Answer:
a) The adjustments required at the end of the year for the transaction are:
Debit to Insurance Expense for $8,500 and Credit to Prepaid Insurance for $8,500.
b) For this transaction, the Prepaid Insurance account is decreased by $8,500 while the Insurance Expense is increased by $8,500.
Explanation:
a) Data and Calculations:
Prepaid Insurance $11,700
Cash account 7,800
less Prepaid, ending 11,000
Insurance Expense $8,500
External processes targeted in competing on analytics consist of:____.A. Human Resource Management.B. Customer Relationship Management (CRM).C. Enterprise Performance Management.D. Supply Chain Management (SCM).
Answer:
B. Customer Relationship Management (CRM).
Explanation:
Customer relationship management refers to managing a relationship with the customer by providing them excellent products and servcies at reasonable cost in order to build a trust, provide them maximum satisfaction so that the company could able to generate maximum share in the market place. Also it should be more focused to attain competitive advantage
Therefore according to the given situation, the option B is correct
An independent movie producer with a modest but loyal fan base is short of funds for her next movie. Knowing that a bank loan is an unrealistic option, she is considering crowdfunding. But she is not very familiar with it or how to go about starting and conducting a crowdfunding campaign.
Prepare a report for the producer explaining the different approaches to crowdfunding, including the equity funding approach. Alert the producer to any drawbacks that might make people less willing to contribute to funding her movie and positives that might make people more likely to fund her movie. Conclude your report with a recommendation of which crowdfunding approach you believe would be most effective for this independent movie producer.
Answer:
Crowd funding is a strategy to raise small money from a large number of people. This is mainly suitable when large funding is required for a project.
Explanation:
The filmmaker is planning to make a short web series which will be available online for the viewers. The producers might hesitate to finance such small short movie as they will be unsure whether the movie will be able to make money. There can be crowd funding option considered for raising finance for the movie. These small creators and new filmmakers should be supported as they can have better ideas than the rich filmmakers. Crowd funding will be able to raise money and people will pay for the content they want to watch. The movie will create curiosity in the audience before its release and there are high chances that this small content can be a big hit.
Product and Period Costs Identify the following costs as a product cost or a period cost for a magazine publisher: a. Sales salaries b. Paper used for the magazine c. Maintenance on printing machines d. Depreciation expense—corporate headquarters
Answer:
Explanation:
We were told to Identify the following costs as a product cost or a period cost for a magazine publisher:
PRODUCT COST are all the incurred cost during production of a service/ product till it's available to get to the consumer. This could be direct labor as well as over head.
PERIOD COST: are cost that cannot be associated to production cost such as rents, utilities cost that are required for the business.
a). SALES SALARIES
Identification: product cost
b. PAPER USED FOR THE MAGAZINE
Identification: product cost
c. MAINTENANCE ON PRINTING MACHINE
Identification: product cost
d) DEPRECIATION EXPENSES—corporate headquarters
Identification: Period cost
when rival firms compete aggressively by trying to attract competitors' customers, this might be an indication of:
Answer:
Slow industry growth
Explanation:
Slow industry growth is the growth that shows the industry at a slow rate or no growth is there.
It could arise when the consumer does not opt for a high demand
In the given situation, it is mentioned that when competitive firms aggressively trying to attract the customers of competitors so this is an indication of the slow economic growth and hence, the same is to be considered
A(n) _____ refers to a product or service, such as a report, a training session, a piece of hardware, or a segment of software code, produced or provided as part of a project.
for every decision you make, there is a trade off?
Answer:
False
Explanation:
i took the test
What is the urge to form and maintain personal and professional bonds called?
Answer:
The "urge to form and maintain personal and professional bonds" is called belongingness. This is the need to belong to a community. It is a basic emotional need that demands and gives attention to others, whether they are family, friends, co-workers, within residential communities, religious circles, educational, social, and professional environments.
