Answer:
Modern Movables Corporation
Statement of cash flows
Cash flows from investing activities:
Proceeds from sale of equipment $6,894
Purchase of equipment ($901)
Sale of investments $137
Net cash from investing activities $6,130
Cash flows from financing activities:
Proceeds from issuance of common stock $14
Borrowings under line of credit (bank) $1,447
Payments to reduce notes payable ($49 )
Dividends paid ($280 )
Net cash from financing activities $1,132
Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead cost. The company assigns an overhead cost to jobs using the predetermined overhead rate of $18.40 per direct labor-hour. During May, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance $8,500
Purchased during the month $38,000
Used in production $39,300
Labor:
Direct labor-hours worked during the month 1,900
Direct labor cost incurred $24,510
Actual manufacturing overhead costs incurred $33,300
Inventories:
Raw materials, May 30
Work in process, May 30 $16,937
Work in process inventory on May 30 contains $3,741 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The entry to dispose of the underapplied or overapplied manufacturing overhead cost for the month would include a:________.
a: credit of $5,336 to Manufacturing Overhead.
b: credit of $1,660 to Manufacturing Overhead.
c: debit of $5,336 to Manufacturing Overhead.
d: debit of $1,660 to Manufacturing Overhead.
Accounting entries for adjustment of overhead expenses.
Generally overheads are applied to various jobs on a predetermined basis. But actual overheads incurred can be more than/ less than predetermined overhead costs. To adjust this difference journal entries are made at the end of the period.
Answer:
The answer is "Option b".
Explanation:
The value of Applied overhead:
[tex]= 18.40 \times 1900 \\\\ = 34960[/tex]
The Actual overhead:
[tex]= 33300[/tex]
The Overlapping overhead = Applied overhead- Actual overhead
[tex]= 34960-33300\\\\= 1660[/tex]
Journal entry:
Date and explanation account Dr. Cr.
Overhead production 1600
goods sold at prices 1600
(Overcast overhead is available to records)
Consider the markets for three products below. Indicate which characteristics of a competitive market are met by these markets.
Market: gasoline
a. Large number of buyers unanswered
b. Standardized good unanswered
c. Full information unanswered
d. No transaction cost unanswered
e. Participants are price takers unanswered
Market: barbershop haircuts
a. Large number of buyers unanswered
b. Standardized good unanswered
c. Full information unanswered
d. No transaction cost unanswered
e. Participants are price takers unanswered
Market: bicycles
a. Large number of buyers unanswered
b. Standardized good unanswered
c. Full information unanswered
d. No transaction cost unanswered
e. Participants are price takers
Answer:
Market: gasoline (monopolistic competition with few sellers and many buyers)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Market: barbershop haircuts (monopolistic competition with a lot of sellers and many buyers, but differentiated service)
a. Large number of buyers
d. No transaction cost
e. Participants are price takers
Market: bicycles (resembles a perfect competition market)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Explanation:
No market provides full information to all participants. The closest you can get are some markets where commodities are traded and the price is set be certain exchange institutions. E.g. the Chicago Mercantile Exchange sets the price of agricultural commodities in the US, and most trading companies follow that price but variations still exist (even though they are minimum).
It is not possible for all the consumers of gasoline, haircuts or bicycles to know the exact price of all the goods the services since the price varies from one seller to another. Even if they are part of a retail chain, the price varies. Full information only exists in theoretical models, it doesn't exist in the real world.
Market: gasoline (monopolistic competition with few sellers and many buyers)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Market: barbershop haircuts (monopolistic competition with a lot of sellers and many buyers, but differentiated service)
a. Large number of buyers
d. No transaction cost
e. Participants are price takers
Market: bicycles (resembles a perfect competition market)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Explanation:
No market provides full information to all participants. The closest you can get are some markets where commodities are traded and the price is set be certain exchange institutions. E.g. the Chicago Mercantile Exchange sets the price of agricultural commodities in the US, and most trading companies follow that price but variations still exist (even though they are minimum).
It is not possible for all the consumers of gasoline, haircuts or bicycles to know the exact price of all the goods the services since the price varies from one seller to another. Even if they are part of a retail chain, the price varies. Full information only exists in theoretical models, it doesn't exist in the real world.
Cute Camel Woodcraft Company’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year.
1. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT).
2. The company’s operating costs (excluding depreciation and amortization) remain at 60% of net sales, and its depreciation and amortization expenses remain constant from year to year.
3. The company’s tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT).
4. In Year 2, Cute Camel expects to pay $100,000 and $1,759,500 of preferred and common stock dividends, respectively.
Complete the Year 2 income statement data for Cute Camel.
Cute Camel Woodcraft Company
Income Statement for Year Ending December 31
Year 1 Year 2 (forecasted)
Net sales $15,000,000
Less: Operating costs, except
depreciation and amortization 9,000,000
Less: Depreciation and
amortization expenses 600,000 600,000
Operating income (or EBIT) $5,400,000
Less: Interest expense 540,000
Pre-tax income (or EBT) 4,860,000
Less: Taxes (25%) 1,215,000
Earnings after taxes $3,645,000
Less: Preferred stock dividends 100,000
Earnings available to
common shareholders 3,545,000
Less: Common stock dividends 1,458,000
Contribution to retained
earnings $2,087,000 $2,539,250
Given the results of the previous income statement calculations, complete the following statements:
• In Year 2, if Cold Goose has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive____in annual dividends.
