Answer:
$63,260
Explanation:
Break-even point is the level of Activity where a firm neither makes a profit nor a loss.
Break even point (Dollars) = Fixed Costs / Contribution Margin Ratio
Contribution Margin Ratio
Is calculated as := Contribution / Sales
= (Sales less Variable Costs) / Sales
= ($43,000+$56,000-$11,980-$14,750) / $99,000
= $72,270/$99,000
= 0.73
Break even point (Dollars) = $46,180 / 0.73
= $63,260
Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,000 2 1,230 3 1,450 4 2,190 a. If the discount rate is 9 percent, what is the future value of these cash flows in Year 4
Answer:
Total= $7,114.32
Explanation:
Giving the following information:
Cash Flow:
1 $ 1,000
2 1,230
3 1,450
4 2,190
Discount rate= 9%
To calculate the future value, we need to use the following formula on each cash flow:
FV= PV*(1+i)^n
Cf1= 1,000*1.09^4= 1,411.58
Cf2= 1,230*1.09^3= 1,592.89
Cf3= 1,450*1.09^2= 1,722.75
Cf4= 2,190*1.09= 2,387.1
Total= $7,114.32
A mail-order house uses 18,000 boxes a year. Carrying costs are 60 cents per box a year, and ordering costs are $96. The following price schedule applies. Determine: a. The optimal order quantity. b. The number of orders per year.
Answer:
Hie, the price schedule is missing from your question however the important principles are explained below.
a. The optimal order quantity
Optimum order quantity is the order level that results in minimum ordering costs and holding costs.
Optimum order quantity = √ (2 × Annual Demand × Cost per order) / holding cost per unit
b. The number of orders per year.
orders per year = Annual Demand / optimal order quantity
This calculates the number of orders to be placed during the year at the optimum order quantity.
You’ve borrowed $23,072 on margin to buy shares in Ixnay, which is now selling at $41.2 per share. You invest 1,120 shares. Your account starts at the initial margin requirement of 50%. The maintenance margin is 35%. Two days later, the stock price changes to $41 per share.
a) Will you receive a margin call?b) How low can the price of Disney shares fall before you receive a margin call?
Answer:
(a) Since the percentage margin is more than maintenance margin, there would be no call
(b) A margin call would be received when the price is $15.26
Explanation:
(a) Total investment = $23,072 × [tex]\frac{100}{50}[/tex] = $46,144
Total shares = Total investment ÷ share price
= $46,144 ÷ $41.2 = 1,120
Value of share in market = new price × number of shares
= $41 × 1,120
= $45,920
Value of equity = Value of share in the market - borrowed cash
= $45,920 - $23,072
= $22,848
Percentage margin = Value of equity ÷ Value of shares
= ($22,848 ÷ $45,920) × 100%
= 49.76%
(b) Total number of shares = 1,120
Assumed value of shares = $1,120X
Borrowed fund = $23,072
Value of equity = $1,120X - $23,072
Margin = Value of equity ÷ Value of shares
0.35 = ($1,120X - $23,072) ÷ $1,120X
392X = $1,120X - $23,072
1512X = $23,072
X = $15.26
Cullumber Company issues $3.40 million, 20-year, 9% bonds at 98, with interest payable on December 31. The straight-line method is used to amortize bond discount. Collapse question part (a) Partially correct answer.
Prepare the journal entry to record the sale of these bonds on January 1, 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Jan. 1 Entry field with correct answer
Answer:
Dr cash $3,332,000
Dr discount on bonds payable $68,000
Cr bonds payable $3,400,000
Explanation:
The cash proceeds from the bond issuance is 98% of the face value.
Cash proceeds=$3,400,000*98%=$3,332,000.00
This meant that the bond was issued at a discount of $ 68,000.00 ($3,400,000-$3,332,000).
In recording the bond issuance, the cash account is debited with the cash proceeds of $3,332,000 with the discount on bonds payable debited with $68,000 while bonds payable is credited with the face value of $3,400,000
An advertising expenditure approach that initially formulates the advertising goals and defines the tasks to accomplish these goals is known as a(n) _____. Group of answer choices objective approach functional approach task approach percentage sale approach
Answer:
Option C. Task Approach
Explanation:
Task approach is the approach that is based on the goals that expenditure must achieve and helps in defining what the advertising goals must be and what must be the tasks for goals accomplishment.
