Answer: credit to Accounts Receivable
Explanation:
Accounts Receivable is the payment that a particular company will get from the customers who have bought the company's product or services on credit.
Under the allowance method, when writing off an account receivable, the journal entry to record the write-off includes a credit to account receivables.
Suppose you invest $20,000 by purchasing 200 shares of Abbott Labs (ABT) at $50 per share, 200 shares of Lowes (LOW) at $30 per share, and 100 shares of Ball Corporation (BLL) at $40 per share. Suppose over the next year Ball has a return of %, Lowes has a return of %, and Abbott Labs has a return of . The return on your portfolio over the year is:
Answer:
3.8%
Explanation:
There are some important parts missing:
Suppose over the next year Ball has a return of 12.5%, Lowes has a return of 21%, and Abbott Labs has a return of -10%.
We must first determine the weight of each stock in the portfolio:
ABT = ($50 x 200) / $20,000 = 50%LOW = ($30 x 200) / $20,000 = 30%BLL = ($40 x 100) / $20,000 = 20%the expected return of the portfolio = (ABT x return) + (LOW x return) + (BLL x return) = (50% x -0.1) + (30% x 0.21) + (20% x .125) = -5% + 6.3% + 2.5% = 3.8%
2. The world has now become a “global village” in many respects. a) Explain any 5 factors working to make the world “a global village” for businesses. b) Discuss 4 major reasons why businesses go global.
Answer:
the watch has been totally fed tractors working to make a words a Glover villa for measures reserve between two globin respect as a global wind I have been by practice and a business discuss and white business as a work of the word for
The market for hot dogs on the streets of New York City can be considered close to a perfectly competitive market. Because there are so many individuals buying and selling hot dogs:
Question:
The market for hot dogs on the streets of New York City can be considered close to a perfectly competitive market. Because there are so many individuals buying and selling hot dogs:
A) there is a shortage of hot dogs
B) there is a surplus of hot dogs
C) market forces set the price in the market
D) firms are able to make large economic profits
E) firms cannot make positive accounting profits
Answer:
The correct answer is C.
Explanation:
Perfect competition is a market/ industry situation where there are numerous companies producing similar or perfect substitute products. Also, in the same market, none of the players is large enough to single-handedly influence the market especially with respect to price.
Cheers!
"A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to:"
Answer: sell covered calls
Explanation:
A retired customer that has a portfolio of blue chip stocks is looking to supplement his retirement income. An appropriate recommendation would be to sell covered calls.
It should be noted that a covered call is a financial transaction that takes place when a call option is sold by an investor even though the investor still owns part of the security based on what's sold.
Part-time workers likely result in A. inaccurately high estimates of the labor force. B. inaccurately low estimates of the labor force. C. a disincentive for the unemployed to seek employment. D. lower incomes and fewer jobs.
Answer:
Correct answer:
A. inaccurately high estimates of the labor force.
Explanation:
Part-time work is the type of work where an individual has a flexible work plan is a given company unlike the traditional full-time work. Doing such work create the impression that, there is high labour force among the various industries and sectors. For example, someone might be working in two different firms under part-time basis same day which create an impression of two different individuals.
A small distribution organization uses a payroll company to provide employee compensation services and keep timesheet records and employee attendance history. This situation is an example of
Complete Question:
A small distribution organization uses a payroll company to provide employee compensation services and keep timesheet records and employee attendance history. This situation is an example of?
Group of answer choices.
A. Offshoring
B. Centralized work surveillance.
C. Outsourcing.
D. Telecommuting.
Answer:
Outsourcing.
Explanation:
When a small distribution organization uses a payroll company to provide employee compensation services and keep timesheet records and employee attendance history. This situation is an example of outsourcing.
Outsourcing can be defined as a contractual agreement in which a company contracts another firm (third-party) to be responsible for providing certain job functions, tasks or services rather than use employees or departments within the company.
In this scenario, the outsourcing firm or company is saddled with the responsibility of providing employees compensation services, keep timesheet records, and manage the attendance history of employees working at the outsourced distribution organization.
