Explanation:
probability and impact metrix is a tool for the project team iad in prioritizing risks.
Discuss the importance of innovation in the survival and success of a business. Include three strategies that you, as an entrepreneur, can use to encourage creativity and innovation in your small business in your response. Provide support for your response.
Answer is given below :
Explanation:
Innovation is part of the business and should be successful in the long run. If the business is not innovative it will one day fail and stop making a profit. example shows that it was the number one mobile phone in 2000 but it failed for a long time because it did not change the dynamic market and did not adopt the Android operating system.There are three strategies to promote creativity and innovation in small business: -A business should focus not only on the product, but also on the process, delivery and customer service of the product.A business must always come up with new ideas to survive in the market, which will reduce costs and improve production.A business must constantly monitor the current dynamic environment in the business world and adapt to market conditions and change business on time if necessary.The summarized balance sheets of Blossom Company and Nash Company as of December 31, 2021 are as follows:
Blossom Company Balance Sheet December 31, 2021
Assets $1750000
Liabilities $170000
Capital stock 875000
Retained earnings 705000
Total equities $1750000
Nash Company Balance Sheet December 31, 2021
Assets $1280000
Liabilities $280000
Capital stock 890000
Retained earnings 110000
Total equities $1280000
If Blossom Company acquired a 20% interest in Nash Company on December 31, 2021 for $300000 and the equity method of accounting for the investment were used, the amount of the debit to Equity Investments (Nash) would have been:__________
a. $300000.
b. $200000.
c. $256000.
d. $178000.
Answer:
The amount of the debit to Equity Investments (Nash) would have been:__________
b. $200,000.
Explanation:
a) Data and Calculations:
Blossom Company Balance Sheet December 31, 2021
Assets $1750000
Liabilities $170000
Capital stock 875000
Retained earnings 705000
Total equities $1750000
Nash Company Balance Sheet December 31, 2021
Assets $1280000
Liabilities $280000
Capital stock 890000
Retained earnings 110000
Total equities $1280000
Nash's net assets = $1,000,000 ($1,280,000 - $280,000)
Equity investment = 20% of $1,000,000 = $200,000
Goodwill on acquisition = $100,000 ($300,000 - $200,000)
Classical economists believed that: _________
a) budget deficits and surpluses were necessary for the control of economic fluctuations.
b) market economies are inherently unstable because of fluctuating aggregate demand.
c) market economies suffer prolonged periods of recessions and depressions.
d) price flexibility automatically directs market economies to full employment
Answer:
the answer is D
Explanation:
Using the reciprocal services method, which of the following equations represents the algebraic expressions for the two equations needed to capture the total costs of a Janitorial Department (J) that includes not only $500,000 of direct costs but also 20% of the Maintenance Department (M) cost and a Maintenance Department that includes not only $250,000 of direct costs but also 40% of the Janitorial Department? (Hint: This equation is derived from the two separate equations representing each department's costs.)
a. J = ($500,000 × 0.20) + [($250,000 × 0.20) + J]
b. J = $500,000 – (0.20 × $250,000) – (0.20 × J)
c. J = $500,000 + [(0.20 ÷ $250,000) + (0.40 ÷ J)]
d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}
Answer:
The equation that represents the algebraic expressions for the two equations needed to capture the total costs of the Janitorial Department is:
d. J = $500,000 + {0.20 × [$250,000 + (0.40 × J)]}
Explanation:
a) Data and Calculations:
Direct costs Percent of Service Dept.
Janitorial Department (J) $500,000 20% of M
Maintenance Department (M) $250,000 40% of J
b) The reciprocal services method reapportions the costs of the service departments to other service departments using a system of simultaneous equations. With its complications, the reciprocal method is the most accurate and equitable method for apportioning service departments' costs to production departments.
It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling it in:_________
A) monopoly situations
B) both the short run and long run
C) the long run
D) the short run
Answer:
B.both the short run and long run.
