The following selected transactions were completed by Capers Company during October of the current year:
Oct. 1 Purchased merchandise from Hoagie Co., $9,950, terms FOB shipping point, 2/10, n/eom.
2 Prepaid freight of $220 was added to the invoice.
4 Purchased merchandise from Taco Co., $13,650, terms FOB destination, 2/10, n/30.
6 Issued debit memo to Taco Co. for $4,550 of merchandise returned from purchase on October 4.
13 Paid Hoagie Co. for invoice of October 3.
14 Paid Taco Co. for invoice of October 4 less debit memo of October 6.
19 Purchased merchandise from Veggie Co., $27,300, terms FOB shipping point, n/eom.
19 Paid freight of $400 on October 19 purchase from Veggie Co.
20 Purchased merchandise from Caesar Salad Co., $22,000, terms FOB destination, 1/10, n/30.
30 Paid Caesar Salad Co. for invoice of October 20.
31 Paid UK Imports Co. for invoice of October 1.
31 Paid Veggie Co. for invoice of October 19.
Required:
Journalize the entries to record the transactions of Capers Company for October.
Answers
Answer and Explanation:
Answer and explanation attached
Related Questions
During November, the production department of a process operations system completed and transferred to finished goods 26,000 units that were in process at the beginning of November and 120,000 units that were started and completed in November. November's beginning inventory units were 100% complete with respect to materials and 45% complete with respect to conversion. At the end of November, 33,000 additional units were in process in the production department and were 100% complete with respect to materials and 65% complete with respect to conversion.
Required:
Compute the number of equivalent units with respect to materials for November using the weighted-average method.
Answers
Answer:
Equivalent Units = 179,000
Explanation:
Number of units completed and transferred out = Units in beginning + Units started and completed during the month
= 26,000 + 120,000
= 146,000 units
Equivalent Units = Number of units completed and transferred out + (Additional units in process *Percentage completed)
= 146,000 + 33,000*100%
= 146,000 + 33,000
= 179,000
Therefore, the number of equivalent units using the weighted-average method is 179,000
Adam Holmes is the Processing Manager of Empire Mortgage Company, a firm that processes loan applications for a number of regional builders. Home buying and therefore mortgage processing is a highly seasonal business, and requires temporary staff during busy processing periods. Holmes hires staff on a monthly basis from two different temporary staffing firms - Professional Temps (PT) and Support on Demand (SD). In June, Empire hired 14 staff members from PT and 10 from SD. PT is a more established firm and SD is a newly organized firm in the staffing market. Holmes has compiled the following information for June:
Budgets for June PT staff SD staff
Budgeted hourly rate $50 $45
Budgeted time per app. (hours) 1.2 1.4
Actual results for June PT staff SD staff
Actual hourly rate $52 $47
Actual time per app. (hours) 1.4 1.2
Number of actual apps completed 2604 1600
Required:
a. Determine the labor rate and efficiency variances for (a) 14 PT staff and (b) the SD staff hired in June.
b. Comment on the efficiency of the PT and SD staff hired by Empire Mortgage.
Answers
Answer:
a. Labor variances for 14 PT staff:
Labor rate variance = (Standard Rate – Actual Rate) x (Actual time per app) * (number of apps. completed)
= ($50 - $52) x 1.40 x 2,604
= $7291.20 (Unfavorable)
Labor Efficiency variance = [(Standard hours per app. X number of app.) - (Actual time per App. * number of apps.)] * Std. rate
= [(1.20 * 2,604) - (1.40 * 2,604)] * $50
= [3,124.80 - 3,645.60] * $50
= $26,040 (Unfavorable)
Labor Cost variance = Labor rate variance + Labor efficiency variance
= $7,291.20 (Unfavorable) + $ 26,040 (Unfavorable)
= $33,331.20 (Unfavorable)
Labor variances for 10 SD staff:
Labor rate variance = (Standard Rate – Actual Rate) x (Actual time per app) * (number of apps. completed)
= ($45 - $47) * 1.20 * 1,600
= $3840 (Unfavorable)
Labor Efficiency variance = [(Standard hours per app. X number of app.) - (Actual time per App. * number of apps.)] * Std. rate
= (1.40*1,600) – (1.20*1,600)]*$45
= [2,240 – 1,920] * $45
= $14,400 (Favorable)
Labor Cost variance = Labor rate variance + Labor efficiency variance
= $3,840 (Unfavorable) + $ 14,400 (Favorable)
= $10,560 (Favorable)
Del Gato Clinic's cash account shows a $11,589 debit balance and its bank statement shows $10,555 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $1,829. The June 30 bank statement lists a $16 bank service charge. Check No. 919, listed with the canceled checks, was correctly drawn for $467 in payment of a utility bill on June 15. Del Gato Clinic mistakenly recorded it with a debit to Utilities Expense and a credit to Cash in the amount of $476. The June 30 cash receipts of $2,856 were placed in the bank's night depository after banking hours and were not recorded on the June 30 bank statement.
