Answer:
The collection is worth $37,525.78.
Explanation:
Giving the following information:
Your coin collection contains 59 1952 silver dollars.
Interest rate= 6.6%
Number of years= 2053 - 1952= 101 years
To calculate the value of the collection today, we need to use the following formula:
FV= PV*(1+i)^n
FV= 59*(1.066^101)
FV= $37,525.78
In January 2020, the management of Sheridan Company concludes that it has sufficient cash to permit some short-term investments in debt and stock securities. During the year, the following transactions occurred. Feb. 1 Purchased 500 shares of Muninger common stock for $27,500. Mar. 1 Purchased 700 shares of Tatman common stock for $17,500. Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1. July 1 Received a cash dividend of $0.50 per share on the Muninger common stock. Aug. 1 Sold 167 shares of Muninger common stock at $65 per share. Sept. 1 Received a $1 per share cash dividend on the Tatman common stock. Oct. 1 Received the semiannual interest on the Yoakem bonds. Oct. 1 Sold the Yoakem bonds for $41,000. At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.Prepare the adjusting entry at December 31, 2020, to report the investment securities at fair value. All securities are considered to be trading securities. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Answer:
December 31, 2020, fair value adjustment
Dr Investment in Muninger stocks 333
Cr Unrealized gain - Investment in Muninger stocks 333
December 31, 2020, fair value adjustment
Dr Unrealized loss - Investment in Tatman stocks 700
Cr Investment in Tatman stocks 700
Explanation:
Feb. 1 Purchased 500 shares of Muninger common stock for $27,500.
Dr Investment in Muninger stocks 27,500
Cr Cash 27,500
Mar. 1 Purchased 700 shares of Tatman common stock for $17,500.
Dr Investment in Tatman stocks 17,500
Cr Cash 17,500
Apr. 1 Purchased 40 $1,050, 6% Yoakem bonds for $42,000. Interest is payable semiannually on April 1 and October 1.
Dr Investment in Yoakem bonds 42,000
Cr Cash 42,000
July 1 Received a cash dividend of $0.50 per share on the Muninger common stock.
Dr Cash 250
Cr Dividend revenue 250
Aug. 1 Sold 167 shares of Muninger common stock at $65 per share.
Dr Cash 10,855
Cr Investment in Muninger stocks 9,185
Cr Gain on sale 1,670
Sept. 1 Received a $1 per share cash dividend on the Tatman common stock.
Dr Cash 700
Cr Dividend revenue 700
Oct. 1 Received the semiannual interest on the Yoakem bonds.
Dr Cash 1,260
Cr Interest revenue 1,260
Oct. 1 Sold the Yoakem bonds for $41,000.
Dr Cash 41,000
Dr Loss on sale 1,000
Cr Investment in Yoakem bonds 42,000
At December 31, the fair value of the Muninger common stock was $56 per share. The fair value of the Tatman common stock was $24 per share.
Answer:
Sheridan Company
Adjusting Entries for Trading Investments at Fair Value:
December 31, 2020:
Debit Investment in Muninger $333
Credit Gain on Investment $333
To record the $1 per share gain on investment (500 - 167 shares).
Debit Loss on Investment $700
Credit Investment in Tatma $700
To record the $1 per share loss on investment (700 shares).
Explanation:
Investments held for trading are short-term investments in debt and stock securities. They are accounted for at fair value.
This implies that at the end of each reporting period, the difference between the book value of the investment and the fair value is adjusted either as gain or loss on investment. This adjusting entry increases or reduces the book value of the investment to its fair value. The gain or loss remains an unrealized gain or loss until the investment is sold.
At the beginning of the month, the Forming Department of Martin Manufacturing had 23,000 units in inventory, 40% complete as to materials, and 20% complete as to conversion. During the month the department started 86,000 units and transferred 88,000 units to the next manufacturing department. At the end of the month, the department had 21,000 units in inventory, 80% complete as to materials and 60% complete as to conversion. How many units did the Forming Department start and complete in the current month
Answer:
Units stated and completed during the month= 65,000
Explanation:
The units stated and completed in the current period is referred to as the fully worked.
Using the first in first out (FIFO) approach, the fully worked is calculated as
Fully worked = newly introduced -closing inventory
= 86,000- 21,000 = 65000
Note that out of the 86,000 that were completed in the period, it assumed that 23,000 representing the opening inventory would first be completed and the balance would from the newly introduced.
Another way to determine the fully worked is as follows
Fully worked = transferred out - opening inventory
Fully worked = 88,000- 23,000 = 65,000
Units stated and completed during the month= 65,000
Ethics is a hot topic in business, as well as in Project Management. Using some of the examples presented therein, what kinds of dilemmas have you either seen, encountered, or can envision from your field of study and/or work? How does this affect international projects and venues?
Answer:
Without question, ethics is indeed a very hot subject of industry. Various forms of ethical challenge come up particularly in managing projects. I encountered only a handful of the above :-
(A) It is a predicament to finish the ethical task in a timely manner but to with over-exploit natural resources by simply avoiding even their own work-life balance.
