lowers his price for lead testing to $200 per test, he will have to face only a 4% decline in lead-test sales in 2018.
Required:
a. Prepare a 2018 sales budget for Hart & Sons assuming that Hart holds prices at 2017 levels.
b. Prepare a 2018 sales budget for Hart & Sons assuming that Hart lowers the price of a lead test to $200.
c. Should Hart lower the price of a lead test in 2018 if the company’s goal is to maximize sales revenue?
Answer:
A. $5,884,200
B. $5,992,200
C. If the company's aim and objective is for them to maximize their sales revenue then they should go ahead and lower the selling price of lead tests in 2018
Explanation:
a. Preparation of 2018 sales budget for Hart & Sons assuming that Hart holds prices at 2017 levels
Sales budget
For the year ended December 31, 2018
Selling price Units sold Total Revenue
Radon tests
$260 *11,970 =$3,112,200
(11,400 x 1.05 = 11,970)
Lead tests $210*13,200= $2,772,000
(15,000 x 0.88 = 13,200)
(100%-12%=88%)
Total $5,884,200
$3,112,200+$2,772,000
b. Preparation of 2018 sales budget (lower price)
Sales budget
For the year ended December 31, 2018
Selling price Units sold Total Revenue
Radon tests
$260 *11,970 =$3,112,200
(11,400 x 1.05 = 11,970)
Lead tests $200*14,400= $2,880,000
(15,000 x 0.96 = 14,400)
(100%-4%=96%)
Total $5,992,200
$3,112,200+$2,880,000
C. If the company's aim and objective is for them to maximize their sales revenue then they should go ahead and lower the selling price of lead tests in 2018
3. Identify TWO possible suitable sources of external finance Chris could consider, if the local bank
manager refuses to give him a loan for purchasing a new van for his business. (10 marks)
Please help
Answer:
Hire Purchase
Loans from friends
Explanation:
Hire purchase
A hire purchase (HP) , is also called an installment plan, it is is an financing contract whereby a customer agrees to acquire an asset by paying an initial deposit and repays the balance of the price plus interest on installment bases over a period of time .
Loans from friends
These are loans received from friends which are mostly interest free
Leach Inc. experienced the following events for the first two years of its operations:
Year 1:
Issued $10,000 of common stock for cash.
Provided $78,000 of services on account.
Provided $36,000 of services and received cash.
Collected $69,000 cash from accounts receivable.
Paid $38,000 of salaries expense for the year.
Adjusted the accounting records to reflect uncollectible accounts expense for the year.
Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Closed the revenue account. Closed the expense account.
Year 2:
Wrote off an uncollectible account for $650.
Provided $88,000 of services on account.
Provided $32,000 of services and collected cash.
Collected $81,000 cash from accounts receivable.
Paid $65,000 of salaries expense for the year.
Adjusted the accounts to reflect uncollectible accounts expense for the year.
Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Required
a. Record the Year 1 and Year 2 events in general journal form and post them to T-accounts.
b. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Year 1 and Year 2.
c. What is the net realizable value of the accounts receivable at Year 1 and Year 2?
Answer:
a.1) year 1
Issued $10,000 of common stock for cash.
Dr cash 10,000
Cr common stock 10,000
Provided $78,000 of services on account.
Dr accounts receivable 78,000
Cr service revenue 78,000
Provided $36,000 of services and received cash.
Dr cash 36,000
Cr service revenue 36,000
Collected $69,000 cash from accounts receivable.
Dr cash 69,000
Cr accounts receivable 69,000
Paid $38,000 of salaries expense for the year.
Dr wages expense 38,000
Cr cash 38,000
Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Dr bad debt expense 450
Cr accounts receivable 450
Closed the revenue account. Closed the expense account.
Dr service revenue 114,000
Cr income summary 114,000
Dr income summary 38,450
Cr wages expense 38,000
Cr bad debt expense 450
Dr income summary 75,550
Cr retained earnings 75,550
b.1) income statement year 1Service revenue $114,000
Expenses:
Wages $38,000Bad debt $450 ($38,450)Net income $75,550
balance sheet year 1Assets:
Cash $77,000
Accounts receivable $8,550
total assets $85,550
Equity:
Common stock $10,000
Retained earnings $75,550
total equity $85,550
statement of cash flows year 1Cash flows form operating activities:
Net income $75,550
adjustments:
Increase in accounts receivable ($8,550)
net cash from operating activities $67,000
Cash flow from financing activities:
Common stocks issued $10,000
Net cash increase $77,000
beginning cash balance $0
Ending cash balance $87,000
a.2) Year 2:
Wrote off an uncollectible account for $650.
Dr bad debt expense 650
Cr accounts receivable 650
Provided $88,000 of services on account.
Dr accounts receivable 88,000
Cr service revenue 88,000
Provided $32,000 of services and collected cash.
Dr cash 32,000
Cr service revenue 32,000
Collected $81,000 cash from accounts receivable.
Dr cash 81,000
Cr accounts receivable 81,000
Paid $65,000 of salaries expense for the year.
Dr wages expense 65,000
Cr cash 65,000
Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 5 percent of the ending accounts receivable balance will be uncollectible.