Prepare its bank reconciliation using the above information.
DEL GATO CLINIC
Bank Reconciliation
June 30
Book balance
Add: Bank statement balance
Add:
Deduct: Deduct:
Adjusted bank balance Adjusted book balance
Answers
Answer:
Bank Reconciliation
Bank Statement Balance 10,555
Add: June 30 Deposit 2,856
13,411
Less: Outstanding Checks (1,829)
Adjusted bank balance $11,582
Bank Reconciliation
Book Balance 11,589
Add: Error in Check 919 (479 - 467) 9
11,598
Less: Bank service charge ( 16)
Adjusted book balance 11,582
Silver Enterprises has acquired All Gold Mining in a merger transaction. The following balance sheets represent the premerger book values for both firms:
Silver Enterprises
Current assets $ 10,000
Current liabilities $ 7,840
Other assets 3,100
Long-term debt 5,110
Net fixed assets 17,300
Equity 17,450
Total $ 30,400
Total $ 30,400
All Gold Mining
Current assets $ 2,920
Current liabilities $ 2,620
Other assets 1,380
Long-term debt 0
Net fixed assets 6,110
Equity 7,790
Total $ 10,410
Total $ 10,410
Construct the balance sheet for the new corporation if the merger is treated as a purchase for accounting purposes. The market value of All Gold Mining's fixed assets is $7,510; the market values for current and other assets are the same as the book values. Assume that Silver Enterprises issues $14,660 in new long-term dept to finance the acquisition.
Answers
Answer:
Silver Enterprises Post Merger Balance Sheet
Current Assets 12,920 Current liabilities 10,460
Other Asset 4,480 Long-term debt 19,770
Net Fixed Asset 24,810 Equity 17,450
Goodwill 5,470
$47,880 $47,680
Explanation:
Current assets = 10,000 + 2,920 = 12,920
Other assets = 3,100 + 1,380 = 4,480
Current liabilities = 7,840 + 2,620 = 10,460
Net fixed assets = 17,300 + 7,510= 24,810
Long-term debt = 5,110 + 14,660 = 19,770
Equity = $17,450
A processor makes two components, A and B, which are then packaged together as the final product (each product sold contains one A and one B). The processor can do only one component at a time: either it can make As or it can make Bs. There is a setup time when switching from A to B.
Current plans are to make 100 units of component A, then 100 units of component B, then 100 units of component A, then 100 units of component B, and so forth, where the setup and run times for each component are given below.
COMPONENT SETUP/CHANGEOVER TIME RUN TIME/UNIT
A 5 minutes 0.2 minute
B 10 minutes 0.1 minute
Assume the packaging of the two components is totally automated and takes only two seconds per unit of the final product. This packaging time is small enough that you can ignore it.
Require:
What is the average hourly output, in terms of the number of units of packaged product (which includes one component A and one component B)?
Answers
Answer:
133 Packets per hour
Explanation:
Component Setup time A Run time B Total time A+B
A 5 20 25 minute
(0.2*100)
B 10 10 20 minute
(0.1*100)
Production time for 100 units of A+B 45 Minutes
Average hourly output = 60/45 * 100
Average hourly output = 1.33 * 100
Average hourly output = 133 Packets per hour
The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
Accounts Debit Credit
Cash $12,000
Accounts Receivable 150,000
Prepaid Rent 6,000
Supplies 30,000
Equipment 400,000
Accumulated Depreciation $135,000
Accounts Payable 12,000
Salaries Payable 11,000
Interest Payable 5,000
Notes Payable (due in two years) 40,000
Common Stock 300,000
Retained Earnings 60,000
Service Revenue 500,000
Salaries Expense 400,000
Rent Expense 20,000
Depreciation Expense 40,000
Interest Expense 5,000
Totals $1,063,000 $1,063,000
Accounts Debit Credit
Service Revenue 500,000
Salaries Expense 400,000
Rent Expense 20,000
Depreciation Expense 40,000
Interest Expense 5,000
Total $1,063,000 $1,063,000
Required:
1. Prepare an income statement for the year ended December 31, 2021.
2. Prepare a statement of stockholders' equity for the year ended December 31, 2021, assuming no common stock was issued during 2021.
