Answer:
Felicidad: each bushel of rye cost 4 pairs of jeans
Arcadia: each bushel of rye cost 2 pair of jeans
As in comparison it takes less pair of the jean to produce a bushel of rye Arcadia has a comparative advantage in the production of rye
while Felicidad has it in the production of jeans.
Specialized economy:
Felicidad 16,000,000 pairs of jean
Arcadia 20,000,000 bushels of rye
Explanation:
The opportunity cost is the number of goods not produced as a result of the production choice.
For the bushel of rye, it will be the pairs of jeans.
For Felicidad Island will be:
16 jeans / 4 bushel of rye = 4 jeans
each bushel of rye cost 4 pairs of jeans
For Arcadia Island will be:
10 pair of jeans / 5 bushels of rye = 2 jeans
each bushel of rye cost 2 pair of jeans
If they specialize
Felicidad 4 millions labor hours x 4 pairs per hour = 16,000,000 jeans
Arcadia 4 millions labor hours x 5 bushel per hour = 20,000,000 bushel
If a company spends $14.4 million to install refurbished footwear-making equipment with capacity to produce 1 million pairs of athletic footwear at its North American production facility, then its annual depreciation costs at that facility will rise by
The annual depreciation costs at that facility will rise by 10% or $1,440,000.
Annual depreciation costsLife of the equipment = 10 Years
Salvage value = 0
Annual Depreciation= (Cost of equipment - Estimated salvage value) / Estimated useful life
Annual Depreciation= ($14.4 million- 0) / 10
Annual Depreciation= $1,440,000
or
Annual Depreciation= $1,440,000/$14,400,000 ×100
Annual Depreciation= 10%
Inconclusion the annual depreciation costs at that facility will rise by 10% or $1,440,000.
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Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company's accounting manager provides Willie with the following information, before any adjustment. Willie's compensation contract states that if the company generates operating income of at least $200,000, he will get a salary bonus early next year. Required: 1. Record the adjustment for uncollectible accounts using the accountant's estimate of 10% of accounts receivable. 2. After the adjustment is recorded in Requirement 1, what is the revised amount of operating income? Will Willie get his salary bonus? 3. Willie instructs the accountant to record the adjustment for uncollectible accounts using 7% rather than 10% of accounts receivable. Now will Willie get his salary bonus? Explain. 4. By how much would total assets and operating income be misstated using the 7% amount?
Answer:
Explanation:
The first part of the question is missing, so I looked for a similar question to fill in the blanks.
Willie Cheetum is the CEO of Happy Foods, a distributor of produce to grocery store chains throughout the Midwest. At the end of the year, the company's accounting manager provides Willie with the following information, before any adjustment.
Accounts receivable $858,000
Estimated percentage uncollectible 10%
Allowance for uncollectible accounts $20,000 (credit)
Operating income $249,000
1. Record the adjustment for uncollectible accounts using the accountant's estimate of 10% of accounts receivable.
Dr Bad debt expense 65,800
Cr Allowance for uncollectible accounts 65,800
($858,000 x 10%) - $20,000 = $65,800
2. After the adjustment is recorded in Requirement 1, what is the revised amount of operating income?
$183,200
3. Willie instructs the accountant to record the adjustment for uncollectible accounts using 7% rather than 10% of accounts receivable. Now will Willie get his salary bonus? Explain.
bad debt expense = ($858,000 x 7%) - $20,000 = $40,060
so adjusted net income = $249,000 - $40,060 = $208,940
Willie will get his bonus.
By how much would total assets and operating income be misstated using the 7% amount?
$65,800 - $40,060 = $25,740
question was incomplete. Here is the rest of it.
Account receivable $,1,100,000
Estimated percentage uncollectible 9%
operating income $260,000
The first part of the question is missing, so I hunted for the same question to fill within the blanks.
When Willie Cheetum is the CEO of Happy Foods and a distributor of products to grocery chains throughout the Midwest. Also, At the tip of the year, the company's accounting manager provides Willie with the subsequent information, before any adjustment.
