Answer:
A Dec-31
Dr Cash 24,500
Dr Accumulated Depreciation 184,000
Dr Loss on Sale of Used Machine 41,100
Cr Machine 249,600
B. Dec-31
Dr Cash 98,000
Dr Accumulated Depreciation 1,84,000
Cr Profit on Sale of Used Machine 32,400
Cr Machine 249,600
C. Dec-31
Dr Cash 35,000
Dr Accumulated Depreciation 1,84,000
Dr Loss on Machine destroyed in Fire 30,600
Cr Machine 249,600
Explanation:
A. Preparation of the journal entries to record the machine’s disposal if it is sold for $24,500 cash
Dec-31
Dr Cash 24,500
Dr Accumulated Depreciation 184,000
Dr Loss on Sale of Used Machine 41,100
(249,600-24,500-184,000)
Cr Machine 249,600
(240,000+8,000+1,600)
B. Preparation of the journal entry to record the machine’s disposal if it is sold for $98,000 cash
Dec-31
Dr Cash 98,000
Dr Accumulated Depreciation 184,000
Cr Profit on Sale of Used Machine 32,400
(249,600-98,000-184,000)
Cr Machine 249,600
(240,000+8,000+1,600)
C. Preparation of the journal entry to record the machine’s disposal if it is destroyed in a fire and the insurance company pays $35,000 cash
Dec-31
Dr Cash 35,000
Dr Accumulated Depreciation 184,000
Dr Loss on Machine destroyed in Fire 30,600
(249,600-35,000-184,000)
Cr Machine 249,600
(240,000+8,000+1,600)
Working:
Cost of machine = 240,000+8,000+1,600
Cost of machine= $249,600
Depreciation (Straight-Line method) = Cost - Salvage / no of years
Depreciation= (249,600-28,800)/6 yr
Depreciation=$36,800
Accumulated Depreciation of 5 Years =($36,800*5)
Accumulated Depreciation of 5 Years =$184,000
Who is responsible for protecting the environment?
a.
Government
b.
Employers
c.
Employees
d.
Everyone
Answer:
Answer D
Explanation:
Please give brainliest :D
what are the financial resources of netflix
Netflix Inc. (NFLX) is a media company that offers consumers the ability to buy movie and TV entertainment services. Though the company has since adapted to a largely subscription-based model allowing customers to watch streaming television and movies online, Netflix still offers its original DVD service. Since the fourth quarter 2019, Netflix operates as a single business segment, no longer reporting across domestic streaming, international streaming, and domestic DVD segments.1 In recent years, competition in the streaming media business has grown fierce, with companies including The Walt Disney Co. (DIS), Amazon.com Inc. (AMZN), and Apple Inc. (AAPL) launching services to rival Netflix.on:
The master budget at Western Company last period called for sales of 225,000 units at $9 each. The costs were estimated to be $3.75 variable per unit and $225,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $9.10 per unit. Variable costs were $4.50 per unit. Actual fixed costs were $225,000. Required: Prepare a sales activity variance analysis
Answer:
Sales volume variance $26,250 Favorable
Explanation:
The sales volume variance is calculated as the difference between the budgeted and the actual sales volume multiplied by he standard contribution per unit
Units
Budgeted sales units 225,000
Actual sales units 230,000
Sales volume 5,000 favorable
Standard contribution(9-3.75) × $5.25
Sales volume variance $ 26,250
Sales volume variance $26,250 Favorable
Note standard contribution = standard selling price - standard variable cost
The December Customer Survey indicates how customers perceived the products in the segment. The survey evaluates the product against the buying criteria. Zero indicates the product met none of the criteria as of December 31, however it had a higher score earlier in the year. Which of the following conditions does not contribute to a perfect score of 100 for a product?
1) Product was priced at the bottom of the range.
2) Product was perfectly positioned (because the segment moves each month, this can occur only once each year).
