During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 80,000 mini refrigerators, of which 72,000 were sold. Operating data for the month are summarized as follows:
1 Sales $10,800,000.00
2 Manufacturing costs:
3 Direct materials $6,400,000.00
4 Direct labor 1,600,000.00
5 Variable manufacturing cost 1,280,000.00
6 Fixed manufacturing cost 320,000.00 9,600,000.00
7 Selling and administrative expenses:
8 Variable $1,080,000.00
9 Fixed 180,000.00 1,260,000.00
Required:
1. Prepare an income statement based on the absorption costing concept.*
2. Prepare an income statement based on the variable costing concept.*
3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).
* Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if required. Enter Inventory, August 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign.
Labels and Amount Descriptions
Labels
August 31
Cost of goods sold
Fixed costs
For the Month Ended August 31
Variable cost of goods sold
Amount Descriptions
Contribution margin
Contribution margin ratio
Cost of goods manufactured
Fixed manufacturing costs
Fixed selling and administrative expenses
Gross profit
Income from operations
Inventory, August 31
Loss from operations
Manufacturing margin
Planned contribution margin
Sales
Sales mix
Selling and administrative expenses
Total cost of goods sold
Total fixed costs
Total variable cost of goods sold
Variable cost of goods manufactured
Variable selling and administrative expenses
Absorption Costing Income Statement
Shaded cells have feedback.
1. Prepare an income statement based on the absorption costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if required. Enter Inventory, August 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative nmber using a minus sign.
Score: 64/64
Kodiak Fridgeration Company
Absorption Costing Income Statement

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Sales - (Cost of Goods Manufactured - Ending Inventory*) = Gross Profit; Gross Profit - Selling and Administrative Expenses = Income from Operations
* (Manufactured Units - Sold Units) x (Total Manufacturing Costs/Manufactured Units)
Variable Costing Income Statement
Shaded cells have feedback.
2. Prepare an income statement based on the variable costing concept. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading. A colon (:) will automatically appear if rquired. Enter Inventory, August 31 as a negative number using a minus sign. If a net loss is incurred, enter that amount as a negative number using a minus sign.
Score: 23/106
Kodiak Fridgeration Company
Variable Costing Income Statement

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Sales - Variable Cost of Goods Sold* = Manufacturing Margin; Manufacturing Margin - Variable Selling and Administrative Expenses = Contribution Margin; Contribution Margin - (Fixed Manufacturing Costs + Fixed Selling and Administrative Expenses) = Income from Operations.
*Variable Cost of Goods Sold = Variable Cost of Goods Manufactured - [(Manufactured Units - Sold Units) x (Variable Manufacturing Costs/Manufactured Units)]
Final Question
Shaded cells have feedback.
3. Explain the reason for the difference in the amount of income from operations reported in (1) and (2).
The income from operations reported under absorption costing exceeds the income from operations reported under variable costing by the difference between the two, due to fixed manufacturing costs that are deferred to a future month under absorption costing.

Answers

Answer 1

Answer:

1. Income statement based on the absorption costing concept.*

Sales                                                                                       $10,800,000.00

Less Cost of Goods Sold

Beginning Inventory                                         $0

Add Cost of Goods Manufactured           $9,600,000.00

Less Ending Inventory                                ($960,000.00) ($8,640,000.00)

Gross Profit                                                                             $2,160,000.00

Less Expenses :

Selling and administrative expenses:

Variable                                                      $1,080,000.00

Fixed                                                              $180,000.00  ($1,260,000.00)

Net Income/(loss)                                                                     $900,000.00

2. Income statement based on the variable costing concept.*

Sales                                                                                       $10,800,000.00

Less Cost of Goods Sold

Beginning Inventory                                         $0

Add Cost of Goods Manufactured           9,280,000.00

Less Ending Inventory                              ($928,000.00)   ($8,352,000.00)

Contribution                                                                             $2,448,000.00

Less Expenses :

Fixed manufacturing cost                            $320,000.00

Selling and administrative expenses:

Variable                                                      $1,080,000.00

Fixed                                                              $180,000.00  ($1,580,000.00)

Net Income/(loss)                                                                     $868,000.00

3. Reason

Fixed Costs that are deferred in Ending Inventory units under adsorption costing has resulted in absorption costing having a larger profit.

