The reason why Sony raised their prices on the Playstation 3 was because c. Although consoles were significantly more expensive than traditional videogame consoles, Sony was willing to concede some ground in the PlayStation battle to win the Blu-ray war.
Why was this the case?At the time, Blu-Rays were still gaining popularity and Sony wanted to tap into that popularity to become a market leader.
The Playstation 3 was Blu-ray equipped so Sony raised prices on it because they knew that they would make back profits when more people started buying blu-ray.
In conclusion, option C is correct.
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Pina Corporation factors $268,100 of accounts receivable with Kathleen Battle Financing, Inc. on a with recourse basis. Kathleen Battle Financing will collect the receivables. The receivables records are transferred to Kathleen Battle Financing on August 15, 2020. Kathleen Battle Financing assesses a finance charge of 2% of the amount of accounts receivable and also reserves an amount equal to 4% of accounts receivable to cover probable adjustments. (b) Assume that the conditions are met for a transfer of receivables with recourse to be accounted for as a sale. Prepare the journal entry on August 15, 2020, for Pina to record the sale of receivables, assuming the recourse obligation has a fair value of $4,380. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
Answer and Explanation:
The Journal entries are shown below:-
Cash Dr, $253,014
Due from Factor Dr, $10,724
Loss on sale of Receivables Dr, $8,742
To Recourse Liability $4,380
To Accounts Receivable $268,100
(Being sale of receivables is recorded)
Working note:-
Accounts receivable $268,100
Finance Charge at 2% of AR $5,362
Recourse Liability(fair value) $4,380
Loss on sale of receivables $8,742
Retention amount at 4% of AR $10,724
Cash Received from Factor $253,014
Jordana Woolens is a manufacturer of wool cloth. The information for March is as follows:
Beginning work in process 10,000 units
Units started 20,000 units
Units completed 25,000 units
Beginning work-in-process direct materials $6,000
Beginning work-in-process conversion $2,600
Direct materials added during month $30,000
Direct manufacturing labor during month $12,000
Factory overhead $5,000
Beginning work in process was half converted as to labor and overhead. Direct materials are added at the beginning of the process. All conversion costs are incurred evenly throughout the process. Ending work in process was 60% complete.
Required:
Prepare a production cost worksheet using the weighted-average method. Include any necessary supporting schedules.
Answer:
Production cost worksheet
Flow of production Physical unit Direct materials Conversion
Beginning work in process 10,000
Starting during period 20,000
To account for 30,000
Unit Completed 25,000 25,000 25,000
Ending WIP 5,000 5,000 3,000
Accounted For 30,000 30,000 28,000
Cost Total Direct materials Conversion
Beginning WIP 8,600 6,000 2,600
Cost added during period 47,000 30,000 17,000
Total cost to account for A 55,600 36,000 19,600
Equivalent units 30,000 28,000
Equivalent units cost A/B 1.9 1.2 0.7
Assignment of cost
Cost of transferred out 47,500 (25,000 *1/9)
Ending wip:
Direct materials 6,000 (5,000*1/2)
Conversion 2,100(3,000*1/2)
Cost accounted for 55,600
Complete the below table to calculate the price of a 1.7 million bond issue under each of the following independent assumptions:
Use appropriate factors from tables.
1. Maturity 12 years, interest paid annually, stated rate 10%, effective (market) rate 12%
2. Maturity 20 years, interest paid semiannually, stated rate 10%, effective (market) rate 12%
3. Maturity 10 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%
4. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 10%
5. Maturity 20 years, interest paid semiannually, stated rate 12%, effective (market) rate 12%
Chart: n= i= Cash flow Amount Present Value Interest: Principal: Price of Bonds:
Full question attached
Answer and Explanation:
Answer and explanation attached
Which of the following is a likely problem for a manager who uses sales as a measure of advertising effectiveness? a. Sales offer little guidance or direction to those responsible for planning and developing the advertising program. b. There is often a long period between when advertising is run and when sales actually occur. c. Other marketing mix variables besides advertising can affect sales results. d. The marketing and competitive environment can influence sales. e. All of the above are likely problems for a manager who uses sales as a measure of advertising effectiveness.
Answer: a. Sales offer little guidance or direction to those responsible for planning and developing the advertising program.
Explanation:
Advertisement is when a particular good.or service is being promoted so as to increase the sales and generate more profit.
Sales is the selling of goods or rendering of a particular service by a business to its consumers.
In this case, the likely problem for a manager who uses sales as a measure of advertising effectiveness will be that sales offer little guidance or direction to those responsible for planning and developing the advertising program. When sales is used to determine how successful an advertising is, it gives little guidance to those in charge of developing the program.
