Answer:
Account Debit Credit
Materials $8,000
Accounts Payable $8,000
Supplies $4,000
Materials $4,000
Materials $56,000
Accounts Payable $56,000
Cash $8,000
Accounts Payable $8,000
Supplies $68,000
Materials $68,000
Direct Labor Costs $100,000
Wages Payable $100,000
Cash $106,000
Utilities expense $106,000
Work in Process Overhead $125,000
Direct labor costs $125,000
Depreciation Expense $50,000
Accumulated Depreciation $50,000
Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: a. Sold merchandise for cash (cost of merchandise $44,797). $ 83,200 b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $600 ). 1,000 c. Sold merchandise (costing $8,550 ) to a customer on account with terms n/60. 18,000 d. Collected half of the balance owed by the customer in (c). 9,000 e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 288 Required: Compute Net Sales and Gross Profit for Hair World.
Answer:
Net Sales
Gross Revenue $101,200
Less:
Sales Discount $288
Sales Returns $1,000 $1,288
Net Sales $99,912
Gross revenue = 83,200 + 18,000 = $101,200
Gross Profit
Net Sales $99,912
Less: Cost of Goods sold ($52,747)
Gross Profit $47,165
Cost of goods sold
= 44,797 - 600 + 8,550
= $52,747
Suppose Wolverine Steel Company wishes to issue a $100,000 bond with a maturity of 6 years to raise $85,382. The market requires a yield to maturity (YTM) of 10.0% for this company's borrowing/debt. How much coupon will the company have to pay every six months
Answer:
Real question :
Suppose Wolverine Steel Company wishes to issue a $100,000 bond with a maturity of 4 years to raise $78,101. The market requires a yield to maturity (YTM) of 11.0% for this company's borrowing/debt. How much coupon will the company have to pay every six months? (Enter just the number in dollars without the $ sign or a comma and round off decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.)
Explanation:
To turn each of the payments p into a PV at the current interest rate of 11.5% per annum we divide each p by 1.0575n where n is the time until you get you payment, i.e. n= 1, 2, 3, ... 16. The total sum of thaose payments are
PV1=p (1/1.0575 + 1/1.05752 +1/1.05753 + ... + 1/1.057516) = p (1-1/1.057516)/0.575
which is a standard financial formula. Note also that at the end of 8 years you will get a lump sum payment of $100000 whose PV at the current interest rate of 11.5% per annun
PV2 = 100000/1.057516
The total present value PV1 + PV2 = $81,100 the present price of the bond. Thus you have
$81,100 = 100000/1.057516 + p (1-1/1.057516)/
0.0575
P=3835.666058
then, p=100000*i/2 and then for i.
i=7.6713321%
Principal components of a master budget include a.production budget b.capital expenditures budget c.sales budget d.All of these choices are correct.
The principal components of a master budget include D. All of the above.
What is a budget?A budget simply means an estimate of the income and expenditure for a particular period.
In this case, the principal components of a master budget include production budget, capital expenditures budget, and sales budget. Therefore, it's all of the above.
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Support Department Cost Allocation—Direct Method Yo-Down Inc. produces yogurt. Information related to the company’s yogurt production follows: Production Department 1 Production Department 2 Production Department 3 Support Department 1 cost driver 6,400 1,200 400 Support Department 1’s costs total $140,000. Using the direct method of support department cost allocation, determine the costs from Support Department 1 that should be allocated to each production department. Production Department 1 Production Department 2 Production Department 3 Support Department 1 cost allocation $ $ $
Answer:
Production Department 1=$112,000
Production Department 2= $21,000
Production Department 3= $7,000
Explanation:
Calculation to determine the costs from Support Department 1 that should be allocated to each production department
Support department total cost drivers = Production Department 1 + Production Department 2 + Production Department 3
Support department total cost drivers= 6,400+1,200+400
Support department total cost drivers= 8,000
Support Department 1 allocation
Production Department 1=
140,000 x 6,400/8,000
= $112,000
Production Department 2
=140,000 x 1,200/8,000
= $21,000
Production Department 3
=140,000 x 400/8,000
= $7,000
Therefore the costs from Support Department 1 that should be allocated to each production department will be :
Production Department 1=$112,000
Production Department 2= $21,000
Production Department 3= $7,000
Trident Manufacturing Company's treasurer identified the following cash flows during this year as significant. The company repaid existing debt of $25 million, while raising additional debt capital of $75 million. It also repurchased stock in the open markets for a total of $20 million and paid $25 million dividends to its shareholders. What is the net cash provided by (used in) financing activities? (net cash provided by financing are positive cash flows, and net cash used in financing are negative cash flows). Group of answer choices -$5 million -$30 million $5 million $30 million
Answer:
Net cash flows from financing activities = $5 million
Explanation:
Net cash flows from finance = Raising additional debt capital - Repaid debt - Repurchased - Dividends
Net cash flows from finance = $75 million - $25 million - $20 million - $25 million
Net cash flows from finance = $75 million - 70 million
Net cash flows from financing activities = $5 million
Based on the criteria used by the Bureau of Labor Statistics (BLS), identify each person's status as Employed, Unemployed, "Not jn the labor force".
