Answer: $31000
Explanation:
Elaine's current basis in her partnership interest will be calculated as:
= Value of original basis + (interest purchased - Cash received) + tax exempt interest
= $40000 + ($70000 - $80000) + $1000
= $40000 - $10000 + $1000
= $31000
The _____ the distance between the time of the event and the time the client knows about the events, the greater _____. greater; the probability of achieving the project goals greater; the likelihood of satisfying the client lesser; the client's doubt in the project team's ability to do the task lesser; the frustration of the client greater; the client's frustration and mistrust
Answer:
greater; the client's frustration and mistrust.
Explanation:
Project management can be defined as the process of designing, planning, developing, leading and execution of a project plan or activities using a set of skills, tools, knowledge, techniques and experience to achieve the set goals and objectives of creating a unique product or service.
The fundamentals of Project Management includes;
1. Project initiation
2. Project planning
3. Project execution
4. Monitoring and controlling of the project
5. Adapting and closure of project.
It is very important and essential that project managers in various organizations, businesses and professions adopt the aforementioned fundamentals in order to successfully achieve their aim, objectives and goals set for a project.
Generally, projects are considered to be temporary because they usually have a start-time and an end-time to complete, execute or implement the project plan.
The greater the distance between the time of the event and the time the client knows about the events, the greater the client's frustration and mistrust. Thus, project managers are advised to reduce a client's frustration and enhance trust by reducing the distance between the time of the event and the time the client knows about the events i.e timely dissemination of informations to the client.
School band members need to raise money for new uniforms. Some members want to sell energy drinks at a football game, but others want to organize a car wash in the school parking lot. Based on the concept of scarcity, which thoughts must drive their decision making process?
Answer:
the answer is D. Are there enough volunteers to work a car wash?
Explanation:
just took quiz
Answer:
D. Are there enough volunteers to work a car wash?
Explanation:
Grey Corp owns 100% of Blue Company. On January 1, 2017 Grey sold Blue a machine for $66,000. Immediately prior to the sale, the machine was recorded on Grey's books at a net book value of $25,000. Prior to the sale, Grey was depreciating the machine on a straight-line basis with 9 years of remaining life and no salvage value. Blue plans to adopt the same depreciation assumptions as Grey. What elimination adjustments with respect to this sale must be made to consolidated net income in 2018 (ignoring income tax effects)
Answer:
Journal 1 - Eliminate gain on sale :
Debit : Other Income ($66,000 - $25,000) $41,000
Credit : Machinery $41,000
Journal 2 - Eliminate the unrealized profit from the sale :
Debit : Accumulated depreciation $4,556
Credit : Depreciation $4,556
Explanation:
Grey Corp and Blue Company are in a group of Companies. Grey Corp is the Parent and should prepare Consolidated Financial Statements . Blue Company is a subsidiary (Grey owns more that 50 % of voting rights in Blue Company).
When preparing Consolidated Financial Statements, intragroup transaction must be eliminated. As they happen, a Company trades within its-self that is the reason they should be eliminated.
Concerning the sale of machine by Grey (Parent) to Blue (Subsidiary), we must first eliminate the Income (gain on sale) in Parent as well as the asset that sits in the Subsidiary.
Debit : Other Income ($66,000 - $25,000) $41,000
Credit : Machinery $41,000
Also, we have to eliminate the unrealized profit on the gain of the asset sold.
Debit : Accumulated depreciation $4,556
Credit : Depreciation $4,556
Deprecation calculation :
Deprecation = $41,000 ÷ 9 = $4,556
Storm Tools has formed a new business unit to produce battery-powered drills. The business unit was formed by the transfer of selected assets and obligations from the parent company. The unit's initial balance sheet on January 1 contained cash ($500,000), plant and equipment ($2,500,000), notes payable to the parent ($1,000,000), and residual equity ($2,000,000).
The business unit is expected to repay the note at $50,000 per month, plus all accrued interest at 1/2% per month. Payments are made on the last day of each month.
The unit is scheduled to produce 25,000 drills during January, with an increase of 2,500 units per month for the next three months. Each drill requires $40 of raw materials. Raw materials are purchased on account, and paid in the month following the month of purchase. The plant manager has established a goal to end each month with raw materials on hand, sufficient to meet 25% of the following month's planned production.
The unit expects to sell 20,000 drills in January; 25,000 in February, 25,000 in March, and 30,000 per month thereafter. The selling price is $100 per drill. Half of the drills will be sold for cash through a website. The others will be sold to retailers on account, who pay 40% in the month of purchase, and 60% in the following month. Uncollectible accounts are not material. Each drill requires 20 minutes of direct labor to assemble. Labor rates are $24 per hour. Variable factory overhead is applied at $9 per direct labor hour. The fixed factory overhead is $25,000 per month; 60% of this amount is related to depreciation of plant and equipment. With the exception of depreciation, all overhead is funded as incurred.