Morgan Leasing Company signs an agreement on January 1, 2020, to lease equipment to Cole Company. The following information relates to this agreement.
1. The term of the non-cancelable lease is 6 years with no renewal option. The equipment has an estimated economic life of 6 years.
2. The cost of the asset to the lessor is $245,000. The fair value of the asset at January 1, 2020, is $245,000.
3. The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $24,335, none of which is guaranteed.
4. The agreement requires equal annual rental payments, beginning on January 1, 2020.
5. Collectibility of the lease payments by Morgan is probable.
Required:
Assuming the lessor desires a 8% rate of return on its investment, calculate the amount of the annual rental payment required.
The annual lease payment is $52,997.27.
What is the annual lease payment?The annual lease payment is the minimum amount of payment by the lessee over the lease term.
The annual lease payment can be computed by determining the annual payments, which can be computed using an online finance calculator as follows:
Data and Calculations:N (# of periods) = 6 years
I/Y (Interest per year) = 8%
PV (Present Value) = $245,000
FV (Future Value) = $0
Results:
PMT = $52,997.27
Sum of all periodic payments = $317,983.62
Total Interest = $72,983.62
Thus, the annual lease payment is $52,997.27.
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You make a salary of $75,000 per year, and are to be given a bonus in stock options for this past year's work. You are to
receive 200 shares of the company's stock, which is valued today at $16.38 per share. What is the value of options you are receiving?
The value of the share options received is $3,276.
What is a share option?A share option is a right that an employer gives to an employee to purchase some shares at a fixed price in the future.
The value of the share options that are received is determined by the number of shares and the prevailing share price at the time when the share options are granted.
Thus, the value of the share options received is $3,276.
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Short term creditors are usually interested in evaluating
Answer:
Short-term creditors are most interested in liquidity ratios because they provide the best information on the cash flow of a company and measure its ability to pay its current liabilities or the money a company owes to its creditors.
Mary Rhodes, operations manager at Northeast Furniture, received the following demand forecast:
Jan: 1,000
Feb. 1,200
March 1,400
April 1,800
May 1,800
June 1,600
Assume stockout costs for lost sales of $100 per unit, inventory carrying costs of $25 per unit per month and zero beginning and ending inventory. Evaluate the following two plans on an incremental cost basis:
Alternative 1: Produce at a steady rate, equal to minimum requirements, of 1,000 units per month. Subcontract enough additional units, at $60 per unit premium cost, to avoid lost sales.
a. What is the cost of alternative 1?
b. What is the total holding (inventory) cost?
Alternative 2: Vary the workforce to match monthly demand. The current workforce most recently produced 1,300 units last month. The cost of hiring workers is $3,00 per 100 units of capacity increase, while firing is $6,000 per 100 units of capacity decrease.
a. What is the total cost of alternative 2?
b. How many units are produced via regular time production?
c. Which alternative has lower incremental cost?
Answer: see attachment
Explanation:
Incremental cost is the total cost that is incurred by a company or an organization because of an additional unit of the good that's produced.
To calculate incremental cost, the additional expenses that are involved during production process, will be taken into consideration.
Check attachment for the solution.
Your friend just got an unexpected $1,000 tax refund. She plans to put $800 towards paying off credit card debt, $100 toward her student loans, and use the remaining $100 to purchase a new grill for her deck. What's your friend's marginal propensity to consume (MPC)
Based on the expenses that she spent on and the amount received, your friends Marginal Propensity to Consume is 0.1 or 10%.
What is her MPC?Marginal propensity to consume can be found by the formula:
= Increase in consumption / Increase in income
The only consumption will be the $100 spent on the new grill.
MPC is:
= 100 / 1,000
= 10%
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Consider the following situations for Shocker:
a. On November 28, 2021, Shocker receives a $4,200 payment from a customer for services to be rendered evenly over the next three months. Deferred Revenue is credited.
b. On December 1, 2021, the company pays a local radio station $2,640 for 30 radio ads that were to be aired, 10 per month, throughout December, January, and February. Prepaid Advertising is debited.
c. Employee salaries for the month of December totaling $7,800 will be paid on January 7, 2022.
d. On August 31, 2021, Shocker borrows $68,000 from a local bank. A note is signed with principal and 6% interest to be paid on August 31, 2022.
Required:
Record the necessary adjusting entries for Shocker at December 31, 2018. No adjusting entries were made during the year.
