Answer:
The Consumer Price Index (CPI) is determined each month by
comparing the value of a market basket of goods that consumers typically purchase to the value of the basket in a base year.
Explanation:
The US Consumer Price Index (CPI) is an important statistical tool for identifying inflation and deflation periods in the US economy. It computes the weighted average of prices of a predetermined basket of consumer goods and services. With the CPI changes, the assessment of the general cost of living in the economy becomes easier.
Enter the following cash payments transactions in a general journal: Sept. 5 Issued Check No. 318 to Clinton Corp. for merchandise purchased August 28, $6,300, terms 2/10, n/30. Payment is made within the discount period. 12 Issued Check No. 319 to Martin Company for merchandise purchased September 2, $7,500, terms 1/10, n/30. A credit memo had been received on September 8 from Martin Company for merchandise returned, $500. Payment is made within the discount period after deduction for the return dated September 8. 19 Issued Check No. 320 to Expert Systems for merchandise purchased August 20, $3,900, terms n/30. 27 Issued Check No. 321 to Dynamic Data for merchandise purchased September 17, $9,000, terms 2/10, n/30. Payment is made within the discount period g
Answer:
Cash Payments Transactions
General Journal
Sept. 5: Debit Accounts payable (Clinton Corp.) $6,300
Credit Cash $6,174
Credit Cash Discounts $126
To record the payment, via Check No. 318 for full settlement, including discount.
Sept. 12: Debit Accounts payable (Martin Company) $7,000
Credit Cash $6,930
Credit Cash Discounts $70
To record the payment on account, via Check No. 319, including discount.
Sept. 19: Debit Accounts payable (Expert Systems) $3,900
Credit Cash $3,900
To record payment on account.
Sept. 27 Debit Accounts payable (Dynamic Data) $9,000
Credit Cash $8,820
Credit Cash Discounts $180
To record payment on account, including discount.
Explanation:
a) Data and Analysis:
Sept. 5: Accounts payable (Clinton Corp.) $6,300 Cash $6,174 Cash Discounts $126 Check No. 318
Sept. 12: Accounts payable (Martin Company) $7,000 Cash $6,930 Cash Discounts $70 Check No. 319
Sept. 19: Accounts payable (Expert Systems) $3,900 Cash $3,900
Sept. 27 Accounts payable (Dynamic Data) $9,000 Cash $8,820 Cash Discounts $180
An asset used in a four-year project falls in the five-year MACRS class for tax purposes. The asset has an acquisition cost of $6,020,000 and will be sold for $1,220,000 at the end of the project. If the tax rate is 35 percent, what is the aftertax salvage value of the asset
Answer:
The after-tax salvage value of the asset is:
= $793,000.
Explanation:
a) Data and Calculations:
Asset acquisition cost = $6,020,000
Salvage value = $1,220,000
MACRS Depreciation Expenses = $4,800,000
Project useful life or project duration = 5 years
Tax rate = 35%
Tax expense = $427,000
After-tax salvage value = $793,000 ($1,220,000 - $427,000)
b) The salvage value of the project asset is the recovery or residual value after depreciation expenses have been recognized over the project asset's useful life. Depreciation is an accounting method of spreading the cost of an asset over its useful life. There are many depreciation methods, including straight-line, double-declining, unit-of-production, sum-of-the-years digits, etc.
Excess reserves A. are loans made at above market interest rates. B. are the deposits that banks do not use to make loans. C. are reserves banks keep to meet the reserve requirement. D. are reserves banks keep above the legal requirement. Suppose the required reserve ratio is % and a bank has the following balance sheet: Assets Liabilities Reserves $ Deposits $ Loans $ This bank keeps required reserves of $ nothing and excess reserves of $ nothing. (Enter your responses as integers.)
Answer and Explanation:
The excess reserves are the reserves banks that maintain more the legal requirement. It shows the difference between the required reserve and the actual reserve
Hence, the last option is correct
Now the required reserve is
= ($11,000 × 11%)
= $1,210
And, the excess reserve is
= $2,200 - $1,210
= $990
Hence, the same would be relevant
Exchange rate pass-through may be defined as: the degree to which the prices of imported and exported goods change as a result of exchange rate changes. the bid/ask spread on currency exchange rate transactions. the practice by Great Britain of maintaining the relative strength of the currencies of the Commonwealth countries under the current floating exchange rate regime. the PPP of lesser-developed countries.
