Answer:
Craig Kovar
Cash Budget
September October November December
Beginning balance $8,150 $3,150 $2,980 $2,810
Wages 1,000 1,000 1,000 1,000
Deposit refund 500
Total cash receipts $9,150 $4,150 $3,980 $4,310
Payments:
Season football tickets 130
Entertainment 210 210 210 210
Semester tuition 4,200 4,200
Rent 500 500 500 500
Food 460 460 460 460
Apartment deposit 500
Total payments $6,000 $1,170 $1,170 $5,370
Cash balance $3,150 $2,980 $2,810 ($1,060)
b. Craig needs to borrow $1,060 in December to meet up with expenses. Alternatively, he will need to increase his monthly earnings by more than $265. He can also reduce his monthly expenses by $265 at least, especially from additional entertainment and food. He should also start considering how he could survive January without additional income.
Explanation:
a) Data and Calculations:
Receipts:
Cash balance, September 1 (from a summer job) $8,150
Part-time job earnings each month (net of taxes) 1,000
Apartment deposit returned in December $500
Payments:
Season football tickets in September 130
Additional entertainment for each month 210
Semester tuition in September 4,200
Rent at the beginning of each month 500
Food each month 460
Apartment deposit on September 2 500
explain the importance of financial accounts to the owners and creditors
Answer:
Explanation:
U know what imma yeet out k bye
Suppose that the public holds 50% of the money supply in currency and the reserve requirement is 20%. Banks hold no excess reserves. A customer deposits $6,000 in her checkable deposit. Assume that after receiving the deposit, the bank lends out its excess reserves. When the loan is spent, _____ of the loan will be a checkable deposit and _____ will be held by the public as cash. $6,000; $0
Answer: $2,400; $2,400
Explanation:
If a deposit of $6,000 is made, the reserve requirement is 20% so the bank will have to reserve this amount of:
= 6,000 * 20%
= $1,200
The bank will be left with:
= 6,000 - 1,200
= $4,800
The bank lends all of this out.
The public holds 50% of the currency so they will keep:
= 50% * 4,800
= $2,400
The rest - which is $2,400 - will be deposited as checkable deposits.
A business operated at 100% of capacity during its first month and incurred the following costs: Production costs (20,000 units): Direct materials $180,000 Direct labor 240,000 Variable factory overhead 280,000 Operating expenses: Variable operating expenses $130,000 Fixed operating expenses 50,000 180,000 If 1,600 units remain unsold at the end of the month, the amount of inventory that would be reported on the variable costing balance sheet is a.$66,400 b.$64,000 c.$78,400 d.$56,000
Answer:
d.$56,000
Explanation:
The computation of the amount of inventory that would be reported on the variable costing balance sheet is shown below:
But before that following calculations need to be done
The total production cost
= Direct material + direct labor + variable factory overhead
= $180,000 + $240,000 + $280,000
= $700,000
Now the production cost per unit is
= $700,000 ÷ 20,000 units
= $35 per unit
Now the amount of inventory is
= 1,600 units × $35 per unit
= $56,000
Skyler Manufacturing recorded operating data for its shoe division for the year. Sales $4,500,000 Contribution margin 500,000 Controllable fixed costs 200,000 Average total operating assets 900,000 How much is controllable margin for the year
Answer:
Controllable margin= $300,000
Controllable margin in %= 33.3%
Explanation:
Controllable margin is sales revenue less controllable variable costs and fixed cost.
Controllable margin= Sales revenue - controllable variable cost - controllable fixed costs
Controllable margin= contribution margin - fixed costs
= 500,000 - 200,000= 300,000
Controllable margin in %= 300,000/900,000 × 100 =33.3%
Controllable margin in %= 33.3
A company has designed a new product and tested the prototype. what is the next step in product development?
A. test-market the product
B. launch the product
C. evaluate ideas
D. generate ideas
Answer:
A company has designed a new product and tested the prototype. What is the next step in product development ? Test - market the product.
Explanation:
Answer option A) Test - market the product.
You have been hired as CEO of Lugar Industries and have been asked to change the organizational culture. Because your company operates in a quickly changing environment, you need to have a culture which encourages employees to respond quickly to changes, to take risks, innovate, and have the authority to make quick decisions to take advantage of opportunities and to avoid risks. Based on these conditions, you, as CEO, want a(n) ____ culture.
Answer:
adaptive culture
Explanation:
An organization with an adaptive culture is usually one that can adapt quickly to changes in their environment, This changes can result from technological innovations, changes in consumer habits, changes in regulations, etc.
The key issue here is that the organization will respond rapidly to new opportunities and changes.
Jan. 27 Received Lee's payment for principal and interest on the note dated December 13.
Mar. 3 Accepted a $5,000, 10%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company.
17 Accepted a $2,000, 30-day, 9% note in granting H. Cheng a time extension on his past-due account receivable.
Apr. 16 H. Cheng dishonored his note.
May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.
June 1 Received the Tomas payment for principal and interest on the note dated March 3.
Required:
Calculate the interest amounts and use those calculated values to prepare your journal entries.
