Askew Company uses a periodic inventory system. The June 30, 2018, year-end trial balance for the company contained the following information: Account Debit Credit Merchandise inventory, 7/1/17 32,800 Sales 388,000 Sales returns 12,800 Purchases 248,000 Purchase discounts 6,800 Purchase returns 10,800 Freight-in 18,600 In addition, you determine that the June 30, 2018, inventory balance is $40,800. Required: 1. Calculate the cost of goods sold for the Askew Company for the year ending June 30, 2018. 2. Prepare the year-end adjusting entry to record cost of goods sold.

Answers

Answer 1

Answer and Explanation:

a. The computation of the cost of goods sold is shown below:

Beginning inventory               $32,800

Add: Net purchase

Purchase $248,000

Less: Purchase discount -$6,800

Less: Purchase returns -$10,800

Add: Freight in $18,600

Total net purchased               $249,000

Less: ending inventory          -$40,800

Cost of goods sold                 $241,000

2. The year end adjusting entry is

Cost of goods sold Dr $241,000

Ending inventory  Dr $40,800

Purchase discount Dr $6,800

Purchase returns Dr $10,800

            To Beginning inventory $32,800

            To Purchase $248,000

            To freight in $18,600

(Being the cost of goods sold is recorded)


Related Questions

A series of five constant-dollar (or real-dollar) uniform payment of $897.63 is made begining at the end of first year. Assume that the general inflation rate is 18.3% and the market interest rate is 18.3% during this inflationary period.
The equivalent present worth of the series is:_________.

Answers

Answer:

The equivalent present worth of the series is $4,182.21

Explanation:

Fix periodic payments for a specific period of time are annuity payment and the payments made at the start of each period is known as advance annuity.

As per given data

Inflation per year = 18.3% / 5 = 3.66%

numbers of period = 5 years

Payment per period = $897.63

Use following formula to calculate the present value of annuity payments

PV of annuity = P x ( 1 - ( 1 + r )^-n / r

Where

P = Payment per period = $897.63

r = rate in of interest = 3.66%

n = numbers of periods = 5 years

Placing values in the formula

Equivalent present worth of the series = $897.63 + $897.63 x ( 1 - ( 1 + 3.66% )^-(5-1) / 3.66% )

Equivalent present worth of the series = $4,182.21

Suppose that the world price of oil is $70 per barrel and that the United States can buy all the oil it wants at this price. Suppose also that the demand and supply schedules for oil in the United States are as follows:Price ($ Per Barrel) U.S. Quantity Demanded) U.S. Quantity Supplied68 16 470 15 672 14 874 13 1076 12 12a) Draw the supply and demand curve for the United Statesb) With free trade in oil, what price will Americans pay for their oil? What quantity will Americans buy? How much of this will be supplied by American producers? How much will be imported?

Answers

Answer:

The supply and demand curves for the United States are shown in the graphs attached.

Explanation:

Free trade in oil implies that a country in the international oil market can import as much oil as it wants and export as much oil as it wants.

The costs of demand and the revenues obtained in each case are given below:

QD1 cost = 68 × 70 = $4,760

QS1 revenue = 16 × 70 = $1,120

QD2 cost = 470 × 70 = $32,900

QS2 revenue = 15 × 70 = $1,050

QD3 cost = 672 × 70 = $47,040

QS3 revenue = 14 × 70 = $980

QD4 cost = 874 × 70 = $61,180

QS4 revenue = 13 × 70 = $910

QD5 cost = 1076 × 70 = $75,320

QS5 revenue = 12 × 70 = $840

Find the graph attachments.

Ready Ride is a trucking company. It provides local, short-haul, and long-haul services. It has developed the following three cost pools.
Activity Cost Pool Cost Drivers Estimated Overhead Estimated Use
of Cost Driver per Activity
Loading and unloading Number of pieces $85,785 90,300
Travel Miles driven 468,000 585,000
Logistics Hours 65,520 3,120
Compute the activity-based overhead rates for each pool.
Activity Cost Pool Activity-Based overhead Rate
Loading and unloading per piece
Travel per mile
Logistics per hour
Determine the overhead allocated to Job XZ3275 which has 150 pieces, requires 200 miles of driving, and 0.75 hours of logistics.

Answers

Answer:

Total allocation= $318.25

Explanation:

Giving the following information:

Loading and unloading: Number of pieces - $85,785 - 90,300

Travel: Miles driven - $468,000 - 585,000

Logistics: Hours - $65,520 - 3,120

Determine the overhead allocated to Job XZ3275 which has 150 pieces, requires 200 miles of driving, and 0.75 hours of logistics.

First, we need to calculate the estimated overhead rate for each activity:

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

Loading and unloading= 85,785/90,300= $0.95 per piece

Travel= 468,000/585,000= $0.8 per mile

Logistics= 65,520/3,120= $21 per hour

Finally, we can allocate overhead to Job XZ3275:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Loading and unloading= 0.95*150= $142.5

Travel= 0.8*200= $160

Logistics= 21*0.75= $15.75

Total allocation= $318.25

Jennifer Burroughs is thinking about starting a firm in the upscale women's fashion industry. To get a full appreciation of the competitive nature of the industry, and how she might position her products, Jennifer has spent considerable time looking at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues. Jennifer is conducting ________ research.A) primaryB) secondaryC) actionD) temporaryE) purposeful

Answers

Answer:

Secondary

Explanation:

Secondary research is the process of summarising and collating existing research. Original or primary research involves collection of data and analysis to make a conclusion on the subject of study.