3. Prepare a classified balance sheet as of December 31, 2021.
Answers
Answer:
Please see answers below
Explanation:
1. Prepare an income statement for the year ended, December 31, 2021
Fightin' Blue Hems Corporation, Income statement for the year ended, December 31, 2021.
Details
$
Service revenue
500,000
Salaries expense
400,000)
Rent expense
20,000)
Depreciation expense
40,000)
Interest expense
5,000)
Earnings for the year
35,000
2. Prepare a statement of stockholder's equity for the year ended, 31, December, 2021
Fightin' Blue Hens Corporation statement of stockholder equity for the year ended , December 31, 2021.
Details
$
Common stock
300,000
Retained earnings
60,000
Earnings for the year
35,000
Stockholder equity
395,000
3. Prepare a classified balance sheet as at 31, December
Fightin' Blue Hens Corporation, classified balance sheet for the hear ends, December 31, 2021.
Details
$
Fixed assets
Equipment
400,000
Accumulated depreciation
135,000
Net fixed assets
265,000
Current assets
Cash
12,000
Accounts receivables
150,000
Prepaid rent
6,000
Supplies
30,000
Total current assets
198,000
Current liabilities
Accounts payable
($12,000)
Salaries payable
(11,000)
Interest payable
(5,000)
Working capital
170,000
Long term liabilities
Notes payable (due in two years)
(40,000)
Net total assets
395,000
Financed by;
Common stock
300,000
Retained earnings
60,000
Earnings for the year
35,000
Stockholder equity
395,000
Amount of an Annuity John Goodheart wishes to provide for 6 annual withdrawals of $3,000 each beginning January 1, 2029. He wishes to make 10 annual deposits beginning January 1, 2019, with the last deposit to be made on January 1, 2028. Required: If the fund earns interest compounded annually at 10%, how much is each of the 10 deposits
Answers
Answer and Explanation:
Answer and explanation attached
berkshire hathaway a corporation, owns Goldman Sachs preferred stock with a 12 dividend yield. What is Berthshire Hathaway's after-tax dividend yield on this preferred stock if their marginal tax rate is
Answers
Answer: 11.2%
Explanation:
Here is the completed question:
berkshire hathaway a corporation, owns Goldman Sachs preferred stock with a 12 dividend yield. What is Berthshire Hathaway's after-tax dividend yield on this preferred stock if their marginal tax rate is 21%?
The dividend yield that's not subject to tax will be:
= 12% × 70%
= 0.12 × 0.7
= 0.084
The dividend yield that's subject to tax will be:
= 12% × 30% × (1 - 21%)
= 0.12 × 0.3 × 0.79
= 0.02844
Berthshire Hathaway's after-tax dividend yield will now be:
= 0.084 - 0.02844
= 0.11244
= 11.2%
According to the video, which activities are Executive Secretaries and Administrative Assistants likely to do? Check all that apply.
Answers
Answer:
1 2 3
Explanation:
I was right 2020
Answer: its 1,2,3 I answered it in the comment section. Because it didn't work.
Explanation: hope this helps.
leased the asset on a 2-year lease, the payment would be $110 at the begin- ning of each year. If RC borrowed and bought, the bank would charge 10% interest on the loan. In either case, the equipment is worth nothing after 2 years and will be discarded. Should RC lease or buy the equipment?
Answers
Answer:
you should purchase the asset using a bank loan
Explanation:
in order to compare both options, we need to determine the present value of each alternative:
present value of lease costs:
cash flow year 0 = $110
cash flow year 1 = $110
PV = $110 + $110/1.1 = $110 + $100 = $210
present value of purchasing the equipment:
cash flow year 0 = $0
cash flow year 1 = $115.24
cash flow year 2 = $115.24
PV = $200
if you consider the tax shield of leasing = ($220 - $200) x tax rate = $20 x 40% = $8
the tax shield of interest expense = ($230.48 - $200) x tax rate = $30.48 x 40% = $12.19
It doesn't matter how you analyze this, buying is a better and cheaper option. The problem with leasing is that you need to make an immediate payment, while if you borrow money, then the first payment is made in the future. The time value of money is different.
The manager of ABC, Inc decides to order the same number of widgets this year as last year. The manager has made a(n) ________ decision.
Answers
Answer: Structured decision
Explanation:
From the question, we are informed that the manager of ABC, Inc decides to order the same number of widgets this year as last year. This implies that the manager has made a structured decision.
