Aaron Company has a process costing system. All materials are introduced when conversion costs reach 50 percent. The following information is available for physical units during March. Work in process, March 1 (60% complete as to conversion costs) 150,000 Units started in March 600,000 Units transferred to Finishing Department in March 630,000 Work in process, March 31 (40% complete as to conversion costs) 120,000 Required: a. Compute the equivalent units for materials costs and for conversion costs using the weighted-average method. b. Compute the equivalent units for materials costs and for conversion costs using the FIFO method. c. The company president has been under considerable pressure to increase income. He tells the controller to change the estimated completion for ending work in process to 60 percent (from 40 percent). c-1. What effect will this change have on the unit costs of units transferred to finished goods in March
Answer:
Aaron Company
a. Weighted-average
Equivalent units of production Units Materials Conversion
Units transferred to Finishing 630,000 630,000 (100%) 630,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 630,000 678,000
b. FIFO:
Equivalent units of production Units Materials Conversion
Work in process, March 1 150,000 0 60,000 (40%)
Units started and completed 480,000 480,000 (100%) 480,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 480,000 588,000
c. The change will reduce the unit costs of units transferred to finished goods in March.
Explanation:
a) Data and Calculations:
Work in process, March 1 (60% complete as to conversion costs) 150,000
Units started in March 600,000
Units transferred to Finishing Department in March 630,000
Work in process, March 31 (40% complete as to conversion costs) 120,000
a. Weighted-average
Equivalent units of production Units Materials Conversion
Units transferred to Finishing 630,000 630,000 (100%) 630,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 630,000 678,000
b. FIFO:
Equivalent units of production Units Materials Conversion
Work in process, March 1 150,000 0 60,000 (40%)
Units started and completed 480,000 480,000 (100%) 480,000 (100%)
Work in process, March 31 120,000 0 (0%) 48,000 (40%)
Equivalent units 480,000 588,000
c. If the estimated completion for ending work in process is changed to 60% from 40%, the equivalent units of production for materials will increase by 120,000. This increase will also increase the cost of ending work in process and reduce the unit costs transferred to finished goods in March.
Prior to recording adjusting entries, the Office Supplies account had a $490 debit balance. A physical count of the supplies showed $175 of unused supplies available. The required adjusting entry is: debit/credit [ Select ] to [ Select ] account for [ Select ] debit/credit [ Select ] to [ Select ] account for [ Select ]
Answer: See explanation
Explanation:
Based on the information that's provided in the question, the required adjusting entry goes thus:
Unadjusted ending balance of supplies = $490
Actual supplies ending balance existing physically = $175
From the information above, the supplies used during the period will be:
= $490 - $175
= $315
Therefore,
Debit office supplies expenses $315 Credit office supplies account $315
Big Chill, Inc. sells portable dehumidifier units at the current price of $184. Unit variable costs are $85. Fixed costs, made up primarily of salaries, rent, insurance and advertising, are $3,236,000. Calculate breakeven sales for Big Chill, Inc. Round your answer to the nearest whole number.
Answer:
$6,014,384
Explanation:
Break even point is the level at which a firm makes neither profit nor a loss. This is the point where Profit = $0.