The advertising expenditure that is based on the sales that the expenditure must generate is percentage sale approach and it is not the case here.
Objective Approach is based on the set objectives and hence helps in designing the marketing expenditure from each aspects which is again not the case here because only advertising expenses are considered here.
The Functional Approach is the dealing of the tasks of the company by separate independent functions which performs the task which is also not the case here.
The country of Rainbows exports seeds to the country of Farmington. Information for the quantity demanded (Qd) and the quantity supplied (Qs) for each country, in a world without trade, are given in the tables below.
Price ($) Qd Qs
40 150 120
50 130 130
60 110 150
70 100 170
80 90 180
Farmington:
Price ($) Qd Qs
40 310 190
50 300 220
60 290 250
70 280 280
80 270 310
What is the equilibrium price and quantity for each country?
Answer:
Rainbows :
Equilibrium price : $50
Equilibrium quantity: 130
Farmington
Equilibrium price : $70
Equilibrium quantity: 280
Explanation:
Equilibrium price is the price where the quantity demanded equals the quantity supplied.
Equilibrium quantity is the quantity at which quantity demanded is equal to the quantity supplied.
I hope my answer helps you
The Foundational 15 [LO10-1, LO10-2, LO10-3]
[The following information applies to the questions displayed below.]
Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hours and its standard cost card per unit is as follows:
Direct materials: 5 pounds at $9 per pound $ 45
Direct labor: 3 hours at $14 per hour 42
Variable overhead: 3 hours at $9 per hour 27
Total standard cost per unit $ 114
The planning budget for March was based on producing and selling 20,000 units. However, during March the company actually produced and sold 24,800 units and incurred the following costs:
Purchased 155,000 pounds of raw materials at a cost of $7.20 per pound. All of this material was used in production.
Direct laborers worked 65,000 hours at a rate of $15 per hour.
Total variable manufacturing overhead for the month was $612,300.
rev: 11_20_2017_QC_CS-109672
Foundational 10-12
What variable manufacturing overhead cost would be included in the company’s planning budget for March?
Answer:
$540,000
Explanation:
The amount on of variable manufacturing overhead cost to be included in the company's planning budget for March is budgeted production units of 20,000 units multiplied by standard direct labor hours of 3 hours per unit multiplied by cost of direct labor hour used for variable overhead which is $9.
budgeted variable overhead cost for March=20,000*3*$9=$540,000.00
However, the actual cost of variable manufacturing overhead for the month is $612,300,hence an adverse variance of $72,300 is recorded ($612,300-$540,000)
March 1 Paid monthly rent of $890. 3 Performed services for $100 on account. 5 Performed services for cash of $55. 8 Purchased equipment for $445. The company paid cash of $60 and the balance was on account. 12 Received cash from customers billed on March 3. 14 Paid wages to employees of $390. 22 Paid utilities of $54. 24 Borrowed $1,110 from Grafton State Bank by signing a note. 27 Paid $160 to repair service for plumbing repairs. 28 Paid balance amount owed from equipment purchase on March 8. 30 Paid $1,330 for six months of insurance. Journalize the transactions.
Answer:
Journal Entries
Date Account titles & explanations Debit Credit
Mar-01 Rent expense 890
To cash 890
Mar-03 Account receivable 100
To service revenue 100
Mar-05 Cash 55
Service revenue 55
Mar-08 Equipment 455
Cash 60
accounts payable 395
Mar-12 Cash 100
To account receivable 100
Mar-14 Wage expense 390
To cash 390
Mar-22 Utility expense 54
To cash 54
Mar-24 Cash 1,110
To notes payable 1,110
Mar-27 Repair & maintenance 160
To cash 160
Mar-28 Accounts payable 395
To cash 395
Mar-30 Prepaid Insurance 1,330
To cash 1,330
Explanation:
Joanna was laid off from her job 11 months ago. After searching for a job for months, Joanna finds a job but is only offered part-time work. Joanna would rather be working full-time. Economists would classify Joanna as
Answer:
Underemployed.
Explanation:
This is basically explained as not having enough payed job or working part time; it is also explained to not be usually able to maximize your skills or bring the best in you in the nearest future. In some cases it is a situation of insufficient employment pattern towards a skilled man or a worker in any field that is been presented as the case may be.
