Answer and Explanation:
The indication and effect of each transaction are as follows
Particulars Element Item Direction
1. Received cash in exchange
for common stock, $18,000. Asset Cash Increases
Common Stock Increases
It increased both assets and the common stock
2. Paid advertising expense,
$4,850. Expense Advertising Expense Increases
Asset Cash Decreases
It increased the expenses and reduced the assets
3. Purchased supplies on account,
$2,100. Asset Supplies Increases
Liability Accounts Payable Increases
It increased the assets and also increased the liabilities
4. Billed customers for delivery
services on account, $14,700. Asset Accounts Receivable Increases
Revenue Delivery Service Fees Increases
It increased the assets and the revenue is also increased
5. Received cash from
customers on account, $8,200. Asset Cash Increases
Asset Accounts Receivable Decreases
It increased the assets in cash but it reduced the assets i.e account receivable
Answer: I took this class, these are the answers
Explanation:
The indication and effect of each transaction are as follows
Particulars Element Item Direction
1. Received cash in exchange
for common stock, $18,000. Asset Cash Increases
Common Stock Increases
It increased both assets and the common stock
2. Paid advertising expense,
$4,850. Expense Advertising Expense Increases
Asset Cash Decreases
It increased the expenses and reduced the assets
3. Purchased supplies on account,
$2,100. Asset Supplies Increases
Liability Accounts Payable Increases
It increased the assets and also increased the liabilities
4. Billed customers for delivery
services on account, $14,700. Asset Accounts Receivable Increases
Revenue Delivery Service Fees Increases
It increased the assets and the revenue is also increased
5. Received cash from
customers on account, $8,200. Asset Cash Increases
Asset Accounts Receivable Decreases
It increased the assets in cash but it reduced the assets i.e account receivable
In 2021, the Marion Company purchased land containing a mineral mine for $1,150,000. Additional costs of $448,000 were incurred to develop the mine. Geologists estimated that 310,000 tons of ore would be extracted. After the ore is removed, the land will have a resale value of $110,000.
To aid in the extraction, Marion built various structures and small storage buildings on the site at a cost of $102,300. These structures have a useful life of 10 years. The structures cannot be moved after the ore has been removed and will be left at the site. In addition, new equipment costing $51,500 was purchased and installed at the site. Marion does not plan to move the equipment to another site, but estimates that it can be sold at auction for $5,000 after the mining project is completed.
In 2021, 41,000 tons of ore were extracted and sold. In 2022, the estimate of total tons of ore in the mine was revised from 310,000 to 397,500. During 2019, 71,000 tons were extracted, of which 51,000 tons were sold.
Required:
a. Compute depletion and depreciation of the mine and the mining facilities and equipment for 2018 and 2019. Marion uses the units-of-production method to determine depreciation on mining facilities and equipment.
b. Compute the book value of the mineral mine, structures, and equipment as of December 31, 2019.
Answer:
Marion Company
a1) Depletion of the Mine for two years:
2018: 41,000/310,000 * $1,488,000 = $196,800
2019: 51,000/397,500 * $1,488,000 = $190,913
a2) Depreciation of Mining Facilities:
2018: 41,000/310,000 *$102,300 = $13,530
2019: 51,000/397,500 * $102,300 = $13,125
a3) Depreciation of Mining Equipment
2018: 41,000/310,000 *$46,500 = $6,150
2018: 51,000/397,500 * $46,500 = $5,966
b) Book Values December 31, 2019:
1) Mineral Mine:
Cost = $1,598,000
Accumulated Depletion $387,713 (2018 & 2019)
Book Value = $1,210,287
b2) Structures:
Cost = $102,300
Accumulated Depreciation $26,655 (2018 & 2019)
Book Value = $75,645
b3) Equipment:
Cost = $51,500
Accumulated Depreciation $12,116
Book Value = $39,384
Explanation:
a) Cost of Mine:
Land $1,150,000
Development $448,000
Less Resale ($110,000)
Total cost = $1,488,000
b) Cost of Facilities or Structure:
Building cost = $102,300
c) Cost of Equipment = $51,500 - $5,000 = $46,500
d) Depletion is an accrual accounting technique used to allocate the cost of extracting natural resources. It is like depreciation and amortization, which lower the cost value of an asset incrementally through periodic charges to income.
e) Depreciation is an accounting method for allocating the cost (the value used up) of a tangible or physical asset over its useful life.
On May 1, 2021, Bonita Industries declared and issued a 10% common stock dividend. Prior to this dividend, Bonita had 195000 shares of $1 par value common stock issued and outstanding. The fair value of Bonita's common stock was $24 per share on May 1, 2021. As a result of this stock dividend, Bonita's total stockholders' equity:______
a. decreased by $480700.
b. increased by $480700.
c. did not change.
d. decreased by $23000.
Answer:
No Answer in Option but the Equity decreases by $468,000
Explanation:
From the question,
Common Stock that Bonita industries had at par $1 = $195,000
They issued a common stock dividend= 10%
The Value of Stock dividend = 10/100 * 195,000 = $19,500
The fair value of Bonita's common stock was $24 per share on May 1, 2021. Hence, the stock dividend will be 19,500 * 24 = $468,000
We must understand that Stock dividend are issued from Retained Earning, hence as a result of this stock dividend, Bonita's total stockholder equity decreased by $468,000
To sum up international trade theory, we can say that the primary reason for trade is
Answer:
The primary reason for trade is for the economic development of a country.
