The following items were selected from among the transactions completed by Sherwood Co. during the current year:
Mar. 1 Purchased merchandise on account from Kirkwood Co., $225,000, terms n/30.
31 Issued a 30-day, 8% note for $225,000 to Kirkwood Co., on account.
Apr. 30 Paid Kirkwood Co. the amount owed on the note of March 31.
Jun. 1 Borrowed $600,000 from Triple Creek Bank, issuing a 45-day, 6% note.
Jul. 1 Purchased tools by issuing a $50,000, 60-day note to Poulin Co., which discounted the note at the rate of 6%.
16 Paid Triple Creek Bank the interest due on the note of June 1 and renewed the loan by issuing a new 30-day, 7% note for $600,000. (Journalize both the debit and credit to the notes payable account.)
Aug. 15 Paid Triple Creek Bank the amount due on the note of July 16.
30 Paid Poulin Co. the amount due on the note of July 1.
Dec. 1 Purchased equipment from Greenwood Co. for $280,000, paying $80,000 cash and issuing a series of ten 9% notes for $20,000 each, coming due at 30-day intervals.
22 Settled a product liability lawsuit with a customer for $40,000, payable in January. Accrued the loss in a litigation claims payable account.
31 Paid the amount due to Greenwood Co. on the first note in the series issued on December 1.
Required:
1. Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. Assume a 360-day year.
2. Journalize the adjusting entry for each of the following accrued expenses at the end of the current year (refer to the Chart of Accounts for exact wording of account titles):
a. Product warranty cost, $65,000.
b. Interest on the nine remaining notes owed to Greenwood Co. Assume a 360-day year.

Answers

Answer 1

Completing the recording of the transactions in Sherwood Co. is as follows:

Mar. 1 Debit Inventory $225,000

Credit Accounts Payable (Kirkwood Co.) $225,000

To record the purchase of goods on account, terms n/30.

Mar. 31  Debit Accounts Payable (Kirkwood Co.) $225,000

Credit Notes Payable (Kirkwood) $225,000

To record the issuance of a 30-day, 8% note on account.

Apr. 30 Debit Notes Payable (Kirkwood) $225,000

Debit Interest Expense $1,500

Credit Cash $226,500

To record payment on note payable with interest.

Jun. 1 Debit Cash $600,000

Credit 6% Notes Payable (Triple Creek Bank) $600,000

To record loan from bank on a 45-day, 6% note.

Jul. 1 Debit Equipment $50,000

Credit Notes Payable (Poulin Co.) $50,000

To record purchase of tools with 60-day note.

Jul. 16 Debit Interest Expense $4,500

Credit Cash $4,500

To record the payment of interest expense.

Debit 6% Notes Payable (Triple Creek Bank) $600,000

Credit 7% Notes Payable (Triple Creek Bank) $600,000

To record the renewal of notes payable with 7% notes.

Aug. 15 Debit 7% Notes Payable (Triple Creek Bank) $600,000

Debit Interest Expense $3,500

Credit Cash $603,500

To record payment on account with interest.

Aug. 30 Debit Notes Payable (Poulin Co.) $50,000

Credit Cash $50,000

To record payment on account.

Dec. 1 Debit Equipment $280,000

Credit 9% Notes Payable $200,000 (Greenwood Co.)

Credit Cash $80,000

To record the purchase of equipment with notes and cash.

Dec. 22 Debit Litigation Loss $40,000

Credit Litigation Claims Payable $40,000

To record the settlement of a product liability lawsuit.

Dec. 31 Debit Notes Payable (Greenwood Co.) $20,000

Debit Interest Expense $1,500

Credit Cash $21,500

To record first payment on account with interest.

Adjustments:

a. Debit Product Warranty Expense $65,000

Credit Warranty Liability $65,000

To record product warranty expense.

b. Debit Interest Expense $13,500

Credit Interest Payable $13,500

To accrue interest for the nine remaining notes.