Break even units = Fixed Costs ÷ Contribution per unit
therefore,
Break even units = $3,236,000 ÷ ($184 x $85)
= 32,687 units
thus,
Breakeven Sales = 32,687 units x $184 = $6,014,384
Three years ago, Kuley invested $32,200. In 2 years from today, he expects to have $50,300. If Kuley expects to earn the same annual return after 2 years from today as the annual rate implied from the past and expected values given in the problem, then in how many years from today does he expect to have exactly $87,200
Answer:
8.17 years(closest to 8 years )
Explanation:
The future value of $50,300, would be accumulated after 5 years of having made the investment(3 years+2 years=5 years)
As a result, we can determine the annual rate of return based on the future value in year 5 using the future value formula below:
FV=PV*(1+r)^n
FV=future value=$50,300
PV=amount invested initially=$32,200
r=unknown=annual rate of return
n=5 years
$50,300=$32,200*(1+r)^5
$50,300/$32,200=(1+r)^5
$50,300/$32,200 can be rewritten as ($50,300/$32,200)^1
($50,300/$32,200)^1=(1+r)^5
divide index on both sides by 5
($50,300/$32,200)^(1/5)=1+r
r=($50,300/$32,200)^(1/5)-1
r=9.33%
Our next task is to determine how long( in years) it takes to accumulate a future value of $87,200 from today's point, which means we need to determine the value of the investment today( 3 years after making the investment)
FV=$32,200*(1+9.33%)^3
FV=value of investment today=$42,079.82
Lastly, we can ascertain when $42,079.82 today would become $87,200
$87,200=$42,079.82*(1+9.33%)^n
n=number of years=unknown
$87,200/$42,079.82=(1+9.33%)^n
$87,200/$42,079.82=1.0933^n
take log of both sides
ln ($87,200/$42,079.82)=n ln(1.0933)
n=ln ($87,200/$42,079.82)/ln(1.0933)
n=0.72863604/0.08920065
n=8.17 years( from today, approx 8 years)
Determine whether each of the following accounting duties mainly involves financial accounting, managerial accounting, or tax accounting.
1. Consulting with treasurer on cash flows
2. Intemal auditing
3. Estate planning
4. External auditing
5. Tax consulting
6. Analyzing extema financial reports
7. Planning transactions to minimize taxes
8. Enforcing tax laws Financial accounting Tax accounting
Answer:
Explanation:
1. managerial
2, managerial
3. financial
4. financial
5. tax
6. financial
7. tax
8. tax
The classification of the following accounting duties related to financial accounting, managerial accounting, or tax accounting is as follows:
Consulted with the treasurer for the cash flows should be the managerial accounting as it is the management part.Internal auditing is managerial accounting.Estate planning is related to tax so it is a tax accounting.External auditing is classified as financial accounting.Tax consulting is related to tax so it is a tax accounting.External Financial reports should be analyzed so it is a financial accounting.For minimizing the taxes, tax accounting should be used.For enforcing the tax laws, tax accounting should be used.In this, the following transactions should be classfied.
Learn more about the accounting here: brainly.com/question/19436415
Betty Vinson improperly capitalized line costs at her boss's direction. Which company did she work for
Answer: WorldCom
Explanation:
The WorldCom scandal of 2002 was the worst one in U.S. history and led to shareholders losing over $30 billion as a result of share prices falling drastically when it was revealed that the company had been making fraudulent accounting entries to look successful when it fact it had been losing money.
Betty Vinson was the company's Director of Corporate Reporting and her boss, CEO Bernie Ebbers, pressured her into making fraudulent entries because it was said that he "didn't want to disappoint Wall Street". This scandal was one of those that directly led to the Sarbanes-Oxley Act being passed.
the company's revenue for the month totaled $950,000 from credit sales, and its cost of goods sold for the month is $540,000. Prepare summary journal entries dated October 31 to record its October production
Answer:
Date Account Title Debit Credit
Oct. 31 Accounts Receivable $950,000
Sales $950,000
Date Account Title Debit Credit
Oct. 31 Cost of goods sold $540,000
Finished goods inventory $540,000
The purpose of the Carlos Division is to develop a nuclear-powered aircraft. If successful, traveling delays associated with refueling could be substantially reduced. Many other benefits would also occur. To date, management has not had much success and is deciding whether a write-down at this time is appropriate. Management estimated its future net cash flows from the project to be $438 million. Management has also received an offer to purchase the division for $351 million. All identifiable assetsâ and liabilitiesâ book and fair value amounts are the same.
Required:
Prepare the journal entry to record the impairment at December 31, 2017.
Solution :
Calculate the amount of loss on impairment as follows :
Particular Millions($)
Fair value of the division 351
Less: carrying amount, net of good (474 - 210) 264
Implied goodwill 78
Less: carrying value of good will 210
Loss on impairment 132
Record impairment loss
Account title Debit($ million) Credit ($ million)
Loss of impairment 132
Goodwill 132
As discussed in the lecture video, Crocs’ plastic molding and sandal design capabilities have provided the firm with only a temporary competitive advantage, as incumbent firms began selling sandals that were very similar to the Crocs’ clogs. Crocs lost its competitive advantage primarily because of ___________
Answer: c. competitor imitation
Explanation:
When a company makes a good product that people like and therefore brings in profit, other companies will copy that product if it is not protected by law so that they too can make profit as well.