Answer:
the degree to which the prices of imported and exported goods change as a result of exchange rate changes.
Explanation:
The units of an item available for sale during the year were as follows:
Jan. 1 Inventory 1,000 units at $120
Feb. 17 Purchases 1,375 units at $128
July 21 Purchases 1,500 units at $136
Nov. 23 Purchases 1,125 units at $140
There are 1,200 units of the item in the physical inventory at December 31. The Inventony periodic inventory system is used.
a. Determine the inventory cost by the first-in, first-out method.
b. Determine the inventory cost by the last-in, first-out method.
c. Determine the inventory cost by the weighted average cost method.
Answer:
FIFO LIFO Weighted Average
Inventory cost = $167,700 $145,600 $157,800
Explanation:
a) Data and Calculations:
Jan. 1 Inventory 1,000 units at $120 $120,000 $120,000
Feb. 17 Purchases 1,375 units at $128 176,000 296,000
July 21 Purchases 1,500 units at $136 204,000 500,000
Nov. 23 Purchases 1,125 units at $140 157,500 657,500
Dec. 31 Total units 5,000 $657,500
Dec. 31 Inventory 1,200
Dec. 31 Units sold 3,800
Inventory cost by:
FIFO ( first-in, first-out method)
July 21 Purchases 75 units at $136 $10,200
Nov. 23 Purchases 1,125 units at $140 157,500
Dec. 31 Inventory 1,200 $167,700
LIFO (last-in, first-out method)
Jan. 1 Inventory 1,000 units at $120 $120,000
Feb. 17 Purchases 200 units at $128 25,600
Dec. 31 Inventory 1,200 $145,600
Weighted-Average Cost Method
Total cost of goods available/Total units available for sale
= $657,500/5,000
= $131.50 per unit
Inventory cost = $157,800 ($131.50 * 1,200)
Item1 5 points eBookPrintReferencesCheck my workCheck My Work button is now enabled2Item 1 Problem 2-26A Journal Entries; T-Accounts; Financial Statements [LO2-1, LO2-2, LO2-3, LO2-4, LO2-5, LO2-6, LO2-7] Froya Fabrikker A/S of Bergen, Norway, is a small company that manufactures specialty heavy equipment for use in North Sea oil fields. The company uses a job-order costing system and applies manufacturing overhead cost to jobs on the basis of direct labor-hours. Its predetermined overhead rate was based on a cost formula that estimated $378,000 of manufacturing overhead for an estimated allocation base of 900 direct labor-hours. The following transactions took place during the year (all purchases and services were acquired on account): a. Raw materials purchased for use in production, $285,000. b. Raw materials requisitioned for use in production (all direct materials), $270,000. c. Utility bills were incurred, $76,000 (85% related to factory operations, and the remainder related to selling and administrative activities). d. Salary and wage costs were incurred:
Answer:
journal entries:
raw materials 285,000 debit
Account Payable 285,000 credit
--to record purchase of materials--
Work in Process Inventory 270,000 debit
Raw Materials 270,000 credit
--to record use of direct materials--
Factory overhead 64,600 debit
Utilities Expense 11,400 debit
Utilities Payable 76,000 credit
--to record incurred utilities in plant and non-manufacturing departments--
Explanation:
We record the journal entries considering that debit = credit
(a) as the business didn't pay cash we use account payable account
(b) we transfer the used amount of materials into WIP inventory
(c) we calculate the proportional use for factory and non-manufacturing departments
76,000 x 85% = 64,600
76,000 x 15% = 11,400
“Employers should be concerned with helping employees cope with both job-related stress and off-the-job stress.” Do you agree or disagree? Discuss.
Answer:
Agreed.
