Answer: See explanation
Explanation:
Length of contract: 12 months
Income recorded in 2019:
= $40,000 × 6/12
= $40,000 × 1/2
= $20,000
Income recorded in 2020:
= $40,000 × 6/12
= $40,000 × 1/2
= $20,000
Length of contract: 24 months
Income recorded in 2019:
= $80,000 × 6/24
= $80,000 × 1/4
= $20,000
Income recorded in 2020:
= $80,000 × 18/24
= $80,000 × 3/4
= $60,000
Write down
any
four importance of employment
Answer:
1. to make money to pay bills.
2. to sopport your family.
3. to so responce abilaty.
sorry I can't think of a fourth one.
The general ledger of Pipers Plumbing at January 1, 2018, includes the following account balances:
Accounts Debits Credits
Cash $ 4,500
Accounts receivable 9,500
Supplies 3,500
Equipment 36,000
Accumulated depreciation $ 8,000
Accounts payable 6,000
Utilities payable 7,000
Deferred revenue 0
Common stock 23,000
Retained earnings 9,500
Totals $ 53,500 $ 53,500
The following is a summary of the transactions for the year:_______.
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
2. March 13 Collect on accounts receivable, $51,000.
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
4. June 30 Pay salaries for the current year, $32,600.
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
6. November 24 Receive cash in advance from customers, $9,200.
7. December 30 Pay $2,600 cash dividends to stockholders.
The following information is available for the adjusting entries.
Depreciation for the year on the machinery is $7,200.
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Accrued utilities at year-end amounted to $6,400.
Answer:
Journal entries
1. January 24 Provide plumbing services for cash, $18,000, and on account, $63,000.
Dr Cash 18,000
Dr Accounts receivable 63,000
Cr Service revenue 81,000
2. March 13 Collect on accounts receivable, $51,000.
Dr Cash 51,000
Cr Accounts receivable 51,000
3. May 6 Issue shares of common stock in exchange for $10,000 cash.
Dr Cash 10,000
Cr Common stock 10,000
4. June 30 Pay salaries for the current year, $32,600.
Dr Wages expense 32,600
Cr Cash 32,600
5. September 15 Pay utilities of $6,200 from 2020 (prior year).
Dr Utilities payable 6,200
Cr Cash 6,200
6. November 24 Receive cash in advance from customers, $9,200.
Dr Cash 9,200
Cr Unearned revenue 9,2000
7. December 30 Pay $2,600 cash dividends to stockholders.
Dr Dividends 2,600
Cr Cash 2,600
Adjusting entries
Depreciation for the year on the machinery is $7,200.
Dr Depreciation expense 7,200
Cr Accumulated depreciation, equipment 7,200
Plumbing supplies remaining on hand at the end of the year equal $1,000.
Dr Supplies expense 2,500
Cr Supplies 2,500
Of the $9,200 paid in advance by customers, $6,600 of the work has been completed by the end of the year.
Dr Unearned revenue 6,600
Cr Service revenue 6,600
Accrued utilities at year-end amounted to $6,400.
Dr Utilities expense 6,400
Cr Utilities payable 6,400
Suppose that, in a competitive market without government regulations, the equilibrium price of milk is $2.50 per gallon, and employees at grocery stores earn $21.50 per hour. Indicate the following whether each of the statements is an example of a price ceiling or a price floor and whether it results in a shortage or a surplus or has no effect on the price and quantity that prevail in the market.
a. There are many teenagers who would like to work at grocery stores, but the minimum-wage law sets the hourly wage at $25.00.
b. The government has instituted a legal minimum price of $2.30 per gallon for milk.
c. The government prohibits grocery stores from selling milk for more than $2.30 per gallon.
Explanation:
at price ceiling we have price set at a maximum level. it cannot be raised beyond this level. At binding price ceiling, price would be set to be lower than what is the equilibrium price level. a non binding price ceiling is set to be higher than equilibrium level.
At price floor, price is set to a particular minimum level. It cannot fall lower than this. At binding price floor, price is higher than equilibrium price' at non binding price floor, it is set to be lower than equilibrium price level.
this expalnation should help us to answer this question.
