Answer:
1. Salaries earned by club employees that have not yet been recorded or paid amount to $3,700.
Dr wages expense 3,700
Cr wages payable 3,700
2. A local VFW sponsored a tournament at Rutgers Racquet Club that took place on December 22, 20x5 of the current year. At December 31, the $1,200 owed by the VFW for court rentals on December 22 had not yet been recorded or billed.
Dr accounts receivable 1,200
Cr rental fees 1,200
3. A one-year fire and flood insurance policy had been purchased on May 31. The entire premium of $7,200 was initially recorded as Prepaid Insurance.
Dr insurance expense 4,200
Cr prepaid insurance 4,200
4. Rutgers Racquet Club was built in 20x1. The cost of the building and equipment was $320,000. Depreciation of the club's building and equipment is based on an estimated life of 20 years and a salvage value of $80,000. The straight-line method of depreciation is used.
Dr depreciation expense 12,000
Cr accumulated depreciation, building 12,000
5. A 36-month bank loan in the amount of $108,000 had been obtained by Rutgers Racquet Club on December 1, 20x5. Interest is computed at an annual rate of 9%. The entire $108,000, plus all of the interest accrued over the 36-month life of the loan, is due in full on December 1, 20x8.
Dr interest expense 810
Cr interest payable 810
6. Membership dues earned in December, 20x5 for collections received at January 15, 20x5 amounts to $52,000.
Dr unearned membership dues 52,000
Cr membership dues earned 52,000
7. Unrecorded Income Taxes Expense accrued in December amounts to $16,000. This amount will not be paid until January 15, 20x6.
Dr income tax expense 16,000
Cr income tax payable 16,000
An individual has $2000 in physical assets, and $600 in cash initially. This person faces the following loss distribution to the wealth. Full insurance is available at $600
Probability Loss
0.5 0
0.1 200
0.2 400
0.1 1000
0.1 2000
The Individual can also buy partial insurance with i. a $200 deductible, or ii. 75% coinsurance, or iii. Upper limit on coverage, with the limit being $1000. The premium on each partial coverage policy is $450.
Required:
Provide a ranking of the four types of policies for the individual, in terms of preference if the preference function is given by U(FW) = LN(1+FW), where FW is final wealth of the individual.
Answer with Explanation:
Probability Expected Loss Loss Forecast
0.5 0 0
0.1 200 20
0.2 400 80
0.1 1000 100
0.1 2000 200
1.00 Total 400
Now,
A. Final Wealth with no Insurance = Physical Assets of the person + Cash Assets - Total Loss Forecast
By putting values, we have:
Final Wealth with no Insurance = $2,000 + $600 - $400 = $2,200
B. For Full insurance, we will not consider expected loss because we will receive Insurance Premium instead:
Final Wealth with Full Insurance = Physical Assets + Cash Assets - Insurance Premium
By putting values, we have:
Final Wealth with Full Insurance = $2,000 + $600 - $600 = $2,000
C. Final Wealth with Partial Insurance and $200 deductibles = Physical Assets + Cash Assets - Insurance Premium For Partial Coverage - Deductible
By putting values, we have:
Final Wealth with Partial Insurance and $200 deductibles = $2,000 + $600 - $450 - $200 = $1,950
D. Final Wealth with 75% Co-insurance = Physical Assets + Cash Assets - Insurance Premium - Co-payment
By putting values, we have:
Final Wealth with 75% Co-Insurance = $2,000 + $600 - $450 - (75% * $400)
= $1,850
E. Final Wealth with Partial Insurance and $1,000 Upper Limit = Physical Assets + Cash Assets - Insurance Premium - Maximum Loss Expected
By putting values, we have:
= $2,000 + $600 - $450 - (Probability 0.1 * $2,000) = $1950
From the above, we can say that the best option here in descending order is as under:
1. A. Final Wealth with no Insurance
2. B. With Full insurance
3. C. Final Wealth with Partial Insurance and $200 deductibles & E. Final Wealth with Partial Insurance and $1,000 Upper Limit
4. E. Final Wealth with Partial Insurance and $1,000 Upper Limit
If the cross-price elasticity of demand between Good A and Good B is 3, the price of Good B increases, and the price elasticity of demand for Good B is inelastic, we can expect to see a(n) ________ change in the quantity demanded for Good A. Group of answer choices
Answer:
INCREASE
There are no options available, but since the cross price elasticity of demand is positive, that means that goods A and B are substitute products. An increase in the price of good B will increase the quantity demanded for good A. If the cross price elasticity had been negative, then they would be complement goods, and an increase in the price of one of them would decrease the quantity demanded of both.
