Answer:
The answer to this question is given below in the explanation section.
Explanation:
The correct answer to this question is the price floor.
The Price floor is the lowest amount that is imposed by the government or group-imposed lowest price limit for a product or service. The government uses the price floor to keep prices at a certain level from going to low. So price floors for workers set by the government that the employer should not pay less than the set amount.
while other options are not correct because::
The price ceiling is the high amount set by the government or the by other groups for a product or service.
An incentive is an amount or something that can be given to employees or someone for motivation or encouraging them to do something.
An elastic service is given by amazon to develop and run the application with different tools etc.
Answer:price floor
Explanation:
Traditional IRA grows tax free?
True or False
Answer:
True
Explanation:
Analyzing Unearned Revenue Disclosures
The following disclosures (excerpted) are from the August 28, 2016, annual report of Costco Wholesale Corporation.
Revenue Recognition: We generally recognize sales, net of estimated returns, at the time the member takes possession of merchandise or receives services. When we collect payment from customers prior to the transfer of ownership of merchandise or the performance of services, the amount recieved is generally recorded as deferred revenue on the consolidated balance sheets until the sales or service is completed. Membership fee revenue represents annual membership fees paid by our memberships. We account for membership fee revenue, net of estimated refunds, on a deferred basis, whereby revenue is recognized ratably over the one-year membership period.
Revenue
($ millions) August 28, 2016 August 30, 2015 August 31, 2014
Net Sales $116,073 $113,666 $110,212
Membership fees 2,646 2,533 2,428
Total revenue $118,719 $116,199 $112,640
Current Liabilities ($ millions) August 28, 2016 August 30, 2015
Accounts payable $7,612 $9,011
Current portion of long-term debt 1,100 1,283
Accrued salaries and benefits 2,629 2,468
Accured member rewards 869 813
Deferred membership fees 1,362 1,269
Other current liabilities 2,003 1,695
Total current liabilities $15,575 $16,539
(a) Which of the following statements best explains in layman terms how Costco accounts for the cash received for its membership fees?
Because Costco does not know how many of its members will continue to the end of the year, cash received from members is recorded as a liability and recognized as revenue only at year-end.
When it receives cash, the company records it as a current liability. Then, it recognizes revenue evenly over the year.
The company records revenue when the cash is received.
Because Costco has a refund policy, the company records revenue when the cash is received, less an allowance for expected membership terminations.
Mark 1.00 out of 1.00
(b) Use the balance sheet information on Costco's Deferred Membership Fees liability account and its income statement revenues related to Membership Fees earned during 2016 to compute the cash that Costco received during 2016 for membership fees.
Total cash received (in $ millions) = $Answer
(c) Use the financial statement effects template to show the effect of the cash Costco received during 2016 for membership fees and the recognition of membership fees revenue for 2016.
Use negative signs with answers, when appropriate.
Balance Sheet
Transaction ($ millions)
Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital
Receive cash in advance for membership fees Answer Answer Answer Answer Answer
Recognized membership fees earned Answer Answer Answer Answer Answer
Income Statement
Revenue - Expenses = Net Income
Answer Answer Answer
Answer Answer Answer
Feedback
You have correctly selected 15.
Partially correct
Marks for this submission: 15.00/18.00.
Answer:
(a) Which of the following statements best explains in layman terms how Costco accounts for the cash received for its membership fees?
When it receives cash, the company records it as a current liability. Then, it recognizes revenue evenly over the year.(b) Use the balance sheet information on Costco's Deferred Membership Fees liability account and its income statement revenues related to Membership Fees earned during 2016 to compute the cash that Costco received during 2016 for membership fees.
beginning membership fees + cash received - membership fee revenue = ending membership fee balance
$1,269 + cash received - $2,646 = $1,362
cash received = $1,362 + $2,646 - $1,269 = $2,739 million
(c) Use the financial statement effects template to show the effect of the cash Costco received during 2016 for membership fees and the recognition of membership fees revenue for 2016.
Use negative signs with answers, when appropriate.
Balance Sheet
Cash Asset + Noncash Assets = Liabilities + Contributed Capital + Earned Capital
Receive cash in advance for membership fees ⇒ $2,739 + na = $2,739 + na + na
Recognized membership fees earned ⇒ na + na = -$2,646 + na + $2,646
Income Statement
Revenue - Expenses = Net Income
na na na
$2,646 na $2,646
Jeremy is married to Amy, who abandoned him in 2019. He has not seen or communicated with her since April of that year. He maintains a household in which their son, Evan, lives. Evan is age 25 and earns over $6,000 each year. For tax year 2020, Jeremy's filing status is: a.Head of household. b.Surviving spouse. c.Married, filing jointly. d.Married, filing separately.
Answer: d. Married, filing separately.
Explanation:
From the question, we are informed that Jeremy is married to Amy, who abandoned him in 2019 and that he has not seen or communicated with her since April of that year.
We are further told that he maintains a household in which their son, Evan, lives and that Evan is age 25 and earns over $6,000 each year.
For tax year 2020, Jeremy's filing status is married, filling separately. This is because we are told that Jeremy hasn't has not seen or communicated with her since April. Since they're not divorced, it means they're still married but filing separately.
