Answer:
Jordan Enterprises
1) The impairment loss = $110,000.
2) Journal Entry to record the impairment loss:
Debit Broadcast License Impairment Loss $110,000
Credit Accumulated Impairment Loss $110,000
Explanation:
a) Data and Calculations:
Broadcast license original cost (book value) = $786,000
Market value of similar broadcast license = 676,000
Impairment loss = $110,000
b) US GAAP defines impairment loss as the decrease in an asset's net carrying value. This means that impairment loss arises when the book or net carrying value is greater than the future estimated cash flows or the market value of the asset.
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials $180,000 Direct labor 240,000 Variable factory overhead 280,000 Operating expenses: Variable operating expenses $130,000 Fixed operating expenses 50,000 180,000 If 1,600 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is a.$66,400 b.$64,000 c.$78,400 d.$56,000
Answer:
d.$56,000
Explanation:
The computation of the amount of inventory that would be reported on the variable costing balance sheet is shown below:
But before that following calculations need to be done
The total production cost
= Direct material + direct labor + variable factory overhead
= $180,000 + $240,000 + $280,000
= $700,000
Now the production cost per unit is
= $700,000 ÷ 20,000 units
= $35 per unit
Now the amount of inventory is
= 1,600 units × $35 per unit
= $56,000
A firm is about to begin pilot plant operation on a process it has developed. One item of optional equipment that could be obtained is a heat exchanger unit. The company finds that a unit now available for $30,000 could be used in other company operations. It is estimated that the heat exchanger unit will be worth $35,000 at the end of 8 years. This seemingly high salvage value is due primarily to the fact that the $30,000 purchase price is really a rare bargain. If the firm believes 15% is an appropriate rate of return, what annual benefit is needed to justify the purchase of the heat exchanger unit
Answer:
$4,135.75
Explanation:
Let x be the annual benefit.
Year Cash flow D.F. at 15% Cumulative
0 -30000
1 X 0.869565217 0.869565217
2 X 0.756143667 1.625708885
3 X 0.657516232 2.283225117
4 X 0.571753246 2.854978363
5 X 0.497176735 3.352155098
6 X 0.432327596 3.784482694
7 X 0.37593704 4.160419734
8 X 0.326901774 4.487321508
8 35000 0.326901774
Present value of outflow = Present value of Inflow
By equating we get, 30000 = (35000 * 0.326902) + 4.487322x
30000 = 11441.57 + 4.487322x
4.487322x = 30000 - 11441.57
4.487322x = 18558.43
x = 18558.43/4.487322
x = 4135.747334378946
x = 4135.75
So, annual benefit is $4,135.75
In 2019, Vaughn sold 3000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $550000. The same selling price is expected for 2020. Vaughn is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Vaughn’s break-even point in units for 2020? 2200. 3300. 2750. 2640.
Answer:
Break even point in units - 2020 = 2200 units
Explanation:
The break even point in units is the number of units at which the total revenue equals the total cost. We can calculate the break even point in units using the following formula,
Break even in units = Fixed Cost / Contribution margin per unit
Where,
Contribution margin per unit = Selling price per unit - Variable cost per unit
We first need to calculate the new fixed costs and variable cost per unit for 2020.
New fixed cost = 550000 * (1 + 20%)
New fixed cost = $660000
New Variable cost per unit = 250 * (1 - 20%)
New Variable cost per unit = $200 per unit
Break even point in units - 2020 = 660000 / (500 - 200)
Break even point in units - 2020 = 2200 units
Frances Newberry is the payroll accountant for Pack-It Services of Jackson, Arizona. The employees of Pack-It Services are paid semimonthly. An employee, Glen Riley, comes to her on November 6 and requests a pay advance of $1,050, which he will pay back in equal parts on the November 15 and December 15 paychecks. Glen is married with eight withholding allowances and is paid $52,880 per year. He contributes 3 percent of his pay to a 401(k) and has $25 per paycheck deducted for a Section 125 plan. Required: Compute his net pay on his November 15 paycheck. The applicable state income tax rate is 2.88 percent. Use the Wage Bracket Method Tables for Income Tax Withholding in Appendix C.
