Answer:
the first part of the question is missing, so I looked for similar questions to fill in the blanks:
Ben and Marie Gerrard, both in their mid-20s, have been married for 4 years and have two preschool-age children. Ben has an accounting degree and is employed as a cost accountant at an annual salary of $63,000. They're now renting a duplex but wish to buy a home in the suburbs of their rapidly developing city. They've decided they can afford a $210,000 house and hope to find one with the features they desire in a good neighborhood.
If the Gerrards are required to make a minimum 20% down payment, then they need to pay at least $210,000 x 20% = $42,000.
Many lenders require a minimum down payment for a mortgage loan and others charge different interest rates depending on the down payment percentage, e.g. if your down payment represents 30% of the house's value, the interest rate will be lower than a loan with a 20% down payment. The logic behind this is that the higher the down payment, the safer the loan.
Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
A. The equipment was purchased on account for $25,000. Credit terms were 2/10, n/30. Payment was made within the discount period and the company records the purchases of equipment net of discounts.
B. Connors gave the seller a noninterest-bearing note. The note required payment of $27,000 one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of 10% properly reflects the time value of money in this situation.
C. Connors traded in old equipment that had a book value of $6,000 (original cost of $14,000 and accumulated depreciation of $8,000) and paid cash of $22,000. The old equipment had a fair value of $2,500 on the date of the exchange. The exchange has commercial substance.
D. Connors issued 1,000 shares of its nopar common stock in exchange for the equipment. The market value of the common stock was not determinable. The equipment could have been purchased for $24,000 in cash.
Required:
For each of the above situations, prepare the journal entry required to record the acquisition of the equipment.
Answer:
Entries and their narrations are posted below
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
Journal Entries
Debit Credit
A. The equipment was purchased on account for $25,000.
Equipment $25,000
Accounts Payable $25,000
B. Connors gave the seller a noninterest-bearing note. The note required payment of (27,000 x 1/(1+10%)
Equipment $24,545
Discount on Notes Payable $2,455
Note Payable $27,000
C. Connors traded in old equipment that had a book value of $6,000
Equipment New $24,500
Accumulated Depreciation $8,000
Loss on Equipment $3,500
Cash $22,000
Equipment Old $14,000
D.Connors issued 1,000 shares of its nopar common stock in exchange for the equipment
Equipment $24,000
Common Stock $24,000
Tara Foods of Georgia produces a wide range of peanut butters and food extracts, but does not sell any of its output under its own brand name.Tara evidently produces __________ .
Answer:
Middlemen's brands
Explanation:
A middlemen's brand can be defined as a type of business in which a manufacturing company that is into the production of goods sells its products to either a wholesaler, retailer without adding their brand name. Thus, this middlemen then sell the product with their own brand name.
In this scenario, Tara Foods of Georgia produces a wide range of peanut butters and food extracts, but does not sell any of its output under its own brand name.Tara evidently produces middlemen's brands.
Amanda is a twenty-four year old student. For two years Amanda has been going to gym and using weight equipment, stationary bicycles, and step machines to improve muscle tone. One spring afternoon Amanda was using a weight machines in the usual way (and the way she was showed how to use it), when the machine malfunctioned causing her serious injury. The company that made the machine, Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem.
If Amanda files a lawsuit against Musclematic, the company might want to seriously consider:
a. How this litigation will affect its goodwill
b. Whether or not a settlement with Amanda is a viable option
c. Whether this suit will adversely affect other business relationships
d. The costs associated with litigating this claim
e. All of the other choices
Answer:
e. All of the other choices
Explanation:
Product liability is the responsibility that a company bears for injury caused by its products as a result of a defect.
In this instance Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem.
So for any injury users have they will be liable.
If Amanda files a lawsuit against Musclematic they will have to consider:
- How this litigation will affect its goodwill
- Whether or not a settlement with Amanda is a viable option
- Whether this suit will adversely affect other business relationships
- The costs associated with litigating this claim
This is because they will most likely lose the case.
Tasty Subs acquired a delivery truck on October 1, 2021, for $25,600. The company estimates a residual value of $1,600 and a six-year service life. Required: Calculate depreciation expense using the straight-line method for 2021 and 2022, assuming a December 31 year-end.
Answer:
Depreciation Expense 2021= $1,000
Depreciation Expense 2022= $4,000
Explanation:
Calculation for depreciation expense using the straight-line method for 2021 and 2022
Using this formula
Depreciation = ( Cost − Residual Value )/
Useful Life
Where,
Cost of Truck on October 1,2021= $25,600
Residual Value = $1,600
Useful life of truck = 6 years service life
Let plug in the formula
2021
Depreciation Expense = $25,600 - $1,600 / 6 years * 3/12
Depreciation Expense 2021= $1,000
Note October 1 to 31 December 2021 will give us 3 months
2022
Depreciation Expense=$25,600 - $1,600 / 6 years
Depreciation Expense 2022= $4,000
Therefore the Depreciation Expense for 2021 will be $1,000 while the Depreciation Expense for 2022 will be $4,000
Bridgeport Inc. wishes to accumulate $1,092,000 by December 31, 2030, to retire bonds outstanding. The company deposits $168,000 on December 31, 2020, which will earn interest at 10% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,092,000 is available at the end of 2030. (The quarterly deposits will also earn at a rate of 10%, compounded quarterly.) (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)
Answer: $9,479
Explanation:
The number of periods = 10 years * 4 quarters = 40 periods
Interest per quarter = 10%/4 = 2.5%
$168,000 has been deposited. The value of this cash after 10 years is;
= 168,000 ( 1 + 2.5%) ^ 40
= $451,090.72
Out of $1,090,000, the amount remaining is;
= $1,090,000 - 451,090.72
= $638,909.28
They need to deposit an annuity per quarter to get to $638,909.28.