Question Completion:
Dec. 13 Accepted a $9,500, 45-day, 8% note dated December 13 in granting Miranda Lee a time extension on her past-due account receivable.
Answer:
Journal Entries:
Jan. 27 Debit Cash $9,595
Credit Notes Receivable (Miranda Lee) $9,500
Credit Interest Revenue $95
To record the full settlement of note and interest.
Mar. 3 Debit Notes Receivable (Tomas Company) $5,000
Credit Accounts Receivable (Tomas Company) $5,000
To record the acceptance of a 10%, 90-day note.
17 Debit Notes Receivable (H. Cheng) $2,000
Credit Accounts Receivable (H. Cheng) $2,000
To record the acceptance of a 30-day, 9% note
Apr. 16 Debit Accounts Receivable (H. Cheng) $2,015
Credit Notes Receivable (H. Cheng) $2,000
Credit Interest Revenue $15
To record the dishonoring of Cheng's note.
May 1 debit Allowance for Doubtful Accounts $2,105
Credit Accounts Receivable (H. Cheng) $2,015)
To record the write-off of H. Cheng's account.
June 1 Debit Cash $5,125
Credit Notes Receivable (Tomas Company) $5,000
Credit Interest Revenue $125
To record the full settlement of Tomas' account.
Explanation:
a) Data and Calculations:
Jan. 27 Cash $9,595 Notes Receivable (Miranda Lee) $9,500 Interest Revenue $95
Mar. 3 Notes Receivable (Tomas Company) $5,000 Accounts Receivable (Tomas Company) $5,000, 10%, 90-day note
17 Notes Receivable (H. Cheng) $2,000 Accounts Receivable (H. Cheng) $2,000 30-day, 9% note
Apr. 16 Accounts Receivable (H. Cheng) $2,015 Notes Receivable (H. Cheng) $2,000 Interest Receivable $15
May 1 Allowance for Doubtful Accounts $2,105 Accounts Receivable (H. Cheng) $2,015)
June 1 Cash $5,125 Notes Receivable (Tomas Company) $5,000 Interest Revenue $125
Interest amounts
Frances Newberry is the payroll accountant for Pack-It Services of Jackson, Arizona. The employees of Pack-It Services are paid semimonthly. An employee, Glen Riley, comes to her on November 6 and requests a pay advance of $1,050, which he will pay back in equal parts on the November 15 and December 15 paychecks. Glen is married with eight withholding allowances and is paid $52,880 per year. He contributes 3 percent of his pay to a 401(k) and has $25 per paycheck deducted for a Section 125 plan. Required: Compute his net pay on his November 15 paycheck. The applicable state income tax rate is 2.88 percent. Use the Wage Bracket Method Tables for Income Tax Withholding in Appendix C.
Answer:
His net pay on his November 15 paycheck is $1,349.70.
Explanation:
Number of semiannual in a year = 24
Semiannual gross pay = ($50,000 / 24) = $2,083.33
Social security tax = Semiannual gross pay * 6.20% = $2,083.33 * 6.20% = $129.17
Medicare tax = Semiannual gross pay * 1.45% = $2,083.33 * 1.45% = $30.21
401(k) contribution = Semiannual gross pay * 3% = $2,083.33 * 3% = $62.50
Section 125 plan = $25
Advance repayment = $750 / 2 = $375.00
Taxable Wages = Semiannual gross pay - Section 125 plan - 401(k) contribution = $2,083.33 - $25 - $62.50 = $1,995.83
Federal income tax = Taxable Wages * 1.6% = $1,995.83 * 1.6% = $31.93
State Income tax = Taxable Wages * 4% = $1,995.83 * 4% = $79.83
Net pay = Taxable Wages - Federal income tax - State Income tax - Social security tax - Medicare tax - Advance repayment = $1995.83 - $31.93 - $79.83 - $129.16 - $30.21 - $375 = $1,349.70
Therefore, his net pay on his November 15 paycheck is $1,349.70.
On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:
Accounts Debit Credit
Cash $58,700
Accounts Receivable 25,000
Allowance for Uncollectible Accounts $2,200
Inventory 36,300
Notes Receivable (5%, due in 2 years) 12,000
Land 155,000
Accounts Payable 14,800
Common Stock 220,000
Retained Earnings 50,000
Totals $287,000 $287,000
During January 2021, the following transactions occur:
January 1 Purchase equipment for $19,500. The company estimates a residual value of $1,500 and a five-year service life.
January 4 Pay cash on accounts payable, $9,500.
January 8 Purchase additional inventory on account, $82,900.
January 15 Receive cash on accounts receivable, $22,000.
January 19 Pay cash for salaries, $29,800.
January 28 Pay cash for January utilities, $16,500.
January 30 Firework sales for January total $220,000. All of these sales are on account. The cost of the units sold is $115,000.
Information for adjusting entries:
Depreciation on the equipment for the month of January is calculated using the straight-line method.
The company estimates future uncollectible accounts. The company determines $3,000 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
Accrued interest revenue on notes receivable for January.