Explanation:
Trade makes a significant and necessary contribution to the economy and the country's development particularly in underdeveloped countries. The rapid progress of underdeveloped countries in the Industrial field is due to their exports. In most countries, such would represent a significant share of their gross domestic product (GDP).
Requirements
1. Record each transaction in the journal using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Land; Furniture; Accounts Payable; Utilities Payable; Unearned Revenue; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
2. T-accounts have been opened for each of the accounts. Post the journal entries to the T-accounts, using transaction dates as ledger accounts. Label the balance of each account Bal posting references in the ledger accounts.
3. Prepare the trial balance of Beth Stewart, Designer, as of November 30, 2018.
Nov.1 Received $41,000 cash and issued common stock to Stewart Nov. 1
4 Purchased office supplies, $1,200, and furniture, $2,300, on account.
6 Performed services for a law firm and received $2,100 cash.
7 Paid $27,000 cash to acquire land to be used in operations.
10 Performed services for a hotel and received its promise to pay the $800 within one week.
14 November 4 on account Paid for the furniture purchased 14 on.
15 Paid assistant's semimonthly salary, $1,470.
17 Received cash on account, $500.
20 Prepared a design for a school on account, $680.
25 Received $1,900 cash for design services to be performed in December.
28 Received $3,100 cash for consulting with Plummer & Gordon.
29 Paid $840 cash for a 12-month insurance policy starting on December 1.
30 Paid assistant's semimonthly salary, $1,470.
30 Paid monthly rent expense, $650.
30 Received a bill for utilities, $650. The bill will be paid next month
30 Paid cash dividends of $2,800.
Post the journal entries to the T-accounts, using transaction dates as posting references in the ledger accounts. Label the balance of each account Bal.We will post to the accounts one transaction at a time. Begin by posting the events from the 1st.July1: Yangcontributed $64,000 cash to the business in exchange for Common Stock.
Date Accounts Debit Credit
Jul.1 Cash 68,000
Commom Stock 68,000
Journal entries:
Nov. 1, common stocks issued
Dr Cash 41,000
Cr Common stock 41,000
Nov. 4, office supplies and furniture purchased
Dr Office supplies 1,200
Dr Furniture 2,300
Cr Accounts payable 3,500
Nov. 6, service revenue
Dr Cash 2,100
Cr Service revenue 2,100
Nov. 7, land purchased
Dr Land 27,000
Cr Cash 27,000
Nov. 10, service revenue
Dr Accounts receivable 800
Cr Service revenue 800
Nov. 14, payment of furniture
Dr Accounts payable 2,300
Cr Cash 2,300
Nov. 15, wages expense
Dr Wages expense 1,470
Cr Cash 1,470
Nov. 17, collection of accounts receivable
Dr Cash 500
Cr Accounts receivable 500
Nov. 20, service revenue
Dr Accounts receivable 680
Cr Service revenue 680
Nov. 25, received cash in advance
Dr Cash 1,900
Cr Unearned revenue 1,900
Nov. 28, service revenue
Dr Cash 3,100
Cr Service revenue 3,100
Nov. 29, purchase prepaid insurance
Dr Prepaid insurance 840
Cr Cash 840
Nov. 30, wages expense
Dr Wages expense 1,470
Cr Cash 1,470
Nov. 30, rent expense
Dr Rent expense 650
Cr Cash 650
Nov. 30, utilities expense
Dr Utilities expense 650
Cr Accounts payable 650
Nov. 30, dividends distributed
Dr Retained earnings 2,800
Cr Dividends payable 2,800
Dr Dividends payable 2,800
Cr Cash 2,800
Since there is not enough space here, I prepared an excel spreadsheet with the T-accounts.
In order to prepare a trial balance sheet, I must first prepare an Income Statement:
Service revenue $6,680
Wages expense ($2,940)
Rent expense ($650)
Utilities expense ($650)
Net income: $2,440
Retained earnings = $2,440 (net income) - $2,800 (dividends) = ($360)
STEWART CO.
BALANCE SHEET
NOV. 30, 2018
Assets:
Cash $12,070
Accounts receivable $980
Prepaid insurance $840
Office supplies $1,200
Furniture $2,300
Land $27,000
Total assets: $44,390
Liabilities and stockholders' Equity:
Accounts payable $1,850
Unearned revenue $1,900
Common stock $41,000
Retained earnings ($360)
Total liabilities and stockholders' equity: $44,390
Shulman Inc. has the following data, in thousands. Assuming a 365-day year, what is the firm's cash conversion cycle? Annual sales = $45,000 Annual cost of goods sold = $30,000 Inventory = $4,500 Accounts receivable = $1,800 Accounts payable = $2,500
Answer:
38.93
Explanation:
Firm Cash Conversion Cycle = Inventory Conversion Period + Average Collection Period - Payable Deferral Period
Inventory Conversion Period = 365 * Inventory / Annual cost of goods sold
365 days * 4500 / 30000 = 54.75
Average Collection Period = 365 days * Account receivable / sales
= 365 * 1800 / 45000 = 14.60
Payable Deferral Period = 365 days * Account payable / sales = 365 * 2500 / 30000 = 30.42
Hence, Firm Cash Conversion Cycle = 54.75 + 14.60 - 30.42 = 38.93
The firm Cash Conversion Cycle is 38.93
A worker can choose high (H) or low (L) effort. If the worker chooses high effort, she incurs a personal cost of 1. In this case, output is high with probability one. If the worker chooses low effort, she incurs a personal cost of 0. In this case, output is low with probability one. When output is high, the firm receives revenue of O and zero otherwise. Can the same outcome be achieved when effort is unobservable?
