The following events took place for Rushmore Biking Inc. during February, the first month of operations as a producer of road bikes:
Purchased $400,000 of materials.
Used $362,100 of direct materials in production.
Incurred $104,200 of direct labor wages.
Applied factory overhead at a rate of 42% of direct labor cost.
Transferred $483,700 of work in process to finished goods.
Sold goods with a cost of $460,300.
Revenues earned by selling bikes, $761,600.
Incurred $154,800 of selling expenses.
Incurred $75,300 of administrative expenses.
Required:
Prepare the income statement for Rushmore Biking for the month ending February 28
Answers
Answer: See attachment
Explanation:
Note that in the attachment,
Gross profit was the difference between the revenue and the cost of goods sold. This is:
= 761600 - 460300
= 301300
The selling and administrative expenses was the addition of the selling expense and the administrative expenses.
Check the attachment for further details.
Related Questions
A department adds materials at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of July, there was no beginning work in process; 39000 units were completed and transferred out; and there were 19000 units in the ending work in process that were 30% complete. During July, $87000 materials costs and $89400 conversion costs were charged to the department. The unit production costs for materials and conversion costs for July were:_________
Materials Conversion Costs
$2.77 $1.55
$2.04 $1.50
$3.09 $2.27
$1.60 $1.50
Answers
Answer:
Unit Production Cost for Materials = $1.5 per unit
Unit Production Cost for Conversion cost = $2 per unit
Explanation:
Materials Conversion
Beginning WIP 0 0
Started and Completed 39,000 39,000
Ending WIP (19,000*30%) 19,000 5,700
Equivalent Units 58,000 44,700
Cost Incurred $87,000 $89,400
Unit Production Cost for Materials = Cost / Equivalent units
Unit Production Cost for Materials = $87,000 / 58,000
Unit Production Cost for Materials = $1.5 per unit
Unit Production Cost for Conversion cost = Cost / Equivalent units
Unit Production Cost for Conversion cost = $89,400 / 44,700
Unit Production Cost for Conversion cost = $2 per unit
A government-owned company may have an unfair advantage over a privately owned company because it could:
Answers
Answer:
Government companies may have unfair advantage over private companies, as - financial support from government, public confidence & public capital raise ease
Explanation:
A government-owned company may have an unfair advantage over a private owned company because -
Have financial assistance from government in case of less or non profitability, inefficiency, non performing assets
On the other hand, having more public confidence, public companies are likely to get publically raised capital (through shares, debentures) etc more easily.
t a sales volume of 36,500 units, Peres Corporation's sales commissions (a cost that is variable with respect to sales volume) total $576,700. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 35,000 units? (Assume that this sales volume is within the relevant range.
Answers
Answer:
$553,000
Explanation:
Calculation for the total sales commissions
First step is to compute the Sales commission per unit using this formula
Sales commission per unit = Total sales commissions ÷ Unit sales
Let plug in the formula
Sales commission per unit= $576,700 ÷ 36,500
Sales commission per unit= $15.80
Last step is to find the Total sales commission using this formula
Total sales commission = Sales commission per unit × Unit sales
Let plug in the formula
Total sales commission= $15.80 × 35,000
Total sales commission=$553,000
Therefore the Total sales commission will be $553,000
Which action taken by a central bank would reflect expansionary monetary policy?
Answers
The action taken by a central bank which would reflect the expansionary monetary policy is the sale of treasury securities to banks and the lowering down of reserve requirements.
Options A and C are correct.
What is a central bank?A central bank is referring to the largest bank that controls the regional and subordinate banks. It is the bank in which the commercial banks keep the needed reserve ratio. There are various policies being made by the central bank to monitor the monetary system like fiscal policy, monetary policy, economic policy, etc.
The central bank of the US country is the Federal Reserve that applied the expansionary monetary policy. The three ways that are made by Federal Reserve in respect of this policy are by making the discount rates to be fallen down for every bank, by acquiring the securities being sold by the government in the market and by keeping the reserve ratio to the lowest so that commercial banks can easily maintain them.
Therefore, the explanations written in option A and C are correct.
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Question's missing part:
The options are given as follows:
A) Selling treasury securities to banks to reduce the money supply
B) Raising the discount rate to provide less in loans to banks
C) Lowering the reserve requirements for all banks
D) Raising the interest that it pays to banks on the balance of their
reserves
R. J. Graziano Wholesale Corp. uses the LIFO method of inventory costing. In the current year, profit at R. J. Graziano is running unusually high. The corporate tax rate is also high this year, but it is scheduled to decline significantly next year. In an effort to lower the current year's net income and to take advantage of the changing income tax rate, the president of R. J. Graziano Wholesale instructs the plant accountant to recommend to the purchasing department a large purchase of inventory for delivery 3 days before the end of the year. The price of the inventory to be purchased has doubled during the year, and the purchase will represent a major portion of the ending inventory value.
