Answer and Explanation:
The preparation of the production budget is presented below:
Particulars VCH MTV
Expected Sales:
Eastern zone 12500 12960
Midwest zone 19000 19800
Western zone 14500 9840
Add: Desired inventory 6900 5250
Less: Opening inventory (2900) (4000)
Production in units 50,000 43,850
Corruptco is a large machine shop that fabricates metals. Corruptco maximizes profits and shareholder value by polluting the local river, where fish are often killed off due to the pollution, rather than installing a pollution abatement device. While this is not specifically in violation of the law, it does put burdens on the local community. Which theory of corporate social responsibility is Corruptco exhibiting
Answer: a. the narrow view, or invisible hand theory
Explanation:
When it comes to the narrow view theory of corporate social responsibility, companies put one thing above all else, the maximisation of shareholder wealth.
Any activity that would help them do so - legally - is considered fair game even if it leads to adverse effects. Corruptco is therefore adhering to this theory because they are polluting the the local river to maximize shareholder value.
Corinne is offered a job with a salary of $70,000, which she turns down to start her own business. She uses $20,000 of her own savings to help start the business, savings that had been providing her a return of $1,000 per year. Over her first year in business, Corinne collects total revenue of $180,000 and must cover explicit costs of $105,000. During her first year in business, Corinne's accounting profit is _____, and her economic profit is _____.
Answer:
Accounting profit $75,000
Economic profit $4,000
Explanation:
Calculation to determine the ACCOUNTING PROFIT
Using this formula
Accounting profit=Total revenue - Isxplicit costs
Let plug in the formula
Accounting profit=$180,000- $105,000
Accounting profit=$75,000
Calculation to determine the ECONOMIC PROFIT using this formula
Economic profit=Total revenue-Explicit costs of -Salary-Return per year
Let plug in the formula
Economic profit=$180,000-$105,00-$70,000-$1,000
Economic profit=$4,000
Therefore During her first year in business, Corinne's accounting profit is $75,000 and her economic profit is $4,000
Manufacturers Southern leased high-tech electronic equipment from International Machines on January 1, 2021. International Machines manufactured the equipment at a cost of $94,000. Manufacturers Southern's fiscal year ends December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $18,200 at the beginning of each period Economic life of asset 2 years Fair value of asset $138,287 Implicit interest rate 6% Required: 1. Show how International Machines determined the $18,200 quarterly lease payments. 2. Prepare appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
Answer:
1. $18,200 per quarter
2. 1-Jan-21
Dr Lease Receivable $138,287
Dr Cost of Goods Sold $94, 000
Cr Inventory of Equipment $94,000
Cr Sales Revenue $138,287
Dr Cash $18,200
Cr Lease Receivable $18,200
1-Apr-21
Dr Cash $18,200
Cr Lease Revenue $1,801
Cr Lease Receivable $16,399
Explanation:
1. Calculation to Show how International Machines determined the $18,200 quarterly lease payments
First step is to find the Present value of annuity at period start
Lease term=n = 2 x 4 quarters
Lease term=n= 8 periods
Fair value of asset = $138,287
Implicit interest rate, i = 6%, quarterly rate = 6%/4 Implicit interest rate= 1.5%
Present value of annuity at period start at 1.5%, 8 periods
Present value of annuity at period start = 7.5982
Now let determine the quarterly payments
Quarterly payments= $138,287/7.5982
Quarterly payments = $18,200 per quarter
Therefore the quarterly lease payments is $18,200
2) Preparation of the appropriate entries for International Machines to record the lease at its beginning, January 1, 2021, and the second lease payment on April 1, 2021.
