Answer:
Date Account Title Debit Credit
Aug-06 Inventory $5,720
(52 * $110)
Accounts Payable $5,720
Aug-07 Inventory $310
Cash $310
Aug-10 Accounts Payable $770
(7 * $110 )
Inventory $770
Aug-14 Accounts Payable $4,950
Inventory $99
Cash $4,851
Aug-23 Accounts Receivable $4,160
( 32*$130)
Sales revenue $4,160
Aug-23 Cost of goods sold $3,670
Inventory $ 3,670
When a company is in financial difficulty and cannot fully pay all of its creditors, the first lenders to be paid are the ________. A) stockholders
Answer:
Senior debtholder
Explanation:
In a case when the company is not able to pay the pull amount to its creditors so the first lender is senior debt holder as it became the priority to the company i.e. first the amount is paid to them and the amount i.e. remaining would be paid to others as the senior debtholders are secured as if we compared with the other type of debtholders in terms of collateralized of assets
Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of $3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits
Answer and Explanation:
Answer and explanation attached
Below are cash transactions for a company, which provides consulting services related to mining of precious metals.
a. Cash used for purchase of office supplies, $1,600.
b. Cash provided from consulting to customers, $42,600.
c. Cash used for purchase of mining equipment, $67,000.
d. Cash provided from long-term borrowing, $54,000.
e. Cash used for payment of employee salaries, $23,400.
f. Cash used for payment of office rent, $11,400.
g. Cash provided from sale of equipment purchased in c. above, $21,900.
h. Cash used to repay a portion of the long-term borrowing in d. above, $37,000.
i. Cash used to pay office utilities, $3,700.
j. Purchase of company vehicle, paying $9,400 cash.
Required:
Calculate cash flows from operating activities.
Answer:
Cash Flow Statement
Cash Flow from Operating Activities
Cash received from customers $42,600
Cash payment to salaries -$23,400
Cash used for purchase of office supplies -$1,600
Office rent paid -$11,400
Payment for office utilities -$3,700
Net Cash Inflow from Operating activities $2,500
A competitive firm maximizes profit by choosing a level of output where the world price is equal to the firm's
Answer: c. Marginal Cost
Explanation:
A Competitive firm operates in a market where they are price takers. This means that the price they charge is equal to both their average revenue and their Marginal Revenue.
P = MR = AR
Companies maximise profit at a point where Marginal Revenue equals Marginal Cost because at this point, resources are being fully utilized.
If the Competitive firm's Price is the same as its Marginal Revenue this means that to maximise profits, the firm should choose an output level where the price is equal to the marginal cost.
The following is a list of accounts and adjusted amounts for Rollcom, Inc., for the fiscal year ended September 30, 2018. The accounts have normal debit or credit balances.
Accounts Payable $39,000
Accounts Receivable 66,400
Accumulated Depreciation 21,400
Cash 80,200
Common Stock 94,700
Equipment 90,600
Income Tax Expense 10,490
Notes Payable (long-term) 1,490
Office Expenses 6,290
Rent Expense 164,100
Retained Earnings 99,790
Salaries and Wages Expense 128,600
Sales Revenue 325,400
Supplies 35,100
Required:
Prepare an adjusted trial balance at September 30, 2018.
Answer:
DEBIT SIDE $581,780
CREDIT SIDE $581,780
Explanation:
Preparation of adjusted Trial balance
Trial balance at September 30, 2018
DEBIT SIDE
Cash 80,200
Account receivable 66,400
Supplies 35,100
Equipment 90,600
Salaries and wages expense 128,600
Rent expense 164,100
Office expense 6,290
Income tax expense 10,490
TOTAL $581,780
CREDIT SIDE
Accumulated depreciation 21,400
Account payable 39,000
Notes payable 1,490
Common Stock 94,700
Retained earnings 99,790
Sales revenue 325,400
TOTAL $581,780
Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and distribution industry. ($ in millions, except per share amounts.)
Balance Sheets
Metropolitan Republic
Assets $ 179.3 $ 37.1
Cash
Accounts receivable (net) 422.7 325.0
Short-term investments — 4.7
Inventories 466.4 635.2
Prepaid expenses and other current assets134.6 476.7
Current assets $ 1,203.0 1,478.7
Property, plant, and equipment (net) 2,608.2 2,064.6
Intangibles and other assets 210.3 464.7
Total assets $ 4,021.5 $4,008.0
Liabilities and Shareholders’ Equity
Accounts payable $ 467.9 691.2
Short-term notes 227.1 557.4
Accruals and other current liabilities 585.2 538.5
Current liabilities $ 1,280.2 1,787.1
Long-term debt 535.6 542.3
Deferred tax liability 384.6 610.7
Other long-term liabilities 104.0 95.1
Total liabilities $ 2,304.4 3,035.2
Common stock (par and additional paid-in capital)
144.9 335.0
Retained earnings 2,476.9 1,601.9
Less: treasury stock (904.7) (964.1)
Total liabilities and shareholders’ equity $
4,021.5 4,008.0
Income Statements
Net sales 5,698.0 7,768.2
Cost of goods sold (2,909.0) (4,481.7)
Gross profit $ 2,789.0 3,286.5
Operating expenses (1,743.7 ) (2,539.2)
Interest expense (56.8) (46.6)
Income before taxes $ 988.5 700.7
Tax expense (394.7) (276.1)
Net income 593.8 424.6
Net income per share $ 2.40 6.50
Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate.