Selling, general, and administrative costs are funded in cash as incurred, and consist of fixed components (salaries, $100,000; office, $40,000; and advertising, $75,000) and variable components (15% of sales). Prepare a monthly comprehensive budget plan for Storm's new business unit for January through March. The plan should include the (a) sales and cash collections budget, (b) production budget, (c) direct materials purchases and payments budget, (d) direct labor budget, (e) factory overhead budget, (f) ending finished goods budget (assume total factory overhead is applied to production at the rate of $11.73 per direct labor hour), (g) SG&A budget, and (h) cash budget.
STORM TOOLS
Sales Budget
For the Three Months January to March
January February March
Expected Cash Collections From Sales
STORM TOOLS
Production Budget
For the Three Months January to March
January February March
STORM TOOLS
Direct Materials Budget
For the Three Months January to March
January February March
Expected Cash Payments for Materials Purchases
STORM TOOLS
Direct Labor Budget
For the Three Months January to March
January February March
STORM TOOLS
Factory Overhead Budget
For the Three Months January to March
January February March
STORM TOOLS
Ending Finished Goods Inventory
31-Mar
Units Per Unit Cost Per Unit Total
STORM TOOLS
Selling, General, and Administrative Budget
For the Three Months January to March
January February March
STORM TOOLS
Cash Budget
For the Three Months January to March
January February March
Beginning cash balance
Plus: Customer receipts
Available cash
Less disbursements:
Direct materials
Direct labor
Factory overhead
SG&A
Total disbursements
Cash surplus/(deficit)
Financing:
Planned repayment
Interest on note (1/2% of unpaid balance)
Ending cash balance
Answer:
Storm Tools
STORM TOOLS
1. Sales Budget
For the Three Months January to March
January February March
Expected Cash Collections
From Sales $1,400,000 $2,275,000 $2,500,000
STORM TOOLS
2. Production Budget
For the Three Months January to March
January February March
Production Schedule 25,000 27,500 30,000
Cost of direct materials $1,000,000 $1,100,000 $1,200,000
STORM TOOLS
4. Direct Materials Budget
For the Three Months January to March
January February March
Expected Cash Payments
for Materials Purchases $1,025,000 $1,125,000
STORM TOOLS
5. Direct Labor Budget
For the Three Months January to March
January February March
Direct labor costs $200,000 $220,000 $240,000
STORM TOOLS
6. Factory Overhead Budget
For the Three Months January to March
January February March
Variable overhead $75,000 $82,500 $90,000 $97,500
Fixed overhead 25,000 25,000 25,000 25,000
Total overhead $100,000 $107,500 $115,000 $122,500
Depreciation cost 15,000 15,000 15,000 15,000
Cash payment for o/h $85,000 $92,500 $100,000 $107,500
STORM TOOLS
7. Ending Finished Goods Inventory
31-Mar
Units Per Unit Cost Per Unit Total
January 5,000 $51.91 $259,550
February 7,500 $51.91 $389,325
March 12,500 $51.91 $648,875
STORM TOOLS
Selling, General, and Administrative Budget
For the Three Months January to March
January February March
Fixed overhead:
Salaries $100,000 $100,000 $100,000
Office expenses 40,000 40,000 40,000
Advertising 75,000 75,000 75,000
Fixed overhead $215,000 $215,000 $215,00
Variable overhead 210,000 341,250 375,000
Selling, General, and Admin. $425,000 $556,250 $590,000
STORM TOOLS
Cash Budget
For the Three Months January to March
January February March
Beginning cash balance $500,000 $1,135,000 $1,461,500
Plus: Customer receipts 1,400,000 2,275,000 2,500,000
Available cash $1,900,000 $3,410,000 $3,961,500
Less disbursements:
Direct materials $0 $1,025,000 $1,125,000
Direct labor 200,000 220,000 240,000
Factory overhead 85,000 92,500 100,000
SG&A 425,000 556,250 590,000
Total disbursements $710,000 $1,893,750 $2,055,000
Cash surplus/(deficit) $1,190,000 $1,516,250 $1,906,500
Financing:
Planned repayment $50,000 $50,000 $50,000
Interest on note
(1/2% of unpaid balance) 5,000 4,750 4,500
Ending cash balance $1,135,000 $1,461,500 $1,852,000
Explanation:
a) Data and Calculations:
Initial Balance Sheet on January 1:
Cash $500,000
Plant and equipment $2,500,000
Total assets $3,000,000
Notes payable $1,000,000
Residual equity $2,000,000
Total liabilities and equity $3,000,000
Repayment of note:
Note payment $50,000 per month
Accrued interest 250
Total repayment $50,250 per month
January February March April