Required:
a. What is the effect of this transaction on this year's and next year's income statement and income tax expense? Why?
b. If R. J. Graziano Wholesale had been using the FIFO method of inventory costing, would the president give the same directive?
c. Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?
Answers
Answer:
a. What is the effect of this transaction on this year's and next year's income statement and income tax expense? Why?
The inventory account is a permanent asset account in the balance sheet, so it doesn't matter if the company purchases all that it can during the last days of December, it will not affect the income statement, nor their tax liability for the current year. A company only recognizes cost of goods sold when the goods are actually sold, not when they are purchased.
Since the company uses the LIFO (last in, first out) inventory method, all it will do is increase the value of ending inventory which changes into beginning inventory next year. You can reduce next year's income more by purchasing the goods next year.
b. If R. J. Graziano Wholesale had been using the FIFO method of inventory costing, would the president give the same directive?
If the company used the FIFO method, the result will be the same. Inventory is not COGS, whether you use FIFO, LIFO weighted average, specific identification, or any other acronym that you might come up with. At beginning of the year, inventory must be average to determine beginning inventory. it might help to increase COGS a little, therefore, decreasing net income, but the effects shouldn't be significant.
c. Should the plant accountant order the inventory purchase to lower income? What are the ethical implications of this order?
It is useless, and he should know it. The only implication is that this will help him realize his low IQ.
The last in first out is the common method specified by the generally accepted accounting principles (GAAP). It is the method used to maintain the account of inventory. It states that the recently purchased products are expensed at the first expense.
a. The inventory account is a permanent asset account in the balance sheet, so it doesn't matter if the company purchases all that it can during the last days of December, it will not affect the income statement, nor their tax liability for the current year. A company only recognizes the cost of goods sold when the goods are actually sold, not when they are purchased.
b. If the company used the FIFO method, the result will be the same. Inventory is not COGS, whether you use FIFO, LIFO weighted average, specific identification, or any other acronym that you might come up with. At beginning of the year, inventory must be average to determine beginning inventory. it might help to increase COGS a little.
Therefore, decreasing net income, but the effects shouldn't be significant.
c. It is useless, and he should know it. The only implication is that this will help him realize his low IQ.
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In Coronado Company, total materials costs are $38,000, and total conversion costs are $54,480. Equivalent units of production are materials 10,000 and conversion costs 12,000. Compute the unit costs for materials and conversion costs.
Materials cost per unit:__________ $
Conversion cost per unit:________ $
Compute total manufacturing costs:________ $
Answers
Answer:
Materials cost per unit: $3.80
Conversion cost per unit: $4.54
Compute total manufacturing costs: $92,480
Explanation:
Unit Costs = Total Cost ÷ Total Equivalent Units
1. Materials
Unit Cost = $38,000 ÷ 10,000
= $3.80
2. Conversion Costs
Unit Cost = $54,480 ÷ 12,000
= $4.54
Total Manufacturing Costs :
Materials $38,000
Conversion Costs $54,480
Total $92,480
Sara purchased a life insurance policy as an investment from her neighbor, Angela. Angela, the original policy holder had paid premiums of $12,000 before the sale. Sara paid Angela $16,500 to acquire the life insurance policy. Sara made additional payments of $5,000. When Angela died, Sara collected $50,000. How much of the policy proceeds is taxable to Sara
Answers
Answer:
$16,500
Explanation:
She invested = $12,000
Total money spent to acquire the policy = ($16,500 + $5000) = $21,500
Total money invested on policy = $21500 + $12000
Total money invested on policy = $33500
Money that sara got after angela died = $50,000
Therefore, the taxable proceed will be = $50,000 - $33,500 = $16,500
"Ayres Services acquired an asset for $80 million in 2021." The asset is depreciated for financial reporting purposes over four years on a straight-line basis (no residual value). Ayers deducted 100% of the asset's cost for income tax reporting in 2021. The enacted tax rate is 25%. Amounts for pretax accounting income, depreciation, and taxable income in 2021, 2022, 2023, and 2024 are as follows: ($ in millions)
2021 2022 2023 2024
Pretax accounting income $330 $350 $365 $400
Depreciation on the income statement 20 20 20 20
Depreciation on the tax return (80 ) (0 ) (0 ) (0 )
Taxable income $270 $370 $385 $420
For December 31 of each year, determine:
a. The cumulative temporary book-tax difference for the depreciable asset.
b. The balance to be reported in the deferred tax liability account.
