Answer:
Entries need for recording depreciation given the change in estimation is:
Dr Depreciation expenses 4,592
Cr Accumulated depreciation 4,592
( to record depreciation expenses in the year of 2021, given depreciation estimate changes)
Explanation:
Relating to the change in depreciation estimate, the firm will not have to book any adjustment in previous depreciation expenses which is based on the old estimate, instead it will have to re-calculate depreciation expenses given the new estimate which are shown as below:
The net book value as at the beginning of 2021 is:
Purchase price - accumulate depreciation over 5 year
in which: purchase price = $67,200
accumulated depreciation over 5 year = depreciation expenses per yer x 5 = ( 67,200 - 4,480) /8 * 5 = $39,200
Thus, net book value at the beginning of 2021 is $28,000 which will be used to determine depreciation expense per year for the remaining 5 years of useful life, calculated as:
Depreciation per year: (28,000 - 5,040)/5 = $4,592.
Answer:
Dr Depreciation charge (Profit or loss) $4,592
Cr Accumulated depreciation (B/S) $4,592
Explanation:
The change in useful life of machinery is a change in accounting estimate and is treated prospectively. The depreciation charge with the useful life of eight years and $4,480 residual value was $7,840 per annum ($67,200-$4,480)/8.
After five years (end of 2020), the NBV of the machine is $28,000 with a residual value of $5,040. Thus the depreciation charge from 2021 onwards is $4,592 calculated as ($28,000-$5,040)/5.
Maren received 10 NQOs (each option gives her the right to purchase 10 shares of stock for $8 per share) at the time she started working when the stock price was $6 per share. When the share price was $15 per share, she exercised all of her options. Eighteen months later she sold all of the shares for $20 per share. How much gain will Maren recognize on the sale of the shares and how much tax will she pay assuming her marginal tax rate is 37 percent?a. $0 gain and $0 tax. b. $560 gain and $84 tax. c. $560 gain and $196 tax. d. 1120 gain and $168 tax.
Answer:
$500 gain and $185 tax
Explanation:
Sale of share = No. of NQOs × No. of shares × Selling price per share
= 10 × 10 × $20
= $2,000
Basis = No. of NQOs × No. of shares × share price @$15
= 10 × 10 × $15
= $1,500
Gain realised = Sale of share - Basis
= $2,000 - $1,500
= $500
The tax is calculated as follows:
= Gain realised × marginal tax rate
= $500 × 37%
= $185
Answer:
$500 gain and $100 tax
Explanation:
The gain realized is $500 (100 shares × $20) less basis (100 shares × $15 exercise price). The tax is calculated as follows: $500 × 20% (preferential rate).
Suppose that there are 50 firms in a monopolistically competitive industry in country A and 50 firms in the same monopolistically competitive industry in country B. If country A and country B engage in international trade, we expect that the total number of firms in this industry: A. will first decrease, then increase. B. will increase. C. will remain unchanged. D. will decrease.
Answer:
B. will increase
Explanation:
Assuming that 50 firms in a monopolistically competitive industry in country A and 50 firms in the same monopolistically competitive industry in country B. If country A and country B engage in international trade, we expect that the total number of firms in this industry will increase .Because after trade, assuming firms in both countries make economic (excess) profits, this will attract entry of other firms into the industry in both markets. So, number of firms will increase. The correct answer is Option (B).
At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular product in inventory, acquired at the following dates and unit costs:
Purchased in August: 30 units at $750 per unit.
Purchased in November: 30 units at $700 per unit.
A complete physical inventory taken at year-end indicates only 50 units of this product actually are on hand.
Assuming that Anderson uses the LIFO flow assumption, it should record this inventory shrinkage by:
A. Debiting Cost of Goods Sold $7,000.
B. Crediting Cost of Goods Sold $7,500.
C. Debiting Cost of Goods Sold $7,500.
D. Crediting Cost of Goods Sold $7,000.
Answer:
A. Debiting Cost of Goods Sold $7,000
Explanation:
The LIFO is a method used to account value for inventory. Under the method, the last item of inventory purchased is the first one sold.
At year-end, the perpetual inventory records of Anderson Co. indicate 60 units of a particular product in inventory, but a physical inventory taken at year-end indicates only 50 units of this product actually are on hand. So 10 units of the product was shrinkage.
