Answer:
The answer is the production possibility frontier.
For March, sales revenue is $1,000,000, sales commissions are 5% of sales, the sales manager's salary is $80,000, advertising expenses are $65,000, shipping expenses total 1% of sales, and miscellaneous selling expenses are $2,100 plus 1% of sales. Total selling expenses for the month of March are
Answer:
$217,100
Explanation:
total selling expenses = sales commission + sales manager's salary + shipping expense + advertising expenses + miscellaneous selling expenses
sales commissions = 50,000
advertising expenses = 65,000
shipping expenses = 10,000
sales manager's salary= 80,000
miscellaneous selling expenses = 10,000 + 2100
XYZ Company provides the following activity-based costing information: Activities Total Costs Activity-cost drivers Account inquiry $320,000 16,000 hours Account billing $160,000 3,200,000 lines Account verification costs $138,600 60,000 accounts Correspondence letters $19,200 4,000 letters Total costs $637,800 The above activities are used by Product A and B as follows: Product A Product B Account inquiry hours 2,700 hours 1,800 hours Account billing lines 820,000 lines 630,000 lines Account verification accounts 23,000 accounts 24,000 accounts Correspondence letters 1,500 letters 2,000 letters How much of the account verification costs will be assigned to Product B
Answer:
XYZ Company
Account verification costs assigned to Product B are:
= $55,400.
Explanation:
a) Data and Calculations:
Activities Total Costs Activity-cost drivers Activity Rates
Account inquiry $320,000 16,000 hours $20 per hour
Account billing $160,000 3,200,000 lines $0.05 per line
Account verification costs $138,600 60,000 accounts $2.31 per account
Correspondence letters $19,200 4,000 letters $4.80 per letter
Total costs $637,800
Usage by Products
Product A Product B
Account inquiry hours 2,700 hours 1,800 hours
Account billing lines 820,000 lines 630,000 lines
Account verification 23,000 accounts 24,000 accounts
Correspondence letters 1,500 letters 2,000 letters
Costs assigned to Product B
Account inquiry $36,000 (1,800 * $20)
Account billing $31,500 (630,000 * $0.05)
Account verification $55,400 (24,000 * $2.31)
Correspondence letters $9,600 (2,000 * $4.80)
Total costs assigned $132,500
Firm A has a 21 percent marginal tax rate, and Firm Z has a 28 percent marginal tax rate. Firm A owns a controlling interest in Firm Z. The owners of Firm A decide to incur a $9,500 deductible expense that will benefit both firms.
Required:
Compute the after-tax cost of the expense assuming that:
a. Firm A incurs the expense
b. Firm Z incurs the expense
Answer:
a. $7,505
b.$6,840
Explanation:
a. Computation for the after-tax cost of the expense assuming that Firm A incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm A Marginal tax rate* Deductible Expense)
Let plug in the formula
After-tax cost = ($9,500 - ($21%*9500)
After-tax cost = ($9,500 - $1,995)
After-tax cost=$7,505
Therefore the after-tax cost of the expense assuming that Firm A incurs the expense is $7,505
B. Computation for the after-tax cost of the expense assuming that Firm Z incurs the expense
Using this formula
After-tax cost = Deductible Expense - (Firm Z Marginal tax rate*Deductible Expense)
Let plug in the formula
After-tax cost =$9,500 -(28%*$9500)
After-tax cost =($9,500 - $2,660 )
After-tax cost=$6,840
Therefore the after-tax cost of the expense assuming that Firm Z incurs the expense is $6,840
Select the market segment that looks the most promising?
