Answer:
11,361 units and profit $698,800.00
Explanation:
The break-even point is obtained by dividing fixed costs by contribution margin per unit.
Break-even =fixed costs/contribution margin per unit
In this case, fixed costs are $277,200.
Contribution margin per unit = selling price- variable cost
= $70 - $45.60
=$24.60
Break-even point in units will be
=$277,200/$24.60
=11,361 units
Net income after sales of 40,000 units
Total revenue =sales x volume
=$70 x 40,000
=$2,800,000.00
net income will be $2,800,000.00 -( variable costs+ fixed costs)
=$2,800,000.00- {($45.60 x 40,000) + $277,200}
=$2,8000,000.00 -($1,824,000.00 + $ 277,200)
=$2,8000,000.00- $2,101,200.00
=$698,800.00
A profit of $698,800.00
White & Checker is releasing a new power drill that requires the manufacturing of a new part.They are considering whether they should manufacture the part in-house or outsource it from a supplier.The demand forecast is 1,355 units.They calculate the break-even quantity as 1,750 parts.What decision should White & Checker make? A) The product should not be released,as the demand is not high enough. B) A percentage of the product should be manufactured in-house,and the rest should be outsourced. C) The part should be outsourced. D) The part should be manufactured in-house.
Answer:
A
Explanation:
Breakeven quantity is the number of units produced and sold at which net income is zero
The product should not be released because the demand is less than breakeven quantity. If the product is released, the firm would earn losses
give one example of a conflict that might occur due to individualism and collectivism.
Answer:
Individualism is the theory that postulates that through individual, almost selfish action, a greater economic and social progress can be obtained for the person. In turn, collectivism postulates that it is solidarity and group collaboration that allows greater economic and social progress.
In the field of business, a possible conflict between individualism and collectivism can occur in company boards, when the president of these tries to make decisions based on his particular criteria, while the rest of the board seeks to make decisions based on the consensus.
Thus, for example, a president who does not take into account the opinions of his board of directors can be a source of conflict, since he puts his individual interest over the collective interest.
Cultural differences does trigger conflicts. Example:
Isreal was having a problem with his neighbor next door. He decided to seek advice from his friend on the matter. Angel his friend suggested that he express the problem openly right away, and, if that wouldn’t help, to take the neighbor to the court. Mane, on the other hand, warned him not to get too serious, and recommended him to write a letter which talks about their good memories in the past and how pleasant their neighborhood was.From the above, an individualistic will focused on the issue at hand and pursues a direct approach
From a collectivism approach, they are more concerned about the relationship and look into the indirect/accommodating method to handle the situation.
Conclusively, Individualist and collectivist have their own way of approaching conflict and resolving it. The ways may differs.
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Land originally purchased for $27,500 is sold for $74,987 in cash what is the effect of the sale on the accounting equation
The effect of the sale on the accounting equation is an increase in assets by $47,487 and an equal increase in equity.
In the given scenario, when land originally purchased for $27,500 is sold for $74,987 in cash, the effect on the accounting equation can be described as follows:
Assets: The land is an asset, and its original value of $27,500 is removed from the asset side of the equation. Additionally, the cash received from the sale, which is $74,987, is added to the asset side. Therefore, the net effect on assets is an increase of $74,987 - $27,500 = $47,487.
Liabilities: The sale of land does not directly impact the liabilities side of the equation. Liabilities represent the debts and obligations of the company, such as loans or accounts payable. Unless there are specific liabilities related to the land, they would remain unchanged in this transaction.
Equity: Equity represents the owner's interest in the company and is calculated as assets minus liabilities. Since the transaction does not impact liabilities, the effect on equity is equal to the effect on assets. Therefore, the equity increases by $47,487.
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On January 1, 2018, Alamar Corporation acquired a 45 percent interest in Burks, Inc., for $196,000. On that date, Burks's balance sheet disclosed net assets with both a fair and book value of $350,000. During 2018, Burks reported net income of $81,000 and declared and paid cash dividends of $20,000. Alamar sold inventory costing $28,000 to Burks during 2018 for $41,000. Burks used all of this merchandise in its operations during 2018. Prepare all of Alamar's 2018 journal entries to apply the equity method to this investment.
Answer:
1. Dr Investment in Burks Inc $196,000
Cr Cash $196,000
2. Dr Investment in Burks Inc $42,300
Cr Investment income in Burks Inc $42,300
3. Dr Cash $9,000
Cr Investment income in Burks Inc $9,000
Explanation:
Preparation for Journal entries
1. Dr Investment in Burks Inc $196,000
Cr Cash $196,000
2. Dr Investment in Burks Inc $42,300
Cr Investment income in Burks Inc $42,300
3. Dr Cash $9,000
Cr Investment income in Burks Inc $9,000
CALCULATION for Journal entry (2)
Unadjusted Net income $81,000
Profit from sale of inventory to burks $13,000
(41,000-28,000)
Adjusted Net Income $94,000
Share of Alamar 45%
Share of Alamar in Burks Inc income $42,300
(94,000*45%)
CALCULATION for Journal entry (3)
Cash dividends $20,000
Share of Alamar 45%
Share of Alamar in Burks Inc dividends $9,000
Vail Resorts, Inc., owns and operates 11 premier year-round ski resort properties (located in the Colorado Rocky Mountains, the Lake Tahoe area, the upper midwest, Vermont, and Australia). The company also owns a collection of luxury hotels, resorts, and lodging properties. The company sells lift tickets, ski lessons, and ski equipment. The following hypothetical December transactions are typical of those that occur at the resorts.
