Fort Corporation had the following transactions during its first month of operations: 1. Purchased raw materials on account, $85,000. 2. Raw Materials of $30,000 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $6,000 was classified as indirect materials. 3. Factory labor costs incurred were $175,000 of which $145,000 pertained to factory wages payable and $30,000 pertained to employer payroll taxes payable. 4. Time tickets indicated that $145,000 was direct labor and $30,000 was indirect labor. 5. Overhead costs incurred on account were $198,000. 6. Manufacturing overhead was applied at the rate of 150% of direct labor cost. 7. Goods costing $115,000 are still incomplete at the end of the month; the other goods were completed and transferred to finished goods. 8. Finished goods costing $100,000 to manufacture were sold on account for $130,000.

Answers

Answer 1

Answer:

Follows are the solution to this question:

Explanation:

Services             Names and descriptions of the accounts           Dr.            Cr.

1                                  Stock of raw resources                            85000

                                    Cash-able Accounts                                             85000

2                         Stock of processes (30000-6000)                  24000

                                 Overhead of development                        6000

                                  Stock of raw materials                                          30000

3                              employment manufacturer                       175000

                               manufacturing plant wages                                    145000

                                      Payroll Taxes                                                      30000

4                               Inventory job in process                         145000

                                  Overhead production                             30000

                                          Labor Plant                                                    175000

5                                  Overhead production                          198000

                                     Cash-able Accounts                                          198000

6                           Inventory of jobs in the process              217500

                                     [tex](145000 \times 150 \%)[/tex]  

                               Overhead of development                                     217500

7                               Inventory of finished products             271500

                                  Inventory job in process                                      271500

                                [tex](24000+145000+217500-115000)[/tex]

8                                      receivable Account                            130000

                                                  Sales                                                       130000

                                     Wars sold at discount                         100000

                               Inventory of finished products                              100000


Related Questions

The following pension-related data pertain to Metro Recreation's noncontributory, defined benefit pension plan for 2018:


Projected benefit obligation $5,800 $6,080
Accumulated benefit obligation 3,800 4,120
Plan assets (fair value) 7,080 7,525
Interest (discount) rate, 8%
Expected return on plan assets, 10%
Prior service cost−AOCI (from Dec. 31, 2017, amendment) 1,010
Net loss−AOCI 728
Average remaining service life: 10 years
Gain due to changes in actuarial assumptions 72
Contributions to pension fund (end of year) 510
Pension benefits paid (end of year) 465

Required:
Prepare a pension spreadsheet that shows the relationships among the various pension balances, shows the changes in those balances, and computes pension expense for 2018.

Answers

Answer:

Please see attached.

Explanation:

Prepare a pension spreadsheet that shows the relationship among the various pension balances, show the changes in those balances , and compute pension expense for 2018

Please see detailed solution to the above question.

Money is to an economy what language is to communication. What does this statement mean?

Answers

Answer:

i think it means that you need money to have an economy and you also need a language to be able to talk to someone

Explanation:

For Coppertone products, evaluations in the postpurchase behavior stage of the consumer purchase decision process that are most likely to cause dissatisfaction are

Answers

Answer:

dry skin and acne

Explanation:

Coppertone is an American brand name of a sunscreen. This brand is headquartered in Whippany, New Jersey. Coppertone the Coppertone girl logo and a different kind of fragrance.

For Coppertone products, evaluations in the post purchase behavior stage of the consumer purchase decision process that are most likely to cause dissatisfaction are dry skin and acne.

Apr. 2 Purchased $6,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
3 Paid $390 cash for shipping charges on the April 2 purchase.
4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $500.
17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased $13,100 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.
21 After negotiations, received from Frist a $400 allowance toward the $13,100 owed on the April 18 purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.

Required:
Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.

Answers

Answer:

Apr. 2

Merchandise $6,900 (debit)

Accounts Payable : Lyon Company $6,900 (credit)

Purchased Merchandise from Lyon Company on credit

April 3.

Accounts Payable : Lyon Company $390 (debit)

Cash $390 (credit)

Payment of Freight Charges Include in Invoice (FOB)

April 4.

Accounts Payable : Lyon Company $500 (debit)

Merchandise $500 (credit)

Returned Merchandise to Lyon Company

April 17.

Accounts Payable : Lyon Company $6,010 (debit)

Discount Received $120 (credit)

Cash $5,890 (credit)

Payment of amount due to Lyon Company and discount received

April 18.

Merchandise $13,100  (debit)

Accounts Payable: Frist Corp $13,100  (credit)

Purchased Merchandise on credit from Frist Corp

April 2.

Accounts Payable: Frist Corp $400  (debit)

Purchase allowance $400 (credit)

Received and allowance from Frist Corp

April 28.

Accounts Payable: Frist Corp $12,700 (debit)

Discount Received $127 (credit)

Cash $12,573 (credit)

Payment of amount due to Frist Corp and discount received

Explanation:

See the journals and their narrations prepared above.