Unpaid salaries at the end of January are $32,600.
Accrued income taxes at the end of January are $9,000.
Required:
a. Prepare a multiple-step income statement for the period ended January 31, 2021.
b. Prepare a classified balance sheet as of January 31, 2021.
c. Record closing entries.
Answer:
TNT Fireworks
a. Multiple-step Income Statement for the period ended January 31, 2021:
Sales revenue $220,000
Cost of goods sold 115,000
Gross profit $105,000
Interest Revenue 50
Expenses:
Depreciation exp. 3,600
Salaries expense 62,400
Utilities expense 16,500
Bad debt expense 5,900 $88,400
Income before tax $16,650
Income taxes exp 9,000
Net income $7,650
Beginning Retained Earnings 50,000
Ending Retained earnings $57,650
b. Classified Balance Sheet as of January 31, 2021:
Assets
Current assets:
Cash $5,400
Accounts Receivable 223,000
Allowance for
Uncollectible Accounts (8,100)
Interest Receivable 50
Inventory 4,200 $224,550
Long-term assets
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Equipment 19,500
Depreciation (3,600) $182,900
Total assets $407,450
Liabilities and equity
Current liabilities:
Accounts Payable $88,200
Salaries payable 32,600
Income taxes payable 9,000
Total liabilities $129,800
Equity:
Common Stock $220,000
Retained Earnings 57,650
Total equity $277,650
Total liabilities and equity $407,450
c. Closing Entries:
Accounts Debit Credit
Sales revenue $220,000
Interest Revenue 50
Income summary $220,050
To close sales and interest revenue to the income summary.
Income Summary $212,400
Cost of goods sold $115,000
Depreciation exp. 3,600
Salaries expense 62,400
Utilities expense 16,500
Bad debt expense 5,900
Income taxes exp 9,000
To close cost of goods sold and expenses to the income summary.
Income summary $7,650
Retained earnings $7,650
To close the net income to the retained earnings.
Explanation:
a) Data and Calculations:
Account Balances:
Accounts Debit Credit
Cash $58,700
Accounts Receivable 25,000
Allowance for
Uncollectible Accounts $2,200
Inventory 36,300
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Accounts Payable 14,800
Common Stock 220,000
Retained Earnings 50,000
Totals $287,000 $287,000
Analysis of Transactions:
January 1 Equipment $19,500 Cash $19,500
January 4 Accounts payable, $9,500 Cash $9,500
January 8 Inventory $82,900 Accounts payable $82,900
January 15 Cash $22,000 Accounts receivable, $22,000
January 19 Salaries expense $29,800 Cash $29,800
January 28 Utilities expense, $16,500 Cash $16,500
January 30 Accounts receivable $220,000 Sales revenue $220,000
Cost goods sold $115,000 Inventory $115,000
Accounts Debit Credit
Cash $58,700 - 19,500 -9,500 +22,000 - 29,800 - 16,500
= $5,400
Accounts Receivable 25,000 - 22,000 + 220,000 = 223,000
Interest Receivable 50
Allowance for
Uncollectible Accounts $2,200 + 5,900 = 8,100
Inventory 36,300 + 82,900 - 115,000 = 4,200
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Equipment 19,500
Accumulated depreciation 3,600
Accounts Payable 14,800 - 9,500 + 82,900 = 88,200
Salaries payable 32,600
Income Taxes Payable 9,000
Common Stock 220,000
Retained Earnings 50,000
Sales revenue 220,000
Interest Revenue 50
Cost of goods sold 115,000
Depreciation exp. 3,600
Salaries expense 29,800 + 32,600 = 62,400
Utilities expense 16,500
Bad debt expense 5,900
Income Taxes 9,000
Totals $287,000 $287,000
Adjusting entries:
Depreciation expenses $3,600 Accumulated depreciation $3,600
Allowance for Uncollectible Accounts = $1,500
Allowance for uncollectible accounts = $6,600 ($220,000 * 3%)
Total allowance for uncollectible = $8,100 ($1,500 + $6,600)
Bad debts expense $ 5,900 Allowance for Uncollectible $5,900
Interest Receivable $50 Interest Revenue = $50 ($12,000 * 5% * 1/12)
Salaries Expense $32,600 Salaries payable $32,600
Income Taxes $9,000 Income Taxes Payable $9,000
Adjusted Trial Balance
As of January 31, 2021
Accounts Debit Credit
Cash $5,400
Accounts Receivable 223,000
Interest Receivable 50
Allowance for
Uncollectible Accounts $8,100
Inventory 4,200
Notes Receivable (5%,
due in 2 years) 12,000
Land 155,000
Equipment 19,500
Accumulated depreciation 3,600
Accounts Payable 88,200
Salaries payable 32,600
Income taxes payable 9,000
Common Stock 220,000
Retained Earnings 50,000
Sales revenue 220,000
Interest Revenue 50
Cost of goods sold 115,000
Depreciation exp. 3,600
Salaries expense 62,400
Utilities expense 16,500
Bad debt expense 5,900
Income taxes exp 9,000
Totals $631,550 $631,550
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $325,000 after deducting Robert’s $100,000 salary. In addition to his compensation, ABC pays Robert dividends of $250,000. What is Robert’s qualified business income? Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert’s experience and responsibilities is $200,000? Why or why not
Answer and Explanation:
a. The calculation of the robert qualified business income is shown below:
Since robert is the sole shareholder and CEO of the ABC Inc and earned the income of $325,000 after subtracting the deduction of $100,000 salary
Also their is a dividend of $250,000
But the qualified business income should be equivalent to the net income i.e. $325,000
b. In the case when there is $200,000 so the net income would be decreased by $100,000
Now the qualified business income is
= $325,000 - $100,000
= $225,000
