Answer:
b c f
Explanation:
make balance sheet
1.sold all the stock for 5000 and receive a cheque
2. a trade receivable paid 600 by cheque
3. the owner took 800 from the bank for personal use
4. withdrew 2000 from the bank for business expenses
Answer:
Balance Sheet as at year end
ASSETS
Cash (5000 + 600 - 800 - 2000) $2,800
Trade Receivable ( -600) ($600)
TOTAL ASSETS $2,200
EQUITY AND LIABILITIES
EQUITY
Retained Earnings (5000 -800 - 2000) $2,200
TOTAL EQUITY $2,200
LIABILITIES
Liabilities $0
TOTAL LIABILITIES $0
TOTAL EQUITY AND LIABILITIES $2,200
Explanation:
The Balance sheet contains balances of Assets, Liabilities and Equity as at the Reporting date.
So given the above transactions above, we have to identify which accounts (Assets, Liabilities or Equity) are affected by each transaction, than record under the relevant heading as shown in the solution.
How and why would the accounting profession use the results of behavioural research in accounting
Answer:
Behavioral accounting is a subset of accounting that, in addition to accounting expertise, is concerned with behavior. It is concerned with people's attitudes and behaviors when confronted with an accounting phenomenon, which defines the actions that they will exhibit in decisionmaking. This accounting specialization addresses issues such as human informationprocessing activity, judgement accuracy, accounting problems caused by accounting information users and suppliers, and accounting information users' and producers' decisionmaking skills.
Behavioral psychology seeks to understand how people make choices, communicate with others, and affect economies and societies. The impact of accounting knowledge on conduct, administrative management (budget engagement, nonfinancial interventions, leadership, and balanced scorecard), auditing (auditorclient negotiations, auditor's judgement, and decisionmaking), and ethics (ethical decisionmaking, ethical orientation, and rationalizations for unethical behavior) are all included under the Behavioral accounting definition.
The accounting profession use the results of behavioural research in accounting so that they can understand the behaviour of different entities like a consumer or a retailer and use that in the accounting so that it can help in making a better conclusion.
What is research ?Research is a defined as the whole process of making hypothesis, collection of data; and analysis and interpretation of that data/information, in accordance with suitable methodologies and drawing the conclusion.
Behavioral research tries to find out how individuals make decisions, interact and influence other individuals, organizations, markets, and society. Behavioral research about individuals like consumers is used in accounting to analyze and study about the outcome or result like profits.
So we can say that behavioural research plays an important role in analyzing the data and for drawing the conclusion in accounting.
Learn more about research here:
https://brainly.com/question/29782299
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Torge Company bought a machine for $74,000 cash. The estimated useful life was five years and the estimated residual value was $5,000. Assume that the estimated useful life in productive units is 165,000. Units actually produced were 44,000 in year 1 and 49,500 in year 2.
Required:
1. Determine the appropriate amounts to complete the following schedule. (Do not round intermediate calculations.)
Depreciation Expense for Depreciation Expense for Book Value at the End of Method of Depreciation Book Value at the End of Method of Depreciation
Method of Depreciation Year 1 Year 2 Year 1 Year 2
Straight-line
Units-of-production
Double-declining-balance
2. Which method would result in the lowest net income for year 1?
3. Which method would result in the lowest net income for year 2?
4. Which method would result in the lowest fixed asset turnover ratio for year 1?
Answer:
Straight line depreciation
Depreciation expense Book Value at the End of Year 1 $13800 $60,200
Year 2 $13800 $46,400
Units of production
Depreciation expense Book Value at the End of Year 1 $18400 $55,600
Year 2 $20,700 $34,900
Double declining balance
Depreciation expense Book Value at the End of Year 1 $29600 $44,400
Year 2 $17,760 $26,640
2. Double-declining-balance
3. Units-of-production
4. Straight-line
Explanation
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
($74,000 - $5000) / 5 = $13800
Depreciation expense each year would be $13800
Book value = cost of asset - depreciation
Book value in year 1 = $74,000 - $13800 = $60,200
Book value in year 2 = $60,200 - $13800 = $46,400
Unit of production = (total output that year / total output of the machine) x (Cost of asset - Salvage value)
Deprecation expense in year 1 = (44,000 / 165,000) x ($74,000 - $5000) = $18400
Deprecation expense in year 2 = (49,500 / 165,000) x ($74,000 - $5000) = $20700
Book value in year 1 = $74,000 - $18,400 = $55,600
Book value in year 2 = $55,600 - $20700 = $34,900
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/5 = 0.4
Deprecation expense in year 1 = 0.4 x $74,000 = $29600
Book value in year 1 = $74,000 - $29600 = $44,400
Deprecation expense in year 2 = 0.4 x $44,400 = $17,760
Book value in year 2 = $44,400 - $17,760 = $26,640
Net income is revenue less cost of goods sold, general expenses, taxes, depreciation and interest.
