Esmeralda promises to pay Fiorello $400 because ""he does not have as much money as other people. "" Esmeralda's promise is not enforceable because: Fiorello has not given consideration in return.
INTERPRETATION-
Consideration is mutual i.e. both parties get something in the return for the performance of the contract. However, Esmeralda has not given consideration in exchange.
Esmeralda was given the chance to audition for the Performing Arts High School which she succeeded in. She then moved to New York and attended School, studying drama and dance.
Esmeralda Santiago wrote her autobiography "When I Was Puerto Rican" which narrates her and her family's life moving from Puerto Rico to America. The book also follows the Puerto Rican girl through the many obstacles that she had to endure and overcome to change her life.
Therefore, we can conclude that the correct option is A.
Your question is incomplete, but most probably your full question was:
Esmeralda promises to pay Fiorello $400 because “he does not have as much money as other people.” Esmeralda’s promise is not enforceable because
A. Fiorello has not given consideration in return.
B. Esmeralda could have paid more.
C. the redistribution of wealth on a one-to-one basis is not a valid social goal.
D. society does not want gifts cheapened by making them legally enforceable.
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You are researching Time Manufacturing and have found the following accounting statement of cash flows for the most recent year. You also know that the company paid $98 million in current taxes and had an interest expense of $48 million. Calculate the cash flows from assets and the cash flows to creditors and shareholders using the accounting information in the statement of cash flows.
Answer:
a. Cash Flows from Assets is $29m
b. Cash flow from creditors is 91.90m
Explanation:
a. Cash Flow to creditors = Interest Paid - Net new borrowings + retirement of debt
CFC = $48m - (-139.90) + 0
CFC = $91.90 m
b. Cash flow from Assets = Operating Cash Flow - Net capital spending - Change in net working capital
Cash flow from Assets = $520 - $375 - $116
Cash Flow from Assets = $29m
. The equality of MR and MC is essential for profit maximization in all market structures because if multiple choice 1 MR and MC are equal, economic profits will be zero. MR is less than MC, producing more will increase profits. MR and MC are equal, any other output level will result in reduced profits. MR is greater than MC, producing more will lower profits.
Answer:
MR and MC are equal, any other output level will result in reduced profits.
Explanation:
Marginal cost is the increase in the total cost as a result of producing one additional unit. Marginal revenue is the increase in revenue resulting from the sale of one additional unit. Profit-maximization is the process by which a firm determines the price and output level that will result in the largest profit. The reason behind this strategy is that the total profit reaches its maximum point where marginal revenue equals marginal cost and the firm will continue to produce until marginal profit is zero. The marginal profit equals the marginal revenue minus the marginal cost.
Who Is Lil Loaded i want to know
Answer:
search it up
Explanation:
Answer:
he is a rapper dude. search it up
Explanation:
hello, im stuck. if i could get some ideas for this i will mark you brainliest if i can.
i just need some ideas and maybe an explanation. i don't expect an entire two page thing but just some help pls :((
thanks in advance.
Answer: so you are giving someone instructions like how to make a sandwich with a lot of detail so someone could do everything you did :)
Explanation:
✪ ω ✪
At the end of April, the first month of the company's year, the usual adjusting entry transferring rent earned to a revenue account from the unearned rent account was omitted. Indicate which items will be incorrectly stated, because of the error, on (a) the income statement for April and (b) the balance sheet as of April 30. Also indicate whether the items in error will be overstated or understated.
Answer:
Overstatement is the situation where the amount of any item has been stated more than its actual figure
Understatement is the situation where the amount of any item has been stated less than its actual figure
a. The rent earned will be understated, as a result of which the income statement will give a lower net income.
b. Because of lower net income, retained earnings in stockholders' equity will be understated, and the liability account of unearned rent will be overstated
On December 31, Year 2, Morgan Company had the following normal account balances in its general ledger. Use this information to prepare a trial balance.
Land $18,000
Unearned revenue 16,200
Dividends 5,200
Prepaid rent 6,850
Cash 59,010
Salaries expense 12,500
Accounts payable 1,940
Common stock 23,000
Operating expense 13,800
Office supplies 1,900
Advertising expense 2,100
Retained earnings, Beginning 14,300
Service revenue 70,720
Accounts receivable 6,800
Answer and Explanation:
The preparation of the trial balance is given below:
Particulars Debit amount Credit amount
Land $18,000
Unearned revenue $16,200
Dividend $5,200
Prepaid rent $6,850
Cash $59,010
Salaries expense $12,500
Account payable $1,940
Common stock $23,000
Operating expense $13,800
Office supplies $1,900
Advertising expense $2,100
Retained earnings $14,300
Service revenue $70,720
Account receivable $6,800
Totals $126,160 $126,160
At year-end, salaries expense of $17,000 has been incurred by the company but is not yet paid to employees. Salaries payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2
b. At its December 31 year-end, the company owes $325 of interest on a line-of-credit loan. That interest will not be paid until sometime in January of the next year. Interest payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
c. At its December 31 year-end, the company holds a mortgage payable that has incurred $950 in annual interest that is neither recorded nor paid. The company intends to pay the interest on January 7 of the next year. Interest payable
Step 1: Determine what the current account balance equals.
Step 2: Determine what the current account balance should equal.
Step 3: Record the December 31 adjusting entry to get from step 1 to step 2.
Answer:
Following are the responses to the given points:
Explanation:
For part A:
Payable Salary
for point 1 $0 $19,500
for point 2 $17,000 Cr $21,800
$41,300
for point 3 Accounts title Dr. Cr.
Salaries expense $17,000
Payable Salary $17,000
For part A: Payable Interest
for point 1 $0 $0
for point 2 $325 Cr. $325
$325
for point 3 Accounts title Dr. Cr.
Interest on Expense $325
Payable Interest $325
For part C: Payable Interest
for point 1 $0 $0
for point 2 $950 Cr. $950
$950
for point 3 Accounts title Dr. Cr.
