In early April 2020, an amendment to the annual budget for 2020 was approved by the city council for inflows and outflows in the Street Improvement Bond Debt Service Fund related to the bond issue. The debt service fund budget amendment provides for estimated other financing sources of $20,000 for the premium on bonds sold and estimated revenues of $12,500 for accrued interest on bonds sold; and appropriations in the amount of the one interest payment of $25,000 to be made during 2020. (The payment that is due on July 1, 2020.)
Required:
Record the budget for the Street Improvement Bond Debt Service Fund for year 2020.
Answers
Answer:
attached below
Explanation:
Given data :
Year : 2020
estimated other financing sources = $20,000 ( premium on bonds sold )
estimated revenues = $12500 ( accrued interest on bonds sold )
approximations in amount of one interest payment = $25,000 ( to be made during 2020 )
attached below is the Budget for the street improvement Bond debt service fund for year 2020
Related Questions
A corporation that transfers restricted stock to an employee as compensation may deduct the stock’s fair market value in the year of transfer even if the employee doesn’t recognize the value as gross income in the year of transfer.
A. True
B. False
Answers
During the current year, Comma Co. had outstanding: 25,000 shares of common stock; 8,000 shares of $20 par, 10% cumulative preferred stock; and 3,000 bonds that are $1,000 par and 9% convertible. The bonds were originally issued at par, and each bond was convertible into 30 shares of common stock. During the year, net income was $200,000, no dividends were declared, and the tax rate was 30%. What amount was Comma's basic earnings per share for the current year?
a. $7.55
b. $7.36
c. $8.00
d. $3.38
Answers
Answer:
b. $7.36
Explanation:
The computation of the basic earning per share is shown below;
Basic earnings per share
= (Net income - Preferred dividends) ÷ Outstanding common shares
= [$200,000 - (8000 × $20 × 10%)] ÷ 25,000
= ($200,000 - $16,000) ÷ 25,000
= $184,000 ÷ 25,000
= $7.36
Hence, the option b is correct
Cooper Company currently uses the FIFO method to account for its inventory but is considering a switch to LIFO before the books are closed for the year. Selected data for the year are:
Merchandise inventory, January 1 $1,430,000
Current assets 3,603,600
Total assets (operating) 5,720,000
Cost of goods sold (FIFO) 2,230,800
Merchandise inventory, December 31 (LIFO) 1,544,400
Merchandise inventory, December 31 (FIFO) 1,887,600
Current liabilities 1,144,000
Net sales 3,832,400
Operating expenses 915,200
1. Compute the current ratio, inventory turnover ratio, and rate of return on operating assets assuming the company continues using FIFO.
2. Repeat part (a) assuming the company adjusts its accounts to the LIFO inventory method.
Answers
Answer:
Cooper Company
1. FIFO:
Current ratio
= 3.15
Inventory turnover ratio
= 1.34
Rate of return on operating assets
= 12%
2. LIFO:
Current ratio
= 2.85
Inventory turnover ratio
= 1.73
Rate of return on operating assets
= 12.8%
Explanation:
a) Data and Calculations:
Merchandise inventory, January 1 $1,430,000
Current assets 3,603,600
Total assets (operating) 5,720,000
Cost of goods sold (FIFO) 2,230,800
Merchandise inventory, December 31 (LIFO) 1,544,400
Merchandise inventory, December 31 (FIFO) 1,887,600
Current liabilities 1,144,000
Net sales 3,832,400
Operating expenses 915,200
FIFO
Merchandise inventory, December 31 (FIFO) $1,887,600
Cost of goods sold (FIFO) 2,230,800
Goods available for sale $4,118,400
Merchandise inventory, January 1 1,430,000
Purchases $2,688,400
LIFO:
Goods available for sale $4,118,400
Merchandise inventory, December 31 (LIFO) 1,544,400
Cost of goods sold (LIFO) $2,574,000
Income Statements FIFO LIFO
Net sales $3,832,400 $3,832,400
Cost of goods sold (FIFO) 2,230,800 2,574,000
Gross profit $1,601,600 $1,258,400
Operating expenses 915,200 915,200
Net income $686,400 $343,200
Merchandise inventory, December 31 (LIFO) 1,544,400
Merchandise inventory, December 31 (FIFO) 1,887,600
Difference between FIFO and LIFO = 343,200
FIFO Difference LIFO
Current assets 3,603,600 343,200 3,260,400
Total assets (operating) 5,720,000 343,200 5,376,800
Cost of goods sold (FIFO) 2,230,800 2,574,000
Merchandise inventory, January 1 1,430,000 1,430,000
Merchandise inventory, December 31 1,887,600 1,544,400
Current liabilities 1,144,000 1,144,000
Average inventory 1,658,800 1,487,200
FIFO:
Current ratio = current assets/current liabilities
= $3,603,600/$1,144,000 = 3.15
Inventory turnover ratio = Cost of goods sold/Average Inventory
= $2,230,800/$1,658,800
= 1.34
Rate of return on operating assets = Net income/Total assets * 100
= $686,400/$5,720,000 * 100
= 12%
LIFO:
Current ratio = $3,260,400/$1,144,000
= 2.85
Inventory turnover ratio = $2,574,000/$1,487,200
= 1.73
Rate of return on operating assets = $686,400/$5,376,800 * 100
= 12.8%
Part U67 is used in one of Broce Corporation's products. The company's Accounting Department reports the following costs of producing the 15,400 units of the part that are needed every year.