Production Schedule 25,000 27,500 30,000 32,500
Cost of direct materials $1,000,000 $1,100,000 $1,200,000 $1,300,000
Ending raw materials 6,875 7,500 8,125
Production Schedule 25,000 27,500 30,000 32,500
Beginning raw materials 6,250 6,875 7,500 8,125
Purchase of materials 25,625 28,125 30,625
Cost price = $40 per drill
Payment for materials $1,025,000 $1,125,000 $1,225,000
Beginning Finished goods 5,000 7,500 12,500
Production 25,000 27,500 30,000 32,500
Ending Finished goods 5,000 7,500 12,500 15,000
Sales 20,000 25,000 25,000 30,000
Selling price = $100 per drill
Credit sales: $1,000,000 $1,250,000 $1,250,000 $1,500,000
40% month of sale 400,000 625,000 625,000 750,000
60% following month 400,000 625,000 625,000
Cash sales 1,000,000 1,250,000 1,250,000 1,500,000
Total sales collection $1,400,000 $2,275,000 $2,500,000 $2,875,000
Direct labor per drill = 20 minutes
Labor rates = $24 per hour
Variable overhead = $9 per direct labor hour
Production Schedule 25,000 27,500 30,000 32,500
Total labor hours 8,333 9,167 10,000 10,833
Direct labor costs $200,000 $220,000 $240,000 $260,000
Variable overhead $75,000 $82,500 $90,000 $97,500
Fixed overhead 25,000 25,000 25,000 25,000
Total overhead $100,000 $107,500 $115,000 $122,500
Depreciation cost 15,000 15,000 15,000 15,000
Cash payment for o/h $85,000 $92,500 $100,000 $107,500
Selling, general, and administrative costs:
Fixed overhead $215,000 $215,000 $215,000 $215,000
Variable overhead 210,000 341,250 375,000 431,250
Total selling, etc $425,000 $556,250 $590,000 $628,250
Cost of production:
Cost of direct materials $1,000,000 $1,100,000 $1,200,000 $1,300,000
Direct labor costs $200,000 $220,000 $240,000 $260,000
Overhead applied 97,746 107,529 117,300 127,071
Total costs of prodn. $1,297,746 $1,427,529 $1,557,300 $1,687,071
Production Schedule 25,000 27,500 30,000 32,500
Cost per unit $51.91 $51.91 $51.91 $51.91
how can the size of the industrial/service sector and the agriculture employment rate indicate the level of industrialization?
Answer:
The more electricity, communications, and transportation used in a nation's economy, it will give them a more developed country and a greater potential for increased industrialization
nswer the question on the basis of the following cost data. Output Average Fixed Cost Average Variable Cost 1 $50.00 $100.00 2 25.00 80.00 3 16.67 66.67 4 12.50 65.00 5 10.00 68.00 6 8.37 73.33 7 7.14 80.00 8 6.25 87.50 If the firm closed down in the short run and produced zero units of output, its total cost would be Multiple Choice $0. $50. $150. $100.
Answer:
The correct answer is $50.
Explanation:
When the company produces zero units, the only costs that it would incur will be the fixed costs. We need to determine the total fixed costs:
Total fixed costs= Unitary fixed costs*number of units
Total fixed costs= 50*1= $50
Total fixed costs= 25*2= $50
Total fixed cost= 16.67*3= $50
Total fixed cost= 12.50*4= $50
And so on...
On a unitary basis, the fixed costs decrease with production. On a total basis, it remains constant.
Production= 0
Fixed cost= $50
The price of Microsoft is $37 per share and that of Apple is $43 per share. The price of Microsoft increases to $42 per share after one year and to $47 after two years. Also, shares of Apple increase to $49 after one year and to $59 after two years. If your portfolio comprises 100 shares of each security, what is your portfolio return in year 1 and year 2
Answer: 13.75% ; 16.48%
Explanation:
Year 0:
Microsoft: Current value = 100 at $37 = $3700
Apple: Current value = 100 at $43 = $4300
Portfolio value = $3700 + $4300 = $8000
Year 1:
Microsoft: value at year 1 = 100 at $42 = $4200
Apple: value at year 1= 100 at $49 = $4900
Portfolio value = $4200 + $4900 = $9100
Year 2:
Microsoft: value at year 2 = 100 at $47 = $4700
Apple: value at year 2 = 100 at $59 = $5900
Portfolio value = $4700 + $5900 = $10600
Therefore, Portfolio returns for year 1 will be:
= (value at the end of year 1 / current value) - 1
= (9100 / 8000) - 1
= 1.1375 - 1
= 0.1375
= 13.75%
Portfolio returns for year 2 will be:
= (value at the end of year 2 / value at the end of year 1) - 1
= (10600 / 9100) - 1
= 16.48%
Essence of Skunk Fragrances, Ltd., sells 5,750 units of its perfume collection each year at a price per unit of $445. All sales are on credit with terms of 1/10, net 40. The discount is taken by 35 percent of the customers.