Explanation:

Production units             80,000

Less units Sold              (72,000)

Ending Inventory units     8,000

absorption costing calculations

Manufacturing Cost - absorption costing

                                                             $

Direct materials                         6,400,000.00

Direct labor                                 1,600,000.00

Variable manufacturing cost     1,280,000.00

Fixed manufacturing cost            320,000.00

Total Manufacturing Cost         9,600,000.00

Ending Inventory = 9,600,000.00 × 8,000/ 80,000

                             = $960,000

variable costing calculations

Manufacturing Cost - variable costing

                                                             $

Direct materials                         6,400,000.00

Direct labor                                 1,600,000.00

Variable manufacturing cost     1,280,000.00

Total Manufacturing Cost         9,280,000.00

Ending Inventory = 9,280,000.00 × 8,000/ 80,000

                             = $928,000


Related Questions

Match the qualitative characteristics below with the following statements.1. Timeliness2. Completeness3. Free from error4. Understandability5. Faithful representation6. Relevance7. Neutrality8. Confirmatory valuea. Quality of information that assures users that information represents the economic phenomena that it purports to represent.b. Information about an economic phenomenon that corrects past or present expectations based on previous evaluations.c. The extent to which information is accurate in representing the economic substance of a transaction.d. Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent.e. Quality of information that allows users to comprehend its meaning.

Answers

Answer:

1. Comparability.

2. Predictive value.

3. Free from error.

4. Completeness.

5. Faithful representation.

Explanation:

a. Comparability: Quality of information that assures users that information represents the economic phenomena that it purports to represent.

b. Predictive value: Information about an economic phenomenon that corrects past or present expectations based on previous evaluations.

c. Free from error: The extent to which information is accurate in representing the economic substance of a transaction.

d. Completeness: Includes all the information that is necessary for a faithful representation of the economic phenomena that it purports to represent.

e. Faithful representation: Quality of information that allows users to comprehend its meaning

Which of the following best defines a financial intermediary? a claim by a buyer to a future payment by a seller a collection of stocks and bonds issued to investors a financial institution that transforms investor funds into financial assets an asset sold by a company which entitles the buyer to partial ownership

Answers

Answer:

Option C (A financial.......assets) is the correct choice.

Explanation:

A financial intermediary seems to be an entity that serves as an intermediary seen between the listing agent as well as the buyer's transactions. They help convert investment properties, swap properties between producers and consumers, respectively. Therefore, a financial intermediary would be a finance company that converts capital instruments into investment capital.

Other decisions are given aren't connected to the results provided. So that is indeed the safest decision.

Brazil has a population of about 210​ million, with about 150 million over the age of 15. Of​ these, an estimated 25​ percent, or 37.5 million​ people, are functionally illiterate. The typical literate individual reads only about two nonacademic books per​ year, which is less than half the number read by the typical literate U.S. or European resident. Answer the following questions solely from the perspective of new growth​ theory:
Which of the following best explains the implications of​ Brazil's literacy and reading rates for its growth prospects in light of the key tenets of new growth theory.
A. Since economic growth is driven by international trade in technology and​ capital, if Brazil opens its​ borders, its literacy and reading rates will improve as the country experiences economic growth.
B. Since the development of human capital is an important determinant of economic​ growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.
C. Since it has been demonstrated that technological advancement and not human capital is the key determinant of economic​ growth, Brazil's literacy and reading rates should not affect its potential economic growth rate.
D. Since technologically advanced physical capital is necessary for economic​ growth, Brazil's literacy and reading rates suggests its economic growth rate will be lower because there are not enough skilled workers to operate sophisticated machinery.

Answers

Answer:

B)Since the development of human capital is an important determinant of economic​ growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.

Explanation:

From the question, we are informed about Brazil having a population of about 210​ million, with about 150 million over the age of 15. And Of​ these, an estimated 25​ percent, or 37.5 million​ people, are functionally illiterate, and also compare how the typical literate individual reads only about two nonacademic books per​ year, which is less than half the number read by the typical literate U.S. or European resident.

From the view of New growth theory,the option that explains the implications of​ Brazil's literacy and reading rates for its growth prospects is that Since the development of human capital is an important determinant of economic​ growth, Brazil's literacy and reading rates suggests its potential economic growth rate is lower.