Cari created a list of ways to reduce her spending. Which activity should she omit from her list? Choose the correct answer below. use less expensive places for services such as haircuts wear items of clothing for an extra season buy store brands instead of name brands for food and other items rely on friends to treat me when I am out of money
Answer:
b
Explanation:
Major improvements in computer information technology in the 1990s fueled an increase in investment demand in the United States (a large open economy). Graphically illustrate the effect of an increase of U.S. investment using the Large Open Economy Model. Clearly label the axes and curves in each of your graphs in the model. Clearly indicate the direction of any shifts in the curves.
Answer and Explanation:
Please find attached
• What are the advantages and disadvantages of owning versus outsourcing for each of these components (staff, computer servers, software licensing, and data storage)?
Answer:
Explanation below
Explanation:
Outsourcing simply involves the act of contracting our certain business activities and processes to third-party providers.
Staff
When you outsource your staff, you can be able to save cots and use the freed capital for other things but the disadvantage would certainly be around the issue of confidentiality of business information.
When you outsource computer servers, software licensing, and data storage, you would gain access to world-class capabilities because the third-party providers would likely provide them to meet their customers.
There would also be shared risks as part of the benefits. The disadvantages could include loss of control. People who discourage outsourcing of these functions are of the opinion that third-party vendor cannot be able to match the level of responsiveness and levels of services that could be offered by an in-house team
when pysical changes in materials happened, there is?
I. Formation of new product or material
II. No formation of new product or material
III. Formation of new shape
IV. Formation of new color
A. I, III and IV
B. II only
C. III and IV
D. II, III and IV
A machine was purchased for $35,500, having a useful life of 10 years, and a residual value of $6,000. Compute the annual depreciation expense using the straight-line method.
Answer:
Annual depreciation= $2,950
Explanation:
Giving the following information:
A machine was purchased for $35,500, having a useful life of 10 years, and a residual value of $6,000.
To calculate the depreciation expense under the straight-line method, we need to use the following formula:
Annual depreciation= (original cost - salvage value)/estimated life (years)
Annual depreciation= (35,500 - 6,000) / 10
Annual depreciation= $2,950
Deferred tax liability $ 355,000 $ 463,000 The income statement reported tax expense for Year 2 in the amount of $580,000. Required: 1. What was the amount of income taxes payable for Year 2
Answer: $472,000
Explanation:
Deferred Tax Liability arises as a result of the different accounting methods used by Companies and by the Government for taxation.
Deferred tax liabilities are taxes that are owed to the Government due to the company using the Accrual system but as the Government uses the Cash basis, they have not yet recognised this tax.
The Tax Payable in Year 2 is;
= Reported Tax Expense - increase in Deferred Tax liability
= 580,000 - (463,000 - 355,000)
= $472,000
Which components should Enterprise Free Cash Flows include? I. Capital expenditures II. Financing costs III. Taxes IV. Working capital requirements
Answer:
I , III and IV
Explanation:
The free cash flow is the cash flow in which the cash is left after paying off the operating expenses and the capital structure
Free cash flow is
= EBIT × (1 - tax rate) + depreciation & Amortization - changes in net working capital - capital expenditure
Therefore, the correct option is I, III and IV and the same is to be considered
Pitbull Construction Corporation applies IFRS, has equipment that it can reliably measure fair value of, and has chosen to apply the revaluation model to valuing this equipment on its accounting records. The carrying value of this equipment on Pitbull's books at the end of last year, December 31, 20X1, was $200,000. At the end of this year, December 31, 20X2, due to decreased demand for the equipment, especially when resold as used, the fair value is $150,000. For the year 20X2, in relation to this equipment for which Pitbull has chosen to apply the revaluation method, Pitbull must:_________
Answer and Explanation:
If there is decrease in fair value of an asset as is seen in the example with Pitbull corporation, we decrease asset revaluation reserve in the balance sheet by the value reduced $50000 here to recognise new carrying value of the asset and then debit the expenses of revaluation to the income statement or profit and loss account. If there was an increase in fair value, revaluation would add to retained earnings in balance sheet and income in income statement