Explanation:
Man and woman are created to be social beings who live in community with other human beings. Man and woman are not created separately. Biblically, when God created Adam, God made him man and woman. Adam was a complete human being. No wonder God made Adam to fall asleep so that He could remove the woman. It is in their unity that they can multiply. And ever since that date, both man and woman have longed to unify. "That is why they are no longer two, but one," and "What God has joined, let no man put asunder," according to Jesus Christ. This is on a personal level, where the family and common community persist.
In our professional and business life, human beings have discovered that they cannot go it alone. There is always the need for synergy. The product of synergistic relationships is always greater than the sum of our individual efforts. Belonging to a professional body, therefore, gives authenticity to our professional achievements. Forming a corporation gives authenticity and expansion to our entrepreneurial efforts. Belongingness grants a stamp of authority, provides a source of guidance, and ensures progress on all fronts.
Bringham Company issues bonds with a par value of $540,000 on their stated issue date. The bonds mature in 6 years and pay 9% annual interest in semi-annual payments. On the issue date, the annual market rate for the bonds is 12%.
1. What is the amount of each seml-annual Interest payment for these bonds?
2. How many semi-annual Interest payments will be made on these bonds over their Iife?
3. Use the Interest rates gven to select whether the bonds are Issued at par, at a discount, or at a premlum.
4. Compute the price of the bonds as of their issue date.
5. Prepare the Journal entry to record the bonds' Issuance.
Answer:
1. $24,300
2. 12
3. the bond is trading at a discount.
4. $470,090.86
5. Journal Entry
Cash $470,090.86 (debit)
Bond Payable $470,090.86 (credit)
Explanation:
1. seml-annual Interest payment
Seml-annual Interest payment = ($540,000 × 9 %) ÷ 2
= $24,300
2. Number of seml-annual Interest payment
Number of seml-annual Interest payment = 6 years × 2
= 12
3. Issue
The annual market rate for the bonds (YTM) , 12% is greater than the coupon rate of the bond 9%.
The Price will be less than the par value and we say that the bond is trading at a discount.
4. Computation of the Issue Price, PV
PMT = $24,300
n = 12
YTM = 12 %
FV = $540,000
p/yr = 2
PV = ?
Using a Financial Calculator, the Issue Price, PV is $470,090.86
5. Journal Entry
Cash $470,090.86 (debit)
Bond Payable $470,090.86 (credit)
The chart compares transportation options. Option A to buy new has a monthly payment of 338 dollars for 60 months, up-front cost of 2,500 dollars, and 275 dollars a month for insurance and gas. Option B to lease new has a monthly payment of 229 dollars for 36 months, up-front cost of 3,925 dollars, and 275 dollars a month for insurance and gas. Option C to buy used has a monthly payment of 250 dollars for 36 months, up-front cost of 2,000 dollars, and 225 dollars per month for insurance and gas. What is a main disadvantage of leasing a vehicle compared to buying a vehicle? the up-front cost the monthly payments the length of payments the cost of insurance and gas
Answer:
Explanation:
The up- front cost
The main disadvantage of leasing a vehicle compared to buying a vehicle is A. the up-front cost.
What is an up-front cost?An up-front cost is a down payment that is required to be made when making an asset purchase transaction.
The up-front cost is usually calculated using an agreed or fixed rate.
For example, a seller of a vehicle may demand an up-front or down payment of 10%.
The up-front cost or down payment reduces the outstanding loan.
Data and Calculations:Options Monthly Maturity Up-front Insurance Total
Payments Period Cost and Gas Costs
Option A to buy new $338 60 months $2,500 $275 $39,280
Option B to lease $229 36 months $3,925 $275 $22,069
Option C to buy used $250 36 months $2,000 $225 $19,100
Thus, the main disadvantage of leasing a vehicle compared to buying a vehicle is A. the up-front cost.
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how do you determine retained earnings at year end
Explanation:
The retained earnings are calculated by adding net income to (or subtracting net losses from) the previous term's retained earnings and then subtracting any net dividend(s) paid to the shareholders. The figure is calculated at the end of each accounting period (quarterly/annually.)
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In the most basic terms, while working out the business process of production and marketing, you need to be continually prepared for?