This can be seen in a part-time job despite having a burning passion for full time work, and also over-qualification.
Identify whether each of the following examples belongs to Money aggregates (M1 or M2). If an example belongs in both, be sure to write it down.
a. Sean has $30,000 in a money market account.
b. Musashi has a roll of quarters that he just withdrew from the bank to do laundry.
c. Yvette has $7,000 in a two-year certificate of deposit (CD).
Any type of money that falls into the M2 category is, by definition, part of M1 as well.
a. True
b. False
Answer: 1. a) M2
b) M1 and M2
c) M2
2. b. False
Explanation:
1.
M1 is a type of definition of money by economists that seek to explain the circulation of money in the economy. It includes cash and cash equivalents that are easy to convert into cash. This includes actual physical cash as well as Demand Deposits.
M2 is the definition that follows after M1. M2 by definition includes all the types of cash in M1 as well as deposits less than $100,000, non Institutional Money Market Fund investments and savings deposits. It isn't as liquid as M1 but is very important in forecasting inflation.
The classifications therefore are,
a) M2. This is M2 as it is a Non Institutional Money Market investment by Sean.
b) M1 and M2. This is physical cash and as such is part of M1 and as stated, anything part of M1 is part of M2 as well.
c) M2. As a deposit less than $100,000, the $7,000 that Yvette has in the CD classifies as M2.
2. False.
Money that is part of M2 is not automatically part of M1. M1 includes only physical cash as well as Demand Deposits while M2 has other forms such as savings deposits and small time deposits. Money that is part of M1 is automatically part of M2 and not the other way around.
At Jose's Bakersfield Espresso, Jose charges $3.50 for an average cup of espresso. If his fixed cost (salary, insurance, etc.) are $100,000 a year, and the variable cost for each cup of espresso are $1.25.
A) State the total fixed cost
B) State the variable cost
C)State the price
D) Given the available data, at what quantity will Jose's Bakersfield Espresso break even?
Answer:
A. $100,000
B. $1.25 per unit
C. $3.5 per unit
D. Break even point = 44,444 units
Explanation:
Break even point denotes that level of sales at which total costs equal or even total revenues.
Contribution represents the sales revenue in excess of variable costs to cover up for fixed costs.
Break even point in units = [tex]\frac{Fixed\ Cost}{Contribution\ per\ unit}[/tex]
Contribution per unit = Selling price per unit - Variable cost per unit
Contribution per unit = $3.50 - $1.25 = $2.25
Break even point = [tex]\frac{100,000}{2.25}[/tex] = 44,444 units approx.
Cost of goods manufactured equals $55,000 for 2020. Finished goods inventory is $2,000 at the beginning of the year and $5,500 at the end of the year. Beginning and ending work in process for 2020 are $4,000 and $5,000, respectively. How much is cost of goods sold for the year?
Answer:
$51,500
Explanation:
The computation of the cost of goods sold for the year is shown below:
As we know that
Cost of Goods Sold = Beginning balance of Finished Goods Inventory + Cost of Goods Manufactured – Ending balance of Finished Goods Inventory
= $2,000 + $55,000 - $5,500
= $51,500
We simply applied the cost of goods sold formula by taking the three items into the computation part
A furniture factory's employees work overtime in February to finish an order that is sold on February 28. The office sends a statement to the customer in early March and payment is received by mid-March. The overtime salaries should be expensed in:______
a) the period when the workers receive their cheques
b) either in February or March depending on when the pay period ends
c) February.
d) March.
Answer: February
Explanation:
Overtime is the amount of time that a person works beyond the normal working hours. From the question, we realise that a furniture factory's workers work overtime in February in order to finish an order that was sold on February 28.
Based on this scenario, the overtime wages should be expensed in February. This is because expenses are recognised when incurred while incomes are recognised when earned. Since the expenses are incurred in February, the overtime salaries should be expensed in February.
In contemporary Japanese society, a group is associated with:______
a. the immediate family.
b. gender roles.
c. traditional friendships.
d. the company a person works for.
e. the educational environment.
Answer:
d. the company a person works for.
Explanation:
In contemporary Japanese society, a group is associated with the company a person works for.
