Answer:
1. Cullumber Company borrowed $9,400 by signing a 9%, one-year note on September 1, 2020.
Dr Cash 9,400
Cr Notes payable 9,400
December 31, 2020, adjusting entry
Dr Interest expense 282
Cr Interest payable 282
2. A count of supplies on December 31, 2020, indicates that supplies of $970 are on hand.
December 31, 2020, adjusting entry
Dr Supplies expense 1,230
Cr Supplies 1,230
3. Depreciation on the equipment for 2020 is $2,000.
December 31, 2020, adjusting entry
Dr Depreciation expense 2,000
Cr Accumulated depreciation, equipment 2,000
4. Cullumber Company paid $3,120 for 12 months of insurance coverage on June 1, 2020.
December 31, 2020, adjusting entry
Dr Insurance expense 1,820
Cr Prepaid insurance 1,820
5. On December 1, 2020, Cullumber collected $28,000 for consulting services to be performed from December 1, 2020, through March 31, 2021. The company had performed 1/4 of the services by December 31.
Dr Cash 28,000
Cr unearned revenue 28,000
December 31, 2020, adjusting entry
Dr Unearned revenue 7,000
Cr Service revenue 7,000
6. Cullumber performed consulting services for a client in December 2020. The client will be billed $4,200.
December 31, 2020, adjusting entry
Dr Accounts receivable 4,200
Cr Service revenue 4,200
7. Cullumber Company pays its employees total salaries of $5,600 every Monday for the preceding 5-day week (Monday through Friday). On Monday, December 29, employees were paid for the week ending December 26. All employees worked the last 3 days of 2020.
December 31, 2020, adjusting entry
Dr Wages expense 3,360
Cr Wages payable 3,360
Balance sheet information for Pawn Company and its 90%-owned subsidiary, Sox Corporation, at December 31, 20X1, is summarized as follows:
Pawn Sox
Current assets-net $200,000 $50,000
Property, plant, and equipment-net 1,000,000 600,000
Investment in Sox 558,000
$1,758,000 $650,000
Current liabilities $100,000 $30,000
Capital stock 800,000 400,000
Retained earnings 858,000 220,000
$1,758,000 $650,000
Pawn acquired its interest in S for cash when S's assets and liabilities were smaller than their fair values. The consolidated balance sheet of P and S at December 31, 20X1 will show:
a. non-controlling interest, $65,000
b capital stock, $800,000
c. investment in Sioux, $558,000
d. retained earnings, $1,078,000
Answer:
b. capital stock, $800,000
Explanation:
a. Non-controlling interest, $65,000 is incorrect
Reason: The Non-controlling interest would be 10% of the net assets
Net assets = 650,000 - 30,000 =620,000
The Non-controlling interest would be 10% of the net assets
= $620,000 *10% = $62,000
b. b capital stock, $800,000 is Correct
Company will show the capital stock as $800,000 in the consolidated balance sheet. In consolidated financial statements of any company, the amount will be reflected for the equity that with the outside shareholders, and in other company share purchased are not shown under the capital stock account
c. investment in Sioux, $558,000 is incorrect
Reason: investment in Sioux will not be shown in the consolidated balance sheet and will be eliminated in consolidation
d. Retained earnings, $1,078,000 - Incorrect
Reason: Retained earning as summarized in the Balance sheet carry the value of $1,758,000 + $650,000
Drag each label to the correct location on the table. Match the companies to their business categories.
Answer:
Trading- A wholesaler a department store
service-an auditing firm, a commercial bank, logistics company
Explanation:
Trading businesses wholesalers, department stores, service businesses- auditing firms, commercial banks, and logistics companies.
What are trading businesses?Trading companies are businesses working with different kinds of products which are sold for consumer, business, or government purposes. Trading companies buy a specialized range of products, maintain a stock or a shop, and deliver products to customers.
Different kinds of practical conditions make for many kinds of business. Usually, two kinds of businesses are defined in trading. Importers or wholesalers maintain a stock and deliver products to shops or large end customers. They work in a large geographical area, while their customers, the shops, work in smaller areas and often in just a small neighbourhood. Today "trading company" mainly refers to global B2B traders, highly specialized in one goods category and with a strong logistic organization.
Changes in practical conditions such as faster distribution, computing and modern marketing have led to changes in their business models.
Learn more about trading, here:
https://brainly.com/question/8322028
#SPJ2
Windsor, Inc. uses a perpetual inventory system and reported $548,000 of inventory at the beginning of the month. During the month, the company bought $50,000 of inventory and sold inventory that had cost $35,250. At the end of the month, the physical count of inventory shows $560,000 on hand. How much shrinkage occurred during the month
Answer:
$2750
Explanation:
How much shrinkage occurred during the month can be calculated as Summation of Beginning inventory recorded +Inventory bought during the month-Inventory sold-Physical inventory at end of month
$548,000+$50,000- $35,250- $560,000
=$2750
The amount of shrinkage occurred during the month is $2750
Chelene had been a caregiver for Marta’s elderly mother, Janis, for nine years. Shortly before Janis passed away, Chelene convinced her to buy Chelene’s house for Marta. Janis died before the papers were signed, however. Four months later, Marta used her inheritance to buy Chelene’s house without having it inspected. The house was built in the 1950s, and Chelene said it was in "perfect condition." Nevertheless, one year after the purchase, the basement started leaking. Marta had the paneling removed from the basement walls and discovered that the walls were bowed inward and cracked. Marta then had a civil engineer inspect the basement walls, and he found that the cracks had been caulked and painted over before the paneling was installed. He concluded that the "wall failure" had existed "for at least thirty years" and that the basement walls were "structurally unsound." Using the information presented in the chapter, answer the following questions.
