Indicate the effects of the following business transactions on the accounting equation for Sam's Snack Foods, a supplier of snack foods.
Transaction (a) is answered as a guide. a. Sam s Snack Foods received cash from the issuance of common stock to stockholders. Answer: Increase asset (Cash); Increase equity (Common Stock)
b. Cash purchase of land for a building site.
c. Paid cash on accounts payable.
d. Purchased equipment; signed a note payable.
e. Performed service for a customer on account.
f. Employees worked for the week but will be paid next Tuesday.
g. Received cash from a customer on accounts receivable.
h. Borrowed money from the bank.
i. Cash dividends paid to stockholders.
j. Incurred utilities expense on account.

Answers

Answer 1

Answer:

a. Sam s Snack Foods received cash from the issuance of common stock to stockholders.

Increase asset (Cash); Increase equity (Common Stock)

b. Cash purchase of land for a building site.

Decrease current asset (Cash); Increase non-current asset (Land)

c. Paid cash on accounts payable.

Decrease asset (Cash); Decrease liabilities (Accounts payable)

d. Purchased equipment; signed a note payable.

Increase non-current asset (Equipment); Increase long term liabilities (Notes payable)

e. Performed service for a customer on account.

Increase asset (Accounts receivable); Increase equity (Retained earnings)

f. Employees worked for the week but will be paid next Tuesday.

Increase liabilities (Wages payable); Decrease equity (Retained earnings)

g. Received cash from a customer on accounts receivable.

Increase asset (Cash); Decrease asset (Accounts receivable)

h. Borrowed money from the bank.

Increase asset (Cash); Increase liability (Notes payable)

i. Cash dividends paid to stockholders.

Decrease asset (Cash); Decrease equity (Retained earnings)

j. Incurred utilities expense on account.

Increase liabilities (Accounts payable); Decrease equity (Retained earnings)


Related Questions

On November 1, 2018, Reid Corporation acquired bonds with a face value of $700,000 for $673,618.61. The bonds carry a stated rate of interest of 10%, were purchased to yield 11%, pay interest semiannually on April 30 and October 31, were purchased to be held to maturity, and are due October 31, 2022. On November 1, 2019, in contemplation of a major acquisition, the bonds were sold for $700,000. Reid is on a fiscal year accounting period ending October 31 and uses the effective interest method.Required:a. Prepare journal entries to record the purchase of the bonds, the interest receipts on April 30, 2019, and October 31, 2019, and the sale of the bonds.b. Prepare journal entries to record the purchase of the bonds, the interest receipts on April 30, 2019, and October 31, 2019, and the sale of the bonds

Answers

Answer:

Nov 1 2018

Dr Bonds receivable 700,000

Cr Cash 67,3618.61

Cr Discount on bonds receivable 26,381.39

April 3 2019

Dr Cash 35,000

Dr Discount on bonds receivable 2,049.02

Dr Interest revenue 37,059.02

Oct 31, 2019

Dr Cash 35,000

Dr Discount on bonds receivable 2,049.02

Cr Interest revenue 37,059.02

Nov 1, 2019

Dr Cash 700,000

Dr Discount on bonds receivable 22,283.25

Cr Notes receivable 700,000

Cr Profit on sale bonds receivable 22,283.25

Explanation:

Preparation of the journal entries to record the following:

Purchase of the bonds

Interest receipts on April 30, 2019 and October 31, 2019

Sale of the bonds.

Journal entries

Nov 1 2018

Dr Bonds receivable 700,000

Cr Cash 67,3618.61

Cr Discount on bonds receivable 26,381.39

(700,000-67,3618.61)

(To record Purchase of bonds)

April 30 2019

Dr Cash 35,000

(700,000*10%*6/12)

Dr Discount on bonds receivable 2,049.02

(37,059.02-35,000)

Dr Interest revenue 37,059.02

(673,618.61*11%*6/12)

(To record Interest receipts)

Oct 31, 2019

Dr Cash 35,000

Dr Discount on bonds receivable 2,049.02

(37,059.02-35,000)

Cr Interest revenue 37,059.02

(673,618.61*11%*6/12)

(To record Interest receipts)

Nov 1, 2019

Dr Cash 700,000

Dr Discount on bonds receivable 22,283.25

($26,381.39-$2,049.02-$2,049.02)

Cr Notes receivable 700,000

Cr Profit on sale bonds receivable 22,283.25

(To record Sale of the bonds)

Definition of scarcity

Answers

Answer:

The state of being scarce or in short supply.

