Answer:
It is very difficult to record T accounts since there is not a lot of room here and things get complicated very easily. So I used an excel spreadsheet to post the accounts on an accounting equation format.
Assets increase when they are debited and they decrease when they are credited. The opposite happens to liabilities and equity, they increase when they are credited and decrease when they are debited. Service revenue is credited, while all expenses are debited.
The reason why the drawings account has a negative balance is that even though it is an equity account, it has a debit balance since it decreases capital.
In order for the equation to balance, you have to close the accounts, but that was not a requirement of the question.
What liabilities does the business have after all transactions have been recorded?
the only liability account is accounts payable with a credit balance of $24,700
For each of the following incidents, determine whether the individuals will be motivated to behave as desired.
Frank Edwards is head basketball coach at a small regional state university, a campus of the state’s main university system. He has just had a visit with Walter Johnson, a local high school athlete who is clearly one of the state’s blue chip basketball prospects. Frank desperately needs a player of Walter’s potential to turn his mediocre team around, but he realizes that it won’t be easy to sign him. He is confident that he made it clear to Walter that there is a scholarship available for Walter if he wants it. He also knows that Walter needs a scholarship to be able to go to college. However, an article in the Sunday Sports section reports that two of the major state university coaches (larger schools upstate, with nationally known basketball programs) also intend to actively recruit Walter. Coach Edwards should take which of the following actions?
A. Send Walter a written and notarized offer of the scholarship.B. Write Walter's parents, stressing that the scholarship will cover all of his tuition, room and board, and book expenses.C. Write a letter to Walter stressing to him the value of a college education.D. Talk to Walter again, stressing the likelihood that he would make the starting five in his freshman year.E. Do nothing. Walter will probably sign with him anyway.
Answer:
C). Write a letter to Walter stressing to him the value of a college education.
Explanation:
The most ethical and moral action that Coach Edward should take in the given situation would be to 'write a letter to Walter stressing to him the value/significance of college education.' It would not only educate Walter regarding the crucial role that college education plays in defining the success and personality of an individual but also emphasize the benefits of joining the college team which would be vital to his overall career and give a direction to his skills. Thus, this would serve Coach Edwards' purpose ethically by making Walter understand the idea logically and convince him. Therefore, option C is the correct answer.
In a Las Vegas casino, an employee discovered a flaw in the accounting system. The accounts payable clerk discovered that he was able to change the names of vendors in the computer system to his name. As a result, the employee could create false invoices and then cut a check for the false invoice. The name on the check would be changed to the name of the employee. After the check was printed, the name in the system could then be changed back to the appropriate vendor. The check register would show only the name of the vendor. The fraudulent employee had authorization to sign checks under $1,000. By writing small checks, the employee was able to defraud the company of $10,000. This fraud was caught by accident then the employee of another department was looking through the vendor list on her computer after the fraudulent employee had changed the vendor name to his name. A few entries later, the vendor name changed again. She wondered how this could occur and asked her supervisor. Soon after, the fraudulent employee was caught.
1. What kind of fraud is being committed?2. What percent of frauds are of this type?3. How could this fraud have been prevented?
Answer:
- This type of fraud is check tampering
- It amounts to 20.1% of fraud cases in small businesses, and 8.4% of fraud in large businesses
- This type of fraud can be prevented by rotating employees that handle check issuance to vendors, review of budget versus actual expenditure, monitoring of audit trail to see if beneficiary was changed, daily statement download for reconciliation, and restriction of functions for example a employee that issues checks should not also reconcile bank statement.
Explanation:
Check tampering is a very common fraud that involves changing the beneficiary of a valid check so that funds can be diverted.
In the given scenario the accounts payable clerk was able to change checks to his name in order to divert $10,000. This was only discovered by chance when an employee noticed the change in name.
Various internal control measures can be taken to prevent this and they are listed above
I am not a very adventurous person on the job.
The adjective in your statement is "adventurous." It depicts the sort of individual you are, showing that you are not leaned to face challenges or search out new encounters in your work.
A Adjectives is a word that depicts or changes a thing or pronoun. It gives extra data about the thing or pronoun by giving insights regarding its quality, size, shape, variety, and so forth. Modifiers can be utilized to improve depictions and give more clear and explicit implications.
Adjectives are utilized to give more data about things or pronouns in a sentence. Generally, descriptive words assume a vital part in adding profundity, explicitness, and subtlety to our language, permitting us to communicate an extensive variety of data about our general surroundings.
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Your question is incomplete, probably the complete question is-
I am not a very adventurous person on the job. What is the adjective here?
A local taxi company advertises being able to make cabs available to riders within 5 minutes. They have recruited several cab drivers to ensure that they meet this promise. Which dimension of the customer utility function they are appealing to
Answer:
The correct answer is:
Timing
Explanation:
The utility function measures the level of satisfaction or the welfare of a consumer, as a function of the consumption of real goods or services. The dimensions of consumer utility function include; Fit, Timing, Location, performance, and price.
