Answer:
$25,350
Explanation:
Calculation to determine what KL will record compensation expense associated with the May purchases of
Compensation expense =[(15,000 shares
x $13 per share)*13%]
Compensation expense =$195,000 x 13%
Compensation expense =$25,350
Therefore KL will record compensation expense associated with the May purchases of $25,350
The following information is given from The Gathering Sound, Inc. for the month of August, 2020: Beginning raw materials inventory $21,600 Ending raw materials inventory $18,600 Beginning work in process inventory $35,000 Ending work in process inventory $37,450 Beginning finished goods inventory $29,340 Ending finished goods inventory $28,995 Raw material purchases $88,210 Direct materials used $89,300 Direct labor used $51,730 Total factory overhead applied $62,076 Calculate the Cost of Goods Sold. a. $203,106 b. $203,656 c. $201,001 d. $200,311 e. $200,656
Answer:
Explanation:
Step 1 : Cost of Goods Manufactured
Step 2 : Cost of Goods Sold
Opening Finished Goods Inventory $29,340
Add Cost of Goods Manufactured
Less Finished Goods Inventory ($28,995)
Cost of Goods Sold
Patents are on the books of a British subsidiary of a U.S. firm at a value of 50,000 pounds. The patents were acquired in 2017 when the exchange rate was 1 pound = $1.50. The British subsidiary was acquired by the U.S. firm in 2019 when the exchange rate was 1 pound = $1.40. The exchange rate on December 31, 2020, the date of the most current balance sheet, is 1 pound = $1.55. The average rate of exchange for 2020 is $1.53. Assuming the dollar is the functional currency of the subsidiary, what exchange rate will be used to re-measure patents for the consolidated statements dated December 31, 2020?
Answer:
The exchange rate that will be used to re-measure patents for the consolidated statements dated December 31, 2020 is:
= 1 pound = $1.55.
Explanation:
a) Data and Calculations:
Patents on the books of a British subsidiary = 50,000 pounds
Patent's acquisition date = 2017 at 1 pound = $1.50
Subsidiary's acquisition date = 2019 at 1 pound = $1.40
Current exchange rate, most current balance sheet on December 31, 2020 = 1 pound = $1.55.
Average rate of exchange for 2020 is $1.53
Value of Patent for the consolidated accounts = $77,500 (50,000 pounds * $1.55)
b) The accounting standard rule is that assets and liabilities of subsidiaries should be consolidated at the current exchange rates. Business transactions are translated at the average rate of exchange for the year. For equity accounts, you can use either the current or historical exchange rates.
Dellarocco Incorporated makes a single product--a cooling coil used in commercial refrigerators. The company has a standard cost system in which it applies overhead to this product based on the standard labor-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted fixed manufacturing overhead $ 355,740 Budgeted hours 49,000 labor-hours Actual fixed manufacturing overhead $ 372,740 Actual hours 45,600 labor-hours The fixed overhead budget variance is:
Answer:
the fixed overhead budget variance is $17,000 unfavorable
Explanation:
The computation of the fixed overhead budgeted variance is shown below:
= Budgeted overhead - actual overhead
= $355,740 - $372,740
= $17,000 unfavorable
Since the budgeted overhead is less than the actual overhead so it is an unfavorable variance
Hence, the fixed overhead budget variance is $17,000 unfavorable
Pilgrim Industries scheduled its annual sales meeting at Celestial City Resort from January 5-10. In addition to meeting and hotel rooms, the resort was to provide an ice-skating pond for the Pilgrim's annual employee hockey game. In the weeks before the meeting, the resort is hit with its worst heat wave on record. Although hotel and meeting rooms are available, there is no possibility of ice skating at the site. If a court finds that the one of Pilgrim's principal purposes in the agreement was the inclusion of an ice-skating pond, the Pilgrim-Celestial contract could be discharged via the doctrine of:
Answer:
If a court finds that the one of Pilgrim's principal purposes in the agreement was the inclusion of an ice-skating pond, the Pilgrim-Celestial contract could be discharged via the doctrine of:
Frustration of Purpose.
Explanation:
The doctrine of Frustration of Purpose occurs when there is a change of circumstances that is not the fault of either Pilgrim Industries or Celestial City Resort. Since these two parties did not cause the circumstances that made it legally, physically, or commercially impossible to fulfil the contract, the contract can be discharged by the court based on this doctrine. It is also known as Force Majeure.