Structured decisions occurs when there are already certain processes in place which will be vital in handling of a particular situation. People in organizations use structured decisions when the situations they face are common or reccuring ones. They're repetitive, hence there are necessary processes in place to handle them.
If a specific economy has extra capital resources available,
be able to produce top-quality goods and services.
continually look to expand and invest.
be able to produce more goods and services needed and wanted by society.
have additional labor available to focus on production.
this
Answers
Answer: A
Be able to produce top-quality goods and services
If a specific economy has extra capital resources available, be able to produce more goods and services needed and wanted by society.
What is an economy?An economy is a region where products and services are produced, distributed, traded, and consumed. It is generally understood to be a social domain that places an emphasis on the behaviors, discourses, and tangible manifestations connected to the creation, utilization, and management of finite resources.
One's culture, values, education, technological advancement, history, social organization, political structure, legal system, and natural resources are all major determinants of an economy's processes.
These elements determine the parameters and conditions under which an economy operates in addition to providing background and content. In other words, the economic realm is a social domain made up of connected human behaviors and exchanges that cannot exist independently.
Individuals, companies, organizations, or governments all qualify as economic actors. When two persons or organizations agree on the value or price of the good or service being exchanged, which is typically stated in a particular currency, an economic transaction takes place.
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Mechanistic vs. Organic Structures Managers taking a contingency approach must consider numerous factors in designing the best kind of structure for their particular organization at that particular time. British behaviorists Tom Burns and G.M. Stalker identified what they call mechanistic and organic structures. Depending on the task environment and a variety of other considerations, the type of organizational structure chosen can be critical to organizational success. This exercise will test your knowledge of the characteristics of each of these types of organizational structure.
Select the most appropriate category (mechanistic or organic structure) for each of the characteristics of organizations.
1. Few rules and procedures
2. Narrow span of control
3. Specialized tasks
4. Many teams or task forces
5. Many rules and procedures
6. Decentralized hierarchy of authority
7. Flatter structure
8. Informal communication
9. Taller structure
10. Centralized hierarchy of authority
11. Wider span of control
12. Shared tasks
13. Formalized communication
14. Few teams or task forces
Category:
a. Mechanistic Organizations
b. Organic Organizations
Answers
Answer:
Mechanistic Organizations Organic Organizations
- Few teams and task force - Few rules and procedures
- Formalized communication - Shared tasks
- Centralized hierarchy of authority - Flatter structure
- Narrow span of control - Many teams and task force
- Many rules and procedures - Decentralized hierarchy of authority
- Specialized task - Informal communication
- Taller structure - Narrow span of control
The two principle methods of measuring Gross Domestic Product are the A. expenditures approach and the income approach. B. flow approach and the stock approach. C. intermediate approach and the valueadded approach. D. domestic approach and the international approach.
Answers
Answer:
A. expenditures approach and the income approach.
Explanation:
GDP known as gross domestic product, is the dollar value of all final output produced within the borders of the nation during a specific period of time. Under a nominal gross domestic product (GDP) calculation for an economy, the current dollar value of the finished goods and services within the country is used. Since it is a measure that uses the current dollar value, it also include changes in price due to inflation or an increase in price in the economy
The GDP is important because it is a measure of the economy’s overall economic performance.
Simply stated, GDP is a measure of the total income of all individuals in an economy and the total expenses incurred on the economy's output of goods and services in a particular country. The Gross Domestic Products (GDP) of a country's economy gives an insight to it's social well-being, these includes;
The two principle methods of measuring Gross Domestic Product are the expenditures approach and the income approach.
The City of Waterville applied for a grant from the state government to build a pedestrian bridge over the river inside the city’s park. On May 1, the city was notified that it had been awarded a grant of up to $200,000 for the project. The state will provide reimbursement for allowable expenditures. On May 5, the special revenue fund entered into a short-term loan with the General Fund for $200,000 so it could start bridge construction. During the year, the special revenue fund expended $165,000 for allowable bridge construction costs, for which it submitted documentation to the state. Reimbursement was received from the state on December 13, 2017.
Required:
For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following.
a. May 5, 2017, loan from General Fund.
b. During FY 2017, bridge expenditures and submission of reimbursement documentation.
c. December 13, 2017, receipt of the grant reimbursement funds.
d. December 31, 2017, adjusting and closing entries.
Answers
Answer:
The City of Waterville
a. May 5:
Debit Cash $200,000
Credit InterFund Loan Payable $200,000
To record the loan from the general fund.
b. Debit Bridge Expenditure $165,000
Credit Vouchers Payable $165,000
To record the bridge expenditure for the year.