Borrowed $2,300,000 from the bank on December 1, signing a note payable due in six months.
Purchased a new snowplow for $98,000 cash on December 31.
Purchased ski equipment inventory for $35,000 on account to sell in the ski shops.
Incurred $62,000 in routine repairs expense for the chairlifts; paid cash.
Sold $390,000 of January through March season passes and received cash.
Sold a pair of skis from inventory in a ski shop to a customer for $700 on account. (The cost of the skis was $400). (Hint: Record two entries.)
Sold daily lift passes in December for a total of $320,000 in cash.
Received a $3,500 deposit on a townhouse to be rented for five days in January.
Paid half the charges incurred on account in (c).
Received $400 on account from the customer in (f).
Paid $245,000 in wages to employees for the month of December.
Required:
1. Prepare journal entries for each transaction. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Assume that Vail Resorts had a $1,000 balance in Accounts Receivable at the beginning of December. Determine the ending balance in the Accounts Receivable account at the end of December based on transactions (a) through (k).
Answer:
A.
a. Dr Cash $2,300,000
Cr Notes payable $2,300,000
b. Dr Equipment $98,000
Cr Cash $98,000
c.Dr Inventory $35,000
Cr Accounts payable $35,000
D. Dr Repair expense $62,000
Cr Cash $62,000
e. Dr Cash $390,000
Cr Unearned revenue $390,000
f. Dr Accounts receivable $700
Cr Sales revenue $700
Dr Cost of of goods sold $400
Cr Inventory $400
g. Dr Cash $320,000
Cr Sales revenue $320,000
h. Dr Cash $3,500
Cr Unearned revenue-deposit $3,500
i. Dr Accounts payable $17,500
Cr Cash $17,500
j. Dr Cash $400
Cr Accounts receivable $400
k. Dr Wages expense $245,000
Cr Cash $245,000
B. $1,300
Explanation:
A. Preparation of Journal entries
a. Dr Cash $2,300,000
Cr Notes payable $2,300,000
[To record cash borrowed from bank]
b. Dr Equipment $98,000
Cr Cash $98,000
[To record purchase of snowplow]
c.Dr Inventory $35,000
Cr Accounts payable $35, 000
[To record purchase of inventory on account]
D. Dr Repair expense $62,000
Cr Cash $62,000
[To record payment of repair expense]
e. Dr Cash $390,000
Cr Unearned revenue $390,000
[To record sale of season passes]
f. Dr Accounts receivable $700
Cr Sales revenue $700
[To record credit sales]
Dr Cost of of goods sold $400
Cr Inventory $400
[To record cost of goods sold]
g. Dr Cash $320,000
Cr Sales revenue $320,000
[To record sales ]
h. Dr Cash $3,500
Cr Unearned revenue-deposit $3,500
[To record customer deposits]
i. Dr Accounts payable $17,500
[35,000 x 1/2]
Cr Cash $17,500
[To record cash paid for accounts payable]
j. Dr Cash $400
Cr Accounts receivable $400
[To record collections from customers]
k. Dr Wages expense $245,000
Cr Cash $245,000
[To record payment of wages]
B. Calculation to Determine the ending balance in the Accounts Receivable account at the end of December
Beginning Accounts Receivable 1,000
Add: Sales on account 700
Less: Cash received on account -400
Ending balance in Accounts Receivable $1,300
Therefore the ending balance in the Accounts Receivable account at the end of December will be $1,300
What are the two key criteria for Amazon to chose the location? Why do you think these elements are the most important ones? Location is very crucial decision for companies like Amazon. According to you, what are some of the important factors that the author omitted in her analysis? Do you agree with the author selection or you think that Amazon will pick another location?
Explanation:
Amazon is one of the most valuable companies in the world, with a very high demand, the retailer needs a location strategy that meets two main criteria, they are: places where the company's business can be successful and well-located distribution centers in large metropolitan areas.
The company uses the push marketing strategy, so this selection of Amazon locations is essential for the company to create a sensation in the consumer of the easy availability of its products, capable of meeting demand in a faster time, which encourages sales and keeps the company competitive in the market.
Steady As She Goes Inc. will pay a year-end dividend of $3.80 per share. Investors expect the dividend to grow at a rate of 6% indefinitely. a. If the stock currently sells for $38.00 per share, what is the expected rate of return on the stock? (Do not round intermediate calculations. Enter your answer as a whole percent.) b. If the expected rate of return on the stock is 18.50%, what is the stock price? (Do not round intermediate calculations. Enter your answers rounded to 2 decimal places.)