Required:
Calculate the rate of return on assets for the following companies
Calculate the return on assets for both companies.
Calculate the Rate of return on shareholders’ equity for the following companies
Calculate the equity multiplier for the following companies.
Calculate the acid-test ratio and current ratio for the following companies.
Calculate the receivables and inventory turnover ratios the following companies.
Calculate the times interest earned ratio for the following companies.
Answer and Explanation:
We refer to balance sheet figures for each company stated above to retrieve figures for our calculations and use the following formulas for calculations:
For return on assets= net imcome/total assets
For rate of return on shareholders equity =net income/equity
For equity multiplier= total assets/ total equity
For acid-test ratio=liquid assets/current liabilities
For current ratio =current assets/current liabilities
For receivables = credit sales /acct receivables and inventory turnover ratios=cost of goods/inventory
For times interest earned ratio=ebit/interest expenses
Julie Brown is a single woman in her late 20s. She is renting an apartment in the fashionable part of town for $1,000 a month. After much thought, she's seriously considering buying a condominium for $175,000. She intends to put 20 percent down and expects that closing costs will amount to another $5,000; a commercial bank has agreed to lend her money at the fixed rate of 6 percent on a 15-year mortgage. Julie would have to pay an annual condominium owner's insurance premium of $560 and property taxes of $1,000 a year (she's now paying renter's insurance of $550 per year). In addition, she estimates that annual maintenance expenses will be about 0.5 percent of the price of the condo (which includes a $30 monthly fee to the property owners' association). Julie's income puts her in the 25 percent tax bracket (she itemizes her deductions on her tax returns), and she earns an after-tax rate of return on her investments of around 4 percent.
Required:
a. Evaluate and compare Julie’s alternatives of remaining in the apartment or purchasing the condo.
b. Working with a friend who is a realtor, Julie has learned that condos like the one that she’s thinking of buying are appreciating in value at the rate of 3.5 percent a year and are expected to continue doing so. Would such information affect the rent-or-buy decision made in a?
c. Discuss any other factors that should be considered when making a rent-or-buy decision.
d. Which alternative would you recommend for Julie in light of your analysis?
Answer:
a. Julie should continue live in her own apartment.
b. She should then purchase the condo
c. Home maintenance cost and tax benefit.
d. She should live in her own apartment and rent the condo after purchase.
Explanation:
Buying cost of condo $175,000
Loan interest amount $8,400 [ $175,000 * 80% * 6%]
Insurance premium $10 [560 - 550]
Property taxes $1,000
Maintenance expense $875 [$175,000 * 0.5%]
Total additional cost per year $10,280
If Julie plans to buy the condo she will have to incur additional cost of $10,280 per annum.
b. If the price of condo increases by 3.5% per year then she should consider buying the condo.
( Help please suck on this question !! )
Which of the following challenges will banks continue to tackle over the next few years?
A. Customer engagement
B. Increasing competitive advantage
C. Increasing service offerings
D. Lowering interest rates
Answer:A
Explanation:
Because as long as a bank does have customers over the next few years then they have to tackle customers engagement.
On January 20, 2017, Tamira Nelson, the accountant for Picton Enterprises, is feeling pressure to complete the annual financial statements. The company president has said he needs up-to-date financial statements to share with the bank on January 21 at a dinner meeting that has been called to discuss Picton's obtaining loan financing for a special building project. Tamira knows that she will not be able to gather all the needed information in the next 24 hours to prepare the entire set of adjusting entries. Those entries must be posted before the financial statements accurately portray the company's performance and financial position for the fiscal period ended December 31, 2016. Tamira ultimately decides to estimate several expense accruals at the last minute. When deciding on estimates for the expenses, she uses low estimates because she does not want to make the financial statements look worse than they are. Tamira finishes the financial statements before the deadline and gives them to the president without mentioning that several account balances are estimates that she provided.
Required:
1. Identify several courses of action that Tamira could have taken instead of the one she took.
2. If you were in Tamira's situation, what would you have done?
Answer:
this case tells us about some sort of pressures that accounts feel when financial statements are needed urgently
Explanation:
1) As for using low estimates, this step was wrong on her part. she should have been upfront in her estimates. for the items that she could not estimate there should have been an indication that such items were still under review, instead of doing what she did to give the financial estimate a good look. Using guesses or deliberately using low estimates was a bad idea, GAAP would never condone that.