The city of Belgrade, Serbia, is contemplating building a second airport to relieve congestion at the main airport and is considering two potential sites, X and Y. Hard Rock Hotels would like to purchase land to build a hotel at the new airport. The value of land has been rising in anticipation and is expected to skyrocket once the city decides between sites X and Y. Consequently, Hard Rock would like to purchase land now. Hard Rock will sell the land if the city chooses not to locate the airport nearby. Hard Rock has four choices: (1) buy land at X, (2) buy land at Y, (3) buy land at both X and Y, or (4) do nothing. Hard Rock has collected the following data (which are in millions of euros):
Site X Site Y
Current purchase price 29 18
Profits if airport & hotel built at this site 35 30
Sale price if airport not built at this site 8 4
Hard Rock determines there is a 55% chance the airport will be built at X (hence, a 45% chance it will be built at Y)
Set up a decision table (in millions of Euros) (enter as a whole number and include minus sign if necessary)
State of Nature
Alternatives Airport at X Airport at Y
buy land at X
buy land at Y
buy land at both X & Y
Do nothing
Probability 0.55 0.45
Answer:
Alternatives Airport at X Airport at Y
Buy land at X 6 -14
Buy land at Y -21 12
Buy land at X and Y -15 -2
Do nothing 0 0
probability 0.55 0.45
Payoff if you buy land at X = (0.55 x 6) + (0.45 x -) = -3
Payoff if you buy land at Y = (0.55 x -21) + (0.45 x 12) = -6.15
Payoff if you buy land at X and Y = (0.55 x -15) + (0.45 x -2) = -9.15
Payoff for doing nothing = 0
The best option is simply doing nothing. The risks are too high, the potential losses are very large and the benefits are really low.
The inventory of a large grocery store client is material, and it is the largest current asset on the balance sheet. The cost of inventory items ranges from very small amounts (like individual candy at the checkout line) to larger amounts (like prime meat and specialty deli items). Typical risks for a grocery store are theft and spoilage of inventory. During the second quarter, the client caught three employees in a scheme of stealing produce and meats from the store and selling them, at a discount, to friends and family. Based on an investigation by authorities and store management, the scheme had been operating for about two months.
Required:
Based on the information, evaluate which accounts and assertions are at risk of misstatement.
Answer:
The auditor of the large grocery store can identify the accounts at risk of misstatement to include Inventory account, Cost of Goods Sold account, and Accounts Payable account. They have some relationships. A misstatement in the Inventory account will lead to a misstatement in the Cost of Goods Sold, which eventually affects the Net Income.
The auditor should be aware that the assertions that are at risk of misstatement include existence, completeness, accuracy and valuation, and disclosure of Inventory. Assuming that the pilfering scheme had gone on for more months, the employees could have devised more sinister schemes.
Explanation:
The management of this large grocery store must attest to the assertions of existence, completeness, rights and obligations, accuracy and valuation, and presentation and disclosure with regard to the accuracy of the information contained in the financial statements: the balance sheet, income statement, and statement of cash flows. This implies that its management must declare that it has truthfully measured and presented the financial information about its activities.
Larner Corporation is a diversified manufacturer of industrial goods. The company's activity-based costing system contains the following six activity cost pools and activity rates:
Activity Cost Pool Activity Rates
Labor-related $5.00 per direct labor-hour
Machine-related $10.00 per machine-hour
Machine setups $30.00 per setup
Production orders $200.00 per order
Shipments $140.00 per shipment
General factory $10.00 per direct labor-hour
Cost and activity data have been supplied for the following products:
J78 B52
Direct materials cost per unit $5.50 $20.00
Direct labor cost per unit $4.25 $7.00
Number of units produced per year 2,000 200
Total Expected Activity
J78 B52
Direct labor-hours 1,500 50
Machine-hours 2,600 30
Machine setups 6 1
Production orders 8 1
Shipments 8 1
Required:
Compute the unit product cost of each product listed above.
Answer:
J78= $35.45
B52= $34.2
Explanation:
First, we need to allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
J78:
Labor-related= 5*1,500= 7,500
Machine-related= 10*2,600= 26,000
Machine setups= 30*6= 180
Production orders= 200*8= 1,600
Shipments= 140*8= 1,120
General factory= 10*1,500= 15,000
Total allocated overhead= $51,400
Unitary allocated overhead= 51,400/2,000= $25.7
B52:
Labor-related= 5*50= 250
Machine-related= 10*30= 300
Machine setups= 30*1= 30
Production orders= 200*1= 200
Shipments= 140*1= 140
General factory= 10*50= 500
Total allocated overhead= $1,420
Unitary allocated overhead= 1,420/200= $7.1
Finally, the unitary cost:
J78= 5.5 + 4.2 + 25.7= $35.45
B52= 20 + 7 + 7.2= $34.2
Ming borrows X for 10 years at an annual effective interest rate of 8%. If he pays the principal and accumulated interest in one lump sum at the end of 10 years, he would pay 468.05 more in interest than if he repaid the loan with 10 level payments at the end of each year. Calculate X.