Future Value of Annuity = Annuity * ([1 + I]^N - 1 )/I
638,909.28 = Annuity * [(1+0.025)^40 - 1] /0.025
638,909.28 = Annuity * 67.40255
Annuity = 638,909.28/67.40255
= $9,479
Selected Information from Balance Sheets (As of Year End for Years 0 and 1)
Year 0 Year 1
Cash 1,000 2,000
Accounts Receivables 1,000 5,000
Inventory 5,000 4,000
Property, Plant and Equipment (net) 12,000 11,000
Accounts Payable 5,000 4,000
Unearned Revenue 2,000 1,000
Bonds Payable 5,000 6,000
Common Stock 3,000 4,000
Retained Earnings 5,000 7,000
Income Statement (Year 1)
Sales 20,000
Costs of Goods Sold (8,000)
Wage Expense (4,000)
Depreciation Expense (2,000)
Loss from PP&E Sale (1,000)
Net Income Before Tax 5,000
Tax Expense (2.000)
Net Income 3.000
In the space provided, prepare the Operating section of the statement of cash flow for Year 1, using the indirect approach.
Answer:
The Operating Activities section of the Statement of Cash Flow for Year 1:
Net Income $3,000
Add non-cash expenses:
Depreciation Expense 2,000
Loss from PP&E Sale 1,000
Operating cash flow 6,000
Changes working capital -5,000
Net cash flow from operating activities 1,000
Explanation:
Changes in working capital items:
Year 0 Year 1 Changes
Accounts Receivables 1,000 5,000 -4,000
Inventory 5,000 4,000 1,000
Accounts Payable 5,000 4,000 -1,000
Unearned Revenue 2,000 1,000 -1000
Net changes in working capital -5,000
The McMahon Construction Company builds bridges. In September and October 20XX, the company worked on a bridge covering the Kleinfeld River in Northern Montana. The McMahon Company has two departments, the Precast Department and the Construction Department. The Precast Department is responsible for building structural elements of bridges in temporary locations (plants) located near the construction sites. The Construction Department operates at the bridge site and they are responsible for assembling the precast structural elements. The estimated costs for Kleinfeld River Bridge for the Precast Department were $ 1,750,000 for direct materials, $ 240,000 for direct labor, and $300,000 for overhead. The estimated costs for the Construction Department regarding the Kleinfeld River Bridge were $ 400,000 for direct materials, $ 180,000 for direct labor, and $ 260,000 for overhead. Overhead is applied on the last day of the month. The Overhead application rate for the Precast Department is $ 30 per direct labor hour. The Overhead application for the Construction Department is 150 percent of direct labor cost.
Transactions for September
Sept 1- Purchased $ 1,170,000 of material on account for the Precast Department to start the building of structural elements. All of the material was issued to production, of the issuance amount, $ 720,000 is considered direct material.
Sept 4- Installed utilities at bridge site at a total cost of $30,000. The amount will be paid later in the month. (Transaction applies to Construction Department)
Sept 6-Paid rent for the temporary construction site housing the Precast Department, $ 7,200.
Sept 15- Completed the bridge support pillars by the Precast Department and transfer everything to the construction site.
Sept 19- Paid machine rental expense of $ 65,000 incurred by the Construction Department for clearing the bridge site and digging the foundations for bridge supports.
Sept 23- Purchased additional materials costing $1,510,000 on account.
Sept 30-The company paid the bills for the Precast Department: utilities, $ 7,200; direct labor, $50,000; insurance, $ 6,700, indirect labor, $ 8,200. Departmental depreciation was recorded, $21,500.
Sept 30-The company paid the bills for the Construction Department: utilities, $ 2,600; direct labor, $19,500; indirect labor, $6,100; and insurance, $ 2,500. Department depreciation was recorded on equipment, $ 9,450. Sept 30- Issued a check to pay for the material purchased on Sept 1 and Sept 23. Sept 30-Applied overhead to production in each department; 6,400 machine hours were worked in the Precast Department for September. Note: Direct Labor Costs for the Construction Department were $19,500.
Transactions for October
Oct 1- Transferred additional structural elements from the Precast Department to the construction site. The construction department incurred an expense of $ 7,000 to rent a crane.
Oct 4- Issued $1,010,000 of material to the Precast Department. Of this amount, $860,000 was considered direct.
Oct 7- Paid rent of cash of $ 7,500 in cash for the temporary site that is occupied by the Precast Department.
Oct 12-Issued $ 390,000 of material to the Construction Department. Of this amount, $ 220,000 was considered direct.
Oct 15-Transferred additional structural elements from the Precast Department to the construction site.
Oct 25-Transferred the final batch of structural elements from the Precast Department to the construction site.
Oct 29-Completed the bridge.
Oct 31-Paid the final bills for the month in the Precast Department: utilities, $ 14,000; direct labor, $120,000; insurance, $10,200; indirect labor, $18,300. Department depreciation was recorded, $21,500.
Oct 31-Paid the final bills for the month in the Construction Department: utilities, $ 5,300; direct labor, $144,500; indirect labor, $19,200; and insurance, $ 7,400. Depreciation was recorded on equipment was $9,450.
Oct 31-Applied overhead in each department. The precast department recorded 4,120 machine hours in October.
