Answer:
Kindly check explanation
Explanation:
Given the following :
Price per pound = $1.55
Raw material required = 0.75 pound
Transport cost by sea = $0.70
Monthly demand for each of the three colors = 3487
EOQ = √2DS / H
D = 3 * 12 * 3487 * 0. 75 = 94149
Total cost of purchase = 1.55 + 0.70 = 2.25
Setup cost (S) = $186
Holding cost = 32% * 2.25 = 0.72
EOQ = √(2*94149*186) / 0.72
= 6974.50
b. How frequently should the company order cotton?
Annual demand / EOQ
94149 / 6974.50
= 13.50 ;
12 months / 13.50 = 0.89 month
c. Assuming that the first order is needed on 1-Jul, when should SYM place the order?
Since lead time is 2 weeks, order should be made 2 weeks before : 17th June
d. How many orders will SYM place during the next year? (Round your answer to 2 decimal places.)
Annual demand / EOQ
94149 / 6974.50
= 13.50 times
e. What is the resulting annual holding cost? (Round your answer to the nearest whole number.)
Holding cost * EOQ /2
0.75 * (6974.50/2) = 2615.44
f. What is the resulting annual ordering cost?
Annual ordering cost $
Ordering cost * number of orders
$186 * 13.50 = $2,511
Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the quantity produced is 5 bars and the price is $6. Using year 1 as the base year, compute nominal GDP, real GDP, and the GDP deflator for each year.
Answer:
The answer is below
Explanation:
The nominal GDP is the market value of goods within a country adjusted for price change.
Nominal GDP for year 1 = Total market value of goods at current price = 3 bars × $4 = $12
Nominal GDP for year 2 = Total market value of goods at current price = 4 bars × $5 = $20
Nominal GDP for year 3 = Total market value of goods at current price = 5 bars × $6 = $30
The real GDP is the market value of goods within a country at current price.
Real GDP for year 1 = Total market value of goods at base year price = 3 bars × $4 = $12
Real GDP for year 2 = Total market value of goods at base year price = 4 bars × $4 = $16
Real GDP for year 3 = Total market value of goods at base year price = 5 bars × $4 = $20
GDP deflator is the ratio of nominal GDP to real GDP multiplied by 100.
GDP deflator in year 1 = (Nominal GDP in year 1 / Real GDP in year 1) × 100 = ($12/$12) × 100 = 100
GDP deflator in year 2 = (Nominal GDP in year 2 / Real GDP in year 2) × 100 = ($20/$16) × 125 = 100
GDP deflator in year 3 = (Nominal GDP in year 3 / Real GDP in year 3) × 100 = ($30/$20) × 100 = 150
it is a type of text which is usually non-fiction
Answer:
Major types
Common literacy examples of non fiction include expository, argumentative, functional, and opinion pieces;
essays on art or literature biographies memoirs journalism historical scientific technical economic writingBird Corp.'s trademark was licensed to Brian Co. for royalties of 15% of the sales of the trademarked items. Royalties are payable semiannually on March 15 for sales in July through December of the prior year, and on September 15 for sales in January through June of the same year. Bird received the following royalties from Brian:
March 15 September 15
20X4 $5,000 $7,500
20X5 6,000 8,500
Brian estimated that the sales of the trademarked items would total $30,000 for July through December 20X5. In Bird's 20X5 Income Statement, the royalty revenue should be:______.
a. $13,000.
b. $14,500.
c. $19,000.
d. $20,500.
Answer:
a. $13,000
Explanation:
Calculation for what royalty revenue should be
First step is to find the estimated amount for the second half of the year
Royalties for the second half =
15%*$30,000
Royalties for the second half= $4,500
Now let Compute for the total royalty revenue
Total royalty revenue for 20X5=$8,500+$4,500
Total royalty revenue for 20X5=$13,000
Therefore the royalty revenue should be $13,000
When a company is in financial difficulty and cannot fully pay all of its creditors, the first lenders to be paid are the ________. A) stockholders
Answer:
Senior debtholder
Explanation:
In a case when the company is not able to pay the pull amount to its creditors so the first lender is senior debt holder as it became the priority to the company i.e. first the amount is paid to them and the amount i.e. remaining would be paid to others as the senior debtholders are secured as if we compared with the other type of debtholders in terms of collateralized of assets
1. Stockholders invest $90,000 cash to start the business.
2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.