The method that would yield the lowest net income in year 1 is the method that yields the highest deprecation expense in year 1. This is the double declining method
The Units-of-production would yield the lowest net income in year 2 because it has the highest depreciation expense
Fixed asset turnover = revenue / average net fixed assets
average net fixed assets = cost of asset - accumulated depreciation
the higher the average net fixed asset, the lower the fixed asset turnover. The depreciation method that yields the lowest depreciation expense in year 1 would have the lowest fixed asset turnover ratio. This is the straight line method
Universal Foods issued 10% bonds, dated January 1, with a face amount of $176 million on January 1, 2021 to Wang Communications. The bonds mature on December 31, 2035 (15 years). The market rate of interest for similar issues was 12%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. to 3. Prepare the journal entries to record the purchase of the bonds by Wang Communications on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2028
Answer:
January 1, 2021
Dr Investment in bonds $176 million
Cr Discount in Investment in bonds $24,226,136
Dr Cash $151,773,864
June 30, 2021
Dr Cash $8,800,000
Dr Discount in Investment in bonds $897,538
Cr Interest Revenue $9,607,538
December 31, 2028
Dr Cash $8,800,000
Dr Discount in Investment in bonds $897,538
Cr Interest Revenue $9,607,538
Explanation:
1. to 3. Preparation of the journal entries to record the purchase of the bonds by Wang Communications on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2028
January 1, 2021
Dr Investment in bonds $176 million
Cr Discount in Investment in bonds $24,226,136
($151,773,864-$176 million)
Dr Cash $151,773,864
(To record purchase of bonds)
June 30, 2021
Dr Cash $8,800,000
($176 million*10%/2)
Dr Discount in Investment in bonds $897,538
($24,226,136/30)
Cr Interest Revenue $9,607,538
($8,800,000+$897,538)
(To record Interest Revenue)
December 31, 2028
Dr Cash $8,800,000
($176 million*10%/2)
Dr Discount in Investment in bonds $897,538
($24,226,136/30)
Cr Interest Revenue $9,607,538
($8,800,000+$897,538)
(To record Interest Revenue)
Present value of an ordinary annuity of $1 n=30 I=6%
Present value of an ordinary annuity of $1 =13.76483
Present value of $1 n=30 I=6%
Present value of $1=0.17411
Interest ($176 million *5%*13.76483) $121,130,504
Principal ($176 million*0.17411) $30,643,350
=$151,773,864
What happens to the equilibrium price and quantity in the market for orange juice in Florida if a hurricane causes a seasonal orange shortage and the price of apple juice falls substantially. Select the correct answer below: the equilibrium price of orange juice will fall the equilibrium price of orange juice will rise the equilibrium quantity will rise the equilibrium quantity will fall
Answer:
equilibrium quantity would fall
Explanation:
orange is an input for making orange juice
As a result of the hurricane, orange farms would be destroyed. there would be less orange to make orange juice. this would shift the supply curve for orange juice to the left. as a result, equilibrium price would rise and equilibrium quantity would fall
I am assuming that apple juice is a substitute for orange juice. A decrease in the price of apple juice would lead to an increase in the demand for apple juice and decrease the demand for orange juice. the demand curve for orange juice would shift inwards. Equilibrium price and quantity would fall
taking these two effects together, equilibrium quantity would fall. there would be an indeterminate effect on equilibrium price
Using Firm Guidance to Research a Revenue Question
•You are an accountant working for Hotel Co. Your supervisor has asked you to research what amount of revenue Hotel Co. should recognize for transactions booked by customers on Expedia.com.