What is an example of an asset class?
A.
dividends
B.
inflation
C.
common stocks
D.
compounding interest
Answer: coming stocks
Explanation: just took test
Common stocks are an example of an asset class. Hence, option C is correct.
What is Common stocks?The most accessible form of a company's shares, known as common stock, is what you would most usually come across when trading equities on an exchange. These shares normally have voting privileges but are paid out last in the order of preference if a corporation goes bankrupt.
Common stocks are securities that indicate a person's ownership in a particular firm and their right to share in the venture's profits. Such a stock option grants people the right to vote for the company's board of directors and also gives them the ability to influence business policy.
The primary distinction between preferred and common stock is that common stock grants stockholders voting rights, whilst preferred stock does not.
Thus, option C is correct.
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The Brisbane Manufacturing Company produces a single model of a CD player. Each player is sold for $182 with a resulting contribution margin of $71. Brisbane's management is considering a change in its quality control system. Currently, Brisbane spends $42,000 a year to inspect the CD players. An average of 1,900 units turn out to be defective: 1,520 of them are detected in the inspection process and are repaired for $75. If a defective CD player is not identified in the inspection process, the customer who receives it is given a full refund of the purchase price. The proposed quality control system involves the purchase of an x-ray machine for $210,000. The machine would last for five years and would have salvage value at that time of $18,000. Brisbane would also spend $470,000 immediately to train workers to better detect and repair defective units. Annual inspection costs would increase by $25,000. Brisbane expects this new control system to reduce the number of defective units to 400 per year. 350 of these defective units would be detected and repaired at a cost of only $41 per unit. Customers who still receive defective players will be given a refund equal to 120% of the purchase price.
Required:
a. What is the Year 3 cash flow if Brisbane keeps using its current system?
b. What is the Year 3 cash flow if Brisbane replaces its current system?
c. Assuming a discount rate of 8%, what is the net present value if Brisbane keeps using its current system?
d. Assuming a discount rate of 8%, what is the net present value if Brisbane replaces its current system?
Answer:
Year 3 cashflow:
current system: 243,360
alternative system: 102,240
Present cost:
current system PV -$971,665.9146
alternative system PV -$1,075,964.17
Explanation:
Current Scenario:
42,000 inspection cost
Repairs:
1,520 identified x $75 = 114,000
Refunds:
480 units x $182 = 87,360
Total yearly cost: 243,360
PV of an annuity of $243,360 during 5 years:
Present Value of Annuity
[tex]C \times \displaystyle \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 243,360
time 5
rate 0.08
[tex]243360 \times \displaystyle \frac{1-(1+0.08)^{-5} }{0.08} = PV\\[/tex]
PV $971,665.9146
New Scenario:
Inspection cost: $42,000 + $25,000 = $77,000
Repair cost: 350 units x $41 = $14,320
Refunds: 50 units x $182 x 120% = $10,920
Total yearly cost: $102,240
F0 cost:
470,000 workers trainings
210,000 purchase cost
Total F0 cost: 680,000
Present Value of Annuity
[tex]C \times \displaystyle \frac{1-(1+r)^{-time} }{rate} = PV\\[/tex]
C 102,240
time 5
rate 0.08
[tex]102240 \times \displaystyle \frac{1-(1+0.08)^{-5} }{0.08} = PV\\[/tex]
PV $408,214.6742
PV of residual value:
PRESENT VALUE OF LUMP SUM
[tex]\frac{Maturity}{(1 + rate)^{time} } = PV[/tex]
Maturity 18,000.00
time 5.00
rate 0.08
[tex]\frac{18000}{(1 + 0.08)^{5} } = PV[/tex]
PV 12,250.50
Net present value:
- 680,000 -408,214.67 + 12,250.50 = 1,075,964.17
A company has two products: Cakes and Cookies. It uses activity-based costing and has prepared the following analysis showing budgeted costs and activities. Use this information to compute (a) the company's overhead rates for each of the three activities and (b) the amount of overhead allocated to Cakes.