Adjustment EntryAccounts receivable $[tex]858,000[/tex]
Estimated percentage uncollectible 10%
Allowance for uncollectible accounts $[tex]20,000[/tex] (credit)
Operating income $[tex]249,000[/tex]
1. Dr debt expense [tex]65,800[/tex]
Cr Allowance for uncollectible accounts 65,800
($858,000 x 10%) - $20,000 = $[tex]65,800[/tex]
2. $[tex]183,200[/tex]
3.bad debt expense = ($858,000 x 7%) - $20,000 = $[tex]40,060[/tex]
so adjusted net = $249,000 - $40,060 = $208,940Willie will get his bonus.
Therefore, $65,800 - $40,060 = $[tex]25,740[/tex]
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Please answer
Amira budgeted $400 for her expenses this week. She spent $350. What is TRUE about Amira's budget and spending?
A.Amira owes interest on her $50 variance.
B.Amira should take out a loan.
C.Amira has a deficit of $50 this week.
D.Amira has a surplus of $50 this week
Answer:
Amira has a surplus of $50 this week.
Source: Trust me bro
Carey Company had sales in 2019 of $1,703,700 on 63,100 units. Variable costs totaled $883,400, and fixed costs totaled $549,000. A new raw material is available that will decrease the variable costs per unit by 20% (or $2.80). However, to process the new raw material, fixed operating costs will increase by $90,000. Management feels that one-half of the decline in the variable costs per unit should be passed on to customers in the form of a sales price reduction. The marketing department expects that this sales price reduction will result in a 5% increase in the number of units sold.
Required:
a. Prepare a projected CVP income statement for 2020, assuming the changes have not been made.
b. Prepare a projected CVP income statement for 2020, assuming that changes are made as described.
Answer:
a. CVP income statement for 2020 [ assuming no changes]
Sales $1,703,700
Less Variable Cost ($883,400)
Contribution $820,300
Less Fixed Costs ($549,000)
Net Income/ (Loss) $271,300
a. CVP income statement for 2020 [ assuming changes are made]
Sales (($1,703,700/ 63,100 - $1.40 ) × (63,100 + 5%)) $1,696,128
Less Variable Cost (($883,400/63,100 - $2.80) × (63,100 + 5%)) ($742,056)
Contribution $954,072
Less Fixed Costs ($549,000 +$90,000) ($639,000)
Net Income/ (Loss) $315,072
Explanation:
Adjusting the CVP income statement requires you to first find the current unit selling prices and variable costs. This is done by dividing the Total Sales and Total Variable Costs with the number of units currently sold.
Once you have these apply the changes respectively and remember to increase the number of units as well for the final answer in the line items. Follow carefully the calculations i have done.
If Suzie writes a check for a new car, she is using money as a
Answer:capital
Explanation:
In business if you use your money from it, it's your capital equity your using
Christina, who is single, purchased 140 shares of Apple Incorporated stock several years ago for $8,400. During her year-
end tax planning, she decided to sell 70 shares of Apple for $3,850 on December 30. However, two weeks later, Apple
introduced its latest iPhone, and she decided that she should buy the 70 shares (cost of $3.990) of Apple back before
prices skyrocket (Leave no answers blank. Enter zero if applicable.)
. What is Christina's deductible loss on the sale of 70 shares? What is her basis in the 70 new shares?
Christina's deductible loss on the sale of 70 shares is $0 and her basis in the 70 new shares is $4,340.
Deductible lossa. Her deductible loss will be $0 because no deductible loss.
b. Basis in the new shares
Loss=3,850-(8,400×70/140)
Loss=3,850-(8,400×0.5)
Loss=3,850-4,200
Loss=350
New shares basis =350+ 3,990
New shares basis =350+3,990
New shares basis =$4,340
Inconclusion Christina's deductible loss on the sale of 70 shares is $0 and her basis in the 70 new shares is $4,340.