(a) Many teenagers would like to work but minimum wage is set at 25.00 we have Price floor, Binding
(b) Government instituted legal minimum price of a gallon of milk at $2.30 we have Price floor, Non-binding
(c) if the Government prohibits from selling milk for more than $2.30 per gallon then we have Price ceiling, Binding
The Board acknowledges your analysis and agrees with your conclusion. They are now curious about how Charles Schwab can use strategies of a mature industry to increase its revenue. You present them two options. One is to implement a product proliferation strategy to establish a presence in the niches that the new entrants are targeting. This strategy has proven to be very successful in the past and can be a very timely advantage. Another plausible strategy is product development to enhance current products. Research shows that the current product line is still fresh in the consumers’ eyes. Which is the wiser choice?
Explanation:
Analyzing the two strategies, the wisest choice would be the product proliferation strategy to establish a presence in the niches that the new competitors are aiming for.
This strategy consists of increasing a company's product mix, in order to increase its positioning in the market through the conquest of new market shares, which consists in the increase of consumers and a greater competitiveness for the company in entering new niches.
The other product development strategy to improve current products may not be a good strategy at the moment, as we have information that the current product is still fresh in the eyes of consumers, so the product is growing, which means that consumers already know the product and there are growth rates in the purchase and repurchase of the product.
Assume a par value of $1,000. Caspian Sea plans to issue a 9.00 year, semi-annual pay bond that has a coupon rate of 8.04%. If the yield to maturity for the bond is 7.79%, what will the price of the bond be
Answer:
$1,015.96
Explanation:
The Price of the Bond (PV) can be calculated as follows :
Fv = $1,000
Pmt = ($1,000 × 8.04%) ÷ 2 = $40.20
n = 9 × 2 = 18
p/yr = 2
i = 7.79%
pv = ?
Using a financial calculator to input the values as shown above, the Price of the Bond (PV) is $1,015.96
Bramble Corp. sells MP3 players for $60 each. Variable costs are $30 per unit, and fixed costs total $120000. How many MP3 players must Bramble sell to earn net income of $300000?
Answer:
Break-even point in units= 14,000 units
Explanation:
Giving the following information:
Selling price= $60
Variable costs are $30 per unit
Fixed costs total $120,000.
Desired profit= $300,000
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
Break-even point in units= (120,000 + 300,000) / 30
Break-even point in units= 14,000 units
What does patriotism mean
Answer:
patriotism is a synonym for Nationalism; a feeling of extreme pride for one's country.
Explanation:
Answer:
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Explanation:
Nutritional Foods reports merchandise inventory at the lower-of-cost-or-market. Prior to releasing its financial statements for the year ended August 31, 2019, Nutritional's preliminary income statement, before the year-end adjustments, appears as follows:
NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... 45,000
Gross Profit ........ $72,000
Nutritional has determined that the current replacement cost of ending merchandise inventory is $17,000. Cost is $19,000.
Required:
a. Journalize the adjusting entry for merchandise inventory, if any is required.
b. Prepare a revised partial income statement to show how Nutritional Foods should report sales, cost of goods sold, and gross profit.
Answer:
a) since the cost of ending inventory is higher than the replacement value, then ending inventory must decrease, which will result in higher COGS. The adjusting journal entry is:
March 31, 2017, inventory adjustment
Dr Cost of goods sold 2,000
Cr Merchandise inventory 2,000
b) revised income statement
NUTRITIONAL FOODS
Income Statement (Partial)
Year Ended March 31, 2017
Sales Revenue ........ $117,000
Cost of Goods Sold ..... $47,000
Gross Profit ........ $70,000
Presented below are selected balances for Tucker as of December 31, 2018:
Cash $50,000
Administrative expenses 90,000
Selling expenses 80,000
Accumulated other comprehensive income, beginning 55,000
Net sales 540,000
Cost of goods sold 210,000
Common stock, beginning 75,000
Cash dividends declared 20,000
Unrealized loss on available-for-sale debt securities 7,000
Interest expense 10,000
Cash dividends paid 15,000
Operating income from discontinued operations (before taxes) 30,000
Retained earnings, beginning 90,000
Loss on disposal of discontinued operations (before taxes) 45,000
Effective tax rate 30%
Required:
a. Compute net income for 2020.
b. Prepare an income statement for 2018 assuming 10,000 shares of common stock were outstanding all year.
Answer:
Tucker`s
Income Statement for the year end December 31, 2018
Net sales 540,000
Cost of goods sold (210,000)
Gross Profit 330,000
Administrative expenses 90,000
Selling expenses 80,000
Unrealized loss on available-for-sale debt securities 7,000
Interest expense 10,000 (187,000)
Net Income before tax from continuing activities 143,000
Income tax expense at 30% (43,900)
Net Income after tax from continuing activities 99,100
Explanation:
Prepare the Income statement for calculation of net income. Income statement consist of Revenues/ Income and Expenses.