Explanation:
I agree with employers helping employees cope with both job-related stress and off-the-job stress because it can help improve the employee's mental health. You see, if you are already stressed enough about work, then you won't really have time to focus on yourself which can oftentimes lead to su!c!de. I think that with the employer's help, they can reassure the employee and help them maintain themselves.
The following information is available: Units in process, Dec. 1 (60 percent converted) 2,000 units Units in process, Dec. 31 (30 percent converted) 1,000 units Units started during the month 7,500 units Materials are added at the beginning of the process. How many equivalent units in process for conversion were there in December using the weighted average method? Group of answer choices
Answer:
the equivalent unit for conversion is 8,800 units
Explanation:
The computation of the equivalent unit for conversion is shown below:
= Units transferred + ending units
= (2,000 + 7,500 - 1,000) × 100 units + 1,000 units ×30%
= 8,500 units + 300 units
= 8,800 units
Hence, the equivalent unit for conversion is 8,800 units
We simply used the above formula for determining the conversion units
Reddy Corporation has collected the following data for the month of June: Actual total factory overhead incurred $61,150 Budgeted fixed factory overhead costs $40,700 Activity level, in direct labor hours 14,800 Actual direct labor hours 17,800 Standard hours for output this period 16,800 Total factory overhead rate $4.30 What is the variable overhead efficiency variance
Answer:
Variable overhead efficiency variance = $8,600 favorable
Explanation:
Variable overhead efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours for same multiplied by the standard variable overhead rate
Variable overhead efficiency variance is determined as follows:
Hours
standard hours for actual output 16,800
Actual hours 14,800
Efficiency variance 2,000 favorable
× standard variable OH rate × $4.30
Variable overhead efficiency variance ($) $8,600 favorable
On April 17, 2021, the Loadstone Mining Company purchased the rights to a coal mine. The purchase price plus additional costs necessary to prepare the mine for extraction of the coal totaled $6,000,000. The company expects to extract 1,000,000 tons of coal during a four-year period. During 2021, 250,000 tons were extracted and sold immediately. Required: 1. Calculate depletion for 2021. 2. Is depletion considered part of the product cost and included in the cost of inventory?
Answer:
The Loadstone Mining Company
1. The depletion for 2021 is:
= $1,500,000.
2. Depletion is considered part of the product cost and included in the cost of inventory.
Explanation:
a) Cost of rights to a coal mine = $6,000,000
Expected tons of coal to be extracted = 1,000,000 tons
Duration of the coal mine = 4 years
Depletion rate per ton = $6 ($6,000,000/1,000,000)
2021 depletion = $6 * 250,000 = $1,500,000
b) Depletion is like depreciation. While depreciation spreads the cost of a tangible asset over its estimated useful life, depletion measures the cost of extracting natural resources based on the number of units extracted vis-a-vis the total quantity available. Amortization is another related term but relates to intangible assets. It is the deduction of the value of an intangible asset over its useful life.
Since 1970, Super Rise, Inc., has provided maintenance services for elevators. On January 1, 2016, Super Rise obtains a contract to maintain an elevator in a 90-story building in New York City for 10 months and receives a fixed payment of $95,000.
The contract specifies that Super Rise will receive an additional $47,500 at the end of the 10 months if there is no unexpected delay, stoppage, or accident during the year.
Super Rise estimates variable consideration to be the most likely amount it will receive.
Required:
1. Assume that, because the building sees a constant flux of people throughout the day, Super Rise is allowed to access the elevators and related mechanical equipment only between 3am and 5am on any given day, which is insufficient to perform some of the more time-consuming repair work. As a result, Super Rise believes that unexpected delays are likely and that it will not earn the bonus. Prepare the journal entry Super Rise would record on January 1. (If no entry is required for a particular transaction/event, record "No journal entry required" in the first account field.)