Per Unit
Direct materials $2.30
Direct labor $3.30
Variable overhead $6.10
Supervisor's salary $6.60
Depreciation of special equipment $7.70
Allocated general overhead $4.80
An outside supplier has offered to make the part and sell it to the company for $27.00 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including direct labor, can be avoided. The special equipment used to make the part was purchased many years ago and has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company. If the outside supplier's offer were accepted, only $21,400 of these allocated general overhead costs would be avoided.
Required:
a. Prepare a report that shows the financial impact of buying part U67 from the supplier rather than continuing to make it inside the company.
b. Which alternative should the company choose?
Answers
Answer:
Broce Corporation
a. The Financial Impact of Buying Part U67 is as follows:
Differential Analysis:
Cost of buying from supplier = $415,800 (15,400 * $27)
Avoidable cost of making = 303,220
Differential cost for buying = $112,500
b. The company should choose to continue to produce the part internally.
Explanation:
a) Data and Calculations:
Production units for the year = 15,400
Per Unit Costs:
Direct materials $2.30
Direct labor $3.30
Variable overhead $6.10
Total variable costs $11.70
Supervisor's salary $6.60
Depreciation of special equipment $7.70
Allocated general overhead $4.80
Total fixed costs $19.10
Total costs $30.80
Outside supplier's offer per unit = $27
Avoidable costs:
Direct materials $2.30
Direct labor $3.30
Variable overhead $6.10
Supervisor's salary $6.60
Total avoidable variable costs $18.30 * 15,400 = $281,820
General overhead costs 21,400
Total avoidable costs = $303,220
Differential Analysis:
Cost of buying from supplier = $415,800 (15,400 * $27)
Avoidable cost of making = 303,220
Differential cost for buying = $112,500
The standards for product V28 call for 8.3 pounds of a raw material that costs $19.00 per pound. Last month, 2,200 pounds of the raw material were purchased for $41,360. The actual output of the month was 240 units of product V28. A total of 2,100 pounds of the raw material were used to produce this output.
The direct materials purchases variance is computed when the materials are purchased.
Required:
a. What is the materials price variance for the month?
b. What is the materials quantity variance for the month?
Answers
Answer:
Results are below.
Explanation:
To calculate the direct material price variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (19 - 18.8)*2,200
Direct material price variance= $440 favorable
Actual price= 41,360 / 2,200= $18.8
Now, we can determine the direct material quantity variance:
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (8.3*240 - 2,100)*19
Direct material quantity variance= $2,052 unfavorable
During the year, ABC. had the following cash flows: receipt from customers, $10,000; receipt from the bank for long-term borrowing, $6,000; payment to suppliers, $5,000; payment of dividends, $1,000, payment to workers, $2,000; and payment for machinery, $8,000. What amount would be reported for investing net cash flows on the Statement of Cash Flows (put a minus number in front if it is negative)
Answers
Answer:
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The following amounts were received by ABC throughout the course of the year: $10,000 from consumers; $6,000 from the bank for long-term borrowing; $5,000 to suppliers; $1,000 in dividends; $2,000 to employees; and $8,000 for machinery. The amount that would be reported for investment net cash flows is -8000.
What is meant by Cash Flow?A cash flow is a physical or fictitious flow of funds:
The phrase "cash flow" is typically used to represent payments that are anticipated to occur in the future, are thus unknown, and so need to be projected using cash flows;
A cash flow in its restricted sense is a payment (in a currency), especially from one central bank account to another;
A cash flow is determined by its time t, nominal amount N, currency CCY, and account A; symbolically, CF = CF (t,N,CCY,A).
Nonetheless, it is common to use the term "cash flow" in a less precise sense to describe (symbolic) payments into or out of a business, project, or financial product.