Answer:
In the most basic terms,while working out the business process of production and marketing, you need to be continually prepared for adapting to new conditions in the market and within your organization.
The following information is for S&P Enterprises for the month of July: Direct materials $76,000 Direct labor $40,000 Variable manufacturing overhead $25,000 Fixed manufacturing overhead $30,000 Variable selling expense $12,000 Fixed selling expense $15,000 Variable administrative expense $6,000 Fixed administrative expense $18,000 Total conversion cost for the month of July was:_______________.
Answer:
Conversion costs= $95,000
Explanation:
Giving the following information:
Direct labor $40,000
Variable manufacturing overhead $25,000
Fixed manufacturing overhead $30,000
The conversion costs are the sum of direct labor and total manufacturing overhead.
Conversion costs= 40,000 + (25,000 + 30,000)
Conversion costs= $95,000
What are some of the key environmental forces that have changed the way projects are managed? What has been the effect of these forces on the management of projects?Why is the implementation of projects important to strategic planning and the project manager?What is meant by an integrative approach to project management? Why is this approach important in today
Answer: The answer is given below
Explanation:
• What are some of the key environmental forces that have changed the way projects are managed?
Some environmental forces which have
altered the way that projects are managed are the knowledge growth, product life cycle, technological changes, global competition, organization downsizing, and time to market.
• What has been the effect of these forces on the management of projects?
The effect of these forces on the management projects is that it resulted in more projects for every organization, it also resulted in changing structures of organization, accountability, the need for rapid completion of projects, the linking of projects to the strategies of the organization and the alliance with the external organizations.
• Why is the implementation of projects important to strategic planning and the project manager?
Strategic plans are typically implemented through projects. This could be through a new information system, a new product, or new plant for new product. It should be noted that the project manager is responsible for the timely completion of the project within the budget, and also within specifications in order for the customers to be satisfied. In cases whereby the project is not being linked to a organization's strategic plan, the resources that are being devoted to the project will result into wastage.
• What is meant by an integrative approach to project management? Why is this approach important in today?
An integrative approach to project management simply refers to one whereby there are interrelationships between all the parts. It should be noted that the approach is vital as an organization that utilizes it has a competitive edge and also provides an integrated system that is required for project implementation.
What is the most important component in planning a special event as a way to both advocate for your programs and raise funds?
a. risk management
b. strong leadership
c. signage
d. hospitality
Incomplete manufacturing costs, expenses, and selling data for two different cases are as follows.Incomplete manufacturing costs, expenses, and sellIncomplete manufacturing costs, expenses, and sell Collapse question part(a) Indicate the missing amount for each letter.Case 1 2Direct materials used $9,600 $Direct labor 5,000 8,000 Manufacturing overhead 8,000 4,000 Total manufacturing costs 16,000 Beginning work in process 1,000 inventoryEnding work in process inventory 3,000 Sales revenue 24,500 Sales discounts 2,500 1,400 Cost of goods manufactured 17,000 22,000 Beginning finished goods inventory 3,300 Goods available for sale 20,000 Cost of goods sold Ending finished goods inventory 3,400 2,500 Gross profit 7,000 Operating expenses 2,500 Net income 5,000b) Prepare a condensed cost of goods manaufactures schdule ffor Case1c1) Prepare an Income statement for Case 1c2) Prepare the current assets section of the balance sheet for Case1. Assume that in Case 1 the other items in the current assets section are as follows: Cash $4,000, Receivables (net) $15,000, Raw Materials $600 and Prepaid Expenses $400.