Oct 31-Billed the state of Montana for the completed bridge at the contract price of $3,850,000.
Oct 31-Please record the cost of the completed jobs to Finished Goods Inventory.
Required:
Journalize the entries for the preceding transactions. For purposes of this case study it is not necessary to transfer direct material and direct labor from one department to another.
Answer:
The McMahon Construction Company
Journal Entries:
Sept. 1:
Debit Precast Direct Materials Inventory $1,170,000
Credit Accounts Payable $1,170,000
To record the purchase of materials on account for Precast.
Debit Work in Process-Precast $720,000
Debit Manufacturing Overhead (Precast Dept.) $450,000
Credit Precast Direct Materials Inventory $1,170,000
Sept. 4:
Debit Manufacturing Overhead (Construction Dept.):
Utilities Expense $30,000
Credit Utilities Payable $30,000
To recorde utilities installed at bridge site.
Sept 6:
Debit Manufacturing Overhead (Precast Dept.):
Rent Expense $7,200
Credit Cash Account $7,200
To record the payment of rent for the temporary construction site.
Sept. 15:
No journal entries.
Sept 19:
Debit Manufacturing Overhead (Construction Dept.):
Machine Rental Expense $65,000
Credit Cash Account $65,000
To record the payment of machine rental expense
Sept. 23:
Debit Direct Materials Inventory $1,510,000
Credit Accounts Payable $1,510,000
To record the purchase of additional materials on account.
Sept. 30:
Debit:
Utilities Payable-Precast Dept $7,200
Direct labor -Precast Dept. $50,000
Debit Manufacturing Overhead (Precast Dept.):
Insurance Expense- Precast $6,700
Indirect labor $8,200
Credit Cash Account $72,100
Debit Manufacturing Overhead (Precast Dept.):
Depreciation Expense$21,500
Credit Accumulated Depreciation - Precast Dept $21,500
To record the depreciation expense for the month.
Sept. 30:
Debit Work in Process: Direct labor $19,500
Debit Manufacturing Overhead (Construction Dept.):
Utilities Expense t $2,600
Indirect labor $6,100
Insurance Expense $2,500
Credit Cash Account $30,700
Debit Manufacturing Overhead (Construction Dept.):
Depreciation Expense $9,450
Credit Accumulated Depreciation - Construction Dept $9,450
To record the depreciation expense for the month.
Debit Accounts Payable $2,680,000
Credit Cash Account $2,689,000
To record the payment on account by a check issued.
Debit Work in Process (Precast) $192,000
Credit Manufacturing Overhead (Precast) $192,000
To apply overhead to production in Precast Dept.
Debit Work in Process (Construction Dept.) $29,250
Credit Manufacturing Overhead (Construction Dept.) $9,250
To apply overhead to production in the construction department.
October:
Oct. 1:
Debit Manufacturing Overhead (Construction Dept.) $7,000
Credit Cash Account $7,000
To record the cost of rental a crane.
Oct. 4:
Debit Raw Materials Inventory (Precast) $860,000
Debit Manufacturing Overhead (Precast) $150,000
Credit Raw Materials Inventory.
Oct. 7:
Debit Manufacturing Overhead (Precast Dept.):
Rent Expense $7,500
Credit Cash Account $7,500
To record the payment of rent for cash.
Oct. 12:
Debit Work in Process (Construction Dept.) $220,000
Debit Manufacturing overhead-170,000
Credit Raw Materials $390,000
To record the issue of materials to the construction dept.
Oct. 15:
No Journal Entries required
Oct. 25:
No Journal Entries required
Oct. 29:
No. Journal Required
Oct. 31:
Debit:
Work in Process (Direct labor) $120,000
Manufacturing Overhead (Precast):
Utilities $14,000
Insurance $10,200
Indirect labor $18,300
Credit Cash Account $162,500
Oct. 31:
Debit Manufacturing Overhead (Precast Dept.):
Depreciation Expense$21,500
Credit Accumulated Depreciation - Precast Dept $21,500
To record the depreciation expense for the month.
Oct 31:
Debit Work in Process: Direct labor $144,500
Debit Manufacturing (Construction Dept.):
Utilities Expense t $5,300
Indirect labor $19,200
Insurance Expense $7,400
Credit Cash Account $176,400
To record the payment of cash for the expense
Debit Manufacturing Overhead (Construction Dept.):
Depreciation Expense $9,450
Credit Accumulated Depreciation - Construction Dept $9,450
To record the depreciation expense for the month.
Debit Work in Process (Precast) $123,600
Credit Manufacturing Overhead (Precast) $123,600
To apply overhead to production in Precast Dept.
Debit Work in Process (Construction Dept.) $216,750
Credit Manufacturing Overhead (Construction Dept.) $216,750
To apply overhead to production in the construction department.
Debit Accounts Receivable (State of Montana) $3,850,000
Credit Service Revenue $3,850,000
To record the billing of the state for the completed bridge.
Debit Finished Goods Inventory $1,835,600
Credit Work in Process $1,835,600
To record the cost of the completed jobs.
Explanation:
a) Data:
Estimated costs for Kleinfeld River Bridge
Precast Construction
Department Department
Direct materials $ 1,750,000 $ 400,000
Direct labor 240,000 180,000
Overhead 300,000 260,000
Overhead application $30 per DMH 150% DL
Machine hours worked 6,400 MH $19,500
Work in Process:
Materials $720,000
Direct labor (precast) 50,000
Direct labor (construction) 19,500
Overhead applied 192,000
Overhead applied 29,250
Materials 220,000
Direct labor 120,000
Direct labor 144,500
Overhead applied 123,600
Overhead applied 216,750
Total cost $1,835,600
Ayayai Inc. wishes to accumulate $1,066,000 by December 31, 2030, to retire bonds outstanding. The company deposits $164,000 on December 31, 2020, which will earn interest at 8% compounded quarterly, to help in the retirement of this debt. In addition, the company wants to know how much should be deposited at the end of each quarter for 10 years to ensure that $1,066,000 is available at the end of 2030.