Learn more about Cash Flow, from :
brainly.com/question/27994727
#SPJ6
Consumption expenditures $ 4,150 Federal government purchases of goods and services 850 State and local government’s purchases 331 Investment 751 Proprietors income 150 Compensation of employees 4,080 Corporate profits 134 Taxes on corporate profits 23 Rental income 31 Capital consumption allowance 295 Indirect business taxes 130 Net interest 147 Exports 300 Imports 320 Undistributed corporate profits 111 Transfer payments 66 Personal taxes 45 Dividends 0 Income Earned from the Rest of the World 252 Income Earned by the Rest of the World 1,347 Social insurance taxes 222 Statistical discrepancy 5 Refer to Exhibit 7-1. What is the value of disposable income?
Answers
Answer:
The value of disposable income is $4,207
Explanation:
Dispossable income refers to the addition of income of an individual minus his taxes.
Therefore, the value of the value of disposable income can be calculated as follows:
Disposable income = Proprietors income + Compensation of employees + Rental income + Net interest + Transfer payments - Social insurance taxes - Personal taxes = $150 + $4,080 + $31 + $147 + $66 - $222 - $45 = $4,207
Therefore, the value of disposable income is $4,207.
You should consider a person's a. Grade in the class b. Personality before asking them to join your study group. C. All of these d. None of these
Answers
All of these
Hope it will helps you!
An auto repair shop orders cleaning rags in batches of 120 boxes. This inventory is depleted at a constant rate and new rags are ordered to arrive exactly when the on-hand inventory of rags reaches zero boxes. What is the average inventory level over time
Answers
Answer:
60
Explanation:
the computation of the average inventory level over time is given below:
As the order is placed only when the inventory level is zero
So, The average inventory level is
= (120 +0) ÷ 2
= 60
Hence, the average inventory level over time is 60
The same would be considered and relevant
Basically we take an average of it to determine the average inventory level
Leaders at ABC Corp. now encourage employees to experiment with new ideas. In particular, the executives emphasize that reasonable mistakes are tolerated and expected as part of the discovery process. Which of the following best describes what these leaders are trying to develop?
a. cross-pollination
b. a learning orientation
c. associative play
d. intuitive decision making
e. escalation of commitment
Answers
Answer:
b. a learning orientation
Explanation:
The learning orientation would be focused on the learning, its persistance, hard work, watching the situations that would result in performing the task in a better way and at the same time we would able to learn it from the given situation that consist of the challenges & efforts with respect to the work
Therefore as per the given situation, the option b is correct
During the first quarter, Francum Company incurs the following direct labor costs: January $55,200, February $51,000, and March $64,600. For each month, prepare the entry to assign overhead to production using a predetermined rate of 71% of direct labor cost.
Answers
Answer:
See below
Explanation:
Date General journal Debit Credit
Jan. Work in process $39,192
Manufacturing overhead $39,192
($55,200 × 71%)
Feb. Work in process $36,210
($51,000 × 71%)
Manufacturing overhead $36,210
March. Work in process $45,866
($64,600 × 71%)
Manufacturing overhead $45,866
Thomas believes that he has an NOL for the current year and wants to carry it back to a previous year and receive a tax refund. In determining his NOL, Thomas offset his business income by alimony payments he made to his ex-wife, contributions he made to his traditional Individual Retirement Account (IRA), and moving expenses he incurred. His reason for using these items in the NOL computation is that each item is a deduction for AGI.
Required:
Identify the relevant tax issues for Thomas
Answers
Answer:
The relevant tax issues for Thomas to consider are whether the amount of NOL would be reduced if ; payments made with regards to Alimony , Moving Expenses and contributions made to Traditional IRA are included .
Explanation:
The relevant tax issues for Thomas to consider are whether the amount of NOL would be reduced if ; payments made with regards to Alimony , Moving Expenses and contributions made to Traditional IRA are included .
according to rule : Non business deductions are limited in the Ongoing year's NOL hence Non business deductions made with regards to Alimony , Moving Expenses and contributions made to Traditional IRA are included the amount of NOL will reduce.
How do consumer preferences shape the market for livestock?
Answers
Answer:
The consumer preference is to have a meat that is leaner, and an equal amount of fat distributed throughout the meat.
Explanation:
This means that the cuts of meat that fit this description can be sold at a higher price than others.
Compute the payback period for each of these two separate investments: A new operating system for an existing machine is expected to cost $280,000 and have a useful life of five years. The system yields an incremental after-tax income of $80,769 each year after deducting its straight-line depreciation. The predicted salvage value of the system is $11,000. A machine costs $200,000, has a $15,000 salvage value, is expected to last seven years, and will generate an after-tax income of $44,000 per year after straight-line depreciation.