Lila Harrison is the sole employee of ABC Grocers. Her gross pay for the week was $400. She had deductions of $50 for federal income tax, $24.80 for social security tax, and $5.80 for Medicare tax. The journal entry to record her gross pay would include:
Answer:
Debit to salary expense for $400.00
Explanation:
In the case when a company is preparing the profit and loss statement so they first have the gross salary
The net salary should be
= Gross salary - deductions - taxes
Now in order to record the gross pay we have to debit to the salary expense for $400 as it increased the expense and expense contains the normal debit balance
On January 1, 2021, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,600. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:
Year-end Ending inventory at year-end costs Cost Index
2021 $131,040 1.05
2022 150,040 1.10
2023 160,320 1.20
In determining the inventory balance for Badger to report in its 12/31/2022 balance sheet: _____________-
a. An additional layer of $12,760 is added to the 12/31/2021 balance.
b. An additional layer of $24,760 is added to the 12/31/2021 balance.
c. An additional layer of $23,760 is added to the 12/31/2021 balance.
d. None of these answer choices are correct.
Answer:
a. An additional layer of $12,760 is added to the 12/31/2021 balance.
Explanation:
The computation of the inventory balance is given below:
2021 Base year cost is
= $131,040 ÷ 1.05
= $124,800
Additional layer is
= $124,800 - $101,600
= $23,200
2022 Base year cost is
= $150,040 ÷ 1.10
= $136,400
Additional layer is
= ($136,400 - $124,800 ) × 1.10
= $11,600 1.10
= $12,760
Therefore the first option is correct
Bold Stapler Sales Company (BSS) began 2019 with cash of $80,000, inventory of $7,200 (400 staplers that cost $18 each), $2,000 of common stock, and $2,000 of retained earnings. The following events occurred during 2019.
1. BSS purchased additional inventory twice during 2019. The first purchase consisted of 1,600 staplers that cost $21 each, and the second consisted of 2,400 staplers that cost $25 each. The purchases were on account.
2. The company sold 4,220 staplers for cash at a selling price of $45 each.
Required: Determine the ending inventory and cost of goods sold using the three different cost flow assumptions: FIFO, LIFO, and Weighted Average.
Answer:
Bold Stapler Sales Company (BSS)
FIFO LIFO Weighted Average
Ending inventory $4,500 $3,240 $4,122
Cost of goods sold $96,300 $97,560 $96,678
Explanation:
a) Data and Calculations:
Beginning balances in 2019:
Cash $80,000
Inventory $7,200
Common stock $2,000
Retained earnings $2,000
Description Units Unit Cost Total
Beginning inventory 400 $18 $7,200
The first purchase 1,600 $21 33,600
The second purchase 2,400 $25 60,000
Goods available 4,400 $100,800
Sales of units (4,220) $45 $189,900
Ending inventory 180
FIFO:
Ending inventory = $4,500 ($25 * 180)
Cost of goods sold = $96,300 ($100,800 - $4,500)
LIFO:
Ending inventory = $3,240 ($18 * 180)
Cost of goods sold = $97,560 ($100,800 - $3,240)
Weighted Average:
Weighted average cost per unit = $22.91 ($100,800/4,400)
Ending inventory = $4,122 (22.91 * 180)
Cost of goods sold = $96,678 ($100,800 - $4,122)
Happy Lawn Company started a lawn services business on January 1, 20X1 (so all account balances were zero on January 1, 20X1). It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days. All of these sales were made on credit. During 20X1, cash collected from its customers totaled $750,000 for services rendered during the year. At the end of 20X1, the Accounts Receivable for Happy Lawn had a balance of $60,000. After all write-offs but before the year-end adjusting entry, the Allowance for Doubtful Accounts had a debit balance of $4,000.
Assume that Happy Lawn uses the percentage of credit sales method (to directly calculate the bad debt expense) instead of the aging method, and it is estimated that it will not collect 1% of the total credit sales.
Required:
Under this assumption what is Happy Lawn's 20X1 Bad Debt Expense?