Answers
Answer:
a. The cumulative temporary book-tax difference for the depreciable asset are as follows:
December 31, 2021 = $60 million
December 31, 2022 = $40 million
December 31, 2023 = $20 million
December 31, 2024 = $0
b. The balance to be reported in the deferred tax liability account are as follows.
December 31, 2021 = $15 million
December 31, 2022 = $10 million
December 31, 2023 = $5 million
December 31, 2024 = $0
Explanation:
Note: See the attached excel file for the calculation of cumulative temporary book-tax difference for the depreciable asset and the balance to be reported in the deferred tax liability account for December 31 of years 2021, 2022, 2023 and 2024 in bold red color.
In the attached excel file, the following formula are used:
Cumulative Temporary differences at December 31 of the current year = Cumulative Temporary differences at December 31 of the previous year + (Depreciation on the tax return at December 31 of the current year - Depreciation on the income statement at December 31 of the current year)
Balance to be reported in deferred tax liability account at December 31 of the current year = Cumulative Temporary differences at December 31 of the current year * Tax rate
how can you use information about a person's values to help you relate more effectively to him or her."
Answers
Answer: bec if you know the person’s values your are able to better communicate with them because you know their likes and dislikes you have had the chance and opportunity to get to know them and that can help you achieve your goal.
Explanation:
If you know the person’s values you are able to better communicate with them because you know their likes and dislikes you have had the chance and opportunity to get to know them and that can help you achieve your goal.
what is the quality definition of Verbal exchange?
1a: a system by way of which facts are exchanged between people thru a common device of symbols, signs, and symptoms, or behavior the function of pheromones in insect verbal exchange also: alternate of data. b: private rapport is a loss of communication between old and young people.
Why is verbal exchange crucial?Top verbal exchange abilities are vital to allow others and yourself to understand facts extra correctly and fast. In contrast, terrible conversation abilities cause frequent misunderstandings and frustration.
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provide an example of two companies that have built an effective co-operation.briefly explain the relationship of it g
Answers
Answer:
An example of two companies that have built an effective co-operation is discussed below in details.
Explanation:
Louis Vuitton & BMW
Co-operation Operations: The Art of Travel
Designer Louis Vuitton and Carmaker BMW may not be the usual simple pairings. But if you believe about it, they have some significant things in general. If you concentrate on Louis Vuitton's trademark baggage lines, they're both in the industry of journey. They both value leisure. And finally, they're both well-known, fabulous brands that are recognized for high-quality craftsmanship.
A company looking to expand internationally with little risk would choose?
Answers
Answer:
LicensingFranchisingExplanation:
There are no options but Licensing as well as Franchising are some of the least riskiest ways to expand internationally.
With Licensing, the company looking to expand simply sells licenses to various companies in different countries giving them the right to use their image. Basically, the company the license is sold to gets access to the seller's intellectual property but then can run their business with a significant degree of autonomy.
Franchising represents another way to expand with little risk. It involves a company giving a license to another company to sell and sometimes produce their products as well as image rights. The company will give the franchisee (company that gets the license) the knowledge and training required to maintain the franchise and in exchange, franchisee pays a fee.
Both of these methods ensure that the name and brand of a company spread internationally whilst making money from it. Risk is minimized because the investment in other countries is low to nothing.
How is a proceeding for violation of the regulations in Circular 230 instituted against a tax practitioner
Answers
Incomplete question. The options read;
A. An aggrieved taxpayer files a petition with the United States Tax Court stating a claim against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary
B. The IRS representative signs a complaint naming the tax practitioner and files the complaint with the Administrative Law Judge (ALJ)
C. The Secretary of the Treasury files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary in the United States District Court for the District of Columbia
D. The Commissioner of the IRS files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary with the United States Tax Court
Answer:
D. The Commissioner of the IRS files a complaint against the attorney, certified public accountant, registered tax return preparer, enrolled agent, enrolled retirement plan agent, or enrolled actuary with the United States Tax Court
Explanation:
According to the information on the thetaxadviser website, when there is a violation of the regulations in Circular 230 instituted by a tax practitioner a complaint would be filed, and if found guilty, he or she "may be censured, suspended, or disbarred from practice before the IRS."
Usually, the Office of Professional Responsibility would take up the case against the tax practitioner.
The following is a partial trial balance for General Lighting Corporation as of December 31, 2021:
Account Title Debits Credits
Sales revenue 3,100,000
Interest revenue 95,000
Loss on sale of investments 30,000
Cost of goods sold 1,340,000
Loss on inventory write-down (obsolescence) 350,000
Selling expense 450,000
General and administrative expense 225,000
Interest expense 94,000
There were 300,000 shares of common stock outstanding throughout 2021. Income tax expense has not yet been recorded. The income tax rate is 25%.
