Answer:
At receipt of payment on November 1, Year 2, entries required
Dr Cash $32,000 (Asset)
Cr Deferred rental revenue $32,000 (Liabilities)
On December 31, adjustment required
Dr Deferred rental revenue $5,333.33 ( Liabilities)
Cr Rental revenue $5,333.33 (Equity)
Hence the accounting equation becomes
$32,000 = $26,666.67 + $5,333.33
Assets (Cash) = Liabilities (Deferred rental revenue) + Equity (Rental revenue)
Explanation:
The accounting equation is given as
Assets = ,Equity + Liabilities
Given that Stokes Company paid Eastport Rentals $32,000 for a 12-month lease on warehouse space, the monthly income to Eastport Rentals
= $32,000/12
= $2,666.67
Hence between November 1, Year 2 and December 31, Year 2, the income earned
= $2,666.67 * 2
= $5,333.33
The amount unearned (or deferred) at December 31, Year 2
= $32,000 - $5,333.33
= $26,666.67
At receipt of payment on November 1, Year 2, entries required
Dr Cash $32,000 (Asset)
Cr Deferred rental revenue $32,000 (Liabilities)
On December 31, adjustment required
Dr Deferred rental revenue $5,333.33 ( Liabilities)
Cr Rental revenue $5,333.33 (Equity)
ExxonMobil reports total assets of $188 billion and total liabilities of $87 billion. Citigroup reports total liabilities of $1,300 billion and stockholders' equity of $90 billion. Amazon reports total assets of $2.7 billion and total stockholders' equity of $0.10 billion. Nike reports an increase in assets of $1.00 billion and an increase in liabilities of $0.5 billion. Kellogg's reports a decrease in liabilities of $0.44 billion and an increase in stockholders' equity of $0.04 billion. (Enter your answers in billions rounded to 2 decimal places. Negative amounts should be indicated by a minus sign.) Required: What is the amount of stockholders' equity of ExxonMobil
Answer:
$101 billion
Explanation:
The computation of the amount of stockholders' equity of ExxonMobil is shown below:
As we know that
Total assets = Total liabilities + stockholder equity
where,
total assets is $188 billion
And, the total liabilities is $87 billion
So, the stockholder equity is
= $188 billion - $87 billion
= $101 billion
Market intelligence research defines the____ and_____ of a market.
A.size and location
B.size and scope
C.location and scope
D.location and area
help
Answer:
dja-xizd-mku G meet code
Xercise Cycles Company has provided its year ended accounts receivables that were uncollected. The Controller has asked you to help prepare the Aging of Accounts Receivable Schedule and the corresponding journal entries. Use the information included in the Excel Simulation and the Excel functions described below to complete the task.
1) Calculate the number of days unpaid, USING THE EXCEL DAYS FUNCTION (fx).
2) Use the information above to complete the Aging of Accounts Recievable Schedule Below.
Create a formula for each age category, using the Excel IF and AND FUNCTION (fx) to determine where each customer amount belongs.
3) Prepare the adjusting journal entry for recording bad debt expense if the allowance for doubtful accounts had the following unadjusted balance:
4) Prepare the adjusting journal entry for recording bad debt expense if the Allowance for Doubtful Accounts had the following unadjusted balance:
Answer:
In the number of days unpaid column (E8), input the formula; "=DAYS(D8, C8)" then copy it down to the last item on the table.
Explanation:
Answering just the first question, the DAYS function is used to calculate the difference between day timelines. The function accepts two parameters, the first date which is the current date we are subtracting from, and the second date which is the previous date.
The basic economic questions that any provider of goods must ask are:
• What will be produced?
• Who will produce it?
• For whom will it be produced?
In which type of economy are these decisions made solely by the
government?
A. Mixed
B. Free
C. Command
D. Traditional
Answer:
C. Command
Explanation:
In a command economy, the government owns and controls all the factors of production. All the factors of production are owned and controlled by the government. The government does all the productions through its agencies.
The government prepares central economic plans that guide the country's economic activities. The central plans indicate what goods and services will be produced, their quantities, and prices. The plans also dictate how distributions will be done in the country.