Secondary research uses information from primary research.

In this instance Jennifer looked at industry-related publications, Hoover's Online, and ABI-Inform, which is a database that provides access to articles covering a wide-variety of business and industry related issues.

The data she is using are from primary research sources.

Elasticity and Demand for Food
A. Consider the information on real-world price elasticities for ten countries. Why do you think the price elasticity of demand for food is higher in Tanzania than in the U.S.? What does this imply about food purchases in the U.S. and Tanzania?
B. The government wants to maximize its tax revenue. Revenue is equal to the amount of the tax times the quantity of goods sold (i.e., revenue Tax . Q). Which will provide more tax gasoline or a tax on restaurant meals? Why?

Answers

Answer:

Why do you think the price elasticity of demand for food is higher in Tanzania than in the U.S.?

The price elasticity of demand for food is higher in Tanzania than in the U.S. because Tanzania is a much poorer country than the U.S., and a rise in food prices leads immediately to a large drop in demand, since most people will simply not have enough income to meet demand.

What does this imply about food purchases in the U.S. and Tanzania?

This implies that people in Tanzania spend less money on food, but also spend a larger share of their income on it.

Which will provide more tax gasoline or a tax on restaurant meals? Why?

The tax on gasoline will provide more funds because gasoline is a good that is way more inelastic than restaurant meals.

If restaurant meals become more expensive because of the tax, people will simply stop eating-out, and prepare home meals instead.

Gasoline, on the other hand, is very inelastic, and even if the price goes up a lot because of a very high tax, car owners will still have to purchase it, raising government revenue.

Sarah has a toothache. She believes it may be due to her not having regular dental checkups in the past. She now wants to find a dentist, but does not have one that she has used in the past. Because dentistry has __________ properties, Sarah plans to ask her friends for a recommendation for a dentist they like to be sure that she finds a good one.

Answers

Answer:

Credence properties

Explanation:

Dentistry has a Credence property because it is a Service provided by medical specialized professionals. medical diagnoses and legal services have credence properties, or characteristics. A consumer may find a service with Credence property impossible to evaluate even after purchase and consumption. To reduce this uncertainty, service consumer like Sarah turns to personal sources of information like her friends during the purchase decision process

A Deloitte employment survey asked a sample of human resource executives how their company planned to change its workforce over the next months. A categorical response variable showed three options: The company plans to hire and add to the number of employees, the company plans no change in the number of employees, or the company plans to lay off and reduce the number of employees. Another categorical variable indicated if the company was private or public. Sample data for companies are summarized as follows. Company Employment Plan Private Public Add Employees 39 32 No Change 21 36 Lay Off Employees 12 44 a. Conduct a test of independence to determine if the employment plan for the next months is independent of the type of company. At a level of significance. Compute the value of the test statistic (to 2 decimals).

Answers

The missing figures in the question is shown in bold format.

Also the table is better constructed for clearer understanding when answering the question.

A Deloitte employment survey asked a sample of human resource executives how their company planned to change its workforce over the next 12 months. A categorical response variable showed three options: The company plans to hire and add to the number of employees, the company plans no change in the number of employees, or the company plans to lay off and reduce the number of employees. Another categorical variable indicated if the company was private or public. Sample data for  180 companies are summarized as follows.

                                                             Company

Employment Plan                        Private                           Public

Add Employees                                39                                32

No Change                                        21                                36

Lay Off Employees                            12                                44

a. Conduct a test of independence to determine if the employment plan for the next 12 months is independent of the type of company. At a level of  0.05 significance. Compute the value of the test statistic (to 2 decimals).

Answer:

Explanation:

From the table in the question; we can see the changes in employees adding, shedding, or not changing their staffing.

                                  Company

Plan                            Private                          Public

Add                              39                                  32

Number Change          21                                   36

Lay Off                           12                                   44

The hypothesis are:

[tex]\mathbf{ H_o : Column \ independent \ of \ row}\\ \\ \mathbf{ H_a : Column \ is \ dependent \ of \ row}[/tex]

Using the following relation of variables given to determine expected frequencies ; we have :

[tex]\mathbf{e_f = \dfrac{(row _i)(column_j)}{Total \ sample}}[/tex]

From the above table ; the first row show the total entries of 72

The first column shows the total of 72

[tex]\mathbf{e_f = \dfrac{(39+32)(72)}{180}} \\ \\ \mathbf{e_f = 28.80}}[/tex]

The expected value for the first row, first column is 28.80

Repeating the same process for others;

For the first row ; second column we have :

[tex]\mathbf{e_f = \dfrac{(39+32)(112)}{180}} \\ \\ \mathbf{e_f = 44.80}}[/tex]

For the second row ; first column we have :

[tex]\mathbf{e_f = \dfrac{(21+36)(72)}{180}} \\ \\ \mathbf{e_f = 22.80}}[/tex]

For the second row ; second column we have :

[tex]\mathbf{e_f = \dfrac{(21+36)(112)}{180}} \\ \\ \mathbf{e_f = 35.47}}[/tex]

For the third row ; first column we have :

[tex]\mathbf{e_f = \dfrac{(12+44)(72)}{180}} \\ \\ \mathbf{e_f = 22.40}}[/tex]

For the third  row ; second column we have :

[tex]\mathbf{e_f = \dfrac{(12+44)(112)}{180}} \\ \\ \mathbf{e_f = 34.84}}[/tex]

                                  Company

Plan                            Private                  Public             Total

Add                              28.80                      44.80          73.60                            

Number Change         22.80                      35.47           58.27        

Lay Off                         22.40                      34.84           57.24        

Converting the table to chi- squared using the relation.