Required:
1. Prepare a single-step income statement for 2021, including EPS disclosures.
2. Prepare a multiple-step income statement for 2021, including EPS disclosures.
Answers
Answer:
1. single-step income statement for 2021
Sales revenue 3,100,000
Less Cost of goods sold (1,340,000)
Gross Profit 1,760,000
Less Expenses :
Loss on inventory write-down (obsolescence) 350,000
Selling expense 450,000
General and administrative expense 225,000
Interest revenue (95,000)
Loss on sale of investments 30,000
Interest expense 94,000 (1,054,000)
Net Income before tax 706,000
Income tax expense (176,500)
Net Income after tax 529,500
Earnings per share (EPS) $1.77
2. multiple-step income statement for 2021
Sales revenue 3,100,000
Less Cost of goods sold (1,340,000)
Gross Profit 1,760,000
Less Operating Expenses :
Loss on inventory write-down (obsolescence) 350,000
Selling expense 450,000
General and administrative expense 225,000 (1,025,000)
Operating Income 735,000
Less Non-Operating Expenses :
Interest revenue (95,000)
Loss on sale of investments 30,000
Interest expense 94,000 (29,000)
Net Income before tax 706,000
Income tax expense (176,500)
Net Income after tax 529,500
Earnings per share (EPS) $1.77
Explanation:
The difference in these Income statements is that, the Multi-step statement clearly shows income derived from Primary Activities (Operating) whist the Single step statement does not.
Additional Notes :
Earnings per share (EPS) = Earnings Attributable to holders of common stock ÷ Weighted Average Number of Common Stocks
Therefore,
Earnings per share (EPS) = $529,500 ÷ 300,000
= $1.77
If the AD shortfall is $700 billion and the MPC is 0.95, Instructions: Enter your responses rounded to one decimal place. a. How large is the desired fiscal stimulus
Answers
Answer:
a. The desired fiscal stimulus is $35.0 billion.
b. The income tax cut is $36.8 billion.
c. The amount of government spending that would achieve the target is $35.0 billion.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
If the AD shortfall is $700 billion and the MPC is 0.95, Instructions: Enter your responses rounded to one decimal place.
a. How large is the desired fiscal stimulus?
b. How large an income tax cut is needed?
c. Alternatively, how much government spending would achieve the target?
The explantion of the answers is now provided as follows:
From the question, we have:
Aggregate demand (AD) shortfall = $700 billion
Marginal Propensity to Consume (MPC) = 0.95
a. How large is the desired fiscal stimulus?
To calculate the the desired fiscal stimulus, we need to first calculate the multiplier as follows:
Multipliers = 1 (1 - MPC) ................... (1)
Substituting the value into equation (1), we have:
Multipliers = 1 (1 - 0.95) = 1 / 0.05 = 20
The formula for calculating the fiscal stimulus is as follows:
Fiscal stimulus = AD shortfall / Multiplier ..................... (2)
Substituting the values into equation (2), we have:
Fiscal stimulus = $700 billion / 20 = $35.0 billion.
Therefore, the desired fiscal stimulus is $35.0 billion.
b. How large an income tax cut is needed?
This can be calculated using the following formula:
Income tax cut = Fiscal stimulus / MPC .............. (3)
Substituting the values into equation (3), we have:
Income tax cut = $35 billion / 0.95 = $36.8421052631579 billion
Rounding to one decimal place, we have
Income tax cut = $36.8 billion
Therefore, the income tax cut is $36.8 billion.
c. Alternatively, how much government spending would achieve the target?
The amount of increase in government spending that would achieve the target is the same thing as the desired fiscal stimulus already obtained in part a above.
Therefore, the amount of government spending that would achieve the target is $35.0 billion.
Consider the following data on U.S. GDP:
Year Nominal GDP (Billions of dollars) GDP Deflator (Base year 2009)
2015 17,947 109.8
1995 7,664 75.3
The growth rate of nominal GDP between 1995 and 2015 was _____, and the growth rate of the GDP deflator between 1995 and 2015 was _____.
Measured in 2009 prices, real GDP was _____ billion in 1995 and _____ billion in 2015.
The growth rate of real GDP between 1995 and 2015 was _____.
The growth rate of nominal GDP between 1995 and 2015 was _____ than the growth rate of real GDP.
