Answer:
Dr cash $120,000
Cr Notes payable $120,000
Dr interest expense $2,400
Dr notes payable $30,000
Cr cash $32,400
Explanation:
The issuance of the notes payable of $120,000 means that White Corporation's cash inflow has increased by $120,000 while its corresponding loan obligation has also gone up by the same amount.
On 31 December 2018,White Corporation would need to repay $30,000 principal plus interest of $2,400 ($120,000*2%).The interest payment is debited to interest expense while $30,000 repayment is debited to notes payable and cash is credited with the total of $32,400
Slavin Corporation manufactures two products, Alpha and Delta. Each product requires time on a single machine. The machine has a monthly capacity of 500 hours. Total market demand for the two products is limited to 150 units (each) monthly. Slavin is currently producing 110 Alphas and 110 Deltas each month. Cost and machine-usage data for the two products is shown in the following spreadsheet, which Slavin managers use for planning purposes:
Alpha Delta Total
Price $120 $150
Less variable costs per unit
Material 20 35
Labor 26 37
Overhead 14 14
Contribution margin per unit $60 $64
Fixed costs
Manufacturing $8,000
Marketing and administrative 5,000
$13,000
Machine hours per unit 2.0 2.5
Machine hours used 495
Machine hours available 500
Quantity produced 110 110
Maximum demand 150 150
Profit $640
Required:
a. How many Alphas and Deltas should the company produce each month to maximize monthly profit?
b. If the company produces at the level found in requirement (a), how much will monthly profit increase over the current production schedule?
Answer:
a. How many Alphas and Deltas should the company produce each month to maximize monthly profit?
150 Alphas80 Deltasb. If the company produces at the level found in requirement (a), how much will monthly profit increase over the current production schedule?
$480 increase (or 75% increase)Explanation:
Alpha Delta
Price $120 $150
Variable costs per unit :
Material $20 $35 Labor $26 $37 Overhead $14 $14Contribution margin per unit $60 $64
Fixed costs :
Manufacturing $8,000 Marketing and administrative $5,000 total $13,000Machine hours per unit 2.0 2.5
Machine hours used 495
Machine hours available 500
Quantity produced 110 110
Maximum demand 150 150
Profit $640
Contribution margin per machine hour:
$30 $25.60
this means you should produce as many Alphas as possible = 150. Production of 150 Alphas will consume 300 machine hours and the remaining 200 hours can be used to produce 80 Deltas.
Monthly profit:
[(150 x $60) + (80 x $64)] - 13,000 = $9,000 + $5,120 - $13,000 = $1,120, which represents a $480 increase (or 75% increase)
Cardiff and Delp is an architectural firm that provides services for residential construction projects. The following data pertain to a recent reporting period. (Round activity rate answers to 2 decimal places.)
Activities Costs
Design department
Client consultation 2,100 contact hours $ 315,000
Drawings 1,800 design hours 104,400
Modeling 46,000 square feet 32,200
Project
management
department
Supervision 1,200 days $ 228,000
Billings 8 jobs 8,300
Collections 8 jobs 13,140
Required: 1. & 2. Using ABC, compute the firm's activity overhead rates. Form activity cost pools where appropriate. Assign costs to a 7,400-square-foot job that requires 410 contact hours, 352 design hours, and 195 days to complete. (Round activity rate answers to 2 decimal places.)
Answer:
Activity Rates
Consultation $150
Drawings $58
Modeling $0.7
supervision $190
Billings $1037.5
Collections $1642.5
Total overhead allocated: $ 126,826
Explanation:
First, we divide the cost of each activity over the base total to get the rate.
[tex]\left[\begin{array}{ccccc}$Activity&Driver&cost&Total&Rate\\$Consultation&$contact hours&315000&2100&150\\$Drawings&$desing hours&104400&1800&58\\$Modeling&$square feet&32200&46000&0.7\\$supervision&$days&228000&1200&190\\$Billings&$jobs&8300&8&1037.5\\$Collections&$jobs&13140&8&1642.5\\\end{array}\right][/tex]
Now we apply this rate against the job activity measurement:
[tex]\left[\begin{array}{ccccc}$Activity&Job&$Rate&$Allocated\\$Consultation&410&150&61500\\$Drawings&352&58&20416&\\$Modeling&7400&0.7&5180&\\$supervision&195&190&37050&\\$Billings&1&1037.5&1037.5&\\$Collections&1&1642.5&1642.5&\\$Total&&&126826&\\\end{array}\right][/tex]
W.T. Ginsburg Engine Company manufactures part ACT30107 used in several of its engine models. Monthly production costs for 1,090 units are as follows: Direct materials $46,000 Direct labor 10,500 Variable overhead costs 32,500 Fixed overhead costs 22,000 Total costs $111,000 It is estimated that 6% of the fixed overhead costs assigned to ACT30107 will no longer be incurred if the company purchases ACT30107 from the outside supplier. W.T Ginsburg Engine Company has the option of purchasing the part from an outside supplier at $94.75 per unit. If the company accepts the offer from the outside supplier, the monthly avoidable costs (costs that will no longer be incurred) total ________.