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Trapp Corporation uses the weighted-average method in its process costing system. The beginning work in process inventory in its Painting Department consisted of 3,000 units that were 70% complete with respect to materials and 60% complete with respect to conversion costs. The cost of the beginning work in process inventory in the department was recorded as $10,000. During the period, 9,000 units were completed and transferred on to the next department. The costs per equivalent unit for the period were $2.00 for material and $3.00 for conversion costs. What was the cost of units transferred out during the month?
A. $45,000
B. $45,400
C. $35,400
D. $39,600
Answer: cost of units transferred out during the month=A. $45,000
Explanation:
Material costs =Number of units completed and transferred out x Cost per equivalent unit for material
= 9000 units x $2.00 = $18,000
Conversion cost = Number of units completed and transferred out x Cost per equivalent unit for conversion costs
= 9000 units x $3.00 = $27,000
Costs of u nits transferred out during the month = Conversion costs +Material costs
= $18,000 + $27,000
$45,000
Suppose a State of New York bond will pay $1,000 ten years from now. If the going interest rate on these 10-year bonds is 4.4%, how much is the bond worth today?
Answer:
6.000$ I think the answer is , I 'm not sure
A bond is a fixed-income investment that represents a loan made by an investor to a borrower, usually corporate or governmental.
What is a Bond?An investment in fixed income known as a bond reflects a loan made by a shareholder to a borrower, typically a corporation or government.
Governments and businesses sell bonds as a sort of asset to raise money from investors. Therefore, selling bonds is a means of borrowing money from the seller. From the standpoint of the buyer, purchasing bonds is an investment because it entitles them to guaranteed principal repayment as well as a stream of interest payments. Some bonds also come with extra perks, such as the option to exchange them for equity in the company issuing them.
Because bonds trade at a discount when interest rates are rising and at a premium when interest rates are decreasing, the bond market often moves inversely with interest rates.
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Advertising for hospitals has grown significantly in recent years, a practice which has generated criticism from many constituencies inside and outside their institutions. What arguments would you employ to defend advertising by hospitals
A good reason why hospitals need to advertise is to bring attention to their expertise in a certain procedure.
Why should hospitals advertise?In the word of medicine, there are several different types of procedures and some doctors are better in some of the procedures than others.
If a hospital has some of those doctors who are better, they should be allowed to advertise so that people can go to that hospital and get better help than they would elsewhere.
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lorelei's trust fund will pay her $10,000 a year for the next 30 years. The current value of these payments is called the: g
The current value of these payments to Iorelei from her trust fund is called the present value of an annuity.
What is the present value of an annuity?When a set payment is made every period then this is called an annuity. The amount of $10,000 that Iorelei is receiving is therefore an annuity.
The current value of this annuity is therefore the present value of an annuity.
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During the off-season when crops cannot be grown, farmers will do which of the following?
A: Continue working and preparing equipment
B: Take a break, as they are unable to vacation during summer
C: Take on another job or profession until spring.
Answer:
A
Explanation:
because none seem to be right
When do you think home prices peaked? Why?
The Mass Rapid Transit (MRT) System in Hong Kong has been running significant losses. Transport Ministry officials have argued over whether to raise fares to combat the losses. One argument against a fare increase is that it will aggravate traffic congestion on the streets during peak commuter hours. Suppose that the current fare is $4 and the government is considering raising it to S6. Officials estimate that this reduces the number of rides purchased from 10,000 to 8,000 per day
a) What is the estimated elasticity of demand for MRT rides using the midpoint/ARC method?
b) What does this elasticity of demand suggest to you about what will happen to total revenue earned by the transit system? Explain and show your work.