Marketing by the Numbers: Pricey Sheets
Many luxury sheets cost less than $200 to make but sell for more than $500 in retail stores. Some cost even more consumers pay almost $3,000 for Frett'e "Tangeri Pizzo king-size luxury linens. The creators of a new brand of luxury linens, called Boll & Branch, have entered this market and are determining the price at which to sell their sheets directly to consumers online. They want to price their sheets lower than most brands but still want to earn an adequate margin on sales. The sheets come in a luxurious box that can be reused to store lingerie, jewelry, or other keepsakes. The Boll & Branch brand touts fair trade practices when sourcing its high-grade long staple organic cotton from India. Given the cost information below, refer to Appendix 2: Marketing by the Numbers to answer the following questions.
Cost/King-size Set
Raw Cotton $28.00
Spinning/Weaving/Dyeing $12,00
Cut/Sew/Finishing $10,00
Material Transportation $3,00
Factory Fee $16,00
Inspection and Import Fees $14,00
Ocean Freight/Insurance $5,00
Warehousing $8,00
Packaging $15,00
Promotion $30,00
Customer Shipping $15,00
10-13 Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on sales.
10-14 If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price you calculated in the previous question, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 10 percent margin and retailers get a 20 percent margin, both based on their respective selling prices.
Answer:
10-13 Given the cost per king-size sheet set above, and assuming the manufacturer has total fixed costs of $500,000 and estimates first year sales will be 50,000 sets, determine the price to consumers if the company desires a 40 percent margin on sales.
variable cost per unit = 28 + 12 + 10 + 3 + 16 + 14 + 5 + 8 + 15 + 30 + 15 = $156
average fixed cost per unit = $500,000 / 50,000 units = $10
total cost per unit = $166
desired profit margin = 40%, so total costs must be 60% of selling price
selling price = $166 / 60% = $276.67 ≈ $277 per unit
10-14 If the company decides to sell through retailers instead of directly to consumers online, to maintain the consumer price you calculated in the previous question, at what price must it sell the product to a wholesaler who then sells it to retailers? Assume wholesalers desire a 10 percent margin and retailers get a 20 percent margin, both based on their respective selling prices.
retailers' margin = $277 x 20% = $55.40
selling price to retailers = $277 - $55.40 = $221.60
wholesalers' margin = $221.60 x 10% = $22.16
selling price to wholesalers = $221.60 - $22.16 = $199.44 per unit
Which components should Enterprise Free Cash Flows include? I. Capital expenditures II. Financing costs III. Taxes IV. Working capital requirements
Answer:
I , III and IV
Explanation:
The free cash flow is the cash flow in which the cash is left after paying off the operating expenses and the capital structure
Free cash flow is
= EBIT × (1 - tax rate) + depreciation & Amortization - changes in net working capital - capital expenditure
Therefore, the correct option is I, III and IV and the same is to be considered
1. Rosa Green estimates the cost of future projects for a large contracting firm. Rosa uses precisely the same techniques to estimate the costs of every potential job and formulates bids by adding a standard profit markup. For some companies, to which the firm offers its services, there are no competitors also seeking their business, so Rosa's company is almost certain to get these companies as clients. For these jobs, Rosa finds that her cost estimates are right, on average. For jobs where competitors are also vying for the business, Rosa finds that they almost always end up costing more than she estimates.
a. True
b. False
2. Rosa is less likely to win the jobs where she underestimates the costs, causing her to experience the winner's curse.
a. False
b. True
Answer:
1) a. True
Rosa is almost always right when she knows that her company is a monopoly, i.e. has no competition, but is generally wrong when her company has to compete with other contractors. It is simple, a monopolist can decide which markup percentage to use, and can use a really high one, but when competition exists, markups are not so high and profits not so abundant. That is why she almost always gets it wrong when having to deal with other competitors.
2) a. False
The winner's curse usually happens when someone wins a bid over some contract or asset, but then they realize that the actual price of the contract or asset was lower than the bid. E.g. in an auction, two people are fighting over to see who buys an antique car which increases the price of the car way beyond the real market value. But it can also happen to a company that offers very low prices, and then after they won a contract, cannot perform properly because their actual costs are higher.
