Answer:
internal and external source
Explanation:
Answer:
There are two sources of data. they are:
1. Internal Source.
2. External Source.
Explanation:
Internal Source. When data are collected from reports and records of the organision itself, it is known as the internal source.
External Source. When data are collected from outside the organition, it is known as the external source.
For each transaction,
1. Analyze the transaction using the accounting equation.
2. Record the transaction in journal entry form
3. Post the entry using T-accounts to represent ledger accounts.
Use the following (partial) chart of accounts—account numbers in parentheses: Cash (101); Accounts Receivable (106); Office Supplies (124); Trucks (153); Equipment (167); Accounts Payable (201); Unearned Landscaping Revenue (236); D. Tyler, Capital (301); D. Tyler, Withdrawals (302); Landscaping Revenue (403); Wages Expense (601), and Landscaping Expense (696).
a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value.
b. On May 21, Elegant Lawns purchases office supplies on credit for $500.
c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
Answer:
1) I used an excel spreadsheet
2) a. On May 15, DeShawn Tyler opens a landscaping company called Elegant Lawns by investing $7,000 in cash along with equipment having a $3,000 value.
Dr Cash 7,000
Dr Equipment 3,000
Cr DeShawn Tyler, capital 10,000
b. On May 21, Elegant Lawns purchases office supplies on credit for $500.
Dr Office supplies 500
Cr Accounts payable 500
c. On May 25, Elegant Lawns receives $4,000 cash for performing landscaping services.
Dr Cash 4,000
Cr Landscaping Revenue 4,000
d. On May 30, Elegant Lawns receives $1,000 cash in advance of providing landscaping services to a customer.
Dr Cash 1,000
Cr Unearned Landscaping Revenue 1,000
3)
Cash (101)
debit credit
7,000
4,000
1,000
12,000
Office Supplies (124)
debit credit
500
Equipment (167)
debit credit
3,000
Accounts Payable (201)
debit credit
500
Unearned Landscaping Revenue (236)
debit credit
1,000
D. Tyler, Capital (301)
debit credit
10,000
Landscaping Revenue (403)
debit credit
4,000
University Printers has two service departments Maintenance and Personnel and two operating departments Printing and Developing. Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each.
The following data appear in the company records for the current period:
Maintenance Personnel Printing Developing
Machine-hours ? 455 455 2,590
Labor-hours 315 ? 294 1,491
Department direct cost 11,000 $23,000 $25,000 $23,000
Required: Allocate the service department costs using the reciprocal method. Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.
Answer:
Machine hour percentages -Allocation of Maintenance Costs
455 + 455 + 2,590 = 3,500 total machine hrs
Personnel = 455 / 3,500 = 13%
Printing = 455 / 3,500 = 13%
Developing = 2,590 / 3,500 = 74%
Labor hr. percentages--Allocation of Personnel costs
315 + 294 + 1,491 = 2,100 total labor hrs.
Maintenance = 315 / 2,100 = 15%
Printing = 294 / 2,100 = 14%
Developing = 1,491 / 2,100 = 71%
Service
Maintenance Personnel Printing Developing
Costs before allocation 11,000 23,000 25,000 23,000
Allocate maintenance costs -11,000 1,430 1,430 8,140
0 24,430
Allocate personnel costs 3664.5 -24430 3420.2 17345.3
Allocate maintenance costs -3664.5 476.39 476.39 2711.73
Allocate personnel costs 71.46 -476.39 66.69 338.24
Allocate maintenance costs -71.46 9.29 9.29 52.88
Allocate personnel costs 1.39 -9.29 1.3006 6.5959
Allocate maintenance costs -1.39 0 0 1.39
Total costs 0.00 0.00 30403.87 51596.13
Workings
Allocate maintenance costs
Personnel = (11000 * 13%) = 1430
Printing = (11000 * 13%) = 1430
Developing = (11000 * 74%) = 8140
Allocate personnel costs
Maintenance = 24430 * 15% =
Printing = (24430 * 14%) =
Developing = (24430 * 71%) =
Allocate maintenance costs
Personnel = (3664.5 * 13%)
Printing = (3664.5 * 13%)
Developing = (3664.5 * 74%)
Allocate personnel costs
Maintenance = (476.39 * 15%)
Printing = (476.39 * 14%)
Developing = (476.39 * 71%)
Allocate maintenance costs
Personnel = (71.46 * 13%)
Printing = (71.46 * 13%)
Developing = (71.46 * 74%)
Allocate personnel costs
Maintenance= (9.29 * 15%)
Printing = (9.29 * 14%)
Developing = (9.29 * 71%)
If there is a technological advance that lowers the cost of producing x-ray machines, then we can say that the
Answer:
C) quantity supplied of those machines will go up.