[tex]\mathbf{x^2 = \sum_i ( \dfrac{f_y-e_f}{e_f})^2}[/tex]

where;

[tex]f_y[/tex] = observed frequency from the original table

From the original above table ;

for the first row (1)

the observed frequency is = 39

the expected frequency  is = 28.80

[tex]\mathbf{x^2 = \sum_i ( \dfrac{39-28.80}{28.80})^2} \\ \\ \mathbf{x^2 =3.6125}[/tex]

for the first row (2)

the observed frequency is = 32

the expected frequency  is = 44.80

[tex]\mathbf{x^2 = \sum_i ( \dfrac{32-44.80}{44.80})^2} \\ \\ \mathbf{x^2 =3.6571}[/tex]

for the second row (1)

the observed frequency is = 21

the expected frequency  is = 22.80

[tex]\mathbf{x^2 = \sum_i ( \dfrac{21-22.80}{22.80})^2} \\ \\ \mathbf{x^2 =0.1421}[/tex]

for the second row (2)

the observed frequency is = 36

the expected frequency  is = 35.47

[tex]\mathbf{x^2 = \sum_i ( \dfrac{36-35.47}{35.47})^2} \\ \\ \mathbf{x^2 =0.0079}[/tex]

for the third row (1)

the observed frequency is = 12

the expected frequency  is = 22.40

[tex]\mathbf{x^2 = \sum_i ( \dfrac{12-22.40}{22.40})^2} \\ \\ \mathbf{x^2 =4.8286}[/tex]

for the third row (2)

the observed frequency is = 44

the expected frequency  is = 34.84

[tex]\mathbf{x^2 = \sum_i ( \dfrac{44-34.84}{34.84})^2} \\ \\ \mathbf{x^2 =2.4083}[/tex]

                                  Company

Plan                            Private                  Public             Total

Add                             3.6125                  3.6571          7.2696                      

Number Change        0.1421                   0.0079         0.15      

Lay Off                       4.8286                  2.4083         7.2369

Total                                                                        [tex]x^2 =[/tex] 14.657

Hence, the total chi-square = 14.657;

To find the value for p; we need to determine the degree of freedom

df = (2-1)(3-1)

that result to a degree of freedom of 2

From the chi square chart at the chi-square is 14.657 and degree of freedom is 2 ; the p value is between 0.1 and 0.005. Since this makes p-value  less than 0.05.

We rejected [tex]\mathbf{ H_o}[/tex]

Thus; the variables are dependent. We can conclude that the employment plan and the company are significantly related.

You have just been offered your dream job after graduating from Jacksonville University. In response to your negotiations concerning your compensation package, the company has offered you a couple of different stock options in addition to the agreed upon salary.
Under the first option, you would receive stocks with a value of $2,000,000 at the end of each year. This option also includes an additional $4,000,000 bonus that you would receive for staying at the company for 3 years.
Under the second option, you would receive stocks with a value of $1,000,000 at the end of each year. This option also includes an additional $8,000,000 bonus that you would receive for staying at the company for 3 years.
Assume that these stocks grow at a rate of 11% compounded monthly. Moreover, assume that you will leave the company at the end of your fourth year to start your own firm. Which option will you choose. (The more money you have to start your own firm, the better.)
Your formal solutions should include ...
⦁ The overall goal and/or purpose.
⦁ The given information
⦁ A time-line for each option
⦁ A future value for each individual stock payment provided you by the company
⦁ The total future value of each option at the time you plan to leave the company
⦁ Your conclusion

Answers

Answer:

Goal: maximize return at the end of the fourth year.

Future value of each option:

First choise:       $ 11,730,289.64

Second choise: $ 12,559,457.84‬

Conclusion:

It is better to pick the second option as yields a better return

Explanation:

We solve for the future value of the cashflow of each option:

First choise:

End of the first year:

[tex]Principal \: (1+ r)^{time} = Amount[/tex]

Principal 2,000,000.00

time 36.00 (form end of the first to end of the fourth)

rate 0.00917 (11% / 12 months as it compounds monthly)

[tex]2000000 \: (1+ 0.00916666666666667)^{36} = Amount[/tex]

Amount $2,777,757.26

End of the second year:

Principal 2,000,000.00

time 24.00

rate 0.00917

[tex]2000000 \: (1+ 0.00916666666666667)^{24} = Amount[/tex]

Amount $2,489,657.04

End of the third year:

Principal 4,000,000.00

time 12.00

rate 0.00917

[tex]4000000 \: (1+ 0.00916666666666667)^{12} = Amount[/tex]

Amount $4,462,875.34

End of the fourth year: $2,000,000

Total:  

$2,777,757.26

$2,489,657.04

$4,462,875.34

$2,000,000        

$ 11,730,289.64

Second choise:

First year

Principal 1,000,000.00

time 36.00

rate 0.00917

[tex]1000000 \: (1+ 0.00916666666666667)^{36} = Amount[/tex]

Amount 1,388,878.63

Second year:

Principal 1,000,000.00

time 24.00

rate 0.00917

[tex]1000000 \: (1+ 0.00916666666666667)^{24} = Amount[/tex]

Amount 1,244,828.52

Third Year

Principal 8,000,000.00

time 12.00

rate 0.00917

[tex]8000000 \: (1+ 0.00916666666666667)^{12} = Amount[/tex]

Amount 8,925,750.69

Fourth year: 1,000,000

Total

1,388,878.63

1,244,828.52

8,925,750.69

1,000,000.00      

12,559,457.84‬

Mark is creating Nu2U, a Web site through which he will enter into contracts over the Internet. In his standard online contract, he includes a provision which states "Any disputes under this contract will be resolved under the laws of the State of Texas." This is an example of a

Answers

Answer: Choice of Law Clause

Explanation:

The Choice of Law Clause allows parties in a contract to pick a territory's laws as the laws that the contract between them will be applicable to.

This way uncertainty can be avoided when any of the parties seeks legal redress for any perceived breach of contract.

It is worthy of note that parties do not even need to be from the Territory whose laws have been chosen and this is why some parties look for Territories who have laws that will be favourable to them. This is why most big Corporations pick Delaware law because their laws are perceived to be pro big business.

Under a partnership agreement, Sherry is to receive 25% of the partnership income, but not less than $10,000. The partnership has net income of $30,000 for Year 1 before any allocation. Calculate Sherry’s guaranteed payment from the partnership for Year 1.

Answers

Answer:

$2,500

Explanation:

since Sherry will receive at least $10,000 or 25% of the partnership's net income, then the guaranteed payment = $10,000 - ($30,000 x 25%) = $10,000 - $7,500 = $2,500

When partnerships include guaranteed minimum payments, he/she will receive that amount even if the partnership's net income is not high enough. If the partnership's net income would have been $40,000 or more, then there would be no guaranteed payment (= $40,000 x 25% = $10,000).

Mostert Music Company had the following transaction inMarch:a. Sold instruments to customers for $10,000; received$ 6,000 in cash and the rest on account.The cost of theinstruments was $7,000.
b.Purchased $4,000 of new instruments inventory; paid$1,000 in cash and owed the rest on account.
c. Paid $600 in wages for the month.
d. Received a $200 bill for utilities that will be paidin April.
e. Received $1,000 from customers as deposits on ordersof new instruments to be sold to the customers in April.Complete the following statement:Cash BasisIncomeStatementAccrualBasis Income StatementRevenues:Revenues:CashSales___________Salesto customers_________Customerdeposits___________Expenses:Expenses:Inventorypurchases__________Costof sales__________Wagespaid__________Wagesexpense__________Utilitiesexpense__________CashIncome___________(dbl underline)Netincome_________(dbl underline)

Answers

Answer: The answer is given below

Explanation:

It should be noted that for the cash basis income statement, the revenue were cash sales of $6000 and customer deposit of $1000 making a total of $7000. The expenses were the inventory purchased of $1000 and the wages paid of $600 making $1600. Cash income was now:

= $7,000 - $1600

= $5400

For the accrual income statement, the revenue was $10000 and expenses were $7800. The cash Income was now: $10,000 - $7800 = $2,200

Check the attachment for further clarification.

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 3,100 helmets, using 2,077 kilograms of plastic. The plastic cost the company $13,708. According to the standard cost card, each helmet should require 0.62 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 3,100 helmets?
2. What is the standard materials cost allowed (SQ × SP) to make 3,100 helmets?
3. What is the materials spending variance?
4. What is the materials price variance and the materials quantity variance? (For requirements 3 and 4, indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Do not round intermediate calculations.)

Answers

Answer:

1. 1,922

2. $13,454

3. $254 Unfavorable

4. 831 Favorable

$1,085 Unfavorable

Explanation:

1. The computation of standard quantity of kilograms of plastic is shown below:-

Standard quantity of kilograms allowed = Helmets manufactured × Required kilograms of plastic

= 3,100 × 0.62

= 1,922

2. The computation of standard materials cost allowed is shown below:-

Standard cost allowed for actual output = Standard quantity of kilograms allowed × Cost per kilogram

= 1,922 × $7

= $13,454

3. The computation of materials spending variance is shown below:-

Materials spending variance = Plastic cost - Standard cost allowed for actual output

= $13,708 - $13,454

= $254 Unfavorable

4. The computation of materials price variance and the materials quantity variance is shown below:-

Materials price variance = Plastic cost - (Plastic in kilograms × Cost per kilograms)

= $13,708 - (2,077 × $7)

= 831 Favorable

Materials quantity variance = Cost per kilograms × (Plastic in kilograms - Standard quantity of kilograms allowed)

= $7 × (2,077 - 1,922)

= $1,085 Unfavorable

So, we have applied the above formulas.

Variable costs as a percentage of sales for Lemon Inc. are 62%, current sales are $563,000, and fixed costs are $189,000. How much will operating income change if sales increase by $39,200

Answers

Answer:

Effect on income= $14,896 increase

Explanation:

Giving the following information:

Variable costs= 62% of sales

Current sales are $563,000

Fixed costs are $189,000.

