Answers
Answer:
$1,200
Explanation:
Data provided
Number of training hours = 40
Per unit cost = $30 per hour
According to the given situation, the computation of training costs per employee is shown below:-
Total cost = Number of hours × Per unit cost
= 40 × $30
= $1,200
Therefore for computing the training costs per employee we simply applied the above formula.
Answer:
$1200
Explanation:
The training cost per hour is $30 and if we see below in the Human Resources Summary, we can see that Digby Training Hours are 40 Hours.
This implies that:
Total Training Cost = 40 Hours * $30 per hour = $1200
Related Questions
On December 31, 2016, when its Allowance for Doubtful Accounts had a debit balance of $1,432, Sunland Company estimates that 9% of its accounts receivable balance of $105,900 will become uncollectible and records the necessary adjustment to Allowance for Doubtful Accounts. On May 11, 2017, Sunland Company determined that B. Jared’s account was uncollectible and wrote off $1,091. On June 12, 2017, Jared paid the amount previously written off.Required:Prepare the journal entries on December 31, 2016, May 11, 2017, and June 12, 2017.
Answers
Answer: Please see explanation column for answers
Explanation:
1) To record bad debts expense
Date Account Debit Credit
Dec 31, 2016 Bad Debt Expense $10,963
Allowance for doubtful account $10,963
Calculation ;
Bad debts expense
9% x $105,900 = $9,531
Adjustment= $9,531 + debit balance of $1,432=$10,963
2) To write off uncollectible accounts receivables
Date Account Debit Credit
May 11, 2017 Allowance for doubtful account $1,091.
Accounts receivable--- B. Jared $1,091.
3) To reinstate accounts accounts previously written off
Date Account Debit Credit
June 12, 2017 Accounts receivable--- B. Jared $1,091.
Allowance for doubtful account $1,091.
3b)to collect cash from receivables
Date Account Debit Credit
June 12, 2017 Cash $1,091.
Accounts receivable--- B. Jared $1,091.
Statement of retained earnings. Use the data from the following financial statements in the popup window,
LOADING...
Partial Income Statement Year Ending 2014
Sales revenue
$350,200
Cost of goods sold
$141,800
Fixed costs
$42,900
Selling, general, and administrative expenses
$28,000
Depreciation
$46,200
Partial Balance Sheet 12/31/2013
ASSETS
LIABILITIES
Cash
$16,000
Notes payable
$14,000
Accounts receivable
$27,800
Accounts payable
$19,100
Inventories
$48,000
Long-term debt
$189,900
Fixed assets
$368,000
OWNERS' EQUITY
Accumulated depreciation (-)
$140,200
Retained earnings
Intangible assets
$82,000
Common stock
$131,900
Partial Balance Sheet 12/31/2014
ASSETS
LIABILITIES
Cash
$26,200
Notes payable
$11,900
Accounts receivable
$18,800
Accounts payable
$24,100
Inventories
$53,200
Long-term debt
$161,800
Fixed assets
$447,800
OWNERS' EQUITY
Accumulated depreciation (-)
Retained earnings
Intangible assets
$82,200
Common stock
$181,900
. The company paid interest expense of
$ 18 comma 700$18,700
for 2014 and had an overall tax rate of
40 %40%
for 2014. Complete the statement of retained earnings for2014, and determine the dividends paid last year.
The distributed earnings is
$nothing.
(Round to the nearest dollar.)
Complete the statement of retained earnings: (Round to the nearest dollar.)
Statement of Retained Earnings
Year Ending December 31, 2014
Beginning balance
$
Add net income
$
Subtract dividends
$
Ending balance
$
Answers
add net income: $467,987
subtract dividend: $110,109
ending balance: ^^^^^^^
$110,109 is your answer
On July 31, the company’s Cash account has a $25,274 debit balance, but its July bank statement shows a $26,612 cash balance. 1. Prepare the bank reconciliation for this company as of July 31.