2. Assume instead that Super Rise knows at the inception of the contract that it will be given unlimited access to the elevators and related equipment each day, with the right to schedule repair sessions any time. When given these terms and conditions, Super Rise has never had any delays or accidents in the past. Prepare the journal entry Super Rise would record on January 31 to record one month of revenue.(If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)
Record any necessary entry on January 31 to record one month of revenue
3. Assume the same facts as requirement 1. In addition assume that, on May 31, Super Rise determines that it does not need to spend more than two hours on any given day to operate the elevator safely because the client’s elevator is relatively new. Therefore, Super Rise believes that unexpected delays are very unlikely. Prepare the journal entry Super Rise would record on May 31 to recognize May revenue and any necessary revision in its estimated bonus receivable. (If no entry is required for a particular transaction/event, select "No journal entry required" in the first account field.)
Record any necessary entry on May 31 to recognize May revenue and any necessary revision in its estimated bonus receivable.
Answer:
1) Jan 1
Dr Cash $95,000
Cr To Deferred Revenue $95,000
2) Jan 31
Dr Deferred Revenue $9,500
Dr Bonus Receivable $4,750
Cr To Service Revenue $14,250
3) May 31
Dr Deferred Revenue $9,500
Dr Bonus Receivable $23,750
Cr To Service Revenue $33,250
Explanation:
1) Preparation of the journal entry that Super Rise would record on January 1.
Jan 1
Dr Cash $95,000
Cr To Deferred Revenue $95,000
2) Preparation of the journal entry that Super Rise would record on Jan 31
Jan 31
Dr Deferred Revenue $9,500
($95,000/10month)
Dr Bonus Receivable $4,750
($47,500/10months)
Cr To Service Revenue $14,250
($9,500+$4,750)
3) Preparation of the journal entry that Super Rise would record on May 31
May 31
Dr Deferred Revenue $9,500
($95,000/10month)
Dr Bonus Receivable $23,750
($4,750*5 ) from jan to may
Cr To Service Revenue $33,250
($9,500+$23,750)
Julio produces two types of calculator, standard and deluxe. The company is currently using a traditional costing system with machine hours as the cost driver but is considering a move to activity-based costing. In preparing for the possible switch, Julio has identified two cost pools: materials handling and setup. The collected data follow:
Standard Model Deluxe Model
Number of machine hours 26,500 31,500
Number of material moves 625 925
Number of setups 85 575
Total estimated overhead costs are $313, 020, of which $183, 750 is assigned to the material handling cost pool and $179, 180 is assigned to the setup cost pool.
Required:
1. Calculate the overhead assigned to each product using the traditional cost system.
2. Calculate the overhead assigned to each product using ABC.
Answer:
Results are below.
Explanation:
a)
To calculate the predetermined manufacturing overhead rate we need to use the following formula:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 313,020 / 58,000
Predetermined manufacturing overhead rate= $5.4 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Standard= 5.4*26,500= $143,100
Deluxe= 5.4*31,500= $170,100
b)
First, we need to calculate the allocation rates:
Material handling= 183,750 / 1,550= $118.55 per material moves
Setup= 179,180 / 660= $271.48 per setup
Now, we can allocate overhead:
Standard= 118.55*625 + 271.48*85= $97,169.55
Deluxe= 118.55*925 + 271.48*575= $265,759.75
Bearcat Construction begins operations in March and has the following transactions.
March 1 Issue common stock for $16,500.
March 5 Obtain $8,100 loan from the bank by signing a note.
March 10 Purchase construction equipment for $20,500 cash.
March 15 Purchase advertising for the current month for $1,100 cash.
March 22 Provide construction services for $17,100 on account.
March 27 Receive $12,100 cash on account from March 22 services.
March 28 Pay salaries for the current month of $5,100.
Required:
Record each transaction.