Answers
Answer and Explanation:
The computation of the payback period for each investment is shown below;
For Option 1
= Initial Investment ÷ Annual Cash Flow
= $280,000 ÷ $134,569
= 2.081 Year
Here Annual cash inflow is
= Net income + Depreciation
= $80,769 + (($280,000 - $11,000) ÷ 5)
= $134,569
For Option-2
= Initial Investment ÷ Annual Cash Flow
= $200,000 ÷ $70,429
= 2.84 Year
Here Annual cash inflow is
= Net income + Depreciation
= $44,000 + (($200,000 - $15,000) ÷ 7)
= $70,429
Suppose that Toyota operates two large plants: one in Japan and one in the United States. In the Japanese plant it takes Toyota 4 hours to produce a sedan and 3 hours to produce a truck. In the plant in the United States it take Toyota 6 hours to produce a sedan and 4 hours to produce a truck. This implies that ___________ has the absolute advantage in producing sedans and _____________ has the absolute advantage in producing trucks. Japan ; Japan Japan ; United States United States ; Japan United States ; United States no one ; Japan no one ; United States Japan ; no one United States ; no one no one ; no one
Answers
Answer: Japan ; Japan
Explanation:
Absolute advantage in the production of a good means that one is able to produce more of the good in a certain period of time. This can also mean that they take a shorter time to produce a single unit of a good.
Going by this definition, Japan has an absolute advantage in the production of both sedans and trucks because they take less time to produce both types of vehicles which means that they can produce more of both than the United States if given a certain period of time.
As part of its stock-based compensation package, International Electronics granted 24 million stock appreciation rights (SARs) to top officers on January 1, 2018. At exercise, holders of the SARs are entitled to receive stock equal in value to the excess of the market price at exercise over the share price at the date of grant. The SARs cannot be exercised until the end of 2021 (vesting date) and expire at the end of 2023. The $1 par common shares have a market price of $46 per share on the grant date. The fair value of the SARs, estimated by an appropriate option pricing model, is $3 per SAR at January 1, 2018. The fair value reestimated at December 31, 2018, 2019, 2020, 2021, and 2022, is $4, $3, $4, $2.50, and $3, respectively. All recipients are expected to remain employed through the vesting date.
Required:
1. Prepare the appropriate journal entry to record the award of SARs on January 1, 2018. Will the SARs be reported as debt or equity?
2. Prepare the appropriate journal entries pertaining to the SARs on December 31, 2018–December 31, 2021.
3. The SARs remain unexercised on December 31, 2022. Prepare the appropriate journal entry on that date.
4. The SARs are exercised on June 6, 2023, when the share price is $50. Prepare the appropriate journal entry(s) on that date.
Answers
Answer:
1. January 1, 2018
No Journal entry
The SARs will be reported as EQUITY
2. December 31, 2018
Dr Compensation expense $18,000,000
Cr Paid in capital SAR plan $18,000,000
December 31, 2019
Dr Compensation expense $18,000,000
Cr Paid in capital SAR plan $18,000,000
December 31, 2020
Dr Compensation expense $18,000,000
Cr Paid in capital SAR plan $18,000,000
December 31, 2023
Dr Compensation expense $18,000,000
Cr Paid in capital SAR plan $18,000,000
3. December 31, 2022
No Journal entry
4. June 6, 2023
Dr Paid in capital SAR plan $72,000,000
Cr Common stock $1,920,000
Cr Paid in capital in excess of Par $70,080,000
Explanation:
1. Preparation of the appropriate journal entry to record the award of SARs on January 1, 2018.
January 1, 2018
No Journal entry
Based on the information The SARs will be reported as EQUITY reason been that IE which full meaning is INTERNATIONAL ELECTRONICS
will tend to settle in shares of the INTERNATIONAL ELECTRONICS stock during exercise.
2. Preparation of the appropriate journal entries pertaining to the SARs on December 31, 2018–December 31, 2021.
December 31, 2018
Dr Compensation expense $18,000,000
Cr Paid in capital SAR plan $18,000,000
(3*$24 million/4)
December 31, 2019
Dr Compensation expense $18,000,000
Cr Paid in capital SAR plan $18,000,000
(3*$24 million/4)
December 31, 2020
Dr Compensation expense $18,000,000
Cr Paid in capital SAR plan $18,000,000
(3*$24 million/4)
December 31, 2023
Dr Compensation expense $18,000,000
Cr Paid in capital SAR plan $18,000,000
(3*$24 million/4)
3. Preparation of the appropriate journal entry on that date.
December 31, 2022
No Journal entry
4. Preparation of the appropriate journal entry(s) on June 6, 2023
June 6, 2023
Dr Paid in capital SAR plan $72,000,000
(3*$24 million)
Cr Common stock $1,920,000
[($50-$46)*$24,0000/$50]
Cr Paid in capital in excess of Par $70,080,000
($72,000,000-$1,920,000)
Ficus, Inc. began business on March 1 of the current year, and elected to file its income tax return on a calendar-year basis. The corporation incurred $800 in organizational expenditures. Assuming the corporation does not elect to expense but chooses to amortize the costs over 180 months, the maximum allowable deduction for amortization of organizational expenditures in the current year is: a.$44.44 b.$800.00 c.$4.44 d.$53.28 e.None of these choices are correct.
