Answer:
economics is the study of how society uses its limited resources. Economics is a social science that deals with the production, distribution, and consumption of goods and services.
Gradwell, Inc., manufactures and sells two products: Product K8 and Product I4. Data concerning the expected production of each product and the expected total direct labor-hours (DLHs) required to produce that output appear below:
Expected Direct labor hours Total direct labor hours
production per unit
product K8 300 5.0 1,500
product I4 900 3.0 2,700
total direct labor hours 4,200
The direct labor rate is $17.20 per DLH. The direct materials cost per unit for each product is given below:
Direct materials
cost per unit
product K8 $150.20
product I4 $243.70
The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity:
Estimated Expected activity
Activity Cost Pools Activity Measures Overhead
Cost Product K8 Product I4 Total
labor related DLHs $176,064 1,500 2,700 4,200
machine setups setups 71,290 400 600 1,000
order size MHs 121,396 4,300 4,600 8,900
$368,750
The overhead applied to each unit of Product I4 under activity-based costing is closest to:_______.
a. $543.49 per unit.
b. $675.20 per unit.
c. $736.36 per unit.
d. $431.71 per unit.
Answer:
Gradwell, Inc.
The overhead applied to each unit of Product I4 under activity-based costing is closest to:_______.
$243.00 per unit.
Explanation:
a) Data and Calculations:
production per unit DL rate Total Labor Cost
product K8 300 5.0 1,500 $17.20 $25,800
product I4 900 3.0 2,700 $17.20 $46,440
total direct labor hours 4,200 $17.20 $72,240
production per unit Direct Materials Total Material Cost
product K8 300 $150.20 $45,060
product I4 900 $243.70 219,330
Total direct materials costs = $264,390
Estimated Expected activity
Activity Cost Pools Activity Measures Overhead Product Product Total
Cost K8 I4
labor related DLHs $176,064 1,500 2,700 4,200
machine setups setups 71,290 400 600 1,000
order size MHs 121,396 4,300 4,600 8,900
Total $368,750
Overhead Cost Allocation Product Product Total
K8 I4
Labor cost $62,880 $113,184 $176,064
Machine setups 28,516 42,774 71,290
Order size 58,652 62,744 121,396
Total $150,048 $218,702 $368,750
Quantity 300 900
Overhead per unit $500.16 $243.00
A bank's actual reserve ratio is the percentage of total deposits a bank actually holds on to. It is made up of the percentage they are required to hold on to, known as the required reserve ratio, plus any extra they choose to hold on to. Suppose Dave's bank has an actual reserve ratio of 12%, and his bank makes a loan to Darlene based on the funds from Dave's deposit. How much does the money supply increase as a result of this second step
Answer:
The increase in the money supply will be "833333.33".
Explanation:
The real reserve ratio of either a lender seems to be the proportion of overall reserves another bank currently occupies onto another. It consists of the proportion they become required to secure forward with, referred to that as the reserve requirement expected, including whatever extra those who happen to retain onto this.According to the question,
The multiplier will be:
⇒ [tex]\frac{1}{RRR}[/tex]
⇒ [tex]\frac{100}{12}[/tex]
⇒ [tex]\frac{25}{3}[/tex]
So the increase will be:
⇒ [tex]100000\times \frac{25}{3}[/tex]
⇒ [tex]833333.33[/tex]
Executive Chalk is financed solely by common stock and has 25 million shares outstanding with a market price of $10 a share. It announces that it intends to issue $160 million of debt and use the proceeds to buy back common stock. Assume that the MM assumptions hold (i.e., no taxes, no costs of financial distress). a) What is the value of the firm before and after the proposed capital structure change
Answer: See explanation
Explanation:
First we will have to calculate the value of the firm before the debt issue. This will be:
= 25,000,000 × $10
= $250,000,000
We also calculate the value of the firm after after the proposed capital structure change. The value of equity will be:
= $250,000,000 - $160,000,000
= $90,000,000
Therefore, the value of debt will also be $160,000,000.
True or False: A market with several firms in operation can be a competitive, contestable market. True False The contestable market model has important policy implications. If there is concern that a market is not sufficiently competitive, what can policymakers do to increase competition in a given industry? Check all that apply. Decrease entry barriers Increase entry barriers Decrease the amount of regulation
Answer:
1. True
2. Decrease entry barriers
Decrease the amount of regulation
Explanation:
A market with several firms in operation can be a competitive market as the firms involved will compete against each other for the economic profits in the industry. The market has to have low barriers to entry for it to be contestable.