At December 31, Year 1, Kale Co. had the following balances in the accounts it maintains at First State Bank:
Checking account #101 $175,000
Checking account #201 (10,000)
Money market account 25,000
90-day certificate of deposit, due 2/28/Y2 50,000
180-day certificate of deposit, due 3/15/Y2 80,000
Kale classifies investments with original maturities of three months or less as cash equivalents. In its December 31, Year 1, balance sheet, what amount should Kale report as cash and cash equivalents?
Answer:
$240,000
Explanation:
The computation of the amount of cash and cash equivalent is as follows;
Amount of cash and cash equivalents is
= Money market account + 90-day certificate of deposit + Checking account for 101 - Checking account for
= $25,000 + $50,000 + ($175,000 - $10,000)
= $25,000 + $50,000 + $165,000
= $240,000
The capital balance for Messalina is $210,000 and for Romulus is $140,000. These two partners share profits and losses 60 percent (Messalina) and 40 percent (Romulus). Claudius invests $100,000 in cash in the partnership for a 20 percent ownership. The bonus method will be used. What are the capital balances for Messalina, Romulus, and Claudius after this investment is recorded
Answer: $216,000 , $144,000 , $90,000
Explanation:
The capital balances for Messalina, Romulus, and Claudius after this investment is recorded will be calculated thus:
Messalina:
Capital balance: $210,000
Bonus share: 60% × $10000 = $6,000
New capital balance: $216,000
Romulus:
Capital balance: $140,000
Bonus share: 40% × $10000 = $4,000
New capital balance: $144,000
Claudius:
Capital balance: $100,000
Bonus share: 10% × $10000 = ($10,000)
New capital balance: $90,000
The answer is $216,000 , $144,000 , $90,000
Two independent companies, Denver and Bristol, each own a warehouse, and they agree to an exchange in which no cash changes hands. The following information for the two warehouses is available:
Denver Bristol
Cost $80,000 $31,500
Accumulated depreciation 60,000 25,000
Fair value 17,000 17,000
Required:
1. Assuming the exchange has commercial substance, prepare journal entries for Denver and Bristol to record the exchange.
2. Assuming the exchange does not have commercial substance, prepare journal entries for Denver and Bristol to record the exchange.
Answer and Explanation:
The journal entries are shown below
1.
On Denver books
Equipment Dr $17,000
Accumulated depreciation $60,000
Loss on sale of equipment $3,000
To Equipment $80,000
(Being equipment recorded)
On Bristol books
Equipment Dr $17,000
Accumulated depreciation $25,000
To Gain on sale of equipment $10,500
To Equipment $31,500
(Being equipment recorded)
2.
On Denver books
Equipment Dr $20,000
Accumulated depreciation $60,000
To Equipment $80,000
(Being equipment recorded)
On Bristol books
Equipment Dr $6,500
Accumulated depreciation $25,000
To Equipment $31,500
(Being equipment recorded)
Suppose the demand function for good X is given by: where is the quantity demanded of good X, is the price of good X, and is the price of good Y, which is related to good X. Using the midpoint method, if the price of good X is constant at $10 and the price of good Y decreases from $10 to $8, the cross price elasticity of demand is about:_________
Answer:
Quantity demanded is -0.4
Explanation:
Quantity demanded is -0.4 if the prices decline from $8 to $10. The cross price elasticity is the change in quantity demanded for the goods when the price of other goods changes. The price change can be minor and the quantity demanded change can be high.
During its first five years of operations, a company reports net income and pays dividends as follows. Required: Calculate the balance of retained earnings at the end of each year. Note that retained earnings will always equal $0 at the beginning of year 1.
Answers:
Years:
$700$1,900$3,000$5,200$8,600Explanation:
Retained earnings for the year is:
= Beginning retained earnings + Net income - Dividends
Year 1
= 0 + 1,200 - 500
= $700
Year 2
= 700 + 1,700 - 500
= $1,900
Year 3
= 1,900 + 2,100 - 1,000
= $3,000
Year 4
= 3,000 + 3,200 - 1,000
= $5,200
Year 5
= 5,200 + 4,400 - 1,000
= $8,600
The study of the role consumers play in a economic system is called what
Answer: Can i get OWA OWA
Explanation:
When you are able to feel and touch product, it is called
Answer:
In a Proctor & Gamble study published in 2009, spanning 21 years total, found that customers who were able to feel merchandise were willing to pay more than those who hadn't. This phenomenon is called “The Endowment Effect." Basically, we make an emotional connection with what we touch.