A. Yes, because the firm would find it wothwhile to pay the bonus for high effort.
B. No, because for any bonus offered, the worker will claim to have exerted high effort.
C. No, because the firm has to pay the bonus based on output.
D. Yes, because effort can be perfectly inferred from output, which is observable.
Answer:
B. No, because for any bonus offered, the worker will claim to have exerted high effort.
Explanation:
This question required some basic reasoning about how human beings function. We all like to receive things from others, and if they are free (or without cost or effort) the more we like them. And we all believe that good things should happen to us and that we are entitled to receive good things. That is the basic reason why jealousy and envy exist.
Now, back to our case. If the company simply hands out bonuses to everyone regardless of their personal effort, every single worker will be convinced that they really deserve the bonus. Even if the worker didn't even try to do his best or didn't do anything right at all, he/she will be convinced that they deserve the bonus. Each and every single worker will claim that the reason they are receiving the bonus is due to their work. Everyone will say that they worked hard and their work was good.
Imagine this happened at school. One day, the teacher decides to give As to half the class in alphabetical order (or any other random way). The half that got the As will believe that they deserved the As while the other half will be very unhappy. If everyone got As, then everyone will be convinced that thy got As because they deserved them.
Thomlin Company forecasts that total overhead for the current year will be $11,597,000 with 164,000 total machine hours. Year to date, the actual overhead is $7,833,000 and the actual machine hours are 83,000 hours. The predetermined overhead rate based on machine hours is Round the factory overhead rate to the nearest dollar before multiplying by the number of hours. a.$94 per machine hour b.$48 per machine hour c.$71 per machine hour d.$140 per machine hour
Answer: c.$71 per machine hour
Explanation:
The Pre-determined Overhead rate is the rate Thomlin Company forecasted that the company would incur total overhead for the current year.
They forecasted total overhead of $11,597,000 with 164,000 total machine hours.
Since the rate is based on Machine Hours the rate would be,
= Total Forecasted Overhead / Total Forecasted Machine Hours
= 11,597,000 / 164,000
= 70.71
= $71
How did industrialization and unionization need to outsourcing
Answer: It is often assumed that manufacturing workers in developing countries, as recipients of outsourced jobs, would achieve economic benefits and organizational power. The author argues that job growth in developing countries through outsourcing to competing firms has often actually resulted in declining unionization and lower wage rates relative to traditional, integrated manufacturing firms. Using time-series data on union membership from 1980-2003 for Honduras and El Salvador as well as 2004 Household Survey Data for El Salvador, he examines the determinants of unionization rates and wages in the manufacturing sectors. He finds that that competitive outsourcing hurts labor at the plant-level in three ways: 1) it reduces labor's strike leverage by geographically dispersing the production process; 2) it increases the threat of plant mobility by decreasing plant-level investments; and 3) it increases labor costs relative to total costs, which creates an incentive for employers to keep wages low and unions out.
A company’s trial balance included the following account balances: Accounts Payable $ 19,207 Accounts Receivable 81,336 Cash 73,324 Income Tax Payable 3,512 Inventory 25,816 Note Payable, due in two years 1,709 Equipment 54,128 Stockholders’ Equity 202,808 Supplies 5,512 Wages Payable 12,880 What is the amount of the current ratio? (Round your answer to 2 decimal places.)
Answer:
5.22
Explanation:
The formula for calculating the current ratio is as follows:
Current ratio = Current assets / Current liabilities .......... (1)
From the question, we have:
Current assets = Accounts Receivable + Cash + Inventory + Supplies = $81,336 + $73,324 + $25,816 + $5,512 = $185,988.
Note: Equipment is not a current asset but a fixed asset.
Current liabilities = Accounts Payable + Income Tax Payable + Wages Payable = $19,207 + $3,512 + $12,880 = $35,599.
Note: Note Payable, due in two years is not a current liability but a long term liability since it is not payable within one year.
Substituting the values into equation (1) we have:
Current ratio = $185,988 / $35,599 = 5.22
The current ratio of 5.22 indicates that the company more than enough current assets, 5.22 times, to pay of its current liabilities.
Prince Electronics, a manufacturer of consumer electronic goods, has five distribution centers in different regions of the country. For one of its products, a highspeed modem priced at $330 per unit, the average weekly demand at each distribution center is 70 units. Average shipment size to each distribution center is 350 units, and average lead time for delivery is 2 weeks. Each distribution center carries 2 weeks' supply as safety stock but holds no anticipatory inventory.a. On average, how many dollars of pipeline inventory will be in transit to each distribution center?b. How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers?
Answer:
a. $231,000
b. 2,450 units
Explanation:
a. On average, how many dollars of pipeline inventory will be in transit to each distribution center?
This is the inventory level that has to be in transit every 2 weeks in order to meet average demand. This can be calculated as follows:
Pipeline inventory = Number of distribution centers * Price per unit * Average weekly demand * Average delivery lead time = 5 * $330 * 70 * 2 = $231,000.
Therefore, the dollars of pipeline inventory that will be in transit to each distribution center is $231,000.
b. How much total inventory (cycle, safety, and pipeline) does Prince hold for all five distribution centers?