Answer:
His net pay on his November 15 paycheck is $1,349.70.
Explanation:
Number of semiannual in a year = 24
Semiannual gross pay = ($50,000 / 24) = $2,083.33
Social security tax = Semiannual gross pay * 6.20% = $2,083.33 * 6.20% = $129.17
Medicare tax = Semiannual gross pay * 1.45% = $2,083.33 * 1.45% = $30.21
401(k) contribution = Semiannual gross pay * 3% = $2,083.33 * 3% = $62.50
Section 125 plan = $25
Advance repayment = $750 / 2 = $375.00
Taxable Wages = Semiannual gross pay - Section 125 plan - 401(k) contribution = $2,083.33 - $25 - $62.50 = $1,995.83
Federal income tax = Taxable Wages * 1.6% = $1,995.83 * 1.6% = $31.93
State Income tax = Taxable Wages * 4% = $1,995.83 * 4% = $79.83
Net pay = Taxable Wages - Federal income tax - State Income tax - Social security tax - Medicare tax - Advance repayment = $1995.83 - $31.93 - $79.83 - $129.16 - $30.21 - $375 = $1,349.70
Therefore, his net pay on his November 15 paycheck is $1,349.70.
The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Accounts Receivable 11,800 Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 20% of receivables up to 30 days past due, and 46% of receivables greater than 30 days past due. The accounts receivable balance of $11,800 consists of $7,500 not yet due, $2,300 up to 30 days past due, and $2,000 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense
Answer:
The appropriate amount of Bad Debt Expense is $3,345.20.
Explanation:
The appropriate amount of Bad Debt Expense can be calculated as follows:
Bad debt expense = (Percentage of accounts receivable not yet due it will not collect * Accounts receivable not yet due) + (Percentage of receivables up to 30 days past due it will not collect * Amount of receivables up to 30 days past due) + (Parentage of receivables of receivables greater than 30 days past due it will not collect * Amount of receivables greater than 30 days past due) - Allowance for Uncollectible Accounts (credit) ……………………… (1)
Substituting the relevant values into equation (1), we have:
Bad debt expense = (7% * $7,500) + (20% + $2,300) + (46% * $2,000) - $400 = $3,345.20
Therefore, the appropriate amount of Bad Debt Expense is $3,345.20.
StellarFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,500,000 on January 1, 2020. Stellar expected to complete the building by December 31, 2020. Stellar has the following debt obligations outstanding during the construction period.
Construction loan-12% interest, payable semiannually, issued December 31, 2019 $1,800,000
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 1,350,000
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 900,000
Required:
a. Assume that Stellar completed the office and warehouse building on December 31, 2020, as planned at a total cost of $11,440,000, and the weighted-average amount of accumulated expenditures was $7,920,000. Compute the avoidable interest on this project.
b. Compute the depreciation expense for the year ended December 31, 2021. Stellar elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $660,000.
Answer:
A. $852,480
B. $387,749
Explanation:
1) Computation for the avoidable interest on this project
First step is to calculate the Avoidable interest on construction loan using this formula
Avoidable interest on construction loan = Loan Amount*Loan rate
Let plug in the formula
Avoidable interest on construction loan= $1,800,000*12%
Avoidable interest on construction loan= $216,000
Second step is to calculate the Weighted Average Interest Rate on General Loan (Amounts in $)
Loan Amount (A) Interest rate (B) Interest (A*B)
Short term loan 1,350,000 10% $135,000
Long term loan 900,000 11% 99,000
Total $2,250,000 $234,000
Weighted Average Interest rate = $234,000/$2,250,000
Weighted Average Interest rate = = 10.40%
Third step is to calculate the Avoidable Interest on Remaining Expenditure
Using this formula
Avoidable Interest on Remaining Expenditure
= (Weighted Average Accum. Exp - Construction Loan)*Weighted Avg interest rate
Let plug in the formula
Avoidable Interest on Remaining Expenditure= ($7,920,000 - $1,800,000)*10.40%
Avoidable Interest on Remaining Expenditure= $636,480
Now let calculate the Total Avoidable Interest
Total Avoidable Interest = $216,000+$636,480
Total Avoidable Interest= $852,480
Therefore the avoidable interest on this project
is $852,480
2) Computation for the depreciation expense for the year ended December 31, 2021.