1-Jan-21
Dr Lease Receivable $138,287
Dr Cost of Goods Sold $94, 000
Cr Inventory of Equipment $94,000
Cr Sales Revenue $138,287
(To record lease at its beginning)
Dr Cash $18,200
Cr Lease Receivable $18,200
(To record lease at its beginning)
1-Apr-21
Dr Cash $18,200
Cr Lease Revenue $1,801
Cr Lease Receivable $16,399
(To record second lease payment)
Calculation of lease revenue as on April 1, 2021
Lease revenue = ($138,287 – $18,200) x 1.5%
Lease revenue= $120,087×1.5%
Lease revenue= $1,801
Lease receivable = $18,200 – $1,801
Lease receivable = $16,399
Clampett, Incorporated, has been an S corporation since its inception. On July 15, 2021, Clampett, Incorporated, distributed $42,500 to J.D. His basis in his Clampett, Incorporated, stock on January 1, 2021, was $36,000. For 2021, J.D. was allocated $11,800 of ordinary income from Clampett, Incorporated, and no separately stated items. How much capital gain does J.D. recognize related to Clampett, Incorporated, in 2021
Answer:
See bellw
Explanation:
Income of J.D related to Clampett = Ordinary income + Capital gain
Given that
Basis distribution = $42,500
Basis stock = $36,000
Ordinary = $11,800
But Capital gain = Basis distribution - (Basis stock + Ordinary income
= $42,500 - ($36,000 + $11,800)
= $42,500 - $47,800
= - $5,300
Therefore, J.D income related to Clampett
= Ordinary income + Capital gain
= $11,800 - $5,300
= $6,500
We have implicitly assumed that Ace Airline starts paying the salary of $15,000 per month only at the end of the two-month school. Such a practice drew significant complaints from the trainees. Ace decided to change its practice and pay the trainees during the training session as well. How would the new policy change Ace's class size
Answer:
Ace Airline class size will increase as more trainees would be willing to work with Ace Airlines.
Explanation:
Ace airlines is paying trainees $15,000 per month after they complete their training. There was a complain by trainees that they are not paid for the training and the training expense is born by the trainees themselves. Ace decides to pay the trainees for the training sessions as well and this will attract more trainees to work for Ace.
Select the correct word(s) from the drop down menu to finish the following sentences:
Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are_____. If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are_____. Considering those two characteristics, fish in the ocean are____.
Question Completion:
Drop-down menu:
- excludable
- non-excludable
- rivalrous
- non-rivalrous
- common goods
- club goods
- public goods
- private goods
Answer:
Correct words to finish the sentences:
Fish in the ocean can be caught by anyone, and it is difficult to prevent people from fishing, in this sense, fish in the oceans are__non-excludable___.
If I catch a fish, that means there is one less fish in the sea for someone else to catch. Therefore, fish are__rivalrous___.
Considering those two characteristics, fish in the ocean are_common goods___.
Explanation:
The two key characteristics of a public good are: it is non-excludable and non-rivalrous. A common good is non-excludable but rivalrous. A private good is excludable and rivalrous. A club good is excludable and non-rivalrous.
Non-excludable refers to goods that are costly and impossible for a person to exclude other users from using the goods.
Non-rivalrous good refers to goods that a person can use without preventing others from using the goods.
Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevant data are summarized below: Contract amount $ 3,000,000 Cost: 2020 1,200,000 2021 600,000 Gross profit: 2020 800,000 2021 400,000 Contract billings: 2020 1,500,000 2021 1,500,000 ADH recognizes revenue over time with respect to these contracts. What would be the journal entry made in 2020 to record revenue
Answer:
Dr Construction $800,000
Dr Cost of construction $1,200,000
Cr Revenue form long-term contracts $2,000,000
Explanation:
Preparation of the journal entry made in 2020 to record revenue.
Based on the information given What would be the journal entry made in 2020 to record revenue is
Dr Construction $800,000
Dr Cost of construction $1,200,000
Cr Revenue form long-term contracts $2,000,000
($800,000+$1,200,000)
(Being to record revenue)
Bull'sEye sells gift cards redeemable for Bull'sEye products either in-store or online. During 2018, Bull'sEye sold $2,000,000 of gift cards, and $1,800,000 of the gift cards were redeemed for products. As of December 31, 2018, $150,000 of the remaining gift cards had passed the date at which Bull'sEye concludes that the cards will never be redeemed. How much gift card revenue should Bull'sEye recognize in 2018
Answer:
$1,950,000
Explanation:
Calculation to determine How much gift card revenue should Bull'sEye recognize in 2018
Gift cards redeemed $1,800,000
Add December 31, 2018 Remaining gift $150,000
Revenue Recognized $1,950,000
($1,800,000+$150,000)
Therefore How much gift card revenue should Bull'sEye recognize in 2018 is $1,950,000
Current Attempt in Progress
Cullumber Company entered into these transactions during May 2022, its first month of operations.