3. Purchased $5,500 paper supplies on credit.
4. Cash received for photocopy services amounted to $8,400.
5. Paid $500 cash for radio advertising.
6. Paid $800 on account for paper supplies purchased in transaction 3.
7. Dividends of $1,600 were paid to stockholders.
8. Paid $1,200 cash for rent for the current month.
9. Received $2,200 cash advance from a customer for future copying.
10. Billed a customer for $500 for photocopy services completed.
No. Account Titles and Descriptions Debit Credit
1.
2.
3.
4.
5.
Answer:
1. Stockholders invest $90,000 cash to start the business.
Dr Cash 90,000
Cr Common stock 90,000
2. Purchased three digital copy machines for $400,000, paying $118,000 cash and signing a 5-year, 6% note for the remainder.
Dr Copy machines 400,000
Cr Cash 118,000*
Cr Notes payable 282,000
*Where did they get the extra cash from?
3. Purchased $5,500 paper supplies on credit.
Dr Supplies 5,500
Cr Accounts payable 5,500
4. Cash received for photocopy services amounted to $8,400.
Dr Cash 8,400
Cr Service revenue 8,400
5. Paid $500 cash for radio advertising.
Dr Advertising expense 500
Cr Cash 500
6. Paid $800 on account for paper supplies purchased in transaction 3.
Dr Accounts payable 800
Cr Cash 800
7. Dividends of $1,600 were paid to stockholders.
Dr Dividends 1,600
Cr Cash 1,600
8. Paid $1,200 cash for rent for the current month.
Dr Rent expense 1,200
Cr Cash 1,200
9. Received $2,200 cash advance from a customer for future copying.
Dr Cash 2,200
Cr Unearned service revenue 2,200
10. Billed a customer for $500 for photocopy services completed.
Dr Accounts receivable 500
Cr Service revenue 500
Character is one factor used in determining credit worthiness
-true
-false
During 2020, PC Software Inc. developed a new personal computer database management software package. Total expenditures on the project were $3,000,000, of which 40% occurred after the technological feasibility of the product had been established. The product was completed and offered for sale on January 1, 2021. During 2021, revenues from sales of the product totaled $4,800,000. The package is expected to be successfully marketable for five years, and the total revenues over the life of the product are estimated to be $20,000,000.
Required
A. Prepare the journal entry to account for the development of this product in 2020.
B. Prepare the journal entry to record the amortization of capitalized computer software development costs in 2021.
C. What disclosures are required in the December 31, 2021, financial statements regarding computer software costs?
At December 31, 2021, the unamortized software intangible asset totals ______. This is equal to _____ originally capitalized less amortization in 2021 of _______. The amount charged to expense as amortization of software intangible asset in 2021 was ______. The estimated net realizable value of computer software is greater than the remaining unamortized software intangible asset.
Answer:
Answer:
PC Software Inc.
A. Journal Entry to account for the development of software in 2020:
Debit Software $1,200,000
Debit Development Expenses $1,800,000
Credit Cash Account $3,000
To capitalize 40% software development costs.
B. Journal Entry to amortize Capitalize Computer Software Development in 2021:
Debit Amortization Expense $240,000
Credit Accumulated Amortization - Software $240,000
To record the amortization of the capitalized software.
C. At December 31, 2021, the unamortized software intangible asset totals _$960,000_____. This is equal to _$1,200,000____ originally capitalized less amortization in 2021 of _ $240,000______. The amount charged to expense as amortization of software intangible asset in 2021 was _$240,000_____. The estimated net realizable value of computer software is greater than the remaining unamortized software intangible asset.
Explanation:
The choice is for PC Software Inc. to follow the US GAAP rule, which states that development costs incurred for an internally-generated software should be capitalized only when the software is commercially feasible. Based on this, only 40% of the software expenditures are capitalized.
A firm that has extra cash Multiple Choice Should always invest it in U.S. equities. should invest it in the safest projects available. should always reinvest it in new equipment. should pay it out to shareholders unless the firm can earn a higher rate of return on the cash than the shareholders can earn by investing in the capital market.
Answer:
should pay it out to shareholders unless the firm can earn a higher rate of return on the cash than the shareholders can earn by investing in the capital market.
