Answer:
Nelson Company
a. Adjusting Journal Entries:
Debit Supplies Expense $2,700
Credit Supplies $2,700
To record supplies expense.
Debit Insurance Expense $1,650
Credit Prepaid Insurance $1,650
To record insurance expense.
Debit Depreciation Expense $1,625
Credit Accumulated Depreciation $1,625
To record depreciation expense.
b. Multi-step Income Statement for the year ended January 31, 2017:
Sales $114,550
Sales returns and allowances 2,000
Net Sales 112,550
Cost of goods sold 38,000
Inventory Shrinkage 3,700 41,700
Gross profit $70,850
Depreciation expense- Store 1,625
Sales discounts 1,850
Salaries expense 13,600
Rent expense 6,000
Store supplies expense 2,700
Advertising expense 9,700
Total selling expenses $35,475
Administrative Expenses:
Salaries expense 13,600
Insurance expense 1,650
Rent expense 6,000
Total administrative expenses $21,250 $56,725
Net Income $14,125
c. Single-step Income Statement for the year ended January 31, 2017:
Sales $114,550
Sales discounts 1,850
Sales returns and allowances 2,000
Cost of goods sold 38,000
Inventory Shrinkage 3,700
Depreciation expense- Store 1,625
Salaries expense 27,200
Rent expense 12,000
Store supplies expense 2,700
Advertising expense 9,700
Insurance expense 1,650 $100,425
Net Income $14,125
d. Current Ratio = Current Assets/Current Liabilities
= $22,700/$16,000
= 1.42
Acid-test ratio = (Current assets - Inventory)/Current Liabilities
= ($22,700 -10,800)/$16,000
= 0.74
Gross margin ratio = Gross profit/Net Sales = $70,850/112,550 * 100
= 63%
Explanation:
a) Data and Calculations:
NELSON COMPANY Unadjusted Trial Balance January 31, 2017
Debit Credit
Cash $8,150
Merchandise inventory 14,500
Store supplies 5,500
Prepaid insurance 2,600
Store equipment 42,800
Accumulated depreciation -Store equipment $17,850
Accounts payable 16,000
J. Nelson, Capital 18,000
J. Nelson, Withdrawals 2,100
Sales 114,550
Sales discounts 1,850
Sales returns and allowances 2,000
Cost of goods sold 38,000
Depreciation expense- Store equipment 0
Salaries expense 27,200
Insurance expense 0
Rent expense 12,000
Store supplies expense 2,700
Advertising expense 9,700
Totals $166,400 $166,400
Adjustments:
Supplies Expense $2,700 Supplies $2,700
Insurance Expense $1,650 Prepaid Insurance $1,650
Depreciation Expense $1,625 Accumulated Depreciation $1,625
NELSON COMPANY
Adjusted Trial Balance January 31, 2017
Debit Credit
Cash $8,150
Merchandise inventory 10,800
Store supplies 2,800
Prepaid insurance 950
Store equipment 42,800
Accumulated depreciation -Store equipment $19,475
Accounts payable 16,000
J. Nelson, Capital 18,000
J. Nelson, Withdrawals 2,100
Sales 114,550
Sales discounts 1,850
Sales returns and allowances 2,000
Cost of goods sold 38,000
Inventory Shrinkage 3,700
Depreciation expense- Store 1,625
Salaries expense 27,200
Insurance expense 1,650
Rent expense 12,000
Store supplies expense 2,700
Advertising expense 9,700
Totals $168,025 $168,025
Current Assets:
Cash $8,150
Merchandise inventory 10,800
Store supplies 2,800
Prepaid insurance 950
Total current assets = $22,700
Current Liabilities:
Accounts payable 16,000
Prepare a journal entry for the purchase of office equipment on February 19 for $31,700, paying $7,600 cash and the remainder on account. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is enter.
CHART OF ACCOUNTS
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Office Supplies
14 Prepaid Insurance
15 Land
16 Office Equipment
17 Automobiles
LIABILITIES
21 Accounts Payable
22 Unearned Rent
23 Notes Payable
24 Salaries Payable
EQUITY
31 John Doe, Capital
32 John Doe, Drawing
Journal
Prepare a journal entry for the purchase of office equipment on October 27 for $32,750, paying $6,550 cash and the remainder on account. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 1
GENERAL JOURNAL
DATE ACCOUNT TITLE POST. REF. DEBIT CREDIT
1
2
3
REVENUE
41 Fees Earned
42 Sales Commission
Answer:
A. Dr Office equipment $31,700
Cr Cash $7,600
Cr Accounts payable $24,100
B. Dr Office equipment $32,750
Cr Cash $6,550
Cr Accounts payable $26,200
Explanation:
Preparation of the journal entry
A. Based on the information given if the purchase of office equipment on February 19 was the amount of $31,700 in which the amount of $7,600 was paid as cash while the remainder on account which means that the journal entry will be:
Dr Office equipment $31,700
Cr Cash $7,600
Cr Accounts payable $24,100
($31,700-$7,600)
B. Based on the information given if the purchase of office equipment on February 19 was the amount of $32,750 in which the amount of $6,550 was paid as cash while the remainder on account which means that the journal entry will be:
Dr Office equipment $32,750
Cr Cash $6,550
Cr Accounts payable $26,200
($32,750-$6,550)
Each of the following is a characteristic of a defined benefit retirement plan EXCEPT: Question 3 options: The plan assigns the risk of pre-retirement inflation, investment performance, and adequacy of retirement income to the employee. The plan specifies the benefit an employee receives at retirement. The plan has less predictable costs as compared to defined contribution plans. The law specifies the maximum allowable benefit payable from the plan is equal to the lesser of 100% of salary or $230,000 (2020) per year currently
Answer:
Each of the following is a characteristic of a defined benefit retirement plan EXCEPT:
The plan assigns the risk of pre-retirement inflation, investment performance, and adequacy of retirement income to the employee.