Data Analysis:

Mar. 1 Inventory $225,000 Accounts Payable (Kirkwood Co.) $225,000 terms n/30.

Mar. 31  Accounts Payable (Kirkwood Co.) $225,000 Notes Payable (Kirkwood) $225,000 30-day, 8% note

Apr. 30 Notes Payable (Kirkwood) $225,000 Interest Expense $1,500 Cash $226,500

Jun. 1 Cash $600,000 6% Notes Payable (Triple Creek Bank) $600,000

a 45-day, 6% note.

Jul. 1 Equipment $50,000 Notes Payable (Poulin Co.) $50,000

60-day note to Poulin Co., which discounted the note at the rate of 6%.

Jul. 16 Interest Expense $4,500 Cash $4,500 7% Notes Payable (Triple Creek Bank) $600,000 6% Notes Payable (Triple Creek Bank) $600,000

Aug. 15 7% Notes Payable (Triple Creek Bank) $600,000 Interest Expense $3,500 Cash $603,500

Aug. 30 Notes Payable (Poulin Co.) $50,000 Cash $50,000

Dec. 1 Equipment $280,000 9% Notes Payable $200,000 (Greenwood Co.) Cash $80,000

Dec. 22 Litigation Loss $40,000 Litigation Claims Payable $40,000

Dec. 31 Notes Payable (Greenwood Co.) $20,000 Interest Expense $1,500 Cash $21,500

Adjustments:

a. Product Warranty Expense $65,000 Warranty Liability $65,000

b. Interest Expense $13,500 Interest Payable $13,500

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"Alicia"! shouted David to the company's HR specialist. I've got a problem,and you've got to solve it. I can't get people in this factory to work as a team. As if i don't have enough trouble with the company competitor's, the current Corvid pandemic and our past due accounts. Now i have to put up with running a zoo here at the company. You're responsible for seeing that the staffs gets along. I want a training proposal on my desk by Monday next week.

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The cause of the above problem is not due to lack of training, but to a weakened organizational culture that does not allow integration and cooperation in the work environment.

It is therefore necessary to conduct a needs assessment in the situation above, which helps managers to better understand the problem of the difficulty of teamwork.

An organizational needs assessment could be done according to these steps:

1. Assessment of needs and definition of objectives.

2. Identification of organizational resources and capabilities.

3. Identification of target audience and data sources.

4. Strategic planning and implementation.

5. Getting feedback.

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If a person is planning to write their resume and take pride in their strengths, it's advisable to write a clear strong statement of your accomplishments and a statement of their potential, talents, and current responsibilities.

A resume simply means a brief account of the personal, professional qualifications, educational qualifications, experience etc of a person.

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Answers

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Jessica purchased a home on January 1, 2021, for $500,000 by making a down payment of $200,000 and financing the remaining $300,000 with a loan, secured by the residence, at 6 percent. During 2021 and 2022, Jessica made interest-only payments on this loan of $18,000 (each year). On July 1, 2021, when her home was worth $500,000, Jessica borrowed an additional $125,000 secured by the home at an interest rate of 8 percent. During 2021, she made interest-only payments on the second loan in the amount of $5,000. During 2022, she made interest-only payments on the second loan in the amount of $10,000. What is the maximum amount of the $28,000 interest expense Jessica paid during 2022 that she may 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

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Since Jessica used the proceeds of the second loan to improve her acquired home, the two debts are counted as acquisition indebtedness, and she can deduct $28,000 as an itemized deduction for mortgage interest expense.

Data and Calculations:

Home Purchase on January 1, 2021 = $500,000

Down payment made  $200,000

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Interest-only payment in 2022 = $10,000 ($125,000 x 8%)

Total interest-only payment in 2022 = $28,000 ($18,000 +$10,000)

Question Options:

a. $0

b. $10,000

c. $26,353

d. $26,000

e. $28,000

Thus, the maximum amount that Jessica may deduct as an itemized deduction is $28,000.