When a company makes an offer, they are certain about the price of the contract and they should know the value of the services or goods that they are offering. If Rosa underestimates her costs, and prepares her offer using unrealistically low costs, then she will probably win the bid but end up losing money.
At Bargain Electronics, it costs $32 per unit ($19 variable and $13 fixed) to make an MP3 player at full capacity that normally sells for $46. A foreign wholesaler offers to buy 3,180 units at $26 each. Bargain Electronics will incur special shipping costs of $4 per unit. Assuming that Bargain Electronics has excess operating capacity, indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
Reject Accept Net Income
Order Order Increase (Decrease)
Revenues
Costs-Manufacturing
Shipping
Net income
Answer:
Net income
Reject order $0
Accept order $9,540
Net Income Increase $9,540
Explanation:
Calculation to indicate the net income (loss) Bargain Electronics would realize by accepting the special order.
Reject Order Accept Order Net Income Increase (Decrease)
Revenues $0 $82,680 $82,680
($26*3,180 units)
Costs-Manufacturing $0 $60,420 $60,420
($19*3,180 units)
Shipping $0 $12,720 $12,720
($4*3,180)
Total cost $0 $73,140 $73,140
($60,420+$12,720)
Net income $0 $9,540 $9,540
($82,680-$73,140)
The Net income have increase by the amount of $9,540 which means that the SPECIAL ORDER should be accepted.
When all of a firm's inputs are doubled, input prices do not change, and this results in the firm's level of production more than doubling, a firm is operating:
Answer: (B) on the downward-sloping portion of its long-run average total cost curve.
Explanation:
The downward-sloping portion of a company's Long Run Average Total Cost(LRATC) curve is the part where increasing returns to scale is witnessed.
This is because the costs that are incurred by the company leads to higher proportional output thereby reducing the average cost and pulling the LRATC down.
In this scenario, the inputs doubled and the firm's level of production more than doubled which means that with outputs increasing more than costs, the Average cost is reducing and the slope is downward sloping.
Suppose the following data were taken from the 2017 and 2016 financial statements of American Eagle Outfitters. (All numbers, including share data, are in thousands.)
2017 2016
Current assets $ 890,400 $999,600
Total assets 1,950,000 1,878,000
Current liabilities 424,000 357,000
Total liabilities 573,300 552,132
Net income 166,830 337,600
Net cash provided by operating activities 300,000 452,600
Capital expenditures 271,000 246,500
Dividends paid on common stock 85,000 76,500
Weighted-average shares outstanding 201,000 211,000
a. Calculate the current ratio for each year. (Round answers to 2 decimal places, e.g. 15.25.)
2017 2016
Current ratio
b. Calculate earnings per share for each year. (Round answers to 2 decimal places, e.g. 15.25.)
2017 2016
Earnings per share $
c. Calculate the debt to assets ratio for each year. (Round answers to 1 decimal place, e.g. 29.5%)
2017 2016
Debt to assets ratio
d. Calculate the free cash flow for each year. (Enter negative amounts using either a negative sign preceding the number e.g.-45 or parentheses e.g. (45).)
2017 2016
Free cash flow
Answer:
Please see below
Explanation:
a. Current ratio
= Total current asset / Total current liabilities
2017
Current asset. 890,400
Current liabilities 424,000
Current ratio = 890,400/424,000
= 2.1
2016 Current ratio
Current asset. 999,600
Current liabilities 357,000
Current ratio = 999,600/357,000
= 2.8
b. Earnings per share
= (Net income - Preference dividend) / Weighted average number of shares outstanding
2017
Net income. 166,830
Weighted Average number of shares outstanding 201,000
Earnings per share = $166,830/201,000
= $0.83
2016 Earnings per share
Net income $337,600
Weighted Average number of shares outstanding 211,000
Earnings per share = $337,600/211,000
= $1.6
c. Debt to asset ratio
= Total liabilities / Total assets
2017
Total liabilities 573,300
Total assets 1,950,000
= 573,300/1,950,000
= 0.29
2016 Debt to asset ratio
Total liabilities 552,132
Total assets 1,878,000
Debt to asset ratio = 552,132/1,878,000
= 0.29
d. Free cash flow
2017
Cash flow from operating activities 300,000
Less: capital expenditure (271,000)
Free cash flow 29,000
2016 free Cash flow from operating activities
Free cash flow 452,600
Less: capital expenditure (246,500)
Free cash flow. 206,100
Modern Movables Corporation is a Virginia-based manufacturer of furniture. In a recent quarter, it reported the following activities:
Net income $4,435