Explanation:
Hope this helps
From,
1kvibing
The feel and touch of the products are called the endowment effect.
What is an endowment effect?An endowment effect is an effect that is associated with behavioral economics and the effect is that people find more likely to retain an object they own rather than acquire the object that they don't own.
The company named P and G published that clients were able to feel merchandised were willing to pay more than those who had not.
Find out more information about the product.
brainly.com/question/10873737
Conrad, Inc. recently lost a portion of its records in an office fire. The following information was salvaged from the accounting records.
Cost of Goods Sold $ 65,000
Work-in-Process Inventory, Beginning 10,500
Work-in-Process Inventory, Ending 9,000
Selling and Administrative Expense 15,000
Finished Goods Inventory, Ending 15,000
Finished Goods Inventory, Beginning?
Direct Materials Used ?
Factory Overhead Applied 12,000
Operating Income 14,000
Direct Materials Inventory, Beginning 11,000
Direct Materials Inventory, Ending 6,000
Cost of Goods Manufactured 60,000
Direct labor cost incurred during the period amounted to 1.5 times the factory overhead. The CFO of Fisher, Inc. has asked you to recalculate the following accounts and to report to him by the end of the day. What is the amount of direct materials used?
Answer:
See below
Explanation:
Direct materials used = Cost of goods manufactured - work in process inventory, beginning - factory overhead applied - direct labor + work in process inventory, ending
= $60,000 - $10,500 - $12,000 - (1.5 × $12,000) + $9,000
=
Primare Corporation has provided the following data concerning last month's manufacturing operations
Purchases of raw materials $30,000
Indirect materials included in manufacturing overhead $4,900
Direct labor $58,500
Manufacturing overhead applied to work in process $88,500
Underapplied overhead $4,170
Inventories Beginning Ending
Raw materials $11,100 $18,200
Work in process $55,100 $68,400
Finished goods $34,100 $42,200
1. Prepare a schedule of cost of goods manufactured for the month.
2. Prepare a schedule of cost of goods sold for the month. Assume the underapplied or overapplied overhead is closed to Cost of Goods Sold.
Answer:
Primare Corporation
1. A Schedule of Cost of Goods Manufactured for the month:
Beginning WIP $55,100
Raw materials used 18,000
Direct labor 58,500
Manufacturing o/h 88,500
Ending Balance (68,400)
$151,700
2. A Schedule of Cost of Goods Sold for the month:
Finished goods inventory $34,100
Cost of manufacturing 151,700
Ending Finished goods (42,200)
Underapplied overhead 4,170
Cost of goods sold $147,770
Explanation:
a) Data and Calculations:
Purchases of raw materials $30,000
Indirect materials included in manufacturing overhead $4,900
Direct labor $58,500
Manufacturing overhead applied to work in process $88,500
Underapplied overhead $4,170
Inventories Beginning Ending
Raw materials $11,100 $18,200
Work in process $55,100 $68,400
Finished goods $34,100 $42,200
Raw materials
Beginning Balance $11,100
Purchase 30,000
Manufacturing overhead $4,900
Work in process 18,000
Ending Balance $18,200
Work in process
Beginning Balance $55,100
Raw materials 18,000
Direct labor 58,500
Manufacturing o/h 88,500
Finished goods $151,700
Ending Balance $68,400
Finished goods
Beginning Balance $34,100
WIP 151,700
Cost of goods sold $143,600
Ending Balance $42,200
B) Suppose that regular raises at your job allow you to increase your annual payment by 5% each year. For simplicity, assume this is a nominal rate, and your payment amount increases continuously. How long will it take to pay off the mortgage
Answer:
Time period required to pay off the mortgage = 18 years
Explanation:
Note: This question is incomplete and lacks necessary data to solve. But I have found that necessary data on the internet, which I have written down and solved the question accordingly.
Data Missing:
Buying Cost of House = $320000
Interest rate = 7%
Annual Mortgage Payment = $25525.8
Now, we are required to calculate the time period required to pay off the mortgage.