She should have met with the president and let him know that finalization of the financial statements would not possible within the time frame that he has given. She could have also explain that such delays are normal and she would have given estimates of when the draft internal copy would be made available to him. such steps she took could have resulted in serious consequences for the company
2) I would not inflate or deflate the figures on purpose to make financial statements look better. If it is time to present the draft and final year-end financial statements I will have to tell the truth on the numbers and estimations used and also the reasons for that. i would have explained the constraints that i was facing. if i was still being pressurized by the president, i would have no choice than to call it quits instead of going against the ethics of my profession, since there are both ethical and legal implications to not giving inaccurate financial statements.
Eulis Co. has identified an investment project with the following cash flows. YearCash Flow 1 $1,130 2 1,000 3 1,510 4 1,870 If the discount rate is 9 percent, what is the present value of these cash flows
Answer:
Total present value= $4,369.14
Explanation:
Giving the following information:
Year Cash Flow
1 $1,130
2 $1,000
3 $1,510
4 $1,870
Discount rate= 9%
To calculate the present value, we need to use the following formula on each cash flow:
PV= Cf/(1+i)^n
PV1= 1,130/1.09= 1,036.70
PV2= 1,000/1.09^2= 841.68
PV3= 1,510/1.09^3= 1,166
PV4= 1,870/1.09^4= 1,324.76
Total present value= $4,369.14
Klean Fiber Company is the creator of Y-Go, a technology that weaves silver into its fabrics to kill bacteria and odor on clothing while managing heat. Y-Go has become very popular in undergarments for sports activities. Operating at capacity, the company can produce 1,031,000 Y-Go undergarments a year. The per unit and the total costs for an individual garment when the company operates at full capacity are as follows.
Per Undergarment Total
Direct materials $2.04 $2,103,240
Direct labor 0.40 412,400
Variable manufacturing overhead 1.04 1,072,240
Fixed manufacturing overhead 1.44 1,484,640
Variable selling expenses 0.34 350,540
Totals $5.26 $5,423,060
The U.S. Army has approached Klean Fiber and expressed an interest in purchasing 250,500 Y-Go undergarments for soldiers in extremely warm climates. The Army would pay the unit cost for direct materials, direct labor, and variable manufacturing overhead costs. In addition, the Army has agreed to pay an additional $1.02 per undergarment to cover all other costs and provide a profit. Presently, Klean Fiber is operating at 70% capacity and does not have any other potential buyers for Y-Go. If Klean Fiber accepts the Army's offer, it will not incur any variable selling expenses related to this order.
Required:
Prepare an incremental analysis for the Klean Fiber.
Answer:
Klean Fiber Company
Incremental Analysis for the Special order of 250,500 units of Y-Go undergarments:
Direct materials $2.04 $511,020
Direct labor 0.40 100,200
Variable manufacturing overhead 1.04 260,520
Fixed manufacturing overhead 1.02 255,510
Total costs $4.50 $1,127,250
Fixed manufacturing overhead 1.02 255,510
Incremental costs $3.48 $871,740
Explanation:
a) Data:
Full Capacity = 1,031,000
The per unit and the total costs at full capacity for Y-Go:
Per Undergarment Total
Direct materials $2.04 $2,103,240
Direct labor 0.40 412,400
Variable manufacturing overhead 1.04 1,072,240
Fixed manufacturing overhead 1.44 1,484,640
Variable selling expenses 0.34 350,540
Totals $5.26 $5,423,060
b: In her decision to accept or reject the special order for 250,500 units of Y-Go undergarments by the U.S. Army, the Klean Fiber Company will only consider the relevant incremental unit cost of $3.48 and not the whole unit cost of $5.26. The $3.48 cost excludes the fixed overheads or the selling and administrative expenses.
A medical supplies salesperson walks into a hospital administrator's office. The administrator invites the salesperson to sit in a chair directly across the desk from her. Into which space zone is the salesperson being placed
Answer:
Social.
Explanation:
Here the said person is been directed by the administrator to the social wing/angle within the hospital building amongst where the said person can sit and wait to be attended to by a physician, doctor or psychologist.
In the maximum amount as they're seen to be always at the desk ahead of hospitals,
administration isn't just totally their job ad they also bring their education and skill with medical terminology, customer service, and healthcare services to the table furthermore.
This job type can perform a spread of functions and add various roles. Their job title may be anything from a medical office assistant to a patient coordinator or admissions coordinator
Eduardo has been reading about the use of drone technology in recent military conflicts and is not quite sure what to think. On the one hand, the use of drones means that military missions can be executed without putting American lives at risk. On the other hand, this very fact means that our political leaders might be quicker to resort to military solutions when other solutions might be available. Eduardo is also concerned about other effects of fully mechanized battle operations. For instance, unlike a human soldier, a drone can neither hear nor sympathize with a mother pleading for the life of her innocent child. Eduardo has decided to research the topic of military drones in more detail and write an essay in which he decides whether the use of drone technology is a positive or negative development in the history of American military action. Which type of argument will Eduardo be making?
a. Argument of fact
b. Argument of definition
c. Argument of evaluation
d. Policy argument
Answer:
c. Argument of evaluation
Explanation:
Eduardo will be making a decision on "whether the use of drone technology is a positive or negative development in the history of American military action." This is a judgement call. And he will be determining whether or not drone usage is good or bad. So this is purely an argument of evaluation. The argument is not of fact or definition or a policy argument, but one in which he will establish his opinion on the issue of the use of drone technology in the military.
TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from Taiwan and assemb them domestically. Suppose that in the United States, a TV set sells for $500 and that 80% of the TV set's value comes from the value of the imported components. The United States imposes a 30% tariff on TV sets and a 10% tariff on the TV set's components. Assume that costs of producing components are the same in the United States a Taiwan. Based on the information provided, the effective rate of protection that TeleGlobal receives from the tariff is:__________.
a. -17.5%
b. 70.0%
c. 110.0%
d. 24.4%
e. 47.5%
Answer:
The right choice is Option c (110.0%).
Explanation:
⇒ [tex]Effective \ rate \ of \ protection = tariff \ rate \ on \ imported \ finished \ good + price \ of \ Component\times \frac{(tariff \ on \ imported \ good- tariff \ on \ imported \ component)}{(Price \ of \ finished \ good - Price \ of \ components)}[/tex]
On estimating the values, we get
⇒ = [tex]30 \ percent + (80 \ percent\times 500)\times \frac{(30 \ percent - 10 \ percent)}{500-80 \ percent\times 500}[/tex]
⇒ = [tex]110 \ percent[/tex]
Note: percent = %
Amanda is a twenty-four year old student. For two years Amanda has been going to gym and using weight equipment, stationary bicycles, and step machines to improve muscle tone. One spring afternoon Amanda was using a weight machines in the usual way (and the way she was showed how to use it), when the machine malfunctioned causing her serious injury. The company that made the machine, Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem.
If Amanda files a lawsuit against Musclematic, the company might want to seriously consider:
a. How this litigation will affect its goodwill
b. Whether or not a settlement with Amanda is a viable option
c. Whether this suit will adversely affect other business relationships
d. The costs associated with litigating this claim
e. All of the other choices
Answer:
e. All of the other choices
Explanation:
Product liability is the responsibility that a company bears for injury caused by its products as a result of a defect.
In this instance Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem.
So for any injury users have they will be liable.
If Amanda files a lawsuit against Musclematic they will have to consider:
- How this litigation will affect its goodwill
- Whether or not a settlement with Amanda is a viable option
- Whether this suit will adversely affect other business relationships
- The costs associated with litigating this claim
This is because they will most likely lose the case.
Which best describes why investing can be such a challenge?
All investments involve major risks.
There is never a sure way to predict the likelihood of success.
There are no guaranteed investments.
The market is totally unpredictable.
Answer:
C. There are no guaranteed investments.
Explanation:
There are different kinds of investment. The option that best describes why investing can be such a challenge is that there are no guaranteed investments.
What are the factors that influence risk for an investment?There are two factors that is known to have huge influence on risk for an investment. They are;
The duration of the investment. The history of the investment.Investment can be a short- or long-term basis with no guarantee for profit or loss due to factors influencing it.
learn more about investments from
https://brainly.com/question/25015549
Pitt Enterprises manufactures jeans. All materials are introduced at the beginning of the manufacturing process in the Cutting Department. Conversion costs are incurred uniformly throughout the manufacturing process. As the cutting of material is completed, the pieces are immediately transferred to the Sewing Department. Information for the Cutting Department for the month of May follows.
Work in Process, May 1 (54,000 units, 100% complete for direct materials, 35% complete with respect to conversion costs; includes $78,500 of direct material cost; $42,050 of conversion costs).
Units started in May 233,000
Units completed in May 208,000
Work in Process, May 31 (79,000 units, 100% complete for direct materials; 15% complete for conversion costs).
Costs incurred in May
Direct materials $391,440
Conversion costs $401,900
Required:
If Pitt Enterprises uses the FIFO method of process costing, compute the cost per equivalent unit for direct materials and conversion costs respectively for May.
Answer:
cost per equivalent unit : materials = $1.37 and conversion costs = $1.78.
Explanation:
Please note that we have to use FIFO costing method
Calculation of the Equivalent Units of Production with respect to Materials and Conversion Costs
1. Raw Materials
To finish Beginning Work In Process (54,000 × 0%) 0
Started and Completed ((233,000 - 54,000) × 100%) 179,000
Ending Work In Process (79,000 × 100%) 79,000
Equivalent Units of Production with respect to Materials 258,000
1. Conversion Cost
To finish Beginning Work In Process (54,000 × 65%) 35,100
Started and Completed ((233,000 - 54,000) × 100%) 179,000
Ending Work In Process (79,000 × 15%) 11,850
Equivalent Units of Production with respect to Conversion 225,950
Calculation of the cost per equivalent unit for direct materials and conversion costs.