Dr bad debt expense 745
Cr accounts receivable 745
b.2) income statement year 2Service revenue $120,000
Expenses:
Wages $65,000Bad debt $1,395 ($38,450)Net income $53,605
balance sheet year 2Assets:
Cash $125,000
Accounts receivable $14,155
total assets $139,155
Equity:
Common stock $10,000
Retained earnings $129,155
total equity $139,155
statement of cash flows year 2Cash flows form operating activities:
Net income $53,605
adjustments:
Increase in accounts receivable ($5,605)
net cash from operating activities $48,000
Net cash increase $48,000
beginning cash balance $77,000
Ending cash balance $125,000
c) net realizable value of accounts receivable at year 1 = $8,550
net realizable value of accounts receivable at year 2 = $14,155
a. Recording the Year 1 and Year events in general journal form and posting to T-accounts for Leach Inc. are as follows:
General JournalYear 1:
Debit Cash $10,000
Credit Common stock $10,000
Debit Accounts Receivable $78,000
Credit Service Revenue $78,000
Debit Cash $36,000
Credit Service Revenue $36,000
Debit Cash $69,000
Credit Accounts Receivable $69,000
Debit Salaries Expense $38,000
Credit Cash $38,000
Adjustment:
Debit Bad Debts Expense $450
Credit Uncollectible Allowance $450
Year 2:
Debit Accounts Receivable $650
Credit Uncollectible Allowance $650
Debit Accounts Receivable $88,000
Credit Service Revenue $88,000
Debit Cash $32,000
Credit Service Revenue $32,000
Debit Cash $81,000
Credit Accounts Receivable $81,000
Debit Salaries Expense $65,000
Credit Cash $65,000
Adjustment:
Debit Bad Debts Expense $968
Credit Uncollectible Allowance $968
T-accounts:Year 1:
Cash AccountCommon stock $10,000
Service Revenue $36,000
Accounts Receivable $69,000
Salaries Expense $38,000
Balance $77,000
Uncollectible AllowanceBad debts Expense $450
Common Stock
Cash account $10,000
Accounts Receivable
Service Revenue $78,000
Cash $69,000
Balance $9,000
Service RevenueAccounts Receivable $78,000
Cash $36,000
Income Summary $114,000
Salaries ExpenseCash $38,000
Income Summary $38,000
Bad Debts Expense
Uncollectible Allowance $450
Income Summary $450
Year 2:
Cash AccountBalance $77,000
Service Revenue $32,000
Accounts Receivable $81,000
Salaries Expense $65,000
Balance $125,000
Uncollectible AllowanceBalance $450
Accounts Receivable $650
Bad debts expense $968
Balance $768
Common StockBalance $10,000
Accounts Receivable
Balance $9,000
Service Revenue $88,000
Uncollectible allowance $650
Cash $81,000
Balance $15,350
Service RevenueAccounts Receivable $88,000
Cash $32,000
Income Summary $120,000
Salaries ExpenseCash $65,000
Income Summary $65,000
Bad Debts Expense
Uncollectible Allowance $968
Income Summary $968
b. The preparation of the income statement, statement of changes in stockholders' equity, balance sheet, and statement of cash flows for Year 1 and Year 2 are as follows:
Leach Inc.
Income Statements for Year 1 and Year 2:Year 1 Year 2
Service Revenue $114,000 $120,000
Salaries Expense 38,000 $65,000
Bad Debts Expense 450 38,450 968 65,968
Net income $75,550 $54,032
Leach Inc.
Statements of Changes in Stockholders' Equity for Year 1 and Year 2:Year 1 Year 2
Beginning balance $10,000 $85,550
Net income 75,550 54,032
Ending balance $85,550 $139,582
Leach Inc.
Balance Sheets at Year 1 and Year 2:Year 1 Year 2
Assets:
Cash $77,000 $125,000
Accounts Receivable 9,000 15,350
Uncollectible Allowance (450) (768)
Total assets $85,550 $139,582
Equity:
Ending balance $85,550 $139,582
Leach Inc.
Statements of Cash Flows for Year 1 and 2:Operating Activities: Year 1 Year 2
Net income $75,550 $54,032
Changes in working capital:
Accounts receivable (8,550) (6,032)
Operating cash flows $67,000 $48,000
Financing Activities:
Common Stock $10,000 $0
Increase in cash flows $77,000 $48,000
c. The net realizable value of the accounts receivable at Year 1 is $8,550 ($9,000 - $450) and Year 2 is $14,582 ($15,350 - $768).