Explanation:
the options are missing:
A ) quantity demanded for those machines will increase.
B) demand for those machines will shift right.
C) quantity supplied of those machines will go up.
D) quantity supplied of those machines will decrease.
If production costs decrease, the supply curve will shift to the right, increasing the total quantity supplied while decreasing the sales price. Advances in technology increase productivity, which allows companies to supply a higher amount of goods at lower prices, which in turn increases the total quantity demanded for these goods.
The following information relates to Sheridan Company for the year 2022.
Retained earnings, January 1, 2022 $40,320
Advertising expense $1,510
Dividends during 2022 4,200
Rent expense 8,740
Service revenue 52,500
Utilities expense 2,600
Salaries and wages expense 23,520
Other comprehensive income (net of tax) 340
Required:
a. After analyzing the data, compute net income.
b. Prepare a comprehensive income statement for the year ending December 31, 2022.
Answer:
a. Computation of net income
Particulars Amount
Service revenue $52,500
Less: Expenses
Salaries and wages expenses ($23,520)
Utilities expense ($2,600)
Rent expense ($8,740)
Advertising expense ($1,510)
Net Income $16,130
b. Computation of comprehensive income statement
Particulars Amount
Net Income $16,130
Add: Other Comprehensive Income $380
Comprehensive Income $16,470
Note: Dividend will not be included as it forms part of Income statement
Sparky Corporation uses the weighted-average method of process costing. The following information is available for February in its Molding Department:
Units:
Beginning Inventory: 30,000 units, 100% complete as to materials and 55% complete as to conversion.
Units started and completed: 120,000.
Units completed and transferred out: 150,000.
Ending Inventory: 32,500 units, 100% complete as to materials and 30% complete as to conversion.
Costs:
Costs in beginning Work in Process - Direct Materials: $48,000.
Costs in beginning Work in Process - Conversion: $53,850.
Costs incurred in February - Direct Materials: $328,050.
Costs incurred in February - Conversion: $604,150.
Required:
Calculate the cost per equivalent unit of materials.
Answer:
Cost per equivalent unit of material = $2.06
Explanation:
Total cost of material= Cost of material in beginning WIP + Cost of material incurred in February
= $48,000 + $328,050
= $376,050
Equivalent units = Number of units completed and transferred+ Ending inventory
= 150,000 units + 32,500 units
= 182,500 units
Cost per equivalent unit of material = Total cost of direct material / Equivalent units
= $376,050 / 182,500 units
= $2.06
The following income statement items appeared on the adjusted trial balance of Foxworthy Corporation for the year ended December 31, 2021 ($ in 000s): sales revenue, $22,600; cost of goods sold, $14,650; selling expense, $2,330; general and administrative expense, $1,230; dividend revenue from investments, $230; interest expense, $330. Income taxes have not yet been accrued. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in 000s). All transactions are material in amount.
1. Investments were sold during the year at a loss of $300. Foxworthy also had unrealized losses of $200 for the year on investments.
2. One of the company’s factories was closed during the year. Restructuring costs incurred were $2,000.
3. During the year, Foxworthy completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP regarding discontinued operations. The division had incurred operating income of $800 in 2016 prior to the sale, and its assets were sold at a
loss of $1,800.
4. Foreign currency translation gains for the year totaled $600.
Required:
Prepare Foxworthy's single, continuous statement of comprehensive income for 2021, including basic earnings per share disclosures. Two million shares of common stock were outstanding throughout the year.
Question attached
Answer and Explanation:
Please find attached
The adjusted trial balance of Gary Cooper Co. as of December 31, 2014, contains the following.
GARY COOPER CO.
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $20,892
Accounts Receivable 8,340
Prepaid Rent 3,700
Equipment 19,470
Accumulated Depreciation-
Equipment $6,315
Notes Payable 7,120
Accounts Payable 6,892
Common Stock 21,420
Retained Earnings 12,730
Dividends 4,420
Service Revenue 13,010
Salaries and Wages Expense 8,260
Rent Expense 2,154
Depreciation Expense 251
Interest Expense 189
Interest Payable 189
$67,676 $67,676
Instructions:
(a) Prepare an income statement.
(b) Prepare a statement of retained earnings.
(c) Prepare a classified balance sheet.
Answer: See attachment
Explanation:
An income statement is sometimes referred to as the profit and loss account. It should be noted that it shows the revenue and the expenses that are incurred by a particular company for a certain year.
With regards to the questions above, check the attachments for the solution.