Solution:
Data Given:
Increase in annual payment percentage = 5%
So,
Formula:
P = C[tex]e^{A-i}[/tex] + C[tex]e^{2(A-i)}[/tex] + C[tex]e^{3(A-i)}[/tex] + ........ + C[tex]e^{n(A-i)}[/tex]
Where,
P = Buying Cost of House = $320000
i = interest rate = 7% = 0.07
A = Increase in annual payment percentage = 5% = 0.05
C = Annual Mortgage Payment = $25525.8
P = C[tex]e^{A-i}[/tex] + C[tex]e^{2(A-i)}[/tex] + C[tex]e^{3(A-i)}[/tex] + ........ + C[tex]e^{n(A-i)}[/tex]
In this formula, we have all the required things expect the value of n, which we have to calculate.
n = Time period required to pay the mortgage.
So,
$320000 = 25525.8 [tex]e^{0.05 - 0.07}[/tex] + 25525.8 [tex]e^{2(0.05 - 0.07)}[/tex] + 25525.8 [tex]e^{3(0.05 - 0.07)}[/tex] + ..... + 25525.8 [tex]e^{n(0.05 - 0.07)}[/tex]
Taking 25525.8 common,
320000 = 25525.8 ( [tex]e^{-0.02}[/tex] + [tex]e^{-0.04}[/tex] + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )
320000/25525.8 = ( [tex]e^{-0.02}[/tex] + [tex]e^{-0.04}[/tex] + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )
12.536 = ( [tex]e^{-0.02}[/tex] + [tex]e^{-0.04}[/tex] + [tex]e^{-0.06}[/tex] + .... + [tex]e^{-0.02n}[/tex] )
Taking e common:
12.536 = [tex]e^{-0.02 -0.04 - 0.06 + .... -0.02n}[/tex]
Taking Ln to solve for n, we get:
n = 17.89
n ≈ 18
n = 18 years
Hence, Time period required to pay off the mortgage = 18 years
Atlantic Corporation reported the following amounts at the end of the first year of operations: Common stock $ 270,000 Sales revenue $ 940,000 Total assets $ 740,000 Dividends declared $ 65,000 Total liabilities $ 410,000 What are the retained earnings of Atlantic at the end of the year, and what amount of expenses were incurred during the year
Answer:
See below
Explanation:
According to the above information, Retained earning is
Sales revenue $940,000 - dividend declared $65,000 = $875,000
Retained earning is $857,000
Pension data for Goldman Company included the following for the current calendar year: Service cost $ 140,000 PBO, January 1 650,000 Plan assets, January 1 700,000 Amortization of prior service cost 5,000 Amortization of net loss 1,000 Discount rate, 6% Expected return on plan assets, 8% Actual return on plan assets, 10% Required: Determine pension expense for the year. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
$129,000
Explanation:
Calculation for pension expense
Service Cost $140,000
Add: Interest Cost $39,000
($650,000 × 6%)
Add: Amortization of prior service cost $5,000
Add: Amortization of net loss $1,000
Less Expected return on plan assets $56,000 ($700,000 × 8%)
Pension Expense $129,000
Therefore Pension Expense is $129,000
AudioCables, Inc., is currently manufacturing an adapter that has a variable cost of $0.60 per unit and a selling price of $1.20 per unit. Fixed costs are $14,000. Current sales volume is 30,000 units. The firm can substantially improve the product quality by adding a new piece of equipment at an additional fixed cost of $6,000. Variable costs would increase to $0.75, but sales volume should jump to 50,000 units due to a higher-quality product. a. What is the current profit and proposed profit of the sales of AudioCables
Answer:
The answer is "$4,000 and $2,500"
Explanation:
Formula:
[tex]\text{Profit = Sales - Total cost}[/tex]
[tex]= \frac{\text{Selling price}}{unit} \times \text{volume of Sale} - ( \text{Fixed cost} + \frac{\text{Variable cost}}{unit} \times \text{volume of Sale})[/tex]
[tex]= 1.20 \times 30000 - ( 14,000 + 0.6 \times 30,000)\\\\= 36,000 -( 14,000 + 18,000)\\\\= 36,000 - 14,000 - 18,000 \\\\= 36,000 - 32,000 \\\\= \$ 4,000[/tex]
The scenario was revised by installing new audio connection equipment:
The volume of revised sales[tex]= 50,000[/tex]
Fixed cost updated [tex]= \$ 41,000 + \$ 6,000 = \$ 20,000[/tex]
Cost of the updated component [tex]= \frac{\$ 0.75}{unit}[/tex]
Unchanged purchase price/unit [tex]= \frac{\$ 1.2}{unit}[/tex]
[tex]= 1.2 \times 50,000 -(20,000 + 0.75 \times 50,000)\\\\= 60,000 -(20,000 + 37,500)\\\\= 60,000 -(57,500)\\\\= 60,000 -57,500 \\\\ =2,500[/tex]
Audio cable sales are actually profiting = 4,000
Proposal for audio cable sales profit = 2,500
Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $1,200 per month. (Round your answers to the nearest cent.)