Unit Cost = Current Period Costs ÷ Equivalent units of production
1. Raw Materials
Unit Cost = $391,440 ÷ 258,000
= $1.37
2. Conversion Cost
Unit Cost = $401,900 ÷ 225,950
= $1.78
Wholemark is an Internet order business that sells one popular New Year greeting card once a year. The cost of the paper on which the card is printed is $0.40 per card, and the cost of printing is $0.10 per card. The company receives $3.75 per card sold. Since the cards have the current year printed on them, unsold cards have no salvage value. Their customers are from the four areas: Los Angeles, Santa Monica, Hollywood, and Pasadena. Based on past data, the number of customers from each of the four regions is normally distributed with mean 2,300 and standard deviation 200. (Assume these four are independent.)
What is the optimal production quantity for the card?
Answer:
9644
Explanation:
cost of paper on which a card is printed = $0.40 per card
cost of printing = $0.10 per card
profit made per card sold = $3.75
number of areas where customers are located (n)= 4
mean of customers from each region = 2300
standard deviation for each region = 200
note : each region is independent
The optimal production quantity for the card can be calculated going through these steps
first we determine
the cost of card = $0.10 + $0.40 = $0.50
selling value = $3.75
salvage value = 0
next we calculate for the z value
= ( selling value - cost of card) / ( selling price - salvage value )
= ( 3.75 - 0.50 ) / 3.75 = 0.8667
Z( 0.8667 ) = 1.110926 ( using excel formula : NORMSINV ( 0.8667 )
next we calculate
u = n * mean demand
= 4 * 2300 = 9200
б = [tex]200\sqrt{n}[/tex] = 200 * 2
= 400
Hence optimal production quantity for the card
= u + Z (0.8667 ) * б
= 9200 + 1.110926 * 400
= 9644.3704
≈ 9644
Gnomes R Us just paid a dividend of $1.90 per share. The company has a dividend payout ratio of 25 percent. If the PE ratio is 16.9 times, what is the stock price
Answer:
Stock price=$128.44
Explanation:
Calculation for stock price
First step is to calculate for dividend payout ratio using this formula
Dividend payout ratio=Dividend payout/Earnings
Let plug in the formula
Earnings=($1.90/0.25)
Earnings=$7.6
Now let calculate for PE ratio using this formula
PE ratio=Stock price/EPS
Let plug in the formula
Stock price=$7.6*16.9times
Stock price=$128.44
Therefore Stock price will be $128.44
The accounting for bond premiums is not the mirror image of that for the bond discounts. Pacific Independent School District issued $100 million of general obligation bonds to finance the construction of new schools. The bonds were issued at a premium of $0.6 million.
1. Prepare the capital projects fund journal entries to record the issue of the bonds and the transfer of the premium to an appropriate fund.
2. Suppose, instead, that the bonds were issued at a discount of $0.6 million but that the project will still cost $100 million. Prepare the appropriate entries.
a. Contrast the entries in this part with those in part 1.
b. Indicate the options available to the school district, and state how they would affect the entries required of the district.
c. Suppose that the government chose to finance the balance of the project with general revenues. Prepare the appropriate capital projects fund entry.
Answer:
1. Dr Cash$100,600,000
Cr Bond proceeds $100,000,000
Cr Bond proceeds $600,000
Dr Nonreciprocal transfer of bond premium to debt service fund $600,000
Cr Due to debt service fund/Cash $600,000
2. Dr Cash $994,000,000
Dr Other financing sources-bond proceeds(Bond discount)$600,000
Cr Other financing sources-bond proceeds(Face value)$100,000,000
2a. In a situation where the bonds are been issued at a discount the debt services will have unavailable resources that they would send to the capital project fund.
2b. Both the Bonds premiums and that of the discount will be an issue reason been that the uncertainly of the amount of cash or money that are in excess will have to be disposed off as well as the ways of compensating for the cash deficiency
2c. Dr Due from the general fund $600,000
Cr Other financing use- nonreciprocal Transfer from the general fund $600,000
Explanation:
1.Preparation of the capital projects fund journal entries
Dr Cash$100,600,000
($100,000,000+$600,000)
Cr Bond proceeds (Face value amount)$100,000,000
Cr Bond proceeds (Bond premium amount)$600,000
(To record issuance of bonds sold at a premium)
Dr Nonreciprocal transfer of bond premium to debt service fund $600,000
Cr Due to debt service fund/Cash $600,000
(To record the premium payable to the debt service fund)
2. Preparation of the Journal entries.
suppose the bonds were issued at a discount of $0.6 million in which the project will still cost $100 million.
Dr Cash $994,000,000
($100,000,000-$600,000)
Dr Other financing sources-bond proceeds(Bond discount)$600,000
Cr Other financing sources-bond proceeds(Face value)$100,000,000
(To record the issue of bonds at a discount)
2a. When Contrasting the Journal entries in this part with those in part 1 this means that in a situation where the bonds are been issued at discount the debt services will have unavailable resources that they would send to the capital project fund.