Answer:
Quarterly deposit= $11,653.28
Explanation:
Future Value= $1,066,000
Number of periods= 10*4= 40 quarters
Interest rate= 0.08/4= 0.02
First, we need to calculate the future value of the initial investment. Then, determine the difference required to reach the objective.
FV= PV*(1+i)^n
FV= 164,000*(1.02^40)
FV= $362,118.50
Difference= 1,066,000 - 362,118.5= $703,881.5
To calculate the quarterly deposit, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= quarterly deposit
Isolating A:
A= (FV*i)/{[(1+i)^n]-1}
A= (703,881.5*0.02) / [(1.02^40) - 1]
A= $11,653.28
Julie Brown is a single woman in her late 20s. She is renting an apartment in the fashionable part of town for $1,000 a month. After much thought, she's seriously considering buying a condominium for $175,000. She intends to put 20 percent down and expects that closing costs will amount to another $5,000; a commercial bank has agreed to lend her money at the fixed rate of 6 percent on a 15-year mortgage. Julie would have to pay an annual condominium owner's insurance premium of $560 and property taxes of $1,000 a year (she's now paying renter's insurance of $550 per year). In addition, she estimates that annual maintenance expenses will be about 0.5 percent of the price of the condo (which includes a $30 monthly fee to the property owners' association). Julie's income puts her in the 25 percent tax bracket (she itemizes her deductions on her tax returns), and she earns an after-tax rate of return on her investments of around 4 percent.
Required:
a. Evaluate and compare Julie’s alternatives of remaining in the apartment or purchasing the condo.
b. Working with a friend who is a realtor, Julie has learned that condos like the one that she’s thinking of buying are appreciating in value at the rate of 3.5 percent a year and are expected to continue doing so. Would such information affect the rent-or-buy decision made in a?
c. Discuss any other factors that should be considered when making a rent-or-buy decision.
d. Which alternative would you recommend for Julie in light of your analysis?
Answer:
a. Julie should continue live in her own apartment.
b. She should then purchase the condo
c. Home maintenance cost and tax benefit.
d. She should live in her own apartment and rent the condo after purchase.
Explanation:
Buying cost of condo $175,000
Loan interest amount $8,400 [ $175,000 * 80% * 6%]
Insurance premium $10 [560 - 550]
Property taxes $1,000
Maintenance expense $875 [$175,000 * 0.5%]
Total additional cost per year $10,280
If Julie plans to buy the condo she will have to incur additional cost of $10,280 per annum.
b. If the price of condo increases by 3.5% per year then she should consider buying the condo.
10. ________________ is the extent to which employees have positive or negative feelings about various aspects of their work.
Answer:
A. Job satisfaction
Explanation:
Job satisfaction can be influenced by a number of significant factors. There may be motivation or lack of motivation according to the working conditions, such as job perception, management, organizational culture, reward system, etc.
There needs to be active management to analyze what are the main factors that affect job satisfaction in an organization, so that there is greater motivation, productivity, positive business climate, ethical behaviors, etc.
A company has total equity of $2,160, net working capital of $240, long-term debt of $1,070, and current liabilities of $4,500. What is the company's net fixed assets?
Answer:
$2,990
Explanation:
A company's fixed asset consist of its plants and machineries, motor vehicles , buildings etc.
To get the company's net fixed asset, we would subtract the networking capital from total equity and add up long term debt.
Therefore,
Net fixed asset = $2,160 total equity - $240 working capital + $1,070 long term debt
= $2,990
Hence net fixed asset is $2,990
In the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical Union. Atlanta agreed to a type of arrangement known as a(n)
Answer: closed shop
Explanation:
From the question, we are informed that in the late 1930s management at Atalanta Industries agreed to hire only those workers who were already members of the Electrical Union.
It should be noted that here, Atlanta agreed to a type of arrangement known as closed shop. This occurs when the workers have to belong to a particular union before they'll be employed. This was legal in 1930 but it was later declared illegal by Taft Hartley Act.
Consider the markets for three products below. Indicate which characteristics of a competitive market are met by these markets.
Market: gasoline
a. Large number of buyers unanswered
b. Standardized good unanswered
c. Full information unanswered
d. No transaction cost unanswered
e. Participants are price takers unanswered
Market: barbershop haircuts
a. Large number of buyers unanswered
b. Standardized good unanswered
c. Full information unanswered
d. No transaction cost unanswered
e. Participants are price takers unanswered
Market: bicycles
a. Large number of buyers unanswered
b. Standardized good unanswered
c. Full information unanswered
d. No transaction cost unanswered
e. Participants are price takers
Answer:
Market: gasoline (monopolistic competition with few sellers and many buyers)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Market: barbershop haircuts (monopolistic competition with a lot of sellers and many buyers, but differentiated service)
a. Large number of buyers
d. No transaction cost
e. Participants are price takers
Market: bicycles (resembles a perfect competition market)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Explanation:
No market provides full information to all participants. The closest you can get are some markets where commodities are traded and the price is set be certain exchange institutions. E.g. the Chicago Mercantile Exchange sets the price of agricultural commodities in the US, and most trading companies follow that price but variations still exist (even though they are minimum).