(a) Find the amount needed at maturity to generate $1,350 per month interest, if they can get 7 % interest compounded monthly.
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9 % and the term is twenty years.
Answer:
(a) The amount needed is $192,000.
(b) The monthly payment is $150.98.
Explanation:
Note: There are errors in this question. The correct question is therefore provided before answering the question as follows:
Susan and Bill Stamp want to set up a TDA that will generate sufficient interest at maturity to meet their living expenses, which they project to be $1,200 per month. (Round your answers to the nearest cent.)
(a) Find the amount needed at maturity to generate $1,200 per month interest, if they can get 7.25% interest compounded monthly.
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9.75% and the term is twenty years.
The explanation of the answer is now given as follows:
(a) Find the amount needed at maturity to generate $1,200 per month interest, if they can get 7.25% interest compounded monthly.
This can be calculated using the following future value formula:
FV = P / i ........................... (1)
Where;
FV = Amount needed at maturity = ?
P = Monthly payment or amount to generate monthly = $1,200
i = monthly interest rate = Annual interest rate / 12 = 7.25% / 12 = 0.075 / 12 = 0.00625
Substituting the values into equation (1), we have:
FV = $1,200 / 0.00625 = $192,000
Therefore, the amount needed is $192,000.
(b) Find the monthly payment that they would have to make into an ordinary annuity to obtain the future value found in part (a) if their money earns 9.75% and the term is twenty years.
This can be calculated using the Future Value (FV) of an Ordinary Annuity as follows:
FV = M * (((1 + r)^n - 1) / r) ................................. (2)
Where,
FV = Future value = $192,000
M = Monthly payment = ?
r = Monthly interest rate = 9.75% / 12 = 0.0975 / 12 = 0.008125
n = number of months = 25 years * Number of months in a year = 25 * 12 = 300
Substituting the values into equation (2) and solve for M, we have:
$192,000 = M * (((1 + 0.008125)^300 - 1) / 0.008125)
$192,000 = M * 1271.65920375075
M = $192,000 / 1271.65920375075
M = $150.98
Therefore, the monthly payment is $150.98.
Because your patented Gidgit is starting to gain attention and investors are starting to show interest, the executive committee is considering becoming a publicly held company by selling the company to the government.
True
False
Answer:
False.
Explanation:
Patent can be defined as the exclusive or sole right granted to an inventor by a sovereign authority such as a government, which enables him or her to manufacture, use, or sell an invention for a specific period of time.
Generally, patents are used on innovation for products that are manufactured through the application of various technologies.
Basically, the three (3) main ways to protect an intellectual property is to employ the use of trademarks, copyright and patents.
In this scenario, Because your patented Gidgit is starting to gain attention and investors are starting to show interest, the executive committee is considering becoming a publicly held company.
Since Gidgit is patented it cannot be sold to the government because it is a registered intellectual property that cannot be used or sold without the approval or consent of the owner.
Imprudential, Inc., has an unfunded pension liability of $573 million that must be paid in 20 years. To assess the value of the firm’s stock, financial analysts want to discount this liability back to the present. If the relevant discount rate is 6.6 percent, what is the present value of this liability?