Strategic management is about formulating strategies that align an organizations internal capabilities with external opportunities while avoiding or minimizing threats. How effective has Mark Parker been as a strategic so far
Answer:
Mark Parker has been very effective as a strategist for the following reasons:
Explanation:
He has been able to keep Nike's brand equity. His policies on HR has generated an effect which translated to increased motivation for his employees to commit to the attainment of the company's objectivesA strategist must be able to make plans and execute them. Nike's strategy is a customer-centric one. Mark was able to, regardless of the economy, ensure that Nike's products were consumer-centric and that the business units in charge of each aspect of Nike's operations were able to deliver their best.
Cheers!
What is the expected return if a firm has a payout ratio of 0.4, a return on equity of 25%, and a dividend yield of 15%
Answer:
The expected return on stock is 30%
Explanation:
Growth rate = Return on Equity * Retention ratio
Growth rate = Return on Equity * (1- Payout ratio)
Growth rate = 25% * (1 - 0.40)
Growth rate = 0.25 * 0.60
Growth rate = 0.15
Growth rate = 15%
Hence, Expected return = Dividend return + Growth rate
Expected return = 15% + 15%
Expected return = 30%
Therefore, the expected return on stock is 30%
Keith, an employee of Sunbeam, Inc., has gross salary for May of $15,000. The entire amount is under the OASDI limit of $118,500 and thus subject to FICA. He is also subject to federal income tax at a rate of 20%. Which of the following is a part of the journal entry to record the disbursement of his net pay? (Assume a FICAOASDI Tax of 6.2% and FICAMedicare Tax of 1.45%.) (Round the final answer to the nearest dollar.)
Answer:
there are no options listed, but the journal entry to record Keith's salary should be:
May 31, wages expense
Dr Wages expense 15,000
Dr FICA taxes expense 1,147.50
Dr FUTA taxes expense 900
Cr Federal income taxes withheld payable 3,000
Cr FICA OASDI taxes withheld payable 930
Cr FICA Medicare taxes withheld payable 217.50
Cr FICA OASDI taxes payable 930
Cr FICA Medicare taxes payable 217.50
Cr Wages payable 10,852.50
I didn't include SUTA taxes or any other discount (e.g. health insurance, IRA contributions, union contributions, etc.) because sometimes they do not exist, but the previous ones always exist.
In its third year, a project is expected to produce earnings before interest and taxes of $671,551 and depreciation expense of $125,193. If the company’s tax rate is 34%, what is the project’s expected operating cash flow?
Answer:
Operating cash flow= $568,416.66
Explanation:
Giving the following information:
Earnings before interest and taxes= $671,551
Depreciation expense= $125,193.
Tax rate= 34%
To calculate the operating cash flow, we need to use the following structure:
EBIT= 671,551
Tax= (671,551*0.34)= (228,327.34)
Depreciation= 125,193
Operating cash flow= 568,416.66
A decline in the domestic real interest rate would cause a ________ in net exports and a ________ in the exchange rate.
Answer: fall; rise
Explanation:
The real interest rate is the rate of interest that is received by an investor, lender or after inflation has been taken into consideration.
The real interest rate is when the inflation rate is deducted from the nominal interest rate. A reduction in the domestic real interest rate would cause a fall in net exports and a rise in the exchange rate.
World trade has grown substantially in the last 60 years. For example, while world output grew at an annual rate of 3.8% per year between 1950 and 2003, world exports grew at 10.8% per year over the same time period.
Which of the following help o explain the increase in international trade and finance since the 1950's?
a. International trade agreements such as the North American Free Trade Agreement (NAFTA)
b. An increasing number of affordable international flights
c. Changes in property rights
d. The widespread use of the Internet to conduct business.
Answer:
The correct answer is the option A: International trade agreements such as the North American Free Trade Agreement (NAFTA).
Explanation:
To begin with, the name of "North American Free Trade Agreement" or NAFTA, refers to the comercial agreement between the three nations of the countries of the norht of America that established that there is a bloc of free trade among Canada, Mexico and the United States that will benefit the three parties whose bloc have formed one of the largest trade blocs in the world by gross domestic product. Moreover, the agreement came into force in 1994 and since then the main purpose of it is to encourage the increase and development of international trade.