Answers
Answer:
a. $44.44
Explanation:
The amortization will be allowed for 10 months in the year (March-December) as the return is filed on a calendar year basis. The deduction allowed per month $4.44 ($800 / 180).
The maximum allowable deduction for amortization of organizational expenditures in the current year is $44.44 ($4.44*10 months).
Chamberlain Enterprises, Inc. reported the following receivables in its December 31, 2020, year-end balance sheet:
Current assets:
Accounts receivable, net of $24,000 in allowance for
uncollectible accounts $218,000
Interest receivable 6,800
Notes receivable 260,000
Additional information:
1. The notes receivable account consists of two notes, a $120,000 note and a $200,000 note. The $120,000 note is dated October 31, 2020, with principal and interest payable on October 31, 2021. The $200,000 note is dated March 31, 2020, with principal and 8% interest payable on March 31, 2021.
2. During 2021, sales revenue totaled $2,020,000, $1,880,000 cash was collected from customers, and $31,000 in accounts receivable were written off. All sales are made on a credit basis. Bad debt expense is recorded at year-end by adjusting the allowance account to an amount equal to 10% of year-end gross accounts receivable.
3. On March 31, 2021, the $200,000 note receivable was discounted at the Bank of Commerce. The bank’s discount rate is 8%. Chamberlain accounts for the discounting as a sale.
Required:
1. In addition to sales revenue, what revenue and expense amounts related to receivables will appear in Chamberlain’s 2021 income statement?
2. What amounts will appear in the 2021 year-end balance sheet for accounts receivable?
3. Calculate the receivables turnover ratio for 2021.
Answers
Answer:
Chamberlain Enterprises, Inc.
1. In addition to sales revenue, the revenue and expense amounts related to the receivables that will appear in Chamberlain’s 2021 income statement
Bad debts expense $39,700
Interest revenue on the $200,000 notes $4,000
Bank Finance Fee $16,000
2. The amounts that will appear in the 2021 year-end Balance Sheet for accounts receivable (net) is:
Accounts receivable $327,000
Allowance for uncollectible -32,700
Net accounts receivable $294,300
3. The receivables turnover ratio for 2021:
= 5.2 times
Explanation:
a) Data and Calculations:
December 31, 2020
Current assets:
Accounts receivable, net of $24,000 in allowance for
uncollectible accounts $218,000
Interest receivable 6,800
Notes receivable 260,000
Total receivables $484,800
Notes receivable:
October 31, Note = $60,000 payable on October 31, 2021
March 31, 2020 Note = $200,000 payable on March 31, 2021
T-accounts:
Accounts receivable
Date Account Titles Debit Credit
12/31/20 Beginning balance $218,000
12/31/21 Sales revenue 2,020,000
12/31/21 Cash $1,880,000
12/31/21 Allowance for uncollectibles 31,000
12/31/21 Ending balance 327,000
Interest receivable
Date Account Titles Debit Credit
12/31/20 Beginning balance $6,800
Notes receivable
Date Account Titles Debit Credit
12/31/20 Beginning balance $260,000
Allowance for uncollectible accounts
Date Account Titles Debit Credit
12/31/20 Beginning balance $24,000
12/31/21 Accounts receivable $31,000
12/31/21 Bad debts expense 39,700
12/31/21 Ending balance 32,700
Interest on $200,000 notes receivable at 8%:
= $16,000 per year
= $1,333 monthly
Interest due on the $200,000 note, for January 1, 2021 to March 31, 2021 = $4,000
Transactions Analysis:
Accounts receivable $2,020,000 Sales Revenue $2,020,000
Cash $1,880,000 Accounts receivable $1,880,000
Allowance for Uncollectible Accounts $31,000 Accounts receivable $31,000
Bad debts expense $39,700 Allowance for Uncollectible Accounts $39,700
Bank Finance Fee $16,000 ($200,000 * 8%)
Receivables in 2020 = $484,800
Receivables in 2021 = 294,300
Total receivables = $779,100
Average receivables = $389,550 ($779,100/2)
Credit Sales/Average receivable
= $2,020,000/$389,550
= 5.2 times.