Potential Market – the set of consumers who profess some level of interest in a defined market offer Mass Market – the set of consumers who profess some level of interest in and have the requisite income to a defined market offer Available Market – the set of consumers with the interest, requisite income and access to a defined marketQualified Available Market – the set of consumers with the interest, requisite income, access and qualifications for a defined market offer offerHonda Ltd. of Japan is reviewing the motorcycle market of a Mid-Pacific island. A recent study revealed twenty percent (20%) of the island's 1,000,000 population exhibited an interest in owning a motorcycle. Of those interested, only fifty percent (50%) have the requisite income to purchase a Honda motorcycle. Three (3) Honda dealerships provide the island’s entire population with access to the defined market offer. However, twenty-five percent (25%) of the interested individuals with the requisite income and access to the defined market offer do not meet the island's minimum license age requirement of eighteen (18) years of age.Calculate the number, not percentage, of the people in each of the following levels of market definition. (Show calculations)a. Potential Marketb. Mass Marketc. Available Marketd. Qualified Available Market
Answer:
A
Potential market
Interested percentage of people x total population
1000000x20%
= 200000
B.
Mass market is potential market x those with requisite income in percentage
= 200000x50%
= 200000x0.5
= 100000
C
Available market is also mass market
= 100000
D.
Qualified market
Available market x minimum qualification in percentage
Percentage of Minimum qualification = 100 - 25%
= 75%
Qualified market = 100000x0.75
= 75000
Piere Imports uses the perpetual system in accounting for merchandise inventory and had the following transactions during the month of October.
Oct. 2 Purchased merchandise at a $4,700 price ($4,606 net), invoice dated October 2, terms 2/10, n/30.
10 Received a credit memorandum toward the return of $850 ($833 net) of merchandise that it purchased on October 2.
17 Purchased merchandise at a $8,800 price ($8,624 net), invoice dated October 17, terms 2/10, n/30.
27 Paid for the merchandise purchased on October 17, less the discount.
31 Paid for the merchandise purchased on October 2. (Payment was mistakenly delayed, which caused the discount to be lost.)
Required:
Prepare entries to record these transactions assuming that Piere Imports records invoices (a) at gross amounts and (b) at net amounts.
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
October 2 Purchased merchandise at a $4,700 price ($4,606 net), invoice dated
GROSS NET
Dr Merchandise inventory $4,700 $4,606
Cr Account payable $4,700 $4,606
October 10 Received a credit memorandum toward the return of $850 ($833 net)
GROSS NET
Dr Account payable $850 $833
C Inventory $850 $833
October 17 Purchased merchandise at a $8,800 price ($8,624 net), invoice dated October 17,
GROSS NET
Dr Merchandise inventory $8,800 $8,624
Cr Account payable $8,800 $8,624
October 27 Paid for the merchandise purchased on October 17, less the discount.
Dr Account payable 8,800
Cr Discount 176
Cr Cash 8,624
October 31 Paid for the merchandise purchased on October 2.
Dr Account payable 4,700
Cr Cash 4,700
You recommend the following: We should discontinue our policy of reimbursing employees for meals and incidental expenses. In place of this policy, we should provide $100 daily stipends. This recommendation is best classified as what
Answer:
the options are missing:
Specific, actionable, and justified
Specific but not actionable and not justified
Specific and actionable but not justified
The answer is:
Specific, actionable, and justifiedThis proposition is very specific (it is the only thing that all three options agree upon).
In order for a recommendation to be actionable, it must be relevant and feasible.
This recommendation is feasible since 83% of the employees prefer the $100 stipend. It is also relevant because the company can save approximately $61 per employee per day.
This $61 savings per day per employee also makes this proposition justifiable since the company's employees travel a lot.
Reimbursement is the payment that the company does to its employees for their service. The proposal is Specific, actionable, and justified.
What is Reimbursement ?It is the money paid to the employees/customer/parties for their services provided. It's a business expense and paid after complying with the tax rules.
The proposal is Specific, actionable, and justified.
The recommendation should be feasible to be actionable. It is feasible because 83% of employees agreed to the $100 stipend daily for meals and incidental expenses. And it is at the same time beneficial to the company, as it would save $61 per employee per day.
Therefore, it can be said that the above explanation aptly describes the statement.
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R. J. Graziano Wholesale Corp. uses the LIFO method of inventory costing. In the current year, profit at R. J. Graziano is running unusually high. The corporate tax rate is also high this year, but it is scheduled to decline significantly next year. In an effort to lower the current year's net income and to take advantage of the changing income tax rate, the president of R. J. Graziano Wholesale instructs the plant accountant to recommend to the purchasing department a large purchase of inventory for delivery 3 days before the end of the year. The price of the inventory to be purchased has doubled during the year, and the purchase will represent a major portion of the ending inventory value.
Required:
a. What is the effect of this transaction on this year's and next year's income statement and income tax expense? Why?
b. If R. J. Graziano Wholesale had been using the FIFO method of inventory costing, would the president give the same directive?
c. Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?