(B) Much of the project has to be successfully completed and within likely cost. The conundrum faced can jeopardise the excess cost savings with the value of the project that would result in customer unhappiness.
An insured states her age as 40 on the application. When she dies, the insurer discovers that she was actually only 37 at the time of application. What will the insurance company do?
a) pays nothing since there was a material misrepresentation on the application
b) pays the death benefit in the amount that the premium at the correct age would have purchased
c) pays a decreased death benefit
d) adjust premiums to reflex correct age
Answer: pays the death benefit in the amount that the premium at the correct age would have purchased
Explanation:
According to the question, an insured states her age as 40 on the application and upon her death, the insurer discovers that the insured was 37 at the time of application.
The right thing for the insurance company to do is to pay the death benefit which in entitled to the insured in the amount which the premium at the correct age would have been bought. If insured overstates his or her age, the insurer will have to pay the full death benefit and then refund excess premiums paid.
Required: Using the adjusted trial balance on the next page for Buttross Manufacturing, Inc., prepare statements for the fiscal year ended September 30, 2020, in good form:
Part 1: Prepare a Statement of Cost of Goods Manufactured
Part 2: Prepare a Multiple-Step Income Statement
Aside: The general ledger would usually include a factory overhead control account and the detail of factory overhead would be in a subsidiary ledger. However, the detail of factory overhead has been put into the adjusted trial balance mixed with the other accounts to make sure you can distinguish accounts going into cost of goods manufactured from those going into the income statement.
Find the given attachments for answer.
Note: The adjusted trial balance is added.
Cost of Goods Sold = Beginning finished goods inventory + COGM - Ending Finished Goods Inventory = 69,000 + 311,000 -100,000 = 280,000.
Cost of goods available for sale = Beginning finished goods inventory + COGM
COGS = Cost of goods available for sale - Ending finished goods inventory.
The comparative balance sheet of ConnieJo Company, for December 31, Years 1 and 2 ended December 31 appears below in condensed form: Year 2 Year 1 Assets Cash $45,000 $53,500 Accounts receivable (net) 51,300 58,000 Inventories 147,200 135,000 Investments 0 60,000 Equipment 493,000 375,000 Accumulated depreciation—equipment (113,700) (128,000) Total Assets $622,800 $553,500 Liabilities and Stockholders' Equity Accounts payable $61,500 $42,600 Bonds payable, due Year 4 0 100,000 Common stock, $10 par 250,000 200,000 Paid-in capital in excess of par—common stock 75,000 50,000 Retained earnings 236,300 160,900 Total liabilities and stockholders' equity $622,800 $553,500 The income statement for the current year is as follows: Sales $629,700 Cost of goods sold 341,800 Gross profit $287,900 Operating expenses: Depreciation expense $24,700 Other operating expenses 75,300 Total operating expenses 100,000 Income from operations $187,900 Other income: Gain on sale of investment $5,000 Other expense: Interest expense 12,000 (7,000) Income before income tax $180,900 Income tax 64,100 Net income $116,800 Additional data for the current year are as follows: a. Fully depreciated equipment costing $39,000 was scrapped, no salvage, and equipment was purchased for $157,000. b. Bonds payable for $100,000 were retired by payment at their face amount. c. 5,000 shares of common stock were issued at $15 for cash. d. Cash dividends declared were paid $41,400.
Answer:
Kindly check attached picture
Explanation:
Kindly check attached picture for detailed statement using the direct method
An investor enters into a 2-year swap agreement to purchase crude oil at $51.25 per barrel. Soon after the swap is created, forward prices rise and the new 2-year swap price is $61.50. If interest rates are 1% and 2% on 1- and 2-year zero coupon government bonds, respectively, what is the gain or loss to be made from unwrapping the original swap agreement?
Answer:
The present Value of Annual Gain for two years made from unwrapping the original swap agreement is $20.00
Explanation:
From the given information;
The annual gain from swap agreements = $61.50 - $51.25
The annual gain from swap agreements = $10.25
Annual rate for the first year = 1% = 0.01
Annual rate for the second year = 2% = 0.02
However the present gain for the first year will be;
[tex]= \dfrac{Annual \ Gain}{(1+r_1)^1}[/tex]
[tex]= \dfrac{10.25}{(1+0.01)^1}[/tex]
= 10.14851485
The present gain for the second year will be;
[tex]= \dfrac{Annual \ Gain}{(1+r_2)^2}[/tex]
[tex]= \dfrac{10.25}{(1+0.02)^2}[/tex]
= 9.851980008
The present Value of Annual Gain for two years is:
[tex]= \dfrac{Annual \ Gain}{(1+r_1)^1} + \dfrac{Annual \ Gain}{(1+r_2)^2}[/tex]
= 10.14851485 + 9.851980008
= 20.00049486
≅ $ 20.00
The present Value of Annual Gain for two years is $20.00
A friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to find a job. She started on the first day of week two and was able to keep her job for the remaining eleven weeks. Use this information to answer the following three questions, assuming the unemployment rate is not changing: 1. Calculate the rate of job finding (f) for the summer, using an average rate per week. Enter this value in the box below. Note that if f is the rate of job finding, then the average spell of unemployment is (1/f).