To make the industry more competitive, barriers to entry should be reduced and regulation relaxed. This will bring in more firms into this market and make it more competitive.
Michelle Duncan wants to know what price home she can afford. Her annual gross income is $54,000. She owes $810 per month on other debts and expects her property taxes and homeowners insurance to cost $170 per month. She knows she can get an 6.00%, 30-year mortgage so her mortgage payment factor is 6.00. She expects to make a 15% down payment. What is Michelle's affordable home purchase price?a. $52.940.b. $950.c. $128,560.d. $126100.e. $960.
Answer:
$143137.25
Explanation:
Given that:
The annual gross income = $54000
The monthly gross income = $54000/12
= $4500
Using the PITI guideline, a mandatory expense of 38% of monthly income is applied.
So;
Expense = $4500 × 38% = $1710
Additional Monthly debt = $810
Cost of Prop. Taxes and H.O insurance = $170
Monthly Balance left = $1710 - $(810 + 170) = $730
Mortgage payment factor = 6.00
Monthly mortgage payment = [tex]\dfrac{monthly \ balance \ left }{ Mortgage \ payment \ factor }\times 1000[/tex]
[tex]=\$ (\dfrac{730}{6.00 })\times 1000[/tex]
= $121666.67
Affordable home purchase price = [tex]\dfrac{monthly \ mortgage \ payment }{1 - percentage \ of \ down \ payment}[/tex]
[tex]= \dfrac{ \$121666.67}{1- 0.15}[/tex]
[tex]= \dfrac{\$121666.67}{0.85}[/tex]
= $143137.25
Concord Inc. took a physical inventory at the end of the year and determined that $783000 of goods were on hand. In addition, Concord, Inc. determined that $55000 of goods that were in transit that were shipped f.o.b. shipping point were actually received two days after the inventory count and that the company had $91000 of goods out on consignment. What amount should Concord report as inventory at the end of the year
Answer:
$929,000
Explanation:
Calculation for the amount that Concord should report as inventory at the end of the year
Using this formula
Inventory=Ending physical inventory+Goods in transit+Goods out on consignment
Let plug in the formula
Inventory=$783,000+$55,000+$91,000
Inventory=$929,000
Therefore the amount that Concord should report as inventory at the end of the year will be $929,000
Which of the following statements is NOT correct on service A. Services are time sensitive and cannot be stored or inventoried for future use. B. Services are acts or deeds that can be touched. C. A service system includes the service delivery process and all of the different elements of the organization required to support it. D. More people now work in the service section than in the agriculture section worldwide.
Answer:
B. Services are acts or deeds that can be touched.
Explanation:
A service can be defined as a collection of intangible goods that are being offered by a service provider to the end user in order to meet their needs or requirements.
Some of the characteristics and features of a service includes;
1. Services are time sensitive and cannot be stored or inventoried for future use.
2. A service system includes the service delivery process and all of the different elements of the organization required to support it.
3. More people now work in the service section than in the agriculture section worldwide
Hence, the statement which is not correct about service is that, services are acts or deeds that can be touched.
The tables show the annual incomes for the citizens in two countries, Melka and Sorare. Use this information to answer the questions. The Nation of Sorare Citizen Income Teddy $2,000 Kermit $50,000 Franklin $63,500 Anna $1,500 Eleanor $2,000 Edith $1,000 The Nation of Melka Citizen Income Etta $20,000 Duke $21,000 Louis $20,000 Billie $20,300 Cole $19,000 Zora $19,700 Based on the information here, which nation would you expect to have the higher Gini coefficient
Answer: The nation of Sorare
Explanation:
The Gini coefficient is a statistical measure that is used to measure income disparity/ inequality in a country.
The closer to zero the Gini coefficient is, the more equitable the income in a country is. Simply put, if more people in a nation have similar levels of income, the Gini coefficient will be smaller.
In the question, the nation of Sorare has two people earning a high amount of money while others make considerably less. This shows a high income disparity which means that the Gini coefficient here will be higher than in Melka where citizens mostly have similar incomes.
Your client has called for help with their bank feeds in QuickBooks Online. You begin by asking them to open the Banking tab in the Left Navigation bar and your client tells you that she doesn't see this option listed. What could be the reason?a. Your client doesn't have bank feeds enabledb. Your client has Business view selected in their settingsc. Your client has turned off the Banking option in their settingsd. Your client has the Simple Start subscription for QuickBooks Online
Answer: b. Your client has Business view selected in their settings
Explanation:
There are two views when it comes to Quickbooks Online: Business view and Accountant view. Accounting view is for more seasoned users who have some form of accounting training so it has more features.