Answer:
$754,000
Explanation:
Calculation to determine Happy Lawn's 20X1 Bad Debt Expense?
Using this formula
Bad Debt Expense=Cash collected +
Allowance for Doubtful Accounts debit balance
Let plug in the formula
Bad Debt Expense=$750,000+$4,000
Bad Debt Expense=$754,000
Therefore Happy Lawn's 20X1 Bad Debt Expense is $744,000
Based on this given assumption, Happy Lawn's 20x1 Bad Debt Expense for the year is $12,140 ($8,140 + $4,000).
Data and Calculations:
Cash collected during 20X1 = $750,000
Accounts Receivable balance at year-end = $60,000
Doubtful Accounts after write-offs = $4,000
The total credit sales = $814,000 ($750,000 + $60,000 + $4,000)
Estimated uncollectible = 1% of total credit sales
Therefore, the uncollectible allowance (doubtful accounts) balance would be = $8,140 ($814,000 x 1%)
Thus, based on the assumption, Happy Lawn's 20x1 Bad Debt Expense is $12,140 ($8,140 + $4,000).
Learn more about using the percentage of credit sales method to calculate the bad debt expense here: https://brainly.com/question/14104071
Comparing Three Depreciation Methods Dexter Industries purchased packaging equipment on January 8 for $249,400. The equipment was expected to have a useful life of four years, or 8,800 operating hours, and a residual value of $20,600. The equipment was used for 3,080 hours during Year 1, 1,848 hours in Year 2, 2,464 hours in Year 3, and 1,408 hours in Year 4. Required: 1. Determine the amount of depreciation expense for the four years ending December 31 by (a) the straight-line method, (b) the units-of-activity method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. Round the answer for each year to the nearest whole dollar. Depreciation Expense Year Straight-Line Method Units-of-Activity Method Double-Declining- Balance Method Year 1 $fill in the blank 1 $fill in the blank 2 $fill in the blank 3 Year 2 $fill in the blank 4 $fill in the blank 5 $fill in the blank 6 Year 3 $fill in the blank 7 $fill in the blank 8 $fill in the blank 9 Year 4 $fill in the blank 10 $fill in the blank 11 $fill in the blank 12 Total $fill in the blank 13 $fill in the blank 14 $fill in the blank 15 2. What method yields the highest depreciation expense for Year 1
Answer:
Straight line :
Depreciation expense each of the four years is $57,200
total depreciation = $228,800
Double declining :
Year 1 = $124,700
Year 2 = $62350
Year 3 = $31,175
Year 4 = $15,588
Total depreciation expense = $233,813
Activity based depreciation
year 1 = $80,080
year 2 = $48,048
year 3 = $64,064
year 4 = $36,608
Total depreciation expense = $288,800
the deprecation method that yields the highest depreciation expense in year 1 is the double declining method
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($249,400 - $20,600) / 4 = $57,200
Depreciation expense each of the four years is $57,200
total depreciation = $57,200 x 4 = $228,800
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/4
Year 1 = 2/4 x $249,400 = 124,700
book value = $249,400 - 124,700 = 124,700
Year 2 = 2/4 x 124,700 = 62350
Book value = 124,700 - 62350 = 62350
Year 3 = 2/4 x 62350 = 31,175
book value = 62350 - 31,175 = 31,175
Year 4 = 2/4 x 31,175 = 15,587.50
Addition of the depreciation expenses = $233,812.50
Activity method based on hours worked = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
($249,400 - $20,600) / 8,800 = 26
year 1 = 26 x 3,080 = $80,080
year 2 = 26 x 1,848 = $48,048
year 3 = 26 x 2,464 = $64,064
year 4 = 26 x 1,408 = $36,608
Addition of the depreciation expenses = $288,800
A stock has a beta of 1.45, the expected return on the market is 19 percent, and the risk-free rate is 5.00 percent. What must the expected return on this stock be? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Answer: 25.30%
Explanation:
This can be calculated by the Capital Asset Pricing Model (CAPM):
= Risk free rate + Beta * (Market return - Risk free rate)
= 5% + 1.45 * (19% - 5%)
= 5% + 20.3
= 25.30%
A company purchased $10,300 of merchandise on June 15 with terms of 2/10. n/45, and FOB shipping point. The freight charge, $650, was added to the .amount. On June 20, it returned $1,040 of that merchandise. On June 24, it paid the balance owed for the merchandise taking any discount it is entitled to. The cash paid on June 24 equals:_________
a. $9,224.
