Bantam company calculated its net income to be $77,600 based on the unadjusted trial balance. The following adjusting entries were then made for: Salaries and wages owed but not yet paid of $795. Interest earned but not received from investments of $755. Prepaid insurance premiums amounting to $555 have expired. Deferred revenue in the amount of $755 has now been earned. Required: Determine the amount of net income (loss) that will be reported after the adjustments are recorded.
Answer:
$77,760
Explanation:
After adjustment items of expenses will be deducted from the Net income, and items of income will be added to the net income.
Item of expenses = unpaid salary + Prepaid insurance (Expired)
Item of income = Interest earned + revenue
Net income after deduction = 77,600 - 795 - 555 + 755 + 755
Net income after deduction = $77,760
The MM theory with taxes implies that firms should issue maximum debt.There is a difference between theory and practice because:
Answer:
There is a difference between theory and practice because the theory states with taxes implies that firms should issue maximum debt but in practice, this does not occur because it will result in bankruptcy if firms are issuing maximum debt. There should be a balance between how much debt is acquired and how much equity is taken. Therefore bankruptcy becomes a cause of concern if maximum debt is issued.
Texas has a relatively regressive tax structure when compared to most states, which means Multiple Choice poorer citizens do not have to pay taxes but also lack access to most public services. Texas has a flat tax (taxing at the same rate for all incomes), which adversely affects poorer citizens. poorer citizens pay a larger percentage of their income in taxes than do wealthier citizens. poorer citizens pay a smaller percentage of their income in taxes than do wealthier citizens.
Answer: Poorer citizens pay a larger percentage of their income in taxes than do wealthier citizens.
Explanation:
Regressive tax structures mean that the taxes charged are a flat rate across all income groups.
This might sound equitable but isn't because it means that lower income earners see a larger percentage of their income taken than the higher income earners because they have lower incomes to pay the taxes on.
In Texas therefore, poorer citizens pay a larger percentage of their income in taxes than do wealthier citizens.
Texas has a relatively regressive Tax system, this means that poorer citizens pay a larger percentage of their income in taxes than do wealthier citizens.
A regressive Tax system is a type of taxation whereby those that are poorer in the society would pay more in taxes than those that are wealthy and rich in the society.
In this type of Tax system, the tax rate falls as the taxable income of the tax payer goes up. This is a direct opposite of the progressive tax system.
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Colt Football Co. had a player contract with Watts that is recorded in its books at $5,600,000 on July 1, 2014. Day Football Co. had a player contract with Kurtz that is recorded in its books at $7,000,000 on July 1, 2014. On this date, Colt traded Watts to Day for Kurtz and paid a cash difference of $700,000. The fair value of the Kurtz contract was $8,400,000 on the exchange date. The exchange had no commercial substance. After the exchange, the Kurtz contract should be recorded in Colt's books at
Answer:
the amount after the exchange is $6,300,000
Explanation:
The computation of the amount after the exchange is as follows;
= Book value + cash paid
= $5,600,000 + $700,000
= $6,300,000
Since it has no commerical substance so no loss or no gain is recorded
hence, the amount after the exchange is $6,300,000
Therefore the same is to be considered
Ryan Company deposits all cash receipts on the day they are received and makes all cash payments by check. Ryan's June bank statement shows $29,361 on deposit in the bank. Ryan's comparison of the bank statement to its cash account revealed the following: Additionally, a $49 check written and recorded by the company correctly, was recorded by the bank as a $94 deduction. The adjusted cash balance per the bank records should be:
Answer:
The adjusted cash balance per the bank records should be $29,406
Explanation:
Adjusted Balance is the money that a business or individual should have in the bank account assuming all the entries made in the cash book are correct.
As Bank deducted $45 ( $94 - $49 ) more in respect of check written. Check written is a deduction which is made against the payment against the check written.
Balance as per bank statement ___ $29,361
Add: Correction of error ($94 - $49)_$45
Adjusted Cash Balance _________ $29,406
Suppose that you are an economic-policy advisor. Environmental groups are pressuring you to implement the highest-possible carbon tax while industry groups are pressuring you to implement no carbon tax at all. Both argue that their position makes more sense economically. In fact, the most efficient tax level is: Group of answer choices a tax equal to the social cost. a tax equal to the external cost. the highest possible tax. no tax at all.
