AJ Manufacturing Company incurred $54,500 of fixed product cost and $43,600 of variable product cost during its first year of operation. Also during its first year, AJ incurred $17,350 of fixed and $13,900 of variable selling and administrative costs. The company sold all of the units it produced for $178,000. Required Prepare an income statement using the format required by generally accepted accounting Principles (GAAP). Prepare an income statement using the contribution margin approach.

Answers

Answer 1

Answer and Explanation:

The preparation of the income statement under following approaches are

Under  generally accepted accounting Principles (GAAP)

Sales $178,000

Less: cost of goods sold ($54,500 + $43,600) -$98,100

Gross margin $79,900

Less: selling & general admin ($17,350 + $13,900) -$31,250

Net income $48,650

Under contribution margin approach

Sales $178,000

Less: variable cost ($43,600 + $13,900) -$57.5

Contribution margin $120,500

Less: fixed cost ($54,500 + $17,350) -$71,850

Net income $48,650


Related Questions

An investment center generated a contribution margin of $400,000, fixed costs of $200,000 and sales of $2,000,000. The center's average operating assets were $800,000. How much is the return on investment

Answers

Answer: 25%

Explanation:

Contribution margin = $400,000

Fixed costs = $200,000

Sales = $2,000,000

Average operating assets = $800,000

The return on investment will be:

= (contribution margin - fixed cost) / average operating assets

= (400000 - 200000) / 800,000

= 200000 / 800000

= 25%

The return in investment is 25%.

Ray acquired an activity several years ago, and in the current year, it generates a loss of $50,000. Ray has AGI of $140,000 before considering the loss from the activity.
If the activity is a bakery and Ray is not a material participant, what is his AGI?

Answers

Answer:

adjusted gross income should be $140,000

Explanation:

The computation of the adjusted gross income is given below:

Given that

There is the loss of $50,000

And, the adjusted gross income prior considering the loss should be $140,000

So here $50,000 loss should be suspended under the rule of the passive loss as ray should not be the material participant

Therefore adjusted gross income should be $140,000

How does the devaluation and appreciation of the local currency effect to balance of payment, analyze for each component

Answers

Answer: Balance of payment will worsen due to devaluation.

Explanation: The balance of payments refers to the balance of supply and demand for a country's currency in the foreign exchange market. Devaluation will make local currency weaker and foreign currency stronger.  Therefore less demand for local currency in the foreign market. The imports will become expensive, more amount of local currency will be paid as it is weaker. The exports will become cheaper, more amount of local currency will be received as foreign currency is stronger than it.

Vise Versa for appreciation.

The fixed costs of the division were $193,000. If the mountain bike division is dropped, 30% of the fixed costs allocated to that division could be eliminated. The impact on operating income for eliminating this business segment would be:

Answers

Answer:

decrease in the operating income of $132,100

Explanation:

The computation of the impact on the operating income should be given below:

Sales $1,050,000

less: variable cost -$860,000

contribution margin $190,000

Less fixed cost (30% of $193,000) -$57,900

Impact on operating income $132,100

So there is a decrease in the operating income of $132,100

Suppose that the equilibrium price and quantity for 1 bedroom apartments in Orange County is $2,000 and 250,000 respectively. What is the most likely outcome from the Orange County Board of Supervisors' implementation of a price ceiling at $2,500 for a 1 bedroom apartment

Answers

Answer: c. No effect

Explanation:

This is a non-binding price ceiling. A none-binding price ceiling is a price ceiling that is higher than the equilibrium price for a commodity in the market. As a result, there will be no effect on the market.

The reason being that a price ceiling is a price that companies and people are not meant to exceed. If this price is already higher than the equilibrium price, there would be no need to exceed or go below it it so there would be no effect.

On June 1, 2019, Irene places in service a new automobile that cost $21,000. The car is used 70% for business and 30% for personal use. (Assume this percentage is maintained for the life of the car.) She does not take additional first-year depreciation. Determine the cost recovery deduction for 2020.