2b. The options that are available to the school district and how they would affect the entrees required of the district is that both Bonds premiums as well as that of the discount will be an issue reason been that the uncertainly of the amount of cash or money that are in excess will have to be disposed off as well as the the ways of compensating for the cash deficiency
2c. Preparation of the appropriate capital projects fund Jounal entry
Dr Due from the general fund$600,000
Cr Other financing use- nonreciprocal Transfer from the general fund $600,000
today ,I am happy I help my grandma
Crawford Corporation incurred the following transactions:1. Purchased raw materials on account $47,000.2. Raw Materials of $44,200 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $7,300 was classified as indirect materials.3. Factory labor costs incurred were $60,100, of which $51,000 pertained to factory wages payable and $9,100 pertained to employer payroll taxes payable.4. Time tickets indicated that $54,400 was direct labor and $5,700 was indirect labor.5. Manufacturing overhead costs incurred on account were $83,600.6. Depreciation on the company's office building was $8,600.7. Manufacturing overhead was applied at the rate of 160% of direct labor cost.8. Goods costing $94,800 were completed and transferred to finished goods9. Finished goods costing $81,800 to manufacture were sold on account for $110,300.Required:Journalize the above transactions.
Answer:
Crawford Corporation
General Ledger
1.
Raw Materials $47,000 (debit)
Account Payable $47,000 (credit)
2.
Work In Process : Direct Materials $36,900 (debit)
Work In Process : Indirect Materials $7,300 (debit)
Raw Materials $44,200 (credit)
3.
Work In Process $51,000 (debit)
Salaries Expenses $9,100 (debit)
Salaries Payable $60,100 (credit)
4.
Work In Process : Direct Labor $54,400 (debit)
Work In Process : Indirect Labor $5,700 (debit)
Salaries Expenses $9,100 (debit)
Salaries Payable $60,100 (credit)
5.
Overheads $83,600 (debit)
Accounts Payable $83,600 (credit)
6.
Depreciation Expense - Building $8,600 (debit)
Accumulated Depreciation - Buildings $8,600 (credit)
7.
Work In Process $87,040 (debit)
Overheads $87,040 (credit)
8.
Finished Goods $94,800 (debit)
Work In Process $94,800 (credit)
9.
Accounts Receivable $110,300 (debit)
Cost of Goods Sold $81,800 (debit)
Sales Revenue $110,300 (credit)
Finished Goods $81,800 (credit)
Explanation:
See the Journal entries for Crawford Corporation and their respective transaction number recorded above.
On January 1, 2021, Taco King leased retail space from Fogelman Properties. The 10-year finance lease requires quarterly variable lease payments equal to 3% of Taco King's sales revenue, with a quarterly sales minimum of $600,000. Payments at the beginning of each quarter are based on previous quarter sales. During the previous 5-year period, Taco King has generated quarterly sales of over $750,000. Fogelman's interest rate, known by Taco King, was 4%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Prepare the journal entries for Taco King at the beginning of the lease at January 1, 2021.
2. Prepare the journal entries for Taco King at April 1, 2021. First quarter sales were $760,000. Amortization is recorded quarterly.
Answer:
Jan 1st, 2021 entry:
Equipment 746,168 debit
Lease Liability 723,668 credit
Cash 22,500 credit
April 1st, 2021 entry:
Interest expense 7,537 debit
Lease Liability 15,263 debit
Cash 22,800 credit
Explanation:
We will assume a 750,000 sales revenue per quarter. As this was their historical and expected value:
750,000 x 3% = 22,500 per quarter
Now, we solve for the present value of the lease payment:
[tex]C \times \frac{1-(1+r)^{-time} }{rate}(1+r) = PV\\[/tex]
C 22,500
time 40 (10 years x 4 quarter per year)
rate 0.01 (4% annual / 4 quarters)
[tex]22500 \times \frac{1-(1+0.01)^{-40} }{0.01}(1+0.01) = PV\\[/tex]
PV $746,168.2419
we subtract the first payment of 22,500
lease liability reocrded in the enrty: 723.668
As lease sales were 760,000
lease payment: 760,000 x 3% = 22,800
less expected of 22,500 = 300 additional interest expense
interest expense: 723,668 x 0.01 = 7,237 + 300 = 7,537
amortization on lease liability: 22,800 -7,537 = 15,263
The following ledger accounts are used by the Heartland Race Track
Accounts Receivable
Prepaid Advertising
Prepaid Rent
Unearned Sales Revenue
Sales Revenue
Advertising Expense
Rent Expense
For each of the following transactions below, prepare the journal entry (if one is required) to record the initial transaction and then prepare the adjusting entry, if any, required on November 30, the end of the fiscal year.
A) On November 1, paid rent on the track facility for three months, $180,000.
B) On November 1, sold season tickets for admission to the racetrack. The racing season is year-round with 25 racing days each month. Season ticket sales totaled $1,152,000.
C) On November 1, borrowed $300,000 from First National Bank by issuing a 6% note payable due in three months.
D) On November 5, programs for 20 racing days in November, 25 racing days in December and 15 racing days in January were printed for $3,600.
E) The accountant for the concessions company reported that gross receipts for November were $168,000. 10% is due to Heartland and will be remitted by December 10.