Explanation:
No. With a defined benefit retirement plan, the risk of pre-retirement inflation, investment performance, and adequacy of retirement income is never assigned to the employee. Instead, the employer bears this risk. The defined benefit plan always specifies the benefit to which an employee is entitled to at retirement. It also demands that the employee must work for a certain defined period to be entitled to this benefit. By its nature, the defined benefit plan provides a fixed and pre-established benefit for employees. This is why it is preferred by employees.
On January 1, 2021, Tiny Tim Industries had outstanding $1,000,000 of 12% bonds with a book value of $967,000. The indenture specified a call price of $983,500. The bonds were issued previously at a price to yield 14% and interest payable semi-annually on July 1 and January 1. Tiny Tim called the bonds (retired them) on July 1, 2021. What is the amount of the loss on early extinguishment
Answer:
$8,810
Explanation:
Calculation for What is the amount of the loss on early extinguishment
First step is to calculate the Call price of bond
Call price of bond=$967,000 + ($967,000*(14%/2)) - ($1,000,000*(12%/2))
Call price of bond= $967,000 + ($967,000*7%) - ($1,000,000*6%)
Call price of bond=$967,000+$67,690+$60,000
Call price of bond= $974,690
Now let calculate the Amount of loss on early extinguishment
Amount of loss on early extinguishment = $983,500 - $974,690
Amount of loss on early extinguishment = $8,810
Therefore Amount of loss on early extinguishment will be $8,810
2. How is CrudeOil violating its core value of treating oth-
ers with respect? What are some ways it could reincor-m
porate this core value into its organizational culture??
Answer:
1. Describe the organizational culture at CrudeOil. How does it contribute to the current situation?
Jim treated all of the employees with intimidating behavior based on productivity levels and not moral or ethical concepts. His leadership style is coercive and demands immediate compliance. If this style were summed up in one phrase, it would be "Do what I tell you." In my opinion, it should be avoided because it can alienate employees and create a hostile work environment.
2. How is CrudeOil violating its core value of treating others with respect?
What are some ways it could reincorporate this core value into its organizational culture? “The company’s core value is to treat everyone with respect”. Employees and supervisors, in my experiences, often treat colleagues in harsh and unethical manners only as far as the victim allows it to happen. Financial and reputational harm are questionable and unethical behaviors and organizational policies must be clearly established to reincorporate this value into its culture.
3. If Madison cannot report her problems to her immediate supervisor, what are some other ways she can handle the situation?
I would suggest for Madison to seek advice from a trusted professional, such as the HR compliance officer to verify the actions are inappropriate, if so, Madison needs to learn what process is available for voicing her concern to a higher level. Jim’s behavior is clearly unethical, but many of these behaviors are less clear and occur in complex situations. The most complicated situations often involve employees who witness what is, or appears to be, unethical behavior and are unsure how to respond, especially if job security is on the line...
This is some of it
Jim's leadership abilities breached CrudeOil's fundamental value of treating others with respect because he frequently treats coworkers harshly and unethically.
What are the three main uses of crude oil?Petroleum-based products are used to power vehicles, heat buildings, and generate energy. Plastics, polyurethane, solvents, and countless more intermediate and finished commodities are produced by the petrochemical industry, which is a part of the industrial sector.
Jim's activities should therefore be addressed by top management in order to reintegrate this key principle into the organizational culture. Additionally, they could offer a variety of training to their staff, particularly those in higher positions, to inform them on correct management and leadership skills as well as the significance of adhering to the company's code of ethics.
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A consulting engineer has been engaged to advise a town how best to proceed with the construction of a 200,000 water supply reservoir. Since only 120,000 of storage will be required for the next 25 years, an alternative to building the full capacity now is to build the reservoir in two stages. Initially, the reservoir could be built with 120,000 of capacity and then, 25 years hence, the additional 80,000 of capacity could be added by increasing the height of the reservoir. Estimated costs are as follows construction cost, and annual maintenance cost, build in 2 stages first stage 120,000 reservoir $14'200,000 $75,000; second stage add 80,000 of capacity $120600,000 and $25,000 additional construction cost build in full capacity now 200,000 reservoir $22'400,000 and $100,000 if the interest is computed at 4%, which construction plan is preferred?