Purchase of equipment 901
Borrowings under line of credit (bank) 1,447
Proceeds from issuance of common stock 14
Cash received from customers 29,464
Payments to reduce notes payable (long-term) 49
Sale of investments 137
Proceeds from sale of equipment 6,894
Dividends paid 280
Interest paid 93
Required:
Based on this information, present the cash flows from investing and financing activities sections of the cash flow statement. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Modern Movables Corporation
Statement of cash flows
Cash flows from investing activities:
Proceeds from sale of equipment $6,894
Purchase of equipment ($901)
Sale of investments $137
Net cash from investing activities $6,130
Cash flows from financing activities:
Proceeds from issuance of common stock $14
Borrowings under line of credit (bank) $1,447
Payments to reduce notes payable ($49 )
Dividends paid ($280 )
Net cash from financing activities $1,132
TeleGlobal is an American firm producing TV sets. TeleGlobal imports TV set components from Taiwan and assemb them domestically. Suppose that in the United States, a TV set sells for $500 and that 80% of the TV set's value comes from the value of the imported components. The United States imposes a 30% tariff on TV sets and a 10% tariff on the TV set's components. Assume that costs of producing components are the same in the United States a Taiwan. Based on the information provided, the effective rate of protection that TeleGlobal receives from the tariff is:__________.
a. -17.5%
b. 70.0%
c. 110.0%
d. 24.4%
e. 47.5%
Answer:
The right choice is Option c (110.0%).
Explanation:
⇒ [tex]Effective \ rate \ of \ protection = tariff \ rate \ on \ imported \ finished \ good + price \ of \ Component\times \frac{(tariff \ on \ imported \ good- tariff \ on \ imported \ component)}{(Price \ of \ finished \ good - Price \ of \ components)}[/tex]
On estimating the values, we get
⇒ = [tex]30 \ percent + (80 \ percent\times 500)\times \frac{(30 \ percent - 10 \ percent)}{500-80 \ percent\times 500}[/tex]
⇒ = [tex]110 \ percent[/tex]
Note: percent = %
One year ago, Tyler Stasney founded Swift Classified Ads. Stasney remembers that you took an accounting course while in college and comes to you for advice. He wishes to know how much net income his business earned during the past year in order to decide whether to keep the company going. His accounting records consist of the T-accounts from his ledger, which were prepared by an accountant who moved to another city. The ledger at December 31 follows. The accounts have not been adjusted. Stasney indicates that at year-end, customers owe him $1,600 for accrued service revenue. These revenues have not been recorded. During the year, Stasney collected $4,000 service revenue in advance from customers, but he earned only $900 of that amount. Rent expense for the year was $2,400, and he used up $1,700 of the supplies. Stasney determines that depreciation on his equipment was $5,000 for the year. At December 31, he owes his employee $1,200 accrued salary.
Answer:
net income = $33,900
Explanation:
The T-accounts are missing, so I looked for a similar question:
Stasney indicates that at year-end, customers owe him $1,600 for accrued service revenue. These revenues have not been recorded.
Dr Accounts receivable 1,600
Cr Service revenue 1,600
During the year, Stasney collected $4,000 service revenue in advance from customers, but he earned only $900 of that amount.
Dr Unearned revenue 900
Cr Service revenue 900
Rent expense for the year was $2,400, and he used up $1,700 of the supplies.
Dr Rent expense 2,400
Cr Prepaid rent 2,400
Dr Supplies expense 1,700
Cr Supplies 1,700
Stasney determines that depreciation on his equipment was $5,000 for the year.
Dr Depreciation expense 5,000
Cr Accumulated depreciation 5,000
At December 31, he owes his employee $1,200 accrued salary.
Dr Wages expense 1,200
Cr Wages payable 1,200
Total expense for the year = $17,000 (paid wages) + $1,200 (accrued wages) + $800 (utilities) + $2,400 (rent) + $1,700 (supplies) + $5,000 (depreciation) = $28,100
total revenues = $59,500 (previously recorded) + $1,600 (unrecorded service revenue) + $900 (accrued service revenue) = $62,000
net income = $62,000 - $28,100 = $33,900
Suppose you receive at the end of each year for the next three years. a. If the interest rate is , what is the present value of these cash flows? b. What is the future value in three years of the present value you computed in (a)? c. Suppose you deposit the cash flows in a bank account that pays interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?