3) Product had 100% Awareness and 100% Accessibility.
4) All of these are required for a 100 customer satisfaction.
Answer:
2) Product was perfectly positioned (because the segment moves each month, this can occur only once each year).
Explanation:
The following conditions that contribute 100 as a perfect score is
a. The product should be priced at the bottom range
b. The product contains 100% awareness & 100% accessibility
c. The customer satisfaction needed 100
But the product that is perfect positioned so the same would not be contributed as 100%
Since ages & distance from the ideal spots varies so the score varies month to months
f r e e
p o i n t s . y o u r we l c o m e
Answer:
THANKSSSSSSSSSSSSSSSSSSS SO MUCH
have a good day :)
Explanation:
Answer:
Tysm sista!!![tex] \infty \infty \infty \infty \infty \infty [/tex]
One of the benefits of time management is that it takes away all of your leisure time.
True or false?
Answer:
false po ate or kuya
Answer:
false
Explanation:
Time management taking away free time isn't a plus, and that's not what it's supposed to do in the first place
Under the retrospective approach to accounting for changes in accounting principles, Multiple select question. prior years' financial statements are revised to reflect the impact of the new accounting principle change. a journal entry is made to adjust asset accounts to what their balances would have been had the new method been used in the current year forward. a journal entry is made to adjust all balance sheets accounts to what they would have been if the new method had always been used. only the current year and future financial statements are revised to reflect the impact of the accounting principle change. a journal is made to adjust the firm's Retained earnings balance to reflect the cumulative effect of the accounting principle change.
Answer:
Under the retrospective approach to accounting for changes in accounting principles,
a journal is made to adjust the firm's Retained earnings balance to reflect the cumulative effect of the accounting principle change.
Explanation:
A change in an accounting principle refers to a change in the accounting method. An example is using a different depreciation method (straight-line instead of double-declining method) or switching between Weighted-Average to LIFO inventory valuation method. Where there is a change in accounting principle, the change is applied retrospectively to the earliest period when financial statements are presented. The purpose is to ensure that the comparative financial statements reflect the new application of the accounting principle just as the current financial statements do. However, this cannot be done if it were impractical.
Dawls Corporation reported stockholders' equity on December 31 of the prior year as follows:
Common stock, $5 par value, 1,000,000 shares
authorized 500,000 shares issued $2,500,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,000,000
The following selected transactions occurred during the current year.
Feb. 15 The board of directors declared a 5% stock dividend to stockholders of record on March 1, payable March 20. The stock was selling for $8 per share.
March 9 Distributed the stock dividend.
May 1 A cash dividend of $.30 per share was declared by the board of directors to stockholders of record on May 20, payable June 1.
June 1 Paid the cash dividend.
Aug. 20 The board decided to split the stock 4-for-1, effective on September 1.
Sept. 1 Stock split 4-for-1.
Dec. 31 Earned a net income of $800,000 for the current year.
Required:
Prepare a statement of retained earnings as of December 31 of the current year.
Answer:
Dawls Corporation
A Statement of Retained Earnings as of December 31 of the current year:
Retained earnings, Jan. 1 $3,000,000
Current year's net income 800,000
Stock dividend (125,000)
Cash dividend (157,500)
Retained earnings, Dec. 31 $3,517,500
Explanation:
a) Data and Calculations:
Common stock, $5 par value, 1,000,000 shares
authorized 500,000 shares issued $2,500,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,000,000
Total equity $6,500,000
b) Analysis:
Feb. 15 Stock Dividends $125,000 (25,000 * $5) 25,000 shares(500,000 * 5%)
May 1 Cash Dividends $157,500 (525,000 * $0.30)
Dec. 31 Net income $800,000
c) Statement of Stockholders' Equity as of December 31
Common stock, $1.25 par value, 4,000,000 shares
authorized 2,100,000 shares issued $2,625,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,517,500
Total equity $7,142,500
In finance, equity involves the purchase of assets that may or may not be associated with loans or other liabilities. For accounting reasons, equity is calculated by subtracting liabilities from the amount of property.