Business view on the other hand is simplified for those who don't know much about accounting. It is easy to follow and some features are reordered for simplicity.
The Banking tab is one of those features and it is not openly shown in the business view so the most probably the reason your client can't see it is that she is using the Business view.
Levine Company uses the perpetual inventory system. Apr. 8 Sold merchandise for $8,800 (that had cost $6,503) and accepted the customer's Suntrust Bank Card. Suntrust charges a 4% fee. 12 Sold merchandise for $6,000 (that had cost $3,888) and accepted the customer's Continental Card. Continental charges a 2.5% fee. Prepare journal entries to record the above credit card transactions of Levine Company. (Round your answers to the nearest whole dollar amount.)
Answer:
Levine Company
Journal Entries
April 8:
Debit Cash Account $8,448
Debit Finance Charge Expense $352
Credit Sales Revenue $8,800
To record the sale of goods.
Debit Cost of Goods Sold $6,503
Credit Inventory $6,503
To record the cost of goods sold.
April 12:
Debit Cash Account $5,850
Debit Finance Charge Expense $150
Credit Sales Revenue $6,000
To record the sale of goods.
Debit Cost of Goods Sold $3,888
Credit Inventory $3,888
To record the cost of goods sold.
Explanation:
a) Data and Calculations:
April 8 Sales Revenue = $8,800
Finance charges = 4% of $8,800 = $352
Cost of goods sold = $6,503
April 12 Sales Revenue = $6,000
Finance charges = 2.5% of $6,000 = $150
Cost of goods sold = $3,888
Brad's Diner is expanding and expects operating cash flows of $32,000 a year for 4 years as a result. This expansion requires $39,000 in new fixed assets. These assets will be worthless at the end of the project. In addition, the project requires $3,000 of net working capital throughout the life of the project. What is the net present value of this expansion project at a required rate of return of 12 percent
Answer: $57,101.73
Explanation:
First find the present value of the cash inflows. The $32,000 is a constant payment so is an annuity. The net working capital will be realized at the end of the project as well.
Present value of cash inflows = (32,000 * Present value interest factor of an annuity, 4 years, 12%) + 3,000/ (1 + 12%)⁴
= (32,000 * 3.0373) + 1,906.55
= $99,101.73
NPV = Present value of inflows - Outflows
= 99,100.15 - (39,000 + 3,000)
= $57,101.73
In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales. 1. Ivanhoe Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $29,500 and sales taxes $1,475. 2. Pharoah Company does not segregate sales and sales taxes. Its register total for April 15 is $18,530, which includes a 9% sales tax.
Answer:
Requirement: Prepare the entry to record the sales transactions and related taxes.
1. Date Account Titles and Explanation Debit Credit
Apr. 10 Cash $30,975
Sales Revenue $29,500
Sales Tax Payable $1,475
(To record Cash sales along with sales tax)
2. Date Account Titles and Explanation Debit Credit
Apr. 15 Cash $18,530
Sales Revenue $17,000
Sales Tax Payable $1,530
(To record Cash sales along with sales tax)
Workings
- Total Sales along with sales tax = $18,530, Sales Tax Rate = 9%. Sales Tax Amount = 18530*(0.09/1.09) = $1,530
- Sales Without Sales Tax = $18,530 - $1,530 = $17,000
Which factor would credit card companies most likely use to determine an
applicant's creditworthiness?
A. Hourly wages
B. Languages spoken
C. Political party
D. Size of family
A factor that credit card companies would most likely use to determine an applicant's creditworthiness is Hourly wages.
Credit card issue
When you apply for a credit card, you’re required to share an array of personal information on your application. This will include details like your name, address, Social Security number and current employment status. You’ll also be asked to list your income on your application, although the type of income card issuers ask for can vary depending on the card issuer.
Determination of hourly wages
Not all credit card issuers will ask for your annual net income. Some may explicitly ask for your gross income. If you are paid an hourly wage, on the other hand, you may need to figure out your gross income using last year’s tax return or by multiplying your gross weekly income by the number of weeks you work within a year.
Thus, A factor that credit card companies would most likely use to determine an applicant's creditworthiness is Hourly wages.