Answer and Explanation:
The computation is shown below:
a. Overhead rate for each of the three activities is
For activity 1
= $60,000 ÷1500
= $40
For activity 2
= $75,000 ÷ 3,000
= $25
For activity 3
= $90,000 ÷ 1,700
= $53
b. The amount of overhead allocated is
= 40 ×700 + 25 × 1500 + 800 × 53
= $28,000 + $37,500 + $42,400
= $107,900
Woolsey Corporation, a US company, expects to sell gods to a foreign customer at a price of 250,000 FC, with delivery and payment to be made on October 24, 2020. On July 24, 2020, Woolsey purchased a three-month put option for 250,000 FC and designated this option as a cash flow hedge of a forecasted foreign currency transaction expected to be completed in late October 2020. Assume that the transaction occurs on October 24, 2020 as expected. The option cost $4,000 and has a strike price of $2.17 per FC. The following spot exchange rates apply:
Answer:
$10,000 positive.
Explanation:
The computation of the amount that should be included is shown below:
= (Option strike price - spot rate) × purchased put options
= ($2.17 - $2.13) × 250,000
= $10,000
As the spot rate is less than the strike price so automatically there is a gain of $10,000:
How does implementing change affect strategic relationship management?
A. It upsets the balance between the needs of key positions.
ОО
B. There is very little impact on relationship management.
O C. Change doesn't impact internal relationships.
O D. It makes fewer resources available to satisfy stakeholders.
Answer:
A it upsets the balance
Explanation:
Answer:a
Explanation:
it upsets the balance
Angie owns numerous strip malls. A major tenant of one of the strip malls wanted to cancel its lease because it was moving to another city. After lengthy negotiations, the tenant paid Angie $60,000 to cancel its obligations under the lease. If the tenant had fulfilled the lease terms, Angie would have received rent of $700,000. a. What factors should Angie consider to determine the amount and character of her income from these circumstances
Answer:
1. To determine whether she is in the business of being a person who LEASE out property as well as what will be her TAX BASIS for the lease.
2. Ordinary income of $60,000
Explanation:
1. Based on the information given the factors that she should consider in order to determine the amount as well as the character of her income from these circumstances is to determine whether she is in the business of being a person who LEASE out property as well as what will be her TAX BASIS for the lease.
b. Based on the information given we were told that the tenant paid her the amount of $60,000 in order to cancel its obligations under the lease which means that the amount and character of her income from the cancelled lease will be ORDINARY INCOME of the amount of $60,000 which we were told the tenant paid her in order to cancel its obligations under the lease.
Burning one gallon of gasoline in a car releases approximately 20 pounds of CO2 into the atmosphere. One average person drives 60,000 miles in a car that average 30 miles per gallon (mpg), while another person drives 60,000 miles in a car that averages 20 mpg. Over the course of the 60,000 miles, how many fewer punds of CO2 are released by the 30 mpg car than by the 20 mpg car?
Answer: 20,000 pounds of CO₂
Explanation:
30 mpg car.
Number of gallons of gasoline used:
= 60,000 / 30
= 2,000 gallons
CO₂ released = 2,000 * 20
= 40,000 pounds
20 mpg car
Number of gallons used:
= 60,000 / 20
= 3,000 gallons
CO₂ released = 3,000 * 20
= 60,000 pounds
Difference:
= 60,000 - 40,000
= 20,000 pounds of CO₂
The number of fewer pounds should be 20,000 pounds of CO₂
The calculation is as follows:The Number of gallons of gasoline used:
= 60,000 ÷ 30
= 2,000 gallons
and,
CO₂ released = 2,000 × 20
= 40,000 pounds
Now
Number of gallons used:
= 60,000 ÷ 20
= 3,000 gallons
And,
CO₂ released = 3,000 × 20
= 60,000 pounds
So, the Difference is
= 60,000 - 40,000
= 20,000 pounds of CO₂
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Suppose a stock had an initial price of $85 per share, paid a dividend of $1.50 per share during the year, and had an ending share price of $99. a. Compute the percentage total return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What was the dividend yield
Answer:
18.23%
1.76%
Explanation:
The total return of a stock = price return + dividend yield
Price return calculates the change in price of a stock
Price return = (change in price / initial stock price ) x 100
change in price = $99 - $85 = $14
($14 / $85) x 100 = 16.47%
Dividend yield = (dividend paid / initial price of the stock ) x 100
($1.5 / $85) x 100 = 1.76%
Total return = 16.47% + 1.76% = 18.23%
What is the difference between earning a wage and earning a salary?