First step is to calculate the Total cost of building capitalized
Total cost of building capitalized = $11,440,000+$852,480
Total cost of building capitalized = $12,292,480
Now let calculate the Depreciation Expense using this formula
Depreciation Expense = (Cost - Salvage Value)/Useful Life
Let plug in the formula
Depreciation Expense= ($12,292,480 - $660,000)/30 yrs
Depreciation Expense = $387,749 per year
Therefore the depreciation expense for the year ended December 31, 2021 is $387,749.
Peck corporation, a foreign subsidiary was acquired by a U.S. corporation on January 1, 2020. Determine the exchange rate used to restate the following accounts at December 31, 2020. Land was purchased on October 1, 2020. Equipment was purchased on February 1, 2020. Inventory was purchased on October 1, 2020 (reported at cost) Relevant exchange dates follow: (A) January 1, 2020 (B) October 1, 2020 (C) December 31, 2020 (D) Average, 2020 (E) February 1, 2020 Identify the exchange rate used to translate inventory when the functional currency is the foreign currency.
Answer:
Land, Equipment, and Inventory will be restated on the closing date i.e. December 31, 2020. The rate of the currency exchange from local to foreign currency for equipment is on the day of purchase which is February 1, 2020.
Explanation:
1-Balance sheet items are restated on the closing date.
2-P & L items are restated on the transaction date.
As the items Land, Equipment and Inventory are all the balance sheet items, thus they will be stated on the closing date i.e. December 31, 2020.
Furthermore, the functional currency is foreign currency. Since the equipment is purchased in the domestic currency it has to be translated into the foreign currency at the rate as on the date of purchase i.e; February 1, 2020.
Annabelle is employed as an administrator for GRM Industries. She noticed that her Box 1 and Box 3 amounts on her W-2 were different.
b Employer identification number (EIN)
c Employer'd name, address, and ZIP code
1 Wages, tips, other compensation
2 Federal income tax withheld
3 Social security wages
4 Social security tax withheld
What is a reason why the amounts in boxes 1 and 3 would be different?
a) Annabelle received tips, which are not subject to Social Security taxes.
b) Annabelle has contributed to a pre-tax 401(k) that reduced her taxable wages.
c) Annabelle changed her withholding allowances on her W-4.
d) Annabelle's wages were subject to a pre-tax garnishment.
Answer:
B.
Explanation:
:::::::::::::::::::
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 7.90 pounds $2.10 per pound $16.59
Direct labor 0.50 hours $5.00 per hour $2.50
During the most recent month, the following activity was recorded:
a. 14,850.00 pounds of material were purchased at a cost of $2.00 per pound.
b. All of the material purchased was used to produce 1,500 units of Zoom.
c. 600 hours of direct labor time were recorded at a total labor cost of $4,200.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.1 - 2)*14,850
Direct material price variance= $1,485 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7.9*1,500 - 14,850)*2.1
Direct material quantity variance= $6,300 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1,500*0.5 - 600)*5
Direct labor time (efficiency) variance= $750 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (5 - 7)*600
Direct labor rate variance= $1,200 unfavorable
Actual rate= 4,200/600= $7
TB MC Qu. 08-54 Identify the situation below that will... Identify the situation below that will result in a favorable variance. Multiple Choice Actual revenue is higher than budgeted revenue. Actual revenue is lower than budgeted revenue. Actual income is lower than expected income. Actual costs are higher than budgeted costs. Actual expenses are higher than budgeted expenses.
Answer:
Actual revenue is higher than budgeted revenue
Explanation:
A developing economy requires 1,000 hours of work to produce a television set and 10 hours of work to produce a bushel of corn. This economy has available a total of 1,000,000 hours of work per day.