Answer: 1. 12. 2. 1.090. 3. 0.08327
Explanation:
Here is the complete question:
friend and fellow student shares her employment experience over the last 12-week summer break. It took her one full week to find a job. She started on the first day of week two and was able to keep her job for the remaining eleven weeks. Use this information to answer the following three questions, assuming the unemployment rate is not changing:
1. Calculate the rate of job finding (f) for the summer, using an average rate per week. Enter this value in the box below. Note that if f is the rate of job finding, then the average spell of unemployment is (1/f).
The value of f is:
2. Calculate the rate of job separation (s), using an average rate per week. Enter this value into the box below. Note that if s is the rate of job separation, then the average length of employment is (1/s).
The value of s is:
3. Calculate the natural rate of unemployment (U) using the above results and enter this value in the box below.
The natural rate of unemployment (in percent) is
1. From the question, we can see that it was said that took her one full week to get a job over the last 12 week summer break. The unemployment rate will be 12.
The value of f is: 12
2. From the question, the average length of the employment is 11/12 weeks. The rate of job separation will be: s = 12weeks ÷ 11 weeks
s = 1.090
The value of s is: 1.090
3. The natural rate of unemployment will be:
U = s/(s+f)
= 1.090/(1.090 + 12)
= 1.090/13.090
= 0.08327
A company purchased a computer system at a cost of $25,000. The estimated useful life is 6 years, and the estimated residual value is $8,000. Assuming the company uses the double-declining-balance method, what is the depreciation expense for the second year
Answer:
$5,102
Explanation:
Double declining Method
Cost $ 25,000
B Residual Value $2,000
C = A - B Depreciable base $23,000
D Life [in years] 7
E = C/D Annual SLM depreciation $3,286
F = E/C SLM Rate 14.29%
G = F x 2 DDB Rate 28.57%
.
Depreciation schedule-Double declining
Year Beginning Book Value Depreciation rate Depreciation expense Accumulated Depreciation Ending Book Value
1 $25,000 , 28.57%, $7,143 , $7,143 $17,857
2 $17,857, 28.57%, $ 5,102 , $ 12,245, $12,755
What is a project, and what are its main attributes? How is a project different from what most people do in their day-to-day jobs? Discuss the importance of top management commitment and the development of standards for successful project management. Provide examples to illustrate the import
Answer:
In simple words, The project is a collective organization that is structured to accomplish a common goal. The best characteristics of the project are scale, purpose, money, staff, costs, deadlines.
Projects vary from daily operations-to-day activities in the way of ultimate goal, time frame, budget , resources, squad and concentrate. Day-to-day activities follow formed safety procedures and also have particular long-term objectives, while projects have particular short-term objectives, tight income, money and energy. Projects have been carried over by a particular team formed for a specific project.
The importance of senior managers in the project is of vital importance as they work as the guiding and monitoring authority for all the parties involved in the project. Due to this factor majority organisations gives the top mangers some monetary shares in relation to success of the project.
Ajax Computer Company is an accrual-method calendar-year taxpayer. Ajax has never advertised in the national media prior to this year. In November of this year, however, Ajax paid $3 million for television advertising time during a "super" sporting event scheduled to take place in early February of next year. In addition, in November of this year the company paid $2,500,000 for a one-time advertising blitz during a professional golf tournament in April of next year. What amount of these payments, if any, can Ajax deduct this year
Answer: No deduction can be claimed this year.
Explanation:
The options to the question are:
a. No deduction can be claimed this year.
b. $5.50 million
c. $2,500,000
d. $5.50 million only if the professional golf tournament is played before April 15.
Answer:
Since Ajax Computer company is an accrual method calender-year tax payer, the computer company would recognize the expenses only when such expenses are incurred and not at the time that cash is being paid for the the expenses
Ajax computer company already paid in advance for both advertisements the following year even though the advertisement eanst taking place that year. Therefore, the payments will not be considered to be an expense until advertisements has actually taken place. Because of this, Ajax cannot deduct the amounts paid for the advertisements next year and hence, no deduction will be claimed this year.
The following data apply to Elizabeth's Electrical Equipment: Value of operations $20,000 Short-term investments $1,000 Debt $6,000 Number of shares 300 The company plans on distributing $1,000 by repurchasing stock. What will the intrinsic per share stock price be immediately after the repurchase? Notes: With some combinations of variables, the residual policy may result in zero dividends and a zero payout ratio. These outcomes are noted in the topic [TOP] field if applicable.
Answer:
$50
Explanation:
Elizabeth's Electrical Equipment
Total Assets will be :
Value of operations of 20,000+ Short term investments of 1000
=$21,000
Debt = $6000
Hence:
Equity will be :
Assets - Debt
= $21,000-$6,000
Which will give us = $15,000
Number of shares which are outstanding
= 300
$15,000/300
=$50
Therefore the Intrinsic value per share will be $50 immediately after the repurchase has occured.