1. Can Marta avoid the contract on the ground that both parties made a mistake about the condition of the house? Explain. 2. Can Marta sue Chelene for fraudulent misrepresentation? Why or why not? What element (or elements) might be lacking?. 3. Now assume that Chelene knew that the basement walls were cracked and bowed and that she hired someone to install paneling before offering to sell the house. Did she have a duty to disclose this defect to Marta? Could a court find that Chelene's silence in this situation constituted misrepresentation? Explain.
Answer and Explanation:
1. Marta cannot avoid the contract on the basis of a mistake of buying the house because she was supposed to inspect the house she was buying
2. Marta cannot sue Chelene for fraudulent misrepresentation because Chelene was not aware of the condition of the house. The elements in fraudulent misrepresentation are lacking : no intention to deceive, no misrepresentation of material facts
3. It would be Chelene's duty to reveal that there is defect in the house and if not the court would see this as misresprentation.
4. There was no undue influence from Chelene in selling the house and so Marta and Janis even she was alive cannot revoke the contract on this basis
The ability to grow and expand capacity as needed without negatively affecting the contribution margin of the business is referred to as _______.
Answer:
Scalability.
Explanation:
The ability to grow and expand capacity as needed without negatively affecting the contribution margin of the business is referred to as scalability.
This ultimately implies that, the business entity or organization is able to successfully provide or meet the unending needs of customers with the provisions of goods and services at all times without negatively impacting them.
Suppose that the ToyCo Shoppe allocates overhead by a traditional production volume-based method using direct labor dollars as the allocation base and one cost pool. Determine the overhead rate per direct labor dollar and the per unit overhead assigned to the strawberry cheesecake. (Round answers to 3 decimal places, e.g. 15.254.) Overhead rate $enter a dollar amount per direct labor dollar rounded to 3 decimal places per direct labor dollar Direct labor cost $enter a dollar amount per unit rounded to 3 decimal places per unit Overhead assigned $enter a dollar amount per unit rounded to 3 decimal places per unit
Question attached
Answer and Explanation:
Overhead rate per direct labor dollar
=$120,400+$77,140+$148,200+$94,500+$180,630 divided by $2,007,000
=$620,870/$2,007,000 = $0.29
Overhead assigned per unit dollar = total overhead assigned divided by annual production
Total overhead assigned = $72,400 x $0.29 = $20996
Overhead assigned per unit dollar =$20996 / 17,700 units = $1.18
When she was in college, Kiersten Walburg wrote a case study on Grokster, an online peer-to-peer (P2P) file-sharing network, and knew that it was shut down because its services were illegal. Several years later, Montgomery Records, Inc., which owned the copyrights to a large number of music recordings, discovered that "tereastarr", a user name associated with Walburg's Internet protocol address, had made twenty-four songs available for distribution on another P2P network. Montgomery notified Walburg that she had been identified as engaging in the unauthorized trading of music. She replaced the hard drive on her computer with a new drive that did not contain the songs in dispute. Is Walburg liable for copyright infringement?
1. Making material available on a P2P network or through the cloud is called Select (file-sharing/ obtaining copyright protection)
2. Is file-sharing always prohibited? Select (Yes/ No)
3. File sharing is prohibited Select (when it is used to download and store copyrighted music/when it is used to listen to music)
4. Under the Digital Millennium Copyright Act, a person who file-shares Select (can/ cannot) use the fair use doctrine to justify the file-sharing.
5. Montgomery notified Walburg that she had been identified as engaging in the unauthorized trading of music. She replaced the hard drive on her computer with a new drive that did not contain the songs in dispute. Walburg Select (can/ cannot) remedy her wrongful conduct by replacing her hard drive?
6. Why or why not? The illegal file sharing Select (was/ was not) already done.
7. Who is an innocent infringer? A person who Select (is/ is not) aware and had no reason to believe that his or her acts constituted copyright infringement.
8. Walburg likely Select (was/ was not) an innocent infringer.
9. Why? She had written a case study on Napster and knew file sharing was Select (right/ wrong)
10. It is Select (likely/ not likely) that Walburg replaced her hard drive to conceal her acts.
11. If that is true, Walburg's act of replacing her hard drive Select (was / was not) ethical.
12. If Walburg did commit an illegal act in sharing copyrighted material without earning a profit, she Select (can/ can not) face criminal sanctions
13. A court likely Select (would/ would not) find Walburg liable for copyright infringement.
Answer:
File-Sharing and Copyrights
1. Making material available on a P2P network or through the cloud is called Select (file-sharing/ obtaining copyright protection) .
2. Is file-sharing always prohibited? Select (Yes/ No) .
3. File sharing is prohibited Select (when it is used to download and store copyrighted music/when it is used to listen to music) .