Answer:
a. 16%
b. $30.40
Explanation:
a. Using the Gordon Growth model, the value of a share is;
Value = Next dividend/ ( Expected return - growth rate)
So;
38 = 3.80 / ( Rate - 6%)
Rate - 6% = 3.80/38
Rate = 3.80/38 + 6%
= 16%
b. Value = Next dividend/ ( Expected return - growth rate)
= 3.80/ ( 18.50% - 6%)
= $30.40
Manufacturers Southern leased high-tech electronic equipment from Edison Leasing on January 1, 2016. Edison purchased the equipment from International Machines at a cost of $112,080. (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.) Related Information: Lease term 2 years (8 quarterly periods) Quarterly rental payments $15,000 at the beginning of each period Economic life of asset 2 years Fair value of asset $112,080 Implicit interest rate 8% (Also lessee’s incremental borrowing rate)
1. Required: Prepare a lease amortization schedule for the term of the lease for Manufacturers Southern from the inception of the lease through January 1, 2017. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis.
Payment Date Lease Payments Interest expense Decrease in Balance lease balance
2.
Record the appropriate entries for Manufacturers Southern from the inception of the lease through January 1, 2017. Depreciation is recorded at the end of each fiscal year (December 31) on a straight-line basis. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
a. record the lease (Jan. 01,2016)
b. record lease payment (Jan. 01, 2016)
c. record lease payment (Apr. 01, 2016)
d. record lease payment (July 01, 2016)
e. record lease payment (Oct. 01, 2016)
f. record accrued interest (Dec. 31, 2016)
g. record depreciation expense. (Dec. 31, 2016)
h. record lease payment (Jan. 01, 2017)
I would like to get right answer and please provide calculate and explain.
Answer:
Total effective interest = $7,920
Accumulated depreciation as at December 31, 2016 = $56,040
Explanation:
Note: See the attached excel file for the lease amortization schedule and the journal entries.
The following are used in the excel file:
R = Implicit interest rate / 4 Quarters in a year = 8% / 4 = 2%
Effective interest = Previous lease balance * R = Previous lease balance * 2%
Decrease in lease balance = Lease payments - Effective interest
Lease balance = Previous lease balance - Decrease in balance
Accumulated depreciation as at December 31, 2016 = Equipment cost / 2 years = $112,080 / 2 = $56,040
Baka Corporation applies manufacturing overhead on the basis of direct labor-hours. At the beginning of the most recent year, the company based its predetermined overhead rate on total estimated overhead of $241,200 and 6,200 estimated direct labor-hours. Actual manufacturing overhead for the year amounted to $243,000 and actual direct labor-hours were 5,100. The applied manufacturing overhead for the year was closest to: (Round your intermediate calculations to 2 decimal places.)
Answer:
$198,390
Explanation:
Calculation for the applied manufacturing overhead for the year
First step is to find the predetermined overhead rate using this formula
Let plug in the formula
Predetermined overhead rate=Estimated overhead/Estimated direct labor hours
Predetermined overhead rate=(241,200/6,200)
Predetermined overhead rate=$38.90 per direct labor hour
Second step is to calculate for the applied manufacturing overhead using this formula
Applied manufacturing overhead=Predetermined overhead rate×Actual direct labor-hours
Let plug in the formula
Applied manufacturing overhead=($38.90*5,100 hours)
Applied manufacturing overhead=$198,390
Therefore the applied manufacturing overhead for the year was closest to:$198,390
Ahmed runs a bakery that sells two kinds of pies. Ahmed knows the bakery must make at least 6 and at most 48 batches of the Chocolate Decadence. The bakery must also make between 3 and 42 batches of the Mint Breezes. The batches of Chocolate Decadence take 7 minutes in the oven, while batches of Mint Breezes require 8 minutes in the oven. The bakery only has 392 minutes in the oven available. If batches of Chocolate Decadence generate $2.56 in income, and batches of Mint Breezes generate $1.29, how many batches of the pies should Ahmed have the bakery make to get the most income
Answer:
Ahmed must bake 48 Chocolate Decadence pies and 7 Mint Breezes pies in order to get the maximum possible profit = $131.91
Explanation:
let x = chocolate decadence
let y = mint breezes
maximize revenue equation = 2.56x + 1.29y
the constraints are:
7x + 8y ≤ 392
x ≥ 6
x ≤ 48
y ≥ 3
y ≤ 42
using solver, profits are maximized when 48x + 7y = $131.91
What is one advantage corporations have over other types of businesses?
A. Corporations limit risk and liability for shareholders.
B. Corporations are the simplest businesses to get started.
C. Corporations have few government regulations.
D. Corporations allow one person to keep all profits.
Answer:
A. Corporations limit risk and liability for shareholders.
Explanation:
have the limited liability feature that distinguishes the business liabilities from owners. The benefit of having limited liability is that it protects the shareholders' properties from being interfered with should the company fail in meeting its obligations.