Toxemia Salsa Company manufactures five flavors of salsa. Last year, Toxemia generated net operating income of $40,000. The following information was taken from last year's income statement segmented by flavor (brackets indicate a negative amount):
Wimpy Mild Medium Hot Atomic
Contribution margin $(2000) $45,000 $35,000 $50,000 $162,000
Segment margin $(16,000) $(5000) $7000 $10,000 $94,000
Segment margin less
allocated common fixed
expenses $(26,000) $(15,000) $(3000) $0 $84,000
Toxemia expects similar operating results for the upcoming year. If Toxemia wants to maximize its profitability in the upcoming year, which flavor or flavors should Toxemia discontinue? A no flavors should be discontinued B wimpy C wimpy and mild D wimpy, mild, and medium
Answer:
C wimpy and mild
Explanation:
The Allocated fixed Common overhead is irrelevant for this Decision because the expense is a head office expense which is managed by a Head office department.
Of our interest is the Incremental Revenues and Expenses that result from existence of a Segment (Segment Margin).
The segment margin consists of controllable Fixed and Variable costs attributable to a particular segment.
Discontinue flavor giving a negative Segment Margin that is : Wimpy and Mild
Angara Corporation uses activity-based costing to determine product costs for external financial reports. The company has provided the following data concerning its activity-based costing system: Activities (and Activity Measures) Estimated Overhead Cost Machine related (machine-hours) $256,520 Batch setup (setups) $261,360 General factory (direct labour-hours) $178,560 Expected Activity Activities Product X Product Y Total Machine related 4,300 6,300 10,600 Batch setup 8,600 1,300 9,900 General factory 3,300 6,300 9,600 Assuming that actual activity turns out to be the same as expected activity, the total amount of overhead cost allocated to Product X would be closest to:
Answer:
The total amount of overhead cost allocated to Product X would be closest to $ 392,480
Explanation:
Activities (and Activity Measures) Estimated Overhead Cost
Machine related (machine-hours) $256,520
Batch setup (setups) $261,360
General factory (direct labour-hours) $178,560
Expected Activity
Activities Product X Product Y Total
Machine related 4,300 6,300 10,600
Batch setup 8,600 1,300 9,900
General factory 3,300 6,300 9,600
The total amount of overhead cost allocated to Product X would be closest to:
Machine related = (4,300 × $256,520) ÷ 10,600 = $104,060
Batch setup = (8,600 × $261,360) ÷ 9,900 = $227,040
General factory = (3,300 × $178,560) ÷ 9,600 = $61,380
Total = $104,060 + $227,040 + $61,380 = $ 392,480
On January 1, 2020, Milwaukee Corporation issued $3,000,000 of its 20-year, 8% bonds payable at 96. Interest is payable annually on January 1. The entry to accrue interest on December 31, 2020 would include a
Answer:
It will include credit to discount on bonds payable for $6,000
Explanation:
Solution
Given that
Issue price of bond = $3,000,000 * 96%
Issue of bond =$ 2,880,000
Thus,
The discount of bond payable = $3,000,000 - $ 2,880,000
=$120,000
Amortization of discount of bond payable = $120,000/20
=$6,000
Now,
We prepare an entry to accrue interest which is given below:
Entry to accrue interest
Date Account Titles and Explanation Debit Credit
31-12-2020 Interest expense $246,000
discount of bond payable $6,000
Interest payable $240,000
(To record the interest accrued)
A lot of research has demonstrated that there is a relationship between the of employees and that of the customer
Answer:
Satisfaction
Explanation:
A satisfaction is a thing. We just take an example :- When a customer purchase a product from the company he or she investing their money in order to fulfill their needs and wants. In return the customer wants the product is according to their expectations. In the case when the customer is satisfied, the chances of repurchasing of the product is high.
Therefore, as per the current situation there is always a relationship of satisfaction between the customer and the employees of the company.
Dave Krug contributed $1,400 cash along with inventory and land to a new partnership. The inventory had a book value of $1,200 and a market value of $2,800. The land had a book value of $1,800 and a market value of $5,800. The partnership also accepted a $3,400 note payable owed by Krug to a creditor. Prepare the partnership's journal entry to record Krug's investment
View transaction list View journal entry worksheet
No Transaction General Journal Debit Credit
Cash
Answer:
Partnership General Journal to record Krug Investment
Cash $1,400 (Debit)
Inventory $2,800 (Debit)
Land $5,800 (Debit)
Notes Payable $3,400 (Credit)
Krug, Capital $5,800 (Credit)
Explanation
i. The land and inventories will be accepted at his market value.
ii. Along with cash, this are assets which enter the partnership so they are debited.
iii. The note payable decreases the Krug capital contribution. It is credited.
iv. Krug capital account balance will be to complete the entry and make debit = credit.
A project manager is preparing two documents for risk management. One contains sources of overall project risk and also summary information on individual risks. The second describes individual risks identified. What name should the project manager give to the first document
Answer: Risk Report
Explanation:
A Risk Report for a project contains all the risk that the project is exposed to. This includes both project risk as well as individual risks related to the components projects in the overall project.