1. Luxury trenfollowers
Segment size 5,000(5%)
Growth rate 7%
2. School children
Segment size 35,000 (35%)
Growth rate 1%
3. University students
Segment size 24,099(24%)
Growth rate 5%
4. Outdoor enthusiasts
Segment size 14,000 (14%)
Growth rate 5%
5. Urban commuters
Segment size 20,000 (20%)
Growth rate 3%
Answer:
Luxury Trend followers
Explanation:
The consider which market segment shows the most or higest level of promise, we may have to the growth rate of each segment, which is the percentage change in earnings or revenue over a specific period of time. From the data given, the market segment with the greatest growth rate is the trend followers segment with a growth rate of 7%
Luxury trend followers : 7%
School children : 1%
University students : 5%
Outdoor enthusiasts : 5%
Urban Commuters : 3%
The country of Bolivia had a Gross Domestic Product of $79 billion in 2016 and a population of 11 million people, the GDP per capita would be ________.
Answer:
The GDP per capita of country of Bolivia would be $7,181.82.
Explanation:
GDP Per capita refers to a measure that calculates a country's economic output per person by dividing its GDP by its population.
Therefore, we have:
GDP per capita = GDP / Population = $79 billion / 11 million = $79,000,000,000 / $11,000,000 = $7,181.82
Therefore, the GDP per capita of country of Bolivia would be $7,181.82.
Investing $2,000,000 in TQM's Channel Support Systems initiative will at a minimum increase demand for your products 3.0% in this and in all future rounds. Looking at the Round 0 Inquirer for Andrews, last year's sales were $163,189,230. Assuming similar sales next year, the 3.0% increase in demand will provide $4,895,677 of additional revenue. With the overall contribution margin of 34.1%, after direct costs this revenue will add $1,669,426 to the bottom line. For simplicity, assume that the demand increase and margins will remain at last year's levels. How long will it take to achieve payback on the initial $2,000,000 TQM investment, rounded to the nearest
Answer:
the payback period is 14 months
Explanation:
The computation of the payback period is shown below:
Profit is
= $2,000,000 - $1,669,426
= $330,574
Now payback period is
= 1 + $330,574 ÷ $1,669,426
= 1 +0.198 years
= 1.198 years
= 14.37 months
= 14 months
Hence, the payback period is 14 months
Good afternoon. Kindly assist on the following please. Assignment due by 4:30pm Mike bookshop had the following structure. Share capital 500000 ordinary shares of $1 each. 300000 10% preference of $1 each. Reserves Share premium 200 000 General reserves 100 000 Retained earnings 400 000 8% debenture 100 000 During the year the following transaction took place. 01 January issue of 200 000 $1 ordinary shares at$1,20 and 100 000 preference shares at $2 each. 01 June a 1 for 4 right issue at a premium of $0,10c each per share. 01 December 1 for 5 bonus shares fully paid. All shares issued during the year qualified for bonus and the company wishes to leave the reserves in their flexible form. Required. Balance sheet extract.
Answer:
Mike Bookshop
Balance Sheet Extract as at December 31
Share capital:
1,050,000 ordinary shares of $1 each $1,050,000
400,000 10% preference of $1 each 400,000
Total share capital $1,450,000
Reserves:
Share premium 357,500
General reserves 100,000
Retained earnings 225,000
Total reserves $682,500
8% debenture $100,000
Explanation:
a) Data and Analysis:
Share capital:
500000 ordinary shares of $1 each.
300000 10% preference of $1 each.
Reserves:
Share premium 200 000
General reserves 100 000
Retained earnings 400 000
8% debenture 100 000
During the year the following transaction took place.
01 January Cash $240,000 Ordinary share capital $200 000 Share Premium $40,000
$1 ordinary shares at$1.20 and
01 January Cash $200,000 Preferred share capital $100 000 Share Premium $100,000
01 June Cash $192,500 Ordinary share capital $175,000 Share Premium $17,500
a 1 for 4 right issue at a premium of $0.10c each per share.
01 December Retained Earnings $175,000 Ordinary share capital $175,000
1 for 5 bonus shares fully paid.