Answer:
Wages are the money your employer pays you for the hours you work each week. A salary, on the other hand, typically defines a fixed amount your employer pays you, not necessarily for specific hours worked but for completing the duties of your job
Explanation:
Black Oil Company considered building a service station in a new location. The owners and their accountants decided that this was the profitable thing to do. However, soon after they made this decision, both the interest rate and the cost of building the station changed. In which case do these changes both make it less likely that they will now build the station?
Answer: An increase in the Interest rates and the cost of building the station
Explanation:
Before setting out to do business, most companies and investors calculate the cost of setting up the business and what they stand to gain when the business does well and when it doesn't. Most of these analysis are done when the business is being put into consideration. When there is a change in cost of any of the items put into consideration, the business would either be carried out or cancelled. What could discourage the Black oil company would be either an increase in interest rates or cost of building the station.
The Bradford Company issued 12% bonds, dated January 1, with a face amount of $87 million on January 1, 2021. The bonds mature on December 31, 2030 (10 years). For bonds of similar risk and maturity, the market yield is 14%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) Required: 1. Determine the price of the bonds at January 1, 2021. 2. to 4. Prepare the journal entries to record their issuance by The Bradford Company on January 1, 2021, interest on June 30, 2021 and interest on December 31, 2021 (at the effective rate).
Answer:
1. $77,783,220
2. Jan-21
Dr Cash $ $77,783,220
Dr Discount On Bond $9,216,780
Cr Bond Payable $ $87,000,000
Explanation:
1. Calculation to Determine the price of the bonds at January 1, 2021.
First step is to calculate the Present Value Of Annual Interest
a Semi-annual Interest Amount $5,220,000
($87,000,000*12%/2)
b PV Annuity Factor for (20 Years,14%/2=7%) 10.5940
c Present Value Of Annual Interest (a*b) $ $55,300,680
($5,220,000*10.5940)
Second step is to calculate Present Value Of Redemption Amount
a Redemption Value $ $87,000,000
b PV Factor Of (20 Years,7%) 0.25842
c Present Value Of Redemption Amount (a*b) $ $22,482,540
($87,000,000*0.25842 )
Now let Determine the price of the bonds at January 1, 2021.
Intrinsic Value ( Price ) Of The Bond = ($55,300,680+$22,482,540)
Intrinsic Value ( Price ) Of The Bond =$77,783,220
Therefore the price of the bonds at January 1, 2021 is $77,783,220
2. Preparation of the journal entries to record their issuance by The Bradford Company on January 1, 2021,
Jan-21
Dr Cash $ $77,783,220
Dr Discount On Bond $9,216,780
($87,000,000-$77,783,220)
Cr Bond Payable $ $87,000,000
(Being to record issuance of bond)
3. Preparation of the journal entries to record their issuance by The Bradford Company on ion June 30, 2021
Jun-30
Dr Interest expenses $ 53,82,240
Discount On Bond payable $ 2,22,240
Cash $5,220,000
4.Preparation of the journal entries to record their issuance by The Bradford Company on
December 31, 2021
Dec-31 Interest expenses $ 53,97,797
Discount On Bond payable $ 2,37,797
Cash $5,220,000
( to record interest payment)
Crane Company offered detachable 5-year warrants to buy one share of common stock (par value $5) at $20 (at a time when the stock was selling for $30). The price paid for 700, $1,000 bonds with the warrants attached was $810000. The market price of the Crane bonds without the warrants was $710000, and the market price of the warrants without the bonds was $71800. What amount should be allocated to the warrants
Answer:
$ 74,389.87
Explanation:
It is given that :
The cost of 700, $1000 bonds with warrant attached to the bond = $810,000
The cost of Crane bonds with warrant = $710,000
The cost of market price of the warrants without bonds = $71,800
Therefore, the amount should be allocated to the warrants :
[tex]$=\frac{\$71,800}{\$71,800+\$710,000}\times \$ 810,000$[/tex]
[tex]$=\frac{\$71,800}{\$781,800}\times \$ 810,000$[/tex]
= $ 74,389.87
At the denominator activity level, Norland Company's total overhead budget for 35,000 units of production shows variable overhead costs of $40,000 and fixed overhead costs of $28,000. During the most recent period, the company incurred total overhead costs of $48,000 to manufacture 21,000 units. The total factory overhead variance for Norland Co. for the most recent period, to the nearest whole dollar, was:________ (Round your intermediate calculation to 2 decimal places.)
a. $200 favorable.
b. $7,000 unfavorable.
c. $600 unfavorable.
d. $6,600 favorable.
e. $6,000 unfavorable.