Answers
Answer:
A lot of information was missing, so I looked for a similar question but couldn't find one with the same exact numbers, but I believe the following question should be very similar and you can use it as an example:
a.On July 31, the company’s Cash account has a $24,756 debit balance, but its July bank statement shows a $26,449 cash balance.
b.Check No. 3031 for $1,270 and Check No. 3040 for $627 were outstanding on the June 30 bank reconciliation. Check No. 3040 is listed with the July canceled checks, but Check No. 3031 is not. Also, Check No. 3065 for $411 and Check No. 3069 for $2,038, both written in July, are not among the canceled checks on the July 31 statement.
c.In comparing the canceled checks on the bank statement with the entries in the accounting records, it is found that Check No. 3056 for July rent was correctly written and drawn for $1,240 but was erroneously entered in the accounting records as $1,230.
d.A credit memorandum enclosed with the July bank statement indicates the bank collected $9,000 cash on a non-interest-bearing note for Branch, deducted a $45 collection fee, and credited the remainder to its account. Branch had not recorded this event before receiving the statement.
e. A debit memorandum for $805 lists a $795 NSF check plus a $10 NSF charge. The check had been received from a customer, Evan Shaw. Branch has not yet recorded this check as NSF.
f.Enclosed with the July statement is a $14 debit memorandum for bank services. It has not yet been recorded because no previous notification had been received.
g.Branch’s July 31 daily cash receipts of $10,152 were placed in the bank’s night depository on that date but do not appear on the July 31 bank statement.
Bank account reconciliation:
Bank account balance July 31, 202x, $26,449
+ deposits in transit $10,152
- outstanding checks ($3,719)
Reconciled bank account $32,882
Cash account reconciliation:
Cash account balance July 31, 202x, $24,756
+ Note collected by bank (net of fees) $8,955
- Bank fees ($14)
- NSF check + bank fees ($805)
- Error in recording check 3056 ($10)
Reconciled cash account $32,882
According to McClelland, a high need for ____ is associated with successful attainment of top levels in the organizational hierarchy.
a. power
b. achievement
c. affiliation
d. success
e. expertise
Answers
Answer:
power
Explanation:
Based on McClelland's Organizational Hierarchy, the top level is associated with a high need for power. Individuals pursuing this level need to enjoy status recognition, winning arguments, competition, and influencing others since their main motivation or need is to amass as much power as possible, and for this to happen and for them to become powerful/winner someone else must lose.
Stephen Battista argues that public relations should help Under Armour convince customers that the company has a new kind of sports apparel. One way that public relations differs from other kinds of marketing communications is that it substitutes the term ________ for target market. Multiple Choice target audience consumer referent group public market segment
Answers
Answer:
The correct answer is the option: Public.
Explanation:
To begin with, the term of "Public Relations" refers to the instrument that the marketing managers have in order to establish better relationships with agents that are outside the company with the primary focus of increasing those relations that will eventually increase the company's public image. Moreover, one the variables that changes when the company decides to use this type of strategy is the fact that the target audience or market changes to be the public in general and that is why that the company forgets about their customers and focus on the public as a whole.
Drew and Tammy decide to start a new cake-decorating business. They each contribute $10,000 to get the business off the ground. This money is considered
Answers
Answer: a down payment or deposit
Explanation:
Drew and Tammy decide to start a new cake-decorating business. They each contribute $10,000 to get the business off the ground. This money is considered as equity capital.
What do you mean by Business?The exchange, acquisition, sale, or creation of goods and services with the aim of making money and meeting client demands constitutes business. Businesses can be for-profit or nonprofit entities that work to further a social cause or make a profit, respectively.
Equity in the context of finance refers to ownership of assets with potential obligations such as debts. For accounting reasons, equity is calculated by deducting liabilities from the value of the assets. The difference of $14,000, for instance, is equity if a person owns a car worth $24,000 and owes $10,000 on the loan used to purchase the vehicle.