Answer:
so what's your question
Andermeyer Jewelers, which specializes in high-end jewelry, has been in existence since the 1870s and has served generations of wealthy families. Owned and managed by the Andermeyer family since its founding, it has never had more than 20 designers and jewelers in its shop. Andermeyer Jewelers should use the __________ structure.
Answer:
(A) simple
Explanation:
THIS IS THE OPTIONS FOR THE QUESTION BELOW
(A) simple
(B) functional
(C) matrix
(D) network
Ron the question, we are informed about the Andermeyer Jewelers, which specializes in high-end jewelry, has been in existence since the 1870s and has served generations of wealthy families. Owned and managed by the Andermeyer family since its founding, it has never had more than 20 designers and jewelers in its shop. In this case, Andermeyer Jewelers should use the simple structure. Some of the small businesses utilize a structure which is regarded as simple organizational structure, Simple structure can be regarded as basic organizational design structure having low departmentalization,wide spans of control, as well as little work specialization and centralized authority. In this structure most power belongs to the owner of the business. Here layers of department are absent.
In risk management, what does risk control include?
A.
risk identification
B.
risk analysis
C.
risk prioritization
D.
risk management planning
E.
risk elimination
Answer:
If I'm right it is risk prioritization
Explanation:
if I am correct about this
In risk management, risk control includes risk prioritization. The correct option is c.
What do you understand about risk management?Risk management can be understood as the identification, evaluation, and prioritization of risks followed by the coordinated and economical application of resources to minimize, monitor, and control the probability or impact of unfortunate events or to maximize the realization of opportunities. Risks can come from various sources including uncertainty in international markets, threats from project failures, legal liabilities, credit risk, accidents, natural causes and disasters, deliberate attack from an adversary, or events of the uncertain or unpredictable root cause.
There are two types of events: they are negative events which can be classified as risks and positive events are classified as opportunities. Risk management standards have been developed by various institutions, including the Project Management Institute, the National Institute of Standards and Technology, actuarial societies, and ISO standards.
Risk management has appeared in scientific and management literature since the 1920s.
Learn more about risk, here:
https://brainly.com/question/17284407
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Murray Motor Company wants you to calculate its cost of common stock. During the next 12 months, the company expects to pay dividends (D1) of $1.30 per share, and the current price of its common stock is $40 per share. The expected growth rate is 5 percent. a. Compute the cost of retained earnings (Ke). (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)
Bill Smith is evaluating the performance of four large-cap equity portfolios: Funds A, B, C, and D. As part of his analysis, Smith computed the Sharpe ratio and the Treynor's measure for all four funds. Based on his finding, the ranks assigned to the four funds are as follows: Fund Treynor Measure Rank Sharpe Ratio Rank A 1 4 B 2 3 C 3 2 D 4 1 The difference in rankings for Funds A and D is most likely due to:
Question Completion with Options:
a. A lack of diversification in fund A as compared to fund D.
b. Different benchmarks used to evaluate each fund’s performance.
c. A difference in risk premiums.
Answer:
The difference in rankings for Funds A and D is most likely due to:
a. A lack of diversification in fund A as compared to fund D.
Explanation:
a) Data and Calculations:
Fund Treynor Measure Rank Sharpe Ratio Rank
A 1 4
B 2 3
C 3 2
D 4 1
b) The Sharpe ratio and the Treynor measure are two financial performance ratios that measure the risk-adjusted rate of return of an investment. Specifically, the Sharpe ratio helps investors to understand an investment's return profile when compared to its risk profile. On the other hand, the Treynor ratio measures the excess return generated for portfolio risk per unit.
In conclusion, the Sharpe ratio appears to be a better measure with a portfolio that is not properly diversified, while the Treynor ratio works better with a well-diversified portfolio.
What is one specific requirement of a negotiable instrument?
O A. It must involve an exchange of goods.
B. It must provide for a fixed amount of money.
O C. It must be agreed to orally.
O D. It must involve two parties who are friends.