Answer:
a. What is the effect of this transaction on this year's and next year's income statement and income tax expense? Why?
The inventory account is a permanent asset account in the balance sheet, so it doesn't matter if the company purchases all that it can during the last days of December, it will not affect the income statement, nor their tax liability for the current year. A company only recognizes cost of goods sold when the goods are actually sold, not when they are purchased.
Since the company uses the LIFO (last in, first out) inventory method, all it will do is increase the value of ending inventory which changes into beginning inventory next year. You can reduce next year's income more by purchasing the goods next year.
b. If R. J. Graziano Wholesale had been using the FIFO method of inventory costing, would the president give the same directive?
If the company used the FIFO method, the result will be the same. Inventory is not COGS, whether you use FIFO, LIFO weighted average, specific identification, or any other acronym that you might come up with. At beginning of the year, inventory must be average to determine beginning inventory. it might help to increase COGS a little, therefore, decreasing net income, but the effects shouldn't be significant.
c. Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?
It is useless, and he should know it. The only implication is that this will help him realize his low IQ.
The last in first out is the common method specified by the generally accepted accounting principles (GAAP). It is the method used to maintain the account of inventory. It states that the recently purchased products are expensed at the first expense.
a. The inventory account is a permanent asset account in the balance sheet, so it doesn't matter if the company purchases all that it can during the last days of December, it will not affect the income statement, nor their tax liability for the current year. A company only recognizes the cost of goods sold when the goods are actually sold, not when they are purchased.
b. If the company used the FIFO method, the result will be the same. Inventory is not COGS, whether you use FIFO, LIFO weighted average, specific identification, or any other acronym that you might come up with. At beginning of the year, inventory must be average to determine beginning inventory. it might help to increase COGS a little.
Therefore, decreasing net income, but the effects shouldn't be significant.
c. It is useless, and he should know it. The only implication is that this will help him realize his low IQ.
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Tom Scott is the owner, president, and primary salesperson for Scott Manufacturing. Because of this, the company's profits are driven by the amount of work Tom does. If he works 40 hours each week, the company's EBIT will be $615,000 per year; if he works a 50 hour week, the company's EBIT will be $755,000 per year. The company is currently worth $3.85 million. The company needs a cash infusion of $1.95 million, and it can issue equity or issue debt with an interest rate of 7 percent. Assume there are no corporate taxes.
What are the cash flows to Tom under each scenario?
Answer:
Please see answer as attached.
Explanation:
a. What are the cash flows to Tom under each scenario.
•Cash flow under scenario 1.
40 hour week cash flow $478,500
50 hour week Cash flow $618,500
Total ownership percentage 66.38%
•Scenario 2.
40 week cash flow $408,237
50 week cash flow $501,169
Please find attached detailed computation of the above solution.
Part of implementing Quality Windows Limited new enterprise resource planning (ERP) software is ensuring all workstations and servers run secure applications. Since the ERP software is new, Quality Windows Limited needs a new policy to set security requirements for the software. This policy will guide administrators in developing procedures to ensure all client and server software is as secure as possible. The goal is to minimize exposure to threats to any part of the new ERP software or resources related to it.
Describe the goals that define a secure application. Specifically, you will write two policies to ensure Web browsers and Web servers are secure. All procedures and guidelines will be designed to fulfill the policies you create.
Answer the following questions for Web browser and Web server software:
a. What functions should this software application provide?
b. What functions should this software application prohibit?
c. What controls are necessary to ensure this applications software operates as intended?
d. What steps are necessary to validate that the software operates as intended?
Answer:
A)i) web browser software :
ii) web server software :
B) i) Web browser software: Auto-download updates and Tracking functionality
ii) web server software : unauthorized access and unsecure connection from web browse
C) i) Legal and regulatory controls
ii) Access controls
D) i) Validation process -
ii) Define Requirements-
iii) Develop:
iv)Testing: Test what has been developed
v) Review/Management :
Explanation:
A ) Functions that the software application should provide
i) web browser software : This functions requires the software to make requests from the relevant web pages and sending them to the web server software application and serve it up to customers
ii) web server software : This function means that the software should be able to store, process and deliver web pages to web browser applications’.
B) Functions that this software application should prohibit
i) Web browser software: Auto-download updates and Tracking functionality
ii) web server software : unauthorized access and unsecure connection from web browser
C) Controls that are necessary to ensure application software operates as intended
i) Legal and regulatory controls such as privacy laws, and copyright policies will help the software operate smoothly
ii) Access controls such as user authentication when a user is trying to login is very vital for the security of the user
D Steps necessary to validate that the software operates as intended
i) Validation process - The validation process is the first step which is intended to implement plans that identifies who has access to the software, what is been done on the software, and where the software is going to be accessed from.
ii) Define Requirements- defining the functions of the software and what the system can't do as well
iii) Develop: after Defining the requirements the next step is to develop the software in line with the defined requirements
iv)Testing: Test what has been developed
v) Review/Management : After successful testing of the product/software a review of the whole process before commercializing it is required as well
Karen, an automobile mechanic employed by an auto dealership, is considering opening a fast-food franchise. If Karen decides not to acquire the fast-food franchise, any investigation expenses are:
Answer:
The right solution is "Not Deductible".