In an example, a local church is made up of people who are very different in their lifestyles and their stages of life. Mary is a 23-year-old single parent who earns the minimum wage. Jonathan is 60 years old, extremely wealthy, and works because he enjoys it. Jane is a 45-year-old lawyer who earns well and is well-respected in her profession. She is extremely career-oriented and is proud of her achievements. Which of the following do you think would motivate Jonathan the most?
a. safety
b. physiological
c. self-actualization
d. growth
e. esteem
Answer:
C) Self actualization
Explanation:
From the question, we are informed about example of alocal church is made up of people who are very different in their lifestyles and their stages of life, we are told if Mary who is is a 23-year-old single parent who earns the minimum wage. Jonathan is 60 years old, extremely wealthy, and works because he enjoys it. Jane is a 45-year-old lawyer who earns well and is well-respected in her profession. She is extremely career-oriented and is proud of her achievements.
In this case, self actualization would motivate Jonathan the most. This is because self actualization can be regarded as self fulfilment, it is when one fully realize his/her potential and gives appreciation, and here
Jonathan is 60 years old, and described as extremely wealthy, and works because he enjoys it. Hence self actualization is the best answer.
At $0.31 per bushel, the daily supply for wheat is 306 bushels, and the daily demand is 459 bushels. When the price is raised to $0.79 per bushel, the daily supply increases to 546 bushels, and the daily demand decreases to 439 bushels. Assume that the price-supply and price-demand equations are linear. a. Find the price-supply equation.
Answer:
The answer is below
Explanation:
a) Find the price supply equation. b) Find the price demand equation. c) Find the equilibrium price and quantity.
Solution:
a) A linear equation is in the form y = mx + b, where m is the slope, y is a dependent variable, x is an independent variable, b is value of y at x = 0.
Let p represent the price and q represent the quantity. Hence we have the points (306, 0.31), (546, 0.79)
Using the formula:
[tex]p-p_1=\frac{p_2-p_1}{q_2-q_1}(q-q_1)\\ \\p-0.31=\frac{0.79-0.31}{546-306} (q-306)\\\\p=0.002q-0.302[/tex]
b) Let p represent the price and q represent the demand. Hence we have the points (459, 0.31), (439, 0.79)
Using the formula:
[tex]p-p_1=\frac{p_2-p_1}{q_2-q_1}(q-q_1)\\ \\p-0.31=\frac{0.79-0.31}{439-459} (q-459)\\\\p=-0.024q+11.326[/tex]
c) At equilibrium, price supply equation = price supply equation
0.002q - 0.302 = -0.024q + 11.326
0.002q + 0.024q = 11.326 + 0.302
0.026q = 11.628
q = 447.23 bushels
p = 0.002q - 0.302 = 0.002(447.23) - 0.302
p = $1.2
Company XYZ closed at $ per share with a P/E ratio of . Answer the following questions. a. How much were earnings per share? b. Does the stock seem overpriced, underpriced, or about right given that the historical P/E ratio is 12-14?
Answer:
Hello your question is incomplete below is the complete question
Company XYZ closed at $53.02 per share with a P/E ratio of 14.02 .
Answer :
A) $3.79
B) underpriced
Explanation:
Given data:
Closing price ( price per share ) = $53.02
P/E ratio = 14.02
A ) How much earnings per share
Earnings per share = price per share / (P/E) ratio
= 53.02 / 14.02 = $3.79
B) To check if the stock is overpriced, underpriced or about right
i) At P/E ratio = 12
Earnings per share = 53.02 / 12 = $4.43
Earning yield = ( earning per share / market value ) * 100
= ( 4.43 / 53.02 ) * 100 = 8.33%
ii) At P/E ratio = 13
Earnings per share = 53.02 / 13 = $4.09
Earning Yield = ( earning per share / market value ) * 100
= (4.09 / 53.02 ) * 100 = 7.69%
iii) At P/E ratio = 14
Earnings per share = 53.02 / 14 = $ 3.8
Earnings yield = ( earning per share / market value ) * 100
= ( 3.8 / 53.02 ) * 100 = 7.14%
The average of the earning yield given P/E ratio is 12-14
= ( 8.33 + 7.69 + 7.14 ) % / 3 = 7.72%
while The earning yield given P/E ratio is 14.02
= ( earning per share / market value ) * 100
= ( 3.79 / 53.02 ) * 100 = 7.12%
Therefore the stock is underpriced
Theresa works as a Risk Management Specialist for an investment corporation. Which best describes her educational pathway?
A. an associate’s degree, then a bachelor’s degree
B. a master’s degree, then vocational school
C. vocational school, then an associate’s degree
D. a bachelor’s degree, then a master’s degree
Answer:
The answer is b
Explanation:
i'm doing the unit test right now
Answer:
I feel that the correct answers is D because to become a Risk Management Specialist you must have a bachelors in business and most likely a master.
Explanation:
Mathias Corporation manufactures and sells wire rakes. The rakes sell for $20 each. Information about the company's costs is as follows.