an unmarried taxpayer, has wages of $45,000. He has a significant amount of income from dividends and interest and therefore expects to have a federal income tax liability of $18,000. His total federal income tax withholding for the year is $9,500. Randy had $100,000 of adjusted gross income and a federal tax liability of $11,000 on his 2017 return. To avoid a penalty for underpayment of estimated taxes, what is the minimum amount of total estimated tax that Randy must pay in 2018
Answers
Answer: $8500
Explanation:
Since the total amount of estimated tax liability for 2018 is $18000 and the tax withholding is $9500$, then the balance tax payable for 2018 will be:
= $18000 - $9500
= $8500
Therefore, the minimum amount of total estimated tax that Randy must pay in 2018 in order to avoid a penalty for underpayment of estimated taxes will be $8500
An ARMA(3, 0) model is fit to the following quarterly time series: Year Quarter 1 Quarter 2 Quarter 3 Quarter 4 2018 3.53 1.33 1.85 0.61 2019 0.98 3.61 3.44 3.38 2020 2.91 2.12 4.62 2.93 The estimated coefficients are: ar1 ar2 ar3 intercept 0.252 0.061 -0.202 2.637 Forecast the value for Quarter 1 of 2021. Give full explanation on how you arrived to your answer. Show calculations. A. Less that 3.00 B. At least 3.00, but less than 3.25 C. At least 3.25, but less than 3.50 D. Atleast 3.50, but less than 3.75 E. At least 3.75.
Answers
Answer: A. Less that 3.00
Explanation:
We will essentially be using a multiple regression formula to predict the value of the first quarter of 2021.
Equation is:
Y₂₀₂₁ = Intercept + ar1X₁ + ar2X₂ + ar3X₃
Y = Quarter 1, 2021
X₁ = Quarter 1, 2018
X₂ = Quarter 1, 2019
X₃ = Quarter 1, 2020
= 2.637 + (0.252 * 3.53) + (0.061 * 0.98) + (-0.202 * 2.91)
= 2.99852
This is less than 3 so the first option is correct.
Sweet Acacia Industries closes its books on its July 31 year-end. The company does not make entries to accrue for interest except at its year-end. On June 30, the Notes Receivable account balance is $27,200. Notes Receivable include the following.
Date Maker Face Value Term Maturity Date Interest Rate
April 21 Coote Inc. $5,600 90 days July 20 8%
May 25 Brady Co. 8,400 60 days July 24 10%
June 30 BMG Corp. 13,200 6 months December 31 6%
During July, the following transactions were completed.
July 5 Made sales of $4,310 on Sweet Acacia Industries credit cards.
14 Made sales of $600 on Visa credit cards. The credit card service charge is 3%.
20 Received payment in full from Coote Inc. on the amount due.
24 Received payment in full from Brady Co. on the amount due.
Journalize the July transactions and the July 31 adjusting entry for accrued interest receivable. (Interest is computed using 360 days; omit cost of goods sold entries.)
Answers
Answer:
Sweet Acacia Industries
Journal Entries:
July 5: Debit Cash $4,310
Credit Sales Revenue $4,310
To record sales on Sweet Acacia credit cards.
July 14: Debit Cash $582
Debit Service Charge Expense $18
Credit Sales Revenue $600
To record sales made on Visa credit cards with service charge of 3%.
July 20: Debit Cash $5,712
Credit Notes Receivable (Coote Inc.) $5,600
Credit Interest Revenue $112
To record the receipt of full payment with interest.
July 24: Debit Cash $8,540
Credit Notes Receivable (Brady Co.) $8,400
Credit Interest Revenue $140
To record the receipt of full payment with interest.
July 31: Debit Interest Receivable (BMG Corp.) $66
Credit Interest Revenue $66
To accrue interest revenue for 30 days.
Explanation:
a) Data and Calculations:
June 30 balances of Notes Receivable:
Date Maker Face Value Term Maturity Date Interest Rate
April 21 Coote Inc. $5,600 90 days July 20 8%
May 25 Brady Co. 8,400 60 days July 24 10%
June 30 BMG Corp. 13,200 6 months December 31 6%
July 5: Cash $4,310 Sales Revenue $4,310
July 14: Cash $582 Interest Expense $18 Sales Revenue $600
July 20: Cash $5,712 Notes Receivable (Coote Inc.) $5,600 Interest Revenue $112 ($5,600 * 8% * 90/360)
July 24: Cash $8,540 Notes Receivable (Brady Co.) $8,400 Interest Revenue $140 ($8,600 * 10% * 60/360)
July 31: Interest Receivable (BMG Corp.) $66 Interest Revenue $66 ($13,200 * 6% * 30/360)
Hershberger's Farms plans to mix two types of food to make a mix of low cost feed for the animals in his farm. A bag of food costs $10 and contains 40 units of protein, 20 units of minerals and 10 units of vitamins. A bag of food B costs $12 and contains 30 units of proteins, 20 units of minerals and 30 units of vitamins. Daily minimum requirements consist of 150 units of proteins, 90 units of minerals and 60 units of vitamins.
a. Based on the lowest possible cost, how many bags of food A and food B should be consumed by the animals each day?
b. What is the overall cost? $46.50
c. Was there any unused resources?