Answer:
Single stage construction
PW of Cost = $22,400,000 + 100,000(P/A, 4%, 25)
PW of Cost = $22,400,000 + 100,000(15.622)
PW of Cost = $22,400,000 + $1,562,200
PW of Cost = $23,962,200
Tow stage construction
PW of cots = $14,200,000 + $75,000(P/A, 4%, 25) + $12,600,000(P/F, 4%, 25)
PW of cost = $14,200,000 + $75,000(15.622) + $12,600,000(0.3751)
PW of cost = $14,200,000 + $1,171,650 + $4,726,260
PW of cost = $20,097,910
Conclusion: We should choose two stage construction as it has lesser Present worth of cost.
Here we preferred two stage construction as it has lesser Present worth of cost.
Calculation of the selection of the construction plan:For Single stage construction
PW of Cost = $22,400,000 + 100,000(P/A, 4%, 25)
= $22,400,000 + 100,000(15.622)
= $22,400,000 + $1,562,200
= $23,962,200
Now
For Tow stage construction
PW of cots = $14,200,000 + $75,000(P/A, 4%, 25) + $12,600,000(P/F, 4%, 25)
= $14,200,000 + $75,000(15.622) + $12,600,000(0.3751)
= $14,200,000 + $1,171,650 + $4,726,260
= $20,097,910
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Which of the following is a reason companies are hiring temporary workers more often than in the past?
A- Temporary employees work harder than permanent employees.
B- Temporary workers are more loyal to the company, thereby making them more productive.
C- Most companies provide temporary workers with very few, if any, benefits.
D- Workers seeking temporary employment are better educated than those seeking permanent employment
Royal Technology Company uses a job order cost system. The following data summarize the operations related to production for March:
Mar.
1 Materials purchased on account, $770,000.
2 Materials requisitioned, $680,000, of which $75,800 was for general factory use.
31 Factory labor used, $756,000, of which $182,000 was indirect.
31 Other costs incurred on account for factory overhead, $245,000; selling expenses, $171,500; and administrative expenses, $110,600.
31 Prepaid expenses expired for factory overhead were $24,500; for selling expenses, $28,420; and for administrative expenses, $16,660.
31 Depreciation of factory equipment was $49,500; of office equipment, $61,800; and of office building, $14,900.
31 Factory overhead costs applied to jobs, $568,500.
31 Jobs completed, $1,500,000.
31 Cost of goods sold, $1,375,000.
Required:
Journalize the entries to record the summarized operations.
Answer:
See the journal entries below.
Explanation:
The journal entries will look as follows:
Date Account Title Debit ($) Credit ($)
Mar. 1 Materials 770,000
Accounts payable 770,000
(To record materials purchased on account.)
Mar. 2 Factory Overhead 75,800
Work in process 604,200
Materials 680,000
(To record materials requisition.)
Mar. 31 Factory Overhead 182,000
Work in process 574,000
Wages payable 756,000
(To record materials wages payable.)
Mar. 31 Factory Overhead 245,000
Selling expenses 171,500
Administrative expenses 110,600
Accounts payable 527,500
(To record other costs incurred on account.)
Mar. 31 Factory Overhead 24,500
Selling expenses 28,420
Administrative expenses 16,660
Accounts payable 69,580
(To record prepaid expenses expired.)
Mar. 31 Depreciation expenses 126,200
Accumulated dep. - Equp. & Buil. 126,200
(To record depreciation expenses for equipment and building.)
Mar. 31 Work in process 568,500
Factory Overhead 568,500
(To record factory overhead costs applied.)
Mar. 31 Finished goods 1,500,000
Work in process 1,500,000
(To record jobs completed.)
Mar. 31 Cost of goods sold 1,375,000
Finished goods 1,375,000
(To record cost of goods sold.)
What should you do first to best use your personal goals as a means for a promotion
Answer:
The solution to this question can be defined as follows:
Explanation:
To achieve any goal, first of all, we need to make a quite high range of the ambition and after preparing the ambition we need to get hard work to achieve that goal. we must not be lazy, in another word we can say that laziness will make a boundary, that we can't pass. If we want to get the goal is to be promoted by using personal goals. that's why we suggest that the separate your personal and work goals, and try to work hard to achieve the goal.
Before work can begin on the project, the customer must Group of answer choices sign a contract with the contractor that includes the project start date and payment plan. assess the risks for completing the project on time and reduce the award amount if there is any risk. announce who won the bid for the project so the work can start immediately. contact the contractor and say the project is the winner so the work can start immediately.
Answer:
sign a contract with the contractor that includes the project start date and payment plan.
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
Mutual assent is a legal term which represents an agreement by both parties to a contract. When two parties to a contract both have an understanding of the parameters, terms and conditions surrounding a contract, it ultimately implies that they are in agreement; this is generally referred to as mutual assent.
Hence, before work can begin on the project, the customer must sign a contract with the contractor that includes the project start date and payment plan.
Indiana Company produces couches. The fixed monthly cost of production is $8,000, and the variable cost per unit is $65. The couches sell for $180 apiece. Answer these questions: 3 points each 1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit. 2) Determine the monthly break-even volume for Indiana Company.