Variable manufacturing cost per unit $6
Variable selling and administrative cost per unit 2
Fixed manufacturing overhead per month $300,000
Fixed selling and administrative cost per month 600,000
Required:
a. Determine the company's monthly break-even point in units.
b. Determine the sales volume (in dollars) required for a monthly operating income of $1,200,000.
c. Compute the company’s margin of safety if its current monthly sales level is $2,500,000.
d. Estimate the amount by which monthly operating income will increase if the company anticipates a $100,000 increase in monthly sales volume.
Answer:
a. 75,000 units
b. $1,700,000
c. 0.40 or 40 %
d. $60,000
Explanation:
Break-even point is the level of activity where a firm neither makes a profit nor a loss.
Break-even point (units) = Fixed Costs ÷ Contribution per unit
Where,
Contribution per unit = Unit Selling Price less Variable Costs per unit
= $20 - $6 - $2
= $12.00
Therefore,
Break-even point (units) = ($300,000 + $600,000) ÷ $12.00
= 75,000 units
Sales (dollars) to reach target profit = (Fixed Costs + Target Profit) ÷ Contribution Margin Ratio
Where,
Contribution Margin Ratio = Contribution ÷ Sales
= $12.00 ÷ $20.00
= 0.60
Therefore,
Sales (dollars) to reach target profit = ($300,000 + $600,000 + 1,200,000) ÷ 0.60
= $1,700,000
Margin of Safety = (Sales level - Break-even Sales level) ÷ Sales level
= ($2,500,000 - $1,500,000) ÷ $2,500,000
= 0.40 or 40 %
Calculation of Incremental Monthly Operating Income
Incremental Sales $100,000
Less Incremental Variable Costs (5,000 × $8) ($40.000)
Incremental Contribution $60,000
Less Incremental Fixed Costs $0
Incremental Operating Income $60,000
31. Which one is not the barriers of Enterpreneurship:
(A) Lack of technical skills
(B) Political instability
(C) Technical knowledge
(D) Time pressure and distractions
Answer:
d
Explanation:
I think so, I'm not sure
a worker produced four components during an 8-hour shift in which he earned $96. What is his labor cost per unit?
Answer:
$24
Explanation:
Labor cost per unit is the ratio of total labor expense for a period of time divided by the total number of units produced during that period of time. It is given by the formula:
Labor cost per unit = Total money earned during a specified period / number of components produced.
Hence using the formula above, the labor cost per unit of the worker is gotten to be:
Labor cost per unit = $96 / 4 components = $24
20. The consumer price index was 120 in 2013 and 126 in 2014. The nominal interest rate during this period was 8 percent. What was the real interest rate during this period? A) 3 percent B) 2 percent C) 3.3 percent D) 5.2 percent E) 12.8 percent
Answer: 3%
Explanation:
To calculate the real interest rate, it should be noted that the inflation rate is needed and this can be calculated using the consumer price index as:
= [(126-120)/120] × 100
= 6/120 × 100
= 5%
Real interest rate will now be:
= Nominal Rate - Inflation Rate
= 8% - 5%
= 3%
Air conditioning for a college dormitory will cost $2.1 million to install and $170,000 per year to operate at current prices. The system should last 19 years. The real cost of capital is 9%, and the college pays no taxes. What is the equivalent annual cost
Answer:
$404,634
Explanation:
the formula that we can use to calculate equivalent annual costs is:
EAC = asset price x {discount rate / [1 - (1 + discount rate)⁻ⁿ]} + annual maintenance costs
EAC = $2,100,000 x {0.09 / [1 - (1.09)⁻¹⁹]} + $170,000
EAC = $2,100,000 x {0.09 / [1 - (1.09)⁻¹⁹]} + $170,000 = $234,634 + $170,000 = $404,634
EAC is basically the cost of using an asset during its lifetime. We are determining the cost per year, assuming that they are all equal.
The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2022.
Accounts Receivable $11,400
Prepaid Insurance $1,800
Accounts Payable 7,400
Maintenance and Repairs Expense 1,200
Cash 15,940
Service Revenue 15,500
Equipment 59,360
Dividends 800
Utilities Expense 950
Common Stock 40,000
Insurance Expense 600
Salaries and Wages Expense 8,400
Notes Payable, due 2024 31,450
Salaries and Wages Payable 900
Retained Earnings (July 1, 2022) 5,200
Required:
Prepare classified balance sheet for July 31, 2022.