This is what happened to the Crocs' clogs. Other companies imitated them and so Crocs lost their competitive advantage. This led to prices falling for such footwear as the supply increased. It is for this reason that companies try to get patents when they make a product.
Sidewinder, Inc., has sales of $714,000, costs of $348,000, depreciation expense of $93,000, interest expense of $58,000, and a tax rate of 25 percent. The firm paid out $88,000 in cash dividends. What is the addition to retained earnings? (Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)Duela Dent is single and had $180,800 in taxable income. Use the rates from Table 2.3. (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)Calculate her income taxes.Prepare a balance sheet for Alaskan Peach Corp. as of December 31, 2019, based on the following information: cash = $203,000; patents and copyrights = $857,000; accounts payable = $286,000; accounts receivable = $263,000; tangible net fixed assets = $5,200,000; inventory = $548,000; notes payable = $179,000; accumulated retained earnings = $4,686,000; long-term debt = $1,150,000. (Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.)
Answer:
Sidewinder, Inc.
The addition to retained earnings is:
= $73,250
Duela Dent:
Income taxes = $45,200.
Alaskan Peach Corp.:
Balance Sheet as of December 31, 2019
Assets
Current assets:
Cash $203,000
Accounts receivable 263,000
Inventory 548,000 $1,014,000
Long-term assets:
Tangible net fixed assets 5,200,000
Patents and copyrights 857,000 $6,057,000
Total assets $7,071,000
Liabilities and Equity:
Current liabilities:
Accounts payable $286,000
Notes payable 179,000 $465,000
Long-term liabilities:
Long-term debt $1,150,000
Total liabilities $1,615,000
Accumulated retained earnings 4,686,000
Common stock (missing figure) 770,000
Total liabilities and equity $7,071,000
Explanation:
a) Data and Calculations:
Sidewinder, Inc.:
Sales revenue $714,000
Cost of goods sold $348,000
Depreciation expense $93,000
Interest expense $58,000
Tax rate = 25%
Cash dividends paid = $88,000
Income Statement
Sales revenue $714,000
Cost of goods sold 348,000
Gross profit $366,000
Depreciation expense 93,000
EBIT $273,000
Interest expense (58,000)
Income before tax $215,000
Tax rate (25%) 53,750
Net income $161,250
Cash dividends paid 88,000
Addition to Retained
Earnings $73,250
Duela Dent (single):
Taxable income = $180,800
Income tax (25%) 45,200
Alaskan Peach Corp.:
Account Titles Debit Credit
Cash $203,000
Accounts receivable 263,000
Inventory 548,000
Patents and copyrights 857,000
Tangible net fixed assets 5,200,000
Accounts payable $286,000
Notes payable 179,000
Long-term debt 1,150,000
Accumulated retained earnings 4,686,000
Common stock (missing figure) 770,000
Totals $7,071,000 $7,071,000
Sebastian received a raise this year so his income climbed from $45,000 to $52,000. Last year Sebastian purchased 2 sunglasses. This year he has purchased 7 sunglasses. Assuming that all of the other things remain constant, what type of a good are sunglasses and what type of income elasticity of demand does Sebastian have
Answer:
normal good
elastic demand
Explanation:
Income elasticity of demand measures the responsiveness of quantity demanded to changes in income.
Income elasticity = percentage change in quantity demanded / percentage change in income
percentage change in quantity demanded = (7/2) - 1 = 250%
percentage change in income = (52,000 / 45,000) - 1 = 15.6%
250 / 15.6 = 16.07
If the absolute value of income elasticity of demand is greater than one, it means demand is elastic.
Normal goods are goods that are goods whose demand increases when income increases and falls when income falls
Inferior goods are goods whose demand falls when income rises and increases when income falls.