1. Stockholders invested $42,500 in the business in exchange for common stock of the company.
2. Purchased computers for office use for $31,900 from Ladd on account.
3. Paid $2,900 cash for May rent on storage space.
4. Performed computer services worth $17,900 on account.
5. Performed computer services for Wharton Construction Company for $5,400 cash.
6. Paid Western States Power Co. $8,300 cash for energy usage in May.
7. Paid Ladd for the computers purchased in (2).
8. Incurred advertising expense for May of $1,600 on account.
9. Received $14,000 cash from customers for contracts billed in (4).
Create a tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders' Equity in the far right column. (If a transaction causes a decrease in Assets, Liabilities or Stockholders' Equity, place a negative sign (or parentheses) in front of the amount entered for the particular Asset, Liability or Equity item that was reduced.)
Answer:
Assets = Liabilities + Stockholders' Equity = $68,600
Explanation:
Note: See the attached excel file for the tabular analysis of the effect of each transaction on the accounting equation.
From the attached excel file, we have:
Assetes = Total assets balance = = $18,800 + $17,900 + 31,900 = $68,600
Liabilities = Total liabilities balance = $1,600
Stockholders' Equity = Total Common Stock balance + Total Net Income balance = $42,500 + $25,500 = $67,000
Liabilities + Stockholders' Equity = $1,600 + $67,000 = $68,600
Therefore, we have:
Assets = Liabilities + Stockholders' Equity = $68,600
A firm has the following production relationship between labor and output, for a fixed capital stock.
Libor
0
1
Output
0
5
2
3
4
5
19
23
26
According to the above table saatis the average product of labor when three laborers are employed?
03
Answer:
12 i think but what are the answer choices.
Explanation:
Old Economy Traders opened an account to short-sell 1,300 shares of Internet Dreams at $46 per share. The initial margin requirement was 50%. (The margin account pays no interest.) A year later, the price of Internet Dreams has risen from $46 to $59, and the stock has paid a dividend of $3.50 per share. a. What is the remaining margin in the account? (Round your answer to the nearest whole dollar.)
Answer: $8450
Explanation:
First, we need to calculate the total initial asset which will be the value of shares sold and the margin which will be:
= (1300 × $46) + (50% × 1300 × $46)
= $59800 + $29900
= $89700
We will then calculate total liability which will be:
= (1300 × $59) + (1300 × $3.50)
= $76700 + $4550
= $81250
The remaining margin will then be:
= $89700 - $81250
= $8450
At December 31 of the current year, Sunland Corporation had a number of items that were not reflected in its accounting records. Maintenance and repair costs of $900 were incurred but not paid. Utilities costing $370 were used but not paid, and use of a warehouse space worth $2,070 was provided to a tenant who had not been billed as of the end of the month. Record the required adjusting entries related to these events.
Answer:
Dr Maintenance and repair expense $900
Cr Accrued expense $900
Being entries to record maintenance and repair costs incurred
Utilities costing $370 were used but not paid
Dr Utilities expense $900
Cr Accrued expense $900
Being entries to record utilities used but unpaid for
use of a warehouse space worth $2,070 was provided to a tenant who had not been billed as of the end of the month
Dr Unbilled receivables $2,070
Cr Rental Income $2,070
Being entries to recognize income from warehouse space unbilled
Explanation:
When an expense is incurred but unpaid for, an accrual is recognized to capture the cost. For income earned but unbilled, unbilled receivable is recognized. This is based on the accrual concept.