Fit: This has to do with the design of a product, satisfying a context-specific problem. That is the product "fits" the need of the consumer
Timing: This covers the length of time between when the consumer places an order to when the order arrives. A short timing is satisfying to the consumer. In this example, the timing of 5 minutes or comparatively ideal for cabs being available to riders.
Location: The location entails the extent of coverage within a country or region that the product can be accessed. Particularly in rural settings.
Performance: performance has to do with the efficiency of the product/service in the process of it being used
Price: price is the amount at which the product is made available to the consumers.
A project has annual depreciation of $25,500, costs of $101,900, and sales of $150,500. The applicable tax rate is 34 percent. What is the operating cash flow
Answer:
$48,600
Explanation:
Operating Cash flow is the cash generated from operating/trading activities of a firm. It is very important to include only the cash transactions and ignore any non -cash items.
Thus,
Operating Cash flow = $150,500 - $101,900
= $48,600
Evaluating staffing and supervisory needs in the Incident Command Post. Identifying resource shortfalls. Updating planning documents. What NIMS Management Characteristics are you supporting
Answer:
Management by Objectives Incident Action Planning Manageable Span of ControlExplanation:
Following management by objectives, the general staff chiefs must begin developing strategies based upon the objectives set by the command.
Following incident action planning, the general staff chiefs should update planning documents that include resource and staffing needs.
Following manageable span of control, the general staff chiefs must evaluate staffing needs and make sure that no supervisor has to many subordinates.
i dont have to pay for this right?
Answer:
no
Explanation:
A commodity’s demand causes its price to go up.
True
False
Answer:
the answer is false
Explanation:
can you receive interest on bonds
Answer:
Treasury bonds pay a fixed interest rate on a semi-annual basis. This interest is exempt from state and local taxes. But it's subject to federal income tax, according to TreasuryDirect. ... They earn interest until maturity and the owner is also paid a par amount, or the principal, when the Treasury bond matures.May 28, 2020
A 50-kilowatt gas turbine has an investment cost of $40,000. It costs another $14,000 for shipping, insurance, site preparation, fuel lines, and fuel storage tanks. The operation and maintenance expense for this turbine is $450 per year. Additionally, the hourly fuel expense for running the turbine is $7.50 per hour, and the turbine is expected to operate 3,000 hours each year. The cost of dismantling and disposing of the turbine at the end of its 8-year life is $8,000.
Required:
a. If the MARR is 15% per year, what is the annual equivalent life-cycle cost of the gas turbine?
b. What percent of annual life-cycle cost is related to fuel?
Answer:
The annual equivalent life-cycle cost (AW) of gas turbine = -$35,569.8
The percentage fuel cost = 63.25%
Explanation:
From the given information:
Let's start with the initial investment cost, which can be expressed by using the formula:
Initial investment cost = Investment cost of turbine + cost including shipping, insurance, site preparation, fuel lines, and fuel storage tanks.)
Initial investment cost = $40,000 + $14000
Initial investment cost = $54000
However, The annual fuel expense = hourly fuel expense for running turbine × total number of operating hour per year
The annual fuel expense = $7.50 × 3000
The annual fuel expense = $22,500
Therefore, the total operating cost per year = operating & maintenance cost per year + fuel expenses per year
the total operating cost per year = $(450 + 22500)
the total operating cost per year = $22,950
If the minimum acceptable rate of return MARR is 15%, then the number of years is 8 years
Therefore, the annual equivalent life-cycle cost (AC) of the gas turbine can be computed as follows:
AC(15%) = -54000 (A/P, 15%, 8) - $22950-$8000(A/F,15%,8)
where;
(A/P,15%,8) = annual worth factor of a present worth
(A/F,15%,8) = annual worth factor of future worth for 8 years and 15% interest rate.
If we use the discrete compounding table when i = 15%;
Value of (A/P,15%,8) = 0.229
Value of (A/F,15%,8) = 0.0729
∴
AC(15%) = -$54,000(0.2229) - $22,950 -$8000(0.0729)
AC(15%) = -$12,036.6 -$22950 -$583.2
AC(15%) = -$35,569.8
Therefore, the annual equivalent life-cycle cost (AW) of gas turbine = -$35,569.8
b.
The percentage of the annual life-cycle cost related to the fuel can be calculated by using the formula :
[tex]\mathbf{\% \ fuel \ cost = \dfrac{fuel \ cost \ per \ year}{total \ annual \ life \ cycle \ cost }\times 100\%}[/tex]
Replacing our values from above, we have:
[tex]\mathbf{\% \ fuel \ cost = \dfrac{\$22500}{\$35,569.8}\times 100\%}[/tex]
[tex]\mathbf{\% \ fuel \ cost = 0.6325\times 100\%}[/tex]
∴
The percentage fuel cost = 63.25%
Based on the given information, the annual equivalent life-cycle cost of the gas turbine is "$35,569.80," while the percent of the annual life-cycle cost is related to fuel is "65.87%."