Dawls Corporation
A Statement of Retained Earnings as of December 31 of the current year:
Retained earnings, Jan. 1 $3,000,000
Current year's net income 800,000
Stock dividend (125,000)
Cash dividend (157,500)
Retained earnings, Dec. 31 $3,517,500
Working Notes:
a) Data and Calculations:
Common stock, $5 par value, 1,000,000 shares
authorized 500,000 shares issued $2,500,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,000,000
Total equity $6,500,000
b) Analysis:
Feb. 15 Stock Dividends $125,000[tex](25,000 \times \$5)[/tex] 25,000 shares[tex](500,000 \times5\%)[/tex]
May 1 Cash Dividends $157,500 [tex](525,000 \times \$0.30)[/tex]
Dec. 31 Net income $800,000
c) Statement of Stockholders' Equity as of December 31
Common stock, $1.25 par value, 4,000,000 shares
authorized 2,100,000 shares issued $2,625,000
Contributed capital In excess of par, common stock 1,000,000
Retained earnings 3,517,500
Total equity $7,142,500
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Red Rock Bakery purchases land, building, and equipment for a single purchase price of $440,000. However, the estimated fair values of the land, building, and equipment are $189,000, $297,000, and $54,000, respectively, for a total estimated fair value of $540,000. Required: Determine the amounts Red Rock should record in the separate accounts for the land, the building, and the equipment.
Answer and Explanation:
The computation of the amount that recorded in each separate account is shown below:
Asset Estimated fair value Allocated % Purchase price Recorded amount
Land $189,000 0.35 $440,000 $154,000
Building $297,000 0.55 $440,000 $242,000
Equipment $54,000 0.10 $440,000 $44,000
Total $540,000 100
Pet business examples
Hello mate... here's the answer.,...
Answer:
*There are many pet business examples but the few I know are these:- *pet sitting,pet walking , training the dog,pet bakery if u like my answer thank them....
Three months ago, CSG stock was selling for $44.25 a share. At that time, you purchased three put options on the stock with a strike price of $45 per share and an option price of $1.75 per share. The option expires today when the value of the stock is $42.50 per share. What is your net profit or loss on this investment
Answer:
$225
Explanation:
Calculation to determine your net profit or loss on this investment
Using this formula
Net profit or Loss= (Strike price - Value of stock at expiration - Premium paid) x 3 x 100
Let plug in the formula
Net profit or Loss= ($ 45 - $ 42.50 - ß) x 300
Net profit or Loss= $ 225
Therefore your net profit on this investment is $225
Plum Corporation will begin operations on January 1. Earnings for the next five years are projected to be relatively stable at about $80,000 per year. The shareholders of Plum are in the 33% tax bracket. With the given scenarios, pick the best choice and explain why.
A. Assume that Plum will reinvest its after-tax earnings in the growth of the company, should Plum Corp operate as a C Corporation or an S Corporation?
B. Assume that Plum will distribute its after-tax earnings each year to its shareholders. Should Plum operate as a C corporation or an S Corporation?
Answer:
Plum Corporation
The best choice is:
B. Assume that Plum will distribute its after-tax earnings each year to its shareholders. Should Plum operate as a C corporation or an S Corporation?
Explanation:
a) Tax is the greatest difference existing between a C corporation and an S corporation. With a C corporation, the earnings are taxed twice. When the C corporation earns income, it is taxed as a corporation. When it distributes the after-tax earnings, the owners are taxed again in income tax. This does not happen with an S corporation. The S corporation does not pay corporate tax, instead, its owners pay their individual income taxes because the corporation's incomes are passed through the members.
Why is efficiency an important economic goal?
Explanation:
Efficiency reduces hunger and malnutrition because goods are transported farther and quicker. Also, advances in efficiency allow greater productivity in a shorter amount of time. Efficiency is an important attribute because all inputs are scarce.