Considering the transactions given
Maintenance and repair costs of $900 were incurred but not paid
Dr Maintenance and repair expense $900
Cr Accrued expense $900
Being entries to record maintenance and repair costs incurred
Utilities costing $370 were used but not paid
Dr Utilities expense $900
Cr Accrued expense $900
Being entries to record utilities used but unpaid for
use of a warehouse space worth $2,070 was provided to a tenant who had not been billed as of the end of the month
Dr Unbilled receivables $2,070
Cr Rental Income $2,070
Being entries to recognize income from warehouse space unbilled
McGill and Smyth have capital balances on January 1 of $50,000 and $40,000 respectively . The partnership income sharing agreements provides for (1) annual salaries of $22,000 for Mcgill and $13,000 for Smyth (2) interest at 10% on beginning capital balances and (3) remaining income or loss to be shared 60% by McGill and 40% by Smyth .
(a) Prepare a schedule showing the distribution of net income assuming net income is
(1) $50,000 and
(2) $ 36,000
(b) Journalize the allocation of net income in each of the situation above .
Answer:
(a-1) Remaining income (loss) = $6,000
(a-2) Remaining income (loss) = –$8,000
(b) See (b-1) and (b-2) below for the journal entries.
Explanation:
(a-1) Prepare a schedule showing the distribution of net income assuming net income is $50,000.
Note: See part a-1 of the attached excel file for the schedule showing the distribution of net income.
In the attached excel file, the following is used:
Remaining income (loss) = Net income - Total annual salaries and interest on capital = $50,000 - $44,000 = $6,000
(a-2) Prepare a schedule showing the distribution of net income assuming net income is $36,000.
Note: See part a-2 of the attached excel file for the schedule showing the distribution of net income.
In the attached excel file, the following is used:
Remaining income (loss) = Net income - Total annual salaries and interest on capital = $36,000 - $44,000 = –$8,000
(b-1) Journalize the allocation of net income assuming net income is $50,000
The journal entries will look as follows:
Account Titles and Explanation Debit ($) Credit ($)
Income Summary 50,000
McGill Capital 30,600
Smyth Capital 19,400
(To record allocation of net income.)
(b-2) Journalize the allocation of net income assuming net income is $36,000
The journal entries will look as follows:
Account Titles and Explanation Debit ($) Credit ($)
Income Summary 36,000
McGill Capital 22,200
Smyth Capital 13,800
(To record allocation of net income.)
Assume the following information for Splish Brothers Corp.
Accounts receivable (beginning balance) $143,000
Allowance for doubtful accounts (beginning balance) 11,470
Net credit sales 950,000
Collections 902,000
Write-offs of accounts receivable 5,500
Collections of accounts previously written off 2,300
Uncollectible accounts are expected to be 9% of the ending balance in accounts receivable.
1. Prepare the entry to record the write-off of uncollectible accounts during the period.
2. Prepare the entries to record the recovery of the uncollectible account during the period.
3. Prepare the entry to record bad debt expense for the period.
The customer-service department at Park-E Bank complains it is unable to keep track of its new business clients as the department handling data compilation has failed to enable a free exchange of information between the two departments. This has hindered the customer-service department to follow up on its customers' queries and update their relationship status with the bank. This has also impacted the department's sales target. This scenario exemplifies conflict due to
Answer:
task interdependence
Explanation:
Task interdependence is a form of conflict that occurs when there is more than one department needed to complete a task, and when one of them fails, consequently the other is affected and the task is not completed effectively. This is the case of Park-E Bank, which complains that it is unable to keep up with its new commercial customers, as the department that deals with the compilation of data has failed to allow the free exchange of information between the two departments.
The interdependence of tasks is a conflict that affects organizational activities as a whole, and can bring essential problems for the correct flow of business, it is necessary then that there is a correct management, control and coordination of tasks to reduce the bottlenecks found in organizational processes and improve continuous improvement that is beneficial for all organizational systems to operate correctly.