Answer:
a. Incomplete Manufacturing Costs:
Case 1 Case 2
Direct materials used $9,600 $ 4,000
Direct labor 5,000 8,000
Manufacturing overhead 8,000 4,000
Total manufacturing costs 22,600 16,000
Beginning work in process inventory 1,000 9,000
Ending work in process inventory 6,600 3,000
Sales revenue 24,500 30,900
Sales discounts 2,500 1,400
Cost of goods manufactured 17,000 22,000
Beginning finished goods inventory 3,000 3,000
Goods available for sale 20,000 25,000
Cost of goods sold 16,600 22,500
Ending finished goods in inventory 3,400 2,500
Gross profit 5,400 7,000
Operating expenses 2,500 2,000
Net Income 2,900 5,000
b. Condensed cost of goods manufactured schedule for Case 1:
Direct materials used $9,600
Direct labor 5,000
Manufacturing overhead 8,000
Total manufacturing costs 22,600
Beginning WIP inventory 1,000
Ending WIP inventory 6,600
Cost of goods manufactured $17,000
c1. Income Statement for Case 1:
Sales Revenue, net $22,000
Cost of goods sold 16,600
Gross profit $5,400
Operating expenses 2,500
Net income $2,900
c2. Current Assets Section of the Balance Sheet for Case 1:
Cash $4,000
Receivables (net) 15,000
Inventory: Raw materials 600
WIP 6,600
Finished Goods 3,400
Prepaid Expenses 400
Total current assets $30,000
Explanation:
Data for incomplete manufacturing costs, including the income statement can be prepared by working back and forth with the provided figures. The missing figures are provided in bold font as above.
Payments made on a fixed annuity contract are withdrawn from the:_______
Answer:
insurance company general account
Explanation:
The insurance company general account is simply referred to as the account in which all the funds aside those exclusively defined to be separated, are deposited for the customary operation ( that is, to pay claims and benefits) of the insurance firm.
For example, funds such as premiums for life insurance, fixed annuities, assets in the fixed portfolios of variable annuities.
Hence, Payments made on a fixed annuity contract are withdrawn from the: Insurance company general account
You are asked to compose a job description for the position of director of sales at your company. This is a position you once held, so you are familiar with the requirements and qualifications. Before beginning to write, you look in the files for past descriptions and check with your supervisor about details to include. What research method did you use in this situation?
Answer: Informal research
Explanation:
Informal research are forms of research whereby information are collected in an informal way and not through sampling precision or statistical methods. It is a cost effective strategy methods.
In this scenario, since the person knows about the requirements for the position of director of sales at the company, the person is using an informal method by asking the supervisor about details to include.
True or false: Managerial accounting provides information to internal managers who make decisions about a company's business activities.
Answer:True
Explanation:
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2011, the end of its fiscal year, included the following account balances. Manufacturing�s 2011 financial statements were issued on April 1, 2012.
Accounts receivable $ 92,500
Accounts payable 35,000
Bank notes payable 600,000
Mortgage note payable 1,200,000
Other information:
a. The bank notes, issued August 1, 2011, are due on July 31, 2012, and pay interest at a rate of 10%, payable at maturity.
b. The mortgage note is due on March 1, 2012. Interest at 9% has been paid up to December 31 (assume 9% is a realistic rate). Manufacturing intended at December 31, 2011, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $250,000 in cash on the principal balance and refinanced the remaining $950,000.
c. Included in the accounts receivable balance at December 31, 2011, were two subsidiary accounts that had been overpaid and had credit balances totaling $18,000. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases.
d. On November 1, 2011, Manufacturing rented a portion of its factory to a tenant for $30,000 per year, payable in advance. The payment for the 12 months ended October 31, 2012, was received as required and was credited to rent revenue.
Required:
(1) Prepare any necessary adjusting journal entries at December 31, 2011, pertaining to each item of other information (a�d).
(2) Prepare the current and long-term liability sections of the December 31, 2011, balance sheet.
Answer:
1. A.
Dec 31
DR Interest Expense ...............................................$25,000
CR Interest Payable ..................................................................$25,000
(To record interest payable on bank notes for the year)
Working
= 10% * 600,000
= $60,000 per year
August to December 5 months
= 60,000/ 12 months * 5
= $25,000
B. No entry required. Payment of $250,000 shall be considered short term liability as it is to be paid in less than a year. The $950,000 shall be a long term liability.
C.
Dec 31,
DR Accounts Receivable...............................................$18,000
CR Advance from Customers.......................................................$18,000
D.