Answer:
X = $700
Explanation:
the future value of X = X · (1 + 8%)¹⁰ = 2.158925X
X = annual payment · 6.7101 (PV annuity factor, 8%, 10 periods)
annual payment = X / 6.7101
2.158925X = 10 annual payments + 468.05
2.158925X = 10X/6.7101 + 468.05
2.158925X = 1.490291X + 468.05
0.668634X = 468.05
X = 468.05 / 0.668634 = $700
if you payback the loan in one lump sum at the end of 10 years, you will pay = $700 x 2.158925 = $1,511.25
or you could make 10 annual payments = $700 / 6.7101 = $104.32, in total you would pay $1,043.20
the difference between both = $1,511.25 - $1,043.20 = $468.05
On June 30, 2021, Georgia-Atlantic, Inc. leased warehouse equipment from IC Leasing Corporation. The lease agreement calls for Georgia-Atlantic to make semiannual lease payments of $562,907 over a three-year lease term, payable each June 30 and December 31, with the first payment at June 30, 2021. Georgia-Atlantic's incremental borrowing rate is 10%, the same rate IC uses to calculate lease payment amounts. Amortization is recorded on a straight-line basis at the end of each fiscal year. The fair value of the equipment is $3 million.
Required:
a. Determine the present value of the lease payments at June 30, 2021 that Georgia-Atlantic uses to record the right-of-use asset and lease liability.
b. What pretax amounts related to the lease would Georgia-Atlantic report in its balance sheet at December 31, 2021
Answer:
1. $3,000,000
2. Liability $1,996,041
Asset$2,500,000
Explanation:
1. Calculation to Determine the present value of the lease payments at June 30, 2021
Present value of lease payments will be calculated as : $562,907 × 5.32948
(Present value of an annuity due of $1:
n = 6, i = 5% is 5.32948)
Present value of lease payments = $3,000,000
Therefore the Present value of lease payments will be $3,000,000
2. Calculation to Determine the pretax amounts related to the lease that Georgia-Atlantic would report in its balance sheet at December 31, 2021
Liability at December 31, 2021
Initial balance, June 30, 2021 3,000,000
June 30, 2021 Reduction(562,907)
Dec. 31, 2021 reduction (441052)
[562,907-(3,000,000-562,907)*5%]
December 31, 2021 NET LIABILITY $1,996,041
ASSETS at December 31, 2021
Initial balance, June 30, 2021 3,000,000
Accumulated depreciation at Dec. 31, 2021 (500,000)
(3000000/3*1/2)
December 31, 2021 ASSETS $2,500,000
Therefore the pretax amounts related to the lease that Georgia-Atlantic would report in its balance sheet at December 31, 2021 will be : Liability $1,996,041
Asset$2,500,000
Which of the following changes in retained earnings during a period will be reported in the financing activities section of the statement of cash flows? Declaration and payment of a cash dividend during the period. Net income for the period.
Answer:
Net income for the period.
Explanation:
the statement of cash flow is a financial statement which gives a summary of amount of money or money equivalents that are going into a company and also going out of the company. it gives a measurement of how well the cash position is being managed by the company. the net income for the period is going to be reported in the section called financing activities.
MotorCar, a major automobile company headquartered in Detroit, is concerned about being left behind in the race to produce autonomous vehicles. There remains much uncertainty regarding the future of autonomous vehicle technology. Some industry experts say fully self-driving cars could be brought to market within a couple of years. Others believe the technology could take decades to develop. And still others are skeptical that the technology will ever be safe enough to bring to the automobile mass market. Further, in addition to safety and technological hurdles, there are regulatory obstacles as well. However, MotorCar has decided that it needs to innovate.
The company is considering (1) increasing funding to its existing R&D department to expand to the development of AI (artificial intelligence) technology, needed for self-driving vehicles; (2) launching a fully owned subsidiary (a new company that it owns and controls) focused exclusively on AI; or (3) partnering with a major Silicon Valley tech company that has already made considerable progress on AI technology.