Answer:
the question is missing the numbers, so I looked for a similar question:
Suppose you receive $100 at the end of each year for the next three years. a. If the interest rate is 8%, what is the present value of these cash flows? (Answer: $257) b. What is the future value in three years of the present value you computed in (a)? (Answer: $324.61) c. Suppose you deposit the cash flows in a bank account that pays 8% interest per year. What is the balance in the account at the end of each of the next three years (after your deposit is made)? How does the final bank balance compare with your answer in (b)?
a) PV = $100/1.08 + $100/1.08² + $100/1.08³ = $257.71
b) FV = $257.71 x (1 + 8%)³ = $324.64
c) FV = ($100 x 1.08²) + ($100 x 1.08) + $100 = $324.64
it is exactly the same as the answer for (b)
Deferred tax liability $ 355,000 $ 463,000 The income statement reported tax expense for Year 2 in the amount of $580,000. Required: 1. What was the amount of income taxes payable for Year 2
Answer: $472,000
Explanation:
Deferred Tax Liability arises as a result of the different accounting methods used by Companies and by the Government for taxation.
Deferred tax liabilities are taxes that are owed to the Government due to the company using the Accrual system but as the Government uses the Cash basis, they have not yet recognised this tax.
The Tax Payable in Year 2 is;
= Reported Tax Expense - increase in Deferred Tax liability
= 580,000 - (463,000 - 355,000)
= $472,000
The technique used to conclude about the population on the basis of a sample is called
Stylon Co., a women’s clothing store, purchased $70,300 of merchandise from a supplier on account, terms FOB destination, 2/10, n/30, using the net method under a perpetual inventory system. Stylon returned merchandise with an invoice amount of $9,000, receiving a credit memo.
Required:
Journalize Stylon’s entries to record:
a. The purchase
b. The merchandise return
c. The payment within the discount period of 10 days
d. The payment beyond the discount period of 10 days.
Answer:
a. Dr Inventory 68,894
Cr Accounts Payable 68,894
b.Dr Accounts Payable 8,820
Cr Inventory 8,820
c. Dr Accounts payable 60,074
Cr cash 60,074
d.
d1. Dr Inventory 1,201
Cr Accounts payable 1,201
d2. Dr Accounts payable 58,872
Cr Cash 58,872
Explanation:
Preparation of Journal entries
a. The purchase Journal entry
Dr Inventory 68,894
Cr Accounts Payable 68,894
[70,300(1-.02)]
[To record inventory net of discount if payment made within discount period amounting to 2% recorded]
b.The merchandise return Journal entry
Dr Accounts Payable 8,820
Cr Inventory 8,820
[9,000(1-.02)]
c. Journal entry to record the Payment within the discount period of 10 days
Dr Accounts payable 60,074
Cr cash 60,074
(68,894-8,820 = 60,074)
[To record payment to accounts payable due made within discount period]
d. Journal entry to record the payment that was made beyond the discount period of 10 days.
d1. Dr Inventory 1,201
Cr Accounts payable 1,201
[To record discount forfeited ]
d2. Dr Accounts payable 58,872
Cr Cash 58,872
Calculation for Net amount due for payment =68,894-8,820 = 60,074)
Gross amount = 60,074/(1-.02) = 58,872
Calculation for Discount forfeited
Discount forfeited= Gross amount *discount %
Discount forfeited= 60,074 *2%
Discount forfeited = 1,201
Kingbird Windows manufactures and sells custom storm windows for three-season porches. Kingbird also provides installation service for the windows The installation process does not involve changes in the windows, so this service can be performed by other vendors. Kingbird enters into the following contract on July 1, 2017, with a local homeowner.
The customer purchases windows for a price of $2,470 and chooses Kingbird to do the installation. Kingbird charges the same price for the windows irrespective of whether it does the installation or not. The installation service is estimated to have a standalone selling price of $580. The customer pays Kingbird $1,940 (which equals the standalone selling price of the windows, which have a cost of $1,050) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2017, Kingbird completes installation on October 15, 2017, and the customer pays the balance due.
Prepare the journal entries for Kingbird in 2017.
Answer:
Kingbird Windows
July 1, 2017:
Debit Cash Account $1,940
Credit Unearned Sales Revenue $1,940
To record the receipt of cash from customer.
Sept. 1, 2017:
Debit Unearned Sales Revenue $1,940
Credit Sales Revenue $1,940
To record the sale of windows.
