Answer:
the amount of the joint cost allocated is $76,712.32
Explanation:
The computation of the amount of the joint cost allocated is shown below"
= Processing cost × beta units ÷ (alpha units + beta units)
= $200,000 × 5,600 units ÷ (9,000 units + 5,600 units)
= $76,712.32
Hence, the amount of the joint cost allocated is $76,712.32
Exercise 7-9 Percent of receivables method LO P3 a. Estimate the balance of the Allowance for Doubtful Accounts assuming the company uses 6% of total accounts receivable to estimate uncollectibles, instead of the aging of receivables method. b. Prepare the adjusting entry to record Bad Debts Expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $12,300 credit. c. Prepare the adjusting entry to record bad debts expense using the estimate from part a. Assume the unadjusted balance in the Allowance for Doubtful Accounts is a $1,300 debit.
Question Completion:
Assume that the Accounts Receivable balance is $570,000.
Answer:
a. The balance of the Allowance for Doubtful Accounts = $34,200.
b. Adjusting Entry to record Bad Debts Expense:
Debit Bad Debts Expense $21,900
Credit Allowance for Doubtful Accounts $21,900
To record bad debts expense and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $34,200 ($21,900 +$12,300).
c. Adjusting Entry to record Bad Debts Expense:
Debit Bad Debts Expense $35,500
Credit Allowance for Doubtful Accounts $35,500
To record bad debts expense and bring the balance of the Allowance for Doubtful Accounts to a credit balance of $34,200 ($35,500 - $1,300).
Explanation:
a) Data and Calculations:
Accounts receivable balance = $570,000
Allowance for Doubtful Accounts = $34,200 ($570,000 * 6%)
Unadjusted balance in the Allowance for Doubtful Accounts = $12,300 credit
Bad Debts Expense = $21,900 ($34,200 - $12,300)
Unadjusted balance in the Allowance for Doubtful Accounts = $1,200 debit
Bad Debts Expense = $35,500 ($34,200 + $1,300)
Money serves three functions in the economy: medium of exchange, unit of account, and store of value.
For each of the following statements about inflation, indicate which function of money inflation is hindering.
Statement Store of value Unit of account Medium of exchange
Inflation erodes money's purchasing power.
Inflation causes menu costs.
In some countries with hyperinflation, prices are posted in terms of U.S. dollars rather than the local currency, even though the local currency is still used to purchase the good.
Answer:
medium of exchange
store of value
unit of account
Explanation:
Money is a valuable commodity and a medium of exchange. Modern economies use flat money that is not a community nor backed by the economy.
What do you mean by money as a medium of exchange?Money is a medium of exchange; allows people to get what they need to live. Trade was one of the exchanges of goods before money was created.
Like gold and other precious metals, money is a valuable commodity because to many people it represents something valuable.
About inflation, it leads the rise in prices and services and is a reason of the production of goods and services also gets affected in the economy.
Hence, Inflation affects the flow of money in the economy by reducing the purchasing power of clients.
To learn more about money as medium of exchange, refer:
https://brainly.com/question/25965295
Synder Company uses a standard cost system for its production process and applies overhead based on direct labor hours. The following information is available for May when Synder produced 4,500 units: Standard: DLH per unit 2.50 Variable overhead per DLH $1.75 Fixed overhead per DLH $3.10 Budgeted variable overhead $21,875 Budgeted fixed overhead $38,750 Actual: Direct labor hours 10,000 Variable overhead $26,250 Fixed overhead $38,000 Refer to Synder Company. Using the two-variance approach, what is the noncontrollable variance
Answer:
Fixed overhead volume variance =$3,875 adverse
Explanation:
The non-controllable variance is the fixed overhead volume variance. It is the sum of the fixed overhead efficiency variance and the fixed overhead capacity variance
The efficiency variance is the difference between the standard hours of actual production and the actual hours multiplied by the fixed overhead absorption rate
Capacity variance is the difference budgeted hours and actual hours multiplied by the Fixed overhead absorption rate
Efficiency variance $
4500 units should have taken (4500×2.50) 11,250
but did take 10,000
variance in hours 1250
Standard Fixed overhead absorption rate× $3.10
Efficiency variance 3,875 favorable
capacity variance $
Budgeted hours (38750/3.10) 12,500
Actual hours 10,000
Variance 2,500 adverse
Standard rate × $3.10
Capacity variance 7,750 adverse
Volume variance = 7750 adverse + 3,875 favorable =$3875 adverse
Fixed overhead volume variance =$3,875 adverse