Park Co.'s wholly-owned subsidiary, Schnell Corp., maintains its accounting records in German marks. Because all of Schnell's branch offices are in Switzerland, its functional currency is the Swiss franc. Remeasurement of Schnell's 20X1 financial statements resulted in a $7,600 gain, and translation of its financial statements resulted in an $8,100 gain. What amount should Park report as a foreign exchange gain in its income statement for the year ended December 31, 20X1
Answer: $7600
Explanation:
The amount that Park should report as a foreign exchange gain in its income statement for the year ended December 31, 20X1 will be $7600.
We should note that when we want to determine the net income for a particular period, the translatation adjustments will not be included. Therefore the $8100 gain won't be included in the calculation. Hence, Park should report only $7600 gain.
Assets Liabilities and Equity Current assets: Current liabilities: Cash $ 60 Accounts payable $ 240 Accounts receivable (net) 170 Other current liabilities 80 Notes receivable 50 Total current liabilities 320 Inventory 200 Long-term liabilities 110 Prepaid expenses 25 Total liabilities 430 Total current assets 505 Shareholders' equity: Equipment (net) 255 Common stock 150 Retained earnings 180 Total shareholders' equity 330 Total assets $ 760 Total liabilities and equity $ 760 The current ratio is (Round your answer to 2 decimal places.):
Answer:
the current ratio is 1.58 times
Explanation:
The computation of the current ratio is shown below:
As we know that
Current ratio = Current assets ÷ current liabilities
= $505 ÷ $320
= 1.58 times
By dividing the current assets from the current liabilities we can get the current ratio
hence, the current ratio is 1.58 times
It is used for analyzing the liquidating position of the company
Expenses recognition Sun Microsystems uses the accrual basis of accounting and recognizes revenue at the Lime it sells goods or renders services. It applies U.S. GAAP and reports in U.S. dollars. Indicate the amount of expenses (if any) the firm recognizes during the months of June. July, and August in each of the following hypothetical transactions. The firm does the following:
a. Pays $180,000 on July 1 for one year’s rent on a warehouse beginning on that date.
b. Receives a utility bill on July 2 totaling $4,560 for services received during June. It pays the utility bill during July.
c. Purchases office supplies on account costing $12,600 during July. It pays $5,500 for these purchases during July and the remainder during August. Office supplies on hand on July 1 cost $2,400, on July 31 cost $9,200, and On August 31 cost $2,900.
d. Pays $7,200 on July 15 for property taxes on office facilities for the current calendar year.
e. Pays $2,000 on July 15 as a deposit on a custom-made delivery van that the manufacturer will deliver on September 30.
f. Pays $4,500 on July 25 as an advance on the August salary of an employee.
g. Pays $6,600 on July 25 for advertisements that appeared in computer journals during June.
Answer:
Sun Microsystems
Amount of Expenses to recognize during the months of June, July, and August in each of the following transactions:
a. Rent Expense = $30,000
b. Utility Expense = $4,650
c. Supplies Expense = $9,700
d. Property Taxes = $1,800
e. No expense is recognized.
f. Salary Expense = $4,500
g. Advertising Expense = $6,600
Explanation:
Data and Calculations:
a. Rent Expense = $180,000/12 * 2 = $30,000 Rent Prepaid $150,000
b. Utility Expense $4,560
c. Supplies Expense $9,700 ($12,600 - $2,900)
d. Property Taxes = $7,200 *3/12 = $1,800
e. No expense is recognized for the advance payment for delivery van.
f. Salary Expense $4,500
g. Advertising Expense $6,600
Crane Water Co. is a leading producer of greenhouse irrigation systems. Currently, the company manufactures the timer unit used in each of its systems. Based on an annual production of 46,000 timers, the company has calculated the following unit costs. Direct fixed costs include supervisory and clerical salaries and equipment depreciation. Direct materials $12 Direct labor 7 Variable manufacturing overhead 2 Direct fixed manufacturing overhead 9 (30% salaries, 70% depreciation) Allocated fixed manufacturing overhead 7 Total unit cost $37 Clifton Clocks has offered to provide the timer units to Crane at a price of $33 per unit. If Crane accepts the offer, the current timer unit supervisory and clerical staff will be laid off. (a1) Calculate the total relevant cost to make or buy the timer units. (Round answers to 0 decimal places, e.g. 5,250.) Make Buy Total relevant cost $enter a dollar amount rounded to 0 decimal places $enter a dollar amount rounded to 0 decimal places
Answer:
Crane Water Co.