Explanation:
Which of the following is the best example of an ethical statement?
On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. 6 Purchased with cash 80 calculators at $20 each from Guthrie Co.
Sept. 9 Paid freight of $80 on calculators purchased from Guthrie Co.
Sept. 10 Returned 3 calculators to Guthrie Co. for $63 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each on account to Lee Book Store, terms n/30.
Sept. 14 Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 30 calculators costing $21 for $32 each on account to Orr's Card Shop, terms n/30.
Journalize the September transactions.
Answer and Explanation:
The journal entries are shown below:
Inventory $1,600 (80 × $20)
To Accounts Payable $1,600
(Being inventory purchased on account)
Inventory $80
To Cash $80
(Being the freight charges is paid)
Accounts Payable $63
To Inventory $63
(being returned inventory is recorded
Accounts Receivable $806 (26 × $31)
To Sales Revenue $806
(Being sale of calculators on account is recorded)
Cost of Goods Sold $546 (26 × $21)
To Inventory $546
(being cost of calculators sold is recorded)
Sales Returns and Allowances $31
To Accounts Receivable $31
(Being return of calculator that is recorded)
Inventory $31
Cost of Goods Sold $31
(Being cost of calculators returned is recorded)
Accounts Receivable $960 (30 × $32)
To Sales Revenue $960
(Being sale of calculators on account is recorded)
Cost of Goods Sold $630 (30 × $21 )
To Inventory $630
(Being cost of calculators sold is recorded)
Robin, who is a head of household and age 42, provides you with the following information from his financial records for 2019. Robin itemizes deductions. Regular income tax liability $142,125 PositiveAMT adjustments 30,000 AMT preferences 100,000 Taxable income 481,000 Calculate Robin's AMT for 2019. a.$12,636. b.$3,757. c.$12,032. d.$15,126.
Answer:
$15,158.
Explanation:
We can calculate the Robin's AMT for 2019 by first deducting the AMT exemption for 2019 and then multiplying it by the rate of 26% FOR 2019.
DATA
AMT preferences 100,000
PositiveAMT adjustments 30,000
Total AMT = $100,000 + $30,000 = $130,000
Solution
Exemption for 2019 = $71,700.
Robin's AMT for 2019 = ($130,000 - $71,700) × 26%
Robin's AMT for 2019 = $15,158.
The following events pertain to James Cleaning Company:
1. Acquired $15,000 cash from the issue of common stock.
2. Provided services for $6,000 cash.
3. Provided $18,000 of services on account.
4. Collected $11,000 cash from the account receivable created in Event 3.
5. Paid $1,400 cash to purchase supplies.
6. Had $100 of supplies on hand at the end of the accounting period.
7. Received $3,600 cash in advance for services to be performed in the future.
8. Performed one-half of the services agreed to in Event 7.
9. Paid $6,500 for salaries expense.
10. Incurred $2,800 of other operating expenses on account.
11. Paid $2,100 cash on the account payable created in Event 10.
12. Paid a $1,000 cash dividend to the stockholders.
Required:Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flows column, use the letters OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change in cash and NA to indicate accounts not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign
Answer:
I used an excel since there is not enough room here.
Explanation:
Discuss the types of financial statements and their purpose.
Answer:
They are: (1) balance sheets; (2) income statements; (3) cash flow statements; and (4) statements of shareholders' equity. Balance sheets show what a company owns and what it owes at a fixed point in time. Income statements show how much money a company made and spent over a period of time.
Explanation:
Jim wants to start his own business and needs $10,000 for working capital. He applies for a business loan at FirstBank. The banker tells Jim that the Bank will make the loan if Jim's father will personally guarantee repayment of the loan. Jim assures the banker that his father will do this. The banker calls Jim's father to confirm that he will guarantee Jim's $10,000 loan. Jim's father says: "Sure thing, I'd do anything for that boy." The bank makes the loan to Jim. Jim's new business is not successful and Jim is unable to repay the loan. Jim has no money. Jim's father has buckets of money. The bank sues Jim's father to recover the unpaid amount of the loan plus interest plus attorneys' fees and costs of collecting the debt.
Which of the following is true?
A. Jim's father can make a strong argument that he is not liable to pay his son's debt because the Bank did not have him sign a written guaranty agreement.
B.The oral agreement to guaranty the loan is not enforceable because it is contrary to public policy.