Inventory in hand = Average shipment size * Number of distribution centers = 350 * 5 = 1,750
Safety inventory = Number of distribution centers * Average weekly demand * Average delivery lead time = 5 * 70 * 2 = 700
Note: Safety inventory is the inventory held in the store for the purpose of meeting rise in demand or for overcoming delay in supply.
Inventory cycle = Inventory in hand - safety inventory = 1,750 - 700 = 1,050
Pipeline inventory = Number of distribution centers * Average weekly demand * Average delivery lead time = 5 * 70 * 2 = 700
Total inventory held = Inventory cycle + Safety inventory + Pipeline inventory = 1,050 + 700 + 700 = 2,450 units.
Therefore, the total inventory (cycle, safety, and pipeline) Prince holds for all five distribution centers is 2,450 units.
The concept of --------, while not mentioned in the U.S. Constitution, is an important part of our legal system.
Answer:
judicial review,
Explanation:
research lol
Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for DVD players are as follows: November 1 Inventory 120 units at $39 10 Sale 90 units 15 Purchase 140 units at $40 20 Sale 110 units 24 Sale 45 units 30 Purchase 160 units at $43 The business maintains a perpetual inventory system, costing by the first-in, first-out method. a. Determine the cost of goods sold for each sale and the inventory balance after each sale, presenting the data in the form illustrated in Exhibit 3. Under FIFO, if units are in inventory at two different costs, enter the units with the LOWER unit cost first in the Cost of Goods Sold Unit Cost column and in the Inventory Unit Cost column. Cost of Goods Sold Schedule First-in, First-out Method DVD Players Date Quantity Purchased Purchases Unit Cost Purchases Total Cost Quantity Sold Cost of Goods Sold Unit Cost Cost of Goods Sold Total Cost Inventory Quantity Inventory Unit Cost Inventory Total Cost Nov. 1 Nov. 10 Nov. 15 Nov. 20 Nov. 24 Nov. 30 Nov. 30 Balances b. Based upon the preceding data, would you expect the inventory to be higher or lower using the last-in, first-out method?
Answer:
a) UNDER FIFO
November 1 Inventory 120 units at $39
November 10 Sale 90 units
COGS = 90 X $39 = $3,510remaining inventory = 30 x $39 = $1,170November 15 Purchase 140 units at $40
November 20 Sale 110 units
COGS = (30 x $39) + (80 x $40) = $1,170 + $3,200 = $4,370remaining inventory = 60 x $40 = $2,400November 24 Sale 45 units
COGS = 45 x $40 = $1,800remaining inventory = 15 x $40 = $600November 30 Purchase 160 units at $43
remaining inventory = $600 + (160 x $43) = $7,480b. UNDER LIFO
November 1 Inventory 120 units at $39
November 10 Sale 90 units
COGS = 90 X $39 = $3,510remaining inventory = 30 x $39 = $1,170November 15 Purchase 140 units at $40
November 20 Sale 110 units
COGS = 110 x $40 = $4,400 remaining inventory = (30 x $40) + (30 x $39) = $2,370November 24 Sale 45 units
COGS = (30 x $40) + (15 x $39) = $1,785remaining inventory = 15 x $39 = $585November 30 Purchase 160 units at $43
remaining inventory = $585 + (160 x $43) = $7,465Under LIFO, the ending inventory is lower than under FIFO.
"First in first out" or FIFO is a method of inventory evaluation by which the process of goods buying and selling are assumed as having same chronological order.
FIFOAs per the question, if units are in inventory at two different costs, than the Cost of Goods Sold (COGS), and Inventory will be different, as per the given information:
⇒November 1, Inventory 120 units at $39
November 10, Sale 90 units
Cost of Goods Sold = 90 X $39 = $3,510
Remaining inventory = (120-90) x $39 = $1,170
⇒ November 15, Purchase 140 units at $40
November 20, Sale 110 units
Cost of Goods Sold = (30 x $39) + (80 x $40) = $1,170 + $3,200 = $4,370
Remaining inventory = 60 x $40 = $2,400
⇒ November 24, Sale 45 units
COGS = 45 x $40 = $1,800
Remaining inventory = 15 x $40 = $600
⇒November 30, Purchase 160 units at $43
Remaining inventory = $600 + (160 x $43) = $7,480
B. Under Last in, First Out (LIFO)
⇒November 1, Inventory 120 units at $39
November 10, Sale 90 units
COGS = 90 × $39 = $3,510
Remaining inventory = 30 x $39 = $1,170
⇒November 15, Purchase 140 units at $40
November 20, Sale 110 units
COGS = 110 x $40 = $4,400
Remaining inventory = (30 x $40) + (30 x $39) = $2,370
⇒November 24, Sale 45 units
COGS = (30 x $40) + (15 x $39) = $1,785
Remaining inventory = 15 x $39 = $585
⇒November 30, Purchase 160 units at $43
Remaining inventory = $585 + (160 x $43) = $7,465
Hence, the results shows that the Inventory is LOWER when used Last-in, First out Method.
