For each of the following transactions for New Idea Corporation, give the accounting equation effects of the adjustments required at the end of the month on July 31: (Enter any decreases to Assets, Liabilities, or Stockholders' Equity with a minus sign)
a. Received a $550 utility bill for electricity usage in July to be paid in August.
b. Owed wages to 10 employees who worked three days at $75 each per day at the end of July. The company will pay employees at the end of the first week of August.
c. On July 1, loaned money to an employee who agreed to repay the loan in one year along with $900 for one full year of interest. No interest has been recorded yet.

Answers

Answer 1

Answer and Explanation:

The accounting equation effects of the adjustments required at the end of the month on July 31 is shown below:-

Transactions   Assets = Liabilities             +      Stockholder's equity

a                                     Utilities payable $550    Utilities expenses -$550

b                                     Wages payable $2,250 Wages expense -$2,250

                                            (3 × $75 × 10)  

c   Interest receivable $450                                 Interest revenue $450

        ($900 ÷ 2)

Explanation:-

a. The adjustment of the utilities would be recognized in the equation of accounting by rising the liability that is utilities payable and falling the equity that is utility expense.

b. The adjustment of the wages would be recognized in the equation of accounting by rising the liability that is wages payable and falling the equity that is wages expense.

c. The adjustment of the interest would be recognized in the equation of accounting by rising the assets that is interest receivable and falling the equity that is interest revenue.


Related Questions

Blossom Corp is issuing a 10-year bond with a coupon rate of 11 percent. The interest rate for similar bonds is currently 7 percent. Assuming annual payments, what is the value of the bond

Answers

Answer:

$1,280.94

Explanation:

FV= $1000

PMT = 11% * $1000  = $110

N = 10 Years

I/Y = 7%

Using Excel, Present value of bond ($1,000, $110, 10, 7%) = $1280.9433

Hence, the present value of bond = $1,280.94

Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.

Date Transactions Units Unit Cost Total Cost
March 1 Beginning inventory 20 $230 $4,600
March 5 Sale ($360 each) 15
March 9 Purchase 10 250 2,500
March 17 Sale ($410 each) 8
March 22 Purchase 10 260 2,600
March 27 Sale ($435 each) 12
March 30 Purchase 8 280 2,240

For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.

Required:
a. Calculate ending inventory and cost of goods sold at March 31, 2015, using the specific identification method. The March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes
from beginning inventory and eight bikes from the March 22 purchase.
b. Using FIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
c. Using LIFO, calculate ending inventory and cost of goods sold at March 31, 2015.
d. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31, 2015.(Round your intermediate and final answers to 2 decimal places.)
e. Calculate sales revenue and gross profit under each of the four methods.

Answers

Answer:

Greg's Bicycle Shop

Ending Inventory:

a. Specific Identification:

Beginning inventory 1 * $230 = $230

March 9 purchase  2 *  $250 =  500

March 22 purchase 2 * $260 = 520

March 30   Purchase 8 * $280 =2,240

Total value of inventory 13 units = $3,490

Cost of goods sold = Cost of goods available for sale Minus Ending Inventory

= $11,940 - $3,490

= $8,450

b. FIFO:

March 22   Purchase     5   260     1,300

March 30   Purchase     8   280    2,240

Ending Inventory          13           $3,540

Cost of goods sold = Goods available for sale Minus Ending Inventory

= $11,940 - $3,540

= $8,400

c. LIFO:

Ending Inventory:

March 1  Inventory     13    $230         $2,990

Cost of goods sold = Goods available for sale Minus Ending Inventory

= $11,940 - $2,990

= $8,950

d) Weighted -Average Cost:

Ending Inventory = $248.75 * 13 = $3,233.75

Cost of Goods Sold = $248.75 * 35 = $8,706.25

                                      Specific          FIFO         LIFO         Weighted

                                Identification                                           Average

Sales                           $13,900       $13,900      $13,900       $13,900.00

Cost of goods sold        8,450           8,400         8,950         $8,706.25

Gross profit                 $5,450         $5,500      $4,950          $5,193.75

Explanation:

Dat and Calculations:

Shop uses periodic inventory system

Date           Transactions               Units      Unit Cost    Total Cost   Total

March 1      Beginning inventory     20          $230         $4,600       Sales

March 5     Sale ($360 each)                   15   $360                          $5,400

March 9     Purchase                       10            250           2,500

March 17    Sale ($410 each)                   8     $410                           $3,280

March 22   Purchase                      10            260           2,600

March 27   Sale ($435 each)                12     $435                         $5,220

March 30   Purchase                      8             280           2,240

Total Goods available for sale     48   35                     $11,940   $13,900

Ending Inventory = 13 (48 - 35)

Weighted average cost = Cost of goods available for sale/Units of Goods available for sale

= $11,940/48 = $248.75

Specific Identification:

March 5 sale 15 consists of bikes from 15 beginning inventory Bal 5 - 4 = 1

March 17 sale 8 consists of bikes from the March 9 purchase  Bal  = 2

March 27 sale 12 consists of four bikes from beginning inventory and eight bikes from the March 22 purchase Bal  = 2