Required:
What do you see as some of the potential benefits and risks of these different organizational approaches?
Answer:
(1) increasing funding to its existing R&D department to expand to the development of AI (artificial intelligence) technology, needed for self-driving vehicles
This strategy would produce the benefit of puttinig the company on the edge of the development of AI in order to produce driverless vehicles.
The risk is that the investment could be too high for the initial benefit, since there is no certainty that driveless cars will be in the market in the short-term.
(2) launching a fully owned subsidiary (a new company that it owns and controls) focused exclusively on AI
This strategy would produce a similar benefit as the strategy above. However, it could also benefit from a little bit less administrative control because in this case, the AI development would be in charge of a subsidiary, not a division.
The risk is the same as above: initial investments may be too high for the initial benefits.
(3) partnering with a major Silicon Valley tech company that has already made considerable progress on AI technology.
This strategy produces the benefit of requiring less investment while still putting the company on the edge of AI research. However, the risk lies in loss of control over the thecnology, and possible future conflicts with the partner company.
Presented below are four statements which you are to identify as true or false.
1. GAAP is the term used to indicate the whole body of FASB authoritative literature.
2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements.
3. The primary governmental body that has influence over the FASB is the SEC.
4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard.
Answer:
1. GAAP is the term used to indicate the whole body of FASB authoritative literature. TRUE.
The Financial Accounting Standards Board are the authors of the GAAP and as such GAAP is used to indicate the whole body of their literature.
2. Any company claiming compliance with GAAP must comply with most standards and interpretations but does not have to follow the disclosure requirements. FALSE.
To claim compliance with GAAP, all standards and interpretations including Disclosure requirements should be followed.
3. The primary governmental body that has influence over the FASB is the SEC. TRUE.
The Securities and Exchange Commission (SEC) is the Government body that is meant to oversee the application of Accounting standards and as such, they have influence over the FASB.
4. The FASB has a government mandate and therefore does not have to follow due process in issuing a standard. FALSE.
Even though they have a Government mandate, the FASB must follow due process when establishing principles so that people might be able to contribute to or criticize the guidelines should they please.
In which category do commodities belong?
long-term investment only
short-term investment only
either short- or long-term investment
neither short- nor long-term investment
Answer:
c. either short- or long-term investment
Explanation:
The commodities are belongs to either short- or long-term investment.
What is commodity?Commodity is defined as a basic good that is used in trading or in commerce. It can be alternated with the another goods at the same time of trading or commerce.
A commodity is either short- or long-term investment because it is fully based on the intention for the use of the commodity, if the commodity is used for the short term, then it will be called as the short term investments and vice versa.
Therefore, option C is correct.
Learn more about the commodity, refer to:
https://brainly.com/question/23132703
#SPJ2
What part of your social media strategy is working against your goals?
According to Mintzberg, managers averaged ____ written and _____ verbal contacts per day with most of these activities lasting less than ____ minutes. Group of answer choices
Answer:
1. 36
2. 16
3. 9
Explanation:
According to Henry Mintzberg, a who is known as a professor of Management of Studies. In his model commonly referred to as organizational configurations framework, he concluded that, managers averaged THIRTY SIX written and SIXTEEN verbal contacts per day with most of these activities lasting less than NINE minutes.
Hence, in this case, the correct answer is 36 : 16 : 9
Your company has sales of this year and cost of goods sold of . You forecast sales to increase to next year. Using the percent of sales method, forecast next year's cost of goods sold. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career.
The forecasted cost of goods sold (COGS) is $________
Complete question :
Your company has sales of $101,500 this year and cost of goods sold of $66,300. You forecast sales to increase to $118,900 next year. Using the percent of sales method, forecast next year's cost of goods sold. The Tax Cuts and Jobs Act of 2017 temporarily allows 100% bonus depreciation (effectively expensing capital expenditures). However, we will still include depreciation forecasting in this chapter and in these problems in anticipation of the return of standard depreciation practices during your career The forecasted cost of goods sold (COGS) is $ ___________ (Round to the nearest dollar.)
Answer:
$77,666
Explanation:
Given the following :
Sales for the year = $101,500
Cost of goods sold =$66,300
Forecasted increase in sales for next year = $118,900
Forecasted cost of goods sold for next year =?