Answer:
(a)Dr Unearned Revenue $1,400
Cr Service Revenue $1,400
(b)Dr Advertising Expense $880
Cr Prepaid Advertising $880
(c)Dr Salaries Expense $7,800
Cr Salaries Payable $7,800
(d)Dr Interest Expense $1,360
Interest Payable $1,360
Explanation:
Preparation of Journal entries
(a) Based on the information given we were told that Shocker receives the amount of $4,200 payment from a customer for the services they would rendered over the next 3 months which means that the Journal entry will be:
Dr Unearned Revenue $1,400
($4,200 x 1/3)
Cr Service Revenue $1,400
(b) Based on the information given we were told that the company pays a local radio station the amount of $2,640 for radio ads throughout three month which are December, January, and Februarywhich means that the Journal entry will be recorded as:
Dr Advertising Expense $880
($2,640 x 1/3)
Cr Prepaid Advertising $880
(c) Based on the information given we were told that the company Employee salaries for the month of December was the amount of $7,800 which will be paid on January 7, 2022 which means that the Journal entry will be:
Dr Salaries Expense $7,800
Cr Salaries Payable $7,800
(d) Based on the information given we were told that Shocker borrows the amount of $68,000 from a local bank which means that the Journal entry will be:
Dr Interest Expense $1,360
($68,000 x 6% x 4/12)
Interest Payable $1,360
Companies sometimes consider stock splits to bring down the price so that the stock attracts more purchases.
Consider the following case:
Tolbotics Inc. currently has 15,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 3 for 1 as described in the animation.
If Tolbotics Inc. declares a 3-for-1 stock split, the price of the company’s stock after the split, assuming that the total value of the firm’s stock remains the same after the split, will be___________ .
Hackworth Hardware Company is one of Robotics leading competitors. Hackworth Hardware Company’s market intelligence research team shares Robotics plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its shareholders. A stock dividend is another way of keeping the stock price from going too high. Hackworth currently has 1,100,000 shares of common stock outstanding.
If the firm pays a 6% stock dividend, how many shares will the firm issue to its existing shareholders?
Answer:
Stock Splits:
1. Tolbotics Inc. currently has 15,000 shares of common stock outstanding. Its management believes that its current stock price of $90 per share is too high. The company is planning to conduct stock splits in the ratio of 3 for 1 as described in the animation.
If Tolbotics Inc. declares a 3-for-1 stock split, the price of the company’s stock after the split, assuming that the total value of the firm’s stock remains the same after the split, will be____$30_______ .
2. Hackworth Hardware Company is one of Robotics leading competitors. Hackworth Hardware Company’s market intelligence research team shares Robotics plans of announcing a stock split, influencing the distribution policy makers. Consequently, executives at Hackworth decide to offer stock dividends to its shareholders. A stock dividend is another way of keeping the stock price from going too high. Hackworth currently has 1,100,000 shares of common stock outstanding.
If the firm pays a 6% stock dividend, how many shares will the firm issue to its existing shareholders?
= 66,000
Explanation:
The 3-for-1 stock split shares offered to stockholders by Tolbotics Inc. will result into a share price of $33 ($99/3). This effectively reduces the stock exchange market price but does not affect its shareholders adversely since they still retain the same value of shareholding in the company. Shareholders may even gain more in capital appreciation if the share price goes up after the split.
Hackworth Hardware Company is offering its shareholders a total of 66,000 additional shares (6% of 1,100,000) in the form of dividends.
Howie’s Carpet World has just received an order for carpets for a new office building. The order is for 4,000 yards of carpet 4-feet wide, 20,000 yards of carpet 9-feet wide, and 9,000 yards of carpet 12-feet wide. Howie can buy 2 kinds of carpet rolls from his supplier, namely 14 feet wide carpet and 18 feet wide; and Howie will cut the carpet for the new office building order from whatever carpet he buys from his supplier. The 14 feet wide carpeting comes in rolls of 100-yards long and costs $1,000 per roll; the 18 feet wide carpeting also comes in rolls of 100-yards long, but it costs $1,400 per roll. Howie needs to determine how many of the two types of carpet rolls to buy from his supplier and how they should be cut in order to minimize his cost of filling the order. Howie will throw away any of the carpet not used after cutting. Refer to Unit 5 Slide 9 for consideration of cutting patterns.
Answer:
the question is missing the part of the cutting patterns required:
4,000 yards of 4 ft wide carpet20,000 yards of 9 ft wide carpet 9,000 yards of 12 ft wide carpet2) in order to obtain the 20,000 yards of 9 ft wide carpet, the company must purchase 10,000 yards of 18 ft wide carpet = (10,000 / 100) x $1,400 = $140,000
1) if you buy 1,000 more yards of 18 ft wide carpet, you will be able to get the 4,000 yards of 4 ft wide = (1,000 / 100) x $1,400 = $14,000.