Learn More about LIFO here:
https://brainly.com/question/13510592
Constable Co. reported the following information at December 31, Year 1: Accounts Payable $ 6,750 Accounts Receivable 14,025 Cash 35,235 Common Stock 135,000 Equipment 74,250 Inventory 46,800 Notes Payable due December 31, Year 3 3,750 Retained Earnings, December 31, Year 1 21,135 Wages Payable 3,675 What is the amount of current assets on the classified balance sheet? Multiple Choice $123,255 $96,060 $170,310 $49,260
Answer:
$ 96,060
Explanation:
The current assets are accounts receivable,cash and inventory.
The are short term assets that are used in settling short term obligations such as accounts payable and salaries payable.
Accounts receivable amounted to $14,025
Cash amount is $35,235
Inventory is worth $46,800
Current assets value=$14,025+$35,235+$46,800=$ 96,060.00
The correct option is the second one with amount of $ 96,060 for current assets
Murphy Printers (MP) manufactures printers. Assume that MP recently paid $ 500 comma 000 for a patent on a new laser printer. Although it gives legal protection for 20 years, the patent is expected to provide a competitive advantage for only eight years.
Requirements
1. Assuming the straight-line method of amortization, make journal entries to record (a) the purchase of the patent and (b) amortization for the first full year.
2. After using the patent for four years, MP learns at an industry trade show that another company is designing a more efficient printer. On the basis of this new information, MP decides, starting with year 5, to amortize the remaining cost of the patent over two remaining years, giving the patent a total useful life of six years. Record amortization for year 5.
Answer: The answer is given below
Explanation:
1. The journal entries to record the purchase of the patent and the amortization for the first full year has been solved and attached.
2. The amortization expense of he 4 years will be:
= $62500 × 4
= $250,000
Therefore, the book value of the patent will be:
= Cost of the patent - amortization expense
= 500,000 - 250,000
= $250,000
Amortization for year 5 = Book value/Estimated useful life remaining
= 250,000/2
= $125,000
The journal for the amortization expense for year 5 has been attached
Kansas Enterprises purchased equipment for $76,000 on January 1, 2021. The equipment is expected to have a ten-year service life, with a residual value of $7,200 at the end of ten years. Using the straight-line method, depreciation expense for 2021 would be:
Answer:
The depreciation expense for 2021 would be: $6,880
Explanation:
Straight line method charges a fixed depreciation charge over the life of asset.
Depreciation Charge = (Cost - Residual Value) / Number of Estimated Useful life
= ($76,000 - $7,200) / 10
= $6,880
The amount of depreciation is charged at fixed amount of $6,880 for each of the years that this asset is in use in the business.
Conclusion :
The depreciation expense for 2021 would be: $6,880
Chobani's equipment runs for 10 hours and must be idle for 4 hours while being cleaned. Its plants operate day and night all week long. What are the implications for the company's purchasing, inventory control, scheduling and quality control functions. Your answer should be detailed and well thought out.
Answer:
For the company's purchasing ;leasing the machine for the active period i.e 10 hours a day would be cheaper because the cost of cleaning and maintenance would be eliminated
For the company's inventory control; if the company leases the equipment that would reduce it's setup cost keeping its inventory low
For the company's scheduling; scheduling deals with completing a job within a given time and it is very essential to utilize the productive time
For the company's quality control functions; the company has to ensure that in as much as it has to meet its production schedule the quality of the products should be paramount
Explanation:
Running time = 10 hours. Idle time = 4 hours
The implications of the machine:
For the company's purchasing ; since the equipment has to be used everyday and after the 10 hours it will run, it has to be ideal for 4 hours for it to be cleaned and maintained every day. therefore the purchasing department of the company will have to sort for an alternative equipment which would be less expensive and would have less idle time during cleaning and maintenance. but if this alternative is more expensive, then leasing the machine for the active period i.e 10 hours a day would be cheaper because the cost of cleaning and maintenance would be eliminated
For the company's inventory control : inventory for every company is the stock of the company that remains unsold and every company should aim to keep this as low as possible and one way is by reducing setup costs and safety cost. if the company leases the equipment that would reduce it's setup cost keeping its inventory low
For the company's scheduling : scheduling deals with completing a job within a given time and it is very essential to utilize the productive time i.e 10 hours of the equipment in order to avoid unwanted direct and indirect cost.
For the company's quality control functions: As the equipment runs for 10 hours day and night in other to meet up with the production and scheduling the quality of the products might be adversely affected hence the company has to ensure that in as much as it has to meet its production schedule the quality of the products should be paramount
On January 1, 2021, the Taylor Company adopted the dollar-value LIFO method. The inventory value for its one inventory pool on this date was $470,000. Inventory data for 2021 through 2023 are as follows:
Date Ending Inventory at Year-End Costs Cost Index
12/31/2021 $391,400 1.03
12/31/2022 454,250 1.15
12/31/2023 477,400 1.24
Required: Calculate Taylor's ending inventory for 2021, 2022, and 2023.
Answer:
Taylor Company ending inventories are
2021= $380600
2022= $397850
2023= $386350
Explanation:
Kindly check attached pdf for the computation of the solution
you work at an electronYou work at a local electronics store, Electronics Warehouse. While you are working you spot a customer who appears to place something into their backpack (which you think is an item they haven't paid for). Before they exit the store you yell "STOP THAT THIEF" and another employee tackles the customer at the exit. When the customer is tackled he injures his knee and is spotted by his current boss. You and the employee escort the customer back to the security office and rummage through his backpack, but unfortunately you don't find any evidence that something was stolen, so you release the customer and apologize for the mix-up. The next day the customer returns to his job and is fired for being "a thief" by his boss who witnessed the events at the electronics store the day before. a. Explain in detail what tort theories the customer can sue the Electronics Warehouse. Would he be successful? b. Can you or the other employee be sued for a tort? If so, what tort(s)? c. What defenses would the Electronics Warehouse raise? Would they be successful?