Robert G. Flanders Jr., the state-appointed receiver for Central Falls, RI, said his city's declaration of bankruptcy had proved invaluable in helping it cut costs. Before the city declared bankruptcy, he said, he had found it impossible to wring meaningful concessions out of the city's unions and retirees, who were being asked to give up roughly half of the pensions they had earned as the city ran out of cash.
True or False

Answers

Answer: false

Explanation:

The alternative to the term of agreement is the declaration of bankruptcy, in which the cities can extract their pensions, it gives a much better alternative. It also increases the bargaining powers of the members of the city. It will help in extracting concessions from the government. It also increases the disagreement value of the city.

Lipscomb Corporation is estimating its WACC. Its target capital structure is 20 percent debt, 20 percent preferred stock, and 60 percent common equity. Its bonds have a 12 percent coupon, paid semiannually, a current maturity of 20 years, and sell for 1,000 USD. The firm could sell, at par, 100 USD preferred stock which pays a 12 percent annual dividend, but flotation costs of 5 percent would be incurred. Libscomb is a constant-growth firm which just paid a dividend of $2.00, sells for 27.00 USD per share, and has a growth rate of 8 percent. The firm's marginal tax rate is 40.

Required:
a. What is Rollins' cost of common stock using the bond-yield-plus-risk-premium approach?
b. What is Rollins' WACC?

Answers

Answer:

a. 16%

b.  13.566%

Explanation:

The weighted average cost of capital is the rate that a company is expected to pay on average to all its security holders to finance its assets. The WACC is commonly referred to as the firm's cost of capital.

DATA

P is price = 27

G is growth = 8%

Tax rate = 40%

Requirement a.

When the market rate of bond is equal to par value then yield is equal to the coupon rate

Tax rate = 12(1-0.4) = 7.2%

Cost of preferred stock = dividend/price

There will be a 5% floatation cost so net proceeds is 95

Cost of preferred stock = 12/95 = 12.63%

Cost of equity = D1/P + g

Where D1 is dividend for year 1 = 2+8% = 2.16

Cost of equity = 2.16/27 + 0.08

Cost of equity = 16%

Requirement  b

Wacc = 7.2×20% + 12.63×20% + 16×60%

Wacc = 13.566%

Match each trade organization or agreement with its description.

a. Oversees trade agreements among over 150 member nations and arbitrates trade disagreements among member countries.
b. Created a free-trade zone consisting of the United States, Canada, and Mexico with the purpose of eliminating trade barriers between these countries.
c. An agreement between over 25 nations, which abolished tariffs among member countries and standardized policies on agriculture, transportation, and business practices.

1. World Trade Organization
2. North American Free Trade Agreement
3. The European Union

Answers

Answer:

1. World Trade Organization

2. North American Free Trade Agreement

3. The European Union

Explanation:

a. World Trade Organization (WTO): Oversees trade agreements among over 150 member nations and arbitrates trade disagreements among member countries. The world trade organization (WTO) is an intergovernmental organization that set rules, policies and regulates global trade across the world. It was established officially on the 1st of January, 1995.

b. North American Free Trade Agreement (NAFTA): Created a free-trade zone consisting of the United States, Canada, and Mexico with the purpose of eliminating trade barriers between these countries. It officially became effective on the 1st of January, 1994.

c. The European Union (EU): An agreement between over 25 nations, which abolished tariffs among member countries and standardized policies on agriculture, transportation, and business practices. It was established officially on the 1st of November, 1993. Some of its member countries are Sweden, Italy, Germany, Portugal, Croatia, Russia, France, Spain, Netherlands etc.

A retrofitted​ space-heating system is being considered for a small office building. The system can be purchased and installed for ​$125,000​, and it will save an estimated 250,000 ​kilowatt-hours (kWh) of electric power each year over a five​-year period. A​ kilowatt-hour of electricity costs ​$0.09​, and the company uses a MARR of 15​% per year in its economic evaluations of refurbished systems. The market value of the system will be ​$7,000 at the end of five ​years, and additional annual operating and maintenance expenses are negligible.

Required:
Use the​ benefit-cost method to make a recommendation.

Answers

Answer:

Retrofitted Space-Heating System

Benefit-Cost Ratio = $75,420/$121,521

= 0.6206

= 0.62

Benefit is less than 1.  Therefore, project will not deliver positive NPV.

Recommendation:

It is better and cheaper to incur electricity costs than to purchase the retrofitted space-heating system.  The retrofitting benefit does not justify the cost of the project.