The company should debit Cost of Goods Sold to record this inventory shrinkage.
Anderson Co. use LIFO method, the amount shrinkage product:
10 x $700 = $7,000
Mr. Seider, a shareholder in the Greenfield Corporation, owns 9 comma 000 shares of their common stock, which represents 32% of the outstanding common stock of Greenfield Corporation. Mr. Seider receives a 10% stock dividend. After the stock dividend, what is Mr. Seider's ownership in Greenfield Corporation's common stock?
Answer:
32%
Explanation:
Since the question, it is mentioned that Mr. Seider owns 32% of the outstanding common stock of Greenfield Corporation. And, he also received the stock dividend of 10%.
But after the stock dividend, the ownership would remain the same i.e 32% because the dividend is based on the ownership criteria. As the dividend is distributed on the number of shares owned by the shareholder. So, the ownership would be 32% after the stock dividend
dama Company incurred the following costs. Indicate to which account Adama would debit each of the costs. 1. Sales tax on factory machinery purchased $ 5,000 2. Painting of and lettering on truck immediately upon purchase 700 3. Installation and testing of factory machinery 2,000 4. Real estate broker’s commission on land purchased 3,500 5. Insurance premium paid for first year’s insurance on new truck 880 6. Cost of landscaping on property purchased 7,200 7. Cost of paving parking lot for new building constructed 17,900 8. Cost of clearing, draining, and filling land 13,300 9. Architect’s fees on self-constructed building 10,000
Answer:
Explanation:
Select the account to be debited
Equipment Prepaid Insurance Building Land Land Improvements
These are the accounts which are given in the question
1. Sales tax on factory machinery purchased $ 5,000 - Equipment account as it it is related to factory machinery
2. Painting of and lettering on truck immediately upon purchase 700 - Equipment account as it it is related to factory machinery
3. Installation and testing of factory machinery 2,000 - Equipment account as it it is related to factory machinery
4. Real estate broker’s commission on land purchased 3,500 - Land as the land is purchased
5. Insurance premium paid for first year’s insurance on new truck 880 - Prepaid insurance as the advance insurance is paid
6. Cost of landscaping on property purchased 7,200 - Land improvements - as the landscaping cost is come under the land improvements
7. Cost of paving parking lot for new building constructed 17,900 - Land improvements - as the parking lot is come under the land improvements
8. Cost of clearing, draining, and filling land 13,300 - land - as the cost is incurred which is related to the land
9. Architect’s fees on self-constructed building 10,000 - Building - as the cost is incurred which is related to the building
Storm Corporation purchased a new machine on October 31, 2020. A $4,800 down payment was made and three monthly installments of $14,400 each are to be made beginning on November 30, 2020. The cash price would have been $46,400. Storm paid no installation charges under the monthly payment plan but an $800 installation charge would have been incurred with a cash purchase. The amount to be capitalized as the cost of the machine on October 31, 2020 would be _____________?
Answer:
$47,200
Explanation:
The computation of the capitalized amount as a cost of machine is shown below:
= Cash price of new machine + monthly installment charges
= $46,400 + $800
= $47,200
Since we have to find out the capitalized amount so we consider the cash price and the monthly installment charges only
All other information which is given is not relevant. Hence, ignored it
Suppose the following information was taken from the 2014 financial statements of FedEx Corporation, a major global transportation/delivery company.
(in millions) 2014 2013
Accounts receivable (gross) $3,493 $4,433
Accounts receivable (net) 3,314 4,227
Allowance for doubtful accounts 179 206
Sales revenue 36,938 39,088
Total current assets 7,702 6,801
Required:
Calculate the accounts receivable turnover and the average collection period for 2014 for FedEx
Answer:
Please see attachment
Explanation:
Please see attachment
On December 1, Miser Corporation exchanged 6,000 shares of its $25 par value common stock held in treasury for a parcel of land to be held for a future plant site. The treasury shares were acquired by Miser at a cost of $40 per share, and on the exchange date the common shares of Miser had a fair value of $50 per share. Miser received $18,000 for selling scrap when an existing building on the property was removed from the site. Based on these facts, the land should be capitalized at at what amount?