b. $10,590
c. $10.950.
d. $10.690.
e. $9,725.
b should be that correct answer
Inacio Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory 2,300 Materials costs $ 14,400 Conversion costs $ 6,500 Percent complete with respect to materials 75% Percent complete with respect to conversion 20% Units started into production during the month 11,000 Units transferred to the next department during the month 9,900 Materials costs added during the month $ 173,500 Conversion costs added during the month $ 243,500 Ending work in process inventory: Units in ending work in process inventory 3,400 Percent complete with respect to materials 90% Percent complete with respect to conversion 30% The cost per equivalent unit for materials for the month in the first processing department is closest to: Multiple Choice $12.21 $13.15 $11.90 $14.50
Answer:
Inacio Corporation
The cost per equivalent unit for materials for the month in the first processing department is closest to:
= $14.50
Explanation:
a) Data and Calculations:
Units Materials Conversion
Beginning work in process 2,300 $14,400 $6,500
Percentage of completion 75% 20%
Units started during the month 11,000
Total units available 13,300
Units transferred to the next 9,900 100% 100%
Ending work in process 3,400 90% 30%
Costs added during the month $173,500 $243,500
Equivalent units of production:
Units Materials Conversion
Units transferred to the next 9,900 9,900 (100%) 9,900 (100%)
Ending work in process 3,400 3,060 (90%) 1,020 (30%)
Equivalent units of production 12,960 10,920
Costs of production: Materials Conversion
Beginning work in process $14,400 $6,500
Costs added during the month 173,500 243,500
Total costs of production $187,900 $250,000
Cost per equivalent unit: Materials Conversion
Total costs of production $187,900 $250,000
Equivalent units of production 12,960 10,920
Cost per equivalent unit $14.50 $22.89
Given the following information, determine the cost of goods sold at December 31 using the LIFO periodic inventory method:
December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.
a. $51.75
b. $94.00
c. $50.75
d. $83.22
e. $41.30
Answer:
COGS= $297
Explanation:
Giving the following information:
December 2: 5 units were purchased at $7 per unit.
December 9: 10 units were purchased at $9.40 per unit.
December 11: 12 units were sold at $35 per unit.
December 15: 20 units were purchased at $10.15 per unit.
December 22: 18 units were sold at $35 per unit.
First, we need to calculate the number of units sold:
Number of units sold= 12 + 18= 30
Now, under the LIFO (last-in, first-out) method, the cost of goods sold is calculated using the cost of the lasts units incorporated into inventory:
COGS= 20*10.15 + 10*9.4
COGS= $297
If the price of oil, a close substitute for coal, increases then:
a. the demand curve for coal will shift to the right.
b. equilibrium price and quantity of coal will not change.
c. supply curve for coal will shift to the right.
d. demand curve for coal will shift to the left.
e. supply curve of coal will shift to the left.
Answer:
A
Explanation:
Substitute goods are goods that can be used in place of another good.
if the price of a good increases, the demand for the substitute increases and if the price of the good reduces, the demand for the substitute increases.
If the price of oil increases, it becomes cheaper to buy coal. As a result, there would be a rightward shift of the demand curve for coal. As a result, the equilibrium price and quantity would increase
The board of commissioners of the City of Hartmoore adopts a general fund budget for the year ending June 30, 2020. It includes revenues of $1,530,000, bond proceeds of $402,500, appropriations of $1,100,000, and operating transfers out of $502,500. If this budget is formally integrated into the accounting records, what journal entry is required at the beginning of the year? What later entry is required?
