Answer:
1 a. $19,190
1 b. Yes
2 a. $19,050
2 b. No
3. The difference of $162,000 will be subtracted from the book balance.
Explanation:
Reconciliation Statement:
Balance as per bank $16,990
Add: deposits $4,800
Less; Outstanding Checks - $2,600
Adjusted Bank Balance $ 19,190
Balance as per Books $12,320
Less: EFT on monthly bills - $1,600
Add: Notes Collected $10,200
Add: Interest On notes $1,300
Less: Error in recording $70
Add: Service Fees - $100
Less : Checks returned -$3,000
Adjusted Balance of Books $19,190
Highsmith Rental Company purchased an apartment building early in 2021. There are 20 apartments in the building and each is furnished with major kitchen appliances. The company has decided to use the group depreciation method for the appliances. The following data are available:
Appliance Cost Residual Value Service Life (in Years)
Stoves $15,000 $3,000 6
Refrigerators 10,000 1,000 5
Dishwashers 8,000 500 4
In 2019, three new refrigerators costing $2,700 were purchased for cash. The old refrigerators, which originally cost $1,500, were sold for $200.
Requried:
a. Calculate the group depreciation rate, group life, and depreciation for 2016.
b. Prepare the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators.
Answer:
A. Group depreciation rate 17.197%
Group life 5.02 years
Depreciation for 2016 $5,675
B. 2019
Dr Stove, refrigerator and dishwasher $2,700
Cr Cash $2,700
2019
Dr Accumulated Depreciation $1,300
Dr Cash $200
Cr Stove, refrigerator and dishwasher $1,500
Explanation:
A. Calculation to determine the group depreciation rate, group life, and depreciation for 2016.
First step is the Computation of Group depreciation rate, group life and depreciation for 2016
Assets Original Residual Depreciation Estimated Depreciation
Cost Value Cost Life-Years per year-SLM
Stoves $15,000-$3,000= $12,000 6 $2,000 ($12,000/6=$2,000)
Refrigerators $10,000-$1,000=$9,000 5 $1,800 ($9,000/5=$1,800)
Dishwashers $8,000-$500=$7,500 4 $1,875
($7,500/4=$1,875)
Total $33,000 $4,500 $28,500 $5,675
Now let determine the group depreciation rate, group life, and depreciation for 2016.
Calculation for group depreciation rate using this formula
Group Depreciation Rate = Total depreciation per year ÷ Total original cost
Let plug in the formula
Group depreciation rate = $5,675 ÷ $33,000*100
Group depreciation rate= 17.197%
Calculation for Group life using this formula
Group life = Total depreciation cost ÷ Total depreciation per year
Let plug in the formula
Group life = $28,500 ÷ $5,675
Group life = 5.02 years
Calculation for Depreciation for 2016 using this formula
Depreciation for 2016= Original Cost × Group Depreciation Rate
Let plug in the formula
Depreciation for 2016 = $33,000 × 0.17197
Depreciation for 2016= $5,675
Therefore the group depreciation rate is 17.197%, group life is 5.02 years, and depreciation for 2016 is $5,675
B. Preparation of the journal entries to record the purchase of the new refrigerators and the sale of the old refrigerators.
2019
Dr Stove, refrigerator and dishwasher $2,700
Cr Cash $2,700
(To record purchase of new refrigerator)
2019
Dr Accumulated Depreciation $1,300
($1,500-$200)
Dr Cash $200
Cr Stove, refrigerator and dishwasher $1,500
(To record sale of old refrigerator)
On January 1, 2009, Erin owed $17,605 to her friend Katie, who was kind enough not to charge Erin any interest. Each month during 2009, Erin paid Katie some of the money she owed. If Erin still owed Katie $6,241 on January 1, 2010, what was the average amount of Erin's monthly payments
Answer:
$947
Explanation:
Amount of money Erin owed to Katie on Jan 1, 2009 = $17,605
owed to Katie on Jan 1, 2010 = $6,241
Amount of money Erin paid Katie each month during 2009 = $17,605 - $6,241 = $11,364
Average amount of Erin monthly payment = $11,364 / 12 months = $947
PLEASE HELP !!!
start with define what is limits of authority, then give examples
Answer:
"Authority limits" are an essential part of the creation of a qualified organization. There are a number of advantages and requirements in setting such limits.