Answer:
$282,000
Explanation:
The computation of the capitalized amount of the land is shown below:
= Number of shares exchanged × fair value of per share - scrap selling value
= 6,000 shares × $50 per share - $18,000
= $300,000 - $18,000
= $282,000
Simply we multiplied the exchanged shares with its fair value and then deduct the scrap selling value so that the correct value can come.
All other information which is given is not relevant. Hence, ignored it
Carla Vista Co. sells office equipment on July 31, 2017, for $21,240 cash. The office equipment originally cost $86,550 and as of January 1, 2017, had accumulated depreciation of $35,470. Depreciation for the first 7 months of 2017 is $4,710.Prepare the journal entries to (a) update depreciation to July 31, 2017, and (b) record the sale of the equipment.
Answer:
Explanation:
The journal entries are shown below:
a. Depreciation Expense A/c Dr $4,710
To Accumulated Depreciation - Office equipment A/c $4,710
(Being depreciation expense is recorded)
The depreciation expense is calculated for eight months (January - August)
b. Cash A/c Dr $21,240
Accumulated Depreciation - Office equipment A/c Dr $40,180
Loss on Disposal of Office equipment A/c Dr $25,130
To Office equipment A/c $86,550
(Being sale of machinery is recorded and the remaining balance is debited to the Loss on Disposal of Office equipment A/c)
The accumulated depreciation is computed below:
= $35,470 + $4,710
= $40,180
Final answer:
To account for the sale of office equipment, a two-step journal entry process must be followed. First, record the depreciation expense up to the date of the sale. Then, record the sale by removing the equipment and accumulated depreciation from the books and recognizing any gain or loss.
Explanation:
(a) To update depreciation to July 31, 2017:
1. Calculate the depreciation expense for the period from January 1, 2017, to July 31, 2017.
Depreciation Expense = (Cost - Accumulated Depreciation) * (7/12)
Depreciation Expense = ($86,550 - $35,470) * (7/12)
Depreciation Expense = $51,080 * (7/12)
Depreciation Expense = $29,820
2. Record the depreciation expense:
Debit Depreciation Expense: $29,820
Credit Accumulated Depreciation: $29,820
(b) To record the sale of the equipment:
1. Calculate the book value of the equipment on July 31, 2017:
Book Value = Cost - Accumulated Depreciation
Book Value = $86,550 - ($35,470 + $29,820)
Book Value = $86,550 - $65,290
Book Value = $21,260
2. Record the sale:
Debit Cash: $21,240
Credit Accumulated Depreciation: $65,290
Credit Office Equipment: $86,550
Credit Gain on Sale of Equipment: $21,240
Please note that Gain on Sale of Equipment is calculated as:
Gain on Sale = Selling Price - Book Value
Gain on Sale = $21,240 - $21,260
Gain on Sale = $-20 (This indicates a loss, but in the accounting records, it's still recorded as a gain.)
Burgundy Manufacturing uses a process cost system and computes cost using the weighted average method. During the current period, the beginning work-in-process inventory cost was $13,525. Manufacturing cost added was $57,000. If Burgundy's ending work-in-process inventory was valued at $15,100, then cost of goods transferred must have been?
Answer:
$55,425
Explanation:
The computation of the costs of goods transferred is shown below:
= Beginning work-in-process inventory cost + manufacturing cost added - ending work-in-process inventory cost
= $13,525 + $57,000 - $15,100
= $55,425
We simply added the Beginning work-in-process inventory cost and deduct the ending work-in-process inventory cost to the manufacturing cost so that the correct amount can come.
Compute the simple rate of return promised by the games.Nick’s Novelties, Inc., is considering the purchase of new electronic games to place in its amusement houses. The games would cost a total of $425,000, have a fifteen-year useful life, and have a total salvage value of $42,500. The company estimates that annual revenues and expenses associated with the games would be as follows:
Answer
The answer and procedures of the exercise are attached inthe following images.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 sheets with the formulas indications.
A large manufacturing firm tests job applicants. Test scores are normally distributed with a mean of 500 and a standard deviation of 50. Management is considering placing a new hire in an upper-level management position if the person scores in the upper sixth percent of the distribution. What is the lowest score a new hire must earn to qualify for a responsible position?
Answer:
578
Explanation:
Please see attachment
Lindsay Electronics, a small manufacturer of electronic research equipment, has approximately 6 comma 800 items in its inventory and has hired Joan Blasco-Paul to manage its inventory. Joan has determined that 10% of the items in inventory are A items, 31% are B items, and 59% are C items. She would like to set up a system in which all A items are counted monthly (every 22 working days), all B items are counted quarterly (every 61 working days), and all C items are counted semiannually (every 124 working days). How many items need to be counted each day?