Explanation:

a) Data and Calculations:

Purchase cost of system = $125,000

Salvage value (PV of $7,000 in five years) = $3,479

Total cost of project = $121,521 ($125,000 - 3,479)

Benefit of Project = Savings in 250,000 kWh annually

Cost of a kilowatt-hour = $0.09

Total annual cost of electricity = $22,500 (250,000 * $0.09)

Annuity Factor for 5 years = 3.352

Present value of annuity of $22,500 = $75,420 ($22,500 * 3.352)

Benefit-Cost = $75,420/$121,521

= 0.6206

= 0.62

a. What is the total cash outflow for buying and for leasing a motor vehicle with a cash price of $33,000

Answers

Answer:

For buying = $32,640

For leasing = $31,800

Explanation:

The computation is shown below:

For buying

Total cash outflow = Down payment + Loan repayment - Value of vehicle at the end of loan

= $5,600 + (780 × 48) - $10,400

= $32,640

For Leasing

Total cash outflow = Down payment + Loan repayment - Value of vehicle at the end of loan

= $2,000 + (600 × 48) - $1,000

= $31,800

Pharoah Inc. has decided to raise additional capital by issuing $173,000 facevalue of bonds with a coupon rate of 6%. In discussions with investment bankers, it was determined that to help the sale of thebonds, detachable stock warrants should be issued at the rate of one warrant for each $100 bond sold. The value of the bondswithout the warrants is considered to be $155,700, and the value of the warrants in the market is $20,760. The bonds sold in the market at issuance for $174,600.
A. What entry should be made at the time of the issuance of the bonds and warrants?
B. Prepare the entry if the warrants were non-detachable.

Answers

Answer:

a.                                               Debit         Credit

Cash                                       $174,600

Discount on bond payable   $18,941

        Bonds Payable                                  $173,000

        Paid -in Capital - Stock Warrants    $20,541

Workings

Market value of Bonds        155,700

Market value of Warrants    20,760

Total market value               176,460

Value assigned to Bonds = 174,600 / 176,460 * 155,700 = 154,059

Value assigned to Warrants = 174,600 / 176,460 *20,760 = 20,541

b.                                              Debit       Credit

Cash                                        $174,600

Discount receivable                                 $1,600

         Bonds Payable                                $173,000

The Senate, the legislature of the fictional country of Romange, is considering legislation that will generate benefits of $30 million and costs of $34 million. For perspective, Romange's population is 50 million. Passing the legislation is _____________ , and if everyone in Romange shared equally in both its benefits and its costs, the Senate will vote ____________ the legislation. If the costs of the legislation are concentrated among a few people instead of widespread among the population, those people will be willing to spend up to ___________ lobbying the Senate against the legislation. (Note: Assume that the benefits are widespread; therefore, you can ignore them in the calculations of the few who experience the costs.) The more widely spread are the benefits of the legislation, the _____________is the likelihood of lobbying for the legislation by those who will incur its benefits.

Suppose that, as before, the costs of the legislation are concentrated among a small group, but the benefits of the legislation are concentrated among another small group, and the Senate is responsive to lobbying. The people who will benefit from the legislation will be willing to spend on lobbying up to______________ , in which case the Senate will likely vote ___________ the legislation.

Answers

Answer:

Passing the legislation is INEFFICIENT, and if everyone in Romange shared equally in both its benefits and its costs, the Senate will vote AGAINST the legislation.

Costs are higher than benefits, so it should be rejected.

If the costs of the legislation are concentrated among a few people instead of widespread among the population, those people will be willing to spend up to 34 MILLION lobbying the Senate against the legislation.

The more widely spread are the benefits of the legislation, the LOWER is the likelihood of lobbying for the legislation by those who will incur its benefits.

Sadly, when public goods tend to benefit everyone equally, people do not pay attention to them. One sad example, is the current state of the country's road system which is probably the worst among developed nations. Since everyone benefits form roads, everyone complains, but the vast majority of the people do not do anything but complain to themselves or their families when travelling. This is something that has been going on for decades now, and really very few people care. Even public health care, which is one of the most basic duties of a government is something that only a few really pay attention to. Only in Switzerland (which subsidizes and deducts all health spending), does a similar system works. In no other developed, or even in most developing nations would their citizens even consider not having 100% public health care.

An investor buys a property for $608,000 with a 25-year mortgage and monthly payments at 8.10% APR. After 18 months the investor resells the property for $667,525. How much cash will the investor have from the sale, once the mortgage is paid off

Answers

Answer:

$71,520

Explanation:

we must first determine the monthly payment:

monthly payment = present value / annuity factor

present value = $608,000PV annuity factor, 0.675%, 300 periods = 128.46

monthly payment = $608,000 / 128.46 = $4,732.99

Then I prepared an amortization schedule using an excel spreadsheet. After the 18th payment, the principal balance is $596,005.

The investor will have $667,525 - $596,005 = $71,520

Nutritional Foods reports merchandise inventory at the​ lower-of-cost-or-market. Prior to releasing its financial statements for the year ended August ​31, 2019​, Nutritional's preliminary income​ statement, before the​ year-end adjustments, appears as​ follows:

NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... 45,000
Gross Profit ........ $72,000

Nutritional has determined that the current replacement cost of ending merchandise inventory is $17,000. Cost is $19,000.