Interest on Expense $950
Payable Interest $950
4. The following is Arkadia Corporation's contribution format income statement for last month: Sales $1,200,000 Variable expenses 800,000 Contribution margin 400,000 Fixed expenses 300,000 Net operating income $100,000 The company has no beginning or ending inventories and produced and sold 20,000 units during the month. (Each requirement is worth 3 points for a total of 18 points) Required: a. What is the company's contribution margin ratio
Answer:
Missing word "sold 20,000 units during the month at a sales price of $60 per unit.. b. What is the company's degree of operating leverage? c. How many units would the company have to sell to achieve a desired operating income before taxes of $150,000?"
a. Contribution Margin Ratio = Contribution margin / Sales
= 400000 / 1200000
= 0.3333
= 33.33%
b. Operating Leverage = Contribution / Net Income
= 400000 / 100000
= 4 Times
c. Sale to achieve desired profit = (Fixed Cost + Desired Profit) / Contribution Margin Ratio
= (300000 + 150000) / 0.3333
= $1350000
Sales in Units = $1350000 / 60 units = 22500 units
The United Kingdom plans to end the use of gas-powered and diesel-powered cars by the year 2040. At the same time, car manufacturers, such as General Motors and Nissan, are increasing the number of electric car models they produce. Based on this information, which of the following statements is/are correct?
i. If the supply of new electric cars is greater than the demand for new electric cars, then the price of electric cars will fall in the future.
ii. The demand for gasoline will fall in the future.
iii. The demand for electricity will rise in the future.
iv. The demand for diesel will rise in the future.
a. (i) and (ii)
b. only (i)
c. (ii) and (iv)
d. (i), (ii) and (iii)
Answer:
d. (i), (ii) and (iii)
i. If the supply of new electric cars is greater than the demand for new electric cars, then the price of electric cars will fall in the future. ii. The demand for gasoline will fall in the future. iii. The demand for electricity will rise in the future.Explanation:
Currently electric cars are expensive because their supply is very limited, but if the supply increases, their price should fall.
Since less cars will consume gasoline and diesel, their demand should decrease in the future.
Since more cars will consumer electricity, its demand should increase in the future.
a. On April 1, the company hired an attorney for a flat monthly fee of $2,000. Payment for April legal services was made by the company on May 12.
b. As of April 30, $2,559 of interest expense has accrued on a note payable. The full interest payment of $7,677 on the note is due on May 20.
c. Total weekly salaries expense for all employees is $8,000. This amount is paid at the end of the day on Friday of each five-day work week. April 30 falls on a Tuesday, which means that the employees had worked two days since the last payday. The next payday is May 3.
Required:
The above three separate situations require adjusting journal entries to prepare financial statements as of April 30. For each situation, present both the April 30 adjusting entry and the subsequent entry during May to record payment of the accrued expenses.
Answer:
Apr 30
Dr Legal fees expense $2,000
Cr Legal fees payable $2,000
May 12
Dr Legal fees payable $2,000
Cr Cash $2,000
Apr 30
D Interest expense $2,559
Cr Interest payable $2,559
May 20
Dr Interest expense $5,118
Dr Interest payable $2,559
Cr Cash $7,677
Apr 30
Dr Salaries expense $3,200
Cr Salaries payable $3,200
May 03
Dr Salaries expense $4,800
Dr Salaries payable $3,200
Cr Cash $8,000
Explanation:
Preparation of the adjusting journal entries to prepare financial statements as of April 30 and the subsequent entry during May to record payment of the accrued expenses.
Apr 30
Dr Legal fees expense $2,000
Cr Legal fees payable $2,000
May 12
Dr Legal fees payable $2,000
Cr Cash $2,000
Apr 30
D Interest expense $2,559
Cr Interest payable $2,559
May 20
Dr Interest expense $5,118
($7,677- $2,559)
Dr Interest payable $2,559
Cr Cash $7,677
Apr 30
Dr Salaries expense $3,200
($8,000*2/5)
Cr Salaries payable $3,200
May 03
Dr Salaries expense $4,800
($8,000*3/5)
Dr Salaries payable $3,200
($8,000*2/5)
Cr Cash $8,000
The level of analysis for the Industry environment is the _____ level:
Question
Felicia Rashad Corporation has pretax financial income (or loss) equal to taxable income (or loss) from 2006 through 2014 as follows.
Income (Loss) Tax Rate
2006 $29,000 30 %
2007 40,000 30 %
2008 17,000 35 %
2009 48,000 50 %
2010 (150,000 ) 40 %
2011 90,000 40 %
2012 30,000 40 %
2013 105,000 40 %
2014 (60,000) 45 %
Pretax financial income (loss) and taxable income (loss) were the same for all years since Rashad has been in business. Assume the carryback provision is employed for net operating losses. In recording the benefits of a loss carryforward, assume that it is more likely than not that the related benefits will be realized.
a) What entries for income taxes should be recorded for 2010? .
b) Indicate what the income tax expense portion of the income statement for 2010 should look like. Assume all income (loss) relates to continuing operations.
c)What entry for income taxes should be recorded in 2011?
d) How should the income tax expense section of the income statement for 2011 appear?
e) what entry for income taxes should be recorded in 2014
f) how should the income tax expense section of the statement for 2104 appear to be ?
?