Answer: See explanation
Explanation:
1) For a monthly volume of 300 tables, determine the total cost, total revenue, and profit.
Fixed monthly cost = $8000
Variable cost per unit = $65
Selling price = $180 each
Monthly volume = 300
Therefore, the total cost will be
= $8000 + ($65 × 300)
= $8000 + $19500
= $27500
The total revenue will then be:
= Price × Quantity
= $180 * 300 units
= $54000
Total profit will be:
= Sales revenue - Cost
= $54000 - $27500
= $26500
b) Break even volume simply means the volume whereby no profit or loss is incurred. This will be:
= $8000 / ($180 - $65)
= $8000 / $115
= 69.56 units
= 70 units
The Manda Panda Company uses the allowance method to account for bad debts. At the beginning of 2009, the allowance account had a credit balance of $75,000. Credit sales for 2009 totaled $2,400,000 and the year-end accounts receivable balance was $490,000. During this year, $73,000 in receivables were determined to be uncollectible. Manda Panda anticipates that 3% of all credit sales will ultimately become uncollectible. The fiscal year ends on December 31.
Required:
1. Does this situation describe a loss contingency? Explain.
2. What is the bad debt expense that Manda Panda should report in its 2009 income statement?
3. Prepare the appropriate journal entry to record the contingency.
4. What is the net realizable value (book value) Manda Panda should report in its 2009 balance sheet?
Answer:
The Manda Panda Company
1. This is not a loss contingency. A loss contingency refers to a probable payment that might result from an uncertain event.
2. The bad debt expense that Manda Panda should report in its 2009 income statement is $70,000 ($73,000 -$75,000 + $72,000).
3. Debit Allowance for Uncollectible accounts $3,000
Credit Bad Debts Expense $3,000
To reduce the allowance account from $75,000 to $72,000.
Debit Bad Debts Expense $73,000
Credit Accounts Receivable account $73,000
To write-off the bad debts.
4. The net realizable value of accounts receivable is $418,000 ($490,000 - 72,000)
Explanation:
a) Data and Calculations:
Allowance for Uncollectible account (credit balance) = $75,000
Credit sales for 2009 = $2.4 million
Year-end Accounts Receivable = $490,000
Bad Debts = $73,000
Estimated allowance for Uncollectible = 3% of all credit sales (3% of $2.4 million) = $72,000
b) A contingency loss requires that a liability be created to account for the loss. This is not the case with making allowances for uncollectible accounts or writing off bad debts. There is no need to create a liability account since no payment will eventually be made to settle any liability in the future.
A group of middle school students wants to raise money to help build a new school track. They decided to sell donuts before school. Demand is 275 donuts when the donuts are given away free, and the demand drops to 175 donuts when the price is 25 cents per donut. However, the middle school administration is prepared to supply only 150 donuts free of charge but will supply 200 donuts when the price is 50 cents per donut. Assume that the demand and supply functions are both linear functions. What price should the students charge per donut so that there is neither a surplus nor a shortage of donuts
Answer:
25 cent/donuts
Explanation:
Demand function have these two points (275, 0), (175, 25)
Demand function equation:
y - 25 = [tex]\frac{25 - 0}{175-275}[/tex] (x-175)
-100y + 2500 = (x - 175)
-4y + 100 = x - 175
x + 4y = 100 + 175
x + 4y = 275....................equ 1
Similarly Supply function have these point (150,0), (200, 50)
Supply function equation:
y - 50 = [tex]\frac{50 - 0}{200-150}[/tex](x- 200)
50y - 2500 = x - 200
y - 50 = x - 200
x - y = 200 - 150
x - y = 150
By equation 1 & 2
x + 4y = 275
x - y = 150 ==> x = 150+y
So from equ 1 => x + 4y = 275
=> 150+y+4y = 275
=> 150+5y = 275
=> 5y = 275 - 150
=> 5y = 125
=> y = 25
So, the price that the students should charge per donut so that there is neither a surplus nor a shortage of donuts is 25 cent/donuts
Games Galore Corporation hires Amanda, a minor, to create new customized game software for certain clients. Amanda signs a contract that requires her to work for Games Galore for eighteen months. Before beginning work, however, Amanda tells Games Galore that she will not create new software for Games Galore and that she is going to work for Ideal Worldcraft, Inc., a Games Galore competitor. Answer the following questions, providing the reasoning/analysis behind your conclusions, i.e. list the applicable rule/law, and apply the facts to the rule to reach a conclusion. You can also argue in the alternative.
(a) Is Games Galore’s contract with Amanda enforceable?
(b) Why or why not?