Answers
Answer:
The growth rate of nominal GDP between 1995 and 2015 was 4.35%
Growth rate over a period is calculated as;
= 100 * (((Current variable/initial variable)^1/n) - 1)
= 100 * (((17,947 / 7,664) ^1/20) -1)
= 4.35%
Growth rate of the GDP deflator between 1995 and 2015 was 1.90%.
= 100 * (((109.8/75.3)^1/20) -1)
= 1.90%
Measured in 2009 prices, real GDP was $ 10,177.95 billion in 1995 and $ 16,345.17 billion in 2015.
Real GDP = (Nominal GDP / GDP Deflator) * 100
1995 = (7,664/75.3) * 100
= $ 10,177.95
2015 = (17,947/109.8) * 100
= $ 16,345.17
The growth rate of real GDP between 1995 and 2015 was 2.397% .
= 100 x (((16,345.17 / 10,177.95)^1/20) -1)
= 2.397%
The growth rate of nominal GDP between 1995 and 2015 was more than the growth rate of real GDP.
Nominal GDP growth was 4.35% whilst Real GDP was 2.397%.
Explain how allocating the profits evenly between the partners would work. Consider the fairness to each of the partners in your response.
Answers
Answer and Explanation:
Allocation of profit to partners is all dependent on partnership agreement also called partnership deed where sharing ratio as well as role and participation of partners are stated clearly. The sharing ratio states how profits or losses in the partnership is shared amongst partners. If there is ratio to share profit equally or higher and lower for certain partners, it is made and stated clear in partnership deed before business commences, this ensures there is fairness in partners' dealings and everyone gets his share according to agreement
Please complete the spreadsheet template:
Trans no. Transaction
1. Pamela Wong, the owner, opened a checking account for the business by depositing $48,000 of her personal funds.
2. Paid the monthly rent of $1,500.
3. Bought office furniture on account for $1,000.
4. Pamela Wong invested $3,000 of office equipment in the business.
5. Paid cash for a new computer for the business, $5,000.
6. Paid for an advertisement in the local newspaper, $200.
7. Completed graphic desktop publishing services for a client and sent a bill for $800.
8. Paid $700 on account for the office furniture bought earlier.
9. Received $500 on account from a client.
10. Pamela Wong withdrew $1,000 for personal use.
11. Received $400 cash for desktop publishing services completed for a client.
Answers
Answer:
I used an excel spreadsheet sine there is not enough room here.
Explanation:
Excel templates make it simpler to create a spreadsheet with a polished appearance by including all of the following, with the exception of Data.
What is Excel Sheet ?To eliminate the necessity for the user to generate those designs from scratch, templates are made to specify the fundamental structure of each document that is repeated.
A template typically includes formatting and pre-defined formulas. However, it won't include any data as the template's goal is to have a consistent structure but allow for variable values so that it can respond appropriately to the data.
Formatting and pre-made formulas are frequently included in templates. Although the template aims to have a consistent structure and allow for variable values so that it can react appropriately to the data, it won't contain any data.
Any template will therefore include design but not data. We are able to make a new one, modify an existing template, or utilize the default template.
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If national income is $5,000 billion, compensation of employees is $1,105 billion, proprietors’ income is $1,520 billion, corporate profits are $490 billion, and net interest is $128 billion, then rental income is equal to
Answers
Answer:
Rental income = $1,757 billion
Explanation:
National income is defined as the value of goods and services that a nation produces within a financial year.
Therefore it is made up of all economic actives that the nation is involved in.
The gross domestic product is a measure of the national income.
The formula for national income is given below
National income = employees compensation + proprietors' income + corporate profits + rental income +net interest
5,000 billion = 1,105 billion + 1,520 billion + 490 billion + rental income + 128 billion
Rental income = 5,000 billion - 3,243 billion
Rental income = $1,757 billion
Mickey, Mickayla, and Taylor are starting a new business (MMT). To get the business started, Mickey is contributing $200,000 for a 40% ownership interest. Mickayla is contributing a building with a value of $200,000 and a tax basis of $150,000 for a 40% ownership interest, and Taylor is contributing legal services for a 20% ownership interest. Using the research skills you learned in Week 1, access RIA Checkpoint and research what amount of gain/income each owner is required to recognize under each of the following alternative situations?
a. MMT is formed as a C corporation.
b. MMT is formed as an S corporation.
c. MMT is formed as LLC.
Answers
Answer:
a. MMT is formed as a C corporation.
Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §351, but Taylor's doesn't.
b. MMT is formed as an S corporation.
Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §351, but Taylor's doesn't.
c. MMT is formed as LLC.
Mickey and Mickayla will not recognize any gain, while Taylor must recognize $100,000 as ordinary income. Mickey and Mickayla's exchange classifies under §721, but Taylor's doesn't.