a. Yakov is a 48-year-old autoworker who was laid off from his job 6 months ago. He is frustrated with his inability to find a new full-time position. Last week, he took a part-time job but was given only 3 hours of work.
b. Employed Ana is a 32-year-old professional basketball player. She finished her last season as a player 3 weeks ago and is currently interviewing for a coaching position.
c. Charles is a 45-year-old accountant who has been out of work for almost a year. He became so discouraged that he gave up on his job search a couple of months ago.
d. Juanita is a 29-year-old who lost her job as an associate producer for a radio station. After spending a few weeks out of work and interviewing for several other positions, she gave up on her job search and decided to go back to grad school. She made that decision a few months ago.
Explanation:
a. yakov is employed. even though his work is part time, he is still a member of the labour force since he is in paid employment.
b. Ana is an unemployed member of the labour force since she already finished as a basketball player and is interviewing for a coaching position.
c. Charles already gave up on searching for jobs. he is no longer in the labour force.
d. Juanita is not in the labour force since she is not working and has already given up on her job search.
Below are descriptions of internal control problems. Match the followings with each other.
Internal Control Principles:
a. Establishment of responsibility
b. Segregation of duties
c. Physical control devices
d. Documentation procedures
e. Independent internal verification
f. Human resource controls
__________ 1. The same person opens incoming mail and records the cash receipts. select a letter.
__________2. Three people handle cash sales from the same cash register drawer. select a letter.
__________3. A clothing store is experiencing a high level of inventory shortages because people try on clothing and walk out of the store without paying for the merchandise.
__________4. The person who is authorized to sign checks approves purchase orders for payment.
__________5. Some cash payments are not recorded because checks are not prenumbered.
__________6. Cash shortages are not discovered because there are no daily cash counts by supervisors.
__________7. The treasurer of the company has not taken a vacation for over 20 years.
Answer and Explanation:
The matching is as follows
1. Segregation of duties
2. Responsibility development
3. Control devices that should be displayed physically
4. Segregation of duties
5. Procedures for documentation
6. Internal vertification that to be done independently
7. Controls of human resources
By this way it should be matched
The correct pairs of internal control principles are as follows:
The same person opens incoming mail and records the cash receipts. select a letter, and The person who is authorized to sign checks approves purchase orders for payment - Segregation of duties. Thus, the correct pairs are 1-b, 2-a, 3-c, 4-b, 5-d, 6-e, 7-e.
Segregation of duties refers to the error and fraud which prevent internal control by ensuring the two parties that are responsible for the individual party for any related task.
In that condition, independent internal verification in which the cash shortages are not disclosed because they are no varied in front of the supervisors.
Therefore, the correct pairs are as follows:
1-b, 2-a, 3-c, 4-b, 5-d, 6-e, 7-e.
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Three years ago, you bought 300 shares of Kayleigh Milk Co. for $45 a share with a margin of 50 percent. Currently, the Kayleigh stock is selling for $50 a share. Assume there are no dividends and ignore commissions. Do not round intermediate calculations. Round your answers to two decimal places.
Required:
a. Assuming that you pay cash for the stock, compute the annualized rate of return on this investment if you had paid cash.
b. Assuming that you used the maximum leverage in buying the stock, compute your rate of return with the margin purchase.
Answer:
a) Current stock price = $50
45*(1+r)^2 = 50
(1+r)^2 = 50/45
r = [tex]\sqrt{50/45}[/tex] -1
r = 0.05409255
r =5.41%
b )When the margin is 50%, 50% is paid by broker
Price paid = 50% *45 = 22.5
Price received from broker = 50% * 45 = 22.5
Current price of share = 50
Profit made per share = 50 - 45
Profit made per share = 5
Therefore 22.5*(1+r)^2 = 22.5 + 5
22.5 *(1+r)^2 = 27.5
(1+r)^2 = 27.5/22.5
1+r = [tex]\sqrt{27.5/22.5}[/tex]
r = [tex]\sqrt{27.5/22.5}[/tex] - 1
r = 1.1054 - 1
r = 0.1054
r = 10.54%
The Metropolitan Opera Association, Inc., was founded in 1883 and is widely regarded as one of the world's greatest opera companies. The Metropolitan's performance run from September to May, and the season may consisted of more than two dozen different operas. Many of the opera's loyal subscribers purchase tickets for the upcoming season prior to the end of the opera's fiscal year end at July 31. In its annual report, the Metropolitan recognizes a Deferred Revenue liability that is defined in their footnotes as follows. "Advance ticket sales, representing the receipt of payments for ticket sales for the net opera season, are reported as deferred revenue in the consolidated balance sheets." Ticket sales are recognized as box office revenue "on a specific performance basis."