Required:
a. Journalize the adjusting entry for merchandise​ inventory, if any is required.
b. Prepare a revised partial income statement to show how Nutritional Foods should report sales, cost of goods sold, and gross profit.

Answers

Answer:

a) since the cost of ending inventory is higher than the replacement value, then ending inventory must decrease, which will result in higher COGS. The adjusting journal entry is:

March 31, 2017, inventory adjustment

Dr Cost of goods sold 2,000

    Cr Merchandise inventory 2,000

b) revised income statement

NUTRITIONAL FOODS

Income Statement (Partial)

Year Ended March 31, 2017

Sales Revenue ........ $117,000

Cost of Goods Sold ..... $47,000

Gross Profit ........ $70,000

Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. They are also able to claim $2,900 in recovery rebate credit ($2,400 for Marc and Michelle and $500 for Matthew). Assume they did not receive the recovery rebate in advance. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules).
A. What is Marc and Michelle’s gross income?
B. What is Marc and Michelle’s adjusted gross income?
C. What is the total amount of Marc and Michelle’s deductions from AGI?
D. What is Marc and Michelle’s taxable income?
E. What is Marc and Michelle’s taxes payable or refund due for the year?

Answers

Answer:

I will use the 2020 tax schedule since recovery rebate credit applies to 2020:

Marc and Michelle's gross income = Marc's and Michelle's salaries + interest from corporate bonds = $64,000 + $12,000 + $500 = $76,500

they should choose the standard deduction since it is higher than their itemized deductions = ($24,400)

contribution to IRA = ($2,500)

alimony payment = ($1,500) the divorce agreement was settled on 2005

Marc and Michelle's taxable income = $48,100

Marc and Michelle's tax liability = $1,975 + [12% x ($48,100 - $19,750)] = $5,377

Interests on municipal bonds is not taxable.

The amount of taxes that they owe = $5,377 - $3,500 (federal tax withholdings) = $1,877

Refundable tax credits:

$2,000 in child tax credit

$2,900 in recovery rebate credit

total = $4,900

taxes payable or refund = tax liability - refundable tax credits = $1,877 - $4,900 = -$3,023.

Marc and Michelle should get a refund for $3,023

Presented below are selected balances for Tucker as of December 31, 2018:

Cash $50,000
Administrative expenses 90,000
Selling expenses 80,000
Accumulated other comprehensive income, beginning 55,000
Net sales 540,000
Cost of goods sold 210,000
Common stock, beginning 75,000
Cash dividends declared 20,000
Unrealized loss on available-for-sale debt securities 7,000
Interest expense 10,000
Cash dividends paid 15,000
Operating income from discontinued operations (before taxes) 30,000
Retained earnings, beginning 90,000
Loss on disposal of discontinued operations (before taxes) 45,000
Effective tax rate 30%

Required:
a. Compute net income for 2020.
b. Prepare an income statement for 2018 assuming 10,000 shares of common stock were outstanding all year.

Answers

Answer:

Tucker`s

Income Statement for the year end December 31, 2018

Net sales                                                                                              540,000

Cost of goods sold                                                                              (210,000)

Gross Profit                                                                                           330,000

Administrative expenses                                                   90,000

Selling expenses                                                                80,000

Unrealized loss on available-for-sale debt securities        7,000

Interest expense                                                                 10,000     (187,000)

Net Income before tax from continuing activities                              143,000

Income tax expense at 30%                                                                 (43,900)

Net Income after tax from continuing activities                                    99,100

Explanation:

Prepare the Income statement for calculation of net income. Income statement consist of Revenues/ Income and Expenses.

What was the intrinsic value of SmileWhite Co. stock when the analyst was evaluating the stock (that is in year 2008)

Answers

Answer: $28.96

Explanation:

Using the Dividend discount model, the intrinsic value will be a sum of the present values of the dividends in addition to the present value when the dividends become constant.

First use CAPM to calculate the required return

= Risk free rate + Beta * (market return - risk free rate)

= 4.5% + 1.15 * (14.5% - 4.5%)

= 16%

The required return will be used to discount the dividends.

2009 dividends = 1.72 * 1.12 = $1.93

2010 = 1.93 * 1.12 = $2.16

2011 = 2.16 * 1.12 = $2.42

Dividends grow at 9% from 2011

Stock terminal value in 2011 = (2.42 * 1.09) / (16% - 9%) = $37.68

[tex]= \frac{1.93}{1.16} + \frac{2.16}{1.16^{2} } + \frac{2.42}{1.16^{3} } +\frac{37.68}{1.16^{3}}\\\\= 28.959397679[/tex]

= $28.96

The company's mission statement tells us...

Answers

Answer:

A company  mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.

Explanation:

Hope this helps

Which of these is a way that politicians in the United States attempt to influence the media?