he following information relates to Halloran Co.'s accounts receivable for 2021: Accounts receivable balance, 1/1/2021 $ 840,000 Credit sales for 2021 3,300,000 Accounts receivable written off during 2021 70,000 Collections from customers during 2021 3,100,000 Allowance for uncollectible accounts balance, 12/31/2021 210,000 What amount should Halloran report for accounts receivable, before allowances, at December 31, 2021
Answer:
$970,000
Explanation:
Accounts receivable balance, 1/1/2021 = $840,000
Credit sales for 2021 = $3,300,000
Collections from customers during 2021 = $3,100,000
Accounts receivable written off during 2021 = $70,000
Allowance for uncollectible account balance 12/31/2021 = $210,000
Goran report for accounts receivable before allowances at December 31, 2021 would be;
= Beginning accounts receivables + Credit sales for 2021 - Accounts receivables written off during 2021 - Collections from customers during 2021
= $840,000 + $3,300,000 - $70,000 - $3,100,000
= $970,000
Delisa Corporation has two divisions: Division L and Division Q. Data from the most recent month appear below:Total Company Division L Division QSales $ 541,000 $ 173,000 $ 368,000Variable expenses 323,720 117,640 206,080Contribution margin 217,280 55,360 161,920Traceable fixed expenses 111,910 38,710 73,200Segment margin 105,370 $ 16,650 $ 88,720Common fixed expenses 64,160Net operating income $ 41,210The break-even in sales dollars for Division Q is closest to:
Answer:
$173,000
Explanation:
The point at which a neither a profit or loss is made by a company is known as Break even point.
Break even (Sales dollars)
= Fixed cost / Contribution margin
Given that;
Fixed cost = $38,710
Contribution margin
= $55,360 / $173,000
= 0.32
Therefore,
Break even (Sales dollars)
= $55,360 / 0.32
= $173,000
The break even in sales dollars for Division Q is closest to $173,000
Identify a chart of accounts, using correct headings from the list of account titles below: Account Titles Chart of Accounts Accounts Payable Liabilities Accounts Receivable Assets Building Assets Cash Assets Equipment Assets Insurance Expense Expenses Prepaid Insurance Assets Rent Expense Expenses Service Fees Revenues Dunlop, Capital Owner's Equity Dunlop, Drawing Owner's Equity Supplies Assets Wage Expense Expenses Wages Payable
Answer:
The correct chart of accounts would be:
Assets
Cash
Supplies
Accounts Receivable
Prepaid Insurance
Equipment
Building
Liabilities
Wages Payable
Owners Equity
Capital Owners Equity
Expenses
Rent Expense
Wage Expense
Revenues
Services Fees Revenues
In January, Prahbu purchased a new machine for use in an existing production line of his manufacturing business for $85,000. Assume that the machine is a unit of property and is not a material or supply. Prahbu pays $2,950 to install the machine, and after the machine is installed, he pays $1,600 to perform a critical test on the machine to ensure that it will operate in accordance with quality standards. On November 1, the critical test is complete, and Prahbu places the machine in service on the production line. On December 3, Prahbu pays another $3,900 to perform periodic quality control testing after the machine is placed in service. How much will Prahbu be required to capitalize as the cost of the machine
Answer: $89,550
Explanation:
When capitalizing the cost of a fixed asset, all the costs that were associated with acquiring it and setting it up for use are to be capitalized. This includes the cost of purchase, transportation and installation.
Periodic costs are to be expensed.
Cost to be capitalized:
= Purchase price + Installation price + Cost of critical test (this is needed to find out if the machine is operate appropriately so should be capitalized)
= 85,000 + 2,950 + 1,600
= $89,550
"Your first morning in your new office, you reflect on what type of manager and leader you hope to be. Which of the following best reflects what you believe about employees and how they can best be led? Select an option from the choices below and click Submit. Employees are more loyal and productive if they feel that their leader is admirable, caring, and ethical. Employees’ behavior can be shaped and motivated, not only by rewarding good behavior but also by penalizing bad behavior. Employees need to be discouraged from bad behavior. They work harder when they know that failure has consequences."
Answer:
A. Employees are more loyal and productive if they feel that their leader is admirable, caring, and ethical.
Explanation:
Leadership here has to do with how the manager acts towards the employees. Employees can best be led if the person in the leadership position is one who inspires and motivates them to be their best. The managers ability to put confidence in the employees by effective communication as well as having these characteristics such as being admirable, and ethical would have the employees respecting him and also raising their productivity in the firm.