Explanation:
If everyone's investigation for a company or starting a company fails, costs classified into two broad categories besides you:
Unless you're a person and your effort to start a company isn't successful, there are 2 kinds of investments you have had in attempting to develop yourself in the company.The expenses clients used to have before you made an intention to open a particular business. These would be personal but non-deductible charges. They include other expenses incurred throughout a regular search for something like a company or equity investment opportunity or perhaps a thorough investigation into it. The expenditures you have in your effort to purchase or launch a particular venture. Such charges are capital expenditures, and that as a capital loss, you will subtract them.Sutton Pointers Corporation expects to begin operations on January 1, 2015; it will operate as a specialty sales company that sells laser pointers over the Internet. Sutton expects sales in January 2015 to total $300,000 and to increase 15 percent per month in February and March. All sales are on account. Sutton expects to collect 66 percent of accounts receivable in the month of sale, 23 percent in the month following the sale, and 11 percent in the second month following the sale.
Required:
a. Prepare a sales budget for the first quarter of 2015.
b. Determine the amount of sales revenue Sutton will report on the first 2015 quarterly pro forma income statement.
c. Prepare a cash receipts schedule for the first quarter of 2015. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
d. Determine the amount of accounts receivable as of March 31, 2015. (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
Answer:
a. January= $300,000, February = $345,000 and March = $396,750
b. $1,041,750
c. January= $198,000, February = $296,700 and March = $374,205
d. $22,545
Explanation:
Sales Budget [to determine sales revenue]
January = $300,000
February ($300,000 × 1.15) = $345,000
March ($300,000 × 1.15^2) = $396,750
Revenue for the quarter = $1,041,750
Cash Receipts Schedule [to determine receipts and receivables balance]
January February March
Sales $300,000 $345,000 $396,750
Receipt - 66% ($198,000) ($227,700) ($261,855)
Receipt - 23 % - ($69,000) ($79,350)
Receipt - 11 % - - ($33,000)
Total Receipts ($198,000) ($296,700) ($374,205)
Account Receivable $102,000 $48,300 $22,545
The Dean of Admissions at Pace University is considering a survey of high school seniors in order to design better promotional materials for Pace. Discuss the issues to be considered, the different methods of conducting this survey, and the advantages and disadvantages of each.
Answer:
different methods can be used here to conduct this survey
1.questionnaire method
2. focus groups
3. interview
Explanation:
Answer 1)
We have several ways of conducting a research. t, the research issue is basically to know how can the university can do better promotion of their their school, theyaretring to put their school on the spotlight on how they can get more students to be interested in the university and what can be done to raise awareness le about the school.
different methods of doing this survey:
1) Questionnaire Method:
in this survey method through the use of Google forms or other survey sites, the students can get a link where they can fill in their preferences or make suggestions by writing. it is quite a popular and simple way of doing a survey.
Advantages
· It has a good rate of Representativeness.
· it is relatively cheap
· data can be gotten in a convenient way
· it gives good Statistical Significance
· its design is inflexible
Disadvantages
· Respondents do not always give exact and fair answers.
· it is difficult to convey emotions through this
· There may be a problem in understanding and interpreting some of the qusetsions
. developing rapport can be quite an issue
2) Focus Group:
Focus group discussions is another method where some of the students and the dean who acts as a moderator, organizes a meeting and everyone is given the opportunity to share useful inputs.
Advantages
· Its easy to see and know the emotions of the respondents based on the issues at hand
. uncovered ideas would be discussed
. gives an opportunity to know the view point of everyone present·
Disadvantages
· people may not want to convey their true thoughts or belief about the discussion on ground.
· people may be reluctant to chip in their perspective especially if it is against tahtof another member
· students would be made to give responses to things they have not seen or experienced
3) Interviews:
the use of Interview is the most reliable way of going about this survey. the dean would be able to generate original data. few students can be interviewed and their inputs can be taken regarding the issue.
Advantages
· adaptability on the side of interviewers
. better response rate
. flexibility on the side of interviewer
disadvantage
time consuming
provides less anonymity
costly
it could be biased
Which government tax incentive retirement account allows a person to contribute after-tax earnings?
a. Contribution matching
b. Roth IRA
c. Traditional IRA
d. 529 plan
Answer:
B.
Explanation:
If you look this question up on your main search engine, it should give you this answer. Let me know if it's wrong.
The tax incentive being provided by government to eligible taxpayers at the time of retirement that allows an individual for contributing after tax income is the Traditional IRA.
Option C is correct.
What is the after tax-income?After tax income is the amount being earned by individual after paying off the taxes on the basis of their filing status. It is determined by deducting tax expense from the amount of gross income.
Traditional IRA is one of the retirement account that permits a person for making contributions of gross revenues or after-tax revenues for investment. If the amount invested is complied with the rules as framed by tax authorities, then it can be considered for tax deductions. This leads to lowering of tax liability to some extent.
Therefore, the traditional IRA is the tax incentive allowing an individual on after tax income.
