Answer:
a. Annual depreciation = $3,800
b. First year depreciation is $8,000' while second year depreciation is $7,200.
Explanation:
a. Determine the amount of annual depreciation by the straight-line method.
Depreciable amount = $80,000 - $4,000 = $76,000
Annual depreciation = $76,000 / 20 = $3,800
b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.
Straight line depreciation rate = 1 / 20 = 0.05, or 5%
Double declining depreciation rate = 5% * 2 = 10%
First year depreciation = $80,000 * 10% = $8,000
Second year depreciation = ($80,000 - $8,000) * 10% = $7,200
A company had the following purchases and sales during its first year of operations: Purchases Sales January: 22 units at $180 14 units February: 32 units at $185 12 units May: 27 units at $190 16 units September: 24 units at $195 15 units November: 22 units at $200 28 units On December 31, there were 42 units remaining in ending inventory. Using the Perpetual LIFO inventory valuation method, what is the cost of the ending inventory
Answer:
$7,815
Explanation:
As per Perpetual LIFO inventory valuation method the inventory purchased at last will be sold first and the value of ending inventory can be calculated as follows. The inventory sold has been deducted from the purchased inventory in that period first and then has been deducted from the previous period to arrive at the cost of ending inventory;
January: 8 units x $180 = $1,440
February: 20 units x $185 = $3,700
May: 11 units x $190 = $2,090
September: 3 units x $195 = $585
Cost of Ending Inventory of 42 units is $7,815
Martin Services Company provides its employees vacation benefits and a defined contribution pension plan. Employees earned vacation pay of $49,000 for the period. The pension plan requires a contribution to the plan administrator equal to 6% of employee salaries. Salaries were $500,000 during the period. a. Provide the journal entry for the vacation pay. b. Provide the journal entry for the pension benefit.
Answer:
a. Provide the journal entry for the vacation pay
Debit Vacation and Holiday expense $49,000
Credit Vacation and Holiday payable $49,000
(To record earned Vacation and Holiday expenses)
b. Provide the journal entry for the pension benefit
Debit Pension expense $30,000
Credit Pension liability $30,000
(Being pension benefit recognition)
Explanation:
The earned vacation and holiday expense has to be recognized in line with the accrual principle of accounting.The pension benefit was also recognized in line with the accrual principle of account. The pension plan is a contribution of 6% of employee salaries, which amounted to $500,000. So, 0.06 x 500,000 = $30,000.Department G had 2,400 units 25% completed at the beginning of the period, 13,300 units were completed during the period; 2,000 units were 20% completed at the end of the period, and the following manufacturing costs debited to the departmental work in process account during the period:
Work in process, beginning of period $32,200
Costs added during period:
Direct materials (12,900 units at $9) 116,100
Direct labor 75,000
Factory overhead 25,000
All direct materials are placed in process at the beginning of production and the first-in, first-out method of inventory costing is used. What is the total cost of the units started and completed during the period (round unit cost calculations to four decimal places and round your final answer to the nearest dollar)?
a. $197,947
b. $181,306
c. $164,665
d. $98,100
Answer:
The total cost of the units started and completed during the period is $181,306. The right answer is b
Explanation:
In order to calculate the total cost of the units started and completed during the period we would have to calculate the Equivalent units as follows:
Equivalent units:
Whole units material conversion
Beginning units 2,400 0 1,800(75%)
Units started and complete 10,900 10,900 10,900
(13,300-2,400)
Total transferred 13,300 10,900 $ 12,700
Ending units 20,00 2,000 400(20%)
Equivalent units 15,300 12,900 13,100
Equivalent cost per unit:
Material conversion
Cost incurred this period $116,100 $100,000
÷ equivalent units ×12,900 ÷13,100
Cost per equivalent unit $9 $7.6336
Therefore, the total cost of the units started and completed during the period =10,900 units×($9+7.6336)
=$181,306
Proper payroll accounting methods are important for a business for all of the following reasons except a.payroll is subject to various federal and state regulations b.good employee morale requires timely and accurate payroll payments c.to help a business with cash flow problems by delayed payments of payroll taxes to federal and state agencies d.payroll and related payroll taxes have a significant effect on the net income of most businesses
Answer:
Option C
Explanation:
In simple words, Payroll Accounting refers to the task of estimating and delivering to workers and other organizations pay , bonuses and allowances. That is usually achieved by various papers, including time sheets, earnings, as well as an accounting register.