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The following inventory data have been established for the Cotton Tops Inc. (1) Annual sales are 100,000 units. (2) The purchase price per unit is $2.00 (3) Carrying cost is 3% percent. (4) Cost per order placed is $10. (5) Desired safety stock is 30 days supply. Use this data to compute: (a) EOQ - 3 pts (b) Average Inventory - 2 pts (c) Maximum Inventory - 1 pt (d) Optimal number of orders per year - 1 pts (e) Total inventory cost - 3 pts
Answer:
a) in order to calculate the EOQ we do not consider safety stock since that is one time purchase.
EOQ = √(2SD / H)
S = order cost = $10
D = annual demand = 100,000 units
H = annual holding cost = $2 x 3% = $0.06
EOQ = √[(2 x $10 x 100,000) / $0.06] = √33,333.33 = 5,773.5 ≈ 5,774
b) average inventory = (5,774 / 2) + (100,000/12) = 2,887 + 8,333 = 11,220 units
c) maximum inventory = 8,333 + 5,774 = 14,107
d) optimal number of orders = 100,000 / 5,774 = 17.32 times
e) total inventory cost = (17.32 x $10) + (11,220 x $0.06) + (100,000 x $2) + (8,333 x $2) = $173.20 + $673.20 + $200,000 + $16,666 = $217,512.40
Oriole Company issued $476,000 of 10-year bonds at a discount. Prior to maturity, when the carrying value of the bonds was $454,580, the company redeemed the bonds at 97. Prepare the entry to record the redemption of the bonds.
Answer:
Date Account and Explanation Debit Credit
Bonds payable $476,000
Loss on bond redemption $7,140
(461,720 - 454,580)
Cash $461,720
(476,000 * 0.97)
Discount on bonds payable $21,420
(476,000 - 454,580)
(To record redemption of the bonds)
Clear OKRs presented by MyFitnessPal enabled other divisions of Under Armour to align themselves with what MyFitnessPal was capable of and the momentum it had. MyFitnessPal was also able to use the OKR system to align with other divisions of Under Armour.
a) true
b) false
Answer:
a) true
Explanation:
OKRs means “Objectives and Key Results.” It is an organizational collaborative and goal-setting technique used by individuals, teams, and divisions to set challenging, ambitious, and attainable goals with measurable results. OKRs are used to track progress, create alignment, and encourage engagement around measurable goals. As a goal-setting framework for defining and tracking objectives and their outcomes, OKRs are different from Key Performance Indicators (KPIs), which measure performance within a strategic framework.
Clover Corporation uses a standard costing system in which variable manufacturing overhead is assigned to production on the basis of the number of machine hours. The following data pertain to one month's operations:
Standard machine hours allowed for actual production: 3,550 MH
Actual machine hours for the month: 4,000 MH
Actual variable manufacturing overhead costs incurred: $ 80,000
Variable overhead spending variance: $ 5,450 Unfavorable
What is variable overhead rate variance?
A. S 9,450.00 unfavorable
B. S9,450.00 favorable
C. 4,000.00 unfavorable
D. 4,000.00 favorable
E. Not determinable
Answer:
D. 4,000.00 favorable
Explanation:
The formula for variable overhead spending variance provided below gives a clue on deriving the correct option.
variable overhead spending variance=actual variable spending overhead-budgeted variable spending overhead.
$5450=$ 80,000-budgeted variable spending overhead
budgeted variable spending overhead=$80,000-$5450=$74550
standard overhead rate=budgeted variable spending overhead/Standard machine hours allowed for actual production
standard overhead rate=$74550 /3550=$21
variable overhead rate variance=( standard rate* Actual machine hrs)-(actual rate*Actual machine hrs)
actual rate=Actual variable manufacturing overhead costs incurred/Actual machine hours for the month=$80,000/4000=$20
variable overhead rate variance=($21*4000)-($20*4000)=$4000(favorable since actual is lower than standard,hence, cost savings)
Barbara's employer offers health coverage to its employees. However, Barbara feels it is unaffordable and wants to apply for a health insurance premium tax credit. In order for the coverage to be deemed unaffordable in 2020, Barbara's self-only premium must exceed __ of her household income.
Answer:
9.83%
Explanation:
If the health insurance premium represents 9.83% of Barbara's income or less, it is considered affordable coverage. Only if it exceeds the 9.83% threshold, will Barbara be able to request a health insurance premium tax credit. Theoretically, if Barbara's health insurance was purchased in the Health Insurance Marketplace, the tax credit should be automatic and her premium should be lowered so that it can become affordable.