A Risk Report details the risks such as Supplier failure, Inflation, Pending Government Regulations and the like. It then takes these and summarizes them for presentation to those who require this information in the company so that appropriate safeguards may be set up and precautions taken.
This describes the first document and so should be what the Project Manager names it.
Globalization has been driven by five major factors: political, technological, market, cost, and competitive. Business has fueled these trends and has been the beneficiary of these trends. Understanding these trends helps businesses develop strategies and tactics to accelerate these trends. Understanding globalization trends helps businesses identify opportunities and threats in their environment. Understanding these trends will also make the changes much more manageable. International businesses have greater flexibility, more options, and a broader scope to consider globalization of production and globalization of markets.For each driving force listed, click and drag the correct description from the left and place it as a description or implication for business on the right. Driving Force Description Implication for Business Preferential trading Growth in services privatization of industriesCompetitive drivers Exporting or producing New opportunities and new markets Political drivers fgoods Emergence of global sold Lower cost Cost drivers Explosive growth of high-power, low-cost computing opportunities for trade and investment Technological drivers Explosive growth in Intense competition 6 international business in world markets Market drivers
Answer:
Competitive Drivers
Description
Explosive growth in international business
Implication for Business
Intense competition in world markets
Globalization has led to an explosive growth in international.business which has led to increased competition amongst companies because they now have to compete on a global scale against numerous companies in various locales.
Political Drivers
Description
Preferential trading arrangements and privatization of industries
Implications for Business
Increased opportunities for trade and investment
Some Countries offer great trading agreements this enabling companies to trade in other countries. This opportunity means that there are increased opportunities for trade by companies in the countries involved in the agreement.
Cost Drivers
Description
Exporting or producing Overseas
Implications for Business
Lower Cost of Goods sold
Globalization has enabled companies to be able to produce in cheaper markets for labor such as in Asia and Africa. This has led to a lower cost of goods sold and therefore higher profits.
Technological Drivers
Description
Explosive growth of high-power, low-cost computing
Implications for Business
Growth in Services.
Driving Globalization is an increased use of technology by human beings. The world is now connected by mere seconds which has enabled companies to derived clients all over the world this enabling them to offer more services.
Market Drivers
Description
Emergence of Global Customers
Implications for Business
New Opportunities and New Markets.
Another factor driving Globalization is the availability of new markets to sell their goods in in different territories. Companies can therefore have an increased demand base which will mean more Profitability.
Globalization has been driven by many factors. It has increased trading with other countries.
Globalization CompetitiveDrivers Globalization has led to growth in the international market.
The businesses led to competition amongst companies as they compete on a global.
Political Drivers Some Countries offer trading deals that allow companies to trade with others.
It suggests that there are increasing possibilities for trade by companies in the countries involved in the agreement.
Cost Drivers Globalization has helped companies produce products that help labour in Asia and Africa at a low cost.
This has led to a lower cost of goods sold with higher profits.
Technological Drivers Driving Globalization is an increase in the use of technology by humans.
People are connected by the internet, which has enabled companies to derive clients with more services.
Market Drivers Here globalization is available in new markets to trade goods in different regions.
Companies can have an increased demand based which will mean more Profitability.
Find out more information about Globalization here:
brainly.com/question/200850
Hewitt and Patel are partners, sharing gains and losses equally. They decide to terminate their partnership. Prior to realization, their capital balances are $30,000 and $20,000, respectively. After all noncash assets are sold and all liabilities are paid, there is a cash balance of $38,000. a. What is the amount of a gain or loss on realization
Answer:
$12,000
Explanation:
The amount of a gain or loss on realization is the difference between the sum of capital balances of partners and cash balance after settling all liabilities.
Total capital balances = $30,000 + $20,000 = $50,000
Total loss = Cash balance - Total capital balances = $38,000 - $50,000 = $12,000 loss.
Therefore, the amount of loss on realization is $12,000.
Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows:
110 Cash $ 83,600
112 Accounts Receivable 233,900
115 Merchandise Inventory 624,400
116 Estimated Returns Inventory 28,000
117 Prepaid Insurance 16,800
118 Store Supplies 11,400
123 Store Equipment 569,500
124 Accumulated Depreciation-Store Equipment 56,700
210 Accounts Payable 96,600
211 Salaries Payable ---
212 Customers Refunds Payable 50,000
310 Common Stock 100,000
311 Retained Earnings 585,300
312 Dividends 135,000
313 Income Summary ----
410 Sales 5,069,000
510 Cost of Merchandise Sold 2,823,000
520 Sales Salaries Expense 664,800
521 Advertising Expense 281,000
522 Depreciation Expense ---
523 Store Supplies Expense ---
529 Miscellaneous Selling Expense 12,600
530 Office Salaries Expense 382,100
531 Rent Expense 83,700
532 Insurance Expense ---
539 Miscellaneous Administrative Expense 7,800
During May, the last month of the fiscal year, the following transactions were completed:
May
1 Paid rent for May, $5,000.
3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
4 Paid freight on purchase of May 3, $600.
6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.