Explanation:
Basically §351 and §721 are very similar except that one applies to corporations and the other applies to partnerships and LLCs. No gain will be recognize when assets are transferred in exchange for equity, and the people involved in the exchange can control the company.
On September 1, Boylan Office Supply had an inventory of 30 calculators at a cost of $18 each. The company uses a perpetual inventory system. During September, the following transactions occurred.
Sept. 6 Purchased with cash 80 calculators at $20 each from Guthrie Co.
Sept. 9 Paid freight of $80 on calculators purchased from Guthrie Co.
Sept. 10 Returned 3 calculators to Guthrie Co. for $63 cash (including freight) because they did not meet specifications.
Sept. 12 Sold 26 calculators costing $21 (including freight) for $31 each on account to Lee Book Store, terms n/30.
Sept. 14 Granted credit of $31 to Lee Book Store for the return of one calculator that was not ordered.
Sept. 20 Sold 30 calculators costing $21 for $32 each on account to Orr's Card Shop, terms n/30.
Journalize the September transactions.
Answers
Answer and Explanation:
The journal entries are shown below:
Inventory $1,600 (80 × $20)
To Accounts Payable $1,600
(Being inventory purchased on account)
Inventory $80
To Cash $80
(Being the freight charges is paid)
Accounts Payable $63
To Inventory $63
(being returned inventory is recorded
Accounts Receivable $806 (26 × $31)
To Sales Revenue $806
(Being sale of calculators on account is recorded)
Cost of Goods Sold $546 (26 × $21)
To Inventory $546
(being cost of calculators sold is recorded)
Sales Returns and Allowances $31
To Accounts Receivable $31
(Being return of calculator that is recorded)
Inventory $31
Cost of Goods Sold $31
(Being cost of calculators returned is recorded)
Accounts Receivable $960 (30 × $32)
To Sales Revenue $960
(Being sale of calculators on account is recorded)
Cost of Goods Sold $630 (30 × $21 )
To Inventory $630
(Being cost of calculators sold is recorded)
You first look at the trial balance. In addition to the account balances reported in the income statement, the ledger contains these selected balances at March 31, 2022. Supplies $4,600 Prepaid Insurance 7,500 Notes Payable 21,000 You then make inquiries and discover the following.
1. Rent revenue includes advanced rentals for summer-month occupancy, $21,500.
2. There were $530 of supplies on hand at March 31.
3. Prepaid insurance resulted from the payment of a 1-year policy on January 1, 2022.
4. The mail on April 1, 2022, brought the following bills: advertising for week of March 24, $150; repairs made March 10, $1,050; and utilities $200.
5. Wage expense totals $270 per day. At March 31, 3 days’ wages have been incurred but not paid.
6. The note payable is a 3-month, 8% note dated January 1, 2022.
Answers
Answer:
rent revenue 21,500 debit
unearned revenue 21,500 credit
--to amend incorrect recognition of revenue--
Supplies expense 4,070 debit
Supplies 4,070 credit
--to record use of supplies--
Insurance expense 1,875 debit
Prepaid Insurance 1,875 credit
--to record use of supplies--
advertizing expense 150 debit
repair expense 1050 debit
utilities expense 200 debit
account payable 1,400 credit
--to record accrued expenses--
wages expense 810 debit
wages payable 810 credit
--to record accrued wages--
interest expense 420 debit
interest payable 420 credit
--to record accrued interest--
Explanation:
#1 unearned revenue
The company should not recognize the summer-month occupancy as this occurs between April and June thereofre it is unearned The company has an obligation to perform. To give the rental space thus it is a liability not earnings.
#2 Supplies adjustment:
Jan 1st $4,600 - March 31st $530 = $4,070 supplies expense
#3 expired insurance:
value per month: $7,500 / 12 months = 625
month expired between Jan 1st and March 31st: 3
total value f expired insurance: $625 per month x 3 month = 1,875
#4 accured expenses concetps were incurred and we most recognize them
#5 each day $270 times 3 days accrued = 810 total wages accrued
#6 accrued interest expense: principal x rate x time
$21,000 x 0.08 x 3/12 = $420
At the local banking institution the branch manager doubles as the IT "go-to" by handling printer setups, resettingLAN passwords, and periodically monitoring the branch’s server health. Last week she noted that a handful of herbranch’s customers complained about suspicious activity in their checking accounts. She knew that the main branchwould handle it and repair any fraudulent charges. She also knew better than to bother the main branch with these customer complaints because the main branch is always ahead of things like this and quickly reminds her that they seewhat she does. Her only response, therefore, was to assure her customers that their accounts would be repaired withinten business days.The most likely law or regulation that becomes an issue upon her discovery i:__________.
a. The Gramm-Leach-Bliley Act’s Safeguards Rule
b. The Good Samaritan Law
c. Section 404 of the Sarbanes-Oxley Act
d. The FTC’s Red Flags Rule
Answers
Answer: d. The FTC’s Red Flags Rule
Explanation:
The Federal Trade Commission has a Red Flags Rules that requires that financial institutions like Banks should implement a program that is capable of flagging instances of suspicious activity that could point to identity theft in the covered accounts that it holds.