Answer:
Dependable Delivery Service
Classified balance sheet as at July 31, 2022
Non Current Assets
Equipment $59,360
Total Non Current Assets $59,360
Current Assets
Accounts Receivable $11,400
Prepaid Insurance $1,800
Cash $15,940
Total Current Assets $29,140
Total Assets $88,500
Equity and Liabilities
Equity
Common Stock $40,000
Retained Earnings $8,750
Total Equity $48,750
Liabilities
Non Current Liabilities
Notes Payable, due 2024 $31,450
Total Non Current Liabilities $31,450
Current Liabilities
Accounts Payable $7,400
Salaries and Wages Payable $900
Total Non-Current Liabilities $8,300
Total Liabilities $39,750
Total Equity and Liabilities $88,500
Explanation:
Its very important to calculate the Retained Earnings Balance at the end of July 2020.
To do this, we need to first calculate the Net Income for the period as follows :
Income Statement for the year ended July 31, 2022
Service Revenue 15,500
Less Expenses :
Maintenance and Repairs Expense 1,200
Utilities Expense 950
Insurance Expense 600
Salaries and Wages Expense 8,400 (11,150)
Net Income/(loss) 4,350
Then, calculate the Retained Earnings Balance as follows :
Retained Earnings Calculation
Beginning Balance 5,200
Add Net Income during the period 4,350
Less Dividends (800)
Ending Balance 8,750
Consider an economy described by the following equations:
Y=C+I+G
C=120+0.8×(Y−T)
I=500−50×r G=150
T=125
where Y is GDP, C is consumption, I is investment, G is government purchases, T is taxes, and r is the interest rate. If the economy were at full employment (that is, at the natural rate of output), GDP would be $2,850.
Identify the equation(s) each of the following statements describes.
a. It is a function of disposable income.
b. It depends on the interest rate.
The marginal propensity to consume in this economy is:____________ .
Suppose the central bank's policy is to adjust the money supply to maintain the interest rate at 3%, so r = 3. When the interest rate is 3%, GDP is __________$ .
GDP at an interest rate of 3% is the full-employment level.
a. True
b. False
Assuming no change in monetary policy, (a decrease, an increase) in government purchases by ____ would restore GDP to the full-employment level. (Note: Assume that such change in fiscal policy has no crowding-out effect.) Assuming no change in fiscal policy, (a decrease. an increase) in the interest rate by ___ would restore GDP to the full-employment level.
Answer:
Consumption c is a function of disposable income
Investment I is a function of interest rate
Marginal propensity to consume equals 0.8
If this 3, I = investment
= 500-(3*50)
= 500-150
= 350
We have Y= C+I+G
Y = 120+0.8(Y-125)+350+150
Y = 120+0.8Y-100+350+150
Y-0.8Y = 120-100+350+150
0.2Y = 520
Y = 520/0.2
Y = 2600
GDP and interest rate falls below full employment
If there is no change in monetary policy an increase in government purchases by 50dollars takes gdp back to full employment
If no change in fiscal policy when interest rate decreases by 1.4% God goes back to full employment.
CAM charges for retail leases in a shopping mall must be calculated. The retail mall consists of a total area of 2.8 million square feet, of which 800,000 square feet has been leased to anchor tenants that have agreed to pay $2 per rentable square foot in CAM charges. In-line tenants occupy 1.3 million square feet, and the remainder is a common area, which the landlord believeswill require $8 per square foot to maintain and operate each year. If the owner is to cover total CAM charges, how much will in-line tenants have to pay per square foot?
Answer:
$3.08 per square foot
Explanation:
Calculation for how much will in-line tenants have to pay per square foot
First step is to find the common area
Common area = 2,800,000−800,000−1,300,000 Common area= 700,000
Second step is to find Common area operating costs
Common area operating costs = 700,000×8
Common area operating costs= $5.6 million
Third step is to find the Operating costs charged to in-line tenants
Operating costs charged to in-line tenants = 5,600,000−800,000×2
Operating costs charged to in-line tenants = 4,000,000
Last step is to calculate the In-line CAM charges using this formula
In-line CAM charges=Operating costs charged to in-line tenants -In-line tenants square feet
Let plug in the formula
In-line CAM charges = 4,000,000 ÷ 1,300,000
In-line CAM charges= $3.08
Therefore the amount that in-line tenants have to pay per square foot will be $3.08 per square foot.
What was the first chess champion
Answer:
Wilhelm Steinitz
Explanation:
Answer:
Wilhelm Steinitz
Explanation:
in 1886 he took place the first officially recognized World Chess Championship. So in the year of 1886 he was proclaimed as the first World Chess Champion. The final result was 10 victories for Steinitz, 5 for Zukertort and 5 draws
Amy and Mitchell share equally in the profits, losses, and capital of the accrual basis AM Products LLC. The LLC does not need to report financial information to any third parties, so capital accounts are determined using tax rules (rather than GAAP). Amy is a managing member of the LLC (treated as a general partner) and is a U.S. person. At the beginning of the current tax year, Amy's capital account has a balance of $960,000, and the LLC has debts of $624,000 payable to unrelated parties. The debts are recourse to the LLC, but neither of the LLC members has personally guaranteed them. Assume that all LLC debt is shared equally between the partners. The following information about AM's operations for the current year is obtained from the LLC's records.