You could also purchase 1,400 yards of the 12 ft wide carpet (you will also get the 4,000 yards that you need) at the same cost = (1,400 / 100) x $1,000 = $14,000
3) finally you must purchase 9,000 yards of 14 ft wide carpet to get the remaining 9,000 yards of 12 ft wide carpet = (9,000 / 100) x $1,000 = $90,000
total cost = $140,000 + $14,000 + $90,000 = $244,000
In the short run, movement along the SRAS curve____ corresponds to ______ in the unemployment rate, all else being equal.
When in the short run, a movement along the SRAS curve in a left to right manner will correspond to a decrease in unemployment.
Why is this the case?When the SRAS curve shifts from left to right, it means that there is an increase in supply in the economy.
This increase in supply can only be possible if more people are employed to work in industries that produce goods and services. So an increase in supply will correspond to a decrease in unemployment.
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A U.S. business sells milk to consumers in France. Which situation would most likely cause demand for milk to rise in France?
A. A popular French nutrition author claims that milk is bad for people's health.
B. French consumers expect the price of milk to increase in the future.
C.
the French population declines steadily due to years of economic problems.
D. Cheese and other products made from milk become less popular in France
A situation that would most likely cause demand for milk to rise in France is French consumers expect the price of milk to increase in the future.
What causes an increase in the demand for a product?The demand for a product is affected by:
future expectationschange in the price of other goodsChange in the income of consumersWhen it is expected that the price of a product would increase in the future. Consumers would want to buy the product now when it is cheaper so as to save money.
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Answer it is D:
Explanation:
For each of the following separate cases, prepare adjusting entries required of financial statements for the year ended (date of) December 31, 2017.
a. Wages of $6,000 are earned by workers but not paid as of December 31.
b. Depreciation on the company’s equipment for the year is $11,560. The Office Supplies account had a $490 debit balance at the beginning of the year. During the year, $6,444 of office supplies are purchased. A physical count of supplies at December 31 shows $694 of supplies available.
c. The Prepaid Insurance account had a $5,000 balance at the beginning of the year. An analysis of insurance policies shows that $2,400 of unexpired insurance benefits remain at December 31.
d. The company has earned (but not recorded) $1,000 of interest revenue for the year ended December 31. The interest payment will be received 10 days after the year-end on January 10.
e. The company has a bank loan and has incurred (but not recorded) interest expense of $3,500 for the year ended December 31. The company will pay the interest five days after the year-end on January 5.
Answer:
Date: 31 December, 2017
a.
Wages Expense 6000 Dr
Wages Payable 6000 Cr
b.
Depreciation expense 11560 Dr
Accumulated depreciation 11560 Cr
Office supplies expense 6240 Dr
Office supplies 6240 Cr
c.
Insurance expense 2600 Dr
Prepaid Insurance 2600 Cr
d.
Interest Receivable 1000 Dr
Interest Revenue 1000 Cr
e.
Interest expense 3500 Dr
Interest Payable 3500 Cr
Explanation:
a.
The wages expense should be recorded as wages relate to this year. As they are not paid, a liability of wages payable should be credited.
b.
The depreciation expense for the year is recorded and a credit to accumulated depreciation is made.
The office supplies expense should be calculated by taking the office supplies at the start of the year and adding the purchases and deducting the closing inventory.
Supplies expense = 490 + 6444 - 694 = 6240
c.
The prepaid insurance is an asset and the difference between the opening and closing balance of prepaid insurance is the expense for the year that is 5000 - 2400 = 2600
d.
The interest revenue relates to this year and should be recorded as credit to interest revenue and a debit to an asset of interest receivable.
e.
The interest expense relates to this year and should be recorded as interest expense debit and interest payable which is a liability as a credit.
Landscapers often work with which of the following, requiring an academic background in this area?
Answer:
On-the-job training is required to become a landscaping and groundskeeping worker. Landscape architects, however, need a bachelor's or master's degree, and landscape designers are required to have at least an associate's degree to prepare for their careers. Licensing and certification requirements vary by career and state.
Explanation:
There are no formal requirements to be a landscaper, but most employers will expect you to have some horticulture knowledge and experience.
Your financial analyst calculated the following ratios for three companies: Boeing Microsoft PG&E Cash ratio 0.15 0.1 0.1 Current ratio 1.3 2.5 0.8 Debt ratio 0.9 0.4 0.75 Profit margin 5% 28% 6% Evaluate the statement "Boeing is a riskier company than Microsoft and PG&E because of its higher debt ratio." Yes: A higher debt ratio of Boeing than that of PG&E is a sign of short-term illiquidity. Not necessarily: The debt ratios are not directly comparable, since each company is in a different industry. Yes: A higher debt ratio means that the company is less capable of paying interests.