4. Under the Digital Millennium Copyright Act, a person who file-shares Select (can/ cannot) use the fair use doctrine to justify the file-sharing.
5. Montgomery notified Walburg that she had been identified as engaging in the unauthorized trading of music. She replaced the hard drive on her computer with a new drive that did not contain the songs in dispute. Walburg Select (can/ cannot) remedy her wrongful conduct by replacing her hard drive?
6. Why or why not? The illegal file sharing Select (was/ was not) already done.
7. Who is an innocent infringer? A person who Select (is/ is not) aware and had no reason to believe that his or her acts constituted copyright infringement.
8. Walburg likely Select (was/ was not) an innocent infringer.
9. Why? She had written a case study on Napster and knew file sharing was Select (right/ wrong) .
10. It is Select (likely/ not likely) that Walburg replaced her hard drive to conceal her acts.
11. If that is true, Walburg's act of replacing her hard drive Select (was / was not) ethical.
12. If Walburg did commit an illegal act in sharing copyrighted material without earning a profit, she Select (can/ can not) face criminal sanctions .
13. A court likely Select (would/ would not) find Walburg liable for copyright infringement.
Explanation:
Copyright infringement is like plagiarism. It is the wrongful use of another person's copyrighted works or words, as if they were their own and without obtaining copyright permission from the copyright owner. It is illegal while plagiarism is unethical.
What makes financial professions popular in Nepal?
if im not mistaking it's cause Nepal is rich in resources even if it's economically poor, the resources there are outstanding.
A General Power bond carries a coupon rate of 8%, has 9 years until maturity, and sells at a yield to maturity of 7%. (Assume annual interest payments.) a. What interest payments do bondholders receive each year
Answer:
$80
Explanation:
The computation fo the amount of the interest payment that bondholders received each year is shown below:
= face value of the bond × coupon rate
= $1,000 × 8%
= $80
We assume the face value of the bond be $1,000
We simply applied the above formula
And, the same is to be considered
Which best explains why producers choose to specialize? Check all that apply.
to increase competition
Oto gain a comparative advantage
Oto decrease the amount of goods produced
O to maintain market share
to increase efficiency
Answer:
1. to gain a comparative advantage
2. to increase efficiency
Explanation:
Specialization involves concentrating on producing a few items that once can produce better than others.
Specializing in producing a few preferred goods and services makes a person, company, or country more efficient in resource usage. They consume fewer inputs, such as labor, while making the goods and services. The use of fewer inputs is increasing efficiently, which makes their products cost less compared to competitors.
Specialization makes a company or individual an expert in what they do. Experts make quality products. High quality at competitive prices gains a country or company comparative advantage over the others.
Answer:
Here
Explanation:
On December 31, 2021, Interlink Communications issued 6% stated rate bonds with a face amount of $102 million. The bonds mature on December 31, 2051. Interest is payable annually on each December 31, beginning in 2022. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Determine the price of the bonds on December 31, 2021, assuming that the market rate of interest for similar bonds was 7%. (Round your final answers to nearest whole dollar amount.)
Answer: $89,342,526
Explanation:
Price of the bond will be the present value of the face value plus the present value of the interest payments.
Interest Payments
= 6% * 102,000,000
= $6,120,000
2051 - 2021 = 30 years
Similar interest = 7%
Present value = 6,120,000 * Present value factor of annuity for 30 years, 7%
= 6,120,000 * 12.4090
= $75,943,080
Present value of bond
= 102,000,000/(1 + 7%)^30
= $13,399,445.95
Price of bond = 13,399,445.95 + 75,943,080
=$89,342,526
On December 31, 2012, Mass Construction Inc. signs a contract with the state of Massachusetts Department of Transportation to manufacture a bridge over the Merrimack. Mass Construction anticipates the construction will take three years. The company's accountants provide the following contract details relating to the project:
Contract price $520 million
Estimated construction costs $300 million
Estimated total profit $220 million
During the three-year construction period, Tri-State incurred costs as follows:
2013 $ 30 million
2014 $180 million
2015 $ 90 million
Tri-State uses the percentage of completion method to recognize revenue. Which of the following represent the revenue recognized in 2013, 2014, and 2015?
A. $52 million, $312 million, $156 million
B. $12 million, $72 million, $36 million
C. $140 million, $140 million, $140 million
D. $30 million, $180 million, $90 million
E. None of the above
Answer: A. $52 million, $312 million, $156 million
Explanation:
The percentage of the total cost incurred in a year is the percentage of revenue to recognize in that year.
2013 Revenue;
= (30/ 300) * 520
= $52 million
2014 Revenue;
= (180/300) * 520
= $312 million
2015
= (90/300) * 520
= $156 million
Combination Fraction of Portfolio in Diversified Stocks Average Annual Return Standard Deviation of Portfolio Return (Risk)
(Percent) (Percent) (Percent)
A 0 2.00 0
B 25 4.50 5
C 50 7.00 10
D 75 9.50 15
E 100 12.00 20
If Rosa reduces her portfolio's exposure to risk by opting for a smaller share of stocks, he must also accept a average annual return. Suppose Rosa currently allocates 25% of her portfolio to a diversified group of stocks and 75% of her portfolio to risk-free bonds; that is, she chooses combination B. She wants to increase the average annual return on her portfolio from 4.5% to 9.5%. In order to do so, she must do which of the following?
a. Sell some of her bonds and use the proceeds to purchase stocks
b. Sell some of her stocks and use the proceeds to purchase bonds
c. Place the entirety of her portfolio in bonds
d. Accept a lower average annual rate of return
Answer:
a. Sell some of her bonds and use the proceeds to purchase stocks.