Total relevant cost to make or buy Make Buy
Direct materials $12
Direct labor 7
Variable manufacturing overhead 2
Direct fixed manufacturing overhead 6
Total relevant cost to make = $27 $33
Explanation:
a) Data and Calculations:
Annual production of timers = 46,000
Direct materials $12
Direct labor 7
Variable manufacturing overhead 2
Direct fixed manufacturing overhead 9
(30% salaries, 70% depreciation)
Allocated fixed manufacturing overhead 7
Total unit cost $37
Clifton Clocks offer price = $33
Total relevant cost to make or buy Make Buy
Direct materials $12
Direct labor 7
Variable manufacturing overhead 2
Direct fixed manufacturing overhead 6
Total relevant cost to make = $27 $33
b) Crane Water Co. will be in a better position if it continues to make the timer. It should not accept the offer from Clifton Clocks. The relevant cost to make is lower than the relevant cost to buy the timer from Clifton Clocks.
What do we call the value of the next best alternative given up when a choice is made?
A opportunity cost
B sunk cost
C needs
D scarcity
Answer:
A) Opportunity Cost
Explanation:
Waterway Industries purchased land as a factory site for $1335000. Waterway paid $120000 to tear down two buildings on the land. Salvage was sold for $8300. Legal fees of $5220 were paid for title investigation and making the purchase. Architect's fees were $46000. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15280. The contractor was paid $4500000. An assessment made by the city for pavement was $9700. Interest costs during construction were $258000. The cost of the land that should be recorded by Waterway Industries is $1479620. $1465520. $1469920. $1455820.
Answer:
$1,465,520
Explanation:
Calculation of cost of the land that should be recorded by Water ways industries
Cost of land = Purchase price + demolition of building - sales of salvage + legal fees + Title insurance cost + Payment assessment
Cost of land = $1,335,000 + $120,000 - $8,300 + $5,220 + $3,900 + $9,700
Cost of land = $1,465,520
Tyrell Company issued callable bonds with a par value of $18,000. The call option requires Tyrell to pay a call premium of $500 plus par (or a total of $18,500) to bondholders to retire the bonds. On July 1, Tyrell exercises the call option. The call option is exercised after the semiannual interest is paid the day before on June 30. Record the entry to retire the bonds under each separate situation.
1. The bonds have a carrying value of $15,000.
2. The bonds have a carrying value of $19,000.
Answer and Explanation:
The journal entries are shown below:
1. Bonds Payable $18,000
Loss on redemption $3,500
To Discount on Bonds Payable ($18,000 - $15,000) $3,000
To Cash ($18,000 + $500) $18,500
(Being retiring of the bond is recorded)
2. Bonds Payable $18,000
Premium on Bonds Payable ($19,000 - $18,000) $1,000
To Gain on redemption of bonds $500
To Cash ($18,000 + $500) $18,500
(Being retiring of the bond is recorded)
These two journal entries should be recorded
You run a construction firm. You have just won a contract to build a government office building Building it will require an investment of $10 million today and $5 million in one year. The government will pay you $20 million in one year upon the building's completion. Suppose the cash flows and their times of payment are certain, and the risk-free interest rate is 10%. What is the NPV of this opportunity? b. How can your firm turn this NPV into cash today?
Answer:
$3.64 million
The Npv can be turned into cash by borrowing $18.18 million today and paying back in one year time with the $20 million that would be paid
Explanation:
Net present value is the present value of after-tax cash flows from an investment less the amount invested.