Percentage cost of goods sold for this year:
Cost of goods sold / sales for this year
$66300/$101500
= 0.6532019
Forecasted cost of goods sold for next year:
(Forecasted increase in next year's sale * % cost of goods sold for this year)
= 118,900 * 0.6532019
= $77665.714
= $77666 ( nearest dollar)
On January 1, 2020 Herald acquires 100% of Tribune and will operate Tribune as a wholly owned subsidiary. Herald's purchase price was less than the fair value of the net assets of Tribune. How is this handled
Answer:
When the purchase price is lower than the fair market value, accountants generally refer to this as negative goodwill. All negative goodwill must be reported as a gain.
Another way to refer to this type of situation is a bargain purchase (lower price than FMV).
As of June 30, Year 1, the bank statement showed an ending balance of $17,616. The unadjusted Cash account balance was $16,893. The following information is available: 1. Deposit in transit, $2,785. 2. Credit memo in bank statement for interest earned in June, $10. 3. Outstanding check, $3,504. 4. Debit memo for service charge. $6. Required Determine the true cash balance by preparing a bank reconciliation as of June 30, Year 1, using the preceding information, (Negative amounts should be indicated with minus sign.)
Bank Reconciliation
Unadjusted bank balance 6/30/Year 1
True cash balance 6/30/Year 1
Unadjusted book balance 6/30/Year 1
True cash balance 6/30/Year 1
Answer:
cash account reconciliation:
cash account balance $16,893
+ earned interest $10
- bank fees ($6)
reconciled cash account $16,897
bank account reconciliation:
bank account balance $17,616
+ deposits in transit $2,785
- outstanding check ($3,504)
reconciled bank account $16,897
After the accounts have been reconciled, both must have the same balance. If not, then you must check your answer and recalculate until both match.
On August 20th, one of your employees comes to you with a vacation request. The employee’s available vacation time expires on September 1st, however she wants to take her vacation between September 20th through the 25th.
She asks you to submit her vacation request to the corporate office for the week prior to September 1st, and wants you to not schedule her for the days between the 20th and 25th, and she wants her "vacation" pay for those days.
Would you do it? Why? or Why Not?
Answer:
No
Explanation:
Her vacation is expired and therefore invalid. Also she is requesting for a pay during this period which counters Amy form of sympathy for this employee. However, depending on the relationship the employee has with her employer, there might be a compromise especially if the employee really does need the vacation as she may be burned out or may have postponed vacation till expiration for the interest of the company
Cheyenne Company has decided to expand its operations. The bookkeeper recently completed the following balance sheet in order to obtain additional funds for expansion.
CHEYENNE COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020
Current assets
Cash $237,000
Accounts receivable (net) 347,000
Inventory (lower-of-average-cost-or-market) 408,000
Equity investments (marketable)-at cost (fair value $127,000) 147,000
Property, plant, and equipment Buildings (net) 577,000
Equipment (net) 167,000
Land held for future use 182,000
Intangible assets Goodwill 87,000
Cash surrender value of life insurance 97,000
Prepaid expenses 19,000
Current liabilities Accounts payable 142,000
Notes payable (due next year) 132,000
Pension obligation 89,000
Rent payable 56,000
Premium on bonds payable 60,000
Long-term liabilities Bonds payable 507,000
Stockholders’ equity Common stock, $1.00 par, authorized 400,000 shares, issued 297,000 297,000
Additional paid-in capital 167,000 Retained earnings.
Required:
Prepare a revised balance sheet given the available information.