A philosophy scholar who publishes books is an example of authority.
Explanation:
The source of strength is limited authority. The ability to say, "I cannot agree to your offer because the manager does not let me do so or since company policy does not allow you to do so" is an effective way of saying 'no' and of finding out how hard it is for the rest to work to reach a better understanding. One way to simultaneously limit your power and gain power is through corporate limitations.
Authority organizational restrictions are common. Each of us met such limits without much resistance and accepted them. When you next wish to think about or try to make further concessions, tell the other party you should discuss the issue with one or more of your organization's following people:
Your boss. Your partner."Committee" members.One or more of your assistants.One or several of your colleagues.The accountant or the controller.Your lawyer. The banker who loans money for you.Your wife or friend. Managers in other departments such as production, quality, or sales.Your client.Your supplier.Most negotiators feel uncomfortable with their authority's corporate constraints. I would advise you not to reject these restrictions, but to welcome them. It will facilitate pushing for your desired agreement.
Flexible Budgeting
At the beginning of the period, the Fabricating Department budgeted direct labor of $9,280 and equipment depreciation of $2,300 for 640 hours of production. The department actually completed 600 hours of production. Determine the budget for the department, assuming that it uses flexible budgeting.
Flexible Budgeting
At the beginning of the period, the Grinding Department budgeted direct labor of $55,200 and property tax of $30,000 for 2,400 hours of production. The department actually completed 2,900 hours of production. Determine the budget for the department, assuming that it uses flexible budget.
Answer:
Results are below.
Explanation:
Giving the following information:
The flexible budget is adapting the standard costs to the actual quantity.
Fabricating Department:
Depreciation= $2,300
Standard hourly rate= 2,300/640= $3.594
The department completed 600 hours of production.
Actual budget:
Depreciation= 2,300
Direct labor= 3.594*600= 2,156.4
Total cost= $4,456.4
Grinding Department:
Property tax= $30,000
Standard hourly rate= 55,200/2,400= $23
The department completed 2,900 hours of production.
Actual budget:
Property tax= $30,000
Direct labor= 23*2,900= 66,700
Total cost= $96,700
Explain the concept of a Pereto Chart - provide an example - explain how the concept of the Pereto Chart might be used in making decisioins about handling negative risks which could impact a project or organization.
Answer:
a. A Pareto Chart is a graph that shows the frequency of flaws and their overall impact.
b. For instance, by using Pareto Charts, you might discover that putting in 13% of the effort yields 87% of the results. Alternatively, 30% of underlying causes might be addressed to solve 70% of problems.
c. Pareto charts are important for deciding which defects or negative risks should be prioritized in order to achieve the best overall results.
Explanation:
a. Explain the concept of a Pereto Chart
A Pareto Chart is a graph that shows the frequency of flaws and their overall impact. A Pareto chart is a fundamental quality tool that can be used to identify the most common problems, complaints, or any other countable and categorizeable factor. A Pareto chart is a form of graph that includes both bars and a line graph, with bars representing individual values in descending order and a line representing the cumulative total.
b. Provide an example
The Pareto Principle explains how there is frequently a lack of symmetry between the labor you do and the outcomes you get. For instance, by using Pareto Charts, you might discover that putting in 13% of the effort yields 87% of the results. Alternatively, 30% of underlying causes might be addressed to solve 70% of problems.
b. Explain how the concept of the Pereto Chart might be used in making decisioins about handling negative risks which could impact a project or organization.
A Pareto diagram is used to distinguish between the important and inconsequential components of a problem. It frequently shows the most common sources of defects, the most common type of fault, the most common grounds for customer complaints, and so on in quality control.