New growth theory, which was attributed to Paul Romer, explains about Economic growth in the long run in related to internal factors of with knowledge as well as human capital. In this scenario Brazil should arrive to make sure the literacy rate among people is increased as possible

Product Director: We need to pick the best manager for the Prensabi software project. The project involves the latest technology and is very complicated. For example, this project uses a technology called Stage, which is a motion-capture technique that does not require actors to wear specialized gear to record their movements. Since this is a technical project that requires strong technical skills, we should pick the manager with the strongest technical skills. Executive: The manager needs some familiarity with the technology, but he or she won't actually be writing the software code. The bigger challenge here is to analyze the goals of the project and make sure that it is being developed according to a strong overall vision. That's why we should insist that the manager has outstanding conceptual skills. Which of the following, if true, weakens the product director's argument?
a) The project manager with the weakest technical skills also has the weakest human skills
b) The Prensabi project is so large that the project manager for the Prensab project will be unable to take on any other projects until the Prensabi project is inished.
c) The requirements of the Prensabi project are highly unusual.
d) The project manager with the strongest technical skills has no experience with
e) The project manager with the strongest conceptual skills has the weakest technical skills.

Answers

Answer:

The correct answer is: d) The project manager with the strongest technical skills has no experience with

Explanation:

Analyzing the scenario of the question above, it can be considered that the Project manager with the strongest technical skills has no experience with.

This would be the alternative that would weaken the argument of the product director, who says that the biggest challenge is to analyze the objectives of the project and make sure that it is being developed according to a strong overview. That is why we must insist that the manager has excellent conceptual skills.

Conceptual skills are those that allow the manager to have a total view of the organization in a systematic way, where there is experience to manage each part that integrates the organization in an effective way, conceptual skills are a set of knowledge and experiences for the decision making process decision-making is carried out in the best way.

Chance company had two operating divisions, one manufacturing farm equipment and other office supplies. Both divisions are considered separate components as defined by generally accepted accounting principles. The farm equipment component had been unprofitable, and on Sept. 1, 2016, the company adopted a plan to sell the assets of the division.
The actual sale was completed on Dec. 15, 2016, at the price of $600,000. The book value of the division's assets was $1,000,000, resulting in a before-tax loss of $400,000 on the sale. The division incurred a before-tax operating loss from operations of $130,000 from the beginning of the year through Dec. 15. The income tax rate is 40%. Chances after-tax income from its continuing operations is $350,000.
Required:
Prepare an income statement for 2016 beginning with income from continuing operations. Include appropriate EPS disclosures assuming that 100,000 shares of common stock were outstanding throughout the year.

Answers

Answer:

                             Chance Company

                               Income Statement

               For the Year Ended December 31, 2016

After tax income from continuing operations                      $350,000

Discontinued operations:

Operating income                                        ($130,000 )

Loss on disposal                                          ($400,000)

Income tax on discontinued operations      $212,000

Income from discontinued operations                                 ($318,000 )

Net income                                                                               $32,000

Earnings per share (100,000 outstanding shares)                     $0.32

Promises Made in Consideration of Marriage. After twenty-nine years of marriage, Robert and Mary Lou Tuttle were divorced. They admitted in court that before they were married, they had signed a prenuptial agreement. They both acknowledged that the agreement had stated that each would keep his or her own property and anything derived from that property. Robert came into the marriage owning farmland, while Mary Lou owned no real estate. During the marriage, ten different parcels of land, totaling about six hundred acres, were acquired, and two corporations, Tuttle Grain, Inc., and Tuttle Farms, Inc., were formed. A copy of the prenuptial agreement could not be found.

Required:
Can the court enforce the agreement without a writing? Why or why not?

Answers

Answer:

Explanation:

From the question, we are informed about Promises Made in Consideration of Marriage. And After twenty-nine years of marriage, Robert and Mary Lou Tuttle were divorced. They admitted in court that before they were married, they had signed a prenuptial agreement.

In this case with the rest information from the question, that A copy of the prenuptial agreement could not be found, then the court cannot enforce the agreement without a writing Prenuptial agreements.

Reason behind this is that a Prenuptial agreements can only be enforced if it is writing.Prenuptial agreements is usually signed before two people marry each other, so in case of death or divorce in the future, the ownership of their asset would have been defined.

Which of these is a way that politicians in the United States attempt to influence the media?