What can older aduts do to achieve high status in society?
O Take a class at local community college
O Engage in useful occupations or vocations
O Learn a new skill or hobby such as Cooking
O Participate in leisure activities such as golf or travel
Answer:
engage in useful occupations or vocations
If on November 26,2017, The Dow Jones industrial average closed at 12,743.40, which was down 237.44 that day. what was the return (in percent) of stock market that day?
Answer:
-1.83%
Explanation:
The closing price was 12,743.40, which was down by .
it means that the opening price was
$12,743.40 + $237.44 = $12,980.44.
The percentage return will be the
return/ original price x 100
=- - 237.44/12,980.44 x 100
= - 0.018291574 x 100
= - 1.83%
The Intramural Sports Club reports sales revenue of $578,000. Inventory at both the beginning and end of the year totals $110,000. The inventory turnover ratio for the year is 3.9.
What amount of gross profit does the company report in its income statement?
Answer:
$363,500
Explanation:
Gross profit = Revenue - Cost of Goods Sold.
In the case
Revenue = $578,000.
The Cost of Goods Sold: COGS
Inventory turn over = COGS/ Average turnover
Average turnover = Opening stock + closing stock/2
In this case Opening stock + Closing stock = $110,000
Average turnover = $110,000 /2 =$55,000
Therefore:
3.9 = COGS/$55,000
COGS = $55,000 x 3.9
COGS =$214,500
Gross profit = $578,000 - $214,500
Gross profit = $363,500
On May 16, Thorne Co. declares a $0.40 dividend to be paid on April 5. Thorne has 2,060,000 shares of common stock issued and outstanding. The entry recorded by the company on May 16 includes a debit to: Multiple Choice Dividends Payable and a credit to Cash for $824,000. Dividends and a credit to Dividends Payable for $824,000. Dividends Payable and a credit to Cash for $781,600. Dividends and a credit to Dividends Payable for $781,600
Answer:
b. Dividends and a credit to Dividends Payable for $824,000
Explanation:
Dividends payable = 2,060,000 shares * $0.40 per share = $824,000
Journal entry on February 16
Dividends $824,000
Dividends payable $824,000
Assets Liabilities
Total Reserves $60,000
Demand Deposits $200,000
Loans $140,000
The balance sheet above shows the financial situation for the Car central bank has set a reserve requirement of 10 percent. What is additional money Carland National Bank can create?
a. $600,000.
b. $40,000.
c. $200,000.
d. $60,000.
e. $400,000.
Answer:
b. $40,000
Explanation:
Calculation for What additional money Carland National Bank can create
Using this formula
Additional money=Total Reserves-(Demand Deposits*Reserve requirement percentage)
Let plug in the formula
Additional money = $60,000 -( $200,000*10%)
Additional money = $60,000-$20,000
Additional money = $40,000
Therefore the additional money Carland National Bank can create will be $40,000
Your would like to share some of fortune with you. offers to give you money under one of the following scenarios (you get to choose): 1. a year at the end of each of the next years 2. (lump sum) now 3. (lump sum) years from now Calculate the present value of each scenario using % interest rate. Which scenario yields the highest present value? Would your preference change if you used a % interest rate?
Answer and Explanation:
The computation is shown below:
1. In the case when the rate of interest is 6%
So, the present value is
1. For at the end of eight years, the present value of $7,000 is
= $7,000 × 6.20979
= $434,68.53 or $43,469
2. The lumpsum now is $45,000
3. The eight years from now is
= $75,000 × 0.62741
= $47,00,55.75 or $47,056
Thus, the highest present value = $47,056
2. In the case when the rate of interest is 12%
1. For at the end of eight years, the present value of $7,000 is
= $7,000 × 4.96764
= $34,773.48 or $34,773
2. The lumpsum now is $45,000
3. The eight years from now is
= $75,000 × 0.40388
= $30,291
Thus, the highest present value = $45,000
Youngstown Rubber reports the following data for its first year of operation. Direct materials used $710,200 Direct Labor 350,000 Cost of goods manufactured 1,030,300 Finished goods inventory, ending 190,900 Finished goods inventory, beginning 0 Manufacturing overhead 100,100 Work in process inventory, beginning 0 Work in process inventory, ending 130,000 What are the total manufacturing costs to account for
Answer:
$1,160,300
Explanation:
Total Manufacturing Costs are all costs related to the production of goods to be sold. This consists of direct costs such as labor and material and other indirect costs such as electricity and rentals.