This is based on the calculation below:
Given that: Initial investment cost => Investment cost of turbine + cost including shipping, insurance, site preparation, fuel lines, and fuel storage tanks.
Hence, we have the following:
Initial investment cost = $40,000 + $14,000;
=> Initial investment cost = $54,000.
On the other hand, The annual fuel expense = hourly fuel expense for running turbine × total number of operating hour per year;
Thus, we have the following:
The annual fuel expense = $7.50 × 3,000;
The annual fuel expense = $22,500.
Also, since, the total operating cost per year = operating & maintenance cost per year + fuel expenses per year;
We have the following:
the total operating cost per year = $(450 + 22,500);
the total operating cost per year = $22,950.
Therefore, given that the minimum acceptable rate of return MARR is 15%, then the number of years is 8 years.
Then, the annual equivalent life-cycle cost (AC) of the gas turbine is measured as:
AC (15%) = -54,000 (A/P, 15%, 8) - $22,950 - $8,000 (A/F,15%,8);
Here, we have the following details;
(A/P,15%,8) = annual worth factor of a present worth;
(A/F,15%,8) = annual worth factor of future worth for 8 years and 15% interest rate.
This, given that we use the discrete compounding table when i = 15%;
We have the following:
Value of (A/P,15%,8) = 0.229;
Value of (A/F,15%,8) = 0.0729.
AC (15%) = -$54,000 (0.2229) - $22,950 -$8,000 (0.0729);
AC(15%) = -$12,036.60 -$22,950 -$583.20;
AC(15%) = -$35,569.80.
Hence, the annual equivalent life-cycle cost (AW) of gas turbine = $35,569.80.
Similarly, the percent of the annual life-cycle cost is related to fuel is measured as = ($35,569.8 ÷ $54,000) × 100
=> 65.87%.
Hence, in this case, it is concluded that the lifecycle cost is essential when measuring the productivity of a project.
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Suppose you are the agent for a baseball pitcher. Suppose he is offered the following contract by the New York Yankees: a signing bonus of $3,000,000 (to be received immediately), a first year’s salary of $6,000,000 (to be received one year from today), a second year’s salary of $7,000,000 (to be received two years from today), and a third year’s salary of $8,000,000 (to be received three years from today). Suppose he is offered the following contracts by the San Francisco Giants: a signing bonus of $6,000,000, a first year’s salary of $5,500,000, a second year’s salary of $6,000,000, and a third year’s salary of $6,000,000.
If you believe the interest rate is 10%, which offer would you advise the pitcher to accept?
Would your advice change if you believed the interest rate were 5%?
Answer:
Results are below.
Explanation:
Giving the following information:
New York Yankees:
Signing bonus= $3,000,000
Cf1= $6,000,000
Cf2= $7,000,000
Cf3= $8,000,000
San Francisco Giants:
Signing bonus= $6,000,000
Cf1= $5,500,000
Cf2= $6,000,000
Cf3= $6,000,000
The best option is the one with the higher Present Value.
To calculate the present value, we need to use the following formula on each cash flow:
PV= Cf/(1+i)^n
a) New York Yankees:
Cf0=3,000,000
Cf1= 6,000,000/1.1= 5,454,545.45
Cf2= 7,000,000/1.1^2= 5,785,123.97
Cf3= 8,000,000/1.1^3= 6,010,518.41
Total PV= $20,250,187.83
San Francisco Giants:
Cf0= 6,000,000
Cf1= 5,500,000/1.1= 5,000,000
Cf2= 6,000,000/1.1^2= 4,958,677.69
Cf3= 6,000,000/1.1^3= 4,507,888.81
Total PV= $20,466,566.5
At an interest rate of 10%, the contract of San Francisco Giants is the more profitable.
b) i= 5%
New York Yankees:
Cf0=3,000,000
Cf1= 6,000,000/1.05= 5,714,285.71
Cf2= 7,000,000/1.05^2= 6,349,206.35
Cf3= 8,000,000/1.05^3= 6,910,700.79
Total PV= $21,974,192.85
San Francisco Giants:
Cf0= 6,000,000
Cf1= 5,500,000/1.05= 5,238,095.24
Cf2= 6,000,000/1.05^2= 5,442,176.87
Cf3= 6,000,000/1.05^3= 5,183,025.59
Total PV= $21,863,297.7
At an interest rate of 5%, the contract of New York Yankees is the more profitable.
Your father is 50 years old and will retire in 10 years. He expects to live for 25 years after he retires until he is 85. He wants a fixed retirement income that has the same purchasing power at the time he retires as $45,000 has today. (The real value of his retirement income will decline annually after he retires.) His retirement income will begin the day he retires, 10 years from today, at which time he will receive 24 additional annual payments. Annual inflation is expected to be 5.5%. He currently has $100,000 saved, and he expects to earn 9% annually on his savings. How much must he save during each of the next 10 years (end-of-year deposits) to meet his retirement goal?
