Answer: Debit Vacation Benefits Expense $6,600; credit Vacation Benefits Payable
Explanation:
Based on the information given in the question, the journal entry will be:
Debit Vacation benefits expense $6600
Credit Vacation benefits payable $6600
Therefore, the correct option is D.
The margin of safety ratio is computed as actual sales divided by break-even sales. is used to determine the break-even point. indicates what percent decline in sales could be sustained before the company would operate at a loss. measures the ratio of fixed costs to variable costs.
Answer:
indicates what percent decline in sales could be sustained before the company would operate at a loss.
Explanation:
Since, Margin of safety ratio = Expected Sales - Break even sales
therefore,
The correct statement is : The margin of safety ratio indicates what percent decline in sales could be sustained before the company would operate at a loss.
Sandhill Co. purchased machinery that cost $2800000 on January 4, 2019. The entire cost was recorded as an expense. The machinery has a 9-year life and a $180000 residual value. The error was discovered on December 20, 2021. Ignore income tax considerations.
Before the correction was made, and before the books were closed on December 31, 2013, retained earnings was understated by:____.
Answer:
$2,217,777.78
Explanation:
The computation is shown below:
The accumulated depreciation amount till 31 Dec 2013
= ($2,800,000 - $180,000) ÷ 9 × 2
= $582,222.22
Now the expenses recorded as the purchase is $2,800,000
so,
The Retained earnings understated by
= $2,800,000 - $582,222.22
= $2,217,777.78
If the U.S. engages in free trade and the international price of skateboards is $75, it would import _____ skateboards from the rest of the world.
ifthe U.S. engages in free trade and the international price of skateboards is $75, it would import _____ skateboards from the rest of the world.
Explanation:
answer would be 210
On November 12, 2013, Berube Co. repurchased 10,000 shares of its own stock at a price of $20 per share. Berube had originally issued the stock in 2010 at a price of $15 per share.Which of the following items would be decreased by the stock repurchase transaction? (check all that apply)a. Total Shareholders Equity.b. Total Assets.c. Cash from Financing Activities.d. Total Liabilities.e. Accumulated Other Comprehensive Income.
Answer:
Berube Co.
The items that would be decreased by the stock repurchase transaction are:
b. Total Assets.
c. Cash from Financing Activities.
Explanation:
a) Data and Calculations:
November 12, 2013: Repurchase of 10,000 shares at a price of $20 per share = $200,000 (10,000 * $20)
b) The treasury stock repurchase decreases the cash from financing activities by $200,000. This also reduces the Total Assets in the form of cash used in the repurchase. The opposite becomes the case when treasury stock is sold. Cash from financing activities is increased just as the Total Assets are increased.
Why is it a good idea to have a security policy that defines the incident response process in your organization
Calista works as an IT manager for an engineering firm. When it comes time to replace the company's computers, the firm's president gives Calista a budget and tells her to pick computers that will best suit the company's needs. This is an example of making a decision through:_______
a. consensus.
b. expert opinion.
c. majority vote.
d. minority decision.
Answer:
b. expert opinion.
Explanation:
Remember, we are told that Calista has the job role of IT (Information Technology) manager.
Hence, in such an organization, we would expect the IT manager to provide the best expert opinion on the best computers that would replace the present computers while sticking to the company's budget.
If the labor force averaged 237 million in 2008–2011, by how much in percentage terms did the state and local layoffs described in the "In The News" add to the national unemployment rate, assuming all laid-off workers were actively seeking work?
Instructions: Enter your response rounded to two decimal places.
________ %
Answer:
Follows are the response to the given question:
Explanation:
unemployed people from 2008 to 2011 = 600,000
labor force from 2008 to 2011 = 237,000,000
Calculating the unemployment rate:
[tex]= (\frac{total \ unemployed \ people}{labor\ force}) \times 100[/tex]
[tex]= (\frac{600,000}{237,000,000}) \times 100\\\\= 0.0025 \times 100\\\\ = 0.25\%[/tex]
From 2008 to2011 there is 0.25% of the unemployment rate was added.
Waterway Industries has 24000 units in beginning finished goods. If sales are expected to be 130000 units for the year and Waterway desires ending finished goods of 30000 units, how many units must the company produce
Answer:
136,000 units
Explanation:
Given the following information,
Beginning finished goods = 24,000 units
Sales = 130,000 units
Ending finished goods = 30,000 units
Computation of units the company must produce.