The ending finished goods inventory for each month equals 50% of next month's sales in units . How many units must be produced in February?
Answer: 15,751.5 units
Explanation:
Units produced in February are calculated as;
Units Produced = Ending Finished goods - Beginning Finished goods + Budgeted Sales
Ending finished goods inventory for each month equals 50% of next month's sales in units.
Ending finished goods for February
= 50% * 15,581
= 7,790.5 units
Ending finished goods for January is beginning for February
= 50% * 15,922
= 7,961
Units Produced = Ending Finished goods - Beginning Finished goods + Budgeted Sales
= 7,790.5 - 7,961 + 15,922
= 15,751.5 units
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company’s products, a football helmet for the North American market, requires a special plastic. During the quarter ending June 30, the company manufactured 3,400 helmets, using 2,346 kilograms of plastic. The plastic cost the company $15,484. According to the standard cost card, each helmet should require 0.64 kilograms of plastic, at a cost of $7.00 per kilogram. Required: 1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets? 2. What is the standard materials cost allowed (SQ × SP) to make 3,400 helmets? 3. What is the materials spending variance? 4. What is the materials price variance and the materials quantity variance?
Answer:
1. What is the standard quantity of kilograms of plastic (SQ) that is allowed to make 3,400 helmets?
3,400 helmets x 064 kgs per helmet = 2,176 kgs
2. What is the standard materials cost allowed (SQ × SP) to make 3,400 helmets?
2,176 kgs x $7 per kg = $15,232
3. What is the materials spending variance?
$15,484 - $15,232 = $252 unfavorable (because total expenditures on materials were higher than budgeted)
4. What is the materials price variance and the materials quantity variance?
materials price variance = [($15,484/2,346) - $7] x 2,346 = -$938 favorable (the purchase price per kg was lower than budgeted)
materials quantity variance = (2,346 - 2,176) x $7 = $1,190 unfavorable
The following data are accumulated by Lone Peak Inc. in evaluating two competing capital investment proposals: 3D Printer Truck Amount of investment $32,000 $40,000 Useful life 4 years 9 years Estimated residual value 0 0 Estimated total income over the useful life $3,520 $14,400 Determine the expected average rate of return for each proposal. If required, round your answers to one decimal place. 3D Printer 55 % Truck 8 %
Answer:
3D Printer 55 % Truck 8 %
Explanation:
The formula to compute the average rate of return for each proposal is shown below:
The average rate of return = Average net income ÷ Average investment
Particulars 3D printer Truck
Average net income (a) $880 $1,600
($3,520 ÷ 4 years) ($14,400 ÷ 9 years)
Average investment (b) $16,000 $20,000
($32,000 ÷ 2) ($40,000 ÷ 2)
Average rate of return (a ÷ b) 55% 8%
A customer buys 100 shares of ABC at $17 as the initial transaction in a new margin account. The customer must deposit:______
Answer:
$1,700
Explanation:
Although the minimum equity to open a long margin account is $2,000. However, this does not apply if the securities in the account are paid fully.
It will amount to potential loss if a customer is asked to deposit more than 100% when buying. Since the customer wants to buy 1,700 of stock, it means that 100% or $1,700 (100 shares × $17) must be deposited.