Fiscial year ended July 31 Revenue Deferred revenue
2017 $88,514 $43,649
2016 87582 46,609
2015 90952 47801
2014 91,319 40,259
Required:
a. What revenue recognition principle(s) drive The Metropolitan Opera's deferral of advance ticket purchases?
b. Recreate the summary journal entries to recognize ticket sales revenue (box office and tours) for The Metropolitan Opera's fiscal year 2017 and advance sales for the fiscal year 2018 season. (Assume that advance ticket sales extend no further than the next year's opera season.)
c. The Metropolitan Opera's season changes every year. At the end of each fiscal year, management of the opera can observe the revenue generated by the season just concluded and also its subscribers' enthusiasm for the upcoming season. How might that information be used in managing the organization?
Answer: See explanation
Explanation:
a. Based on International Accounting Standards (IAS) 15, it should be juted that revenue can be recognized in situations whereby those who in advance have already subscribe for tickets for the Opera show view the performance.
Revenue is recognized when the customers receives his or her good or enjoy the services and if that hasn't happened, there should be a deferment of the recognition for revenue and therefore every advance ticket purchased will be deferred liability.
b. Date Particulars Debit Credit
Dec-17 Dr Ticket sales receivable $1,31,163.00
Cr Deferred revenue Liability $42,649.00
Cr Revenue from Opera Shows $88,514.00
c. When the defered revenue and the revenue from 2014 - 2017 are compared, we can see that the deferred revenue is about 46%-54% of the total revenue.
The information will be useful to The Metropolitan Opera Association Inc. in order for them to predict revenue and hence plan their budget accordingly and tailor it towards achievement of organization goals and objectives.
a. What two elements must exist before a person can be held liable for a crime?
b. What defenses might be raised by criminal defendants to avoid liability for criminal acts?
c. John Law, a local police officer, is sitting outside an AM/PM around Midnight. He is eating a protein bar and drinking an energy drink when he observed a man walking up to the entrance of the AM/PM. The man then walked away from the entrance and met up with another individual on a street corner while repeatedly walking up and down the same street. The men would periodically peer into the AM/PM window and then talk some more. The men also spoke to a third man whom they eventually followed up the street. The officer believed that the men were "casing" the store for a potential robbery. The officer decided to approach the men for questioning, and given the nature of the behavior the officer decided to perform a quick search of the men before questioning. A quick frisking of one of the men, Jake, produced a concealed weapon and Jake was charged with carrying a concealed weapon, a felony.
Jake, hires a lawyer and fights the charges against him. He believes that his greatest argument is that the officer did not have probably cause to search and seize the firearm. Do you agree or disagree? Within your answer, please discuss whether the search was lawful or unlawful. In other words, did the search violate Jake’s 4th Amendment rights?
Explanation:
A. The elements are:
-The person must have committed an act that is prohibited
-The act must have been committed with intent
B
The defenses include
-Self defense
- under duress
- insanity
- necessity
C officer john law had a good and enough cause to search Jake and seize his firearm since his movement was suspicious. It was midnight and he was about a shop in a strange manner and he was even talking to someone else. Such actions is enough to get an officer at alert. It seemed like jake and the man were planning on how to commit a crime. A search on the man even revealed a weapon. 4th amendment gives a protection to peoples privacy and immunity from unnecessary search and seizures. But the amendment does not say a probable cause like the officer had done was illegal. This search was reasonable and very legal. Jakes rights were not violated.
On August 1, 20Y5, Rafael Masey established Planet Realty, which completed the following transactions during the month:
a. Rafael Masey transferred cash from a personal bank account to an account to be used for the business, $17,500.
b. Purchased supplies on account, $2,300.
c. Earned fees, receiving cash, $13,300.
d. Paid rent on office and equipment for the month, $3,000.
e. Paid creditor on account, $1,150.
f. Withdrew cash for personal use, $1,800.
g. Paid automobile expenses (including rental charge) for month, $1,500, and miscellaneous expenses, $400.
h. Paid office salaries, $2,800.
i. Determined that the cost of supplies used was $1,050.