Answer:
Cost that will no longer be incurred = $90320
Explanation:
$
The relevant variable cost
= 46,000 + 10,500 + 32,500 $89,000
Cost of external supply
= 94.75 × 1090= $103,277.50
Increase in of purchase 14,277.50
Savings in fixed cost (6%× 22,000) ( 1320
Net increase in cost if purchased 12,957.50
Cost that will no longer be incurred = 89,000 +1320 = $90320
Cost that will no longer be incurred = $90320
Software Distributors reports net income of $48,000. Included in that number is depreciation expense of $6,500 and a loss on the sale of land of $4,300. A comparison of this year's and last year's balance sheets reveals a decrease in accounts receivable of $18,000, a decrease in inventory of $11,500, and an increase in accounts payable of $38,000.
Required:Prepare the operating activities section of the statement of cash flows using the indirect method.
Answer:
Net cash from operating activities is $126,300.
Explanation:
Statement of cash flows
(Operating activities section only)
Details $
Net income 48,000
Adjustment to reconcile net income:
Depreciation expense 6,500
Loss on the sale of land 4,300
(Increase) decrease in current assets:
Decrease in accounts receivable 18,000
Decrease in inventory 11,500
Increase (decrease) in current liabilities:
Increase in accounts payable 38,000
Net cash from operating activities 126,300
A year ago, Kim Altman purchased 200 shares of BLK, Inc. for $25.50 on margin. At that time the margin requirement was 40 percent. If the interest rate on borrowed funds was 9 percent and she sold the stock for $34, what is the percentage return on the funds she invested in the stock
Answer:
69.83%
Explanation:
Calculation for Kim Altman percentage return on the funds she invested in the stock
Calculation for Kim’s own money =
$5100 x .4 = $2040
Caluculation for total Long Position =
$34 x 200 = $6800
Calculation for Interest Borrowed =
$3060 x .09 = $275.4
Total gain/profit =
$6800 - $5100 - $275.4
= $1424.60
Percentage on Return
= $1424.60 / $2040 = .6983
.6893x 100 = 69.83%
Therefore the percentage return will be 69.83%
Which of the following statements is NOT CORRECT? a. Accruals are "free" in the sense that no explicit interest is paid on these funds. b. A conservative approach to working capital management will result in most, if not all, permanent current operating assets being financed with long-term capital. c. Bank loans generally carry a higher interest rate than commercial paper. d. Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate. e. The risk to a firm that borrows with short-term credit is usually greater than if it borrowed using long-term debt. This added risk stems from the greater variability of interest costs on short-term debt and possible difficulties with rolling over short-term debt.
Answer: d. Commercial paper can be issued by virtually any firm so long as it is willing to pay the going interest rate.
Explanation:
Commercial Paper refers to a short term debt instrument that large Corporations and banks can issue to enable them pay off short term obligations.
While Commercial Paper does not need to be registered with the SEC if it falls under a period of 9 months for it to mature, it is not for every institution.
Only large Institutions and Banks can afford to issue commercial Paper due to risk concerns and so not all firms can issue Commercial Paper.
Mark can produce 50 baseballs in a month and Katie can produce 60 baseballs in a month. Also, Mark can produce 40 bats in a month and Katie can produce 30 bats in a month. ______________has the absolute advantage in the production of bats, and _____________ has the comparative advantage in the production of bats. Group of answer choices
Answer:
Mark has the absolute advantage in the production of bats.
Mark has the comparative advantage in the production of bats
Explanation:
The absolute advantage is a principle in which a party is able to produce a good more efficiently than the others. In this situation, Mark can produce 40 bats while Katie can produce 30 bats which indicates that Mark can produce them more efficiently having an absolute advantage in the production of bats.
The comparative advantage is a principle in which a party has the ability to produce a good at a lower opportunity cost than others. In this situation:
Baseballs Bats
Mark 50 40
Katie 60 30
The opportunity cost for Mark of producing 1 bat is producing 1.25 baseballs and the opportunity cost for Katie of producing 1 bat is producing 2 baseballs. This means that Mark has a lower opportunity cost and the comparative advantage in the production of bats.
The following table shows a simplified consolidated balance sheet for the entire
banking system (all figures are in billions). The reserve ratio is 25 percent.
Assets Liabilities &Equity
Reserves 96 Checkable Deposits 400
Securities 104
Loans 200
a. 1. What is the amount of excess reserves in this banking system?
2. What is the maximum amount the banking system might lend?
3. Show how the balance sheet would look after this amount has been lent
(construct new balance sheet or add columns).