Required:
What is the amount of the company's accounts receivable?
Answer:
The amount of the company's accounts receivable is $2,558,750.
Explanation:
Accounts Receivables are amounts owed to the company. They are measured at amounts that the company expects to be entitled to after a sale.
The sale journal is :
Debit : Accounts Receivables (5,750 units x $445) $2,558,750
Credit : Sales Revenue (5,750 units x $445) $2,558,750
Wings Co. budgeted $570,000 manufacturing direct wages, 3,000 direct labor hours, and had the following manufacturing overhead:
Overhead Cost Budgeted Budgeted Level for Overhead
Pool Overhead Cost Driver Cost Driver
Cost
Materials handling $188,000 4,700 pounds Weight of materials
Machine setup 21,600 540 setups Number of setups
Machine repair 1,260 31,500 machine
hours Machine hours
Inspections 12,400 310 inspections Number of inspections
Requirements for Job 971 which manufactured 4 units of product:
Direct labor 20 hours
Direct materials 130 pounds
Machine setup 30 setups
Machine hours $15.000 machine hours
Inspections 15 inspections
1. Using ABC, overhead cost assigned to Job #971 for machine setup is:____.
a. $2,300.
b. $990.
c. $6,500.
d. $690.
e. $1,020 .
2. Using ABC, overhead cost assigned to Job #971 for machine repair is:____.
a. $2,300.
b. $990.
c. $6,500.
d. $690.
e. $1,020.
Answer:
Results are below.
Explanation:
First, we need to calculate the allocation rates:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Machine setup= 21,600/540= $40 per setup
Machine repair= 1,260/31,500= $0.04 per machine hour
Now, we can allocate costs to Job 971:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Machine setup= 40*30= $1,200
Machine repair= 0.04*15,000= $600
if your credit card is $10,275 and you pay the full balance before the bill is due, how much will you pay in interest
Answer:
you do not pay interest on any money that does not carry over till the next month. if your balance is zero theres no interest
Explanation:
you only pay on a balance the % per dollar to the card . so if the card charges 10% on 100$ if your balance is 100$ you will owe 110$ on your next billing cycle
Use the chart to answer the questions. Year Potential GDP Real GDP 2017 $18.17 trillion $18.05 trillion 2018 $18.51 trillion $18.56 trillion Be sure to put your answer in percentage form, and round answers to two decimal places. a. Calculate the output gap for 2017. % b. Calculate the output gap for 2018. % c. From 2017 to 2018, the output gap became more .
Answer:
a. Output gap for 2017 = –0.66%
b. Output gap for 2018 = 0.27%
c. From 2017 to 2018, the output gap became more positive.
Explanation:
The following are given in the question:
Year Potential GDP Real GDP
2017 $18.17 trillion $18.05 trillion
2018 $18.51 trillion $18.56 trillion
To calculate output gap in percentage form, the following formula is used:
Output gap = ((Real GDP - Potential GDP) / Potential GDP) * 100 ......... (1)
Therefore, we have:
a. Calculate the output gap for 2017. %
Using equation (1), we have:
Output gap for 2017 = ((18.05 - 18.17) / 18.17) * 100 = –0.66%
b. Calculate the output gap for 2018. %
Using equation (1), we have:
Output gap for 2018 = ((18.56 - 18.51) / 18.51) * 100 = 0.27%
c. From 2017 to 2018, the output gap became more .
Since the output gap in 2017 is negative while the output gap in 2018 is positive; this implies that from 2017 to 2018, the output gap became more positive.
The underlying principle of the temporal method is Group of answer choices all balance sheet accounts are translated at the current exchange rate, except stockholder equity. monetary balance sheet accounts should be translated at the spot rate; nonmonetary accounts are translated at the historical rate in effect when the account was first recorded. monetary accounts are translated at the current exchange rate; other accounts are translated at the current exchange rate if they are carried on the books at current value; items carried at historical cost are translated at historic exchange rates. assets and liabilities should be translated based on their maturity.
Answer:
monetary accounts are translated at the current exchange rate; other accounts are translated at the current exchange rate if they are carried on the books at current value; items carried at historical cost are translated at historic exchange rates.