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Economic classes refer to the position of people on the earning ladder. For Sarjit and Rhonda, the theory that classifies them into the same economic class is that of;

Karl Marx

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The greatest challenge that Amazon faces from Walmart and Kroger, which offer curbside pickup of online groceries, is C. figuring out where to set up curbside pickups at Amazon distribution centers.

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Considering the research studies, Najah’s data showed that most managers focus on "consideration and inspiration."

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Hence, in this case, it is concluded that the correct answer is option B. "consideration and inspiration."

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1. Management Should formulate business that are favorable to the interest of the society. By doing this its also promoting its own business interest. Cleary a business organization cannot operate within the a sick society.

2. •Products are adulterated. •Political bribery •Illegal gifts • and other illegal incentives.

3. Consumers are generally weak to fight such as negative business activities, particularly among the poor countries. Consumers in the rich countries are more vigilance against business abuses.

4. Management must consider the impact of every business action upon society. It has to consider whether the action is likely to promote the public good, to advance the basic beliefs of our society, to contribute to its stability, strength and harmony

5. •Should you have a partner? •What type of business organization is the best for you? •Laws that may affect you? •How can your professional help you?

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D.
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Answer:

D. They oversee some waterways.

Lorraine is a professional food critic. After each visit, she evaluates a restaurant on their service, food quality, and atmosphere. What type of quality assessment is this

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The type of quality assessment that food critic Lorraine will make on each visit, assessment of the service, food quality and ambience of a restaurant will be based on their experience.

Quality assessment is carried out by collecting data to identify compliance with pre-established standards, such as those defined by Lorraine, regarding service, food and environment.

Therefore, through her on-site experience, she will be able to assess the quality according to her criteria and then share it with the public or in media such as newspapers, magazines and blogs.

The experience of the food critic will influence the public to decide if they want to go to the place and also to the restaurant to improve the quality of their service and products.

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Interviews often takes different forms. Lexie's current interview technique limits her effectiveness as an interviewer as the wide latitude of these nondirective interviews can result in low reliability and often poor validity.

Interviewing is simply the process whereby individuals do exchange information. The individuals is often interested with a job opening, a promotion, a special assignment etc.

Interviewing in some of business setting do takes place in an atmosphere that is filled with a sense of urgency as the time allocated to the interview is  little.

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Colbert Inc. acquired 100% of Stewart Manufacturing on January 2, 2020. During 2020, Colbert sold Stewart $640,000 of goods, which had cost $450,000. Stewart still owned 18% of the goods at the end of the year. In 2021, Colbert sold goods with a cost of $820,000 to Stewart for $1,000,000, and Stewart still owned 15% of the goods at year-end. For 2021, the cost of goods sold totaled $5,800,000 for Colbert, and $1,300,000 for Stewart. What was consolidated cost of goods sold for 2021

Answers

Based on the information given the consolidated cost of goods sold for 2021 is $6,092,800.

First step is to calculate 2021 Intra-Entity Gross Profit

2021 Intra-Entity Gross Profit= ($1,000,000 − $820,000) ×15%

2021 Intra-Entity Gross Profit= $180,000 ×  15%

2021 Intra-Entity Gross Profit= $27,000

Second step is to calculate 2020 Intra-Entity Gross Profit

2020 Intra-Entity Gross Profit= ($640,000 − $450,000) ×18%

2020 Intra-Entity Gross Profit=$190,000 ×18%

2020 Intra-Entity Gross Profit = $34,200

Third step is to calculate consolidated cost of goods sold for 2021 using this formula

Consolidated COGS = Parent's COGS  + Subsidiary's COGS− Total COGS in Intra-Entity Transfer − Intra-Entity Gross Profit Deferred from 2020 + Intra-Entity Gross Profit Deferred from 2021

Let plug in the formula

Consolidated COGS =$5,800,000+ $1,300,000- $1,000,000-$34,200 +$27,000

Consolidated COGS = $6,092,800

Inconclusion the consolidated cost of goods sold for 2021 is $6,092,800.

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