A single asset, like a car or house, or an entire company may be covered by equity. A company that needs to launch or grow its operations can sell equity to raise money that doesn't need to be repaid on a predetermined timeline.
Therefore, The money will be considered as Equity capital.
Learn more about Business, here;
https://brainly.com/question/15826604
#SPJ5
7.. Getaway Travel Company reported net income for 2021 in the amount of $50,000. During 2021, Getaway declared and paid $2,000 in cash dividends on its nonconvertible preferred stock. Getaway also paid $10,000 cash dividends on its common stock. Getaway had 40,000 common shares outstanding from January 1 until 10,000 new shares were sold for cash on July 1, 2021. A 2-for-1 stock split was granted on July 5, 2021. What is the 2021 basic earnings per share
Answers
Answer:Earnings per share fOR 2021= 0.53
Explanation:
Earnings per share =Total earnings available to shareholders(Net income - preferred dividends )/Weighted Average Outstanding shares
Net income = $50,000
preferred dividend= $2,000
Total earnings available to common shareholders = $50,000 - $2000= $48,000
using a 2-1 stock spilt , outstanding shares= 40,000 x 2 + 10,000 x 6/12(jan- 1st july ) x 2 = 80,000 + 10,000 = $90,000
Earnings per share = $48,000/ $90,000 =0.53
Gilley Co. had 200,000 shares of common stock, 20,000 shares of convertible preferred stock, and $1,000,000 of 10% convertible bonds outstanding during 2015. The preferred stock is convertible into 40,000 shares of common stock. During 2015, Gilley paid dividends of $.90 per share on the common stock and $3.00 per share on the preferred stock. Each $1,000 bond is convertible into 45 shares of common stock. The net income for 2015 was $600,000 and the income tax rate was 30%.
Diluted earnings per share for 2015 is:_____________ (rounded to the nearest penny)
Answers
Answer:
Gilley Co.
Diluted earnings per share for 2015 is:_____________ $1.68
Explanation:
a) Data and Calculations:
Number of common stock shares = 200,000
Number of convertible preferred = 40,000
Number of convertible bonds = 45,000 ($1,000,000/$1,000 x 45)
Total shares = 285,000
Earnings = $600,000
Income tax (180,000)
Net Income $420,000
Plus preferred dividend = $60,000
Adjusted net income = $480,000
EPS = $480,000/285,000
= $1.68
b) After deducting income tax expense to arrive at the income after tax, then add the dividends of preferred stockholders before arriving at the adjusted net income for computing the earnings per share.
Suppose taxi fares from Logan Airport to downtown Boston is known to be normally distributed and a sample of seven taxi fares produces a mean fare of $22.31 and a 95% confidence interval of [$20.5051, $24.2091]. Which of the following statements is a valid explanation of the confidence interval.
A) 95% of all taxi fares are between $20.51 and $24.21.
B) We are 95% confident that a randomly selected taxi fare will be between $20.51 and $24.21.
C) The mean amount of a taxi fare is $22.31, 95% of the time.
D) We are 95% confident that the average taxi fare between Logan Airport and downtown Boston will fall between $20.51 and $24.21.
Answers
Answer: D) We are 95% confident that the average taxi fare between Logan Airport and downtown Boston will fall between $20.51 and $24.21.
Explanation:
The Confidence interval allows one to speculate between which values the average of a population will be. In a 95% confidence interval, this means that we are 95% certain that the average value of a variable will be between the higher and lower limits set by the interval.
The 95% confidence interval here has an upper limit of $24.2091 and a lower limit of $20.5051 for taxi fares from Logan Airport to downtown Boston. This means that with a 95% certainty, the taxi charge from Logan Airport to downtown Boston will be between these 2 charges so you can expect to pay an amount between them.