Dec 31,
DR Rent Revenue ............................................................$25,000
CR Rent received in advance.........................................................$25,000
Working
Rent is $30,000 from the tenant starting November 1 which means rent needs to be apportioned to 2 months in 2011.
= 30,000/12 moths * 2
= $5,000
Rent to be recorded as received in advance;
= 30,000 - 5,000
= $25,000
2.
..................................Liabilities as at December 31, 2011............................
Current Liabilities
Accounts Payable ......................................................$35,000
Current Portion of debt .............................................$250,000
Advance from Customers.........................................$18,000
Accrued Interest payable..........................................$25,000
Unearned rent revenue.............................................$25,000
Bank notes payable....................................................$600,000
Total................................................................................$953,000
Long Term Liabilities
Mortgage Note Payable ............................................$950,000
Total .................................................................................$950,000
Which of the following is most associated with managerial accounting?a. must follow GAAPb. may rely on estimates and forecastsc. is prepared for users outside the organizationd. balways reports on the entire entity
Answer:
b. may rely on estimates and forecasts
Explanation:
Managerial accounting involves not only financial information, it might also include information about production processes, customer satisfaction, etc. E.g. defective units, budgeted production output, % of closed sales, etc. Managerial accounting is used by management to supervise and control how the company is operating, not necessarily if it is making a profit or not.
If Bethany Lewis receives a check payable to the order of Bethanie Louis, she:______.
The available options are:
a. can indorse the check either "Bethany Lewis" or "Bethanie Louis."
b. will need to ask the drawer to send her a new check.
c. will not be able to cash the check.
d. must use a restrictive indorsement to cash the check.
Answer:
a. can indorse the check either "Bethany Lewis" or "Bethanie Louis."
Explanation:
When it comes to financial related matters, most specifically, on the issue of cheque, Indorsement is a financial related term that describes a legal signature, (often signed at the back of a cheque), which serves as a form of approval, to ensure the cheque is payable to individual aside the designated payee.
Hence, in this case, Bethany Lewis can indorse the check either "Bethany Lewis" or "Bethanie Louis."
Answer:
idek
Explanation:
lmbo
Computers used to produce magazine articles is it land or capital
Answer:
captial
Explanation:
Land means things like natural resources, labor is the manual work force that either makes capital products or turns natural resources into a useable product to work, and capital is anything made that is used to make something else.
When computers are used to produce magazine articles the main factor of production is capital.
To an economist, capital often refers to liquid assets. In other words, it is cash on hand that may be used on either daily requirements or long-term initiatives.
Capital refers to the funds or resources utilized to launch a firm. Capital is a resource that might be money or anything in kind that is used to buy more raw materials and inputs. It is a critical component since every firm needs some initial money.
Therefore, the main factor of production is capital.
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This is an incomplete question, the complete question is:
What is the factor of production when computers are used to produce magazine articles?
Do you agree or disagree with the manager’s decision of when to ship goods to customers and record the revenue? Explain your reasoning. Is there an accounting rule against this practice?
Answer:
sorry
Explanation:
Consider the borrowing rates for Parties A and B. A wants to finance a $100,000,000 project at a FIXED rate. B wants to finance a $100,000,000 project at a FLOATING rate. Both firms want the same maturity, 5 years.
Fim Fixed Rate Floating
A $10.3% Prime + 1%
B $8.900 Prime +4%
Construct a mutually beneficial INTEREST ONLY swap that makes money for A, B, and the swap bank IN EQUAL MEASURE.
Answer:
party A will pay floating rate while party B will pay fixed rate
Explanation:
For A
Sources at floating rate = prime 1%
received fixed rate = 8.9%
For B
sources fixed rate = 8.9%
Received floating rate = prime 1%
For a mutually beneficial interest only swap that makes money for A,Band the swap bank in equal measure, the party A will pay floating rate while party B will pay fixed rate
________ can be categorized as popularity, relevancy, and user satisfaction. a. Mobile search SEO b. Ranking factors c. SERP d. Web analytics
Answer:
b. Ranking factors
Explanation:
Ranking factors are used to try to rank or determine which websites are better in certain fields or factors. E.g. which sites rank in top on mobile friendliness. It is just a way to classify websites or apps and categorize them. Another e.g., which apps rank in top in user experience. Companies can use these ranking factors and their results as benchmarks on what they can do to improve.