Explanation:
Debt or bonds is less risky so it generates lower returns. Stock or equity comprises high risk so it offers high returns to its investors. If Rosa wants to increase her returns from 4.5% to 9.5% then he should sell some of its bonds and invest the proceeds into stocks. The lower returns on the bonds will be replaced by high returns on the stocks.
What is the amount of Maple Corp.'s charitable contribution deduction for the painting (assuming income limitations do not apply)
Answer:
The first part of the question is missing, so I looked for similar questions:
Maple Corp. owns several pieces of highly valued paintings that are on display in the corporation's headquarters. This year, it donated one of the paintings valued at $100,000 (adjusted basis of $25,000) to a local museum for the museum to display.
Maple Corp. can deduct $100,00 as charitable contribution.
When a corporation or an individual donates art work to a qualifying charity, they can deduct the fair market value of the art work if:
they have owned the art work for at least 1 year prior to the donationthe charity must use the art work in a manner directly related to its regular activities and missionthe charity must hold the art work for at least 3 years after you donated itthe IRS must classify the company or individual as an investor or art collector, e.g. artists cannot deduct donations of their own artBlago Wholesale Company began operations on January 1, 20X1, and uses the average cost method in costing its inventory. Management is contemplating a change to the FIFO method in 20X2 and is interested in determining how such a change will affect net income. Accordingly, the following information has been developed:
20X1 20X2
Final inventory:
Average cost $150,000 $255,000
FIFO 160,000 270,000
Condensed income statements for Blago Wholesale appear below:
20X1 20X2
Sales $1,000,000 $1,200,000
Cost of goods sold 600,000 720,000
Gross profit 400,000 480,000
Selling, general, and
administrative 250,000 275,000
Net income $150,000 $205,000
Required:
Based on this information, what would 20X2 net income be after the change to the FIFO method? Ignore any income tax effects of this change in accounting method.
Answer:
net income for 20x2 is $220,000
Explanation:
if the company changes to the FIFO method, the adjusting entry should be:
Dr Inventory 15,000
Cr Cost of goods sold 15,000
This means that COGS will decrease by $15,000.
20x2 income statement
Sales $1,200,000
Cost of goods sold ($705,000)
Gross profit $495,000
S&A expenses ($275,000)
Net income $220,000
What is a "debt-to-income" ratio?
OA. How much money you have to make every year in your job.
OB. How much money you owe in total versus how much you make.
O C. How much money you have to pay back on your income.
How much money you owe on your student loan compared with how much
OD.
you want to make in your job.
Praveen Co. manufactures and markets a number of rope products. Management is considering the future of Product XT, a special rope for hang gliding, that has not been as profitable as planned. Since Product XT is manufactured and marketed independently of the other products, its total costs can be precisely measured. Next year’s plans call for a $210 selling price per 100 yards of XT rope. Its fixed costs for the year are expected to be $193,200, up to a maximum capacity of 550,000 yards of rope. Forecasted variable costs are $168 per 100 yards of XT rope.
1. Estimate Product XT's break-even point in terms of sales units and sale dollars.
2. Prepare a CVP chart for Product XT. Use 7,000 units (700,000 yards/100 maximum number of sales units on the horizontal axis of the graph, and $1,400,000 as the maximum dollar amount on the vertical axis.3. Prepare a contribution margin income statement showing sales, variable costs, and fixed costs for Product XT at the break-even point.
Answer:
1. Estimate Product XT's break-even point in terms of sales units and sale dollars.
break even point = $193,200 / ($210 - $168) = 4,600 package (each containing 100 yards)
break even point in $ = 4,600 x $210 = $966,000
2) attached graph
3) Income Statement
Revenue $966,000
Variable costs ($772,800)
Contribution margin $193,200
Fixed expenses ($193,200)
Operating income $0
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. During November, the first process transferred 715,000 units of product to the second process. Additional information for the first process follows. At the end of November, work in process inventory consists of 201,000 units that are 90% complete with respect to conversion. Beginning work in process inventory had $416,780 of direct materials and $201,578 of conversion cost. The direct material cost added in November is $2,789,220, and the conversion cost added is $3,829,972. Beginning work in process consisted of 80,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 80,000 were from beginning work in process and 635,000 units were started and completed during the period.
Required:
Determine the equivalent units of production with respect to direct materials and conversion.
Answer:
Equivalent units : Direct materials = 916,000 units and Conversion = 895,900 units
Explanation:
Calculation of equivalent units of production with respect to direct materials and conversion.
1. Direct Material
Ending Work In Process Inventory (201,000 × 100%) = 201,000
Completed and Transferred Out (715,000 × 100 %) = 715,000
Equivalent units of production with respect to direct materials = 916,000
2. Conversion
Ending Work In Process Inventory (201,000 × 90%) = 180,900
Completed and Transferred Out (715,000 × 100 %) = 715,000
Equivalent units of production with respect to direct materials = 895,900
so what would you do if your friend expose you for being on brainly?