4. What is the size of the monetary multiplier?
b. 1. Answer the questions in part a assuming the reserve ratio is 15 percent.
2. What is the resulting difference in the amount that the banking system can
lend? How do you explain the difference?
Answer:
Kindly check explanation
Explanation:
Excess reserve = (Actual reserve - required reserve)
Required reserve = reserve ratio × Checkable deposit
Required reserve = 0.25 × $400 billion
Required reserve = $100 billion
Excess reserve = $96 - $100 = - $4billion
B) money multiplier = 1/ required reserve ratio
1/0.25 = 4
Maxumum amount that can be Lent = 4 × 4 = $16 million
If reserve ratio = 15%
Required reserve = 0.15 × $400 billion = $60 billion
Excess reserve = $96 - $60 = $36 billion
Monetary multiplier = 1/ 0.15 = 6.667
Maximum amount of loan = 6.667 × 36 = $240 billion
Shrinkage at Walmart In 2015, the world’s largest retailer, Walmart, announced a quarterly increase in sales that was accompanied by an increase in expenses that reduced its hoped-for profit. In discussing the higher expenses, the company mentioned "shrinkage" three times in its written press release and 13 times in its conference call with financial analysts. The company attributed a significant part of its increased shrinkage to shoplifting and outright theft, including one instance in which a team of thieves pushed a shopping cart full of electronics out a back door and loaded them into a waiting car. To combat these problems, which are unfortunately common in retailing, the company announced it was restarting a training program for employees that helps them learn how to spot shoplifters and fellow employees who are pilfering, along with adding staff to areas of the store that contain high-value or easy-to-steal items. They also plan to start checking customers’ receipts at store exits. In addition to these measures, however, the company also reported that a sizable portion of the shrinkage results from difficulties encountered in managing inventory flow throughout the company’s distribution network and its stores. When warehouses and store backrooms become overstocked with inventory, it can be difficult to determine which items should be discounted and moved to the store’s shelves. In recent years, Walmart has increased its sales of grocery and food items, which can be damaged more easily than its other inventory and for which failure to monitor expiration dates can be costly. To deal with these backroom inventory management issues, the company has added employees to staff those areas. Walmart’s U.S. supply chain includes more than 100 distribution centers from which the company makes deliveries to its more than 5000 stores and Sam’s Club locations using its fleet of more than 6000 trucks. Managing the flow of inventory from the company’s suppliers through its distribution centers and into its retail outlets is a mammoth task and, as discussed in this chapter, the company has made attempts to use technology in new and creative ways to address these challenges in the past.
REQUIRED
Q1) Become familiar with RFID technology and its potential uses in Walmart’s supply chain using the information presented in this chapter and information you obtain through the Web Links, your favorite search engine, and your library. In about 200 words, outline the advantages Walmart might gain by using RFID in its retail stores. As you draft your answer, be sure to consider the nature of the stores’ backroom environments, which include metal shelving. Also consider Walmart’s possible use of RFID and other technologies as an alternative or addition to the increased staffing levels the company has announced for its retail stores. As you draft your answer, be sure to consider the nature of the stores’ backroom environments, which include metal shelving. Also consider Walmart’s possible use of RFID and other technologies as an alternative or addition to the increased staffing levels the company has announced for its backroom inventory storage areas.
Q2) In about 100 words, discuss the advantages Walmart might gain if it were to use RFID tracking technologies in all of its retail stores to manage every single item as opposed to using either case-level RFID or tracking only part of each store’s inventory at the item level.
Answer:
Explanation:
There are many advantages Walmart will gain if it were to use RFID tracking technology
1. In all its retail stores and
2. To manage every single item
As opposed to
A. Using case-level RFID or
B. Tracking only a part of each store's inventory at the item level (backroom inventory)
Radio frequency identification makes use of electromagnetic fields, to instantly identify and track tags attached to objects. The tags could be
1. Active or 2. Passive
These tags are the unique form of identification of an item in the store.
The advantages:
1. The main advantage of using the RFID in all Walmart's stores and to manage every single item, is: unlike barcodes, multiple RFID tags can be read at a time.
2. Whether the tag is showing openly or is covered by a part of the object to which it is affixed, it can still be read, if passed by a reader.
3. It can be used to track pilferers or shoplifters.
4. The RFID code is also used to bill the customers.
5. It is used to access the item or good.
6. Active RFID tags can be read from a far distance from the reader.
Laurie saved for six months to have enough money to buy a new designer outfit to wear to a special party. She had to travel to a larger city to purchase this outfit, but it was worth it to her because it made her feel beautiful and confident. The difference between the benefits Laurie perceived from this purchase and the cost to her to acquire these benefits describes her _____.