Ordinary share capital:
Beginning balance $500,000
January 1 issue 200,000
June 1 rights issue 175,000
Dec. 1 bonus issue 175,000
Ending balance $1,050,000
Preferred share capital:
Beginning balance $300,000
January 1 issue 100,000
Ending balance $400,000
Share Premium:
Beginning balance $200,000
January 1 issues 140,000
June 1 rights issue 17,500
Ending balance $357,500
General reserves $100,000
Retained Earnings:
Beginning balance $400,000
Dec. 1 Bonus issue (175,000)
Ending balance $225,000
Selected accounts with a credit amount omitted are as follows: Work in Process Apr. 1 Balance 7,500 Apr. 30 Goods finished X 30 Direct materials 60,000 30 Direct labor 191,000 30 Factory overhead 57,300 Finished Goods Apr. 1 Balance 13,500 30 Goods finished 307,300 What was the balance of Work in Process as of April 30? a.$307,300 b.$13,500 c.$57,300 d.$8,500
Answer:
the balance in work in process in april 30 is $8,200
Explanation:
The computation of the balance in work in process in april 30 is as follows:
Balance of Work in Process as of April 30 is
= Apr 1 Balance + Direct material + direct labor + overhead - goods finished
= $7,500 + $60,000 + $191,000 + $57,000 - $307,300
= $8,200
Hence, the balance in work in process in april 30 is $8,200
This is the answer but the same is not provided in the given options
One important employer tactic for sharing information and opinions is to hold a group meeting in the workplace during working hours in which employees are forced to listen to management's antiunion and pro-company presentations. This gathering is referred to as a
Answer: captive audience meeting
Explanation:
Captive audience meeting refers to the compulsory meeting of employees that is arranged by an employer which is typically done as a response to a trade union organizing campaign.
It should be noted that the maid.idea behind the captive audience meeting is for the employer to dissuade the employees from them joining the union.
Larned Corporation recorded the following transactions for the just completed month.
$81,000 in raw materials were purchased on account. $79,000 in raw materials were used in production. Of this amount, $70,000 was for direct materials and the remainder was for indirect materials.
Total labor wages of $113,500 were paid in cash. Of this amount, $101,000 was for direct labor and the remainder was for indirect labor.
Depreciation of $198,000 was incurred on factory equipment.
Required:
Record the above transactions in journal entries.
Answer:
S/n Journal Entries Debit Credit
a Raw materials inventory $81,000
Accounts payable $81,000
b Work in process inventory $70,000
Manufacturing overhead $9,000
Raw materials inventory $79,000
c Work in process inventory $101,000
Manufacturing overhead $12,500
Cash $113,500
d Manufacturing overhead $198,000
Accumulated depreciation-Equipment $198,000
Chicotti Company has 6,000 units in beginning work in process, 30% complete as to conversion costs, 75,000 units transferred out to finished goods, and 2,000 units in ending work in process 20% complete as to conversion costs. The beginning and ending inventory is fully complete as to materials costs. How much are equivalent units for materials if the FIFO method is used
Answer:
71,000
Explanation:
Calculation to determine How much are equivalent units for materials if the FIFO method is used
Using this formula
Equivalent units for materials=(Units transferred out to Finished goods + Units in ending work in process – Units in beginning work in process)
Let plug in the formula
Equivalent units for materials=75,000 + 2,000 – 6,000
Equivalent units for materials= 71,000
Therefore the equivalent units for materials if the FIFO method is used will be 71,000
Hettrick International Corporation's only product sells for $120.00 per unit and its variable expense is $52.80. The company's monthly fixed expense is $396,480 per month. The unit sales to attain the company's monthly target profit of $13,000 is closest to
Answer:
Number of units to be sold= 6,093
Explanation:
Giving the following information:
Selling price= $120
Unitary variable cost= $52.8
Fixed cost= $396,480
Desired profit= $13,000
To calculate the number of units to obtain the desired profit, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Break-even point in units= (396,480 + 13,000) / (120 - 52.8)
Break-even point in units= 6,093.4 = 6,093
If the ABC Company has three lots of products for sale, purchase 1 (earliest) for $20, purchase 2 (middle) for $15 and purchase 3 (latest) for $25, which cost would be assumed to be sold first using FIFO costing
Answer:
Results are below.