Suppose when the price of coffee beans goes from $1 to $1.20 per pound, production increases from 90 million pounds of coffee beans to 110 million pounds per year. Using the mid-point method, the percentage change in quantity supplied is: Multiple Choice 20 percent 18 percent 0.6 6.0
Answers
Answer: 20%
Explanation:
Using the midpoint formula, the denominator is an average of the beginning and ending figures;
= [tex]\frac{Q2 - Q1}{Q2 + Q1 /2 } * 100[/tex]
= [tex]\frac{110 - 90}{(110 + 90)/2} * 100[/tex]
= [tex]\frac{20}{100} * 100[/tex]
= 20%
E-tailers, such as Amazon and Expedia, that sell products and services directly to final buyers exclusively over the Internet are known as ________.
Answers
Answer:
E-tailers
Explanation:
E-tailers are also known as e-retailers. Where you can purchase things via the internet.
Glad I could help you!
12-8. Dealerships for Subaru and other automobile manufacturers keep records of the mileage of cars they sell and service. Mileage data are used to remind customers of when they need to schedule service appointments, but they are used for other purposes as well. What kinds of decisions does this piece of data support at the local level and at the corporate level
Answers
Answer:
The Dealerships for Sabaru and other automobile manufacturers keeps records of the mileage of cars they sell and service due to various reasons. At the local level, it afford them the opportunity to know the car brand with the highest mileage being used by their customers.
Also, the ability to know the brand of car with least requirement for servicing. On the other-hand, at the corporate level, the records afford them the opportunity to know the automobile manufacturers which they will keep on trading with under dealership due to feedback from their customers.
Explanation:
The decisions that this piece of data supports at the local level and at the corporate level include the car that requires the least servicing.
From the complete information, it should be noted that the dealerships for Sabaru and other automobile manufacturers keep records of the mileage of cars they sell and service.
This can be pivotal in order to know the car brand with the highest mileage being used by their customers. Also, it's important to know the brand of car with the least requirement for servicing. At the corporate level, it's vital to know the automobile manufacturers that they'll continue trading with.
Read related link on:
https://brainly.com/question/17143538
A company purchased $3,500 of merchandise on July 5 with terms 3/10, n/30. On July 7, it returned $700 worth of merchandise. On July 12, it paid the full amount due. Assuming the company uses a perpetual inventory system, and records purchases using the gross method, the correct journal entry to record the payment on July 12 is:
Answers
Answer and Explanation:
The Journal entry is shown below:-
Accounts payable Dr, $2,800 ($3,500 - $700)
To Merchandise inventory $84 ($2,800 × 0.03)
To Cash $2,716 ($2,800 × (1 - 0.03)
(being the payment is recorded)
Here we debited the accounts payable as it decreased the liabilities and we credited the merchandise inventory and cash as it also decline the assets
The budget philosophy that ignores budget outcomes and focuses on whatever is necessary to achieve economic goals and stabilize the economy is: g
Answers
Answer:
functional finance.
Explanation:
The budget philosophy of functional finance implies that the government should do all that is necessary in order to make the economy operate at full potential. The outcomes of whatever budget preparations are ignored in philosophy of functional finance. What is most paramount is to focus on whatever that would bring growth and stability to the economy.
In the philosophy of functional finance, what is most important about balancing the federal budget is its use to promote an economy so that it can operate at full potential.
Assuming a bottom-up process of budget development, which of the following should be initially responsible for developing sales estimates?
a. The budget committee.
b. The accounting department.
c. The sales department.
d. Top management.
e. The marketing department.
Answers
Answer: The Sales Department
Explanation:
In budgeting, a bottom-up approach simply means that each head of department in the organization create a budget that'll be sent upwards for approval.
Assuming a bottom-up process of budget development, the sales department should be initially responsible for developing sales estimate.
Companies whose stock is traded in a public market must report EPS in the notes of their financial statements. must report EPS on their income statement. must report EPS on their balance sheet. are not required to report EPS.