Answer:
Explanation:.
Task C has two immediate predecessors, Tasks A and B. Task C also has two immediate followers, Tasks D and E. Task A has an early finish time of 3 days, and Task B has an early finish time of 5 days. Task D has a late start time of 10 days and Task E has a late start time of 8 days. Task C is 2 days long. What is the early finish time of Task C
Answer:
7 days
Explanation:
Calculation for the early finish time of Task C
First step is to find the Early Start of task C
Using this formula
Early Start of task C = MAX (Early Finish of task A, Early Finish of task B)
Let plug in the formula
Early Start of task C= MAX(3,5)
Early Start of task C = 5
Now let calculate the Early Finish time of Task C
Using this formula
Earliest Finish = Earliest Start + Activity Duration
Let plug in the formula
Earliest Finish of task C = 5 + 2
Earliest Finish of task C = 7 days
Therefore the early finish time of Task C will be 7 days
The early finish time of task C is the sum of the early start time and the activity duration of the task. Hence, the early finish time of task C is 7 days.
Given the Parameters :
Activity time of task C = 2 days Early finish, Task A = 3 days Early finish, Task B = 5 daysThe early finish time of task C :
Early start time possible + Activity time of task C
Maximum value of the finish time of the preceeding task :
Early start time of task C = maximum(3, 5)
Early start time of task C = 5 days
Early finish time of C = 5 days + Activity time
Early finish time of task C = 5 days + 2 days = 7 days
Therefore, the early finish time of task C is 7 days
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1
Type the correct answer in the box. Spell all words correctly.
What happens to your tax liability with proper financial planning?
You can
your tax liability through proper financial planning.
Answer: minimize
Explanation:
Pix Company has the following production data for March: no beginning work in process, units started and completed 30,500, and ending work in process 5,200 units that are 100% complete for materials and 40% complete for conversion costs. Pix uses the FIFO method to compute equivalent units. If unit materials cost is $4 and unit conversion cost is $12. The total costs to be assigned are $533,760, prepare the cost section of the production cost report for Pix Company using the FIFO approach.
Answer:
Summary of costs to be accounted for
Costs to be accounted for: Materials Conversion Total
Beginning WIP 0 0 0
Costs incurred in the period $142,800 $390,960 $533,760
Total costs to be accounted for $142,800 $390,960 $533,760
Calculation of cost per equivalent unit
Materials Conversion Total
Total costs to be accounted for $142,800 $390,960 $533,760
Total equivalent units 35,700 32,580
Cost per equivalent unit $4 $12 $16
Cost allocation
Materials Conversion Total
Units finished and transferred $122,000 $366,000 $488,000
Ending WIP $20,800 $24,960 $45,760
Total costs to be accounted for $142,800 $390,960 $533,760
Explanation:
beginning WIP 0 units
units started and completed 30,500
ending WIP 5,200
100% complete for materials
40% complete for conversion costs (2,080 EU)
total EU:
materials 35,700
conversion 32,580
total costs:
materials 35,700 x $4 = $142,800
conversion 32,580 x $12 = $390,960
total = $533,760
Materials and manufacturing labor variances, standard costsDunn, Inc., is a privately held furniture manufacturer. For August 2014, Dunn had the following standards for one of its products, a wicker chair:The following data were compiled regarding actual performance: actual output units (chairs) produced, 2,000; square yards of input purchased and used, 3,700; price per square yard, $5.10; direct manufacturing labor costs, $8,820; actual hours of input, 900; labor price per hour, $9.80.Required:1. Show computations of price and efficiency variances for direct materials and direct manufacturing labor. Give a plausible explanation of why each variance occurred.2. Suppose 6,000 square yards of materials were purchased (at $5.10 per square yard), even though only 3,700 square yards were used. Suppose further that variances are identified at their most timely control point; accordingly, direct materials price variances are isolated and traced at the time of purchase to the purchasing department rather than to the production department. Compute the price and efficiency variances under this approach.
Answer:
Please see answers below
Explanation:
1. Material price variance = AQ [ AP - SP]
= [ $5.10 - $5.0] × 3,700
= $370 (U)
Material efficiency variance = [AQ - SQ] × SP
= [3,700 - 2,000*2] × $5.0
= - $1,500 (F)
Flexible variance budget variance = Material price variance + Material efficiency variance
= $370(U) + -$1,500(F)
= -$1,130(F)
Reasons for unfavorable price variance
• When the purchase manager is not too skillful at buying materials needed for production
• When there is an unexpected increase in price of materials
Reasons for favorable efficiency variance
• Usage of high quality material
• Skilled labourers use less materials than budgeted
Direct labor rate variance = [AR - SR] × AH
= [$9.80 - $10] × 900
= -$180 (F)
Direct labor efficiency variance = [AH - SH] × SR
= [900 - 2,000*0.5] × $10
= -$1,000(F)
Flexible budget variance = Direct labor rate variance + Direct labor efficiency variance
= -$180(F) + -$1,000(F)
= -$1,180
Reasons for favorable rate variance
• When there is reduction in labor rate due to recession in an economy
• When more of semi skilled or unskilled labor are employed.