Explanation:
Giving the following information:
Purchase 1 (earliest) for $20
Purchase 2 (middle) for $15
Purchase 3 (latest) for $25
The FIFO (first-in, first-out) method, allocates costs to the cost of goods sold using the purchase price of the firsts units incorporated into inventory. On the contrary, the ending inventory cost is calculated with the costs of the lasts units incorporated.
Assume that the company sells the number of units equivalent to the first lot. Then, the cost of goods sold will be $20; and the ending inventory $40 (15+25).
Which method requires first estimating the desired amount for the Allowance for Doubtful Accounts and then determining the amount of the expense required to get to this desired balance given the amount of the unadjusted balance
Answer:
Aging of accounts receivable method
Explanation:
Accounts Receivable
This is simply refered to as the right to receive cash in future terms from customers for goods sold or for services performed.
Aging of accounts receivable method
In this method, finding out the means of accounting for bad debts expense in which the aging of accounts receivable schedule which is a list of accounts receivable according to length of time outstanding is usually used to estimate the total amount of bad debts.
It is also defined as the method of estimating uncollectible receivables by finding out the balance of Allowance for Bad Debts account based on the age of individual accounts receivable.
Finer Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the sales journal.
May 2 Sold merchandise costing $450 to B. Facer for $675 cash, invoice no. 5703.
5 Purchased $2,600 of merchandise on credit from Marchant Corp.
7 Sold merchandise costing $1,215 to J. Dryer for $1,762, terms 3/10, n/30, invoice no. 5704.
8 Borrowed $8,000 cash by signing a note payable to the bank.
12 Sold merchandise costing $304 to R. Lamb for $486, terms n/30, invoice no. 5705.
16 Received $1,709 cash from J. Dryer to pay for the purchase of May 7.
19 Sold used store equipment (noninventory) for $900 cash to Golf, Inc.
25 Sold merchandise costing $500 to T. Taylor for $785, terms n/30, invoice no. 5706.
Answer:
Date Customer Invoice Amount COGS
May 2 B. Facer 5703 $675 $450
May 7 J. Dryer 5704 $1,762 $1,215
May 12 R. Lamb 5705 $486 $304
May 25 T. Taylor 5706 $785 $500
The May 19 sale is a disposal of equipment, not a sale of merchandise.
Short-term investments are intended to be converted into cash within the longer of one year or the operating cycle of the business, and are readily convertible to cash. True or False
Answer:
True
Explanation:
The reasons why many companies invest in other companies includes
1. Due to excess cash not needed immediately, so invested to earn additional income to use for operations
2. Long- term strategic reasons etc
The criteria for a current asset is that the investment must be liquid and be able to convert to cash within one year (or become a long-term investment).
Short-term investments
This is a current assets. It is also called marketable securities. This is a form of an investments made in marketable securities that can be converted easily to cash which a company plans to hold for 1 year or less than one year.
The 3 categories of short-term investments. They includes:
1. Trading securities
2. available-for-sale securities
3. Held to maturity investment.
Consider the following information for the manufacturing cell of Stripes Company: Maximum units produced in a quarter 250,000 units Actual units produced in a quarter 200,000 units Productive hours in a quarter 50,000 hours Compute the theoretical velocity and the actual velocity in units per hour.
Answer: Theoretical velocity = 5 units per hour.
Actual velocity = 4 units per hour.
Explanation:
Based on the information given in the question, the theoretical velocity will be:
Firstly, we'll calculate the theoretical cycle time which will be:
= (50,000 hours x 60 minutes per hour) / 250,000 units
= 12 minutes per unit
Actual cycle time will be:
= (50,000 hours x 60 minutes per hour) / 200,000 units
= 15 minutes per unit
The theoretical velocity:
= 60 minutes / 12 minutes
= 5 units per hour.