Sales increase by $39,200.

To calculate the effect on income, we need to use the following formula:

Effect on income= sales increase*contribution margin ratio

Effect on income= 39,200*(1 - 0.62)

Effect on income= $14,896 increase

Prove:

Actual income= 563,200*0.38 - 189,000= 25,016

New income= 602,400*0.38 - 189,000= 39,912

Difference= $14,896 increase

Cold Goose Metal Works owns 207,500 shares in the Fat Fox Smelting Corp.. If Fat Fox Smelters has 250,000 shares of common stock outstanding, can Cold Goose file a single income tax return that reports the incomes and expenses of both companies? No, because Cold Goose Metal Works’s ownership stake in Fat Fox Smelters is less than or equal to 49%, whereas 50% or more is required by the U.S. Tax Code. Yes, because Cold Goose Metal Works’s ownership stake in Fat Fox Smelters is greater than or equal to 60%, as required by the U.S. Tax Code. Yes, because Cold Goose Metal Works’s ownership stake in Fat Fox Smelters is greater than or equal to 80%, as required by the U.S. Tax Code.

Answers

Answer:

Cold Goose Metal Works and Fat Fox Smelting Corp.

Yes, because Cold Goose Metal Works’s ownership stake in Fat Fox Smelters is greater than or equal to 80%, as required by the U.S. Tax Code.

Explanation:

The total percentage of shares owned by Cold Goose Metal Works is 83% (207,500/250,000 x 100).  This is more than 80% required.

The relevant section supporting the above is

"Section (2) 80-per cent voting and value test: The ownership of stock of any corporation meets the requirements of this paragraph if it—

(A)possesses at least 80 per cent of the total voting power of the stock of such corporation, and

(B)has a value equal to at least 80 per cent of the total value of the stock of such corporation."

The Crime Prevention Service for Business at Rutgers University School of Criminal Justice defines shrinkage as the difference between the inventory a business should have and what the:

Answers

Answer: ...business actually does have.

Explanation:

According to a study done in 2010, Retail Stores around $38 billion in Shrinkage making it quite a huge problem. Shrinkage according to the  Crime Prevention Service for Business at Rutgers University School of Criminal Justice is the difference between the inventory a business should have and what it actually does have meaning that Shrinkage refers to the unexplained losses in inventory during the year.

Shrinkage can happen due to a couple of reasons such as employee theft, book keeping errors and shoplifting.  

1. Investment in the business= $17,010
2. Borrow cash= $7620
3. Purchase equipment= the list price was $8700 but the final price was $8300
4. Revenues earned = $298,600, the cash has been collected from the customers for all revenue earned
5. Expenses incurred= total $210,900 during the same year, all expenses paid in cash
6. Dividens= end of each quarter, the company distributed cash to stockholders, the sum of those quarterly distributions was $15,000
Consider the following transactions for Thomas Company and their effect ont he accounting equation. Determine the new balance for each component of the accounting equation from the transactioon. If an amount box does not require an entry, leave it blank.
Transaction Assets =Liabilities Stockholders' Equity
Beginning $0 $0 $0
1. Investment in the business $17,160 17160
2. Borrow cash $7940 7940 7940
3. Purchase equipment 8600 7940 660
4. Revenues earned 29860 0 29860
5. Expenses incurred 210800 103660
6. Dividends 14200 88460

Answers

Answer & Explanation:

                               Assets         =         Capital        +         Liabilities

1) Investment         Cash (+17...)            (+17160)

2) Borrowings       Cash (+7...)                                            Loan (+7...)

3) Purchase          Cash (-price paid)     + Gain

                            Equip (+final price)      (final - price paid)

4) Revenue          Cash (+298...)                Income (+298...)  

5) Expense           Cash (-210...)                 Expense (-210...)

3)* Price paid = 8700 or 8600 , Final price = 8300 or 7940 , Gain (Discount received) = 8700 - 8300 ie 400 (or) 8600 - 7940 = 660

Twinte Cars, a California corporation, has internal corporate requirements that stipulate a three-year payroll document retention period. It enters into a contract with an international company that mandates a six-year payroll document retention requirement. How should Twinte Cars balance these requirements

Answers

Answer:

-The period for retention could be up to 8 years depending upon the circumstances.

-The benefits and records may be called to evidence

Explanation:

In this scenario Twinte cars needs to balance internal requirement of 3 year payroll document retention period and the contract if 6 year payroll retention with the international company. Usually foreign companies have a higher retention requirement.

A way out of this predicament will be to get a new retention period of 8 years. This will satisfy requirements of the international company.

Also Twinte cars can provide benefits and records from their internal 3 year payroll retention to the international company


In 2009, because U.S. imports were $2,535 billion while exports were $2,116 billion:
A. imports exceeded exports by a sizeable $419 billion.
B. there was a huge influx of foreign capital into the U.S. economy.
C. government policy caused a lessening of foreign aid.
D. exports exceeded imports by a sizeable $419 billion.​

Answers

Answer:

  A. imports exceeded exports by a sizable $419 billion

Explanation:

Obviously imports had a greater value than exports. The difference in value is ...

  $2535 -2116 = $419 . . . billion

This observation matches choice A.