Ordinary income $900,000
W-2 wages to employees 200,000
Depreciation expense 300,000
Interest income from bond 4,000
Long-term capital loss 6,000
Short-term capital gain 12,000
Charitable contribution 4,000
Cash distribution to Amy 20,000
Unadjusted basis of partnership depreciable property 1,600,000
Year-end LLC debt payable to unrelated parties is $140,000.
Required:
What income, gains, losses, and deductions does Amy report on her income tax return?
Answer: See explanation
Explanation:
Share of ordinary income:
= (Ordinary income - Wages - Depreciation)/2
= (900,000 - 200,000 - 300,000)/2
= 400,000/2
= 200,000
Share of net short term capital gain
= (12,000 - 6,000) × 50%
= 6,000 × 0.5
= 3,000
Share of interest income
= 4000 × 50%
= 4000 × 0.5
= 2000
Share of charitable contribution deduction
= 4000 × 50%
= 4000 × 0.5
= 2000
Sunset Products manufactures skateboards. The following transactions occurred in March. Purchased $24,500 of materials on account. Issued $1,450 of supplies from the materials inventory. Purchased $25,900 of materials on account. Paid for the materials purchased in transaction (1) using cash. Issued $30,900 in direct materials to the production department. Incurred direct labor costs of $29,500, which were credited to Wages Payable. Paid $22,400 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing shop. Applied overhead on the basis of 120 percent of direct labor costs. Recognized depreciation on manufacturing property, plant, and equipment of $5,900.
The following balances appeared in the accounts of Sunset Products for March:
Beginning Ending
Materials Inventory $ 13,500 ?
Work-in-Process Inventory 24,750 ?
Finished Goods Inventory 97,500 $ 54,750
Cost of Goods Sold 120,000
Required:
a. Prepare journal entries to record the transactions. (If o entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transactions General Journal Debit Credit
1.
2.
3.
4.
5.
6.
7.
8.
9.
b. Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.
Materials Inventory
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Work in Progress Inventory
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Manufacturing Overhead Control
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Applied Manufacturing Overhead
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Accounts Payable
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Cash
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Wages Payable
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Accumulated Depreciation-Property, Plant, and Equipment
Beg. bal. ___________ ____________
______ ___________ ____________ ______
______ ___________ ____________ ______
End. bal. ___________ ____________ ______
Finished Goods Inventory
Beg. bal. ___________ ____________
Goods Completed ___________ ____________ Transfer to Cost of Goods Sold
End. bal. ___________ ____________
Cost of Goods Sold
Beg. bal. ___________ ____________
Finished Goods Inventory ___________ ____________
End. bal. ___________ ____________
Answer:
Sunset Products
a) Journal Entries:
Transactions General Journal Debit Credit
Materials Inventory $24,500
Accounts Payable $24,500
To record the purchase of materials on account.
Manufacturing Overhead $1,450
Materials Inventory $1,450
To record the issue of supplies.
Materials Inventory $25,900
Accounts Payable $25,900
To record the purchase of materials on account.
Accounts Payable $24,500
Cash Account $24,500
To record the payment on account.
Work-in-Process Inventory $30,900
Materials Inventory $30,900
To record the issue of direct materials to the production department.
Work-in-Process Inventory $29,500
Factory Wages $29,500
To record direct labor costs to work in process.
Manufacturing Overhead $22,400
Cash Account $22,400
To record the payment for utilities and other expenses.
Work-in-Process Inventory $35,400
Manufacturing Overhead $35,400
To apply overhead to work in process.
Manufacturing Overhead $5,900
Depreciation Expense $5,900
To recognize depreciation on property, plant, and equipment.
Manufacturing overhead applied $29,750
Manufacturing overhead $29,750
To transfer manufacturing overhead to the overhead applied account.