Answer:
Danm just know your doomed or just beg the person.
Explanation:
A client-server relationship is the basic form of a _____.
A. customized software package
B. work for hire contract
C. computer network
D. service support contract
Answer: Computer Network
Explanation: Apex
Answer:
C
Explanation:
Computer Network.
Why is it difficult for products to "cross the chasm"? Because the product does not appeal to visionaries. Because the product has a brand name that does not translate well to other countries. Because the product's positioning strategy is not consistent with prior product releases. Because the product's value proposition may attract visionaries but may never get acceptance in the mass market.
Answer:
Because the product's value proposition may attract visionaries but may never get acceptance in the mass market.
Explanation:
The cross the charm refers to a charm that is existed after selling the product to the early adopters also at the same time the sales reached to plateau while on the other hand the growth next stage is to be done so that the product could be reached to the masses
Therefore as per the given situation, the last option is appropriate
And, the same is to be considered
Does anyone know the answer to this management question?
Answer:
no
Explanation:i donnt remember how to do that
Tidwell Industries has the following overhead costs and cost drivers. Direct labor hours are estimated at 100,000 for the year. Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 120,000 500 orders Machine Setup Setups 297,000 450 setups Machining Machine hours 1,500,000 125,000 MH Assembly Parts 1,200,000 1,000,000 parts Inspection Inspections 300,000 500 inspections If overhead is applied using activity-based costing, the overhead application rate for ordering and receiving is:__________
A. $6,834 per order.
B. $240 per order.
C. $0.12 per part.
D. $1.20 per direct labor hour.
Answer:
Predetermined manufacturing overhead rate= $240 per order
Explanation:
Giving the following information:
Activity Cost Pool Cost Driver Est. Overhead Cost Driver Activity Ordering and Receiving Orders $ 120,000 500 orders
To calculate the predetermined overhead rate, we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 120,000/500
Predetermined manufacturing overhead rate= $240 per order
Cost-Volume-Profit Analysis CVP exercises The Deli-Sub Shop owns and operates six stores in and around Minneapolis. You are given the following corporate budget data for next year:
Revenues $11,000,000
Fixed costs $3,000,000
Variable costs $7,500,000
Variable costs change based on the number of subs sold.
Use the blue shaded areas on the ENTERANSWERS tab for inputs. Always use cell references and formulas where appropriate to receive full credit. Cell references and formulas should be based on the original data. If you copy/paste from the Instructions tab you will be marked wrong.
Requirements Compute the budgeted operating income for each of the following deviations from the original budget data. (Consider each case independently.)
a. Enter all amounts as positive values. Do NOT use parentheses or a minus sign for amounts to be subtracted.
b. Refer to the budgeted operating income based on the original budget data in all calculations.
1 Determine the budgeted operating income based on the original budget data.
2 A 10% increase in contribution margin, holding revenues constant
3 A 10% decrease in contribution margin, holding revenues constant
4 A 5% increase in fixed costs
5 A 5% decrease in fixed costs
6 A 5% increase in units sold
7 A 5% decrease in units sold
8 A 10% increase in fixed costs and a 10% increase in units sold
9 A 5% increase in fixed costs and a 5% decrease in variable costs
10 Which of these alternatives yields the highest budgeted operating income?
Answer:
The Deli-Sub Shop
1. Budgeted operating income based on the original budget data:
Revenues $11,000,000
Variable costs $7,500,000
Contribution $3,500,000
Fixed costs $3,000,000
Operating Income $500,000
2. 10% increase in contribution, holding revenues constant:
Revenues $11,000,000
Variable costs $7,150,000
Contribution $3,850,000
Fixed costs $3,000,000
Operating Income $850,000
3. A 10% decrease in contribution margin, holding revenues constant:
Revenues $11,000,000
Variable costs $7,850,000
Contribution $3,150,000
Fixed costs $3,000,000
Operating Income $150,000
4. A 5% increase in fixed costs:
Revenues $11,000,000
Variable costs $7,500,000
Contribution $3,500,000
Fixed costs $3,150,000
Operating Income $350,000
5. A 5% decrease in fixed costs:
Revenues $11,000,000
Variable costs $7,500,000
Contribution $3,500,000
Fixed costs $2,700,000
Operating Income $800,000
6. A 5% increase in units sold:
Revenues $11,550,000
Variable costs $7,875,000
Contribution $3,675,000
Fixed costs $3,000,000
Operating Income $675,000
7. A 5% decrease in units sold:
Revenues $10,450,000
Variable costs $7,125,000
Contribution $3,325,000
Fixed costs $3,000,000
Operating Income $325,000
8. A 10% increase in fixed costs and a 10% increase in units sold:
Revenues $12,100,000
Variable costs $8,250,000
Contribution $3,850,000
Fixed costs $3,000,000
Operating Income $850,000
9. A 5% increase in fixed costs and a 5% decrease in variable costs:
Revenues $11,000,000
Variable costs $7,125,000
Contribution $3,875,000
Fixed costs $3,150,000
Operating Income $725,000
10. 2 A 10% increase in contribution margin, holding revenues constant
and
8 A 10% increase in fixed costs and a 10% increase in units sold
Explanation:
a) Data and Calculations:
Corporate Budget:
Revenues $11,000,000
Variable costs $7,500,000
Contribution $3,500,000
Fixed costs $3,000,000
Operating Income $500,000
b) A 10% or 5% increase is multiplied by a factor of 1.1 or 1.05 while a 10% or 5% decrease is multiplied by a factor of 0.9 or 0.95 respectively.
Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost On April 1, Sangvikar Company had the following balances in its inventory accounts:
Materials Inventory $12,670
Work-in-Process Inventory 21,090
Finished Goods Inventory 8,680
Work-in-process inventory is made up of three jobs with the following costs:
Job 114 Job 115 Job 116
Direct materials $2,360 $2,647 $3,807
Direct labor 1,780 1,540 4,120
Applied overhead 1,157 1,001 2,678
During April, Sangvikar experienced the transactions listed below. Materials purchased on account, $28,520. Materials requisitioned: Job 114, $16,190; Job 115, $12,340; and Job 116, $4,850. Job tickets were collected and summarized: Job 114, 170 hours at $11 per hour; Job 115, 210 hours at $14 per hour; and Job 116, 90 hours at $17 per hour. Overhead is applied on the basis of direct labor cost. Actual overhead was $4,590. Job 115 was completed and transferred to the finished goods warehouse. Job 115 was shipped, and the customer was billed for 125 percent of the cost.
Required:
a. Calculate the predetermined overhead rate based on direct labor cost.
b. Calculate the ending balance for each job as of April 30.
Answer: See explanation
Explanation:
a. Calculate the predetermined overhead rate based on direct labor cost.
Job 114:
Predetermined overhead rate = Overhead cost/Direct labor cost
= 1157/1780
= 65%
Job 115:
Predetermined overhead rate = Overhead cost/Direct labor cost
= 1001/1540
= 65%
Job 116:
Predetermined overhead rate = Overhead cost/Direct labor cost
= 2678/4120
= 65%
b. Calculate the ending balance for each job as of April 30
Job 114:
Beginning balance= 2360+1780+1157 = 5297
Material = 16190
Direct labor = 170 × 11 = 1870
Overhead = 1870 × 0.7 = 1309
Ending balance = 24666
Job 115:
Beginning balance= 2647+1540+1001 = 5188
Material = 12340
Direct labor = 210 × 14 = 2940
Overhead = 2940 × 0.7 = 2058
Ending balance = 22526
Less: Finished goods = 22526
Balance = 0
Job 116:
Beginning balance= 3807+4120+2678= 10605
Material = 4850
Direct labor = 90 × 17 = 1530
Overhead = 1530 × 0.7 = 1071
Ending balance = 18056
Now that he has a part-time job, your younger brother Daniel is opening up his own checking account. You want to pass on what you have learned about checking accounts to him. Prepare a list of recommendations for Daniel covering the following topics: Questions he should ask before opening an account Three ideas on how best to manage his account Three features of online and mobile banking that he should use Overdraft protection: Opt-in or opt-out?
Answer:
1. He should ask about all the fees the bank charges and interest rates. He should also ask why he should open up his checking account with them. He should compare banks to see which is the best option for him.
2. One way he can best manage his account is to download the mobile banking app if there is one. A second idea would be to make sure he is being cautious about entering the pin number in busy stores or shopping on unsecured websites. A third idea for him to best manage his account would be to not get overdraft protection. There can be a lot of fees when getting this protection.
3. One feature of online and mobile banking he should use is direct deposit. It is a fast way to directly receive money into your checking account. Another feature is many apps allow access to both the checking and savings account. It is an quick way to transfer money between these two accounts. A third feature is cashing checks online. He can cash his checks online by using the mobile app and taking a picture of it.
4. He should not get overdraft protection. He shouldn't get overdraft protection because it adds up after you have run out of money. Overdraft protection is one of the main ways banks make a profit.
Explanation:
Zola Inc. paid a $10,000 legal fee to the attorney who resolved a dispute over Zola's title to investment land. Zola's auditors required the corporation to expense the payment for financial statement purposes. The tax law required Zola to capitalize the payment to the basis of the land. This difference in accounting treatment results in a:
Answer:
Deferred tax asset
Explanation:
A deferred tax asset results when a taxpayer (in this case Zola, Inc.) pays more taxes than what they were required to do during a certain period. It is considered an asset because the taxpayer will be allowed to use this overpayment of taxes to decrease future tax liabilities.
Marigold Inc. disposes of an unprofitable segment of its business. The operation of the segment suffered a $192000 loss in the year of disposal. The loss on disposal of the segment was $99000. If the tax rate is 30%, and income before income taxes was $1630000.
a. the income tax expense on the income before discontinued operations is $378300.
b. the income from continuing operations is $1141000.
c. net income is $1339000.
d. the losses from discontinued operations are reported net of income taxes at $291000.
Answer:
The correct option is b. The income from continuing operations is $1141000.