Answer: a tax equal to the external cost.
Explanation:
The most efficient taxes are those that will be equal to the external cost of production that a company is imposing on the environment. This means in effect that a company is paying for the pollution it is inflicting on the environment.
Companies polluting less would pay less and those polluting more would pay more. This is the logic of a tax equal to the external cost.
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
Furniture purchased from Kailash for Rs. 6,000.
Answer:
What's the question or is this a statement?
Explanation:
?
Garth Corporation sells a single product. If the selling price per unit and the variable expense per unit both increase by 10% and fixed expenses do not change, then: Contribution margin per unit Contribution margin ratio Break-even in units A) Increases Increases Decreases B) No change No change No change C) No change Increases No change D) Increases No change Decreases Option C Option B Option D Option A
Answer:
D) Increases No change Decreases
Explanation:
Contribution margin is Sales less Variable Costs. This will increase if the selling price per unit and the variable expense per unit both increase.
Contribution margin ratio is Contribution expressed as a percentage of Sales. This will stay the same when the selling price per unit and the variable expense per unit both increase by the same percentage.
Break-even in units is Fixed Costs divided my contribution per unit. This will decrease as the Contribution margin has increased.
In a master schedule, the planning horizon is often separated into a series of time periods called:
a. lead times
b. stacked lead times
c. time buckets
d. firm, fixed, and frozen
Answer: time buckets
Explanation:
In a master schedule, the planning horizon is often separated into a series of time periods called time buckets.
The time bucket is simply a time interval that is used for planning and scheduling. If and information is to be broken into weekly periods, the weekly buckets break will be utilized. It should be noted that for a MRP, the maximum is the weekly buckets.
Suppose the Digby company expands to other markets with good designs, high awareness and easy accessibility, what strategy would they be implementing?
A- Niche cost leader
B- Niche differentiation
C- Broad cost leader
D- Broad differentiation
Answer:
D- Broad differentiation
Explanation:
Differentiation strategies are useful if buyers needs and preferences are too diverse, one can be fully satisfied by standardizing product offering.
A broad differentiation strategy is simply the competitive approach used when buyers' needs and preferences are too different or large to be satisfied by a product that is importantly identical from one seller to the other seller.
is fulfilled if a big scope of buyers find the company's offering more enticing than that of rivals and worth a somewhat higher price. It makes profitability to increase if the higher price the product commands exceeds the added costs of achieving the differentiation.
Hart corporation owns machinery with a book value of 285,000. It is estimated that the machinery will generate future cash flows of 300,000. The machinery has a fair value of 210,000. Hart should recognize a loss on impairment of:___________
a) 0
b) 15,000
c) 75,000
d) 90,000
Data related to the inventories of Costco Medical Supply are presented below: Surgical Surgical Rehab Rehab Equipment Supplies Equipment Supplies Selling price $ 260 $ 100 $ 340 $ 165 Cost 170 90 250 162 Costs to sell 30 15 25 10 In applying the lower of cost or net realizable value rule on an individual item basis, the inventory of surgical equipment would be valued at: (do not include $ in your answer)
Answer:
the inventory that should be valued is $170
Explanation:
The computation of the inventory of surgical equipment is shown below:
Costs $170
Net Realizable Value:
Selling price $260
Less: Costs to sell -$30 $230
Lower of cost or net realizable value $170
As we know that the inventory should be valued at cost or net realizable value whichever is lower
So, the inventory that should be valued is $170
The following information is also available: A) A count of supplies revealed $1,800 worth on hand at December 31, 2018. B) An insurance policy, purchased on January 1, 2018, covers four years. C) The equipment depreciates at a rate of $2,400 per year; no depreciation has been recorded for 2018. D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018. E) The accrued amount of salaries and wages at December 31, 2018 is $3,400.
Answer:
the requirements are missing, but I guess that you need to make the year-end adjustment entries
A) A count of supplies revealed $1,800 worth on hand at December 31, 2018.