Answer: Not necessarily: The debt ratios are not directly comparable, since each company is in a different industry.
Explanation:
We cannot authoritatively state that even though Boeing has such a high debt rate, that it is a riskier company than either Microsoft or PG&E. This is due to the drawback in ratio analysis of bias if compared across different industries.
Ratio analysis best works when comparing companies in the same industry because their situations will be similar. Comparing across industries can be misleading because different industries operate in different ways. In the Airplane manufacturing business for instance, having a high amount of debt due to having the tangible assets to back it up might be a normal thing.
The debt ratios are therefore not directly comparable because each company is in a different industry.
The income statement of Carla Vista Co. for the month of July shows net income of $4,000 based on Service Revenue $7,750, Salaries and Wages Expense $2,140, Supplies Expense $960, and Utilities Expense $650. In reviewing the statement, you discover the following:_______.
1. Insurance expired during July of $530 was omitted.
2. Supplies expense includes $360 of supplies that are still on hand at July 31.
3. Depreciation on equipment of $180 was omitted.
4. Accrued but unpaid wages at July 31 of $380 were not included.
5. Service performed but unrecorded totaled $800.
Required:a. What effect do the corrections have on the amount reported as total assets on the balance sheet?b. What effect do the corrections have on the amount reported as total liabilities on the balance sheet?
Answer:
a. Assets increase by $450
b. Liabilities increase by $380
Explanation:
a. Effect on Assets
= Supplies omitted + Unrecorded services - omitted insurance - depreciation
= 360 + 800 - 530 - 180
= +$450
b. Effect on Liabilities
Wages are accrued and unpaid. Company owes these wages which makes it a liability.
Effect on liability = +$380
Refer to the information given below:
a, The October 31 cash balance in the general ledger is $842.
b. The October 31 balance shown on the bank statement is $370.
c. Checks issued but not returned with the bank statement were No. 462 for $14 and No. 483 for $45.
d. A deposit made late on October 31 for $450 is included in the general ledger balance but not in the bank statement balance.
e. Returned with the bank statement was a notice that a customer's check for $72 that was deposited on October 25 had been returned because the customer's account was overdrawn.
f. During a review of the checks that were returned with the bank statement, it was noted that the amount of Check No. 471 was $65 but that in the company's records supporting the general ledger balance, the check had been erroneously recorded as a payment of an account payable in the amount of $56.
Required:
Prepare a bank reconciliation as of October 31 from the above information.
Answer: See explanation
Explanation:
The bank reconciliation as of October 31 from the above information has been attached.
After the calculations, we can see that the reconciled balance was $761.
NB: The error of $9 was gotten as:
= $65 - $56
= $9
Other necessary information can be seen from the attachment.
The Polishing Department of Harbin Company has the following production and manufacturing cost data for September. Materials are entered at the beginning of the process.
Production: Beginning inventory 1,500 units that are 100% complete as to materials and 30% complete as to conversion costs; units started during the period are 36,700; ending inventory of 7,500 units 10% complete as to conversion costs.
Manufacturing costs: Beginning inventory costs, comprised of $20,110 of materials and $-1,760 of conversion costs; materials costs added in Polishing during the month, $174,710; labor and overhead applied in Polishing during the month, $127,420 and $258,030, respectively.
(a)
Compute the equivalent units of production for materials and conversion costs for the month of September.
Materials
Conversion Costs
The equivalent units of production
(b)
Compute the unit costs for materials and conversion costs for the month. (Round unit costs to 2 decimal places, e.g. 2.25.)
Materials
Conversion Costs
Unit costs
$ ____________
$ ___________
(c)
Determine the costs to be assigned to the units transferred out and in process.
Transferred out
$ __________
Ending work in process
$ _________
Answer:
a. Materials = 38,200 units and Conversion Costs = 31,200
b. Materials = $5.10 and Conversion Costs = $13.00
c. Transferred out = $55,670 and Ending work in process = $48,000
Explanation:
First calculate the number of physical units completed and transferred to finished goods.
units completed and transferred to finished goods = beginning inventory units + units started during the period - ending inventory units
Therefore,
units completed and transferred to finished goods = 1,500 + 36,700 - 7,500
= 30,700
Calculation of Equivalents Units of Production for Materials and Conversion Costs.