• If Cold Goose has 400,000 shares of common stock issued and outstanding, then the firm’s earnings per share (EPS) is expected to change from_____in Year 1 to_____in Year 2.
• Cold Goose’s earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from_____in Year 1 to_____in Year 2.
• It is_____to say that Cold Goose’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual contribution to retained earnings, $3,485,500 and $4,284,812, respectively. This is because_____of the items reported in the income statement involve payments and receipts of cash.
Answer:
A. Preferred share= $20 per share in annual dividend
B. The firm’s earnings per share (EPS) is expected to change from 8.8625 in Year 1 to 10.7468 in Year 2
C. EBITDA value changed from $6,000,000 in Year 1 to $7,500,000 in Year 2
D. It is CORRECT to say that Cute Camel’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual contribution to retained earnings $2,087,000 and $2,539,250 repectively . This is because RECONCILIATION of the items that was reported in the income statement involve both payments and the receipts of cash
Explanation:
Preparation of Income statement for the year ending December 31
FIrst step is to prepare the forecasted income statement for Year 2
Cute Camel Woodcraft company
Income statement for the year ending December 31
Year 1 Year 2 (Forecasted)
Net sales$15,000,000 18,750,000
(15,000,000 * 125%=18,750.000)
Less: Operating costs, except depreciation and amortization
9,000,000 11,250,000
(18,750,000 * 60%=11,250,000)
Less: Depreciation and amortization expenses
600,000 600,000
Operating income (or EBIT)
$5,400,000 6,900,000
(15,000,000-9,000,000-600,000=5,400,000)
(18,750,000-11,250,000-600,000=6,900,000)
Less: Interest expense
540,000 1,035,000
(6,900,000 * 15%=1,035,000)
Pre-tax income (or EBT)
4,860,000 5,865,000
($5,400,000 -540,000=4,860,000)
(6,900,000 -1,035,000=5,865,000)
Less: Taxes (25%)
1,215,000 1,466,250
(5,865,000 * 25%=1,466,250)
Earnings after taxes
$3,645,000 4,398,750
(4,860,000 -1,215,000=$3,645,000)
(5,865,000-1,466,250=4,398,750)
Less: Preferred stock dividends
100,000 100,000
Earnings available to common shareholders
3,545,000 4,298,750
($3,645,000-100,000=3,545,000)
( 4,398,750-100,000=4,298,750)
Less: Common stock dividends
1,458,000 1,759,500
Contribution to retained earnings
$2,087,000 $2,539,250
(3,545,000-1,458,000=$2,087,000)
(4,298,750-1,759,500=$2,539,250)
A. In Year 2, each preferred share should expect to receive $20 per share in annual dividend calculated as :
Preferred share= 100,000/5000
Preferred share= $20 per share in annual dividend
B. The firm’s earnings per share (EPS) is expected to change from 8.8625 in Year 1 to 10.7468 in Year 2 Calculated as:
Year 1 earnings per share=3,545,000/400,000 Year 1 earnings per share= 8.8625
Year 2 earnings per share=4,298,750/400,000
Year 2 earnings per share= 10.7468
C. EBITDA value changed from $6,000,000 in Year 1 to $7,500,000 in Year 2 calculated as:
Year 1 (EBITDA)=5,400,000 + 600,000
Year 1 (EBITDA)= $6,000,000
Year 2 (EBITDA)= 6,900,000 + 600,000
Year 2 (EBITDA) = $7500,000
D. It is CORRECT to say that Cute Camel’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual contribution to retained earnings $2,087,000 and $2,539,250repectively . This is because RECONCILIATION of the items that was reported in the income statement involve both payments and the receipts of cash
Shannon’s Brewery is a newly opened micro-brewery of craft beers located about a mile from Samantha Springs in Keller, Texas. According to Shannon Carter, (owner, founder, and brew master) Samantha Springs "is an exceptional water source." "It’s surrounded by a very unique rock formation that has very, very hard compressed rocks that have been hollowed out with this very fine sand. The water travels for miles, and the end product is this filtered water that is just phenomenal." Shannon Carter crafts what the brew master calls "wholesome beers" made with the highest quality, non-GMO grains and malts available and brewed using techniques garnered from his Irish heritage. Shannon’s mission statement closely reflects this philosophy. According to Shannon Carter:
Our award-winning beer is brewed with the best stuff on earth: pure spring water, whole grain, whole flower hops and a whole lotta love! For us, "brewed with the best stuff on earth," is much more than a saying. it’s a guiding principle. Paramount to this commitment is our multi-step fire-brewed process.
Required:
What makes Shannon’s beer great?
Answer:
Marketing Mix
Explanation:
What makes Shannon's beer great is basically her Marketing Mix. This combination of aspects is what ultimately makes Shannon's beer unique and attracts a large number of customers which makes it very profitable. This includes a combination of a unique beer recipe with high-quality ingredients, a top-notch mission statement, dedicated marketing that focuses on the organic and wholesome features of the product, and lastly a dedicated customer base that loves all of these features and purchases the product. This marketing mix sets Shannon's Beer apart from the competition and makes it great.