The law limits the risk of shareholders of a corporation up to the level of share contribution. In case of liquidation and the company's assets are not sufficient to cater to the liabilities, the shareholder's losses are limited to the amount of capital contribution.
Answer:
A. Corporations limit risk and liability for shareholders.
Explanation:
discuss the costs and benefits associated with statistical versus judgmental forecasts for labor supply. under what condition might either of these technique be infeasible? under what conditions might both be feasible, but one more desirable than the other?
Answer:
The two methods used to forecasting labor demand and supply are: Statistical Method and Judgmental Method.
The Statistical method collects previous historic data regarding company's demand and supply for qualified employees and provides forecasting for the particular period. It is feasible when other factors remain same in the organisation. It is not feasible when the organisation changes its objectives, mission and vision etc
Cost and Benefit
It prevents future shortage of qualified employees
It avoids disruption over operation
The Judgmental method is when the company follow judgmental method, that is it is based on manager's experience of conducting survey to estimate employees requirements on future operation.
It is feasible for small and medium size organisation for short term forecast. It
Cost and Benefit
It avoids short-run shortage of employees
It avoids short-run surplus of employees.
Tache Corporation uses the weighted-average method in its process costing system. The first processing department, the Welding Department, started the month with 17,450 units in its beginning work in process inventory that were 20% complete with respect to conversion costs. The conversion cost in this beginning work in process inventory was $7,840. An additional 89,900 units were started into production during the month and 92,900 units were completed in the Welding Department and transferred to the next processing department. There were 14,450 units in the ending work in process inventory of the Welding Department that were 90% complete with respect to conversion costs. A total of $203,300 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. $2.010
b. $2.245
c. $1.994
d. $2.319
Answer: c. $1.994
Explanation:
Cost per Equivalent Unit of Production (EUP) for Conversion = Total Conversion costs/ EUP
Total Conversion cost
= Conversion cost for beginning work in process inventory + Conversion cost incurred in the month
= 7,840 + 203,300
= $211,140
EUP = Units completed + Percentage of ending Units completed with regards to conversion
= 92,900 + (90% * 14,450)
= 105,905 units
Cost per Equivalent Unit of Production (EUP) for Conversion = 211,140 / 105,905
= $1.9936
= $1.994
Outline and describe the main types of Communication in your own words. Give one practical example for each type to support your discussion.
Answer:
There are four main types of communication: verbal, nonverbal, written, and visual.
1. Verbal communication involves the use of words to convey a message. This can be done through spoken or written language. Verbal communication can be formal or informal, and it is often used in face-to-face conversations, meetings, presentations, and interviews. A practical example of verbal communication is a teacher giving a lecture to a classroom full of students.
2. Nonverbal communication involves the use of body language, facial expressions, and other nonverbal cues to convey a message. This can include gestures, eye contact, posture, and tone of voice. Nonverbal communication is often used in conjunction with verbal communication to reinforce a message or convey meaning. A practical example of nonverbal communication is a job interview, where the interviewer may use body language to convey their interest or disinterest in a candidate.
3. Written communication involves the use of written words to convey a message. This can include emails, memos, reports, and letters. Written communication is often used in business and academic settings, where a permanent record of the communication is required. A practical example of written communication is a business proposal that is sent to a potential client.
4. Visual communication involves the use of images, graphics, and other visual aids to convey a message. This can include charts, diagrams, videos, and photographs. Visual communication is often used in advertising, marketing, and design, where visual impact is important. A practical example of visual communication is a billboard that advertises a new product.
In summary, each type of communication has its own strengths and weaknesses, and they are all important in different contexts. Effective communication requires a combination of these four types, depending on the situation and the message that needs to be conveyed.
Pd 4(A) Set 2 iz Question 7 (1 point) When investing in individual stocks, you should expect that... O a Stock prices for a company are relatively easy to predict d GRADES Next Page Back Unforeseen company events can have a dramatic impact on the stock price for a company You will have an informational edge by reading an article about a company you want to invest in Stock prices for an individual stock will be more stable over the long-term than prices for a diversified index fund S ✓ Sub Question 7 of 19 |
An investor should carefully consider their risk tolerance and investment goals before deciding whether to invest in individual stocks or index funds.
When investing in individual stocks, you should expect that unforeseen company events can have a dramatic impact on the stock price for a company. This is because the company's stock price reflects not only the company's current financial situation but also investors' expectations for the company's future performance.Unforeseen company events such as changes in leadership, new competitors, or regulatory changes can cause investors to reassess their expectations for the company's future performance, which can lead to fluctuations in the stock price.An investor should not expect that stock prices for a company are relatively easy to predict. This is because stock prices are influenced by a variety of factors, including company financial performance, economic conditions, market trends, investor sentiment, and geopolitical events. While some investors may try to predict stock prices using technical analysis or fundamental analysis, it is important to recognize that these methods have limitations and cannot guarantee accurate predictions.An investor can gain an informational edge by reading an article about a company they want to invest in. Reading articles about a company can provide valuable insights into the company's financial situation, growth prospects, and risks. However, it is important to recognize that reading articles is only one part of the investment process and should be supplemented by other sources of information, such as financial statements, analyst reports, and market data.An investor should not expect that stock prices for an individual stock will be more stable over the long-term than prices for a diversified index fund. In fact, individual stocks are generally more volatile than index funds because they are more susceptible to company-specific risks. By contrast, index funds are diversified across multiple companies and sectors, which can help to reduce overall portfolio risk.