Answer:
A. Dr Deferred Tax Asset 60,000.00
Cr Deferred Tax 60,000.00
B. Income Statement (Partial)
Current Tax -
Deferred Tax (60,000.00)
Total Tax (60,000.00)
C.Dr Deferred Tax Asset 36,000
Cr Deferred Tax 36,000
D. Income Statement (Partial)
Current Tax -
Deferred Tax 36,000
Total Tax 36,000
E. Dr Deferred Tax Asset 27,000
Cr Deferred Tax 27,000
F. Income Statement (Partial)
Current Tax -
Deferred Tax 27,000
Total Tax 27,000
Explanation:
A. Calculation for what the entries for income taxes should be recorded for 2010
Entries for Income tax for 2010
Dr Deferred Tax Asset 60,000.00
Cr Deferred Tax 60,000.00
2010 (150,000 *40 %)
(To record timing difference of carry forward losses)
b) Indication for what the income tax expense portion of the income statement for 2010 should look like. :
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax (60,000.00)
Total Tax (60,000.00)
c) Calculation for what the entries for income taxes should be recorded for 2011
Dr Deferred Tax Asset 36,000
Cr Deferred Tax 36,000
2011 (90,000* 40 %)
(To record deferred tax asset utilization)
d) Income tax expense section of the income statement for 2011 appear
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax 36,000
Total Tax 36,000
e) Calculation for what the entries for income taxes should be recorded for 2014
Dr Deferred Tax Asset 27,000
Cr Deferred Tax 27,000
2014 (60,000*45 %)
(To record deferred tax asset utilization)
f) Income tax expense section of the income statement for 2014 appear
Felicia Rashad Corporation
Income Statement (Partial)
Current Tax -
Deferred Tax 27,000
Total Tax 27,000
Why is prioritization an important skill to practice as a student?
Prioritization allows us to make decisions about what is important so we can know what to focus on and what's not as important. Being able to discern tasks that are necessary from those that we should do is crucial. Prioritization is a critical skill to have, but can take some practice to achieve.
Marigold Corp. applies overhead on the basis of machine hours. Given the following data, compute overhead applied and the under- or overapplication of overhead for the period:
Estimated annual overhead cost $1400000
Actual annual overhead cost $1375000
Estimated machine hours 500000
Actual machine hours 490000
a. $1372000 applied and $3000 overapplied
b. $1400000 applied and $3000 overapplied
c. $1372000 applied and $3000 underapplied
d. $1375000 applied and neither under-nor overapplied
Answer:
World biggest Logic To solve anything
Giblin Corporation earned $9,700 of service revenue on account during Year 1. The company collected $8,245 cash from accounts receivable during Year 1. Required Based on this information alone, determine the following for Giblin Corporation. (Hint: Record the events in general ledger accounts under an accounting equation before satisfying the requirements.) (Enter any decreases to account balances with a minus sign.)
a. The balance of the accounts receivable that would be reported on the December 31, Year 1, balance sheet.
b. The amount of net income that would be reported on the Year 1 income statement.
c. The amount of net cash flow from operating activities that would be reported on the Year 1 statement of cash flows.
d. The amount of retained earnings that would be reported on the Year 1 balance sheet.
Answer and Explanation:
The computation is shown below:
a. The balance in the account receivable is
= $9,700 - $8,245
= $1,455
b. The amount of the net income is equivalent to the service revenue earned i.e. $9,700
c. The net cash flow from operating activities is
Net income $9,700
Less; increase in account receivable -$1,455
Net cash flow from operating activities $8,245
d. The retained earnings is equivalent to the amount of the net income i.e. $9,700
Suppose that you are running a business and you need some extra space for one year. Your bank offers you a loan of $200,000 at 0% interest. You consider borrowing this amount, buying the building, using it for one year, and then selling the building to pay back the loan. Unfortunately, the economy in which you are operating is experiencing deflation at a rate of 10% per year.
After one year, you should be able to sell the building for _.
Suppose that owning the building for a year would earn you $5,000. To decide whether or not you will be better off by owning it for one year and then selling it, you sought advice from three different people: (1) Your brother says that you should not buy the building because in one year it will cost you $100,000. (2) Your accountant says that you should definitely buy the building because you can borrow $100,000 at zero interest while the building will generate $5,000 in extra income. Then when you sell it, you will be $5,000 richer. (3) Your bookkeeper says that if you sell the building in a year, you will have to come up with more money to pay off the loan than you will make in extra income.
Keeping in mind that the economy experiences deflation at the rate of 10%, yourbookkeeper is right because: ________
a. When the nominal interest rate is zero, you do not incur any cost when you take out a loan.
b. The extra income you will earn will be less than the cost of owning the building for the year.
c. When the nominal interest rate is zero, the cost of a building is its full purchase price
Answer:
a. $180,000
b. The extra income you will earn will be less than the cost of owning the building for the year.
Explanation:
a) Data and Calculations:
Bank loan = $200,000
Interest rate = 0%
Cost of building = $200,000
Deflation rate = 10%
After one year, the price of the building will reduce to $180,000 ($200,000 * 90%)
So with deflation rate of 10%, you should be able to sell the building for only $180,000.
Expected revenue from owning the building for a year = $5,000
Cost of owning the building for a year = $20,000 ($200,000 - $180,000)
Therefore, the cost of owning the building for a year outstrips the revenue from owning the building by $15,000 ($20,000 -$5,000)
b. When The extra income you will earn then will be less than the cost of owning the building for the year.
Explanation:
a) When Data and Calculations:Then Bank loan = $200,000After that Interest rate = 0%Then Cost of building = $200,000Now Deflation rate = 10%Now After that one year, the price of the building will be reduce to $180,000 ($200,000 * 90%)So with deflation rate of 10%, you should be able to sell the building for only that is $180,000.When the Expected revenue from owning the building for a year = $5,000
After that the Cost of owning the building for a year = $20,000 ($200,000 - $180,000)So thus that Therefore, the cost of owning the building for a year outstrips the revenue from owning the building by $15,000 ($20,000 -$5,000)Learn more about:
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WFO Corporation has gross receipts according to the following schedule:
Year 1
$22.00 million
Year 2
$24.00 million
Year 3
$26.00 million
Year 4
$24.50 million
Year 5
$25.00 million
Year 6
$27.00 million
If WFO began business as a cash-method corporation in Year 1, in which year would it have first been required to use the accrual method?
Answer:
WFO Corporation
Given WFO Corporation's annual gross receipts, which exceed $20 million, it is expected to use the accrual basis starting from Year 1, whether it is a C-Corporation or an S-Corporation.