A group typically comprises of two or more people who share some things in common such as identity, aims, interest and are willing to work in an accord.
Hence, the company or organization an individual works for, is usually considered to be a group in the contemporary Japanese society.
This is so because employees are blinded by a common goal, aim, interest to allow them work effortlessly, effectively and efficiently together.
In contemporary Japanese society, a group is associated with the company a person works for.
Japanese culture is known for its principle of working together as a group. Japan is known to be collectivistic nation as they focus on what is good for the group instead of the individual.
In Japanese society, there is self-employment in agriculture and business as well as low-income and unpaid family workers who work together in afamily like manner.
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An increase in savings by consumers is seen as a(n):_________.
a. decrease in investment spending in the economy increase in government spending in the economy.
b. decrease in exports in the economy.
c. increase in imports in the economy.
d. leakage in spending in the economy.
Answer:
d. leakage in spending in the economy.
Explanation:
In the economy firms spend money on labour, input, and business expansion. While in the personal household there is spending on food, rent, and other expenses.
When money is taken out of this cycle and not used for a particular purpose then it is considered to be a leakage.
Leakages include taxes savings and imports.
Savings occurs when an individual has excess income and decides to reserve some for a future use. This fund does not have a particular use in the economy so it is considered to be a leakage.
Answer:
D. Leakage in spending in the economy.
Explanation:
It is observed that if consumers have a rise in their wages, they tend to benefit and this helps the economic situation of the said country or nation as seen in some economies of the world lately. Also alteration in interest rates can have different consumer effects which ranges from spending habits depending on a number of factors to other habits that may end up boosting the economy also current rate levels, expected future rate changes, confidence of the consumer, and the overall health of the economy.
A movie studio sells the latest movie on DVD to VideosRUs at $10 per DVD. The studio's cost of production is $1 per DVD. VideosRUs prices the videos at $19.99 to its customers. The studio offers to buy back unsold DVDs for $5. The studio must pay $.50 disposal fee for all returned DVDs. How many videos should VideosRUs order if the current sales forecast for the DVD is that demand will be normal with a mean of 10,000 and a standard deviation of 5,000
We want to find the number of DVDs that maximizes expected profit. To do this, we need to calculate the expected profit for different quantities of DVDs and choose the one that gives the highest profit. By selling 7,000 DVDs get a maximum profit.
What is the profit maximization method?To ensure the best output and price levels are realized in order to maximize returns, business firms engage in the process of profit maximization. In order to achieve its profit objectives, the company modifies important variables including sale price, production costs, and output levels.
To determine how many videos VideosRUs should order, we need to calculate the expected profit for each DVD sold.
The profit per DVD for VideosRUs can be calculated as follows:
Revenue per DVD = $19.99
Cost per DVD = $10
Profit per DVD = Revenue per DVD - Cost per DVD = $19.99 - $10 = $9.99
The studio's profit per DVD can be calculated as follows:
Revenue per DVD = $10 (the amount they sold the DVD to VideosRUs for)
Cost per DVD = $1
Profit per DVD = Revenue per DVD - Cost per DVD = $10 - $1 = $9
To calculate the probability of selling, we need to use the normal distribution with a mean of 10,000 and a standard deviation of 5,000. Since we don't know the actual demand, we can use a probability distribution to estimate the likelihood of selling different quantities of DVDs.
The required calculation is shown in the file given attached below.
Thus, selling 7000 DVDs get the highest profit.
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Tipton Processing maintains its internal inventory records using average cost under a perpetual inventory system. The following information relates to its inventory during the year: Jan. 1 Inventory on hand—80,000 units; cost $4.25 each. Feb. 14 Purchased 120,000 units for $4.50 each. Mar. 5 Sold 150,000 units for $14.00 each. Aug. 27 Purchased 50,000 units for $4.80 each. Sep. 12 Sold 60,000 units for $14.00 each. Dec. 31 Inventory on hand—40,000 units. Required: 1. Determine the amount Tipton would calculate internally for ending inventory and cost of goods sold using average cost under a perpetual inventory system. 2. Determine the amount Tipton would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system. 3. Determine the amount Tipton would report for its LIFO reserve at the end of the year. 4. Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $8,000.