Answer: B) customer value
Explanation:
Customer Value refers to the perception of what the good in question is worth to the customer buying it as opposed to other alternatives. Essentially, how much is it worth to the buyer vs the opportunity costs of buying it. The customer values a good when they feel like they gained more benefits than they paid for or that it was an equal trade-off and so do not mind the cost.
Laurie gained confidence and felt beautiful as a result of the attire and so decided that the cost was worth it.
Worth refers to whether the consumer feels he or she received more benefits and services than he or she paid for.
What is the customer Value?Customer value is the financial compensation that a customer receives in exchange for the amount paid for a market item.
In general, a client evaluates the net benefits of one item to those of its prospective alternatives. It aids in determining whether the client believes they received adequate value for the cost of the offering.
Thus, Option B is correct about Laurie.
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Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company's records show the following accounts and amounts for the month of August Cash Accounts receivable office supplies Land office equipment Accounts payable Dividends $25,370 Consulting fees earned 27,010 9,570 5, 620 880 530 102,100 22,370 Rent expense 5,260 Salaries expense 44,010 Telephone expense 20,020 Miscellaneous expenses 10,540 Common stock 6,020 Exercise 2-17 Preparing a statement of retained earnings LO P3 Use the above information to prepare an August statement of retained earnings for Help Today,(
Answer:
Help Today
Statement of Retained Earnings
For the Month Ended on August 31, 202X
Retained earnings at the beginning of the period: $0
Net Income: $10,410
Dividends: ($6,020)
Retained earnings at the end of the period $4,390
Explanation:
First we must organize the numbers and prepare an income statement:
Consulting fees earned $27,010
Rent expense ($9,570)
Salaries expense ($5,620)
Telephone expense ($880)
Miscellaneous expenses ($530)
Net income: $10,410
then a balance sheet:
Balance Sheet
Assets:
Cash $25,370
Accounts receivable $22,370
Office supplies $5,260
Land $44,010
Office equipment $20,020
Total assets: $117,030
Liabilities and Equity:
Accounts payable $10,540
Common stock $102,100
Total liabilities and equity: $112,640
+ Retained earnings $4,390
Total: $117,030
Dividends 6,020
two ways to determine retained earnings:
Retained earnings ⇒ assets - (liabilities + equity) = $117,030 - $112,640 = $4,390Another way to calculate retained earnings = net income - dividends = $10,410 - $6,020 = $4,390Management of Mittel Rhein AG of Köln, Germany, would like to reduce the amount of time between when a customer places an order and when the order is shipped. For the first quarter of operations during the current year the following data were reported: Inspection time 0.3 days Wait time (from order to start of production) 14.0 days Process time 2.7 days Move time 1.0 days Queue time 5.0 days
1.Compute the throughput time.
2. Compute the manufacturing cycle efficiency (MCE) for the quarter. (Round your answer to 2 decimal places.)
3. What percentage of the throughput time was spent in non–value-added activities? (Enter your answer as a percentage (i.e., 0.12 should be entered as 12).)
4.Compute the delivery cycle time.
5. If by using Lean Production all queue time during production is eliminated, what will be the new MCE? (Round your percentage answer to 1 decimal place (i.e., 0.123 should be entered as 12.3).)
Answer:
1. The throughput time is 9 days
2. The MCE is 0.30
3. 70% of the throughput time was spent on non-value added activities.
4. The delivery cycle time is 23 days
5. The New MCE is 67.5%
Explanation:
1. To calculate the throughput time we would have to use to make the following calculation:
throughput time=process time+inspection time+movie time+queue time
throughput time=2.7+0.3+1+5
throughput time=9 days
2. To calculate the MCE we would have to use to make the following calculation:
MCE=value added time/throughput time
MCE=2.7/9=0.30
3. MCE is 30% which means that out of the total throughput time, time spent on value added activities was 30%. Thus it means that 70% of the throughput time was spent on non-value added activities.