•Expedia generally collects the full transaction price from the customer, then withholds a small fee (say, $10) from each transaction and remits the balance to Hotel Co.
•Should Hotel Co. record the gross transaction fee or only the net amount it receives from Expedia.com? Use nonauthoritative firm guidance to assist in your response.
•Start off with the codifications (606?), then move to the non-auth. sources.
Answer:
The Hotel Co. should record the net amount it receives from Expedia.com
Explanation:
According to codification ( 606 ) The Hotel Co. should record the net amount it receives from Expedia.com
Applying codification ( 606 ) the entity( Expedia.com ) will give the agreed upon transaction price to Hotel.co as soon as a requirement is met. and that price can be based on standalone selling prices of the service or good which is defined within the contract. but if the selling price is not clear there will be an estimate of the price, note that: Transaction prices are always not the same as the standalone selling price.
Using the supply and demand analysis of the market for reserves, indicate what happens to the federal funds rate, borrowed reserves, and nonborrowed reserves, holding everything else constant, under the following situations. a. The economy is surprisingly strong, leading to an increase in the amount of checkable deposits. b. Banks expect an unusually large increase in with-drawals from checking deposit accounts in the future. c. The Fed raises the target federal funds rate. d. The Fed raises the interest rate on reserves above the current equilibrium federal funds rate. e. The Fed reduces reserve requirements. f. The Fed reduces reserve requirements and then off-sets this action by conducting an open market sale of securities.
Answer:
The federal fund rate will increase, non borrowed reserves will decrease and no change in borrowed reserves.
Explanation:
Federal fund rate is an interest rate which banks pay off each night on depository funds. This rate can be above the discount rate because banks prefer to pay higher market rate than to borrow from Fed. When the fed raises target federal fund than federal fund rate will increase causing a decline in no borrowed reserves.
Oops, they done did it again
Another mate dead, misplaced his head
Oh, who could it be?
I mean, it definitely wasn't me
No clue where that charlatan ran?
I've been around the Skeld, only know too well
Villain vampires want fresh blood
So now everyone's sus
Are you crawling 'round the vents
Or can you prove your innocence?
Don't go lyin' to me!
I saw a body lyin' there!
Don't go lyin' to me
Don't go lyin', don't go lyin'
I ain't gonna let there be
No more dyin', no more dyin'
Don't go lyin' to me!
I saw a body lying there!
It was right there!
So Jordan was in Medbay, Ellie in elec'
Jerome was roaming through the hallways
Guess we gotta, gotta do a triple-check
It ain't the killer's holiday
Are you crawling 'round the vents
Or can you prove your
Don't go lyin' to me!
I saw a body lyin' there!
Don't go lyin' to me
Don't go lyin', don't go lyin'
I ain't gonna let there be
No more dyin', no more dyin'
Don't go lyin' to me!
I saw a body lying there!
It was right there!
(Don't go lyin' to me!)
(Do-do-don't go lyin' to me!)
It was right there!
It was right there!
(Don't go lyin' to me!)
(Do-do-don't go lyin' to me!)
It was right there!
Listen to me, listen now, lend me your ears
Let me lay it out easy so to lessen all your fears
Just living and loving, not about to let you down
Let's look at this logically, figure this out
We can likely verify each other's alibis
No need to allegate, litigate, itemize lies
I just wanna live free, liberty, let me be
And I won't be ejected, not a liability
Back off!
Don't go lyin' to me!
I saw a body lyin' there!
Don't go lyin' to me
Don't go lyin', don't go lyin'
I ain't gonna let there be
No more dyin', no more dyin'
Don't go lyin' to me!
I saw a body, a body!
Don't go lyin' to me!
I saw a body lyin' there!
Don't go lyin' to me
Don't go lyin', don't go lyin'
I ain't gonna let there be
No more dyin', no more dyin'
Don't go lyin' to me!
I saw a body lying there!
It was right there!