Example: A time of Scarcity.

In order for a managerial team to develop an effective strategy, they first need to assess the conditions under which the organization is operating under and existing in. There are several tools available to managers to accomplish this end. One of these tools, Porter's Five Competitive Forces, allows managers to assess the level of competitiveness within a particular industry. According to strategy expent Michael Porter, business-level strategies originate within the five primary competitive forces of threats of new entrants, bargaining power of suppliers, bargaining power of buyers, threats of substitute products or services, and rivalry among competitors. This exercise will test your knowledge of Porter's Five Competitive Forces. However each term or phrase and read the description. Next, drag and drop the term or phrase into the correct position to correspond with the related competitive force from Porter's Five Competitive Forces. 1. Internet 2. Investments 3. Music4. Glass 5. Advertisement A. Threat of New EntrantsB. Bargaining Power of Suppliers C. Bargaining Power of BuyersD. Threat of Substitute Products or Services E. Rivalry Among Competitors

Answers

Answer:

1. Internet - Bargaining power of buyers

With the internet buyers are much more knowledgeable about goods and services as well as having access to many more vendors. The internet has therefore increased the bargaining power of buyers.

2. Investments - Threat of Substitute Products or Services

Investment into an industry could mean that other companies are being financed to provide the goods and services that the other companies in the industry already create. This is a threat of substitute products and services.

3. Music - Threat of New Entrants

Music is dynamic and keeps evolving such that new entrants are a constant happening. These new musicians could attract the audiences of other musicians so it is a threat to entry.

4. Glass - Bargaining Power of Suppliers

If the specific kind of glass is not easy to get or is sold by one or few companies, this would mean that the bargaining power of suppliers is high due to the scarcity of the glass.

5. Advertisement - Rivalry Among Competitors

Advertisement is a way of telling consumers to buy a product from the company advertising instead of its customers. Advertising is therefore a medium of expression for rivalry amongst competitors.

Which statements are true (for a firm without non-operating income or expenses)? EBIT _____.
a. is the same as operating income
b. is the same as net sales
c. is the same as net income
d. does not include interest payments

Answers

Answer: a. is the same as operating income

d. does not include interest payments

Explanation:

The earnings before interest and taxes(EBIT) is used to measure the profit of a firm which has to do with all the incomes and the expenses that the firm makes except the income tax and the interest expenses.

It should be noted that EBIT is not the same as the net sales as it involves operating costs. Also, EBIT is higher than the net income.

Therefore, options A and D are the right answer.

Donna Bader, Globalization opponent Donna Bader spent her final year at college studying the effect of various economic factors on the economy of developing nations. Based on the results of her study, she concluded that globalization does these countries more harm than good. Upon what assumption does Donna's conclusion rest? Donne assumes that ________.

a. there are no factors other than globalization which influence the economic conditions of a country
b. the welfare of individuals matters less than the economic prosperity of a nation
c. globalization does not affect the employment rate of developed and developing countries
d. the wages paid to all individuals within developed countries are equal

Answers

Answer: there are no factors other than globalization which influence the economic conditions of a country

Explanation:

Globalization is the movement of goods, services, human beings, technologies, capital etc around the world. Globalization promotes interactions between people in different parts of the world.

Since Donna Bader, whom is a globalization opponent believes that globalization does more harm than good to countries, her conclusion could have been gotten from the assumption that "there are no factors other than globalization which influence the economic conditions of a country".

In this scenario, such economy are only influenced by globalization and in a case whereby there's trade dispute or war between the country and other countries which could impede imports or affect communication or other things which can disrupt globalization to effectively take place, such economy can be affected.

Rowan and Vanessa plan to pool their money and talents to form a general partnership and start a music school. One of the first things Rowan and Vanessa should do is

Answers

Answer: B) consult an attorney and put their agreement in writing.

Explanation:

As soon as they have agreed to form a partnership, they should put this on paper to finalize it properly and give it more legal standing.