While Amazon has become a very powerful e-commerce firm here in the US, Alibaba, the Chinese company is very powerful in many parts of the world. Go to Wikipedia and read about the different type of businesses that Alibaba operates. Then write a short outline of these businesses.
Answer:
Alibaba is a chinese company, one of the largest in the world by market capitalization.
While it mainly specializes in online retail (both business to consumer, and business to business), it is also involved in other business activities such as cloud computing, electronic payment, artificial intelligence services, and data science and analysis. In fact, Alibaba is considered not only one of the best retailers in the world, but also one of the best artificial intelligence and data-driven companies in the world.
Suppose cyclone industrial inc will pay a dividend of 1.65 per share next year. The require return on the stock is 8% and its dividends will grow by 2% per year indefinitely. What is the stock price today?
Answer:
$27.50
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
$1.65 / ( 0.08 - 0.02) = $27.50
For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic. Region Elastic Inelastic Between W and X Between Y and Z True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms may need to invest in additional capital in order to increase production further.
Answer:
a-1. Elasticity of supply between W and X is elastic.
a-1. elasticity of supply between Y and Z is inelastic.
b. The statement is true.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.
The explanation of the answers is now provided as follows:
a. For each of the regions, use the midpoint method to identify whether the supply of this good is elastic or inelastic.
The midpoint formula is as follows:
Elasticity of supply = ((Q2 - Q1)/ (Q2 + Q1) /2) / ((P2 - P1) / (P1 + P2) /2) ……… (1)
Using equation (1), we have:
a-1. Between W and X
Q2 = 25
Q1 = 10
P2 = 20
P1 = 15
Substituting the values into equation (1), we have:
Elasticity of supply between W and X = ((25 - 10)/ (25 + 10) /2) / ((20 - 15) / (15 + 20) /2) = 3
Since 3 which is the calculated elasticity of supply between W and X is greater than 1, this implies that elasticity of supply between W and X is elastic.
a-2. Between Y and Z
Q2 = 90
Q1 = 80
P2 = 180
P1 = 90
Substituting the values into equation (1), we have:
Elasticity of supply between Y and Z = ((90 - 80)/ (90 + 80) /2) / ((180 - 90) / (180 + 90) /2) = 0.18
Since 0.18 which is the calculated elasticity of supply between Y and Z is less than 1, this implies that elasticity of supply between Y and Z is inelastic.
b. True or False: For high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms may need to invest in additional capital in order to increase production further.
This statement is true.
This is because, from part a above, it can be observed that elasticity of supply between W and X when quantity is low is elastic but the elasticity of supply between Y and Z when the quantity is high is inelastic. Therefore, it is true that for high levels of quantity supplied where firms have reached near maximum capacity, supply becomes less elastic because firms may need to invest in additional capital in order to increase production further.
If $4000 is invested at 2% interest, find the value of the investment at the end of 6 years.
An investment of $4000 is deposited into an account in which interest is compounded continuously. Complete the table by filling in the amounts to which the investment grows at the indicated interest rates.
t = 5 years
Rate per year Amount
1%
2%
3%
4%
5%
6%
Answer:
a. Value of investment at the end of 6 years = $4,504
b. Table Completion:
Rate per year Future Value Factor Amount
1% 1.051 $4,204
2% 1.104 $4,416
3% 1.159 $4,636
4% 1.217 $4,868
5% 1.276 $5,104
6% 1.338 $5,352
Explanation:
Data and Calculations:
Investment = $4,000
Interest rate = 2%
Period of investment = 6 years
Future value factor at 2% for 6 years = 1.126
Value of investment at the end of 6 years = $4,504 ($4,000 * 1.126)
b) Investment = $4,000
Interest rates = from 1% to 6%
Period of investment, t = 5 years
Future value factors are as follows:
Rate per year Future Value Factor Amount
1% 1.051 $4,204 ($4,000 * 1.051)
2% 1.104 $4,416 ($4,000 * 1.104)
3% 1.159 $4,636 ($4,000 * 1.159)
4% 1.217 $4,868 ($4,000 * 1.217)
5% 1.276 $5,104 ($4,000 * 1.276)
6% 1.338 $5,352 ($4,000 * 1.338)
On January 1, 2013, the balance in Tabor Co.'s Allowance for Bad Debts account was $13,546. During the first 11 months of the year, bad debts expense of $21,399 was recognized. The balance in the Allowance for Bad Debts account at November 30, 2013, was $9,859. Required: (a) What was the total of accounts written off during the first 11 months
Answer: $25,086
Explanation:
The bad debt written off is calculated by:
= Opening balance in Allowance for bad debts account + Bad debt expense - Closing balance in Allowance for bad debt
= 13,546 + 21,399 - 9,859
= $25,086
XYZ Company manufactures a unique device that is used by internet users to boost Wi-fi signals. The following data relates to the first month of operation:
Beginning inventory 0 units
Units produced 40,000 units
Units sold 35,000 units
Selling price $120 per unit
Marketing and administrative expenses
Variable marketing and administrative expenses per unit $4
Fixed marketing and administrative expenses per month $1,120,000
Manufacturing costs
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost per month $1,280,000
Using the information given, above:
a. Calculate unit product cost under the variable costing method and the absorption costing method.