The Foundational 15 (Static) [LO13-2, LO13-3, LO13-4, LO13-5, LO13-6] Skip to question [The following information applies to the questions displayed below.] Cane Company manufactures two products called Alpha and Beta that sell for $120 and $80, respectively. Each product uses only one type of raw material that costs $6 per pound. The company has the capacity to annually produce 100,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 30 $ 12 Direct labor 20 15 Variable manufacturing overhead 7 5 Traceable fixed manufacturing overhead 16 18 Variable selling expenses 12 8 Common fixed expenses 15 10 Total cost per unit $ 100 $ 68 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars. Foundational 13-1 (Static) Required: 1. What is the total amount of traceable fixed manufacturing overhead for each of the two products
Answer:
Cane Company
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000
Beta = $1,800,000
Explanation:
a) Data and Calculations:
Alpha Beta
Selling price per unit $120 $80
Direct materials $ 30 $ 12
Direct labor 20 15
Variable manufacturing overhead 7 5
Traceable fixed manufacturing overhead 16 18
Variable selling expenses 12 8
Common fixed expenses 15 10
Total cost per unit $ 100 $ 68
Total traceable fixed manufacturing overhead:
Alpha = $1,600,000 ($16 * 100,000)
Beta = $1,800,000 ($18 * 100,000)
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below:
Standard Quantity or Hours Standard Price or Rate Standard Cost
Direct materials 7.90 pounds $2.10 per pound $16.59
Direct labor 0.50 hours $5.00 per hour $2.50
During the most recent month, the following activity was recorded:
a. 14,850.00 pounds of material were purchased at a cost of $2.00 per pound.
b. All of the material purchased was used to produce 1,500 units of Zoom.
c. 600 hours of direct labor time were recorded at a total labor cost of $4,200.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (2.1 - 2)*14,850
Direct material price variance= $1,485 favorable
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (7.9*1,500 - 14,850)*2.1
Direct material quantity variance= $6,300 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1,500*0.5 - 600)*5
Direct labor time (efficiency) variance= $750 favorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (5 - 7)*600
Direct labor rate variance= $1,200 unfavorable
Actual rate= 4,200/600= $7
Assume Italy and Libya can both produce grain and dates, and that the only limited resource is the farming labor force, meaning that land, water, and all other resources are plentiful in both countries. Each farmer in Italy can produce 10 t of grain or 5 t of dates in a season. Each farmer in Libya can also produce 10 t of grain or 25 t of dates. Please answer the four questions. Which country has the absolute advantage in producing dates
Answer and Explanation:
Since each farmer in Italy can produce 10ton of grain or 5ton of dates while on the other hand each farmer in libya can produce 10ton of grain or 25ton of dates
So based on the above information Libya produce more as compared with the Italy
Therefore libya has an absolute advantage in producing dates
Hence, the same is to be considered
A developing economy requires 1,000 hours of work to produce a television set and 10 hours of work to produce a bushel of corn. This economy has available a total of 1,000,000 hours of work per day.
Answer:
so what's your question
Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was $277000. The balance in the same account at the end of 2021 is $419000. Sunland’s Cost of Goods Sold account has a balance of $2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?
Answer:
$2,252,000
Explanation:
Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement
Using this formula
2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)
Let Plug in the formula
2021 income statement Cost of Goods Sold =$2110000+($419000-$277000)
2021 income statement Cost of Goods Sold =$2110000+$142,000
2021 income statement Cost of Goods Sold =$2,252,000
Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is $2,252,000
Crane Company estimates that variable costs will be 55.00% of sales, and fixed costs will total $702,000. The selling price of the product is $4. (a) Compute the break-even point in (1) units and (2) dollars. (1) Break-even sales units (2) Break-even sales $ (c) Assuming actual sales are $2,000,000, compute the margin of safety in (1) dollars and (2) as a ratio. (1) Margin of safety $ (2) Margin of safety ratio %
Answer and Explanation:
The computation is shown below;
The Variable cost is
= 55% of $4
=$2.2
Now
Contribution margin per unit
= Sale - Variable cost
= $4 - $2.2
= $1.8 per unit
a.Breakeven point is
= Fixed cost ÷ Contribution margin
In units
= ($702,000 ÷ $1.8)
= 390,000 units
in dollars = (390,000 × $4)
= $1,560,000
b.Margin of safety = Total sales - Breakeven sales
In dollars = ($2,000,000 - $1,560,000)
= $440,000
Margin of safety ratio =Margin of safety ÷ Total sales
= ($440,000 ÷ $2,000,000)
= 22%
Matthew is the CEO of an international company. He oversees business operations in eleven countries across the globe. Which information system will he use to make strategic decisions about his company as per the four-level pyramid model?4
A.
decision support system
B.
executive information system
C.
transaction processing system
D.
office support system
E.
management information system
Answer: B. executive information system
Explanation:
The Executive information system would be best for Matthew as it provides easy information for those at executive level like Matthew.