Ending Inventory:

Specific Identification:

Beginning inventory 1 * $230 = $230

March 9 purchase  2 *  $250 =  500

March 22 purchase 2 * $260 = 520

March 30   Purchase 8 * $280 =2,240

Total value of inventory 13 units = $3,490

FIFO:

March 22   Purchase     5   260     1,300

March 30   Purchase     8   280    2,240

Ending Inventory          13           $3,540

LIFO:

March 1      Beginning inventory     13    $230         $2,990

Weighted-Average Costs:

Ending Inventory = $248.75 * 13 = $3,233.75

Cost of Goods Sold = $248.75 * 35 = $8,706.25

At the end of each of the next four years, a new machine is expected to generate net cash flows of $8,000, $12,000, $10,000, and $15,000, respectively. What are the cash flows worth today if a 3% discount rate is appropriate

Answers

Answer:

Total PV= $41,556.88

Explanation:

Giving the following information:

Cash flows:

1= $8,000

2= $12,000

3= $10,000

4= $15,000

Interest rate= 3%

To calculate the present value, we need to use the following formula on each cash flow:

PV= FV/(1+i)^n

PV1= 8,000/1.03= 7,767

PV2= 12,000/1.03^2= 11,311.15

PV3= 10,000/1.03^3= 9,151.42

PV4= 15,000/1.03^4= 13,327.31

Total PV= $41,556.88

Darden Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 21,400 units in its beginning work in process inventory that were 10% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $24,700. An additional 101,000 units were started into production during the month. There were 34,000 units in the ending work in process inventory of the Welding Department that were 70% complete with respect to conversion costs. A total of $853,880 in conversion costs were incurred in the department during the month. The cost per equivalent unit for conversion costs for the month is closest to:_______
a. $8.486
b. $9.965
c. $8.738
d. $9.200

Answers

Answer:

$7.830

Explanation:

Calculation for the cost per equivalent unit for conversion costs for the month

First step is to compute for the Unit transferred out =

Unit transferred out = 21,400+101,000-34,000

Unit transferred out = 88,400

Second step is to compute for the Equivalent unit of conversion

Equivalent unit of conversion = 88,400+(34,000*70%)

Equivalent unit of conversion = 88,400+23,800

Equivalent unit of conversion = 112,200

Last step is to compute for the Cost per equivalent unit of conversion

Cost per equivalent unit of conversion = (24,700+853,880)/112,200 = 7.931

Cost per equivalent unit of conversion = 878,580/112,200

Cost per equivalent unit of conversion = $7.830

Therefore the cost per equivalent unit for conversion costs for the month is closest to $7.830

Your firm has taken out a loan with APR​ (compounded monthly) for some commercial property. As is common in commercial real​ estate, the loan is a ​-year loan based on a ​-year amortization. This means that your loan payments will be calculated as if you will take years to pay off the​ loan, but you actually must do so in years. To do​ this, you will make equal payments based on the ​-year amortization schedule and then make a final 60th payment to pay the remaining balance.
A. What will your monthly payments be?
B. What will your final payment be?

Answers

Answer:

Hello some parts of your question is missing below is the complete question

Your firm has taken out a $500000 loan with 9% APR​ (compounded monthly) for some commercial property. As is common in commercial real​ estate, the loan is a five​-year loan based on a 15​-year amortization. This means that your loan payments will be calculated as if you will take 15 years to pay off the​ loan, but you actually must do so in five years. To do​ this, you will make 59 equal payments based on the 15 ​-year amortization schedule and then make a final 60th payment to pay the remaining balance.

answer : A) $5071.33

              B ) $405410.94

Explanation:

A )calculate monthly payments

Loan amount = $500000

Rate = 9%

Monthly rate =  ( 9% / 12 )= 0.75%

Time / period = (15years* 12 ) = 180 months

calculate the monthly payments =PMT (monthly rate ,period - rate) ( using excel )

= $5071.33

B) Calculate the final payment

PV for 59 payments + PV for 60th payment = loan amount

first we calculate the PV for 59 payments

monthly payments = $5071.33

period = 59 months

monthly rate = 0.75%

PV for 59 payments = PMT( monthly rate, period, - monthly payments ) (using excel )  

= $241,064.16

Hence PV for The final payment = loan amount - PV for 59 payments

                                                     = 500000 - 241064.16 = $258,935.84

Finally Calculate the Final payment

PV = $258935.84

monthly rate = 0.75%

period = 60 months

Final payment ( future value ) =FV( monthly rate, period,, - PV ) ( using excel)

= $405410.94

Rivera Company has several processing departments. Costs charged to the Assembly Department for November 2020 totaled $2,283,744 as follows.
Work in process, November 1 Materials $78,600 Conversion costs 48,700 $127,300 Materials added 1,592,280 Labor 225,100 Overhead 339,064 Production records show that 35,200 units were in beginning work in process 30% complete as to conversion costs, 661,000 units were started into production, and 25,400 units were in ending work in process 40% complete as to conversion costs. Materials are entered at the beginning of each process.
(a) Determine the equivalent units of production and the unit production costs for the Assembly Department.
(Round unit costs to 2 decimal places, e.g. 2.25.)
Materials Conversion Costs
Equivalent Units
Cost per unit $ $
(b) Determine the assignment of costs to goods transferred out and in process.
(c) Prepare a production cost report for the assembly dept.