4. To calculate the delivery cycle time we would have to use to make the following calculation:
delivery cycle time=wait time+throughput time
delivery cycle time=14+9=23 days
5. To calculate the new MCE we would have to use to make the following calculation:
New MCE=value added time/throughput time
New MCE=2.7/4
New MCE=67.5%
1. Based on the information given the throughput time is 9 days.
2. The manufacturing cycle efficiency (MCE) for the quarter is 30%.
3. The percentage of the throughput time is 70%.
4. The delivery cycle time is 23 days.
5. The New MCE is 68%.
1. Throughput time
Throughput time = Process time + Inspection time + Move time + Queue time
Throughput time= 2.7 +0.3+ 1.0 + 5.0
Throughput time=9 days
2. Manufacturing cycle efficiency (MCE)
Manufacturing cycle efficiency (MCE) = Value-added time / Throughput time
Manufacturing cycle efficiency (MCE) = 2.7 /9
Manufacturing cycle efficiency (MCE)=30%
3. Non-value-added activities
Non-value-added activities = 100% - 30%
Non-value-added activities = 70%
4. Delivery cycle time
Delivery cycle time = Wait time + throughput time
Delivery cycle time = 14.0 + 9.0
Delivery cycle time = 23 days
5. New MCE
New MCE = Value-added time / Throughput time
New MCE=2.7/(0.3+2.7+1.0)
New MCE 2.7 / 4
New MCE =67.5%
New MCE =68% (Approximately)
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Spotter Corporation reported the following for June in its periodic inventory records. Date Description Units Unit Cost Total Cost June 1 Beginning 20 $ 10.00 $ 200.00 11 Purchase 30 11.00 330.00 24 Purchase 30 13.00 390.00 30 Ending 34 Required: Calculate the cost of ending inventory and the cost of goods sold under the (a) FIFO, (b) LIFO, and (c) weighted average cost methods. (Do not round your intermediate calculations. Round "Weighted Average Cost" to 2 decimal places.)
Answer:
(a) FIFO
cost of ending inventory = $442.00
cost of goods sold = $486.00
(b) LIFO
cost of ending inventory = $354.00
cost of goods sold = $566.00
(c) weighted average cost
cost of ending inventory = $391.00
cost of goods sold = $529.00
Explanation:
(a) FIFO
cost of ending inventory
cost of ending inventory = Number of Units left × Earliest Price
= 34 × $13.00
= $442.00
cost of goods sold (46 units sold during the year)
cost of goods sold : 20 units × $10 = $200
26 units × $11 = $286
Total = $486
(b) LIFO
cost of ending inventory
cost of ending inventory : 20 units × $10 = $200
14 units × $11 = $154
Total = $354
cost of goods sold (46 units sold during the year)
cost of goods sold : 30 units × $13 = $390
16 units × $11 = $176
Total = $566
(c) weighted average cost
cost of ending inventory
cost of ending inventory = Number of Units left × Average price
New Average Price = ((20 units × $10) + (30 units × $11)) / 50 units
= $10.60
New Average Price = ((50 units × $10.60) + (30 units × $13)) / 80 units
= $11.50
cost of ending inventory = 34 units × $11.50
= $391.00
cost of goods sold (46 units sold during the year)
cost of goods sold = Number of Units Sold × Average price
= 46 units × $11.50
= $529.00
c
Suppose the U.S. imports cars from the UK manufacturer, McLaren. Consider an appreciation of the pound. Which of the following statements correctly describe the effects of thischange?
A. Hold all other prices constant.
B. U.S. consumers pay more dollars for each McLaren car they import from the UK.
C. McLaren supplies a greater quantity of dollars to the foreign exchange market.
D. U.S. consumers increase their purchases of McLaren cars.
E. McLaren's dollar revenues fall.
To peg the pounds per dollar exchange rate at a level higher than the market clearing exchange rate, the UK government needs to:_________.
a. buy pounds and sell dollars
b. buy dollars and sell pounds
c. simple announce a target exchange rate
Answer:
b. and a
Explanation:
Answer:
b. and
Explanation:
Remember, when foreign exchange rates between two currencies of particular country rises (appreciates), it effects is experienced most by the country whose currency hasn't risen. In this case therefore, this would make U.S. consumers pay more dollars for each McLaren car they import from the UK.
Also, to peg the pounds per dollar exchange rate at a level higher than the market clearing exchange rate, the UK government needs to buy pounds and sell dollars, because reducing the supply of pounds in the exchange market creates an opportunity for higher exchange prices.
g Depreciation refers to which one of the following? The amount of money that is lost over a period when services are underutilized. An estimate of how much of a tangible asset has been used during an accounting period: considered an expense that requires the use of cash deducted from the operations revenue. The amount of money still owed on a tangible asset, minus the amount of expenses spent to facilitate the utilization of the asset (utilities, personnel, enabling assets, etc.). An estimate of how much of a tangible asset has been used during an accounting period: considered an expense that does not require any cash outflow under the accrual basis accounting.
Answer:
The answer is D
Explanation:
Depreciation is best described as An estimate of how much of a tangible asset has been used during an accounting period: considered an expense that does not require any cash outflow under the accrual basis accounting.
Depreciation reduces the value of an asset and it reduces it over the life span of an asset. Depreciation is a non cash reduction. Depreciation tells us how much the value of an asset has reduced.
The formula is (cost of the asset - any residual value) ÷ the number of useful life span
Terry's father loaned her $15,000 for college expenses. Terry agreed to repay the $15,000 in a lump sum 5 years after graduation. No interest was to be charged. Terry, who is now a senior, has the prospects of marrying a rather wealthy man and wishes to repay the loan on graduation day. Assuming that father can invest the money at 12% interest, how much should he be willing to accept on graduation day rather than waiting 5 years for his money
Answer:
PV= $8,511.40
Explanation:
Giving the following information:
Final value= 15,000
Number of years= 5 years
Interest rate= 12%
We need to calculate the present value of the $15,000. We will use the following formula:
FV= PV*(1+i)^n
Isolating PV:
PV= FV/(1+i)^n
PV= 15,000/1.12^5
PV= $8,511.40
Other things equal, the multiplier will be greater
Answer:
The larger
Explanation:
marginal propensity to consume. New loans decrease the money supply in an economy.