Answer: The answers are provided below
Explanation:
a. Yes, the customer can sue the Electronics warehouse. The customer was wrongly accused of stealing and was called a thief in front of everyone present in the store. In this case, the customer has lost his reputation.
The customer can be successful because he was called a thief which he wasn't. He got injured due to this and also lost his job. This is a serious misconduct and offense and the customer can be successful if he sue the Electronics company.
b. Yes, the employee and I can be sued for tort as we called him a thief without investigation and injured him. This has led to a big harm for the customer who lost his job due to this issue. With the illegal approach, both the employee and the electronic store can face the legal proceedings asnthey can be sued for major loss for the customer.
c. The Electronic Warehouse can raise the defense that they have apologized to the customer and they can also say that they took the measure to protect their stores from theft.
No, they can't be successful as they easily stop the customer without tackling him and making a mockery of him by calling him a thief. He also lost his job due to this. Hence, this is a serious issue that has created emotional and financial damage for the customer.
Quality Jewelers uses the perpetual inventory system. On April 2, Quality sold merchandise for $50,000 to a customer on account with terms of 3/15, n/30. The allowances and returns on this sale amounted to $3,000 and $9,000, respectively. The cost of goods sold was $20,000. On April 20, Quality received payment from the customer. Calculate the amount of gross profit.
Answer:
The Gross profit is $18,000
Explanation:
In order to calculate the amount of gross profit we would have to make the following calculation:
Gross Profit = Sale - Allowance - Sales Returns - Discount - Cost of Goods Sold
Sale=$50,000
Allowance=$3,000
Sales Returns=$9,000
Cost of Goods Sold =$20,000
Discount. As the payment is done after the expiry of 15 days is discount is 0
Gross Profit= $50,000 - $3,000 - $9,000 - 0 - $20,000
Gross Profit= $18,000
The Gross profit is $18,000
Perdue found that one of its chicken products may have been contaminated with bacteria, so it pulled it off the shelves and instituted a recall. This potential ethical issue was associated with which element of the marketing mix?
1. product
2. price
3. distribution
4. marketing communications promotion
Answer:
1. Product
Explanation:
Perdue finding out that one of its chicken products may have been contaminated with bacteria, pulled it off the shelves and instituted a recall.
Hence, this potential ethical issue is associated with product marketing mix because Perdue was very much concerned about the quality level, safety and reliability of his chicken products. This simply means, Perdue is much more interested in producing and selling highly uncontaminated products to it's customers.
A product marketing mix is focused mainly on the products, reason Perdue pulled the chicken products off the shelves and instituted a recall.
This would help to boost confidence among their customers to use more of their products in the future and by extension their market share.
Chow Publications Inc. is a publicly traded media company focused on products for the home chef market. The company publishes a monthly magazine that can be purchased at newsstands and is available for annual subscriptions (either paper copy or digital copy). Chow Publications sells annual subscriptions for S50 (paper copies) or $40 (digital copies). Subscriptions are paid in advance and are non-cancellable. Chow sold for cash 1 15,000 subscriptions on December 1, 2020, of which 30% were digital subscriptions. Single issues can be purchased on newsstands. Chow Publications uses various magazine distributors across Canada to rack it at newsstands, charging the newstands $5 per copy Normally 25,000 copies are sent out each month, with 15% of these being returned unsold. Of the 25,000 magazines sent out in December 2020, all were sold on account, and none of the returned magazines are expected to be resold and, as a result, are sent to recycling. Unsold nagazines are returned by newstands in the following month.
Required
a. Determine how much revenue Chow Publications would be able to recognize in December 2020. Use the five-step model for revenuc recognition in preparing your responsc. Round the per magazine price to three decimal places. ic. S4.965
b. Prepare the required summary journal entries for the contract based on your analysis in part "a."
Answer:
A. $575,415.67
B.
Dr Cash $575,415.67
Cr Revenue from sales $575,415.67
Explanation:
Chow Publications Inc
A.
Revenue recognition it stated that a five step model is been developed to help recognized the revenue from sale of goods and service to customer which is why revenue should be recognized by
1. Identify the contract with customer in which both the seller and buyer are agreed for the contract and must know their rights and obligation in the contracts.
2. Obligation of performance in contract : In above contract the seller know that he has to deliver the content of magazine and the buyer as well know the price for such goods.
The $ 115,000 subscription received are:
$80,500 for paper form and $34500 for digital form and $25,000 copied are been sold out at news stands.
3. Determine the transaction price in which $50 is for the paper copy and $40 is for the digital copy and $ 5 is for copy which is sold at news Stands.
4. Allocation of transaction price to performance obligation will be by calculating the revenue from the transaction and by applying the rate of performance obligation which is why the Total revenue was $ 575,416.67.
5. Recognizing the revenue in the books occured in a situation where the risk and rewards which relate to the ownership of the goods has been passed which led to the customer been satisfied which inturn means that there is no uncertainty regarding the creation of performance obligation on buyer.
Chow Publications Inc
A.