Solution :
Estimated revenues = $1,530,000
Other financing sources - bond proceeds = $402,500
Appropriations = $1,100,000
Est other fin uses = $502,500
Budgetary fund balance = $195,000
Appropriations = $1,100,000
Est other fin uses = $502,500
Budgetary fund balance = $195,000
Est Rev = $1,530,000
Other fin sources bond proceeds = $402,500
Suppose a group of people read an article on capital punishment. Prior to reading the article, 60% of the members of the group were opposed to capital punishment, while 40% of the members of the group were in favor of capital punishment. According to studies of human decision-making, which of the following is likely?
a. The members of the group would elect a representative in favor of capital punishment.
b. After reading the article, all members of the group are in favor of capital punishment.
c. After reading the article, all members of the group oppose capital punishment.
d. After reading the article, 60% of the members of the group are opposed and 40% of the members of the group are in favor of capital punishment.
Answer:
According to studies of human decision-making, the most likely is:
c. After reading the article, all members of the group oppose capital punishment.
Explanation:
The article, provided for reading by supporters and opposers, will likely sway the 40% of the group, who are initially supportive of capital punishment, to now oppose capital punishment,especially if the article critically opposes capital punishment. There is no way majority of the group will support capital punishment. Therefore, options a and b are incorrect. For option d, after reading the article, the opinions of some opposers and supporters may shift either way. They will not remain the same as before. This rules out option d, leaving only option c as the correct option.
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given below: Standard Standard Quantity or Hours 6.80 pounds 0.50 hours Standard Price or Rate $ 3.00 per pound $11.00 per hour Direct materials Direct labor $20.40 $ 5.50 During the most recent month, the following activity was recorded:
a. 22,900.00 pounds of material were purchased at a cost of $2.70 per pound.
b. All of the material purchased was used to produce 3,000 units of Zoom.
c. 1,400 hours of direct labor time were recorded at a total labor cost of $18,200.
Required:
1. Compute the materials price and quantity variances for the month.
2. Compute the labor rate and efficiency variances for the month.
(For all requirements, Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values. Round your intermediate calculations to the nearest whole dollar.)
1. Materials price variance
Materials quantity variance
2. Labor rate variance
Labor efficiency variance
Answer:
Huron Company
1. Materials price variance = $6,870 F
Materials quantity variance = $7,500 U
2. Labor rate variance = $($2,800) U
Labor efficiency variance = $1,100 F
Explanation:
a) Data and Calculations:
Standard Quantity 6.80 pounds
Standard Price $ 3.00 per pound
Direct materials $20.40
Standard Rate $11.00 per hour
Standard hours 0.50 hours
Direct labor $ 5.50
a. Purchase of 22,900 pounds of materials at $2.70
b. Production units = 3,000
Actual quantity used 7.63 pounds (22,900/3,000)
Actual Price = $2.70
Actual material cost per unit = $20.61
c. Direct labor time = 1,400 hours at a total labor cost of $18,200
Actual rate per hour = $13 per hour ($18,200/1,400)
Actual hours = 0.47 hours
Actual direct labor cost per unit = $6.07
1. Materials price variance for the month = (Standard Price - Actual Price) * Actual Quantity of materials
= ($3 - $2.70) * 22,900
= $6,870 F
Quantity variance for the month = (Standard Qty - Actual Qty) * Standard Price
= (20,400 - 22,900) * $3
= -$7,500 U
2. Labor rate variance for the month = (Standard rate - Actual rate) * Actual labor hours
= ($11.00 - $13.00) * 1,400
= -$2,800 U
Direct labor Efficiency variance for the month = (Standard hours - Actual hours) * Standard Rate
= (1,500 - 1,400) * $11
= $1,100
Which of the following are required for a capacity calculation (choose all that apply)?
a. Time between process starts.
b. Time between process completions.
c. Total Time spent in the process
d. Length of the time horizon in question
Answer:
• time between process starts.