In game theory, a Nash equilibrium occurs when: Group of answer choices Both players are incented to "cheat" to improve their positions Neither player can improve their position Nether player has a dominate strategy Two or more players collude on pricing
Answer:
Neither player can improve their position
Explanation:
Game theory is the method of modeling the strategic engagement of multiple players in a situation that involves rules and results.
Nash equilibrium is a term of game theory in which the optimum result of a game is one in which no participant has an incentive to diverge from his selective strategy after examining the selection of an opponent
Therefore according to the given situation, the second option is correct
The approach to ethical behavior which proposes that actions and plans should be judged by their consequences, thus producing the greatest benefit to society with the least harm or the lowest cost is called:__________.
A) individual rights approach.
B) mercantilism approach.
C) utilitarian approach.
D) justice approach.
E) moral imperialism approach.
Answer:
The correct answer is option (C)utilitarian approach.
Explanation:
Utilitarian approach: It is referred to as an action in relative to outcomes and reaction
For example, the cost and net benefits of all group of people based on an individual level. that is, by works towards achieving or aiming for the best for the greatest number while producing the least amount of suffering or harm.
The University of Puhonicks hires several professors that specialize in accounting, management, and economics and clusters each into one of three departments. The dean has obviously decided to group employees by:________
a) Project.
b) Function.
c) Product.
d) Geography.
Answer:
b) Function
Explanation:
The Dean placed professors in departments based on the subjects they teach or based on their functions in the school. So all professors that function as economics professors are placed in the same department. This is an example of grouping employees by functions.
In geographic grouping, professors would be grouped based on the different regions they teach.
In product grouping, employees are placed in groups based on the product they produce.
I hope my answer helps you
The Field, Brown & Snow partnership was begun with investments by the partners as follows: Field, $131,700; Brown, $167,700; and Snow, $155,400. The partners decide to liquidate, sharing all losses equally. On May 31, after all assets were sold and all creditors were paid, only $47,100 in partnership cash remained.
Required:
a. Compute the capital account balance of each partner after the liquidation of assets and the payment of creditors.
b. Assume that any partner with a deficit agrees to pay cash to the partnership to cover the deficit. Present the journal entries on May 31 to record (a) the cash receipt from the deficient partner(s) and (b) the final
disbursement of cash to the partners.
c. Assume that any partner with a deficit is not able to reimburse the partnership. Present journal entries (a) to transfer the deficit of any deficient partners to the other partners and (b) to record the final disbursement of cash to the partners.
Answer:
a. The capital account balance of each partner after the liquidation of assets and the payment of creditors would be as follows:
Field Brown Snow
Capital Balance -4,200 31,800 19,500
b. a
Debit Credit
Cash 4,200
Field capital 4,200
b. Debit Credit
Brown capital 31,800
Snow capital 19,500
Cash 51,300
c. a Debit Credit
Brown capital 2100
Snow capital 2100
Field Capital 4,200
b. Debit Credit
Brown capital 29,700
Snow capital 17,400
Cash 47,100
Explanation:
a. In order to calculate the capital account balance of each partner after the liquidation of assets and the payment of creditors we would have to make the following calculations:
Field Brown Snow Total
Initial Investment $131,700 $167,700 $155,400 454,800
Allocation of all losses: 135,900 135,900 135,900 407,700
(454,800-47,100)/3
Capital Balance -4,200 31,800 19,500 47,100
b. a. The record of the cash receipt from the deficient partner(s) would be as follows:
Debit Credit
Cash 4,200
Field capital 4,200
b. The record the final disbursement of cash to the partners would be as follows:
Debit Credit
Brown capital 31,800
Snow capital 19,500
Cash 51,300
c. a Record to transfer the deficit of any deficient partners to the other partners would be as follows:
Debit Credit
Brown capital 2100
Snow capital 2100
Field Capital 4,200
Brown capital= 4,200/2=2100
Snow capital=4,200/2=2100
b. Record the final disbursement of cash to the partners would be as follows:
Debit Credit
Brown capital 29,700
Snow capital 17,400
Cash 47,100
Brown capital=31,800-2,100 =29,700
Snow capital=19,500-2,100=17,400
Larkspur, Inc. purchased a delivery truck with a $44000 list price. The company was given a $4200 cash discount by the dealer and paid $2200 sales tax. Annual insurance on the truck is $1000. As a result of the purchase, by how much will Larkspur, Inc. increase its truck account
Answer:
Larkspur Inc. will increase its truck account by: $43,000.