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#SPJ5
what will you use for banca/boat to move
Answer:
a paddle
Explanation:
Using a "paddle" is very important in order to move/propel a boat. Paddling creates a force which goes against the water. This force is faced by an opposite force that is equal and that which allows the boat to move forward.
So as you push the water asides, the boat accelerates. Such technique is deemed efficient when using the boat. Not following the proper technique will not move the boat.
Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a xylophone. The gamelans are sold for $722. Selected data for the company’s operations last year follow:
Units in beginning inventory 0
Units produced 23,000
Units sold 20,000
Units in ending inventory 3,000
Variable costs per unit:
Direct materials $180
Direct labor $340
Variable manufacturing overhead $51
Variable selling and administrative $18
Fixed costs:
Fixed manufacturing overhead $940,000
Fixed selling and administrative $820,000
Required:
a. Assume that the company uses absorption costing. Compute the unit product cost for one gamelan.
b. Assume that the company uses variable costing. Compute the unit product cost for one gamelan.
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
The variable costing method incorporates all variable production costs (direct material, direct labor, and variable overhead).
Absorption costing:
Unitary fixed overhead= 940,000/23,000= $40.87
Unitary production cost= 180 + 340 + 51 +40.87
Unitary production cost= $610.87
Variable costing:
Unitary production cost= 180 + 340 + 51
Unitary production cost=$571
The absorption costing method includes all costs related to production and variable costs includes all variable production costs.
What are absorption costs?
Absorption costs, also known as absorption costs, are a management calculation method that combines both highly flexible and adjusted cost to produce a particular product.
Knowing the full cost of production per unit enables manufacturers to price their products.
Calculation of Production costs assuming that the method of Absorption costing:
[tex]\rm\,Unitary \;Fixed \;Overhead= \dfrac{\$940,000}{23,000}\\\\Unitary \;Fixed \;Overhead== \$40.87 \;per \;unit\\\\Unitary \;Production \;Cost= (180 + 340 + 51 +40.87)\\\\Unitary \; Production \;Cost= \$610.87[/tex]
b) Calculation of production costs by variable costing method:
[tex]\rm\,Unitary \; Production \;Cost= (\$180 +\$340 + \$51)\\\\Unitary \;Production \;Cost=\$571[/tex]
Hence, The unit product cost for one gamelan by applying absorption costing is $610.87 and by variable costing is $571.
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Glumhoff's Packaging Department had the following information at July 31. All direct materials are added at the end of the conversion process. The units in ending work in process inventory were only 28% of the way through the conversion process.
Physical Units Direct Materials Conversion Costs
Units accounted for:
Completed and transferred out 120,000
Ending work in process, August 31 35,000
Total physical units accounted for: 155,000
Total equivalent units
Required:
Complete the schedule by computing the total equivalent units of direct materials and conversion costs for the month.
Answer:
Explanation:
The total equivalent units of direct materials and conversion costs for the month has been computed and attached.
Note that the conversion cost for the ending work in process was calculated as:
= $35,000 × 28%
= $35,000 × 0.28
= $9,800
Check the attachment for further analysis.
Jupiter Explorers has $8,800 in sales. The profit margin is 4 percent. There are 5,300 shares of stock outstanding. The market price per share is $1.60. What is the price-earnings ratio
Answer:
Price earnings ratio = 24.09 (Approx)
Explanation:
Given:
Sale = $8,800
Profit margin = 4% = 0.04
Number of share = 5,300
Market price per share = $1.60
Find:
Price-earnings ratio
Computation:
Earnings Per share = Profit / Number of shares
Earnings Per share = [8,800 x 0.04] / 5300
Earnings Per share = $0.0664
Price earnings ratio = Market price per share / Earnings Per share
Price earnings ratio = 1.60/0.0664
Price earnings ratio = 24.09 (Approx)
Carol wants to invest money in a 6% Certificate of Deposit (CD) that compounds semiannually. Carol would like the account to have a balance of $50,000 five years from now. How much must Carol deposit to accomplish her goal
Answer:
the present value is $37,230.10
Explanation:
The computation of the present value is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^time period
$50,000 = Present value × (1 + 0.06 ÷ 2)^5 × 2
$50,000 = Present value × (1.03)^10
$50,000 = Present value × 1.343
So, the present value is $37,230.10
hence, the present value is $37,230.10
We simply applied the above formula
You first look at the trial balance. In addition to the account balances reported in the income statement, the ledger contains these selected balances at March 31, 2022. Supplies $4,600 Prepaid Insurance 7,500 Notes Payable 21,000 You then make inquiries and discover the following.
1. Rent revenue includes advanced rentals for summer-month occupancy, $21,500.
2. There were $530 of supplies on hand at March 31.
3. Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2022.
4. The mail on April 1, 2022, brought the following bills: advertising for week of March 24, $150; repairs made March 10, $1,050; and utilities $200.