Answers

Answer:

the cost recovery deduction for 2020 is $4,704

Explanation:

The calculation of the cost recovery deduction is given below:

According to the MACRS depreciation table, the second year depreciation rate should be 32%

So, the cost recovery deduction should be

= 32% of 70% of $21,000

= $4,704

Hence, the cost recovery deduction for 2020 is $4,704

Therefore the same should be considered

Eclypso Inc. manufactures a product that passes through two processes: mixing and molding. All manufacturing costs are added uniformly in the mixing department.
Information for the mixing department for the month of October is as follows:
Work in process, October 1:
No. of units (45% complete) 7,200
Direct materials $42,000
Direct labor $50,400
Overhead $14,400
During October, 38,400 units were completed and transferred to the molding department. The following costs were incurred by the mixing department during October:
Direct materials $144,000
Direct labor $192,000
Overhead $ 60,000
By October 31, 3,600 units that were 85% complete remained in the mixing department. Eclypso uses the weighted average method. Eclypso's equivalent units of production using the weighted average method would be:_________
a. 24,740.
b. 32,000.
c. 41,460.
d. 35,000.
Alpha Technology produces two products: a high-end laptop under the label Excellent Laptops and an inexpensive desktop under the label Outstanding Computers. The two products use two overhead activities, with the following costs:
Setting up equipment $3,000
Machining $15,000
The controller has collected the expected annual prime costs for each product, the machine hours, the setup hours, and the expected production.
Excellent Laptops Outstanding Computers
Direct Labor $25,000 $10,000
Direct Materials $20,000 $5,000
Expected Production in Units 3,000 3,000
Machine Hours 850 2,000
Setup Hours 80 75
Calculate Outstanding Computer's consumption ratio for setup hours. (Note: Round your answer to two decimal places.)
a.0.75
b.0.90
c.0.25
d.0.45
e.0.48
35. Direct materials used in production, direct labor, and applied overhead are charged to the:
a. indirect labor account.
b. work-in-process account.
c. overhead account.
d. raw materials account.

Answers

Answer and Explanation:

Equivalent units of production is

=Units completed & transferred + Units in ending work in process

= 38400 units+ (85% of 3600 units

= 41460 units

Outstanding Computer's consumption ratio for setup hours is

= (75 setup hours ÷ 155 setup hours) × 100

= 0.48

35.  

The direct material that are used for production, direct labor and the applied overhead should be charged to the work in process account

A company is facing a class-action lawsuit in the upcoming year. It is possible, but not probable, that the company will have to pay a settlement of approximately $2,000,000. How would this fact be reported in the financial statements to be issued at the end of the current month

Answers

Answer:

Disclose the $2,000,000 as a Contingent Liability in the Notes

Explanation:

The Company shall Disclose the $2,000,000 as a Contingent Liability in the Notes.

A Contingent Liability is a Liability whose timing or amount is uncertain

Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $148,000. Over its 4-year useful life, the bus is expected to be driven 100,000 miles. Salvage value is expected to be $8,000.

Required:
a. Compute the depreciable cost per unit.
b. Prepare a depreciation schedule.

Answers

a is the best choice good luck

Allocative efficiency occurs:

a. Anywhere inside or on the production possibilities frontier.
b. When the total cost of production is minimized
c. At all points on the production possibilities frontier.
d. At only one point on the production possibilities frontier.
e. At the points where the production possibilities frontier crosses the horizontal or vertical axis.

Answers

Answer:

a. Anywhere inside or on the production possibilities frontier.

Explanation:

In an economy, the allocative efficiency may be defined as the economic state where the production of various goods or services is aligned with the preferences with the consumers.  

The allocative efficiency always materializes at the intersection of the supply curves and the demand curves.

On the [tex]\text{equilibrium point,}[/tex] the price for a supply [tex]\text{exactly matches}[/tex] with the demand for the product [tex]\text{for that supply}[/tex] at that price, and thus all the products are sold.

It occurs anywhere on the production possibilities frontier or on the inside of the frontier.

Therefore, the correct option is (a).