Answers

Answer:

They try to “spin” the news by manipulating

Explanation:

Answer:

Hope it helps

Explanation:

because they are tools that can be used to inform and mobilize users in new ways. Users are able to connect directly to politicians and campaign managers and engage in political activities in new ways.They try to "spin" the news by manipulating how reporters interpret events

Post the journal entries to the​ T-accounts, using transaction dates as posting references in the ledger accounts.

Jul.
1. Yardley contributed $68,000 cash to the business in exchange for common stock.
5. Paid monthly rent on medical equipment, $510.
9. Paid $16,000 cash to purchase land to be used in operations.
10. Purchased office supplies on account, $1 ,600.
19. Borrowed $26,000 from the bank for business use.
22. Paid $1 , 100 on account.
28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.
31. Revenues earned during the month included $6,300 cash and $5,300 on account.
31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.
31. The business received $1 ,340 for medical screening services to be performed next month.
31. Paid cash dividends of $6,900.

Answers

Answer:

July 1. Yardley contributed $68,000 cash to the business in exchange for common stock.

Dr cash 68,000

    Cr common stock 68,000

July 5. Paid monthly rent on medical equipment, $510.

Dr rent expense 510

    Cr cash 510

July 9. Paid $16,000 cash to purchase land to be used in operations.

Dr land 16,000

    Cr cash 16,000

July 10. Purchased office supplies on account, $1 ,600.

Dr office supplies 1,600

    Cr accounts payable 1,600

July 19. Borrowed $26,000 from the bank for business use.

Dr cash 26,000

    Cr notes payable 26,000

July 22. Paid $1,100 on account.

Dr accounts payable 1,100

    Cr cash 1,100

July 28. The business received a bill for advertising in the daily newspaper to be paid in August, $250.

Dr advertising expense 250

    Cr accounts payable 250

July 31. Revenues earned during the month included $6,300 cash and $5,300 on account.

Dr cash 6,300

Dr accounts receivable 5,300

    Cr service revenue 11,600

July 31. Paid employees' salaries $1 ,900, office rent $1 ,400, and utilities $600. Record as a compound entry.

Dr wages expense 1,900

Dr rent expense 1,400

Dr utilities expense 600

    Cr cash 3,900

July 31. The business received $1 ,340 for medical screening services to be performed next month.

Dr cash 1,340

    Cr unearned revenue 1,340

July 31. Paid cash dividends of $6,900.

Dr dividends 6,900

    Cr cash 6,900

cash

              debit                    credit

July 1      68,000

July 5                                  510

July 9                                  16,000

July 19    26,000

July 22                                1,100

July 31    6,300

July 31                                  3,900

July 31    1,340

July 31                                 6,900

               101,640

accounts receivable

              debit                    credit

July 31    5,300

office supplies

              debit                    credit

July 10   1,600

land

              debit                    credit

July 9     16,000

accounts payable

              debit                    credit

July 10                                1,600

July 22   1,100

July 28                              250    

                                          750

unearned revenue

              debit                    credit

July 31                                1,340

notes payable

              debit                    credit

July 19                                26,000

common stock

              debit                    credit

July 1                                  68,000

service revenue

              debit                    credit

July 31                                11,600

rent expense

              debit                    credit

July 5     510

July 31    1,400

advertising expense

              debit                    credit

July 28   250

wages expense

              debit                    credit

July 31   1,900

utilities expense

              debit                    credit

July 31    600

dividends

              debit                    credit

July 31    6,900

Definition of economic costs
Darnell lives in Philadelphia and runs a business that sells pianos. In an average year, he receives $842,000 from selling pianos. Of this sales revenue, he must pay the manufacturer a wholesale cost of $452,000; he also pays wages and utility bills totaling $301,000. He owns his showroom; if he chooses to rent it out, he will receive $38,000 in rent per year. Assume that the value of this showroom does not depreciate over the year. Also, if Darnell does not operate this piano business, he can work as an accountant and receive an annual salary of $48,000 with no additional monetary costs. No other costs are incurred in running this piano business.
Identify each of Darnell's costs in the following table as either an implicit cost or an explicit cost of selling pianos.
Implicit Cost
Explicit Cost
The wholesale cost for the pianos that Darnell pays the manufacturer
The salary Darnell could earn if he worked as an accountant
The wages and utility bills that Darnell pays
The rental income Darnell could receive if he chose to rent out his showroom
Complete the following table by determining Darnell's accounting and economic profit of his piano business.
Profit
(Dollars)
Accounting Profit
Economic Profit
If Darnell's goal is to maximize his economic profit, he( should, should not) stay in the piano business because the economic profit he would earn as an accountant would be $______.