Answer:
wow that's ummmmmmmmm cool
Fiona is a manager who believes in Theory Y of leadership. What does she assume about her employees according to this theory? A. Employees have to be reprimanded for bad ideas. B. Employees are self-motivated in their work. C. Employees need constant supervision. D. Employees are always ready to leave the company.
Answer:
b
Explanation:
Employees are self-motivated in their work.
You expect Technomess Company common stock to pay a dividend of $2.40 one year from now. You can buy the stock now for $52, and you plan to sell the stock at the end of one year. Given the risk of the stock, your required rate of return is 16%. For what price would you need to sell your stock in one year in order to earn your required rate of return
Answer:
The stock price = $57.92
Explanation:
The return on a stock is the sum of the capital gains(loss) plus the dividends earned.
Capital gain is the difference between he value of the stocks when sold and the cost of the shares when purchased.
Total shareholders Return =
(Capital gain/ loss + dividend )/purchase price × 100
16% = ((x-52) + 2.40)/52
0.16×52 = (x-52) + 2.40
8.32 = X- 52 + 2.40
52+8.32-240=X
57.92 = X
$57.92= X
The stock would need to be sold for = $57.92
Absorption and Variable Costing; Inventory Valuation Bondware Inc., has a highly automated assembly line that uses very little direct labor. Therefore, direct labor is part of variable overhead. For March, assume that it incurred the following unit costs: Direct materials $500 Variable overhead 440 Fixed overhead 160 The 100 units of beginning inventory for March had an absorption costing value of $90,000 and a variable costing value of $76,000.
For March, assume that Bondware Inc. produced 500 units and sold 540 units.
Compute Bondware's March amount of ending inventory under both absorption and variable costing if the FIFO inventory method was used.
Ending Inventory
Absorption Costing $ (Answer)
Variable Costing $ (Answer)
Answer:
Bondware Inc.
FIFO Inventory Method:
Ending Inventory (60 units):
Absorption Costing = $66,000
Variable Costing = $56,400
Explanation:
a) Data and Calculations:
Unit Production Costs for March:
Direct materials $500
Variable overhead 440
Total variable cost $940
Fixed overhead 160
Total manufacturing
costs per unit $1,100
Calculation of Ending Units of Inventory:
Beginning units 100
Units produced = 500
Units sold = (540)
Ending units = 60
Beginning Inventory, 100 units:
Absorption costing value = $90,000
Variable costing value = $76,000
FIFO Inventory Method:
Ending Inventory:
Absorption Costing = 60 * $1,100 = $66,000
Variable Costing = 60 * $940 = $56,400
Which of the following is considered important in a company's attempt to strengthen partner relationships? Group of answer choices The partnership's objectives should move beyond tactical issues and toward a more strategic path The partnership should have a shared vision and objectives The partnership should have measurable objectives The vision and objectives should be accepted and formally agreed upon by both parties All of the above are considered important in strengthening partner relationships
Answer:
All of the above are considered important in strengthening partner relationships
Explanation:
Partner relationship exists when two or more people come together to undertake a business venture. Profits and losses are between all partners.
Maintaining a good partner relationship ensures that the business performs and meets its goals.
A strategic path for objectives of the partners means the business does not only plan but executes its plans.
Shared vision and objectives ensures the partners work in harmony to achieve set targets.
The obejecives should be measureable, this sets realistic milestones.
Also shared vision and objectives should be formally agreed to by all parties.
The following data pertain to Frontier Enterprises:
Variable manufacturing cost $ 70
Variable selling and administrative cost 20
Applied fixed manufacturing cost 40
Allocated fixed selling and administrative cost 15
What price will the company charge if the firm uses cost-plus pricing based on variable manufacturing cost and a markup percentage of 110%?
A. $84.
B. $147
C. $210.
D. $231
E. Some other amount.
Answer:
D. $231.
Explanation:
With regards to the above, first we need to compute the total manufacturing cost.
Total manufacturing cost = Variable manufacturing cost + Applied fixed manufacturing cost
= $70 + $40
= $110
Then,
= $110 + ($110 × 1.1)
= $110 + $121
= $231
Therefore , the company will charge $231 if cost- plus pricing based is used.
You invest $3,000. You have speculated that you will earn an average of 7% on your initial investment each year. What do you expect the total value to be in ten years?