Calculate the current price of a $1,000 par value bond that has a coupon rate of 6 percent, pays coupon interest annually, has 27 years remaining to maturity, and has a current yield to maturity (discount rate) of 15 percent. (Round your answer to 2 decimal places and record without dollar sig

Answers

Answer: $413.81

Explanation:

Price of a bond = Present value of coupon payments + Present value of face value

Coupon is a constant payment so is an annuity.

Coupon = 6% * 1,000 = $60

Price of bond = Present value of annuity + Present value of face value

= (Coupon * Present value interest factor of annuity (PVIFA), 27 periods, 15%) + (Face value / (1 + rate) ^ number of periods)

= (60 * 6.514) + (1,000 / (1 + 15%)²⁷

= $413.81

An individual taxpayer reports the following items for the current year: Ordinary income from Partnership A, operating a movie theater in which the taxpayer materially participates $70,000 Net loss from Partnership B, operating an equipment rental business in which the taxpayer does not materially participate (9,000) Rental income from building rented to a third party 7,000 Short-term capital gain from sale of stock 4,000 What is the taxpayer’s adjusted gross income for the year?

Answers

Answer:

$74,000

Explanation:

Calculation to determine the taxpayer’s adjusted gross income for the year

Taxpayer’s adjusted gross income=Net loss from Partnership B+Capital gain from sale of stock

Let plug in the formula

Taxpayer’s adjusted gross income=$70,000+ $4,000

Taxpayer’s adjusted gross income=$74,000

Therefore the taxpayer’s adjusted gross income for the year is $74,000

Exercise 9-4 Interest-bearing notes payable with year-end adjustments LO P1 Keesha Co. borrows $145,000 cash on December 1 of the current year by signing a 90-day, 9%, $145,000 note. 1. On what date does this note mature? 2. & 3. What is the amount of interest expense in the current year and the following year from this note? 4. Prepare journal entries to record (a) issuance of the note, (b) accrual of interest on December 31, and (c) payment of the note at maturity.

Answers

Answer:

Keesha Co.

1. The date on which this note matures is February 28.

2. Interest expense for the current year is:

= $1,108

3. Interest expense for the following year is:

= $2,109

4. Journal Entries:

December 1:

Debit Cash $145,000

Credit Notes Payable $145,000

a) To record the issuance of the 90-day, 9% notes payable.

December 31:

Debit Interest Expense $1,108

Credit Interest Payable $1,108

b) To accrue interest expense.

February 28:

Debit Notes Payable $145,000

Debit Interest Payable $1,108

Debit Interest Expense $2,109

Credit Cash $148,217

To record the payment of the note at maturity.

Explanation:

a) Data and Calculations:

Notes Payable on December 1 = $145,000

Interest rate on the note = 9%

Duration of note = 90 days

December 1

Plus 90 days

= February 28

Interest expense for the current year = $1,108 ($145,000 * 9% * 31/365)

Interest expense for the following year = $2,109 ($145,000 * 9% * 59/365)

Analysis:

December 1:

Cash $145,000

Notes Payable $145,000

December 31:

Interest Expense $1,108

Interest Payable $1,108

February 28:

Notes Payable $145,000

Interest Payable $1,108

Interest Expense $2,109

Cash $148,217

A stock has an expected return of 11.85 percent, its beta is 1.08, and the risk-free rate is 3.9 percent. What must the expected return on the market be

Answers

Answer:

11.26%

Explanation:

According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)

rm = expected return on the market

11.85 = 3.9 + 1.08(rm - 3.9)

11.85 - 3.9 =  1.08(rm - 3.9)

7.95 = 1.08(rm - 3.9)