Answers

Answer:

They try to “spin” the news by manipulating

Explanation:

Answer:

Hope it helps

Explanation:

because they are tools that can be used to inform and mobilize users in new ways. Users are able to connect directly to politicians and campaign managers and engage in political activities in new ways.They try to "spin" the news by manipulating how reporters interpret events

Luke offered to sell his farm to Kent at $75,000, an offer which Kent declined. A week later, Luke offered to sell the farm for $65,000, stating that it was the final offer, it was valid for one month, and that he would not alter it. Two days later, Kent replied by saying that he was willing to pay $60,000 for the farm. A week after Luke received Kent's offer, Luke declined it. Ten days after that, Kent agreed to buy the farm for $65,000, but Luke refused to sell the farm. Kent decided to sue Luke for a breach of contract. The judge ruled in favor of Luke. Which one of the following is the reason for the ruling in Luke's favor?

a. Luke's original offer of $75,000 is still valid, even though rejected.
b. Kent acted in an incompetent manner with regards to the offer.
c. Kent's acceptance was past the set time period in the offer.
d. Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid.

Answers

Answer:

Option D

Explanation:

Kent's counteroffer of $60,000 had rendered the offer for $65,000 invalid

Reason- Whenever a counteroffer is made, it voids the earlier offers That's because real estate laws in all 50 states say that a seller who makes a written counteroffer automatically renders the buyer's original offer null and void.

Prepare an answer sheet with the column headings that follow. For each of the following transactions or adjustments, indicate the effect of the transaction or adjustment on assets, liabilities, and net income by entering for each account affected the account name and amount and indicating whether it is an addition (+) or a subtraction (-). Transaction a has been done as an illustration. Net income is not affected by every transaction. In some cases, only one column may be affected because all of the specific accounts affected by the transaction are included in that category.
Assest Liaabilities Net income

a. Recorded $200 Accumulated Depreciation

of depreciation Depreciation Expense

expense. -200 -200

a. Recorded $200 of depreciation expense.
b. Sold land that had originally cost $9,000 for $12,000 in cash.
c. Acquired a new machine under a financing lease.
d. The present value of future lease payments, discounted at 11%, was $11,000. Recorded the first annual payment of $2,500 for the leased machine (in part c).
e. Recorded a $6,600 payment for the cost of developing and registering a trademark. Recognized periodic amortization for the trademark (in part e) using a 40-year useful life. Sold used production equipment for $16,000 in cash.
f. The equipment originally cost $44,000, and the accumulated depreciation account has an unadjusted balance of $23,400.
g. It was determined that a $1,300 year-to-date depreciation entry must be recorded before the sale transaction can be recorded. Record the adjustment and the sale.

Answers

Answer:

             Accounts                Assets                           Liabilities     Net income

a. Depreciation Expense    -$200                                                  -$200

b. Land    / Cash                -$9,000 + $12,000                              + $3,000

c.   Equipment/Lease Liability +$11,000                 +$11,000

d.  Cash /Lease Liability         -$2,500                   -$2,500

e. Cash /Trademark             -$6,600 + $6,600

  Amortization Expense                                                                   -$165

f. & g. Cash /Equipment +$16,000 -$19,300                                -$3,300

                         

Explanation:

b. The land was sold with a gain of $3,000 ($12,000 - 9,000)

e. The trademark's amortization expense = $6,600/40 = $165 per year.

f and g. The Accounts involved are:

1. Cash +$16,000 for the sale.

2. Equipment has a debit balance of $44,000 and a credit balance of $23,400 plus Depreciation expense of $1,300.  These give a net balance of $19,300.  The equipment was sold for $16,000, recording a loss of $3,300.

3. Loss from sale of equipment = $3,300 as determined above.

when the fed acts as a lender of last resort like it did in the financial crisis of 2007, it is performing its role of

Answers

Answer: C: being the bankers' bank.

Explanation:

The Fed is the Central Bank system of the United States. This means that they have certain duties conferred on them in order to ensure that the financial system of the country does not fail.