Answer:
$159.59 million
Explanation:
The present value of the liability is the future value of the obligation which in this case is $573 million discounted at the 6.6% appropriate discount chosen by the analyst as shown below:
PV=FV/(1+r)^n
PV=the present value of the obligation=the unknown
FV=$573 million
r=discount rate=6.6%
n=number of years before the liability becomes due=20
PV=$573 million/(1+6.6%)^20
PV=$573 million/1.066^20
PV=$573 million/3.590410405
PV=$159.59 million
Find the present values of the following cash flow streams. The appropriate interest rate is 10%. (Hint: It is fairly easy to work this problem dealing with the individual cash flows. However, if you have a financial calculator, read the section of the manual that describes how to enter cash flows such as the ones in this problem. This will take a little time, but the investment will pay huge dividends throughout the course.
Year    Cash Stream A Cash Stream B
1 $100 $300
2 400 400
3 400 400
4 400 400
5 300 100
   Â
Required:
What is the value of each cash flow stream at a 0 percent interest rate?
Answer:
a. The present value of Cash flow stream A at 10% interest rate is $1,181.50; while the present value of Cash flow streams B at 10% interest rate is $1,239.13.
b. Present value of Cash flow streams A and B at 0% interest rate are both equal to $1,600.
Explanation:
a. Calculations of the present values of Cash Flow Stream A and B at 10% interest rate
The present value (PV) for a particular year can be calculated using the following formula:
PV = FV / (1 + r)^n
Where:
PV = present value of a particular year
FV = Future value or cash stream of a particular year
r = interest rate = 10%
n = The particular year in focus
The present value of cash flow streams at a particular interest rate is the sum of the present values of Cash Stream for all years, and this can be calculated as follows:
Present value of Cash flow stream A at 10% interest rate = (100 / (1 + 10%)^1) + (400 / (1 + 10%)^2) + (400 / (1 + 10%)^3) + (400 / (1 + 10%)^4) + (300 / (1 + 10%)^5) = $1,181.50
Present value of Cash flow streams B at 10% interest rate = (300 / (1 + 10%)^1) + (400 / (1 + 10%)^2) + (400 / (1 + 10%)^3) + (400 / (1 + 10%)^4) + (100 / (1 + 10%)^5) = $1,239.13
b. Calculations of the present values of Cash Flow Stream A and B at 0% interest rate
The present value of cash flow streams at a 0% is simply the sum of Cash Flow Stream for all years, and this can be calculated as follows:
Present value of Cash flow stream A at 0% interest rate = $100 + $400 + $400 + $400 + $300 = $1,600
Present value of Cash flow streams B at 0% interest rate = $300 + $400 + $400 + $400 + $100 = $1,600
. Gross Domestic Product (GDP) can be defined as: I. The sum of all incomes while adjusting for indirect business taxes and foreign incomes. II. The market value of goods and services sold in an economy in some time period. III. The total market value of final goods and services produced in an economy in some time period.
Answer:
The total market value of final goods and services produced in an economy in some time period.
Explanation:
Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year
GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export
Net export = exports – imports
When exports exceed import there is a trade deficit and when import exceeds import, there is a trade surplus.
Items not included in the calculation off GDP includes:
1. services not rendered to oneself
2. Activities not reported to the government
3. illegal activities
4. sale or purchase of used products
5. sale or purchase of intermediate products
Ben wants to do business in the Middle East where it is an accepted practice to give gifts to government officials. However, Ben may not be able to carry out his plans because he doesn't want to violate The Foreign Corrupt Practices Act (FCPA), which was enacted because Congress was concerned about _______.
Answer:
U.S. corporations' use of illegal payments and bribes in international business dealings
Explanation:
From the question, we are informed about Ben who wants to do business in the Middle East where it is an accepted practice to give gifts to government officials. However, In this case, Ben may not be able to carry out his plans because he doesn't want to violate The Foreign Corrupt Practices Act (FCPA), which was enacted because Congress was concerned about U.S. corporations' use of illegal payments and bribes in international business dealings.
The Foreign Corrupt Practices can be regarded as one the U.S law of 1977 act. This law is about prohibition of citizens of U.S as well as entities from giving bribes to officials of government of foreign countries in order to be a beneficiary of their business interests
Aquatic Equipment Corporation decided to switch from the LIFO method of costing inventories to the FIFO method at the beginning of 2018. The inventory as reported at the end of 2017 using LIFO would have been $70,000 higher using FIFO. Retained earnings at the end of 2017 was reported as $880,000 (reflecting the LIFO method). The tax rate is 34%.