Debit Grant Receivable from State $165,000
Credit Grant Revenue $165,000
To record the submission of documentation for reimbursement.
c. Debit Cash $165,000
Credit Grant Receivable from State $165,000
To record the receipt of grant reimbursement.
d. Debit Revenues $165,000
Credit Expenditures $165,000
To record the revenues received and the expenditures.
Explanation:
The City of Waterville's application does not attract any journal entries. No journal entries are also made on May 1 when the city was notified of the grant award. Journal records are made from May 5 when the short-term loan arrangement was concluded with the General Fund.
Farley Inc. has perpetual preferred stock outstanding that sells for $50 a share and pays a dividend of $5.00 at the end of each year. What is the required rate of return? Round your answer to two decimal places.
Answers
Answer:
10%
Explanation:
The Required Rate of return is the minimum acceptable return on investment sought by individuals or companies considering an investment opportunity.
Dividend = $5
Market price = $50
Required rate of return = Dividend / Market price
Required rate of return = 5/50*100
Required rate of return = 10%
g you are eligible for a 30 year fixed rate home mortgage with 3.6% interest rate what is the maximum loan you can get
Answers
Answer:
the maximum loan is $379,417
Explanation:
The computation of the maximum loan is shown below:
As we know that
Maximum Loan = Present Value of all monthly Payments
= $1,725 × PVAF(0.3%,360 months)
= $1,725 × [1- (1+0.003)^-360] ÷ 0.003
= $1,725 × 219.9517
= $379,417
hence, the maximum loan is $379,417
Here the interest rate is divided by 12 and the months should be multiplied by 12 as this is the case of monthly basis
Answer:
money
Explanation:
In 2013, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made the following expenditures:
Basic research to develop the technology $ 2,000,000
Engineering design work 680,000
Development of a prototype device 300,000
Acquisition of equipment 60,000
Testing and modification of the prototype 200,000
Legal and other fees for patent application on the new
communication system 40,000
Legal fees for successful defense of the new patent 20,000
Total $ 3,300,000
The equipment will be used on this and other research projects. Depreciation on the equipment for 2013 is $10,000.
During your year-end review of the accounts related to intangibles, you discover that the company has capitalized all of the above as costs of the patent. Management contends that the device simply represents an improvement of the existing communication system of the satellite and, therefore, should be capitalized.
Required:
Prepare correcting entries that reflect the appropriate treatment of the expenditures.
1. Record the correcting entry to expense R&D costs incorrectly capitalized
2. Record the correcting entry to capitalize the cost of equipment incorrectly capitalized as a patent.
3. Record the correcting entry to record depreciation on equipment used in R&D projects.
Answers
Answer:
1. Dec 31
Dr Research and Development Expense $3,180,000
Cr 2013 Patent $3,180,000
2. Dec 31
Dr Equipment $60,000
Cr 2013 Patent $60,000
3. Dec 31
Dr Research and Development Expense $10,000
Cr 2013 Accumulated Depreciation - Equipment $10,000
Explanation:
1. Preparation of the Journal entry to Record the correcting entry to expense
Dec 31
Dr Research and Development Expense $3,180,000
Cr 2013 Patent $3,180,000
(Being To record research and development expense )
Calculation for the Total amount of theresearch and development expense
Basic research to develop the technology $2,000,000
Engineering design work $680,000
Development of a prototype device $300,000
Testing and modification of the prototype $200,000
TOTAL research and development expense $3,180,000
2. Preparation of the journal entry to Record the correcting entry to capitalize the cost of equipment
Dec 31
Dr Equipment $60,000
Cr 2013 Patent $60,000
(Being To correct cost of equipment capitalized to patent)
3. Preparation of the Journal entry to Record the correcting entry to record depreciation on equipment
Dec 31
Dr Research and Development Expense $10,000
Cr 2013 Accumulated Depreciation - Equipment $10,000
(Being To record research and development expens
A company looking to expand internationally with little risk would choose?
Answers
Answer:
LicensingFranchisingExplanation:
There are no options but Licensing as well as Franchising are some of the least riskiest ways to expand internationally.
With Licensing, the company looking to expand simply sells licenses to various companies in different countries giving them the right to use their image. Basically, the company the license is sold to gets access to the seller's intellectual property but then can run their business with a significant degree of autonomy.
Franchising represents another way to expand with little risk. It involves a company giving a license to another company to sell and sometimes produce their products as well as image rights. The company will give the franchisee (company that gets the license) the knowledge and training required to maintain the franchise and in exchange, franchisee pays a fee.
