Match the following statements to the appropriate terms. An entry that involves three or more accounts. Transferring journal entries to ledger accounts. The side which increases an account. A list of all the accounts used by a company. A record of increases and decreases in specific assets, liabilities, and stockholdersl items. Left side of an account. An entry that involves only two accounts. A book of original entry. A list of accounts and their balances at a given time. Has a credit normal balance
Answer: The answers are given below
Explanation:
• An entry that involves three or more accounts. = Compound entry.
A compound entry is when two or more journal entries are combined together on order to save time.
• Transferring journal entries to ledger accounts. = Posting
• The side which increases an account. = Normal account balance.
• A list of all the accounts used by a company. = Chart of an account.
A chart of accounts (COA) consists of all the financial accounts that are in the company's general ledger. It gives the the details of the financial transactions that is being conducted by a company for a particular accounting period.
• A record of increases and decreases in specific assets, liabilities, and stockholdersl items. = Account
• Left side of an account. = Debit
The debit is an entry used to record the amount that the entity owe and it is always listed on left-hand side of an account.
• An entry that involves only two accounts. = Simple entry
A simple entry is made up of two accounts while a compound entry is made up of more.
• A book of original entry. = Journal
A journal is a record of every financial transactions that a business takes part in.
• A list of accounts and their balances at a given time. = Trial balance
The trial balance consists of a list of all the general ledger accounts that is, both the revenue and capital that are contained in a business ledger.
• Has a credit normal balance = Revenue account
Assume that the Turner, Roth, and Lowe partnership is a limited partnership. Turner and Roth are general partners and Lowe is a limited partner. How much should each partner contribute to cover the remaining capital deficiency of $33,000? (Do not round intermediate calculations. Losses and deficits amounts to be deducted should be entered with a minus sign.)
Question Completion:
Given that they share income and losses in the ratio of 2:3:5 respectively.
Answer:
Each partner should contribute:
Turner = $13,200 (2/5 * $33,000)
Roth = $19,800 (3/5 * $33,000)
Lowe = $0
Explanation:
Since Lowe is a limited, there is no contribution he will make to cover the remaining capital deficiency of $33,000. Instead, the general partners, Turner and Roth, will share the capital deficiency in their income and loss sharing ratios. A limited partner does not share in capital deficiency because his or her liability is limited to the capital contributed initially to the business. General partners are those who run the business and they contribute to capital deficiency because their liabilities are not limited to the initial capital that they have contributed.
A publicly traded construction company reported that it just paid off a loan that it received 1 year earlier. If the total amount of money the company paid was $1.5 million and the interest rate on the loan was 10% per year, how much money did the company borrow 1 year ago
Answer:
$1,363,636.36
Explanation:
A public traded construction company just paid off a loan that was received one year earlier
The amount of money paid by the company was $1,500,000
The interest rate was 10% per year
= 10/100
= 0.10
Therefore the amount of money that was borrowed last year can be calculated as follows
Let x represent the amount of money borrowed
x + x(0.10)= 1,500,000
x + 0.10x= 1,500,000
1.1x= 1,500,000
x= 1,500,000/1.1
x= $1,363,636.36
Hence the company borrowed $1,363,636.36 a year ago
What type of management style would you use if you supervised 20 employees?
The best management style is when employees are lead by example and not by command.
Ivanhoe Company increased its investments in marketable securities by $316,370 and paid $1,221,231 for new fixed assets during 2017. The company also repaid $770,200 of existing long-term debt while raising $913,555 of new debt capital. In addition, Ivanhoe had a net cash inflow of $352,002 from the sale of fixed assets, and repurchased stock in the open markets for a total of $51,001. What is the net cash used in long term investing activities by Ivanhoe? What is the net cash provided by the company’s financing activities? (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
Answer:
The Net cash from Investing refers to the Cash inflows less the Cash outflows that involved capital expenditure and investments in other company securities.
Net Investing Cash = Cash inflow - outflow
= 352,002 - 316,370 - 1,221,231
= ($1,185,599)
Financing activities are those that involve the raising of capital for the company including through stock and debt.
Net Cash from financing = Inflow - Outflow
= 913,555 - 770,200 - 51,001
= $92,354
Upon completing an aging analysis of accounts receivable, the accountant for Rosco Works prepared and aging of accounts receivable and estimated that $5,400 of the $98,400 accounts receivable balance would be uncollectible. The allowance for doubtful accounts had a $440 debit balance at year-end prior to adjustment. What is the amount of bad debt expense?