They do this by consulting an attorney who will then put the agreement to writing. This agreement will show what is expected of both parties and will be fully enforceable. It would also help in filling the requisite documents for the formation of the music school.

A real estate broker's license enables a person to handle the sale of:a. Registered mobile homesb. Business opportunitiesc. Trust deedsd. All of these

Answers

Answer:

All of these

Explanation:

A real estate broker's license enables the holder to have a wide opportunity, from an estate agency to investment. Hence, considering the options available: it is correct to conclude that: a real estate broker's license enables a person to handle the sale of Registered mobile homes, Business opportunities, and Trust deeds.

Therefore, the correct answer, in this case, is option D: All of these.

What happened to assets, earnings, dividends, and cash flows during the financial year? The Provincial and Teritorial Securities Commissions require all publidy traded companies to periodically report their financial corporation must publish an annual report that contains the balance sheet, income statement, statement of cash A publicly held flows, statement of retained earnings, and other financial information for analysls. The following table lists descriptions of the major financial statements and reports that a firm statement or report for each description. publishes. Identify the correct Statement or Report Is required by the Provincial and Territorial Securities Commissions and includes the audited document that shows the company's financial results for the past year and management's discussion about the future outlook and plans Details changes in the capital received from investors ir exchange for shares (paid-in capital), donated capital, and retained earnings Aggregates all cash inflows, which the company receives from its ongoing activities and investment sources, and all cash outflows Gives information about earnings before interest, taxes, depreciation, and amortization Provides a quantitative summary of a company's assets, liabilities, and net worth at a specific point in time Accountants focus on creating financial statements, whereas finance professionals use these statements to eva answer questions about its the following table. luate a firm and performance. Indicate which financial statement you would refer to when answering the questions in Balance Sheet Statement of Cash Flows Does the firm generate enough internal funds to support antidpated investment or does addtional outside capital need to be raised? Can the firm meet all its short-term obligations using its current assets?

Answers

Answer:

1.

Is required by the Provincial and Territorial Securities Commissions and includes the audited document that shows the company's financial results for the past year and management's discussion about the future outlook and plans - ANNUAL STATEMENT

The annual statement is a very important document that shows a company's financial results in a period as well as the future outlook and plans of the company according to management.

Details changes in the capital received from investors in exchange for shares (paid-in capital), donated capital, and retained earnings - STATEMENT OF CHANGES IN EQUITY.

The Statement of changes in equity shows the changes in capital from investors as well as donated capital and retained earnings.

Aggregates all cash inflows, which the company receives from its ongoing activities and investment sources, and all cash outflows - STATEMENT OF CASHFLOWS

A very important statement, the Statement of cashflows shows the actual amount a company has by deducting its cash outflows from inflows.

Gives information about earnings before interest, taxes, depreciation, and amortization. - INCOME STATEMENT

The Income statement is used to calculate the income for the company in a particular period. It includes expenses such as taxes, interest, depreciation and amortizaton.

Provides a quantitative summary of a company's assets, liabilities, and net worth at a specific point in time. BALANCE SHEET.

The Balance sheet is used to show the assets, liabilities and equity of a company in a given period.

2.

Does the firm generate enough internal funds to support anticipated investment or does additional outside capital need to be raised? - STATEMENT OF CASHFLOWS

As the Statement of Cash Flows shows the actual amount of money available, it would be the best to use to see if the company is generating enough internal funds.

Can the firm meet all its short-term obligations using its current assets? - BALANCE SHEET

The Balance sheet contains information on the firm's current assets as well as its current liabilities and so would be the best statement to use.

The process of putting strategy into action is known as:_________a. Environmental analysis.b. Strategy formulation.c. Strategic visioning.d. Strategy implementation.

Answers

Answer:

d. Strategy implementation.

Explanation:

Strategic implementation is the process of putting the strategy into action.

After strategic planning, which is the definition of the action plans necessary for a company to achieve the defined objectives and goals, it is the phase of strategic implementation, which is the process of executing the plans defined in the planning stage.

Therefore, when implementing the strategy in an organization, it is necessary that the action plans are constantly monitored, so that the managers can have knowledge of the performance of the designed strategy, to prevent failures, correct some essential factor for the effectiveness of the action plans, monitor the internal and external environment, monitor the performance of employees, etc., in order to seek continuous improvement of the company's strategic action processes to achieve the expected objectives.