C.Jim’s father is liable to pay his son’s debt because the Bank partially performed under the loan agreement.
D.If it can be proven in a court of law that Jim's father orally agreed to guarantee the loan, Jim's father will be held liable for the repayment of the loanbecause 'a deal is a deal'.
Answer:
A.
Explanation:
From the different options provided, in this scenario the one that is true is that Jim's father can make a strong argument that he is not liable to pay his son's debt because the Bank did not have him sign a written guaranty agreement. In order for the bank to properly hold Jim and his father to the agreement they needed to create a contract and have Jim's father sign and agree to the contract in person. Since the bank failed to do so, then Jim's father can fight the lawsuit. Agreement over the phone is not proper procedure and would not hold up in court due to the bank not being able to properly verify who the individual on the other side of the phone call truly was or if he was really Jim's Father.
5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.)
Complete Question:
The Company has the following transactions related to its top-selling Mongoose mountain bike for the month of March. The Company uses a periodic inventory system.
Date Transactions Units Unit Cost Total Cost
March 1 Beginning inventory 20 $230 $4,600
March 5 Sale ($360 each) 15
March 9 Purchase 10 250 2,500
March 17 Sale ($410 each) 8
March 22 Purchase 10 260 2,600
March 27 Sale ($435 each) 12
March 30 Purchase 8 280 2,240
For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.
Required:
a. Calculate ending inventory and cost of goods sold at March 31, 2015, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes
from beginning inventory and eight bikes from the March 22 purchase.
b. Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
c. Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
d. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)
e. Calculate sales revenue and gross profit under each of the four methods.
Answer:
The Company
Ending Inventory:
a. Specific Identification:
Beginning inventory 1 * $230 = $230
March 9 purchase 2 * $250 = 500
March 22 purchase 2 * $260 = 520
March 30 Purchase 8 * $280 =2,240
Total value of inventory 13 units = $3,490
Cost of goods sold = Cost of goods available for sale Minus Ending Inventory
= $11,940 - $3,490
= $8,450
b. FIFO:
March 22 Purchase 5 260 1,300
March 30 Purchase 8 280 2,240
Ending Inventory 13 $3,540
Cost of goods sold = Goods available for sale Minus Ending Inventory
= $11,940 - $3,540
= $8,400
c. LIFO:
Ending Inventory:
March 1 Inventory 13 $230 $2,990
Cost of goods sold = Goods available for sale Minus Ending Inventory
= $11,940 - $2,990
= $8,950
d) Weighted -Average Cost:
Ending Inventory = $248.75 * 13 = $3,233.75
Cost of Goods Sold = $248.75 * 35 = $8,706.25
Specific FIFO LIFO Weighted
Identification Average
Sales $13,900 $13,900 $13,900 $13,900.00
Cost of goods sold 8,450 8,400 8,950 $8,706.25
Gross profit $5,450 $5,500 $4,950 $5,193.75
Explanation:
Dat and Calculations:
Shop uses periodic inventory system
Date Transactions Units Unit Cost Total Cost Total
March 1 Beginning inventory 20 $230 $4,600 Sales
March 5 Sale ($360 each) 15 $360 $5,400
March 9 Purchase 10 250 2,500
March 17 Sale ($410 each) 8 $410 $3,280
March 22 Purchase 10 260 2,600
March 27 Sale ($435 each) 12 $435 $5,220
March 30 Purchase 8 280 2,240
Total Goods available for sale 48 35 $11,940 $13,900
Ending Inventory = 13 (48 - 35)
Weighted average cost = Cost of goods available for sale/Units of Goods available for sale
= $11,940/48 = $248.75
Specific Identification:
March 5 sale 15 consists of bikes from 15 beginning inventory Bal 5 - 4 = 1
March 17 sale 8 consists of bikes from the March 9 purchase Bal = 2
March 27 sale 12 consists of four bikes from beginning inventory and eight bikes from the March 22 purchase Bal = 2
Ending Inventory:
Specific Identification:
Beginning inventory 1 * $230 = $230
March 9 purchase 2 * $250 = 500
March 22 purchase 2 * $260 = 520
March 30 Purchase 8 * $280 =2,240
Total value of inventory 13 units = $3,490
FIFO:
March 22 Purchase 5 260 1,300
March 30 Purchase 8 280 2,240
Ending Inventory 13 $3,540
LIFO:
March 1 Beginning inventory 13 $230 $2,990
Weighted-Average Costs:
Ending Inventory = $248.75 * 13 = $3,233.75
Cost of Goods Sold = $248.75 * 35 = $8,706.25
On January 1, 2018, the chief operating officer of New Belgium, Jeff Stambaugh, signed a noncancellable lease for street equipment. The lease was for 10 years. The present value of payments expected to be made during the lease is $75,152. The township’s incremental borrowing rate is 7 percent. The $10,000 annual lease payment is due on the first day of each year beginning in 2018.