Income Statement; Net Loss The following revenue and expense account balances were taken from the ledger of Acorn Health Services Co. after the accounts had been adjusted on January 31, 20Y7, the end of the fiscal year: Depreciation Expense $16,900 Insurance Expense 8,280 Miscellaneous Expense 6,590 Rent Expense 68,300 Service Revenue 324,500 Supplies Expense 4,060 Utilities Expense 26,030 Wages Expense 255,200 Prepare an income statement. Acorn Health Services Co. Income Statement For the Year Ended January 31, 20Y7
Answer:
See below
Explanation:
Acorn Health Services Co.
Income statement for the year ended, January 31st
Service revenue $234,500
Expenses:
Depreciation expense
$16,900
Insurance expense
$8,280
Miscellaneous expense
$6,590
Rent expense
$68,300
Supplies expense
$4,060
Utilities expense
$26,030
Wages expense
$255,200
Total expense ($385,360)
Net income (loss) $150,860
Windsor, Inc. purchased a delivery truck for $32,000 on January 1, 2022. The truck has an expected salvage value of $4,000, and is expected to be driven 100,000 miles over its estimated useful life of 8 years. Actual miles driven were 16,600 in 2022 and 13,100 in 2023. (a1) Calculate depreciable cost per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.) Depreciable cost
Answer:
Depreciable cost per mile= $0.28
Explanation:
Giving the following information:
Purchase price= $32,000
Salvage value= $4,000
Miles= 100,000
To calculate the depreciable cost per mile under the units-of-activity method, we need to use the following formula:
Depreciable cost per mile= (original cost - salvage value)/useful life of production in miles]
Depreciable cost per mile= (32,000 - 4,000) / 100,000
Depreciable cost per mile= $0.28
The four career pathways in Finance are
Banking and Related Services, Insurance Services, Retail Sales, and Business Financial Management.
Securities Law, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Banking and Related Services, Retail Sales, Securities Law, and Business Financial Management.
Banking and Related Services, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Answer:
Banking and Related Services, Insurance Services, Financial and Investment Planning, and Business Financial Management.
Answer: A.
Explanation:
Ron was vacationing in France, when his camera was stolen. As he walked into a camera store, Ron noticed that camera prices were in euros. If Ron was willing to pay $ for a new digital camera and the exchange rate is $ per euro, how much will Ron be paying in euros? Ron will be paying nothing euros for the camera. (Instructions: Enter your response by rounding two places after the decimal.)
Answer:
130.43 euros
Explanation:
Since Ron willing to Pay is $150
Now we have to convert $150 in euros
As we know that
exchange rate × willing to pay in euro = Willing to pay in Dollar
i.e.
willing to pay in euro = Willing to pay in Dollar ÷ Exchange rate
= 150 ÷ 1.15
= 130.43 euros
Hence, the ron be paying in euros is 130.43
The same would be relevant
Answer each questions.
1. Do internet search enhance our knowledge in animal/fish raising?
2. Search in the internet a picture that demonstrates a skill in harvesting/capturing animal/fish?. Paste the picture below.
Answer:
Yes it does because it helps us to be aware on the things that we should know on how to raise the animals with care.
Explanation:
Membo just paid a dividend of $4.6 per share. Dividends are expected to grow at 5%, 4%, and 3% for the next three years respectively. After that the dividends are expected to grow at a constant rate of 2% indefinitely. Stockholders require a return of 7 percent to invest in Membo’s common stock. Compute the value of Membo’s common stock today.