Answer:
Mar. 1
Dr Cash $16,500
Cr Common stock $16,500
Mar. 5
Dr Cash $8,100
Cr Notes payable $8,100
Mar. 10
Dr Equipment $20,500
Cr Cash $20,500
Mar. 15
Dr Advertising expense .$1,100
Cr Cash $1,100
Mar. 22
Dr Accounts receivable
$17,100
Cr Service revenue $17,100
Mar. 27
Dr Cash $12,100
Cr Accounts receivable $12,100
Mar. 28
Dr Salaries expense $5,100
Cr Cash $5,100
Explanation:
Preparation of the journal entries
Mar. 1
Dr Cash $16,500
Cr Common stock $16,500
Mar. 5
Dr Cash $8,100
Cr Notes payable $8,100
Mar. 10
Dr Equipment $20,500
Cr Cash $20,500
Mar. 15
Dr Advertising expense .$1,100
Cr Cash $1,100
Mar. 22
Dr Accounts receivable
$17,100
Cr Service revenue $17,100
Mar. 27
Dr Cash $12,100
Cr Accounts receivable $12,100
Mar. 28
Dr Salaries expense $5,100
Cr Cash $5,100
For safety purposes, a circus requires that all employees who perform acrobatic stunts weigh between 120 and 140 pounds. Today, Vivian, a long-time acrobat for the circus steps on a scale for a weight-check. The scale says that she weighs 114 pounds and thus is not within the required 120-140 pound range. Vivian is surprised and upset and asks to be re-weighed. When she steps on the scale again, it says she weighs 114 pounds. When Vivian checks her weight a third time, the scale again says she weighs 114 pounds. Which of the following statements most accurately describes the reliability and validity of the scale?
a. High reliability and high validity
b. Unknown reliability and low validity
c. Low reliability and high validity
d. High reliability and unknown validity
Answer:
The statement that most accurately describes the reliability and validity of the scale is:
a. High reliability and high validity
Explanation:
a) Data and Calculations:
Standard acrobatic stunts' weights = 120 and 140 pounds range
Vivian's weight-check results = 114 three times
b) Reliability entails the consistency of a measure for getting the same result after every measurement. Validity denotes the accuracy of a measure, especially since the measurement obtained is what it is supposed to measure. Therefore, tests that are highly reliable are said to be highly valid and vice versa.
When the price level falls, the number of dollars needed to buy a representative basket of goods Group of answer choices decreases, so the value of money rises. increases, so the value of money rises. increases, so the value of money falls. decreases, so the value of money falls.
Answer:
decreases, so the value of money rises
Explanation:
Let us assume the starting price level is $100 so here the amount that need to pay is $100 now the price level falls to $50 so again the amount that should be paid is $50 so as we can see that if there is any fall in the price level so the number of dollar would be decreased therefore the value of the money would be increased
When the price level is 50 so the consumer purchased two things
Hence, the first option is correct
Jim is a manager of a restaurant. He is very concerned with efficiency and goal accomplishment as well as very intent on making employees happy through lots of participation and open-mindedness. Whats the answer?
A. Jim is a high-high style leader.
B. Jim is low in initiating structure and high in consideration.
C. Jim is an impoverished leader.
D. Jim is a compromiser.
Answer:
A. Jim is a high-high style leader.
Explanation:
As in the given situation it is mentioned that Jim would be very concerned with the efficiency and the accomplishment of the goal so this means he is a high-high style leader as these type of leaders would try to collaborate and cooperate in order to motivate for work in an efficient manner so that the company goals could be achieved
hence, the first option is correct
Bentley Enterprises uses process costing to control costs in the manufacture of Dust Sensors for the mining industry. The following information pertains to operations for November. (CMA Exam adapted) Units Work in process, November 1st 16,300 Started in production during November 100,600 Work in process, November 30th 24,600 The beginning inventory was 60% complete as to materials and 20% complete as to conversion costs. The ending inventory was 90% complete as to materials and 40% complete as to conversion costs. Costs pertaining to November are as follows: Beginning inventory: direct materials, $55,160; direct labor, $20,620; manufacturing overhead, $15,540. Costs incurred during the month: direct materials, $470,970; direct labor, $190,740; manufacturing overhead, $399,080. What are the total costs in the ending Work-in-Process Inventory assuming Bentley uses first-in, first-out (FIFO) process costing
Answer:
$146,443.80
Explanation:
Step 1 : Equivalent Units of Production
FIFO method is interested with Units worked on during the Production Period. Therefore make sure you begin by finishing Opening Work in Process Units.