Data Analysis:Year 1:
Cash $10,000 Common stock $10,000
Accounts Receivable $78,000 Service Revenue $78,000
Cash $36,000 Service Revenue $36,000
Cash $69,000 Accounts Receivable $69,000
Salaries Expense $38,000 Cash $38,000
Adjustment:
Bad Debts Expense $450 Uncollectible Allowance $450
Year 2:
Uncollectible Allowance $650 Accounts Receivable $650
Accounts Receivable $88,000 Service Revenue $88,000
Cash $32,000 Service Revenue $32,000
Cash $81,000 Accounts Receivable $81,000
Salaries Expense $65,000 Cash $65,000
Adjustment:
Bad Debts Expense $968 Uncollectible Allowance $968
= $968 ($650 + $768 - $450)
$768 ($15,350 x 5%)
Learn more about preparing financial statements at https://brainly.com/question/735261
A diet is to contain at least 3640 mg vitamin C, 2190 mg Calcium, and 2170 calories every day. Two foods, a dairy-based meal and a vegan option are to fulfill these requirements. Each ounce of the dairy-based meal provides 40 mg vitamin C, 30 mg Calcium, and 10 calories. Each ounce of the vegan option provides 60 mg vitamin C, 30 mg Calcium, and 50 calories. If the dairy-based meal costs $0.21 per ounce and the vegan option costs $0.27 per ounce.
Required:
a. How many ounces of each food should be purchased to minimize costs?
b. What is that minimum cost (per day)?
Answer:
(A) 73 ounces of diary-based meal and 28.8 ounces of the vegan option.
(B) The minimum cost per day is [73 × 0.21] + [28.8 × 0.27] = 15.33 + 7.776 = $23.106
Explanation:
First thing to note is that the dairy-based meal costs less than the vegan option. In otherwords, if you're to minimize cost, you should purchase as many ounces of dairy-based meal as possible. This is the first mindset or step.
What the diet should contain everyday:
3640mg - Vitamin C
2190mg - Calcium
2170 - Calories
DAIRY BASED:
(40 × 91 = 3640), (30 × 73 = 2190), (10 × 217 = 2170)
VEGAN OPTION:
(60 × 60.67 = 3640), (30 × 73 = 2190), (50 × 43.4 = 2170)
Getting 73 ounces of dairy-based meal, you have
(40 × 73), (30 × 73), (10 × 73) = 2920mg, 2190mg, 730 calories.
You have left 720mg of Vitamin C and 1440 calories to obtain from the Vegan Option.
(60 × 12 = 720), (30 × 0 = 0), (50 × 28.8 = 1440)
The highest quantity needed here is 28.8 ounces of calories from the vegan option, hence 28.8 ounces of the vegan meal should be purchased. There will be excesses of Vitamin C and Calcium but that is necessary in order to purchase the stipulated minimum amount of each nutrient.
The minimum cost per day will now be [73 × 0.21] + [28.8 × 0.27] = 15.33 + 7.776 = $23.106
Robert needs his daily fix of coffee in the mid-afternoon and visits different coffee shops that will give him as much utility as possible, given his $20/month food budget. On Monday, the Blue Coffee Shop was selling espresso shots for $3 each and Robert added 3 shots to his cappuccino. By Friday, the Purple Coffee Shop offered espresso shots for $2 each, while all other prices remained the same, so Robert was bold and added 4 espresso shots to his hot beverage.
Required:
Given this information, plot Robert's demand curve for espresso shots.
Answer:
I drew Robert's demand curve for espresso shots assuming that it was a linear curve since the information contained in the question is limited to that.
A demand curve generally is downward sloping, since an increase in price will usually result in a higher quantity demanded (at least for normal goods).
I WILL GIVE BRAINLIEST
What type of manufacturing employee is usually in charge of creating work schedules?
O Operator
O Operations manager
O Assembly line worker
O Quality manager
Answer:
OB
Explanation:
O Operations manager
Budgeted income amount $25.00
Actual amount $17.50
Dollar variance
Percent variance
F or U
Answer:
$7.50 and 30% U
Explanation:
Dollar variance is budgeted amount minus actual amount
=$25- $17.50
=$7.50
Percent variance
=$7.50/$25 x 100
=0.3 x 100
=30% unfavorable
What was the non-live show revenue (merchandising + record sales + etc) for the Amzai Brothers during September-December 2019?
Full question attached
Answer and Explanation:
Answer and explanation attached
The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2018:
Projected benefit obligation $5,800 $6,080
Accumulated benefit obligation 3,800 4,120
Plan assets (fair value) 7,080 7,525
Interest (discount) rate, 8%
Expected return on plan assets, 10%
Prior service cost−AOCI (from Dec. 31, 2017, amendment) 1,010
Net loss−AOCI 728
Average remaining service life: 10 years
Gain due to changes in actuarial assumptions 72
Contributions to pension fund (end of year) 510
Pension benefits paid (end of year) 465
Required:
Prepare a pension spreadsheet that shows the relationships among the various pension balances, shows the changes in those balances, and computes pension expense for 2018.
Answer:
Please see attached.
Explanation:
Prepare a pension spreadsheet that shows the relationship among the various pension balances, show the changes in those balances , and compute pension expense for 2018
Please see detailed solution to the above question.
Question 5 of 10
Why do business often add fees to their invoices?
O A. To help pay for business expenses
B. To attract new customers
C. To reward customers' for their loyalty
D. To make more profit than their competitors
Answer: I think it's A
Explanation:
Answer:
Its A!