7.95 / 1.08 = rm - 3.9

7.361 = rm - 3.9

rm = 11.26

Suppose a farmer wants to borrow $176,590.00 to buy a tract of land. The BCS bank will make a 22-year loan fully amortized at 6.19% (annual payments). A $443.00 loan fee and stock purchase is required. The borrower stock requirement is the lesser of $1,000 or 3.00% of loan amount.
(i) Calculate the loan principal.
a. $181,521.05 b. $178,089.12
c. $182,508.25 d. $178,033.00
Enter Response Here:
(ii) Calculate the required stock purchase.
a. $5,340.99 b. $1,000.00
c. $5,274.64 d. $1,760.24
Enter Response Here:
(iii) Calculate the annual loan payments.
a. $15,032.59 b. $15,037.33
c. $15,410.47 d. $15,327.12

Answers

Answer:

A Farmer

i) Loan principal = $178,033 ($176,590 + $443 + $1,000)

ii) Required stock purchase = $1,000

iii) Annual loan payment (fully amortized at 6.19%) is:

= a. $15,032.59

Explanation:

a) Data and Calculations:

Required loan amount = $176,590.00

Period of loan = 22 years

Interest rate = 6.19%

Loan fee = $443.00

Stock purchase = lesser of $1,000 or 3.00% of loan amount

= lesser of $1,000 or $5,297.70 ($176,590 * 3%)

i) Loan principal = $178,033 ($176,590 + $443 + $1,000)

ii) Required stock purchase = $1,000

iii) Annual loan payment (fully amortized at 6.19%) = $15,030 approximately :

(# of periods)  22

I/Y (Interest per year)  6.19

PV (Present Value)  178033

FV (Future Value)  0

PMT = $15,030.02

Sum of all periodic payments $330,660.34

Total Interest $152,627.34

To a greater or lesser degree, many governments can be considered pragmatic nationalists when it comes to foreign direct investment (FDI); this means it has both benefits and costs.

a. True
b. False

Answers

Answer:

a. True

Explanation:

The term foreign direct investment (FDI) is basically used to classify the number of capital investments and other non-financial investments made by foreign companies into a host country.

For example, if the U.S receives witnesses an increase in new Chinese-owned businesses in the past year, then those investments amount once quantified would make up part of the U.S foreign direct investment (FDI) for the year. This would come would benefit, while also carrying some cost such as having an unfavorable balance of payment.

Use the following information for the year ended December 31, 2022.

Supplies $1,500
Service revenue $19,000
Other operating expenses 10,000
Cash 15,000
Accounts payable 11,000
Dividends 6,000
Accounts receivable 4,000
Notes payable 1,000
Common stock 10,000
Equipment 9,500
Retained earnings (beginning) 5,000

Calculate the following:
a. Net income / (net loss)
b. Ending retained earnings
c. Total assets

Answers

Answer:

a. $9,000

b. $8,000

c. $30,000

Explanation:

a. Calculation to determine the Net income / (net loss)

Using this formula

Net Income = Revenues - Operating Expenses

Let plug in the morning

Net Income = $19,000 - $10,000

Net Income = $9,000

Therefore the Net income is $9,000

b. Calculation to determine Ending Retained Earnings

Using this formula

Ending Retained Earnings = Retained Earnings at the beginning + Net Income - Dividends paid

Let plug in the morning

Ending Retained Earnings = $5,000 + $9,000 - $6,000

Ending Retained Earnings = $8,000

Therefore Ending Retained Earnings $8,000

c. Calculation to determine the Total Assets

Using this formula

Total Assets = Supplies + Accounts receivables + cash + Equipments

Let plug in the formula

Total Assets = $1,500 + $4,000 + $15,000 + $9,500

Total Assets = $30,000

Therefore Total assets is $30,000

Gilchrist Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 44,800 machine-hours. The estimated variable manufacturing overhead was $4.65 per machine-hour and the estimated total fixed manufacturing overhead was $1,239,616. The predetermined overhead rate for the recently completed year was closest to:

Answers

Answer: $32.32

Explanation:

From the information given, the predetermined overhead rate for the recently completed year will be calculated thus:

= Total manufacturing overhead / Estimated machine hours

= $1,447,936 / 44,800

= $32.32 per machine hour

Total manufacturing overhead was calculated as:

Estimated fixed overhead = $1,239,616

Estimated variable overhead = 44,800 × $4.65 = $208320

Total manufacturing overhead = $1,447,936

The balance in retained earnings at December 31, 2020 was $1,440,000 and at December 31, 2021 was $1,164,000. Net income for 2021 was $1,000,000. A stock dividend was declared and distributed which increased common stock $500,000 and paid-in capital $220,000. A cash dividend was declared and paid.