Prepare the journal entry (if one ls required) to record the Initial transaction.
Prepaid Rent 150,000
Cash 150,000
Cash 960,000
Unearned Sales
Revenue 960,000
Cash 250,000
Notes Payable 250,000
Prepaid
Advertising 3,000
Cash 3,000
Answer:
Heartland Race Track
Journal Entries:
A. November 1:
Debit Prepaid Rent $180,000
Credit Cash Account $180,000
To record the payment of rent for three months.
B. November 1:
Debit Cash Account $1,152,000
Credit Unearned Sales Revenue $1,152,000
To record the sale of year-round season tickets.
C. November 1:
Debit Cash Account $300,000
Credit Notes Payable $300,000
To record the issue of 6% note payable for 3 months.
D. November 5:
Debit Prepaid Advertising $3,600
Credit Cash Account $3,600
To record the printing of programs for three months.
E. Debit Accounts Receivable (Concession) $16,800
Credit Sales Revenue $16,800
To record concessions fees.
November 30: Adjusting Entries:
A. Debit Rent Expense $60,000
Credit Prepaid Rent $60,000
To adjust for rent expense for the month.
B. Debit Unearned Sales Revenue $96,000
Credit Sales Revenue $96,000
To record the earned revenue for season tickets for the month.
C. Debit Interest Expense $1,500
Credit Interest Payable $1,500
To accrue interest for one month on note payable.
D. Debit Advertising Expense $1,200
Credit Prepaid Advertising $1,200
To record advertising expense for the month.
Explanation:
Heartland Race Track will find the use of the general and adjusting journals helpful in its accounting records. They provide the needed guidance to ensure that the accounts involved in every business transaction are properly identified and entries are correctly recorded on the correct side of the accounts. Transactions are recorded following the ubiquitous accounting equation, the accrual concept, and matching principle of generally accepted accounting principles.
Mr. and Mrs. Revel had $206,200 AGI before considering capital gains and losses. Required: For each of the following cases, compute their AGI:
a. On May 8, they recognized an $8,900 short-term capital gain. On June 25, they recognized a $15,000 long-term capital loss.
b. On February 11, they recognized a $2,100 long-term capital gain. On November 3, they recognized a $1,720 long-term capital loss.
c. On April 2, they recognized a $5,000 long-term capital loss. On September 30, they recognized a $4,800 short-term capital loss.
d. On January 12, they recognized a $5,600 short-term capital loss. On July 5, they recognized a $1,500 long-term capital gain.
Answer:
For 2020 the maximum capital loss deductible from taxable income is $3,000 and this applies when capital losses exceed capital gains.
a. Net Gain = 8,900 - 15,000
= -$6,100
Their AGI will be;
= 206,200 - 3,000
= $203,200
b. Net Gain = 2,100 - 1,720
= $380
AGI;
= 206,200 + 380
= $206,580
c. Net Gain = - 5,000 - 4,800
= -$9,800
AGI;
= 206,200 - 3,000
= $203,200
d. Net Gain = 1,500 - 5,600
= -$4,100
AGI;
= 206,200 - 3,000
= $203,200
The computation of Mr. and Mrs. Revel's AGI after inputting capital gains and losses are as follows:
Situation AGI Before Net Capital Gain AGI After
a. $206,200 ($3,000) $203,200
b. $206,200 $380 $206,580
c. $206,200 ($3,000) $203,200
d. $206,200 ($3,000) $203,200
Data and Calculations:
The AGI of Mr. and Mrs Revel before Capital Gains and Losses = $206,200
Case A:
Short-term capital gain = $8,900
Long-term capital loss = $15,000
Net capital gain = ($6,100)
Maximum capital loss allowed in the year = $3,000
Balance carried forward = $3,100 ($6,100 - $3,000)
Case B:
Long-term capital gain =$2,100
Long-term capital loss = $1,720
Net capital gain = $380
Case C:
Long-term capital loss = $5,000
Short-term capital loss = $4,800
Net capital loss = $9,800
Maximum capital loss allowed = $3,000
Capital loss carried forward = $6,800 ($9,800 - $3,000)
Case D:
Short-term capital loss = $5,600
Long-term capital gain = $1,500
Net capital loss = $4,100
Maximum capital loss allowed = $3,000
Capital loss carried forward =$1,100 ($4,100 - $3,000)
Learn more: https://brainly.com/question/25654842
Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
A. The equipment was purchased on account for $25,000. Credit terms were 2/10, n/30. Payment was made within the discount period and the company records the purchases of equipment net of discounts.
B. Connors gave the seller a noninterest-bearing note. The note required payment of $27,000 one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of 10% properly reflects the time value of money in this situation.
C. Connors traded in old equipment that had a book value of $6,000 (original cost of $14,000 and accumulated depreciation of $8,000) and paid cash of $22,000. The old equipment had a fair value of $2,500 on the date of the exchange. The exchange has commercial substance.
D. Connors issued 1,000 shares of its nopar common stock in exchange for the equipment. The market value of the common stock was not determinable. The equipment could have been purchased for $24,000 in cash.