Efficiency is an important Economic goal because it reduces the cost of production, gives highest output with less input and aims at minimum wastage of resources which in return reduces cost of goods and services for consumers.
What is Efficiency?Efficiency is the maximum level of performance that requires the fewest inputs and produces the greatest amount of output.
Economic efficiency is the distribution or allocation of all goods and factors of production in an economy to their most valued uses while reducing or eliminating waste.
What is Economic goal?Every country in the globe strives to achieve specific goals in order to become an ideal and stable economy. Countries put a lot of effort towards achieving these objectives. Every nation faces unique problems brought on by many variables that impede its development and expansion.
Hence, governments try to retain certain targets and seek to reach a given degree of growth within a year. These objectives are known as macroeconomics objectives or Economic goal.
Economic growth, full employment, price stability, economic freedom, equity, efficiency, stable financial market are some of the Economic goals that a country strive to achieve to grow and develop as whole.
scarcity is one of the important factor that impacts the growth of the country and its goals. A type of resource's scarcity can reduce profitability, slow economic growth, and raise prices. Businesses modify their operations to be as effective as feasible given their conditions using their understanding of a resource's scarcity. efficiency plays vital role in using those scarce resources to produce more output, in this way efficiency is very useful and important in a country to achieve its economic goals.
Supporting answer
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Required information Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.] Hudson Co. reports the contribution margin income statement for 2019. HUDSON CO. Contribution Margin Income Statement For Year Ended December 31, 2019 Sales (10,300 units at $375 each) $ 3,862,500 Variable costs (10,300 units at $300 each) 3,090,000 Contribution margin 772,500 Fixed costs 600,000 Pretax income $ 172,500 Exercise 18-16 Break-even LO P2 1. Compute Hudson Co.'s break-even point in units. 2. Compute Hudson Co.'s break-ev
Answer:
See
Explanation:
1. Break even point in units
= Fixed cost / Selling price per unit - Variable cost per unit
Given that
Fixed cost = $600,000
Selling price per unit = $375
Variable cost per unit = $300
Break even point in units = $600,000 / ($375 - $300)
= $600,000 / $75
= 8,000 units
2. Break even in sales
= Fixed cost / Selling price unit - Variable cost per unit × Selling price per unit.
=[ $600,000 / ($375 - $300) ] × $375
= 8,000 × $375
= $3,000,000
Assume the following: The standard price per pound is $2.00. The standard quantity of pounds allowed per unit of finished goods is 4 pounds. The actual quantity of materials purchased and used in production is 50,000 pounds. The actual purchase price per pound of materials was $2.25. The company produced 13,000 units of finished goods during the period. What is the materials spending variance
Answer:
Direct material price variance= $12,500 unfavorable
Explanation:
Giving the following formula:
The standard price per pound is $2.00.
The actual quantity of materials purchased and used in production is 50,000 pounds.
The actual purchase price per pound of materials was $2.25.
To calculate the direct material price (spending) variance, we need to use the following formula:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2 - 2.25)*50,000
Direct material price variance= $12,500 unfavorable
For journal entries in this assignment, enter AR for Accounts Receivable, ADA for Allowance for Doubtful Accounts, BAD for Bad Debt Expense, REV for Sales Revenue, and CASH for Cash. Please be careful as you type, because Blackboard is not forgiving! Enter all numeric answers in whole dollars but without a $.
Priestly Inc. records sales on account of $120,000 during the month of June. The company estimates bad debt expense as of 3% of credit sales.
A. Show the journal entry for the June sales on account (enter account name from the choices in the general instructions above, and then the amount).
o Debit: [a] [b]
o Credit: [c] [d]
B. Show the journal entry for June's bad debt expense.
o Debit: [e] [f]
o Credit: [g] [h]
C. Assuming Priestly's opening balance of Accounts Receivable on June 1 was $0, what is its balance of net Accounts Receivable after the two entries above?