Debit Inventory $1,050
Credit Cost of Goods Sold $1,050
To record the cost of goods sold.
Oct. 15, 2017:
Debit Cash Account $530
Credit Service Revenue $530
To record the service revenue earned for installation of windows.
Explanation:
The data state that Kingbird Window's selling price is equal to $1,940, which its customer pays in advance of performance. Therefore, this amount is taken as the sales revenue. The stand-alone price of installation is estimated to be $580, but only $530 is recorded as revenue for the installation since the difference had been captured under the actual costs.
On August 20th, one of your employees comes to you with a vacation request. The employee’s available vacation time expires on September 1st, however she wants to take her vacation between September 20th through the 25th.
She asks you to submit her vacation request to the corporate office for the week prior to September 1st, and wants you to not schedule her for the days between the 20th and 25th, and she wants her "vacation" pay for those days.
Would you do it? Why? or Why Not?
Answer:
No
Explanation:
Her vacation is expired and therefore invalid. Also she is requesting for a pay during this period which counters Amy form of sympathy for this employee. However, depending on the relationship the employee has with her employer, there might be a compromise especially if the employee really does need the vacation as she may be burned out or may have postponed vacation till expiration for the interest of the company
Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced 's suppliers to lower the prices that will pay when it replaces its inventory. It is now December 31, , and the net realizable value of 's ending inventory is below what the company actually paid for the goods, which was . Before any adjustments at the end of the period, the Cost of Goods Sold account has a balance of . Read the requirementsLOADING.... Requirement a. What accounting action should take in this situation? should apply the ▼ average-cost method first in, first out method last in, first out method lower-of-cost-or-market rule to account for inventories. The net realizable value of ending inventory is ▼ equal to less than more than 's actual cost, so must write the inventory ▼ down up to net realizable value.
Answer:
the numbers are missing, so i looked for a similar question to fill in the blanks:
Trade Mart has recently had lackluster sales. The rate of inventory turnover has? dropped, and the merchandise is gathering dust. At the same time, competition has forced Trade Mart's suppliers to lower the prices that Trade Mart will pay when it replaces its inventory. It is now December 31, 2016, and the current replacement cost Trade Mart's ending inventory is $75,000 below what Trade Mart actually paid for the goods, which was $200,000.
Before any adjustments at the end of the? period, the Cost of Goods Sold account has a balance of $$820,000.
a. What accounting action should take in this situation?
lower-of-cost-or-market rule to account for inventories.the adjustment entry should be:
Dr Cost of goods sold 75,000
Cr Inventory 75,000
b. The net realizable value of ending inventory is?
equal to actual cost, so must write down inventory to match net realizable valueEnding inventory = $200,000 - $75,000 = $125,000
You have the following rates of return for a risky portfolio for several recent years. Assume that the stock pays no dividends. Year Beginning of Year Price # of Shares Bought or Sold 2011 $50.00 100 Bought 2012 $55.00 50 Bought 2013 $51.00 75 Sold 2014 $54.00 75 Sold What is the geometric average return for the period?
Answer:
The geometric average return for the period 2.60%.
Explanation:
Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.
Also note: See the attached excel file for the calculation of the return for each year.
In the attached excel file, return is calculated using the following formula:
Return = (Current year price - Previous year price) / Previous year price
The formula for calculating the geometric average return is given as follows:
Geometric average return = [(1 + R1)(1 + R2)(1 + R3)...(1 + Rn)]^(1/n) – 1 ……….. (1)
Where;
Ri = Return over the years I, where i = 1, 2, 3, …. n
n = number of years = 3
R1 = 2012 return = 0.10
R2 = 2013 return = -0.0727272727272727
R3 = 0.0588235294117647
Substituting the values into equation (1), we have:
Geometric average return = ((1 + 0.10)(1 - 0.0727272727272727)(1 + 0.0588235294117647))^(1/3) – 1
Geometric average return = (1.10 * 0.927272727272727 * 1.0588235294117647)^(1/3) – 1
Geometric average return = 1.07999999999999^0.333333333333333 - 1
Geometric average return = 1.02598556800602 - 1
Geometric average return = 0.02598556800602 = 0.0260, or 2.60%
Therefore, the geometric average return for the period 2.60%.
Dale takes out a loan of $8,000 with a 15.2% interest rate that is compounded semi-annually.
If he pays off the loan in 3 years, how much will he end up paying?
Round your answer to the nearest cent.
DO NOT round until you have calculated the final answer.