Answer:
1. Determine the amount Tipton would calculate internally for ending inventory and cost of goods sold using average cost under a perpetual inventory system.
COGS = $936,000Ending inventory = $184,0002. Determine the amount Tipton would report externally for ending inventory and cost of goods sold using last-in, first-out (LIFO) under a periodic inventory system.
COGS using LIFO = $950,000Ending inventory = $170,0003. Determine the amount Tipton would report for its LIFO reserve at the end of the year.
$22,0004. Record the year-end adjusting entry for the LIFO reserve, assuming the balance at the beginning of the year was $8,000.
Dr Cost of goods sold 14,000
Cr LIFO reserve 14,000
Explanation:
1)
Jan. 1 Inventory on hand—80,000 units; cost $4.25 each.
Feb. 14 Purchased 120,000 units for $4.50 each.
Mar. 5 Sold 150,000 units for $14.00 each.
COGS = {[(80,000 x $4.25) + (120,000 x $4.50)] / 200,000} x 150,000 = $660,000
remaining inventory 50,000 units at $4.40 = $220,000
Aug. 27 Purchased 50,000 units for $4.80 each.
Sep. 12 Sold 60,000 units for $14.00 each.
COGS = {[(50,000 x $4.40) + (50,000 x $4.80)] / 100,000} x 60,000 = $276,000
Dec. 31 Inventory on hand—40,000 units at $4.60 = $184,000
2)
Jan. 1 Inventory on hand—80,000 units; cost $4.25 each.
Feb. 14 Purchased 120,000 units for $4.50 each.
Mar. 5 Sold 150,000 units for $14.00 each.
Aug. 27 Purchased 50,000 units for $4.80 each.
Sep. 12 Sold 60,000 units for $14.00 each.
Dec. 31 Inventory on hand—40,000 units at $4.60 = $184,000
total units sold = 210,000
COGS using LIFO = (50,000 x $4.80) + (120,000 x $4.50) + (40,000 x $4.25) = $240,000 + $540,000 + $170,000 = $950,000
Ending inventory = 40,000 x $4.25 = $170,000
3) LIFO reserve = FIFO inventory - LIFO inventory
FIFO inventory = $192,000 - $170,000 = $22,000
4) $22,000 - $8,000 = $14,000
The gross earnings of the factory workers for Oriole Company during the month of January are $72,000. Of the total accumulated cost of factory labor, 84% is related to direct labor and 16% is attributable to indirect labor.(a)Record the factory labor costs for the month of January.(b)Assign factory labor to production.
Answer:
a.
Wages Expense $72,000 (debit)
Wages Payable $72,000 (credit)
b.
Work In Process : Direct Labor $60,480 (debit)
Work In Process : Direct Labor $11,520 (debit)
Wages Payable $72,000 (credit)
Explanation:
The factory labor cost is a manufacturing cost and is included in product valuation.
(a)Record the factory labor costs
Here we have to recognize the expense incurred during the period and the liability since settlement of amount owing to workers has not yet been made
Wages Expense $72,000 (debit)
Wages Payable $72,000 (credit)
(b)Assign factory labor to production
Here we accumulate the cost to the Work In Process of manufacture taking not of cost classification.
Work In Process : Direct Labor $60,480 (debit)
Work In Process : Direct Labor $11,520 (debit)
Wages Payable $72,000 (credit)
Bill Casler bought a $2000, 9-month certificate of deposit (CD) that would earn 8% annual simple interest. Three months before the CD was due to mature, Bill needed his CD money, so a friend agreed to lend him money and receive the value of the CD when it matured.
Required:
a. What is the value of the CD when it matures?
b. If their agreement allowed the friend to earn a 10% annual simple interest return on his loan to Bill, how much did Bill receive from his friend
Answer:
a. What is the value of the CD when it matures?
$2,120b. If their agreement allowed the friend to earn a 10% annual simple interest return on his loan to Bill, how much did Bill receive from his friend?
$2,068.29Explanation:
interests earned by the CD = $2,000 x 8% x 9/12 = $120
the value of the CD at maturity = $2,000 (principal) + $120 (interests) = $2,120
if the friend wanted to earn 10% on the loan, that is equivalent to 10% x 3/12 = 2.5% for the 3 months
the amount of money received by Bill from his friend = CD's maturity value / (1 + expected interest) = $2,120 / (1 + 2.5%) = $2,120 / 1.025 = $2,068.29
Journalize the following five transactions for Nexium & Associates, Inc. Omit explanations.