Required:
Prepare all journal entries necessary to record the lease transaction for 2018 and the payment made in 2019.
Answer:
Account Titles and Explanation Debit$ Credit$
2018
Expenditure-Capital outlays $75,152
Other financing source-Capital leases $75,152
(To record expenditure-capital outlay)
Expenditure-capital lease principal $10,000
Voucher payable $10,000
(To record expenditure capital lease principal)
Voucher Payable $10,000
Cash $10,000
(To record payment of expenditure)
2019
Expenditure-capital lease principal $5,440
Expenditure-interest on capital lease $4,560
Voucher payable $10,000
(To record expenditure capital lease principal)
Voucher payable $10,000
Cash $10,000
(To record payment of expenditure)
You have a tax basis of ​$ and a useful life of five years and no salvage value. Provide a depreciation schedule ​(dk for k1​5) for ​% declining balance with switchover to straight line. Specify the year to switchover. Determine the depreciation amounts using the ​% declining balance and​ straight-line methods and BV amounts for each year
Answer:
the numbers are missing, so I will use another question as an example:
the asset's cost is $100,000useful life is 5 yearsno salvage value150% declining balancestraight line depreciation = $100,000 / 5 = $20,000
150% declining balance depreciation year 1 = 1.5 x $100,000 x 1/5 = $30,000, since it is higher than straight line we will use declining balance
book value at end of year 1 = $100,000 - $30,000 = $70,000
straight line deprecation = $70,000 / 4 = $17,500
150% declining balance depreciation year 2 = 1.5 x $70,000 x 1/5 = $28,000, since it is higher than straight line we will use declining balance
book value at end of year 2 = $70,000 - $28,000 = $42,000
straight line depreciation = $42,000 / 3 = $14,000, since it is higher than declining balance we will use straight line ⇒ switchover year
150% declining balance depreciation year 3 = 1.5 x $42,000 x 1/5 = $12,600
book value at end of year 3 = $42,000 - $14,000 = $28,000
depreciation year 4 = $14,000 (straight line)
book value at end of year 4 = $28,000 - $14,000 = $14,000
depreciation year 5 = $14,000 (straight line)
book value at end of year 5 = $14,000 - $14,000 = $0
Assume that your father is now 50 years old, plans to retire in 10 years, and expects to live for 25 years after he retires - that is, until age 85. He wants his first retirement payment to have the same purchasing power at the time he retires as $55,000 has today. He wants all his subsequent retirement payments to be equal to his first retirement payment. (Do not let the retirement payments grow with inflation: Your father realizes that if inflation occurs the real value of his retirement income will decline year by year after he retires). His retirement income will begin the day he retires, 10 years from today, and he will then receive 24 additional annual payments. Inflation is expected to be 3% per year from today forward. He currently has $100,000 saved and expects to earn a return on his savings of 4% per year with annual compounding.
Required:
To the nearest dollar, how much must he save during each of the next 10 years (with equal deposits being made at the end of each year, beginning a year from today) to meet his retirement goal? (Note: Neither the amount he saves nor the amount he withdraws upon retirement is a growing annuity.) Do not round intermediate steps.
Answer:
$87,696
Explanation:
your father wants to get the same distribution during the whole 25 years that he is retired, but we must first determine the initial adjusted to inflation. The $55,000 that he currently earns will be equivalent to $55,000 x (1 + 3%)¹⁰ = $73,915.40 in 10 years.
Since your father wants to start collecting the distributions immediately after he retires, this is an annuity due. Using the present value of an annuity due formula, we can determine the money that he will need to have in 10 years.