Total Revenue
Online subscription
Paper form $335,415.67
Online form $115,000.00
$450,415.67
Add Copy at News Stand $125,000
Total $575,415.67
B. Journal entry
Dr Cash $575,415.67
Cr Revenue from sales $575,415.67
Monthly share in Annual Revenue
Annual rate Monthly rate
Paper form $50 4.17
Digital rate $40 3.33
Distribution of subscription total received $115,000
Paper rate 70% ×$115,000
= $80,500
Digital rate 30% ×115,000
= $34,500
Nash's Trading Post, LLC issued a five-year interest-bearing note payable for $222000 on January 1, 2019. Each January the company is required to pay $44000 on the note. How will this note be reported on the December 31, 2020, balance sheet
Answer:
balance sheet
liabilities
note payables (current portion) 44,000
non-current liabilities
long-term note payable 178,000
Explanation:
On December 31,2020 there will be a portion of the note that will be declared as current liability while another non-current as within 12-months there is payment due (to be more precise next day after the balance close)
Thus 222,000 - 44,000 = 178,000 long-term
while the 44,000 are declared short-term
New lithographic equipment, acquired at a cost of $800,000 at the beginning of a fiscal year, has an estimated useful life of five years and an estimated residual value of $90,000. The manager requested information regarding the effect of alternative methods on the amount of depreciation expense each year. On the basis of the data presented to the manager, the double-declining-balance method was selected.
In the first week of the fifth year, the equipment was sold for $135,000.
Required:
1. Determine the annual depreciation expense for each of the estimated five years of use, the accumulated depreciation at the end of each year, and the book value of the equipment at the end of each year by the following methods:
a. Straight-line method
Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year
1 $ $ $
2 $ $ $
3 $ $ $
4 $ $ $
5 $ $ $
b. Double-declining-balance method
Year Depreciation Expense Accumulated Depreciation, End of Year Book Value, End of Year
1 $ $ $
2 $ $ $
3 $ $ $
4 $ $ $
5 $ $ $
Hide
2. Journalize the entry to record the sale, assuming double-declining balance method is used. If an amount box does not require an entry, leave it blank.
3. Journalize the entry to record the sale, assuming that the equipment was sold for $88,750 instead of $135,000. If an amount box does not require an entry, leave it blank.
Answer:
a. Straight-line Method :
Year Depreciation Accumulated End of Year Book Value
0 Expense Depreciation $800,000
1 $142,000 $142,000 $ 658,000
2 $142,000 $284,000 $ 516,000
3 $142,000 $426,000 $ 374,000
4 $142,000 $568,000 $ 232,000
5 $142,000 $710,000 $90,000
b. Double-Declining-Balance Method:
Year Depreciation Accumulated End of Year Book Value
0 Expense Depreciation $800,000
1 $320,000 $320,000 $ 480,000
2 $192,000 $512,000 $ 288,000
3 $115,200 $627,200 $ 172,800
4 $69,120 $696,320 $ 103,680
5 $13,680 $710,000 $90,000
2. Journal entry to record the sale, assuming double-declining balance method:
Debit Cash $135,000
Credit Sale of Equipment $135,000
To record sale of equipment.
Debit Sale of Equipment $103,680
Debit Accumulated Depreciation $696,320
Credit Equipment $800,000
To record close of accumulated depreciation and equipment accounts.
3. Journal entry to record sale, assuming equipment was sold for $88,750:
Debit Cash $88,750
Credit Sale of Equipment $88,750
To record sale of equipment.
Debit Sale of Equipment $103,680
Debit Accumulated Depreciation $696,320
Credit Equipment $800,000
To record close of accumulated depreciation and equipment accounts.
Explanation:
a) Straight-line method of depreciation applies the same amount of depreciation charge over the life of the asset. It is calculated by subtracting the salvage value from the asset and dividing the resulting figure by the number of useful life in years. It is very simple, but does not take into consideration maintenance costs incurred as assets age. Therefore, it does not spread the costs of the asset evenly over the periods the asset is in use, or according to the productivity value of the asset in each period.
b) Declining balance method of depreciation accelerates depreciation charge initially but the annual expense declines with age of the fixed asset. Under this method, depreciation expense is calculated by applying the depreciation rate to the book value of the asset at the start of the period.
An all-equity business has 100 million shares outstanding selling for $20 a share. Management believes that interest rates are unreasonably low and decides to execute a leveraged recapitalization (a recap). It will raise $1 billion in debt and repurchase 50 million shares. a. What is the market value of the firm prior to the recap? What is the market value of equity? b. Assuming the Irrelevance Proposition holds, what is the market value of the firm after the recap? What is the market value of equity? c. Do equity shareholders appear to have gained or lost as a result of the recap? Please explain. d. Assume now that the recap increases total firm cash flows, which adds $100 million to the value of the firm. Now what is the market value of the firm? What is the market value of equity? e. Do equity shareholders appear to have gained or lost as a result of the recap in this revised scenario?
Answer:
a) Market Value = $100 million × $20 = $2,000 million = $2 billion
Market value of equity would remain same = $2 billion
b) Market value would remain same after recap. Only market capitalization would reduce to half.
Market value of equity = 1 billion
c) Buying back shares increases the stock price which demonstrates the faith of the company in its work. But creditors have capital gains.
d) After recap and cash flow firm total value has increased to $2 billion + $100 Million = $2.1 billion and market value of equity has increased from $20 to $22 . ($1000 + $100)/50 = $22.
e) Equity shareholders have gained due to increase in there share value
Explanation:
Your grandparents would like to establish a trust fund that will pay you and your heirs $130,000 per year forever with the first payment one year from today. If the trust fund earns an annual return of 2.5 percent, how much must your grandparents deposit today
Answer:
My grandparents deposit $5200000 today.