This bank's customers are seeing some suspicious activity in their checking accounts which could point to a case of identity theft. The Red Flags rule could therefore be the most relevant rule to the manager's discovery.
Label the following hypothetical demand scenarios. Use the midpoint method.
Contain Yourself!, a plastic container company, raises the price of its signature "lunchbox" container from $3.00 to $4.00. As a result, the quantity sold drops from 20,000 to 15,000. ..........
Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5. ..................
CapCityMetro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day. ...............
Inelastic unit-elastic Elastic perfectly elastic
Answers
Answer:
Contain Yourself!, a plastic container company, raises the price of its signature "lunchbox" container from $3.00 to $4.00. As a result, the quantity sold drops from 20,000 to 15,000.
UNIT ELASTIC ⇒ when the price elasticity of demand is unit elastic, a change in price will result in a proportionally equal change in the quantity demanded.
PED = % change in quantity / % change in price = {(15 - 20) / [(15 + 20)/2]} / {($4 - $3) / [($4 + $3)/2]} = -0.2857 / 0.2857 = -1 or |1| in absolute terms
Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5.
INELASTIC DEMAND ⇒ when the price elasticity of demand is inelastic, a change in price will result in a proportionally lower change in the quantity demanded.
CapCityMetro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day.
ELASTIC DEMAND ⇒ when the demand for a good is elastic, a change in price will result in a proportionally higher change in quantity demanded.
PED = % change in quantity / % change in price = {(61,000 - 70,000) / [(61,000 + 70,000)/2]} / {($2.21 - $2) / [($2.21 + $2)/2]} = -0.1374 / 0.1 = -1.374 or |1.374| in absolute terms
Models of financial markets that emphasize psychological factors affecting investor behavior are called _______.
Answers
Answer:
behavioral finance
Explanation:
Behavioral finance focuses on how psychological factors influence markets, and how important they are. E.g. expectations can sometimes be more important than actual results. Stock prices are not necessarily determined using scientific methods, that is why each analyst has his/her own expected future price. No one can know for sure which price is correct, since each analyst will factor certain variables depending on his/her expectations about the future of the company, the stock market, the country's economy and even the world's economy.
Most people would agree that Warren Buffet is generally right when pricing stocks or adjusting stock prices, but even he is not 100% right all the time. Even personal issues affect how investors value stocks. E.g. if the market has been rising and the economy is strong, most investors will be confident and might decide to take higher risks. On the other hand, if the market is not doing so well, investors might be afraid, and they will seek risk free investments. That is the reason why US securities sometimes yield negative returns. It is simply illogical to invest money knowing that you will lose, just leave the money in the bank. But sometimes desperation leads to mistakes.
Allen Air Conditioning manufactures room air conditioners at plants in Houston, Phoenix, and Memphis. These are sent to regional distributors in Dallas, Atlanta, and Denver. The shipping costs vary, and the company would like to find the least-cost way to meet the demands at each of the distribution centers. Dallas needs to receive 800 air conditioners per month, Atlanta needs 600, and Denver needs 200. Houston has 850 air conditioners available each month, Phoenix has 650, and Memphis has 300. The shipping cost per unit from Houston to Dallas is $8, to Atlanta $12, and to Denver $10. The cost per unit from Phoenix to Dallas is $10, to Atlanta $14, and to Denver $9. The cost per unit from Memphis to Dallas is $11, to Atlanta $8, and to Denver $12.
Required:
a. How many units should owner Stephen Allen ship from each plant to each regional distribution center?
b. What is the total transportation cost?
Answers
Answer:
$14700
Explanation:
Given that:
i. Dallas needs 800 per month
ii. Atlanta needs 600 per month
iii. Denver needs 200 per month
iv. Houston has 850 available per month
v. Phoenix has 650 available per month
vi. Memphis has 300 available per month
Assuming that a plant can deliver air conditioners to more than one regional distributor in a month. Then;
a. For least-cost way to meet the demand, Stephen Allen could ship the air conditioners to each regional distributors as follows:
From Houston to Dallas = 800 units
From Houston to Atlanta = 50 units
From Phoenix to Atlanta = 250 units
From Memphis to Atlanta = 300 units
From Phoenix to Denver = 200 units
Total units transported = 1600 units
b. Cost per transportation:
Houston to Dallas = $8 x 800 = $6400
Houston to Atlanta = $12 x 50 = $600
Phoenix to Atlanta = $14 x 250 = $3500
Memphis to Atlanta = $8 x 300 = $2400
Phoenix to Denver = $9 x 200 = $1800
Total transportation cost = $6400 +$600 + $3500 + $2400 + $1800
= $14700
The total transportation cost would be $14700.