PV = annual distribution x annuity factor
annual distribution = $73,915.40PV annuity due factor, 25 periods, 4% = 16.24696PV = $73,915.40 x 16.24696 = $1,200,900.55
That PV now becomes our future value that must be saved.
Since your father already has $100,000 in his account, that will turn into $100,000 x (1 + 4%)¹⁰ = $148,024.43
This means that he is $1,200,900.55 - $148,024.43 = $1,052,876.12 short.
Using the future value of an ordinary annuity formula, we can determine his annual contribution:
annual contribution = FV / annuity factor
FV = $1,052,876.12
FV annuity factor, 4%, 10 periods = 12.006
annual contribution = $1,052,876.12 / 12.006 = $87,695.83 ≈ $87,696
The following costs and inventory data were taken from the accounts of Simon Company for 2010:
January 1, 2011 December 31, 2011
Inventories:
Raw materials $ 8,000 $ 7,000
Work in process 15,000 13,000
Finished goods 16,000 12,000
Costs incurred at the end of December 31, 2011:-
Raw materials purchases $83,000
Direct labor 42,000
Factory rent 8,000
Factory utilities 10,000
Indirect materials 4,000
Indirect labor 6,000
Operating expenses 17,000
Instructions
a. Prepare a schedule showing the amount of direct materials used in production during the year.
b. Compute the amount of manufacturing overhead incurred during the year.
c. Prepare a schedule of Cost of Goods Manufactured for Simon Company for the year ended December 31, 2011 in good form.
d. Prepare the Cost of Goods Sold section of the Income Statement for Simon Company for the year ended December 31, 2011 in good form.
Answer:
Part a
Direct Materials Schedule
Beginning Materials $ 8,000
Add Purchases $83,000
Less Ending Materials ($ 7,000)
Less Indirect materials ($4,000)
Direct Materials Used in Production $80,000
Part b
Overheads Incurred during the year
$
Factory rent 8,000
Factory utilities 10,000
Indirect materials 4,000
Indirect labor 6,000
Total Overheads $28,000
Part c
Cost of Goods Manufactured Schedule
Direct Materials $80,000
Direct labor $42,000
Overheads $28,000
Add Opening Work In Process $15,000
Less Closing Work In Process ($13,000)
Cost of Goods Manufactured $152,000
Part d
Cost of Goods Sold
Beginning Finished goods Inventory $16,000
Add Cost of Goods Manufactured $152,000
Less Ending Finished Goods Inventory ($12,000)
Cost of Goods Sold $156,000
Explanation:
The following steps must be done to reach the cost of goods sold :
Use the Manufacturing Cost Schedule to calculate the Cost of Goods ManufacturedUse the Finished Goods Inventory Account to calculate the Cost of Goods Sold.See the calculations and schedules prepared above.
Following is a complete list of accounts and account balances that appear in the general ledger as of August 1, 2020 for Flourish and Botts, Co. bookstore. Assume all accounts have their normal debit or credit balance.
Account: Amount: Account: Amount:
Cash $9,021 Common Stock $84
Accounts Receivable (A/R) $13,992 Additional Paid-In Capital $6,408
Inventory $4,033 Retained Earnings $7,220
Prepaid Rent $200 Sales Revenue $0
Equipment $7,200 Cost of Goods Sold $0
Accumulated Depreciation-Equipment $800 Wages Expense $0
Accounts Payable (A/P) $11,844 Interest Expense $0
Deferred Revenue $3,055 Depreciation Expense $0
Interest Payable $35 Rent Expense $0
Notes Payable $5,000
The following transactions were observed for August 2020:
Date: Transaction:
8/3 Purchased merchandise inventory on account for $11,941
8/6 Sold merchandise inventory, which originally cost $13,088, to customers for $20,972. Customers paid $2,400 in cash, the remaining $18,572 was purchased by customers on account.
8/16 Paid $2,750 in cash to workers for work done in August.
8/20 Received $17,046 in cash payments from customers on their accounts receivable.
8/27 Paid creditors $14,635 in cash for accounts payable.
Required:
Record all of the above transactions that occurred during the period using journal entries. Make sure to use proper formatting for all entries, and to include the date of each entry and a brief description of each entry. Do not make any end of the period adjusting or closing entries.