Answer:
97.8 or 98 items
Explanation:
A items:
= Percent of items in inventory × No. of items
= 0.1 × 6,800
= 680
B items:
= Percent of items in inventory × No. of items
= 0.31 × 6,800
= 2,108
C Items:
= Percent of items in inventory × No. of items
= 0.59 × 6,800
= 4,012
Units to be counted everyday:
[tex]=\frac{A\ items}{workings\ days} + \frac{B\ items}{workings\ days} + \frac{C\ items}{workings\ days}[/tex]
[tex]=\frac{680}{22} + \frac{2,108}{61} + \frac{4,012}{124}[/tex]
= 30.90 + 34.55 + 32.35
= 97.8 or 98 items
At the end of the first year of operations, Gaur Manufacturing had gross accounts receivable of $348,000. Gaur's management estimates that 7% of the accounts will prove uncollectible. What journal entry should Gaur record to establish an allowance for uncollectible accounts?
Final answer:
To account for uncollectible receivables, Gaur Manufacturing creates a journal entry debiting Bad Debt Expense and crediting Allowance for Doubtful Accounts for the estimated amount of $24,360.
Explanation:
When Gaur Manufacturing estimates that 7% of its gross accounts receivable of $348,000 will prove uncollectible, they need to record an allowance for doubtful accounts. The amount to be recorded is calculated as 7% of $348,000, which is $24,360. The journal entry to establish an allowance for uncollectible accounts would be:
Debit Bad Debt Expense for $24,360Credit Allowance for Doubtful Accounts for $24,360This entry reflects both the estimated uncollectible amount in the allowance account and the expense associated with uncollectible accounts in the income statement for the year.
The following information describes the production activities of Mercer Manufacturing for the yearActual direct materials used 30,000 lbs. at $5.15 per 1bActual direct labor used 9,150 hours for a total of $186, 660Actual units produced 54,120Budgeted standards for each unit produced are 0.50 pounds of direct material at $5.10 per pound and 10 minutes at $21.40 per hourAQ =Actual QuantitySQ= Standard QuantityAP =Actual PriceSP= Standard PriceAH =Actual HoursSH= Standard HoursAR= Actual RateSR =Standard Rate(1) Compute the direct materials price and quantity variances.(2) Compute the direct labor rate and efficiency variances. Indicate whether each variance is favorable or unfavorable.
Answer:
Standard quantity = Actual units produced × 0.50 pound per unit
= 54,120 × 0.50
= 27,060 pounds
Standard hours = Actual units produced × 1/6 hour per unit
= 54,120 × 1/6
= 9,020 hours
Actual rate per hour = $186, 660 ÷ 9,150 hours
= $20.4
(a) (i) Direct material price variance:
= (AQ × AP) - (AQ × SP)
= (30,000 × $5.15) - (30,000 × $5.10)
= $154,500 - $153,000
= $1,500 Unfavorable
(ii) Direct material quantity variance:
= (AQ × SP) - (SQ × SP)
= (30,000 × $5.10) - (27,060 × $5.10)
= $153,000 - $138,006
= $14,994 Unfavorable
(b) (i) Direct labor rate variances:
= (AH × AR) - (AH × SR)
= (9,150 × $20.4) - (9,150 × $21.40)
= $186,660 - $195,810
= $9,150 Favorable
(ii) Direct labor efficiency variances:
= (AH × SR) - (SH × SR)
= (9,150 × $21.40) - (9,020 × $21.40)
= $195,810 - $193,028
= $2,782 Unfavorable
"Atlas Company provided the following information for last year: Operating income $ 92,000 Sales 235,000 Beginning operating assets 410,000 Ending operating assets 440,000 Calculate Atlas's margin for last year. (Note: Round answer to two decimal places.)"
Answer:
The margin of Atlas's for the last year is 0.39
Explanation:
The formula to compute the margin is as:
Margin = Operating Income / Sales
Where
Operating income is $92,000
Sales is $235,000
Putting the values above in the formula:
Margin = $92,000 / $235,000
= 0.39
Hence, the margin of the Atlas Company will be 0.39 for the last year.