Chen Company's account balances at December 31, 2017 for Accounts Receivable and the Allowance for Doubtful Accounts are $800,000 debit and $1,500 credit. Sales during 2017 were $2,750,000. It is estimated that 1% of sales will be uncollectible. The adjusting entry would include a credit to the allowance account for:___________.
A) $29,000.
B) $27,500.
C) $26,000.
D) $8,000.

Answers

Answer:

B) $27,500.

Explanation:

The computation of the amount credited to the allowance account is shown below:

= Sales during the 2017 year × estimated  uncollectible percentage

= $2,750,000 × 1%

= $27,500

By multiplying the sales with the estimated  uncollectible percentage we can get the amount credited to the allowance account and the same is to be considered

Hence, the correct option is B

Accounts Receivable Analysis A company reports the following: Sales $1,182,600 Average accounts receivable (net) 43,800 Determine (a) the accounts receivable turnover and (b) the number of days' sales in receivables. Round interim calculations to the nearest dollar and final answers to one decimal place. Assume a 365-day year. a. Accounts receivable turnover b. Number of days' sales in receivables days

Answers

Answer:

a. The account Receivable Turnover is 27 times

b. 13.52 days approximately

Explanation:

1. Account Receivable Turnover = Net sales / Average Account Receivables

Account Receivable Turnover = $1,182,600 / $43,800

Account Receivable Turnover = 27 times

The account Receivable Turnover is 27 times

2. Number of days' sales in receivables days = (Average Account Receivables * 365 days) / Net sales

=(43,800 * 365) / 1,182,600

=13.5185

=13.52 days approximately

When a central bank increases bank reserves by $1, the money supply rises by more than $1. The amount of extra money created when the central bank increases bank reserves by $1 is called the money multiplier.

a. The money multiplier is generally greater than 1 because:

1. in a fractional-reserve banking system, each dollar bill is spent more than once (velocity is larger than 1), thereby increasing the money supply by more than $1.
2. in a fractional-reserve banking system, each dollar of reserves can support more than one dollar of deposits, thereby increasing the money supply by more than $1.
3. in a 100 percent reserve banking system, each dollar of reserves supports exactly one hundred dollars of deposits, thereby increasing the money supply by $100.
4. when a central bank increases bank reserves by $1, deposits are automatically increased by $1 as well, thereby increasing the money supply by $2.

The money multiplier is equal to 1 when:

1. reserves < deposits.
2. reserves > deposits.
3. reserves = deposits.

b. The initial money supply is $1,500, of which $700 is currency held by the public. The desired reserve-deposit ratio is 0.1. Calculate the increase in the money supply associated with increases in bank reserves of $10. What is the money multiplier in this economy? Assume that individuals do not change their currency holdings.

c. A general rule for calculating the money multiplier is:

1. 1/(deposit ratio-desired reserve).
2. 1/deposit ratio.
3. 1/desired reserve.
4. 1/(desired reserve-deposit ratio).

d. Suppose the Fed wanted to reduce the money multiplier, perhaps because it believes that change would give it more precise control over the money supply. In order to achieve its goal, the Fed would:

1. decrease the ratio of reserves to deposits.
2. increase reserve requirements.
3. increase the money supply.
4. decrease reserve requirements.

Answers

Answer: a. 2. in a fractional-reserve banking system, each dollar of reserves can support more than one dollar of deposits, thereby increasing the money supply by more than $1.

3. reserves = deposits.

b. $900.

Multiplier is 10

c. 4. 1/(desired reserve-deposit ratio).

d. 2. increase reserve requirements.

Explanation:

a. In fractional-reserve banking system, $1 of deposits can be used to create more than $1 in money supply as the money is continuously deposited into other bank accounts. This enables the money to keep increasing until it theoretically reaches a certain amount determined by the money Multiplier.

If the money Multiplier is equal to 1 which is a very rare occasion, this means that the amount required in reserves is equal to the deposits. $1 of deposits will yield a $1 in money supply increase.

b. The desired reserve-deposit ratio is 0.1. For every $1, 0.1 goes to reserves.

If bank reserves have increased by $10 then that means that deposits are,

0.1x = 10

x = $100

Deposits not in reserve are,

= 0.9 * 100

= $90

The money Multiplier can be calculated with the formula,

= 1/(desired reserve-deposit ratio)

= 1/0.1

= 10

Increase in money supply is therefore,

= $90 * 10

= $900

c. As earlier mentioned, option D is the general rule for calculating the money Multiplier.

= 1/(desired reserve-deposit ratio)

d. If the Fed increases the reserve requirement, the effect would be a reduction in the money supply because the denominator is now higher.

For instance, reserve requirement of 0.1 vs 0.2.

At 0.1, the money supply would be,

= 1/0.1

= 10

At 0.2, the money supply would be,

= 1/0.2

= 5

The higher the reserve requirement, the lower the Multiplier.

Todd can afford to pay $375 per month for the next 7 years in order to purchase a new car. The interest rate is 6.5 percent compounded monthly. What is the most he can afford to pay for a new car today

Answers

Answer:

The most he can afford to pay = $25,260.07

Explanation:

The most he can afford to pay is the present value of the  $375 per month discounted at the interest rate of return of 6.5% p.a

PV = A× (1- (1+r)^(-n))/r

PV = ?, A- 375,  r- 6.5/12= 0.541%   n= 12×7 = 84

PV = 375× (1- (1.00541)^(-84) )/0.00541= 25260.071

The most he can afford to pay = $25,260.07

Note: the monthly interest rate needed to be computed by dividing 6.5% by 12 and the number of months in 7 years is 7 × 12 = 84

Consider the role of management accounting in relation to the company for which you work (or have worked). Discuss how the principles of management accounting can be utilized. What specific managerial accounting activities would be useful?