Island Corporation owes Mutual Bank a 10% note payable for $100,000 plus $8,000 accrued interest. On October 1, 2018, Island and Mutual Bank execute an agreement whereby Island will pay Mutual $128,000 on the due date of the note on October 1, 2020. If the present value interest factor for two years at 10% is .82645, what will be the new note receivable balance for Mutual Bank
Answer:
$105,785
Explanation:
Calculation to determine what will be the new note receivable balance for Mutual Bank
Using this formula
New note receivable balance=Island payment to mutual*Present value interest factor
Let plug in the formula
New note receivable balance=128,000*.82645
New note receivable balance=$105,785
Therefore what will be the new note receivable balance for Mutual Bank is $105,785
REQUIRED: Prepare a detailed balance sheet. Listed below is a list of accounts and their respective balances for the Maximum Company: ADVERTISING EXPENSE $ 100,000 INSURANCE EXPENSE $ 100,000 OPERATING EXPENSES- OTHER $ 75,000 PURCHASES $ 50,000 REVENUES $ 1,000,000 SALARIES AND WAGES $250,000 Other Information: Inventory at the beginning of the year was $ 50,000 and at the end of the year was $ 40,000. Accrued wages of $ 5,000 have not been included in the above balances. Payroll taxes are 25% of Salaries and Wages. Total Fixed Assets equal $ 3,000,000 which breaks down as follows: Land- $750,000; Building and Equipment- $2,000,000; and Furniture- $250,000. For depreciation purposes, the XYZ Company uses the straight-line method. The depreciable assets have a useful life of 10 years and no residual value. XYZ has a long-term note of $ 1,000,000 and pays an interest rate of 10%. Rent is calculated as 1% of gross profit plus $500 per month. The XYZ pays income taxes at a rate of 25%. REQUIRED Prepare a detailed income statement.
Answer:
Maximum Company
Income Statement
Revenue $ 1,000,000
Less Cost of Sales
Beginning Inventory $ 50,000
Purchases $ 50,000
Less Ending Inventory ($40,000) ($60,000)
Gross Profit $940,000
Less Expenses
Salaries and Wages ($250,000 + $5,000) $255,000
Advertising expenses $100,000
Insurance expenses $100,000
Other Operating expenses $75,000
Depreciation $225,000
Interest expense $100,000
Rent expense $9,900
Payroll taxes $63,750 ($898,650)
Net Income before tax $41,350
Income tax expense ($10,338)
Net Income after tax $31,012
Explanation:
Depreciation expense :
Depreciation expense = (Cost - Salvage Value) ÷ Estimated Useful Life
therefore,
Depreciation expense = ($2,250,000) ÷ 10 = $225,000
Note :Land is not a depreciable asset
Interest expense :
Interest expense = $1,000,000 x 10% = $100,000
Rent expense :
Use the cost formula provided.
Rent expense = Gross profit x 1 % + $500
= $940,000 x 1 % + $500
= $9,900
A company purchased equipment valued at $190,000. It traded in old equipment for a $108,000 trade-in allowance and the company paid $82,000 cash with the trade-in. The old equipment cost $170,000 and had accumulated depreciation of $68,000. This transaction has commercial substance. What is the recorded value of the new equipment
Answer: $190,000
Explanation:
The recorded value of the new equipment will be the summation of the trade in allowance and the cash that was paid. This will be:
= $108,000 + $82,000
= $190,000
Troy Engines, Ltd., manufactures a variety of engines for use in heavy equipment. The company has always produced all of the necessary parts for its engines, including all of the carburetors. An outside supplier has offered to sell one type of carburetor to Troy Engines, Ltd., for a cost of $36 per unit. To evaluate this offer, Troy Engines, Ltd., has gathered the following information relating to its own cost of producing the carburetor internally:
Per Unit 15,000 Units Per Year
Direct materials $9 $135,000
Direct labor 11 165,000
Variable manufacturing overhead 2 30,000
Fixed manufacturing overhead, traceable 6* 90,000
Fixed manufacturing overhead, allocated 13 195,000
Total cost $41 $615,000
Required:
a. Assuming that the company has no alternative use for the facilities that are now being used to produce the carburetors, compute the total cost of making and buying the parts.
b. Should the outside supplier's offer be accepted?
c. Suppose that if the carburetors were purchased, Troy Engines, Ltd., could use the freed capacity to launch a new product. The segment margin of the new product would be $105,000 per year. Compute the total cost of making and buying the parts.
d. Should Troy Engines, Ltd., accept the offer to buy the carburetors for $31 per unit?
Victory Company uses weighted-average process costing to account for its production costs. Conversion cost is added evenly throughout the process. Direct materials are added at the beginning of the first process. During November, the first process transferred 800,000 units of product to the second process. Additional information for the first process follows. At the end of November, work in process inventory consists of 185,000 units that are 50% complete with respect to conversion. Beginning work in process inventory had $384,150 of direct materials and $133,875 of conversion cost. The direct material cost added in November is $2,570,850, and the conversion cost added is $2,543,625. Beginning work in process consisted of 67,000 units that were 100% complete with respect to direct materials and 80% complete with respect to conversion. Of the units completed, 67,000 were from beginning work in process and 733,000 units were started and completed during the period. Required: For the first process: 1. Determine the equivalent units of production with respect to direct materials and conversion.