The stock dividend should be reported on the statement of cash flows (indirect method) as: ____________

a. an outflow from investing activities of $720,000.
b. an outflow from financing activities of $720,000.
c. an outflow from financing activities of $500,000.
d. Stock dividends are not shown on a statement of cash flows.

Answers

Answer: d. Stock dividends are not shown on a statement of cash flows.

Explanation:

A stock stock dividend refers to the dividend payment to the shareholders of s company that is not made in cash but rather it's made in shares.

It should be noted that the stock dividend is not reported on the cash flow statement. The reason for this is because it's a non cash item and also doesn't allow cash outflow. Therefore, it won't be reported.

Therefore, the correct option is D.

Flanders Company purchased an asset on January 1, 2021 for $60,000. The asset has an estimated salvage value of $3,000. Its estimated useful life is 8 years. What is the balance in accumulated depreciation using the straight-line method at December 31, 2022?

Answers

Answer:

$14,250

Explanation:

Annual depreciation = (Cost - Salvage value) / Useful Life

Annual depreciation = ($60,000 - $3,000) / 8

Annual depreciation = $57,000 / 8

Annual depreciation = $7,125

Accumulated dep. at December 31, 2022 = $7,125 * 2

Accumulated dep. at December 31, 2022 = $14,250

So, the balance in accumulated depreciation using the straight-line method at December 31, 2022 is $14,250.

Panther Co. had a quality-assurance warranty liability of $340,000 at the beginning of 2021 and $318,000 at the end of 2021. Warranty expense is based on 5% of sales, which were $50 million for the year. What amount of warranty costs were paid during

Answers

Answer: $2,522,000

Explanation:

Warranty costs paid during 2021 = Opening warranty liability + Warranty expense for the year - Closing warranty liability

Warranty expense for the year:

= 50,000,000 * 5% warranty expense

= $2,500,000

Warranty costs paid during 2021 = 340,000 + 2,500,000 - 318,000

= $2,522,000

. produces 1000 packages of fruit sushi per month. The sales price is $5 per pack. Variable cost is $1.50 per unit, and fixed costs are $1800 per month. Management is considering adding a chocolate coating to improve the value of the product by making it a dessert item. The variable cost will increase from $1.50 to $1.90 per unit, and fixed costs will increase by 10%. The CEO wants to price the new product at a level that will bring operating income up to $4000 per month. What sales price should be charged

Answers

Answer:

$7.88

Explanation:

The computation is given below:

Sales price is

= ( Total sales revenue ÷ packages sold)

And,

Total sales revenue is

= ( Total Cost + Operting income )

And,  

Total Cost = ( Variable Cost + Fixed cost)

Now

Variable cost = 1,000 packages × $1.90 per unit

= $1,900

And,

Fixed cost = $1,800 × 110%

= $1,980

so

Total cost = $1,900 + $1,980

= $3,880

Now  

Total sales revenue is

= $3,880 + $4,000

= $7,880

 Now  

Sales price = $7,880 ÷ 1,000 packages

= $7.88

Waterway Industries was organized on January 1, 2021. During its first year, the corporation issued 2,400 shares of $50 par value preferred stock and 150,000 shares of $10 par value common stock. At December 31, the company declared the following cash dividends: 2021, $5,800; 2022, $13,100; and 2023, $28,800.

Required:
Show the allocation of dividends to each class of stock, assuming the preferred stock dividend is 5% and noncumulative.

Answers

Answer:

Preferred dividend is noncumulative which means that it will not accrue if company was unable to pay in any period.

Dividends in 2021

Preferred dividends:

= Number of preferred shares * par value * dividend percentage

= 2,400 * 50 * 5%

= $6,000

Dividends of $5,800 were declared which is not enough to cover even preferred shares so preferred shares will take all the dividends.