Answer:
$5,440
Explanation:
Calculation for the amount of bad debt expense
Using this formula
Bad debt expense= Credit balance Allowance for doubtful accounts + Debit balance Allowance for doubtful accounts
Let plug in the formula
Bad debt expense=$5,000+$440
Bad debt expense=$5,440
Therefore Bad debt expense amount will be $5,440
Demand at Nature Trails Ski Resort has a seasonal pattern. Demand is highest during the winter, as this is the peak ski season. However, there is some ski demand in the spring and even fall months. The summer months can also be busy as visitors often come for summer vacation to go hiking on the mountain trails. The owner of Nature Trails would like to make a forecast for each season of the next year. Total annual demand has been estimated at 4,000 visitors. Given the last two years of historical data, what is the forecast for each season of the next year
Answer:
Fall 304
Winter 1,974
Spring 716
Summer 1,006
total 4,000
Explanation:
The historical data is missing, so I looked for a similar question and found this:
Season Year 1 Year 2
Fall 208 243
Winter 1,360 1,574
Spring 509 554
Summer 719 774
total 2,796 3,145
if the forecast for total demand during next year is correct, total demand should increase by [(4,000 / 3,145) - 1] x 100 = 27.186% or 855 more customers.
we must determine the % of total demand per season:
Season Year 1 % Year 2 %
Fall 208 7.44% 243 7.73%
Winter 1,360 48.64% 1,574 50.05%
Spring 509 18.20% 554 17.62%
Summer 719 25.72% 774 24.60%
total 2,796 100% 3,145 100%
the average % for each season:
Fall 7.59% x 4,000 = 303.6 ≈ 304
Winter 49.35% x 4,000 = 1,974
Spring 17.91% x 4,000 = 716.4 ≈ 716
Summer 25.15% x 4,000 = 1,006
total 100%
Performance OverArmour Co. manufactures and sells clothing, shoes, and athletic equipment. Performance incurred substantial losses associated with its shoe division. The shoe division can clearly identify its operations and cash flows from the balance of the other groups. Performance plans to sell the shoe division. At what point can performance report the group as a discontinued operation A. The date Performance receives a contingent offer on the group B. The date the majority of the assets of the group are sold C. The date Performance classifies the group as held for sale D. The date Performance sells any assets of the group
Answer:
Performance Over Armour Co.
The point when the group becomes a discontinued operation:
C. The date Performance classifies the group as held for sale
Explanation:
Immediately the group is classified as held for sale, it becomes a discontinued operation. Discontinued operation is a part of a company's core business or product line that has been divested or shut down. It is then reported separately from other continuing operations on the income statement.
The Aleutian Company produces two products, Rings and Dings. They are manufactured in two departments—Fabrication and Assembly. Data for the products and departments are listed below. Product Number of units Labor hrs per unit Machine hours per unit Rings 1,000 4 6 Dings 2,000 3 9 All of the machine hours take place in the Fabrication Department, which has an estimated overhead of $90,000. All of the labor hours take place in the Assembly Department, which has an estimated total overhead of $105,000. The Aleutian Company uses departmental overhead rates. The Fabrication Department uses machine hours for an allocation base, and the Assembly Department uses labor hours. What is the Fabrication Department overhead rate per machine hour?
Answer:
$3.75
Explanation:
The computation of the fabrication department overhead rate per machine hour is shown below:
But before that first determine the following calculations
The Total number of hours is
= 1,000 ×6 + 2,000 × 9
= 6,000 + 18,000
= 24,000
And, the total estimated overhead is $90,000
So, the overhead rate per machine hour for the fabrication department is
= $90,000 ÷ 24,000 hours
= $3.75
Watson Oil recently reported (in millions) $8,250 of sales, $5,750 of operating costs other than depreciation, and $1,000 of depreciation. The company had $3,200 of outstanding bonds that carry a 5% interest rate, and its federal-plus-state income tax rate was 35%. In order to sustain its operations and thus generate future sales and cash flows, the firm was required to make $1,250 of capital expenditures on new fixed assets and to invest $300 in net operating working capital. By how much did the firm's net income exceed its free cash flow
Answer:
net income exceeded the free cash flows by $550 million
Explanation:
net income = ($8,250 - $5,750 - $1,000 - $160) x (1 - 35%) = $871 million
net cash flows:
operating activities = $871 + $1,000 - $300 = $1,571
investing activities = ($1,250)
net cash increase during the year = $321 million
net income exceeded the free cash flows by $871 - $321 = $550 million
Nash Company includes one coupon in each box of soap powder that it packs, and 10 coupons are redeemable for a premium (a kitchen utensil). In 2020, Nash Company purchased 8,800 premiums at 85 cents each and sold 101,000 boxes of soap powder at $3.30 per box; 42,000 coupons were presented for redemption in 2020. It is estimated that 60% of the coupons will eventually be presented for redemption. Prepare all the entries that would be made relative to sales of soap powder and to the premium plan in 2020.