Explanation:
Just took the quiz
enter a question here
The following transactions relate to the General Fund of the City of Buffalo Falls for the year ended December 31, 2020:
a. Beginning balances were: Cash, $98,000; Taxes Receivable, $197,000; Accounts Payable, $56,000; and Fund Balance, $239,000.
b. The budget was passed. Estimated revenues amounted to $1,280,000 and appropriations totaled $1,276,400. All expenditures are classified as General Government.
c. Property taxes were levied in the amount of $940,000. All of the taxes are expected to be collected before February 2021.
d. Cash receipts totaled $910,000 for property taxes and $310,000 from other revenue.
e. Contracts were issued for contracted services in the amount of $104,000.
f. Contracted services were performed relating to $93,000 of the contracts with invoices amounting to $90,400.
g. Other expenditures amounted to $986,000.
h. Accounts payable were paid in the amount of $1,130,000.
i. The books were closed.
Required:
a. Prepare journal entries for the above transactions.
b. Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the General Fund.
c. Prepare a Balance Sheet for the General Fund assuming there are no restricted or assigned net resources and outstanding encumbrances are committed by contractual obligation.
Answer:
Please see attached for the detailed solution.
Explanation:
a. Prepare Journal
b. Prepare statement
c. Prepare balance sheet
Please find attached solution to the above questions.
At December 31, 2013, Weiss Imports reported this information on its balance sheet.
Accounts receivable $600,000
Less: Allowance for doubtful accounts 37,000
During 2014, the company had the following transactions related to receivables.
1. Sales on account $2,500,000
2. Sales returns and allowances 50,000
3. Collections of accounts receivable 2,200,000
4. Write-offs of accounts receivable deemed uncollectible 41,000
5. Recovery of bad debts previously written off as uncollectible 15,000
To do;
1. Prepare the journal entries to record each of these five transactions. Assume that no cash discounts were taken on the collections of accounts receivable. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
2. Enter the January 1, 2014, balances in Accounts Receivable and Allowance for Doubtful Accounts, post the entries to the two accounts and determine the balances. (Post entries in the order of journal entries posted in the previous part)
3. Prepare the journal entry to record bad debt expense for 2014, assuming that aging the accounts receivable indicates that estimated bad debts are $46,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
4. Compute the accounts receivable turnover. (Round answer to 1 decimal place, e.g. 12.5.)
Accounts receivable turnover
Image for At December 31, 2013, Weiss Imports reported this information on its balance sheet. During 2014, the company
times
Compute the average collection period. (Round answer to 1 decimal place, e.g. 12.5.)
Average collection period
Image for At December 31, 2013, Weiss Imports reported this information on its balance sheet. During 2014, the company
days
Answer:
account receivables 2,500,000 debit
sales revenue 2,500,000 credit
--to record sales on account--
sales returns and allowances 50,000 debit
account receivables 50,000 credit
--to record return and allowances--
cash 2,200,000 debit
account receivables 2,200,000 credit
--to record collections--
Allowance for doubtful accounts 41,000 debit
Account receivables 41,000 credit
--to record write-off of receivables--
Account receivables 15,000 credit
Allowance for doubtful accounts 15,000 debit
cash 15,000 debit
account receivables 15,000 credit
--to record recovery of write-off account--
Balance:
Account Receivalbes 809,000
Allowance (before adjustment) 11,000
adjusting entry:
bad debt expense 35,000 debit
Allowance for doubtful accounts 35,000 credit
Allowance after adjustment: 46,000
Account receivables TO: 3.75
Explanation:
Account Receivables:
DEBIT CREDIT
600,000
2,500,000
50,000
2,200,000
41,000
15,000
809,000
Allowance:
DEBIT CREDIT
37,000
41,000
15,000
11,000
Aging: 46,000
Adjustment 35,000
Acc Rec TO
[tex]$$ net sales / net receivables \\\\(sales - returns) / (acc rec - allowance)[/tex]
beginning A/R 600,000 - 37,000 = 543,000
ending A/R 809,000 - 46,000 = 763,000
average: (763,000 + 543,000 ) / 2 = 653,000
(2,500,000 - 50,000) / 653,000 = 3,75191 = 3.75
At the end of 2020, Payne Industries had a deferred tax asset account with a balance of $25 million attributable to a temporary book-tax difference of $100 million in a liability for estimated expenses. At the end of 2021, the temporary difference is $64 million. Payne has no other temporary differences. Taxable income for 2021 is $180 million and the tax rate is 25%. Payne has a valuation allowance of $10 million for the deferred tax asset at the beginning of 2021.
Required:
a. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that the deferred tax asset will be realized in full.
b. Prepare the journal entry(s) to record Payne’s income taxes for 2021, assuming it is more likely than not that only one-fourth of the deferred tax asset ultimately will be realized.