Preferred share dividends = $5,800

Common share dividends = $0

Dividends in 2022:

Preferred dividends = $6,000

Common dividends:

= Declared dividends - Preferred dividends

= 13,100 - 6,000

= $7,100

Dividends in 2023:

Preferred dividends = $6,000

Common dividends:

= Declared dividends - Preferred dividends

= 28,800 - 6,000

= $22,800

Should we, as Americans, be concerned with the economies and standard of living of other countries?

Answers

Answer: No the economy and standard of living should be american's focus.

Explanation: If we as american's can't find a solution to our own problem's then it's unlikely that we would be able to solve another countries problems.

No, If we as Americans can't find a solution to our own problem because there exist many differences in the levels of living between various countries.

What is the standard of living?

Standards of living can concern multiple aspects of a population, including satisfaction and productivity. This stands significant because the more significant productivity and happiness exist, the more suitable an economy grows to be as a whole.

The real cause for the dissimilarities in the levels of living between various countries exists the dissimilarity in their levels of national income. The group of national income relies upon the entire volume of an exhibition in the country.

To learn more about standard of living refer to:

https://brainly.com/question/25436088

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O'Reilly Corporation uses direct labor-hours to calculate its annual plantwide predetermined overhead. For the current period's estimated level of production, O'Reilly Corporation estimated that 39,000 direct labor-hours would be required. Estimated fixed manufacturing overhead cost is $599,000 for the current period and variable manufacturing overhead cost of $3.00 per direct labor-hour. O'Reilly Corporation's actual manufacturing overhead cost for the period was $788,379 and its actual total direct labor was 39,500 hours.
Required: Compute the company's plantwide predetermined overhead rate for the year. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Predetermined overhead $ ________.

Answers

Answer:

Predetermined manufacturing overhead rate= $18.36 per direct labor hour

Explanation:

Giving the following information:

Estimated overhead cost for the period= $599,000

Variable overhead rate= $3 per DLH

Number of estimated direct labor hours= 39,000

To calculate the predetermined manufacturing overhead rate we need to use the following formula:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (599,000 / 39,000) + 3

Predetermined manufacturing overhead rate= $18.36 per direct labor hour

OR:

Fixed overhead rate= 599,000/39,000= $15.36 per DLH

Variable overhead rate= $3 per DLH

Plantwide overhead rate= $18.36 per direct labor hour

The three key pieces of information that are stated on a bond certificate are the: A. stated interest rate, the face value of the bond, and the maturity date. B. market interest rate, the price of the bond, and the maturity date. C. interest payment, the face value of the bond, and the credit rating of the company. D. interest payment, the issue price of the bond, and the credit rating of the company.

Answers

A bond certificate should contain stated interest rate, the face value of the bond, and the maturity date.

A bond certificate simply refers to a certificate of debt which is usually issued either by the government or a corporation. The main idea behind the issuing of a bond certificate is to raise money.  

The bond certificate states the bond details e.g. the bond par value, interest rate, maturity date etc.

In conclusion, the correct option is A.

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Barton Corporation acquires a coal mine at a cost of $1,800,000. Intangible development costs total $360,000. After extraction has occurred, Barton must restore the property (estimated fair value of the obligation is $180,000). Barton estimates that 6,000 tons of coal can be extracted. What is the amount of depletion per ton

Answers

Answer: $390 per ton

Explanation:

The depletion per ton is:

= Total cost of acquiring the coal mine / Number of tons that can be extracted

= (Acquisition cost + intangible development cost + Fair value of restoration) / Number of tons that can be extracted

= (1,800,000 + 360,000 + 180,000) / 6,000

= $390 per ton

McGill and Smyth have capital balances on January 1 of $42,000 and $38,000, respectively. The partnership income-sharing agreement provides for (1) annual salaries of $16,000 for McGill and $10,000 for Smyth, (2) interest at 11% on beginning capital balances, and (3) remaining income or loss to be shared 70% by McGill and 30% by Smyth.
(a) Prepare a schedule showing the distribution of net income assuming net income is (1)$50,000 and (2) $ 36,000.
(b) Journalize the allocation of net income in each of the situation above .