Executive information system shows company wide information and analyses it in such a way that it presents integrated information that incorporates important data from all of the company's divisions and departments. This allows for strategic decisions to be made based on the general situation of the entire company.
An investor deposits $35,000 into an IRA for her retirement in 25 years.The account pays 3.5% interest compounded continuously. She also plans to deposit $1800 each year into the account in a near-continuous manner for the same amount of time. What will be the value of her account after 25 years if she stays true to this plan
Answer:
The value of her account after 25 years, if she stays true to the plan is:
= $152,823.31.
Explanation:
a) Data and Calculations:
Initial deposits = $35,000
Period of investment = 25 years
Interest rate per year = 3.5% compounded continuously
Annual deposit into the same account = $1,800
Period of investment = 25 at 3.5% interest rate
Total value of her IRA account after 25 years:
Future value of $35,000 = $82,713.57
Future value of $1,800 yearly = 70,109.74
Total future value = $152,823.31
From an online financial calculator:
N (# of periods) 25
I/Y (Interest per year) 3.5
PV (Present Value) 35000
PMT (Periodic Payment) 0
Results
FV = $82,713.57
Total Interest $47,713.57
N (# of periods) 25
I/Y (Interest per year) 3.5
PV (Present Value) 0
PMT (Periodic Payment) 1800
Results
FV = $70,109.74
Sum of all periodic payments $45,000.00
Total Interest $25,109.74
DeLong Corporation was organized on January 1, 2017. It is authorized to issue 13,000 shares of 8%, $100 par value preferred stock, and 526,000 shares of no-par common stock with a stated value of $3 per share. The following stock transactions were completed during the first year.
Jan. 10 Issued 84,500 shares of common stock for cash at $6 per share.
Mar. 1 Issued 5,150 shares of preferred stock for cash at $105 per share.
Apr. 1 Issued 24,000 shares of common stock for land. The asking price of the land was $91,000. The fair value of the land was $80,500.
May 1 Issued 83,500 shares of common stock for cash at $4.75 per share.
Aug. 1 Issued 11,000 shares of common stock to attorneys in payment of their bill of $38,500 for services performed in helping the company organize.
Sept. 1 Issued 12,000 shares of common stock for cash at $7 per share.
Nov. 1 Issued 2,000 shares of preferred stock for cash at $109 per share.
Journalize the transactions. (Record journal entries in the order presented in the problem.)
Journalize Common and Preferred Stock Transactions
When most businesses are first organized or established, they include what is called Articles of Incorporation which are filed with the Secretary of State of the state in which the business is incorporated. These Articles specify the capital structure of the corporation, including preferred stock and how many shares of preferred stock may be issued and the par value of each share of preferred stock. These Articles also specify the number of common shares which the corporation may issue, and either the par value, no-par value, or the stated value per share of common stock.
Answer:
DeLong Corporation
Journal Entries:
Jan. 10: Debit Cash $507,000
Credit Common stock $253,500
Credit Additional Paid-in Capital- Common stock $253,500
To record the issue of 84,500 shares at $6 per share.
Mar. 1: Debit Cash $540,750
Credit Preferred stock $515,000
Credit Additional Paid-in Capital - Preferred stock $25,750
To record the issue of 5,150 shares at $105 per share.
Apr. 1 Debit Land $80,500
Debit Loss on Purchase of Land $10,500
Credit Common stock $72,000
Credit Additional Paid-in Capital- Common stock $19,000
To record the issue of 24,000 shares for land.
May 1: Debit Cash $396,625
Credit Common stock $250,500
Credit Additional Paid-in Capital- Common stock $146,125
To record the issue of 11,000 shares at $4.75 per share.
Aug. 1: Debit Attorney Fees $38,500
Credit Common stock $33,000
Credit Additional Paid-in Capital- Common stock $5,500
To record the issue of 11,000 shares for attorney's fees.
Sept. 1: Debit Cash $84,000
Credit Common stock $36,000
Credit Additional Paid-in Capital- Common stock $48,000
To record the issue of 12,000 shares at $7 per share.
Nov. 1: Debit Cash $218,000
Credit Preferred stock $200,000
Credit Additional Paid-in Capital-Preferred stock $18,000
To record the issue of 2,000 shares at $109 per share.