Dr Supplies expense 2,000
Cr Supplies 2,000
B) An insurance policy, purchased on January 1, 2018, covers four years.
Dr Insurance expense 1,900
Cr Prepaid insurance 1,900
C) The equipment depreciates at a rate of $2,400 per year; no depreciation has been recorded for 2018.
Dr Depreciation expense 2,400
Cr Accumulated depreciation 2,400
D) One half (or 50%) of the amount recorded as Deferred Revenue remains deferred as of December 31, 2018.
Dr Deferred revenues 6,000
Cr Service revenue 6,000
E) The accrued amount of salaries and wages at December 31, 2018 is $3,400.
Dr Wages expense 3,400
Cr Wages payable 3,400
Corporation produces shiny discs. A special order has been placed by the customer for 2,200 units of the shiny disc for $27 a unit. While the disc would be modified slightly for the special order, the normal unit product cost for each disc is $20.50:
Direct materials $ 5.80
Direct labor 4.00
Variable manufacturing overhead 2.90
Fixed manufacturing overhead 7.80
Unit product cost $ 20.50
Assume that direct labor is a variable cost. The special order would have no effect on the company's total fixed manufacturing overhead costs.The customer would like modifications made to each disc that would increase the variable costs by $1.90 per unit and that would require an investment of $16,000 in special equipment that would have no salvage value.This special order would have no effect on Rick Corp.'s other sales. The company has enough spare capacity for producing the special order.What would be the annual financial advantage (disadvantage) for Rick as a result of accepting this special order?a. $40,760b. ($15,700)c. ($2,000)d. $16,200
Answer:
Effect on income= $11,280 increase
Explanation:
Giving the following information:
A special order has been placed by the customer for 2,200 units of the shiny disc for $27 a unit.
Because it is a special order, we will take into account only the differential fixed costs.
First, we need to calculate the total unitary cost and differential fixed costs:
Total unitary variable cost= 5.80 + 4 + 2.9 + 1.9
Total unitary variable cost= $14.6
Total fixed cost= $16,000
Now, we can determine the effect on income:
Effect on income= 2,200*(27 - 14.6) - 16,000
Effect on income= $11,280 increase
Corporation makes an extra large part to use in one its fabulous products. A total of 22,000 units of this extra large part are produced and used every year. The company's costs of producing the extra large part at this level of activity are below:
Per Unit
Direct materials $4.70
Direct labor $9.30
Variable manufacturing overhead $9.80
Supervisor's salary $5.20
Depreciation of special equipment $3.60
Allocated general overhead $8.80
An outside supplier has offered to make the extra large part and sell it to for $31.90 each. If this offer is accepted, the supervisor's salary and all of the variable costs, including the direct labor, can be avoided. The special equipment used to make the extra large part has no salvage value or other use. The allocated general overhead represents fixed costs of the entire company none of which would be avoided if the part were purchased instead of produced internally. In addition, the space used to make the extra large part could be used to make more of one of the company's other fabulous products, generating an additional segment margin of $34,000 per year for that product (Q). What would be the annual financial advantage (disadvantage) for Corp. as a result of buying the extra large part from the outside supplier?
Answer: Financial disadvantage of -$29,800
Explanation:
If extra large part is produced inhouse;
= Direct materials + direct labor + Variable manufacturing overhead + Supervisor's salary + opportunity cost of making other products
= ((4.7 + 9.3 + 9.8 + 5.2) * 22,000) + 34,000
= $672,000
Cost if bought outside;
= 31.90 * 22,000
= $701,800
Financial advantage ( disadvantage) = 672,000 - 701,800
= -$29,800
On January 1, two years ago, Parkway Corporation purchased all of the outstanding common stock of Shaw Company for $220,000 cash. On that date, Shaw's net assets had a book value of $148,000. Equipment with an 8-year life was undervalued by $20,000 in Shaw's financial records. Shaw has a database that is valued at $52,000 and will be amortized over ten years. Shaw reported net income of $25,000 in the year of acquisition and $32,500 in the following year. Dividends of $2,500 were declared and paid in each of those two years.