Explanation:
The principle of the temporal method means that the accounts that are monetary in nature would be transform at the current or present exchange rate, also the other account would be transform but they should be at the current value. In addition to this, if the items are at historical cost so they should be transform at historic exchange rates
Therefore the last 2nd option is correct
Sunland Company just began business and made the following four inventory purchases in June: June 1 153 units $1071 June 10 204 units 1632 June 15 204 units 1836 June 28 153 units 1530 $6069 A physical count of merchandise inventory on June 30 reveals that there are 204 units on hand. Using the average cost method, the amount allocated to the ending inventory on June 30 is
Answer:
the ending inventory is $1,734
Explanation:
The computation of the amount allocated to the ending inventory is shown below:
But before that the average per unit is
= Total amount ÷ total units
= $6,069 ÷ (153 + 204 + 204 + 153)
= $8.5
Since the ending inventory units is 204 units
So, the ending inventory is
= $8.5 ×204 units
= $1,734
hence, the ending inventory is $1,734
Market screening is a method of market analysis and assessment that permits management to identify a small number of desirable markets by eliminating those judged to be less attractive.
a. True
b. False
Hsung Company accumulates the following data concerning a proposed capital investment: cash cost $226,445, net annual cash flows $40,500, and present value factor of cash inflows for 10 years is 5.89 (rounded). (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45).) Determine the net present value, and indicate whether the investment should be made.
Answer:
Hsung Company
a. The net present value is:
= $12,100.
b. Since the investment could yield a net present value of $12,100, the investment should be made.
Explanation:
a) Data and Calculations:
Cash cost of proposed capital investment = $226,445
Net annual cash inflows = $40,500
Present value factor of cash inflows for 10 years = 5.89 (rounded)
Present value of net annual cash inflows = $238,545 ($40,500 * 5.89)
The net present value of the proposed capital project = Present value of net annual cash inflows minus the initial investment cost
= $12,100 ($238,545 - $226,445)
Answer:
12100
Explanation:
40500*5.89=238545
238545-226445=12100
12100
What do we call the principle that costs of production will increase by the inefficient reallocation of specialized resources for the production of additional goods for which there sources are not well suited?
A the law of natural economics
B the law of market regulation
C the law of macro-economic control
D the law of increasing opportunity costs
Answer:
the law of market regulation
Explanation:
i did this in my business class
Jessica purchased a home on January 1, 2018 for $580,000 by making a down payment of $230,000 and financing the remaining $350,000 with a 30-year loan, secured by the residence, at 6 percent. During 2018 and 2019, Jessica made interest-only payments on this loan of $21,000 (each year). On July 1, 2018, when her home was worth $580,000 Jessica borrowed an additional $145,000 secured by the home at an interest rate of 8 percent. During 2018, she made interest-only payments on the second loan in the amount of $5,800. During 2019, she made interest only on the second loan in the amount of $11,600. What is the maximum amount of the $32,600 interest expense Jessica paid during 2019 may she deduct as an itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard
Answer:
$32,600
Explanation:
Calculation to determine her itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard
Using this formula
Itemized deduction =(Financing amount * 6 percent)+(Additional amount borrowed*interest rate of 8 percent)
Let plug in the formula
Itemized deduction=( $350,000 * 6 percent)+($145,000 *8 percent)
Itemized deduction=($21,000+$11,600)
Itemized deduction=$32,600
Therefore her itemized deduction if she used the proceeds of the second loan to finish the basement in her home and landscape her yard wi be $32,600
What is the the impact of corruption on business cycle
Answer:
Corruption diverts talent and resources, including human resources, towards “lucrative” rent-seeking activities, such as defence, rather than productive activities. business, ultimately raising production costs and reducing the profitability of investments. human capital.
Nthanda Corporation has just completed a physical inventory count at year end, December 31, 2020. Only the items on the shelves, in storage, and in the receiving area were counted and costed on the FIFO basis. The inventory amounted to K80,000. During the audit, the independent Accountant discovered the following additional information:
(a) There were goods in transit on December 31, 2020, from a supplier with terms FOB Shipping Point, costing K10,000. Because the goods had not arrived, they were excluded from the physical inventory count.
(b) On December 27, 2020, a regular customer purchased goods for cash amounting to K1,000 and had them shipped to a bonded warehouse for temporary storage on December 28, 2020. The goods were shipped via common carrier with terms FOB Destination. The customer picked the goods up from the warehouse on January 4, 2021. Nthanda Company had paid K500 for the goods and, because they were in storage, Nthanda included them in the physical inventory count.