b) T-accounts:
Materials Inventory
Transaction Details Debit Credit
Beginning balance $ 13,500
Accounts Payable 24,500
Manufacturing overhead $1,450
Accounts Payable 25,900
Work-in-Process Inventory 30,900
Ending balance $31,550
Work-in-Process Inventory
Transaction Details Debit Credit
Beginning balance $24,750
Materials Inventory 30,900
Factory Wages 29,500
Manufacturing Overhead 35,400
Finished Goods Inventory $71,600
Ending balance 54,200
Finished Goods Inventory
Transaction Details Debit Credit
Beginning balance $97,500
Work-in-Process 71,600
Cost of goods sold $114,350
Ending balance 54,750
Cost of Goods Sold
Transaction Details Debit Credit
Beginning balance $120,000
Overapplied overhead $5,650
Ending balance 114,350
Manufacturing Overhead Control Account
Transaction Details Debit Credit
Materials Inventory $1,450
Cash Account 22,400
Depreciation expense 5,900
Manufacturing overhead applied $29,750
Manufacturing Overhead Applied
Transaction Details Debit Credit
Work in Process $35,400
Manufacturing overhead $29,750
Overapplied overhead 5,650
Accounts Payable
Transaction Details Debit Credit Materials Inventory $24,500
Materials Inventory 25,900
Cash Account $24,500
Ending Balance 25,900
Cash Account
Transaction Details Debit Credit
Accounts Payable $24,500
Manufacturing Overhead 22,400
Explanation:
a) Data and Calculations:
Accounts balances of Sunset Products for March:
Beginning Ending
Materials Inventory $ 13,500 ?
Work-in-Process Inventory 24,750 ?
Finished Goods Inventory 97,500 $ 54,750
Cost of Goods Sold 120,000
You pay your neighbor $100 in exchange for the used washing machine she is selling. Your neighbor puts that $100 into her pocket and takes her family out to the movies and a nice dinner at the end of the week. She still has $20 left after this outing and decides to put the remaining $20 into her savings account. This is an example of:
Answer:savings
Explanation:saves the rest of the money where she can reuse it
The partnership of Angel Investor Associates began operations on January 1, 20Y5, with contributions from two partners as follows:
Dennis Overton $180,000
Ben Testerman 120,000
The following additional partner transactions took place during the year:
1. In early January, Randy Campbell is admitted to the partnership by contributing $75,000 cash for a 20% interest.
2. Net income of $150,000 was earned in 20Y5. In addition, Dennis Overton received a salary allowance of $40,000 for the year. The three partners agree to an income-sharing ratio equal to their capital balances after admitting Campbell.
3. The partners' withdrawals are equal to half of the increase in their capital balances from salary allowance and income.
Required:
Prepare a statement of partnership equity for the year ended December 31, 20Y5.
Answer:
450000
Explanation:
The statement of partners' capital shows the changes in each partner's capital account for the year or period being reported on. It has the same format as the statement of owner's equity except that it includes a column for each partner and a total column for the company rather than just one column. The statement starts with the beginning capital balance, followed by the amounts of investments made, the share of net income or loss, and withdrawals made during the reporting period to determine the capital balance at the end of the period.
Dennis Ben Randy Total capital
Balance jan1,20Y5 180,000 120,000 - 300,000
Admission of randy - - 75000 75000
Salary Allowance 40000 - - 40000
Remaining income 52800 35200 22000 110,000
Partners withdrawals (46400) (17600) (11000) (75000 )
Balance Dec 31,2015 226400 137600 86000 450000
You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $750,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.4 million of machinery that was needed for a new project. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $450,000; however, the purchase price for the machinery represents additions to property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.
What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.
Answer:
200,000
Explanation:
A cash flow statement is a financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company. The cash flow statement measures how well a company manages its cash position, meaning how well the company generates cash to pay its debt obligations and fund its operating expenses.
Cash flow from operating activities
Net Income 5,000,000
Less Depreciation (450,000)
Cashflow from operations 5,450,000
Cash flow from investing activities
Purchase of Fixed assets 5,400,,000
Cash flow from investing activities
Issue of long term debt 1,000,000
Dividend paid (750,000)
Cash generated from investing activities 250,000
Change in cash 300,000
Beginning balance 100,000
Closing balance 200,000
For Coppertone products, evaluations in the postpurchase behavior stage of the consumer purchase decision process that are most likely to cause dissatisfaction are
Answer:
dry skin and acne
Explanation:
Coppertone is an American brand name of a sunscreen. This brand is headquartered in Whippany, New Jersey. Coppertone the Coppertone girl logo and a different kind of fragrance.
For Coppertone products, evaluations in the post purchase behavior stage of the consumer purchase decision process that are most likely to cause dissatisfaction are dry skin and acne.
Bristo Corporation has sales of 1,750 units at $40 per unit. Variable expenses are 30% of the selling price. If total fixed expenses are $39,000, the degree of operating leverage is:
Answer:
1,750=$40=1,750×40=70-30÷100×39,000=58,3
Explanation:
is total cost of production can be fixed cost +variable cost
Answer:
degree of operating leverage= 4.9
Explanation:
To calculate the degree of operating leverage, we need to use the following formula:
degree of operating leverage= Total contribution margin / operating income
Total Contribution margin= 1,750*(40*0.7)= $49,000
Operating income= 49,000 - 39,000= $10,000
degree of operating leverage= 49,000/10,000
degree of operating leverage= 4.9
Apr. 2 Purchased $6,900 of merchandise from Lyon Company with credit terms of 2/15, n/60, invoice dated April 2, and FOB shipping point.