Answers
Answer:
Following are the responses to the given choices:
Explanation:
For point a:
It is possible to say that as the material unit in either bag are same, the minimum bag number is 90 /20 = 4.5
rounded off=Minimum 5 bags
They will try to use all of these bags as the cost of bag A is poor.
When we have five bags of protein A, therefore the vitamin requirements were n’t fulfilled.
Currently, using 4 bags of A and 1 B bag, protein, vitamin and mineral obligations are fulfilled. They all are met.
Therefore, 4 food bags A and 1 food bag B need to be consumed due to the lowest cost.
For point b:
Cost total:
[tex]=( 4 \times 10 ) + ( 1 \times 12)\\\\=40 +12\\\\= \$52[/tex]
For point c:
The following are unused resources:
[tex]\text{Protein = Bag A + Bag B - Consumption}\\\\= 160 + 30 - 150\\\\=190-150\\\\= 40\\\\Minerals = 10 \\\\vitamins = 10[/tex]
Sunland Company had the following department data: Physical Units Work in process, beginning 0 Completed and transferred out 90900 Work in process, ending 7800 Materials are added at the beginning of the process. What is the total number of equivalent units for materials during the period?
Answers
Answer:
Equivalent units of production= 98,700
Explanation:
Giving the following information:
Physical Units Work in process, beginning 0
Completed and transferred out 90,900
Work in process, ending 7,800
Materials are added at the beginning of the process.
To calculate the equivalent units, we need to use the following formula:
Units completed in the period + Equivalent units in ending inventory WIP (units*%completion) = Equivalent units of production
Equivalent units of production= 0 + 90,900 + 7,800*1
Equivalent units of production= 98,700
Because the materials are added at the beginning of the process, the percentage of completion is 100%.
Park Place Company reported cost of goods sold of $140,000 for the year 2020. Park Place also reported the following amounts on its balance sheets. Jan. 1, 2020Dec. 31, 2020 Inventory$25,000$27,500 Accounts payable15,00014,500 What amount would be reported as cash paid to suppliers in the operating activities section of the statement of cash flows using the direct method
Answers
Answer:
the cash paid to supplier is $143,000
Explanation:
The computation of the cash paid to the supplier is given below;
Purchases = Ending inventory + cost of goods sold - beginning inventory
= $27,500 + $140,000 - $25,000
= $142,500
Now the Cash paid to supplier is
= Beginning account payable + purchases - ending account payable
= $15,000 + $142,500 - $14,500
= $143,000
hence the cash paid to supplier is $143,000
Whirlwind mowers manufacturers and sells power lawnmower still public and distributes the products through its own dealers. Andrew is a homeowner who has purchased a power mower from an authorized dealer on the basis of the dealer's recommendation that the mower is the best one available to the job. Andrew was cutting his lawn when the mower blade flew off and seriously injured his leg.
Required:
a. Andrew sues Whirlwind Mowers and asks for damages based on negligence in producing the power mower. Is Whirlwind Mowers guilty of negligence? Explain your answer.
b. The doctrine of res ipsa loquitur can often be applied to cases of this type. Show how this doctrine can be applied to this case. Your answer must include a definition of res ipsa loquitur .
c. Explain the various types of damages that Andrew might receive if Whirlwind Mowers is found guilty of negligence.
Answers
Answer:
A) Yes Whirlwind mowers are guilty
B) If
The negligence causes an injury event occurred due to the negligence applicant/defendant has an exclusive ownership of the equipmentC) Compensative damages : special and general
Explanation:
A)
Andrew can sue whirlwind mowers and claim damages for production negligence ( i.e. not following the standard of care ) as enshrined in the doctrine of " res ipsa loquitur " hence Whirlwind mowers are guilty
B)
"res ipsa loquitur ." means the thing speaks for itself and this doctrine can be applied to this case following that the:
The negligence causes an injury event occurred due to the negligence applicant/defendant has an exclusive ownership of the equipmentc) The various types of damages
Compensative damages ( divided into 2 )
i) special damages which includes hospital expenses and other properly documented damages ii) general damages : includes damages that are non-measurable damages
Nona Curry started her own consulting firm, Curry Consulting Inc., on May 1, 2017. The following transactions occurred during the month of May.
May 1 Stockholders invested $15,000 cash in the business in exchange for common stock.
2 Paid $600 for office rent for the month.
3 Purchased $500 of supplies on account.
5 Paid $150 to advertise in the County News.
9 Received $1,400 cash for services performed.
12 Paid $200 cash dividend.
15 Performed $4,200 of services on account.
17 Paid $2,500 for employee salaries.
20 Paid for the supplies purchased on account on May 3.
23 Received a cash payment of $1,200 for services performed on account on May 15.
26 Borrowed $5,000 from the bank on a note payable.
29 Purchased office equipment for $2,000 paying $200 in cash and the balance on account.
30 Paid $180 for utilities.
Instructions
(a) Show the effects of the previous transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year.