Therefore, Pereto Chart might be used in making decisioins about handling negative risks which could impact a project or organization as it allows a project team or an organisation to know where to focus their improvement efforts by graphically distinguishing the parts of an issue. Pareto charts are therefore important for deciding which defects or negative risks should be prioritized in order to achieve the best overall results.
Bryant Investments is putting out a new product. The product will pay out $32,000 in the first year, and after that the payouts will grow by an annual rate of 2.75 percent forever. If you can invest the cash flows at 7.25 percent, how much will you be willing to pay for this perpetuity
Answer:
PV= $711,111.11
Explanation:
Giving the following information:
Cash flow (Cf)= $32,000
Annual growth (g)= 2.75%
Interest rate (i)= 7.25%
To calculate the present value (the amount that you are willing to pay), we need to use the following formula:
PV= Cf / (i - g)
PV= 32,000 / (0.0725 - 0.0275)
PV= $711,111.11
You have just started a new job and plan to save $5,200 per year for 36 years until you retire. You will make your first deposit in one year. How much will you have when you retire if you earn an annual interest rate of 9.54 percent?
a. $1,331,411.17
b. $1,394,509.68
c. $1,346,423.14
d. $1,268,312.65
e. $1,333,878.83
Answer:
$1,394,509.68
Explanation:
Savings amount = $5200
Period = 36 years
Interest = 9.54 percent
We solve for the future value of the annuity
= $5200[(1+0.0954)³⁶-1/0.0954]
= 5200 x [1.0954³⁶-1/0.0954]
= 5200 x 268.1749
= 1,394,509.681 dollars
Therefore after retirement and at an interest rate of 9.54 percent, you would be earning 1,394,509.681 dollars.
Option b.
Oriole Inc. had beginning inventory of $11,400 at cost and $20,600 at retail. Net purchases were $127,926 at cost and $181,000 at retail. Net markups were $9,500, net markdowns were $6,900, and sales revenue was $148,900. Compute ending inventory at cost using the conventional retail method. (Round ratios for computational purposes to 0 decimal places, e.g. 78% and final answer to 0 decimal places, e.g. 28,987.)
Answer:
Ending inventory at cost using the conventional retail method is $36,498.
Explanation:
Note: See the attached excel file for the computation of Goods available for sales and Ending inventory at Retail.
From the attached excel file, we have:
Goods available for sales at Cost = $139,326
Goods available for sales at Retail = $211,100
Ending inventory at Retail = $55,300
Therefore, we have:
Ratio of goods available for sales of Cost to Retail = Goods available for sales at Cost / Goods available for sales at Retail = $139,326 / $211,100 = 0.66, or 66%
Ending inventory at Cost = Ending inventory at Retail * Ratio of goods available for sales of Cost to Retail = $55,300 * 66% = $36,498
Therefore, ending inventory at cost using the conventional retail method is $36,498.
what are the consequences on the auditor if he auditor fails to report information??
Answer: Audit failures are routinely implicated with loss deposits, loss of employments and loss of livelihoods of individuals.
Explanation: Example of audit failures and its effects to individuals: The damage done to people's lives by audit failures is well documented
this might be helpful for you ..