Answers

Answer:

a.

Equivalent Units : Materials = 696,200 units and  Conversion Costs = 680,960 units

Cost per unit : Materials = $2.40 and  Conversion Costs = $0.90

b.

goods transferred out =  $2,213,640

goods in process = $70,104

c.

Production cost report for the assembly department

Inputs :

Opening Balance                                     $127,300

Costs added during the year :

Materials                                                $1,592,280

Labor                                                        $225,100

Overhead                                               $ 339,064

Total Costs                                            $2,283,744

Outputs :

Completed and Transferred Out         $2,213,640

Ending Work In Process                            $70,104

Total Costs                                           $2,283,744

Explanation:

First, calculated the number of units completed and transferred to finished goods.

Number of units completed and transferred = Beginning Inventory Units + Units Started during the period - Ending Inventory Units

Number of units completed and transferred = 35,200 units + 661,000 units -  25,400 units

                                                                         = 670,800 units

Calculation of Equivalent Units of Production with Respect to Raw Materials and Conversion Costs.

1. Materials

Ending Work In Process (25,400 × 100%)                                       =   25,400

Completed and Transferred (670,800 × 100%)                              = 670,800

Equivalent Units of Production with Respect to Raw Materials     = 696,200

2. Conversion Costs

Ending Work In Process (25,400 × 40%)                                         =    10,160

Completed and Transferred (670,800 × 100%)                              = 670,800

Equivalent Units of Production in Conversion Costs                     = 680,960

Calculation of Total Unit Cost

Unit Cost = Total Costs ÷ Total Equivalent Units

1. Materials

Unit Cost = ($78,600 + $1,592,280) ÷ 696,200

                = $2.40

2. Conversion Costs

Unit Cost = ($48,700 + $225,100 + $339,064 ) ÷ 680,960

                = $0.90

3. Total Unit Cost

Total Unit Cost = Materials + Conversion Costs

                         = $2.40 + $0.90

                         = $3.30

Calculation of costs assigned to goods transferred out and in process.

Goods transferred out = Units completed and transferred × total unit cost

                                      = 670,800 × $3.30

                                      = $2,213,640

Units in Process = Material Costs + Conversion Cost

                            = (25,400 × $2.40) + (10,160 × $0.90)

                            = $70,104

Help me please!!!!
Explain possible circumstances under which an adult child may
have undue influence in a relationship with an elderly parent.

Answers

Answer:

i think seeing their grand parent arguing with a parent, probably would make them question a lot, and they might evem stay away from them for a while, though, i may have took your question wrong, very sorry

Explanation:

if your meaning a situation where the child either wants to get away from them or they feel apart from them, this might help.

Twelve​ samples, each containing five​ parts, were taken from a process that produces steel rods at Emmanual​ Kodzi's factory. The length of each rod in the samples was determined. The results were tabulated and sample means and ranges were computed. The results​ were:
Sample Sample Mean​ (in.) Range​ (in.) Sample Sample Mean​ (in.) Range​ (in.)
1 11.204 0.033 7 11.201 0.041
2 11.204 0.041 8 11.203 0.034
3 11.189 0.034 9 11.197 0.027
4 11.208 0.051 10 11.201 0.029
5 11.195 0.031 11 11.201 0.039
6 11.197 0.036 12 11.206 0.047
For the given​ data, the x ​= nothing inches ​(round your response to four decimal​ places).
Based on the sampling​ done, the control limits for ​3-sigma x chart​ are:
Upper Control Limit ​(UCLx​) ​= nothing inches ​(round your response to four decimal​ places).
Lower Control Limit ​(LCLx​) ​= nothing inches ​(round your response to four decimal​ places).
Based on the x​-chart, is one or more samples beyond the control​ limits? ▼ Yes No .
For the given​ data, the R ​= nothing inches ​(round your response to four decimal​ places).
The control limits for the ​3-sigma​ R-chart are:
Upper Control Limit ​(UCLR​) ​= nothing inches ​(round your response to four decimal​ places).
Lower Control Limit ​(LCLR​) ​= nothing inches ​(round your response to four decimal​ places).
Based on the​ R-chart, is one or more samples beyond the control​ limits? ▼ Yes No .

Answers

Full question attached

Answer and Explanation:

Answer and explanation attached

During job interviews, potential employers often ask candidates to describe a time where they have demonstrated their initiative and/or results driven skills. This week, you’ll have a chance to practice.

In paragraph 1, describe a time at work, home, or school where there was a problem and you took the initiative to solve that problem and to seek results on your own.

In paragraph 2, explain how the process went and describe the solution that you developed.