Required:
1. Calculate the balance in retained earnings at the time of the change (beginning of 2013) as it would have been reported if FIFO had been used in prior years.
2. Prepare the journal entry at the beginning of 2013 to record the change in accounting principle. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
Answer:
1. Adjusted net income = Ending inventory higher by amount * (1-Tax rate) = $70,000*(1-34%) = $70,000 * 66% = $46,200
Details Amount
Beginning retained earnings for the year 2017 $880,000
Add: Adjusted net income $46,200
Beginning adjusted retained earnings for year 2017 $926,200
2. Tax payable = Inventory * Tax rate = $70,000*34% = $23,800
Date Account Titles and Explanation Debit Credit
Inventory $70,000
Retained earnings $46,200
Tax payable $23,800
(To record adjustment of ending inventory)
A national restoration contractor has $5 million to invest in new software to become more efficient in writing estimates and reducing errors, increasing net profits for the company. There are three products under consideration, each with a cost of $5 million to implement across the company. Which product should be purchased
Answer:
Product B
Explanation:
We are informed about A national restoration contractor who has has $5 million to invest in new software to become more efficient in writing estimates and reducing errors, increasing net profits for the company. There are three products under consideration, each with a cost of $5 million to implement across the company. In this case The product he should purchased is Product B
Katherine Stein told her boss, "Dan, a number of our senior staff will be retiring within five years. We can't afford to have the combined expertise, skills, wisdom, and relationships of these retirees walk out the door without first discovering and sharing these intellectual resources. I recommend that we implement a(n) ______________ system to harness this intellect."
Answer: knowledge management
Explanation:
Based on the information given, knowledge management would be used to harness this intellect.
Knowledge management simply has to do with the creation, and management of information and knowledge for an organization so that the organization's objectives can be achieved.
As CEO of ​, knows it is important to control costs and to respond quickly to changes in the highly competitive​ boat-building industry. When Consulting proposes that invest in an ERP​ system, she forms a team to evaluate the​ proposal: the plant​ engineer, the plant​ foreman, the systems​ specialist, the human resources​ director, the marketing​ director, and the management accountant. A month​ later, management accountant reports that the team and estimate that if implements the ERP​ system, it will incur the following​ costs:
a. $435,000 in software costs
b. $95,000 to customize the ERP software and load Aqua Marine's data into the new ERP system
c. $105,000 for employee training
The team estimates that the ERP system should provide several benefits:
a. More efficient order processing should lead to savings of $105,000.
b. Streamlining the manufacturing process so that it maps into the ERP system will create savings of $125,000.
c. Integrating purchasing, production, marketing, and distribution into a single system will allow Aqua Marine to reduce inventories, saving $225,000.
d. Higher customer satisfaction should increase sales, which, in turn, should increase profits by $155,000.
Requirements
a. If the ERP installation succeeds, what is the dollar amount of the benefits?
b. Should Aqua Marine install the ERP system? Why or why not? Show your calculations.
c. Why did Easton create a team to evaluate Rose's proposal? Consider each piece of cost-benefit information that management accountant Cole reported. Which person on the team is most likely to have contributed each item? (Hint: Which team member is likely to have the most information about each cost or benefit?)
Answer:
a.) Total benefit if the ERP installation succeeds = $610,000
b.) They should not install the ERP system.
c.) For Estimating software costs - Systems specialist
For Estimating cost of loading data into the new ERP system - Management accountant , Systems specialist
For Customize the ERP software - Management accountant , Systems specialist
For Estimating customization costs - All team members
For Estimating training costs - Human resource director
For Savings from more efficient order processing - Systems specialist , Management accountant
For Savings from streamlining the manufacturing process - Plant engineer , Plant foreman
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimating benefits and costs - All team members
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimate benefits and costs - All team members
Explanation:
a.)