• time between process completions
• length of the time horizon in question
Explanation:
Capacity utilisation refers to the measure of the extent of the usage of the productive capacity of a business. It is the percentage of total capacity which is being achieved in a particular period.
Based on the options given, the ones required for capacity utilization include the time between process starts, the time between process completions and the length of the time horizon in question.
Given the following data for Scurry Company, what is the cost of goods sold? Beginning inventory of finished goods $100,000 Cost of goods manufactured 700,000 Ending inventory of finished goods 200,000 Beginning work-in-process inventory 300,000 Ending work-in-process inventory 50,000 Select one: a. $600,000 b. $950,000 c. $500,000 d. $800,000
Answer:
Scurry Company
The cost of goods sold is:
= a. $600,000
Explanation:
a) Data and Calculations:
Beginning inventory of finished goods $100,000
Cost of goods manufactured 700,000
Ending inventory of finished goods (200,000)
Cost of goods sold = $600,000
Beginning work-in-process inventory 300,000
Ending work-in-process inventory 50,000
b) The cost of goods sold includes the beginning inventory of finished goods and the cost of goods manufactured within the period, less the ending inventory of finished goods. It does not include inventories of work-in-process.
A downward-sloping yield curve generally indicates which of the following
(I) higher current short-term interest rates
(II) higher inflation expectations in future years
(III) a strong possibly of a recession within the next year
a) (I) and (III).
b) (II).
c) (III) only.
d) all are correct.
Answer:
a
Explanation:
A yield curve is a graph that plots the interest rate of bonds at a set point in time.
When the yield curve is downward sloping, it is expected that short term interest rate would be higher than the long term interest rate.
A downward sloping yield curve can be an indictor of coming recession.
A recession is when the GDP of a country for two consecutive quarters is negative. In a period of recession, interest rate is usually lower.
A downward sloping yield curve can also be an indicator that there is an expectation of lower inflation rate in coming years.
If the yield curve is upward sloping, the short term interest rate would be lower than the long term interest rate
A flat yield curve is an indicator that interest rate would be constant
A firm with earnings before interest and taxes of $500,000 needs $1 million of additional funds. If it issues debt, the bonds will mature after 20 years and pay interest of 8 percent. The firm could issue preferred stock with a dividend rate of 8 percent. The firm has 100,000 shares of common stock outstanding and is in the 30 percent income tax bracket. What are the (1) earnings per common share under the two alternatives, (2) the times-interest-earned if the firm uses debt financing, and (3) the times-dividend-earned if the firm uses preferred stock financing
Answer:
Calculation of Earning Per Share
Particulars Debt Alternative($) Preferred Stock($)
Amount Required 1,000,000 1,000,000
Earning before Interest and Tax 500,000 500,000
Less: Interest Cost(8%) 80,000 ----
Earning After Interest 420,000 500,000
Tax(30%) 126,000 150,000
Earning After Tax 294,000 350,000
Less: Dividend to Pref. Shares 80,000
Earning Avai. for C. Stockholders 294,000 270,000
Outstanding shares 100,000 100,000
Earning Per Common Share 2.94 2.70
2. Times Interest Earned Ratio = EBIT / Interest
Times Interest Earned Ratio = 500,000 / 80,000
Times Interest Earned Ratio = 6.25 Times
3. Times Dividend Earned Ratio = Net Income / Preferred Dividend
Times Dividend Earned Ratio = 350,000 / 80,000
Times Dividend Earned Ratio = 4.375 Times
Precision Construction entered into the following transactions during a recent year.
January 2 Purchased a bulldozer for $250,000 by paying $20,000 cash and signing a $230,000 note due in five years.
January 3 Replaced the steel tracks on the bulldozer at a cost of $20,000, purchased on account. The new steel tracks increase the bulldozer's operating efficiency.