1. Materials
To Finish Work in Process Inventory (16,300 x 40%) 6,520
Started and Completed (100,600 - 16,300) x 100 % 84,300
Ending Inventory (24,600 x 90%) 22,140
Equivalent units of Production 112,960
2. Conversion Cost
To Finish Work in Process Inventory (16,300 x 80%) 13,040
Started and Completed (100,600 - 16,300) x 100 % 84,300
Ending Inventory (24,600 x 40%) 9,840
Equivalent units of Production 107,180
Step 2 : Cost per equivalent unit
FIFO method is only interested in Costs incurred during the Production Period, therefore Cost in Beginning Inventory must be ignored as these were accounted for in previous year.
Cost per equivalent unit = Total Cost ÷ Total Equivalent Units
Materials = $470,970 ÷ 112,960 = $4.17
Conversion Costs = ($190,740 + $399,080) ÷ 107,180 = $5.50
Step 3 : Cost in the ending Work-in-Process Inventory
Work-in-Process Inventory = Material Cost + Conversion Cost
= 22,140 x $4.17 + 9,840 x $5.50
= $146,443.80
Conclusion :
The total costs in the ending Work-in-Process Inventory assuming Bentley uses first-in, first-out (FIFO) process costing is $146,443.80
Which of the following arguments can be used to correctly defend the WTO’s position on retaliatory tariffs? Check all that apply. A countervailing duty protects import-competing producers. Convincing the government to impose antidumping duties is less costly than facing fair competition. Accusing foreign firms of dumping is less costly than producing goods competitively.
Answer:
The arguments that can be used to correctly defend the WTO's position on retaliatory tariffs are:
Convincing the government to impose antidumping duties is less costly than facing fair competition.
Accusing foreign firms of dumping is less costly than producing goods competitively.
Explanation:
A government can impose anti-dumping duties on certain imports when it believes that the prices of the imports are below their fair market values. Truly, some exports have been found to export goods at prices significantly below their domestic market prices. Dumping shows that the export prices may even be below their production costs.
How can life expectancy and literacy rates affect the quality of labor in the economy?
Answer:
I think it'll affect in a negative way cuz...
Explanation:
if life expectancy is higher than literacy rates then we have more ppl to provide for therefore more labour must be done but since the literacy rates are lower, not many ppl will be literate therefore no labour can be done!
University Printers has two service departments (Maintenance and Personnel) and two operating departments (Printing and Developing). Management has decided to allocate maintenance costs on the basis of machine-hours in each department and personnel costs on the basis of labor-hours worked by the employees in each. The following data appear in the company records for the current period:
Maintenance Personnel Printing Developing
Machine-hours — 1,800 1,800 5,400
Labor-hours 650 — 650 2,600
Department direct costs $4,000 $14,000 $15,900 $12,600
Required:
Use the direct method to allocate these service department costs to the operating departments. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations.)
Maintenance Personnel Printing Developing
service dept. costs
maintenance allocation
personnel allocation
total cost allocation
Answer:
Maintenance $0
Personnel $0
Printing $19,700
Developing $26,800
Explanation:
Calculation to allocate these service department costs to the operating departments Using the direct method
Particulars Allocation Basis Maintenance Personnel Printing Developing
Cost as per primary data
$4,000 $14,000 $15,900 $12,600
SERVICE DEPARTMENT COSTS:
Maintenance allocation (S)
$0 $0 $1,000 $3,000
Personnel allocation (S)
$0 $0 $2,800 $11,200
Total Costs Allocated
$0 $0 $19,700 $26,800
Computation for the allocation of costs:
Maintenance = $4,000 *1,800/(1,800+5,400)
Maintenance = $4,000 *1,800/7,200
Maintenance =$1,000
Personnel = $14,000 *650/650+2,600
Personnel=$14,000 *650/3,250
Personnel=$2,800
Maintenance = $4,000 *5,400/(1,800+5,400)
Maintenance = $4,000 *5,400/7,200
Maintenance = $3,000
Personnel = $14,000 *2,600/650+2,600
Personnel = $14,000 *2,600/3,250
Personnel = $11,200
Therefore allocation of these service department costs to the operating departments Using the direct method will be :
Maintenance $0
Personnel $0
Printing $19,700
Developing $26,800
Bank of the Atlantic has liabilities of $4 million with an average maturity of two years paying interest rates of 4.0 percent annually. It has assets of $5 million with an average maturity of 5 years earning interest rates of 6.0 percent annually. What is the bank's net interest income for the current year
Answer:
the bank net interest income for the current year is $140,000
Explanation:
The computation of the bank net interest income for the current year is shown below:
= (Interest earning assets × Interest rate earned)-(Interest bearing liabilities × Interest rate rate)
= $5,000,000 × 6% - $4,000,000 × 4%
=$300,000 - $160,000
= $140,000
Hence, the bank net interest income for the current year is $140,000
Sales revenue
may be recorded before cash is collected.