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Two countries, Great Britain and the United States, produce just one good: beef. Suppose the price of beef in the United States is $2.80 per pound and in Britain it is £3.70 per pound.
a. According to PPP theory, what should the dollar/pound spot exchange rate be?
Answer:
0.7567
Explanation:
Purchasing power parity (PPP) is an economic matrix used by economists to compare the standard of living between countries. It compares the countries' currency strength through their abilities to buy consumable goods.
The calculation of exchange rate E/ R using the PPP theory is by the formula below.
E/R= P1/ P2
where:
E/R= Exchange rate of currency 1 to currency 2
P1= Cost of good X in currency 1
P2= Cost of good X in currency 2
E/R = US Price / UK Price =
=$2.80 / £3.70
=0.7567
Exchange rate for dollar to the British pound is 0.7567
A physician unfairly bills a patient. What tort violation is this?
A.
negligence
B.
abuse
C.
assault
D.
battery
E.
malpractice
Carmelita Inc., has the following information available:
Costs from Beginning Inventory Costs from Current Period
Direct materials $4,500 $26,500
Conversion costs 5,600 149,400
At the beginning of the period, there were 400 units in process that were 40% complete as to conversion costs and 100% complete as to direct materials costs. During the period, 4,700 units were started and completed. Ending inventory contained 400 units that were 34% complete as to conversion costs and 100% complete as to materials costs. Assume that the company uses the FIFO process cost method. Round cost per unit figures to two cents, i.e., $2.22, when calculating total costs. The total costs that will be transferred into Finished Goods for units started and completed were:___________
Answer:
$162,761
Explanation:
beginning WIP:
400 units 100% complete for materials, so 0% will be added during the period
400 units 40% complete for conversion, so 60% will be added during the period = 240 equivalent units
units started and completed:
4,700 units 100% complete for materials and conversion
ending WIP:
400 units 100% complete for materials = 400 equivalent units
400 units 34% complete for conversion = 136 equivalent units
materials cost per equivalent unit = $26,500 / (4,700 + 400) = $5.20
conversion cost per equivalent unit = $149,400 / (4,700 + 240 + 136) = $29.43
total costs per equivalent unit = $34.63
total costs for units started and completed during the period = 4,700 x $34.63 = $162,761
Ideally, capital budgeting analysis should take cash flows into account . Understanding the nature of projects Capital budgeting analysis often involves decisions related to expansion projects and/or replacement projects. Based on your understanding of expansion and replacement projects, answer the following: A rental car company bought a new fleet of midsize cars and sold off its old midsize cars because they had too many miles on them. Which type of project would this be considered
Answer:
Replacement project
Explanation:
A Replacement project is a project where to initial investment is disposed of and new investments are made to replace the investments disposed of.
Here the old cars are replaced with new ones. So, it is a replacement project
An expansion project is a project undertaken to increase the capacity or reach of a firm.
Jennifer has been highly unproductive at work for the last few weeks and is counseled regarding organizational policies and rules by her supervisor. She is then asked to identify solutions to prevent further problems and write them down. When her supervisor feels that these activities are not helping her, she is given a paid day off to prepare an action plan that would help her work on her productivity issues. This best exemplifies the __________ discipline approach.
a. dictatorial
b. positive
c. progressive
d. authoritative
Answer: positive
Explanation:
Based on the happening in he question, the method used is the positive discipline approach
This approach seeks ways to help an employee when the employee isn't being productive at his or her workplace. The positive actions are being seeked and necessary ways to bring the worker back to his or her feet will be utilized.
This is the method used in order to being Jennifer back on track and.make her productive again.
Q. Which investor type most likely uses a family office to manage their investments?
A. Retail investors
B. Endowment funds
C. Ultra-high-net-worth investors
Answer:
The best answer would be C. Ultra-high-net-worth investors. Can I get brainliest
To be eligible for Bright Futures, you must
be a Florida resident and a US citizen, or an eligible noncitizen
be a resident of any state in the continental US
have lived with family in Florida for at least ten years
have lived in at least three different states in the US
Answer:To be eligible for Bright Futures, you must. be a Florida resident and a US citizen, or an eligible noncitizen. ... have lived with family in Florida for at least ten years. have lived in at least three different states in the US.