Answers
Answer:
The answer is B. must report EPS on their income statement
Explanation:
If a company's share is being traded publicly, its Earnings Per Share (EPS) must be shown on its income statement(Statement of profit or loss and other comprehensive income).
Earnings Per Share (EPS) is calculated as follows:
Earnings (profit after tax) ÷ total number of shares outstanding.
Note: EPS does not recognize/consider discontinue operations.
Do you think that customers are impressed with the effort that Gap has made to respond to the need to have more worker friendly suppliers? Explain your answer.
Answers
Answer:
Yes, I think that customers are very impressed with their customer service
Explanation:
I'm impressed.
As flextime, consulting, telecommuting, and downsizing make it more difficult for
people to donate blood at the workplace, Canadian Blood Services has launched a
CRM marketing campaign in Toronto to boost awareness and repeat donations.
Early in the campaign, it went to its listings of previous donors and pulled out
those with birthdays in February, March, and April. These donors were sent a
birthday card with the greeting, "On the anniversary of your life, would you
consider saving another's life?"
Refer to the scenario.
What technique did the organization use to analyze its donor information?
Answers
Answer:
The technique which the organization used in analyzing its donor is called Customer segmentation
Explanation:
Customer segmentation is the process of breaking large groups of customers into smaller, more homogeneous groups. This division are done specifically probably for marketing using attribute such as age, gender, interests and spending habits.
In the case of the CRM marketing campaign in Toronto, they inability to analyze all the data they had poses a challenge hence they reason why they segmented their customers according to their birthday. And customers are reached out according to those whose birthday falls nearby.
During the month of March, Blossom Company’s employees earned wages of $60,000. Withholdings related to these wages were $4,590 for Social Security (FICA), $7,031 for federal income tax, $2,906 for state income tax, and $375 for union dues. The company incurred no cost related to these earnings for federal unemployment tax but incurred $656 for state unemployment tax.
1. Prepare the necessary March 31 journal entry to record salaries and wages expense and salaries and wages payable. Assume that wages earned during March will be paid during April.
2. Prepare the entry to record the company’s payroll tax expense.
Answers
Answer:
1.
March 31,
DR Salaries and Wages Expense ....................$60,000
CR FICA taxes payable ........................................................$4,590
CR Federal income tax payable .........................................$7,031
CR State income tax payable ..............................................$2,906
CR Union dues payable .......................................................$375
CR Salaries and Wages payable ..........................................$45,098
Working
Salaries and Wages payable = 60,000 - 4,590 - 7,031 - 2,906 - 375
= $45,098
2.
DR Payroll taxes payable ...................................$5,246
FICA taxes payable .................................................................$4,590
State unemployment taxes payable ....................................$656
Working
Payroll taxes payable = 4,590 + 656
= $5,246
The federal gas tax has been stuck at 18.4cents¢ a gallon since 1993. Today, Americans are driving fewer miles, and vehicles have become more fuel-efficient. Less gas consumption means less gas-tax revenue to repair the nation's roads. Source: Bloomberg News, July 17, 2014 Would a tax per mile driven by more efficient or less efficient than a tax per gallon of gasoline? Which tax would be more regressive? Explain your answers.
Answers
Answer:
1. A Tax per mile driven would be more efficient than a tax per gallon of gasoline.
2. A tax per gallon of gasoline is more regressive. The tax is based on a fixed dollar per gallon since 1993. instead of being based on a percentage per the price of gasoline per gallon. With the current rate, the price of gasoline per gallon may even be less than the tax. One can then ask, "what is the purpose of the tax?" Is the tax a road tax or a per gallon use tax?
Explanation:
When the federal gas tax remains at 18.4 cents per gallon for a very long period, the tax can be described as regressive as it does not take into consideration the trend that Americans are driving fewer miles, and vehicles have become more fuel-efficient. This means that the gas tax is not fit for purpose. If its purpose is to generate revenue for road repairs, then instead of a gallon tax, government should institute a road use tax.