Answers

Answer:

Role of management accounting :

1. provide internal information on operations

2. help in decision making

Utilization of management accounting principles

1. make or buy decisions

2. continuing or discontinuing of operations

Useful managerial Accounting Activities

1. planning

2. deciding on the alternative causes of action

Explanation:

Role of Management Accounting is to provide managers with information related to their operations.This includes the costs and revenue incurred, the deviations from the planned costs and revenue and profit targets.

This information would help to control costs and revenues or make certain decisions of continuing or discontinuing operating of a product or segment.

Thus managerial accounting activities that are useful are planning, deciding on the alternative causes of action, implementation, monitoring and control

The role of management accounting in a company is to analyze financial information for a period to assist managers in the decision-making process for achieving organizational goals.

The management accounting principles defined by the American Institute of CPAs (AICPA) are:

InfluenceRelevanceValueConfidence

Through the four global principles, management accounting activities such as strategic definition, control and direction will be managed more effectively.

The availability of data and information will provide greater support for the creation of value through greater vision of organizational environments, transparency and reliability to attract investments.

Learn more here:

https://brainly.com/question/15800664

Felinas Inc. produces floor mats for cars and trucks. The owner, Kenneth Felinas, asked you to assist him in estimating his maintenance costs. Together, Mr. Felinas and you determined that the single best cost driver for maintenance costs was machine hours. Below are data from the previous fiscal year for maintenance expense and machine hours:
Month Maintenance Expense Machine Hours
1 $ 3,480 2,380
2 3,670 2,480
3 3,850 2,580
4 3,980 2,610
5 3,980 2,460
6 4,400 2,620
7 3,970 2,600
8 3,780 2,570
9 3,500 2,390
10 3,120 2,260
11 2,960 1,650
12 3,240 2,250
Using the high-low method, total monthly fixed cost is calculated to be:__________
a. $296.
b. $224.
c. $460.
d. $162.
e. $552.

Answers

Answer:

Fixed costs= 510

Explanation:

Giving the following information:

Month Maintenance Expense Machine Hours

1 $ 3,480 2,380

2 3,670 2,480

3 3,850 2,580

4 3,980 2,610

5 3,980 2,460

6 4,400 2,620

7 3,970 2,600

8 3,780 2,570

9 3,500 2,390

10 3,120 2,260

11 2,960 1,650

12 3,240 2,250

To calculate the fixed costs, we need to use the following formulas:

Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)

Variable cost per unit= (4,400 - 2,960) / (2,620 - 1,650)

Variable cost per unit= $1.484536

Fixed costs= Highest activity cost - (Variable cost per unit * HAU)

Fixed costs= 4,400 - (1.484536*2,620)

Fixed costs= $510

Fixed costs= LAC - (Variable cost per unit* LAU)

Fixed costs= 2,960 - (1.484536*1,650)

Fixed costs= 510

The following items are taken from the financial statements of the Freight Service for the year ending December 31, 2016:

Accounts payable $ 19,000

Accounts receivable 13,000

Accumulated depreciation – equipment 26,000

Advertising expense 21,200

Cash 15,000

Owner’s capital (1/1/16) 104,000

Owner’s drawings 11,000

Depreciation expense 12,000

Insurance expense 3,800

Note payable, due 6/30/17 72,000

Prepaid insurance (12-month policy) 7,200

Rent expense 16,000

Salaries and wages expense 32,000

Service revenue 135,000

Supplies 5,000

Supplies expense 6,000

Equipment 210,000

What is the company’s net income for the year ending December 31, 2016?

Answers

Answer:

Freight Service

Income Statement for the year ending December 31, 2016:

Service Service                                 $135,000

Costs:

Advertising expense        21,200

Depreciation expense     12,000

Insurance expense           3,800

Rent expense                  16,000

Salaries & Wages exp    32,000

Supplies expense            6,000

Total Expenses                                     $91,000

Net Income                                         $44,000

Explanation:

In calculating the net income for the year, only revenue and expenses (income statement) items are taken into account.  They are also called temporary or period accounts which are closed to the income statement for the period, because they are not permanent accounts.  Permanent accounts are taken to the balance sheet and carried over to the next accounting period.

A company has a net income of $190,000, a profit margin of 9.40 percent, and an accounts receivable balance of $106,351. Assuming 72 percent of sales are on credit, what is the company's days' sales in receivables?