Assets = Liabilities +
Stockholders' Equity Date Cash + Accounts Receivable + Supplies + Equipment=Notes Payable+Accounts Payable + Common Stock + Retained Earnings Revenues ? Expenses ? Dividends
Answers
The following table contains statements that provide some analysis of policies that address globalization.
Categorize each statement as positive or normative.
1-In the past decade, U.S. companies have outsourced millions of jobs overseas.
2-Companies that outsource jobs are acting immorally.
3- If the U.S. government were to institute higher tariffs on imports, companies would stop outsourcing jobs.
4-The U.S. government should institute higher tariffs on imports.
I need help in this problem. that what I got: 1-Positive 2- Normative 3- postive 4- Normative
Is that correct??
Answers
Answer:
Positive statement
Normative statement
Positive statement
Normative statement
Explanation:
Positive Economics is objective and statements are usually based on facts and economic theory. They can be tested.
For example, -In the past decade, U.S. companies have outsourced millions of jobs overseas - is a statement that can be verified with data
Normative economics is based value judgements, opinions and perspectives. For example, -Companies that outsource jobs are acting immorally - is subject to opinion. Some would agree and some would not
Paige is a scratch golfer, former Division I college golf star and past member of the LPGA tour. She is well-known for her ability to teach golf techniques and is often hired to teach golf clinics. Beatriz was a less successful golf clinic consultant who was just starting out and was hired to run a clinic for Par Golf Promotions. Beatriz was nervous about the clinic because it was her first and she asked Paige if she could fill in for her and Paige agreed. What is this transfer called and will it be allowed under the law of contracts
Answers
Answer:
This contract transfer is called a delegation. It will be allowed under the law of contracts, provided there is no provision or contract term in the original contract forbidding such transfer.
Explanation:
A delegation involves the appointment of Paige to perform Beatriz's duties under the golf clinic contract. This transfer is distinguishable from a contract assignment, which involves the transfer of the contract rights and obligations by Beatriz (the assignor) to Paige (the assignee). A transfer by delegation does not allow the assignee to assume all the obligations and rights but to specifically perform a duty.
Please select the proper term in each of the descriptions. Because of the existence of certain types of market failure, employers can still engage in and not necessarily lose profits. As an individual allocates their time, they face a trade-off between and work. Employers have some control over and adjust them in order to compensate for the danger or unpleasantness of a job and help contribute to certain types of market failure. Not all markets are perfectly competitive, due to the presence of , which advocates for better salaries and working conditions on behalf of their members.
Answers
Answer:
Because of the existence of certain types of market failure, employers can still engage in DISCRIMINATION and not necessarily lose profits.
Due to the existence of market failures like asymmetric information held by the employers, they can be able to discriminate in the wages they pay to employees such that they do not lose profit.
As an individual allocates their time, they face a trade-off between LEISURE and work.
An individual spends their time between leisure and work and they need to find a trade-off between the two that they are comfortable with because more hours allocated to one means less hours to the other.
Employers have some control over WAGES and adjust them in order to compensate for the danger or unpleasantness of a job and help contribute to certain types of market failure.
As a result of employers adjusting wages to suit the job characteristics or to entice employees, the job can contribute to market failure if the wages being paid are simply too high for that position.
Not all markets are perfectly competitive, due to the presence of UNIONS, which advocates for better salaries and working conditions on behalf of their members.
Unions campaign for their members to get better salaries and working conditions which might not be representative of the contribution of the job which leads to a situation where the market is no longer competitive because the tradeoff is not balanced.
Several years ago, Nipher paid $70,000 to purchase equipment to use in its business. This year, it sold the equipment for $76,500. Accumulated MACRS depreciation through date of sale was $18,000. Determine the amount and character of Nipher's gain recognized. Group of answer choices $18,000 ordinary gain and $6,500 Section 1231 gain $24,500 Section 1231 gain $18,000 ordinary gain and $6,500 capital gain $24,500 ordinary gain
Answers
Answer:
$18,000 ordinary gain and $6,500 Section 1231 gain
Explanation:
Calculation to Determine the amount and character of Nipher's gain recognized.
Based on the information given we were told that the Accumulated MACRS depreciation was the amount of $18,000 which means that the ORDINARY INCOME will be $18,000 as well as $6,500 SECTION 1231 GAIN Calculated as:
Gain= Fair Value of Equipment -Book value of Equipment
Gain=$76,500-$70,000
Gain=$6,500
Therefore the amount and character of Nipher's gain recognized will be $18,000 ordinary gain and $6,500 Section 1231 gain