Payroll management actually tracks an enterprise's payroll costs through accounting records. Payroll planning covers both cost and liability reports which including FICA Payable Payments, fed and provincial taxes Payable, Life Care Contributions Payable, etc.
Samco signed a 5-year note payable on January 1, 2018, of $ 475 comma 000. The note requires annual principal payments each December 31 of $ 95 comma 000 plus interest at 9%. The entry to record the annual payment on December 31, 2021, includes A. a debit to Interest Expense for $ 17 comma 100. B. a debit to Interest Expense for $ 42 comma 750. C. a credit to Cash of $ 137 comma 750. D. a credit to Notes Payable for $ 95 comma 000.
Answer:
Option A, a debit to Interest Expense for $ 17 comma 100 is correct
Explanation:
The principal amount on 1st January 2021 needs to be established since that would be the amount left after 2018,2019,2020 principals have been repaid
Principal at 1st January 2021=$475,000-($95,000*3)=$190000
Interest on principal in 2021=$190000 *9%=$17100
Total repayment in 2021=principal plus interest=$95,000+$17,100=$ 112,100.00
The $95,000 would be a debit to notes payable not credit hence option is wrong.
Only option A,a debit of $17,100 to interest expense is correct
Absorption and variable costing. (CMA) Miami, Inc., planned and actually manufactured 250,000 units of its single product in 2017, its first year of operation. Variable manufacturing cost was $19 per unit produced. Variable operating (nonmanufacturing) cost was $13 per unit sold. Planned and actual fixed manufacturing costs were $750,000. Planned and actual fixed operating (nonmanufacturing) costs totaled $420,000. Miami sold 170,000 units of product at $41 per unit.
Required:
1. Miami's 2017 operating income using absorption costing is:
(a) $ 600,000
(b) $ 360,000
(c) $ 780,000
(d) $ 1,020,000
(e) None of above
2. Miami's 2017 operating income using variable costing is:(a) $ 1,100,000(b) $ 600,000(c) $ 360,000(d) $ 780,000(e) None of above
Answer:
1.(b) $ 360,000
2. (c) $ 360,000
Explanation:
Miami, Inc.
Absorption Costing
Income Statement
Sales 170,000 units * $41 $ 6970,000
Variable manufacturing cost $19 *170,000 units = 3230,000
Actual fixed manufacturing costs $750,000
Contribution Margin $ 2990,000
Variable operating (non manufacturing) cost $13 *170,000 units =2210,000
Actual fixed operating (non manufacturing) costs $420,000
Operating Income $ 360,000
The difference b/w variable and absorption costing is that in variable costing the variable expenses are treated as product costs and fixed expenses as period costs. But in absorption costing the manufacturing expenses variable and fixed are treated as product costs and selling and administrative expenses both fixed and variable are treated as period costs.
Miami, Inc.
Variable Costing
Income Statement
Sales 170,000 units * $41 $ 6970,000
Variable manufacturing cost $19 *170,000 units = 3230,000
Variable operating (non manufacturing) cost $13 *170,000 units =2210,000
Contribution Margin $1530,000
Actual fixed manufacturing costs $750,000
Actual fixed operating (non manufacturing) costs $420,000
Operating Income $ 360,000
Picayune company purchased 40,000 of Stewart Company's 100,000 shares for $400,000 on 1/1/X1 when Stewart's equity consisted of $500,000 capital stock and $500,000 of retained earnings. An appraisal of Stewart's assets failed to identify any mis-valued assets. Picayune designated the Investment as a fair value investment. During year X1, Stewart earned a $100,000 net income and paid $50,000 of dividends. On 12/31/X1, Stewart's stock traded at $10.20 per share. How much investment income should Picayune recognize in year X1?