Explanation:
a) Data and Analysis:
January 1, 2017, Authorized Shares:
13,000 shares of 8%, $100 par value Preferred Stock
526,000 shares of no-par Common Stock with a stated value of $3 per share
Jan. 10: Cash $507,000 Common stock $253,500 Additional Paid-in Capital $253,500
Mar. 1: Cash $540,750 Preferred stock $515,000 Additional Paid-in Capital $25,750
Apr. 1 Land $91,000 Common stock $72,000 Additional Paid-in Capital $19,000
May 1: Cash $396,625 Common stock $250,500 Additional Paid-in Capital $146,125
Aug. 1: Attorney Fees $38,500 Common stock $33,000 Additional Paid-in Capital $5,500
Sept. 1: Cash $84,000 Common stock $36,000 Additional Paid-in Capital $48,000
Nov. 1: Cash $218,000 Preferred stock $200,000 Additional Paid-in Capital $18,000
You are sitting around the fire at a lodge in Dillingham, Alaska, discussing a fishing expedition you are planning with your colleagues at Great Alaska Adventures (GAA). Earlier in the day you received a fax from the president of BlueNote, Inc. The president wants to reward her top management team by taking them on an all-expense-paid fly-fishing adventure in Alaska. She would like GAA to organize and lead the expedition.
You have just finished a preliminary scope statement for the project (see below).
You are now brainstorming potential risks associated with the project.
1. Brainstorm potential risks associated with this project. Try to come up with at least five different risks.
2. Use a risk assessment form similar to Figure 7.6 to analyze identified risks.
3. Develop a risk response matrix similar to Figure 7.8 to outline how you would deal with each of the risks.
PROJECT SCOPE STATEMENT
PROJECT OBJECTIVE
To organize and lead a five-day fly-fishing expedition down the Tikchik River system in Alaska from June 21 to 25 at a cost not to exceed $35,000.
DELIVERABLES
• Provide air transportation from Dillingham, Alaska, to Camp I and from Camp II back to Dillingham.
• Provide river transportation consisting of two eight-man drift boats with outboard motors.
• Provide three meals a day for the five days spent on the river.
• Provide four hours fly-fishing instruction.
• Provide overnight accommodations at the Dillingham lodge plus three fourman tents with cots, bedding, and lanterns.
• Provide four experienced river guides who are also fly fishermen.
• Provide fishing licenses for all guests.
MILESTONES
1. Contract signed January 22.
2. Guests arrive in Dillingham June 20.
3. Depart by plane to Base Camp I June 21.
4. Depart by plane from Base Camp II to Dillingham June 25.
TECHNICAL REQUIREMENTS
1. Fly in air transportation to and from base camps.
2. Boat transportation within the Tikchik River system.
3. Digital cellular communication devices.
4. Camps and fishing conform to state of Alaska requirements.
LIMITS AND EXCLUSIONS
1. Guests are responsible for travel arrangements to and from Dillingham, Alaska.
2. Guests are responsible for their own fly-fishing equipment and clothing.
3. Local air transportation to and from base camps will be outsourced.
4. Tour guides are not responsible for the number of King Salmon caught by guests.
CUSTOMER REVIEW
The president of BlueNote, Inc.
Solution :
Risk management first involves the identification of the potential risk that may be involved. It should focus both on the objectives as well as events that could cause the consequences.
Some of the major risks that can be involved are :
• sudden weather conditions which may not support the flight travel.
• Embargo on fishing by the State or local authority suddenly
• any kind of physical injury to the members of the group
• there may be forest fire around the lake
• technical error that might occur during the course of adventures
The impact for the risk that includes the majuere risk will be very high for all the parameters that can increase the cost by 40%, it can also lead to increase in time by about 20% which can cancel the expedition. . These types of risk will not be covered under any scope.
For the physical risk, the impact will be moderate for the parameters.
Risk Response Matrix
Risk Response Contigency plan Trigger Who is responsible
Force Mitigate Choosing another Situation is Nils
Majuere destination as a back not clear in
up. 24 hours.
Physical Mitigate Proper training and After observing Eddie
injury safety kits the participants
Assume you are the new Branch Manager of a regional distributor and you would like to ensure your sales force is making the best use of its time with the different customer segments. For those customers that exhibit all of the characteristics of the transactional customer as discussed in the notes (with no possibility to move the customer to a deeper relationship), which of the following approaches would you recommend to your sales force? Group of answer choices By creating value in the first phase of the relationship by helping transactional customers solve complex problems. By spending time researching and identifying growth opportunities for the transactional customer in other, unrelated markets. By spending time creating exceptional customer value during all four phases of the purchasing process. By exerting significant time and effort during the riskiest part of the sales process in hopes that the investment will pay off with a sale. By making the purchase process easy, hassle free and preventing post-sale issues.
Answer:
By creating value in the first phase of the relationship by helping transactional customers solve complex problems.
Explanation:
Transactional customers are this that are focused primarily on the transaction they are engaged in.
They do extensive research on order to get some expertise on a product. Therefore they do not focus on enjoying the sales process. Only the beginning of the process that involves pricing, negotiation, and to discover great products.
To retain such customers it is important to make a good impression at the early stage by creating value in the first phase of the relationship and helping them solve complex problems.
This will satisfy their need for research into a product or service.
They will keep coming back for such assistance.