Answer:
$5,100 Dollars
Explanation:
3,000 x .07 = 210
210 x 10 = 2100
3,000 + 2100 = 5100
You will have $5,100 dollars total value in 10 years!
Click this link to view O*NET’s Wages and Employment section for Executive Administrative Assistants. According to O*NET, what is the projected growth for this career between 2019 and 2029?
faster than average (this one is wrong)
average
slower than average
decline
Answer:
Decline
Explanation:
Answer:
Decline
Explanation:
Selected information from the payroll register of Barbara's Stables for the week ended September 28, 20--, is as follows: Social Security tax is 6.2% on the first $128,400 of earnings for each employee. Medicare tax is 1.45% of gross earnings, FUTA tax is 0.8%, and SUTA tax is 5.4% each on the first $7,000 of earnings.
Employee Name Cumulative Pay Before Current Earnings Current Gross Pay
Jordahl, Stephanie $6,600 $1,190
Keesling, Emily 6,150 1,070
Palmer, Stefan 55,200 2,410
Soltis, Robin 54,300 2,280
Stout, Hannah 29,050 2,030
Xia, Xu 116,630 2,850
Required:
a. Calculate the amount of taxable earnings for unemployment, Social Security, and Medicare taxes.
b. Prepare the journal entry to record the employer's payroll taxes as of September 14, 20--. Round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.
Explanation:
Selected information from the payroll register of Barbara's Stables for the week ended September 28, 20-, is as follows: Social Security tax is 6.2% on the first $110,100 of earnings for each employee. Medicare tax is 1.45% of gross earnings, FUTA tax is 0.8%, and SUTA tax is 5.4% each on the first $7,000 of earnings. Taxable Earnings Unemployment Social Compensation Security Employee Name Carlos, Peggy Sanchez, Carmela Delaney, Roger Weitz Alana Dunhill, Craig Bella, Stephen Cumulative Pay Current Before Current Gross Earnings Pay $ 84,240 $2,350 81,900 2,100 109,800 3,320 6,300 1,100 6,800 1,000 42,330 1,850 1. Calculate the number of taxable earnings for unemployment and Social Security taxes. Cumulative Pay Current Taxable Earnings Before Current Gross Unemployment Social Employee Name Earnings Pay Compensation Security Carlos, Peggy $ 84,240 $2,350 Sanchez, Carmela 81,900 2,100 Delaney, Roger 109,800 3,320 Weita, Alana 6,300 1,100 Dunhill, Craig 6.800 Bella, Stephen 42,330 1,050 1.000 2. Prepare the journal entry to record the employer's payroll taxes as of September 28, 20, If required, round your answers to the nearest cent. If an amount has not required an entry leave it blank
A discount term of 20/15/5 means: Group of answer choices based on the timing of payment, 1 of the 3 discount options can be applied based on the size of the order, 1 of the 3 options can be applied if all conditions are met, all 3 discounts can be applied to the list price all three discounts are possible but it is rare that all three are able to be applied
Answer: If all conditions are met, all 3 discounts can be applied to the list price
Explanation:
This is a series discount which means the following:
20 is for 20% off the list price which leaves 80%.
15 is for 15% off which leaves 85% and,
5 is for 5% off which leaves 95%.
If all conditions placed by the seller are met, all 3 discounts can be applied to the list price.
They are applied by multiplying the discounted price proportions.
= 0.8 * 0.85 * 0.95
= 0.646 will be the discounted price.
An advantage of organization in the u.s. that compete globally is
Answer:
An advantage of organization in the U.S. that compete globally is:
a. Poor quality of Japanese companies
b. Strong entrepreneurial spirit
c. Government regulations
d. Protectionist sentiment
Please mark my answer as brainliest for further answers :)The following cost behavior patterns describe anticipated manufacturing costs for 2019: raw material, $7.50/unit; direct labor, $10.50/unit; and manufacturing overhead, $297,500 $8.50/unit. Required: If anticipated production for 2019 is 35,000 units, calculate the unit cost using variable costing and absorption costing. (Round your answers to 2 decimal places.)