3 Paid $390 cash for shipping charges on the April 2 purchase.
4 Returned to Lyon Company unacceptable merchandise that had an invoice price of $500.
17 Sent a check to Lyon Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased $13,100 of merchandise from Frist Corp. with credit terms of 1/10, n/30, invoice dated April 18, and FOB destination.
21 After negotiations, received from Frist a $400 allowance toward the $13,100 owed on the April 18 purchase.
28 Sent check to Frist paying for the April 18 purchase, net of the allowance and the discount.
Required:
Prepare journal entries to record the above transactions for a retail store. Assume a perpetual inventory system.
Answer:
Apr. 2
Merchandise $6,900 (debit)
Accounts Payable : Lyon Company $6,900 (credit)
Purchased Merchandise from Lyon Company on credit
April 3.
Accounts Payable : Lyon Company $390 (debit)
Cash $390 (credit)
Payment of Freight Charges Include in Invoice (FOB)
April 4.
Accounts Payable : Lyon Company $500 (debit)
Merchandise $500 (credit)
Returned Merchandise to Lyon Company
April 17.
Accounts Payable : Lyon Company $6,010 (debit)
Discount Received $120 (credit)
Cash $5,890 (credit)
Payment of amount due to Lyon Company and discount received
April 18.
Merchandise $13,100 (debit)
Accounts Payable: Frist Corp $13,100 (credit)
Purchased Merchandise on credit from Frist Corp
April 2.
Accounts Payable: Frist Corp $400 (debit)
Purchase allowance $400 (credit)
Received and allowance from Frist Corp
April 28.
Accounts Payable: Frist Corp $12,700 (debit)
Discount Received $127 (credit)
Cash $12,573 (credit)
Payment of amount due to Frist Corp and discount received
Explanation:
See the journals and their narrations prepared above.
Swifty Company purchased equipment for $256,800 on October 1, 2020. It is estimated that the equipment will have a useful life of 8 years and a salvage value of $12,000. Estimated production is 48,000 units and estimated working hours are 20,400. During 2020, Swifty uses the equipment for 600 hours and the equipment produces 1,000 units.
Required:
Compute depreciation expense under each of the following methods. Swifty is on a calendar-year basis ending December 31.
a. Straight-line method for 2020 $enter a dollar amount.
b. Activity method (units of output) for 2020 $enter a dollar amount.
c. Activity method (working hours) for 2020 $enter a dollar amount.
d. Sum-of-the-years'-digits method for 2022 $enter a dollar amount (e) Double-declining-balance method for 2021
Answer:
a. Straight line method.
Depreciation per annum = ($ 256,800 - $12,000 ) / 8 = $ 30,600.
Depreciation for 2020 = $ 30,600 * ( 3 /12 ) = $ 7,650.
b. Units of output
Depreciation per unit = ( $ 256,800 - $ 12,000 ) / 48,000 = $ 5.1
Depreciation for 2020 = 1,000 * $ 5.1 = $ 5,100.
c. Working hours.
Depreciation per hours = ( $ 256,800 - $ 12,000 ) / 20,400 = $ 12
Depreciation for 2020 = 600 * $ 12 = $ 7,200.
D. Sum of digits method
Sum of years = 8 ( 8 +1 ) / 2 = 36.
Year - 1 used ( 3 / 12 = 0.25)
Year-2 used ( 12 / 12 = 1 )
Remaining ( 8 - 1 - 0.25 = 6.75)
Depreciation for 2022 = ($ 256,800 - $ 12,000 ) * ( 6.75 / 36 )
Depreciation for 2022 = $ 45,900.
e. Double declining balance
Depreciation rate = 200 / 8 = 25 %.
Depreciation for 2020 = $256,800 * 25 % * (3 /12)
Depreciation for 2020 = $16,050.
Depreciation for 2021 = ( $256,800 - $ 16,050) * 25%
Depreciation for 2021 = $60,188.
3. Identify TWO possible suitable sources of external finance Chris could consider, if the local bank
manager refuses to give him a loan for purchasing a new van for his business. (10 marks)
Please help
Answer:
Hire Purchase
Loans from friends
Explanation:
Hire purchase
A hire purchase (HP) , is also called an installment plan, it is is an financing contract whereby a customer agrees to acquire an asset by paying an initial deposit and repays the balance of the price plus interest on installment bases over a period of time .
Loans from friends
These are loans received from friends which are mostly interest free