Answer:
B
Explanation:
The Foundational 15 (Static) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] Skip to question [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total cost per unit $ 100 $ 68 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 13-1 (Static) Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products
Answer:
Cane Company
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000
Beta = $1,800,000
Explanation:
a) Data and Calculations:
Alpha Beta
Selling price per unit $120 $80
Direct materials $ 30 $ 12
Direct labor 20 15
Variable manufacturing overhead 7 5
Traceable fixed manufacturing overhead 16 18
Variable selling expenses 12 8
Common fixed expenses 15 10
Total cost per unit $ 100 $ 68
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000 ($16 * 100,000)
Beta = $1,800,000 ($18 * 100,000)
During year 3, Orca Corp. decided to change from the FIFO method of inventory valuation to the weighted-average method. Inventory balances under each method were as follows: FIFO Weighted-average January 1, year 3 $71,000 $77,000 December 31, year 3 $79,000 $83,000 Orca's income tax rate is 30%. In its year 3 financial statements, what amount should Orca report as the gain or loss on the cumulative effect of this accounting change
Answer:
$0
Explanation:
Since the inventory method changes that means there is no cumulative effect treatment to be done on the income statement. Rather this, the change in the accounting is mentioned, so the retrospective application to the early period would be presented
So neither there would be gain nor loss for this change in the accounting
Hence, the answer should be zero
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $325,000 after deducting Robert’s $100,000 salary. In addition to his compensation, ABC pays Robert dividends of $250,000. What is Robert’s qualified business income? Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert’s experience and responsibilities is $200,000? Why or why not
Answer and Explanation:
a. The calculation of the robert qualified business income is shown below:
Since robert is the sole shareholder and CEO of the ABC Inc and earned the income of $325,000 after subtracting the deduction of $100,000 salary
Also their is a dividend of $250,000
But the qualified business income should be equivalent to the net income i.e. $325,000
b. In the case when there is $200,000 so the net income would be decreased by $100,000
Now the qualified business income is
= $325,000 - $100,000
= $225,000
Saul is a manager at Holden Apparels Inc. and is friends with the company's CEO. This privilege gives Saul the information that Holden Apparels is in the midst of talks to take over a leading rival. Saul buys stocks of Holden with the expectation that its stocks will appreciate. But the deal falls through and the stocks of Holden depreciate in the following months. Are Saul's actions unethical
Answer:
D) Yes, because it is unethical to trade stocks based on insider information
irrespective of the final outcome.
Explanation:
THIS ARE THE OPTIONS FOR THE QUESTION;
A) Yes, because it is illegal and unethical for Saul to possess any kind of insider
information.
B) No, because Saul did not make any profits from trading stocks using this
information.
C) No, because Saul did not ask the CEO to disclose such information to him.
D) Yes, because it is unethical to trade stocks based on insider information
irrespective of the final outcome.
From the question,we are told about Saul who is a manager at Holden Apparels Inc. and is friends with the company's CEO. This privilege gives Saul the information that Holden Apparels is in the midst of talks to take over a leading rival. Saul buys stocks of Holden with the expectation that its stocks will appreciate. But the deal falls through and the stocks of Holden depreciate in the following months. In this case, Saul's actions are unethical
because it is unethical to trade stocks based on insider information irrespective of the final outcome. Stock trading can be regarded as buying as well as selling of shares in a specific company. Unethical behavior in stock market are actions that falls outside morally right practice/trading in stock market. Unethical trading of stock could be a process of purchasing shares in particular firm that engages herself in some questionable operational as well as recruitment activities. In some cases it should be noted that stocks trading could be unethical as a result of trader engaging in trading because they are getting information from insider in order to influence their trading.
Assume Italy and Libya can both produce grain and dates, and that the only limited resource is the farming labor force, meaning that land, water, and all other resources are plentiful in both countries. Each farmer in Italy can produce 10 t of grain or 5 t of dates in a season. Each farmer in Libya can also produce 10 t of grain or 25 t of dates. Please answer the four questions. Which country has the absolute advantage in producing dates
Answer and Explanation:
Since each farmer in Italy can produce 10ton of grain or 5ton of dates while on the other hand each farmer in libya can produce 10ton of grain or 25ton of dates
So based on the above information Libya produce more as compared with the Italy
Therefore libya has an absolute advantage in producing dates
Hence, the same is to be considered
HH Auto Repair reports the following information for the coming year.