Calculate the AT- WACC with a 60% debt and 40% equity financing structure.

Answers

Answer: 9.9%

Explanation:

The Weighted Average Cost of Capital (WACC) represents the cost of financing the business through debt and capital.

It is calculated as;

= (Weight of stock * cost of stock) + ( Weight of debt * after-tax cost of debt)

After tax cost of debt;

= debt interest *  ( 1 - tax rate)

= 10% * ( 1 - 35%)

= 6.5%

WACC = (40% * 15%) + ( 60% * 6.5%)

= 9.9%

The applicable tax rate for s corporations is based on the:_______a. Corporate tax rateb.Stockholder's individual tax rates

Answers

Answer:

b.Stockholder's individual tax rates

Explanation:

The application rate for S corporation should not be taxed as the C corporation.So in this case, it should not be applied in the S corporation profits and it should be passed with the help of stockholders and the income should be reported at the time of filing the return

Therefore in the given case, the correct option is B. and the same is to be considered


Identify the characteristics of a successful workplace culture. Select all that apply.

Answers

Answer:

employees agree with goals of the organization

employees want to support the goals of the organization

Explanation:

i did it on edgenuity

Empire Company is a manufacturer of smartphones. Its controller resigned in October 2017.
An inexperienced assistant accountant has prepared the following income statement for the month of October 2017.
EMPIRE COMPANY
Income Statement
For the Month Ended October 31, 2017
Sales Revenue $780,000
Less: Operating Expenses
Raw materials purchases $264,000
Direct labor costs 190,000
Advertising expense 90,000
Selling and administrative salaries 75,000
Rent on factory facilities 60,000
Depreciation on sales equipment 45,000
Depreciation on factory equipment 31,000
Indirect labor cost 28,000
Utilities expense 12,000
Insurance expense 8,000 803,000
Net loss ($23,000)
Prior to October 2017, the company had been profitable every month. The company's president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.
1. Inventory balances at the beginning and end of October were:
October 1 October 31
Raw materials $18,000 $29,000
Work in process 20,000 14,000
Finished goods 30,000 50,000
2. Only 75% of the utility expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.
Instructions:
a. Prepare a schedule of cost of goods manufactured for October 2017.
b. Prepare a correct income statement for October 2017.

Answers

Answer:

a. Schedule of cost of goods manufactured for October 2017.

Raw materials costs  ($264,000  + $18,000 - $29,000)   $253,000

Direct labor costs                                                                 $190,000

Depreciation on factory equipment                                      $31,000

Indirect labor cost                                                                  $28,000

Rent on factory facilities                                                        $60,000

Utilities expense $12,000  × 75%                                            $9,000

Insurance expense $8,000 × 60%                                         $4,800

Add Opening Work in process Inventory                            $20,000

Less Closing Work in process Inventory                             ($14,000)

Cost of goods manufactured                                               $581,800

b. Income statement for October 2017.

Sales Revenue                                                                     $780,000

Less Cost of Goods Sold :

Opening Finished goods Inventory                $30,000

Add Cost of goods manufactured                 $581,800

Less Closing Finished goods Inventory        ($50,000)   ($561,800)

Gross Profit                                                                           $218,200

Less Expenses :

Advertising expense                                        $90,000

Selling and administrative salaries                  $75,000

Depreciation on sales equipment                   $45,000

Utilities expense 12,000  × 25 %                        $3,000

Insurance expense 8,000 × 40 %                      $3,200   ($216,200)

Net Profit / Loss                                                                       $2,000

Explanation:

First, Prepare the cost of goods manufactured for October 2017 and include the amount in the calculation of cost of goods sold.

In the cost of goods manufactured schedule, include only the costs that are factory related.

Then, Prepare the income statement for October 2017, making sure to adjust the Utilities and Insurance expenses appropriately.

Net cash flow from operating activities for 2021 Altoona Corporation was $300,000. The following items are reported on the financial statements for 2021:
Depreciation and amortization $30,000
Cash dividends paid on common stock 18,000
Increase in accounts receivable 36,000
Based only on the information above, Graham’s net income for 2018 was:_______.
a. $501,000.
b. $429,000.
c. $441,000.
d. $489,000.