Explanation:
i hopes this helps u
Answer:
be a Florida resident and a US citizen, or an eligible noncitizen
Explanation:
The general ledger of the Karlin Company, a consulting company, at January 1, 2021, contained the following account balances:
Account Title Debits Credits
Cash 33,200
Accounts receivable 10,500
Equipment 16,000
Accumulated depreciation 4,800
Salaries payable 6,250
Common stock 41,500
Retained earnings 7,150
Total 59,700 59,700
The following is a summary of the transactions for the year:
Service revenue, $104,000, of which $31,200 was on account and the balance was received in cash.
Collected on accounts receivable, $22,300.
Issued shares of common stock in exchange for $8,000 in cash.
Paid salaries, $37,750 (of which $6,250 was for salaries payable at the end of the prior year).
Paid miscellaneous expense for various items, $20,400.
Purchased equipment for $10,500 in cash.
Paid $2,475 in cash dividends to shareholders.
Accrued salaries at year-end amounted to $755.
Depreciation for the year on the equipment is $1,600.
Required:
1. Prepare the summary, adjusting and closing entries for each of the transactions listed.
2. Post the transactions, adjusting and closing entries into the appropriate t-accounts.
3. Prepare an unadjusted trial balance.
4. Prepare an adjusted trial balance.
5-a. Prepare an income statement for 2021.
5-b. Prepare a balance sheet as of December 31, 2021.
6. Prepare a post-closing trial balance.
Answer:
1)
Service revenue, $104,000, of which $31,200 was on account and the balance was received in cash.
Dr Cash 72,800
Dr Accounts receivable 31,200
Cr Service revenue 104,000
Collected on accounts receivable, $22,300.
Dr Cash 22,300
Cr Accounts receivable 22,300
Issued shares of common stock in exchange for $8,000 in cash.
Dr Cash 8,000
Cr Common stock 8,000
Paid salaries, $37,750 (of which $6,250 was for salaries payable at the end of the prior year).
Dr Wages expense 31,500
Dr Wages payable 6,250
Cr Cash 37,750
Paid miscellaneous expense for various items, $20,400.
Dr Miscellaneous expenses 20,400
Cr Cash 20,400
Purchased equipment for $10,500 in cash.
Dr Equipment 10,500
Cr Cash 10,500
Paid $2,475 in cash dividends to shareholders.
Dr Dividends 2,475
Cr Cash 2,475
Accrued salaries at year-end amounted to $755.
Dr Wages expense 755
Cr Wages payable 755
Depreciation for the year on the equipment is $1,600.
Dr Depreciation expense 1,600
Cr Accumulated depreciation 1,600
Dr Service revenue 104,000
Cr Income summary 104,000
Dr Income summary 54,255
Cr Wages expense 32,255
Cr Miscellaneous expenses 20,400
Cr Depreciation expense 1,600
Dr Income summary 49,745
Cr Retained earnings 49,745
Dr Retained earnings 2,475
Cr Dividends 2,475
2)
Cash Accounts receivable
debit credit debit credit
33,200 10,500
72,800 31,200
22,300 22,300
8,000 19,400
37,750
20,400
10,500
2,475
65,175
Equipment Wages payable
debit credit debit credit
11,200 6,250
10,500 6,250
1,600 755
20,100 755
Common stock Retained earnings
debit credit debit credit
41,500 7,150
8,000 49,745
49,500 2,475
54,420
Service revenue Wages expense
debit credit debit credit
104,000 31,500
104,000 755
0 0 32,255
0 0
Miscellaneous expense Dividends
debit credit debit credit
20,400 2,475
20,400 2,475
0 0 0 0
Depreciation expense Income summary
debit credit debit credit
1,600 104,000
1,600 54,255
0 0 49,745
0 0
3 and 4) Karlin Company
Trial Balance Sheet
For the year ended December 31, 2021
Debit Credit
Cash $65,175
Accounts receivable $19,400
Equipment $20,100
Wages payable $755
Common stock $49,500
Retained earnings $7,150
Service revenue $104,000
Wages expense $32,255
Miscellaneous expense $20,400
Depreciation expense $1,600
Dividends $2,475
Totals $161,405 $161,405
5.a. Karlin Company
Income Statement
For the year ended December 31, 2021
Service revenue $104,000
Expenses:
Wages expense $32,255Miscellaneous expense $20,400Depreciation expense $1,600 ($54,255)Net income $49,745
5.b. Karlin Company
Balance Sheet
For the year ended December 31, 2021
Assets:
Cash $65,175
Accounts receivable $19,400
Equipment $20,100
Total assets $104,675
Liabilities:
Wages payable $755
Total liabilities $755
Stockholders' equity
Common stock $49,500
Retained earnings $54,420
Total stockholders' equity $103,920
Total liabilities + equity $104,675
6) Karlin Company
post-closing Trial Balance Sheet
For the year ended December 31, 2021
Debit Credit
Cash $65,175
Accounts receivable $19,400
Equipment $20,100
Wages payable $755
Common stock $49,500
Retained earnings $54,420
Totals $104,675 $104,675
Millennials who patronize restaurants and other out-of-home food purveyors have become increasingly health- and nutrition-conscious. In response, many fast food companies have improved the nutritional profile of their menus by adding items such as salads, fresh fruit, and plant-based meat substitutes. This strategy is intended primarily to ________ millennial customers.
a. Create
b. Retain
c. Segment
d. Targets
Answer: target
Explanation:
A target market are the group of customers which a business or a company directs the resources and its marketing efforts towards.