Answer:
Victory Company
Materials Conversion
Equivalent units 985,000 892,500
Explanation:
a) Data and Calculations:
Materials Conversion
Units transferred out 800,000 800,000
Ending WIP 185,000 92,500 (185,000 * 50%)
Equivalent units 985,000 892,500
Costs of production:
Materials Conversion
Beginning WIP $384,150 $133,875
Added in November 2,570,850 2,543,625
Total costs $2,955,000 $2,677,500
Cost per equivalent units:
Total costs $2,955,000 $2,677,500
Equivalent units 985,000 892,500
Cost per equivalent unit $3.00 $3.00
Park Co. holds a 80% interest in San Marino Co. During 2019, San Marino sold inventory costing $1,155,000 to Park for $1,650,000. A total of $600,000 of this inventory was not sold to outsiders until 2020. During 2020, San Marino sold inventory costing $1,080,000 to Park for $1,800,000. A total of $750,000 of this inventory was not sold to outsiders until 2021. In 2020, Park reported a net income of $2,250,000 while San Marino reported $1,350,000. What is the noncontrolling interest in the 2020 income of the subsidiary
Answer:
Park Co and San Marino Co.
The noncontrolling interest in the 2020 income of the subsidiary is:
= $270,000.
Explanation:
a) Data and Calculation:
Interest in San Marino Co. = 80%
Cost of 2020 Inventory sold by San Marino to Park = $1,080,000
Sales value of the inventory = $1,800,000
Profit element = $720,000 ($1,800,000 - $1,080,000)
Sales value of unsold inventory = $750,000
Profit element in unsold inventory = $750,00/$1,800,000 * $720,000
= $300,000
Net income of San Marino for 2020 = $1,350,000
Less profit element in unsold inventory 300,000
Adjusted net income = $1,050,000
Non-controlling interest (20%) 210,000 (20% of $1,050,000)
Non-controlling interest (20%) in
unsold inventory = 60,000
Total net income attributable to
Non-controlling interest $270,000
(which is equal to 20% of the subsidiary's net income)
Jupiter Satellite Corporation earned $29 million for the fiscal year ending yesterday. The firm also paid out 30 percent of its earnings as dividends yesterday. The firm will continue to pay out 30 percent of its earnings as annual, end-of-year dividends. The remaining 70 percent of earnings is retained by the company for use in projects. The company has 2.6 million shares of common stock outstanding. The current stock price is $105. The historical return on equity (ROE) of 11 percent is expected to continue in the future. What is the required rate of return on the stock
Answer:
11.13%
Explanation:
Calculation to determine the required rate of return on the stock
Using this formula
Required rate of return=Last EPS*Payout*(1+RoE*(1-payout rate))/Current Price+RoE*(1-payout rate)
Let plug in the formula
Required rate of return=29/2.6*30%*(1+11%*(1-30%))/105+11%*(1-30%)
Required rate of return=11.13%
Therefore the required rate of return on the stock will be 11.13%
Prob(Total time in process > t) = EXP(-t/T) T = (1/(Rp - Ri)) = (1 / Rs) R = min(Ri, Rp) u=R/Rp Dominic runs an appliance repair shop and sells replacement parts for appliances to walk in customers. Customer take an average of 5 minutes. It is a single phase system with 1 server. The coefficient of arrivals and the coefficient of processing times is 1.0. If Dominic's utilization were 80%, how many would be standing in line waiting to be served?
Answer:
3.20 customers
Explanation:
If one customer takes 5 minutes then in 1 hour =
60/5 = 12 minutes
This is the service rate
Utilization = arrival rate divided by service rate
0.80 = AR / 12
AR = 0.89x12
Arrival rate = 9.6/hour
We get average of those waiting in system
AR/SR-AR
= 9.6/(12-9.6)
9.6/2.4
= 4
4 x 0.80 = 3.2 this is the average of those waiting in line
Management of Wee Ones (WO), an operator of day-care facilities, wants the company's profit to be subdivided by center. The firm's accountant has provided the following data: Center Budgeted Revenue Actual Revenue Budgeted Direct Costs Actual Direct Costs Downtown $ 320,000 $ 340,200 $ 300,000 $ 300,000 Irvine 560,000 534,600 510,000 440,000 H. Beach 720,000 745,200 690,000 740,000 Totals $ 1,600,000 $ 1,620,000 $ 1,500,000 $ 1,480,000 WO's advertising, which is handled by the home office, is not reflected in the preceding figures and amounted to $60,000. Assume that management used the allocation base that is most influenced by advertising effort and consistent with sound managerial accounting practices. How much advertising would be allocated to the Irvine center
Answer: $19,800
Explanation:
Actual Revenue would be the most appropriate base to use because it is the most influenced by advertising effort and sound managerial practices.