The third year of operations is now complete. For each of the two companies, selected account balances as of December 31 for this third year are as follows: Park way ShawRevenues 250,000 142,500Expenses 175,000 100,000 Equipment 125,000 60,000 Retained earnings, begining of the year 150,000 75,000Dividend paid 25,000 5,000What is consolidated net income for the third year of operations if the parent company uses the partial equity method?
A) $109,800
B) $112,000
C) $115,000
D) $117,500
E) $113,500
Answer:
A) $109,800
Explanation:
The computation of the consolidated net income using the partial equity method is as follows;
= Park way revenue + Shaw revenue - part way expenses - shaw expenses - dividend declared - amortization expenses
= $25,0000 + $142,500 - $175,000 - $100,000 - $2,500 - ($52,000 ÷ 10 years)
= $109,800
Hence, the correct option is A.
PLEASE HELP ASAP!!!!!
Type the correct answer in the box. Spell all words correctly.
At which stage of advertising is the customer motivated to take action?
The customer is motivated to take action at the
_______ stage of advertising.
Explanation:
I think 5 th stage is the correct answer
pls mark me as BRAINLIAST
Agriculture allows for a higher carrying capacity (it can produce more and support more people) than other adaptive strategies. This gives rise to higher population density and can allow more easily for an elite supported by the labor of others.
A. True
B. False
Answer:
A. True
Explanation:
As we know that the agriculture is the main source i.e. important for generating or producing any type or any kind of the processed food also at the same time it became helpful for producing various employment opportunities
So as per the given statement, the statement is true
hence, the same is to be considered
g CVP analyses (18 points) MusicWizard, Inc. manufactures and sells trombones with the following price and cost characteristics: Selling price per unit $125.00 Variable manufacturing cost per unit $50 Variable marketing cost per unit $25 Total fixed manufacturing costs $100,000 Total fixed administrative costs $80,000 a. How many units of products must MusicWizard sell to make an operating profit of $120,000 for the year
Answer:
Break-even point in units= 6,000
Explanation:
Giving the following information:
Selling price per unit $125.00
Total unitary variable cost= $75
Total fixed costs= $180,000
Desired profit= $120,000
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (180,000 + 120,000) / (125 - 75)
Break-even point in units= 6,000
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
A company has $110,000 in outstanding accounts receivable and it uses the allowance method to account for uncollectible accounts. Experience suggests that 4% of outstanding receivables are uncollectible. The current balance (before adjustments) in the allowance for doubtful accounts is a(n) $1,000 credit. The journal entry to record the adjustment to the allowance account includes a debit to Bad Debts Expense for:
Answer:
Provision on accounts receivable = $110,000 * 4% = $4,400
Total allowance for doubtful accounts = $4,400 - $1,000 = $3,400
Date Account Titles and Explanation Debit Credit
Bad debt expense $3,400
Allowance for doubtful accounts $3,400
(To record the bad debt expense)
When a country (or a person) borrows money to pay yearly debt they are involved in this type of spending.
surplus spending
C. consumer spending
b. deficit spending
d. corporate spending
a.
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.
Sralbn620 Corporation has two divisions: Domestic Division and Foreign Division. Last month, the corporation reported a contribution margin of $47,800 for Domestic Division. Foreign Division had a contribution margin ratio of 25% and its sales were $235,000. Net operating income for the Sralbn620 Corporation was $35,700 and traceable fixed expenses were $55,400.
(ID#32648)
What were Sraibn 620 Corporation's common fixed expenses?
a) $15,450
b) $106,550
c) $55,400
d) $70,850
Answer:
Common fixed expense= $15,450
Explanation:
First, we need to calculate the total contribution margin from the two divisions:
Domestic Division= $47,800
Foreign Division= 235,000*0.25= $58,750
Total contribution margin= $106,550
Now, we can determine the common fixed expense using the following formula:
Net operating income= total contribution margin - traceable fixed expense - common fixed expense
35,700 = 106,550 - 55,400 - common fixed expense
common fixed expense= 51,150 - 35,700
common fixed expense= $15,450
A company is completing its annual impairment analysis of the goodwill included in one of its cash generating units (CGU). The recoverable amount of the CGU is $32,000. Other information related to the CGU is provided below:
Goodwill Patents Assets Total
Historical cost $15,000 $10,000 $35,000 $60,000
Depreciation and 0 3,333 11,667 15,000
amortization
Carrying amount $15,000 $6,667 $23,333 $45,000
12/31
Under IFRS, which of the following adjustments should be recognized in the company's consolidated financial statements?