Answers

Answer:

The company's days' sales in receivables is 22 days

Explanation:

In order to calculate the company's days' sales in receivables we would have to calculate first the total sales with the following formula:

Total Sales = Net Income / Profit Margin

= $190,000/9.4%=$2,021,276

Hence, Credit Sales = $2,021,276*0.85= $1,718,085

Accounts receivable turnover ratio = Credit sales / Accounts Receivable

= $1,718,085 /$106,351

= 16.15485

Therefore, Days sales in receivables = 365/16.15485= 22.59 days

The company's days' sales in receivables is 22 days

Suppose you are an analyst in the oil refinery industry and are responsible for estimating the equilibrium price and quantity of home heating oil. To do so, you must consider factors that can affect the supply of and demand for heating oil.
Determinants of the demand for heating oil include household income, the price of an oil furnace (a complement to heating oil) and the price of natural gas (a substitute for heating oil). Determinants of the supply of heating oil include the cost of crude oil and the cost of refining crude oil into home heating oil.
1. Suppose that all of the determinants of the supply and demand for heating oil are equal to their initital values. The equilibrium quantity in this market is ___ barrels of heating oil per day,
A. 60,000
B. 50,000
C. 70,000
D. 80,000
E. 40,000
2. and the equilibrium price is ____ per barrel.
A. $40
B. $70
C. $60
D. $50
E. $80

Answers

Answer:

1. 80,000

2. $40 per barrel

Explanation:

1. As we can see from the table provided The equilibrium quantity in this market is 80,000 barrels of heating oil per day,  as quantity demanded match quantity supplied

2. As we can see from the table provided The equilibrium price is $40 per barrel as in this cost there is an intersection of quantity demanded and quantity supplied. In other words the equilibrium price and quantity could be find out when the quantity demanded equal to quantity supplied

13) Baxter & Baxter has total assets of $710,000. There are 45,000 shares of stock outstanding with a market value of $28 a share. The firm has a net profit margin of 7.1 percent and a total asset turnover of 1.29. What is the price-earnings ratio?


Answers

Answer:

19.38

Explanation:

Baxter & Baxter

Market value share/ Percentage of profit margin ×(Total assets ×Total asset turnover)/Outstanding shares

Where:

Market value shares=28

Percentage of profit margin =71%

Total assets =710,000

Total asset turnover=1.29

Outstanding shares =45,000

Hence:

Price-earnings ratio =

$28/[0.071 ×($710,000 ×1.29)]/45,000

=19.38

Portions of the financial statements for Peach Computer are provided below.PEACH COMPUTERIncome StatementFor the year ended December 31, 2021Net sales $ 1,875,000 Expenses: Cost of goods sold $ 1,080,000 Operating expenses 590,000 Depreciation expense 53,000 Income tax expense 43,000 Total expens 1,766,000 Net income $ 109,000 PEACH COMPUTERSelected Balance Sheet DataDecember 312021 2020 Increase (I)orDecrease (D)Cash $ 105,000 $ 86,500 $ 18,500 (I)Accounts receivable 45,300 50,500 5,200 (D)Inventory 78,000 56,500 21,500 (I)Prepaid rent 3,300 5,600 2,300 (D)Accounts payable 48,000 38,500 9,500 (I)Income tax payable 5,300 11,500 6,200 (D)Required:Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method. (List cash outflows and any decrease in cash as negative amounts.)

Answers

Answer:

Cash flow from Operating Activities

Cash Receipts from Customers                   $1,880,200

Cash Paid to Suppliers and Employees     ($1,679,700)

Cash Generated from Operations                $ 200,500

Income taxes paid                                           ($49,200)

Cash flow from Operating Activities              $ 151,300

Explanation:

Cash Receipts from Customers Calculation

Net sales                                                    $ 1,875,000

Add Decrease in Accounts receivable          $ 5,200

Cash Receipts from Customers                $1,880,200

Cash Paid to Suppliers and Employees

Cost of goods sold                                   $ 1,080,000

Add Operating Expenses

Operating expenses                                   $ 590,000

                                                                    $1,670,000

Increase in Inventory                                      $ 21,500

Decrease in Prepaid rent                               ($ 2,300)

Increase in Accounts payable                       ($ 9,500)

Cash Paid to Suppliers and Employees    $1,679,700

Income taxes paid Calculation

Open an Income taxes Payable T - Account as follows :

Debits :

Closing Balance                                 $ 5,300

Cash (Balancing figure)                    $49,200

Totals                                                 $54,500

Credit :

Opening Balance                              $ 11,500

Income Statement                            $43,000

Totals                                                 $54,500

Assuming no employees are subject to ceilings for their earnings, Harris Company has the following information for the pay period of January 15 - 31.
Gross payroll $19,676
Federal income tax withheld $3,438
Social security rate 6%
Federal unemployment tax rate 0.8%
Medicare rate 1.5%
State unemployment tax rate 5.4%
Salaries Payable would be recorded in the amount of
a) $15,018.09
b) $13,542.39
c) $14,762.30
d) $19,676.00

Answers

Answer:

The correct answer is B. Salaries Payable would be recorded in the amount of 13,542.39.

Explanation:

Given that the company's gross payroll is $19,676, and that a discount of $3,438 must be applied by the Federal Income Tax, a 6% social security rate, a 0.8% federal unemployment rate, a 1.5% rate Medicare and 5.4% state unemployment rate, the following gross discounts must be made to gross payroll to determine wages to be paid after taxes:

3,438 (Federal Income Tax)

19,676 x 0.06 = 1,180.56 (social security rate)

19,676 x 0.008 = 157.408 (federal unemployment rate)

19,676 x 0.015 = 295.14 (Medicare rate)

19,676 x 0.054 = 1,062.5 (state unemployment rate)

Therefore, those discounts should be subtracted from the gross payroll in order to get the Salaries Payable:

19,676 - 3,438 - 1,180.56 - 157.4 - 295.14 - 1,062.5 = 13,542.39.

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