2. The e actual velocity in units per hour:
= 60 minutes per hour / 15 minutes per unit
= 4 units per hour
Goode Company has the following production data for selected months.
Ending Work in Process
Month Beginning Work in Process Units Transferred Out Units % Complete as to Conversion Cost
January 0 39,400 10,200 44%
March 0 44,100 8,600 72
July 0 47,100 21,800 22
Compute equivalent units of production for materials and conversion costs, assuming materials are entered at the beginning of the process
Materials Conversion Costs
January 49,600
March 52,700
July 68,900
Answer:
Goode Company
Equivalent units of production for materials and conversion costs:
Materials Conversion Costs
January 49,600 43,888
March 52,700 50,292
July 68,900 51,896
Explanation:
a) Data and Calculations:
Ending Work in Process
Month Beginning Units Transferred Out Units % Complete as to
Work in Process Conversion Cost
January 0 39,400 10,200 44%
March 0 44,100 8,600 72
July 0 47,100 21,800 22
January: Units Materials Conversion
Beginning work in process 0
Units transferred out 39,400 39,400 (100%) 39,400 (100%)
Ending work in process 10,200 10,200 (100%) 4,488 (44%)
Equivalent units 49,600 43,888
March:
Beginning work in process 0
Units transferred out 44,100 44,100 (100%) 44,100 (100%)
Ending work in process 8,600 8,600 (100%) 6,192 (72%)
Equivalent units 52,700 50,292
July:
Beginning work in process 0
Units transferred out 47,100 47,100 (100%) 47,100 (100%)
Ending work in process 21,800 21,800 (100%) 4,796 (22%)
Equivalent units 68,900 51,896
MC Qu. 157 Current information for the... Current information for the Healey Company follows: Beginning raw materials inventory $ 16,100 Raw material purchases 69,000 Ending raw materials inventory 17,500 Beginning work in process inventory 23,300 Ending work in process inventory 28,900 Direct labor 47,300 Total factory overhead 30,900 All raw materials used were traceable to specific units of product. Healey Company's total manufacturing costs for the year are:
Answer:
$145,800
Explanation:
Calculation to determine what Healey Company's total manufacturing costs for the year are:
TOTAL MANUFACTURING COSTS
Beginning raw materials inventory $ 16,100
Add Raw material purchases $69,000
Less Ending raw materials inventory $17,500
Add Direct labor $47,300
Add Total factory overhead $30,900
Total manufacturing costs $145,800
Therefore Bealey Company's total manufacturing costs for the year are:$145,800
Job-Order Costing versus Process Costing Required: Identify each of the following types of businesses as either job-order or process costing. a. Hospital services b. Custom cabinet making c. Toy manufacturing d. Soft-drink bottling e. Airplane manufacturing (e.g., 767s) f. Personal computer assembly g. Furniture making (e.g., computer desks sold at discount stores) h. Custom furniture making i. Dental services j. Paper manufacturing k. Nut and bolt manufacturing l. Auto repair m. Architectural services n. Landscape design services o. Flashlight manufacturing
Answer:
Job-Order Costing versus Process Costing
Types of businesses using job order costing:
a. Hospital services
b. Custom cabinet making
e. Airplane manufacturing (e.g., 767s)
h. Custom furniture making
i. Dental services
l. Auto repair
m. Architectural services
n. Landscape design services
Types of businesses using processing costing:
c. Toy manufacturing
d. Soft-drink bottling
f. Personal computer assembly
g. Furniture making (e.g., computer desks sold at discount stores)
j. Paper manufacturing
k. Nut and bolt manufacturing
o. Flashlight manufacturing
Explanation:
In job order costing, the manufacturer tracks its prime costs to individual products or jobs. This means that the costs of each job can be computed separately because costs are traced to each job. Under process costing, the prime costs are tracked to the department, process or batch, and not to individual products or jobs.