a) Decrease goodwill by $13,000
b) Decrease goodwill by $15,000
c) Decrease goodwill by $3,250; patents by $2,167; and other assets by $7,583
d) Decrease goodwill by $4,333; patents by $1,926; and other assets by $6,741
Answer:
a) Decrease goodwill by $13,000
Explanation:
In IFRS, whenever recoverable amount of a cash generating unit is less than the carrying amount, an impairment loss is recognized. After calculating an impairment loss, it is then allocated to the carrying amount of Cash generating unit's goodwill.
Impairment loss in this case is = Total carrying amount - Recoverable amount of CGU = $45,000 - $32,000 = $13,000. Hence, the impairment loss will be allocated to the carrying value of the goodwill, leading to decrease in goodwill by $13,000.
Differential analysis can aid management in making decisions on a variety of alternatives, including whether to discontinue an un-profitable segment and whether to replace usable plant assets.
A. True
B. False
1. Depreciation expense was $17,500. 2. Dividends declared and paid were $20,000. 3. During the year equipment was sold for $8,500 cash. This equipment cost $18,000 originally and had accumulated depreciation of $9,500 at the time of sale. Prepare a statement of cash flows using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)
Answer:
the question is incomplete since the net income is missing, so I looked for a similar question and found the attached images.
Statement of Cash flows
For the Year ended December 31, 2017
Cash flow from operating activities
Net income $32,000
Adjustments to net income:
Depreciation expense $17,500Increase in accounts payable $4,000Increase in accounts receivable ($6,000)Increase in inventory ($8,000)Decrease in taxes payable ($1,000) $6,500Cash flow from operating activities $38,500
Cash flow from investing activities
Sale of equipment $8,500
Cash flow from financing activities
Issuance of common stocks $4,000
Dividends paid ($20,000)
Decrease in bonds payable ($16,000)
Cash flow from financing activities ($32,000)
Net increase in cash position $15,000
Beginning cash balance $20,000
Ending cash balance $35,000
Problems and Applications Q4 Suppose that the government imposes a tax on heating oil. True or False: The deadweight loss from this tax would likely be larger in the fifth year after it is imposed than in the first year as demand for heating oil becomes more elastic. True False The tax revenue collected from a tax on heating oil is likely to be in the first year after it is imposed than in the fifth year.
Answer:
TrueTrueExplanation:
The deadweight loss in the fifth year will indeed be higher in the fifth year than in the first because deadweight loss has been shown to increase with elasticity.
As demand becomes more elastic as a result of the oil becoming more expensive, tax revenue will decrease in future which means that tax revenue will be less in five years than in the first.
Data for Yvavxs408 Corporation and its two divisions, Domestic and Foreign, appear below:
Sales revenues, Domestic $620,000
Variable expenses, Domestic $359,700
Traceable fixed expenses, Domestic $ 74,100
Sales revenues, Foreign $478,400
Variable expenses, Foreign $273,000
Traceable fixed expenses, Foreign $ 61,900
(ID#54797) In addition, Yvavxs408's common fixed expenses totaled S167.800 and were allocated as follows: 587,100 to the Domestic division and $80.700 to the Foreign division
What is the segment margin for the Domestic division?
Answer:
Segment margin Domestic = $186,200
Explanation:
Giving the following information:
Sales revenues= $620,000
Variable expenses= $359,700
Traceable fixed expenses= $74,100
To calculate the segment margin for the Domestic division, we need to use the following formula:
Segment margin Domestic = segment contribution margin - traceable fixed expense
Segment margin Domestic = (620,000 - 359,700) - 74,100
Segment margin Domestic = $186,200