What management function is to ensure that all factors of production are available to departments
Use General Mills financial statements to answer questions in this section. All answers should be for the most recent fiscal year unless otherwise stated. For all questions in this section, enter all numbers exactly as they appear in the financial statements. This includes intermediate calculations. If it is stated as a decimal in the financials, use the same decimal in your answer. Answer without dollar signs and other symbols.
Answer:
27.4 days
Explanation:
Accounts receivable turnover days :
365 / Receivable turnover ratio
Receivable turnover ratio :
Sales / Average accounts receivables
12,442,000,000 / 932,500,000 = 13.34
Account receivable turnover days :
365 / 13.34 = 27.4 days
Andrews Company manufactures a line of office chairs. Each chair takes $18 of direct materials and uses 1.9 direct labor hours at $18 per direct labor hour. The variable overhead rate is $1.00 per direct labor hour, and the fixed overhead rate is $1.50 per direct labor hour. Andrews expects to have 640 chairs in ending inventory. There is no beginning inventory of office chairs.
Prepare a cost of goods sold budget for Andrews Company.
Answer:
See below
Explanation:
Direct materials :
$18
Direct labor :
1.9 hours × $18 labor costs
$34.2
Overhead
1.9 labor hours × ($1.50 fixed rate + $1.0 variable rate)
$4.75
Total unit cost
$18 + $34.2 + $4.75
$56.95
Cost to produce 640 chairs :
640 chairs × $56.95 per chair = $36,448
In 2019, Vaughn sold 3000 units at $500 each. Variable expenses were $250 per unit, and fixed expenses were $550000. The same selling price is expected for 2020. Vaughn is tentatively planning to invest in equipment that would increase fixed costs by 20%, while decreasing variable costs per unit by 20%. What is Vaughn’s break-even point in units for 2020? 2200. 3300. 2750. 2640.
Answer:
Break even point in units - 2020 = 2200 units
Explanation:
The break even point in units is the number of units at which the total revenue equals the total cost. We can calculate the break even point in units using the following formula,
Break even in units = Fixed Cost / Contribution margin per unit
Where,
Contribution margin per unit = Selling price per unit - Variable cost per unit
We first need to calculate the new fixed costs and variable cost per unit for 2020.
New fixed cost = 550000 * (1 + 20%)
New fixed cost = $660000
New Variable cost per unit = 250 * (1 - 20%)
New Variable cost per unit = $200 per unit
Break even point in units - 2020 = 660000 / (500 - 200)
Break even point in units - 2020 = 2200 units
Fitz Company reports the following information. Use the indirect method to prepare only the operating activities section of its statement of cash flows for the year ended December 31, 2015. (Amounts to be deducted should be indicated with a minus sign.)
Selected 2015 Income Statement Data Selected Year-Ned 2015 Balance Sheet Data
Net income $397,000 Accounts receivable decrease $142,900
Depreciation expense 49,200 Inventory decrease 48,500
Amortization expense 7,500 Prepaid expenses increase 4,800
Gain on sale of plant assetes 6600 Accounts payable decrease 9,400
Salaries payable increase 1,600
Answer and Explanation:
The preparation of the operating activities is presented below:
cash flow from operating activities
Net income $397,000
Add: Depreciation expense $49,200
Add: Amortization expense $7,500
Add: Accounts receivable decrease $142,900
Less: Gain on sale of plant asset -$6,600
Add: Inventory decrease $48,500
less: Prepaid expenses increase -$4,800
Less: Accounts payable decrease -$9,400
Add: Salaries payable increase $1,600
net cash flow from operating activities $625,900
StellarFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cost of $4,500,000 on January 1, 2020. Stellar expected to complete the building by December 31, 2020. Stellar has the following debt obligations outstanding during the construction period.
Construction loan-12% interest, payable semiannually, issued December 31, 2019 $1,800,000
Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 1,350,000
Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 900,000
Required:
a. Assume that Stellar completed the office and warehouse building on December 31, 2020, as planned at a total cost of $11,440,000, and the weighted-average amount of accumulated expenditures was $7,920,000. Compute the avoidable interest on this project.
b. Compute the depreciation expense for the year ended December 31, 2021. Stellar elected to depreciate the building on a straight-line basis and determined that the asset has a useful life of 30 years and a salvage value of $660,000.
Answer:
A. $852,480
B. $387,749
Explanation:
1) Computation for the avoidable interest on this project
First step is to calculate the Avoidable interest on construction loan using this formula
Avoidable interest on construction loan = Loan Amount*Loan rate
Let plug in the formula
Avoidable interest on construction loan= $1,800,000*12%
Avoidable interest on construction loan= $216,000
Second step is to calculate the Weighted Average Interest Rate on General Loan (Amounts in $)
Loan Amount (A) Interest rate (B) Interest (A*B)
Short term loan 1,350,000 10% $135,000
Long term loan 900,000 11% 99,000
Total $2,250,000 $234,000
Weighted Average Interest rate = $234,000/$2,250,000
Weighted Average Interest rate = = 10.40%
Third step is to calculate the Avoidable Interest on Remaining Expenditure
Using this formula
Avoidable Interest on Remaining Expenditure
= (Weighted Average Accum. Exp - Construction Loan)*Weighted Avg interest rate
Let plug in the formula
Avoidable Interest on Remaining Expenditure= ($7,920,000 - $1,800,000)*10.40%
Avoidable Interest on Remaining Expenditure= $636,480
Now let calculate the Total Avoidable Interest
Total Avoidable Interest = $216,000+$636,480
Total Avoidable Interest= $852,480
Therefore the avoidable interest on this project
is $852,480
2) Computation for the depreciation expense for the year ended December 31, 2021.