5. Wage expense totals $270 per day. At March 31, 3 days’ wages have been incurred but not paid.
6. The note payable is a 3-month, 8% note dated January 1, 2022.
Answer:
rent revenue 21,500 debit
unearned revenue 21,500 credit
--to amend incorrect recognition of revenue--
Supplies expense 4,070 debit
Supplies 4,070 credit
--to record use of supplies--
Insurance expense 1,875 debit
Prepaid Insurance 1,875 credit
--to record use of supplies--
advertizing expense 150 debit
repair expense 1050 debit
utilities expense 200 debit
account payable 1,400 credit
--to record accrued expenses--
wages expense 810 debit
wages payable 810 credit
--to record accrued wages--
interest expense 420 debit
interest payable 420 credit
--to record accrued interest--
Explanation:
#1 unearned revenue
The company should not recognize the summer-month occupancy as this occurs between April and June thereofre it is unearned The company has an obligation to perform. To give the rental space thus it is a liability not earnings.
#2 Supplies adjustment:
Jan 1st $4,600 - March 31st $530 = $4,070 supplies expense
#3 expired insurance:
value per month: $7,500 / 12 months = 625
month expired between Jan 1st and March 31st: 3
total value f expired insurance: $625 per month x 3 month = 1,875
#4 accured expenses concetps were incurred and we most recognize them
#5 each day $270 times 3 days accrued = 810 total wages accrued
#6 accrued interest expense: principal x rate x time
$21,000 x 0.08 x 3/12 = $420
Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is reliable and maintains a constant lead time of 7 days. The cost of placing an order is $17 and the cost of holding inventory is $0.40 per unit per year. There are no stock-out costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over 358 days of the year.
Your goal here is to find the order quantity and reorder point to satisfy a 73 percent probability of not stocking out during the lead time.
a. To manage inventory, the company is using
Continuous review system
Periodic review system
b. Find the order quantity. (Round your answer to the nearest whole number.)
Order quantity books
c. Find the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Reorder point
Answer:
A. Continuous review system
B. Order quantity = 2,049 Books
C. Reorder point=987
Explanation:
a. In order To manage inventory, the company is using what is called Continuous review system
b. Calculation to find the order quality
Using this formula
Order quantity = √((2DS)/H)
Let plug in the morning
Order quantity=√ ((2 x 49,404 x 17)/0.40)
Order quantity = 2,049 Books
(138*358=49,404)
C. Calculation for reorder point
First step is to find the σL
73 % S.L. - z = 0.613
Using this formula to find the σL
σL = (Lσ^2)
Let plug in the formula
σL=√(7(13)^2)
σL= 34.39
Second step is to find the Reorder point using this formula
R = d bar(L) + zσL
Let plug in the formula
Reorder point = (138)(7) + 0.613(34.39)
Reorder point = 966+21
Reorder point=987
Alice and Bob entered into a forward contract some time ago. Alice has the long position, while Bob has the short position. The forward contract will mature in three months and has a delivery price of $40. The current forward price for the contract is $42. The three-month risk-free interest rate (with continuous compounding) is 8%. What is the value Bob's position?
Answer:
$ - 1.96
Explanation:
After three months, Alice (long the contract) can buy the underlying by paying the delivery price of $40 which is $2 less than $42 the long position would have to pay if the contract was entered today.
DATA
Delivery price = $40
The three-month risk-free interest rate (with continuous compounding) =8%.
The current forward price = $42
Solution
So based on the present situation, Alice would be in $2 profit at the end of 3 months and Bob would be in $2 loss
Present value of Bob's loss (with continuous compounding) = 2\times e^{-0.08\times 0.25}
Present value of Bob's loss (with continuous compounding) = $1.96
The value of Bob's position is $ - 1.96
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.
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
In 2009, an 1893 Morgan silver dollar sold for $6,450. Required: What was the rate of return on this investment? (Do not include the percent sign (%). Enter rounded answer as directed, but do not use the rounded numbers in intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Answer: 7.86%
Explanation:
Using the Future Value formula;
= Amount * ( 1 + r)^n
The question is looking for the rate so making that the subject would be;
Assuming the car was $1 in 1893,
And n = 2009 - 1893 = 116 years
FV = Amount * ( 1 + r)^n
( 1 + r)^n = FV/ Amount
1 ^n + r^n = FV / Amount
r = n√((FV/ Amount) / 1^n)
r = n√(FV/ Amount)
r = 116√(6,450/ 1)
= 1.07855
Subtract 1 for the percentage;
= 1.07855 - 1
= 7.86%
KW Steel Corp. uses the LIFO method of inventory valuation. Waretown Steel, KW’s major competitor, instead uses the FIFO method. The following are excerpts from each company’s 20X1 financial statements:
KW Steel Corp. Waretown Steel ($ in millions)
20X1 20X0 20X1 20X0
Balance sheet inventories $797.6 $692.7 $708.2 $688.6
LIFO reserve 378.0 334.9
Sales 4,284.8 4,029.7 3,584.2 3,355.8
Cost of goods sold 3,427.8 3,226.5 2,724.0 2,617.5
Required:
a. Compute each company’s 20X1 gross margin percentage and inventory turnover using cost of goods sold as reported by each company. Restate KW’s cost of goods sold and inventory balances to the FIFO basis. On the basis of its adjusted data, recompute KW’s gross margin percentage and inventory turnover.
b. Restate KW's cost of goods sold and inventory balances to the FIFO basis. On the basis of its adjusted data, re-compute KW's gross margin percentage and inventory turnover. Explain how the revised figures alter your earlier comparisons.