Answers

Answer:

$306,000

Explanation:

Calculation for Graham’s net income for 2018

Using this formula

NET INCOME=Net cash flow from operating activities+(Depreciation and amortization -

Increase in accounts receivable )

Let plug in the formula

NET INCOME=$300,000+($30,000-$36,000)

NET INCOME=$300,000+$6,000

NET INCOME=$306,000

Therefore Graham’s net income for 2018 will be $306,000

Discuss why you think customers respond so positively to personalized communication?

Answers

Customers often respond positively to personalized communication because it is specifically directed towards them and any concerns and/or questions they may have.

What sum of money now is equivalent of $8,250 two years later, if the interest is 4% per 6-month period (8% compounded semi-annually)?

Answers

Answer:

$7052.13

Explanation:

We can calculate the present value of money equivalent of $8,250 two years later by applying present value formula

DATA

Future value = $8,250

Interest rate = 4%

Number of periods = n = 2 years x 2 times a year = 4 times

Present value =?

Solution

PV = [tex]\frac{1}{1+(interest rate)^n} futurevalue[/tex]

PV = ×\[tex]\frac{1}{1+(0.04)^4} 8250[/tex]

PV = $7052.13

Use the above adjusted trial balance to prepare Wilson Trucking Company’s classified balance sheet as of December 31, 2017.Cash $ 5,900 Accounts receivable 27,500 Office supplies 7,590 Trucks 196,000 Accumulated depreciation—Trucks $ 40,376 Land 48,000 Accounts payable 9,900 Interest payable 7,000 Long-term notes payable 63,000 Common stock 15,000 Retained earnings 172,347 Dividends 29,000 Trucking fees earned 126,000 Depreciation expense—Trucks 26,043 Salaries expense 64,722 Office supplies expense 17,000 Repairs expense—Trucks 11,868 Totals $433,623 $ 433,623

Answers

Answer:

.............................................. Wilson Trucking Company ......................................

................................................ Classified Balance Sheet ......................................

....................................................... December 31, 2017.........................................

Assets

Current assets  

Cash .................................................... $5,900  

Account receivable ............................ $27,500  

Office supplies..................................... $7,590

Total current assets ............................................. $40,990

Non current assets  

Land ......................................................................... $48,000

Truck ..................................................... $196,000  

Less: Accumlated depreciation - Truck  $(40,376) $155,624

Total Non current assets ......................................... $203,624

Total Assets ............................................................... $244,614

Liabilities

Current Liabilities  

Account payable................................. $9,900  

Interest payable ................................. $7,000  

Total current liabilities............................................... $16,900

Long term liabilities  

Long term notes payable.......................................... $63,000

Total liabilities............................................................. $79,900

Stockholder's equity

Common Stock ................................... $15,000  

Retained earnings............................... $149,714  

Total Stockholder's equity......................................... $164,714

Total liabilities and stockholder's equity.................. $244,614

Retained Earnings

= Opening retained earnings + Net Income - Dividends

Net Income

= Revenue - Expenses

= 126,000 (Trucking fees earned ) - 26,043 - 64,722 - 17,000 - 11,868

= $6,367

Retained earnings

= 172,347 + 6,367 - 29,000

= $149,714

A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used.


Goods in Process Inventory Finished Goods Inventory
Beg. bal 100,800 Beg. bal 118,200
DM? 324,800 301,000
D.L?
O.H? F.G?
End Bal. 131.040 End Bal. 142,000


Factory Overhead
93,240 90,720

Answers

Answer:

Materials used during the period $ 113,120

Explanation:

The credit side of the Factory overhead is the applied overhead

Thus: 90,720 os 60% of labor: 90,720 / 0.6 = 151,200

Good in Process

Beginning Balance 100,800

Materials                            X

Labor                        151,200

Overhead                 90,720  

Transferred-out             (Y)  

Ending Balance      131,040

Finished Goods

The debit of 324,800 represents the amount transferred out from Goods in Process. Having this, we can solve for direct materials

Beginning Balance    100,800

Materials                                X

Labor                            151,200

Overhead                     90,720  

Transferred-out      (324,800)  