Required:
Journal Entries and Trial Balance
Answer:
a. Dr Cash 17,500
Cr Common Stock 17,500
b. Dr Supplies 2,300
Cr Account payable 2,300
c. Dr Cash 13,300
Cr Sales commission 13,300
d. Dr Rent expense 3,000
Cr Cash 3,000
e. Dr Account payable 1,150
Cr Cash 1,150
f. Dr Dividend 1,800
Cr Cash 1,800
g. Dr Automobile expense 1,500
Dr Miscellaneous expense 400
Cr Cash 1,900
h. Dr Salaries expense 2,800
Cr Cash 2,800
I. Dr Supplies expense 1,050
Cr Supplies 1,050
Explanation:
Preparation of Journal entries
a. Based on the information given we were told that the amount of $17,500 was transferred from a personal bank account to an account that is to be used for business which means that the Journal entry will be:
Dr Cash 17,500
Cr Common Stock 17,500
b. Based on the information given we were told that Purchased supplies on account was the amount of $2,300 which means that the Journal entry will be:
Dr Supplies 2,300
Cr Account payable 2,300
c. Based on the information given we were told that they Earned fees receiving cash of $13,300 which means that the Journal entry will be:
Dr Cash 13,300
Cr Sales commission 13,300
d. Based on the information given we were told they Paid rent on office and equipment of the amount of $3,000 which means that the Journal entry will be:
Dr Rent expense 3,000
Cr Cash 3,000
e. Based on the information given we were told that they Paid creditor on account for the amount $1,150 which means that the Journal entry will be:
Dr Account payable 1,150
Cr Cash 1,150
f. Based on the information given we were told that they Withdrew cash for personal use of the amount of $1,800 which means that the Journal entry will be:
Dr Dividend 1,800
Cr Cash 1,800
g. Based on the information given we were told that they paid automobile expenses which include rental charge for month, costing $1,500, and miscellaneous expenses costing $400 which means that the Journal entry will be:
Dr Automobile expense 1,500
Dr Miscellaneous expense 400
Cr Cash 1,900
h. Based on the information given we were told that they Paid office salaries of the amount of $2,800 which means that the Journal entry will be:
Dr Salaries expense 2,800
Cr Cash 2,800
i. Based on the information given we were told that the cost of supplies used was the amount of $1,050 which means that the Journal entry will be:
Dr Supplies expense 1,050
Cr Supplies 1,050
Floyd and Merriam start a partnership business on June 12, 2019. Their capital account balances as of December 31, 2020 stood as follows:
Floyd $50,000
Merriam 23,000
They agreed to admit Ramelow into the business for a one-fifth interest in the new partnership. Ramelow contributes $27,000 cash in exchange for the partnership interest. Assume that Floyd and Merriam shared profits and losses in a 3:1 ratio before the admission of Ramelow. Which of the following is the correct journal entry to record the above admission?
a. Cash 27,000
Ramelow, Capital 27,000
b. Cash 27,000
Merriam, Capital 7,000
Floyd, Capital 20,000
c. Merriam, Capital 20,000
Floyd, Capital 7,000
Ramelow, Capital 27,000
d. Cash 27,000
Floyd, Capital 5,250
Merriam, Capital 1,750
Ramelow, Capital 20,000
Answer:
d. Cash 27,000
Floyd, Capital 5,250
Merriam, Capital 1,750
Ramelow, Capital 20,000
Explanation:
First of all we need to calculate the total capital after admission
Total Capital after admission = $50,000 + $23,000 + $27,000 = $100,000
Share of Ramelow = Total Capital x Partnership share = $100,000 x 1/5 = $20,000
Actual Payment made by Ramelow = $27,000
Amount of goodwill paid by Ramelow = $27,000 - $20,000 = $7,000
This goodwill will be distributed between Floyd and Merriam as per their partnership ratio
Share of Goodwill ro Flyod = $7,000 x 3/4 = $5,250
Share of Goodwill ro Merriam = $7,000 x 1/4 = $1,750
A bank is offering to sell 3-month certificates of deposit for $15,250. At the end of 3 months, the bank will pay $16,000 to the certificate owner. Calculate the rates and follow formatting as described below:______.
(The interest rates should be rounded to two decimal Places.