Annabelle owns an Italian ice shop. If she decided to expand the size of her shop so that she could sell more Italian ices, how would she know if she is experiencing economies of scale in the long run
Answers
Answer:
her long-run average cost of selling each Italian ice decreases.
Explanation:
Economies of scale is when a firm produces more units of goods or services on a much larger scale, with very little input cost(average cost). Invariably, this implies that the production units of a firm increases as it grows while having a decreased input costs.
A firm will experience economies of scale in the long run if it's average total costs(cost per unit required for production which remains the same irrespective of output) decreases as it increases its scale of production.
Which of the following is most correct according to the CAPM: Group of answer choices A stock’s risk premium depends on its beta. Company specific risk is the most relevant risk. A stock’s risk premium depends on its firm-specific risk. There is a linear and positive relationship between a stock’s total risk and its required return.
Answers
Answer: A stock’s risk premium depends on its beta
Explanation:
The Capital Asset Pricing Model (CAPM) helps in knowing the relationship that exists between the systematic risk and return whihc an individual or a firm expects for an assets, such as stocks.
It should be noted that the beta influences the return. Therefore, stock’s risk premium depends on its beta.
Suppose the real risk-free rate is 3.50%,the average future inflation rate is 2.50%, a maturity premium of 0.20% per year to maturity applies, i.e., MRP = 0.20%(t), where t is the years to maturity. Suppose also that a liquidity premium of 0.50% and a default risk premium of 0.80% applies to A-rated corporate bonds.
Required:
What is the difference in the yields on a 5-year A-rated corporate bond and on a 10-year Treasury bond?
Answers
Answer:
the 5 year A-rated corporate bond yields 0.3% more than the 10-year Treasury bond
Explanation:
the yield of a 10 year treasury bond = real risk free rate + average future inflation rate + (maturity premium x number of years) = 3.5% + 2.5% + (20% x 10 years) = 8%
the yield of a 5 year A-rated corporate bond = real risk free rate + average future inflation rate + liquidity premium + default risk premium + (maturity premium x number of years) = 3.5% + 2.5% + 0.5% + 0.8% + (20% x 5 years) = 8.3%
difference in yields = 8.3% - 8% = 0.3%
Piercy, LLC, has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 −$ 68,000 −$ 68,000 1 44,000 30,200 2 38,000 34,200 3 25,000 40,000 4 15,600 24,200 a-1. What is the IRR for each of these projects?
Answers
Answer:
IRR for A= 35.33%
IRR for B = 31.88%
Explanation:
Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested
IRR can be calculated using a finacial calculator :
IRR for cash flow A
Cash flow in year 0 = −$ 68,000
Cash flow in year 1 = $44,000
Cash flow in year 2 = $38,000
Cash flow in year 3 = $25,000
Cash flow in year 4 = $15,600
IRR = 35.33%
IRR for cash flow A
Cash flow in year 0 = −$ 68,000
Cash flow in year 1 = $30,200
Cash flow in year 2 = 34,200
Cash flow in year 3 = $40,000
Cash flow in year 4 = $24,200
IRR = 31.88%
To find the IRR using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button
The Raven Co. has just gone public. Under a firm commitment agreement, Raven received $15.90 for each of the 25 million shares sold. The initial offering price was $17.50 per share, and the stock rose to $19.40 per share in the first few minutes of trading. Raven paid $860,000 in direct legal and other costs and $330,000 in indirect costs.What was the flotation cost as a percentage of funds raised?