Explanation:
a) Data and Calculations:
Gross Receipts:
Year 1 $22.00 million
Year 2 $24.00 million
Year 3 $26.00 million
Year 4 $24.50 million
Year 5 $25.00 million
Year 6 $27.00 million
b) For a C-Corporation, when the average gross receipts for the past three years exceed $5 million, the corporation is expected to change from cash basis to accrual basis. Assuming that WFO Corporation is an S-Corporation, it is expected to change to the accrual basis if its annual gross receipts exceed $10 million.
Quality improvement, relevant costs, relevant revenues. SpeedPrint manufactures and sells 18,000 high-technology printing presses each year. The variable and fixed costs of rework and repair are as follows:
Variable Cost Fixed Cost Total Cost
Rework Cost per hr. $79 $115 $194
Repair Cost
Customer Support cost/hr. 35 55 90
Transportation Cost/load 350 115 465
Warranty repair cost/hour 89 150 239
Speed Print’s current presses have a quality problem that causes variations in the shade of some colors. Its engineers suggest changing a key component in each press. The new component will cost $70 more than the old one. In the next year, however, Speed Print expects that with the new component it will
(1) save 14,000 hours of rework,
(2) save 850 hours of customer support,
(3) move 225 fewer loads,
(4) save 8,000 hours of warranty repairs, and
(5) sell an additional 140 printing presses, for a total contribution margin of $1,680,000. SpeedPrint believes that even as it improves quality, it will not be able to save any of the fixed costs of rework or repair. SpeedPrint uses a 1-year time horizon for this decision because it plans to introduce a new press at the end of the year.
1. Should SpeedPrint change to the new component? Show your calculations.
2. Suppose the estimate of 140 additional printing presses sold is uncertain. What is the minimum number of additional printing presses that SpeedPrint needs to sell to justify adopting the new component?
3. What other factors should managers at SpeedPrint consider when making their decision about changing to a new component?
Answer:
1. Speed print SHOULD CHANGE to the new component
2. Since the new components incremental cost of the amount of $1,260,000 is lesser than the incremental savings of the amount of $1,926,500 which means that it will be of benefit if SpeedPrint invest in the new component.
3. Nonfinancial factors
Explanation:
1. Calculation to show whether Speed print
should change to the new component
First step is to calculate the Relevant costs
Relevant costs = $70 *18,000 copiers
Relevant costs= $1,260,000
Second step is to calculate Relevant Benefits
RELEVANT BENEFITS
Savings in rework costs $1,106,000
($79 *14,000 hours)
Add Savings in customer-support costs $29,750
($35 *850 hours)
Add Savings in transportation costs for parts $78,750
($350 *225 fewer loads)
Add Savings in warranty repair costs $712,000
($89 *8,000 repair-hours)
Add Contribution margin from increased sales $1,680,000
Cost savings and additional contribution margin $3,606,500
($1,106,000+$29,750+$78,750+$712,000+$1,680,000)
Based on the above calculation relevant benefits of the amount of $3,606,500 is higher than the relevant costs of the amount of $1,260,000 which means that Speed print
SHOULD CHANGE to the new component.
2. Based on the above calculation it shows that the new components incremental cost of the amount of $1,260,000 is lesser than the incremental savings of the amount of $1,926,500 which means that it will be of benefit if SpeedPrint invest in the new component.
Calculation for INCREMENTAL SAVINGS
Savings in rework costs $1,106,000
($79 *14,000 rework hours)
Add Savings in customer-support costs $29,750
($35 *850 customer-support hours)
Add Savings in transportation costs for parts $78,750
($350 *225 fewer loads)
Add Savings in warranty repair costs $712,000
($89 *8,000 repair-hours)
Incremental savings $1,926,500
($1,106,000 + $29,750 + $78,750 + $712,000)
3. The factors that the managers at SpeedPrint should consider when making their decision about changing to a new component will be NON-FINANCIAL FACTORS.
Because most of the parts for its irrigation systems are standard, Waterways handles the majority of its manufacturing as a process cost system. There are multiple process departments. Three of these departments are the Molding, Cutting, and Welding departments. All items eventually end up in the Packaging Department, which prepares items for sale in kits or individually. The following information is available for the Molding department for January.
Work in process beginning:
Units in process 24,100
Stage of completion for materials 80%
Stage of completion for labor and overhead 30%
Costs in work in process inventory:
Materials $168,470
Labor 68,020
Overhead 17,160
Total costs in beginning work in process $253,650
Units started into production in January 59,800
Units completed and transferred in January 58,300
Costs added to production: Materials $281,593
Labor 311,150
Overhead 60,120
Total costs added into production in January $652,863
Work in process ending:
Units in process 25,600
Stage of completion for materials 50%
Stage of completion for labor and overhead 10%
Required:
Prepare a production cost report for Waterways using the weighted-average method.
Answer:
Waterways
Molding Department
Production Cost Report
Total costs of production:
Units Materials Conversion Total
Costs in work in process inventory: $168,470 $85,180 $253,650
Units started in January $281,593 371,270 $652,863
Total costs of production $450,063 $456,450 $906,513
Equivalent units of production:
Units Materials Conversion
Units completed & transferred 58,300 58,300 58,300
Work in process ending: 25,600 12,800 2,560
(25,600*50%) (25,600*10%)
Total equivalent units 71,100 60,860
Cost per equivalent unit:
Materials Conversion
Total costs of production $450,063 $456,450
Total equivalent units 71,100 60,860
Cost per equivalent unit $6.33 $7.50
Costs Assigned to units:
Materials Conversion Total
Cost per equivalent unit $6.33 $7.50
Units started and completed (58,300) $369,039 $437,250 $806,289
Work in Process, ending 12,800/2,560 81,024 19,200 100,224
Total costs assigned $450,063 $456,450 $906,513
Explanation:
a) Data and Calculations:
Units Materials Conversion Total
Work in process beginning: 24,100 80% 30%
Costs in work in process inventory: $168,470 $85,180 $253,650
Labor 68,020
Overhead 17,160
Units started in January 59,800 $281,593 371,270 $652,863
Units transferred 58,300
Labor 311,150
Overhead 60,120
Work in process ending: 25,600 50% 10%
Sunland Design was founded by Thomas Grant in January 2011. Presented below is the adjusted trial balance as of December 31, 2020.