Answers

Answer:

1. I grouped the costs into explicit and implicit costs below

2. accounting profit = 89000

3. economic profit = 3000

4. daniel should stay in the piano business

Explanation:

explicit costs include:

1. The wholesale cost for the pianos that Darnell pays the manufacturer at $452000

2. The wages and utility bills that Darnell pays at $301000

the implicit costs include:

1. The salary Darnell could earn if he worked as an accountant at $48000

2. The rental income Darnell could receive if he chose to rent out his showroom at $38000

accounting profit:

842000-452000-301000

= 89000

economic profit:

842000-452000-301000-48000-38000 = 3,000

as an accountant economic profit:

48000+38000-89000

= -3000

so he should stay in the piano business so that economic profit would be maximized.

A market has four individuals, each considering buying a grill. Assume that grills come in only one size and model. Martina considers herself a grill-master, and finds a grill a necessity, so she is willing to pay $400 for a grill. Javier is a meat-lover, honing his grilling skills, and is willing to pay $350 for a grill. Kamal wants to impress his friends with his vegetable grilling skills and is willing to pay $320 for a grill. Lina loves grilled shrimp and thinks it might be cheaper in the long run if she grills her own shrimp instead of eating out at a restaurant, so she is willing to pay $200 for a grill. If the market price ofgrills increases from $300 to $320, given the scenario described:

a. Collin is the only consumer who would be affected in terms of surplus.
b. Daniel drops out of the market.
c. Collin drops out of the market.
d. Collin loses any surplus he had.

Answers

Answer: d. Kamal loses any surplus he had.

Explanation:

The Consumer Surplus is defined as the difference between what a customer is willing to pay for a good minus the price of the good/ the price they pay.

Kamal was willing to pay $320 and the price was initially $300 which meant that he had a surplus of $20. The price has now increased to $320 which is the amount he is willing to pay so there is no longer a surplus. Kamal loses any surplus he had.

Recording sales, purchases, shipping, and returns-buyer and seller. Sydney Retailing (buyer) and Troy Wholesalers (seller) enter into the following transactions.

May 11 Sydney accepts delivery of $40,000 of merchandise it purchases for resale from Troy: invoice dated May 11, terms 3/10, n/90, FOB shipping point. The goods cost Troy $30,000. Sydney pays $345 cash to Express Shipping for delivery charges on the merchandise.
12 Sydney returns $1,400 of the $40,000 of goods to Troy, who receives them the same day and restores them to its inventory. The returned goods had cost Troy $1,050.
20 Sydney pays Troy for the amount owed. Troy receives the cash immediately.

Required:
a. Prepare journal entries that Sydney Retailing (buyer) records for these three transactions
b. Prepare journeal entries that Troy Wholesalers (seller) records for these three transactions.

Answers

Answer:  please see explanation column for answers

Explanation:

                 A) Journal entry for Sydney retailing buyer

i)To record purchase of inventory on account

Date          Account  titles                                   Debit               Credit

May 11          Accounts Payable                        $40,000

Merchandise Inventory                                                             $40,000

ii)To record shipping expense paid

Date          Account  titles                                   Debit               Credit

May 11        

Merchandise Inventory                       $ 345

                       Cash                                                                          $ 345

iii) To record goods returned to seller

Date          Account  titles                                   Debit               Credit

May 12   Accounts Payable                                $1,400

         Merchandise Inventory                                                       $1,400

iv To record payment on account.

Date          Account  titles                                   Debit               Credit

May 20 Accounts Payable                            $38,600

Merchandise Inventory                                                               $1,158

Cash                                                                                              $37,442

Calculation:

Accounts payable=  Purchases−   Purchase return

=$40,000−$1,400

=$38,600

Discount=Accounts payable X 3%

=$38,600×0.03

=$1,158

​                            B) Journal entry for Troy - Seller

i)To record sales of goods on account

Date          Account  titles                                   Debit               Credit

May 11          Accounts receivable                        $40,000

Sales Revenue                                                            $40,000

ii) To record cost of goods sold

Date          Account  titles                                   Debit               Credit

May 11   Cost of goods sold                               $30,000

Merchandise Inventory                                                              $30,000

III) To record sales return

Date          Account  titles                                   Debit               Credit

May 12   Sales returns and allowance                $1,400

  Account receivable                                                                       $1,400  

iv) To record cost of goods sold reversed for sales return  

 Date          Account  titles                                   Debit               Credit

May 12           Merchandise Inventory                    $1,050.  

       Cost of goods sold                                                                 $1,050.    

v) To record cash received for goods sold.