Answer:
Date Account Title and Explanation Debit Credit
2020 Inventory of premium $7,480
Cash $7,480
(To record the purchase of 8,800 premium at $0.85 each)
Date Account Title and Explanation Debit Credit
2020 Cash $333,300
Sales revenue $333,300
(To record sale of 101,000 boxes at $3.30 each)
Date Account Title and Explanation Debit Credit
2020 Premium Expenses $3,570
(42,000 * 0.1 * 0.85)
Inventory of premiums $3,570
(To record premium redemption)
Date Account Title and Explanation Debit Credit
Year end Premium expenses $1,581
2020 Premium liability $1,581
Workings
Particulars Amount
Estimated redemption on number of boxes sold 60,600
= 101,000 * 60%
Less: Coupon already redeemed 42,000
Premium liability of coupons 18,600
Cost of premium liability = 18,600 * 10% * 0.85
Cost of premium liability = $1,581
Which activities would be considered project management?
Explanation:
Remember, project management involves activities done to organize and manages resources that are necessary to complete a project.
Here are some of the activities;
Project Initiation phase: this where the requirements or customization of the project begins.
Planning: the planning stage often constitues mainly of budgeting finances and setting timeline for activities.
The others includes;
ExecutionValidation. and Evaluation.ierney Company begins operations on April 1. Information from job cost sheets shows the following. Manufacturing Costs Assigned Job Number April May June Month Completed 10 $6,100 $6,200 May 11 5,900 5,800 $3,800 June 12 1,400 April 13 5,100 5,600 June 14 6,800 4,600 Not complete Job 12 was completed in April. Job 10 was completed in May. Jobs 11 and 13 were completed in June. Each job was sold for 25% above its cost in the month following completion. (a) What is the balance in Work in Process Inventory at the end of each month
Answer and Explanation:
The computation of the ending balance of the work in process is shown below:
For April month
= $6,100 + $5,900
= $12,000
For May month
= $5,900 + $5,800 + $5,100 + $6,800
= $23,600
For June month
= $6,800 + $4,600
= $11,400
In this way the ending work in process is to be calculated for each month and the same is to be considered
Garrett Company had the following activities for a recent year ended December 31: Sold land that cost $23,000 for $23,000 cash; purchased $174,000 of equipment, paying $155,000 in cash and signing a note payable for the rest; and recorded $6,300 in depreciation expense for the year. Net income for the year was $13,000. Prepare the operating and investing sections of a statement of cash flows for the year based on the data provided. (List cash outflows as negative amounts.)
Answer:
Cash flow from Operating Activities
Net income for the year $13,000
Add Depreciation Expense $6,300
Net Cash from Operating Activities $19,300
Cash flow from Investing Activities
Proceeds from Sale of Land $23,000
Purchase of Equipment - $155,000
Net Cash from Investing Activities - $132,000
Explanation:
The operating cash flow can be prepared using the indirect method since the information provided allows so.
To this end, the Net income must be reconciled to the Cash flow from Operating Activities by taking into account, the non-cash items previously deducted or added to Net Income and any adjustment to changes in working capital that needs to be effected on the Net Income.
On the other hand, the Cash flow from Investing Activities is simply the movement in cash arising from Sale or Acquisition of items of Property, Plant and Equipment.
The Better Building Company has a contract to build a building for $100 million. The estimate of the cost of the project is $75 million. In the first year of the project, BB had costs of $30 million. The Better Building Company’s reported profit for the first year of the contract, using the percentage-of-completion method, is:
Answer:
$10 million
Explanation:
Calculation for the reported profit for the first year of the contract
Using this formula
Reported profit=(BB Costs/Project cost estimate)×(Building contract-Project cost estimate)
Let plug in the formula
Reported profit = ($30 million / $75 million)×($100 million – $75 million)
Reported profit=0.4 million ×25 million
Reported profit= $10 million
Therefore the reported profit for the first year of the contract will be $10 million
As of December 31, 2016, Warner Corporation reported the following: > Dividends Payable: $20,000 > Treasury Stock: $600,000 > APIC: Treasury Stock: $20,000 > APIC: Common Stock: $4,000,000 > Retained Earnings: $3,000,000 During 2017, half of the Treasury Stock was resold for $240,000. The sale of half of the treasury stock would cause Retained Earnings to change by what amount?
Answer:
The Retained Earnings will change by $0.
Explanation:
Selling treasury stock does not affect the amount of the Retained Earnings. What actually drive the value of the Retained Earnings is the difference between Revenue and Costs of operations and the distributions made to the stockholders. Retained Earnings represent the amount of net income that is not distributed to the stockholders. In other words, retained earnings result from the difference between the net income generated by the company over the years and the amount of net income paid out to stockholders in the form of dividends.