The following financial information was summarized from the accounting records of Train Corporation for the current year ended December 31: Rails Division Locomotive Division Corporate Total Cost of goods sold $45,500 $30,500 Direct operating expenses 27,600 23,000 Sales 92,300 67,600 Interest expense $2,100 General overhead 18,900 Income tax 4,000 The income from operations for the Locomotive Division is a.$44,600 b.$67,600 c.$14,100 d.$37,100
Answer:
$14,100
Explanation:
To find the answer, we use the following formula:
Income from operations = Sales - Cost of Goods Sold - Direct Operating Expenses - General Overhead
Income from operations = $67,600 - 30,500 - 23,000
= $14,100
J. Ross and Sons Inc. has a target capital structure that calls for 40 percent debt, 10 percent preferred stock, and 50 percent common equity. Ross' common stock currently sells for $40 per share. The firm recently paid a dividend of $2 per share on its common stock, and investors expect the dividend to grow indefinitely at a constant rate of 10 percent per year. J. Ross's cost of retained earnings is closest to:
Answer:
J. Ross's cost of retained earnings is 18.33%
Explanation:
Cost of retained earnings is also call Cost of Equity
Cost of retained earnings = (Dividend per share for next year / Current market value of stock) + Growth rate of dividend
Cost of retained earnings = 2 / 40(1-40%) + 10%
Cost of retained earnings = 2 / 24 + 10%
Cost of retained earnings = 0.08333 + 0.1
Cost of retained earnings = 0.183333
Cost of retained earnings = 18.3333%
Cost of retained earnings = 18.33%
Rank the following investments from lowest to highest, for overall historical returns experienced by investors over long periods of time:
a. Treasury Bills
b. AAA Rated Corporate Bonds
c. Common Stocks
Answer:
Treasury BillsAAA Rated Corporate BondsCommon StocksExplanation:
Treasury Bills are considered risk-less investments. As a result the interest rate will not be adjusted for risk and will be relatively low compared to other securities. It will give the lowest return overtime here.
AAA Rated Corporate Bonds are the highest rated Corporate bonds there are. Even still, they will pay an interest rate that has a little risk premium in it which will make its returns overtime higher than a T-bill.
Common Stocks will provide the highest rate of return overtime on average simply because as well as the dividend payments that are paid to holders, the stock also has a chance of rising in value overtime which will give the holder a Capital gain as well. Something that the other 2 investments cannot give.
The net income reported on the income statement for the current year was $121,900. Depreciation recorded on store equipment for the year amounted to $20,100. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows: End of Year Beginning of Year Cash $48,030 $44,190 Accounts receivable (net) 34,440 32,660 Merchandise inventory 47,020 49,710 Prepaid expenses 5,280 4,200 Accounts payable (merchandise creditors) 45,000 41,800 Wages payable 24,590 27,310 a. Prepare the Cash Flows from Operating Activities section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments. Statement of Cash Flows (partial) Cash flows from operating activities: $ Adjustments to reconcile net income to net cash flow from operating activities: Changes in current operating assets and liabilities: Net cash flow from operating activities $ b. Cash flows from operating activities differs from net income because it does not use the of accounting. For example revenues are recorded on the income statement when .
Answer:
See answers below.
Explanation:
In order to get net cash flow through indirect method, we will have to make adjustment to the net income; hence we get the increase or decrease of different accounts with the data balance.
a) End beginning cash $48,030 $44,190
Increase in cash $3,840
Accounts receivable(net) $34,440 $32,660
Increase in accounts receivable $1,780
Merchandise Inventory $47,020 $49,710
Decreased inventory -$2,690
Prepaid expenses $5,280 $4,200
Increase prepaid expenses $1,080
Accounts payable(Merchandise creditors) $45,000 $41,800
Accounts payable increase $3,200
Wages payable $24,590 $27,310
Decreased wages payable -$2,720
Per below, we have some accounts that are added (+) to the net income while some are also deducted (-).
Net income $121,900
Adjustment to reconcile the net income to cash
+ Depreciation $20,100
+ Increase in cash $3,840
- Increase in accounts receivable ($1,780)
+ Inventory decrease $2,690
- Increase prepaid expenses ($1,080)
+ Accounts payable increase $3,200
- Decreased wages payable ($2,720)
Net cash $146,150
b) Briefly explain why net cash flow from operating activities is different other than net income.
The reason is that while net income refers to the earned profit by a company for a period ; cash flow from operating activities are measurement of daily cash (in and out) expended on business operation. Cash flow give explanation on the use of cash in an organization on a daily basis which includes net income from the income statement, changes in working capital, adjustments to net profits etc. t is to be noted that the starting point of calculating cash flow from operating activities is the net income.