= Sales + Ending finished goods - Beginning finished goods
= 130,000 + 30,000 - 24,000
= $136,000 units
Therefore, the company must produce 136,000 units
Hart Attorney at Law experienced the follwoing transactions in 2016, the first year of operations:
1. Accepted $36,000 on 4/1/16, as a retainer for services to be performed evenly over the next 12 months
(2) Performed legal services for cash of $54,000
(3) Purchased $2,800 of office suppies on account
(4) Paid $2,400 of the amount due on accounts payable
(5) Paid a cahs dividend to the stockholders of $5,000
(6) Paid cash for operationg expenses of $31,000
(7) Determined that at the end of the accounting period $200 of office supplies remained on hand
(8) On 12/31/16, recognized the revenue that had been earned for services performed in accordance with Transaction 1
Problem: Show the effects of the events on the fianncial statements using a horizontal statement model.
Answer:
The accounting equation therefore holds as follows:
Total assets = Total liabilities + Total Stockholders’ Equity = $51,800
Explanation:
Note: See the attached excel file for the horizontal statement model showing the effects of the events on the financial statements.
The following calculations are made in the attached excel:
For Event 7, we have:
Office supplies = Amount of office supplies purchased - Office supplies remained on hand = $2,800 - $200 = $2,600
For Event 8, we have:
Amount of revenue that is recognized = Number of months from April 1 to December 31 * (Amount accepted on April 1 / Number of months in year) = 9 * ($36,000 /12) = 9 * $3,000 = $27,000
Also, the following can be obtained from the attached excel file:
Total assets = $51,600 + $200 = $51,800
Total liabilities = $400 + $9,000 = $9,400
Total Stockholders’ Equity = $42,400
Total liabilities + Total Stockholders’ Equity = $9,400 + $42,400 = $51,800
The accounting equation therefore holds as follows:
Total assets = Total liabilities + Total Stockholders’ Equity = $51,800
PLZZZ HELP GUYS ITS DUE VERY SOON
Answer:
$591.50
Explanation:
5% of $6000 is $300
6% of $2000 is $120
Money left to account for is $10450-$8000 which is $2450
7% of $2450 is $171.50
So on $10450 of sales, Triq makes $591.50 in commission.
DW has an ending Retained Earnings balance of $51,600. If during the year DW paid dividends of $4,100 and had net income of $21,100, then what was the beginning Retained Earnings balance
Answer:
$34,600
Explanation:
The computation of beginning retained earnings balance is seen below:
But we know that;
Ending balance of retained earnings = Beginning balance of retained earnings + Net income - Dividend paid
$51,600 = Beginning retained earnings + $21,100 - $4,100
Beginning retained earnings = $51,600 - $21,100 + $4,100
Beginning retained earnings = $34,600
marie's magic shoppe provides the following information about its single product targeted opertating income selling price per unit variable costs per unit total fixed costs what is the contribution margin ratio
Answer:
44 %
Explanation:
Hi your question is incomplete, I have searched for the full question online and I have attached it as an image below.
Contribution margin ratio = Contribution / Sales x 100
where
Contribution = Sales - Variable Costs
= $21.58 - $12.00
= $9.58
therefore,
Contribution margin ratio = $9.58 / $21.58 x 100
= 44.39 %
Knowledge Check 01 Feline Watch Company makes wrist watches out of silver metal sheets. Feline sold 200 watches in the month of June. It projects July and August sales to be 400 and 600 respectively. The company`s policy is to have 50% of next month`s sales in inventory. If the June ending inventory of watches is 200, how many watches must be produced in July
Answer:
the number of watches to be produced in July is 500
Explanation:
The calculation of the number of watches to be produced in July is given below;
Units Expected to be sale 400
Add: Desired ending inventory 300 (50% of 600)
Total available 700
Less: Beginning Inventory -200
Units to be produced 500
Hence, the number of watches to be produced in July is 500
Castle Leasing Company signs a lease agreement on January 1, 2020, to lease electronic equipment to Jan Way Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement.
1. Jan Way has the option to purchase the equipment for $16,000 upon termination of the lease. It is not reasonably certain that Jan Way will exercise this option.
2. The equipment has a cost of $120,000 and fair value of $160,000 to Castle Leasing. The useful economic life is 2 years, with a residual value of $16,000.
3. Castle Leasing desires to earn a return of 5% on its investment.
4. Collectibility of the payments by Castle Leasing is probable. Instructions
a. Prepare the journal entries on the books of Castle Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021.
b. Assuming that Jan Way exercises its option to purchase the equipment on December 31, 2021, prepare the journal entry to record the sale on Castle Leasing's books.