Explanation:
The annual return earned by trust fund = $2.5 percent
It is given that the trust will pay annually a certain amount for infinite period so annual pay = $130000 per year.
Now we have to calculate the invested or deposited amount by grandparents today.
The present value of future constant annual payment over infinite period = (P/A, i%, n = infinity) or 1 / i%
The amount that should be deposited today :
[tex]= 130000 \times \frac{1}{2.5 \ percent} \\= 5200000[/tex]
Levi Corporation (a U.S. company) has several transactions with foreign entities. Each transaction is denominated in the local currency unit of the country in which the foreign entity is located. On December 2, 20X1, Levi sold confectionary items to a foreign company at a price of 50,000 yen when the direct exchange rate was 1 yen = $1.15. The account has not been settled as of the year ended December 31, 20X1, when the exchange rate had changed to 1 yen = $1.12. The foreign exchange gain or loss on Levi's records at year-end for this transaction will be
Answer: $1500 loss
Explanation:
From the question, On December 2, 20X1, Levi sold confectionary items to a foreign company by selling at a price of 50,000 yen when direct exchange rate was 1 yen = $1.15.
Sale value in dollar = 50,000 × 1.15
= $57500
The account has not been settled as of the year ended December 31, 20X1, when exchange rate had changed to 1 yen = $1.12.
Sale value in dollar = 50,000 × 1.12
= $56000
Foreign exchange loss:
= $57500 - $56000
= $1500 loss
Deere is a global manufacturer and distributor of agricultural, construction, and forestry equipment. Suppose it reported the following information in its 2017 annual report. (In millions)
2017 2016 Inventories (LIFO) $2,267 $2,999
Current asset 32,910
Current liabilities 11,711
LIFO reserve 1,389
Cost of goods sold 15,661
Compute Deere inventory turnover for 2017 ratio.
Answer:
5.95
Explanation:
Deere inventory turnover for 2017 ratio is:
Formula for Inventory Turnover Ratio= Cost of Goods sold / Average Inventory
Where Average Inventory = (Previous Inventory + Current Inventory) / 2
= ($2,267 + $2,999) / 2
=$5,266 / 2
=$2,633
Average Inventory = $2,633
Therefore, Inventory Turnover Ratio = $15,661 / $2,633 = 5.9479 = 5.95
Deere Inventory Turnover for 2017 Ratio is 5.95.
If your risk-aversion coefficient is A = 4.4 and you believe that the entire 1926–2015 period is representative of future expected performance, what fraction of your portfolio should be allocated to T-bills and what fraction to equity? Assume your utility function is U = E(r) – 0.5 × Aσ2
Answer:
=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.
=> fraction to equity = 0.5518 = 55.18%.
Explanation:
So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.
The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;
The first step is to determine or Calculate the value of fraction to equity.
Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.
= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.
Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .
As a toy company produces more toys the average total cost of each toy produced decreases. This is because: total fixed costs are decreasing as more toys are produced. average variable cost is decreasing as more toys are produced. total variable cost is decreasing as more toys are produced. None of the above.
Answer:
total fixed costs are decreasing as more toys are produced.
Explanation:
Costs are classified as variable or fixed based on their relationship with the level of activity.
At any given level of activity, variable unit costs are constant. However, the unit fixed costs decrease as more units are produced.
Lucido Products markets two computer games: Claimjumper and Makeover. A contribution format income statement for a recent month for the two games appears below:
Claimjumper Makeover Total
Sales $106,000 $53,000 $159,000
Variable expenses 32,800 6,950 39,750
Contribution margin $73,200 $46,050 119,250
Fixed expenses 82,575
Net operating income $36,675
Requirement:
1: Compute the overall contribution margin (CM) ratio for the company.
2: Compute the overall break-even point for the company in sales dollars.
3: Verify the overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products.
Answer and Explanation:
1. The computation of overall contribution margin ratio is shown below:-
Overall contribution margin ratio = Total contribution ÷ Total sales
= $119,250 ÷ $159,000
= 75%
2. The computation of overall break-even point for the company in sales is shown below:-
Overall Break even = Fixed costs ÷ Contribution margin
= $82,575 ÷ 75%
= $110,100
3. The overall break-even point for the company by constructing a contribution format income statement showing the appropriate levels of sales for the two products is shown below:-
here, Sales at Break even in the ratio will be 2:1
Particulars Claimjumper Makeover Total
Sales $106,000 $53000 $159,000
($106,000 ÷ $159,000 × $110,100) ($53,000 ÷ $159,000 × $110,100)
Break even
sales $73,400 $36,700 $110,100
Particulars Claimjumper Makeover Total
Sales $73,400 $36,700 $110,100
Variable expense $22,712 $4,813 $27,525
Contribution margin $50,688 $31,887 $82,575
Fixed expense $82,575
Net operating income 0
Working Note
Variable expense for Claimjumper = Variable expenses ÷ Sales × Break even sales
= $32,800 ÷ $106,000 × $73,400
= $22,712
Variable expense for Makeover = Variable expenses ÷ Sales × Break even sales
= $6,950 ÷ $53,000 × $36,700
= $4,813