b. Prepare an Income Statement under the variable costing method, as well as the absorption costing method.
c. Prepare a schedule to reconcile the net operating income under the variable and absorption costing methods
Answer:
XYZ Company
a. Unit product cost under:
1. variable costing method
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Variable marketing and administrative expenses per unit $4
Total variable cost $52
2. absorption costing method:
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost $32 ($1,280,000/40,000)
Total product cost per unit $80
b1. Income Statement under the variable costing method
Sales revenue $4,200,000 ($120 * 35,000)
Cost of goods sold:
Variable cost of goods sold 1,680,000 ($48 * 35,000)
Variable marketing and admin 140,000 ($4 * 35,000)
Total cost of goods sold 1,820,000
Contribution margin $2,380,000
Fixed expenses:
Fixed marketing and
administrative expenses $1,120,000
Fixed manufacturing overhead 1,280,000
Total fixed expenses $2,400,000
Net operating loss $20,000
b2. Income Statement under the absorption costing method
Sales revenue $4,200,000 ($120 * 35,000)
Cost of goods sold:
Variable cost of goods sold 1,920,000 ($48 * 40,000)
Fixed manufacturing overhead 1,280,000
Less Ending inventory (400,000)
Total cost of goods sold 2,800,000
Contribution margin $1,400,000
Period expenses:
Marketing and Administrative:
Fixed $1,120,000
Variable 140,000 $1,260,000
Net operating income $140,000
c. Schedule to reconcile the net operating income under the variable and absorption costing methods:
Net operating income under absorption = $140,000
Fixed cost absorbed in ending inventory = 160,000 ($32 * 5,000)
Net operating loss under variable = ($20,000)
Explanation:
a) Data and Calculations:
Beginning inventory 0 units
Units produced 40,000 units
Units sold 35,000 units
Ending inventory 5,000 units
Selling price $120 per unit
Marketing and administrative expenses:
Variable marketing and administrative expenses per unit $4
Fixed marketing and administrative expenses per month $1,120,000
Manufacturing costs:
Direct materials cost per unit $30
Direct labor cost per unit $14
Variable manufacturing overhead cost per unit $4
Fixed manufacturing overhead cost per month $1,280,000
You expect to receive the annual property Net Operating Income (NOI) from a certain property as followsYear 1 $20,000 Year 2 $22,000 Year 3 $30,000 Year 4 $31,000 Year 5 $40,000 In addition, you expect that you can sell the property at the end of the 5th year for 10 times its expected NOI of that year.A. If your opportunity cost of capital (OCC) is 10%, 1) What is the Present Value of the Property Income over the 5 years? 2) What is the Present Value of the Net Sales Proceeds received in Year 5 3) What is the Total Present Value of the property given the 5 year holding period? 4) Ifyou offer to pay the amount you calculate in Ques A3) above to purchase the property, what would be your total return on the investment? 5) If you offer to pay the amount you calculate in Ques A3) to purchase the property, what do you forecast to be the appreciation in value on the property B. If you pay $350,000 for the property at Year 0, what is the net present value (NPV) of a deal? C. In the situation given in the previous question, what is the IRR?