Ending Balance           131,040

material = 131,040 + 324,800 - 90,720 - 151,200 - 100,800 = 113,120

You are a manager of a soft drinks company that is planning to go head to head with Coca-Cola to increase market share. Your strategy is to increase your product ranges that you plan to offer to Mass Market. Along with the extension of the products and product lines, you want to be responsive to the different geographic regions you plan to serve. So, your main focus is to balance the extended product categories along with the responsiveness to the geographic regions to serve. Currently you have a functional structure which may not be suitable for maintaining Products along with Geographic Responsiveness. So, you are required to IDENTIFY which Organizational Structure (For Example: PRODUCT BASED DIVISION, REGION BASED DEVISIONS, MATRIX STRUCTURE, etc.) would be best suitable if your strategy intends to: a. Lowering cost b. Increasing responsiveness c. or both

Answers

Answer:

Explanation:

Organizational structure is what is best for

1. lowering cost:

what would be most suitable here is the product based division structure. this is because the main goal is the launching of new product lines and also getting ranges that are in existence to be bigger. the divisions are smaller here, which is given to each single product line which may have their own R&D and response divisions. Efficiency is increased, product development cycle is reduced and so also is cost lowered.

2. increasing responsiveness:

what is best here is region/geographic based structure. this is as divisions that are smaller are given to distinct areas. this increases region specificness as well as the fact that it takes care of any grievances. the team here have good knowledge of the needs of the specific region and their socio cultural background.

3. both

the matrix structure is best when their is a goal to lower cost and at the same time increase responsiveness. the divisions are of two dimensions, primary and secondary. this therefore increases sharing of resources and also cost reduction. it uses both if these goals to enhance efficiency.

Zenith Consulting Co. has the following accounts in its ledger: Cash; Accounts Receivable; Supplies; Office Equipment; Accounts Payable; Common Stock; Retained Earnings; Dividends; Fees Earned; Rent Expense; Advertising Expense; Utilities Expense; Miscellaneous Expense.
Transactions
Mar.1 Paid rent for the month, $4,000.
3 Paid advertising expense, $1,350.
5 Paid cash for supplies, $1,800.
6 Purchased office equipment on account, $11,500.
10 Received cash from customers on account, $8,600.
15 Paid creditor on account, $3,180.
27 Paid cash for miscellaneous expenses, $700.
30 Paid telephone bill for the month, $550.
31 Fees earned and billed to customers for the month, $37,200.
31 Paid electricity bill for the month, $830.
31 Paid dividends, $2,000.
Journalize the preceding selected transactions for March 2018 in a two-column journal. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Zenith Consulting Co.
General Ledger
ASSETS
11 Cash
12 Accounts Receivable
13 Supplies
14 Office Equipment
LIABILITIES
21 Accounts Payable
EQUITY
31 Common Stock
32 Retained Earnings
33 Dividends
REVENUE
41 Fees Earned
EXPENSES
51 Rent Expense
52 Advertising Expense
53 Utilities Expense
54 Miscellaneous Expense

Answers

Answer:

Date        Account Title and Explanation     Debit       Credit

Mar-01     Rent expenses                               $4,000

                     Cash                                                          $4,000

               (To record payment of rent for the month)

Mar-03    Advertising expenses                    $1,350

                      Cash                                                         $1,350

                (To record payment advertising expenses for the month)  

Mar-05     Supplies                                         $1,800

                       Cash                                                          $1,800

                 (To record payment for supplies)  

Mar-06     Office equipment                           $11,500  

                        Accounts payable                                   $11,500

                 (To record purchase of office equipment on account)  

Mar-10      Cash                                              $8,600

                        Accounts receivable                              $8,600

                (To record cash receipt from customers on account)  

Mar-15       Accounts payable                        $3,180  

                         Cash                                                        $3,180

                (To record payment to creditors on account)

Mar-27      Misc. expenses                             $700

                        Cash                                                         $700

                 (To record payment for misc. expenses)

Mar-30      Utilities expenses                         $550

                        Cash                                                          $550

               (To record payment for telephone expenses for the month)  

Mar-31       Accounts receivable                    $37,200  

                        Fees earned                                             $37,200

               (To record fee earned and billed to customer for the month)  

Mar-31       Utilities expenses                         $830

                         Cash                                                          $830

                (To record payment for electricity bill for the month)  

Mar-31      Dividends                                         $2,000  

                         Cash                                                           $2,000

                (To record payment of dividends)  

Because Mei-ling has had such a successful first few months, she is considering other opportunities to develop her business. One opportunity is the sale of fine European mixers. The owner of Generous Supply Co. has approached Mei-ling to become the exclusive distributor of these fine mixers in her state. The current cost of a mixer is approximately RM575, and Mei-ling would sell each one for RM1,150. Mei-ling comes to you for advice on how to account for these mixers.
Mei-ling asks you the following questions.
1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" Why?
2. "I’ve learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?"
3. "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?"