It is not possible for all the consumers of gasoline, haircuts or bicycles to know the exact price of all the goods the services since the price varies from one seller to another. Even if they are part of a retail chain, the price varies. Full information only exists in theoretical models, it doesn't exist in the real world.
Market: gasoline (monopolistic competition with few sellers and many buyers)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Market: barbershop haircuts (monopolistic competition with a lot of sellers and many buyers, but differentiated service)
a. Large number of buyers
d. No transaction cost
e. Participants are price takers
Market: bicycles (resembles a perfect competition market)
a. Large number of buyers
b. Standardized good
c. Full information (not all participants know all the information, but most is available if they search for it)
d. No transaction cost
e. Participants are price takers
Explanation:
No market provides full information to all participants. The closest you can get are some markets where commodities are traded and the price is set be certain exchange institutions. E.g. the Chicago Mercantile Exchange sets the price of agricultural commodities in the US, and most trading companies follow that price but variations still exist (even though they are minimum).
It is not possible for all the consumers of gasoline, haircuts or bicycles to know the exact price of all the goods the services since the price varies from one seller to another. Even if they are part of a retail chain, the price varies. Full information only exists in theoretical models, it doesn't exist in the real world.
Your neighbor is asking you to invest in a venture that will double your money in 7 year(s). Compute the annual rate of return that he is promising you?
Answer: 10.3%
Explanation:
The Rule of 72 is useful here. The rule of 72 can be used to calculate the amount of time it would take to double an investment by dividing 72 by the interest rate.
As we already have the number of years the formula is;
7 = 72/i
i = 72/7
i = 10.3%
HELP ME PLSSS SOMEONE HELPP ILL GIVE BRAINLIEST
tom sold 3 cars ( a total value of $112,500) in the month of january. it is paid only by commission for its seller. he receives a commission of 7%. what is tom’s salary for the month of january?
Answer:
$7,875
Explanation:
Total car sales in January: $112,500
Commission at the rate of 7%,
Salary for January is :
7 percent of $112,500
=7/100 x $112,500
=0.07 x $112,500
=$7,875
Which represents the best way to compose experience statements? a. Input 35+ accounts receivable using QuickBooks Prepared monthly billing statements and mailed them to customers Answered phones in busy office, referred customer billing questions to appropriate staff, and wrote e-mails to vendors b. Used QuickBooks to input accounts recievable Prepare monthly billing statements for customers Conducted general office duties such as phone inquiries, referring customers to proper staff, and I also wrote e-mails to vendors c. Responsible for inputting data for more than 35 accounts into QuickBooks Experienced with creating monthly billing statements to mail to customers As receptionist, I answered customer billing questions, wrote e-mails to vendors Skip
Full question read.
"You will graduate with a BA in accounting from the University of Texas in Austin in a few weeks. And saw an ad for a position in your hometown of San Antonio that matches your skill set. Your experience in your current job, in which you counted cash from various establishments around campus, and prepared daily deposit slips matches one of the full-time jobs requirements. Before that, you performed accounts receivable functions at a large construction company. Another requirement named in the job ad. You decide to apply for the position. Your task. Create a resume tailored to the position. "
This well-written objective customized for the job opening, includes strategic key words for applicant tracking systems and focuses on how the candidate can contribute to the organization. This bulleted list of employment history, most appropriately quantifies the candidates accomplishments.
Which represents the best way to compose experience statements?
Answer:
C. Responsible for inputting data for more than 35 accounts into QuickBooksExperienced with creating monthly billing statements to mail to customersAs receptionist, I answered customer billing questions, wrote e-mails to vendorsExplanation:
Remember, we are told that "strategic key words for applicant tracking systems..." would be used by the organization to determine the best candidates. It, therefore means that accurate spelling would make an experience statement compelling and detectable by the tracking system.
From the above statements, under these conditions, option c appears to be the best way to compose experience statements.
Jeremy is married to Amy, who abandoned him in 2019. He has not seen or communicated with her since April of that year. He maintains a household in which their son, Evan, lives. Evan is age 25 and earns over $6,000 each year. For tax year 2020, Jeremy's filing status is: a.Head of household. b.Surviving spouse. c.Married, filing jointly. d.Married, filing separately.
Answer: d. Married, filing separately.
Explanation:
From the question, we are informed that Jeremy is married to Amy, who abandoned him in 2019 and that he has not seen or communicated with her since April of that year.
We are further told that he maintains a household in which their son, Evan, lives and that Evan is age 25 and earns over $6,000 each year.
For tax year 2020, Jeremy's filing status is married, filling separately. This is because we are told that Jeremy hasn't has not seen or communicated with her since April. Since they're not divorced, it means they're still married but filing separately.
Your client, Bob, is the CEO of a corporation that has 12 stockholders who are also the only employees of the business. The corporation operates a boat dealership in Sherman, Texas. The corporation has accumulated earnings and profits of $3,000,000, not including the current year’s taxable income, which is expected to be $800,000. No dividends have been paid to stockholders. Bob has been very pleased with the corporation’s performance and he wants to reward the stockholders.
1. Why should Bob declare a cash dividend over giving stockholders a bonus?2. Why should Bob not consider paying a larger year-end bonus to his employee/stockholders’
Answer:
1. Why should Bob declare a cash dividend over giving stockholders a bonus?
Bob should not declare a cash dividend, instead he should give the employees/stockholders a bonus. A corporation distributes dividends with their after tax income, while bonuses actually decrease net income and lowers taxes. it is always better to pay less taxes.