Answer:
Date Particular Debit Credit
8/3 Purchases 11,941
Account payable 11,941
8/6 Cost of good sold 13,088
Inventory 13,088
8/6 Account Receivable 18,572
Cash 2,400
Revenue 20,972
8/16 Wages expense 2,750
Cash 2,750
8/20 Cash 17,046
Account Receivable 17,046
8/27 Account payable 14,635
Cash 14,635
In 2021, Ryan Management collected rent revenue for 2022 tenant occupancy. For financial reporting, the rent is recorded as deferred revenue and then recognized as revenue in the period tenants occupy rental property. For tax reporting, the rent is taxed when collected in 2021. The deferred portion of the rent collected in 2021 was $194.0 million. No temporary differences existed at the beginning of the year, and the tax rate is 25%. Suppose the deferred portion of the rent collected was $76 million at the end of 2022. Taxable income is $760 million. Prepare the appropriate journal entry to record income taxes Iin 2022.
Transaction General Journal Debit Credit
Income tax expense
Deferred tax asset
Income taxes payable 340.0
Answer:
Ryan Management
Journal Entries
Date Particulars Debit'million Credit'million
31-Dec-22 Income tax expense $219.50
To Income tax payable $190
($760 * 25%)
To Deferred tax asset $29.50
[($194 - $76)*25%]
(To record income tax expense and reversal of Deferred
tax asset)
Gary mails an offer to Brian on June 15. Brian receives the offer on June 16. Gary mails a revocation of the offer on June 17. Brian mails a letter of acceptance on June 18 and Gary receives the acceptance on June 20. Brian receives the revocation on June 19. Was a contract formed?
Answer:
Yes. Contract formed on June 18.
Explanation:
A contract is an agreement between two interest parties that has rights and obligations attached to them.
The fact that Brian mails a letter of acceptance on June 18 entails that an agreement has been reached.
Thus the date of the Contract is June 18.
What part of your social media strategy is working against your goals?
Razor Inc. manufactures industrial components. One of its products used as a subcomponent in auto manufacturing is Fluoro2211. The selling price and cost per unit data for 9,130 units of Fluoro2211 are as follows.
Per Unit Data
Selling Price $410
Direct Materials 150
Direct Labor 28
Variable Manufacturing Overhead 25
Fixed Manufacturing Overhead 43
Variable Selling 16
Fixed Selling and Administrative 23
Total Costs 285
Operating Margin $125
During the next year, sales of Fluoro2211 are expected to be 10,130 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and direct materials, which will increase by 10%. The selling price per unit for next year will be $420. Based on these data, Razor Inc.'s total contribution margin for next year will be: __________
Answer:
Total contribution margin= $1,884,180
Explanation:
Giving the following information:
Direct Materials 150
Direct Labor 28
Variable Manufacturing Overhead 25
Variable Selling 16
Sales in units= 10,130
Selling price= $420
Direct material cost= 150*1.1= $165
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= selling price - total unitary variable cost
Unitary contribution margin= 420 - (28 + 25 + 16 + 165)
Unitary contribution margin= $186
Now, the total contribution margin:
Total contribution margin= 10,130*186
Total contribution margin= $1,884,180
Who was the first missionary to arrive in Africa?
Answer:
David Livingstone in 1840.
Hope this helps ; ) Enjoy your day!
I WILL GIVE BRAINLIEST
Operations managers typically make more money than operators.
O True
O False
Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is reliable and maintains a constant lead time of 7 days. The cost of placing an order is $17 and the cost of holding inventory is $0.40 per unit per year. There are no stock-out costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over 358 days of the year.
Your goal here is to find the order quantity and reorder point to satisfy a 73 percent probability of not stocking out during the lead time.
a. To manage inventory, the company is using
Continuous review system
Periodic review system
b. Find the order quantity. (Round your answer to the nearest whole number.)
Order quantity books
c. Find the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Reorder point
Answer:
A. Continuous review system
B. Order quantity = 2,049 Books
C. Reorder point=987
Explanation:
a. In order To manage inventory, the company is using what is called Continuous review system
b. Calculation to find the order quality
Using this formula
Order quantity = √((2DS)/H)
Let plug in the morning
Order quantity=√ ((2 x 49,404 x 17)/0.40)
Order quantity = 2,049 Books
(138*358=49,404)
C. Calculation for reorder point
First step is to find the σL
73 % S.L. - z = 0.613
Using this formula to find the σL
σL = (Lσ^2)
Let plug in the formula
σL=√(7(13)^2)
σL= 34.39
Second step is to find the Reorder point using this formula
R = d bar(L) + zσL
Let plug in the formula
Reorder point = (138)(7) + 0.613(34.39)
Reorder point = 966+21
Reorder point=987
definition of observant in entrepreneur characteristics
Answer:
In Entrepreneur characteristics, observant refers to the ability to quickly notice a certain pattern or unusual situation.