Reasons for favorable efficiency variance
• Usage of high quality raw materials
• When plant facilities are restructured, it means that labor would be more effective.
2. Material price variance = [$AP - SP] × AQ
= [$5.10 - $5.0] × 6,000
= $600(F)
Material efficiency variance = [AQ - SQ] × SP
= [6,000 - 2,000 × 0.5] × $5.0
= $25,000(F)
Read the rejection follow-up letter, and answer the following question. Dear Ms. Gonzalez: Although I am disappointed to hear that you have selected another candidate for the marketing position, I appreciate your prompt and courteous communication. Because I believe I have the organizational and technical skills needed to work in a growing company like EdCo, I hope you will keep my résumé in your active file. My desire to work for your company remains strong. I enjoyed meeting with you, and I appreciate your thorough explanation of your company's growth and future goals. To enhance my qualifications, I have enrolled in a course on Intercultural Communication in the Workplace at ZSU. If you have an opening for a position I am qualified for, please contact me at (345) 435-3532. I will contact you in the next month to discuss employment possibilities. Sincerely, Janet Havasu What is effective about the letter? It uses memo format. It asks specific questions about the position. It refers to specifics in the applicant's interview. When writing a letter turning down a job offer, what guideline should you follow? Include specific reasons why you didn't like the job. Compose your message on personal stationery. Express gratitude and best wishes for the future.
Answer:
Rejection Follow-up Letter
1. What is effective about the letter?
It refers to specifics in the applicant's interview.
2. When writing a letter turning down a job offer, what guideline should you follow?
Express gratitude and best wishes for the future.
Explanation:
Follow-up letters or notes are important in job interviews situations. They are used to express gratitude to the interviewer for the opportunity to interview for the position. Even when a job is not offered to a candidate, it is still good practice to write, expressing gratitude for being informed of the latest development. This creates the chance for the candidate to position herself as a person who possesses employable personality. A candidate, who rejects a job offer, should also express gratitude for the offer. She should not delve into the reasons for not accepting the offer, as this is not considered appropriate.
What precaution should a food handler take when cleaning up vomit
Explanation:
The following are some precautions a food handler should take:
they should ensure that they are adequately protected by wearing hand gloves.ensure that they properly wash the area affected and the equipment used during the cleaning with detergent (eg bleach).the gloves worn during the cleaning operation should also be properly disinfected with detergents.Use demand and supply diagrams (with proper labels and arrows) to show the effect of
a) a reduction in price of DVD Players on market for DVDs.
b) reports that eating chocolate adds to your life expectancy (!!) on the market for chocolate candy bars.
c) an additional $1 a pack sales tax on cigarettes along with a ban on advertising cigarettes.
d) automation in fast food industry on market for unskilled fast food workers.
e) an increase in interest rate on the stock market.
f) flooding in the southeast on market for fruits and vegetables.
Answer:
Please check the attached images for the graphs
Explanation:
a.DVD players and DVDs are complements
Complement goods are goods that can be used together. If the price of one Dvd payers falls, the demand for DVDs would increase. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase
b. As a result of the report, the demand for chocolate candy bars increases. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase
c. As a result of the policies, the demand for cigarettes would fall. This would lead to a leftward shift of the demand curve. Equilibrium price and quantity would fall.
d. As a result of the automation, there would be less need for unskilled labour. As a result, the demand for unskilled labour would fall. This would lead to a leftward shift of the demand curve. Equilibrium price and quantity would fall.
e. increase in interest rate increases the demand for bonds. This would lead to a rightward shift of the demand curve. Equilibrium price and quantity would increase
f. as a result of the flooding, there would be a reduction in supply. The supply curve would shift leftward. Equilibrium price would rise and equilibrium quantity would fall
Allied Merchandisers was organized on May 1. Macy Co. is a major customer (buyer) of Allied (seller) products May 3 Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 5 Allied sold 1,500 of the units in inventory for $14 per unit (invoice total: $21,000) to Macy Co. under credit 7 Macy returns 125 units because they did not fit the customer 's needs (invoice amount: $1,750). Allied restores 8 Macy discovers that 200 units are scuffed but are still of use and, therefore, keeps the units. Allied sends cash per unit (for a total cost of $20,000) terms 2/10, n/60. The goods cost Allied $15,000 the units, which cost $1,250, to its inventory. Macy a credit memorandum for $300 toward the original invoice amount to compensate for the damage allowances, and any cash discount. 15 Allied receives payment from Macy for the amount owed on the May 5 purchase; payment is net of returns, Exercise 5-4 Recording sales, sales returns, and sales allowances LO P2
Prepare journal entries to record the following transactions for Allied assuming it uses a perpetual inventory system and the gross method. (Allied estimates returns using an adjusting entry at each year-end.) View transaction list Journal entry worksheet Allied made its first and only purchase of inventory for the period on May 3 for 2,000 units at a price of $10 cash per unit (for a total cost of $20,000).