Firms often seek to borrow money to expand their capital stock, and the price they pay for the money is the interest rate. What happens to quantity of money demanded if the interest rate increases
Answers
Answer:
When interest rate rises, the quantity of money demanded reduces
Explanation:
As interest rate increases firms seeking to borrow money for capital stock expansion are likely not going to go ahead with it. The reason is simply because, interest rate and money demanded have an inverse relationship. As interest rate rises money demanded falls because it means that for any amount of money borrowed the interest rate attached to it is higher making the cost of borrowing heavier on the borrower.
There are two machines for sale that you are considering purchasing for your sawmill to produce hardwood flooring. You want to find the one that has a higher process capability index, or Cpk. The goal is to produce flooring that is between 46 and 50 millimeters thick. The first machine is more accurate on average, producing to a mean of 48 millimeters...but unfortunately it has more variation with a standard deviation of 7 millimeters. The second machine is not as accurate, with a mean of 47mm, but does deliver a more consistent output, with standard deviation of 3mm.
[ Select] What is the Cpk of machine 1?
[Select] What is the Cpk of machine 2?
[ Select] If your goal is to be capable', what would you do?
[ Select] If (somehow) you could combine the best of both machines (the centering or average of machine 1 coupled with the constancy or standard deviation of machine 2, what would the Cpk be?
Answers
Answer:
Machine 1 = 0.092
Machine 2 = 0.111
Combined = 0.222
Explanation:
Given the following :
Lower specification limit (LSL) = 46 mm
Upper specification limit (USL) = 50 mm
MACHINE 1:
Mean 1 (m1) = 48
Standard deviation 1 (σ1) = 0.7
MACHINE 2:
Mean 2 (m2) = 47
Standard deviation 2 (σ2) = 0.3
Cpk formula:
Min(USLcpk, LSLcpk)
USLcpk = (USL - m) / 3σ
LSLcpk = (m - LSL) / 3σ
FOR MACHINE 1:
USLcpk = (50 - 48) / 3(7) = 0.0952
LSLcpk = (48 - 46) / 3(7) = 0.0952
Cpk = Min(0.952, 0.952) = 0.952
FOR MACHINE 2:
USLcpk = (50 - 47) / 3(3) = 0.333
LSLcpk = (47 - 46) / 3(3) = 0.111
Min(USLcpk, LSLcpk)
Cpk = Min(0.333, 0.111) = 0.111
When combined :
Mean = 48
σ = 3
USLcpk = (50 - 48) / 3(3) = 0.222
LSLcpk = (48 - 46) / 3(3) = 0.222
Min(USLcpk, LSLcpk)
Cpk = Min(0.222, 0.222) = 0.222
HELP HELP ILL MASK BRAINLIEST
why do we have different minimum wages ?
Answers
Answer:
Higher minimum wages are most common in states with higher costs of living.
Explanation:
If you live in a smaller town the minimum wage is lower. If you live in a big city it'll more than likely be higher.
Answer:The US has tended to change the national minimum wage infrequently, with changes depending largely on the political balance of power at the federal level. ... But US states and even cities have the power to set minimum wages that are higher than the national rate.
Explanation:
How can you enable your sales team to perform better?
A. by enforcing stringent rules
B. by providing them with training and other supporting material
C. by permitting them the freedom to do whatever they think is right
D. by increasing their pay more often than the rest of the workforce
Answers
Answer: i think its B because it makes the most sense out of them all
Explanation:
Assume Merck (MRK) just announced that its next dividend will be $2, paid one year from now (you just missed the prior annual dividend). You expect the dividend will grow (after the $2 dividend) by 3% per year forever. Your required return is 10%. What are you willing to pay for a share of Merck stock
Answers
Answer:
$28.57
Explanation:
Current price = D1/(Required return-Growth rate)
D1 (Next dividend) = $2
Required return = 10% = 0.1
Growth rate = 3% = 0.03
Current price = $2/(0.1-0.03)
Current price = $2 / 0.07
Current price = $28.57143
Current price = $28.57
Hence, i will be willing to pay $28.57 for a share of Merck stock.