Explanation:
Step I
To arrive at the above, we need to make the necessary additions and deductions:
Purchase Price = $44,000
Less cash discount of $4,200. Therefore, the final offer is
$44,000-$4,200 = $39,800.
Step II - Calculate the final value truck by applying Sales Tax
Final sales value amount plus sales tax
$39,800 + $2,200 = $ 42 000
Step III - Calculate Total cost to company by adding cost of insurance of the vehicle.
$ 42 000 + $1,000 = $ 43,000
Therefore the total cost of the truck the company is $43,000.
Cheers!
Closing Entries with Net Income Assume that the entry closing total revenues of $3,190,000 and total expenses of $2,350,000 has been made for the year ending December 31. At the end of the fiscal year, Teresa Schafer, Capital has a credit balance of $1,885,000 and Teresa Schafer, Drawing has a balance of $770,000. a. Journalize the entry required to close the Teresa Schafer, Drawing account. b. Determine the amount of Teresa Schafer, Capital at the end of the period. $
Answer:
a. Debit Teresa's Capital account for $770,000; and Credit Teresa's Drawing account for $770,000.
b. Teresa Schafer, Capital at the end of the period is $$1,955,000
Explanation:
a. Journalize the entry required to close the Teresa Schafer, Drawing account.
Since the drawing will affect capital by reducing it, the journal entry will look as follows:
Particulars Dr ($) Cr ($)
Teresa's Capital account 770,000
Teresa's Drawing account 770,000
(To record the closing the Teresa Schafer, Drawing account.)
b. Determine the amount of Teresa Schafer, Capital at the end of the period.
To do this, we have to calculate the net profit first as follows:
Net profit = Total revenue - Total cost = $3,190,000 - $2,350,000 = $840,000
Since net profit will increase capita while drawing will reduce capital, we therefore have:
Capital at the end of the period = Capital + Net profit - Drawing = $1,885,000 + $840,000 - $770,000 = $1,955,000.
Therefore, Teresa Schafer, Capital at the end of the period is $$1,955,000.
Presented below is information related to equipment owned by Bramble Company at December 31, 2020. Cost $10,260,000 Accumulated depreciation to date 1,140,000 Expected future net cash flows 7,980,000 Fair value 5,472,000 Bramble intends to dispose of the equipment in the coming year. It is expected that the cost of disposal will be $22,800. As of December 31, 2020, the equipment has a remaining useful life of 5 years.Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2020
Answer and Explanation:
The journal entry to record the impairment of the loss is shown below:
Loss on impairment Dr $3,670,800
To Accumulated depreciation - Equipment $3,670,800
(Being the loss on impairment is recorded)
For recording this we debited the loss on impairment as it increased the losses and credited the accumulated depreciation as it increased the balance of accumulated depreciation
Working note:
Cost $10,260,000
Less: Accumulated depreciation -$1,140,000
Carrying Amount $9,120,000
Less Fair value -$5,472,000
Plus: Cost of disposal $22,800
Loss on impairment $3,670,800
Hutter Corporation declared a $0.50 per share cash dividend on its common shares. The company has 35,000 shares authorized, 18,000 shares issued, and 14,000 shares of common stock outstanding. The journal entry to record the dividend declaration is:
Answer:
Journal Entry
Dr. Dividend $7,000
Cr. Dividend Payable $7,000
Explanation:
Dividend are only paid to the outstanding share. Outstanding shares re those share is in held by the stockholders of the company at a specific time period.
Authorised share are those shares which a company can issue in the market legally.
Issued shares are those share which have been issued by the company.
Dividend Declared = Outstanding shares x dividend per share.
Dividend Declared = 14,000 shares x $0.5 = $7,000
Federal Semiconductors issued 11% bonds, dated January 1, with a face amount of $830 million on January 1, 2021. The bonds sold for $767,557,868 and mature on December 31, 2040 (20 years). For bonds of similar risk and maturity the market yield was 12%. Interest is paid semiannually on June 30 and December 31. Federal determines interest at the effective rate. Federal elected the option to report these bonds at their fair value. On December 31, 2021, the fair value of the bonds was $750 million as determined by their market value in the over-the-counter market. Assume the fair value of the bonds on December 31, 2022 had risen to $756 million.Required: Complete the below table to record the following journal entries. 1. & 2. Prepare the journal entry to adjust the bonds to their fair value for presentation in the December 31, 2018, balance sheet, and adjust the bonds to their fair value for presentation in the December 31, 2019, balance sheet. Federal determined that one-half of the increase in fair value was due to a decline in general interest rates.