Answer:
Year 1 Year 2 Year 3 Year 4 Year 5
1. Present value $18,180 $18,172 $22,530 $21,173 $24,840
2. Present value of the net sales proceeds = $248,400
3. Total present value of the property = $104,895
4. Total return on the investment = $143,505
5. Forecasted appreciation in value on the property = $295,105
5B. The net present value (NPV) of the deal, if you pay $350,000 at Year 0 = -$101,600
5C. The IRR, using the short-cut method, = 15%
Explanation:
a) Data and Calculations:
Opportunity cost of capital (OCC) = 10%
NOI at the end of the 5th year = $40,000
Selling price at the end of the 5th year = $400,000 ($40,000 * 10)
Year 1 Year 2 Year 3 Year 4 Year 5
Net Operating
Income (NOI) $20,000 $22,000 $30,000 $31,000 $40,000
Discount factor 0.909 0.826 0.751 0.683 0.621
1. Present value $18,180 $18,172 $22,530 $21,173 $24,840
2. Present value of the net sales proceeds = $248,400 ($400,000 * 0.621)
3. Total present value of the property = $104,895 ($18,180 + $18,172 + $22,530 + $21,173 + $24,840)
4. Total return on the investment = $143,505 ($248,400 - $104,895)
5. Forecasted appreciation in value on the property = $295,105 ($400,000 - $104,895)
5B. The net present value (NPV) of the deal, if you pay $350,000 at Year 0 = -$101,600 ($248,400 - $350,000)
5C. The IRR, using the short-cut method, = 15% (100%/5 * 75%)
Select any local/international brand of your choice
• Assess the advertisements of brand to identify the following:
o What factors of perception the brand Is implying to break clutter and gain attention?
o What type of learning theory is the brand using and how is it promoting memory retrieval with respect to the brand?
o How is the brand motivating the customer? (use theories to strengthen your answer)
o Describe the brands personality using the brand personality theory.
o Describe the message appeal being used in the advertisement and how?
Answer:
Following are the response to these questions:
Explanation:
Coca-Cola is my international brand this business leverages media and internet marketing, using TV and other social media platforms. The company uses cognitive and emotional learning theory to draw attention and promote memory restoration from branding.
The company's products ads are full of sadness to encourage customers to acquire their goods. Coca-Cola uses theory to establish its brand accurately that resonates with the correct customer. It aims to generate a positive emotional response in this context from a targeted consumer demographic. Its company's newest appeal message for the advertisement is 'Taste the feeling' and it causes people to feel like continuing to use Coca-Cola drinks.
Stocks have a 12% expected return and 22% risk. Bonds have a 7% expected return and 10% risk. The expected return of a portfolio comprised of 70% stocks and 30% bonds is: Group of answer choices
Answer:
10.5%
Explanation:
Calculation to determine Expected return of portfolio
Using this formula
Expected return of portfolio = Ws*E(rs) + Wb*E(rb)
Where,
Expected return stock E(rs) = 12%
Expected return bond E(rb) = 7%
Weight of stock Ws = 0.70
Weight of bond Wb = 0.30
Let plug in the formula
Expected return of portfolio= 0.7*12 + 0.3*7
Expected return of portfolio = 10.5%
Therefore Expected return of portfolio is 10.5%
Identify each of the following reconciling items as:
a. an addition to the cash balance according to the bank statement
b. a deduction from the cash balance according to the bank statement
c. an addition to the cash balance according to the company's records
d. a deduction from the cash balance according to the company's records
Item Treatment
1. Bank service charges, $30.
2. Check of a customer returned by bank to company because of insufficient funds, $400.
3. Check for $320 incorrectly recorded by the company as $230.
4. Check for $1,100 incorrectly charged by bank as $110.
5. Deposit in transit, $3,300.
6. Outstanding checks, $7,950.
7. Note collected by bank, $10,500.
Answer:
Reconciling Items
Item Treatment
1. b. a deduction from the cash balance according to the bank statement
2. b. a deduction from the cash balance according to the bank statement
3. d. a deduction from the cash balance according to the company's records
4. a. an addition to the cash balance according to the bank statement
5. a. an addition to the cash balance according to the bank statement
6. a. an addition to the cash balance according to the bank statement
7. a. an addition to the cash balance according to the bank statement
Explanation:
a) Data and Analysis:
1. Bank service charges, $30 Cash $30
2. Accounts Receivable (NSF) $400 Cash $400
3. Accounts Payable $90 Cash $90
4. Cash $990 Bank $990.
5. Bank $3,300 Cash $3,300
6. Cash $7,950 Bank $7,950
7. Cash $10,500 Accounts Receivable $10,500
Internal control procedures for cash receipts do not require that:_____.