Sadar Company operates a store with two departments: videos and music. Information about those departments follows. Videos Departmen Music Department Sales .. $370,500 279500Cost of goods sold 320000 175000 Direct expenses Salaries 35,000 25000Maintenance. 12000 10000Utilities 5000 4500 Insurance 4200 3700The company also incurred the following indirect costs Advertising 15000Salaries 27000 Office expenses 3,200 Indirect costs are allocated as follows: advertising on the basis of sales; salaries on the basis of number of employees; and office expenses on the basis of square footage. Additional information about the departments follows. Department Square footage Number of employees Videos 5,000 3 Music 3,000 2Required 1. For each department, determine the departmental contribution to overhead and the departmental net income. 2. Should the video department be eliminated?
Answer:
Sadar Company
1. Departmental Contribution and Net Income:
Videos Department Music Department
Sales $370,500 279,500
Cost of goods sold 320,000 175,000
Contribution $ 50,500 104,500
Direct expenses:
Salaries 35,000 25,000
Maintenance 12,000 10,000
Utilities 5,000 4,500
Insurance 4,200 3,700
Indirect expenses:
Advertising 8,550 6,450
Salaries 16,200 10,400
Office expenses 2,000 1,200
Total expenses: $82,950 61,250
Net Income (Loss) $(133,450) 43,250
2. Video Department should be eliminated from the profit point of view. Its indirect costs of $26,750 can be absorbed by the Music Department.
Explanation:
a) Data and Calculations:
Videos Department Music Department
Sales $370,500 279500
Cost of goods sold 320000 175000
Direct expenses:
Salaries 35,000 25000
Maintenance 12000 10000
Utilities 5000 4500
Insurance 4200 3700
Indirect expenses:
Advertising 8,550 6,450
Salaries 16,200 10,400
Office expenses 2,000 1,200
Indirect Costs:
Advertising 15000 Sales
Salaries 27000 Number of employees
Office expenses 3,200 Square footage
Department Square footage Number of employees
Videos 5,000 3
Music 3,000 2
Indirect Costs Allocation:
Videos Department Music Department
Sales $370,500 279,500
Advertising 15000 8,550 6,450
Sales
Salaries 27000 16,200 10,400
Number of employees
Office expenses 3,200 2,000 1,200
Square footage
The following is a December 31, 2021, post-closing trial balance for Almway Corporation.
Answer:
TOTAL ASSETS $1,043,000
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $1,043,000
Explanation:
Preparation of a balance sheet for the Almway Corporation at December 31, 2021.
ALMWAY corporation
Balance sheet at December 31,2018
ASSETS
Current Assets
Cash and cash equivalent$47,000
($79,000-$32,000)
Short term investment $97,000
($144,000-$47,000)
Account receivable net of allowances $77,000
Inventories $217,000
Prepaid insurance $5,000
TOTAL CURRENT ASSETS $443,000
INVESTMENT
Marketable securities $47,000
Land held for sale $42,000
Restricted cash $32,000
TOTAL INVESTMENT $121,000
Plant property and equipment
Land $82,000
($124,000-$42,000)
Building $437,000
Accumulated deperation Building ($117,000)
Equipment $127,000
Accumulated deperation Equipment ($77,000)
NET PLANT PROPERTY AND EQUIPMENT $452,000
INTANGIBLE ASSETS
Patents ( net of amortization) $27,000
TOTAL ASSETS $1,043,000
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities
Account payable $109,000
Interest payable $37,000
Note payable due in 6 months $47,000
Current maturity of long term debt notes payable $13,400
TOTAL CURRENT LIABILITY $206,400
LONG TERM LIABILITIES
Notes payable $120,600
($181,000-$47,000-$13,400)
Bond payable $257,000
TOTAL LONGTERM LIABILITIES $377,600
SHAREHOLDER EQUITY
Authorised 500,000 shares
Issued and outstanding shares $351,000
Retained earnings $108,000
Total shareholders equity $459,000
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $1,043,000
The assets and liabilities of Amos Moving Services at March 31, 2011, the end of the current year, and its revenue and expenses for the year are listed below. The capital of the owner was $180,000 at April 1, 2010, the beginning of the current year. Mr. Amos invested an additional $25,000 in the business during the year. Accounts Payable $1,200 Miscellaneous Expense $230 Accounts Receivable $10,340 Office Expense $1,240 Cash $32,320 Supplies $1,670 Fees Earned $84,350 Wages Expense $23,550 Land $47,000 Amos, Drawing $16,570 Building $155,960Prepare an income statement for the current year ended May 31, 2011.Fees Earned credit 84350Expenses: ? ? ?Total Expenses ?net income or net loss ??