2. Why should Bob not consider paying a larger year-end bonus to his employee/stockholders’.
In this case, if you have to choose between declaring a dividend or paying a bonus, Bob should definitely pay a bonus. But the bonus should not be larger than the corporation's expected income. It is not a good idea to incur in an operating loss due to huge bonuses.
Global strategic planning is a primary function of a company's managers, and the process of strategic planning provides a formal structure for undertaking this process. Companies are confronting a set of environmental forces that are increasingly complex, global, and subject to rapid change. In response, many international firms have found it necessary to institute formal global strategic planning to provide a means for top management to identify opportunities and threats from all over the world.
Required:
Formulate strategies to handle them, and stipulate how to finance and manage the implementation of these strategies?
Answer and Explanation:
The steps in global strategic planning include
Review or develop Vision & Mission: business aims to understand what its vision and mission is, reviewing one already there or developing a new one based on the current business environment and changes
Business and operation analysis. Here the business aims to understand it's environment in terms of it strengths and weaknesses internally and externally
Develop Strategic Options: business looks to find all strategic options available and weighs options to select best strategy on the basis of its business and operation analysis to understand strategy to tackle the current business situation
Establish Strategic Objectives: strategy objectives are developed to tackle new business environment
Strategy Execution Plan: the execution plan involves an effective plan that can duly implemented
Establish Resource Allocation: resources are allocated to execute the global strategic plan
Execution Review: execution is reviewed and quantified to see if the plan is being met
Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 36,000 units in inventory, 70% complete as to materials and 30% complete as to conversion costs. The beginning inventory cost of $82,100 consisted of $58,000 of direct materials costs and $24,100 of conversion costs.
During the month, the forming department started 520,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 85% complete as to materials and 35% complete as to conversion. Units completed in the forming department are transferred to the painting department. Cost information for the forming department is as follows:
Beginning work in process inventory $82,100
Direct materials added during the month 1,942,930
Conversion added during the month 1,359,730
1A. Calculate the equivalent units of production for the forming department.
1B. Calculate the costs per equivalent unit of production for the forming department.
1C. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.
Answer:
Please see attached detailed solution
Explanation:
1a. Direct material 550,000
Conversion 530,000
1b. Direct materials $3.64 per EUP
Conversion $2.61 per EUP
1c. Costs assigned to the forming department's output
• Total cost of ending work in process $160,300
• Total costs assigned $3,384,760
Please see attached detailed solution to the above questions and answers.
Carol wants to invest money in a 6% Certificate of Deposit (CD) that compounds semiannually. Carol would like the account to have a balance of $50,000 five years from now. How much must Carol deposit to accomplish her goal
Answer:
the present value is $37,230.10
Explanation:
The computation of the present value is shown below:
As we know that
Future value = Present value × (1 + rate of interest)^time period
$50,000 = Present value × (1 + 0.06 ÷ 2)^5 × 2
$50,000 = Present value × (1.03)^10
$50,000 = Present value × 1.343
So, the present value is $37,230.10
hence, the present value is $37,230.10
We simply applied the above formula
MotorCar, a major automobile company headquartered in Detroit, is concerned about being left behind in the race to produce autonomous vehicles. There remains much uncertainty regarding the future of autonomous vehicle technology. Some industry experts say fully self-driving cars could be brought to market within a couple of years. Others believe the technology could take decades to develop. And still others are skeptical that the technology will ever be safe enough to bring to the automobile mass market. Further, in addition to safety and technological hurdles, there are regulatory obstacles as well. However, MotorCar has decided that it needs to innovate.
The company is considering (1) increasing funding to its existing R&D department to expand to the development of AI (artificial intelligence) technology, needed for self-driving vehicles; (2) launching a fully owned subsidiary (a new company that it owns and controls) focused exclusively on AI; or (3) partnering with a major Silicon Valley tech company that has already made considerable progress on AI technology.
Required:
What do you see as some of the potential benefits and risks of these different organizational approaches?
Answer:
(1) increasing funding to its existing R&D department to expand to the development of AI (artificial intelligence) technology, needed for self-driving vehicles
This strategy would produce the benefit of puttinig the company on the edge of the development of AI in order to produce driverless vehicles.
The risk is that the investment could be too high for the initial benefit, since there is no certainty that driveless cars will be in the market in the short-term.
(2) launching a fully owned subsidiary (a new company that it owns and controls) focused exclusively on AI
This strategy would produce a similar benefit as the strategy above. However, it could also benefit from a little bit less administrative control because in this case, the AI development would be in charge of a subsidiary, not a division.
The risk is the same as above: initial investments may be too high for the initial benefits.
(3) partnering with a major Silicon Valley tech company that has already made considerable progress on AI technology.
This strategy produces the benefit of requiring less investment while still putting the company on the edge of AI research. However, the risk lies in loss of control over the thecnology, and possible future conflicts with the partner company.
Constructing and Assessing Income Statements Using Cost-to-Cost Method On March 15, 2014, Frankel Construction contracted to build a shopping center at a contract price of $125 million. The schedule of expected (which equals actual) cash collections and contract costs follow ($ millions):
Year Cash Collections Cost Incurred
2014 $30 $20
2015 50 45
2016 45 35
Total $125 $100
Required:
a. Calculate the amount of revenue, expense, and net income for each of the three years 2014 through 2016 using the cost-to-cost method.
b. What best summarizes our conclusion about the usefulness of the cost-to-cost method for this company?