Answer:
A. Payne Industries
(In Million)
Dr Income tax expense $54
Cr To Deferred Tax Assets $9
Cr To Income Tax Payable $45
No Journal Entry Required
b. Dr Income tax expense Dr $54
Cr To Deferred Tax Assets $9
Cr To Income Tax Payable $45
Dr Income tax expense $12
Cr To Valuation Allowance - Deferred Tax Assets $12
Explanation:
a. Preparation of the journal entry(s) to record Payne’s income taxes for 2021,
Payne Industries
(In Million)
Dr Income tax expense $54
($45+$9)
Cr To Deferred Tax Assets $9
[($100-$64)*25%]
Cr To Income Tax Payable $45
($180*25%)
(To record income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )
No Journal Entry Required
b. Preparation of the journal entry(s) to record one-fourth of the deferred tax asset ultimately will be realized
Journal Entries
(In Million)
Dr Income tax expense Dr $54
($45+$9)
Cr To Deferred Tax Assets $9
[($100-$64)*25%]
Cr To Income Tax Payable $45
($180*25%)
(Being income tax expense recorded for 2021 and deferred tax assets reversed for temporary differences reversal )
Dr Income tax expense $12
Cr To Valuation Allowance - Deferred Tax Assets $12
[($64*75%)*25%]
(Being to record valuation allowance for deferred tax assets)
One-year Treasury securities yield 4.85%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 5.2%. If the pure expectations theory is correct, what is the yield today for 2-year Treasury securities
Answer:
5.025%
Explanation:
When we assume that the pure expectations theory is correct, then we are assuming that there is no risk premium involved. The formula to determine the yield for the 2 year treasury security:
(1 + i)² = (1 + 4.85%) x (1 + 5.2%)
(1 + i)² = 1.0485 x 1.052
(1 + i)² = 1.103022
√(1 + i)² = √1.103022
1 + i = 1.050248542
i = 0.050248542 = 5.025%
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Answer:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Explanation:
If overhead is applied using traditional costing based on direct labor hours, the overhead application rate is:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
For example:
Total estimated overhead= $150,000
Allocation base= direct labor hours
Estimated Total number of direct labor hours= 10,000
Predetermined manufacturing overhead rate= 150,000/10,000
Predetermined manufacturing overhead rate= $15 per direct labor hour
McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. At the end of the first quarter of 2020, McKinney & Co. reevaluates its receivables. McKinney’s management decides that $8,500 due from Mangold Corporation will not be collectible. This amount was previously included in the allowance account. On April 23, 2020, McKinney & Co. receives a check from Mangold Corporation for $8,500.
Required:
Prepare the journal entry to record the write-off for Mckinney.
Answer:
Debit Allowance for Doubtful Accounts for $8,500;
Credit Accounts Receivable for $8,500.
Explanation:
The journal entry to record the write-off for Mckinney will look as follows:
McKinney & Co.
Journal Entry
Account title and explanation Dr ($) Cr ($)
Allowance for Doubtful Accounts 8,500
Accounts Receivable 8,500
(To record uncollectable amount due from Mangold Corporation.)
Note that since the management of McKinney decided that $8,500 due from Mangold Corporation will not be collectible, this implies that the Accounts Receivable will reduce by that amount. Therefore, the entries to make to show the reduction in the amount of account receivale by $8,500 is to Debit Allowance for Doubtful Accounts for $8,500 and Credit Accounts Receivable for $8,500.
Skidmore Music Company had the following transactions in March:
a. Sold instruments to customers for $16, 700, received $10, 700 in cash and the rest on account. The cost of the instruments was $7, 100.
b. Purchased $4, 900 of new instruments inventory; paid $1, 700 in cash and owed the rest on account.
c. Paid $720 in wages for the month.
d. Received $3, 100 from customers as deposits on orders of new instruments to be sold to the customers in April.
e. Received a $280 bill for March utilities that will be paid in April.
Required:
Complete the following statements:
1. Cash basis Income Statement
2. Accrual basis Income Statement
Answer: Check attachment
Explanation:
A cash basis income statement is simply referred to as an income statement which contains revenues and expenditures for the company whereby cash has either being received or paid by the company.
For accrual basis income statement, revenue and expenditures are recorded when they're either earned or made.
Check the attachment for more analysis.
how does the IoT and Big Data currently play into your job, your organization and the industry? Are these two things connected and if so, how?
Explanation:
The term IoT is an acronym for 'Internet of Things' which refers to a modern technology that allows certain physical objects or “things” as we may call it to connect to the internet.
While Big Data refers not just to large data, but to an innovative field of technology that specializes in analyzing very large (big) data sets.
Consider the education industry, by means of IoT, it is possible for school management to effectively track their student's academic progress in real-time.
IoT and Big Data connected in the sense that, as these physical things (objects) communicate over the internet, a mass amount of data ("Big Data") is been generated which could then be analyzed using specialized software. In other words, they are mutually beneficial.
Cascade Company was started on January 1, 2016, when it acquired $60,000 cash from the owners. During 2016, the company earned cash revenues of $35,000 and incurred cash expenses of $18,100. The company also paid cash distributions of $4,000.
Required:
Prepare a 2016 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions.
a. Cascade is a sole proprietorship owned by Carl Cascade.
b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $24,000 and Beth Cascade invested $36,000 of the $60,000 cash that was used to start the business. Beth was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Beth to receive 60 percent of the profits and Carl to get the remaining 40 percent. With regard to the $4,000 distribution, Beth withdrew $2,400 from the business and Carl withdrew $1,600.
c. Cascade is a corporation. It issued 5,000 shares of $5 par common stock
for $60,000 cash to start the business.