will always equal cash collections in a month.
only results from credit sales.
is only recorded after cash is collected.
Answer:
may be recorded before cash is collected.
Explanation:
Sales revenue "may be recorded before cash is collected."
This is according to Accrual accounting, which unlike the cash model that requires payments to be made before sales revenue is recorded.
In the Accrual accounting model, sales revenue recording is not based on cash collection before it is recorded. Here, the revenue is recorded in as much the transferred goods are made and collection of payment is determined or expected.
Cullumber Company issued $445,000, 15-year, 8% bonds at 96. (a) Prepare the journal entry to record the sale of these bonds on January 1, 2022. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 enter an account title to record the sale of these bonds on January 1, 2017enter an account title to record the sale of these bonds on January 1, 2017 enter a debit amountenter a debit amount enter a credit amountenter a credit amount enter an account title to record the sale of these bonds on January 1, 2017enter an account title to record the sale of these bonds on January 1, 2017
Answer:
Dr Cash $427,200
Dr Discount on Bonds payable $17,800
Cr Bondss payable $445,000
Explanation:
Preparation of the journal entry to record the sale of these bonds on January 1, 2022
Dr Cash $427,200
($445,000 × 0.96)
Dr Discount on Bonds payable $17,800
($445,000-$427,200)
Cr Bonds payable $445,000
(Being to record the sale of the bond )
At the end of 2019, Wildhorse Co. has accounts receivable of $731,300 and an allowance for doubtful accounts of $65,400. On January 24, 2020, the company learns that its receivable from Megan Gray is not collectible, and management authorizes a write-off of $6,900. On March 4, 2020, Wildhorse Co. receives payment of $6,900 in full from Megan Gray. Prepare the journal entries to record this transaction.
Answer and Explanation:
The journal entry to record the transaction is shown below:
Accounts receivable $6,900
To allowance for doubtful accounts $6,900
(Being reversing the write off is recorded)
Here account receivable is debited as it increased the assets and credited the allowance as it decreased the assets
Cash $6,900
To Accounts receivable $6,900
(Being cash collection from write off account is recorded)
Here the cash is debited as it decreased the assets and credited the account receivable as it decreased the assets
Product A is normally sold for $9.60 per unit. A special price of $7.20 is offered for the export market. The variable production cost is $5.00 per unit. An additional export tariff of 15% of revenue must be paid for all export products. Assume there is sufficient capacity for the special order.
Required:
A. Prepare a differential analysis dated March 16 on whether to reject (Alternative 1) or accept (Alternative 2) the special order.
B. Should the special order be rejected (Alternative 1) or accepted (Alternative 2)?
2) Product B has revenue of $39,500, variable cost of goods sold of $25,500, variable selling expenses of $16,500, and fixed costs of $15,000, creating a loss from operations of $17,500.
Required:
A. Prepare a differential analysis as of May 9 to determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2), assuming fixed costs are unaffected by the decision.
B. Determine if Product B should be continued (Alternative 1) or discontinued (Alternative 2).
Answer:
A. Differential Analysis dated March 16
Reject Accept
Sales revenue per unit $0 $7.20
Variable production cost 0 5.00
Additional export tariff 0 1.08
Total variable costs 0 $6.08
Net income $0 $1.12
B. The special order should be accepted.
2) Product B:
Revenue of $39,500
Variable cost of goods sold of $25,500
Variable selling expenses of $16,500
Fixed costs of $15,000
Operational loss $17,500
Differential Analysis of May 9
Reject Accept
Sales revenue $0 $39,500
Variable costs:
Product $0 25,500
Selling $0 16,500
Fixed costs $15,000 15,000
Total costs $15,000 $57,000
Net loss $15,000 $17,500
B) Product B should be discontinued.