(c) Nthanda Company, on the date of the inventory, received notice from a supplier that goods ordered earlier, at a cost ofK4,000, had been delivered to the transportation company on December 28, 2020; the terms were FOB shipping point. Because the shipment had not arrived on December 31, 2020, it was excluded from the physical inventory.
(d) On December 31, 2020, there were goods in transit to customers, with terms FOB shipping point, amounting to K800 (expected delivery on January 8, 2021). Because the goods had been shipped, they were excluded from the physical inventory count.
(e) On December 31, 2020, Nthanda Company shipped K2,500 worth of goods to a customer, FOB destination. The goods arrived on January 5, 2020. Because the goods were not on hand, they were not included in the physical inventory count.
(f) Nthanda Company, as the consignee, had goods on consignment that cost K3,000. Because these goods were on hand as of December 31, 2020, they were included in the physical inventory count.
Required
i. Pass an analysis of the above information and calculate a correct amount for the ending inventory. Give explanation of the basis for your treatment of each item.
Problem 10-4 Partnership Formation (LO 10.2) Elaine's original basis in the Hornbeam Partnership was $40,000. Her share of the taxable income from the partnership since she purchased the interest has been $70,000, and Elaine has received $80,000 in cash distributions from the partnership. Elaine did not recognize any gains as a result of the distributions. In the current year, Hornbeam also allocated $1,000 of tax-exempt interest to Elaine. Calculate Elaine's current basis in her partnership interest. $fill in the blank 1 1,000
Answer:
$31,000
Explanation:
Calculation to determine Elaine's current basis in her partnership interest
Using this formula
Elaine's current basis= Value of original basis + (interest purchased - Cash received) + Tax exempt interest
Let plug in the formula
Elaine's current basis= $40,000 + ($70,000 - $80,000) + $1,000
Elaine's current basis= $40,000 - $10,000 + $1,000
Elaine's current basis= $31,000
Therefore Elaine's current basis in her partnership interest is $31,000
Adkins Bakery uses the modified half-month convention to calculate depreciation expense in the year an asset is purchased or sold. Adkins has a calendar year accounting period and uses the straight-line method to compute depreciation expense. On March 17, 2018, Adkins acquired equipment at a cost of $220,000. The equipment has a residual value of $43,000 and an estimated useful life of 4 years. What amount of depreciation expense will be recorded for the year ending December 31, 2018
Answer:
Depreciation expense= $36,875
Explanation:
Under the straight line method of depreciation, the cost of an asset less the salvage value is spread equally over the expected useful life.
An equal amount is charged as annual depreciation over the life of the asset. The annual depreciation is calculated as follows:
Annual depreciation:
= (cost of assets - salvage value)/ Estimated useful life
Cost - 220,000
Residual value = 43,000
Estimated useful life = 4 years
Annual depreciation = (220,000- 43,000)/4 =44,250
Annual depreciation = 44,250.
Under the half-month convention, a full month depreciation is charged where an asset is first put to at the middle month of the month.
Thus March 17, 2018 to December 2018 is taken to be 10 full months
Depreciation expense = 44,250.× 10/12 = 36,875
Depreciation expense= $36,875
The trial balance for Splish Brothers Inc. appears as follows: Splish Brothers Inc. Trial Balance December 31, 2022 Cash $340 Accounts Receivable 595 Prepaid Insurance 93 Supplies 205 Equipment 4560 Accumulated Depreciation, Equipment $680 Accounts Payable 438 Common Stock 1370 Retained Earnings 1600 Service Revenue 3415 Salaries and Wages Expense 1140 Rent Expense 570 $7503 $7503 If as of December 31, 2022, rent of $171 for December had not been recorded or paid, the adjusting entry would include a: debit to Rent Expense for $171 debit to Rent Payable for $171 credit to Cash for $171. credit to Accumulated Rent for $171.
Answer:
debit to Rent Expense for $171
Explanation:
The adjusting entry would be
Rent Expense $171
To Rent expenses payable $171
(Being Rent expense accounted is recorded)
Here the rent expense is debited as it increased the assets and credited the rent expense payable as it also increased the liabilities
Therefore the a option is correct
ANd, the rest of the options would be wrong
Just before the year ended, a company offered to buy 4,120 units for $14.95 each. X Company had the capacity to produce the additional 4,120 units, but because the special order product was slightly different than the regular product, direct material costs were expected to increase to $2.40 per unit, and some special equipment would have to be rented for a total of $19,000.