Answer:
A) -0.55
B) The negativity in the estimated elasticity suggests that for every 1% increase in the price of transport there will be a corresponding 0.55% decrease in the number of Commuters
Explanation:
Given data:
current fare (P0) = $4
hiked fare (P1) = $6
change in fare = $2
number of rides before increase ( Q0 ) = 10000
number of rides after increase ( Q1 ) = 8000
change in rides = 2000
A) The estimated elasticity of demand for MRT rides using the midpoint /ARC method
Mid point method = [ ( Q1 - Q0 ) / ( Q1 + Q0 ) ] / [ (P1 - P0 ) / (P1 + P0 ) ]
= [ - 2000 / 18000 ] / [ 2 / 10 ]
= - 1000 / 1800 = - 5 / 9 ( estimated elasticity )
= - 0.55
B) The negativity in the estimated elasticity suggests that for every 1% increase in the price of transport there will be a corresponding 0.55% decrease in Commuters
For each of the following sentences, choose the option that makes the message more reader oriented.
1. Come to Barclay’s Furniture and see how low we’ve cut prices at our grand opening in Seattle!
a. You’ll save with major discounts at the Barclay Furniture Seattle store’s grand opening.
b. We’ve cut prices just for you at the Barclay Furniture Seattle store’s grand opening.
c. No change necessary.
2. Our affordable prices and great styles will make redecorating your home a breeze.
a. Redecorate your home with the latest styles at an affordable price.
b. We’ll help you redecorate your home with the latest styles and the most affordable prices.
c. No change necessary.
3. We’ll slash an additional 10 percent off living room sets if you shop by Tuesday.
a. No change necessary.
b. If you don’t shop by Tuesday, you’ll miss our additional 10 percent discount on living room sets.
c. Shop by Tuesday and you’ll save an additional 10 percent on all living room sets.
Answer:
1. Come to Barclay’s Furniture and see how low we’ve cut prices at our grand opening in Seattle!
Option that makes the message more reader oriented
a. You’ll save with major discounts at the Barclay Furniture Seattle store’s grand opening as it is most appropriate and more consumer friendly.
2. Our affordable prices and great styles will make redecorating your home a breeze
Option that makes the message more reader oriented
b. We’ll help you redecorate your home with the latest styles and the most affordable prices as it touches the consumer with the help.
3. We’ll slash an additional 10 percent off living room sets if you shop by Tuesday.
Option that makes the message more reader oriented
c. Shop by Tuesday and you’ll save an additional 10 percent on all living room sets as it is very pleasing.
oss Music Inc. reported the following selected information at March 31. 2022 Total current assets $262,787 Total assets 439,832 Total current liabilities 293,625 Total liabilities 376,002 Net cash provided by operating activities 62,300 Calculate the current ratio, the debt to assets ratio, and free cash flow for March 31, 2022. The company paid dividends of $12,000 and spent $24,787 on capital expenditures. (Round current ratio and debt to assets ratio to 2 decimal places, e.g. 15.25. If answer is negative enter it with a negative sign preceding the number e.g. -15,000 or in parentheses e.g. (15,000).) Current ratio enter a current ratio rounded to 2 decimal places :1 Debt to assets enter debt to assets ratio in percentages rounded to 2 decimal places % Free cash flow $enter the free cash flow in dollars
Answer:
Please see below
Explanation:
a. Current ratio
= Total current assets / Total current liabilities
= $262,787 / $293,625
= 0.89
b. Debt to assets ratio
= Total current liabilities / Total assets
= $293,625 / $439,832
= 0.67
c. Free cash flow
= Net cash provided by operating activities - Dividends - Capital expenditure
= $62,300 - $12,000 - $24,787
= $15,685
Which of the following is NOT an example of piggybacking?
Tea and coffee
Cereal and milk
DVD and a DVD player
Razor and razor blades
Answer:
tea and coffee
cereal and milk
razor and razor blades
Explanation:
Piggybacking is also refered as wifi-squatting
Velshi Printers has contracts to complete weekly supplements required by forty-six customers. For the year 2018, manufacturing overhead cost estimates total $600,000 for an annual production capacity of 12 million pages. For 2018 Velshi Printers has decided to evaluate the use of additional cost pools. After analyzing manufacturing overhead costs, it was determined that number of design changes, setups, and inspections are the primary manufacturing overhead cost drivers. The following information was gathered during the analysis: Cost pool Manufacturing overhead costs Activity level Design changes $120,000 500 design changes Setups 380,000 4,000 setups Inspections 100,000 9,000 inspections Total manufacturing overhead costs $600,000 During 2018, two customers, Money Managers and Hospital Systems, are expected to use the following printing services: Activity Money Managers Hospital Systems Pages 70,000 86,000 Design changes 12 0 Setups 17 7 Inspections 26 34 Using pages printed as the only overhead cost driver, what is the manufacturing overhead cost estimate for Money Managers during 2018?