Answer:
a. $8,000
b. $20,000
c. $28,000
d. $40,000
The correct answer is B,$20,000
Explanation:
The investment income attributable to entire shareholders of Picayune is the amount of dividends paid,which is $50,000.
Out of which Picayune is entitled to 40% (40,000/100,000) based on the shareholding of Picayune in Stewart Company.
Dividends received by Picayune =40%*$50,000=$20,000
The investment income of Picayune to be recognized in year X1 is $20,000
A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $12,000 indicates that Dept. Y had a direct expense of $1,300 for deliveries and Dept. Z had no direct expense. The indirect expenses are $10,700. The analysis also indicates that 60% of regular delivery requests originate in Dept. Y and 40% originate in Dept. Z. Departmental delivery expenses for Dept. Y and Dept. Z, respectively, are: Multiple Choice $7,330; $6,000. $7,330; $4,670. $7,720; $4,280. $7,200; $4,800. $6,000; $6,000.
Answer:
$7,720; $4,280
Explanation:
total delivery expense = $12,000
Dept. Y Dept. Z
direct expenses $1,300 $0*
indirect expenses ($10,700 x 60%) ($10,700 x 40%)
$6,420 $4,280
total delivery expenses $7,720 $4,280
*Since no direct delivery expenses were generated by Dept. X, no amount should be allocated. Indirect expenses are allocated based on the percent generated by each department.
Please help ASAP giving BRAINLIEST , Did I get this correct?
Answer:
Yes you are correct on this researched it
Answer:
YEAH:)
Explanation:
Femur Co. acquired 70% of the voting common stock of Harbor Corp. on January 1, 2019. During 2019, Harbor had revenues of $2,500,000 and expenses of $2,000,000. The amortization of fair value allocations totaled $60,000 in 2019. Not including its investment in Harbor, Femur Co. had its own revenues of $4,500,000 and expenses of $3,000,000 for the year 2019. What is the noncontrolling interest's share of earnings for Harbor Corp
Answer:
$1,808,000
Explanation:
The noncontrolling interest's share of the earnings of Harbor Corp. for 2019 is calculated to be:
=($2,500,000 - $2,000,000- $60,000) * 0.3 = $132,000
Amount of consolidated net income for 2019 should be allocated to Femur’s controlling interest in Harbor
= $440,000 - $132,000 = $308,000
Amount Femur Co. would report as consolidated net income for 2019:
= $1,500,000 + $308,000 = $1,808,000
Brainliest for anyone if they get this CORRECT.
Answer:
20% is your best answer choice.
Explanation:
We are looking at the people who will be willing to buy sandwiches from $4.01 to $5, or the purple color.
The purple color takes up just a little less than a quarter of the circle (25%). The closest answer to 25% that is still less than 25% is 20%, so B. is your best answer.
~
Answer:
It would be 20%
Explanation:
1+2+7+4+6 = 20
20%
As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 25% of Nursery Supplies Inc.’s 8 million shares of capital stock for $40 million. The fair value and book value of the shares were the same at that time. The company realizes that this investment typically would be accounted for under the equity method, but instead chooses to measure the investment at fair value. During the year, Nursery Supplies reported net income of $40 million and distributed cash dividends of $2.00 per share. At the end of the year, the fair value of the shares is $35 million.
Required:
1. How would this investment be classified on Florists' balance sheet?
2. Prepare all appropriate journal entries related to the investment during 2021, under the fair value option, and in a manner similar to what Florists would use for investments in equity securities for which it does not have significant influence.
Record the purchase.
Record the dividends.
Record any adjusting entry needed at year-end for the change in fair value.
Answer:
how many questions are there
.