Answer:
P0 = $99.2830 rounded off to $99.28
Explanation:
The dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under DDM is,
P0 = D1 / (1+r) + D2 / (1+r)^2 + ... + Dn / (1+r)^n + [(Dn * (1+g) / (r - g)) / (1+r)^n]
Where,
D1, D2, ... , Dn is the dividend expected in Year 1,2 and so on g is the constant growth rate in dividends r is the discount rate or required rate of return
P0 = 4.6 * (1+0.05) / (1+0.07) + 4.6 * (1+0.05) * (1+0.04) / (1+0.07)^2 +
4.6 * (1+0.05) * (1+0.04) * (1+0.03) / (1+0.07)^3 +
[(4.6 * (1+0.05) * (1+0.04) * (1+0.03) * (1+0.02) / (0.07 - 0.02)) / (1+0.07)^3]
P0 = $99.2830 rounded off to $99.28
It was established in 1971 as the only newspaper in the country. At the time, the company had virtually no competition. It had a strong financial base with many readers cut across the length and breadth of the country. It was able to engage the best of journalists to work for the brand, a development which has made the company extremely formidable thus, it became a household name.
After 50 years in operation as a media enterprise, the board of APPOT Communications Group Limited (ACGL) is faced with a lot of competition from online news portals, the proliferation of radio and television networks as well as new newspapers that hit the stands on a daily basis.
This development has affected the market share of APPOTS Communications Group Limited. From 90 per cent, today, the market share of the company has dropped to just about 43 per cent and still falling.
As the new Managing Director of the company, your task is to turn around the business to restore it to its former glory.
Indicate the relevance of PESTLE analysis as a framework to analyse some of the key factors that can influence the strategic plan of the company going forward.
PESTEL Analysis-
PESTEL Analysis provides the strategic framework for the analysis of all components which have impact on the functioning of the business.
According to the given case, Market share of the media company has reduced from 90% to 43%. As the new Managing Director of the company, my task is to turn around the business to restore it to its former glory. For this, we have to analyse the PESTEL Analysis of the company which is as follows-
1. Political Analysis- There is a impact of political parties , their policies , rules and regulations on every company. On media industry, there is a huge impact of the political parties as media demand news and there is a flood of news of political parties. As if my company will focus on the upcoming topics of the political party, then we will provide the latest news to our customer and will be able to beat our competitor and can increase their market share back to 90% from 43%.
2.Economic Analysis- Economic components includes fiscal policy, taxation policy, monetary policy etc. These have impact on the functioning of the business of media industry also.
3. Social Analysis- This factor constitutes demographic component. Media industry should provide news of such type which can focus on the demographic dividend. Like- Age composition, Gender-composition, income, interest, their needs, purchasing power. What is the interest of different segments of society in what kind of topic that a media industry should focus on to increase its market share.
4. Technological Analysis- Technology is an application of scientific knowledge to the practical task. Various technologies and up gradations have impact on the business scenario. Research and Development, innovation etc provides various opportunities to the business. Online platform is the result of technological innovation. This provide better opportunity to media-user like they can have information and news on different apps on their phones.
5. Environmental Analysis- Environment means scanning. It is the combination of various micro and macro factors which affects the functioning of the business. These have impact on the strategic framework of the business for the development of counter strategies to beat the competitor.
6. Legal Analysis- Legal factors pertain to any legal forces that define what a business can or cannot do.
Legal factors include the following:
Industry Regulation
Licenses & Permits
Intellectual Property:
Milford Company sells a motor that carries a three-month unconditional warranty against product failure. Based on a reliable statistical analysis, Milford knows that between the sale and the end of the product warranty period, two percent of the units sold will require repair at an average cost of $50 per unit. The following data reflect Milford's recent experience:
Oct Nov Dec Dec 31 Total
Units unsold 24000 26000 26000 76000
Known products failure from sales in:
October 130 190 170 490
November 130 220 350
December 210 210
Calculate, and prepare a journal entry to record, the estimated liability for product warranties at December 31. Assume that warranty costs of known failures have already been reflected in the records.
Answer: See explanation
Explanation:
Number of units sold = 76000
Percentage repair= 2%
Estimated defective units = Percentage repair × Units sold = 2% × 76000 = 1520
Actual defective units = 490 + 350 + 210 = 1050
Unclaimed warranty = Estimated defective units - Actual defective units = 1520 - 1050 = 470
Repair cost = $50
Warranty expense = 470 × $50 = $23500
The journal entry will then be:
31 December:
Debit: Product warranty expense = $23500
Credit: Estimated liability for product warranty = $23500
Which of the following positions refers to a functional manager?
A. Chief executive officer
B. Purchasing manager
C. Manager, Office Equipment Division
O D. Vice President, Latin American Operations
The functional manager is the individual with management authority within a business unit or department . Hence Option B is correct .