You are planning to save for retirement over the next 25 years. To do this, you will invest $1,000 a month in a stock account and $700 a month in a bond account. The return of the stock account is expected to be 9 percent, and the bond account will pay 6 percent. When you retire, you will combine your money into an account with a return of 7 percent. How much can you withdraw each month from your account assuming a 20-year withdrawal period
Answer:
Monthly withdraw= $12,452.6
Explanation:
First, we need to calculate the total accumulated at the moment of retirement. We will use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
Stock:
Monthly investment= $1,000
Interest rate= 0.09/12= 0.0075
Number of periods= 25*12= 300 months
FV= {1,000*[(1.0075^300) - 1]} / 0.0075
FV= $1,121,121.94
Bond:
Monthly investment= $700
Interest rate= 0.06/12= 0.005
Number of periods= 25*12= 300 months
FV= {700*[(1.005^300) - 1]} / 0.005
FV= 485,095.77
Total FV= 1,121,121.94 + 485,095.77
Total FV= $1,606,217.71
Now, the annual withdrawal:
Interest rate= 0.07/12= 0.005833
Number of months= 12*20= 240
Monthly withdraw= (FV*i) / [1 - (1+i)^(-n)]
Monthly withdraw= (1,606,217.71*0.005833) / [1 - (1.005833^-240)]
Monthly withdraw= $12,452.6
what is the 4P of marketing
Answer:
The 4Ps of marketing is a model for enhancing the components of your "marketing mix"price, product, promotion, and place
Explanation:
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Given the following production plan, use a chase production strategy to compute the monthly production, ending inventory/(backlog), net requirements and required workforce levels. A worker can produce 75 units per month. Assume that the beginning inventory in January is 750 units, and the firm desires to have 750 units of inventory at the end of June.
Month Jan Feb Mar Apr May Jun
Demand 2100 3000 5100 6000 4800 2400
Required:
a. What are the net requirements for January?
b. What month has the highest number of workers required?
c. What is the production level for June?
d. How many people will be employed for the month of January?
Answer:
Computation of the monthly production, ending inventory/(backlog), net requirements and required workforce levels:
a. The net requirements for January = 2,025 units and 27 workers.
b. The month with the highest number of workers required is April.
c. The production level for June is 2,475 units
d. 27 workers will be employed for the month of January.
Explanation:
a) Data and Calculations:
Production per worker per month = 75 units
Beginning inventory in January = 750 units
Desired ending inventory in June = 750 units
Production Schedule, using the chase production strategy:
Month Jan Feb Mar Apr May Jun
Beginning inventory 75 0 0 0 0 0
Monthly production 2,025 3,000 5,100 6,000 4,800 2,475
Net requirements 2,100 3,000 5,100 6,000 4,800 2,400
Ending inventory/(backlog) 0 0 0 0 0 75
Required workforce levels 27 40 68 80 64 33
The purpose of managerial accounting is to provide useful information to management and other internal decision makers. It does this by collecting, managing, and reporting both monetary and nonmonetary information in a manner useful to internal users. Major characteristics of managerial accounting include (1) focus on internal decision makers, (2) emphasis on planning and control, (3) flexibility, (4) timeliness, (5) reliance on forecasts and estimates, (6) focus on segments and projects, and (7) reporting both monetary and nonmonetary information. Ethics are beliefs that distinguish right from wrong. Ethics can be important in reducing fraud in business operations.
The purposes of managerial accounting are to provide useful information to aid in: __________
a. Renewing pest activities,
b. Determining costs of products and services.
c. Determining costs of employee wages and "lanes
d. Comparing actual to planned
Answer:
d. Comparing actual to planned
Explanation:
The purpose of managerial accounting are to provide useful information to aid managers. It is important to remember that managerial accounting is for internal use only whilst financial accounting is for external use (reporting purposes).
Since one of the characteristics of managerial accounting is planning and control, this is made possible by comparing actual to planned.
1. Describe how a global project can be more complex than a project performed within just one country. How might these elements affect the successful outcome of the global project
Answer:
Globalization alters the project's characteristics. Multinational and multilingual initiatives are possible in global projects. Managers must be able to communicate with individuals from diverse nations.
A manager requires a different set of skills to manage projects on a global scale. The following are things he should be aware of:
Cultural sensitivity
Learn about the other organizations' traditions.
ability to operate in a fast-paced, unpredictably changing workplace
Create a productive team.
Develop a sense of trust
All of these elements are equally crucial for the project's worldwide success.
The initiatives that are held at a worldwide level are more difficult.
Doug Allen has decided to go into the insect extermination business and to operate as Doug's Extermination Service. The following transactions were completed during the first month of operations, May, 20--.