March 1 - Bills are sent to clients for services provided in February in the amount of $800.
March 9 - Corner Office, Inc. delivers office furniture ($1,060) and office supplies ($160) to Nexium leaving an invoice for $1,220.
March 15 - Payment is made to Corner Office, Inc. for the furniture and office supplies delivered on March 9.
March 23 - A bill for $430 for electricity for the month of March is received and will be paid on its due date in April.
March 31 – Salaries of $850 are paid to employees.
For a compound transaction, if an amount box does not require an entry, leave it blank or enter "0".
Answer:
Nexium & Associates Journal entries
March 1
Dr Accounts Receivable800
Cr Service Revenue 800
March 9
Dr Office Furniture1,060
Cr Office Supplies 160
Cr Accounts Payable1,220
March 15
Dr Accounts Payable1,220
Cr Cash1,220
March 23
Dr Electricity Expense430
Cr Accounts Payable430
March 31
Dr Salaries Expense850
Cr Cash850
Explanation:
The details given about Nexium & Associates are straight forward and required no further
adjustment.
Answer:
Explanation:
Journal to record the five transactions for Nexium and Associates, Inc.
Account Particulars Debit Credit
March 1
Accounts Receivable $800
Services Revenue $ 800
March 9
Office Furniture $1,060
Office Supplies 160
Accounts Payable 1,220
March 15.
Accounts Payable 1,220
Cash 1,220
March 23.
Electricity Expense $430
Accounts Payable $430
March 31
Salaries Expense $850
Cash $850
Among the best-known companies that use customer satisfaction surveys to evaluate service quality in various industries is:___________
a) J.D. Power and Associates
b) McDonald’s
c) American Express
d) Alaska Airlines
e) None of the above"
Answer: a) J.D. Power and Associates
Explanation: As there is an undue emphasis on measuring objective output performance by companies and organizations, data is collected and analysed. This data helps measure customer satisfaction which is a major predictor of repurchase of products or services. However, customer satisfaction is to a greater extent, largely influenced by performance evaluations of product, of quality, and of value. J.D. Power and Associates, a marketing firm is well known among the best-known companies as one that uses customer satisfaction surveys to evaluate service quality in various industries. Through its automotive research, it collects consumer responses for a variety of surveys which it uses to award car models rankings.
Krisp Systems decides to move production to a developing country where they are free to pump pollutants into the atmosphere without legal restriction. By doing this, the company is contributing to:_______
a. corporate social responsibility.
b. corruption.
c. cultural relativism.
d. the global tragedy of the commons.
e. sustainability
Answer: the global tragedy of the commons
Explanation:
The tragedy of the commons is a term that is used to refer to a situation whereby resources that are held in common by everyone but owned by no one and is therefore overused by individuals which results in degradation.
Krisp Systems moves production to a developing country where they can pump pollutants into the atmosphere without any legal restriction will lead to
global tragedy of the commons. Here, the global tragedy is that Krisp system will only work in their own interest and exploit the resources at the detriment of the people which will lead to pollution.
Answer:
d. the global tragedy of the commons.
Explanation:
The tragedy of the commons is a situation that arises as a result of the selfish interest of people who exploit the shared economic resources at the expense and detriment of other users of the resources in the environment. Activities which result in Tragedy of the commons would cause pollution of the environment, excessive consumption, as well as the depletion of resources. A way to curb this sort of exploitation is by the regulation of the activities of companies by the government. This would ensure that certain limits are not overstepped.
When Krisp Systems decides to bypass this regulation by moving to a developing country where they are free to pump pollutants into the atmosphere, they are in effect contributing to the tragedy of the commons.
Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $156,000 of services on account. In 2021, the company wrote off uncollectible accounts of $6,300. By the end of 2021, cash collections on accounts receivable totaled $132,300. Pincus estimates that 10% of the accounts receivable balance at 12/31/2021 will prove uncollectible.
Required:
1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Journal entry worksheet
Record the write-offs of allowance for uncollectible accounts during 2021.
Note: Enter debits before credits.