Answers

Answer:

During a pandemic everyone and everything is crazy and it hasn't gone very for me at work or at home. I guess that's why they say it's best for you stay home and quaretine for days because of a test that came back positive.

Explanation:

A machine with a useful life of six years and a residual value of $3,000 was purchased at the beginning of year 1 for $30,000. The machine was sold for $15,000 on April 1 in year 4. a. What was the book value of the machine at the end of year 3 assuming the straight-line method of depreciation is used

Answers

Answer:

Book value= $16,500

Explanation:

Giving the following information:

Useful life= 6 years

Purchase value= $30,000

Residual value= $3,000

First, we need to calculate the annual depreciation using the straight-line method:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (30,000 - 3,000) / 6

Annual depreciation= $4,500

Now, the accumulated depreciation at the end of year 3:

Accumulated depreciation= 3*4,500= $13,500

Finally, the book value:

Book value= purchase price - accumulated depreciation

Book value= 30,000 - 13,500

Book value= $16,500

Brace Corporation uses direct labor-hours in its predetermined overhead rate. At the beginning of the year, the estimated direct labor-hours were 21,600 hours. At the end of the year, actual direct labor-hours for the year were 20,400 hours, the actual manufacturing overhead for the year was $506,920, and manufacturing overhead for the year was underapplied by $23,440. The estimated manufacturing overhead at the beginning of the year used in the predetermined overhead rate must have been:_________
A. $501,920
B. $531,445
C. $483,480
D. $511,920

Answers

Answer:

D. $511,920

Explanation:

For determining the estimated manufaturing overhead first determined the predetermined overhead which is shown below:

= (Actual manufacturing overhead - underapplied overhead) ÷ (actual direct labor hours)

= ($506,920 - $23,440) ÷ (20,400 hours)

= $23.7

Now the estimated manufacturing overhead is

= $23.7 × 21,600 hours

= $511,920

Bradford Services Inc. (BSI) is considering a project that has a cost of $10 million and an expected life of 3 years. There is a 30 percent probability of good conditions, in which case the project will provide a cash flow of $9 million at the end of each year for 3 years. There is a 40 percent probability of medium conditions, in which case the annual cash flows will be $4 million, and there is a 30 percent probability of bad conditions and a cash flow of -$1 million per year. BSI uses a 12 percent cost of capital to evaluate projects like this.

Required:
a. Find the project's expected cash flows and NPV.
b. Now suppose the BSI can abandon the project at the end of the first year by selling it for $6 million. BSI will still receive the Year 1 cash flows, but will receive no cash flows in subsequent years. Assume the salvage value is risky and should be discounted at the WACC.

Answers

Answer:

a) expected cash flow per year (same for all 3 years) = (30% x $9 million) + (40% x $4 million) + (30% x -$1 million) = $4 million

initial outlay = $10 million

discount rate = 12%

NPV = -$10 + $4/1.12 + $4/1.12² + $4/1.12³ = -$0.39 million

b) assuming that the project is abandoned at the end of year 1:

NPV = -$10 + $4/1.12 + $6/1.12 = -$1.07 million

Actually things get worse if you decide to sell the project after year 1. The present value of the expected cash flows is higher than the present value of the salvage value.

What potential consequences could result from the
worst
kitchen safety violation that you see in this picture?

Answers

Where is the picture??? There is none

Prince Corporation acquired 100 percent of Sword Company on January 1, 20X7, for $19 1,000. The trial balances for the two companies on December 31, 20X7, included the following amounts:
Prince Corporation Sword Company
Debit Credit Debit Credit

Cash $94,000 $39,000
Accounts Receivable 53,000 58,000
Inventory 188,000 108,000
Land 92,000 34,000
Buildings and Equipment 494,000 161,000
Investment in Sword
Company 217,000
Cost of Goods Sold 494,000 257,000
Depreciation Expense 24,000 14,000
Other Expenses 74,000 74,000
Dividends Declared 56,000 26,000
Accumulated Depreciation $151,000 $70,000
Accounts Payable 64,000 28,000
Mortgages Payable 189,000 141,000
Common Stock 294,000 45,000
Retained Earnings 348,000 84,000
Sales 685,000 403,000
Income from Sword
Company Prince
Corporation 55,000
$1,786,000 $1,786,000 $771,000 $771,000
Additional Information
1. On January 1, 20X7, Lime reported net assets with a book value of $150,000. A total of $20,000 of the acquisition price is applied to goodwill, which was not impaired in 20X7.
2. Lime's depreciable assets had an estimated economic life of 11 years on the date of combination. The difference between fair value and book value of tangible assets is related entirely to buildings and equipment.
3. Jersey used the equity method in accounting for its investment in Lime.
4. Detailed analysis of receivables and payables showed that Sword owed Prince $23,000 on December 31, 20x7.
Required:
Prepare all consolidating entries needed to prepare a full set of consolidated financial statements for 20x7

Answers

Answer:

Explanation:

two companies on December 31, 20X7

4. you follow the advice of your friend to be flexible especially
if you intend to open a retail business what PECS do
you
demonstrate?​

Answers

Open to feedback

......................