Both of these methods ensure that the name and brand of a company spread internationally whilst making money from it. Risk is minimized because the investment in other countries is low to nothing.
You are the manager of a monopoly that faces a demand curve described by P = 85 − 5Q. Your costs are C = 20 + 5Q. The profit-maximizing output for your firm is:
Answers
Given:
Price function : P = 85 − 5Q.
Cost function : C = 20 + 5Q.
To find:
The profit-maximizing output for your firm.
Explanation:
Total revenue = Price × Quantity
[tex]TR=P\times Q[/tex]
[tex]TR=(85-5Q)\times Q[/tex]
[tex]TR=85Q-5Q^2[/tex]
Differentiate with respect to quantity.
[tex]\dfrac{d(TR)}{dQ}=85(1)-5(2Q)[/tex]
[tex]MR=85-10Q[/tex]
Cost function is
[tex]C=20+5Q[/tex]
Differentiate with respect to quantity.
[tex]\dfrac{dC}{dQ}=(0)+5(1)[/tex]
[tex]MC=5[/tex]
The profit is maximum if [tex]MR=MC[/tex].
[tex]85-10Q=5[/tex]
[tex]85-5=10Q[/tex]
[tex]80=10Q[/tex]
Divide both sides by 10.
[tex]\dfrac{80}{10}=Q[/tex]
[tex]Q=8[/tex]
Therefore, the profit-maximizing output for the firm is 8 units.
The demand curve is the curve that shows the relationship of demand with its various aspects. The demand curve is the graphical presentation of the shifts that are caused by the aspects of the demand.
The given information are:
Price function : P = 85 − 5Q.
Cost function : C = 20 + 5Q.
Total revenue = Price × Quantity
[tex]TR=P\times Q[/tex]
[tex]TR=(85-5Q)\times Q[/tex]
[tex]TR= 85Q-5Q^{2}[/tex]
Differentiate with respect to quantity.
[tex]\frac{d(TR)}{dQ} =85(1)-5(2Q)\\MR=85-10Q[/tex]
Cost function is=[tex]C=20+5Q[/tex]
Differentiate with respect to quantity.
[tex]\frac{dC}{dQ}=(0)+5(1)\\MC=5[/tex]
The profit is maximum in the firm if: [tex]MR=MC[/tex]
[tex]85-10Q-5\\85-5=10Q\\80=10Q[/tex]
Divide both sides by 10.
[tex]\frac{80}{10}=Q\\Q=8[/tex]
Therefore, the profit-maximizing output for the firm is 8 units.
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Van Frank Telecommunications has a patent on a cellular transmission process.
1. The company has amortized the $19.80 million cost of the patent on a straight-line basis, since it was acquired at the beginning of 2012.
2. Due to rapid technological advances in the industry, management decided that the patent would benefit the company over a total of six years rather than the nine-year life being used to amortize its cost.
3. The decision was made at the end of 2016 (before adjusting and closing entries).
What is the appropriate adjusting entry for patent amortization in 2016 to reflect the revised estimate.
(If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions rounded to 2 decimal places (i.e., 5,500,000 should be entered as 5.50).) Record the adjusting entry for patent amortization in 2016.
Answers
Answer:
Van Frank Telecommunications
December 31, 2016:
Debit Amortization Expense - Patent $4,400,000
Credit Accumulated Amortization-Patent $4,400,000
To record the revised amortization expense for the year.
Explanation:
Data and Calculations:
Patent's value on January 1, 2012 = $19,800,000
Patent's assessed lifespan = 9 years
Amortization expense for each year on straight-line = $2,200,000 ($19,800,000/9)
Accumulated Amortization for Patent = $6,600,000 (for 3 years)
Net book value of patent = $13,200,000 ($19,800,000 - $6,600,000)
Revised lifespan = 6 years
Revised amortization expense per year = $4,400,000 ($13,200,000/3)
If the price level increases by 2 percent each year, the inflation rate is increasing. a. True b. False
Answers
Answer: False
Explanation:
Inflation refers to the general rise in prices of goods and services in an economy. It erodes the value of currency because with inflation, one is able to buy less goods.
If the inflation rate increases by 2% each year then the inflation rate is not increasing. The inflation rate is remaining constant at 2%. The inflation rate would be increasing if the prices increased by 2% then by 4% then by 6%. That way the inflation rate would be increasing by 2% every year.
If the rate at which prices are increasing is constant then, the inflation rate is the same.