Example: 2.347 will be rounded to 2.35; no% sign should be entered, Example: 3.19 is correct but 3.19% is not correct)
1. Interest rate per compounding period is:_______.
2. The nominal annual interest rate is:________.
3. The effective annual interest rate is:________.
Answer:
i= 4.92% compounded quarterly
Nominal rate= 19.68%
Effective interest rate= 21.18%
Explanation:
Giving the following information:
PV= 15,250
FV= 16,000
n= 3 months
First, we need to calculate the interest rate for a quarter:
i= (FV - PV) / PV
i= (16,000 - 15,250) / 15,250
i= 0.0492 = 4.92% compounded quarterly
Now, we can determine the annual nominal rate:
Nominal rate= i*number of periods
Nominal rate= 0.0492*4= 0.1968= 19.68%
Finally, the effective annual interest rate:
Effective interest rate= [(1+i)^n] - 1
Effective interest rate= (1.0492^4) - 1
Effective interest rate= 0.2118 = 21.18%
List A List B 1. Interest a. First cash flow occurs one period after agreement begins 2. Monetary asset b. The rate at which money will actually grow during a year 3. Compound interest c. First cash flow occurs on the first day of the agreement 4. Simple interest d. The amount of money that a dollar will grow to 5. Annuity e. Amount of money paid/received in excess of amount borrowed/lent 6. Present value of a single amount f. Obligation to pay a sum of cash, the amount of which is fixed 7. Annuity due g. Money can be invested today and grow to a larger amount 8. Future value of a single amount h. No fixed dollar amount attached 9. Ordinary annuity i. Computed by multiplying an invested amount by the interest rate 10. Effective rate or yield j. Interest calculated on invested amount plus accumulated interest 11. Nonmonetary asset k. A series of equal-sized cash flows 12. Time value of money l. Amount of money required today that is equivalent to a given future amount 13. Monetary liability m. Claim to receive a fixed amount of money
Answer:
1. List A: Interest
List B: e. Amount of money paid/received in excess of amount borrowed/lent
2. List A: Monetary asset
List B: m. Claim to receive a fixed amount of money
3. List A: Compound interest
List B: j. Interest calculated on invested amount plus accumulated interest
4. List A: Simple interest
List B: i. Computed by multiplying an invested amount by the interest rate
5. List A: Annuity
List B: k. A series of equal-sized cash flows
6. List A: Present value of a single amount
List B: l. Amount of money required today that is equivalent to a given future amount
7. List A: Annuity due
List B: c. First cash flow occurs on the first day of the agreement
8. List A: Future value of a single amount
List B: d. The amount of money that a dollar will grow to
9. List A: Ordinary annuity
List B: a. First cash flow occurs one period after agreement begins
10. List A: Effective rate or yield
List B: b. The rate at which money will actually grow during a year
11. List A: Nonmonetary asset
List B: h. No fixed dollar amount attached
12. List A: Time value of money
List B: g. Money can be invested today and grow to a larger amount
13. List A: Monetary liability
f. Obligation to pay a sum of cash, the amount of which is fixed
You will receive 21 annual payments of $19,500. The first payment will be received 4 years from today and the interest rate is 4.8 percent. What is the value of the payments today
Answer: 936
Explanation: 4.8% of 19,500 = 936
During 2019, Winterset Company performed services for which customers paid or promised to pay a total of $587,000. Of this amount, $552,000 had been collected by year-end. Winterset paid $340,000 in cash for employee wages and owed the employees $15,000 at the end of the year for work that had been done but had not paid for. Winterset paid interest expense of $3,000 and $195,000 for other service expenses. The income tax rate was 35%, and income taxes had not yet been paid at the end of the year. Winterset declared and paid dividends of $20,000. There were no other transactions that affected cash.
Required:
a. What was the amount of the increase or decrease in cash during the year?
b. Prepare an income statement for Winterset for the year.
c. At the beginning of 2019, Winterset's retained earnings were $90,000. Prepare a statement of stockholders' equity with only a column for retained earnings.
Answer:
(A) decrease by 6,000
(B)
Service revenue 587,000
salaries expense (355,000)
interst expense (3,000)
other expenses (195,000)
income before tax 34,000
income tax (35%) (11,900)
net income 22,100
(C)
Retained Earings
Balance Jan 1 90,000
Net Earnings 22,100
Dividends (20,000)
Balance, Dec 31 92,100
Explanation:
collected from customer 552,000
salaries paid (340,000)
interest paid (3,000)
other expenses paid (195,000)
cash dividend paid (20,000)
net (6,000)
For the income statement we use the accrued base and we do not consider the dividends.
Service revenue 587,000
salaries expense (355,000)
interst expense (3,000)
other expenses (195,000)
income before tax 34,000
income tax (35%) (11,900)
net income 22,100
The retained earnigns will increase by the net income amount and decrease with the dividends paid.
The Company has prepared a sales budget of finished units for a 3-month period. The company has an inventory of units of finished goods on hand at December 31 and has a target finished goods inventory of units at the end of the succeeding quarter. It takes gallons of direct materials to make one unit of finished product. The company has inventory of gallons of direct materials at December 31 and has a target ending inventory of gallons at the end of the succeeding quarter. How many gallons of direct materials should Company purchase during the 3 months ending March 31? Select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased.