7 Received $22,300 cash from Halstad Co. on account.
10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
13 Paid for merchandise purchased on May 3.
15 Paid advertising expense for last half of May, $11,000.
16 Received cash from sale of May 6.
19 Purchased merchandise for cash, $18,700.
19 Paid $33,450 to Buttons Co. on account.
20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000.
20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,0000. The cost of the merchandise sold was $70,000.
21 For the convenience of Cresecent Co., paid freight on sale of May 20, $2,300.
21 Received $42,900 cash from Gee Co. on account.
21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
24 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.
26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.
28 Paid sales salaries of $56,000 and office salaries of $29,000.
29 Purchased store supplies for cash, $2,400.
30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.
30 Received cash from sale of May 20 plus freight paid on May 21.
31 Paid for purchase of May 21, less return of May 24.
Required:
Enter the May 1 balances of each of the accounts in the appropriate balance column of a four-column account.
Enter May 1 in the date column. Write Balance in the item section, and place a check mark (?) in the Posting Reference column.
Answer:
1 Paid rent for May, $5,000.
Dr Rent expense 5,000
Cr Cash 5,000
3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000.
Dr Merchandise inventory 36,000
Cr Accounts payable 36,000
4 Paid freight on purchase of May 3, $600.
Dr Merchandise inventory 600
Cr Cash 600
6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000.
Dr Accounts receivable 68,500
Cr Sales revenue 68,500
Dr Cost of Merchandise Sold 41,000
Cr Merchandise inventory 41,000
7 Received $22,300 cash from Halstad Co. on account.
Dr Cash 22,300
Cr Accounts receivable 22,300
10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000.
Dr Cash 54,000
Cr Sales revenue 54,000
Dr Cost of Merchandise Sold 32,000
Cr Merchandise inventory 32,000
13 Paid for merchandise purchased on May 3.
Dr Accounts payable 36,000
Cr Cash 36,000
15 Paid advertising expense for last half of May, $11,000.
Dr Advertising expense 11,000
Cr Cash 11,000
16 Received cash from sale of May 6.
Dr Cash 67,130
Dr Sales discounts 1,370
Cr Accounts receivable 68,500
19 Purchased merchandise for cash, $18,700.
Dr Merchandise inventory 18,700
Cr Cash 18,700
19 Paid $33,450 to Buttons Co. on account.
Dr Accounts payable 33,450
Cr Cash 33,450
20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000.
Dr Sales revenue 13,230
Cr Cash 13,230
Dr Merchandise inventory 8,000
Cr Cost of Merchandise Sold 8,000
20 Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, $110,0000. The cost of the merchandise sold was $70,000.
Dr Accounts receivbale 110,000
Cr Sales revenue 110,000
Dr Cost of Merchandise Sold 70,000
Cr Merchandise inventory 70,000
21 For the convenience of Cresecent Co., paid freight on sale of May 20, $2,300.
Dr Accounts receivable 2,300
Cr Cash 2,300
21 Received $42,900 cash from Gee Co. on account.
Dr Cash 42,900
Cr Accounts receivable 42,900
21 Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, $88,000.
Dr Merchandise inventory 88,000
Cr Accounts payable 88,000
24 Returned damaged merchandise purchased on May 21, receiving a credit memo from the seller for $5,000.
Dr Accounts payable 5,000
Cr Merchandise inventory 5,000
26 Refunded cash on sales made for cash, $7,500. The cost of the merchandise returned was $4,800.
Dr Sales revenue 7,500
Cr Cash 7,500
Dr Merchandise inventory 4,800
Cr Cost of Merchandise Sold 4,800
28 Paid sales salaries of $56,000 and office salaries of $29,000.
Dr Wages expense 85,000
Cr Cash 85,000
29 Purchased store supplies for cash, $2,400.
Dr Supplies 2,400
Cr Cash 2,400
30 Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, $78,750. The cost of the merchandise sold was $47,000.
Dr Accounts receivable 78,750
Cr Sales revenue 78,750
Dr Cost of Merchandise Sold 47,000
Cr Merchandise inventory 47,000
30 Received cash from sale of May 20 plus freight paid on May 21.
Dr Cash 110,100
Dr Sales discounts 2,200
Cr Accounts receivable 112,300
31 Paid for purchase of May 21, less return of May 24.
Dr Accounts payable 83,000
Cr Cash 82,170
Cr Purchase discounts 830
I prepared a general ledger for May in an excel spreadsheet that I attached.