Answer:
A. 01-01-2020
Dr Lease receivable $160,000
Dr Cost of goods sold $105,488
Cr Sales $145,488
Cr Inventory $120,000
12/31/20
Dr Cash $78,244
Cr Lease receivable $70,244
Cr Interest revenue $8,000
12/31/21
Dr Cash $78,244
Cr Lease receivable $73,756
Cr Interest revenue $4,488
B. Dec 31,2021
Dr Cash $ 16,000
Cr Sales revenue $ 16,000
Explanation:
Preparation of the journal entries
First step is to Compute the annual payments
Present Value of lease payment
Fair value $160,000
less: present value of residual value $14,512
(16000*0.90703)
Present value of lease payment $145,488
Annual lease payment (145488/1.85941) = $78,244
Present value of $ 1 at 5 % 2 periods = 0.90703
Present value of an ordinary annuity of $ 1 at 5 % 2 periods = 1.85941
Second step is to computer the Lease Amortization Schedule
CASTLE LEASING COMPANY (Lessor)
Lease Amortization Schedule
1/1/20 $160,000
12/31/20 $78,244 $8,000 $70,244 $89,756
12/31/21 $78,244 $4,488 $73,756 $16,000
12/31/21 $16,000 0 $16,000 0
12/31/20
($160,000*5%)=$8,000
$78,244-$8,000=$70,244
$160,000-$70,244=$89,756
12/31/21
($89,756*5%)=$4,488
$78,244 -$4,488=$73,756
$89,756-$73,756=$16,000
Lease Receivable = ($78,244 × 1.85941) + ($16,000 × 0.90703)
Lease Receivable = $160,000
Cost of Goods Sold = $120,000 - ($16,000 × 0.90703)
Cost of Goods Sold= $105,488
Sales Revenue = $160,000 - (16,000 × 0.90703) Sales Revenue = $145,488
Now let prepare the JOURNAL ENTRIES
A. Preparation of the journal entries on the books of Castle Leasing to reflect the payments received under the lease and to recognize income for the years 2020 and 2021.
01-01-2020
Dr Lease receivable $160,000
Dr Cost of goods sold $105,488
Cr Sales $145,488
Cr Inventory (given) $120,000
( To record lease )
12/31/20
Dr Cash $78,244
Cr Lease receivable $70,244
Cr Interest revenue $8,000
($160,000*5%)
(To record interest revenue for Dec 2020)
12/31/21
Dr Cash $78,244
Cr Lease receivable $73,756
Cr Interest revenue $4,488
(To record interest revenue for Dec 2021)
B. Preparation of the journal entry to record the sale on Castle Leasing's books.
Dec 31,2021
Dr Cash $ 16,000
Cr Sales revenue $ 16,000
( To record sale on castle leasing's books )
Holo Company reported the following financial numbers for one of its divisions for the year; average total assets of $5,800,000; sales of $5,375,000; cost of goods sold of $3,225,000; and operating expenses of $1,147,000. Compute the division's return on investment:
Answer:
17.30%
Explanation:
The computation of the return on investment is shown below
But before that the net income is
Sales $5,375,000
Less: COGS -$3,225,000
Less: Operating Expenses -$1,147,000
Net Income $1,003,000
Now
Return on Investment is
= Net Income × 100 ÷ Average Assets
= $1,003,000 × 100 ÷ $5,800,000
= 17.30%
1 pts A $1.50 tax levied on the buyers of pomegranate juice will shift the demand curve Group of answer choices upward by exactly $1.50. upward by less than $1.50. downward by exactly $1.50. downward by less than $1.50.
Answer:
downward by exactly $1.50
Explanation:
The market for agricultural products is perfectly competitive
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry.
In the long run, firms earn zero economic profit. If in the short run firms are earning economic profit, in the long run firms would enter into the industry. This would drive economic profit to zero.
Also, if in the short run, firms are earning economic loss, in the long run, firms would exit the industry until economic profit falls to zero.
Consumers demand in perfect competition is elastic
If prices increases, the demand curve shifts downward by exactly the increase in price
organization which has no interaction with its external environment is called
Answer:
Closed system
Explanation:
An organization that has no interaction with its external environment is called a "Closed System"
A Closed System is a form of management system whereby the organization is operated or run solely on its own without any form of interaction or influence from the outside world. This is the opposite of the Open system.
Hence, Closed System operates such that the system doesn't affect the outside and the outside doesn't affect it either. It also regulates and influences itself.