Answers
Answer:
22.38%
Explanation:
Raven corporation has just gone public
They received $15.90 for each 25 million shares that was sold
The first step is to calculate the net amount raised
Net amount that was raised= 15.90×25,000,000 = 397,500,000
397,500,000-860,000-330,000
= 396,310,000
Underwriter spread= 17.50-15.90
= 1.6 per shares
Total underwriter spread= per share spread× number of shares that were offered
= 1.6×25,000,000
= 40,000,000
Total direct costs= 40,000,000+860,000
=40,860,000
Indirect flotation cost= indirect cost+price appreciation
= 330,000+(19.40-17.50)×25,000,000
= 330,000+1.9×25,000,000
=330,000+47,500,000
= 47,830,000
Total flotation cost= 47,830,000+40,860,000
= 88,690,000
Therefore, the flotation cost as a percentage of funds raised can be calculated as follows
= 88,690,000/396,310,000 × 100
= 0.2238×100
= 22.38%
Hence the flotation costs as a percentage of funds raised is 22.38%
During July, Laesch Company, which uses a perpetual inventory system, sold 1,430 units from its LIFO-based inventory, which had originally cost $19 per unit. The replacement cost is expected to be $28 per unit.
Required: Respond to the following two independent scenarios as requested
Case 1: In July, the company is planning to reduce its inventory and expects to replace only 980 of these units by December 31, the end of its fiscal year
Prepare the entry in July to record the sale of the 1,390 units (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers
Answer:
Laesch Company
Journal entries:
Sale of 1,430 units
Debit Cash or Accounts Receivable $40,040
Credit Sales Revenue $40,040
To record the sale of 1,430 units of inventory at $28.
Debit Cost of goods sold $27,170
Credit Inventory $27,170
To record the cost of the goods sold at $19.
Sale of 1,390 units
Debit Cash or Accounts Receivable $38,920
Credit Sales Revenue $38,920
To record the sale of 1,390 units of inventory at $28.
Debit Cost of goods sold $26,410
Credit Inventory $26,410
To record the cost of the goods sold at $19.
Explanation:
Laesch Company can use Journal entries to record its business transactions as they occur on a daily basis. Journal entries show the accounts involved in any transaction and the one to be debited or credited. From the journal, postings are made to the general ledger into individual accounts.
What economic benefit has the debt reschedule for developing countries?
Answers
Answer:
The main economic benefit that debt rescheduling has for developing countries is that it changes principal and interest payments to more favorable conditions.
This means that after the reschedule, developing countries will have to put less resources into the payments of public debt, which allows them to have more resources available for other public investments like education, healthcare, and infraestructure.
A company incurs $4,050,000 of overhead each year in three departments: Ordering and Receiving, Mixing, and Testing. The company prepares 2,000 purchase orders, works 50,000 mixing hours, and performs 1,500 tests per year in producing 200,000 drums of Goo and 600,000 drums of Slime. The following data are available: Department Expected use of Driver Cost Ordering and Receiving 2,000 $1,200,000 Mixing 50,000 1,500,000 Testing 1,500 1,350,000 Production information for Goo is as follows: Department Expected use of Driver Ordering and Receiving 400 Mixing 20,000 Testing 500 Compute the amount of overhead assigned to Goo. $2,760,000.
Answers
Answer:
$1,290,000
Explanation:
Goo:
Ordering and Receiving = 400 / 2,000 = 20%
Mixing = 20,000 / 50,000 = 40%
Testing = 500 / 1,500 = 33.33%
allocated overhead costs:
Ordering and Receiving = 20% x $1,200,000 = $240,000
Mixing = 40% x $1,500,000 = $600,000
Testing = 33.33% x $1,350,000 = $450,000
total allocated overhead costs = $1,290,000
Journalize the following, assuming a 360-day year is used for interest calculations: Apr. 30 Issued a $108,000, 30-day, 6% note dated April 30 to Misner Co. on account. May 30 Paid Misner Co. the amount owed on the note dated April 30. If an amount box does not require an entry, leave it blank. When required, round your answers to the nearest dollar.