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions:Date Transactions2019Sept. 1 Sold a high-definition television set on credit to Candy Cho: issued Sales Slip 101 for $2,100 plus sales tax of $147.3 Sold stereo equipment on credit to Jim Peters; issued Sales Slip 102 tor $900 plus sales tax of $63.7 Sold a microwave oven on credit to Bridgette Huffman: issued Sales Slip 103 for $300 plus sales tax or $21.12 Accepted return of defective stereo equipment from Jim Peterson: issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3.15 Recorded cash sales for the period from September 1 to September 15 of $10,500 plus sales tax of $735.16 Sold a gas dryer on credit to Kathy Sundstrand: issued Sales Slip 104 tor $600 plus sales tax of $42.17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,100 plus sales tax of $147.18 Received $670 from Candy Cho on account.20 Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.25 Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales slip 105; issued Credit Memorandum 102 for $200 plus sales tax of $14.27 Received payment in full from Bridgette Huffman tor the sale of September 7.29 Sold a dishwasher on credit to Mark Navalta: issued Sales Slip 106 tor $400 plus sales tax or $28.30 Recorded cash sales for the period From September 16 to September 30 of $10,800 plus sales tax of $756.GENERAL LEDGER ACCOUNTS101 Cash111 Accounts Receivable221 Sales Tax Payable481 Sales421 Sales Returns and AllowancesACCOUNTS RECEIVABLE LEDGER ACCOUNTSCandy Cho Jim PetersonBridgette Huffman Kathy SundstrandMark Navalta Required:2. Post the entries from the general journal into the appropriate accounts in the general ledger and in the accounts receivable ledger.3. Prepare a schedule of accounts receivable.
Answer:
Since there is not enough room here, I prepared the general ledger, the accounts receivable ledger and the schedule of accounts receivable in an excel spreadsheet (attached).
Explanation:
For 2018, Winters Manufacturing uses machineminushours as the only overhead costminusallocation base. The direct cost rate is $ 6 per unit. The selling price of the product is $ 21. The estimated manufacturing overhead costs are $ 275 comma 000 and estimated 40 comma 000 machine hours. The actual manufacturing overhead costs are $ 350 comma 000 and actual machine hours are 50 comma 000. What is the profit margin earned if each unit requires two machineminushours?
Answer:
Profit margin per unit= $1.25
Explanation:
Giving the following information:
The direct cost rate is $ 6 per unit.
The selling price of the product is $ 21.
Estimated manufacturing overhead= $275,000
Estimated machine-hours= 40,000
Actual machine hours are 50,000
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 275,000/40,000= $6.875 per machine hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 6.875*2= $13.75
Finally, the profit margin:
Profit margin per unit= 21 - 6 - 13.75= $1.25
The text states, "Over sufficiently long time periods, net income equals cash inflows minus cash outflows, other than cash flows with owners." Demonstrate the accuracy of this statement in the following scenario: Two friends contributed $50,000 each to form a new business. The owners used the amounts contributed to purchase a machine for $100,000 cash. They estimated that the useful life of the machine was five years and the salvage value was $20,000. They rented out the machine to a customer for an annual rental of $25,000 a year for five years. Annual cash operating costs for insurance, taxes, and other items totaled $6,000 annually. At the end of the fifth year, the owners sold the equipment for $22,000, instead of the $20,000 salvage value initially estimated. (Hint: Compute the total net income and the total cash flows other than cash flows with owners for the five-year period as a whole.)
Answer:
Cash Equipment Common stock Net income
Cash contributed
by Owners $ 100,000 $ 100,000
Purchase of
machine for cash $ (100,000) $ 100,000
Recoginition of
rent revenue $125,000 $125,000
Recoginition of
operating
expense $(30,000) $(30,000)
Recoginition of
Depreciation $ (80,000) $(80,000)
Sale of Machine $ 22,000 $ (20,000) $ 2,000
Totals $ 117,000 $0 $100,000 $ 17,000
Explanation:
client becomes dissatisfied with the progress that Engineer A is making on his project. As a result, he terminates the services of Engineer A and hires Engineer B to complete the work. Engineer B: Must be able to document his or her effort of reworking the entire design process. Must take complete responsibility for the documents.s Must notify Engineer A, by certified mail, of his intentions to reuse already sealed documents. All of the ab
Answer:
The correct answer is all of the above.
Explanation:
Solution
When a client is not happy with the work of the former Engineer A on his project, if he hires Engineer B to finish the work, the new Engineer must take into consideration the past work of his predecessor.
He has to check the overall work manual of the previous engineer, so as to input his own idea to make the work much better and satisfactory for the client.
He (Engineer B) should be able to keep track in documenting his or her effort while redoing the entire design process stage.
He can also asked questions from the previous Engineer in case he his not understanding dome things or facing some issues towards the project work.
The four option here, are correct
Graham Petroleum produces oil. On May 1, it had no work-in-process inventory. It started production of 244 million barrels of oil in May and shipped 216 million barrels in the pipeline. The costs of the resources used by Graham in May consist of the following:
Materials $6,000 Million
Conversion Cost (Labor and overhead) $7,968 Million
Required:
The production supervisor estimates that the ending work-in-process is 60 percent complete on May 31.
Compute the cost of oil shipped in the pipeline and the amount in work-in-process ending inventory as of May 31. (Do not round intermediate calculations. Enter your answers in millions. For example, enter "1" instead of "1,000,000".)