Answer:
the income statement is the same for all types of businesses:
Revenues $35,000
Expenses ($18,100)
Net income $16,900
a. Cascade is a sole proprietorship owned by Carl Cascade.
statement of equity
Carl Cascade, capital beginning balance $0
paid in capital, Carl Cascade $60,000
net income $16,900
subtotal $76,900
Carl Cascade, drawings (4,000)
Carl Cascade, capital ending balance $72,900
balance sheet
Assets
Cash $72,900
Equity
Carl Cascade, capital $72,900
statement of cash flows
Cash flow from operating activities $16,900
Cash flow from financing activities:
Paid in capital $60,000
Drawings ($4,000)
net cash from financing activities $56,000
net cash increase $72,900
beginning cash balance $0
ending cash balance $72,900
b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade.
statement of equity
Carl Cascade, capital beginning balance $0
Beth Cascade, capital beginning balance $0
paid in capital, Carl Cascade $24,000
paid in capital, Beth Cascade $36,000
net income $16,900
subtotal $76,900
Carl Cascade, drawings (1,600)
Beth Cascade, drawings (2,400)
Carl Cascade, capital ending balance $29,160
Beth Cascade, capital ending balance $43,740
balance sheet
Assets
Cash $72,900
Equity
Carl Cascade $29,160
Beth Cascade $43,740
total equity $72,900
statement of cash flows
Cash flow from operating activities $16,900
Cash flow from financing activities:
Paid in capital $60,000
Drawings ($4,000)
net cash from financing activities $56,000
net cash increase $72,900
beginning cash balance $0
ending cash balance $72,900
c. Cascade is a corporation.
statement of equity
Common stock beginning balance $0
Common stock issued (5,000 stocks) $25,000
Additional paid in capital $35,000
net income $16,900
subtotal $76,900
Dividends (4,000)
Common stock ending balance $25,000
Additional paid in capital ending balance $35,000
Retained earnings $12,900
balance sheet
Assets
Cash $72,900
Equity
Common stock $25,000
Additional paid in capital $35,000
Retained earnings $12,900
total equity $72,900
statement of cash flows
Cash flow from operating activities $16,900
Cash flow from financing activities:
Common stocks issued $25,000
Additional paid in capital $35,000
Dividends ($4,000)
net cash from financing activities $56,000
net cash increase $72,900
beginning cash balance $0
ending cash balance $72,900
Atom Endeavour Co. issued $17 million face amount of 12.0% bonds when market interest rates were 13.38% for bonds of similar risk and other characteristics. Required: a. How much interest will be paid annually on these bonds
Answer:
$2,040,000
Explanation:
Annual Interest calculation
Interest = Par/Face Value × Coupon Rate
= $17,000,000 × 12.0%
= $2,040,000
Therefore, interest to be paid annually on these bonds is $2,040,000.
Mcmurtry Corporation sells a product for $250 per unit. The product's current sales are 13,600 units and its break-even sales are 10,608 units. The margin of safety as a percentage of sales is closest to:
Answer:
22%
Explanation:
Margin of Safety is the amount by which sales can fall before making a loss.
Margin of Safety = Expected Sales - Break-even Sales ÷ Expected Sales
= (13,600 - 10,608) ÷ 13,600
= 0.22 or 22%
Bernie and Phil's Great American Surplus store placed an ad in the Sunday Times stating, "Next Saturday at 8:00 A.M. sharp 3 brand new mink coats worth $5,000 each will be sold for $500 each! First come, First served." Marsha LufMin was first in line when the store opened and went directly to the coat department, but the coats identified in the ad were not available for sale. She identified herself to the manager and pointed out that she was first in line in conformity with the store's advertised offer and that she was ready to pay the $500 price set forth in the store's offer. The manager responded that a newspaper ad is just an invitation to negotiate and that the store decided to withdraw "the mink coat promotion." Review the text on unilateral contracts in Section 12(b) of Chapter 12. Decide.
Answer:
Bennie and Phil broke their unilateral contract by not having the coats available for sale.
Explanation:
Unilateral contracts are defined as one in which the party making an offer are the only ones that obligation to pay for specific performance of an action from the offeree.
For example if a person offers to pay anyone to mow their lawn. Any person that agrees to the job does not have a commitment to perform it.
The only commitment is that the offeror will pay once the lawn is mowed.
In the scenario above Bernie and Phil’s Great American Surplus store placed an ad in the Sunday Timesstating, “Next Saturday at 8:00 A.M. sharp 3 brand new mink coats worth $5,000 eachwill be sold for $500 each! First come, first served.” They are the offerors
Marsha now did her part by being first in line to buy the coat.
By not having the coat available for sale Bernie and Phil have broken their unilateral contract
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:
Income from continuing operations before income taxes 7,800,000
Less Income tax expenses (7,800,000*25%) (1,950,000)
Income from continuing operations 5,850,000
Discontinued operations:
Loss from operations of discontinued component (2,800,000)
Income tax benefit 700,000
Loss on discontinued operations (2,100,000)
Net Income (loss) 3,750,000
Working
Loss from operations of discontinued component
= Gain from sale of semiconductor business - loss from operations of the segment
= (15 - 13 ) - 4.8
= -$2.8 million
Income tax benefit
= 2,800,000 * 25%
= $700,000
On January 1, 2021, Nath-Langstrom Services, Inc., a computer software training firm, leased several computers under a two-year operating lease agreement from ComputerWorld Leasing, which routinely finances equipment for other firms at an annual interest rate of 4%. The contract calls for four rent payments of $17,500 each, payable semiannually on June 30 and December 31 each year. The computers were acquired by Computer World at a cost of $105,000 and were expected to have a useful life of six years with no residual value. Both firms record amortization and depreciation semi-annually.