Calculation of total manufacturing costs :
Cost of goods manufactured 1,030,300
Add Closing Work In Process 130,000
Less Beginning Work In Process 0
Total manufacturing costs $1,160,300
Which of the following decisions is part of the HR function of compensation?
A. What responsibilities should be part of an office worker's job
B. How to make sure office workers are treated ethically
C. Which employees will do the best work in the fastest time
D. Whether to pay office workers a wage or a salary
Answer:
D. Whether to pay office workers a wage or a salary
Explanation:
Compensation is paying employees for the services rendered. It is a function of the human resources department. Compensation may be in monetary or non-monetary form.
Ensuring fair and timely compensation to workers is a critical function of the human resources managers. The HR evaluates roles and responsibilities periodically to ensure it has a fair compensation scheme. HR has to determine whether employees will work part-time or full-time, whether to employ permanently or by contract or pay salaries or wages.
Sally opened her own business and resigned from a job paying $25,000 per year. Her savings acccount pays 8% interest, but she withdrew $20,000 to buy some machinery which didn't fall in value. She could have earned 10% on the $20,000 had she invested it in another company with the same risk as hers. In adddition to the $20,000 her only other cost is $15,000 per year she charges her business as a salary for herself. In the first year her business made accounting profit of $12,000. Will other people having $20,000 in savings want to leave a $25,000 job to open a business like Sally's if their only objective is money?
A) They would be indifferent, as Sally's income net of costs equals $25,000.
B) Yes, because Sally's income is $27,000 but her costs are $20,000.
C) No, because Sally's income is $27,000 but her costs are $35,000.
D) Yes, because Sally's economic profit is positive.
E) Both (B) and (D).
Answer:
A) They would be indifferent, as Sally's income net of costs equals $25,000.
Explanation:
Sally's economic profit = accounting profit - opportunity costs
accounting profit = $12,000opportunity costs = $25,000 - $15,000 in lost salaries + $2,000 (lost investment revenue) = $12,000economic profit = $12,000 - $12,000 = $0
Since the economic profit is $0, Sally should be indifferent between running her own business or working for someone else.
. A three-year interest rate swap has a level notional amount of 300,000. Each settlement period is one year and the variable rate is the one-year spot interest rate at the beginning of the settlement period. The swap rate for this interest rate swap is 4.317%. Two years have elapsed and the one-year spot interest rate at the start of year three is 5.25%. Calculate the market value of the swap from the perspective of the payer.
Answer:
$2,660
Explanation:
The market value is the present value of expected future cash flows.
Expectation is that swap will pay (300,000) (0.04317) and receive (300,000) ( 0.0525), and these payments would be made at end of one year.
Then, market value = ((300,000)(0.0525) - (300,000)( 0.04317)) / (1 + 0.0525)
Market value = 2799 / 1.0525
Market value = 2659.38
market value = $2,660
Therefore, the market value of the swap from the perspective of the payer is $2,660.
Demonstrating the proper way to shake hands is an example of which choice?
a. teamwork
b. workplace etiquette
c. employee performance
d. work ethics
Answer:
A. Teamwork
Explanation:
when you do something right as a team you handshake as a thank you for helping me.
Answer:
employee performance
Explanation:
took the test
The following unadjusted trial balance contains the accounts and balances of Dylan Delivery Company as of December 31, 2017
a. Unrecorded depreciation on the trucks at the end of the year is $8.231
b. The total amount of accrued interest expense at year-end is $8,000.
c. The cost of unused office supplies still available at year-end is $1,400.
1. Prepare the year-end closing entries for Dylan Delivery Company as of December 31, 2017
2. Determine the capital amount to be reported on the December 31, 2017 balance sheet.
Answer:
Question 1
Part a
Debit : Depreciation $8.231
Credit : Accumulated Depreciation $8.231
Part b
Debit : Interest Expense $8,000
Credit : Long term notes payable $8,000
Part c
Debit : Office Supplies Expenses $ 500
Credit: Office Supplies $ 500
Question 2
Capital amount to be reported on the December 31, 2017 balance sheet is $170,551
Explanation:
See below the full question that i have attached
Calculation of Capital amount as at December 31, 2017
Balance before adjustments $187,282
Adjustments :
Depreciation ($8.231)
Interest Expense ($8,000)
Office Supplies Expenses ($ 500)
Balance after adjustments $170,551