NPV can be calculated using a financial calculator
Cash flow in year 0 = $-10 million
Cash flow in year 1 = $20 million - $5 million = 15 million
I = 10%
NPV = 3.63 million
The Npv can be turned into cash by borrowing $18.18 million today as the present value of 20 million is 18.18 million
20 million / 1.10 = 18.18 million
To find the NPV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
MillerCoors Brewing Company is the world’s fifth largest brewer. In the United States, its tie to the magical appeal of the Rocky Mountains is one of its most powerful trademarks. Some of the items included in its recent annual consolidated statement of cash flows presented using the indirect method are listed here. Indicate whether each item is disclosed in the Operating Activities (O), Investing Activities (I), or Financing Activities (F) section of the statement or use (NA) if the item does not appear on the statement. (Note: This is the exact wording used on the actual statement.)
Answer:
1. Purchase of stock. FINANCING ACTIVITIES.
Financing activities relate to transactions that involve the capital of the company. They include long term debt and equity. In this case, the company is buying back its own shares so this falls under Financing activities as it has to do with the company's own capital.
2. Principal payment on long-term debt. FINANCING ACTIVITIES.
Principal repayment retires long term debt and as mentioned above, financing activities relate to activities that involve long term debt.
3. Proceeds from sale of properties. INVESTING ACTVITIES.
Properties are fixed assets and transactions involving these are considered investing activities so the proceeds from a sale of properties would rightfully be an investing activity.
4. Inventories (decrease). OPERATING ACTIVITIES.
Transactions that have to do with the day to day operations of the business fall under operating activities and this includes inventories decreasing.
5. Accounts payable (decrease). OPERATING ACTIVITIES.
Operations of the business includes accounts payables decreasing as well.
6. Depreciation and amortization. OPERATING ACTIVITIES.
Depreciation and amortization arise from using the fixed assets for day to day operations so this will fall under Operating activities.
On January 1, 2021, the Dayton Auto Parts Company acquired nine identical assembly robots for a total of $594,000 cash. The robots had an expected useful life of 10 years and an expected residual value of $54,000 in total. Dayton uses straight-line depreciation.1. What is the journal entry for the acquisition
Answer:
the journal entry for the acquisition
Debit : Assembly Robots $594,000
Credit: Cash $594,000
Explanation:
First, identify if the item is an asset, liability, equity or income. The assembly robots represents Assets as economic benefits will flow into the entity as a result of their use.
Next, assets are initially measured at their cost which is purchase price plus any costs directly related to placing the asset in the location and condition intended for use by management.
Cost of the Assembly Robots is $594,000
Tom Jordan is a manager for a McDonald's restaurant. Many of his key responsibilities include analyzing data and making key decisions for the success of his store. Tom's store has been experiencing decreased sales for breakfast services over the past 3 months. Tom is unsure why breakfast revenues are down while lunch and dinner revenues remain unchanged. Tom believes that he can drive revenue up by implementing a few different breakfast promotions such as free coffee or hash browns with the purchase of a meal. Tom performs an extensive analysis of how continuous changes in breakfast promotions could impact his daily revenue. What type of DSS analysis is Tom performing? optimization analysis sensitivity analysis transaction analysis goal-seeking analysis
Answer: sensitivity analysis
Explanation:
From the information given in the question, we can infer that the type of DSS analysis that Tom is performing is the sensitivity analysis.
Sensitivity analysis simply refers to the quantitative risk assessment that deajs with how the alteration of a particular variable will have an effect on the model's output.
Here, Tom believing that he can increase revenue up by implementing a few different breakfast promotions like the free coffee or hash browns shows that he's using sensitivity analysis.
Each service starts on a different date because the services depend on each other. Enter the starting dates for the remaining services as follows:
a. In cell D6, enter a formula without using a function that adds 4 days to the value in cell 06.
b. In cell E6, enter a formula without using a function that subtracts 3 days from the value in cell C6
c. In cell F6, enter a formula without using a function that adds 2 days to the value in cell E6
d. In cell G6, enter a formula without using a function that adds 2 days to the value in cell C6.