1. Materials
Ending Work In Process Inventory (7,500 × 100%) = 7,500
Completed and Transferred (30,700 × 100%) = 30,700
Equivalents Units of Production for Materials = 38,200
2. Conversion Costs
Ending Work In Process Inventory (7,500 × 10%) = 750
Completed and Transferred (30,700 × 100%) = 30,700
Equivalents Units of Production for Conversion = 31,200
Calculation of Unit costs for materials and conversion costs for the month.
Unit Cost = Total Costs ÷ Total Equivalent Units
1. Materials
Unit Cost = ($20,110 + $174,710) ÷ 38,200
= $5.10
2. Conversion Costs
Unit Cost = ($20,110 + $127,420 + $258,030) ÷ 31,200
= $13.00 (2 decimal places)
Calculation of the costs to be assigned to the units transferred out and in process.
1. Transferred out
Cost = Number of units completed and transferred × total unit cost
= 30,700 × ($5.10 + $13.00)
= $55,670
2. Ending work in process
Cost = Material Cost + Conversion Cost
= (7,500 × $5.10) + (750 × $13.00)
= $48,000
Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period, December 31, 2014: Account Titles Debit Credit Cash $ 42,000 Accounts receivable 11,600 Supplies 900 Prepaid insurance 800 Service trucks 19,000 Accumulated depreciation $ 9,200 Other assets 8,300 Accounts payable 3,000 Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31) 17,000 Common stock (5,000 shares outstanding) 400 Additional paid-in capital 19,000 Retained earnings 6,000 Service revenue 61,360 Remaining expenses (not detailed; excludes income tax) 33,360 Income tax expense Totals $ 115,960 $ 115,960 Data not yet recorded at December 31, 2014, included: a. The supplies count on December 31, 2014, reflected $300 remaining supplies on hand to be used in 2015. b. Insurance expired during 2014, $800. c. Depreciation expense for 2014, $3,700. d. Wages earned by employees not yet paid on December 31, 2014, $640. e. Income tax expense, $5,540.
Answer:
Net income = $16,720
Total assets = Total Stockholders Equity and Liabilities = $68,300
Explanation:
Note: This question is not complete and the data in it are merged together. The complete question with the sorted data is therefore presented before answering the question. See the attached pdf file for the complete question with the sorted data.
Also note: See the attached excel file for the income statement and the classified balance sheet.
A classified balance sheet can be described as a financial statement that show different classifications such intangible assets, fixed assets, current assets, shareholders equity, current liabilities, and long-term liabilities.
Which of the following government agencies regulates financial markets?
a. OSHA
b. The IRS
c. The FAA
d. The OTS
(sorry if it’s wrong category)
Answer:
THE OTS
Explanation:
they regulate markets that are financial
Answer:
The right answer is the D. The OTS
Explanation:
I have put the FAA but it was wrong so they show me the right answer which was d. The OTS.
Hope this was helpful!
Gitano Products operates a job-order costing system and applies overhead cost tojobs on the basis of direct materialsused in production(noton the basis of raw materialspurchased). Its predetermined overhead rate was based on a cost formula that estimated$119,600 of manufacturing overhead for an estimated allocation base of $92,000 directmaterial dollars to be used in production. The company has provided the following data forthe just completed year:________.
Purchase of raw materials $140,000
Direct labor cost $89,000
Manufacturing overhead costs
Indirect labor $106,300
Property taxes $8,000
Depreciation of equipment $18,000
Maintenance $15,000
Insurance $8,200
Rent. building $39,000
Beginning Ending
Raw Materials $24,000 $17,000
Work in Process $48,000 $35,000
Finished Goods $69,000 $57,000
Required:
1. Compute the predetermined overhead rate for the year.
PREDETERMINED OVERHEAD RATE _____%2. Compute the amount of underapplied or overapplied overhead for the year._____ overhead _____
Answer:
$3,400
Explanation:
The computation of predetermined overhead rate for the year is shown below:-
Predetermined Overhead Rate = Estimated Manufacturing Overhead ÷ Estimated Allocation Base × 100
= $119,600 ÷ $92,000 × 100
= 130%
2. The computation of the amount of underapplied or overapplied overhead for the year is shown below:-
Overhead Applied = (Opening Value of Direct Material + Purchase of Direct Material - Closing Value of Direct Material) × Predetermined Overhead Rate
= ($24,000 + $140,000 - $17,000) × 130%
= $147,000 × 130%
= $191,100
Overhead Incurred = $106,300 + $8,000 + $18,000 + $15,000 + $8,200 + $39,000
= $194,500
Underapplied overhead = $194,500 - $191,100
= $3,400
Water Sports Company budgets overhead cost of $840,000 for the year. The company manufactures two types of boats: Pontoons and Speedboats. Budgeted direct labor hours per unit are 16 for the Pontoon model and 24 for the Speedboat model. The company budgets production of 200 units of the Pontoon model and 200 units of the Speedboat model for the year.