Answer:
KW Steel Corp. and Waretown Steel
LIFO and FIFO Inventory Valuation Methods:
a. Computation of each company's 20X1 gross margin percentage and inventory turnover:
KW Steel Corp. Waretown Steel
($ in millions) ($ in millions)
20X1 20X0 20X1 20X0
B/sheet inventories $797.6 $692.7 $708.2 $688.6
LIFO reserve 378.0 334.9
Sales 4,284.8 4,029.7 3,584.2 3,355.8
Cost of goods sold 3,427.8 3,226.5 2,724.0 2,617.5
Gross margin $857.0 $803.2 $860.0 $738.3
Gross margin % 20% 24%
Average Inventory = $745.15 $698.4
Inventory Turnover 4.6 ($3,427.8/$745.15) 3.9 ($2,724.0/$698.4)
b. Restatement of KW's cost of goods sold and inventory balances to FIFO:
KW Steel Corp. Waretown Steel
($ in millions) ($ in millions)
20X1 20X0 20X1 20X0
Sales 4,284.8 4,029.7 3,584.2 3,355.8
Cost of goods sold $3,805.8 $3,561.40
Gross margin $479.0 $468.3 $860.0 $738.3
Gross margin % 11.2% 24%
Inventory Turnover 9.8 ($3,805.8/$388.75) 3.9 ($2,724.0/$698.4)
c. The performance of KW Steel worsened with the reinstatement of the LIFO reserves. Before the reinstatement, KW Steel was running closely behind its competitor, Waretown Steel. But after the reinstatement, Waretown gave KW Steel more gap in performance. This reinstatement shows that when the performances of two companies are compared based on different criteria, the financial analyst will likely arrive at a wrong conclusion.
Explanation:
a) Data and Calculations:
KW Steel Corp. Waretown Steel
($ in millions) ($ in millions)
20X1 20X0 20X1 20X0
B/sheet inventories $797.6 $692.7 $708.2 $688.6
LIFO reserve 378.0 334.9
Sales 4,284.8 4,029.7 3,584.2 3,355.8
Cost of goods sold 3,427.8 3,226.5 2,724.0 2,617.5
Gross margin $857.0 $803.2 $860.0 $738.3
Gross margin % 20% 24%
Average Inventory = $745.15 $698.4
Inventory Turnover 4.6 ($3,427.8/$745.15) 3.9 ($2,724.0/$698.4)
c.
KW Steel Corp. Waretown Steel
($ in millions) ($ in millions)
20X1 20X0 20X1 20X0
B/sheet inventories $797.6 $692.7 $708.2 $688.6
LIFO reserve 378.0 334.9
FIFO balance $419.6 $357.8
Cost of goods sold 3,427.8 3,226.5 2,724.0 2,617.5
LIFO reserve 378.0 334.9
Average Inventory = $745.15 $698.4
New Average Invt. 388.75
The following information about the payroll for the week ended December 30 was obtained from the records of Pharrell Co.:
Salaries:
Sales salaries: $402,000
Warehouse salaries 210,000
Office salaries 165,000
$777,000
Deductions:
Income tax withheld $135,975
Social security tax withheld 46,620
Medicare tax withheld 11,655
Retirement savings 17,094
Group insurance 13,986
$225,330
Tax rates assumed:
Social security 6%
Medicare 1.5%
State unemployment (employer only) 5.4%
Federal unemployment (employer only) 0.6%
Required:
Assuming that the payroll for the last week of the year is to be paid on December 31, journalize the following entries (refer to the Chart of Accounts for exact wording of account titles):
a. December 30, to record the payroll.
b. December 30, to record the employer's payroll taxes on the payroll to be paid on December 31. Of the total payroll for the last week of the year, $40,000 is subject to unemployment compensation taxes.
Full question attached
Answer and Explanation:
Please find attached
Following are account balances (in millions of dollars) from a recent FedEx annual report, followed by several typical transactions. Assume that the following are account balances on May 31, 2014:
Property and equipment (net) $15,543
Retained earnings 12,716
Accounts payable 1702
Prepaid expenses 329
Accrued expenses payable 1894
Long-term notes payable 1667
Other noncurrent assets 3557
Common stock ($0. 10 par value) 32
Receivables $4,581
Other current assets 610
Cash 2328
Spare parts, supplies, and fuel 437
Other noncurrent liabilities 5616
Other current liabilities 1286
Additional paid-in capital 2472
These accounts are not necessarily in good order and have normal debit or credit balances. Assume the following transactions (in millions) occurred the next year ending May 31, 2015:
a. Provided delivery service to customers, receiving $21,704 in accounts receivable and $17,600 in cash.
b. Purchased new equipment costing $3,434; signed a long-term note.
c. Paid $13,864 cash to rent equipment and aircraft, with $10,136 for rental this year and the rest for rental next year.
d. Spent $3,864 cash to maintain and repair facilities and equipment during the year.
e. Collected $24,285 from customers on account.
f. Repaid $350 on a long-term note (ignore interest).
g. Issued 20 shares of additional stock for $16.
h. Paid employees $15,276 during the year.
i. Purchased for cash and used $8,564 in fuel for the aircraft and equipment during the year.
j. Paid $784 on accounts payable. Ordered $88 in spare parts and supplies.