Answer:
$12,415.48
Explanation:
The formula for calculating compound interest is
FV = PV × (1+r)^ n.
For Dale , FV = the amount he will pay?
PV = $8,000
r = 15.2%
n =3 years
Since interest is compounded semi-annually, the applicable r will be 15.2% divided by 2, n will be 3 years x 2
Fv= $8,000 x ( 1 + {15.2 %/ 2}^6
Fv = $8,000 x (1+ 7.6/100) ^ 6
Fv= $8,000 x ( 1.076) ^6
Fv = $8000 x 1.551934858492184
Fv=$12,415.482
Fv= $12,415.48
Dale will end up paying $12,415.48
Answer: 12,415.48
Explanation:
Use the compund interest formula for calculating the future value, A=P(1+rn)n⋅t where A is the unknown future value, P is the principal, so P=$8,000, r is the rate written as a decimal, so r=0.152, n is the number of periods of compounding which is 2 when compounded semi-annually,so n=2, and t is the time in years, so t=3. Substitute the values into the formula.
Use the compound interest formula and substitute the given values: A=$8,000(1+0.1522)2(3). Simplify using the order of operations: A=$8,000(1.076)6=$8,000(1.551935358)≈$12,415.48.
Suppose there is a policy debate over whether the United States should impose trade restrictions on imported ball bearings:________.
Domestic producers of ball bearings send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of ball bearings. The lobbyist claims that the U.S. ball-bearing industry is new and cannot currently compete with foreign firms. However, if trade restrictions were temporarily imposed on ball bearings, the domestic ball-bearing industry could mature and adjust and would eventually be able to compete in the world market.
Which of the following justifications is the lobbyist using to argue for the trade restriction on ball bearings?
A. Infant-industry argument
B. Saving-domestic-jobs argument
C. Using-protection-as-a-bargaining-chip argument
D. National-security argument
E. Unfair-competition argument
Answer:
A)Infant-industry argument
Explanation:
We are informed about a Supposed policy debate over whether the United States should impose trade restrictions on imported ball bearings. Whereby
Domestic producers of ball bearings send a lobbyist to the U.S. government to request that the government impose trade restrictions on imports of ball bearings.
In the case whereby, The lobbyist claims that the U.S. ball-bearing industry is new and cannot currently compete with foreign firms, the justifications the lobbyist was using to argue for the trade restriction on ball bearings is Infant-industry argument.
Infant-industry argument can be regarded as an economic rationale that provides protection for new industries that are yet to reach a certain economic scale like the existing industries, this theory offer protection to this new/developing industry from some form pressure as well as their products that can emerge from compitition from other mature industries.
A workplace is where people
Answer:A workplace is a place where people work
Explanation:I know this because when you got to any office or something there are people working there and people do not call it the office the call it there work place
Daryl Kirby opened Squid Realty Co. on January 1, 2015. At the end of the first year, the business needed additional capital. On behalf of Squid Realty Co., Daryl applied to Ocean National Bank for a loan of $375,000. Based on Squid Realty Co.'s financial statements, which had been prepared on a cash basis, the Ocean National Bank loan officer rejected loan as too risky. After receiving the rejecting notice, Daryl instructed his accountant to prepare the financial statement on an accrual basis. These statements included $65,000 in accounts receivable and $85,000 in accounts payable. Daryl then instructed his accountant to record an additional $30,000 of accounts receivable for commissions on property for which a contract had been signed on December 28, 2015. The title to the property is to transfer on January 5, 2016, when an attorney formally records the transfer of the property to the buyer. Daryl then applied for a $375,000 loan from Free Spirit Bank, using the revised financial statements. On this application, Daryl indicated that he had not previously been rejected for credit.
Required:
Discuss the ethical and professional conduct of Daryl Kirby in applying for the loan from Free Spirit Bank.
Answer:
There are issues with Revenue recognition, Accrual basis of accounting and Cash basis of accounting.
Explanation:
The ethical issues are important to handle with care in business. The accountant has used accrual basis accounting technique in order to apply for a loan. The revised financial statements are prepared with accrual concept so that the company is successful in procuring loan. The revenue should be recognized when performance obligation is completed and the required services are rendered. The accrual concept states that the transaction should be recorded when it occurs regardless when the cash is actually received. Daryl has been involved in unethical practice as he has instructed his accountant to prepare revised financial statements to portray that the company's performance is good. It is an intention to deceive bank in order to procure loan.