Required:
Compute overhead cost per unit for each model using the plantwide overhead rate. Actual direct labor hours per unit are 16 for the Pontoon model and 24 for the Speedboat model.
a. Pontoon: $2,520 per unit; Speedboat: $1,680 per unit.
b. Pontoon: $1,680 per unit; Speedboat: $2,520 per unit.
c. Pontoon: $2,800 per unit; Speedboat: $4,200 per unit.
d. Pontoon: $4,200 per unit; Speedboat: $2,800 per unit.
e. Pontoon: $4,200 per unit; Speedboat: $6,300 per unit.
The overhead cost per unit for each model is b. Pontoon: $1,680 per unit; Speedboat: $2,520 per unit.
Overhead cost per unitsTotal budgeted direct labor hours for Pontoon=(200 units×16 hours/unit)
Total budgeted direct labor hours for Pontoon=3200 hours
Total budgeted direct labor hours for Speedboat=(200 units×24 hours/unit)
Total budgeted direct labor hours for Speedboat=4,800
Total budgeted direct labor hours=3200+4800
Total budgeted direct labor hours=8,000
Overhead cost per units
Pontoon=840,000/8000×16
Pontoon=1,680 per units
Speedboat=840,000/8000×24
Speedboat=2,520 per units
Inconclusion the overhead cost per unit for each model is b. Pontoon: $1,680 per unit; Speedboat: $2,520 per unit.
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Fire Out Company manufactures its product, Vitadrink, through two manufacturing processes:
Mixing and Packaging.
All materials are entered at the beginning of each process. On October 1, 2020, inventories consisted of Raw Materials $26,000, Work in ProcessâMixing $0, Work in ProcessâPackaging $251,200, and Finished Goods $293,400. The beginning inventory for Packaging consisted of 14,900 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 52,700 units were started into production in the Mixing Department and the following transactions were completed.
1. Purchased $300,000 of raw materials on account.
2. Issued raw materials for production: Mixing $210,000 and Packaging $45,000.
3. Incurred labor costs of $258,900.
4. Used factory labor: Mixing $182,500 and Packaging $76,400.
5. Incurred $810,000 of manufacturing overhead on account.
6. Applied manufacturing overhead on the basis of $24 per machine hour. Machine hours were 28,000 in Mixing and 6,000 in Packaging.
7. Transferred 45,000 units from Mixing to Packaging at a cost of $979,000.
8. Transferred 53,000 units from Packaging to Finished Goods at a cost of $1,315,000.
Sold goods costing $1,604,000 for $2,500,000 on account.
.
No. Account Titles and Explanation Debit Credit
1
2
3
4
5
6
7
8
9
Answer:
Entries are given
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.
Account DEBIT CREDIT
1
raw material inventory 300,000
accounts payable 300,000
-
2
work in process inventory- Mixing 210,000 -
work in process inventory- Packaging 45,000
raw material inventory 255,000
-
3
Factory payroll 258,900 -
Wages payable 258,900
-
4
work in process Labor- Mixing 182,500 -
work in process Labor Packaging 76,400
Factory payroll 258,900
-
5
Manufacturing overhead 810,000 -
overhead payable 810,000
-
6
work in process Mixing 672,000 -
work in process Packaging 144,000
Manufacturing overhead 816,000
-
7
work in process Labor Packaging 979,000 -
work in process Labor- Mixing 979,000
-
8
Finished goods 1,315,000 -
work in process Labor Packaging 1,315,000
-
9
Accounts receivable 2,500,000 -
Sales 2,500,000
-
Cost of goods sold 1,604,000 -
Finished goods 1,604,000
The entries of No. Account Titles and Explanation Debit Credit of Fire Out Company manufactures its product, Vitadrink is given below:
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.
Account DEBIT CREDIT
1
raw material inventory 300,000
accounts payable 300,000
2
work in process inventory- Mixing 210,000 -
work in process inventory- Packaging 45,000
raw material inventory 255,000
3
Factory payroll 258,900 -
Wages payable 258,900
4
work in process Labor- Mixing 182,500 -
work in process Labor Packaging 76,400
Factory payroll 258,900
5
Manufacturing overhead 810,000 -
overhead payable 810000
6
work in process Mixing 672,000 -
work in process Packaging 144,000
Manufacturing overhead 816,000
7
work in process Labor Packaging 979,000 -
work in process Labor- Mixing 979,000
8
Finished goods 1,315,000 -
work in process Labor Packaging 1,315,000
9
Accounts receivable 2,500,000 -
Sales 2,500,000
Cost of goods sold 1,604,000 -
Finished goods 1,604,000
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Sales for the year are $100,000. Expenses total $70,000 and there is a distribution of profit to owners of $5,000. Based on this list we know that
X: Profit for the year is $25,000
Y: Equity has increased by $25,000
A. X
B. Y
C. both X and Y
D. neither X nor Y
Answer:
B. Y
Explanation:
Equity is the shareholder's wealth in a business. It is the remainder of subtracting liabilities from assets.