Match the qualitative characteristics below with the following statements.1. Timeliness2. Completeness3. Free from error4. Understandability5. Faithful representation6. Relevance7. Neutrality8. Confirmatory valuea. Quality of information that assures users that information represents the economic phenomena that it purports to represent.b. Information about an economic phenomenon that corrects past or present expectations based on previous evaluations.c. The extent to which information is accurate in representing the economic substance of a transaction.d. Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent.e. Quality of information that allows users to comprehend its meaning.
Answer:
1. Comparability.
2. Predictive value.
3. Free from error.
4. Completeness.
5. Faithful representation.
Explanation:
a. Comparability: Quality of information that assures users that information represents the economic phenomena that it purports to represent.
b. Predictive value: Information about an economic phenomenon that corrects past or present expectations based on previous evaluations.
c. Free from error: The extent to which information is accurate in representing the economic substance of a transaction.
d. Completeness: Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent.
e. Faithful representation: Quality of information that allows users to comprehend its meaning
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 36,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $82,100 consisted of $58,000 of direct materials costs and $24,100 of conversion costs.
During the month, the forming department started 520,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 35% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department is as follows:
Beginning work in process inventory $82,100
Direct materials added during the month 1,942,930
Conversion added during the month 1,359,730
1A. Calculate the equivalent units of production for the forming department.
1B. Calculate the costs per equivalent unit of production for the forming department.
1C. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.
Answer:
beginning WIP 36,000
$58,000 of direct materials costs
$24,100 of conversion costs
units started 520,000
units finished 516,000
materials added during the month $1,942,930
conversion added during the month $1,359,730
ending WIP 40,000
materials 85% complete, EU = 34,000
conversion 35%, EU = 14,000
total equivalent units
materials = 516,000 + 34,000 = 550,000
conversion = 516,000 + 14,000 = 530,000
cost per equivalent unit
materials = ($58,000 + $1,942,930) / 550,000 = $3.63805
conversion = ($24,100 + $1,359,730) / 530,000 = $2.611
total = $6.24905
costs assigned to
units transferred out = $6.24905 x 516,000 = $3,224,511
ending WIP = (34,000 x $3.63805) + (14,000 x $2.611) = $160,249
You are in the business of producing and selling snow shovels, and you need to determine how many shovels should be produced during each of the next four quarters to meet the following demands: 11,000 shovels in quarter 1; 48,000 shovels in quarter 2; 64,000 shovels in quarter 3; and 15,000 shovels in quarter 4.
Due to labor limitations, at most 65,000 shovels can be produced in any one quarter at a cost of $5/shovel. Additionally, a fixed cost of $30,000 must be paid for any quarter in which shovels are produced. You may assume that any shovels produced during a quarter can be used to satisfy demand for that quarter. At the end of the quarter, a holding cost of $0.50 per shovel in inventory is incurred. Currently, you have no shovels in inventory.
Required:
Formulate an integer-linear program to determine a production schedule that minimizes the sum of production and inventory costs over the next four quarters.
Answer:
Quarter Production
Q1 11000
Q2 62000
Q3 65000
Q4 0
This will generate lower production and inventory cost as it savesthe fixed cost of 30,000 if we produce in the fourth quarter.
Explanation:
First, we construct the formula for the relevant cost:
Holding Cost: $0.50 per shovel
$0.50 x 2 x (Q2-48,000) + $0.50 x (Q1-11,000) = Holding Cost Q2
$0.50 x 1 x (Q3-64,000) = Holding Cost Q3
First, the restrictions:
P1 P2 P3 P4 are Integer
P1 < 65,000
P2 < 65,000
P3 < 65,000
P4 < 65,000
Then, we have the inventory formulas:
I1 = P1 - S1
I2 = P2 + I1 -S2
I3 = P3 + I2 - S3
I4 = P4 + I3 - S4
The holding cost
H1 = I1 x 0.50
H2 = I2 x 0.50
H3 = I3 x 0.50
H4 = I4 x 0.50
The fixed cost
if P1> 0 then FC1 = 30,000
if P2> 0 then FC2 = 30,000
if P3> 0 then FC3 = 30,000
if P4> 0 then FC4 = 30,000
And last,the total cost:
FC1 + H1 +FC2 + H2 +FC3 + H3 +FC4 + H4 = Total Cost
This is the formula we want to minimize
We place this into excel solver and get the answer:
Lemon Corporation generated $324,600 of income from ordinary business operations. It also sold several assets during the year. Compute Lemon’s taxable income under each of the following alternative assumptions about the tax consequences of the asset sales.
a. Lemon recognized a $5,500 capital gain and a $7,400 net Section 1231 loss.
b. Lemon recognized a $6,500 capital loss and a $4,700 net Section 1231 gain.
c. Lemon recognized a $2,500 capital gain, a $3,900 capital loss, and a $3,000 net Section 1231 gain.
d.Lemon recognized $4,000 of depreciation recapture, a $2,000 Section 1231 gain, and a $4,200 Section 1231 loss.