This skill is important because of these two following reasons:
- It helped the entrepreneur notice an existing trend. This trend could represent the things that are currently favored by the consumers in a certain market. Understanding trend will help you creating a product that can fit into that trend.
- It also help the entrepreneur notice the problems that occur internally. For example, being observant will help the entrepreneur notice the negative emotion that the employees experience when facing a certain problem. After noticing this, the entrepreneur could develop some sort of strategy to lift their spirit.
Brazil has a population of about 210 million, with about 150 million over the age of 15. Of these, an estimated 25 percent, or 37.5 million people, are functionally illiterate. The typical literate individual reads only about two nonacademic books per year, which is less than half the number read by the typical literate U.S. or European resident. Answer the following questions solely from the perspective of new growth theory:
Which of the following best explains the implications of Brazil's literacy and reading rates for its growth prospects in light of the key tenets of new growth theory.
A. Since economic growth is driven by international trade in technology and capital, if Brazil opens its borders, its literacy and reading rates will improve as the country experiences economic growth.
B. Since the development of human capital is an important determinant of economic growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
C. Since it has been demonstrated that technological advancement and not human capital is the key determinant of economic growth, Brazil's literacy and reading rates should not affect its potential economic growth rate.
D. Since technologically advanced physical capital is necessary for economic growth, Brazil's literacy and reading rates suggests its economic growth rate will be lower because there are not enough skilled workers to operate sophisticated machinery.
Answer:
B. Since the development of human capital is an important determinant of economic growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
Explanation:
According to the New Growth Theory, it is both human desire and capital the factors that drive economic growth the most.
A literate population that does not read a lot means a lower level of human capital for Brazil, which in turn means that Brazil has a lower potential for economic growth. In order to increase economic growth, the Brazilian government should promote readership among its population.
Real options Projects are also often embedded with different options that can help making decisions under uncertainty. There are techniques used to evaluate these embedded options which are called real options. The models used to value these options are based on the type of the real option available for the project.
A real option embedded in a capital project gives the investing firm the right but not the obligation to buy, sell, or transform an asset at a set price during a specified period of time.
a. True
b. False
The managers of Atlanta Aeronautics Co. have included a shutdown option into the design of a proposed capital investment project:
I. This option provides a firm with the flexibility to make potentially profitable investments in the future that would not have been possible if the initial project had not been undertaken
II. This option allows a firm to temporarily terminate operations in order to prevent experiencing negative cash flows.
III. This option allows a project to be expanded if demand turns out to be greater than expected.
IV. This option allows the outputs of the production process to be altered if market conditions change during a project's life. Which of the listed statements best describes a shutdown option?
Statement II
Statement I
Statement III
Statement IV
None of the statements listed above describes a shutdown option.
Real option analysis adds value to a project when it is used for which of the following?
a. Modifying the way that decision makers perceive flexibility in capital budgeting activities
b. Expanding the way that managers view risk and uncertainty, seeing them as phenomena to be appreciated and exploited rather than feared and avoided.
c. Making managerial decision making less deliberate and analytical
d. Making managers aware of the consequences of their decisions and actions on the creation or destruction of value for a capital project.
Answer:
i) TRUE
ii) II
iii) All except option 3
Explanation:
i) A real option embedded in a capital project gives the investing firm the right but not the obligation to buy, sell, or transform an asset at a set price during a specified period of time. TRUE
ii) The statement that best describes a shutdown is : This option allows a firm to temporarily terminate operations in order to prevent experiencing negative cash flows
iii) . Modifying the way that decision makers perceive flexibility in capital budgeting activities ;
Expanding the way that managers view risk and uncertainty, seeing them as phenomena to be appreciated and exploited rather than feared and avoided.
Making managers aware of the consequences of their decisions and actions on the creation or destruction of value for a capital project.