  Date          Account  titles                                   Debit               Credit

May 20      Cash                            $38,600

Sales discount                                                               $1,158

        Account receivables                                                                  $37,442

Calculation:

Accounts receivables=  sales−   sales  return

=$40,000−$1,400

=$38,600

Discount=receivables X 3%

=$38,600×0.03

=$1,158

On January 1, 20X1, Tucker Company leases equipment from Franz Inc. over three years of the equipment's five-year estimated useful life. Franz acquired the asset for $431,213 and normally utilizes an 8% interest rate for these types of transactions. The present value of the lease payments is $357,710. The annual lease payment is $100,000; the first payment is due on January 1, 20X1. Tucker should recognize the second lease payment by debiting (round to the nearest whole dollar and select all that apply)

Answers

Answer:

Lease payable for $79,383

Interest expense for $20,617

Explanation:

Calculation for the amount that Tucker should recognize the second lease payment

Calculation for Lease payable

Lease payable =$100,000-($357,710-$100,000)*8%

Lease payable =$100,000-($257,710*8%)

Lease payable =$100,000-$20,617

Lease payable =$79,383

Calculation for Interest expense

Interest expense =( $357,710-$100,000)*8%

Interest expense =$257,710*8%

Interest expense =$20,617

Therefore Tucker should recognize the second lease payment by debiting:

Lease payable for $79,383

Interest expense for $20,617

All of the current year's entries for Zimmerman Company have been made, except the following adjusting entries. The company's annual accounting year ends on December 31
On September 1 of the current year, Zimmerman collected six months' rent of $8,520 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,520.
On October 1 of the current year, the company borrowed $13,200 from a local bank and signed a one-year, 12 percent note for that amount. The principal and interest are payable on the maturity date.
Depreciation of $3,000 must be recognized on a service truck purchased in July of the current year at a cost of $24,000.
Cash of $3,600 was collected on November of the current year, for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received.
On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,960, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.
The company earned service revenue of $4,200 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded.
At December 31 of the current year, wages earned by employees totaled $13,700. The employees will be paid on the next payroll date in January of the next year.
On December 31 of the current year, the company estimated it owed $490 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year.
2. Using the following headings, indicate the effect of each adjusting entry and the amount of the effect. Use + for increase, − for decrease. (Reminder: Assets = Liabilities + Stockholders’ Equity; Revenues – Expenses = Net Income; and Net Income accounts are closed to Retained Earnings, a part of Stockholders’ Equity.)

Answers

Answer:

1) adjusting entries

a. On September 1 of the current year, Zimmerman collected six months' rent of $8,520 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,520.

Dr Unearned rental revenue 5,500

    Cr Rental revenue 5,500

b. On October 1 of the current year, the company borrowed $13,200 from a local bank and signed a one-year, 12 percent note for that amount. The principal and interest are payable on the maturity date.

Dr Interest expense 396

    Cr Interest payable 396

c. Depreciation of $3,000 must be recognized on a service truck purchased in July of the current year at a cost of $24,000.

Dr Depreciation expense 3,000

    Cr Accumulated depreciation 3,000

d. Cash of $3,600 was collected on November of the current year, for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received.

Dr Unearned service revenue 600

    Cr Service revenue 600

e. On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,960, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.

Dr Insurance expense 1,660

    Cr Prepaid insurance 1,660

f. The company earned service revenue of $4,200 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded.

Dr Accounts receivable 4,200

    Cr Service revenue 4,200

g. At December 31 of the current year, wages earned by employees totaled $13,700. The employees will be paid on the next payroll date in January of the next year.

Dr Wages expense 13,700

    Cr Wages payable 13,700

h. On December 31 of the current year, the company estimated it owed $490 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year.

Dr Property taxes expense 490

    Cr Property taxes payable 490

2) Assets     = Liabilities + Stockholders’     Revenues - Expenses = Net

                                          Equity                                                          Income

a.    na               -                    +                           +               na                +

b.    na               -                    -                           na              -                   -

c.     -               na                   -                           na              -                   -

d.    na               -                    +                           +               na                +

e.     -               na                   -                           na              -                   -

f.      +              na                   +                           +               na                +

g.    na              +                    -                            na             -                   -

h.    na              +                    -                            na             -                   -

why do organizations identify their opportunities and threats??​

Answers

Answer:

So they know what do when they fight back or attack

On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $13 million. The loss from operations of the segment during 2021 was $4.8 million. Pretax income from continuing operations for the year totaled $7.8 million. The income tax rate is 25%.
Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)

Answers

Answer:

Income from continuing operations before income taxes        7,800,000

Less Income tax expenses (7,800,000*25%)                            (1,950,000)

Income from continuing operations                                            5,850,000

Discontinued operations:  

Loss from operations of discontinued component                 (2,800,000)

Income tax benefit                                                                       700,000

Loss on discontinued operations                                             (2,100,000)

Net Income (loss)                                                                        3,750,000

Working

Loss from operations of discontinued component

= Gain from sale of semiconductor business - loss from operations of the segment

= (15 - 13 ) - 4.8

= -$2.8 million

Income tax benefit

= 2,800,000 * 25%

= $700,000

enter a question here

Answers

CAN U PLS HELP PLS THIS IS SO HATD OMG

Suppose you are a manager for a multinational company that produces a variety of beauty products. Heartland Company was founded in 1942 and began making shampoo and soap products. Heartland, headquartered in St. Louis, Missouri, now sells hair care, soap, and makeup products in 22 countries across the globe. Heartland holds the majority market share in the U.S. and is largely regarded as a trend-leader in hair and beauty products. As the Global Brand Vice President, you have been tasked with taking the brand to Brazil, considered to be a large cosmetics market in the next few years. The Brazilian cosmetics and hair care market is largely dominated by Belleza who currently holds a 60% market share. Belleza is marketed toward young, fashion-forward women. The second largest company, Botánico, holds just a 20% share of the market. Your research suggests that while Botánico has efficient manufacturing and distribution, young consumers see them as being a brand for their mothers and grandmothers.