Answer:
a. Lemon’s taxable income = $322,700
b. Lemon’s taxable income = $324,600
c. Lemon’s taxable income = $326,200
d. Lemon’s taxable income = $326,400
Explanation:
Before the questions are answered, the provisions of section 1231 of the Internal Revenue Service (IRS) rules are quoted as follows:
- If you have a net section 1231 loss, it is an ordinary loss.
- If you have a net section 1231 gain, it is ordinary income up to the amount of your unrecaptured section 1231 losses from previous years. The rest, if any, is a long-term capital gain.
Therefore, net section 1231 loss which is an ordinary loss is deducted from ordinary business operations to obtain taxable income.
Also, we describe the following:
Taxable income can be described as the amount of income that is employed to calculated the amount of tax that is payable to the government by an individual or a company in a particular tax year. It is obtained after making all required additions and allowable deductions.
Capital gain can be described as an increase in the value of a capital asset which is realized when the asset is sold. For tax purposes, capital gain is added to the income from ordinary business operations to obtain taxable income.
Capital loss can be described as a decrease in the value of a capital asset which is recognised when the asset is sold. For tax purposes, capital loss is deducted from the income from ordinary business operations to obtain taxable income.
We therefore proceed as follows:
a. Lemon recognized a $5,500 capital gain and a $7,400 net Section 1231 loss.
From the question, we have the following:
Income from ordinary business operations = $324,600
Capital gain recognised = $5,500
Net Section 1231 loss recognised = $7,400
Based on the explanation provided above, Lemon’s taxable income under this scenario is therefore calculated as follows:
Lemon’s taxable income = Income from ordinary business operations + Capital gain recognised - Net Section 1231 loss recognised = $324,600 + $5,500 - $7,400 = $322,700
b. Lemon recognized a $6,500 capital loss and a $4,700 net Section 1231 gain.
From the question, there is nothing related past five years stated and it is therefore assumed that there is no net section 1231 loss in the past five years.
As result, the total of $4,700 net Section 1231 gain is regarded as a capital gain and it is set-off against the $6,500 capital loss as follows to obtain the non-deductible expense as follows:
Non-deductible expense = $6,500 - $4,700 = $1,800
Since there is nothing deductible again, Lemon’s taxable income under this scenario is therefore equal to the income from ordinary business operations of $324,600. That is,
Lemon’s taxable income = $324,600
c. Lemon recognized a $2,500 capital gain, a $3,900 capital loss, and a $3,000 net Section 1231 gain.
Since no net section 1231 loss in the past five years is indicated here, the $3,000 net Section 1231 gain will be treated as a long-term capital gain.
Based on the provisions of section 1231 of the Internal Revenue Service (IRS) rules quoted above, non-deductible expense is calculated by deducting the $3,900 capital loss to the extent of the $2,500 capital gain as follows:
Non-deductible expense = $3,900 - $2,500 = $1,400
Since the $3,000 net Section 1231 gain has to be treated as a long-term capital gain, the $1,400 will be deducted from it obtain the net capital gain as follows:
Net capital gain = $3000 - $1400 = $1600
Lemon’s taxable income under this scenario is therefore calculated by adding the $1,600 net capital gain to the $324,600 income from ordinary business operations as follows:
Lemon’s taxable income = $324,600 + $1600 = $326,200
d. Lemon recognized $4,000 of depreciation recapture, a $2,000 Section 1231 gain, and a $4,200 Section 1231 loss.
We have the following:
Section 1231 loss = $4,200
Section 1231 gain = $2,000
Therefore, we have:
Net section 1231 loss = Section 1231 loss - Section 1231 gain = $4,200 - 2,000 = $2,200
This net section 1231 loss of $2,200 is therefore treated as ordinary loss as already stated in the provisions of section 1231 of the Internal Revenue Service (IRS) rules quoted above and deducted from the $324,600 income from ordinary business operations.
In addition, the depreciation recapture of $4,000 will be treated as ordinary income and it will be added to the $324,600 income from ordinary business operations.
Lemon’s taxable income under this scenario is therefore calculated as follows:
Lemon’s taxable income = Income from ordinary business operations + Depreciation recapture - Net section 1231 loss = $324,600 + $4,000 - $2,200 = $326,400
Consider a second-price, sealed-bid auction with a seller who has one unit of the object which he values at s and two buyers 1, 2 who have values of v1 and v2 for the object. The values s, v1, v2 are all independent, private values. Suppose that both buyers know that the seller will submit his own sealed bid of s (and will keep the item if bid s wins), but they do not know the value of s. The buyers know that the seller must submit his bid before seeing the buyer’s bids and they know that the seller will actually run a second price auction with the three bids he has: his own bid and the two buyer’s bids. Each buyer knows his own value but not the other buyer’s value.
Now suppose that the seller opens the bids from the buyers and then submits his own bid after seeing the bids from the two buyers. The seller runs a second price auction with these bids in the sense that the object is awarded to the highests bidder (one of the two buyers or the seller) and that bidder pays the second highest bid. Now is it optimal for the buyers to bid truthfully; that is, should they each bid their true value? Give a brief explanation for your answer.