Explanation:
Allegheny Company ended Year 1 with balances in Accounts Receivable and Allowance for Doubtful Accounts of $68,000 and $3,450, respectively. During Year 2, Allegheny wrote off $6,300 of Uncollectible Accounts. Using the percent of receivables method, Allegheny estimates that the ending Allowance for Doubtful Accounts balance should be $5,400. What amount will Allegheny report as Uncollectible Accounts Expense on its Year 2 income statement
Answer:
$8,250
Explanation:
Relevant data provided for compute the Uncollectible Accounts Expense is here below:-
Amount written off = $6,300
Closing balance = $5,400
Opening balance = $3,450
The computation of Uncollectible Accounts Expense is shown below:-
Uncollectible Accounts Expense = Amount written off + Closing balance - Opening balance
= $6,300 + $5,400 - $3,450
= $11,700 - $3,450
= $8,250
Therefore for computing the Uncollectible Accounts Expense we simply applied the above formula.
The 12/31/2018 balance sheet of Despot Inc. included the following: Common stock, 25 million shares at $20 par $ 500 million Paid-in capital—excess of par 3,000 million Retained earnings 980 million In January 2018, Despot recorded a transaction with this journal entry: Cash 150 million Common stock 100 million Paid-in capital—excess of par 50 million In February 2018, Despot declared cash dividends of $12 million to be paid in April of that year. What effect did the April transaction have on Despot's accounts? Decreased assets and liabilities. Increased liabilities and decreased shareholders' equity. Decreased assets and shareholders' equity. None of these answer choices are correct
Answer: Decreased assets and liabilities.
Explanation:
Both assets and Liabilities decrease as a result of the April transaction because first, Cash is used to pay the Dividend which reduces the cash account and Cash is an Asset.
Liabilities also decrease because when the dividends were declared in February, Despot Inc had to create a liability in their books to cater for the payment of the dividends. Now that the dividends have been paid, that figure will be removed therefore reducing Liabilities.
Vaughn Manufacturing expects to purchase $180000 of materials in July and $170000 of materials in August. Three-fourths of all purchases are paid for in the month of purchase, and the other one-fourth are paid for in the month following the month of purchase. How much will August's cash disbursements for materials purchases be?
Answer:
The August's cash disbursements for materials purchases would be
$172,500.00 for Vaughn Manufacturing
Explanation:
The cash disbursements in the month of August consist of the three-fourth cost of the August purchases and the one-fourth of the July purchases since the 3/4 of the cost of materials purchased is paid in the same month as purchases and the balance of 1/4 of purchase cost in the succeeding month
Cash disbursements in August=($170,000*3/4)+($180,000*1/4)=$127500 +$45,000=$172,500.00
On January 1, Year 1, Bryson Company obtained a $147,750, four-year, 7% installment note from Campbell Bank. The note requires annual payments of $43,620, beginning on December 31, Year 1. Prepare an amortization table for this installment note, similar to the one presented in Exhibit 4. Journalize the entries for the issuance of the note and the four annual note payments. Describe how the annual note payment would be reported in the Year 1 income statement.
Answer and Explanation:
According to the scenario, computation of the given data are as follow:-
1) The amortization schedule is presented on the attachment below:
2).
Journal Entry
1 Jan Cash A/c Dr. $147,750
To Notes payable A/c $147,750
(Being the cash received is recorded)
31 Dec Interest expense A/c Dr. $10,342.50
Notes payable A/c $33,277.50
To Cash A/c $43,620
(Being the annual payment of installment including interest is recorded)
31 Dec Interest expense A/c Dr. $8,013.08
Notes payable A/c $33,606.93
To Cash A/c $43,620
(Being the annual payment of installment including interest is recorded)
31 Dec Interest expense A/c Dr. $5,520.59
Notes payable A/c $38,099.41
To Cash A/c $43,620
(Being the annual payment of installment including interest is recorded)
31 Dec Interest expense A/c Dr. $2,853.83
Notes payable A/c $40,766.17
To Cash A/c $43,620
(Being the annual payment of installment including interest and setting off liabilities is recorded)
3).
Bryson Company
Income Statement
Particular Amount ($)
Revenue -
Expenses
Less - Interest expense 10,342.50
Less - Other expenses -
Net Income -