1. Doug invested $35,000 cash in the business.
2. Purchased extermination equipment for $17,000 in cash.
3. Paid $700 rent for garage and office quarters.
4. Purchased chemicals (expense) for $1,100 from Low Glow Chem Co. on account.
5. Received $1,600 revenue for extermination service.
6. Paid telephone bill, $120
7. Paid assistant's salary, $700.
8. Earned $980 revenue for extermination service, on account.
9. Paid electric bill, $230.
10. Paid for truck repairs (expense), $145.
11. Paid $600 to Low Glow Chem Co., on account.
12. Paid $131 for gas and oil for truck (expense).
13. Received $1,400 revenue for extermination service.
14. Received $500 for services previously earned on account in transaction (8).
15. Paid assistant's salary, $900.
Required:
Write the transactions in the T accounts, then write the total of each column. If an account has entries on both sides, determine the balance and enter it on the side with the larger total.
Answer:
Doug's Extermination Service
T-accounts:
Cash
Account Titles Debit Credit
Common stock $35,000
Extermination equipment $17,000
Rent 700
Extermination Revenue 1,600
Utilities Expense 120
Salary Expense 700
Utilities Expense 230
Truck Expenses 145
Accounts Payable (Low Glow) 600
Truck Expense 131
Extermination service 1,400
Accounts Receivable 500
Salary Expense 900
Balance $17,974
Common Stock
Account Titles Debit Credit
Cash $35,000
Extermination equipment
Account Titles Debit Credit
Cash $17,000
Rent Expense
Account Titles Debit Credit
Cash $700
Supplies Expense
Account Titles Debit Credit
Accounts payable $1,100
Accounts Payable (Low Glow Chem Co.)
Account Titles Debit Credit
Supplies Expense $1,100
Cash $600
Balance $500
Extermination Service Revenue
Account Titles Debit Credit
Cash $1,600
Accounts Receivable 980
Cash 1,400
Balance $3,980
Utilities Expense
Account Titles Debit Credit
Cash $120
Cash 230
Balance $350
Salary Expense
Account Titles Debit Credit
Cash $700
Cash 900
Balance $1,600
Accounts Receivable
Account Titles Debit Credit
Extermination Service Revenue $980
Cash $500
Balance $480
Truck Expenses
Account Titles Debit Credit
Cash $145
Cash 131
Balance $276
Explanation:
a) Data and Analysis:
1. Cash $35,000 Common Stock $35,000
2. Extermination equipment $17,000 Cash $17,000
3. Rent $700 Cash $700
4. Supplies Expense $1,100 Accounts Payable (Low Glow Chem Co.) $1,100
5. Cash $1,600 Extermination Service Revenue $1,600
6. Utilities Expense $120 Cash $120
7. Salary Expense $700 Cash $700
8. Accounts Receivable $980 Extermination Service Revenue $980
9. Utilities Expense $230 Cash $230
10. Truck Expenses $145 Cash $145
11. Accounts Payable (Low Glow Chem Co.) $600 Cash $600
12. Truck Expense $131 Cash $131
13. Cash $1,400 Extermination Service Revenue $1,400
14. Cash $500 Accounts Receivable $500
15. Salary Expense $900 Cash $900
In order to update a production process, a company can spend money now or four years from now. If the amount now would be $20,000, what equivalent amount could the company spend four years from now at a compound interest rate of 15% per year?(All the alternatives presented below were calculated using compound interest factor tables including all decimal places
Answer: $34,980.13
Explanation:
The amount that the company will spend 4 years from now is simply the future value of the amount that it can spend today.
The amount to be spent today is $20,000 so the amount to be spent 4 years from now is the future value of $20,000:
= Amount * (1 + rate) ^ number of years
= 20,000 * ( 1 + 15%)⁴
= $34,980.13
what is consumer surplus
Thinking strategically about industry and competitive conditions in a given industry involves evaluating such considerations as
a. cultural, lifestyle, and demographic changes.
b. the birth of new industries, new knowledge, and disruptive technologies.
c. weather, climate change, and water shortages.
d. interest rates, exchange rates, unemployment rates, inflation rates, and economic growth.
e. how often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.