Answer:
a. Net income in 2014 is $5.00 million; Net income in 2015 is $11.25 million; and Net income in 2016 is $8.75million.
b. The best summary is that under generally accepted accounting principles (GAAP), the cost-to-cost method is a method that is acceptable to be applied to contracts that span more than one accounting period.
Therefore, the cost-to-cost method is employed in calculating the revenue and net income for Frankel Construction for each of the years 2014, 2015 and 2016.
Explanation:
a. Calculate the amount of revenue, expense, and net income for each of the three years 2014 through 2016 using the cost-to-cost method.
Note: See the attached excel file for the calculations.
Cost-to-cost method can be described as a cost and revenue recognition approach in which all costs recorded to date on a project are divided by the total expected costs to be incurred on the project in order to obtain the overall percentage of completion of the project which is employed in estimating revenue and net income.
b. What best summarizes our conclusion about the usefulness of the cost-to-cost method for this company?
The best summary is that under generally accepted accounting principles (GAAP), the cost-to-cost method is a method that is acceptable to be applied to contracts that span more than one accounting period.
In this question, the cost-to-cost method is employed in calculating the revenue and net income for this company for each of the year 2014, 2015 and 2016.
What are the 2 main sources of data
Answer:
internal and external source
Explanation:
Answer:
There are two sources of data. they are:
1. Internal Source.
2. External Source.
Explanation:
Internal Source. When data are collected from reports and records of the organision itself, it is known as the internal source.
External Source. When data are collected from outside the organition, it is known as the external source.
Nanjones Company manufactures a line of products distributed nationally through wholesalers. Presented below are planned manufacturing data for the year and actual data for November of the current year. The company applies overhead based on planned machine hours using a predetermined annual rate.
Planning Data
Annual November
Fixed overhead $1,200,000 $100,000
Variable overhead $2,400,000 $220,000
Direct labor hours 48,000 4,000
Machine hours 240,000 22,000
Data for November
Direct labor hours (actual) 4,200
Direct labor hours (plan based on output) 4,000
Machine hours (actual) 21,600
Machine hours (plan based on output) 21,000
Fixed overhead $101,200
Variable overhead $214,000
Nanjones’ variable overhead spending variance for November was:
a. $6,000 favorable.
b. $2,000 favorable.
c. $14,000 unfavorable.
d. $6,000 unfavorable.
Answer:
Variable manufacturing overhead spending variance= $2,000 favorable
Explanation:
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 2,400,000 / 240,000
Predetermined manufacturing overhead rate= $10 per machine hour
To calculate the variable overhead spending variance, we need to use the following formula:
Variable manufacturing overhead spending variance= (standard rate - actual rate)* actual quantity
Variable manufacturing overhead spending variance= (15 - 214,000/21,600)*21,600
Variable manufacturing overhead spending variance= $2,000 favorable
The Nanjones' variable overhead spending variance for November is a. $6,000 favorable.
Data and Calculations:
Planning Data Actual Data Variances
Annual November November
Fixed overhead $1,200,000 $100,000 $101,200 $1,200 U
Variable overhead $2,400,000 $220,000 $214,000 $6,000 F
Direct labor hours 48,000 4,000 4,200 200 U
Machine hours 240,000 22,000 21,600 400 F
Thus, the Nanjones' variable overhead spending variance for November is the difference between planned expenses and actual expenses, which is $6,000 ($214,000 - $220,000) favorable.
Learn more about variable overhead spending variance here: https://brainly.com/question/4535958
Atlantic Video, a small video rental store in Philadelphia, is open 24 hours a day, and-due to its proximity to a major business school-experiences customers arriving around the clock. A recent analysis done by the store manager indicates that there are 30 customers arriving every hour, with a standard deviation of interarrival times of 2 minutes. This arrival pattern is consistent and is independent of the time of day. The checkout is currently operated by one employee, who needs on average 1.7 minutes to check out a customer. The standard deviation of this check-out time is 3 minutes, primarily as a result of customers taking home different numbers of videos.
Required:
a. If you assume that every customer rents at least one video (i.e., has to go to the checkout), what is the average time a customer has to wait in line before getting served by the checkout employee (i.e., waiting time in queue)?
b. If there are no customers requiring checkout, the employee is sorting returned videos, of which there are always plenty waiting to be sorted. How many videos can the employee sort over an 8-hour shift (assume no breaks) if it takes exactly 1.5 minutes to sort a single video?
c. What is the average number of customers who are at the checkout desk, either waiting or currently being served?
Answer:
A.19.82 minutes
B. 48 sorts
C. 10.75
Explanation:
A. Calculation for the average time
Based on Interarrival time 30 customers per hour will give us 1 customer per 2 minutes
Hence,
a = 2 min
Cva= 1
Process time which is p = 1.7 min
CVp will be :3 min/1.7 min = 1.765
Utilization will be calculated as :p/a = 1.7/2 = 0.85
Now let find the average time
Tq= 1.7 x [0.85/(1-0.85)]x[(1^2 + 1.765^2)/2]
Tq= 19.82 minutes
Therefore the average time will be 19.82 minutes
B. Calculation for How many videos can be sort
Utilization will be calculated as: p/a = 1.7/2 = 0.85
Idle time will be calculated as : 0.15 x 8 hours
Idle time = 1.2 hours =
1.2 hours converted to minutes will be 72 minutes
Hence,
Number of videos sorted = 72 minutes / 1.5
Number of videos sorted = 48 sorts
Therefore the numbers of video that can be sort will be 48 sort
C. Calculation for the average number of customers who are at the checkout desk
Tq= 19.82 minutes
p = 1.7
T = Tq+ p = 21.52 minutes
Iq= R x Tq= 1/a x 19.82 = 0.5
Iq=0.5 * 19.82
Iq = 9.9 customers
Hence we are going to use this formula to find the average number of customers
I = Iq+ Ip= Iq+ u
Let plug in the formula
I= 9.9 + 0.85
I= 10.75
Therefore the average number of customers who are at the checkout desk will be 10.75
Carving Creations jointly produces wood chips and sawdust used in agriculture. The wood chips and sawdust are actually by-products of the company’s core operations, but Carving Creations accounts for them just like normally produced goods because of their large volumes. One jointly produced batch yields 3,000 cubic yards of wood chips and 10,000 cubic yards of sawdust, and the estimated cost per batch is $21,400. However, the joint production of each good is not equally weighted. Management at Carving Creations estimates that for the time it takes to produce 10 cubic yards of wood chips in the joint production process, only 2 cubic yards of sawdust are produced.