Answers

Answer:

1. "Would you consider these mixers to be inventory or should they be classified as supplies or equipment?" Why?

The mixers will be part of merchandise inventory since Mei-ling is purchasing them and will later resell them at a higher price and hopefully make a profit. Products classified as supplies or equipment are used by the company in their day to day activities and are not meant for resale.

2. "I’ve learned a little about keeping track of inventory using both the perpetual and the periodic systems of accounting for inventory. Which system do you think is better? Which one would you recommend for the type of inventory that I want to sell?"

The perpetual inventory system is much better than the periodic inventory system, but it is also more expensive to use. Depending on the number of mixers that are going to be sold, you can do it hand or use a computer software which would make things much easier, but you need to spend time (labor) and money to do so.

If Mei-ling is expecting to sell only a small number of mixers, then she could use a periodic inventory system which is much more simple and is only updated every certain period of time (monthly, quarterly, semiannually or annually). This is a cheaper system but it is the best alternative.

3. "How often do I need to count inventory if I maintain it using the perpetual system? Do I need to count inventory at all?"

Even if you use the perpetual inventory system, you will eventually need to physically count your inventory in order to make sure that the records have been properly made, but you could do it once or twice a year. Again it depends on the total units that she expects to have in inventory.

Which component of consumption has a negative or indirect relationship with consumption?

Answers

Answer:

Interest rates

Explanation:

Here are the options to the question : o Interest rates o Real income Real income o Expected future income o Wealth

Disposable income is either saved or consumed. When interest rates fall, savings would fall as returns on investment would be lower and consumption would increase.When interest rates rise, savings would increase and consumption would fall

Which of the following statements is true?
a. If revenues are less than expenses, the company has a net loss and retained earnings decreases.
b. If revenues are greater than expenses, the company has net income and contributed capital increases.
c. If revenues are less than expenses, the company has a net loss and contributed capital increases to balance off the loss.
d. If revenues are greater than expenses, the company has net income and retained earnings decreases

Answers

Answer:

a. If revenues are less than expenses, the company has a net loss and retained earnings decreases.

Explanation:

Retained earnings is defined as the portion of income a company retains for internal operations, reinvest into the business, or repay debt.

It is derived by removing dividends paid to shareholders net income of a company.

So of the revenues of a company are less than its expenses a company will have no choice but to use its retained earnings to run internal operations.

This reduces the retained earnings of the company.

Southern Atlantic Distributors began operations in January 2016 and purchased a delivery truck for $40,000. Southern Atlantic plans to use straight-line depreciation over a four-year expected useful life for financial reporting purposes. For tax purposes, the deduction is 50% of cost in 2016, 30% in 2017, and 20% in 2018. Pretax accounting income for 2016 was $300,000, which includes interest revenue of $40,000 from municipal bonds. The enacted tax rate is 40%. Required: Assuming no differences between accounting income and taxable income other than those described above: 1. Prepare the journal entry to record income taxes in 2016. 2. What is Southern Atlantic’s 2016 net income?

Answers

Answer:

1) December 31, 2016, income tax expense

Dr Income tax expense 104,000

    Cr Income taxes payable 100,000

    Cr Deferred tax liability 4,000

2) net income = $196,000

Explanation:

Southern Atlantic's taxable income = $300,000 (pretax income) - $40,000 (interests on municipal bonds) = $260,000

income tax expense = $260,000 x 40% = $104,000

income taxes payable = $104,000 - deferred tax liability = $104,000 - $4,000 = $100,000

deferred tax liability = accounting depreciation expense x tax rate = ($40,000 x 25%) x 40% = $10,000 x 40% = $4,000

net income = total income - income tax expense = $300,000 - $104,000 = $196,000

Employees do a better job of selling when they are happy at work. You make sure that you check in with employees frequently, addressing any of their concerns as soon as they arise.This is called__________.a. Classical Management theoryb. Humanistic Management theoryc. Contingency Theoryd. Management Science

Answers

Answer: b. Humanistic Management theory

Explanation:

The idea of the Humanistic Management theory is totally centralized on a belief that humans are not an economic asset . Humans have value and some needs in any organisation, so management of employees is a major concern to get expecting results.