January 30 Wrote a check for the amount owed on account for the work completed on
February 1 Replaced the seat on the bulldozer and wrote a check for the full $800 cost.
March 1 Paid $3,600 cash for the licensing rights to use computer software for a two-year period.
Required:
Prepare the journal entries for each of the above transactions.
Answer:
Jan-02
Dr Bulldozer $ 250,000
Cr Cash $ 20,000
Cr Note Payable $ 230,000
Jan-03
Dr Bulldozer $ 20,000
Cr Accounts Payable $ 20,000
Jan-30
Dr Accounts Payable $ 20,000
Cr Cash $ 20,000
Feb-01
Dr Repair and Maintenance Expense $ 800
Cr Cash $ 800
Mar-01
Dr Computer Software $ 3,600
Cr Cash $ 3,600
Explanation:
Preparation of the journal entries for each of the above transactions.
Jan-02
Dr Bulldozer $ 250,000
Cr Cash $ 20,000
Cr Note Payable $ 230,000
(Purchased bulldozer)
Jan-03
Dr Bulldozer $ 20,000
Cr Accounts Payable $ 20,000
(Replaced tracks on bulldozer)
Jan-30
Dr Accounts Payable $ 20,000
Cr Cash $ 20,000
(Paid cash)
Feb-01
Dr Repair and Maintenance Expense $ 800
Cr Cash $ 800
(Repaired seat of bulldozer)
Mar-01
Dr Computer Software $ 3,600
Cr Cash $ 3,600
(Purchase computer software)
The Most Brilliant Professor Mullen Company's past experience indicates that 60% of its credit sales are collected in the month of sale, 30% in the next month, and 5% in the second month after the sale; the remainder (5%) is never collected. Budgeted credit sales were: January $240,000 February 144,000 March 360,000 The cash inflow (CRJ) in the month of March is expected to be A) $271,200. B) $205,200. C) $216,000. D) $259,200.
Answer: A. $271,200
Explanation:
Cash inflow in March will be:
= (60% * March sales) + (30% * February sales) + (5% * January sales)
= (60% * 360,000) + (30% * 144,000) + (5% * 240,000)
= 216,000 + 43,200 + 12,000
= $271,200
The direct method of reporting operating cash flows: ________
a. Separately lists cash receipts and payments.
b. Must be used by all companies.
c. Is used by most companies.
d. Is considered supplementary disclosure.
e. Is not recommended by the FASB, but is commonly used.
Answer:
e. Is not recommended by the FASB, but is commonly used.
Explanation:
A statement of cash flows is also known as cash flow statement and it is a financial statement which is used to illustrate how changes in income and various account of the balance sheet affect cash and cash equivalents.
The statement of cash flows is also used by financial experts or accountants to breakdown the cash-flow analysis into;
1. Cash-flow from investing activities: it represents the cash flow from investment such as proceeds from the sale of plant, equipments etc.
2. Cash-flow from financing activities: it represents the cash flow from debt or equity. Typically, it's the costs used in a financing a business.
3. Cash-flow from operating activities: it represents cash-flow and transactions from operational business activities such as employee salary, sales of goods etc.
Generally, the statement of cash flows provides financial information about an organization's operating profitability and how it use its operating cash flow.
Financial accounting standards board (FASB) is a private, non-profit organization saddled with the responsibility of establishing and maintaining financial accounting and reporting standards for general guidance of individuals or capital providers such as investors, issuers and auditors.
In Financial accounting, the direct method of reporting operating cash flows uses actual cash inflows and outflows from the operating activities of a company by generating data from the income statement (cash receipts and cash disbursements/payments).
However, the direct method of reporting operating cash flows is not recommended by the FASB, but it's commonly used.
This ultimately implies that, it's a recommended accounting method, but it's not an accounting standard required by the financial accounting standards board (FASB).