Total actual revenue from all centers is $1,620,000.
Actual revenue for Irvine center is $534,600.
Advertising expenses to Irvine would be:
= Advertising cost * Actual revenue for Irvine / Total actual revenue for all centers
= 60,000 * 534,600 / 1,620,000
= $19,800
Which diagram arranges the types of business organizations from the most
owners to the fewest owners?
Corporation —> Partnership—> Sole proprietorship
Heavenly Pastries, Inc. Heavenly Pastries, Inc. was founded in 1998 by Gary Houser in Boston, Massachusetts. Over the years, Heavenly Pastries grew from a small neighborhood shop to a national brand. In 2015 Heavenly Pastries went public. At the time of the public offering, there were 100 stores across the country, employing almost 1,000 employees. Over the next three years, Heavenly Pastries doubled the number of stores and employees. Corporate headquarters, still located in Boston, realized that the accounting information system needed to be upgraded. In May, 2019, the Information Technology Division (IT) was charged with upgrading the payroll software.
The Division consists of two departments, Development and Operations. The Development Department is responsible for the coding and testing of the payroll software; the Operations Department is responsible for the operation and maintenance of the new payroll software. Steven Miller is the IT Division manager. Since he supervises both departments, Steve has global access to all aspects of the payroll software, including employee additions, pay rate changes, and employee benefits changes. Steven Miller has been with Heavenly Pastries for just over one year.
Gary Houser Heavenly Pastries- Information Technology Division
He has been struggling with a gambling addiction for the past five years and has run up considerable debts. Subsequent to turning control of the new payroll software over to the Payroll Department, and before the first payroll was run using the new system. Sarah Cutter, the payroll supervisor, is responsible for updating the new payroll system, inputting employee data (names, Social Security numbers, tax and benefit information) and pay rates. Discuss means more than one or two sentences.
1. The fraud triangle lists three conditions that are usually present when fraud occurs. Discuss the three conditions and if they are present. For each condition, provide examples from the case.
2. List the red flags present that suggest the possibility of frauds and what type of frauds do these red flags suggest?
3. How would the fraud impact the financial statements?
4. Discuss the procedures you would use to detect this fraud.
5. Lastly, discuss the procedures that should be implemented to prevent this fraud.
Answer:
1. Three pre requisite of fraud are:
Dishonesty, Opportunity, Motivation.
2. The red flags include,
Gambling habit of Steven Miller.
Global access of payroll software to a single employee.
Lack of segregation of duties.
3. The fraud will deteriorate financial statements and investors will not rely on the company's financial statements.
4. There should be audit of the financial statements, there can be recheck of the data by another employee which is entered into the payroll system, Sarah and Steven work should be segregated with some other employee of different department who rechecks all data of employee and verifies it.
5. There should be segregation of duties, there can be internal controls of the software which may restrict from entering dummy employees, there should be a supervision over Steven since he has gambling background.
Explanation:
There are three pre requisites of fraud which must be present for a fraud. If a fraud occurs in an organization then the reliance of lenders of finance is deteriorated. Steven is an employee who has been with Heavenly pastries for over a year. Since he has a gambling background there might be dishonesty present and he has access to entire payroll system there is an opportunity for fraud. Steven can be motivated for fraud so to avoid such a case Heavenly pastries should segregate duties of Steven with another employee.
Project L costs $45,000, its expected cash inflows are $11,000 per year for 8 years, and its WACC is 8%. What is the project's discounted payback
Answer:
5.155 year
Explanation:
The computation of the projected discounted payback period is shown below:
Year Inflow Present value Present value Cumulative PV
factor at 8%
1 11000 0.926 10186 10186
2 11000 0.857 9427 19613
3 11000 0.794 8734 28347
4 11000 0.735 8085 36432
5 11000 0.681 7491 43923
6 11000 0.631 6941 50864
7 11000 0.583 6413 57277
8 11000 0.540 5940 63217
Now
Discounted payback period is
= 5 year + (45000-43923) ÷ 6941
= 5 year + 0.155
= 5.155 year
A company had stock outstanding as follows during each of its first three years of operations: 2,500 shares of 10%, $100 par, cumulative preferred stock and 50,000 shares of $10 par common stock. The amounts distributed as dividends follow. Determine the total and per-share dividends for each class of stock for each year by completing the schedule. Preferred Common Year Dividends Total Per Share Total Per Share1 $10,000 2 25,000 3 60,000
Answer:
See the attached photo for the completed the schedule.