What is Functional Manager ?who has direct supervision over one or more team members and/or direct accountability for the functions impacted by or affecting project or program deliverables. Hence option B is correct .
Many of the many functions are combined and managed by a manager when an information systems organization grows larger. These functional managers oversee the personnel particular to their role and answer to the CIO.
An organization's functional roles, such as those of a manager, director, or vice president, define a set of abilities and tasks that are normally carried out by a department inside the company. The organizational structure of an organization establishes functional responsibilities. These roles inside that department have resources assigned to them.
A practical A manager is in charge of a specific functional area within an organization, like a team or department. They are in charge of organizing, controlling, and supplying resources for initiatives.
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The taxpayer is a Ph.D. student in accounting at City University. The student is paid $1,500 per month for teaching two classes. The total amount received for the year is $13,500. a.The $13,500 is considered a scholarship and, therefore, is excluded. b.The $13,500 is excluded because the total amount received for the year is less than her standard deduction and personal exemption. c.The $13,500 is taxable compensation. d.The $13,500 is excludible if the money is used to pay for tuition and books.
Answer: c. The $13,500 is taxable compensation.
Explanation:
The $13,500 received is to be considered a taxable compensation because amounts paid for teaching or research, even to students, should be included in the gross income calculation which makes it a taxable compensation.
There are some exceptions to this however such as income from the National Health Service Corps Scholarship Program, the Armed Forces Health Professions Scholarship and Financial Assistance Program but this does not apply here.
If Morgan Industries issued a Credit Memorandum on January 20 for a return of $1,100 of merchandise purchased on account by Doug Bowen, plus 6 percent sales tax, the credit memorandum total would be:
Answer:
1166
Explanation:
Morgan industries issued a credit
memorandum of $1100 on January 20th
They also have 6% tax sales
= 6/100 × 1100
= 0.06×1100
= 66
Therefore the total credit memorandum can be calculated as follows
= 1100+66
= 1,166
Hence the credit memorandum total is $1166
Mortar Corporation acquired 80 percent of Granite Corporation's voting common stock on January 1, 20X7. On December 31, 20X8, Mortar received $370,000 from Granite for equipment Mortar had purchased on January 1, 20X5, for $400,000 and had been depreciating it over 10 Years and no salvage value. After the sale, the equipment is expected to have a 5-year useful life and no salvage value. Both companies depreciate equipment on a straight-line basis. Based on the preceding information, in the preparation of elimination entries related to the equipment transfer for the 20X8 consolidated financial statements, the debit adjustment to equipment would be: Group of answer choices
Answer:
The debit adjustment to equipment would be $30,000.
Explanation:
Amount received for the equipment by Mortar from Granite - $370,000
Purchase price of the equipment = $400,000
Debit adjustment to equipment = Purchase price of the equipment - Amount received for the equipment by Mortar from Granite = $400,000 - $370,000 = $30,000
Therefore, the debit adjustment to equipment would be $30,000.
Peterson Company's general ledger shows a cash balance of $7,420 on May 31. May cash receipts of $1,290, included in the general ledger balance, are placed in the night depository at the bank on May 31 and processed by the bank on June 1. The bank statement dated May 31 shows an NSF check for $170 and a service fee of $60. The bank processes all checks written by the company by May 31 and lists them on the bank statement, except for one check totaling $1,900. The bank statement shows a balance of $7,800 on May 31. Prepare a bank reconciliation to calculate the correct ending balance of cash on May 31.
Answer:
The correct ending balance of cash on May 31 is $7,190
Explanation:
The bank reconciliation can be prepared as follows:
Peterson Company
Bank Reconciliation
At May 31
Particulars $
Bank statement balance at May 31 yet to be reconciled 7,800
Add:
Cash deposited on May 31 yet to be credited 1,290
Less:
Outstanding check (1,900)
Adjusted bank statement balance at May 31 7,190
Peterson Company
Bank Reconciliation
At May 31
Particulars $
Cash book balance yet to be reconciled 7,420
Less:
NSF check (170)
Service fee (60)
Adjusted cash balance at May 31 7,190
Since in each of the Adjusted bank statement balance at May 31 and the Adjusted cash balance at May 31 is equal to $7,190, it implies that the correct ending balance of cash on May 31 is $7,190.