Event General Journal Debit Credit
1
record to recognize bad debt expense for 2021.
Note: Enter debits before credits.
Event General Journal Debit Credit
2
Answer: the answer is given below
Explanation:
It should be noted that the account receivable ending balance was calculated as:
Credit sales = 156,000
Less: collection of account= 132,300
Less: written off = 6,300
= 17,400
The bad debt expense was calculated as:
= (17,400 × 10%) + 6300
= (17400 × 0.1) + 6300
= 1740 + 6300
= 8040
Other explanation have been attached.
A couple owns a life insurance policy with a Children’s Term rider. Their daughter is reaching the maximum age of dependent coverage, so she will have to convert to permanent insurance in the near future. Which of the following will she need to provide for proof of insurability?
1. Medical exam and parental medical history
2. Medical exam
3. Proof of insurability is not required
4. Her parent's federal income tax receipts
Answer:
3. Proof of insurability is not required
Explanation:
Proof of insurability is not required because if a children's term rider is attached to a life insurance policy, then children are protected or covered by this insurance till they reach a particular age, which happens to be the maximum age stated in the policy. From that age they can convert their insurance coverage to a permanent
life insurance policy without having to issue proof of insurability as it would not be required because a child rider locks in future insurability. The can child rider can be purchased with an individual life insurance policy.
Consider a linear, upward sloping supply curve. If the supply curve shifts upward, then: the price elasticity of supply will increase. the price elasticity of supply will increase if the slope of the supply curve is greater than one and the lowest price needed to induce firms to supply anything is positive. the price elasticity of supply will increase if the slope of the supply curve is greater than one. the price elasticity of supply will be constant. none of the above
Answer:
The answer is: the price elasticity of supply will increase if the slope of the supply curve is greater than one and the lowest price needed to induce firms to supply anything is positive
Explanation:
The law of supply is the higher the price the higher the quantity supplied and vice-versa. An increase in supply shifts the supply curve to the right and a decrease shifts the supply curve to the left.
Price elasticity of supply is the ratio of percentage change in quantity supplied of a good to percentage change in price of the good.
The upward shift of supply curve tells us that supply often decreases when the costs of production increase, so producers need to set a higher price inorder to cover the higher cost of inputs(cost of production) and vice-versa for the downward shift.
So considering a linear, upward sloping supply curve. If the supply curve shifts upward, then the price elasticity of supply will increase if the slope in greater than one(supply is elastic) indicating a high responsiveness to changes in price. And also, the lowest price for the goods must be encouraging (positive) so as to serve as motivation to produce.
Note: A high price tells producers that a good is in demand and they should make more and vice-versa
The law of supply is the higher the price the higher the quantity supplied and vice-versa. An increase in supply shifts the supply curve to the right and a decrease shifts the supply curve to the left.
Correct option is C.
"the price elasticity of supply will increase if the slope of the supply curve is greater than one and the lowest price needed to induce firms to supply anything is positive."
So, considering a linear, upward sloping supply curve. If the supply curve shifts upward, then the price elasticity of supply will increase if the slope in greater than one(supply is elastic) indicating a high responsiveness to changes in price. And also, the lowest price for the goods must be encouraging (positive) so as to serve as motivation to produce.
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Heidi Ganahl says Camp Bow Wow promotes a scrappy "we-can-conquer-all" work attitude that helps individuals overcome challenges. This attitude is especially useful for businesses that exist within:_____
Answer:
Simple environments
Explanation:
Answer:
Simple enviroments
Explanation:
Wildhorse Taxi Service uses the units-of-activity method in computing depreciation on its taxicabs. Each cab is expected to be driven 144,000 miles. Taxi 10 cost $29,000 and is expected to have a salvage value of $200. Taxi 10 was driven 31,000 miles in 2021 and 33,500 miles in 2022. Determine the depreciation cost.
Answer:
Depreciation expense/cost
For 2021 = $6200
For 2022 = $6700
Explanation:
Depreciation expense is the systematic allocation of an asset's cost over its estimated useful life. The depreciation expense is calculated using various methods. The units of activity method charges a depreciation based on the usage of the asset in a particular period as a proportion to its estimated useful life calculated in the form of total usage expected.