The market for fertilizer is perfectly competitive. Firms in the market are producing output but are currently making economic losses.Which of the following statements is true about the price of fertilizer? Check all that apply.
The price of fertilizer must be less than marginal cost.
The price of fertilizer must be less than average total cost.
The price of fertilizer must be equal to average variable cost.
Answer:
The correct answer is: The price of fertilizer must be less than average total cost.
Explanation:
In a perfectly competitive labor market, the firm is price takers. These firms are able to maximize their profit at the point where the price is equal to marginal revenue.
If the firm is incurring losses and still operating, it means that the price is higher than the average variable cost but lower than the average total cost.
If the price was lower than the average variable cost, the firm would have stopped production. A price equal to the average variable cost implies zero economic profit. When the price is greater than the average total cost the firm is earning profits.
Park & Company was recently formed with a $6,200 investment in the company by stockholders in exchange for common stock. The company then borrowed $3,200 from a local bank, purchased $1,120 of supplies on account, and also purchased $6,200 of equipment by paying $2,120 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are:
a) $14,600.
b) $12,400.
c) $11,520.
d) $9,400.
Final answer:
Park & Company's total assets, after accounting for all transactions, total $14,600. This is calculated by summing up the investment, loan, supplies on account, and the full value of equipment before subtracting the cash paid for the equipment.
Explanation:
The student asked about calculating the total assets for Park & Company based on several transactions. To find the total assets, we need to add up the value of everything the company owns. The initial investment by stockholders was $6,200 in exchange for common stock. The company borrowed $3,200 from a local bank. It purchased $1,120 of supplies on account (on credit), so this is an addition to assets without an immediate cash outflow. Lastly, the company bought $6,200 of equipment, paying $2,120 in cash with the rest on a promissory note, which means only $2,120 is subtracted from the company's cash, with the rest becoming a liability. Thus, to find the assets: $6,200 (from investors) + $3,200 (bank loan) + $1,120 (supplies on account) + $6,200 (equipment, without subtracting the note) = $16,720 in total assets. Now we subtract the cash payment for equipment: $16,720 - $2,120 = $14,600 in total assets, which corresponds to answer (a).
The newspaper reported last week that Bennington Enterprises earned $34.07 million this year. The report also stated that the firm’s return on equity is 16 percent. The firm retains 75 percent of its earnings. What is the firm's earnings growth rate?
Answer:
Earning growth rate will be 12 %
Explanation:
We have given that Bennington Enterprises earned $34.07 million this year.
Return equity = 16 % = 0.16
Retained earning = 75 % = 0.75
We have to find the firm's growth rate
We know that growth rate is given by
Growth rate = Return on equity × retained earning
So firm's growth rate will be equal to = 0.16×0.75 = 0.12
Therefore the earning growth rate will be 12 %
The firm's earnings growth rate is 12%.
To find the firm's earnings growth rate, we need to determine the addition to retained earnings and then calculate the growth rate using the sustainable growth rate formula.
Given information:
- Earnings for the current year = $34.07 million
- Return on equity = 16%
- Retention ratio = 75%
Step 1: Calculate the addition to retained earnings.
Addition to retained earnings = Earnings × Retention ratio
Addition to retained earnings [tex]= 34.07 million\$ * 0.75 = 25.5525\$ million[/tex]
Step 2: Calculate the sustainable growth rate using the sustainable growth rate formula.
Sustainable growth rate = Return on equity × Retention ratio
Sustainable growth rate [tex]= 0.16 * 0.75 = 0.12 or 12\%[/tex]
Therefore, the firm's earnings growth rate, which is the sustainable growth rate, is 12%.
Which of the following is NOT an advantage of the "few suppliers" sourcing strategy?
suppliers' willingness to provide technological expertise
suppliers have a learning curve that yields lower transaction and production costs
less vulnerable trade secrets
suppliers are more likely to understand the broad objectives of the end customer
creation of value by allowing suppliers to have economies of scale
Answer:
Less vulnerable trade secrets.
Explanation:
A trade secret is basically a type of intellectual property in any form that is not known by public.
The 'few suppliers' sourcing strategy can have numerous benefits but it can potentially make a company's trade secrets more vulnerable, as suppliers may have more opportunities to gain insights into the company's proprietary information.