Answer:
$4,783.88
Explanation:
As for the provided information, the problem is based on activity based costing.
There are 3 activities:
i) Design Changes = $120,000 for 500 changes
Cost per change = [tex]\frac{120,000}{500}[/tex] = $240 for each change
ii) Setups = $380,000 for 4,000 setups
Cost per setup = [tex]\frac{380,000}{4,000}[/tex] = $95 for each setup
iii) Inspections = $100,000 for 9,000 inspections
Cost per inspection = [tex]\frac{100,000}{9,000}[/tex] = $11.11
In case of Money Managers, there is printing of 70,000 pages
Design charges = 12 design changes [tex]\times[/tex] $240 = $2,880
Setup charges = 17 setups [tex]\times[/tex] $95 = $1,615
Inspection charges = 26 inspections [tex]\times[/tex] $11.11 = $288.88
Total overhead cost for Money Managers = $2,880 + $1,615 + $288.88 = $4,783.88
The manufacturing overhead cost estimate for Money Managers during 2018 is $4,783.88.
Overhead CostTo calculate overhead cost for Money Managers, we need to find the Design, Inspection, and Setup charges.
We are provided with the following information:
Total Design Changes Cost $120,000 for 500 changes
Total Setups cost $380,000 for 4,000 setups
Total Inspections Cost $100,000 for 9,000 inspections
By this information we can get the charges per design, charges per setup, and charges per Inspection.
On dividing total cost with the units we will get following results
charges per design = $240
charges per setup = $95
charges per Inspection = $11.11
The Money Managers using 70,000 pages, in which design changes are 12, 17 setups, and 26 inspections.
Hence, Design charges = $2880, Setup charges = $1615, Inspection charges = $288.88.
And the Total Overhead Cost will be = $2,880 + $1,615 + $288.88 = $4,783.88
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A stock has a beta of 1.90 and an expected return of 15 percent. A risk-free asset currently earns 3.6 percent. a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. If a portfolio of the two assets has a beta of .95, what are the portfolio weights? (Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616.) c. If a portfolio of the two assets has an expected return of 7 percent, what is its beta? (Do not round intermediate calculations. Round your answer to 3 decimal places, e.g., 32.161.) d. If a portfolio of the two assets has a beta of 3.80, what are the portfolio weights?
Answer:
a. E(Rp) = W1 * E(R1) + W2 * E(R2) : W = Weight of risk free asset in portfolio , E(R) = Return of risk free asset
Expected Return of Portfolio = 0.5*3.6 + 0.5*15
Expected Return of Portfolio = 1.8 + 7.5
Expected Return of Portfolio = 9.3%
b. When a portfolio is composed of one risk free asset and one another risky stock
бp = W1 * б1
The S.D. of a stock or portfolio in this case as given by Beta
0.95 = W1 * 1.9
W1 = 0.95/1.9
W1 = 50%
Weight of risk free asset = 1 - 0.5
Weight of risk free asset = 50%
c. E(Rp) = W1 * E(R1) + W2 * E(R2)
7 = W1 * 3.6 + W2 * 15
With Trial and error method: W1 = 0.7, W2 = 0.3
Beta of Portfolio = 0.3 * 1.9
Beta of Portfolio = 0.57
d. Beta of Portfolio = Weight of risky asset * Beta of risky stock
3.8 = W * 1.9
W = 3.8/1.9
W = 2
Weight of risk free asset = 1 - 2
Weight of risk free asset = -1.
Find alternatives or options for offshore drilling in the Arctic?
A company decides to diversify a product by creating a new product range. Which stage of the its life cycle is the product most likely in? A company decides to diversify a product by creating a new product range. It is most likely in the stage.