Share one or two specific examples of how you will use the concepts or strategies presented in this class to contribute to your academic and career success.

Answers

Answer:

Explanation:

e concepts or strategies presented in this class

Gold Company was experiencing financial difficulties, but was not bankrupt or insolvent. The National Bank, which held a mortgage on other real estate owned by Gold, reduced the principal from $110,000 to $85,000. The bank had made the loan to Gold when it purchased the real estate from Silver, Inc. Pink, Inc., the holder of a mortgage on Gold’s building, agreed to accept $40,000 in full payment of the $55,000 due. Pink had sold the building to Gold for $150,000 that was to be paid in installments over 8 years. As a result of the above, Gold must:____________
a. Include $40,000 in gross income.
b. Reduce the basis in its assets by $40,000.
c. Include $25,000 in gross income and reduce its basis in its assets by $15,000.
d. Include $15,000 in gross income and reduce its basis in the building by $25,000.
e. None of these.

Answers

Answer:

c. Include $25,000 in gross income and reduce its basis in its assets by $15,000.

Explanation:

The computation is shown below:

Decrease by Bank

= $110000 - $85000

= $25,000

The same amount i.e. $25,000 would be involved in the gross income

And, the reduction in mortgage is

=  $55000 - $40000

= $15,000

It redued the building or assets basis

hence, the correct option is c. and the same is to be considered

20. Which one of the following statements about national income is correct?
O A. National income is the income earned by US resource suppliers plus taxes on production and imports.
O B. National income is the market value of the annual output net of consumption of fixed capital.
C. National income is the income received by households less personal taxes,
D. National income is the before-tax income received by households.

Answers

Answer:

national income is the income received by households less personal taxes,,

Cost of Production Report
The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.
Work in process, January 1, 7,000 units, 70% completed $81,970
Direct materials (7,000 × $8.00) $56,000
Conversion (7,000 × 70% × $5.30) 25,970
$81,970
Materials added during January from Weaving
Department, 108,000 units $869,400
Direct labor for January 248,134
Factory overhead for January 303,274
Goods finished during January (includes goods in
process, January 1), 109,200 units —
Work in process, January 31, 5,800 units, 30% completed —
A. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0".
B. Compute and evaluate the change in the costs per equivalent unit for direct materials and conversion from the previous month (December).

Answers

Answer:

A) Summary of physical units and equivalent units

Units to be accounted for                  Physical units

Beginning WIP                                         7,000

Units started                                        108,000

Total units to be accounted for           115,000

Units accounted for          Phys. units          Materials        Conversion

Beginning WIP                      7,000              $56,000          $25,970

Units started                      108,000          $869,400         $551,408  

Subtotal                               115,000           $925,400        $577,378

Units transferred out         109,200            $878,710         $567,691

Ending WIP                            5,800            $46,690            $9,687

Summary of costs to be accounted for

Costs to be accounted for:            Materials         Conversion     Total

Beginning WIP                                $56,000            $25,970        $81,970

Costs incurred in the period        $869,400          $551,408   $1,420,808

Total costs to be accounted for  $925,400          $577,378    $1,502,778

 

Calculation of cost per equivalent unit

                                                       Materials         Conversion     Total

Costs incurred in the period        $869,400          $551,408   $1,420,808

Total equivalent units                    108,000              99,040                        

Cost per equivalent unit                   $8.05           $5.567528   $13.617528

Cost allocation

                                                       Materials         Conversion     Total

Units finished and transferred      $878,710          $567,691      $1,446,401

Ending WIP                                     $46,690            $9,687         $56,377  

Total costs to be accounted for   $925,400         $577,378    $1,502,778

B) Materials cost per equivalent unit increased slightly during the period from $8 per EU to $8.05 per EU (0.6% increase). Conversion costs also increased during the period from $5.30 per EU to $5.567528 per EU (5% increase).

Explanation:

beginning WIP 7,000 units

100% completed for materials

70% completed for conversion costs (30% added in this period = 2,100 EU)

beginning WIP costs

materials $81,970

conversion $56,000

units started 108,000

materials added during the period $869,400

conversion costs $551,408

units finished 109,200

units started and finished = 108,000 - 7,000 - 5,800 = 95,200

ending WIP 5,800

100% complete for materials

30% complete for conversion costs (1,740 EU)

total EU:

materials 108,000

conversion 2,100 + 95,200 + 1,740 = 99,040

cost per EU:

materials $869,400 / 108,000 = $8.05

conversion $551,408 / 99,040 = $5.567528

total = $13.617528

ending WIP costs:

5,800 x $8.05 = $46,690

1,740 x $5.567528 = $9,687

total = $56,377

costs of finished units:

(102,200 x $8.05) + $56,000 = $878,710

(95,200 x $5.567528) + (2,100 x $5.567528) + $25,970 = $567,691

total = $1,446,401

Use the following data to calculate the current ratio. Koonce Office Supplies Balance Sheet December 31, 2014
Cash $130,000 Accounts payable $100,000
Accounts receivable $100,000 Salaries and wages payable $20,000
Inventory $110,000 Mortgage payable 160,000
Prepaid insurance $60,000 Total liabilities 320000
Stock investments $170,000 Common stock $240,000
Land 180000 Retained earnings $500,000
Buildings 210000 Total stockholders' equity 740000
Less: Accumulated depreciation ($40,000) Total liability and 1.060,000
$170,000 stockholder equity
Trademarks $140,000
Total assets $1.060,000
a. 2.50:1
b. 2.13:1
c. 1.44:1
d. 2.86:1

Answers

Answer:

a. 2.50:1

Explanation:

Calculation for Current ratio

First step is to Calculate the Total current assets :

Cash $130,000

Accounts receivables $100,000

Inventory $110,000

Prepaid insurance $60,000

Total current assets (a) $400,000

Second step is to Calculate the Total current liabilities :

Accounts payable $140,000

Salaries and wages payable $20,000

Total current liabilities (b) $160,000

Now let find the current ratio using this formula

Current ratio = Total current assets / Total current liabilities

Let plug in the formula

Current ratio =$400,000 / $160,000

Current ratio =2.50 : 1

Therefore the Current ratio will be 2.50 : 1

A (Static) Using T accounts to record all business transactions. LO 3-1, 3-2, 3-4
The following accounts and transactions are for Vincent Sutton, Landscape Consultant.
Transactions:
Sutton invested $90,000 in cash to start the business.
Paid $6,000 for the current month’s rent.
Bought office furniture for $10,580 in cash.
Performed services for $8,200 in cash.
Paid $1,250 for the monthly telephone bill.
Performed services for $14,000 on credit.
Purchased a computer and copier for $18,000; paid $7,200 in cash immediately with the balance due in 30 days.
Received $7,000 from credit clients.
Paid $2,800 in cash for office cleaning services for the month.
Purchased additional office chairs for $5,800; received credit terms of 30 days.
Purchased office equipment for $22,000 and paid half of this amount in cash immediately; the balance is due in 30 days.
Issued a check for $9,400 to pay salaries.
Performed services for $14,500 in cash.
Performed services for $16,000 on credit.
Collected $8,000 on accounts receivable from charge customers.
Issued a check for $2,900 in partial payment of the amount owed for office chairs.
Paid $725 to a duplicating company for photocopy work performed during the month.
Paid $1,280 for the monthly electric bill.
Sutton withdrew $5,500 in cash for personal expenses.
Post the above transactions into the appropriate T accounts.
Analyze:
What liabilities does the business have after all transactions have been recorded?
Complete this question by entering your answers in the tabs below.
Transactions
Analyze
Post the above transactions into the appropriate T accounts.
Cash Accounts Receivable
Bal.
Bal.
Office Furniture Office Equipment
Bal. Bal.
Accounts Payable Vincent Sutton, Capital
Bal.
Bal.
Vincent Sutton, Drawing Fees Income
Bal.
Bal.
Rent Expense Utilities Expense
Bal. Bal.
Salaries Expense Telephone Expense
Bal. Bal.
Miscellaneous Expense
Bal.
Complete this question by entering your answers in the tabs below.
What liabilities does the business have after all transactions have been recorded?
Liabilities

Answers

Answer:

It is very difficult to record T accounts since there is not a lot of room here and things get complicated very easily. So I used an excel spreadsheet to post the accounts on an accounting equation format.

Assets increase when they are debited and they decrease when they are credited. The opposite happens to liabilities and equity, they increase when they are credited and decrease when they are debited. Service revenue is credited, while all expenses are debited.

The reason why the drawings account has a negative balance is that even though it is an equity account, it has a debit balance since it decreases capital.

In order for the equation to balance, you have to close the accounts, but that was not a requirement of the question.

What liabilities does the business have after all transactions have been recorded?

the only liability account is accounts payable with a credit balance of $24,700

   

Blaster Corporation manufactures hiking boots. For the coming year, the company has budgeted the following costs for the production and sale of 30,000 pairs of boots.
Budgeted Costs Budgeted Costs per Pair Percentage of Costs Considered Variable
Direct materials $ 630,000 $ 21 100 %
Direct labor 300,000 10 100
Manufacturing overhead
(fixed and variable) 720,000 24 25
Selling and administrative
expenses 600,000 20 20
Totals $ 2,250,000 $ 75
Required:
a. Compute the sales price per unit that would result in a budgeted operating income of $900,000, assuming that the company produces and sells 30,000 pairs. (Hint: First compute the budgeted sales revenue needed to produce this operating income.) Assume that the company decides to sell the boots at a unit price of $121 per pair.
b-1. Compute the total fixed costs budgeted for the year.
b-2. Compute the variable cost per unit.
b-3. Compute the contribution margin per pair of boots.
b-4. Compute the number of pairs that must be produced and sold annually to break even at a sales price of $121 per pair.