Question Completion:
Prepare the necessary journal entries without the narration.
Answer:
FedEx
a. Debit Cash $17,600
Debit Accounts Receivable $21,704
Credit Service Revenue $39,304
b. Debit Equipment $3,434
Credit Note Payable (long-term) $3,434
c. Debit Rent Expense $10,136
Debit Prepaid Rent $3,728
Credit Cash Account $13,864
d. Debit Maintenance Expense $3,864
Credit Cash Account $3,864
e. Debit Cash Account $24,285
Credit Accounts Receivable $24,285
f. Debit Long-term Notes Payable $350
Credit Cash Account $350
g. Debit Cash Account $320
Credit Common Stock $2
Credit Additional paid-in capital $318
h. Debit Salaries and Wages Expense $15,276
Credit Cash Account $15,276
i. Debit Spare parts, supplies, and fuel Expense $8,564
Credit Cash Account $8,564
j. Debit Accounts Payable $784
Credit Cash Account $784
k. No journal is required.
Explanation:
With the above journal entries, the accountants at FedEx have recorded the listed business transactions for the first time in the accounts of FedEx. From the entries, these transactions will then be posted to the general ledger where accounts, transactions, and business events are summarized.
Regency Inn leased a rental office in the lobby of its hotel to Americar, a car rental agency. Wagner rented a car from Americar, and while walking through the hotel parking lot to reach her rental car, she was robbed and raped. Wagner sued Regency Inn for damages, alleging that they maintained a public nuisance. A clause in the lease held that Americar was responsible to indemnify Regency Inn for any damages suffered due to the operation of the car rental agency. At the time of the assault on Wagner, Americar was a holdover tenant.
Can Regency Inn claim indemnification under these conditions? Wagner v. Regency Inn Corp., 463 N.W.2d 450 (1990).
Answer:
The court ruled against both Americar and Regency Inn, and then Regency Inn won its case against Americar. The nuisance case itself is pretty unpleasant, so it's not worth referring to it.
The fundamentals for the ruling against Americar were that they themselves had drafted the lease agreement and that the clause included in the lease agreement by which they agreed to indemnify Regency Inn was valid. The original lease term had already expired, but Americar continued to lease the offices on a monthly basis. Since they never left the place, the clauses in the original agreement were still valid even though the lease changed to a monthly basis. I.e. if you sign a lease contract and after the original contract is over, you continue to lease the same place, then the clauses from the original contract still apply.
The clause stated that Americar was liable for damages that took place on the leased premises or in their proximity, i.e. the area near their offices. The parking lot was considered to be in the proximity of Americar's offices.
coomer co had net sales of 600000 net income of 35260 and average total assets of 680000 what is the return on total assets
Answer:Return on Total assets ==5.19%
Explanation:
Return on Total assets shows one the idea of the profitability of a company's assets in generating revenue before interest and taxes. it is expressed in percentage and its formula is given as
Return on Assets = Net Income (Earning before interest and taxes) / Average total assets
= 35,260/ 680,000 = 0.05185 x 100
=5.19%
Answer:
coomer heehee
Explanation:
Appendix 1: Gross and net methods for sales discounts
The following were selected from among the transactions completed by Strong Retail Group during August of the current year:
Aug. 5. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, n/30. The
cost of the merchandise sold was $4,200.
9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The
cost of the merchandise sold was $2,100.
15. Received payment on account for the sale of August 5 less the discount.
20. Sold merchandise on account to S. Mooney, $6,000, terms n/eom. The
cost of the merchandise sold was $3,300.
25. Received payment on account for the sale of August 9. 31.Received
payment on account for the sale of August 20.
A. Journalize the August transactions using the gross method of recording sales discounts.
Aug. 5 Accounts Receivable-M. Quinn 7,500
Sales 7,500
Cost of Goods Sold 4,200
Inventory 4,200
Accounts Receivable-R. Busch 4,000
Sales 4,000
Cost of Goods Sold 2,100
B. Journalize the August transactions using the net method of recording sales discounts.
Answer: Check attachment
Explanation:
A . Journalize the August transactions using the gross method of recording sales discounts
Kindly check the attachment for the solution.
B. Journalize the August transactions using the net method of recording sales discounts.
Check attachment.
What are the limitations and risks of a marketing strategy that does not contemplate the responses of your competitors
Answer:
Throughout the clarification section following, the definition of the given query is explained.
Explanation:
Right, businesses face fierce competition through competitiveness throughout today's time, because it has become extremely necessary for organizations to develop a marketing campaign that makes companies contemplate consumer response.
After all, if any business marketing plan doesn't somehow anticipate competition reaction, then all these threats can occur:
Someone's brand sales should decline as consumers should choose the brand of their rivals. Your company's market position as well as business growth would decline as well as the brand's rivals will rise. Throughout the life cycle of the product, your company will hit the decline point. Your business's share price could decline.