The formula for units of activity depreciation per period is,
Depreciation expense = [(Cost - Salvage value) / Total estimated life time activity of the asset] * Activity performed during the period
Depreciation expense-Taxi 10:
For 2021 = [(29000 - 200) / 144000] * 31000 = $6200
For 2022 = [(29000 - 200) / 144000] * 33500 = $6700
During 2021, a company sells 500 units of inventory for $95 each. The company has the following inventory purchase transactions for 2021:Calculate cost of goods sold and ending inventory for 2021 assuming the company uses the weighted-average cost method
Answer:
cost of goods sold = $36,285
ending inventory = $1,742
Explanation:
when you use the weighted average cost method you have to calculate the COGS using the total number of units and the total amount paid for them.
beginning inventory = 71 units for $5,325
purchase 1 = 262 units for $18,864
purchase 2 = 187 units for $13,838
total 524 units for $38,027
cost per unit = $38,027 / 524 units = $72.57
cost of goods sold = 500 units x $72.57 = $36,285
ending inventory = 24 units x $72.57 = $1,741.68 ≈ $1,742
Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $592,000, have an fifteen-year useful life, and have a total salvage value of $59,200. The company estimates that annual revenues and expenses associated with the games would be as follows: Revenues $ 300,000 Less operating expenses: Commissions to amusement houses $ 70,000 Insurance 66,000 Depreciation 35,520 Maintenance 90,000 261,520 Net operating income $ 38,480
Required:
1a. Compute the pay back period associated with the new electronic games.
1b. Assume that Nick’s Novelties, Inc., will not purchase new games unless they provide a payback period of five years or less. Would the company purchase the new games?
No
Yes
2a. Compute the simple rate of return promised by the games. (Round your answer to 1 decimal place. i.e. 0.123 should be considered as 12.3%.)
2b. If the company requires a simple rate of return of at least 8%, will the games be purchased?
No
Yes
Answer and Explanation:
1a. The computation of the payback period is shown below:
Payback period = Initial investment ÷ Cash inflow
where,
Initial investment is $592,000
And, the cash flow is
= Depreciation expense + net operating income
= $35,520 + $38,480
= $74,000
So, the payback period is
= $592,000 ÷ $74,000
= 8 years
1b. As we can see that the payback period is of 8 years but the given payback period is 5 years so the company should not purchased the new games
2a. The computation of the simple rate of return is shown below:
Payback period = Net operating income ÷ Initial investment
= $38,480 ÷ $592,000
= 6.5%
2b. As we can see that the simple rate of return is 6.5% but the given simple rate of return is minimum 8% so the company should not purchased the new games
1a. The computation of the payback period is given below:
Payback period = Initial investment ÷ Cash inflow
Here,
Initial investment is $592,000
And, the cash flow is
= Depreciation expense + net operating income
= $35,520 + $38,480
= $74,000
Thus , the payback period is
= $592,000 ÷ $74,000
= 8 years
1b. Since the payback period is of 8 years but the given payback period is 5 years due to this the company should not purchased the new games.
2a. The calculation of the simple rate of return is given below:
Payback period = Net operating income ÷ Initial investment
= $38,480 ÷ $592,000
= 6.5%
2b. Since the simple rate of return is 6.5% but the given simple rate of return is minimum 8% due to this the company should not purchased the new games.
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MFG Manufacturing sells a product for $40 per unit. The production cost of the product is $21 per unit: direct materials of $8, direct labor of $7, variable overhead of $4 and fixed overhead of $2. The fixed overhead per unit comes from dividing $500,000 of fixed factory overhead by 250,000 units produced. In addition, MFG pays $3 for shipping each unit sold. Finally, MFG has fixed costs outside the factory (such as office building depreciation and salaries) that total $200,000 per year. Assuming breakeven in units was correctly computed to be 20,000 units, breakeven in dollars is:
Answer:
Break-even sales =$800,000
Explanation:
The break-even sales is the amount of revenue that a business must generate that would equate its total costs to total revenue. At the break even sales, the contribution is exactly to total iced cost, and the business makes no profit or loss
Break-even (units) = Total general fixed cost /(selling price- variable cost)
Break-even sales = Break-even (in units) × Selling price
Break-even sales = 20,000 × $40 =$800,000
Break-even sales=$800,000