The current spot exchange rate Singapore dollar against U.S. dollar (SGD/USD) is 0.6000. After considerable study, an investor concluded that the Singapore dollar will appreciate against the U.S. dollar in the coming 90 days, probably to about 0.7000. She has the following options on the Singapore dollar to choose from:
Option Strike price Premium
Put on SGD 0.6500 0.00003
Call on SGD 0.65 0.00046
1. Should the investor buy a put on Singapore dollars or a call on Singapore dollars?
2. What is the investor's break-even price on the option purchased in part a?
3. Using your answer from part a, what is the investor's gross profit and net profit (including premium) if the spot rate at the end of 90 days is indeed 0.7000?
4.Using your answer from part a, what is the investor's gross profit and net profit (including premium) if the spot rate at the end of 90 days is 0.8000?
Answer:
i) Investor should buy a call option as expected spot price on SGD after 90 days is 0.7 which less than the strike price 0.65 under call option.
II) Break-even price on option selected
Strike price under call option 0.65000
Add : Premium 0.00046
Break even price 0.65046
iii) Actual spot rate after 90 days 0.70000
Less: Strike price under call option 0.65000
Gross profit 0.05000
Less: Call option premium 0.00046
Net profit 0.04954
iv) Actual spot rate after 90 days 0.80000
Less: Strike price under call option 0.65000
Gross profit 0.15000
Less: Call option premium 0.00046
Net Profit 0.14954
Luther Corporation Consolidated Balance Sheet December 31, 2006 and 2005 (in $ millions) Assets 2006 2005 Liabilities and Stockholders' Equity 2006 2005 Current Assets Current Liabilities Cash 58.5 Accounts payable 73.5 Accounts receivable 39.6 Notes payable / shortterm debt 9.6 Inventories 42.9 Current maturities of longterm debt 36.9 Other current assets 3.0 Other current liabilities 6.0 12.0 Total current assets 144.0 Total current liabilities 132.0 LongTerm Assets LongTerm Liabilities Land 62.1 Longterm debt 168.9 Buildings 91.5 Capital lease obligations Equipment 99.6 Less accumulated depreciation () (52.5) Deferred taxes 22.8 22.2 Net property, plant, and equipment 200.7 Other longterm liabilities Goodwill 60.0 Total longterm liabilities 191.1 Other longterm assets 63.0 42.0 Total liabilities 323.1 Total longterm assets 242.7 Stockholders' Equity 63.6 Total Assets 386.7 Total liabilities and Stockholders' Equity 386.7 Refer to the balance sheet above. Luther's current ratio for 2006 is closest to:
Answer:
Luther Corporation
Current Ratio for 2006 is closest to:
1.1 : 1
Explanation:
a) Data and Calculations:
Total Current Assets = $144 million
Total Current Liabilities = $132 million
Current Ratio = Current Assets/Current Liabilities
= $144/$132
= 1.1 : 1
b) Luther Corporation's current ratio is a liquidity measure that shows Luther's ability to pay off short-term obligations worth $132 million or those due within one year with its current assets of $144 million. The ratio tells investors and analysts of Luther Corporation how Luther can use its current assets to pay off its current debts. Since Luther's current ratio is higher than 1, it is considered good, depending on the industry average. This means that Luther's current ratio of 1.1 : 1 should not be considered in isolation, but in comparison with other firms in the industry and its performance over a number of years.
Cash Payback Method Lily Products Company is considering an investment in one of two new product lines. The investment required for either product line is $540,000. The net cash flows associated with each product are as follows:
Year Liquid Soap Body Lotion
1 $170,000 $90,000
2 150,000 90,000
3 120,000 90,000
4 100,000 90,000
5 70,000 90,000
6 40,000 90,000
7 40,000 90,000
8 30,000 90,000
Total $720,000 $720,000
A. Recommend a product offering to Lily Products Company, based on the cash payback period for each product line.
Payback period for liquid soap
Payback period for body lotion
B. The project with the_____net cash flows in the early years of the project life will be favored over the one with the______net cash flows in the initial years.