Answer:
E
Explanation:
How often sellers alter their prices, how sensitive buyers are to price differences among sellers, whether the item being purchased is a good or a service, and whether buyers buy frequently or infrequently.
The strategy decision making about the industry and competitive conditions involve evaluating the prices, buyer sensitivity to the prices, serviceability & frequency.
what is the effect on the market when suppliers under invest in their business
Porter Corp. purchased its own par value stock on January 1, 2014 for $20,000 and debited the treasury stock account for the purchase price. The stock was subsequently sold for $12,000. The $8,000 difference between the cost and sales price should be recorded as a deduction from
a. additional paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.
b. additional paid-in capital without regard as to whether or not there have been previous net "gains" from sales of the same class of stock included therein.
c. retained earnings.
d. net income.
Answer: a. additional paid-in capital to the extent that previous net "gains" from sales of the same class of stock are included therein; otherwise, from retained earnings.
Explanation:
When a stock is sold for higher than its par value, the additional value is recorded in the additional paid-in capital account as a gain to equity.
If a treasury stock is sold for less than its cost, the difference between the selling price and the cost will be deducted from the additional paid in capital account but the only amount that is deductible is the gain that the company has made so far from selling stock above their par value.
If the loss from the treasury stock is more than this gain, the remainder will be deducted from the retained earnings account.
Which of the following lies primarily within the realm of macroeconomics? a study of the demand for gasoline a study of how tax cuts stimulate aggregate production an analysis of supply and demand conditions in the electricity market a study of the impact of "mad cow" disease on the price of beef worldwide
Answer:
study of how tax cuts stimulate aggregate production
Explanation:
Compared to microeconomics, macroeconomics is known to deal with the big issues such as the GDP of nations, inflation and employment. I t is focused on how an entire nations economy is performing, structured or behaving. It uses such variables such as interest rate, taxes and government expenditures in the regulation of an economy to help it attain economic growth and to be stable
Journalize the following selected transactions of Miramax Rentals. Omit explanations.
Aug. 1 Purchased two new saws on credit at $425 each. The saws are added to Mirmax's rental inventory. Payment is due in 30 days.
8 Accepted advance deposits of $125 for tool rentals that will be applied to the cash rental when the tools are returned.
20 Charged customers $1,250 on account for tool rentals. Payment is due within 30 days.
31 Paid utility bill for the month, $180.
31 Received $600 in payments from the customers that were billed for rentals on August 20.
Answer and Explanation:
The journal entries are shown below:
On Aug 1
Inventory Dr $850
To Accounts payable $850
(Being inventory purchased on account)
On Aug 8
Cash Dr $125
To Advance deposit a/c $125
(Being cash receipts is recorded)
On Aug 20
Accounts Receivable Dr $1250
To Rental Revenue $1250
(Being revenue is recorded)
On Aug 31
Utility expense Dr $180
To Cash $180
(Being cash paid is recorded)
On Aug 31
Cash Dr $600
To Accounts Receivable a/c $600
(Being cash received is recorded)
A corporate bond returns 12 percent of its cost (in PV terms) in the first year, 11 percent in the second year, 10 percent in the third year and the remainder in the fourth year. What is the bond's duration in years?
Answer: 3.32 years
Explanation:
The remainder return in the fourth year will be calculated as:
= 1 - 0.12 - 0.11 - 0.10
= 0.67
Year 1:
Return = 12% = 0.12
Year × Return = 1 × 0.12 = 0.12
Year 2
Return = 11% = 0.11
Year × Return = 2 × 0.11 = 0.22
Year 3
Return = 10% = 0.10
Year × Return = 0.30
Year 4
Return = 0.67
Year × Return = 2.68
Bond's duration = 0.12 + 0.22 + 0.30 + 2.68 = 3.32 years
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Answer:
_______________________
Scampini Technologies is expected to generate $175 million in free cash flow next year, and FCF is expected to grow at a constant rate of 4% per year indefinitely. Scampini has no debt or preferred stock, and its WACC is 10%. If Scampini has 55 million shares of stock outstanding, what is the stock's value per share
Answer:
the stock value per share is $53
Explanation:
The computation of the stock value per share is shown below:
Value of operations = Free cash flows ÷ ( Capitalization Rate - growth rate )
= $175 Million ÷ ( (10% - 4%)
= $2,917
Now stock value per share is
= $2,917 ÷ 55 million shares
= $53 per share
Hence, the stock value per share is $53
When economists say that a good is non-rival in consumption, they mean that:____.