If the ERP installation succeeds , the dollar amount of the benefit is as follows :
From more efficient order processing savings = $105,000
From streamlining the manufacturing process savings = $125,000
From reduce inventories savings = $225,000
From increased sales profit = $155,000
⇒Total benefit = $ 105,000 + 125,000 + 225,000 + 155,000
= $610,000
⇒Total benefit if the ERP installation succeeds = $610,000
b.)
Firstly check the Costs for installation of ERP:
Software cost = $435,000
Customizing ERP and loading data cost = $95,000
Employee training cost = $105,000
⇒Total cost = $ 435,000 + 95,000 + 105,000
= $635,000
⇒Total cost = $635,000
Now,
As we have
Total Benefit in installation of ERP = $610,000
Total cost in installation of ERP = $635,000
⇒Net benefit = $610,000 - $635,000 = -$ (25,000)
∴ we get
If Aqua Marine install the ERP system , them they face loss.
So, They should not install the ERP system.
c.)
For Estimating software costs - Systems specialist
For Estimating cost of loading data into the new ERP system - Management accountant , Systems specialist
For Customize the ERP software - Management accountant , Systems specialist
For Estimating customization costs - All team members
For Estimating training costs - Human resource director
For Savings from more efficient order processing - Systems specialist , Management accountant
For Savings from streamlining the manufacturing process - Plant engineer , Plant foreman
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimating benefits and costs - All team members
For Evaluating the effects of integrating purchasing, production, marketing, and distribution into a single system - Plant foreman
For Estimating increase in sales from higher customer satisfaction - Marketing director
For Estimate benefits and costs - All team members
Mohawk Machining, which uses a process-costing system, adds material at the beginning of production and incurs conversion cost evenly throughout manufacturing. The following selected information was taken from the company's accounting records: Total equivalent units of materials: 8,000 Total equivalent units of conversion: 7,400 Units started and completed during the period: 6,500 On the basis of this information, the ending work-in-process inventory's stage of completion is:_____.
A- 80%.
B- 70%.
C- 60%. - 40%.
D- some other percentage not listed above.
Answer:
C. 60%
Explanation:
Equivalent unit of Materials = 8,000.00
Equivalent unit of Conversion = 7,400.00
Units started and completed = 6,500.00
Since Materials are entered in the beginning it means that out of 8000 Units of Materials 6500 units are in Units started and completed and remaining 1500 Units are in Closing inventory. It also means that 1500 units are in Closing Inventory of Conversion and Equivalent production of conversion part of 1500 Units are 900 Units (7400-6500).
Let % Completion be x
X% of 1500 = 900
X = 900*100/1500
X = 60%.
Adriana and Belen are partners who share income in the ratio of 3:2 and have capital balances of $50,000 and $90,000 at the time they decide to terminate the partnership. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $90,000. How much cash should be distributed to Adriana
Answer:
$54,000
Explanation:
First, we add the ratios together to determine the total parts:
3+2= 5
Next, we divide the cash balance of $90,000 by the total parts:
$90,000/5 = $18,000
To find the amount of cash distributed to Adriana we multiply by her ratio:
5*18,000 = $54,000.
The table shows the PPF of an island community. Choose the best statement.
Possibility Fish (pounds) Berries (pounds)
A 0 and 40
B 1 and 36
C 2 and 30
D 3 and 22
E 4 and 12
F 5 and 0
a. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff.
b. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient.
c. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.
d. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.
Answer:
d. If this community produces 3 pounds of fish and 22 pounds of berries, production is efficient but to produce more fish it faces a tradeoff.
TRUE, IF THEY WANT TO PRODUCE MORE FISH, THEY WILL PRODUCE LESS BERRIES
Explanation:
a. Suppose that this community produces 3 pounds of fish and 20 pounds of berries. If it decides to gather more berries, it faces a tradeoff.
FALSE, THEY CAN GATHER 2 MORE POUNDS OF BERRIES WITHOUT AFFECTING FISH
b. When this community produces 4 pounds of fish and 12 pounds of berries it faces a tradeoff, but it is inefficient.
FALSE, THIS COMBINATION LIES ON THE PPF CURVE
c. Suppose that this community produces 5 pounds of fish and 0 pounds of berries. If it decides to gather some berries, it will get a free lunch.
FALSE, IT WILL HAVE TO LOSE SOME FISH