Answer:
Introduction.
Explanation:
A product life cycle can be defined as the stages or phases that a particular product passes through, from the period it was introduced into the market to the period when it is eventually removed from the market.
Generally, there are four (4) stages in the product-life cycle;
1. Introduction.
2. Growth.
3. Maturity.
4. Decline.
Basically, the introduction stage is the fist stage of a product's life cycle, indicating that it is new in the market. Hence, this stage is typically characterized by low (slow) sales and as such the company (producer) has to invest so much in advertisements, marketing and promotional strategies (campaigns) in order to increase customer awareness.
In this scenario, a company decides to diversify a product by creating a new product range. Therefore, the life cycle stage the product is most likely in is introduction.
Use the drop-down menus to explain how to save a presentation to a CD.
1. Save a backup copy of the original file.
2. Go into the Backstage view using the
✔ File
tab, and select
✔ Export
.
3. Click Package Presentation for CD.
4. Add a
✔ name
for the CD, and select any desired options for modification.
5. If you want to check the file before saving it to a CD, click
✔ Copy to Folder
first.
6. Then, return to the Package for CD dialog box to select Copy to CD.
Saving a presentation to a CD is done through the following processes:
Going into the Backstage view using the File tab and select ExportAdding a name for the CD, and select any desired options for modification.Checking the file before saving it to a CD, click Copy to Folder first.What is a CD?This is referred to as compact disc which are small plastic discs on which sound, or video can be recorded.
In successfully saving a presentation to a CD, the above steps must be followed.
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Explore the impact of the traditional approaches to Labour Relations and evaluate how they impact on the interactions and nature of the relationship of the parties to the labour relationship. Include the role of the state in your answer.
Mentor Graphics Corporation, a supplier of electronic design automation systems, just announced its second quarter results. According to the earnings press release, the company reported "revenues of $182.6 million, non-GAAP earnings per share of $0.02, and a GAAP loss per share of $0.22." Elsewhere in the press release the company says that non-GAAP earnings excludes the following items incurred during the quarter: equity-based (noncash) employee compensation; severance and related employee "rebalancing" costs; fees paid to consultants; losses related to the abandonment of excess facility space and a facility fire; interest expense; along with other assorted items. There is no standard definition of non-GAAP earnings. Each firm is permitted to construct its own definition for press release purposes. As a result, the Securities and Exchange Commission requires firms such as Mentor Graphics to provide a reconciliation of GAAP and non-GAAP earnings any time a non-GAAP measure is presented.
Required:
1. Which of the excluded items represent ongoing costs of running the business and which are one-time "special" costs?
2. How might analysts and investors benefit when firms call attention to their non-GAAP earnings. 3. How might analysts and investors be harmed?
Answer:
1. Which of the excluded items represent ongoing costs of running the business and which are one-time "special" costs?
it depends on the company and the actual transactions, e.g. equity based compensation might be a one time special cost because it occurred only once and is doubtful that it happens again. But if the company regularly rewards its top managers with this type of compensation, then it is an ongoing cost. E.g. Tesla awarded a HHHHUUUUUUGGGGGGGEEEEEEE bonus to Elon Musk (worth hundreds of millions) but it was a one time event. While many companies use equity compensation on a regular basis.
Severance and related employee "rebalancing" costs generally take place when a company fires a lot of people because it is cutting down some division or product line. Hopefully, they should never happen, and if they do, it should be only a one time event.
Fees paid to consultants and interest expenses are ongoing costs that will probably occur in the future.
Losses related to the abandonment of excess facility space and a facility fire should be one time events. It would be really bad for them to keep happening (same as severance and rebalancing costs)
TRUE OR FALSE ACCOUNTING
1. When using the LIFO inventory costing method, the most recent costs are assigned to the cost of goods sold.
2. Specific identification should be used when building custom race cars.
3. The amounts debited to the inventory account depend on the inventory costing method used.
4. Companies use the LIFO inventory method to reduce income taxes.
5. During periods of increasing costs, the use of LIFO, rather than FIFO, will result in a greater amount of COGS being reported.