Bialy Company had the following information: Total sales $120,000 Total variable cost 48,000 Operating income 12,000 What is the breakeven sales revenue
Answer:
$100,000
Explanation:
The breakeven sales revenue is the annual fixed cost divided by the contribution margin ratio of the product, which is the amount of sales revenue that the Bialy company needs to achieve in order to make a zero profit.
operating income=sales revenue-variable cost-fixed cost
operating income=$12,000
sales revenue=$120,0000
variable cost=$48,000
fixed cost=unknown
$12,000=$120,000-$48,000-fixed cost
fixed cost=$120,000-$48,000-$12,000
fixed cost=$60,000
total contribution=sales revenue-variable cost
total contribution=$120,000-$48,000
total contribution=$72,000
contribution margin ratio=total contribution margin/sales revenue
contribution margin ratio=$72,000/$120,000
contribution margin ratio=60%
breakeven sales revenue=$60,000/60%
breakeven sales revenue=$100,000
ccording to the fractional reserve theory of banking (money multiplier model), if the central bank simultaneously reduces both the discount rate and the statutory required reserve ratio applied to commercial banks, then the money supply will
Answer:
INCREASE
Explanation:
Reducing discount rate and required reserve ratio are examples of expansionary monetary policies
Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy
When the required reserve is reduced, the amount of loans that a bank can give increases and this increases money supply.
If discount rate is reduced, it becomes cheaper for commercial banks to borrow money. this increases money supply
If a company spends $80 million to build facility space sufficient to hold 5 million pairs of footwear-making equipment at a site in Latin America, then the company's annual depreciation costs for this facility space will be
Answer: $8,000,000
Explanation:
From the question given, the cost of the building facility is $80 million. Also, it should be noted that the default rate for depreciation is given as 10%, therefore, the company's annual depreciation costs for this facility space will be:
= Depreciation rate × Cost of building
= 10% × $80,000,000
= 0.1 × $80,000,000
= $8,000,000
Starbucks' capital structure has been restructured from a primarily equity-financed company to a primarily debt-financed company, for example, via share repurchases, in order to leverage returns to investors.A. Yes.B. No.
Answer:
Starbucks
Starbucks' Capital Structure
Restructured from a primarily equity-financed company to a primarily debt-financed company:
A. Yes.
Explanation:
Starbucks' assets are more than 60% financed by long-term debts, with less than 40% financed by equity. The advantage of having a higher debt leverage is to optimize the returns to the stockholders. This is because interest expenses arising from the debts are tax-deductible. The ROE (return on equity) is always higher for a debt-leveraged firm than an equity-financed firm because more of the net income will be available for distribution to stockholders, given the tax benefits of having more debts.
How do managers decide upon an ethical course of action when confronted with decisions pertaining to working conditions, human rights, corruption, and environmental pollution
Answer:
1. Identify stakeholder's decisions - Consider
The first step is to identify what the decisions to be made are.
2. Judge the ethics of strategic decisions - Know
After finding out the decisions, find out what ethical considerations relate to these decisions.
3. Establish moral intent - Decide
Then decide on which decision to take based on what the ethical considerations were as well as the values of the company.
4. Engage in ethical behavior - Act
Take the decision that you decided from the last step.
5. Audit decisions - Ask
As always there has to be an evaluation. Keep checking how the decision is working out to see if it was the right one.
2018
Feb. 2 Recorded credit sales of $97,000. Ignore Cost of Goods Sold.
Nov. 1 Loaned $18,000 to Jess Price, an executive with the company, on a one-year, 7% note.
Dec. 31 Accrued interest revenue on the Price note. 2019
Nov. 1 Collected the maturity value of the Price note.
Required:
Journalize the entries.