Explanation:In a business context, a few suppliers sourcing strategy refers to only having a limited number of suppliers for goods or services. This strategy can offer several benefits including a lower transaction and production costs due to a potential learning curve effect and also creation of value by allowing suppliers to have economies of scale. However, one potential disadvantage of this strategy is that it can make a company's trade secrets more vulnerable. If a business only uses a few suppliers, those suppliers may have more opportunities to gain insights into proprietary processes or information, potentially compromising trade secrets.
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KHD has 1,500 bonds outstanding that are selling for $1,000 each. The common stock is priced at $26 a share and there are 36,000 shares outstanding. What is the weight of the common stock as it relates to the firm's weighted average cost of capital?
Answer:
38.42%
Explanation:
First, find the market value of debt( bonds in this case);
market value of debt = price of bond * number of bonds
= $1,000 * 1,500 = $1,500,000
First, find the market value of common stock;
market value of common stock = price per share * number of stock outstanding
= $26 * 36,000 = $936,000
Since debt and equity make up KHD company's capital ,
total capital = market value of debt + market value of common stock
= $1,500,000 + $936,000
= $2,436,000
Weight of the common stock = market value of common stock / total capital value;
= $936,000/ $2,436,000
= 0.3842 or 38.42% as a percentage
Therefore, What is the weight of the common stock is 38.42%
The weight of the common stock as it relates to the firm's weighted average cost of capital is approximately 38.46%.
Explanation:The weight of the common stock can be calculated by dividing the market value of the common stock by the total market value of the firm's capital structure. In this case, the market value of the common stock is calculated by multiplying the price per share by the number of shares outstanding. The market value of the common stock is $26 per share multiplied by 36,000 shares, which equals $936,000.
The total market value of the firm's capital structure is the market value of the common stock plus the market value of the bonds. The market value of the bonds is calculated by multiplying the price per bond by the number of bonds outstanding. The market value of the bonds is $1,000 per bond multiplied by 1,500 bonds, which equals $1,500,000. Therefore, the total market value of the firm's capital structure is $936,000 (common stock) + $1,500,000 (bonds) = $2,436,000. The weight of the common stock as it relates to the firm's weighted average cost of capital is calculated by dividing the market value of the common stock by the total market value of the firm's capital structure.
The weight of the common stock = $936,000 (common stock) / $2,436,000 (total market value of capital structure) = 0.3846, or approximately 38.46%.
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A stock has had the following year-end prices and dividends: Year Price Dividend 1 $ 64.88 — 2 71.75 $ .71 3 77.55 .76 4 63.82 .82 5 74.21 .91 6 85.25 .98 What are the arithmetic and geometric returns for the stock?
Answer:
Arithmetic = 7.62% and geometric returns =6.80%
Explanation:
Please see attachment .
Prior to June 1, Sandler Company had no treasury stock transactions. Then, on June 1, the company paid $5,000 to purchase 100 shares of its common stock on the open market. On July 1, the company sold 50 of these shares at $52 per share. Then, on August 1, the company sold the remaining 50 shares at $46 per share. Complete the journal entry for the sale of the treasury stock on July 1 by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Answer:
Explanation:
The journal entries are shown below:
On June 1
Treasury Stock A/c Dr $5,000 (50 shares × $100)
To Cash A/c $5,000
(Being treasure stock is purchased)
On July 1
Cash A/c Dr $2,600 (50 shares × $52)
To Treasury Stock A/c $2,500 (50 shares × $50)
To Paid in capital - Treasury stock $100
(Being treasury stock is sold at higher price and the remaining amount would be credited to the paid in capital account)
On August 1
Cash A/c Dr $2,300 (50 shares × $46)
Paid in capital - Treasury stock $100
Retained Earnings A/c Dr $100
To Treasury Stock A/c $2,500 (50 shares × $50)
(Being treasury stock is sold at lower price and the remaining amount would be debited to the retained earning account)
The journal entry for the sale of the treasury stock on July 1 includes a debit to Cash, Retained Earnings, and a credit to Treasury Stock and Additional Paid-in Capital.