Answer:
a. Copy the range of cell D7:D9 then select cell D6 and paste the selection with date format selected. The function will be represented in formula bar with adding +4;365 days.
b. Copy the range of cell D7:D9 then select cell D6 and paste the selection with date format selected. The function will be represented in formula bar with adding -3;365 days.
c. In the formula bar type =365 days; +2 : E6
d. In the formula bar type =365 days ; +2 : C6
Explanation:
Excel is a software which helps the users to easily calculate complex calculation with just one function input. The users can create worksheets using the excel and then link those worksheets with each other. The data can be displayed in the form of table or simple text. It has multiple options to create annual day wise filtered worksheets.
Quantities on hand at the end of one month may not be sufficient to last until the next month's count. If the company has taken this into account in establishing reorder levels, then it is very possible that the company carrying too large an investment in inventory which can be costly.
a. True
b. False
Answer:
True
Explanation:
The correct option is - True
Reason -
When the company is considering the quantities in stock available at the end of the month in duly setting their reorder level that indicates it creates buffer stock in company's account and not following just-in-time model, whereby the quantity being ordered when there is demand for the same.
Hereby the investment cost occurred while maintaining the inventory will be higher as comparison to just-in-time inventory model as the money is blocked in the inventory and it will be recovered only when the inventory being sold.
JOURNALIZING SALES TRANSACTIONS. Enter the following transactions in a sales journal. Use a 6% sales tax rate.
May 1 Sold merchandise on account to J. Adams, $2,000, plus sales tax. Sale No. 488.
4 Sold merchandise on account to B. Clark, $1,800, plus sales tax. Sale No. 489.
8 Sold merchandise on account to A. Duck, $1,500, plus sales tax. Sale No. 490.
11 Sold merchandise on account to E. Hill, $1,950, plus sales tax. Sale No. 491.
Answer:
May 1
Dr Accounts Receivable- J. Adams2120
Cr Sales $2,000
Sales Tax Payable 120
May 4
Dr Accounts Receivable- B. Clark 1908
Cr Sales 1800
Cr Sales Tax Payable 108
May 8
Dr Accounts Receivable- A. Duck 1590
Cr Sales 1500
Cr Sales Tax Payable 90
May 11
Dr Accounts Receivable- E. Hill 2067
Cr Sales 1950
Cr Sales Tax Payable 117
Explanation:
Preparation of sales journal entries
May 1
Dr Accounts Receivable- J. Adams2120
(2,000+120)
Cr Sales $2,000 Sales Tax Payable 120
($2,000*6%)
May 4
Dr Accounts Receivable- B. Clark 1908
(1800+108)
Cr Sales 1800
Cr Sales Tax Payable 108
(1800*6%)
May 8
Dr Accounts Receivable- A. Duck 1590
(1500+90)
Cr Sales 1500
Cr Sales Tax Payable 90
(1500*6%)
May 11
Dr Accounts Receivable- E. Hill 2067
(1950+117)
Cr Sales 1950
Cr Sales Tax Payable 117
(1950*6%)
In its first year of operations, Crane Company recognized $31,700 in service revenue, $7,700 of which was on account and still outstanding at year-end. The remaining $24,000 was received in cash from customers. The company incurred operating expenses of $16,600. Of these expenses, $12,690 were paid in cash; $3,910 was still owed on account at year-end. In addition, Crane prepaid $3,260 for insurance coverage that would not be used until the second year of operations.
Required:
Calcuate the first year's net earnings under the cash basis of accounting, and calculate the first years net earnings under the accrual basis of accouriting.
Answer:
Under the cash basis, expenses and revenue are recorded in the period the cash is received or spent.
Under the Accrual basis, expenses and revenue are recorded in the period incurred.
Under Cash basis:
= Cash Revenue - cash expenses - Prepaid expenses
= 24,000 - 12,690 - 3,260
= $8,050
Under Accrual basis:
= Revenue for the year - Expenses for the year
= 31,700 - 16,600
= $15,700