Re-Tire produces bagged mulch made from recycled tires. Production involves shredding tires and packaging the pieces for sale in the bagging department. All direct materials enter in the first process. The following describes production operations for October.
Direct materials used $226,000
Direct labor used 30% in Shredding; 70% in Bagging. $112,000
Predetermined overhead rate (based on direct labor) 165 %
Transferred to Bagging $206,500
Transferred to finished goods $583,000
The company's revenue for the month totaled $470,000 from credit sales, and its cost of goods sold for the month is $240,000.
Required:
Prepare summary journal entries dated October 31 to record its October production activities for:
a. Direct materials usage
b. Direct labor incurred
c. Overhead applied
d. Goods transfer from Shredding to Bagging.
e. Goods transfer from Bagging to finished goods.
f. Credit sales
g. Cost of goods sold.
Answers
Answer:
a.
Work In Process : Direct Materials $226,000 (debit)
Raw Materials $226,000 (credit)
Direct Materials used in production
b.
Work In Process : Shredding $33,600 (debit)
Work In Process : Bagging $78,400 (debit)
Salaries Payable $112,000 (credit)
Direct labor incurred during production
c.
Work In Process : Shredding $55,440 (debit)
Work In Process : $129,360 Bagging
Overheads $184,800 (credit)
Overheads applied to production cost
d.
Work In Process : Bagging $206,500 (debit)
Work In Process : Shredding $206,500 (credit)
Manufacturing costs transferred from Shredding to Bagging
e.
Work In Process : Shredding $583,000 (debit)
Finished Goods $583,000 (credit)
Manufacturing Costs transfer from Bagging to finished goods
f.
Account Receivable $470,000 (debit)
Sales Revenue $470,000 (credit)
Credit Sales during the month
g.
Cost of Goods Sold $240,000 (debit)
Finished Goods $240,000 (credit)
Cost of Goods Sold during the month
Explanation:
See the Journal entries and their narrations prepared above
Ignacio received his certificate in hospitality management Which type of schooling would give him a certificate?
O a two-year college
O a vocational school
O a four-year college
O high school
Answers
Answer: B: a vocational school
Explanation:
The kind of the schooling that would give him a certificate is a four-year college. Thus, option second is correct.
What is hospitality management?The study of the hospitality business is known as hospitality management and tourism. A degree in the field may be conferred by a university college specialized in hotel management studies or a business school with a related department.
Hospitality managers oversee the day-to-day operations of a restaurant or hotel, including hiring and firing employees, ensuring that the facilities are properly maintained, guaranteeing client satisfaction, and maintaining administrative and financial records.
A four-year college is the type of education that would get him a certificate. As a result, option two is correct.
Learn more about hospitality management here:
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Learning design software, applying to college and creating a website to showcase work are examples of ______ that lead to a career as a graphic artist?
Answers
Answer:
Long term goals
Explanation:
goals are later on
Answer:
Long term goals
Explanation:
hopes this helps<3
What is the term for the relationship between printer and paper?
Printer and paper are
to each other.
NOT ANALOGY
Answers
Answer:
Complementary Products
Explanation:
Printers and papers are an example of complementary goods. Complimentary products are goods or services sold independently but must be used together. A complimentary good provides little or no satisfaction to the consumer on its own. It has to be used in combination with another good. In this case, a printer with no papers adds little value or no value to the owner.
Other examples of complementary goods are
Petrol and car.Guns and bulletsMobile phones and mobile phone credit Tennis balls and tennis racketsCasino Inc. expects to pay a dividend of $6 per share at the end of year 1 (Div1) and these dividends are expected to grow at a constant rate of 6 percent per year forever. If the required rate of return on the stock is 20 percent, what is the current value of the stock today?
Answers
Answer:
The current value of the stock today is $42.90
Explanation:
P1 = $6 / 0.20 - 0.06
P1 = $6 / 0.14
P1 = $42.8571
P1 = $42.90
Type the correct answer in the box. Spell all words correcty.
George has to present the goals of information management to his team member. What is a goal of Information management?
The goal of Information management is to identify information requirements for various what levels
Answers
Answer and Explanation:
The information management refers to manage the information in effecetive and efficient manner. It could be in terms of storing, organizing, developing, using, distributing the information so that it became useful for the organization
Here, the goal of information management is to identify the requirement of the information for various management levels so that it can be used in appropriate manner.
Answer:
The answer is: management
Eye Deal Optometry leased vision-testing equipment from Insight Machines on January 1, 2021. Insight Machines manufactured the equipment at a cost of $350,000 and lists a cash selling price of $437,810. Appropriate adjusting entries are made quarterly.