Just before closing its books on June 30, Priestly learns that one of its customers, the McKay Company, has run into financial difficultly and cannot pay an invoice totaling $2,300. Priestly decides to write off McKay's account.
i. Show the journal entry for the write-off.
o Debit: [j] [k]
o Credit: [U] [m]
ii. What is Priestly's balance of net Accounts Receivable after the write-off? [
On July 15, Priestly is pleasantly surprised to receive a check for $1,200 from McKay with a note saying the remainder of the balance due will be sent in two weeks.
A. Show the journal entry to reinstate the account for which payment has been received.
o Debit: [o] [p]
o Credit: [q] [r]
B. Show the journal entry to record McKay's payment of $1,200.
o Debit: [s] [t]
o Credit: [u] [v]
C. What is Priestly's balance of net Accounts Receivable after the entries pertaining to Mckay?
Answer:
Priestly Inc.
A. Debit AR 120,000
Credit REV 120,000
To record the sales on account for June.
B. Debit BAD 3,600
Credit ADA 3,600
To record the bad debts expense for the month.
C. The balance of net Accounts Receivable after the two entries above is $116,400
D. Debit ADA 2,300
Credit AR 2,300
To write-off McKay's account.
E. Priestly's balance of net Accounts Receivable after the write-off is $$114,100.
F. Debit AR 1,200
Credit ADA 1,200
To reinstate a previously written-off amount from McKay's account.
G. Debit CASH 1,200
Credit AR 1,200
To record the receipt from McKay on account.
H. Priestly's balance of net Accounts Receivable after the entries pertaining to McKay is $114,100.
Explanation:
Data and Analysis:
A. Accounts receivable $120,000 Sales revenue $120,000
B. Bad Debts Expense $3,600 Allowance for Doubtful Accounts $3,600
C. Allowance for Doubtful Accounts $2,300 Accounts Receivable $2,300
D. Accounts Receivable $1,200 Allowance for Doubtful Accounts $1,200
E. Cash $1,200 Accounts Receivable $1,200
T-account:
Accounts Receivable
Account Titles Debit Credit Balance
A. Sales revenue $120,000 $120,000
B. Allowance for Doubtful Accounts $3,600 116,400
C. Allowance for Doubtful Accounts $2,300 114,100
D. Allowance for
Doubtful Accounts 1,200 115,300
E. Cash 1,200 114,100
A local jacket distributor expects to sell 9,000 black fleece jackets in a year. Assume that EOQ model assumptions are valid. Each jacket costs $50, ordering cost is $100 per order, and holding cost is 1 dollar per jacket per month. What is the annual inventory cost (excluding purchasing cost) if 500 jackets are ordered at a time
Answer: $4,800
Explanation:
First find the Annual holding cost:
= Average inventory * Cost of holding a unit
= 500/2 * 1 * 12 months
= $3,000
Then find the Annual ordering cost:
= Expected units to be sold/ Units ordered * Ordering cost
= 9,000/500 * 100
= $1,800
Annual Inventory cost = Annual holding cost + Annual ordering cost
= 3,000 + 1,800
= $4,800
Banks offer various types of accounts, such as savings, checking, certificate of deposits, and money market, to attract customers as well as meet their specific needs.
a. True
b. False
Answer:
it's false.. because those are not the various types of account.
how do occupancy rate and potential gross rate relate
Explanation:
Occupancy rate is the ratio of rented or used space to the total amount of available space.
The potential gross rate is the total rental income a property can produce if all units were fully leased and rented at market rents with a zero vacancy rate.
They relate through that they both allow for renting?
IKEA has essentially changed the way people shop for furniture. Discuss the pros and cons of this strategy, especially as the company plans to continue to expand in places like Asia and India.
Answer:
um
Explanation:
Monetary approach and forecasting.