One of those duties is to be the Bankers' Bank. This means that the Fed can loan money to Commercial banks just like how Commercial banks do to entities. In acting as the lender of last resort and loaning money to banks so that they could survive the 2007 Financial crises, the Fed was acting as the Bank for the banks.

coomer co had net sales of 600000 net income of 35260 and average total assets of 680000 what is the return on total assets

Answers

Answer:Return on Total assets ==5.19%

Explanation:

Return on Total assets shows  one the idea of the  profitability of  a company's assets in generating revenue before  interest and taxes. it is expressed in percentage and its formula is given as

Return on Assets = Net Income (Earning before interest and taxes) / Average total assets

                        = 35,260/ 680,000 = 0.05185 x 100

                        =5.19%

Answer:

coomer heehee

Explanation:

If the cross-price elasticity of demand between Good A and Good B is 3, the price of Good B increases, and the price elasticity of demand for Good B is inelastic, we can expect to see a(n) ________ change in the quantity demanded for Good A. Group of answer choices

Answers

Answer:

INCREASE

There are no options available, but since the cross price elasticity of demand is positive, that means that goods A and B are substitute products. An increase in the price of good B will increase the quantity demanded for good A. If the cross price elasticity had been negative, then they would be complement goods, and an increase in the price of one of them would decrease the quantity demanded of both.

Eduardo has been reading about the use of drone technology in recent military conflicts and is not quite sure what to think. On the one hand, the use of drones means that military missions can be executed without putting American lives at risk. On the other hand, this very fact means that our political leaders might be quicker to resort to military solutions when other solutions might be available. Eduardo is also concerned about other effects of fully mechanized battle operations. For instance, unlike a human soldier, a drone can neither hear nor sympathize with a mother pleading for the life of her innocent child. Eduardo has decided to research the topic of military drones in more detail and write an essay in which he decides whether the use of drone technology is a positive or negative development in the history of American military action. Which type of argument will Eduardo be making?

a. Argument of fact
b. Argument of definition
c. Argument of evaluation
d. Policy argument

Answers

Answer:

c. Argument of evaluation

Explanation:

Eduardo will be making a decision on "whether the use of drone technology is a positive or negative development in the history of American military action."  This is a judgement call.  And he will be determining whether or not drone usage is good or bad.  So this is purely an argument of evaluation.  The argument is not of fact or definition or a policy argument, but one in which he will establish his opinion on the issue of the use of drone technology in the military.

Triec, Inc., is a small electrical contracting company in Springfield, Ohio, owned by its executives Yeazell, Jones, and Heaton. Employees contacted the International Brotherhood of Electrical Workers, which began an organizing drive, and 6 of the 11 employees in the bargaining unit signed authorization cards. The company declined to recognize the union, which petitioned the NLRB to schedule an election. The company then granted several new benefits for all workers, including higher wages, paid vacations, and other measures. When the election was held, only 2 of the 11 bargaining unit members voted for the union. Did the company violate the NLRA?

Answers

Answer:

Triec, inc., violated the National Labor Relations Act (NLRA) because it directly interfered with the organization of a union within the company.

The NLRA allows private employees to join or form a union, and the company cannot interfere in any of these. E.g. a company cannot fire or punish in any way an employee for joining a union. A company cannot interfere with the creation of a union.

In this case, the company granted the new benefits in order to convince its workers to not form the union.

Global strategic planning is a primary function of a company's managers, and the process of strategic planning provides a formal structure for undertaking this process. Companies are confronting a set of environmental forces that are increasingly complex, global, and subject to rapid change. In response, many international firms have found it necessary to institute formal global strategic planning to provide a means for top management to identify opportunities and threats from all over the world.

Required:
Formulate strategies to handle them, and stipulate how to finance and manage the implementation of these strategies?

Answers

Answer and Explanation:

The steps in global strategic planning include

Review or develop Vision & Mission: business aims to understand what its vision and mission is, reviewing one already there or developing a new one based on the current business environment and changes

Business and operation analysis. Here the business aims to understand it's environment in terms of it strengths and weaknesses internally and externally

Develop Strategic Options: business looks to find all strategic options available and weighs options to select best strategy on the basis of its business and operation analysis to understand strategy to tackle the current business situation

Establish Strategic Objectives: strategy objectives are developed to tackle new business environment

Strategy Execution Plan: the execution plan involves an effective plan that can duly implemented

Establish Resource Allocation: resources are allocated to execute the global strategic plan

Execution Review: execution is reviewed and quantified to see if the plan is being met

Read the following sentences, and identify the error.

a. Paolo recruited job applicants for the company that showed promise.

The error in this sentence is a:_________ .

b. We will be visiting our accounts in California, Oregon, and visiting our accounts in Washington.

The error in this sentence is a:________ .

Before you decide whether to use passive or active voice, you should consider the purpose of your message and the nature of the situation. Read the scenario, and then fill in the blanks.