6. GAAP requires companies with receivables to use the allowance method.
7. When the allowance method for bad debts is used, net income is not reduced when a specific customer’s receivable is written off.
8. Having the oil changed in a company truck should be capitalized.
9. Replacing an engine in a plane would be a capital expenditure.
10. A tangible asset has a physical existence.
Answer:
1. True
2. True
3. False
4. True
5. True
6. True
7. True
8. False
9. True
10. True
Explanation:
hope this helps
Ronnie's Custom Cars purchased some fixed assets two years ago for $39,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered $19,000 for his old assets. What is the after-tax salvage value if the tax rate is 34%
Based on the MACRS classification and the amount Ronnie is offered, the after-tax salvage value is $18,904.80.
What is the after-tax salvage value?First find the book value at the date of sale:
= Cost x (1 - MACRS year 1 - MACRA year 2)
= 39,000 x (1 - 20% - 30%)
= $18,720
Then find the gain on sale:
= 19,000 - 18,720
= $280
The after tax salvage value is:
= Amount offered - (Gain x Tax rate)
= 19,000 - (280 x 34%)
= $18,904.80
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"William County opted to account for its duplication service center in an internal service fund. Previously the center had been accounted for in the county's general fund. During the first month in which it was accounted for as an internal service fund the center engaged in the following transactions: Five copiers were transferred to the internal service fund from the government's general capital assets. At the time of transfer the copiers had a book value (net of accumulated depreciation) of $70,000. The general fund made an initial cash contribution of $35,000 to the internal service fund. The center borrowed $270,000 from a local bank to finance the purchase of additional equipment and renovation of its facilities. It issued a three‐year note. It purchased equipment for $160,000 and paid contractors $100,000 for improvements to its facilities. It billed the county clerk's office $5,000 for printing services, of which the office remitted $2,500. It incurred, and paid in cash, various operating expenses of $9,000. The fund recognized depreciation of $1,500 on its equipment and $900 on the improvements to its facilities. Prepare journal entries in the internal service fund to record the transactions. Comment on the main differences resulting from the shift from the general fund to an internal service fund in how the center's assets and liabilities would be accounted for and reported."
Answer:
Five copiers were transferred to the internal service fund from the government's general capital assets.
Account Debit Credit
Capital $70,000
Copiers $70,000
The general fund made an initial cash contribution of $35,000 to the internal service fund.
Account Debit Credit
Capital $35,000
Cash $35,000
The center borrowed $270,000 from a local bank to finance the purchase of additional equipment and renovation of its facilities.
Account Debit Credit
Accounts Payable $270,000
Equipment $270,000
It purchased equipment for $160,000
Account Debit Credit
Equipment $160,000
Cash $160,000
paid contractors $100,000 for improvements to its facilities.
Account Debit Credit
Wage Expense $100,000
Cash $100,000
It billed the county clerk's office $5,000 for printing services, of which the office remitted $2,500.
Account Debit Credit
Accounts Receivable $2,500
Cash $2,500
Service Revenue $2,500
It incurred, and paid in cash, various operating expenses of $9,000.
Account Debit Credit
Operating Expenses $9,000
Cash $9,000
The fund recognized depreciation of $1,500 on its equipment $900 on the improvements to its facilities.
Account Debit Credit
Depreciation Expense $2,400
Accumulated Depreciation $2,400
The buyer and seller of merchandise must agree on who is responsible for paying freight terms. Show your understanding of freight terms by selecting all of the correct statements below.
a. Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller's place of business.
b. When the shipping costs are the responsibility of the buyer, then the Merchandise Inventory account is debited for the freight charges.
c. Revenue for the sale will be recorded after the goods reach their destination, if the goods are shipped FOB destination.
d. Terms FOB destination means that the seller is responsible for shipping costs.
d. When the shipping costs are the responsibility of the seller, then the Merchandise Inventory account is debited. Terms FOB shipping point means the seller of the goods is responsible for freight charges.