SUNLAND DESIGN
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $11,760
Accounts Receivable 22,260
Supplies 5,760
Prepaid Insurance 3,260
Equipment 60,760
Accumulated Depreciation-Equipment $35,760
Accounts Payable 5,760
Interest Payable 228
Notes Payable 7,600
Unearned Service Revenue 6,360
Salaries and Wages Payable 1,496
Common Stock 10,760
Retained Earnings 4,260
Service Revenue 62,260
Salaries and Wages Expense 12,060
Insurance Expense 1,046
Interest Expense 578
Depreciation Expense 9,600
Supplies Expenses 3,400
Rent Expense 4,000
$134,484 $134,00
Instructions
Prepare an income statement and a retained earnings statement for the year ending December 31, 2020, and an unclassified balance sheet at December 31.
Answer:
Part a
Income Statement $ $
Service Revenue 62,260
Less Expenses
Salaries and Wages Expense 12,060
Insurance Expense 1,046
Interest Expense 578
Depreciation Expense 9,600
Supplies Expenses 3,400
Rent Expense 4,000 (30,684)
Net Income 31,576
Part b
Retained Income Statement $
Beginning Retained Earnings (27,316)
Add Profit for the year 31,576
Ending Retained Earnings 4,260
Part c
Unclassified Balance Sheet $
ASSETS
Equipment 60,760
Accumulated Depreciation-Equipment (35,760) 25,000
Accounts Receivable 22,260
Supplies 5,760
Prepaid Insurance 3,260
Cash 11,760
TOTAL ASSETS 68,040
EQUITY AND LIABILITIES
EQUITY
Common Stock 10,760
Retained Earnings 4,260
TOTAL EQUITY 15,020
LIABILITIES
Accounts Payable 5,760
Interest Payable 228
Notes Payable 7,600
Unearned Service Revenue 6,360
Salaries and Wages Payable 1,496
TOTAL LIABILITIES 21,440
TOTAL EQUITY AND LIABILITIES 36,460
Explanation:
The Income Statement shows the Profit earned during the year. Profit = Sales - Expenses
The Retained Earnings Statement Shows the Retained Earnings Balance at end of the year. Retained Earnings Balance = Opening Balance + Profit - Dividends.
The Balance Sheet shows the Asset, Liabilities and Equity balances as at the reporting date.
Compute the (a) cost of products transferred from weaving to sewing, (b) cost of products transferred from sewing to finished goods, and (c) cost of goods sold. 2. Prepare journal entries dated June 30 to record (a) goods transferred from weaving to sewing, (b) goods transferred from sewing to finished goods, (c) sale of finished goods, and (d) cost of goods sold
Question Completion:
The following information applies to Pro-Weave manufactures stadium blankets by passing the products through a weaving department and a sewing department. The following information is available regarding its June inventories:
Beginning Ending
Inventory Inventory
Raw materials inventory $ 120,000 $ 185,000
Work in process inventory-Weaving 300,000 330,000
Work in process inventory-Sewing 570, 000 700,000
Finished goods inventory 1,266,000 1,206,000
The following additional information describes the company's manufacturing activities for June:
Raw materials purchases (on credit) $500,000
Factory wages cost (paid in cash) 3,060,000
Other factory overhead cost (other Accounts credited) 156, 000
Materials used:
Direct-Weaving $ 240, 000
Direct-Sewing 75,000
Indirect 120,000
Labor used:
Direct-Weaving $1,200, 000
Direct-Sewing 360,000
Indirect 1,500,000
Overhead rates as a percent of direct labor:
Weaving Sewing
80% 150%
Sales (on credit) $4,000,000
Answer:
Pro-Weave
1. Computation of:
a) Cost of products transferred from Weaving to Sewing = $2,370,000
b) Cost of products transferred from Sewing to Finished Goods = $3,215,000
c) Cost of Goods Sold = $3,275,000
2. Journal Entries on June 30 to record:
(a) goods transferred from weaving to sewing
Debit WIP: Sewing $2,370,000
Credit WIP: Weaving $2,370,000
To transfer goods from weaving to sewing.
(b) goods transferred from sewing to finished goods
Debit Finished Goods Inventory $3,215,000
Credit WIP: Sewing $3,215,000
To transferred goods from sewing to finished goods.
(c) sale of finished goods, and
Debit Accounts Receivable $4,000,000
Credit Sales Revenue $4,000,000
To record the sale of goods on credit.
(d) cost of goods sold
Debit Cost of Goods Sold $3,275,000
Credit Finished Goods Inventory $3,275,000
To record the cost of goods sold.
Explanation:
a) Data and Calculations:
Items Weaving Sewing Finished Goods
Beginning Inventory $ 300,000 $570,000 $1,266,000
Direct materials 240,000 75,000
Direct labor 1,200,000 360,000
Overhead applied:
(1,200,000 * 80%) 960,000
($360,000 * 150%) 540,000
Cost of Weaving $2,700,000
Less Ending Inventory 330,000
Transferred to Sewing ($2,370,000) 2,370,000
Total cost of Sewing $3,915,000
Less Ending Inventory 700,000
Transferred to Finished Goods ($3,215,000) 3,215,000
Goods available for sale $4,481,000
Less Ending Inventory 1,206,000
Cost of Goods Sold $3,275,000
Manufacturing overhead actually incurred:
Indirect materials 120,000
Indirect labor 1,500,000
Total incurred 1,620,000
difference between a public limited liability and private limited liability company
Answer: A private limited company is a company that is owned privately, while a public limited company has the right to sell shares of it's stock to the public
Explanation:
n
On December 1, 2022, Escobar Consulting, which uses a calendar year as its fiscal year, signs a $4,000, 12%, four-month note payable. Journalize the entry to record the payment of the note and entire interest on April 1, 2023.