Explanation:
a) Data and Calculations:
Normal selling price per unit of Product A = $9.60
Special order price for the export market = $7.20
Variable production cost = $5.00 per unit
Additional export tariff = $1.08 ($7.20 * 15%)
Total variable production and export costs = $6.08
Approximately what is the expected dollar rate of return on euro deposits if today's exchange rate is $1.18 per euro, next year's expected exchange rate is $1.10 per euro, and the euro interest rate is 5%?
Answer:
Dollar rate of return = 15.5%
Explanation:
The expected dollar rate would be the dollar equivalent of the future value of the Euro deposit converted at the exchange rate applicable in a years time .
The following steps would suffice
Step 1: Future value of 1 Euro
Future value of 1 Euro at 5% p.a = 1.05 Euro
Step 2: Dollar equivalent of the Euro future value
The Dollar equivalent of 1.05 Euro = 1.05× 1.10=1.155
Step 3: The Dollar rate of return
Dollar rate of return = Future value of deposit($)/initial deposit - 1
= (1.155/1) - 1 × 100
= 15.5%
Dollar rate of return = 15.5%
Why is it important for everyone in an organization to have the opportunity to
contribute to the mission statement?
A. So it defines expected outcomes clearly
B. So that it will be accepted and used by employees
C. So employees know the organization's history
O D. So the organization can track progress toward meeting its goals
Answer: so that it will be accepted and used by employees
Explanation:
AP EX
Prepare journal entries to record the following four separate issuances of stock.
1. A corporation issued 4,000 shares of $30 par value common stock for $144,000 cash.
2. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $39,000. The stock has a $2 per share stated value.
3. A corporation issued 2,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $39,000. The stock has no stated value.
4. A corporation issued 1,000 shares of $50 par value preferred stock for $89,000 cash.
Answer:
Item 1
Debit : Cash $144,000
Credit : Common Stock $120,000
Credit : Common Stock Paid in Excess of Par $24,000
Item 2
Debit : Cash $39,000
Credit : Common Stock $39,000
Item 3
Debit : Cash $39,000
Credit : Common Stock $39,000
Item 4
Debit : Cash $89,000
Credit : Preferred Stock $50,000
Credit : Preferred Stock paid in excess of par $39,000
Explanation:
Take a careful note on Par value Stocks and No Par Value Stocks. A reserve is created whenever Stocks are issued above their Par Value.
Choose all of the items that are examples of fiscal policy.
a. There is an increase in income tax rates.
b. The Federal Reserve purchases bonds on the open market.
c. The estate tax is repealed.
d. Government increases military spending.
e. Public money is used to build a high-speed train that connects Los Angeles and Las Vegas.
f. The Federal Reserve increases the money supply by decreasing the reserve-ratio requirement.
g. To help domestic firms, government sets a quota on the number of goods that can be imported.
Answer:
A
C
D
E
Explanation:
fiscal policies are steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise.
fiscal policies can either be expansionary or contractionary
Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.
Contractionary fiscal policy reduces money supply
tools of fiscal policy
Taxes
government spending
transfer payments
Specialty Manufacturing estimated that its total payroll for the coming year would be $456,000. The workers' compensation insurance premium rate is 0.2%.Calculate the estimated workers' compensation insurance premium.
Answer:
Specialty Manufacturing
The Estimated workers' compensation insurance premium is:
= $912.
Explanation:
a) Data and Calculations:
Estimated total payroll for the coming year = $456,000
Workers' compensation insurance premium rate = 0.2%
Estimated workers' compensation insurance premium = $912 ($456,000 * 0.2%)
b) The Insurance Premium is the charge or expense that is paid to the insurance company for the insurance services provided. It is usually calculated as the insured value multiplied by the premium rate.