Note: Enter debits before credits. Date General Journal Debit Credit May 03
Answer:
May 3 No Journal Entry
May 5
Dr Merchandise Inventory 21,000
Cr Accounts Payable 21,000
May 7
Dr Accounts Payable 1,750
Cr Merchandise Inventory 1,750
May 8
Dr Accounts Payable 300
Cr Merchandise Inventory 800
May 15
Dr Accounts Payable 18,950
Cr Merchandise Inventory 379
Cr Cash 18,571
Explanation:
Preparation of Journal entries
May 3 No Journal Entry
May 5
Dr Merchandise Inventory 21,000
(1,500 * $14 per unit )
Cr Accounts Payable 21,000
(To record the purchase of inventory)
May 7
Dr Accounts Payable 1,750
Cr Merchandise Inventory 1,750
(To record the purchase return)
May 8
Dr Accounts Payable 300
Cr Merchandise Inventory 800
(To record the allowance to Macy)
May 15
Dr Accounts Payable 18,950
($21,000-$1,750-$300)
Cr Merchandise Inventory 379
($21,000-$1,750-$300)*2%
Cr Cash 18,571
($21,000-$1,750-$300)*98%
(To record the payment on account)
there is no important
The auditors of Steffey Ltd., decided to study the cash receipts and disbursements for the month of July of the current year under audit. They obtained the bank reconciliations and the cash journals prepared by the company accountants, which revealed the following: June 30: Bank balance, $355,001; deposits in transit, $86,899; outstanding checks, $42,690; general ledger cash balance, $399,210. July 1: Cash receipts journal, $650,187; cash disbursements journal, $565,397. July 31: Bank balance, $506,100; deposits in transit, $51,240; outstanding checks, $73,340; general ledger cash balance, $484,000. Bank statement record of deposits: $835,846; of payments: $684,747.
Required:Prepare a four-column proof of cash covering the month of July of the current year. Identify problems, if any.
Answer:
Bal. June 30 Receipts Disbursements Bal. July 31
Balance per Bank 355,001 835,846 684,747 506,100
Deposit in Transit
June 30 86,899 -86,899
July 31 51,240 51,240
Outstanding Checks
June 30 42,690 -42,690
July 31 73,340 73,340
Unrecorded Receipts -150,000 -150,000
Unrecorded Disbursement -150,000 -150,000
Balance per Books 399,210 650,187 565,397 484,000
Selected accounts from the ledger of McDaniel Corporation appear below. Indicate the nature of each account. Type Of Account
1. Supplies select a type of account
2. Notes Payable select a type of account
3. Service Revenue select a type of account
4. Dividends select a type of account
5. Accounts Payable select a type of account
6. Salaries and Wages Expense select a type of account
7. Common Stock select a type of account
8. Accounts Receivable select a type of account
9. Equipment select a type of account
10. Notes Receivable select a type of account
Answer:
1. Supplies - ASSETS
Supplies are assets and are debited when they increase.
2. Notes Payable - LIABILITIES.
Current Liabilities owed to creditors.
3. Service Revenue. REVENUE
Revenue that will go to the income statement.
4. Dividends. EQUITY.
These are payments to Shareholders and so are Equity.
5. Accounts Payable. LIABILITY.
These are current liabilities and increase by credit.
6. Salaries and Wages Expense. EXPENSE.
These are expenses that will go to the Income Statement
7. Common Stock. EQUITY.
Common Stock is equity as it represents ownership in the company.
8. Accounts Receivable. ASSET.
Accounts Receivables are current assets and are debited when they increase.
9. Equipment. ASSET.
Equipment are fixed assets and are debited when they increase.
10. Notes Receivable. ASSETS.
Like Receivables these are current assets and are debited when they increase.
To raise operating funds, Coyne Incorporated sold its office building to an insurance company on January 1, 2021, for $1,600,000 and immediately leased the building back. The operating lease is for 12 years of the building's estimated 20-year remaining useful life. The building has a fair value of $1,600,000 and a book value of $1,300,000 (its original cost was $2 million). The rental payments of $200,000 are payable to the insurance company each December 31. The lease has an implicit rate of 9%.
Prepare the appropriate entries for National Distribution Center on January 1, 2018 and December 31, 2018, to record the sale-leaseback and necessary adjustments.