Sales $1,225,500
Cost of goods sold 521,805
Gross margin $703,695
Selling and administrative costs 153,510
Profit $550,185
Fixed cost of goods sold for the year was $130,935, and fixed selling and administrative costs were $72,885. The special order product has some unique features that will require additional material costs of $0.90 per unit and the rental of special equipment for $3,000. Assume the following fact: regular variable selling and administrative costs include sales commissions equal to 4% of sales, but there will be no sales commissions on the special order. This will cause the special order profit to increase by:__________
Answer:
4%
Explanation:
Profit on special order = 7847.7 or 7848 Selling price 11 Variable cost special material 0.72 Cost of goods sold 6.69 Selling and administrative cost 1.02 Total variable cost per unit Particulars Per Unit 64500 Units Sales 19 1225500 Less: Variable cost Cost of Goods Sold (521805-130935) 6.06 390870 Sales commission (Sales*4%) 0
Identify a product you use every day. Assume you are the marketer of the product and want to convey the ways your product differs from competing products in the marketplace. Create a differentiation strategy to promote your product and create a competitive advantage
Answer:
Being a marketer for a product like Nike shoe, here, Nike shoe is different from other shoes as this shoe has unique brand value include swoosh logo, design of the shoe that could be customized, highly comfortable for various.
Ghost, Inc., has no debt outstanding and a total market value of $240,000. Earnings before interest and taxes, EBIT, are projected to be $32,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 15% higher. If there is a recession, then EBIT will be 30% lower. The company is considering a $80,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 15,000 shares outstanding. Ignore taxes for this problem.
a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued.
a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession.
b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization.
b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession.
a-1 Recession EPS $0.97
Normal EPS $1.39
Expansion EPS Z $1.59
a-2 Recession percentage
change in EPS -30.0
Expansion percentage
change in EPS 15.0
b-1 Recession EPS $1.09
Normal EPS 15.00
Expansion EPS
b-2 Recession percentage
change in EPSE -36.36
Expansion percentage
change in EPS 18.18
Answer:
a-1. We have:
Recession EPS = $1.49
Normal EPS = $2.13
Expansion EPS = $2.45
a-2. We have:
Recession percentage change in EPS = -30.00%
Expansion percentage change in EPS = 15.00%
b-1. We have:
Recession EPS = $1.12
Normal EPS = $1.76
Expansion EPS = $2.08
b-2. We have:
Recession percentage change in EPS = -36.36%
Expansion percentage change in EPS = 18.18%
Explanation:
Note: See the attached excel file for the calculations of the EPS and the percentage changes in EPS.
From the attached excel file, we have:
a-1. Calculate earnings per share (EPS) under each of the three economic scenarios before any debt is issued.
Recession EPS = $1.49
Normal EPS = $2.13
Expansion EPS = $2.45
a-2. Calculate the percentage changes in EPS when the economy expands or enters a recession.
Recession percentage change in EPS = -30.00%
Expansion percentage change in EPS = 15.00%
b-1. Calculate earnings per share (EPS) under each of the three economic scenarios assuming the company goes through with recapitalization.
Recession EPS = $1.12
Normal EPS = $1.76
Expansion EPS = $2.08
b-2. Given the recapitalization, calculate the percentage changes in EPS when the economy expands or enters a recession.
Recession percentage change in EPS = -36.36%
Expansion percentage change in EPS = 18.18%
On January 1, 2018, ABC purchased a commercial truck for $48,000 and uses the straight-line depreciation method. The truck has a useful life of eight years and an estimated residual value of $8,000. Assume the truck was totaled in an accident on December 31, 2019. What amount of gain or loss should ABC record on December 31, 2019 (If a loss, put a minus number in front)
Answer:
$38,000 Loss
Explanation:
Calculation to determine What amount of gain or loss should ABC record on December 31, 2019
First step is to calculate the depreciation per year
Depreciation per year =($48,000 − $8,000)/8 years
Depreciation per year= $5,000
Now let determine calculation the book value After two years,
Book value= [$48,000 − ($5,000 × 2 years)]
Book value=$48,000-$10,000
Book value= $38,000 Loss
Therefore the amount of loss that ABC should record on December 31, 2019 is $38,000
What do Media Salespeople do?
A. They sell space at sport events.
B. They sell advertising space to different companies.
C. They sell-media related products online.
D. They sell websites to media companies.
Answer:
correct answer is B-they sell advertisement space to different companies
Explanation:
is Company uses an ABC system. Which of the following statements is/are correct with respect to ABC? I. All cost allocation bases used in ABC systems are cost drivers. II. ABC systems are useful in manufacturing, but not in merchandising or service industries. III. ABC systems can eliminate cost distortions because ABC develops cost drivers that have a cause-and-effect relationship with the activities performed.
Answer:
I. All cost allocation bases used in ABC systems are cost drivers.
III. ABC systems can eliminate cost distortions because ABC develops cost drivers that have a cause-and-effect relationship with the activities performed.