Answer and Explanation:
According to the question the contract is valid but the same would not be enforceable as Amanda is a minor. As a minor her consent is not valid completely but if there is any violation on Games Galore so the same would be penalized that results the contract to be enforceable. For minors, the guardian is necessary
So being a minor the contract would not be enforceable although she accepts the terms and condition of 18 months
Fiji, Inc. started 2025 with $12,000 in assets and $2,500 in liabilities. Fiji had issued 50 shares of stock when it went into business in 2019 for $10 per share, and not stock has been issued since that time. At December 31, 2025, Fiji had $23,000 in assets and $4,000 in liabilities. How much was Fiji's net income during 2025 if the company paid $1,000 in dividends during the year?
a $11,500
b $12,000
c $10,500
d $11,000
e None of the above
Answer:
$See below
Explanation:
Fuji Net income in 2025 is computed as
= Beginning asset + Dividend - Beginning liabilities
Given that;
Beginning asset = $12,000
Dividend = $1,000
Beginning liabilities = $2,500
Net income
= $12,000 + $1,000 - $2,500
= $10,500
After reviewing the rhetorical fallacies, can you think of a specific time when you heard a speaker employ one of these fallacies? Which fallacy did they use? Why should you avoid fallacies in your own speeches?
Answer:
they can be bad because they can / will confuse people especially the public
Match each definition with its related term by selecting the appropriate letter in the drop down provided. There should be only one definition per term. (that is, there are more definitions than terms.)
Definitions:
A. Report the long life of a company in shorter periods.
B. Record expenses when incurred in earning revenue.
C. The time it takes to purchase goods or services from suppliers, sell goods or services to customers, and collect cash from customers.
D. Record revenues when earned and expenses when incurred.
E. Increases in assets or decreases in liabilities from peripheral transactions.
F. An asset account used to record cash paid before expenses have been incurred.
G. Record revenues when earned and measurable (when the company transfers promised goods or services to customers, and in the amount the company expects to receive).
H. Decreases in assets or increases in liabilities from peripheral transactions.
I. Record revenues when received and expenses when paid.
J. The income statement equation.
K. Decreases in assets or increases in liabilities from central ongoing operations.
L. The retained earnings equation.
M. A liability account used to record cash received before revenues have been earned.
1. Expenses
2. Gains
3. Revenue recognition principle
4. Cash basis accounting
5. Unearned revenue
6. Operating cycle
7. Accrual basis accounting
8. Prepaid expenses
9. Revenues − Expenses = Net Income
10. Ending Retained Earnings = Beginning Retained Earnings + Net Income − Dividends Declared
Answer:
A. Going concern
B. Accrual Basis accounting
C. Operating Cycle
D. Cash Basis Accounting
E. Gains
F. Prepaid Expense
G. Revenue recognition principle
H. Expenses
I. Cash basis Accounting
J. Revenue - Expenses = Net Income
K. Expense
L. Ending Retained Earning = Beginning Retained Earning + Net Income - Dividends Declared
M. Unearned Revenue
Explanation:
The definitions for each letter are matched with the accounting terms. The unearned revenue account is used to record the revenue received but services yet to be delivered. This is a liability account in which the company reports any unearned revenue.
The toy buyer had the option of ordering stuffed animals directly from the manufacturer or from a nearby wholesaler. The manufacturer will not ship orders for less than $1,200 total list price. Delivery typically requires five weeks, and freight averages 2.5% of total billed cost. Trade discounts on this merchandise are 40% and 10%; terms are 2/10, n/30.
A wholesaler, located in the retailer's area, stocks many of the same stuffed animals. He does not require a minimum order and will deliver at no charge in the area if the order has a billed cost of at least $500. The manufacturer and wholesaler base cost on the same list price; however, the wholesaler sells with trade discounts of 40% and 8% and terms of 1/15. n/30.
Required:
What is the difference in the total net cost (including freight) of merchandise with a total list price of $1, 200 from these two vendors?
Answer:
difference between supplies = $4.68
Explanation:
cost of merchandise from manufacturer if paid within discount period:
$1,200 x (1 - 40%) = $720
$720 x (1 - 10%) = $648
freight cost = $648 x 2.5% = $16.20
discount for early payment = $648 x 2% = $12.96
total cost = $651.24
cost of merchandise from wholesaler if paid within discount period:
$1,200 x (1 - 40%) = $720
$720 x (1 - 8%) = $662.40
discount for early payment = $648 x 1% = $6.48
total cost = $655.92
difference between supplies = $4.68
Cost of merchandise from manufacturer if paid within discount period:
$1,200 x (1 - 40%) = $720 and $720 x (1 - 10%) = $648
Cost of merchandiseFreight cost = $648 x 2.5% = $16.20
Discount for early payment = $648 x 2% = $12.96
Then Total cost is = $651.24
Then the price of merchandise from wholesaler if paid within discount period: $1,200 x (1 - 40%) = $720 and $720 x (1 - 8%) = $662.40
After that discount for early payment is= $648 x 1% = $6.48
Then the full cost is = $655.92
Thus, the right answer is that the difference between supplies = $4.68
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Vanessa Kaiser and Mariah Newman decide to form a partnership by combining the assets of their separate businesses. Kaiser contributes the following assets to the partnership: cash, $25,800; accounts receivable with a face amount of $187,600 and an allowance for doubtful accounts of $5,400; merchandise inventory with a cost of $118,900; and equipment with a cost of $175,800 and accumulated depreciation of $58,200. The partners agree that $6,000 of the accounts receivable are completely worthless and are not to be accepted by the partnership, that $5,700 is = reasonable allowance for the uncollectibility of the remaining accounts, that the merchandise inventory is to be recorded at the current market price $131,400, and that the equipment is to be valued at $104,900.