Answer:
Unit cost
$
Variable costing 18
Absorption costing 26.5
Explanation:
Variable costing values every unit produced at the marginal cost. Marginal cost is the sum of direct material, direct labor and variable overhead.
Marginal cost = 7.50 + 10.50 =$18
Absorption costing values every unit at full cost. Full cost is the sum of marginal and fixed overhead cost per unit,
Fixed overhead cost per unit = $297,500/35,000=8.5
Full cost = 7.50 + 10.50 + 8.50= $26.5
Unit cost
$
Variable costing 18
Absorption costing 26.5
A company's old machine that cost $40,000 and had accumulated depreciation of $22,000 was traded in on a new machine having an estimated 20-year life with an invoice price of $45,000. The company also paid $33,000 cash, along with its old machine to acquire the new machine. If this transaction has commercial substance, the new machine should be recorded at:
Answer:
$45,000
Explanation:
Based on the information given we are told that the new machine had an estimated 20-year life as well as an invoice price of the amount of $45,000 which means that in a situation were the transaction has commercial substance the new machine should be recorded at invoice price of the amount of $45,000.
Therefore the new machine should be recorded at:$45,000
The dollar-value LIFO method was adopted by Bramble Corp. on January 1, 2020. Its inventory on that date was $298,300. On December 31, 2020, the inventory at prices existing on that date amounted to $280,000. The price level at January 1, 2020, was 100, and the price level at December 31, 2020, was 112. Your Answer Correct Answer Correct answer iconYour answer is correct. Compute the amount of the inventory at December 31, 2020, under the dollar-value LIFO method. Inventory 12/31/20 under dollar-value LIFO method $ 250000 eTextbook and Media Solution
Answer:
8642$ i think
Explanation:
Answer:
On December 31, 2020, the inventory at prices existing on that date amounted to $280,000. The price level on January 1, 2020, was 100.
Explanation:
The-dollar-value LIFO method was adopted by Bramble Corp. on January 1, 2020. Its inventory on that date was $298,300. On December 31, 2020, the inventory at prices existing on that date amounted to $280,000. The price level on January 1, 2020, was 100, and the price level on December 31, 2020, was correct.
A company is projected to generate free cash flows of $357 million next year, growing at a 6% rate until the end of year 3. After that, cash flows are expected to grow at a stable rate of 2.4% in perpetuity. The company's cost of capital is 9.1%. The company owes $96 million to lenders and has $14 million in cash. If the company has 207 million shares outstanding, what is your estimate for its stock price
Answer:
$27.02
Explanation:
Year a Cash flow b Discount factor (c = 1.091^-a) Present Value d=b*c
1 $357.00 0.9165903 $327.22
2 $378.42 0.8401377 $317.92
3 $401.13 0.7700621 $308.89
Total $954.04
Present value of after year 3 cash flows:
Present value = CF3*(1+g)/(Ke-g)*DF3; where CF3 =$401.13, g = 2.40%, Ke = 9.10%, DF3 = 0.770062,
Present value = $4,720.97
Present value of all cash flows:
Present value of cash flows = $954.04 + $4,720.97 + $14.00
Present value of cash flows = $5,689
Calculation of value per share:
Value of firm = $5,689.00
Less: Value of debt = $96.00
Value of equity $5,593.00
/ No. of shares 207
Value per share $27.02
Below are the transactions and adjustments that occurred during the first year of operations at Kissick Co
a. Issued 198,000 shares of $6-par-value common stock for $1,188,000 in cash.
b. Borrowed $550,000 from Oglesby National Bank and signed a 11% note due in three years.
c. Incurred and paid $380,000 in salaries for the year.
d. Purchased $650,000 of merchandise inventory on account during the year.
e. Sold inventory costing $580,000 for a total of $910,000, all on credit.
f. Paid rent of $220,000 on the sales facilities during the first 11 months of the year.
g. Purchased $190,000 of store equipment, paying $51,000 in cash and agreeing to pay the difference within 90 days.
h. Paid the entire $139,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded.
i. Incurred and paid utilities expense of $36,000 during the year.
j. Collected $845,000 in cash from customers during the year for credit sales previously recorded.
k. At year-end, accrued $60,500 of interest on the note due to Oglesby National Bank.
l. At year-end, accrued $20,000 of past-due December rent on the sales facilities.