Simmons sold merchandise to Drafke for $5,000 with payment terms of 2/10, n/30. Two days later, Drafke returned two of the units and received account credit in the amount of $2,000. If Drafke pays his account in full within ten days of the invoice date, what is the amount of the sales discount?
Answer:
The amount of the sales discount is $60.
Explanation:
The with payment terms of 2/10, n/30 imply that Drafke will enjoy 2% discount if he pays within 10 days; but after the first 10 days, the full invoice amount payable will be due for payment in 30 days without the 2% discount.
From the question, we have:
Total credit sales = $5,000
Sales return = $2,000
Net credit sales = Total credit sales - Sales return = $5,000 - $2,000 = $3,000
If Drafke pays his account in full within ten days of the invoice date, he will enjoy the 2% discount rate. Therefore, we have:
Discount amount = Net credit sales * Discount rate = $3,000 * 2% = $60
Therefore, the amount of the sales discount is $60.
Problem 13-25 (Algorithmic) (LO. 2) Oak Corporation has the following general business credit carryovers: 2015 $11,750 2016 35,250 2017 12,750 2018 39,250 Total carryovers $99,000 The general business credit generated by activities during 2019 equals $79,200 and the total credit allowed during the current year is $141,000 (based on tax liability). a. Enter the amount (if any) of each year's carryover utilized in 2019. Year Amount of Carryover Utilized 2015 $ 2016 $ 2017 $ 2018 $ 2019 $ b. What is the amount of any unused credits carried forward to 2020?
Answer:
2020 carried forward 37,200
All the previous year carryover were used.
Explanation:
We have 141,000 credit allowed
We use the 99,000 from previous period
Leaving us with: 42,000 of tax credit for this year
Now, as the company generated tax credit for 79,200 during the year
79,200 - 42,000 = 37,200 carried forward to 2020 as are considered unused during 2019
Who appoints the board of directors in a public stock company?A) AuditorsB) ShareholdersC) EmployeesD) CEOs
Answer:
The answer is B. Shareholders
Explanation:
The owners of the company (shareholders) appoint the board of directors for check and balance and to protect their interests. Appointing board of directors is one of the criteria of good corporate governance.
Because there is usually what we call agency problem whereby the agents(company's management) tends to go for their interest at the expense of the principal's(shareholders), board of directors are appointed for check and balance
A credit card company wants your business. If you accept their offer and use their card, they will deposit % of your monetary transactions into a savings account that will earn a guaranteed % per year. If your annual transactions total an average of $, how much will you have in this savings plan after years?
Answer:
$6,003.05
Explanation:
Calculation for the amount you will have in the saving plan after 10 years
First step is to find the annual amount
Annual amount = $25,000 x 2%
Annual amount= $500
Second step is to find (F/A, 4%, 10) using financial calculator
Hence,
(F/A, 4%, 10)=(12.0061)
Now let calculate how much will you have in the saving plan
Saving plan amount =$500 (F/A, 4%, 10)
Saving plan amount= $500 × (12.0061)
Saving plan amount= $6,003.05
Therefore the amount you will have in the saving plan after 10 years will be $6,003.05
The amount that should be in the saving years after 10 years is $6,003.05.
Calculation of the amount:But before this, determining the following calculations:
Annual amount
= Average annual transactions x deposit percentage
= $25,000 x 2%
Annual amount= $500
Now the amount of saving plan is
Saving plan amount
For saving plan we simply multiply the annual amount with the factor so that the actual amount could come
= Annual amount * factor
=$500 (F/A, 4%, 10)
= $500 × (12.0061)
= $6,003.05
Hence, The amount that should be in the saving years after 10 years is $6,003.05.
Learn more about saving here: https://brainly.com/question/15867099?referrer=searchResults
Which of the following is a true statement about China? Group of answer choices The Chinese government's shift from communism to capitalism has led to an increase in FDI. China attracts FDI because the government has eliminated elaborate bureaucracies. The Chinese government manipulates market activities for political purposes. China lacks an educated pool of employees due to slowly developing industrialization.
Answer:
The Chinese government manipulates market activities for political purposes.
Explanation:
1. At the moment, the Chinese government is still a communist-style government, so the first option is wrong.
2. At the moment elaborate bureaucracy is still present in the Chinese model of governance, with about ten million active civil servants under government control. Hence the second option is wrong.
3. Presently, China has over 96% literacy rates, therefore the last option is also wrong.
Hence, the correct answer is the third option which states that "The Chinese government manipulates market activities for political purposes."