Answer:
Cheyenne Company
CHEYENNE COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020
ASSETS
Current assets :
Cash $237,000
Accounts receivable (net) 347,000
Inventory (LCM) 408,000
Marketable Investments 127,000
Cash surrender
value of life insurance 97,000
Prepaid expenses 19,000
Total current assets $1,235,000 $1,235,000
Property, plant, and
equipment Buildings (net) 577,000
Equipment (net) 167,000
Land held for future use 182,000
Intangible assets Goodwill 87,000
Total long-term assets $1,013,000 $1,013,000
Total assets $2,248,000
LIABILITIES & EQUITY
Current liabilities:
Accounts payable 142,000
Notes payable (short-term) 132,000
Pension obligation 89,000
Rent payable 56,000
Premium on bonds payable 60,000
Total current liabilities $479,000 $479,000
Long-term liabilities
Bonds payable 507,000 $507,000
Total liabilities $986,000
Stockholders’ equity
Common stock, $1.00 par,
authorized 400,000 shares,
issued 297,000 297,000
Additional paid-in capital 167,000
Retained earnings 798,000
Total Equity $1,262,000 $1,262,000
Total liabilities & Stockholders' equity $2,248,000
Explanation:
CHEYENNE COMPANY BALANCE SHEET FOR THE YEAR ENDED 2020
Current assets
Cash $237,000
Accounts receivable (net) 347,000
Inventory (LCM) 408,000
Marketable Investments 127,000
Cash surrender
value of life insurance 97,000
Prepaid expenses 19,000
Property, plant, and
equipment Buildings (net) 577,000
Equipment (net) 167,000
Land held for future use 182,000
Intangible assets Goodwill 87,000
Current liabilities
Accounts payable 142,000
Notes payable (short-term) 132,000
Pension obligation 89,000
Rent payable 56,000
Premium on bonds payable 60,000
Long-term liabilities
Bonds payable 507,000
Stockholders’ equity
Common stock, $1.00 par,
authorized 400,000 shares,
issued 297,000 297,000
Additional paid-in capital 167,000
Retained earnings ?
Total assets - Liabilities = Total Equity
= 2,248,000 - 986,000
= 1,262,000
Retained Earnings = Total Equity - (Common Stock + APIC)
= 1,262,000 - (297,000 + 167,000)
= $798,000
n California, any apartment building with this many units must have an onsite manager, who is also known as a residential manager. What is the number of units to which this statement refers? Ten or more. Twelve or more. Sixteen or more. Twenty or more+.
Answer:
Sixteen or more.
Explanation:
It is mandatory by law in California to have an onsite manager, housekeeper, janitor, or another responsible person reside in a building with more than 16 apartments. Onsite means the manager or caretaker must be a resident in the building complex. The manager's role is to attend to the tenant's needs and offer protection to their properties. This requirement applies if the landlord is not a resident in the apartment building.
Cascade Company was started on January 1, 2016, when it acquired $60,000 cash from the owners. During 2016, the company earned cash revenues of $35,000 and incurred cash expenses of $18,100. The company also paid cash distributions of $4,000.
Required:
Prepare a 2016 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions.
a. Cascade is a sole proprietorship owned by Carl Cascade.
b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade. Carl Cascade invested $24,000 and Beth Cascade invested $36,000 of the $60,000 cash that was used to start the business. Beth was expected to assume the vast majority of the responsibility for operating the business. The partnership agreement called for Beth to receive 60 percent of the profits and Carl to get the remaining 40 percent. With regard to the $4,000 distribution, Beth withdrew $2,400 from the business and Carl withdrew $1,600.
c. Cascade is a corporation. It issued 5,000 shares of $5 par common stock
for $60,000 cash to start the business.
Answer:
the income statement is the same for all types of businesses:
Revenues $35,000
Expenses ($18,100)
Net income $16,900
a. Cascade is a sole proprietorship owned by Carl Cascade.
statement of equity
Carl Cascade, capital beginning balance $0
paid in capital, Carl Cascade $60,000
net income $16,900
subtotal $76,900
Carl Cascade, drawings (4,000)
Carl Cascade, capital ending balance $72,900
balance sheet
Assets
Cash $72,900
Equity
Carl Cascade, capital $72,900
statement of cash flows
Cash flow from operating activities $16,900
Cash flow from financing activities:
Paid in capital $60,000
Drawings ($4,000)
net cash from financing activities $56,000
net cash increase $72,900
beginning cash balance $0
ending cash balance $72,900
b. Cascade is a partnership with two partners, Carl Cascade and Beth Cascade.
statement of equity
Carl Cascade, capital beginning balance $0
Beth Cascade, capital beginning balance $0
paid in capital, Carl Cascade $24,000
paid in capital, Beth Cascade $36,000
net income $16,900
subtotal $76,900
Carl Cascade, drawings (1,600)
Beth Cascade, drawings (2,400)
Carl Cascade, capital ending balance $29,160
Beth Cascade, capital ending balance $43,740
balance sheet
Assets
Cash $72,900
Equity
Carl Cascade $29,160
Beth Cascade $43,740
total equity $72,900
statement of cash flows
Cash flow from operating activities $16,900
Cash flow from financing activities:
Paid in capital $60,000
Drawings ($4,000)
net cash from financing activities $56,000
net cash increase $72,900
beginning cash balance $0
ending cash balance $72,900
c. Cascade is a corporation.