Required:
Journalize the partnership's entry to record Kaiser's investment.
Answer:
Date Accounts title and Explanation Debit Credit
Cash $25,800
Account receivables(187,600-6,000) $182,200
Merchandise Inventory $118,900
Equipment $104,900
Allowance for Doubtful Accounts $5,700
Kaiser, Capital $426,100
(To record Kaiser Investment in Partnership Entity)
The following trial balance was prepared from the ledger accounts of Ricardo Company: RICARDO COMPANY Trial Balance April 30, Year 2 Account Titles Debit Credit Cash $ 71,900 Accounts receivable 36,000 Supplies 2,400 Prepaid insurance 4,200 Land $ 11,000 Accounts payable 10,200 Common stock 100,000 Retained earnings 29,640 Dividends 8,600 Service revenue 70,000 Rent expense 10,200 Salaries expense 32,700 Operating expense 33,600 Totals $ 199,600 $ 220,840 When the trial balance failed to balance, the accountant reviewed the records and discovered the following errors: The company received $590 as payment for services rendered. The credit to Service Revenue was recorded correctly, but the debit to Cash was recorded as $770. A $1,200 receipt of cash that was received from a customer on accounts receivable was not recorded. A $580 purchase of supplies on account was properly recorded as a debit to the Supplies account. However, the credit to Accounts Payable was not recorded. Land valued at $11,000 was contributed to the business in exchange for common stock. The entry to record the transaction was recorded as a $11,000 credit to both the Land account and the Common Stock account. A $800 rent payment was properly recorded as a credit to Cash. However, the Salaries Expense account was incorrectly debited for $800.
Question Completion:
Prepare the corrected Trial Balance of Ricardo Company.
Answer:
RICARDO COMPANY
The corrected Trial Balance April 30, Year 2
Account Titles Debit Credit
Cash $ 72,920
Accounts receivable 34,800
Supplies 2,400
Prepaid insurance 4,200
Land 11,000
Accounts payable $10,780
Common stock 100,000
Retained earnings 29,640
Dividends 8,600
Service revenue 70,000
Rent expense 11,000
Salaries expense 31,900
Operating expense 33,600
Totals $ 210,420 $ 210,420
Explanation:
a) Data and Calculations:
RICARDO COMPANY
Trial Balance April 30, Year 2
Account Titles Debit Credit
Cash $ 71,900
Accounts receivable 36,000
Supplies 2,400
Prepaid insurance 4,200
Land $11,000
Accounts payable 10,200
Common stock 100,000
Retained earnings 29,640
Dividends 8,600
Service revenue 70,000
Rent expense 10,200
Salaries expense 32,700
Operating expense 33,600
Totals $ 199,600 $ 220,840
Cash Account:
Account Titles Debit Credit
Balance $ 71,900
Overstated service revenue 180
Accounts receivable 1,200
Balance $72,920
Totals $73,100 $73,100
Balance $72,920
Accounts Receivable
Account Titles Debit Credit
Balance $36,000
Cash $1,200
Balance $34,800
Totals $36,000 $36,000
Balance $34,800
Accounts Payable
Account Titles Debit Credit
Balance $10,200
Supplies 580
Balance $10,780
Totals $10,780 $10,780
Balance $10,780
Land
Account Titles Debit Credit
Balance $11,000
Correction of error $22,000
Balance $11,000
Totals $22,000 $22,000
Balance $11,000
Salaries Expense
Account Titles Debit Credit
Balance $32,700
Rent Expense $800
Balance $31,900
Totals $32,700 $32,700
Balance $31,900
Rent Expense
Account Titles Debit Credit
Balance $10,200
Salaries Expense 800
Balance $11,000
Totals $11,000 $11,000
Balance $11,000
Stephen discusses with his boss his initial ideas on how to approach his hosting duties. His boss claims he is on the right track, but that he should remember to build goodwill in his remarks. Stephen remembers that this will be the workers' introduction to him, so he needs them to trust him in the role of chief operating officer going forward. Although he will be introducing other speakers during the meeting, he doesn't want to get his goals confused. Select the statement that describes something Stephen should do for a goodwill speech.A. Stephen contacts his boss to ask him what information about himself he would like shared. B. Stephen speaks respectfully about his boss and his positive characteristics. C. Stephen tells the workers that he also believes in fairness and teamwork. D. Stephen conducts research to understand more about the corporate executives.
Answer:
D. Stephen conducts research to understand more about the corporate executives.
Explanation:
Analyzing the information above, it is correct to say that a good presentation should be able to retain the public's attention and positively impact people. For this, it is considered that the letter D is the most relevant option for Stephan to achieve his goals in his speech, because knowing his audience in depth will be a decisive factor to align his presentation with the interests of the audience and thus retain attention and integrate them with what is being said. Therefore, research to understand more about corporate executives will lead Stephan to achieve effectiveness in his presentation.