Answer:
The cost of 216 million barrels of oil shipped is $ 12,960 million
Cost of ending work in process is $1,008 million
Explanation:
The total costs of oil production is computed thus:
$million
materials 6,000
conversion cost 7,968
total cost 13,968
Production started 244 million
Oil shipped 216 million
ending work in process 28 million
total equivalent units=216 million+28 million*60%=216 million+16.8 million=232.8 million
cost of oil shipped=$13,968/232.8*216=$ 12,960 million
amount of ending inventory=$13,968-$12,960=$1,008.00
A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 85 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is ____. (If you use percent, then do not use the percent sign. Go two places to the right of the decimal point (XX.XX). If you use decimal places, then go four places to the right of the decimal place. 0.XXXX). 0.1613
Answer:
What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? The firm's APR of not taking the trade credit is 0.1613.
Explanation:
The nominal cost of its non-free trade credit = the discounts lost for paying late.
In this case, the seller offers a 3% discount if the firm pays within 15 days.
annual financial cost = [discount / (100% - discount)] x [365 / (repayment time - discount period)]
annual financial cost = [3% / (100% - 3%)] x [365 / (85 - 15)] = (3% / 97%) x (365 / 70) = 0.1613 or 16.13%
A firm wishes to issue new shares of its stock, which already trades in the market. The current stock price is $24, the most recent dividend was $3 per share, and the dividend is expected to grow at a rate of 4% forever. Flotation costs for this issue are expected to be 6%. What is the required rate of return (or financing cost) in this new issue?
Answer:
17.83%
Explanation:
The computation of required rate of return is shown below:-
Required rate of return = ((Expected dividend ÷ (Current Stock price × (1 - Flotation cost as a percentage of issue price)) + Growth rate)) × 100
= ((Dividend × (1 + Growth rate)) ÷ Current Price of stock × (1 - Flotation cost as a percentage of issue price)) + Growth rate))) × 100
= ($3 × (1.04) ÷ $24 × (1 - 0.06) + 0.04) × 100
= ($3.12 ÷ $22.56 + 0.04) × 100
= (0.138297872 + 0.04) × 100
= 17.82978723
or
= 17.83%
Therefore we have applied the above formula.
Pearson Motors has a target capital structure of 45% debt and 55% common equity, with no preferred stock. The yield to maturity on the company's outstanding bonds is 10%, and its tax rate is 40%. Pearson's CFO estimates that the company's WACC is 14.50%. What is Pearson's cost of common equity
Answer:
21.45%
Explanation:
Pearson motors has a target capital structure of 45% debt and 55% common equity
The yield to maturity is 10%
Tax rate is 40%
WACC is 14.50%
First of all we have to find the tax cost of debt
Tax cost of debt= Yield to maturity×(1-tax rate)
= 8×(1-25/100)
= 8×(1-0.25)
= 8×0.75
= 6%
The next step is to calculate the common equity
Therefore, the common equity can be calculated as follows
WACC= Respective cost×Respective weight
14.50= (6×0.45)+(0.55×common equity)
14.50= 2.7+(0.55×common equity)
14.50-2.7= (0.55×common equity)
11.8= (0.55×common equity)
Common equity= 11.8/0.55
Common equity= 21.45%
Hence Pearson's cost of common equity is 21.45%
lyssa and Crystal are roommates. They spend most of their time studying (of course), but they leave some time for their favorite activities: making pizza and brewing root beer. Alyssa takes 3 hours to brew a gallon of root beer and 2 hours to make a pizza. Crystal takes 7 hours to brew a gallon of root beer and 5 hours to make a pizza. Alyssa's opportunity cost of brewing a gallon of root beer is__________ , and Crystal's opportunity cost of brewing a gallon of root beer is__________ , has an absolute advantage in brewing root beer, and has a comparative advantage in brewing root beer. If Alyssa and Crystal trade foods with each other, will trade away pizza in exchange for root beer. The price of pizza can be expressed in terms of gallons of root beer. The highest price at which pizza can be traded that would make both roommates better off is of root beer, and the lowest price that makes both roommates better off is of root beer per pizza.
Answer:
a. 1.5 pizza
b. 1.39 pizza
c. Alyssa has an absolute advantage in brewing beer
d. Crystal has a comparative advantage in brewing beer
e. Crystal will easily trade away pizza for root beer
f. there's no limit to the highest price
g. lowest price is 0.719 beer root/pizza
Explanation:
Alyssa takes 3 hrs to brew a gallon of root beers and 2 hrs to make a pizza
Crystal takes 7 hrs to brew a gallon of root beer and 5 hrs to make a pizza
Alyssa make 1 gallon/3 hrs = 0.33 gallons/hr of beer, and the same way makes 0.5 pizza/hr
Crystal makes 0.143 gallon/hr of beer, and 0.2 pizza/hr
for Alyssa, 0.33 gallons/hr = 0.5 pizza/hr, therefore
1 gallon of beer = 0.5/0.33 = 1.51 pizza
for crystal, 1 gallon of beer = 0.2/0.143 = 1.39 pizza
price of pizza:
Alyssa = 0.662 root beer/pizza
Crystal = 0.719 root beer/pizza