Answer and Explanation:
Given that this is a second price bid auction whereby the second highest bid is the price that the highest bidder pays for the item up for auction sale, so that b1>b2 then b1 gets item for the price of b2.
Truthfulness of true value is the dominant strategy here which means each player should aim to be truthful with their bid regarding their true value regardless of what other bidders are bidding. Therefore truthfulness of value is the optimal strategy with the best payoff for bidders
According to the video, what are some things that Human Resources Managers do? Check all that apply.
oversee hiring and firing
purchase computers
distribute office supplies
develop training programs
develop personnel policies
develop pricing strategies
develop recruiting programs
Answer:
1 4 5 7
Explaination:
Answer:
1 4 5 7
Explanation:
You see me now 4 kkt
Answer:
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Explanation:
Answer:
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Explanation:
Calloway Company recorded a right-of-use asset of $790,000 in a 10-year finance lease. The interest rate charged by the lessor was 10%. The balance in the right-of-use asset after two years will be:
Answer:
$632,000
Explanation:
The computation of the amount of balance in the right of use asset after two years is shown below:
Balance in right of use asset after 2 years is
= Recorded value - ((Recorded value × rate of interest) × number of years)
= $790,000 - (($790,000 × 10%) × 2)
= $790,000 - ($79,000 × 2)
= $790,000 - $158,000
= $632,000
hence, the balance is $632,000
g you are eligible for a 30 year fixed rate home mortgage with 3.6% interest rate what is the maximum loan you can get
Answer:
the maximum loan is $379,417
Explanation:
The computation of the maximum loan is shown below:
As we know that
Maximum Loan = Present Value of all monthly Payments
= $1,725 × PVAF(0.3%,360 months)
= $1,725 × [1- (1+0.003)^-360] ÷ 0.003
= $1,725 × 219.9517
= $379,417
hence, the maximum loan is $379,417
Here the interest rate is divided by 12 and the months should be multiplied by 12 as this is the case of monthly basis
Answer:
money
Explanation:
Question 6 of 10
Which economic tool would most likely be used as part of a contractionary
monetary policy?
A. Lowering interest on reserves
B. Reducing the discount rate
C. Raising the reserve requirement
D. Buying treasury securities
Answer:
C. Raising the reserve requirement
Explanation:
Contractionary monetary policy refers to the Fed's action of reducing money supply in the economy. Reducing the money supply slows down the economy, thereby countering expansion and inflationary pressures. Raising the reserve requirement is one tool that the Fed uses as a contractionary monetary policy.
Reserve requirements refer to the percentage of customer deposits that the Fed requires commercial banks to maintain at all times. An increase in reserve requirement decreases the money available for banks to lend out. Reduced lending means a decrease in the money supply, which results in a decline in the inflation rate.
For each transaction,
1. Analyze the transaction using the accounting equation.
2. Record the transaction in journal entry form
3. Post the entry using T-accounts to represent ledger accounts.
Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).
a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value.
b. On May 21, Elegant Lawns purchases office supplies on credit for $500.
c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
Answer:
1) I used an excel spreadsheet
2) a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value.
Dr Cash 7,000
Dr Equipment 3,000
Cr DeShawn Tyler, capital 10,000
b. On May 21, Elegant Lawns purchases office supplies on credit for $500.
Dr Office supplies 500
Cr Accounts payable 500
c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
Dr Cash 4,000
Cr Landscaping Revenue 4,000
d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
Dr Cash 1,000
Cr Unearned Landscaping Revenue 1,000
3)
Cash (101)
debit credit
7,000
4,000
1,000
12,000
Office Supplies (124)
debit credit
500
Equipment (167)
debit credit
3,000
Accounts Payable (201)
debit credit
500
Unearned Landscaping Revenue (236)
debit credit
1,000
D. Tyler, Capital (301)
debit credit
10,000
Landscaping Revenue (403)
debit credit
4,000
Composing powerful paragraphs is essential when striving for clear communication. Familiarize yourself with basic paragraph elements, various paragraph patterns, and strategies for building coherence.
Use the following paragraphs to answer the questions that follow.
Paragraph A: Last week, three of our Xcite executives closed a lucrative merger deal with Editionplus. The merger will add more than 500 accounts to our business and will increase our profits by 39 percent in less than a year. Additionally, the executives met with several Editionplus product designers and agreed on three new computer prototypes that we will produce during the next five years. This means we will expand our business to both Los Angeles and Las Vegas.
Paragraph B: Employee reaction has been mixed about our recent plans to expand to Las Vegas and Los Angeles. Many Xcite employees are concerned that the Los Angeles site will not have the same relaxed corporate environment as the current site. However, this is not the case: The relaxed corporate environment at the San Francisco site will be replicated in Los Angeles. The culture we have developed works for the company and our employees, and we don't plan to change it. Human resources executives are already interviewing San Francisco employees so they can capture and replicate the culture with ease.