Required:
Prepare an income statement (ignoring income taxes) for Kissick Co.'s first year of operations and a balance sheet as of the end of the year.
Answer:
Income Statement Sales 9,00,000 Cost of goods sold 5,80,000 Gross profit 3,20,000 Salaries expense 3,90,000 Rent expense 2,40,000 Utilities expense 38,000 Loss from operations -3,48,000 Interest expense -59,400 Net loss -4,07,400 KI
Explanation:
Purchased $190,000 of store equipment, paying $51,000 in cash and agreeing to Paid the entire $139,000 owed for store equipment and $600,000 of the amount due to suppliers for credit purchases previously recorded. pay the difference within 90 days. that make it a way to create sales.
Suppose it is announced that industry analysts are predicting that decreased oil supplies from one of the exporter countries will cause gasoline prices to rise, beginning next month. In the current week, the announcement would: Shift the supply of gasoline right Shift the demand for gasoline right Shift the demand for gasoline left no effect on the demand or supply of gasoline
Answer: Shift the demand for gasoline right
Explanation:
If it is announced that there'll be an increase in the prices of gasoline starting from the following month, this will bring about a situation whereby people will start rushing to buy gasoline before the following month when there will be an increase in its price.
In such case, there'll be a shift in the demand for gasoline to the right as there'll be an increase in the demand for gasoline.
The ink-jet printing division of Environmental Printing has grown tremendously in recent years. Assume the following transactions related to the ink-jet division occur during the year ended December 31, 2018
1. Environmental Printing is being sued for $10.7 million by Addamax. Plaintiff alleges that the defendants formed an unlawful joint venture and drove it out of business. The case is expected to go to trial later this year. The likelihood of payment is reasonably possible.
2. Environmental Printing is the planiffin an $8.7 million lawsuit filed against a competitor in the high-end color-printer market. Environmental Printing expects to win the case and be awarded between $6.2 and $8.7 million.
3. Environmental Printing recently became aware of a design flaw in one of its ink-jet printers. A product recall appears probable. Such an action would likely cost the company between $470,000 and $870,000.
Answer:
1. No journal entry required
2. No journal entry required
3 Dr Loss $470,000
Cr Contingent liability $470,000
Explanation:
Preparation of the journal entry to Record any amounts as a result of each of these contingencies
1. Based on the information given we were told that The likelihood of the payment is reasonably possible which means that contingent liability amount was not recognized and therefore NO JOURNAL ENTRY IS REQUIRED
No journal entry required
2. Based on the information given we were told that Environmental Printing was expecting to win the case and be awarded the cash amount involved which means NO JOURNAL ENTRY IS REQUIRED reason been the CONTINGENT GAIN will not be recognized until the amount is received.
No journal entry required
3. Contingent liability was recorded because the payment is reasonably possible and Estimated.
Dr Loss $470,000
Cr Contingent liability $470,000
The following information pertains to Sandhill Company.
1. Cash balance per books, August 31, $7,374.
2. Cash balance per bank, August 31, $7,338.
3. Outstanding checks, August 31, $708.
4. August bank service charge not recorded by the depositor $60.
5. Deposits in transit, August 31, $3,710.
In addition, $3,026 collected for Sandhill Company in August by the bank through electronic funds transfer. The accounts receivable collection has not been recorded Sandhill Company.
1. Prepare a bank reconciliation at August 31, 2022. (List items that increase balance as per bank & books first.)
CULLUMBER COMPANY
Bank Reconciliation
2. Journalize the adjusting entries at August 31 on the books of Cullumber Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit
July 31 (To record electronic funds transfer received by bank)
July 31 (To record bank service charge)
Answer:
Sandhill Company
Bank Reconciliation Statement for August
$
Cash balance per books 7374
Outstanding checks 708
August bank service charge (60)
Deposits in transit (3710)
Electronic funds transfer 3026
Balance per bank 7338
Adjusting entries
August bank service charge
Dr Bank charge $60
Cr Cash account $60
Being entries to record the bank charge for August
Electronic funds transfer
Dr Cash Account $3026
Cr Accounts receivable $3026
Being entries to record cash received from a customer
Explanation:
The bank reconciliation statement identifies transactions that have been correctly recorded by the bank but are yet to be correctly recorded in the books (if recorded).