a. more than one person can enjoy the good at the same time.
b. everyone wants the good.
c. the good is widely available.
d. no one wants the good.
Answer: When economists say that a good is no -rival in consumption, More than one person can enjoy the good at the same time
A good is excludable if someone can be prevented from using it. A good is rival in consumption if one person's use reduces others' ability to use the same unit of the good. Markets work best for private goods, which are excludable and rival in consumption. Markets do not work well for other types of goods.
CDB stock is currently priced at $77. The company will pay a dividend of $5.37 next year and investors require a return of 11.8 percent on similar stocks. What is the dividend growth rate on this stock
Answer:
4.82%
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
77 = 5.37 / (0.118 - g)
77(0.118 - g) =5.37
(0.118 - g) = 5.37 / 77
(0.118 - g) = 0.069740
g = 0.118 - 0.069740
g = 0.04826
g = 4.82%
Sandhill Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising transactions occurred.
June
1 Purchased books on account for $2,575 (including freight) from Catlin Publishers, terms 2/10, n/30.
3 Sold books on account to Garfunkel Bookstore for $1,300. The cost of the merchandise sold was $900.
6 Received $75 credit for books returned to Catlin Publishers.
9 Paid Catlin Publishers in full.
15 Received payment in full from Garfunkel Bookstore.
17 Sold books on account to Bell Tower for $1,150. The cost of the merchandise sold was $750.
20 Purchased books on account for $900 from Priceless Book Publishers, terms 3/15, n/30.
24 Received payment in full from Bell Tower.
26 Paid Priceless Book Publishers in full.
28 Sold books on account to General Bookstore for $1,900. The cost of the merchandise sold was $970. 30 Granted General Bookstore $130 credit for books returned costing $90.
Required:
Journalize the transactions for the month of June for Sandhill Warehouse, using a perpetual inventory system.
Answer:
01-Jun
Dr Inventory $2,575
Cr Accounts Payable $2,575
03-Jun
Dr Accounts Receivable $1,300
Cr Sales $1,300
03-Jun
Dr Cost of goods sold $900
Cr Inventory $900
06-Jun
Dr Accounts Payable $75
Cr Inventory $75
09-Jun
Dr Accounts Payable $2,500
Cr Cash $2,450
Cr Inventory $50
15-Jun
Dr Cash $1,300
Cr Accounts Receivable $1,300
17-Jun
Dr Accounts Receivable $1,150
Cr Sales $1,150
17-Jun
Dr Cost of goods sold $ 750
Cr Inventory $ 750
20-Jun
Dr Inventory $ 900
Cr Accounts Payable $ 900
24-Jun
Dr Cash $1,127
Dr Sales Discounts $ 23
Cr Accounts Receivable $1,150
26-Jun
Dr Accounts Payable $ 900
Cr Cash $873
Cr Inventory $27
28-Jun
Dr Accounts Receivable $1,900
Cr Sales $1,900
28-Jun
Dr Cost of goods sold $970
Cr Inventory $970
30-Jun
Dr Sales Returns & Allowances $130
Cr Accounts Receivable $130
30-Jun
Dr Inventory $90
Cr Cost of goods sold $90
Explanation:
Preparation of the journal entries for the month of June for Sandhill Warehouse, using a perpetual inventory system.