Explanation:
Note: See the attached photo for the completed the schedule.
In the attach excel file, the following formulae and calculations are used:
Peferred stock dividend per share = Total cumulative preferred stock dividend paid in a year / Number of cumulative preferred shares
Common stock dividend per share = Total common stock dividend paid in a year / Number of common shares
Total cumulative preferred stock dividend = Number of cumulative preferred stock * Par value * Dividend rate = 2,500 * $100 * 10% = 2,500 * $100 * 10% = $25,000
Outstanding cumulative preferred stock dividend in Year 1 = Total cumulative preferred stock dividend - Total cumulative preferred stock dividend paid in Year 1 = $25,000 - $10,000 = $15,000
Outstanding cumulative preferred stock dividend in Year 2 = Outstanding cumulative preferred stock dividend in Year 1 = $15,000
Total cumulative preferred stock dividend paid in Year 3 = Total cumulative preferred stock dividend + Outstanding cumulative preferred stock dividend in Year 2 = $25,000 + $15,000 = $40,000
Total common stock dividend paid in Year 3 = Dividend distributed in Year 3 - Total cumulative preferred stock dividend paid in Year 3 = $60,000 - $40,000 = $20,000
At the beginning of the current season on April 1, the ledger of Sandhill Pro Shop showed Cash $2,950; Inventory $3,500; and Common Stock $3,450. The following transactions were completed during April 2022.
Apr. 5 Purchased golf bags, clubs, and balls on account from Arnie Co. $2,500, terms 2/10, n/60.
7 Paid freight on Arnie purchase $80.
9 Received credit from Arnie Co. for merchandise returned $700.
10 Sold merchandise on account to members $1,340, terms n/30. The
merchandise sold had a cost of $920.
12 Purchased golf shoes, sweaters, and other accessories on account from
Woods Sportswear $1,050, terms 2/10, n/30. 14 Paid Arnie Co. in full.
17 Received credit from Woods Sportswear for merchandise returned $50.
20 Made sales on account to members $910, terms n/30. The cost of the
merchandise sold was $550.
21 Paid Woods Sportswear in full.
27 Granted an allowance to members for clothing that did not fit properly $70.
30 Received payments on account from members $1,400.
Journalize the April transactions using a perpetual inventory system.
Answer:
Sandhill Pro Shop
Journal Entries:
Apr. 5: Debit Inventory $2,500
Credit Accounts Payable (Arnie Co.) $2,500
To record the purchase of goods on account, terms 2/10, n/60.
Apr. 7: Debit Freight-in $80
Credit Cash $80
To record the payment for freight on goods.
Apr. 9: Debit Accounts Payable (Arnie Co.) $700
Credit Inventory $700
To record the return of goods on account.
Apr. 10: Debit Accounts Receivable $1,340
Credit Sales Revenue $1,340
To record the sale of goods on account, terms n/30.
Debit Cost of goods sold $920
Credit Inventory $920
To record the cost of goods sold.
Apr. 12: Debit Inventory $1,050
Credit Accounts Payable (Woods Sportswear) $1,050
To record the purchase of goods on account, terms 2/10, n/30.
Apr. 14: Debit Accounts Payable (Arnie Co.) $1,800
Credit Cash $1,764
Credit Cash Discounts $36
To record the full settlement on account.
Apr. 17: Debit Accounts Payable (Woods Sportswear) $50
Credit Inventory $50
To record the return of goods on account.
Apr. 20: Debit Accounts Receivable (Members) $910
Credit Sales Revenue $910, terms n/30.
To record the sale of goods to members.
Debit Cost of goods sold $550
Credit Inventory $550
To record the cost of goods sold.
Apr. 21: Debit Accounts Payable (Woods Sportswear) $1,000
Credit Cash $980
Credit Cash Discounts $20
To record full settlement on account.
Apr. 27: Debit Sales Allowances $70
Credit Accounts Receivable (Members) $70
To record the sales allowances granted members for improperly fit clothing.
Apr. 30: Debit Cash $1,400
Credit Accounts Receivable (Members) $1,400
To record the receipt of cash from members on account.
Explanation:
a) Data and Analysis:
Apr. 5: Inventory $2,500 Accounts Payable (Arnie Co.) $2,500, terms 2/10, n/60.
Apr. 7: Freight-in $80 Cash $80
Apr. 9: Accounts Payable (Arnie Co.) $700 Inventory $700
Apr. 10: Accounts Receivable $1,340 Sales Revenue $1,340, terms n/30.