Answer:
1a. Payback period for LIQUID SOAP =4 years
Payback period for BODY LOTION =6 years
1b. GREATEST; LESS
Explanation:
1a.Calculation for the Payback period for liquid soap
LIQUID SOAP
Year Cash flow Cumulative Cash flow
1 $170,000 $170,000
2 (150,000+170,000) =320,000
3 (120,000+320,000)=440,000
4 (100,000+440,000)=540,000
5 (70,000+540,000)= 610,000
6 (40,000+610,000)= 650,000
7 (40,000+650,000)= 690,000
8 (30,000+690,000)= 720,000
The Payback period for LIQUID SOAP will be 4 years
Calculation for the Payback period of body lotion
BODY LOTIO
Year Cash flow Cumulative Cash flow
1 $90,000 $90,000
2 (90,000+90,000)=180,000
3 (90,000+180,000)=270,000
4 (90,000+270,000)=360,000
5 (90,000+360,000)=450,000
6 (90,000+450,000)=540,000
7 (90,000+540,000)=630,000
8 (90,000+630,000)=720,000
The Payback period for BODY LOTION will be 6 years
Based on the calculation above for both liquid soap and body lotion the product offering i will recommend to Lily Products Company, based on the cash payback period for each product line will be LIQUID SOAP because it has a 4 years payback period.
B. The project with the GREATEST net cash flows in the early years of the project life will be favored over the one with the LESS net cash flows in the initial years.
The Atlantic Division of Stark Productions Company reported the following results for 2019:
Sales $4,000,000
Variable costs 3,200,000
Controllable fixed costs 300,000
Average operating assets 2,500,000
Management is considering the following independent alternative courses of action in 2020 in order to maximize the return on investment for the division.
1. Reduce controllable fixed costs by 10% with no change in sales or variable costs.
2. Reduce average operating assets by 10% with no change in controllable margin.
3. Increase sales $500,000 with no change in the contribution margin percentage.
Compute the return on investment for 2019.
Answer:
The Atlantic Division of Stark Productions Company
Return on Investment = Net Income/Average operating assets x 100
1. Reduced controllable fixed costs by 10% with no change in sales or variable costs:
Net Income = $530,000 ($500,000 + 30,000)
Return on investment = $530,000/$2,500,000 x 100
= 21.2%
2. Reduced average operating assets by 10% with no change in controllable margin:
Net Income = $500,000 and average operating assets = $2,250,000
Return on Investment = $500,000/$2,250,000 x 100
= 22.22%
3. Increased sales to $4,500,000 with no change in the contribution margin percentage:
Sales $4,500,000
Variable costs 3,600,000
Contribution $900,000
Controllable fixed costs 300,000
Net operating income $600,000
Average operating assets 2,500,000
Return on Investment = $600,000/$2,500,000 x 100
= 24%
Explanation:
a) Data and Calculations:
Sales $4,000,000
Variable costs 3,200,000
Contribution $800,000
Controllable fixed costs 300,000
Net operating income $500,000
Average operating assets 2,500,000
Return on investment = Net Income/Average operating assets x 100 = $500,000/$2,500,000 x 100 = 20%
Contribution margin ratio = $800,000/$4,000,000 x 100 = 20%
The Atlantic Division's Return on Investment, as a performance measure, evaluates the efficiency of the investment in Atlantic Division. This ratio is obtained by dividing the returns or benefits of the investment by the cost of the investment, and then multiplying by 100.
Tatham Corporation produces a single product. The standard costs for one unit of its Clan product are as follows:
Direct materials (8 pounds at $0.70 per pound) $5.60
Direct labor (2 hours at $8 per hour) 16.00
Variable manufacturing overhead
(2 hours at $7 per hour) 1,400
Total 3,560
During November Year 2, 3,500 units of Clan were produced. The costs associated with November operations were as follows:
Material purchased (35,000 pounds at $0.80 per pound) 28,000
Material used in production (31,500 pounds)
Direct labor (7,500 hours at $7.50 per hour) 56,250
Variable manufacturing overhead incurred 55,500
What is the variable overhead efficiency variance for Clan for November Year 2?