Answer:
discount on bonds payable 18,383,020.48 debit
other comprehensive income 18,383,020.48 credit
--to adjust Bonds at 12/31/2021 market value --
other comprehensive income 4.739.000 debit
discount on bonds payable 4.739.000 credit
--to adjust Bonds at 12/31/2022 market value --
Explanation:
We solve for the book value at year-end using effective rate
First year:
First payment
830,000,000 x 5.5% = 45,650,000
767,557,868 x 6.0% = 46,053,472.08
Amortization 403,472.08
Second Payment
830,000,000 x 5.5% = 45,650,000
(767,557,868 + 403,472.08) x 6.0% = 46,077,680.4
Amortization 427680.4
Carrying value at year-end
767,557,868 + 403,472.08 + 427,680.40 = 768,389,020.48
We need to recognize a deferred gain for the difference between these and the 750,000,000 market value at December 31th
which is $ 18,383,020.48 as these as not been realized it will be part of other comprehensive income
We will increase the discount to adjust the bonds payable account net balance.
Second year:
We repeat the process
First Payment:
830,000,000 x 5.5% = 45,650,000
Interest expense 750,000,000 x 6% = 45,000,000
Amortization 650000
Carrying value 750,000,000 + 650,000 = 750,650,000
Second Payment:
830,000,000 x 5.5% = 45,650,000
750,650,000 x 6% = 45,039,000
Amortization 611000
Carrying Value 750,650,000 + 611,000 = 751,261,000
Wer now compare this with the 756,000,000
as now the debt of the company has increased we are going to decrease the discounttand recognize a deferred loss through other comprehensive income as it wasn't realized
756,000,000 - 751,261,000 = 4.739.000
A company uses direct labor costs as it allocation base. Management estimates the company will incur $150,000 of direct labor cost during the year and total overhead costs of $200,000. What is their predetermined overhead rate? 1.33% 133% 50% 75%
Answer:
133.33%
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = Total overhead cost ÷ direct labor cost
where,
Total overhead cost is $200,000
And, the direct labor cost is $150,000
Now placing these values to the above formula
So, the predetermined overhead rate is
= $200,000 ÷ $150,000
= 1.33%
We simply applied the above formula
4.Swan Manufacturing is approached by a customer to fulfill a one-time-only special order for a product similar to one offered to domestic customers. The following per unit data apply for sales to regular customers: Direct materials$1,825 Direct labor900 Variable manufacturing support1,300 Fixed manufacturing support3,000 Total manufacturing costs$7,025.00 Markup (50%)3,512.50 Targeted selling price$ 10,537.50 Swan Manufacturing has excess capacity. Required: a.What is the full cost of the product per unit if the marketing costs is $3,000
Answer:
the full cost of the product per unit if the marketing costs is $3,000 is $7,025.
Explanation:
The cost of the special order will exclude the Fixed manufacturing support as these are common whether the order is accepted or not thus irrelevant. Remember to include the marketing costs as an additional cost.
Calculation of cost of the product :
Direct materials $1,825
Direct labor $900
Variable manufacturing support $1,300
marketing costs is $3,000
Total $7,025
Conclusion :
Thus, the full cost of the product per unit if the marketing costs is $3,000 is $7,025.
A decade ago the government of Weinsland decided to liberalize the country's economy. As a result, today the country is experiencing rapid economic advancement and societal changes favorable to international business. Which change is most likely to occur next in Weinsland?
A. As the country gets richer, there will be a shift in the society from "traditional" to "secular rational" values.
B. As the country gets richer, there will be a shift in the society from "well-being" to "survival" values.
C. The country, to further facilitate globalization, will commit to authoritarian ideologies.
D. The people in the country will give more importance to collectivism than to individualism.
E. The country will exhibit more need for social and material support structures built on collectives.
Answer:
As the country gets richer, there will be a shift in the society from "traditional" to "secular rational" values
Explanation:
In this scenario Weinsland decided to liberalize the country's economy. This will reduce government regulation on the economy and increase participation of private entities.
Liberalisation encourages economic growth.
Traditional conservative values are passed from generation to generation, and change only a little over time.
Secular rational values on the other hand embrace an ever changing economic environment where innovation constantly changes acceptable ways of doing things
Kier Company issued $600,000 in bonds on January 1, Year 1. The bonds were issued at face value and carried a 5-year term to maturity. The bonds have a 6.00% stated rate of interest and interest is payable in cash on December 31 each year. Based on this information alone, what are the amounts of interest expense and cash flows from operating activities, respectively, that will be reported in the financial statements for the year ending December 31, Year 1
Answer:
interest expense = $36,000
cash flows from operating activities = - $36,000
Explanation:
issued $600,000 in 6% bonds, with a 5 year maturity with an annual coupon paid December 31.
since bonds were issued at face value, interest expense = face value x bonds payable = 6% x $600,000 = $36,000
cash flows from operating activities related to this operation = -$36,000
interest expense is part of operating activities, so they decrease the cash flow from operating activities.