So by checking employees frequently, addressing any of their concerns are the actions to manage them.

This is called Humanistic Management theory.

Hence, the correct option is b.

There is little relationship between CSR behaviors and consumer reaction to the products and services of the firm according to survey results listed in the Harvard Business Review.a. Trueb. False

Answers

Answer: false

Explanation:

CSR behavior are simply behavioral aspects of CSR. According to the definition of corporate social responsibility, companies should conduct their business in a way that gives back to the society at large.

The statements that there' little relationship between CSR behaviors and consumer reaction to the products and services of the firm according to survey results listed in the Harvard Business Review is not true.

what potential benefits do connected-car technologies offer auto makers such as BMW in terms of enhancing long-term customer relationships?

Answers

Answer: The answer is given below

Explanation:

The potential benefits that connected-car technologies offer auto makers such as BMW in terms of enhancing long-term customer relationships are cloud based digital services that are customized, cars which are internet equipped that'll help in customers driving experience.

Others include social platform, online entertainment, roadside assistance, e-commerce etc

The potential benefits that connected-car technologies offer auto makers such as BMW in terms of enhancing long-term customer relationships are cloud based digital services that are customized, cars which are internet equipped that'll help in customers driving experience.

What are the term potential benefits about?

Potential benefits defined as the benefits that include the abilities have a capability to become successfully.

Connected vehicle help to drivers to navigate the roads more efficiently along with help the system operators to enhance the operations of transportation system.

Moreover, potential benefits include social platform, online entertainment, roadside assistance, e-commerce etc

Learn more about potential benefits, refer to the link:

https://brainly.com/question/13937214

Which of the following costs is an example of product costs? A. selling commissionsB. nonfactory office salariesC. direct materialsD. advertising expense

Answers

Answer:

C

Explanation:

Product cost is the total cost expended in creating a product. They include direct labour, direct materials, production supplies, and factory overhead.

For example to produce a pencil, some of the product cost would include :

the wages of labour employed the raw materials used to make the pencil

What is refers to the primary market for municipal securities?

Answers

Answer:

Please find the detailed answer below.

Explanation:

Securities (e.g bonds, equities etc) are created in the primary markets. Simply put, the primary market for municipal securities is the market between municipal government and the investors. Municipal government issued securities direct from investors.

If after the primary market, investors sell the same security among themselves, the market is known as secondary market.

Wolfpack Construction has the following account balances at the end of the year.Equipment $25,500Accounts payable 2,900Salaries expense 32,500Common stock 10,000Land 17,500Notes payable 19,500Service revenue 38,500Cash 5,900Retained earnings ?Required:Prepare a balance sheet for Wolfpack Construction.

Answers

Answer:

Total Assets $48,900

Total liabilities and stockholders' Equity $48,900

Explanation:

Preparation for the balance sheet pf Wolfpack Construction.

WOLFPACK CONSTRUCTION

Balance Sheet

December 31

ASSETS LIABILITIES

Cash $5,900 Accounts payable $2,900

Land $17,500 Notes payable $19,500

Equipment $25,500

Total Assets $48,900

($5,900+$17,500+25,500)

Total liabilities $22,400

($2,900+$19,500)

STOCKHOLDER'S EQUITY

Common stock $10,000

Retained earnings $16,500

Total stockholders' equity $26,500

Total Assets $48,900

Total liabilities and stockholders' Equity $48,900($22,400+$26,500)

Calculation for Retained earnings

Using this formula

Retained earnings= Total assets - Total liabilities - Common stock

Let plug in the formula

Retained earnings= $48,900-$22,400-$10,000

Retained earnings= $16,500

Therefore Total Assets will be $48,900 while

Total liabilities and stockholders' Equity will be $48,900

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