1. Record Sale of Building
2. Record the beginning of the lease for National
3. Record the lease and interest expense for National
4. Record the amortization expense for national
Answer:
1. 1-Jan-21
Dr Cash $1,600,000
Dr Accumulated Depreciation $700,000
Cr Building $2,100,000
Cr Gain On Sale of Building (BF) $200,000
2. 1-Jan-21
Dr Right Of Use Assets ( 200000* PVAF 9% for 12 year) $1,432,000
Cr Lease Payable $1,432, 000
3. 31-Dec-21
Dr Interest Expense $128,880
Dr Lease Payment (BF) $71,120
Cr Cash $200,000
4. 31-Dec-21
Dr Amortization Expenses $71,120
Cr Right Of Use Assets $71,120
Explanation:
1. Preparation of the Journal entry to Record Sale of Building
1-Jan-21
Dr Cash $1,600,000
Dr Accumulated Depreciation $700,000
(2,000,000-1,300,000)
Cr Building $2,100,000
[(1,600,000+700,000)-200,000]
Cr Gain On Sale of Building (BF) $200,000
(To Record Lease)
2. Preparation of the journal entry to Record the beginning of the lease for National
1-Jan-21
Dr Right Of Use Assets ( 200000* PVAF 9% for 12year)
(200,000*7.16) $1,432,000
Cr Lease Payable $1,432, 000
(To Record The Leae Payable)
3. Preparation of the journal entry to Record the lease and interest expense for National
31-Dec-21
Dr Interest Exp
(1,432,000*9%) $128,880
Dr Lease Payment (BF) $71,120
(200,000-128,880)
Cr Cash $200,000
(To Record First Lease payment)
4. Preparation of the journal entry to Record the amortization expense for national
31-Dec-21
Dr Amortization Expenses $71,120
Cr Right Of Use Assets $71,120
(To Record Amortisation Expense)
Statements of financial position on December 31, Year 1, and December 31, Year 2, are presented below.
Dec 31, Dec. 31,
Year 1 Year 2
Assets
Cash 50,000 $ 60,000
Accounts receivable 95,000 89,000
Allowance for uncollectible accounts (4.000) (3.000)
Inventory 120,000 140,000
Property, plant, and equipment 295,000 340,000
Accumulated depreciation (102,000) (119.000)
Total Assets $ 454.000 $507.000
Liabilities and equity:
Trade accounts payable $ 62,000 $ 49,000
Interest payable 8,000 11.000
Bonds payable 200,000 200,000
Unamortized bond discount (15,000) (10,000)
Equity 199,000 257,000
Total liabilities and equity $454,000 $507,000
Additional information for Year 2:
1. Sales revenue was $338,000
2. $3.000 of accounts receivable was written off
Cash collections from customers in Year 2 were 200.00 332
A. $344,000
B. $341,000
C. $335.000
D. $338,000
Answer:
Cash collections from customers in Year 2 were:
B. $341,000
Explanation:
a) Data and Calculations:
Statements of Financial Position on December 31, Year 1 and Year 2:
Year 1 Year 2
Assets
Cash 50,000 $ 60,000
Accounts receivable 95,000 89,000
Allowance for uncollectible accounts (4.000) (3.000)
Inventory 120,000 140,000
Property, plant, and equipment 295,000 340,000
Accumulated depreciation (102,000) (119.000)
Total Assets $ 454.000 $507.000
Liabilities and equity:
Trade accounts payable $ 62,000 $ 49,000
Interest payable 8,000 11.000
Bonds payable 200,000 200,000
Unamortized bond discount (15,000) (10,000)
Equity 199,000 257,000
Total liabilities and equity $454,000 $507,000
Calculation of cash collected from customers in Year 2:
Year 1 Year 2
Accounts receivable 95,000 89,000
Sales revenue 338,000
Uncollectible written off (3,000)
Balance at the end of year 2 (89,000)
Cash collections = $341,000
b) The cash collected from customers is the difference between Beginning accounts receivable, credit sales (sales revenue), written off uncollectible, and the balance at the end of year 2.
Categories of expenditures
Eric and Ginny Gaffney live in Swarthmore, PA. Ginny's father, Kenji, lives in Sweden.
For each of the following transactions that occur in their lives, identify whether it is included in the calculation of U.S. GDP as part of consumption (C), investment (I), government purchases (G), exports (X), or imports (M). Check all that apply.
Transaction C I G X M
Eric's employer upgrades all of its computer systems using U.S.-made parts.
Ginny gets a new refrigerator made in the United States.
Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
Eric buys a bottle of Italian wine.
Answer:
Categories of expenditures
1. I
Eric's employer upgrades all of its computer systems using U.S.-made parts.
2. C
Ginny gets a new refrigerator made in the United States.
3. X
Ginny's father in Sweden orders a bottle of Vermont maple syrup from the producer's website.
4. G
The state of Pennsylvania repaves highway PA 320, which goes through the center of Swarthmore.
5. M
Eric buys a bottle of Italian wine.