Answer:
Feb 6
Dr Account receivable $97,000
Cr Sales revenue $97,000
Jul 1
Dr Notes receivable $18,000
Cr Cash $18,000
Dec 31
Dr Interest receivable $630
Cr Interest revenue $630
July 1
Dr Cash $19,260
Cr Notes receivable $18,000
Cr Interest receivable $630
Cr Interest revenue $630
(To record collection)
Explanation:
Preparation of the journal entries
Feb 6
Dr Account receivable $97,000
Cr Sales revenue $97,000
(To credit sales)
Jul 1
Dr Notes receivable $18,000
Cr Cash $18,000
(To record loan given)
Dec 31
Dr Interest receivable ($18000*7%*6/12) $630
Cr Interest revenue $630
(To record accrued interest)
July 1
Dr Cash $19,260
($18,000+$630+630)
Cr Notes receivable $18,000
Cr Interest receivable $630
Cr Interest revenue $630
(To record collection)
Valley Technology Balance Sheet As of January 24, 2021 (amounts in thousands)
Cash 9,700 Accounts Payable 1,500
Accounts Receivable 4,500 Debt 2,900
Inventory 3,800 Other Liabilities 800
Property Plant & Equipment 16,400 Total Liabilities 5,200
Other Assets 1,700 Paid-In Capital 7,300
Retained Earnings 23,600
Total Equity 30,900
Total Assets 36,100 Total Liabilities & Equity 36,100
Record the transactions in a journal, transfer the journal entries to T-accounts, compute closing amounts for the T-accounts, and construct a balance sheet to answer the question.
Jan 25. Sell product for $30,000 in cash with historical cost of $24,000
Jan 26. Sell, deliver, and receive payment of $40,000 for service
Jan 27. Consume good or service and pay expense of $2,000
What is the final amount in Total Liabilities & Equity?
Answer:
Valley Technology
1. Journal Entries:
Jan 25. Debit Cash $30,000
Credit Sales Revenue $30,000
To record the sale of goods for cash.
Debit Cost of goods sold $24,000
Credit Inventory $24,000
To record the cost of goods sold.
Jan 26. Debit Cash $40,000
Credit Service Revenue $40,000
To record the rendering of services for cash.
Jan 27. Debit Expenses $2,000
Credit Cash $2,000
To record the payment for good or service consumed.
2. T-accounts:
Cash
Date Account Titles Debit Credit
Jan. 24 Beginning balance 9,700
Jan 25. Sales Revenue 30
Jan 26. Service Revenue 40
Jan 27. Expenses 2
Jan. 31 Ending balance 9,768
Inventory
Date Account Titles Debit Credit
Beginning balance 3,800
Cost of goods sold 24
Ending balance 3,776
Sales Revenue
Date Account Titles Debit Credit
Cash $30
Service Revenue
Date Account Titles Debit Credit
Cash $40
Cost of goods sold
Date Account Titles Debit Credit
Inventory $24
Expenses
Date Account Titles Debit Credit
Cash $2
3. Balance Sheet As of January 31, 2021 (amounts in thousands)
Cash 9,768 Accounts Payable 1,500
Accounts Receivable 4,500 Debt 2,900
Inventory 3,776 Other Liabilities 800
Property Plant & Equipment 16,400 Total Liabilities 5,200
Other Assets 1,700 Paid-In Capital 7,300
Retained Earnings 23,644
Total Equity 30,944
Total Assets 36,144 Total Liabilities & Equity 36,144
4. The final amount in Total liabilities and equity is:
= $36,144
Explanation:
a) Data and Calculations:
Balance Sheet As of January 24, 2021 (amounts in thousands)
Cash 9,700 Accounts Payable 1,500
Accounts Receivable 4,500 Debt 2,900
Inventory 3,800 Other Liabilities 800
Property Plant & Equipment 16,400 Total Liabilities 5,200
Other Assets 1,700 Paid-In Capital 7,300
Retained Earnings 23,600
Total Equity 30,900
Total Assets 36,100 Total Liabilities & Equity 36,100
Analysis:
Jan 25. Cash $30,000 Sales Revenue $30,000
Cost of goods sold $24,000 Inventory $24,000
Jan 26. Cash $40,000 Service Revenue $40,000
Jan 27. Expenses $2,000 Cash $2,000
Revenue:
Sales revenue $30
Cost of goods sold (24)
Service revenue 40
Gross profit $46
Expenses 2
Net income $44
Retained Earnings, beginning $23,600
Net income 44
Retained Earnings,, ending $23,644
Hortencia is employed as an accountant for a large firm in San Diego. For relaxation she likes to go to a nearby casino and play in blackjack tournaments. During 2019, she incurred $6,575 in gambling losses and $5,330 in gambling winnings. Hortencia plans to itemize her deductions in 2019 because she purchased a home this year and has mortgage interest expense; what amount could she claim on her return for other itemized deductions for the year
The amount that Hortencia can claim on her return for other itemized deductions for the year is $5330.