Suppose relative PPP and the quantity theory of money hold. Suppose you expect the rate of money growth of Argentina in the next year to be around 15% while your forecast for its real GDP growth is at 2%. Suppose inflation in Brazil is expected to be at 4%.
Suppose you learn that the government of Argentina is planning to cut taxes. You expect this tax cut to be financed through money creation and revise your forecast for money growth to be 25% instead of 15%.
Suppose that you also expect the UIP to hold. You know that the nominal interest rate in Brazil today is 6% (on deposits maturing in a year).
1. What is the nominal interest rate in Argentina?
2. What is the world real interest rate?
Answer:
1. The nominal interest rate in Argentina is:
= 25%
2. The world real interest rate is:
= 2%.
Explanation:
a) Data and Calculations:
Expected money growth rate of Argentina next year = 15%
Forecasted real GDP growth = 2%
Expected inflation rate = 13% (15% - 2%)
Nominal interest rate = real interest rate + inflation rate
Real interest rate = 25% - 13% = 12%
Nominal interest rate = 12% + 13% = 25%
The world real interest rate = nominal interest rate minus inflation rate
= 6% - 4% = 2%
Crystal Displays Inc. recently began production of a new product, flat panel displays, which required the investment of $1,500,000 in assets. The costs of producing and selling 5,000 units of flat panel displays are estimated as follows:
Variable costs per unit:
Fixed costs:
Direct materials $120
Factory overhead $250,000
Direct labor 30
Selling and administrative expenses 150,000
Factory overhead 50
Selling and administrative expenses 35
Total variable cost per unit $235
Crystal Displays Inc. is currently considering establishing a selling price for flat panel displays. The president of Crystal Displays has decided to use the cost-plus approach to product pricing and has indicated that the displays must earn a 15% return on invested assets.
Required:
Determine the amount of desired profit from the production and sale of flat panel displays.
Answer:
Crystal Displays Inc.
The amount of desired profit from the production and sale of the flat panel displays is:
= $225,000
Explanation:
a) Data and Calculations:
Investment in assets = $1,500,000
Production and sales units = 5,000
Cost of production and sales:
Variable costs per unit:
Direct materials $120
Direct labor 30
Factory overhead 50
Selling and
administrative expenses 35
Total variable cost per unit $235
Fixed costs:
Factory overhead $250,000
Selling and administrative expenses 150,000
Total fixed costs $400,000
Total production costs:
Variable production costs = $1,000,000 (5,000 * $200)
Fixed factory overhead 250,000
Total production costs $1,250,000
Total selling and administrative expenses:
Variable selling and admin. $175,000
Fixed selling and admin. 150,000
Total selling and admin. exp. $325,000
Total costs of production and sales = $1,575,000
Target return on invested assets = 225,000 ($1,500,000 * 15%)
Total expected sales revenue = $1,800,000
Price per unit = $360 ($1,800,000/5,000)
At the beginning of the month, the Forming Department of Martin Manufacturing had 29,000 units in inventory, 40% complete as to materials, and 15% complete as to conversion. During the month the department started 98,000 units and transferred 100,000 units to the next manufacturing department. At the end of the month, the department had 27,000 units in inventory, 90% complete as to materials and 60% complete as to conversion. How many units did the Forming Department start and complete in the current month
Answer:
71,000 units.
Explanation:
Units started and completed = Units Completed - Units in Opening Inventory
therefore
Units started and completed = 100,000 units - 29,000 units = 71,000 units
thus,
Units started and completed in the current month for the Forming Department is 71,000 units.