01-Jun
Dr Inventory $2,575
Cr Accounts Payable $2,575
03-Jun
Dr Accounts Receivable $1,300
Cr Sales $1,300
03-Jun
Dr Cost of goods sold $900
Cr Inventory $900
06-Jun
Dr Accounts Payable $75
Cr Inventory $75
09-Jun
Dr Accounts Payable $2,500
($2,575-$75)
Cr Cash $2,450
($2,500-$50)
Cr Inventory $50
($2,500*2%)
15-Jun
Dr Cash $1,300
Cr Accounts Receivable $1,300
17-Jun
Dr Accounts Receivable $1,150
Cr Sales $1,150
17-Jun
Dr Cost of goods sold $ 750
Cr Inventory $ 750
20-Jun
Dr Inventory $ 900
Cr Accounts Payable $ 900
24-Jun
Dr Cash $1,127
($1,150-$23)
Dr Sales Discounts $ 23
($1,150*2%)
Cr Accounts Receivable $1,150
26-Jun
Dr Accounts Payable $ 900
Cr Cash $873
($900-$27)
Cr Inventory $27
(900*3%)
28-Jun
Dr Accounts Receivable $1,900
Cr Sales $1,900
28-Jun
Dr Cost of goods sold $970
Cr Inventory $970
30-Jun
Dr Sales Returns & Allowances $130
Cr Accounts Receivable $130
30-Jun
Dr Inventory $90
Cr Cost of goods sold $90
Lin Corporation has a single product whose selling price is $134 per unit and whose variable expense is $67 per unit. The company’s monthly fixed expense is $31,750. Required: 1. Calculate the unit sales needed to attain a target profit of $8,450. (Do not round intermediate calculations.) 2. Calculate the dollar sales needed to attain a target profit of $9,700.
Answer:
Results are below.
Explanation:
Giving the following information:
Fixed cost= $31,750
Unitary contribution margin= 134 - 67= $67
To calculate the number of units to be sold, we need to use the following formula:
Break-even point in units= (fixed costs + desired profit) / contribution margin per unit
Desired profit= $8,450
Break-even point in units= (31,750 + 8,450) / 67
Break-even point in units= 600
Now, the desired profit is $9,700; we need to use the following formula:
Break-even point (dollars)= (fixed costs + desired profit) / contribution margin ratio
Break-even point (dollars)= (31,750 + 9,700) / (67/134)
Break-even point (dollars)= 41,450 / 0.5
Break-even point (dollars)= $82,900
Match the definitions that follow with the term it defines.
a. Demand-based concept
b. Competition-based concept
c. Product cost concept
d. Target costing
e. Production bottleneck
1. Constraint
2. Combines market-based pricing with a cost-reduction emphasis
3. Only includes the costs of manufacturing in product cost per unit
4. Sets the price according to competitors
5. Sets the price according to demand
Answer:
1)e. Production bottleneck
2)d. Target costing
3)c. Product cost concept
4)b. Competition-based concept
5)a. Demand-based concept
Explanation:
1.) Constraint ( Production bottleneck)
A bottleneck as regards production can be explained as point of congestion that is reach in a production system, for instance in
an assembly line which takes place
as a result of arrival of workloads so quickly for the handling of production process.
2. Combines market-based pricing with
a cost-reduction emphasis(Target costing)
Target costing can be regarded as approach used in determining of life-cycle cost of product that is required to be sufficient to develop specified functionality as well as quality, making sure desired profit is ensured.
3. Only includes the costs of manufacturing in product cost per unit
(Product cost concept)
Product cost can be regarded as costs that is been incurred during creation of a product. Some of these costs are
factory overhead, direct labor as well as direct materials, and consumable production supplies.
4. Sets the price according to competitors(Competition-based concept)
Competition based pricing can be regarded as Concept that is been used in setting one's prices in relation to the prices of one's competitors.
5. Sets the price according to demand
(Demand-based concept)
Demand Based Pricing can be regarded as pricing method which is focus on customer's demand as well as perceived value of the product.