Explanation:
Based on the information given we were told that the tax rate is 30% while the income before income taxes was $1,630,000 which means that the The income from continuing operations is $1141000 calculated as:
Income from continuing operations=[$1,630,000-(30%*$1,630,000)]
Income from continuing operations=$1,630,000-$489,000
Income from continuing operations=$1,141,000
Dale’s Business Services experienced the following events during its first year of operations:
1. Acquired $20,000 cash from the issue of common stock.
2. Borrowed $12,000 cash from First Bank.
3. Paid $5,000 cash to purchase land.
4. Received $25,000 cash for providing boarding services.
5. Acquired an additional $5,000 cash from the issue of common stock.
6. Purchased additional land for $4,000 cash.
7. Paid $10,000 cash for salary expense.
8. Signed a contract to provide additional services in the future.
9. Paid $1,200 cash for rent expense.
10. Paid a $1,000 cash dividend to the stockholders.
11. Determined the market value of the land to be $18,000 at the end of the accounting period.
Required:
Classify each event as an asset source, use, or exchange transaction or as not applicable (NA).
Answer:
Explanation:
AS U BEING MY FRIEND I WILL WARN ABOUT MY HUMAN BEING IN THE TELESCOPE. BUT WHAT I REALLY NEED TO TALK TO U ABOUT IS THE FLYING SAUSAGE INCIDENT I DON’T THINK I TALKED TO U ABOUT THIS BUT U REALLY SHOULD KNOW THAT I AM SECRETLY A FLYING SAUSAGE NOT ONLY AM I A FLYING SAUSAGE BUT I AM THE FLYING SAUSAGE THAT TOOK THE WALKING CHEESEBURGERS PICKLES. I NEED UR HELP TO ESCAPE THE POLICE MEN BECAUSE THE ONLY REASON I STOLE HIS PICKLES WAS BECAUSE I WAS GOING THROUGH THIS THING WHERE ALL I WANTED TO DO WAS EAT PICKLES AND MY MOM WOULDN’T BUY ANY. I HAD NO MONEY SO I DIDN’T KNOW WHAT ELSE TO DO. I WALKED OVER TO THE CHEESEURGER AND TOOK HIS PICKLES. APPARENTLY THATS AGAINST THE LAW BUT I STILL DID IT. I ALREADY ATE THE PICKLES SO I CAN’T RETURN THEM. I ASKED BOBBYJO TO PUT ME IN A BOX AND SEND ME TO NORTH CAROLINA SO I AM NOW IN NEW ENGLAND I NEED U TO GO ON A SECRET MISSION AND GO BUY ME A PRIVATE JET U SEE I CAN NOT FLY ANYMORE SO I NEED SOMEONE TO SEND ME A PRIVATE JET NOT A AIRPLANE I ALREADY HAVE 2,345 AIRPLANES PLEASE DO NOT SEND ME AN AIRPLANE.PLEASE AND THANK YOU I HOPE U CAN COMPLETE MY MISSION.
THE YOUNG HOT WING
DID U KNOW THAT A LONG TIME AGO THERE ONCE WAS A YOUNG HOT WING HE WAS A VERY NICE HOT WING EXCEPT HE WANTED TO HE TOMATO'S NOT JUST NORMAL TAMATO'S BUT TOMATO'S FROM A CLOWNS NOSE. HE HAD TO HAVE THE CLOWNS NOSE'S FOR EVERY MEAL BUT THEY HAD TO BE USED.
THIS HOT WING ENDED UP AS A MODEL IN THE 1780'S. HE TURNED OUT NICE AND RED WITH HOT SAUCE. ONE DAY AT A MODELING SHOW A GUY DECIDED TO GO UP ON STAGE AND TAKE A BIG JUICY BITE OUT OF THE HOT WING. THE HOT WING CRIED AND CRIED FOR A MILLION YEARS BECAUSE HE COULD NO LONGER BE A MODEL. AFTER HE CRIED FOREVER HE WAS VERY MOLDY SO HE STARTED TO CRY AGAIN. AFTER THAT THE LITTLE MOLDY PARTS CAME OF OF HIM AND BECAME SERGEANTS THEY STICTICHED UP THE HOTWINGS WHOLE. BY NOW THE YOUNG HOT WING IS A VERY OLD BUT HE STILL COMPLETED HIS MODELING CAREER. AFTER THE SERGEANT'S FIXED UP THE HOT WING THEY GOT A HOTDOG AND ATE IT.
Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 1.90:1, and an acid-test ratio of 1.70:1. During the month, it completed the following transactions (the company uses a perpetual inventory system).
May 2 Purchased $75,000 of merchandise inventory on credit.
8 Sold merchandise inventory that cost $55,000 for $150,000 cash.
10 Collected $26,000 cash on an account receivable.
15 Paid $29,500 cash to settle an account payable.
17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.
22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock.
26 Paid the dividend declared on May 22.
27 Borrowed $120,000 cash by giving the bank a 30-day, 10% note.
28 Borrowed $135,000 cash by signing a long-term secured note.
29 Used the $255,000 cash proceeds from the notes to buy new machinery.
Required
Prepare a table showing Plum's (1) current ratio, (2) acid-test ratio, and (3) working capital, after each transaction. Round ratios to two decimals.
Answer:
Plum Corporation
(1) current ratio = Current assets/current liabilities
(2) acid-test ratio = (Current asset -Inventory)/Current liabilities
(3) working capital = Current assets minus Current liabilities
(4) acid-test assets = quick assets
May 2 Purchased $75,000 of merchandise inventory on credit.