1. $3,500 favorable.
2. $3,500 unfavorable.
3. $4,000 favorable.
4. $4,000 unfavorable.
Answer:
$3,500 Unfavorable
Explanation:
The computation of variable overhead efficiency variance for Clan for November Year 2 is shown below:-
Variable overhead efficiency variance
= (Standard labor hours - actual labor hours) × (Standard variable overhead rate)
= (3,500 × 2 - 7,500) × $7
= (7,000 - 7,500) × $7
= $3,500 Unfavorable
Therefore for computing the Variable overhead efficiency variance we simply applied the above formula.
For an automobile company, the total overhead applied was $48,000,000 at the end of the year. Actual overhead was $52,850,000. Closing over/under applied overhead into cost of goods sold would cause net income to:
Answer:
Net income decreased by $4,850,000.
Explanation:
Given total overhead applied = $48000000
The actual overhead = $52850000
Over/under Applied overhead = total overhead applied - Actual overhead at the end of the year.
Over / under Applied overhead = 48000000-52850000
Over / under Applied overhead = -$4850000
From the calculation, it can be seen that the overhead is underapplied therefore when under applied overhead allocated to cost of goods sold then cost of goods sold decreased by $4850000.
Prepare the journal entry to record Jevonte Company’s issuance of 35,000 shares of its common stock assuming the shares have a: $3 par value and sell for $22 cash per share. $3 stated value and sell for $22 cash per share.
Answer: Please see answer in explanation column
Explanation:
a)journal entry to record Jevonte Company’s issuance at $3 par value and $22 cash per share
Account Debit Credit
Cash(35,000 x $22) $770,000
Common stock, $3 par value(35,000 x 3) $105, 000
Paid-in captial in excess of par value, common stock
($770,000 - $105, 000 ) $665,000
b)journal entry to record Jevonte Company’s issuance at $3 stated value and $22 cash per share
Account Debit Credit
Cash (35,000 x $22) $770,000
Common stock, $3 stated value (35,000 x 3) $105, 000
Paid-in captial in excess of stated value, common stock
($770,000 - $105, 000 ) $665,000
On November 15, 20X3, Chow Inc., a U.S. company, ordered merchandise FOB shipping point from a German company for €200,000. The merchandise was shipped and invoiced on December 10, 20X3. Chow paid the invoice on January 10, 20X4. The spot rates for euros on the respective dates were
Answer:
$4,000 gain
Explanation:
Some information was missing:
the spot rates for euros were:
November 15, 20X3 $0.4955 per €1 December 10, 20X3 $0.4875 per €1December 31, 20X3 $0.4675 per €1January 10, 20X4 $0.4475 per €1In Chow's December 31, 20X3, income statement, the foreign exchange gain is ?
the goods costed €200,000 x 0.4875 = $97,500 on December 10, 20x3
the goods costed €200,000 x 0.4675 = $93,500 on December 31, 20x3
Since the goods were sold FOB shipping point, we have to use the shipping date (December 10) to calculate the original price. By December 31, the price in US dollars had decreased by $4,000 resulting in a foreign exchange gain.
fremont which uses the high-low method reported total cost of $10 per unit its lowest production level, 5000 units. when production tripled to its highest level, the total cost per unit dropped to $5 variable cost per unit
Answer:
$2.50
Explanation:
Calculation for the estimation of variable cost per unit
Units Total cost
High method 15,000×$5 per units =$75,000
(5,000*3)=15,000
Low method 5,000*$10 per units=$50,000
Difference 10,000 $25,000
Variable cost per unit =$25,000/10,000
Variable cost per unit=$2.50
Note: Based on the information given we were told that production tripled to its highest level which means the high method units will be 15,000 units (5,000 units*3)
Therefore Fremont would estimate its variable cost per unit as: $2.50
Michelle gives out a business card with an e-mail address on it. According to the comments that accompany the UETA, it may be reasonable to infer that Michelle has consented to
Answer:
Explanation:
transact business electronically.