Required:
1. Prepare appropriate journal entries recorded by Nath-Langstrom Services for the first year of the lease.
2. Prepare appropriate journal entries recorded by ComputerWorld Leasing for the first year of the lease.
• 1 Record the beginning of the lease for Nath-Langstrom Services.
• 2 Record the lease payment and interest expense for Nath-Langstrom Services.
• 3 Record the amortization expense for Nath-Langstrom Services.
• 4 Record the lease payment and interest expense for Nath-Langstrom Services.
• 5 Record the amortization expense for Nath-Langstrom Services.
• 6 Record the lease revenue received by ComputerWorld Leasing.
• 7 Record the Depreciation expense for ComputerWorld Leasing.
• 8 Record the lease revenue received by ComputerWorld Leasing.
• 9 Record the Depreciation expense for ComputerWorld Leasing.
Answer:
Lessee journal entries:
lease expense 17,500 debit
cash 17,500 credit
--to record lease payment June 30th, 2021--
lease expense 17,500 debit
cash 17,500 credit
--to record lease payment Dec 31st, 2021--
The lessee does not depreciate the equipment as it is not part of their company.
Lessor journal entries:
cash 17,500 debit
lease revenue 17,500 credit
--to record cash collection on Nath-Langstrom June 30th--
depreciation expense 8,750 debit
acc depreciation- equip 8,750 credit
--to record depreciation on leased equipment June 30th--
cash 17,500 debit
lease revenue 17,500 credit
--to record cash collection on Nath-Langstrom Dec 31st--
depreciation expense 8,750 debit
acc depreciation- equip 8,750 credit
--to record depreciation on leased equipment Dec 31st--
Explanation:
This is an operating lease as the equipment returns to the firm at the end of the contract and it is below 75% of the useful life (2 years / 6 years = 33%)
amortization on the equipment:
(cost - salvage value ) / useful life
(105,000 - 0 ) / 6 = 17,500 per year
semiannual depreciation: 17,500 / 2 = 8,750
Indicate which of the following transactions will be included in (that is, directly increase) the GDP of the United States in 2017.
a. Athleticus, a U.S. shoe company, produces a pair of sneakers at a plant in Vietnam on March 10, 2017. Athleticus imports the pair of sneakers into the United States on May 20, 2017.
b. An accountant starts a client's 2017 tax return on April 14, 2018, finishing it just before midnight on April 15, 2018.
c. Graincorp, a U.S. agricultural company, produces corn syrup at a plant in Iowa on September 13, 2017. It sells the corn syrup to Crunchy's for use in the production of cereal that will be made in the United States in 2017. (Note: Focus exclusively on whether production of the corn syrup increases GDP directly, and ignore the effect of production of the cereal on GDP.)
d. Tasty's, a U.S. fast-food company, produces a hamburger at one of its many St. Louis locations on January 21, 2017. It sells the hamburger to a customer that same day.
e. Chocolate Express, a Swiss chocolate company, produces a chocolate bar at a plant in Illinois on December 5, 2017. An elementary school student buys the chocolate bar on December 24.
Answer:
Excluded
Excluded
Excluded
Included
Included
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
services not rendered to oneself
Activities not reported to the government
illegal activities
sale or purchase of used products
sale or purchase of intermediate products
Nominal GDP is GDP calculated using current year prices while Real GDP is GDP calculated using base year prices. Real GDP has been adjusted for inflation.
Athleticus shoes produced in Vietnam would not be included because it wasn't produced in the US
b. the work done by the accountant would not be included in 2017 GDP because it wasn't concluded in 2017 but in 2018
c. The corn syrup is an intermediate good and it would not be included in GDP
d. e. The hamburger and chocolate would be included in GDP as part of consumption spending
In both the United States and France, the demand for haircuts is given by QD=300−10P . However, in the United States, the supply is given by QS=−300+20P , while in France, the supply is given by QS=−33.33+6.67P .
Required:
a. What are the equilibrium prices and quantities of haircuts in the two countries?
b. What are the new equilibrium prices and quantities of haircuts in the two countries?
Answer:
a. P = 20 and Q = 100 in the United States; and also P = 20 and Q = 100 in France.
b. P = 23.33 and Q = 166.70 in the United States; and P = 26 and Q = 140 in France.
Explanation:
Note: The part b of the requirement is not complete. The entire question is therefore represented with the complete pat b before answering the question as follows:
In both the United States and France, the demand for haircuts is given by QD=300−10P . However, in the United States, the supply is given by QS=−300+20P , while in France, the supply is given by QS=−33.33+6.67P .
Required:
a. What are the equilibrium prices and quantities of haircuts in the two countries?
b. Suppose that the demand for haircuts in both countries increases by 100 units at each price, so that the new demand is QD = 400 - 10P. What are the new equilibrium prices and quantities of haircuts in the two countries?