Explanation:
I. is TRUE since the basis of ABC costing is determining, quantifying, and using cost drivers to allocate overhead costs.
III, is TRUE since the advantage of ABC costing is allocating costs based on cause and effect relationships.
II. ABC systems are useful in manufacturing, but not in merchandising or service industries. ⇒ FALSE
ABC costing can also be used for merchandising and service industries, although, it is mostly used in manufacturing businesses.Satka Fishing Expeditions, Inc., recorded the following transactions in July
1. Provided an ocean fishing expedition for a credit customer, payment is due August 10
2. Paid Marine Service Center for repairs to boats performed in June. (In June, Satka Fishing Expeditions, Inc., had received and properly recorded the invoice for these repairs.)
3. Collected the full amount due from a credit customer for a fishing expedition provided in June.
4. Recelved a bill from Baldy's Bait Shop for bait purchased and used in July. Payment is due August 3
5. Purchased a new fishing boat on July 28, paying part cash and issuing a note payable for the balance. The new boat is first scheduled for use on August 5
6. Declared and paid a cash dividend on July 31
Indicate the effects that each of these transactions will have upon the following six total amounts in the company's financial statements for the month of July.
Choose I for increase, D for decrease, and NE for no effect in the column headings below to show the effects of the above transactions.
Answer:
Satka Fishing Expeditions, Inc.
Indication of the effects that each of these transactions will have upon the following six total amounts in the company's financial statements for the month of July:
Transaction Income Statement Balance Sheet
Revenue - Expenses = Net Income Assets = Liabilities + Equity
1. I NE I I I
Accounts Receivable and Sales Revenue
2. NE NE NE D D NE
Accounts Payable and Cash
3. NE NE NE NE (I and D) NE NE
Cash and Accounts Receivable
4. NE I D NE I D
Supplies Expenses and Accounts Payable
5. NE NE NE I/D I NE
Boat Purchased, Cash and Note Payable
6. NE NE D NE NE D
Retained Earnings and Cash
Explanation:
a) Data and Transaction Analysis:
1. Accounts Receivable and Sales Revenue
2. Accounts Payable and Cash
3. Cash and Accounts Receivable
4. Supplies Expenses and Accounts Payable
5. Boat Purchased, Cash and Note Payable
6. Retained Earnings and Cash
b)
Key:
I = increase
D = decrease
NE = no effect
No. 3 will increase the assets (cash) by the amount and decrease the assets (accounts receivable) by the same amount. Overall, there will be no effect as the increase cancels the decrease equally.
Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 41,796 games next year (an increase of 9,396 games, or 29%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year
Question Completion:
Magic Realm, Inc., has developed a new fantasy board game. The company sold 32,400 games last year at a selling price of $67 per game. Fixed expenses associated with the game total $567,000 per year, and variable expenses are $47 per game. Production of the game is entrusted to a printing contractor. Variable expenses consist mostly of payments to this contractor. Required: 1-a. Prepare a contribution format income statement for the game last year. 1-b. Compute the degree of operating leverage. 2. Management is confident that the company can sell 41,796 games next year (an increase of 9,396 games, or 29%, over last year). Given this assumption: a. What is the expected percentage increase in net operating income for next year?
Answer:
Magic Realm, Inc.
1-a. Contribution-Format Income Statement
For the last year ended December 31
Sales revenue $2,170,000 (32,400 * $67)
Variable costs 1,522,800 (32,400 * $47)
Contribution $647,200 (32,400 * $20)
Fixed expenses 567,000
Net operating income $80,200
1-b. Degree of Operating Leverage = Contribution/Net operating income
= 8.07
The expected percentage increase in net operating income for next year
= 235.3%
Explanation:
a) Data and Calculations:
Last year's figures:
Sales = 32,400 games
Selling price per game = $67
Variable cost per game = $47
Fixed expenses = $567,000 per year
1-a. Contribution-Format Income Statement
For the last year ended December 31
Sales revenue $2,170,000 (32,400 * $67)
Variable costs 1,522,800 (32,400 * $47)
Contribution $647,200 (32,400 * $20)
Fixed expenses 567,000
Net operating income $80,200
1-b. Degree of Operating Leverage = Contribution/Net operating income
= $647,200/$80,200 = 8.07
2. Next year:
Sales = 41,796 games
Sales revenue = $2,800,332 (41,796 * $67)
Variable cost = 1,964,412 (41,796 * $47)
Contribution = $835,920
Fixed costs = 567,000
Net operating income $268,920
The expected percentage increase in net operating income for next year
Increase in net operating income = $188,720 ($268,920 - $80,200)
= $188,720/$80,200 * 100 = 235.3%