Answer:
a)Terms FOB shipping point means the buyer accepts ownership when the goods depart the seller's place of business.
b)When the shipping costs are the responsibility of the buyer, then the Merchandise Inventory account is debited for the freight charges.
c)Revenue for the sale will be recorded after the goods reach their destination, if the goods are shipped FOB destination.
d)Terms FOB destination means that the seller is responsible for shipping costs.
Explanation:
Terms used in shipping can be regarded as INCOTERMS, and they are terms used in International Commercial activities. Some of the freight terms used are Freight collect, Freight prepaid and so on.
From the question, we were informed about The buyer and seller of merchandise agreement on who is responsible for paying freight terms. From the understanding of freight terms, we can deduce that;
✓ FOB shipping point known as Free On Board is terms used when ownership is attributed to the buyer i.e buyer stand to be responsible for anything that occur to the goods once the good/product is shipped from the seller. Inother hand, FOB destination can be explained as attributing the cost of shipping to the seller.
✓Merchandise Inventory account must be debited as far as freight charges is concerned, when the buyer is responsible for shipping cost.
✓ as far as the goods are shipped FOB destination, the revenue for the sale only get to record after confirmation of goods at the destination.
✓
Clem is married and is a skilled carpenter. Clem's wife, Wanda, works part-time as a substitute grade school teacher. Determine the amount of Clem's expenses that are deductible for AGI this year (if any) under the following independent circumstances: (Leave no answer blank. Enter zero if applicable.) a. Clem is self-employed and this year he incurred $810 in expenses for tools and supplies related to his job. In addition, since neither Clem nor his wife were covered by a qualified health plan through his wife's job, Clem paid health insurance premiums of $5,100 to provide coverage for himself (not through an exchange).
Answer:
$5910
Explanation:
The AGI is used to calculate how much of gross income that can be taxed. This income is calculated from the gross income and it is Adjusted gross income in full.
Under the AGI, expenses incurred for brooks and supplies and health insurance premiums are deductible.
We have $810 expenses for tools + 5100 for health premium
= $5910 deductibles under AGI.
The following summary transactions occurred during 2018 for Bluebonnet Bakers: Cash Received from: Customers $ 380,000 Interest on note receivable 6,000 Principal on note receivable 50,000 Sale of investments 30,000 Proceeds from note payable 100,000 Cash Paid for: Purchase of inventory 160,000 Interest on note payable 5,000 Purchase of equipment 85,000 Salaries to employees 90,000 Principal on note payable 25,000 Payment of dividends to shareholders 20,000 The balance of cash and cash equivalents at the beginning of 2018 was $17,000.
Required:
Prepare a statement of cash flows for 2018 for Bluebonnet Bakers. Use the direct method for reporting operating activities.
Answer:
Statement of cash flows for the year ended 2018
Cash flow from Operating Activities
Cash Receipts from Customers $ 380,000
Cash Paid to Suppliers and Employees ($250,000)
Cash Generated from Operations $130,000
Interest on note payable ($5,000)
Net Cash from Operating Activities $125,000
Cash flow from Investing Activities
Interest on note receivable $ 6,000
Principal on note receivable $ 50,000
Sale of investments $ 30,000
Purchase of equipment ($85,000)
Net Cash from Investing Activities $1,000
Cash flow from Financing Activities
Proceeds from note payable $100,000
Principal on note payable ($25,000)
Dividends Paid ($20,000)
Net Cash from Financing Activities $55,000
Movement in Cash and Cash Equivalents $151,000
Beginning Cash and Cash Equivalents $17,000
Ending Cash and Cash Equivalents $168,000
Explanation:
The Direct Method Include only the Cash receipts from customers and Cash payments to suppliers and employees in the calculation of cash generated from operations under the Cash flow from Operating Activity Section of the Statement.
Calculation of Cash Paid to Suppliers and Employees
Purchase of inventory $160,000
Salaries to employees $90,000
Cash Paid to Suppliers and Employees $250,000
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