The explanation to the answers is now provided as follows:
a. What are the equilibrium prices and quantities of haircuts in the two countries?
In economics, an equilibrium occurs at point where the quantities demanded is equal to the quantities supplied.
Let Q denotes equilibrium quantity and P denotes equilibrium price, the equilibrium prices and quantities of haircuts in the two countries can therefore be calculated as follows:
In the United States
QD =300 − 10P
QS= −300 + 20P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
300 - 10P = −300 + 20P
300 + 300 = 20P + 10P
600 = 30P
P = 600 / 30
P = 20
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 300 – 10(20)
Q = 300 – 200
Q = 100
Therefore, P = 20 and Q = 100 in the United States.
In France
QD = 300 − 10P
QS= −33.33 + 6.67P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
300 - 10P = −33.33 + 6.67P
300 + 33.33 = 6.67P + 10P
333.33 = 16.67P
P = 333.33 / 16.67
P = 20
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 300 – 10(20)
Q = 300 – 200
Q = 100
Therefore, P = 20 and Q = 100 also in France.
b. Suppose that the demand for haircuts in both countries increases by 100 units at each price, so that the new demand is QD = 400 - 10P. What are the new equilibrium prices and quantities of haircuts in the two countries?
In the United States
QD = 400 − 10P
QS= −300 + 20P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
400 - 10P = −300 + 20P
400 + 300 = 20P + 10P
700 = 30P
P = 700 / 30
P = 23.33
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 400 – 10(23.33)
Q = 400 – 233.30
Q = 166.70
Therefore, P = 23.33 and Q = 166.70 in the United States.
In France
QD = 400 − 10P
QS= −33.33 + 6.67P
Since at equilibrium, QD = QS, we can therefore solve for P by equating the two equations above as follows:
400 - 10P = −33.33 + 6.67P
400 + 33.33 = 6.67P + 10P
433.33 = 16.67P
P = 433.33 / 16.67
P = 25.99 = 26
To obtain equilibrium quantity, we substitute P = 20 into any QD and QS since at equilibrium QD = QS. Using QD, we have:
Q = 400 – 10(26)
Q = 400 – 260
Q = 140
Therefore, P = 26 and Q = 140 in France.
Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses the best proposal (effectively giving one side or the other $3 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $300,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win nine tenths, or 0.9, of the time. Use the given information to fit in the expected payoff, in dollars, for each cell in the matrix.
Management (M)
No Lawyer Lawyer
No Lawyer L: M: S L: S M: S
Labor (L) Lawyer L: M: S L: S M: S
The Nash equilibrium for this game is for Management to_____a lawyer, and for Labor to_____a lawyer.
Answer: hire; hire
Explanation:
The Nash equilibrium for this game is for Management to hire a lawyer, and for Labor to hire a lawyer.
At the Nash Equilibrium, there is no incentive for either player to deviate from the strategy they are pursuing as it is the best(most beneficial) one given the strategy of the other player and a situation where there is no cooperation.
If management decides not to hire a lawyer and labor does, management will lose 0.9 of the time, this applies to labor as well. Neither of them will agree to having no lawyer as there is no cooperation and if one does so, the other will seize the opportunity to hire a lawyer and make more.
Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the company's costs is as follows.
Variable manufacturing cost per unit $6
Variable selling and administrative cost per unit 2
Fixed manufacturing overhead per month $300,000
Fixed selling and administrative cost per month 600,000
Required:
a. Determine the company's monthly break-even point in units.
b. Determine the sales volume (in dollars) required for a monthly operating income of $1,200,000.
c. Compute the company’s margin of safety if its current monthly sales level is $2,500,000.
d. Estimate the amount by which monthly operating income will increase if the company anticipates a $100,000 increase in monthly sales volume.
Answer:
a. 75,000 units
b. $1,700,000
c. 0.40 or 40 %
d. $60,000
Explanation:
Break-even point is the level of activity where a firm neither makes a profit nor a loss.
Break-even point (units) = Fixed Costs ÷ Contribution per unit
Where,
Contribution per unit = Unit Selling Price less Variable Costs per unit
= $20 - $6 - $2
= $12.00
Therefore,
Break-even point (units) = ($300,000 + $600,000) ÷ $12.00
= 75,000 units
Sales (dollars) to reach target profit = (Fixed Costs + Target Profit) ÷ Contribution Margin Ratio
Where,
Contribution Margin Ratio = Contribution ÷ Sales
= $12.00 ÷ $20.00
= 0.60
Therefore,
Sales (dollars) to reach target profit = ($300,000 + $600,000 + 1,200,000) ÷ 0.60
= $1,700,000
Margin of Safety = (Sales level - Break-even Sales level) ÷ Sales level
= ($2,500,000 - $1,500,000) ÷ $2,500,000
= 0.40 or 40 %
Calculation of Incremental Monthly Operating Income
Incremental Sales $100,000
Less Incremental Variable Costs (5,000 × $8) ($40.000)
Incremental Contribution $60,000
Less Incremental Fixed Costs $0
Incremental Operating Income $60,000