First step is to calculate the Total cost of building capitalized
Total cost of building capitalized = $11,440,000+$852,480
Total cost of building capitalized = $12,292,480
Now let calculate the Depreciation Expense using this formula
Depreciation Expense = (Cost - Salvage Value)/Useful Life
Let plug in the formula
Depreciation Expense= ($12,292,480 - $660,000)/30 yrs
Depreciation Expense = $387,749 per year
Therefore the depreciation expense for the year ended December 31, 2021 is $387,749.
Bill Smith is evaluating the performance of four large-cap equity portfolios: Funds A, B, C, and D. As part of his analysis, Smith computed the Sharpe ratio and the Treynor's measure for all four funds. Based on his finding, the ranks assigned to the four funds are as follows: Fund Treynor Measure Rank Sharpe Ratio Rank A 1 4 B 2 3 C 3 2 D 4 1 The difference in rankings for Funds A and D is most likely due to:
Question Completion with Options:
a. A lack of diversification in fund A as compared to fund D.
b. Different benchmarks used to evaluate each fund’s performance.
c. A difference in risk premiums.
Answer:
The difference in rankings for Funds A and D is most likely due to:
a. A lack of diversification in fund A as compared to fund D.
Explanation:
a) Data and Calculations:
Fund Treynor Measure Rank Sharpe Ratio Rank
A 1 4
B 2 3
C 3 2
D 4 1
b) The Sharpe ratio and the Treynor measure are two financial performance ratios that measure the risk-adjusted rate of return of an investment. Specifically, the Sharpe ratio helps investors to understand an investment's return profile when compared to its risk profile. On the other hand, the Treynor ratio measures the excess return generated for portfolio risk per unit.
In conclusion, the Sharpe ratio appears to be a better measure with a portfolio that is not properly diversified, while the Treynor ratio works better with a well-diversified portfolio.
The FOMC is presented with data and analysis showing that the output gap has gone from nearly 0 to large and negative. Additionally, inflation is 1.2% instead of the target rate, 2%. a. Using the floor framework, the FOMC is likely to influence interest rates by the interest rate it pays on excess reserves and its overnight borrowing from financial institutions. b. Additionally, the FOMC is likely the discount rate.
Answer:
A. decreasing
B. decrease
Using the floor framework, the FOMC is likely to influence interest rates by the interest rate it pays on excess reserves and decreasing its overnight borrowing from financial institutions. Additionally, the FOMC is likely decreasing the discount rate.
What is FOMC?The Board of Governors of the Federal Reserve System is in control of the discount rate and reserve requirements, while the Federal Open Market Committee is in charge of carrying out open market activities.
The FOMC is in charge of setting interest rate targets and controlling the money supply. The Fed has historically been motivated by two objectives: first, to maintain stable prices; and second, to achieve full employment.
When the Federal Open Market Committee raises interest rates, the economy and stock markets are impacted because borrowing costs for households and businesses might go up or down.
Thus, the answers are written above.
For more information about FOMC, click here:
https://brainly.com/question/3650924
#SPJ2
The following information pertains to Lightning Inc., at the end of December: Credit Sales $ 20,000 Accounts Payable 10,000 Accounts Receivable 11,800 Allowance for Uncollectible Accounts 400 credit Cash Sales 20,000 Lightning uses the aging method and estimates it will not collect 7% of accounts receivable not yet due, 20% of receivables up to 30 days past due, and 46% of receivables greater than 30 days past due. The accounts receivable balance of $11,800 consists of $7,500 not yet due, $2,300 up to 30 days past due, and $2,000 greater than 30 days past due. What is the appropriate amount of Bad Debt Expense
Answer:
The appropriate amount of Bad Debt Expense is $3,345.20.
Explanation:
The appropriate amount of Bad Debt Expense can be calculated as follows:
Bad debt expense = (Percentage of accounts receivable not yet due it will not collect * Accounts receivable not yet due) + (Percentage of receivables up to 30 days past due it will not collect * Amount of receivables up to 30 days past due) + (Parentage of receivables of receivables greater than 30 days past due it will not collect * Amount of receivables greater than 30 days past due) - Allowance for Uncollectible Accounts (credit) ……………………… (1)
Substituting the relevant values into equation (1), we have:
Bad debt expense = (7% * $7,500) + (20% + $2,300) + (46% * $2,000) - $400 = $3,345.20
Therefore, the appropriate amount of Bad Debt Expense is $3,345.20.