Assume that Jones Co. will need to purchase 100,000 Singapore dollars (S$) in 180 days. Today's spot rate of the S$ is $.50, and the 180-day forward rate is $.53. A call option on S$ exists, with an exercise price of $.52, a premium of $.02, and a 180-day expiration date. A put option on S$ exists, with an exercise price of $.51, a premium of $.02, and a 180-day expiration date. Jones has developed the following probability distribution for the spot rate in 180 days:
Possible Spot Rate in 90 Days Probability
$.48 10%
$.53 60%
$.55 30%
The probability that the forward hedge will result in a higher payment than the options hedge is ____
Answer:
10%
Explanation:
Based on the information given we were told that the Possible Spot Rate in 90 Days is $.48 while the Probability is 10% which means that the Probability that call option won't be exercised is 10% which will inturn enables Jones to pay the amount of $48,000($.48*$100,000) reason been that it is much lower than the amount of $53,000($.53*$100,000) that was paid been with the forward hedge.
Therefore The probability that the forward hedge will result in a higher payment than the options hedge is 10%
Which of the following reflect the balances of prepayment accounts prior to adjustment?
Answer:
The answer is Balance sheet accounts are overstated and income statement accounts are understated.
Explanation:
Jaheem's business sells a single product. The following information was gathered from Jaheem's records: Price $24.00 per unit Variable costs are 61% of sales price The company's fixed costs are $400,000 annually Current sales total is 41,000 units Target profit before tax $22,000 Budgeted sales total is 48,000 units By how much will profit increase with the sale of each unit in Jaheem's business
Answer:
See below
Explanation:
With regards to the above, Jaheem's business profit increase is calculated as
= Fixed cost + Desired profit/Contribution margin
Given that;
Fixed cost = $400,000
Desire profit = $22,000
Contribution margin = $9.4
= $400,000 + $22,000/($24 - $14.6)
= $422,000/$9.4
= $44,894
Therefore, increase on profit
= $44,894 - $22,000
= $22,894
Ivanhoe Windows manufactures and sells custom storm windows for three-season porches. Ivanhoe also provides installation service for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Ivanhoe enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,370 and chooses Ivanhoe to do the installation. Ivanhoe charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $590. The customer pays Ivanhoe $1,920 (which equals the standalone selling price of the windows, which have a cost of $1,120) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Ivanhoe completes installation on October 15, 2020, and the customer pays the balance due. Prepare the journal entries for Geraths in 2014.
Refer to the revenue arrangement: Repeat the requirements, assuming (a) Geraths estimates the standalone value of the installation based on an estimated cost of $400 plus a margin of 20% on cost, and (b) given uncertainty of finding skilled labor, Geraths is unable to develop a reliable estimate for the fair value of the installation.
Answer:
Ivanhoe Windows
a. Journal Entries:
September 1, 2020:
Debit Cash $1,920
Credit Sales Revenue $1,920
To record the sale of windows to Geraths.
Debit Cost of goods sold $1,120
Credit Inventory $1,120
To record the cost of goods sold.
October 15, 2020:
Debit Cash $450
Credit Installation Revenue $450
To record the completion of installation service.
b. Journal Entries:
September 1, 2020:
Debit Cash $1,920
Credit Sales Revenue $1,896
Credit Unearned Revenue $24
To record the sale of windows to Geraths.
Debit Cost of goods sold $1,120
Credit Inventory $1,120
To record the cost of goods sold.
October 15, 2020:
Debit Cash $450
Debit Unearned Revenue $24
Credit Installation Revenue $474
To record the completion of installation service.
c. If Geraths is unable to develop a reliable estimate for the fair value of the installation:
Journal Entries:
September 1, 2020:
Debit Cash $1,920
Credit Sales Revenue $1,920
To record the sale of windows to Geraths.
Debit Cost of goods sold $1,120
Credit Inventory $1,120
To record the cost of goods sold.
October 15, 2020:
Debit Cash $450
Credit Sales Revenue $450
To record the completion of installation.