Current Assets: $1,400,000 + $75,000 = $1,475,000
Current Liabilities: $737,000 + $75,000 = $812,000
Inventory: $147,000 +$75,000 = $222,000
(1) current ratio = $1,475,000/$812,000
= 1.82:1
(2) acid-test ratio = $1,475,000 - $222,000/$812,000
= 1.54:1
(3) working capital = Current Assets - Current Liabilities
= $1,475,000 - $812,000
= $663,000
May 8 Sold merchandise inventory that cost $55,000 for $150,000 cash.
Current Assets: $1,475,000 -55,000 + 150,000 = $1,570,000
Current Liabilities: $812,000
Inventory: $222,000 - 55,000 = $167,000
Quick Assets = $1,570,000 - 167,000 = $1,403,000
(1) current ratio = $1,570,000/$812,000
= 1.93
(2) acid-test ratio = $1,403,000/$812,000
= 1.73
(3) working capital = $1,570,000 - $812,000
= $758,000
May 10 Collected $26,000 cash on an account receivable.
Current Assets: $1,570,000 ($26,000 - $26,000) = $1,570,000
Current Liabilities: $812,000
Inventory: 167,000
Quick Assets = $1,570,000 - 167,000 = $1,403,000
(1) current ratio = $1,570,000/$812,000
= 1.93
(2) acid-test ratio = $1,403,000/$812,000
= 1.73
(3) working capital = $1,570,000 - $812,000
= $758,000
May 15 Paid $29,500 cash to settle an account payable.
Current Assets: $1,570,000 - $29,500 = $1,540,500
Current Liabilities: $812,000 - $29,500 = $782,500
Inventory: 167,000
Quick Assets = $1,540,500 - 167,000 = $1,373,500
(1) current ratio = $1,540,500/$782,500
= 1.97:1
(2) acid-test ratio = $1,373,500/$782,500
= 1.76:1
(3) working capital = $1,540,500 - $782,500
= $758,000
May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.
Current Assets: $1,540,500 - $5,000 = $1,535,500
Current Liabilities: $782,500
Inventory: 167,000
Quick Assets = $1,535,500 - 167,000 = $1,368,500
(1) current ratio = $1,535,500/$782,500
= 1.96:1
(2) acid-test ratio = $1,535,500/$782,500
= $1.96:1
(3) working capital = $1,535,500 - $782,500
=$753,000
May 22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock.
Current Assets: $1,535,500
Current Liabilities: $782,500
Inventory: 167,000
Quick Assets = $1,535,500 - 167,000 = $1,368,500
(1) current ratio = $1,535,500/$782,500
= 1.96:1
(2) acid-test ratio = $1,535,500/$782,500
= $1.96:1
(3) working capital = $1,535,500 - $782,500
=$753,000
May 26 Paid the dividend declared on May 22.
Current Assets: $1,535,500 -$69,000 = $1,466,500
Current Liabilities: $782,500
Inventory: 167,000
Quick Assets = $1,466,500 - 167,000 = $1,299,500
(1) current ratio = $1,466,500/$782,500
= 1.87:1
(2) acid-test ratio = $1,299,500/$782,500
= 1.66:1
(3) working capital = $1,466,500 - $782,500
= $684,000
May 27 Borrowed $120,000 cash by giving the bank a 30-day, 10% note.
Current Assets: $1,466,500 + $120,000 = $1,586,500
Current Liabilities: $782,500 + $120,000 = $902,500
Inventory: 167,000
Quick Assets = $1,586,500 - 167,000 = $1,419,500
(1) current ratio = $1,586,500/$902,500
= 1.76
(2) acid-test ratio = $1,419,500/$902,500
= 1.57
(3) working capital = $1,586,500 - $902,500
= $684,000
May 28 Borrowed $135,000 cash by signing a long-term secured note.
Current Assets: $1,586,500 + $135,000= $1,721,500
Current Liabilities: $902,500
Inventory: 167,000
Quick Assets = $1,721,500 - 167,000 = $1,554,500
(1) current ratio = $1,721,500/$902,500
= 1.91:1
(2) acid-test ratio = $1,554,500/$902,500
= 1.72
(3) working capital = $1,721,500 - $902,500
= $819,000
May 29 Used the $255,000 cash proceeds from the notes to buy new machinery.
Current Assets: $1,721,500 - $255,000 = $1,466,500
Current Liabilities: $902,500
Inventory: 167,000
Quick Assets = $1,466,500 - 167,000 = $1,299,500
(1) current ratio = $1,466,500/$902,500
= 1.62:1
(2) acid-test ratio = $1,299,500/$902,500
= 1.44:1
(3) working capital = $1,466,500 - $902,500
= $564,000
Explanation:
a) Data and Calculations:
May 1, Current Assets = $1,400,000
Ratio of current assets to current liabilities = 1.90:1
Acid -test ratio = 1.70:1
Therefore, current liabilities = $1,400,000/1.9 = $737,000
Current Assets minus Inventory/$737,000 = 1.7
Therefore, current assets minus inventory = $737,000 * 1.7 = 1,253,000
Inventory = Current Assets - (Current assets -inventory)
= $1,400,000 - $1,253,000
= $147,000
Full Question attached
Answer and Explanation:
Find attached