Paragraph C: The leadership at the Xcite San Francisco site has been phenomenal during the last ten years. Everyone in senior-level positions has worked his or her way up the corporate ladder and has contributed greatly to the company's success. This team has increased our profits by 6 percent, expanded office space, hired additional IT support, and strengthened our IT infrastructure. These are just a few of this leadership team's many accomplishments. In the next two months, a new leadership team will be formed for the Los Angeles site. This team will consist of transferred employees from the San Francisco site. We will be offering many of you a chance to be part of this move. Additional training will be required for all who are transferring, and moving costs will not be covered. Xcite looks forward to opening another location with excellent products, high profits, and 100 percent employee and customer satisfaction.
Required:
1. Which paragraph or paragraphs use the pivoting approach?
a. A, C
b. B
c. A
2. What is the main idea of Paragraph A?
Answer:
1. Which paragraph or paragraphs use the pivoting approach?
b. BPivoting writing uses the words even though, however, but, in spite off, etc., to pivot back to the main idea of the paragraph. In paragraph B, it starts talking about employee concerns about a bad corporate environment in the new offices (in Los Angeles or Las Vegas), and then it assures that this will not happen. It affirms that the company is taking care of the issue and the corporate environment in LA will be the same as in San Francisco.
2. What is the main idea of Paragraph A?
If informs the reader that the company just closed a merger with Editionplus and that soon profits should increase, new products will developed and the company will grow.
Suppose that Brazil imports semiconductors from the United States. The free market price is $23.00 per semiconductor. If the tariff on imports in Brazil is initially 12%, Brazilians pay $_____per semiconductor. One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries. Suppose that as a result of the Uruguay Round, Brazil reduces its import tariffs to 6%.
Assuming the price of semiconductors is still $23.00 per semiconductor, consumers now pay the price of $_____per semiconductor. Based on the calculations and the scenarios presented, the Uruguay Round most likely_____in Brazil and______in the United States.
Answer:
Suppose that Brazil imports semiconductors from the United States. The free market price is $23.00 per semiconductor. If the tariff on imports in Brazil is initially 12%, Brazilians pay $25.76 per semiconductor.
= 23 * ( 1 + 12%) = $25.76
One of the accomplishments of the Uruguay Round that took place between 1986 and 1993 was significant across-the-board tariff cuts for industrial countries, as well as many developing countries.
Suppose that as a result of the Uruguay Round, Brazil reduces its import tariffs to 6%.
Assuming the price of semiconductors is still $23.00 per semiconductor, consumers now pay the price of $24.38 per semiconductor.
= 23 * ( 1 + 6%) = $24.38
Based on the calculations and the scenarios presented, the Uruguay Round most likely hurts Producers in Brazil and benefits producers in the United States.
The Uruguay Round reduced the tariff and made the semiconductor cheaper for Brazilians which means they will now import more. This will benefit producers in the US who will now be able to sell more but will hurt producers in Brazil who will sell less if their prices are higher than $24.38.
The two principle methods of measuring Gross Domestic Product are the A. expenditures approach and the income approach. B. flow approach and the stock approach. C. intermediate approach and the valueadded approach. D. domestic approach and the international approach.
Answer:
A. expenditures approach and the income approach.
Explanation:
GDP known as gross domestic product, is the dollar value of all final output produced within the borders of the nation during a specific period of time. Under a nominal gross domestic product (GDP) calculation for an economy, the current dollar value of the finished goods and services within the country is used. Since it is a measure that uses the current dollar value, it also include changes in price due to inflation or an increase in price in the economy
The GDP is important because it is a measure of the economy’s overall economic performance.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being, these includes;
The two principle methods of measuring Gross Domestic Product are the expenditures approach and the income approach.
Skidmore Music Company had the following transactions in March:
a. Sold instruments to customers for $16, 700, received $10, 700 in cash and the rest on account. The cost of the instruments was $7, 100.
b. Purchased $4, 900 of new instruments inventory; paid $1, 700 in cash and owed the rest on account.
c. Paid $720 in wages for the month.
d. Received $3, 100 from customers as deposits on orders of new instruments to be sold to the customers in April.
e. Received a $280 bill for March utilities that will be paid in April.
Required:
Complete the following statements:
1. Cash basis Income Statement
2. Accrual basis Income Statement
Answer:
Please sew below
Explanation:
Skidmore Music Company.
1. Cash basis income statement
Sales
$13,800
Less: cost of goods sold
$1,700
Gross income
$12,100
Wages expense
$720
Operating income
$11,380
2. Accrual basis income statement
Sales.
$16,700
Less: cost of goods sold
$4,900
Gross income
$11,800
Wages expense
($720)
Utility expense
($280)
Operating income
$10,800
Sheridan Company sells radios for $50 per unit. The fixed costs are $445000 and the variable costs are 60% of the selling price. As a result of new automated equipment, it is anticipated that fixed costs will increase by $65000 and variable costs will be 50% of the selling price. The new break-even point in units is:
Answer:
Break-even point in units= 2,600
Explanation:
To calculate the break-even point in units, we need to use the following formula:
Break-even point in units= fixed costs/ contribution margin per unit
Fixed costs= $65,000
Contribution margin per unit= 50*0.5= $25
Break-even point in units= 65,000/25
Break-even point in units= 2,600
- Which of the following is NOT a Factor of Production
A. Money
B. Land
C. Labor
D. Capital
Global strategic planning is a primary function of a company's managers, and the process of strategic planning provides a formal structure for undertaking this process. Companies are confronting a set of environmental forces that are increasingly complex, global, and subject to rapid change. In response, many international firms have found it necessary to institute formal global strategic planning to provide a means for top management to identify opportunities and threats from all over the world.