Given the information above, what is the best market entry strategy for this company?

a. Partnership
b. Exporting
c. Outsourcing

Answers

Answer:

a. Partnership

Explanation:

Brazil is a market that can be tricky if exporting is used. Botanico is struggling at 2nd position with only 20% share but are efficient in manufacturing and distribution which can be utilized by Heartland. Heartland is known as trend setter which is something Botanica lacks currently to woo the young women and girls into buying their products A partnership would simply result that competitive edges of both the parties can be employed together to win over the market.

Some of the ledger accounts for the Sanderson Hardware Company are listed below. For each of the October 2021 transactions numbered 1 through 10 below, indicate by account name which accounts should be debited and which should be credited when preparing journal entries. The company uses the perpetual inventory system. Assume that appropriate adjusting entries were recorded at the end of September.


Accounts payable Equipment Inventory
Accounts receivable Cash Supplies
Supplies expense Prepaid rent Sales revenue
Retained earnings Notes payable Common stock
Deferred sales revenue Rent expense Salaries payable
Cost of goods sold Salaries expense Interest expense

Accound debited Accound credited
1. Paid a cash dividend.
2. Paid rent for the next three months.
3. Sold goods to customers on account.
4. Purchased inventory on account.
5. Purchased supplies for cash.
6. Paid employees wages for September.
7. Issued common stock in exchange for cash.
8. Collected cash from customers for goods sold in 3.
9. Borrowed cash from a bank and signed a note.
10. At the end of October, recorded the amount of supplies that had been used during the month.
11. Received cash for advance payment from customer.
12. Accrued employee wages for October.

Answers

Answer:

1. Paid a cash dividend.

Account Debited:  Retained earnings

Account Credited: Cash

2. Paid rent for the next three months.

Account Debited:  Prepaid rent

Account Credited: Cash

3. Sold goods to customers on account.

Account Debited:  Account receivables

Account Credited:  Sales revenue

4. Purchased inventory on account.

Account Debited:  Inventory

Account Credited: Accounts payable

5. Purchased supplies for cash.

Account Debited:  Supplies

Account Credited: Cash

6. Paid employees wages for September.

Account Debited:  Wages payable

Account Credited: Cash

7. Issued common stock in exchange for cash.

Account Debited:  Cash

Account Credited: Common stock

8. Collected cash from customers for goods sold in 3.

Account Debited:  Cash

Account Credited: Account receivables

9. Borrowed cash from a bank and signed a note.

Account Debited:  Cash

Account Credited: Notes payables

10. At the end of October, recorded the amount of supplies that had been used during the month.

Account Debited:  Supplies expenses

Account Credited: Supplies

11. Received cash for advance payment from customer.

Account Debited:  Cash

Account Credited: Unearned revenue

12. Accrued employee wages for October.

Account Debited:  Wages expenses

Account Credited: Wages payable

McKinney & Co. estimates its uncollectible accounts as a percentage of credit sales. McKinney made credit sales of $1,500,000 in 2019. McKinney estimates 2.5% of its sales will be uncollectible. At the end of the first quarter of 2020, McKinney & Co. reevaluates its receivables. McKinney’s management decides that $8,500 due from Mangold Corporation will not be collectible. This amount was previously included in the allowance account. On April 23, 2020, McKinney & Co. receives a check from Mangold Corporation for $8,500.

Required:
Prepare the journal entry to record the write-off for Mckinney.

Answers

Answer:

Debit Allowance for Doubtful Accounts for $8,500; 

Credit Accounts Receivable for $8,500.

Explanation:

The journal entry to record the write-off for Mckinney will look as follows:

McKinney & Co.

Journal Entry

Account title and explanation                  Dr ($)            Cr ($)              

Allowance for Doubtful Accounts           8,500  

Accounts Receivable                                                    8,500

(To record uncollectable amount due from Mangold Corporation.)      

Note that since the management of McKinney decided that $8,500 due from Mangold Corporation will not be collectible, this implies that the Accounts Receivable will reduce by that amount. Therefore, the entries to make to show the reduction in the amount of account receivale by $8,500 is to Debit Allowance for Doubtful Accounts for $8,500 and Credit Accounts Receivable for $8,500.

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