Given this information, allocate the joint costs of production to each product using the weighted average method.
Joint Product Allocation
Sawdust _____$
Wood chips _____
Totals _____ $
Answer:
Carving Creations
Joint Product Allocation
Sawdust _____$ 12,840 ($0.428 * 30,000)
Wood chips _____ $8,560 ($0.428 * 20,000)
Totals _____ $21,400
Explanation:
a) Data and Calculations:
Wood chips = 3,000 cubic yards
Sawdust = 10,000 cubic yards
Estimated batch cost = $21,400
Weight assigned to wood chips production = 10
Weight assigned to sawdust production = 2
Weighted Allocation of the joint costs:
Wood chips = 3,000 * 10 = 30,000
Sawdust = 10,000 * 2 = 20,000
Total weighted units = 50,000
Allocation rate based on weights = $21,400/50,000
= $0.428
Joint Product Allocation
Sawdust _____$ 12,840 ($0.428 * 30,000)
Wood chips _____ $8,560 ($0.428 * 20,000)
Totals _____ $21,400
Farr Corp. purchased a new delivery van on January 1, 2020 and chose to use the double declining balance depreciation method. The van cost $48,000 with an estimated life of five years and a $12,000 salvage value. After the year end adjustment, how much accumulated depreciation would be recorded on the van at December 31, 2021
Answer:
$30,720
Explanation:
First, we will calculate the depreciation for 2020.
Depreciation for 2020 = ($48,000 cost - 0) × 40%
= $19,200
Depreciation for 2021 = ($48,000 cost - $19,200 depreciation 2020) × 40%
= $11,520
Accumulated depreciation at the end of 2021
= $11,520 + $19,200
= $30,720
The value of $30,720 will be recorded as accumulated depreciation on the value of the van at December 31, 2021.
• Note, the asset's annual depreciation will be 20% of the depreciation cost since its useful life is 5. It will however be 40% since we are using the double declining balance method.
Tariff effects: An overview
Consider two hypothetical countries, Alagir and Ertil. Both countries produce iGadgets, and the price of iGadgets is lower in Alagir than in Ertil. If Alagir and Ertil open to trade, producers in would be more likely to lobby their government for an import tariff on iGadgets in order to protect themselves from foreign competition.
Which of the following statements about the effects of the tariff compared to free trade are correct?
A. In Alagir, workers in iGadget importing companies lose their jobs.
B. In Ertil, some workers at retail and shipping companies that import iGadgets lose their jobs.
C. In Ertil, consumers pay more for the domestic iGadgets.
D. In Ertil, workers in iGadget importing companies see more jobs available to them.
E. In Ertil, producers of iGadgets are willing to expand output.
Answer:
1. If Alagir and Ertil open to trade, producers in Ertil would be more likely to lobby their government for an import tariff on iGadgets in order to protect themselves from foreign competition.
Producers in Ertil would be at a disadvantage because people in Ertil would simply buy the lower priced iGadgets from Alagir so the producers in Ertil would lobby their Government for tariffs to protect them.
2.
B. In Ertil, some workers at retail and shipping companies that import iGadgets lose their jobs.If an import tariff is imposed, people will find the goods from Alagir more expensive and so will import less. The companies who did the shipping and retail of the goods from Alagir would have to let go of some people to save costs or because they would close down.
C. In Ertil, consumers pay more for the domestic iGadgets.With tariffs to protect them, the domestic producers in Ertil can charge higher prices.
E. In Ertil, producers of iGadgets are willing to expand output.With the tariff protecting them, the producers will be willing to expand output so that they can sell more iGadgets at the new higher price.
On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $15 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. The book value of the assets of the segment was $13 million. The loss from operations of the segment during 2021 was $4.8 million. Pretax income from continuing operations for the year totaled $7.8 million. The income tax rate is 25%.
Prepare the lower portion of the 2021 income statement beginning with income from continuing operations before income taxes. Ignore EPS disclosures. (Amounts to be deducted and negative amounts should be indicated with a minus sign. Enter your answers in whole dollars and not in millions.)
Answer and Explanation:
The preparation of the lower portion is presented below:
Income from the continuing operation
before income tax $7,800,000
Less: Income tax expenses ($7,800,000 × 25%) (1,950,000)
Income from continuing operation(A) 5,850,000
Discontinued operation:
Loss from operation discontinued components
($15 - $13 - $4.8) ($2,800,000)
Income tax benefits ($2,800,000 × 25%) $700,000
Loss on discontinued operation(B) ($21,000,000)
Net loss (A - B) -$15,150,000