Answers

Answer:

McGill and Smyth Partnership

a - 1) Allocation of Net Income of $50,000

                                               McGill       Smyth      Total

Capital balances, Jan. 1      $42,000    $38,000  $80,000

Income-sharing:                                                   $50,000

Annual salaries                   $18,000     $10,000 ($28,000)

Interest on capital balances  4,620          4,180      (8,800)

Remaining income/loss         9,240         3,960    (13,200)

Total appropriations          $31,860       $18,140  $50,000

Capital balances, Dec. 31 $73,860      $56,140 $130,000

a -2) Allocation of net income of $36,000:

                                               McGill       Smyth      Total

Capital balances, Jan. 1      $42,000    $38,000  $80,000

Income-sharing:                                                     $36,000

Annual salaries                   $18,000     $10,000 ($28,000)

Interest on capital balances  4,620          4,180      (8,800)

Remaining income/loss           (560)          (240)         800

Total appropriations         $22,060      $13,940  $36,000

Capital balances, Dec. 31 $64,060      $51,940 $116,000

b -1) Allocation of net income  of $50,000:

Debit Annual salaries $28,000

Credit Capital, McGill $18,000

Credit Capital, Smyth $10,000

To record the allocation of annual salaries to the partners.

Debit Interest on Capital $8,800

Credit Capital, McGill $4,620

Credit Capital, Smyth $4,180

To record the allocation of interest on capital.

Debit Income and Loss $13,200

Credit Capital, McGill $9,240

Credit Capital, Smyth $3,960

To record the allocation of remaining income.

b - 2) Allocation of net income  of $36,000:

Debit Annual salaries $28,000

Credit Capital, McGill $18,000

Credit Capital, Smyth $10,000

To record the allocation of annual salaries to the partners.

Debit Interest on Capital $8,800

Credit Capital, McGill $4,620

Credit Capital, Smyth $4,180

To record the allocation of interest on capital.

Debit Capital, McGill $560

Debit Capital, Smyth $240

Credit Income and Loss $800

To record the allocation of remaining income.

Explanation:

a) Data and Calculations:

                                               McGill       Smyth      Total

Capital balances, Jan. 1      $42,000    $38,000  $80,000

Income-sharing:                                                     $50,000

Annual salaries                   $18,000     $10,000 ($28,000)

Interest on capital balances  4,620          4,180      (8,800)

Remaining income/loss sharing 70%          30%

For Oriole Company, sales is $1500000, fixed expenses are $330000, and the contribution margin per unit is $60. What is the break-even point?

Answers

Answer:

5500

Explanation:

Breakeven quantity are the number of  units produced and sold at which net income is zero.

Breakeven is the ratio of fixed cost to profit per unit of output sold.

Breakeven quantity = fixed cost / price – variable cost per unit

= fixed price / contribution margin per unit

Fixed costs are costs that do not vary with output. e,g, rent, mortgage payments  

Variable costs are costs that vary with production

If a producer decides not to produce any output, there would be no need to hire labour and thus no need to pay hourly wages.  

$330,000 / $60 = 5500

the gap between 'where we are now' and 'where we want to be' is known as the.....​

Answers

Answer:

Planning gap.

Explanation:

Planning can be defined as the process of developing organizational objectives and translating them into action plans or courses of action.

This ultimately implies that, planning is a strategic technique used by organizations to make an aggregate plan for its manufacturing (production) process typically ahead of time, in order to have an idea of the level of goods that are to be produced and what resources are required so as to reduce the total cost of production to its barest minimum.

The planning gap can be defined as the gap between "where we are now?" and "where we want to be?"

Basically, "where are we now?" describe the current situation of things or financial and non-financial activities that a business firm currently holds.

On the other hand, "where we want to be?" is a vision and mission statement that focuses on achieving the goals and objectives set for a business firm.

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