You work for a printing company, and you realize that your colleague sent incorrect price quotes to a client. You begin to write an e-mail to the client to apologize for the mistake. You want to remedy the situation without criticizing your colleague. The sentence excerpted from the e-mail uses ______________ voice. Given the purpose of your message, this voice ___________ appropriate.

Answers

Answer:

a. Paolo recruited job applicants for the company that showed promise.

The error in this sentence is a: AMBIGUITY.    

Who showed promise? The company or the job applicants? This sentence is not specific and you really cannot tell whether the job applicants or the company showed promise.

b. We will be visiting our accounts in California, Oregon, and visiting our accounts in Washington.

The error in this sentence is a: LACK OF PARALLELISM.

In order to show parallelism you should include the dates of the visits, since you cannot visit all 3 states in the same day and do your work properly.

You work for a printing company, and you realize that your colleague sent incorrect price quotes to a client. You begin to write an e-mail to the client to apologize for the mistake. You want to remedy the situation without criticizing your colleague.

The sentence is missing, so I looked for a similar question:

"Bill made an error when he was processing your invoice."

The sentence excerpted from the e-mail uses ACTIVE voice. Given the purpose of your message, this voice IS NOT appropriate.

The whole purpose of this message is to solve a problem without criticizing Bill, but by using active voice, you are directly criticizing him.

Leonard, a company that manufactures explosionproof motors, is considering two alternatives for expanding its international export capacity. Option 1 requires equipment purchases of $900,000 now and $560,000 two years from now, with annual M&O costs of $79,000 in years 1 through 10. Option 2 involves subcontracting some of the production at costs of $280,000 per year beginning now through the end of year 10. Neither option will have a significant salvage value.

Required:
Use a present worth analysis to determine which option is more attractive at the company’s MARR of 20% per year. (Note: Check out the spreadsheet exercises for new options that Leonard has been offered recently.)

Answers

Answer:

Since the total present value of Option 2 of – $1,453,892 is lower than the total present value of Option 1 of – $1,620,094, it implies that Option 2 costs less and more attractive at the company’s MARR of 20% per year than Option 1. Therefore, Option 2 should be selected.

Explanation:

Note: See the attached excel file for the calculation of the total present values (in bold red color) of the two alternatives for expanding international export capacity.

Present worth can be described as an equivalence method of analysis in which the cash flows of an investment or a project are discounted to a single present value.

From the attached excel file, we have:

Total present value of Option 1 = – $1,620,094

Total present value of Option 2 = – $1,453,892

Since the total present value of Option 2 of – $1,453,892 is lower than the total present value of Option 1 of – $1,620,094, it implies that Option 2 costs less and more attractive at the company’s MARR of 20% per year than Option 1. Therefore, Option 2 should be selected.

I WILL GIVE BRAINLIEST

Lean and Six Sigma models contradict one another,
True
False

Answers

True................................

Connors Corporation acquired manufacturing equipment for use in its assembly line. Below are four independent situations relating to the acquisition of the equipment. (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.)
A. The equipment was purchased on account for $25,000. Credit terms were 2/10, n/30. Payment was made within the discount period and the company records the purchases of equipment net of discounts.
B. Connors gave the seller a noninterest-bearing note. The note required payment of $27,000 one year from date of purchase. The fair value of the equipment is not determinable. An interest rate of 10% properly reflects the time value of money in this situation.
C. Connors traded in old equipment that had a book value of $6,000 (original cost of $14,000 and accumulated depreciation of $8,000) and paid cash of $22,000. The old equipment had a fair value of $2,500 on the date of the exchange. The exchange has commercial substance.
D. Connors issued 1,000 shares of its nopar common stock in exchange for the equipment. The market value of the common stock was not determinable. The equipment could have been purchased for $24,000 in cash.
Required:
For each of the above situations, prepare the journal entry required to record the acquisition of the equipment.