statement of equity
Common stock beginning balance $0
Common stock issued (5,000 stocks) $25,000
Additional paid in capital $35,000
net income $16,900
subtotal $76,900
Dividends (4,000)
Common stock ending balance $25,000
Additional paid in capital ending balance $35,000
Retained earnings $12,900
balance sheet
Assets
Cash $72,900
Equity
Common stock $25,000
Additional paid in capital $35,000
Retained earnings $12,900
total equity $72,900
statement of cash flows
Cash flow from operating activities $16,900
Cash flow from financing activities:
Common stocks issued $25,000
Additional paid in capital $35,000
Dividends ($4,000)
net cash from financing activities $56,000
net cash increase $72,900
beginning cash balance $0
ending cash balance $72,900
There are 3 factories on the Momiss River. Each emits 2 types of pollutants, labeled P1 and P2, into the river. If the waste from each factory is processed, the pollution in the river can be reduced. It costs $1500 to process a ton of factory 1 waste, and each ton processed reduces the amount of P1 by 0.10 ton and the amount of P2 by 0.45 ton. It costs $1000 to process a ton of factory 2 waste, and each ton processed reduces the amount of P1 by 0.20 ton and the amount of P2 by 0.25 ton. It costs $2000 to process a ton of factory 3 waste, and each ton processed reduces the amount of P1 by 0.40 ton and the amount of P2 by 0.30 ton. The state wants to reduce the amount of P1 in the river by at least 30 tons and the amount of P2 by at least 40 tons.
Required:
Formulate an LP that will minimize the cost of reducing pollution by the desired amounts. Do you think that the LP assumptions (Proportionality, Additivity, Divisibility, and Certainty) are reasonable for this problem?
Answer:
Kindly check explanation
Explanation:
Using table for our evaluation :
____________POLLUTANT
Factories___P1 ______P2 ____COST
__1_______0.1______ 0.45 ___ 1500
__2______ 0.2 _____ 0.25 ____1000
__3 ______0.40 ____ 0.30 ____2000
_________ ≥ 30 ____ ≥ 40 _____ z
Let amount of waste produced by Factories 1, 2 and 3 equal f1, f2 and f3 respectively.
Linear Program that will minimize the cost of reducing pollution by the desired amounts
Min cost:
min z = 1500f1 + 1000f2 + 2000f3
0.1f1 + 0.2f2 + 0.4f3 ≥ 30
0.45f1 + 0.25f2 + 0.3f3 ≥ 40
f1, f2, f3 ≥ 0
Prepare an answer sheet with the column headings that follow. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category.
Assest Liaabilities Net income
a. Recorded $200 Accumulated Depreciation
of depreciation Depreciation Expense
expense. -200 -200
a. Recorded $200 of depreciation expense.
b. Sold land that had originally cost $9,000 for $12,000 in cash.
c. Acquired a new machine under a financing lease.
d. The present value of future lease payments, discounted at 11%, was $11,000. Recorded the first annual payment of $2,500 for the leased machine (in part c).
e. Recorded a $6,600 payment for the cost of developing and registering a trademark. Recognized periodic amortization for the trademark (in part e) using a 40-year useful life. Sold used production equipment for $16,000 in cash.
f. The equipment originally cost $44,000, and the accumulated depreciation account has an unadjusted balance of $23,400.
g. It was determined that a $1,300 year-to-date depreciation entry must be recorded before the sale transaction can be recorded. Record the adjustment and the sale.
Answer:
Accounts Assets Liabilities Net income
a. Depreciation Expense -$200 -$200
b. Land / Cash -$9,000 + $12,000 + $3,000
c. Equipment/Lease Liability +$11,000 +$11,000
d. Cash /Lease Liability -$2,500 -$2,500
e. Cash /Trademark -$6,600 + $6,600
Amortization Expense -$165
f. & g. Cash /Equipment +$16,000 -$19,300 -$3,300
Explanation:
b. The land was sold with a gain of $3,000 ($12,000 - 9,000)
e. The trademark's amortization expense = $6,600/40 = $165 per year.
f and g. The Accounts involved are:
1. Cash +$16,000 for the sale.
2. Equipment has a debit balance of $44,000 and a credit balance of $23,400 plus Depreciation expense of $1,300. These give a net balance of $19,300. The equipment was sold for $16,000, recording a loss of $3,300.
3. Loss from sale of equipment = $3,300 as determined above.