Required:
Formulate strategies to handle them, and stipulate how to finance and manage the implementation of these strategies?
Answer and Explanation:
The steps in global strategic planning include
Review or develop Vision & Mission: business aims to understand what its vision and mission is, reviewing one already there or developing a new one based on the current business environment and changes
Business and operation analysis. Here the business aims to understand it's environment in terms of it strengths and weaknesses internally and externally
Develop Strategic Options: business looks to find all strategic options available and weighs options to select best strategy on the basis of its business and operation analysis to understand strategy to tackle the current business situation
Establish Strategic Objectives: strategy objectives are developed to tackle new business environment
Strategy Execution Plan: the execution plan involves an effective plan that can duly implemented
Establish Resource Allocation: resources are allocated to execute the global strategic plan
Execution Review: execution is reviewed and quantified to see if the plan is being met
King Costume uses a periodic inventory system. The company started the month with 6 masks in its beginning inventory that cost $8 each. During the month, King Costume purchased 41 additional masks for $10 each. At the end of the month, King counted its inventory and found that 3 masks remained unsold. Using the LIFO method, its cost of goods sold for the month is:
Answer:
$464
Explanation:
Periodic Inventory method is being used. That means valuation of inventory is done at the end of a specific period.
LIFO method is also used for determining the cost of inventory sold. FIFO stands for Last In First Out.
Calculation of Cost of Goods Sold :
41 unit × $10 = $440
3 units × $8 = $24
Total = $464
The cost of goods sold for the month is: $464
During the ________ phase of the product life cycle, the company incurs considerable costs for educating customers, building widespread dealer distribution, and encouraging demand.
Answer:
Introductory phase
Explanation:
During the Introductory phase of the product life cycle, the company incurs considerable costs for educating customers, building widespread dealer distribution, and encouraging demand. In this phase, the company tries to build brand awareness and a market for the product. Pricing of the product during this time might be low as well.
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 $1,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. (use the 2016 tax rate schedules).
1. What is the total amount of Marc and Michelle’s deductions from AGI?
2. What is Marc and Michelle’s taxable income?
3. What is Marc and Michelle’s taxable income?
Answer:
KINDLY CHECK EXPLANATION
Explanation:
Given that :
Marc's salary = 64000
Michelle's salary = 12000
Interest received from municipal bond = $350
Interest received from corporate bond = $500
TOTAL AMOUNT OF DEDUCTION FROM AGI:
ACCORDING TO 2016 TAX RATE : MARRIED FILING JOINTLY STANDARD DEDUCTION = $12,600 (higher than itemized deduction ($6000)
Dependency exemption = $4050 (2016 tax schedule)
Hence, total deduction from AGI = $(12600 + (3 * 4050)) = $24,750
Their Gross Income :
(Salary + interest from municipal and corporate bonds)
$(64000 + 12000 + 500) = $76,500
TAXABLE INCOME = Gross income - total debt deduction on AGI - (contribution to individual retirement + alimony paid to spouse)
TAXABLE INCOME = $(76,500 - 24750 - (2500 +1500))
$(76500 - 24750 - 4000) = $47750
Assume the perpetual inventory; system is used unless stated otherwise. Round all numbers to the nearest whole dollar unless stated otherwise.
Journalizing purchase transactions
Howie Jewelers had the following purchase transactions. Journalize all necessary trans—actions. Explanations are not required.
Jun. 20 Purchased inventory of $5,000 on account from Silk Diamonds, a jewelry importer. Terms were 2/15, n/45, FOB shipping point.
Jun. 20 Paid freight charges, $400.
Jul. 4 Returned $600 of inventory to Silk.
Jul. 14 Paid Silk Diamonds, less return.
Jul. 16 Purchased inventory of $4,400 on account from Shanley Diamonds, a jewelry importer. Terms were 2/10, n/EOM, FOB destination.
Jul. 18 Received a $300 allowance from Shanley Diamonds for damaged but usable goods.
Jul. 24 Paid Shanley Diamonds, less allowance and discount.
Answer: Check attachment
Explanation:
In the attachment, note that:
On July 14:
Account payable was calculated as:
= $4400 - $300
= $4100
Merchandise Inventory = $4100 × 2%
= $4100 × 2/100
= $4100 × 0.02
= $82
Cash = $4100 - $82 = $4018.
Check attachment for further explanation.
Store A charges $20 per t-shirt. They're having a limited "buy 2, get one free"
promotion. You could buy similar t-shirts at Store B, where each shirt is $20 but you have
a coupon for $5 off every shirt. Give one good reason to buy from Store A and one
good reason to buy from Store B.