Answers

Answer:

Entries and their narrations are posted below

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

Journal Entries  

                                                      Debit             Credit

A. The equipment was purchased on account for $25,000.

Equipment                             $25,000

Accounts Payable                                          $25,000

B. Connors gave the seller a noninterest-bearing note. The note required payment of (27,000 x 1/(1+10%)

Equipment                             $24,545

Discount on Notes Payable        $2,455

Note Payable                                                   $27,000

C. Connors traded in old equipment that had a book value of $6,000

Equipment New                           $24,500

Accumulated Depreciation          $8,000

Loss on Equipment                $3,500

Cash                                                                $22,000

Equipment Old                                               $14,000

D.Connors issued 1,000 shares of its nopar common stock in exchange for the equipment

Equipment                                  $24,000

Common Stock                                             $24,000

Alpha Inc. has receivables from unrelated parties with a face value of $5,000. It transfers these receivables to bank for $4,500, without recourse. It will continue to collect the receivables, depositing them in a non-interest-bearing bank account with the cash flows remitted to the bank at the end of each month. It is not allowed to sell or pledge the receivables to anyone else and is under no obligation to repurchase the receivables from bank. Which of the following is the appropriate treatment for these Accounts receivables?
A) It should show these receivables in its Balance Sheet.
B) It should amortize these receivables.
C) It should derecognize these receivables.
D) It should derecognize these receivables if it retains the interest earned on these.

Answers

Answer:

C). It should derecognize these receivables.

Explanation:

Derecognition is characterized as the process of removing or derecognizing a financial asset or liability from the company's balance sheet that was previously acknowledged. In the given situation, the appropriate treatment for the Account receivables would be to dercognize it as the organization does not possess any control over them. Thus, option C is the correct answer.

Kirkwood acquires 100 percent of the outstanding voting shares of Soufflot Company on January 1, 2018. To obtain these shares, Kirkwood pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Kirkwood's stock had a fair value of $36 per share on that date. Kirkwood also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Kirkwood in stock issuance costs.

The book values for both Kirkwood and Souflout as of January 1, 2018 follow. The fair value of each of Kirkwood and Soufflot accounts is also included. In addition, Soufflot holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands.


Kirkwood Inc Book Value Fair Value
Cash 900 80 80
Receivables 480 180 160
Inventory 660 260 300
Land 300 120 130
Buildings (net) 1,200 220 280
Equipment 360 100 75
Accounts payable 480 60 60
Long-term liabilities 1,140 340 300
Common stock 1,000 80
Additional paid-in capital 200 0
Retained earnings 1,080 480


Required:
What amount will be reported for consolidated cash after the acquisition is completed?

Answers

Answer:

$555,000

Explanation:

Calculation for the amount that will be reported for consolidated cash after the acquisition is completed

Cash at Kirkwood Inc $475,000

(900-400-15-10)

Add Cash at Soufflot Company $80,000

Consolidated cash after acquisition is completed $555,000

Therefore the amount that will be reported for consolidated cash after the acquisition is completed will be $555,000

Department Alpha had no beginning inventory. The department added direct materials costing $55,040 and conversion costs of $88,660 during the month of July. Materials are added at the beginning of the process and conversion costs are added evenly throughout the process in this department. During the month, 40,000 units were completed. At the end of July, 3,000 units remained which were 10% complete with respect to conversion costs. What is the correct cost per equivalent unit for materials for July?

Answers

Answer:

Cost per equivalent unit of materials = $1.28

Explanation:

Materials Cost = $55,040

Number of completed units = 40,000

Total units for material = 40,000 + 3,000 = 43,000 units  

Cost per equivalent unit of materials = $55,040 / 43,000

Cost per equivalent unit of materials = $1.28

The company's mission statement tells us...

Answers

Answer:

A company  mission statement defines what an organization is, why it exists, its reason for being. At a minimum, your mission statement should define who your primary customers are, identify the products and services you produce, and describe the geographical location in which you operate.

Explanation:

Hope this helps

Which are possible employers in the Financial career cluster? Check ALL that apply.

A. private company
B. government
C. nonprofit organization
D. bank
E. stock market

Answers

The correct option is B and D.

What is the Finance Career Cluster?

The Finance Career Cluster prepares students for careers in financial and investment planning, banking, insurance, and business financial management. Finance career opportunities are available in every sector of the economy and require skills in organization, time management, customer service, and communication.

What are the four career pathways in finance?

The four career pathways in the finance cluster are banking and related services, business financial management, financial and investment planning, and insurance services.

Learn more about finance here https://brainly.com/question/1279044

#SPJ2

Westerville Company accumulates the following data concerning a mixed cost, using units produced as the activity level.


Units Produced Total Cost

March 10,029 $16,724
April 8,765 15,312
May 10,480 17,492
June 8,600 14,860
July 9,293 15,781

Required:
a. Compute the variable cost per unit using the high-low method.
b. Compute the fixed cost elements using the high-low method.
c. Estimate the total cost if the company produces 8,170 units.