Complete Question:
The Company has prepared a sales budget of 42,000 finished units for a 3-month period. The company has an inventory of 13,000 units of finished goods on hand at December 31 and has a target finished goods inventory of 15,000 units at the end of the succeeding quarter. It takes 3 gallons of direct materials to make one unit of finished product. The company has inventory of 61,000 gallons of direct materials at December 31 and has a target ending inventory of 53,000 gallons at the end of the succeeding quarter. How many gallons of direct materials should Company purchase during the 3 months ending March 31? Select the labels and enter the amounts to calculate the direct materials (gallons) to be purchased.
Answer:
The Company
Direct materials (gallons) to be purchased = 124,000 gallons.
Explanation:
Data and Calculations:
Budgeted Sales = 42,000 units
Beginning Finished unit Inventory = 13,000 units
Target Ending Inventory = 15,000 units
Production = Budgeted Sales + Ending Inventory - Beginning Inventory
= 42,000 + 15,000 - 13,000
= 44,000 units
To produce 44,000 units require 3 gallons each, i.e. a total of 132,000 (44,000 * 3) gallons
There are 61,000 gallons of materials in Beginning Inventory.
Desired Ending Inventory of materials = 53,000 gallons
Therefore, Purchases of direct materials = Required Production Materials + Ending Inventory (materials) - Beginning Inventory (materials)
= 132,000 + 53,000 - 61,000
= 124,000
What is the formula used to calculate simple interest?
which of the following is placed in the credit column of the trial balance
a.purchases
b. rent expenses
furniture
sales
Answer:
(d)rent received is the answer
Explanation:
Arizona Desert Homes (ADH) constructed a new subdivision during 2020 and 2021 under contract with Cactus Development Co. Relevant data are summarized below: Contract amount $ 3,000,000 Cost: 2020 1,200,000 2021 600,000 Gross profit: 2020 800,000 2021 400,000 Contract billings: 2020 1,500,000 2021 1,500,000 ADH recognizes revenue over time with respect to these contracts. In its December 31, 2020, balance sheet, ADH would report:
For 2020, the journal entry of Arizona Desert Homes (ADH) to record revenue is as follows:
2020:
Debit Accounts Receivable $2,010,000 ($3,000,000 x 67%)
Credit Construction Revenue $2,010,000
To record the revenue for 2020 based on the percentage of completion.What is the percentage of completion method?The percentage of completion method is used to recognize revenue for a long-term contract by computing the percentage of completion for each period based on the costs to completion.
The method is used when ADH recognizes revenue over time instead of at the end of the contract (or contract completion).
Revenue is recognized over time if:
Economic benefits of the provided asset are consumed by the customer as the entity performs.The entity's performance creates or enhances an asset controlled by the customer as the asset is created or enhanced.Data and Calculations:Contract amount Cost: Gross profit: Contract billings:
2020 $3,000,000 $1,200,000 $800,000 $1,500,000
2021 600,000 400,000 1,500,000
Percentage of completion:2020 = 67% ($1,200,000/$1,800,000 x 100)
2021 = 33% ($600,000/$1,800,000 x 100)
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The ledger of Pina Colada Corp. on July 31, 2022, includes the selected accounts below before adjusting entries have been prepared.
Debit Credit
Investment in Note Receivable $18,000
Supplies 22,500 Prepaid Rent 5,400
Buildings 210,000
Accumulated DepreciationâBuildings $135,000
Unearned Service Revenue 11,100
An analysis of the companyâs accounts shows the following.
1. The investment in the notes receivable earns interest at a rate of 12% per year.
2. Supplies on hand at the end of the month totaled $17,600.
3. The balance in Prepaid Rent represents 4 months of rent costs.
4. Employees were owed $2,800 related to unpaid salaries and wages.
5. Depreciation on buildings is $6,360 per year.
6. During the month, the company satisfied obligations worth $4,500 related to the Unearned Services Revenue.
7. Unpaid maintenance and repairs costs were $2,100.
Required:
Prepare the adjusting entries at July 31 assuming that adjusting entries are made monthly.
Answer: See attachment
Explanation:
The adjusting entries at July 31 assuming that adjusting entries are made monthly has been attached.
N.B:
Interest receivable:
= 18000 × 12% × 1/12
= 18000 × 0.12 × 1/12
= 180
Supplies expenses:
= 22500 - 17600
= 4900
Rent expense:
= 5400/4
= 1350
Depreciation expense:
= 6360/12
= 530
.......is the body of elected official whose duty is to make the laws of the country
Answer:
The lagislative body gives out laws for the country
The following information was obtained from Galena Company’s comparative balance sheets. Assume that Galena Company’s 2016 income statement showed depreciation expense of $8,000, a gain on sale of investments of $9,000, and net income of $45,000. Calculate the net cash flow from operating activities using the indirect method.