Related Information:
Lease term 5 years (20 quarterly periods)
Quarterly lease payments $26,250 at Jan. 1, 2021, and at Mar. 31, June 30, Sept. 30, and Dec. 31 thereafter
Economic life of asset 5 years
Interest rate charged by the lessor 8%
Required:
a. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
b. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
Answers
Answer:
a. Prepare appropriate entries for Eye Deal to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
we must first determine the present value of the lease payments:
PV of lease payments = quarterly payment x annuity factor
quarterly payment = $26,250PV annuity due factor, 2%, 20 periods = 16.67846PV of lease payment = $26,250 x 16.67846 = $437,809.56 ≈ $437,810
January 1, 2021, equipment leased from Insight Machines
Dr Right of use asset 437,810
Cr Lease payable 437,810
January 1, 2021, first lease payment
Dr Lease payable 26,250
Cr Cash 26,250
March 31, 2021, second lease payment
Dr Lease payable 18,019
Dr Interest expense 8,231
Cr Cash 26,250
interest expense = ($437,810 - $26,250) x 2% = $8,231
March 31, 2021, amortization expense
Dr Amortization expense 21,891
Cr Right of use asset 21,891
amortization expense = $437,810 / 20 = $21,891
b. Prepare appropriate entries for Insight Machines to record the arrangement at its beginning, January 1, 2021, and on March 31, 2021.
January 1, 2021, equipment leased to Eye Deal
Dr Lease receivable 437,810
Cr Lease revenue 437,810
Dr Cost of goods sold 350,000
Cr Equipment 350,000
January 1, 2021, first lease payment
Dr Cash 26,250
Cr lease receivable 26,250
March 31, 2021, second lease payment
Dr Cash 26,250
Cr Lease receivable 18,019
Cr Interest revenue 8,231
Presented below are condensed financial statements adapted from those of two actual companies competing as the primary players in a specialty area of the food manufacturing and distribution industry. ($ in millions, except per share amounts.)
Balance Sheets
Metropolitan Republic
Assets $ 179.3 $ 37.1
Cash
Accounts receivable (net) 422.7 325.0
Short-term investments — 4.7
Inventories 466.4 635.2
Prepaid expenses and other current assets134.6 476.7
Current assets $ 1,203.0 1,478.7
Property, plant, and equipment (net) 2,608.2 2,064.6
Intangibles and other assets 210.3 464.7
Total assets $ 4,021.5 $4,008.0
Liabilities and Shareholders’ Equity
Accounts payable $ 467.9 691.2
Short-term notes 227.1 557.4
Accruals and other current liabilities 585.2 538.5
Current liabilities $ 1,280.2 1,787.1
Long-term debt 535.6 542.3
Deferred tax liability 384.6 610.7
Other long-term liabilities 104.0 95.1
Total liabilities $ 2,304.4 3,035.2
Common stock (par and additional paid-in capital)
144.9 335.0
Retained earnings 2,476.9 1,601.9
Less: treasury stock (904.7) (964.1)
Total liabilities and shareholders’ equity $
4,021.5 4,008.0
Income Statements
Net sales 5,698.0 7,768.2
Cost of goods sold (2,909.0) (4,481.7)
Gross profit $ 2,789.0 3,286.5
Operating expenses (1,743.7 ) (2,539.2)
Interest expense (56.8) (46.6)
Income before taxes $ 988.5 700.7
Tax expense (394.7) (276.1)
Net income 593.8 424.6
Net income per share $ 2.40 6.50
Note: Because comparative statements are not provided you should use year-end balances in place of average balances as appropriate.
Required:
Calculate the rate of return on assets for the following companies
Calculate the return on assets for both companies.
Calculate the Rate of return on shareholders’ equity for the following companies
Calculate the equity multiplier for the following companies.
Calculate the acid-test ratio and current ratio for the following companies.
Calculate the receivables and inventory turnover ratios the following companies.
Calculate the times interest earned ratio for the following companies.
Answers
Answer and Explanation:
We refer to balance sheet figures for each company stated above to retrieve figures for our calculations and use the following formulas for calculations:
For return on assets= net imcome/total assets
For rate of return on shareholders equity =net income/equity
For equity multiplier= total assets/ total equity
For acid-test ratio=liquid assets/current liabilities
For current ratio =current assets/current liabilities
For receivables = credit sales /acct receivables and inventory turnover ratios=cost of goods/inventory
For times interest earned ratio=ebit/interest expenses