Explanation:
The US Gross Domestic Product (GDP) can be measured using the expenditure approach: Y = C + I + G + (X – M). This expenditure approach calculates GDP by evaluating the sum of all final goods and services purchased in the US economy. The components of the US GDP identified as “Y” in equation form include Consumption (C), Investment (I), Government Spending (G), and Net Exports (X – M) with X as exports and M as imports.
When a woman makes a dress and takes it to town to trade it for eggs and milk, it is an example of
Answer:
Barter trade
Explanation:
Barter trade is the exchange of goods and services between parties without using a medium of exchange. In barter trade, the transacting parties exchange goods and services for other goods and services. Barter trade was in practice before money become widely accepted as a medium of exchange.
One challenge with barter trade is the double coincidence of wants. A person with good A and needs product B has to find another person with products B and need good A. In this case, the woman has a dress and need eggs and milk. She has to find someone with eggs and milk is willing to trade them for a dress.
Answer:
subsistence economy
Explanation:
In recent years, a number of cities have passed taxes on carbonated sodas to help reduce obesity and to raise tax revenues. An article in the New York Times observes that: "With that public momentum, a soda tax may be coming to a city near you. Source: Anahad O'Connor and Margot Sanger-Katznov, "As Soda Taxes Gain Wider Acceptance, Your Bottle May Be Next," New York Times, November 26, 2016 If this forecast is correct, is the demand for premium bottled water Ekely to increase or decrease? Briefly explain
A. Decrease, because premium bottled water and carbonated sodas are complements.
B· Increase, because premium bottled water and carbonated sodas are substitutes.
C. Increase, because premium bottled water and carbonated sodas are complements.
D. Decrease, because premium bottled water and carbonated sodas are substitutes.
Answer:
Option B. Increase, because premium bottled water and carbonated sodas are substitutes.
Explanation:
The compliments are used together no apart. The example includes Tennis Balls and Rackets, automobile and petrol, etc. It means that they are compulsory for each other and their existence is dependent on the other. No one will buy tennis rackets if they don't have access to tennis ball.
On the other hand, substitute means that you have an alternative thing which will fulfill you needs. If the weather is hot and you don't have access to cold drinks then you can drink juice or cold water. Substitute fulfills our desires if we can't access the desired items.
Now coming back to question, the tax on carbonated water will increase the price of Soda which means its demand will decrease and people try substitutes. The substitute is either water or juice. If the coffee is 5 times expensive than tea then you will choose tea not coffee. Hence the demand of bottled water and juices will go up.
Hence the option B is correct here.
You predict that interest rates are about to fall. Which bond will give you the highest capital gain
Answer: d. Zero coupon, long maturity
Explanation:
It is generally held that when interest rates decrease in the market, the price of bonds will increase because people will seek bonds as they offer a steady rate of return.
A longer maturity bond will enable you to take advantage of this decrease in interest rates over a longer period because you get to discount the bond at a lower rate over a longer period so it is better.
A zero coupon long maturity bond is the best because when it is discounted at this lower rate, it will bring back a higher price than the rest of the bonds
Recording and Reporting Accrued Liabilities and Deferred Revenue with Discussion of Accrual Versus Cash Accounting
During its first year of operations, Walnut Company completed the following two transactions. The annual accounting period ends December 31.
A. Paid and recorded wages of $140,000 during Year 1; however, at the end of Year 1, three days' wages are unpaid and have not yet been recorded because the weekly payroll will not be paid to employees until January 6 of Year 2. Wages for the three days are $4,900.
B. Collected rent revenue of $4,800 on December 12 of Year 1 for office space that Walnut rented to another company. The rent collected was for 30 days from December 12 of Year 1 to January 10 of Year 2. Record the collection of rent on December 12.
Required:
1. With respect to wages, provide the adjusting entry required at the end of year 1 and the journal entry required on January 6 of year 2.
2. With respect to rent revenue, provide the journal entry for the collection of rent on December 10 and the adjusting entry required on December 31.
Answer:
Walnut Company
1. Adjusting Journal Entry:
December 31, Year 1:
Debit Wages Expense $4,900
Credit Wages Payable $4,900
To accrue unpaid wages at the end of the year.
General Journal Entry:
January 6, Year 2:
Debit Wages Payable $4,900
Credit Cash Account $4,900
To record the payment of accrued wages.
2. General Journal Entry:
December 12, Year 1:
Debit Cash Account $4,800
Credit Deferred Rent Revenue $4,800
To record the receipt of rent in advance.
Adjusting Journal Entry:
December 31, Year 1:
Debit Deferred Rent Revenue $3,200
Credit Rent Revenue $3,200
To adjust for rent revenue earned for 20 days.
Explanation:
The rent revenue of $4,800 according to the question is for 30 days. December 12 to December 31 has 20 days while January 1 to January 10 has 10 days. So the rent revenue for Year 1 is computed as $4,800 * 20/30 = $3,200 while the remaining balance will be for rent revenue in Year 1 ($4,800 * 10/30).