It should be noted that gambling losses can only be itemized based on the extent of winnings when the deductions are itemized.
Since the gambling losses incurred is $6,575 while the winnings is $5330. Therefore, Hortencia can claim $5330 as other itemized deductions for the year.
Read related link on:
https://brainly.com/question/3350870
Your grandfather put some money in an account for you on the day you were born. You are now years old and are allowed to withdraw the money for the first time. The account currently has in it and pays an interest rate.
Required:
a. How much money would be in the account if you left the money there until your twenty-fifth birthday?
b. What if you left the money until your sixty-fifth birthday?
c. How much money did your grandfather originally put in the account?
Answer:
Missing word "You are now 18 years old and are allowed to withdraw the money for the first time. The account currently has $3996 in it and pays an 8% interest rate."
a. At 18 years, future value of current amount (compounded for another 7 years at 8%)
= $3,996 * (1.08)^7
= $3,996 * 1.7138
= $6,848.34
b. At age 65, future value of this amount (compounded for another 40 years at 8%)
= $6,848.44 * (1.08)^40
= $6,848.44 * 21.7245
= $148,779.93
c. Future Value = Present Value * (1 + Interest Rate)^n
So, let initial the money deposited be represented by Y
=> $3,996 = Y * (1.08)^18
=> $3,996 = Y * 3.996
Y = $3,996 / 3.996
Y = $1,000
The current asset section of the Excalibur Tire Company’s balance sheet consists of cash, marketable securities, accounts receivable, and inventory. The December 31, 2021, balance sheet revealed the following:
Inventories $840,000
Total assets $2,800,000
Current ratio 2.25
Acid-test ratio 1.2
Debt to equity ratio 1.8
Determine the following 2021 balance sheet items:
a. Current assets
b. Shareholders' equity
c. Noncurrent assets
d. Long-term liabilities
Answer:
a. Current assets = $1,800,000
b. Shareholders' equity = $1,000,000
c. Noncurrent assets = $1,000,000
d. Long-term liabilities = $1,000,000
Explanation:
a. Current assets
Current liabilities = Inventories / (Current ratio - Acid-test ratio) = $840,000 / (2.25 - 1.2) = $800,000
Since Current assets / Current liabilities = 2.25 = Current ratio, therefore, we have:
Current assets = Current ratio * Current liabilities = 2.25 * $800,000 = $1,800,000
b. Shareholders' equity
Debt to equity ratio = Total liabilities / Shareholders' equity = 1.8
Total liabilities = (1.8 * Shareholders' equity)
Total assets = $2,800,000
Total assets = Total liabilities + Shareholders' equity ………….. (1)
Substituting all the relevant values into equation (1) and solve for Shareholders' equity, we have:
$2,800,000 = (1.8 * Shareholders' equity) + Shareholders' equity
$2,800,000 = (1.8 + 1) * Shareholders' equity
$2,800,000 = 2.8 * Shareholders' equity
Shareholders' equity = $2,800,000 / 2.8 = $1,000,000
c. Noncurrent assets
Noncurrent assets = Total assets - Current assets = $2,800,000 - $1,800,000 = $1,000,000
d. Long-term liabilities
Long-term liabilities = Total assets - Current liabilities - Shareholders' equity = $2,800,000 - $800,000 - $1,000,000 = $1,000,000