From the question above, since Millennials who patronize restaurants and other out-of-home food purveyors have become increasingly health- and nutrition-conscious, the strategy used by many fast food companies to improve the nutritional profile of their menus by adding items such as salads, fresh fruit, and plant-based meat substitutes is intended primarily to target millennial customers.
The fast food companies are aware that by adding items such as salads, fresh fruit, and plant-based meat substitutes, this may convince Millennial customers to try them out.
Therefore, the answer is option d"targets".
Manufacturing costs for Davenport Company during 2018 were as follows: Beginning Finished Goods, 1/1/18 $ 24,400 Beginning Raw Materials, 1/1/18 35,800 Beginning Work in Process, 1/1/18 110,600 Direct Labor for 2018 275,600 Ending Finished Goods, 12/31/18 22,700 Ending Raw Materials, 12/31/18 40,400 Ending Work in Process, 12/31/18 120,900 Material Purchases for 2018 304,500 (including $16,500 of indirect material) Required:
1. Compute direct material used. 2. Compute applied overhead if the company applies overhead at a rate of 0.78 (78%) of direct labor cost. 3. Compute total manufacturing cost. 4. Compute cost of goods manufactured. 5. Compute cost of goods sold.
Answer:
1. $283,400
2. $214,968
3. $790,468
4. $780,168
5. $781,868
Explanation:
Material used = Beginning Materials + Purchases - Ending Materials
= $35,800 + $304,500 - $40,400
= $299,900
Then,
Direct Materials Used = Total Materials Used - Indirect Material
= $299,900 - $16,500
= $283,400
Applied overhead = Application Rate × Actual Activity
= 78% × $275,600
= $214,968
Calculation of Total Manufacturing Costs
Direct Materials $283,400
Direct Labor $275,600
Overheads Applied $214,968
Indirect Materials $16,500
Total Manufacturing Costs $790,468
Cost of Goods Manufactured = Beginning Work in Process Inventory + Manufacturing Costs - Ending Work in Process Inventory
= $110,600 + $790,468 - $120,900
= $780,168
Cost of goods sold = Beginning Finished Goods Inventory + Cost of Goods Manufactured - Ending Finished Goods Inventory
= $ 24,400 + $780,168 - $22,700
= $781,868
IKIBAN INC. Income Statement For Year Ended June 30, 2017
Sales $678,000
Cost of goods sold 411,000
Gross profit 267,000
Operating expenses
Depreciation expenses $58,600
Other expenses 67,000
Total operating expenses 125,600
141,400
Other gains (losses)
Gain on sale of equipment 2,000
Income Before taxes 143,400
Income taxes expense 43,890
Net income $99,510
IKIBAN INC. Comparative Balance Sheets
2017 2016
Assets
Cash $87,500 $44,000
Accounts receivable, net 65,000 51,000
Inventory 63,800 86,500
Prepaid expenses 4,400 5,400
Total current assets 220,700 186,900
Equipment 124,000 115,000
Accum. depreciation-Equipment (27,000) (9,000)
Total assets $317,700 $292,900
Liabilities and Equity
Accounts payable $25,000 $30,000
Wages payable 6,000 15,000
Income taxes payable 3,400 3,800
Total current liabilities 34,400 48,800
Notes payable (long-term) 30,000 60,000
Total liabilities 64,400 108,800
Equity
5Common stock, $5 par value 220,000 160,000
Retained earnings 33,300 24,100
Total liabilities equity $317,700 $292,900
Additional Information:
a. A $30,000 note payable is retired at its $30,000 carrying (book) value in exchange for cash.
b. The only changes affecting retained earnings are net income and cash dividends paid.
c. New equipment is acquired for $57,600 cash.
d. Received cash for the sale of equipment that had cost $48,600, yielding a $2,000 gain.
e. Prepaid Expenses and Wages Payable relate to Other Expenses on the income statement.
f. All purchases and sales of inventory are on credit.
Prepare the Operating section only of the Statement of Cash Flows for Ikiban Co.
Answer:
$151,410
Explanation:
Preparation of the Operating section only of the Statement of Cash Flows for Ikiban Co
Cash Flows from Operating Activities:
Net Income 99,510
Depreciation & Amortization 58,600
Gain on sale of equipment (2,000)
Increase in Accounts Receivables (14,000)
(51,000-65,000)
Decrease in Inventory 22,700
(86,500-63,800)
Decrease in Prepaid Expenses 1,000 (5,400-4,400)
Decrease in Accounts Payable (5,000) (25,000-30,000)
Decrease in Income tax payable (400) (3,400-3,800)
Decrease in Wages Payable (9,000) (6,000-15,000)
Cash Flows from Operating Activities: $151,410
Therefore the Cash Flows from Operating Activities will be $151,410
Adriane's Grocery Store had a beginning inventory of $14,000 and an ending inventory of $19,000.