Answer:
Income statement for the year ended May 31, 2011
Fees Earned $84,350
Less Expenses :
Miscellaneous Expense $230
Office Expense $1,240
Wages Expense $23,550 ($25,020)
Net Income / (Loss) $59,330
Explanation:
The Income Statement shows the results from entity`s operating activities during the period. Profit or Loss = Revenue less Expenses.
Robinson Co. had the following transactions in 2016, its first year of operations.
Cash sales were $150,000.
Credit sales were $160,000. Of this, $125,000 was collected from customers in 2006 and the balance will be collected in 2007.
Paid utilities expense of $32,000 in cash.
Purchased materials and supplies costing $75,000 with cash. $25,000 of materials and supplies remained on hand at December 31.
Purchased equipment on January 1 for $50,000. The equipment had a five year estimated useful life and zero salvage value. It is depreciated on a straight-line basis.
Paid $65,000 in employee wages for work performed in 2006. Owed additional wages of $12,000 at December 31.
Purchased a two-year fire insurance policy for $36,000 cash on January 1.
Declared and paid a dividend of $5,000.
Calculate income on a cash-basis and an accrual basis.
Answer:
Income Statement (cash basis)
Sales revenue $275,000
Utilities ($32,000)
Materials and supplies ($75,000)
Equipment ($50,000)
Wages ($65,000)
Insurance ($36,000)
Net income = $17,000
Income Statement (accrual basis)
Sales revenue $310,000
Utilities ($32,000)
Materials and supplies ($50,000)
Depreciation expense: equipment ($10,000)
Wages ($77,000)
Insurance ($18,000)
Net income = $123,000
An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017 Inventory Beginning Ending Raw materials $9,180 $17,480Work in process 5,670 7,610 Finished goods 9,300 6,430Costs incurred: raw materials purchases $55,020, direct labor $51,740, manufacturing overhead $23,300. The specific overhead costs were: indirect labor $6,510, factory insurance $4,700, machinery depreciation $4,380, machinery repairs $1,990, factory utilities $3,740, and miscellaneous factory costs $1,980. Assume that all raw materials used were direct materials. Prepare the cost of goods manufactured schedule for the month ended June 30, 2017
Answer:
Cost of goods manufactured schedule for the month ended June 30, 2017
Raw Materials $46,720
Direct Labor $51,740
Manufacturing Overhead :
Indirect labor $6,510
Factory insurance $4,700
Machinery depreciation $4,380
Machinery repairs $1,990
Factory utilities $3,740
Miscellaneous factory costs $1,980
Add Opening Work in process Inventory $5,670
Less Closing Work in process Inventory ($7,610)
Cost of goods manufactured $119,820
Explanation:
Cost of goods manufactured schedule is a summary of manufacturing costs for the production period.
Determination of Raw Materials In Production
Raw Materials T - Account
Debit :
Opening Balance $9,180
Purchases $55,020
Totals $64,200
Credit :
Work In Process (Balancing figure) $46,720
Closing Balance $17,480
Totals $64,200