a. Custody over cash is kept separate from its recordkeeping.
b. All collections for sales are received immediately upon making the sales.
c. Clerks having access to cash in a cash register should not have access to the register tape or file.
d. An employee with no access to cash receipts should compare the total cash recorded by the register with the record of cash receipts reported by the cashier.
e. Cash sales should be recorded on a cash register at the time of each sale.
f. All of these.
Answer:
b. All collections for sales are received immediately upon making the sales.
Explanation:
Internal control, regarded as a process used in assuring objective of an organization in operational effectiveness as well as efficiency and reliable financial reporting, it is also used in assuring of compliance with laws as well as regulations and policies. Generally, internal control can be described as everything which is able to controls risks to an organization. It is a way the
resources of an organization are been
measured as well as been directed and monitored.
It should be noted that Internal control procedures for cash receipts require that:.
✓Custody over cash is kept separate from its recordkeeping.
✓Clerks having access to cash in a cash register should not have access to the register tape or file.
✓An employee with no access to cash receipts should compare the total cash recorded by the register with the record of cash receipts reported by the cashier.
✓Cash sales should be recorded on a cash register at the time of each sale
15) A factory manager can improve EVA by A) increasing earnings and increasing capital employed. B) increasing capital employed and reducing earnings. C) reducing earnings and reducing capital employed. D) increasing earnings and reducing capital employed.
Answer: D) increasing earnings and reducing capital employed.
Explanation:
Economic Value Added (EVA) shows how much residual income that a company has after it subtracts the cost of the capital invested from the operating profit that the company got.
If a manager wants to increase EVA therefore, they need to reduce the capital used so that the cost of capital will be less. This should be done while earnings are increased for an even higher increase in EVA.
Which per unit cost does the slope of the total cost line represent? Group of answer choices Fixed Variable. Semivariable Step-variable
Answer: Variable cost
Explanation:
The slope of a regression line is meant to represent the change in the total variable or y, as a result of a change in the number of independent observations or x.
The cost that changes during production as a result of an increase in x which is the volume of products, is the variable cost so it is the slope of the total cost line,
Slope of total cost line:
y = mx + c
y = total cost
m = variable cost. m is also slope.
x = production volume
c = fixed cost
Camden Biotechnology began operations in September 2013. The following selected transactions relate to liabilities of the company for September 2013 through March 2014. Camden's fiscal year ends on December 31.Its financial statements are issued in April.2013a. On September 5, opened checking accounts at Second Commercial Bank and negotiated a short-term line of credit of up to $15,000,000 at the bank's prime rate (10.5% at the time). The company will pay no commitment fees.b. On October 1, borrowed $12 million cash from Second Commercial Bank under the line of credit and issued a five-month promissory note. Interest at the prime rate of 10% was payable at maturity. Management planned to issue 10-year bonds in February to repay the note.c. Received $2,600 of refundable deposits in December for reusable containers used to transport and store chemical-based products.d. For the September-December period, sales on account totaled $4,100,000. The state sales tax rate is 3% and the local sales tax rate is 3%. (This is a summary journal entry for the many individual sales transactions for the period.)e. Recorded the adjusting entry for accrued interest.2014f. In February, issued $10 million of 10-year bonds at face value and paid the bank loan on the March 1 due date.g. Half of the storage containers covered by refundable deposits were returned in March. The remaining containers are expected to be returned during the next six months.Required:1. Prepare the appropriate journal entries for these transactions.2. Prepare the current and long-term liability sections of the December 31, 2013, balance sheet. Trade accounts payable on that date were $252,000.