Labor rate, including fringe benefits $ 45 per labor hour
Annual labor hours 10,900 hours
Annual materials (parts) purchases $2,090,000
Annual overhead costs:
Materials purchasing, handling, and storage $ 355,300
Other overhead (depreciation, insurance, taxes, rent) 185,300
Target profit margin (on both labor and materials) $ 33 %
1. Compute the price (rate) per hour of direct labor. (Round your answer to 2 decimal places.)
2. Compute the materials markup (in %).
3. What price should the company quote for a job requiring five labor hours and $670 in parts? (Round your answer to 2 decimal places.)
Answer: See explanation
Explanation:
1. Compute the price (rate) per hour of direct labor.
This will be:
= [45 + (185,300 / 10,900)]× 1.33
= (45 + 17) × 1.33
= 62 × 1.33
= $82.46
2. Compute the materials markup.
This will be:
= =(355,300 / 2090,000) + 33%
= 0.17 + 33%
= 17% + 33%
= 50%
3. What price should the company quote for a job requiring five labor hours and $670 in parts?
This will be:
= (670 × 1.5) + (82.46 × 5)
= 1005 + 412.3
= $1417.30
Andrews Company manufactures a line of office chairs. Each chair takes $18 of direct materials and uses 1.9 direct labor hours at $18 per direct labor hour. The variable overhead rate is $1.00 per direct labor hour, and the fixed overhead rate is $1.50 per direct labor hour. Andrews expects to have 640 chairs in ending inventory. There is no beginning inventory of office chairs.
Prepare a cost of goods sold budget for Andrews Company.
Answer:
See below
Explanation:
Direct materials :
$18
Direct labor :
1.9 hours × $18 labor costs
$34.2
Overhead
1.9 labor hours × ($1.50 fixed rate + $1.0 variable rate)
$4.75
Total unit cost
$18 + $34.2 + $4.75
$56.95
Cost to produce 640 chairs :
640 chairs × $56.95 per chair = $36,448
Computing and Recording Interest Capitalization Bullock Company is constructing a building for its own use and has been capitalizing interest based on average expenditures on a quarterly basis since the project began last year. The following expenditures are made during the first quarter: January 1, $2,520,000; February 1, $2,295,000; and March 31, $3,285,000. Bullock had the following debts outstanding during this quarter. Debt Amount Note payable, 10%, incurred specifically to finance construction $1,440,000 Short-term note payable, 15% 2,250,000 Mortgage note payable, 8% 1,080,000 Answer the following questions, round your answers to the nearest whole number.
a. Compute interest to be capitalized and interest to be expensed for this first quarter.
Amount of interest to be capitalized Answer 0
Amount of interest to expense Answer 0
b. Prepare the entry to record the construction expenditures and interest.
Note: Record the debit accounts in alphabetical order using the first letter of the account name
. Account Name Dr.
Cr.
Answer:
Bullock Company
a. The amount of interest to be capitalized = $405,000.
The amount of interest to expense = $105,975
b. Journal Entry:
January 1,
Debit Construction expenditure $2,520,000
Credit Cash $2,520,000
To record the expenditure incurred on this date.
February 1,
Debit Construction expenditure $2,295,000
Credit Cash $2,295,000
To record the expenditure incurred on this date.
March 31,
Debit Construction expenditure $3,285,000
Credit Cash $3,285,000
To record the expenditure incurred on this date.
March 31
Debit Construction expenditure $405,000
Credit Capitalized interest $405,000
To capitalize the interest for the quarter.
March 31
Debit Interest Expense $105,975
Credit Interest Payable $105,975
To record the interest expense for the quarter.