A. Debit Notes Payable $4,160 Credit Interest Expense 160 Credit Cash $4,000
B. Debit Notes Payable $4,160 Credit Cash $4,160 You got it wrong :
C. Debit Notes Payable $4,000 Debit Interest Expense 160 Credit Cash $4,160 This is correct answer :
D. Debit Notes Payable $4,000 Debit Interest Expense 120 Debit Interest Payable 40 Credit Cash $4,160
Answer:
D. Debit Notes Payable $4,000 Debit Interest Expense 120 Debit Interest Payable 40 Credit Cash $4,160
Explanation:
The journal entry is shown below:
Note payable Dr $4,000
Interest expense $120 (($4,000 × 12% × 4 months ÷ 12 months) - $40)
Interest payable $40 ($4,000 × 12% × 4 months ÷ 12 months ÷ 4 month)
To Cash $4,160
(being cash paid is recorded)
Here the note payable, interest payable and interest expense is debited as it decreased the liabilities and increased the expenses while on the other hand the cash is credited as it decreased the assets
Your client, Keith Teal Leasing Company, is preparing a contract to lease a machine to Souvenirs Corporation for a period of 27 years. Teal has an investment cost of $430,300 in the machine, which has a useful life of 27 years and no salvage value at the end of that time. Your client is interested in earning an 11% return on its investment and has agreed to accept 27 equal rental payments at the end of each of the next 27 years.
A. Prepare an amortization schedule that would be suitable for the lessee for the lease term. (Round answers to 0 decimal places, e.g. 5,265.)
B. Prepare all of the journal entries for the lessee for 2020 and 2021 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,265. Record journal entries in the order presented in the problem.)
Answer:
Souvenirs Corporation (Lessee)
A. Amortization Schedule
Beginning Balance Interest Principal Ending Balance
1 $430,300.00 $47,333.00 $3,007.44 $427,292.56
2 $427,292.56 $47,002.18 $3,338.26 $423,954.31
3 $423,954.31 $46,634.97 $3,705.46 $420,248.84
4 $420,248.84 $46,227.37 $4,113.06 $416,135.78
5 $416,135.78 $45,774.94 $4,565.50 $411,570.28
6 $411,570.28 $45,272.73 $5,067.71 $406,502.57
7 $406,502.57 $44,715.28 $5,625.15 $400,877.42
8 $400,877.42 $44,096.52 $6,243.92 $394,633.50
9 $394,633.50 $43,409.68 $6,930.75 $387,702.74
10 $387,702.74 $42,647.30 $7,693.14 $380,009.61
11 $380,009.61 $41,801.06 $8,539.38 $371,470.23
12 $371,470.23 $40,861.73 $9,478.71 $361,991.52
13 $361,991.52 $39,819.07 $10,521.37 $351,470.15
14 $351,470.15 $38,661.72 $11,678.72 $339,791.43
15 $339,791.43 $37,377.06 $12,963.38 $326,828.05
16 $326,828.05 $35,951.09 $14,389.35 $312,438.69
17 $312,438.69 $34,368.26 $15,972.18 $296,466.51
18 $296,466.51 $32,611.32 $17,729.12 $278,737.39
19 $278,737.39 $30,661.11 $19,679.32 $259,058.07
20 $259,058.07 $28,496.39 $21,844.05 $237,214.02
21 $237,214.02 $26,093.54 $24,246.89 $212,967.12
22 $212,967.12 $23,426.38 $26,914.05 $186,053.07
23 $186,053.07 $20,465.84 $29,874.60 $156,178.47
24 $156,178.47 $17,179.63 $33,160.81 $123,017.67
25 $123,017.67 $13,531.94 $36,808.49 $86,209.17
26 $86,209.17 $9,483.01 $40,857.43 $45,351.75
27 $45,351.75 $4,988.69 $45,351.75 -$0.00
Payment Every Year = $50,340.44
B. Journal Entries for first two years of the lease for the Lessee:
2020:
Debit Right of Use Asset $1,359,191.80
Credit Lease Liability $1,359,191.80
To record the lease for 27 years.
Debit Lease Liability $3,007.44
Debit Interest on Lease $47,333.00
Credit Cash $50,340.44
To record the lease interest expense.
2021:
Debit Lease Liability $3,338.26
Debit Interest on Lease $47,002.18
Credit Cash $50,340.44
To record the lease interest expense.
Explanation:
a) Data and Calculations
Cost of Machine = $430,300
Useful life of machine = 27 years
Salvage value = $0
Expected return on investment = 11%
Period of equal rental payments = 27 years
From the online financial calculator:
Payment Every Year = $50,340.44
Total of 27 Payments = $1,359,191.80
Total Interest = $928,891.80
Amortization Table shows that at the end of 27 years:
Principal = 32%
Interest = 68% of the total lease payments.
1. Assume that Lyn Addie is an unmarried employee. Her $1,000 of wages have deductions for FICA Social Security taxes, FICA Medicare taxes, and federal income taxes. Her federal income taxes for this pay period total $159. Compute her net pay for the eight days’ work paid on February 26. (Round your answer to 2 decimal places. Do not round intermediate calculations.)