Answers

Answer:

a. Sales volume = (Fixed costs + Target income) / Contribution margin per unit

     Fixed costs = ( Percentage of fixed Selling and Admin expenses) +  

      Percentage of fixed Manufacturing expenses

     = 600,000 * 80% + 720,000 * 75%

     = 480,000 + 540,000

     = $1,020,000

30,000 units = (1,020,000 + 900,000) / Contribution Margin per unit

Contribution margin per unit = 1,920,000/30,000

= $64

Sales per unit = Contribution margin per unit  + Variable cost per unit

       Variable Cost per unit = 21 + 10 + (24*25%) + (20 * 20%)

        = $41

Sales per unit = 64 + 41

= $105 per unit

b - 1. Fixed costs = ( Percentage of fixed Selling and Admin expenses) + Percentage of fixed Manufacturing expenses

= 600,000 * 80% + 720,000 * 75%

= 480,000 + 540,000

= $1,020,000

b - 2. Variable Cost per unit

= Direct materials + Direct Labor + variable percentage of Manufacturing overhead cost per unit + variable percentage of Selling and administrative per unit

= 21 + 10 + (24*25%) + (20 * 20%)

= $41

b - 3. Contribution margin = Selling price - Variable cost

= 121 - 41

= $80

b - 4. Breakeven Point = Fixed Cost / Contribution margin

= 1,020,000/80

= 12,750 units

What is a premium in personal finance HEEEEELLPPP

Answers

Premium has multiple meanings in finance, with the first being the total cost to buy an option. A premium is also the difference between the price paid for a fixed-income security and the security's face amount at issue.

Source: Investopedia

On December 31, 2020, Reagan Inc. signed a lease with Silver Leasing Co. for some equipment having a seven-year useful life. The lease payments are made by Reagan annually, beginning at signing date. Title does not transfer to the lessee, so the equipment will be returned to the lessor on December 31, 2026. There is no purchase option, and Reagan guarantees a residual value to the lessor on termination of the lease. Reagan's lease amortization schedule appears below:
Decrease in Outstanding
Dec. 31 Payments Interest Balance Balance
2020 $410,442
2020 $74,700 $74,700 335,742
2021 $74,700 $20,145 54,555 281,187
2022 $74,700 16,871 57,829 223,358
2023 $74,700 13,401 61,299 162,059
2024 $74,700 9,724 64,976 97,083
2025 $74,700 5,825 68,875 28,208
2026 $29,900 1,692 28,208 0
What is the amount of residual value guaranteed by Reagan to the lessor?

Answers

Answer: $29,900

Explanation:

Residual value guaranteed is the amount that the lessee promises to pay in the last year including the repayment and the interest payment.

= $28,208 + 1,692

= $29,900

List and describe the three types of income. Include information regarding how each one is taxed.

Answers

Answer:

Understanding The Three Types Of Income

Earned Income. The first type of income is the most common: earned income. ... Capital Gains Income. The next type of income that you can earn is called capital gains income. ... Passive Income. The final type of income that you can earn is called passive income.

Answer:

earned income, capital income, dont know the last one sorry

Explanation:

Electronic Distribution has a defined benefit pension plan. Characteristics of the plan during 2021 are as follows: ($ millions)


PBO balance, January 1 $530
Plan assets balance, January 1 300
Service cost 50
Interest cost 30
Gain from change in actuarial assumption 36
Benefits paid (46 )
Actual return on plan assets 23
Contributions 2021 40

The expected long-term rate of return on plan assets was 9%. There were no AOCI balances related to pensions on January 1, 2021, but at the end of 2021, the company amended the pension formula, creating a prior service cost of $18 million.

Required:
a. Calculate the pension expense for 2021.
b. Prepare the journal entries to record (a) pension expense, (b) gains or losses, (c) prior service cost, (d) funding, and (e) payment of benefits for 2021.
c. What amount will Electronic Distribution report in its 2021 balance sheet as a net pension asset or net pension liability?

Answers

Answer:

Please see below

Explanation:

1. Calculate the pension expense for 2021.

($ millions)

Service cost. $50

Interest cost. $30

Expected return on the plan assets

(1,300 × 6%). ($78)

Amortization of prior service cost $

Amortization of net gain or loss - AOCI $

Pension expense $2

2. Journal expense to record pension expense, gains or losses, prior service cost, funding and payment of benefits for 2021.

1.

Pension expense. Dr $2

Plan assets [expected return on assets] Dr $78

To PBO (50 + 30) Cr $80

(To record the pension expense)

2.

Prior service cost - OCI Dr $18

To PBO Cr $18

(To record the prior service cost)

3.

PBO Dr $36

To Gain - OCI Cr $36

(To record the gain from change in actuarial assumption)

4.

Loss- OCI [1,300 × 6%] - ($23). Dr $55

To Plan assets Cr. $55

(To record the gain or loss on assets)

5.

Plan assets. Dr $40

To Cash Cr. $40

(To record the funding)

6.

PBO Dr $46

To Plan assets. Cr 46

(To record the retiree benefits)

3. What amount will electronic distribution report in its 2021 balance sheet as a net pension asset or net pension liability.