Explanation:
a) Data and Calculations:
First Quarter Expenditures:
Date Amount Weight Weighted-Average
January 1, $2,520,000 3/3 $2,520,000
February 1, $2,295,000 2/3 1,530,000
March 31, $3,285,000 0/3 0
Accumulated Weighted-Average expenditure = $4,050,000
Capitalized Interest = $4,050,000 * 10% * 1/4 = $405,000
Debts outstanding during the quarter:
Debt Amount Interest Expense
Note payable, 10%, incurred specifically
to finance construction $1,440,000 $0
Short-term note payable, 15% 2,250,000 $84,375
Mortgage note payable, 8% 1,080,000 $21,600
Total interest expense for the quarter $105,975
explain the importance of financial accounts to the owners and creditors
Answer:
Explanation:
U know what imma yeet out k bye
Fultz Company has accumulated the following budget data for the year 2017. 1 Sales: 31,450 units, unit selling price $85. Cost of one unit of finished goods: direct materials 1 pound at $5 per J pound, direct labor 3 hours at $13 per hour, and manufacturing overhead $6 per direct labor hour, j Inventories (raw materials only): beginning, 10,290 pounds; ending, 15,250 pounds. Selling and administrative expenses: $170,000; interest expense: $30,000. Income taxes: 30% of income before income taxes.
Prepare a schedule showing the computation of cost of goods sold for 2017.
Answer:
See below
Explanation:
Computation of Cost of goods sold
Direct materials
Direct labor
Manufacturing overheads
Total cost
An investor deposits $35,000 into an IRA for her retirement in 25 years.The account pays 3.5% interest compounded continuously. She also plans to deposit $1800 each year into the account in a near-continuous manner for the same amount of time. What will be the value of her account after 25 years if she stays true to this plan
Answer:
The value of her account after 25 years, if she stays true to the plan is:
= $152,823.31.
Explanation:
a) Data and Calculations:
Initial deposits = $35,000
Period of investment = 25 years
Interest rate per year = 3.5% compounded continuously
Annual deposit into the same account = $1,800
Period of investment = 25 at 3.5% interest rate
Total value of her IRA account after 25 years:
Future value of $35,000 = $82,713.57
Future value of $1,800 yearly = 70,109.74
Total future value = $152,823.31
From an online financial calculator:
N (# of periods) 25
I/Y (Interest per year) 3.5
PV (Present Value) 35000
PMT (Periodic Payment) 0
Results
FV = $82,713.57
Total Interest $47,713.57
N (# of periods) 25
I/Y (Interest per year) 3.5
PV (Present Value) 0
PMT (Periodic Payment) 1800
Results
FV = $70,109.74
Sum of all periodic payments $45,000.00
Total Interest $25,109.74
Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2015. (Amounts to be deducted should be indicated with a minus sign.)
Selected 2015 Income Statement Data Selected Year-Ned 2015 Balance Sheet Data
Net income $397,000 Accounts receivable decrease $142,900
Depreciation expense 49,200 Inventory decrease 48,500
Amortization expense 7,500 Prepaid expenses increase 4,800
Gain on sale of plant assetes 6600 Accounts payable decrease 9,400
Salaries payable increase 1,600
Answer and Explanation:
The preparation of the operating activities is presented below:
cash flow from operating activities
Net income $397,000
Add: Depreciation expense $49,200
Add: Amortization expense $7,500
Add: Accounts receivable decrease $142,900
Less: Gain on sale of plant asset -$6,600
Add: Inventory decrease $48,500
less: Prepaid expenses increase -$4,800
Less: Accounts payable decrease -$9,400
Add: Salaries payable increase $1,600
net cash flow from operating activities $625,900
Credit reporting agencies are required to exclude negative information that is older than five years old. A) True B) False
If Congress wanted to help the economy out of a recession, they would be most likely to: check all that apply Group of answer choices increase transfer payments increase interest rates decrease taxes reduce government spending
Answer:
increase transfer payments
decrease taxes
Explanation:
A recession is when the GDP of a country for two consecutive quarters is negative
to help a country out of a recession, expansionary fiscal policies have to be undertaken
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
increasing interest rate is a monetary policy