Considering the given transactions;
Outstanding checks have been deducted from the cash book but are yet to be deducted from the bank.
The bank charge has been deducted from the bank balance but is yet to be recorded in the cash book.
Deposits in transit has been added to the cash book balance but is yet to be added to the bank balance hence it is deducted from the cash book balance to reconcile it to the bank balance.
Electronic funds transfer has been added to the bank balance and will be added to the cash book balance.
Only the bank charge and electronic transfer are yet to be adjusted for in the books hence adjusting entries are required for these 2 items.
Suppose the economy of the large country of Hendrix is currently experiencing expansion as a result of short run business cycle fluctuations. Hendrix has a trade deficit. The items below are possible effects of this expansion on the trade balance. Please sort them into boxes below as appropriate. If they do not fit into either box (e.g. not likely to occur in an expansion), leave them unsorted.
Likely to occur in an expansion and increase the trade deficit
Likely to occur in an expansion and decrease the trade deficit
private savings decrease domestic private investment increases private savings increase government borrowing decreases imports increase government borrowing increases domestic private investment decreases imports decrease
Answer:
Likely to occur in an expansion and increase the trade deficit.
Domestic private investment increasesImports increaseAs a result of expansion, there is more income in the economy which means that people will be able to invest more. The investment will however lead to more imports as capital goods are acquired. This will therefore increase the trade deficit which is defined as the difference between net exports and net imports.
Likely to occur in an expansion and decrease the trade deficit.
Private savings increaseGovernment borrowing decreasesIn an expansion, people will have more income and so will save more. As a result of them not spending these savings on imports, the trade deficit will go down.
Also with the economy in an expansion, the government would not need to borrow as much money to prop up the economy. This will reduce the trade deficit which includes loans from outside.
Patterson and Clay Companies both use cost-plus pricing formulas and arrived at a selling price of $1,000 for the same product. Patterson uses absorption manufacturing cost as the basis for computing its dollar markup whereas Clay uses total cost. Which of the following choices correctly denotes the company that would have (1) the higher cost basis for deriving its dollar markup and (2) the higher markup percentage?
Cost Basis Patterson Patterson Clay Clay More information is needed to judge Markup Percentage Patterson Clay Patterson Clay More information is needed to judge
A. Choice A
B. Choice B
C. Choice C
D. Choice D
E. Choice E
Answer:
Patterson and Clay Companies
1. Higher cost basis for marking up is:
= Clay Company
2. Higher markup percentage is:
= Patterson Company
Explanation:
a) Data and Analysis:
Costing formulas:
Patterson:
Absorption manufacturing cost
Markup = Higher markup rate
Selling price $1,000
Clay:
Total cost = Higher cost basis for marking up
Markup
Selling price $1,000
b) Total cost is higher than total manufacturing costs. It includes more than the total manufacturing costs. Absorption manufacturing costs only include the variable manufacturing costs and fixed manufacturing overhead costs. Total costs include all the absorption costs and other selling, administrative, and distribution costs.
Identify a product you use every day. Assume you are the marketer of the product and want to convey the ways your product differs from competing products in the marketplace. Create a differentiation strategy to promote your product and create a competitive advantage
Answer:
Being a marketer for a product like Nike shoe, here, Nike shoe is different from other shoes as this shoe has unique brand value include swoosh logo, design of the shoe that could be customized, highly comfortable for various.
William is a single writer (age 35) who recently decided that he needs to save more for retirement. His 2020 AGI before the IRA contribution deduction is $66,000 (all earned income). (Leave no answer blank. Enter zero if applicable.) a. If he does not participate in an employer-sponsored plan, what is the maximum deductible IRA contribution William can make in 2020?
Answer: $6,000
Explanation:
As per IRS deduction rules in 2020, the maximum deductible IRA contribution for a person who does not participate in an employer-sponsored plan is $6,000.
That is therefore the maximum deductible that William can make in this scenario.