Required:
For each of the above situations, prepare the journal entry required to record the acquisition of the equipment.
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Journal Entries
Debit Credit
A. The equipment was purchased on account for $25,000.
Equipment $25,000
Accounts Payable $25,000
B. Connors gave the seller a noninterest-bearing note. The note required payment of (27,000 x 1/(1+10%)
Equipment $24,545
Discount on Notes Payable $2,455
Note Payable $27,000
C. Connors traded in old equipment that had a book value of $6,000
Equipment New $24,500
Accumulated Depreciation $8,000
Loss on Equipment $3,500
Cash $22,000
Equipment Old $14,000
D.Connors issued 1,000 shares of its no-par common stock in exchange for the equipment
Equipment $24,000
Common Stock $24,000
A.
Journal entry 25,000/(1-.02) = 24,500
Debit: Equipment - new 24,500
Credit: Accounts Payable 24,500
B. 27,000/(1+.10)=24,545 then 27,000-24,545 = 2,455
Debit: Equipment - new 24,545
Debit: Discount on Notes Payable 2,455
Credit: Notes Payable 27,000
C.
Debit: Equipment - new 24,500 (22,000+2,500)
Debit: Accumulated Depreciation 8,000
Debit: Loss on Exchange of assets 3,500 (6,000-2,500)
Credit: Cash 22,000
Credit: Equipment - old 14,000
D.
Debit: Equipment 24,000
Credit: Common Stock 24,000
Del Gato Clinic's cash account shows a $11,589 debit balance and its bank statement shows $10,555 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $1,829. The June 30 bank statement lists a $16 bank service charge. Check No. 919, listed with the canceled checks, was correctly drawn for $467 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $476. The June 30 cash receipts of $2,856 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.
Prepare its bank reconciliation using the above information.
DEL GATO CLINIC
Bank Reconciliation
June 30
Book balance
Add: Bank statement balance
Add:
Deduct: Deduct:
Adjusted bank balance Adjusted book balance
Answer:
Bank Reconciliation
Bank Statement Balance 10,555
Add: June 30 Deposit 2,856
13,411
Less: Outstanding Checks (1,829)
Adjusted bank balance $11,582
Bank Reconciliation
Book Balance 11,589
Add: Error in Check 919 (479 - 467) 9
11,598
Less: Bank service charge ( 16)
Adjusted book balance 11,582
Bramble Corp. will receive $18500 today (January 1, 2020), and also on each January 1st for the next five years (2021 – 2025). What is the present value of the six $18500 receipts, assuming a 10% interest rate?
Answer:
21
Explanation:
The general ledger of Pipers Plumbing at January 1, 2018, includes the following account balances:
Accounts Debits Credits
Cash $ 4,500
Accounts receivable 9,500
Supplies 3,500
Equipment 36,000
Accumulated depreciation $ 8,000
Accounts payable 6,000
Utilities payable 7,000
Deferred revenue 0
Common stock 23,000
Retained earnings 9,500
Totals $ 53,500 $ 53,500
The following is a summary of the transactions for the year:_______.
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
2. March 13 Collect on accounts receivable, $51,000.
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
4. June 30 Pay salaries for the current year, $32,600.
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $9,200.
7. December 30 Pay $2,600 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $7,200.
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Accrued utilities at year-end amounted to $6,400.
Answer:
Journal entries
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
Dr Cash 18,000
Dr Accounts receivable 63,000
Cr Service revenue 81,000
2. March 13 Collect on accounts receivable, $51,000.
Dr Cash 51,000
Cr Accounts receivable 51,000
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
Dr Cash 10,000
Cr Common stock 10,000
4. June 30 Pay salaries for the current year, $32,600.
Dr Wages expense 32,600
Cr Cash 32,600
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
Dr Utilities payable 6,200
Cr Cash 6,200
6. November 24 Receive cash in advance from customers, $9,200.
Dr Cash 9,200
Cr Unearned revenue 9,2000
7. December 30 Pay $2,600 cash dividends to stockholders.
Dr Dividends 2,600
Cr Cash 2,600
Adjusting entries
Depreciation for the year on the machinery is $7,200.
Dr Depreciation expense 7,200
Cr Accumulated depreciation, equipment 7,200
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Dr Supplies expense 2,500
Cr Supplies 2,500
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Dr Unearned revenue 6,600
Cr Service revenue 6,600
Accrued utilities at year-end amounted to $6,400.
Dr Utilities expense 6,400
Cr Utilities payable 6,400
The revenue recognition principle states that: Multiple Choice Revenue should be recognized in the period goods and services are provided. Revenue should be recognized in the period the cash is received. Revenue should be recognized in the balance sheet. Revenue is a component of common stock.
Answer:
Revenue should be recognized in the period goods and services are provided.
Explanation:
IFRS 15 requires revenue to be recognized when control of goods or services has been made to the customer. Control is when all the risks and benefits associated with the product or service has been transferred to the customer.