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,000 $9,000
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $44,000 $35,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55,000 $49,000
Prepaid rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000 $8,000
Long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,000 $34,000
Plant assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000 $106,000
Accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000 $32,000
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,000 $20,000
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000 $6,000
Common stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $121,000 $92,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $106,000 $91,000
The following information was obtained from Galena Company’s comparative balance sheets. Assume that Galena Company’s 2016 income statement showed depreciation expense of $8,000, a gain on sale of investments of $9,000, and net income of $45,000. Calculate the net cash flow from operating activities using the indirect method.
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,000 $9,000
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $44,000 $35,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55,000 $49,000
Prepaid rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000 $8,000
Long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,000 $34,000
Plant assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000 $106,000
Accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000 $32,000
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,000 $20,000
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000 $6,000
Common stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $121,000 $92,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $106,000 $91,000The following information was obtained from Galena Company’s comparative balance sheets. Assume that Galena Company’s 2016 income statement showed depreciation expense of $8,000, a gain on sale of investments of $9,000, and net income of $45,000. Calculate the net cash flow from operating activities using the indirect method.
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,000 $9,000
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $44,000 $35,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55,000 $49,000
Prepaid rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000 $8,000
Long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,000 $34,000
Plant assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000 $106,000
Accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000 $32,000
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,000 $20,000
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000 $6,000
Common stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $121,000 $92,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $106,000 $91,000The following information was obtained from Galena Company’s comparative balance sheets. Assume that Galena Company’s 2016 income statement showed depreciation expense of $8,000, a gain on sale of investments of $9,000, and net income of $45,000. Calculate the net cash flow from operating activities using the indirect method.
Cash. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $19,000 $9,000
Accounts receivable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $44,000 $35,000
Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $55,000 $49,000
Prepaid rent . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $6,000 $8,000
Long-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $21,000 $34,000
Plant assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $150,000 $106,000
Accumulated depreciation. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,000 $32,000
Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $24,000 $20,000
Income tax payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $4,000 $6,000
Common stock. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $121,000 $92,000
Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $106,000 $91,000
please mark me as brainliest........,.....
From the following situation operating activity has been calculated as follows:
Cash Flow Statement from Indirect Method
Particular Amount
Net profit before tax $45,000
Items to be added:
Depreciation $8000
Increase in provision for doubtful debts $8000 $16,000
Items to be deducted:
Gain on sale of investment $ (9000) $(9,000)
Profit from Operating activity $52,000
What is operating activity?Operating activities are all the things a company does to bring its products and services to market on an ongoing basis.
Non-operating activities are one-time events that may affect revenues, expenses or cash flow but fall outside of the company's routine, core business.
So, from the above solution answer of the operating activity is $52,000.
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Bagsâ (PB) is a designer ofâ high-quality backpacks and purses. Each design is made in small batches. Eachâ spring, PB comes out with new designs for the backpack and for the purse. The company uses these designs for a year and then moves on to the next trend. The bags are all made on the same fabrication equipment that is expected to operate at capacity. The equipment must be switched over to a new design and set up to prepare for the production of each new batch of products. Whenâ completed, each batch of products is immediately shipped to a wholesaler. Shipping costs vary with the number of shipments. Budgeted information for the year is asâ follows:
Direct materialsâpurses 319155
Direct materialsâbackpacks 454995
Direct manufacturing laborâpurses 99000
Direct manufacturing laborâbackpacks 113000
Setup 64000
Shipping 73000
Design 169000
Plant utilities and administration 221000
Total 1513150
Backpacks Purse Total
Number of bags 6175 3075 9250
Hours of production 1665 2585 4250
Number of batches 120 80 200
Number of designs 2 2 4
Required:
a. Identify the cost hierarchy level for each cost category.
b. Identify the most appropriate cost driver for each cost category. Explain briefly your choice of cost driver.
c. Calculate the budgeted cost per unit of cost driver for each cost category.
d. Calculate the budgeted total costs and cost per unit for each product line.
e. Explain how you could use the information in requirement 4 to reduce costs.
Answer:
a. Identify the cost hierarchy level for each cost category.
Direct materials purses ⇒ Output unit-level cost
Direct materials backpacks ⇒ Output unit-level cost
Direct manufacturing labor purses ⇒ Output unit-level cost
Direct manufacturing labor backpacks ⇒ Output unit-level cost
Setup ⇒ Batch-level cost
Shipping ⇒ Batch-level cost
Design ⇒ Product-sustaining cost
Plant utilities and administration ⇒ Facility-sustaining cost
b.