Answer:
Net pay $764.5
Explanation:
given data
wages = $1000
income taxes = $159
solution
particular net pay
Gross wages $1000
less
Income taxes withheld $159
FICA-social security (1000×6.2%) = $62
FICA-Medicare taxes (1000×1.45%) = $14.5
Total taxes withheld (235.5)
So, Net Pay $764.5
Favaz began business at the start of this year and had the following costs: variable manufacturing cost per unit, $9; fixed manufacturing costs, $60,000; variable selling and administrative costs per unit, $2; and fixed selling and administrative costs, $220,000. The company sells its units for $45 each. Additional data follow: Planned production in units10,000 Actual production in units10,000 Number of units sold8,500 There were no variances. The income (loss) under absorption costing is:
Answer:
$18,000
Explanation:
Calculation for what The income (loss) under absorption costing is:
First step is to calculate the Fixed manufacturing
per unit
Fixed manufacturing per unit = $60,000 ÷ 10,000
Fixed manufacturing per unit= $6
Second step is to calculate per unit cost
Cost Per Unit=$45 − $9 − $2 − $6 ×$ 8,500
Cost Per Unit = $238,000
Now let calculate the income (loss)
Income (loss)= $238,000 − $220,000
Income (loss) = $18,000
Therefore The income (loss) under absorption costing is:$18,000
Gross Domestic Product (GDP) can be defined as: I. The sum of all incomes while adjusting for indirect business taxes and foreign incomes. II. The market value of goods and services sold in an economy in some time period. III. The total market value of final goods and services produced in an economy in some time period. III only I and II only I, II and III II and III only I and III only
Answer:
I and III only
Explanation:
The full form of GDP is Gross domestic product. It is the sum of all the income at the time when the business taxes i.e. indirect and the foreign incomes would be adjusted also it is a sum total of market value of the goods and services i.e. final generated in an economy for a time period
Therefore the I and III statements are true
Financial Statements of a Manufacturing Firm The following events took place for Sorensen Manufacturing Company during January, the first month of its operations as a producer of digital video monitors: Purchased $250,000 of materials. Used $180,000 of direct materials in production. Incurred $450,000 of direct labor wages. Incurred $180,000 of factory overhead. Transferred $760,000 of work in process to finished goods. Sold goods for $1,200,000. Sold goods with a cost of $675,000. Incurred $215,000 of selling expense. Incurred $125,000 of administrative expense. Using the information given, complete the following: a. Prepare the January income statement for Sorensen Manufacturing Company. Sorensen Manufacturing Company Income Statement For the Month Ended January 31 $fill in the blank b5f0e3f6afbdf9c_2 fill in the blank b5f0e3f6afbdf9c_4 $fill in the blank b5f0e3f6afbdf9c_6 Operating expenses: $fill in the blank b5f0e3f6afbdf9c_8 fill in the blank b5f0e3f6afbdf9c_10 Total operating expenses fill in the blank b5f0e3f6afbdf9c_11 $fill in the blank b5f0e3f6afbdf9c_13 b. Determine the inventory balances at the end of the first month of operations. Sorensen Manufacturing Company Inventory Balances For the Month Ended January 31 Inventory balances on January 31: Materials $fill in the blank d1d32afb2ff9fae_1 Work in process fill in the blank d1d32afb2ff9fae_2 Finished goods fill in the blank d1d32afb2ff9fae_3
Answer:
A. $185,000
B. Raw material $70,000
Work in process $50,000
Finished goods $85,000
Explanation:
A. Preparation of the January income statement for Sorensen Manufacturing Company
Sorensen Manufacturing Company
Income statement
Sales $1,200,000
Cost of goods sold $675,000
Gross profit $525,000
Operating expense
Selling expense $215,000
Administrative expense $125,000
Total operating expense $340,000
($215,000+$125,000)
Operating income $185,000
($525,000-$340,000)
B. Calculation to Determine the inventory balances at the end of the first month of operations.
Sorensen Manufacturing Company
Inventory Balances For the Month Ended January 31
Raw material =$250,000-$180,000
Raw material =$70,000
Work in process =$180,000+$450,000+$180,000-$760,000
Work in process =$50,000
Finished goods =$760,000-$675,000
Finished goods=$85,000
Dillon Company incurred the following costs while producing 480 units: direct materials, $9 per unit; direct labor, $22 per unit; variable manufacturing overhead, 12 per unit; total fixed manufacturing overhead costs, $7,680; variable selling and administrative costs, $4 per unit; total fixed selling and administrative costs, $4,320. There are no beginning inventories.
What is the unit product cost using variable costing?
A. $72 per unit
B. $59 per unit
C. $47 per unit
D. $43 per unit
Answer:
The unit cost is $43 per unit
Explanation:
Required
Determine the unit product cost?
Using variable costing, the unit product cost is:
[tex]Unit = DM+ DL + VMO[/tex]
[tex]DM = Direct\ Materials =\$9[/tex]
[tex]DL = Direct\ Labor =\$22[/tex]
[tex]VMO = Variable\ Manufacturing\ Overhead = \$12[/tex]
So, we have:
[tex]Unit = \$9 + \$22 + \$12[/tex]
[tex]Unit = \$43[/tex]
Hence, the unit cost is $43 per unit
Tamarisk Leasing Company agrees to lease equipment to Vaughn Corporation on January 1, 2020. The following information relates to the lease agreement.
1. The term of the lease is 7 years with no renewal option, and the machinery has an estimated economic life of 9 years.
2. The cost of the machinery is $541,000, and the fair value of the asset on January 1, 2020, is $760,000.
3. At the end of the lease term, the asset reverts to the lessor and has a guaranteed residual value of $45,000. Vaughn estimates that the expected residual value at the end of the lease term will be 45,000. Vaughn amortizes all of its leased equipment on a straight-line basis.
4. The lease agreement requires equal annual rental payments, beginning on January 1, 2020.
5. The collectibility of the lease payments is probable.
6. Tamarisk desires a 10% rate of return on its investments. Vaughn’s incremental borrowing rate is 11%, and the lessor’s implicit rate is unknown.
(Assume the accounting period ends on December 31.)
Click here to view factor tables.
Discuss the nature of this lease for both the lessee and the lessor.
This is a operating leasesales-type leasefinance lease for Vaughn.
This is a sales-type leaseoperating leasefinance lease for Tamarisk.
eTextbook and Media
List of Accounts
Calculate the amount of the annual rental payment required. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.)