Cost of goods sold $920 Inventory $920
Apr. 12: Inventory $1,050 Accounts Payable (Woods Sportswear) $1,050, terms 2/10, n/30.
Apr. 14: Accounts Payable (Arnie Co.) $1,800 Cash $1,764 Cash Discounts $36
Apr. 17: Accounts Payable (Woods Sportswear) $50 Inventory $50
Apr. 20: Accounts Receivable $910 Sales Revenue $910, terms n/30.
Cost of goods sold $550 Inventory $550
Apr. 21: Accounts Payable (Woods Sportswear) $1,000 Cash $980 Cash Discounts $20
Apr. 27: Sales Allowances $70 Accounts Receivable $70
Apr. 30: Cash $1,400 Accounts Receivable (Members) $1,400
Ajax is reviewing its previous 100% acquisition of Baxter to determine if there is goodwill impairment. At December 31, 2020 Ajax has recorded Goodwill of $330,000 on its books relating to this acquisition. At December 31, 2020, Baxter had a book value of net assets of $400,000 (excluding goodwill) and an estimated fair value for the company of $600,000. What is the amount (if any) of the goodwill write-off required to be booked by Ajax at December 31, 2020 under the FASB rules effective in 2020.
Answer:
Baxter
The amount of the Goodwill write-off required to be booked by Ajax at December 31, 2020 under the FASB rules effective in 2020 is:
= $130,000.
Explanation:
a) Data and Calculations:
Recorded Goodwill = $330,000
Book value of net assets = $400,000
Book value of all assets = $730,000 ($400,000 + $330,000)
Estimated fair value of company = $600,000
Goodwill impairment = $130,000 ($730,000 - $600,000)
b) The Goodwill impairment of $130,000 arose when the book value or the carrying amount exceeded the estimated fair value.
Kareem bought a rental house in March 2014 for $300,000, of which $50,000 is allocated to the land and $250,000 to the building. Early in 2016, he had a tennis court bt1ilt in the backyard at a cost of $7,500. Kareem has deducted $30,900 for depreciation on the house and $1,300 for depreciation on the cot1rt. In January 2019, he sells the house and tennis court for $330,000 cash.
a. What is Kareem's realized gain or loss?
b. What is the adjusted basis of the rental house and land at the time of the sale?
c. What is the adjusted basis of the tennis court at the time of the sale?
d. If the buyer takes the property subject to the $80,000 mortgage, rather than assuming it, what is Kareem's realized gain or loss?
Answer: See explanation
Explanation:
a. What is Kareem's realized gain or loss?
Amount realized from sale = $330,000
Less: adjusted basis for house and land = $269000
Less: tennis court adjusted basis = $6200
Realized gain = $54700
b. What is the adjusted basis of the rental house and land at the time of the sale?
Original land basis = $50000
Add: Original house basis = $25000
Less: Depreciation = $30900
Adjusted basis = $269100
c. What is the adjusted basis of the tennis court at the time of the sale?
Tennis court original basis = $7500
Less: Depreciation = $1300
Adjusted basis of the tennis court = $6200
d. If the buyer takes the property subject to the $80,000 mortgage, rather than assuming it, what is Kareem's realized gain or loss?
Amount realized = $330000 + $80000 = $410,000
Less: Adjusted basis for house and land = $269100
Less: Adjusted basis of tennis court = $6200
Realized gain = $134700
lumination Corporation operates one central plant that has two divisions, the Flashlight Division and the Night Light Division. The following data apply to the coming budget year:
Budgeted costs of operating the plant for 2000 to 3000 hours:
Fixed operating costs per year $480,000
Variable operating costs $800 per hour
Budgeted long-run usage per year:
Flashlight Division 1500 hours
Night Light Division 600 hours
Practical capacity 3000 hours
Assume that practical capacity is used to calculate the allocation rates.
Actual usage for the year by the Flashlight Division was 1500 hours and by the Night Light Division was 800 hours. If a single-rate cost-allocation method is used, what amount of cost will be allocated to the Flashlight Division? Assume actual usage is used to allocate operating costs.
a. $1,850,000
b. $1,200,000
c. $2,050,000
d. $1,537,500
Answer:
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Graph with x axis labeled Quantity Demanded and numbered in hundreds, 100 to 500. Y axis is Price, with prices 0 to 6. A line r © Public Domain Based on the graph, how is quantity demanded related to price? (5 points) a Quantity demanded decreases as price decreases. b Quantity demanded decreases as price increases. c Quantity demanded increases as price increases. d Quantity demanded is equal to the product's price.