Net sales during the year amounted to $78,000 and gross profit was $12,000. The inventory
turnover ratio was:
(Please enter a round number without decimal places.)
Answer:
5
Explanation:
The inventory turnover ratio shows how many times inventory was sold during a year.
The formula for calculating turnover ration is as below.
Inventory turn over ratio = cost of goods sold/ average inventory
average inventory is opening stock + closing stock/2
In this case, average inventory = $14,000 + $19,000/2
Average inventory = $33,000/2=$16,500
The cost of goods sold is not provided, so we use net sales.
Inventory turnover = $78,000/$16,500= 4.7
As round number inventory turnover = 5
You are the founder and CEO of Home Water Designs, Inc., a company that custom designs and builds expensive residential pools. You only use the best components, and receive all of your concrete for building pools from Jake, a concrete supplier. Jake has reliably delivered high quality concrete to you for nearly ten years. Jake has learned that your demand for concrete varies, and has customized his business to ensure response to your orders. In response to a wealthy client's quick demand for a new pool, you ask Jake for a fast delivery of 500 bags of concrete. Jake agrees to deliver, but due to a rare disruption in his own supplies, he is only able to deliver 400 bags on time. As a result, your wealthy client is disappointed with your work, and you suffer some damages. Your attorney informs you that you have a possible claim of breach of contract against Jake. Considering the legal and business implications, discuss whether you should declare a breach of contract claim against Jake seeking damages.
In this case, Minor breach of contract claim against the Jake seeking damages. This contract arises in the situation.
What is Minor Breach of Contract?Minor Breach of Contract defines as it occurs when the contract is deliverable is eventually received by the other party, but the party did not fulfill its commitment regarding the breach.
Minor breach of contract is void contract. Under this circumstances, you will not sue for the damages for the breach of such contract that may happened.
It may also include the contract of service where the contract was entered into by the minor himself. A minor breach will not affect the overall purpose of the contract.
Therefore, the company cannot sue against the Jake because it comes under the minor breach of contract.
To learn more about the Minor Breach of Contract, visit:
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In each of the following transactions (a) through (c) for Romney's Marketing Company, use the three-step process to record the adjusting entry at the end of the current year. The process includes (1) determining if revenue was earned or an expense was incurred, (2) determining whether cash was received or paid in the past or will be received or paid in the future, and (3) computing the amount of the adjustment.
a. Estimated electricity usage at $210 for December; to be paid in January of next year.
b. On September 1 of the current year, loaned $5,700 to an officer who will repay the loan principal and interest in one year at an annual interest rate of 14 percent.
c. Owed wages to 18 employees who worked three days at $180 each per day at the end of the current year. The company will pay employees at the end of the first week of next year.
Answer:
Romney's Marketing Company
Adjusting Journal Entries:
a. Debit Utilities (Electric) Expense $210
Credit Utilities Payable $210
To record December electricity expense.
b. Debit Interest Receivable $266
Credit Interest Revenue $266
To record Interest revenue for 4 months.
c. Debit Wages Expense $9,720
Credit Wages Payable $9,720
To record unpaid wages (18 * 3 * $180)
Explanation:
An expense was incurred for December electricity and this must be accrued in December since $210 will be paid in January.
Interest revenue was earned for September to December and $266 will be received in the future. The interest due is computed as $266 = ($5,700 * 14% * 4/12).
Wages expense was incurred after receiving the services of 18 workers who worked for 3 days at $180 each per day. The expense will be paid in January.
The local supermarket buys lettuce each day to ensure really fresh produce. Each morning any lettuce that is left from the previous day is sold to a dealer that resells it to farmers who use it to feed their animals. This week the supermarket can buy fresh lettuce for $9.00 a box. The lettuce is sold for $17.00 a box and the dealer that sells old lettuce is willing to pay $5.00 a box. Past history says that tomorrow's demand for lettuce averages 258 boxes with a standard deviation of 41 boxes.
Required:
How many boxes of lettuce should the supermarket purchase tomorrow?
Answer:
276 boxes
Explanation:
Given the following :
Cost price of lettuce = $9
Selling price of lettuce = $17
Selling price of old lettuce (Salvage value) =$5
Mean demand (m) = 258
Standard deviation(σ) = 41
The marginal profit = selling price - cost price
Marginal profit = $(17 - 9) = $8
Marginal loss ; old lettuce : cost price - salvage value $(9 - 5) = $4
Probability (p) = marginal profit /(marginal profit + marginal loss)
P = 8 / (8 + 4) ; 8 / 12 = 0.667
Using the InvNorm function of the T84 calculator :
InvNorm(prob, mean, standard deviation)
InvNorm(0.667, 258, 41) = 275.697 = 276 boxes
Number of lettuce boxes supermarket should purchase tomorrow = 276 boxes