Annual rental payment
$
eTextbook and Media
List of Accounts
Compute the value of the lease liability to the lessee. (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,972.)
Present value of minimum lease payments
$
eTextbook and Media
List of Accounts
Prepare the journal entries Vaughn would make in 2020 and 2021 related to the lease arrangement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 58,972. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
1/1/2012/31/201/1/2112/31/21
(To record the lease.)
(To record lease payment.)
1/1/2012/31/201/1/2112/31/21
(To record amortization.)
(To record interest.)
1/1/2012/31/201/1/2112/31/21
1/1/2012/31/201/1/2112/31/21
(To record amortization.)
(To record interest.)
eTextbook and Media
List of Accounts
Prepare the journal entries Tamarisk would make in 2020 and 2021 related to the lease arrangement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places e.g. 58,972. Record journal entries in the order presented in the problem.)
Date
Account Titles and Explanation
Debit
Credit
1/1/2012/31/201/1/2112/31/21
(To record the lease.)
1/1/2012/31/201/1/2112/31/21
(To record lease payment.)
1/1/2012/31/201/1/2112/31/21
1/1/2012/31/201/1/2112/31/21
1/1/2012/31/201/1/2112/31/21
Answer:
1. Finance lease to Vaughn Corporation
Sales-type lease
2. Annual Rental = $ 137,604
3. Lease Liability = $ 741,418
4. Vaughn Corporation.
2020
Jan. 1
Dr Lease Equipment $741,418
Cr Lease Liability $741,418
Jan. 1
Dr Lease Liability $137,064
Cr Cash $137,064
Dec. 31
Dr Depreciation Expense $99,488
Cr Accumulated Depreciation - Finance Lease $99,488
Dec. 31
Dr Interest Expense $66,479
Cr Interest Payable $66,479
2021
Jan. 1
Dr Lease Liability $70,585
Dr Interest Payable $66,479
Cr Cash $137,064
Dec. 31
Dr Depreciation Expense $99,488
Dr Accumulated Depreciation - Finance Lease $99,488
Dec. 31
Dr Interest Expense $58,715
Dr Interest Payable $58,715
5. Tamarisk Leasing Company.
2020
Jan. 1
Dr Lease Receivable $760,000
Dr Cost of Goods Sold $541,000
Cr Sales Revenue $760,000
Cr Inventory $541,000
Jan. 1
Dr Cash $137,064
Cr Lease Receivable $137,064
Dec. 31
Dr Interest Receivable $62,294
Cr Interest Revenue $62,294
2021
Jan. 1
Dr Cash $137,064
Cr Lease Receivable $74,770
Cr Interest Receivable $62,294
Dec. 31
Dr Interest Receivable $54,817
Cr Interest Revenue $54,817
Explanation:
1. Discussion of the nature of this lease for both the lessee and the lessor.
(i) Based on the information given it is a Finance lease to Vaughn Corporation reason been that the term of the lease is higher than 75% of the leased asset economic life based on the fact that the term of the leaseis 78% calculated as (7/9).
(ii) Based on the information given Tamarisk Leasing Company reason been the lease payments can be predictable because their are no uncertainties concerning the costs that is yet to be incurred by the lessor, and secondly the term of the lease is higher than 75% of the asset’s economic life because the amount of $ 760,000 of the equipment is above the lessor’s cost of the amount of $ 541,000 which is why the lease is a Sales-type lease
2. Calculation of Annual Rental Payment
Annual Rental = {FV - (RV * PVF(n=7 years, r=10%))} / PVADF(n=7 years, r=10%)
Annual Rental = {$ 760,000 - ($ 45,000 * 0.51316} / 5.35526
Annual Rental = $ 137,604
3. Calculation of Lease Liability to the Lessee.
First step
Present Value of Annual Payments = $ 137,604 * PVADF(n= 7 years, r=11%)
Present Value of Annual Payments = $ 137,604 *5.23054
Present Value of Annual Payments = $ 719,743
Present Value of Guaranteed Residual Value = $ 45,000 * PVF(n= 7 years, r=11%)
Present Value of Annual Payments = $ 45,000 * .48166
Present Value of Annual Payments = $ 21,675
Hence,
Lease Liability = $ 719,743 + $ 21,675
Lease Liability = $ 741,418
4. Preparation of the Journal Entries for Vaughn Corporation.
2020
Jan. 1
Dr Lease Equipment $741,418
Cr Lease Liability $741,418
Jan. 1
Dr Lease Liability $137,064
Cr Cash $137,064
Dec. 31
Dr Depreciation Expense $99,488
Cr Accumulated Depreciation - Finance Lease $99,488
($ 741418 - $ 45,000) ÷ 7 years
Dec. 31
Dr Interest Expense $66,479
Cr Interest Payable $66,479
($ 741418 - $ 137,064) * 11%
2021
Jan. 1
Dr Lease Liability $70,585
Dr Interest Payable $66,479
Cr Cash $137,064
Dec. 31
Dr Depreciation Expense $99,488
Dr Accumulated Depreciation - Finance Lease $99,488
Dec. 31
Dr Interest Expense $58,715
Dr Interest Payable $58,715
($ 741418 - $ 137,064 - $ 70,585) * 11%
5. Preparation of the Journal Entries for Tamarisk Leasing Company.
2020
Jan. 1
Dr Lease Receivable $760,000
Dr Cost of Goods Sold $541,000
Cr Sales Revenue $760,000
Cr Inventory $541,000
Jan. 1
Dr Cash $137,064
Cr Lease Receivable $137,064
Dec. 31
Dr Interest Receivable $62,294
Cr Interest Revenue $62,294
($ 760,000 - $ 137064) * 10%
2021
Jan. 1
Dr Cash $137,064
Cr Lease Receivable $74,770
Cr Interest Receivable $62,294
Dec. 31
Dr Interest Receivable $54,817
Cr Interest Revenue $54,817
($ 760,000 - $ 137064 - $ 74,770) * 10%