Explanation:
a) Data and Calculations:
July 1, 2020, Contract Price = $2,370
Standalone selling price of window = $1,920
Cost of the window = $1,120
Standalone selling price of installation service = $590
Attributed selling price of installation service = $450 ($590 = $140)
b) Estimated standalone value of the installation = estimated cost + 20% on cost
= $400 + 20% = $480 ($400 * 1.2)
Separate performance values:
Sale of window = $1,920 = $1,896 ($1,920/$2,400 * $2,370)
Installation = 480 = 474 ($480/$2,400 * $2,370)
Total = $2,400 = $2,370
c. If Ivanhoe Windows is unable to develop a reliable estimate for the fair value of the installation, both payments received will be attributed to the Sales Revenue without identifying separate performance values.
g On January 1, Garcia Supply leased a truck for a three-year period, at which time possession of the truck will revert back to the lessor. Annual lease payments are $10,500 due on December 31 of each year, calculated by the lessor using a 4% discount rate. Negotiations led to Garcia guaranteeing a $27,400 residual value at the end of the lease term. Garcia estimates that the residual value after four years will be $26,300. (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.) What is the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
Answer:
The amount to be added to the right-of-use asset and lease liability under the residual value guarantee is $904.12.
Explanation:
Guaranteed residual value = $27,400
Estimated residual value = $26,300
Difference in residual value = Guaranteed residual value - Estimated residual value = $27,400 - $26,300 = $1,100
Present value of difference in residual value = Difference in residual value / (100% + Discount rate)^Number of years = $1,100 / (100% + 4%)^5 = $904.12
Therefore, the amount to be added to the right-of-use asset and lease liability under the residual value guarantee is $904.12 which is the present value of difference in residual value.
Asset turnover ratio Financial statement data for years ended December 31, 20Y3 and 20Y2, for Edison Company follow: 20Y3 20Y2 Sales $2,385,000 $2,015,500 Total assets: Beginning of year 770,000 620,000 End of year 820,000 770,000 a. Determine the asset turnover ratio for 20Y3 and 20Y2. Round answers to one decimal place. 20Y3 20Y2 Asset turnover fill in the blank 1 fill in the blank 2 b. Is the change in the asset turnover ratio from 20Y2 to 20Y3 favorable or unfavorable
Answer:
a. Asset Turnover 20Y3
= Sales / Average assets
= 2,385,000 / [ (770,000 + 820,000) / 2]
= 2,385,000 / 795,000
= 3.0
Asset Turnover 20Y2
= 2,015,500 / [ (620,000 + 770,000) / 2]
= 2,015,500 / 695,000
= 2.9
b. The change is Favorable because it means that the assets are bringing in more sales per dollar value of assets to the company.
After graduation, you decide to go into a partnership in an office supply store that has existed for a number of years. Walking through the store and stockrooms, you find a great discrepancy in service levels. Some spaces and bins for items are completely empty; others have supplies that are covered with dust and have obviously been there a long time. You decide to take on the project of establishing consistent levels of inventory to meet customer demands. Most of your supplies are purchased from just a few distributors that call on your store once every two weeks. You choose, as your first item for study, computer printer paper. You examine the sales records and purchase orders and find that demand for the past 12 months was 5,000 boxes. Using your calculator you sample some days' demands and estimate that the standard deviation of daily demand is 10 boxes. You also search out these figures:
Cost per box of paper: $11.
Desired service probability: 98 percent.
Store is open every day.
Salesperson visits every two weeks.
Delivery time following visit is three days.
Using your procedure, how many boxes of paper would be ordered if, on the day the salesperson calls, 60 boxes are on hand?
Answer:
257 boxes
Explanation:
The computation is given below;
Daily Demand would be
= 5000 ÷ 365
Standard Deviation = 10 boxes
Lead Time = 2 Weeks + 3 Days = 17 Days
Service Level = 0.98
Reorder Point = avg(d) × LT + z × σd × sqrt(LT)
= 5000 ÷ 365 × 17 + 2.05 × 10 × 170.5
= 317
So, the number of boxes should be ordered is
= 317 - 60
= 257 boxes