PBO balance, Jan 1 $530

Service cost. $50

Interest cost. $30

Gain from change in actuarial assumption. ($36)

Prior service cost(New). $18

Benefit paid ($46)

PBO balance, December 31. $546

Plan assets balance, Jan 1. $300

Actual return on plan assets $23

Contributions $40

Benefits paid ($46)

Plan assets balance, December 31 $317

PBO balance, December 31 $546

Plan assets balance, December 31 $317

Net pension liability. $229

Fit-for-Life Foods reports the following income statement accounts for the year ended December 31.

Gain on sale of equipment $6,350 Depreciation expense—Office copier $600
Office supplies expense 770 Sales discounts 15,700
Insurance expense 1,240 Sales returns and allowances 4,000
Sales 215,000 TV advertising expense 2,100
Office salaries expense 31,500 Interest revenue 600
Rent expense—Selling space 11,000 Cost of goods sold 88,100
Sales staff wages 23,000 Sales commission expense 13,600

Required:
Prepare a multiple-step income statement.

Answers

Answer: Check attachment

Explanation:

Note that, in the attachment, the total expense was calculated as the addition of the selling expense and the general and administrative expenses. This will be:

= $49700 + $34110

= $83810

Operating income was calculated as:

= Gross profit - Total expenses

= $107200 - $83810

= $23390

Check the attachment for further details.

g Benton, Inc. has decided to discontinue manufacturing its Quantum model personal organizer. Currently the company has a number of partially completed personal organizers on hand. The company has spent $111 per unit to manufacture these organizers. To complete each unit, costs of $14 for material and $15 for direct labor will be incurred. In addition, $9 of variable overhead and $34 of allocated fixed overhead (relating primarily to depreciation of plant and equipment) will be added per unit. If Benton, Inc., completes the organizers, it can sell them for $124 per unit. Another manufacturer is interested in purchasing the partially completed organizers for $107 per unit and converting them into inventory tracking devices. Determine whether Benton should complete the personal organizers or sell them in their current state.

Answers

Answer:

Sell them in their current state

Explanation:

Ignore the cost already incurred ($111) since it is a sunk cost (already spent) and should not affect future decision.

1) The incremental cost of completing each unit = material cost ($14) + direct labour cost ($15) + variable overhead cost ($9) = $38 (allocated fixed cost was not included since it is a non-cash item)

With a sale price of $124, the profit per unit = $124 - $38 = $89.

2) Whereas, selling the partially completed unit will earn $107 (without any additional cost).

Since selling the partially completed unit earns higher incremental value than completing manufacture before sale, selling is the optimal decision.

Cullumber Company has the following balances in selected accounts on December 31, 2020.
Accounts Receivable $ 0
Accumulated Depreciation—Equipment 0
Equipment 8,000
Interest Payable 0
Notes Payable 11,000
Prepaid Insurance 3,120
Salaries and Wages Payable 0
Supplies 2,200
Unearned Service Revenue 28,000
All the accounts have normal balances. The information below has been gathered at December 31, 2020.
1. Cullumber Company borrowed $9,400 by signing a 9%, one-year note on September 1, 2020.
2. A count of supplies on December 31, 2020, indicates that supplies of $970 are on hand.
3. Depreciation on the equipment for 2020 is $2,000.
4. Cullumber Company paid $3,120 for 12 months of insurance coverage on June 1, 2020.
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.
6. Cullumber performed consulting services for a client in December 2020. The client will be billed $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.
Prepare adjusting entries for the seven items described above. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Answers

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

ClevelandInc. leased a new crane to Abriendo Construction under a 5-year, non-cancelable contract starting January 1, 2020. Terms of the lease require payments of $48,555 each January 1, starting January 1, 2020. The crane has an estimated life of 7 years, a fair value of $240,000, and a cost to Cleveland of $240,000. The estimated fair value of the crane is expected to be $45,000 (unguaranteed) at the end of the lease term. No bargain purchase or renewal options are included in the contract, and it is not a specialized asset. Both Cleveland and Abriendo adjust and close books annually at December 31. Collectibility of the lease payments is probable. Abriendo’s incremental borrowing rate is 8%, and Cleveland’s implicit interest rate of 8% is known to Abriendo. Discuss what should be presented in the balance sheet, the income statement, and the related notes of both the lessee and the lessor at December 31, 2020.

Answers

Answer:

The correct answer is "2,40,000". The further explanation is given below.

Explanation:

The given fair value is:

= $240,000

The presentation in books of lessee will be:

⇒  [tex]Record \ of \ assets =PV \ of \ Lease \ Payment +Unguaranteed \ residual \ value[/tex]

⇒  [tex]Annuity \ value \ of \ 8 \ percent \5 \ year\times 48555+Anuity \ value \ of \ 5th \ year\times 45000[/tex]

On putting the values, we get

⇒  [tex]3.9927\times 48555+0.6806\times 45000[/tex]

⇒  [tex]193865.54+30627[/tex]

⇒  [tex]224492.54 \ i.e., 2,24,493[/tex] ($)

Presentation in books of Lessor , the fair value of assets will be

=  [tex]2,40,000[/tex] ($)

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