Which are included in a customer profile?
Select all that apply.
A.)social media messages
B.)socioeconomic status
C.)promotions and prices
D.)attitudinal and behavioral details
E.)marketing strategies
F.)demographic information
Hey there!
I would say the answers are B, C, F
The others do not seem like something that would be in a customer profile.
Hope it helps and have a great day!
An article in The Globe and Mail, February 16, 2002, reported that IBM used the $300 million proceeds of a sale of one of its business units to reduce operating expenses in its fourth quarter 2001 income statement. This added about 8 cents per share to its fourth quarter earnings. As a result, IBM beat analysts' forecasts by 1 cent per share.
IBM defended its treatment by claiming that buying and selling businesses is a normal business practice, and that most of the sale proceeds related to intellectual property that it had developed. The article quotes a Merrill Lynch analyst as saying, "Our only concern is that the company could have done more to call out the magnitude of the transaction." According to the article, IBM's share price fell by 4% as a result of this news.
While not mentioned in this article, the SEC opened a preliminary inquiry into IBM's accounting practice, expressing concerns that IBM had let it be known that the reason for its higher operating earnings was tight cost controls, rather than the sale proceeds. This inquiry was subsequently dropped, but the SEC issued a bulletin reminding firms to report gains or losses on asset sales separately from operating costs.
Required
Explain why IBM's share price dropped following the Merrill Lynch analyst's comment and the news of the SEC's preliminary inquiry.
Answer:
The sale of business units are one time events that should not be common. If the only way that IBM can show profit is by selling business divisions, in a very short time it will run out of divisions to sell. A company's intrinsic value is given by its cash flows, especially the operating cash flow.
Assuming that turkey chicken pork and beef are substitues supppose that the price of turkey had fallen. This will, other things being equal
wait where did the turkey fall?
The three dates related to a cash dividend include which of the following:
a. Date of declaration
b. Date of payment
c. Date of issuance
d. Date of record
e. Date of payable
Answer: a. Date of declaration
b. Date of payment
d. Date of record
Explanation:
The three dates that are related to a cash dividend are:
Date of declaration - This is the date that a particular company is being binded to pay its dividend.
Date of payment - This simply means the date when dividend is paid to the stockholders.
Date of record - This is the date for the identification of recipients.
Ryan Corporation manufactures auto steering systems. Cost estimates for one unit of the product for the year follow:
Direct materials $200
Direct labor ($12/hour) $300
Machine hours 20
This product requires 15 hours of direct labor in Department A and 10 hours in Department B. Also, it requires 5 machine hours in Department A and 15 machine hours in Department B.
The factory overhead costs estimated in these two departments follow:
Variable cost Fixed cost
A $ 150,000 94,000
B $ 80,000 163,000
Management expects the firm to produce 1,000 units during the year.
Required
1. Assume that factory overhead was applied on the basis of direct labor hours. Compute the predetermined plantwide factory overhead rate.
2. If factory overhead were applied on the basis of machine hours, what would be the plantwide overhead rate?
3. If the company produced 1,000 units during the year, what was the total amount of applied factory over-head in each department in requirements 1 and 2?
4. If you were asked to evaluate the performance of each department manager, which allocation basis (cost driver) would you use? Why?
5. Compute the departmental overhead rate and amount of applied overhead for Department A using direct labor hours as the allocation base and for Department B using machine hours as the allocation base.
1) The predetermined plantwide factory overhead rate based on direct labor hours is $10.28.
2) The predetermined plantwide factory overhead rate based on machine hours = $12.85 ($257,000/20,000)
3) The total applied factory overhead:Department A Department B Total
Requirement 1 $154,200 $102,800 $257,000
Requirement 2 64,250 192,750 257,000
4. The allocation basis for Department A should be direct labor hours. The department is more labor-intensive. The allocation basis for Department B should be machine hours as it is more machine-intensive.
5) The computation of the departmental overhead rate and amount of applied overhead for Department A using direct labor hours as the allocation base and for Department B using machine hours as the allocation base is as follows:
Department A Department B
Direct labor hours 15,000
Machine hours 15,000
Fixed factory overheads $94,000 $163,000
Departmental overhead rate $6.27 $10.87 ($163,000/15,000)
Applied Overhead $154,200 $192,750
($10.28 x 15,000) ($12.85 x 15,000)
Data and Calculations:Cost of One Unit:
Direct materials $200
Direct labor ($12/hour) $300
Direct labor hour per unit = 25 hours ($300/$12)
Total direct labor hours = 25,000 (25 x 1,000)
Total machine hours = 20,000 (20 x 1,000)
Department A Department B Total
Direct labor hours 15 10 25
Machine hours 5 15 20
Variable factory overheads $150,000 $80,000 $230,000
Fixed factory overheads 94,000 163,000 257,000
Total annual production units = 1,000 units
1) Predetermined plantwide factory overhead rate based on direct labor hours = $10.28 ($257,000/25,000)
2) Predetermined plantwide factory overhead rate based on machine hours = $12.85 ($257,000/20,000)
3) Total applied factory overhead:Department A Department B Total
Direct labor hours $154,200 $102,800 $257,000
Machine hours 64,250 192,750 257,000
5) Departmental Overhead Rate and Applied Overhead:
Department A Department B
Direct labor hours 15,000
Machine hours 15,000
Fixed factory overheads $94,000 $163,000
Departmental overhead rate $6.27 $10.87 ($163,000/15,000)
Applied Overhead $154,200 $192,750
($10.28 x 15,000) ($12.85 x 15,000)
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In January, Harry and Belinda Johnson had $10,660 in monetary assets: $1,100 in cash on hand; $1,200 in a statement savings account at First Credit Union earning 1.0 percent interest; $4,000 in a statement savings account at the Far West Savings Bank earning 1.1 percent interest; $2,260 in Homestead Credit Union earning a dividend of 1.3 percent; and $2,100 in their regular checking account at First Credit Union earning 1 percent.