Answer:https://quizlet.com/198252271/0109-module-one-exam-flash-cards/
Explanation:
i think this is it
During the next year, sales of Fluoro2211 are expected to be 10,000 units. All costs will remain the same except for fixed manufacturing overhead, which will increase by 20%, and material, which will increase by 10%. The selling price per unit for next year will be $160. Based on these data, Razor Inc.'s total contribution margin for next year will be:
Answer:
$1,080,000
Explanation:
Calculation to determine what Razor Inc.'s total contribution margin for next year will be:
First step is to calculate the Total cost
Selling price per unit for next year $160
Less Direct Materials ($22)
(110%*20)
Less Direct Labor ($15)
Less Variable Manufacturing Overhead ($12)
Less Variable Selling ($3)
Total $108
Now let calculate the Next year contribution margin
Next year contribution margin=$108*10,000 units
Next year contribution margin= $1,080,000
Therefore Razor Inc.'s total contribution margin for next year will be:$1,080,000
Vaughn Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs $219,000; and fixed costs $71,600. Management is considering the following independent courses of action to increase net income. Compute the net income to be earned under each alternative. 1. Increase selling price by 10% with no change in total variable costs or sales volume.
Answer: $55,900
Explanation:
Based on the information given in the question, the following can be derived:
Units = 5000
Sales = $315000
Variable costs = $219,000
Fixed costs = $71,600
Selling price per unit
= 315,000/5000.
= 63
Variable expense per unit
= 219,000/5,000
= 43.8
Contribution margin per unit
= 63 - 43.8
= 19.2
We then calculate the 10% increase in selling price. This will be:
= $63 × (100% + 10%)
= $63 × 110%
= $63 × 1.10
= $69.3
Sales = 5000 × 69.3 = 346500
Less: Variable expense = 5000 × 43.80 = 219000
Contribution margin = 127500
Less: Fixed expense = 71,600
Net operating income = 55,900
During April, Cavy Company incurred factory overhead as follows:Indirect materials $10,500Factory supervision labor 4,000Utilities 500Depreciation (factory) 620Small tools 370Equipment rental 730Journalize the entry to record the factory overhead incurred during April. If an amount box does not require an entry, leave it blank.
Answer:
Date Account Title Debit Credit
April Factory Overhead $16,720
Indirect materials $10,500
Wages payable $4,000
Utilities payable $ 500
Accumulated Depreciation $ 620
Small tools $ 370
Equipment rental $ 730
Paul Company had 100,000 shares of common stock outstanding on January 1, 2021. On September 30, 2021, Paul sold 41,000 shares of common stock for cash. Paul also had 6,500 shares of convertible preferred stock outstanding throughout 2021. The preferred stock is $100 par, 5%, and is convertible into 3 shares of common for each share of preferred. Paul also had 430, 7%, convertible bonds outstanding throughout 2021. Each $1,000 bond is convertible into 30 shares of common stock. The bonds sold originally at face value. Reported net income for 2021 was $280,000 with a 40% tax rate. Common shareholders received $1.30 per share dividends after preferred dividends were paid in 2021. Required: Compute basic and diluted earnings per share for 2021.
Answer:
A. Basic earning per share 2.24 per share
B. Diluted earning per share 2.07 per share
Explanation:
Computation for the basic and diluted earnings per share for 2021.
First step is to calculate the Weighted common share
Weighted common share = 100,000+(41,000*3/12)
Weighted common share=100,000+10,250
Weighted common share= 110,250 Shares
a) Calculation for Basic earning per share using this formula
Basic earning per share = (Net income-Preferred dividend) / Share outstanding
Let plug in the formula
Basic earning per share = [$280,000-(5%*100*6,500)/110,250
Basic earning per share=[$280,000-$32,500)/110,250
Basic earning per share=$247,500/110,250
Basic earning per share =2.24 per share
Therefore Basic earning per share for 2021 will be 2.24 per share
b) Computation for the diluted earnings per share for 2021.
Using this formula
Diluted earning per share = Adjusted net income/Adjusted diluted share
First step is to calculate the Adjusted net income
Adjusted net income = $280,000+(430*1000*7%*60%)
(100%-40%=60%)
Adjusted net income = $280,000+$18,060
Adjusted net income =$298,060
Second step is to calculate the Adjusted diluted shares
Adjusted diluted shares = 110,250 +(6,500*3)+(430,000/30)
(430*1,000=430,000)
Adjusted diluted shares = 110,250+19,500+14,333
Adjusted diluted shares = 144,083
Now let calculate Diluted earning per share by plugging in the formula
Diluted earning per share = 298,060/ 144,083
Diluted earning per share= 2.068 per share
Diluted earning per share=2.07 per share (Approximately)
Therefore The Diluted earning per share for 2021 will be 2.07 per share