Answers

Answer & Explanation:

a. Using the high-low method, Variable cost per unit is;

[tex]= \frac{Highest Variable Cost - Lowest Variable Cost}{Highest number of units - Lowest number of Units} \\\\= \frac{17,492 - 14,860}{10,480 - 8,600} \\\\= $1.40[/tex]

= $1.40

b. Fixed Cost

= Total Cost at lowest unit - Variable costs at lowest unit

= 14,860 - (1.4 * 8,600)

= $‭2,820‬

c. Variable cost at 8,170 units + Fixed cost

= (8,170 * 1.4) + 2,820

= $‭14,258‬

Money is to an economy what language is to communication. What does this statement mean?

Answers

Answer:

i think it means that you need money to have an economy and you also need a language to be able to talk to someone

Explanation:

Which of the following is not a true statement about filing bankruptcy? a. Bankruptcy erases all of your debt. b. It is possible to rebuild your credit after filing bankruptcy. There are exemptions that alloW you to keep essentials. d. Bankruptcy stops aggressive action by creditors ​

Answers

The statement that is not true about bankruptcy is that Bankruptcy erases all of your debt. Option A is correct.

What is bankruptcy?

Bankruptcy is a legal process or procedure that involves a person or business that is unable to repay its outstanding debts.

The bankruptcy methodology starts with a requisition or petition that is pointed by the debtor, which is most expected, or on behalf of creditors, and which is less common.

After filing bankruptcy, it is possible to rebuild credit after filing bankruptcy of a debtor, and there are certain waivers that allow maintaining the requirements.

Bankruptcy prevents assertive action by creditors, ​and it does not mean that it erases all of your debt.

Therefore, option A is correct.

Learn more about bankruptcy, refer to:

https://brainly.com/question/1142634

Answer:

A

Explanation:

Which of the following is not a true statement about filing bankruptcy?

a.

Bankruptcy erases all of your debt.

b.

It is possible to rebuild your credit after filing bankruptcy.

c.

There are exemptions that allow you to keep essentials.

d.

Bankruptcy stops aggressive action by creditors.

 

A

You call a coworker to see if they can come help you solve a problem

Answers

yes/true/correct/not false

What cycle time (in minutes) would match capacity and demand if demand is 100 units per day, there are two 8 hour shifts with 3 worker(s) each, and each worker gets two 18 minute breaks and one 40 lunch.

Answers

Answer:

24.24 minutes

Explanation:

The computation of the cycle time is shown below:

As we know that

Cycle time is

= Time ÷ quantity demanded

where,

Time is

= Total time - break time

= (no of workers × no of shifts × hours per shift) - (no of workers × no of shifts × 2 × short shifts + lunch break)

= (3 × 2 × 8 × 60 minutes) - (3 ×2 × (2 × 18) + 40)

= 2,880  - 456

= 2,424 minutes

And, the demand is 100

Now the cycle time is

= 2,424 ÷ 100

= 24.24 minutes

Appendix 1: Gross and net methods for sales discounts
The following were selected from among the transactions completed by Strong Retail Group during August of the current year:
Aug. 5. Sold merchandise on account to M. Quinn, $7,500, terms 2/10, n/30. The
cost of the merchandise sold was $4,200.
9. Sold merchandise on account to R. Busch., $4,000, terms 1/10, n/30. The
cost of the merchandise sold was $2,100.
15. Received payment on account for the sale of August 5 less the discount.
20. Sold merchandise on account to S. Mooney, $6,000, terms n/eom. The
cost of the merchandise sold was $3,300.
25. Received payment on account for the sale of August 9. 31.Received
payment on account for the sale of August 20.
A. Journalize the August transactions using the gross method of recording sales discounts.
Aug. 5 Accounts Receivable-M. Quinn 7,500
Sales 7,500
Cost of Goods Sold 4,200
Inventory 4,200
Accounts Receivable-R. Busch 4,000
Sales 4,000
Cost of Goods Sold 2,100
B. Journalize the August transactions using the net method of recording sales discounts.

Answers

Answer: Check attachment

Explanation:

A . Journalize the August transactions using the gross method of recording sales discounts

Kindly check the attachment for the solution.

B. Journalize the August transactions using the net method of recording sales discounts.

Check attachment.

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