If from 1980 to 2005, the average growth rate of aggregate output for the economy of Groland was 4.5%, while over the same time, Groland's population grew an average of 2.0% per year, then aggregate output per person grew at an average of _____ each year
Question 2 of 8
2.0 Points
Income earned by the business from activities unrelated to its primary operations would be
classified as........ in the statement that measures its performance for a particular period.
Answer:
This type of income is known as non-operating income in the financial statements
Explanation:
Non-operating income, as the world implies, is the income that a firm earns from activities that are not related to its main economic activity. An example would be a mall, whose main activity is the rental and management of commercial real estate, earning some income from short-term investments in the secondary market. This interest would be reported as non-operating income, and would be treated as such for financial, accounting, and tax purposes.
If a member firm believes that a senior citizen with an account at the firm is being financially exploited, the member would contact the client's A attorney B closest relative C trusted contact person D registered representative
Answer:
C trusted contact person
Explanation:
If a member firm believes that a senior citizen with an account at the firm is being financially exploited, the member would contact the client's "trusted contact person."
Option A is not correct because contacting the client's attorney would lead to legal action, which may affect the firm as well.
Option B is not correct because contacting the client's close relative might not be in the best interest of the client.
Option D is not correct because contacting the client's registered representative might not yield the expected outcome as the registered representative's main function is to involve in trading investment products and securities.
Hence, option C is correct because a trusted contact person is a person that the client has authorized the brokerage firm to contact in a situation such as when the client account may be exposed to financial exploitation.
Crane Company provided the following information on selected transactions during 2021: Purchase of land by issuing bonds $950000 Proceeds from issuing bonds 3020000 Purchases of inventory 3870000 Purchases of treasury stock 609000 Loans made to affiliated corporations 1400000 Dividends paid to preferred stockholders 408000 Proceeds from issuing preferred stock 1670000 Proceeds from sale of equipment 296000 The net cash provided (used) by investing activities during 2021 is $(4566000). $(1104000). $296000. $(2054000).
Answer:
$296,000
Explanation:
Consider cash movement in purchase and sale of capital assets only.
Cash flow from investing activities :
Proceeds from sale of equipment $296000
Net Cash Provided by investing activities $296000
therefore,
The net cash provided by investing activities during 2021 is $296000.
Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 12%, and its tax rate is 25%. Pearson's CFO estimates that the company's WACC is 12.20%. What is Pearson's cost of common equity
Answer:
14.82 %
Explanation:
WACC = Cost of equity x Weight of equity + Cost of Debt x Weight of Debt
where,
After tax cost of debt = Interest x (1 - tax rate)
= 12 % x (1 - 0.25)
= 9 %
therefore,
Let the Cost of equity be Ce
12.20% = Ce x 0.55 + 9 % x 0.45
12.20% = 0.55 Ce + 4.05
Ce = 14.82 %
thus
Pearson's cost of common equity is 14.82 %
The common stock of Swifty Inc. is currently selling at $120 per share. The directors wish to reduce the share price and increase share volume prior to a new issue. The per share par value is $10; book value is $75 per share. 10.50 million shares are issued and outstanding.
Required:
Prepare the necessary journal entries assuming the following.
a. The board declares and issues a 2-for-1 stock split.
b. The board declares and issues a 100% stock dividend.
c. Briefly discuss the accounting and securities market differences between these two methods of increasing the number of shares outstanding.
Answer:
A. No Entry
No Entry
B. Dr Retained Earnings $105,000,000
Cr Common Stock Dividend Distributable $105,000,000
Dr Common Stock $105,000,000
Cr Common Stock $105,000,000
Explanation:
A. Preparation of the necessary journal entries assuming the The board declares and issues a 2-for-1 stock split.
No Entry
No Entry
B. Preparation of the necessary journal entries assuming theThe board declares and issues a 100% stock dividend.
Dr Retained Earnings $105,000,000
Cr Common Stock Dividend Distributable $105,000,000
($10 x 10.50 million)
(To record the declaration)
Dr Common Stock $105,000,000
Cr Common Stock $105,000,000
(To record the distribution)
10% of the facility and increase the overall costs of maintaining the space by 11%. If the incremental method were used, what amount of cost would be allocated to the start-up business
Answer:
the cost that allocated to the start up business is $61,600
Explanation:
The computation of the amount of the cost that allocated to the start up business is given below:
= Manufacturing facility costing × maintaining the overall cost percentage
= $560,000 × 0.11
= $61,600
Hence, the cost that allocated to the start up business is $61,600
We simply applied the above formula so that the amount could come
Operations Excellence (OE), Inc. has two production departments: Mixing and Packaging. Mixing DepartmentPackaging DepartmentWarehouseOE manufactures two products: Compound H and Compound L. Compound H is a high-end product that requires more expensive materials than Compound L and is produced at smaller volume. The two products go through the two production departments in essentially the same conversion processes. There is no work-in-process inventory for either product. OE uses an operation costing system that assigns materials cost to the specific product for which the underlying materials are used and assigns conversion costs to all products evenly as each product undergoes the same process in each production department. The production and cost data are available for July:Compound HCompound LTotal2,500 Units4,800 UnitsMaterials: Mixing$220,000$100,000$120,000 Packaging 75,900 37,500 38,400Total materials cost$295,900$137,500$158,400Conversion: Mixing$219,000 Packaging 131,400Total conversion cost$350,400Required: Determine the unit cost for Compound H and Compound L.
Answer:
Operations Excellence (OE)
The unit cost for Compound H and Compound L respectively is:
Compound H Compound L
Unit cost of production $103 $81
Explanation:
Production and cost data are available for July:
Total Compound H Compound L
Production units 7,300 2,500 4,800
Materials:
Mixing $220,000 $100,000 $120,000
Packaging 75,900 37,500 38,400
Total materials cost $295,900 $137,500 $158,400
Conversion:
Mixing $219,000
Packaging 131,400
Total conversion cost$350,400
Assigned conversion cost per unit = $48
Assignment of conversion costs: 120,000 230,400 (4,800 * $48)
Total production costs $646,300 $257,500 $388,800
Units produced 7,300 2,500 4,800
Unit cost $103 $81
KLM Corporation's quick assets are $6,123,000, its current assets are $13,440,000 and its current liabilities are $8,144,000. Its acid-test ratio equals:
Answer:
the acid-test ratio is 0.75 times
Explanation:
The computation of the acid-test ratio is shown below:
We know that
Acid-test ratio is
= Quick assets ÷ current liabilities
= $6,123,000 ÷ $8,144,000
= 0.75 times
Hence, the acid-test ratio is 0.75 times
basically we divided the quick assets from the current liabilities so that the acid-test ratio could come
A company has two departments, Y and Z that incur wage expenses. An analysis of the total wage expense of $43,000 indicates that Dept. Y had a direct wage expense of $6,800 and Dept. Z had a direct wage expense of $10,700. The remaining expenses are indirect and analysis indicates they should be allocated evenly between the two departments. Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:
Answer:
$19,550 and $10,250
Explanation:
Calculation to determine what Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:
First step is to calculate the Indirect wages
Indirect wages = [43,000 - (6800+10700)]/2
Indirect wages= 43,000-17500/2
Indirect wages=24,500/2
Indirect wages = 12,750
Now let calculate Departmental wage expenses for Dept. Y and Dept. Z,
Departmental wage expenses for Dept. Y
=6800 + 12,750
Departmental wage expenses for Dept. Y = $19,550
Departmental wage expenses for Dept. Z=10,700 + 12,750
Departmental wage expenses for Dept. Z= 23450
Therefore Departmental wage expenses for Dept. Y and Dept. Z, respectively, are:$19,550 and $10,250
The supply and demand model assists in analyzing the: relationship between education and employment. growth in the overall level of economic activity. determinants of market price and quantity. connection between trade and U.S. employment levels.
Answer: determinants of market price and quantity.
Explanation:
The supply and demand model is important as it helps in analyzing the impact of the variables like price, quantity, tastes, preferences, the prices of related goods, technology, etc.
The The supply and demand model assists in getting the equilibrium price and the equilibrium quantity of a good in the market. Therefore, the correct option is C.
What everyday example can you find that is similar to the initial process of obtaining stock borrow when trying to short sell and how
If a firm covers the cost of production for its product and also adds a 15% profit to the price it charges its customer, then this is considered ________. Group of answer choices break-even regulation price-cap regulation Average cost pricing regulation cost-plus regulation
Answer:
cost-plus regulation
Explanation:
Pricing regulation is the strategy the a government uses in controlling the price of commodities at the retail markets and other stages in the production process.
The cost-plus regulation of prices allows businesses the set prices on goods that will meet up with the cost of production of the good and also add a normal rate of profit.
In the given instance the firm covers the cost of production for its product and also adds a 15% profit to the price it charges its customer.
This is cost-plus regulation.