Required information Skip to question [The following information applies to the questions displayed below.] Timberly Construction makes a lump-sum purchase of several assets on January 1 at a total cash price of $900,000. The estimated market values of the purchased assets are building, $508,800; land, $297,600; land improvements, $28,800; and four vehicles, $124,800. Required: 1-a. Allocate the lump-sum purchase price to the separate assets purchased. 1-b. Prepare the journal entry to record the purchase. 2. Compute the first-year depreciation expense on the building using the straight-line method, assuming a 15-year life and a $27,000 salvage value. 3. Compute the first-year depreciation expense on the land improvements assuming a five-year life and double-declining-balance depreciation.
Answer:
The complete solution is defined in the attached file please find it.
Explanation:
Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $130,000 and would have a ten-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $16,000 per year to operate and maintain, but would save $46,000 per year in labor and other costs. The old machine can be sold now for scrap for $13,000. The simple rate of return on the new machine is closest to (Ignore income taxes.):
Answer:
The simple rate of return on the new machine is closest to 14.53%.
Explanation:
Assuming a straight-line depreciation method, we have:
Annual deprecation = Cost of the new machine / Useful life = $130,000 / 10 = $13,000
Net annual benefit = Annual saving - Annual operating and maintenance cost - Annual deprecation = $46,000 - $16,000 - $13,000 = $17,000
Net investment = Cost of the new machine - Scrap value of the old machine = $130,000 - $13,000 = $117,000
Simple rate of return on the new machine = Net annual benefit / Net investment = $17,000 / $117,000 = 0.1453, or 14.53%
Therefore, the simple rate of return on the new machine is closest to 14.53%.
Your company buys a computer system for $3 million and pays the vendor $200,000 to install the computer system. Your company should record: A. $3.2 million as expenses. B. $2.8 million as equipment and the rest as expenses. C. $3.2 million as equipment. D. $3 million as equipment and $200,000 as expenses.
Answer:
Your company should record:
C. $3.2 million as equipment.
Explanation:
a) Data and Calculations:
Cost of computer system = $3 million
Installation cost = $200,000
Total equipment cost = $3.2 million
b) The cost of installation, which helps to bring the computer system into its intended use, forms part of the equipment cost. Therefore, to record the asset in the books of the company, the sum of $3.2 million will be recorded as equipment. There are no expenses for the equipment at this time.
Question 4 of 15. Barney and Len each own 40% of partnership BLT. On September 15, 2019, Barney sells his interest to Ted, who is a 20% partner. On September 16, 2020, Len sells his interest to Ted. When does the partnership terminate? 9/15/2020 9/16/2020 12/31/2020 The partnership does not terminate.
Answer: 9/16/2020
Explanation:
Following the information given in the question, it should be noted that the partnership will terminate on 9/16/2020.
A partnership is terminated in a situation whereby there's a transfer of interest such that there's only one partner who then remains. In this casez the termination date will be the date that the interest was sold. Since the sale of interest took place on September 16, 2020, then this will be the termination date.
Which of the following statements are true regarding technology, gaming, and gambling? #1. Rapid-play poker machines have increased the number of problem and pathological gamblers. #2. Online gambling has resulted in an increased number of problem and pathological gamblers. #3. There is no evidence that technology has led to an increase in the number of people with gambling or gaming addictions. #4. Electronic media is a breeding ground for new addictions, such as Internet, video games, texting, and multiplayer games.
Answer:
1. Rapid-play poker machines have increased the number of problem and pathological gamblers.
2. Online gambling has resulted in an increased number of problem and pathological gamblers.
4. Electronic media is a breeding ground for new addictions, such as Internet, video games, texting, and multiplayer games.
Explanation:
The true statements regarding technology, gaming, and gambling include:
1. Rapid-play poker machines have increased the number of problem and pathological gamblers.
2. Online gambling has resulted in an increased number of problem and pathological gamblers.
4. Electronic media is a breeding ground for new addictions, such as Internet, video games, texting, and multiplayer games.
It should be noted that there are several betting companies nowadays and this has led to more people to be involved in gambling.