Answer:
Both Stores give a discount for buying their shirts
Presented below is the trial balance of Pina Corporation at December 31, 2017. Debit CreditCash $ 198,550Sales $ 8,103,580Debt Investments (trading) (cost, $145,000) 156,580Cost of Goods Sold 4,800,000Debt Investments (long-term) 300,550Equity Investments (long-term) 278,550Notes Payable (short-term) 93,580Accounts Payable 458,580Selling Expenses 2,003,580Investment Revenue 67,440Land 263,580Buildings 1,041,550Dividends Payable 137,550Accrued Liabilities 99,580Accounts Receivable 438,580Accumulated Depreciation-Buildings 152,000Allowance for Doubtful Accounts 28,580Administrative Expenses 904,440Interest Expense 215,440Inventory 598,550Gain (extraordinary) 84,440Notes Payable (long-term) 901,550Equipment 603,580Bonds Payable 1,001,550Accumulated Depreciation-Equipment 60,000Franchises 160,000Common Stock ($5 par) 1,003,580Treasury Stock 194,580Patents 195,000Retained Earnings 79,550Paid-in Capital in Excess of Par 81,550 Totals $12,353,110 $12,353,110 Prepare a balance sheet at December 31, 2017, for Pina Corporation. (Ignore income taxes).
Answer:
Pina Corporation
Balance Sheet at December 31, 2017
Non - Current Assets
Land $263,580
Buildings $1,041,550
Accumulated Depreciation-Buildings ($152,000) $889,550
Equipment $603,580
Accumulated Depreciation-Equipment ($60,000) $543,580
Debt Investments (long-term) $300,550
Equity Investments (long-term) $278,550
Franchises $160,000
Patents $195,000
Total Non-Current Assets $2,630,810
Current Assets
Inventory $598,550
Debt Investments (trading) (cost, $145,000) $156,580
Accounts Receivable $438,580
Allowance for Doubtful Accounts ($28,580) $410,000
Cash $ 198,550
Total Current Assets $1,363,680
Total Assets $4,051,650
Equity and Liabilities
Equity
Common Stock ($5 par) $1,003,580
Treasury Stock $194,580
Retained Earnings $79,550
Paid-in Capital in Excess of Par $81,550
Total Equity $1,359,260
Liabilities
Non-Current Liabilities
Notes Payable (long-term) $901,550
Bonds Payable $1,001,550
Total Non-Current Liabilities $1,903,100
Current Liabilities
Notes Payable (short-term) $93,580
Accounts Payable $458,580
Dividends Payable $137,550
Accrued Liabilities $99,580
Total Current Liabilities $789,290
Total Liabilities $2,692,390
Total Equity and Liabilities $4,051,650
Explanation:
A Balance Sheet shows the Balance of Assets, Liabilities and Equity as at the Reporting date.
See the Balance Sheet for Pina Corporation prepared above.
A company reports accounting data in its financial statements. This data is used for financial analyses that provide insights into a company’s strengths, weaknesses, performance in specific areas, and trends in performance. These analyses are often used to compare a company’s performance to that of its competitors, or to its past or expected future performance. Such insight helps managers and analysts improve their decision making. Most decision makers and analysts use five groups of ratios to examine the different aspects of a company’s performance. Indicate whether each of the following statements regarding financial ratios are true or false?
a. The ratios provide an accurate and thorough representation of the Chinese company’s performance.b. The analysis likely includes incorrect and misleading conclusions.
Answer:
a. False
b. True
Explanation:
Ratio analysis is a very useful method of analyzing a company however it is not necessarily very in-depth. If a company seems to be performing below the industrial average, it would be prudent to check the reasons why the company is doing so.
The advantage of ratio analysis in this instance is that it would help point you in the right direction to know what accounts to analyze more intensely to find out why the Chinese company is not performing up to standard.
Ratio analysis are good but they do not always provide an accurate and thorough representation of a company’s performance therefore relying solely on ratios will lead to an analysis that likely includes incorrect and misleading conclusions.
Every year, management and labor renegotiate a new employment contract by sending their proposals to an arbitrator, who chooses the best proposal (effectively giving one side or the other $3 million). Each side can choose to hire, or not hire, an expensive labor lawyer (at a cost of $300,000) who is effective at preparing the proposal in the best light. If neither hires a lawyer or if both hire lawyers, each side can expect to win about half the time. If only one side hires a lawyer, it can expect to win nine tenths, or 0.9, of the time. Use the given information to fit in the expected payoff, in dollars, for each cell in the matrix.
Management (M)
No Lawyer Lawyer
No Lawyer L: M: S L: S M: S
Labor (L) Lawyer L: M: S L: S M: S
The Nash equilibrium for this game is for Management to_____a lawyer, and for Labor to_____a lawyer.
Answer: hire; hire
Explanation:
The Nash equilibrium for this game is for Management to hire a lawyer, and for Labor to hire a lawyer.
At the Nash Equilibrium, there is no incentive for either player to deviate from the strategy they are pursuing as it is the best(most beneficial) one given the strategy of the other player and a situation where there is no cooperation.
If management decides not to hire a lawyer and labor does, management will lose 0.9 of the time, this applies to labor as well. Neither of them will agree to having no lawyer as there is no cooperation and if one does so, the other will seize the opportunity to hire a lawyer and make more.