Equity is made up of the shareholder contribution plus retained earnings.
For the current financial year, the retained earnings will be calculated by subtracting dividends and expenses for the revenue.
Retained earning = $100,000 - $70,000 -$5,000
Retained earnings= $25,000
Equity has increased by $25,000
On September 3, 2003, the finance ministers of G7 industrialized countries endorsed "flexibility" in exchange rates, a code word widely regarded as an encouragement for China and Japan to stop managing their currencies. Both countries have been actively intervening in the foreign exchange market to weaken their currencies against the dollar and thereby improve their exports. China and Japan had been seen buying billions of dollars in U.S. Treasury bonds. The G7 statement prompted massive selling of the U.S. dollar and dollar assets. The dollar fell 2% against yen, the biggest one-day drop that year, and U.S. Treasury bonds saw a steep decline in value as well.
Required:
How did China managed to weaken its currency against dollar?
Answer:
China is a mixed economy where private firms are co-owned by the government, and they are highly regulated. Also, only private firms that are friendly with government officials prosper. E.g. back in March, one of China's richest businessman criticized the government and its handling of the current health crisis, and he was thrown into jail and sentenced to 18 years in prison.
This results in the Chinese government having a lot of power to guide how Chinese corporations work. The Chinese government artificially undervalued the yuan by purchasing foreign securities (not only US bonds, but also European bonds). Even though China has a trade surplus, its currency didn't appreciate like a normal currency would. This allows Chinese products to be cheaper and more competitive.
Even when the Chinese government said that they (as the government) would stop purchasing foreign securities, they ordered Chinese companies to do so. At the end the result was the same, China balances its currency through purchases of foreign securities either directly or indirectly (through companies co-owned by the government).
ARE YOU WILLING TO WORK LONG HOURS WITH LITTLE IMMEDIATE COMPENSATION?
The sale of a substantial part of the materials, supplies, merchandise, equipment, or other inventory of an enterprise that is NOT in the ordinary course of business, is known as a : ________
A Bulk Transfer of Goods is the sale of a substantial part of an enterprise that is not in the ordinary course of business,
What is a Bulk Transfer of Goods?A bulk transfer or sale refers to an arrangement whereby a business sells all or nearly all of its inventory to a single buyer and such a sale is not part of the ordinary course of business.
Hence, it is the sale of a substantial part of an enterprise that is not in the ordinary course of business,
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The following transactions occurred during December 31, 2021, for the Falwell Company.
A three-year fire insurance policy was purchased on July 1, 2021, for $9,000. The company debited insurance expense for the entire amount. Depreciation on equipment totaled $10,000 for the year. Employee salaries of $12,000 for the month of December will be paid in early January 2022. On November 1, 2021, the company borrowed $100,000 from a bank. The note requires principal and interest at 12% to be paid on April 30, 2022. On December 1, 2021, the company received $3,300 in cash from another company that is renting office space in Falwellâs building. The payment, representing rent for December, January, and February was credited to deferred rent revenue. On December 1, 2021, the company received $3,300 in cash from another company that is renting office space in Falwellâs building. The payment, representing rent for December, January, and February was credited to rent revenue rather than deferred rent revenue for $3,300 on December 1, 2021.
Required:
Prepare the necessary adjusting entries for each of the above situations.
Answer and Explanation:
The journal entries are shown below:
1. Prepaid insurance ($9,000*30/36) $7,500
To Insurance expense $7,500
(Being prepaid insurance is recorded)
2. Depreciation expense $10,000
To Accumulated depreciation-Equipment $10,000
(Being the depreciation expense is recorded)
3. Salaries expense $12,000
To Salaries payable $12,000
(Being the salaries expense is recorded)
4. Interest expense ($100,000 × 12% × 2 ÷ 12) $2,000
To Interest payable $2,000
(Being the interest expense is recorded)
5. Deferred rent revenue ($3,300 ÷ 3) $1,100
To Rent revenue $1,100
(Being the deferred rent revenue is recorded)
6. Rent revenue $2,200
To Deferred rent revenue $2,200
(Being the rent revenue is recorded)