Setup $64,000 ⇒ number of batches (it's a batch level cost)
Shipping $73,000 ⇒ number of batches (it's a batch level cost)
Design $169,000 ⇒ number of designs (it's logical, design costs must be allocated based on the number of designs)
Plant utilities and administration $221,000 ⇒ hour of production (it involves the whole manufacturing process)
c.
Setup $64,000 / 200 batches = $320 per batch
Shipping $73,000 / 200 batches = $365 per batch
Design $169,000 / 4 designs = $42,250 per design
Plant utilities and administration $221,000 / 4,250 production hours = $52 per production hour
backpacks purses total
Setup $38,400 $25,600 $64,000
Shipping $43,800 $29,200 $73,000
Design $84,500 $84,500 $169,000
Plant U&A $86,580 $134,420 $221,000
totals $253,280 $273,720 $527,000
d.
total production costs for backpacks = $454,995 + $113,000 + $253,280 = $821,275
production costs per unit = $821,275 / 6,175 = $133 per backpack
total production costs for purses = $319,155 + $99,000 + $273,720 = $691,875
production costs per unit = $691,875 / 3,075 = $225 per purse
e. in order to reduce setup and shipping costs, the company needs to produce in larger batches so the total number of batches decreases.
What can happen if your saving balance goes below the required minimum daily balance?
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What can happen if your saving balance goes below the required minimum daily balance?If you ever have less this amount in your account at the end of the day. You'll have failed to meet the requirements and you will have to pay the monthly fee. If you do fall down below of the minimum balance requirements during the day you may be able to avoid the fee by making a deposit on the same day.
What is the cost if your saving balance goes below?The banks measure and enforce the minimum balance in different ways. If the account falls below the minimum balance it may be assessed fees, denied interest payments, or closed. And also Falling Below Minimum Balance Fee will be collected if account falls below the required minimum MADB for two consecutive months. Account Dormancy Fee will be collected if account is dormant and falls below the minimum MADB. A savings account is dormant if it has no client-initiated activity for two (2) years.
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Explanation:
#Carry on learning(ノ^_^)ノ
Which of the following is considered the more industrial version of hunting?
A: Trapping
B: Cornering
C: Reaping
i believe it's A. Trapping
Why do different customers and service staff respond very differently to the same service environment?
Answer:
Most of them usually get paid for fake products which the consumer might not know is fake
The table below lists the CPI and wage values for the United States from different decades.
a. Complete the table by computing the real income for each year shown in the table
Instructions: Round your answers to two decimal places.
(Table in the picture. If you could provide me with a formula and an example I can do it on my own after that. Thanks :) )
Instructions: Enter the year using all four numbers (yyyy).
b. Of the years listed above, the paycheck of the average worker was highest in
c. Of the years listed above, the purchasing power of the average worker was highest in
The average real wage given the CPI and Nominal wages in:
1967 is $21,188.62
1977 is $22,407.58
1987 is $22,935.74
1997 is $23,163.24
2007 is $23,973.95
2013 is $22,455.79
The paycheck of the average worker was highest in 2013.
The purchasing power of the average worker was highest in 2007.
What is the consumer price index?
The consumer price index measures the changes in price of a basket of good. It is used to measure inflation.
Real wages = nominal wages / cpi
Real wage in 2013 = 52,322 / 2.33 = $22,455.79
Purchasing power is the highest when the real wage is the highest.
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Kohber is a Swiss-company that makes medical equipment. It recently purchased a company, which manufactures packaging for high-value drugs. Since it will run the packaging company as a separate division, it would seem that Kohber is departmentalized by: ___________
Since Kohber, is a Swiss company, that makes medical equipment, which also recently purchased a company manufacturing packaging for high-value drugs, is departmentalized by A. Function.
What is departmentalization?Departmentalization refers to the division of a company into different units.
Some primary forms of departmentalization are by:
FunctionProcessProductMarketCustomerGeographic areaMatrix.Answer Options:A. Function
B. Size
C. Geography
D. Customer product
Thus, since Kohber will run the packaging company as a separate division, it would seem that Kohber is departmentalized by A. function.
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If a company wants to utilize data analytics in order to identify those traits that make a prospective customer more likely to purchase, it would use an application known as ________ ________ to numerically rate its best prospective customers.
A company would purchase lead scoring application if he wants to utilize data analytics in order to identify those traits that make a prospective customer more likely to purchase.
What is lead scoring?Lead score approach is a scoring methodology that determines the worthiness of leads or potential customers. It attaches values to these potential customers based on their previous sales behavior, especially relating to their interests in the firm's products or services.
It is an effective model that helps sales and marketing departments identify which prospects are potentially most valuable to the company.
Hence, a company would purchase Lead scoring application if he wants to utilize data analytics in order to identify those traits that make a prospective customer more likely to purchase.
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