If the Johnsons could put most of their monetary assets ($10,660) into a money market account earning 2.3 percent, how much would they have in the account after one year? Round your answer to the nearest dollar.
Answer:
the amount after one year is $10,905
Explanation:
The computation of the amount after one year is shown below:
= Monetary assets ×(1 + earning interest)
= $10,660 × (1 + 0.023)
= $10,660 × 1.023
= $10,905
Hence, the amount after one year is $10,905
We simply applied the above formula
According to the substitution effect of labor supply, when the wage rate goes up: Group of answer choices it becomes more costly to consume leisure, so people will work more. it becomes less costly to consume leisure, so people will work more. the opportunity cost of enjoying leisure goes down. firms will hire more workers since people are more willing to work.
According to the substitution effect of labor, firms would hire more workers because people are more willing to work more.
The substitution effect of labor tells us that as income is raised, people would be more willing to give up leisure hours to work more.
This is due to the fact that they would earn more money for the extra hours that they would have spent on leisure.
There would be more willingness to work and the firms would have more people to hire.
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Filer Manufacturing has 9 million shares of common stock outstanding. The current share price is $88, and the book value per share is $7. The company also has two bond issues outstanding. The first bond issue has a face value $80 million, a coupon of 5 percent, and sells for 98 percent of par. The second issue has a face value of $55 million, a coupon of 6 percent, and sells for 106 percent of par. The first issue matures in 20 years, the second in 8 years.
a. What are the company's capital structure weights on a book value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) Equity / Value Debt / Value
b. What are the company's capital structure weights on a market value basis? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., 32.1616.) Equity / Value Debt / Value
c. Which are more relevant? Market value weights or Book value weights
Answer:
a. Book Value of Common Stock = [9,000,000 shares * $7.00 per share] = $63,000,000
Book Value of Debt = [$80,000,000 + $55,000,000] = $135,000,000
Total Book Value = $63,000,000 + $135,000,000 = $198,000,000
Capital structure weights of Common Stock = [$63,000,000 / $198,000,000] = 0.3182
Capital structure weights of Debt = [$135,000,000 / $198,000,000] = 0.6818
b. Market Value of Common Stock = [9,000,000 shares x $88 per share] = $792,000,000
Market Value of Debt = [($80,000,000 x 98%) + ($55,000,000 x 106%)] = $136,700,000
Total Market Value = $792,000,000 + $136,700,000 = $928,700,000
Capital structure weights of Common Stock = [$792,000,000 / $928,700,000] = 0.8528
Capital structure weights of Debt = [$136,700,000 / $928,700,000] = 0.1472
c. Market values/weigh are always preferred because they reflect the current scenario.
Barrios Communications is a provider of satellite television services. It will install a satellite dish free of charge for any customer that agrees to a one-year service contract at a price of $50 per month. Installation costs Barrios $150. Customers typically remain with Barrios for much longer than the one year required, an average of 10 years (i.e., 9 years beyond their contractual obligation). Barrios enters into a contract under the terms described above on January 1, 20X1.
Required:
1. What amount of revenue should Barrios record related to the contract in 2019?
2. What amount of expense related to the contract should Barrios record related to the contract in 2019?
Answer:
1. $600
2. $15
Explanation:
1. Calculation for What amount of revenue should Barrios record related to the contract in 2019
Revenue= $50 * 12 months
Revenue= $600
Therefore What amount of revenue should Barrios record related to the contract in 2019 is $600
2. Calculation for What amount of expense related to the contract should Barrios record related to the contract in 2019
Expense= $150/10 years
Expense= $15
Therefore What amount of expense related to the contract should Barrios record related to the contract in 2019 is $15
Question Mode Multiple Select Question Select all that apply At the end of the previous year, a customer owed Chocolates R US $500. On January 31 of the current year, the customer paid $900 total, which included the $500 owed plus $400 owed for the current month of January. What would be the journal entry on January 31 that reflects this
Answer:
January 31
Dr Cash $900.
Cr Service revenue $400.
Cr Accounts receivable $500.
Explanation:
Preparation of the journal entry
Based on the information given What would be the journal entry on January 31 that reflects this are :
January 31
Dr Cash $900.
Cr Service revenue $400.
Cr Accounts receivable $500.