Answers
Answer and Explanation:
The journal entries are shown below:
a. Account payable Dr $108,000
To note payable $108,000
(Being the issuance of the note is recorded)
b. Note payable Dr $108,000
Interest expense Dr $540 ($108,000 × 30 days ÷ 360 days × 6%)
To cash $108,540
(being the note payable and the interest expense is recorded)
LLP Company had the following stockholders’ equity as ofJanuary 1, 2017.
Common stock, $1 par value, 120,000 shares issued$120,000
Paid-in capital in excess of par—common stock833,000
Retained earnings408,000
Total stockholders’ equity$1,361,000
During 2017, the following transactions occurred.
Feb. 16LLP repurchased 5,000 shares of treasury stock at a price of $15 per share.
Mar. 8200 shares of treasury stock repurchased above were reissued at $16 per share.
Apr. 11800 shares of treasury stock repurchased above were reissued at $12 per share.
May. 82,000 shares of treasury stock repurchased above were reissued at $18 per share
Instructions:
a. Prepare the journal entries to record the treasury stock transactions in 2017, assuming Clemson uses the cost method.
b. Prepare the stockholders’ equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $130,000.
Answers
Complete Question:
Clemenson LLP Company had the following stockholders’ equity as of January 1, 2017.
Common stock, $1 par value, 120,000 shares issued$120,000
Paid-in capital in excess of par—common stock 833,000
Retained earnings 408,000
Total stockholders’ equity$1,361,000
During 2017, the following transactions occurred.
Feb. 16: LLP repurchased 5,000 shares of treasury stock at a price of $15 per share.
Mar. 8: 2,000 shares of treasury stock repurchased above were reissued at $16 per share.
Apr. 11: 800 shares of treasury stock repurchased above were reissued at $12 per share.
May. 8: 2,000 shares of treasury stock repurchased above were reissued at $18 per share
Instructions:
a. Prepare the journal entries to record the treasury stock transactions in 2017, assuming Clemson uses the cost method.
b. Prepare the stockholders’ equity section as of April 30, 2017. Net income for the first 4 months of 2017 was $130,000.
Answer:
Clemson LLP Company
a. Journal Entries
Feb. 16:
Debit Treasury Stock account $75,000
Credit Cash Account $75,000
To record the repurchase of 5,000 shares of treasury stock at a price of $15 per share.
March 8:
Debit Cash Account $32,000
Credit Treasury Stock account $32,000
To record the resale of 2,000 shares of treasury stock at $16 per share.
April 11:
Debit Cash Account $9,600
Credit Treasury Stock account $9,600
To record the resale of 800 shares of treasury stock at $12 per share.
May 8:
Debit Cash Account $36,000
Credit Treasury Stock account $36,000
To record the resale of 2,000 shares of treasury stock at $18 per share.
b. Stockholders' Equity Section as of April 30, 2017:
Common stock, $1 par value, 120,000 shares issued $120,000
Treasury Stock, 200 shares 2,600
Paid-in capital in excess of par—common stock 833,000
Retained earnings 538,000
Total stockholders’ equity $1,493,600
Explanation:
a) Data and Calculations:
Stockholders’ equity as of January 1, 2017:
Common stock, $1 par value, 120,000 shares issued $120,000
Paid-in capital in excess of par—common stock 833,000
Retained earnings 408,000
Total stockholders’ equity $1,361,000
b) Retained Earnings:
Jan. 1, 2017 balance $408,000
Net Income $130,000
April 30, 2017 bal. $538,000
c) Since Clemenson accounts for the Treasury Stock transactions using the cost method, it means that all treasury transactions are recorded directly in the Treasury Stock account based on their cost and not the par value. This method of using the cost is one of the two methods for accounting for treasury stock transactions. The other method, which Clemenson can use is the par value method. Under this second method, Clemenson will record the above and below par value differences in the Paid-in Capital in excess of par account instead of the Treasury Stock account. While the treasury stock account is a contra account to the Common Stock account, in Clemenson's case, the Treasury Stock balance is not a debit but a credit balance.