Answer:
Cash (Dr.) $12,000,000
Short term notes payable (Cr.) $12,000,000
Cash (Dr.) $2,600
Liability of refundable (Cr.) $2,600
Interest Expense (Dr.) $250,000
Interest Payable (Cr.) $250,000
Accounts receivable (Dr.) $4,100,000
Sales Revenue (Cr.) $3,977,000
Sales Tax Payable (Cr.) $123,000
Cash (Dr.) $10,000,000
Bond Payable (Cr.) $10,000,000
Explanation:
Liability Schedule 2013,
Accounts Payable $252,000
Current Portion of notes payable $2,000,000
Interest Payable $250,000
Sales tax Payable $123,000
Liability for refundable deposit $2,600
Total Current Liability $2,627,600
Francisco buys five million sheets of paper from a vendor for his printing firm. He is satisfied with the product, and he orders the same quantity from the same vendor every week. This is most likely an example of a(n) ______.
Answer: Straight rebuy
Explanation:
A straight rebuy is used to describe a situation where a person or company buys the same good, in the same quantity, from the same supplier, on a routine basis.
Francisco here is going to be buying the same quantity of paper from this particular vendor every week. This is the textbook definition of a straight rebuy.
Suppose that a haircut will give Dawn 2,000 units of utility and cost her $40, whereas a set of acrylic nails costs $25 and yields 1,000 units of util. Most likely Dawn should:_____.
A. be indifferent between the two choices.
B. choose the haircut because she will receive 50 units of utility per dollar as compared with 45 units of utility per dollar for the nails.
C. choose the haircut because each unit of utility will cost her 2 cents as compared with 2.5 cents for the nails.
D. choose the nails because she will obtain 50 units of utility per dollar as compared with 40 units of utility per dollar for the haircut.
Answer:
b
Explanation:
Marginal utility is the additional utility derived from consuming one more unit of a good
the consumption decision is to consume more units of a good that gives the higher utility per good.
Marginal utility per unit of good = marginal utility / price of the good
haircut = 2000 / 40 = 50
Nails = 1000 /25 = 40
the utility per unit for haircut is greater for haircut than nails, so he would choose haircut
When marginal utility is positive, it means that increasing consumption by one unit increases total utility
When marginal utility is negative, it means that increasing consumption by one unit decreases total utility
When marginal utility is zero, total utility has reached its maximum and no more units of goods would be consumed
Suppose the market price of corn is $5.50 per bushel. Which of the following is not one of the three conditions that will need to be satisfied for the corn market to be in equilibrium at this price? A. Both the buyers and sellers of corn could benefit by making small changes to their market behaviors. B. The cost to corn farmers of growing the corn must be less than $5.50 per bushel. C. The quantity of corn produced by corn farmers will equal the quantity purchased by buyers. D. The buyers of corn will only use it for activities that they feel are worth at least $5.50 per bushel.
Answer:
A
Explanation:
If you encounter a process that has limited flexibility, shorter lead times, and cheaper products, customization most likely is occuring:
Answer: late in the supply chain
Explanation:
Assemble to order refers to a strategy whereby the products ordered by customers are manufactured quickly while they are customizable to an extent
Even though the basic parts of the product are manufactured already, they're not yet assembled until an order comes in.
If a process that has limited flexibility, shorter lead times, and cheaper products, customization most likely is occuring late in the supply chain.
In a situation where a process with limited flexibility, shorter lead times, and cheaper products, customization of the product or service will most likely occur D. Late in the Supply Chain
Given the process's limited flexibility and shorter lead times, customization, which is a process that tailors a product or service to meet specific customer's or market's demands, cannot occur early, at every step of the Supply Chain, or before procurement of raw materials.
Thus, customization occurs later in the Supply Chain when the goods are about to be delivered to the customer because delivery and satisfying customers or the market are the ultimate goals of any Supply Chain management.
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When the United States sends money to Japan to help earthquake survivors, in which account is this transaction recorded
Answer:
When the United States sends money to Japan to help earthquake survivors, in which account is this transaction recorded? o credit item in that country's balance of payments.