Explanation:The journal entry for the sale of the treasury stock on July 1 can be completed as follows:
Debit: Cash - $2,600 ($52 x 50 shares)Debit: Retained Earnings - $500 ($5,000 cost of treasury stock - $4,500 proceeds from sale)Credit: Treasury Stock - $5,000 (cost of treasury stock)Credit: Additional Paid-in Capital - $100 (excess proceeds from sale)The debit to Cash represents the cash received from the sale of 50 shares at $52 per share. The debit to Retained Earnings accounts for the decrease in equity due to the sale, and the credit to Treasury Stock reflects the reduction in treasury stock. Finally, the credit to Additional Paid-in Capital represents any excess proceeds received from the sale.
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Presented below are data relating to labor for Verde Appliance Repair Shop. Repair-technicians' wages $133,400 Fringe benefits 58,000 Overhead 87,000 The desired profit margin per hour is $12. The material loading charge is 60% of invoice cost. Verde estimates that 5,800 labor hours will be worked next year. If Verde repairs a dishwasher that takes 1.2 hours to repair and uses parts of $90, compute the bill for the job.
Final answer:
To compute the repair bill for a dishwasher, we totaled the labor and overhead costs, divided by the estimated labor hours, added the profit margin per hour, and then applied the material loading charge. The total bill for a job that takes 1.2 hours and uses $90 worth of parts would be $126.00.
Explanation:
To compute the bill for repairing a dishwasher that takes 1.2 hours to repair and uses parts with an invoice cost of $90, we need to determine the cost for labor, fringe benefits, overhead, material loading charge, and the desired profit margin.
Total labor cost (Repair-technicians' wages + Fringe benefits) = $133,400 + $58,000 = $191,400Overhead = $87,000Estimated labor hours = 5,800 hoursFirst, we calculate the total cost of employing a technician per hour by summing the labor cost and the overhead and dividing by the estimated labor hours:
Technician cost per hour = ($Labor Cost + Overhead) / Estimated Labor Hours
Technician cost per hour = (($191,400 + $87,000) / 5,800
Technician cost per hour = $48.00
Next, we add the desired profit margin of $12 per hour.
Total hourly charge = Technician cost per hour + Profit margin
Total hourly charge = $48.00 + $12
Total hourly charge = $60.00
Now, we find the labor charge for 1.2 hours:
Labor charge for 1.2 hours = Total hourly charge ( 1.2
Labor charge for 1.2 hours = $60.00 ( 1.2
Labor charge for 1.2 hours = $72.00
The material loading charge is 60% of the invoice cost:
Material loading charge = Invoice cost ( 60%
Material loading charge = $90 ( 60%
Material loading charge = $54.00
The total bill for the repair job is the sum of the labor charge and material loading charge:
Total bill = Labor charge for 1.2 hours + Material loading charge
Total bill = $72.00 + $54.00
Total bill = $126.00
What is the definition of derived demand?
a. consumer demand for a product, stimulated by lack of availability of another product
b. demand, due to advertising, for goods and services that are luxuries rather than basic necessities
c. demand for goods and services that are factors of production for other goods and services
d. consumer demand for a product, stimulated by the presence of another product in the marketplace
Answer:
Letter c is correct. Demand for goods and services that are factors of production for other goods and services.
Explanation:
Derived demand is characterized by the ability of one good or service to produce another good and related service. This is a growing demand when other types of products and services are needed to complete the production of some product or service, such as raw materials, labor and capital.
The behavior of derived demand is elastic when demand for final goods increases. An example of a derived demand product is the tires of a car, when car sales increase also increases tire sales.
The town of Conway opened a solid waste landfill several years ago that is now filled to capacity. The city initially anticipated closure costs of $2 million. These costs were not expected to be incurred until the landfill is closed. What is the final journal entry to record these costs assuming the estimated $2 million closure costs were properly recorded and the landfill is accounted for in an enterprise fund?
A)
Expense—Landfill Closure
2,000,000
Landfill Closure Liability
2,000,000
B)
Landfill Closure Liability
2,000,000
Expense—Landfill Closure
2,000,000
C)
Expense—Landfill Closure
2,000,000
Cash
2,000,000
D)
Landfill Closure Liability
2,000,000
Cash
2,000,000
E)
Expenditure- Landfill Closure
2,000,000
Cash
2,000,000
Entry A.
Entry B.
Entry C.
Entry D.
Entry E.
Answer:
Option D
Landfill Closure Liability 2,000,000
Cash 2 ,000,000
Explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Assume the following for the town of Boone: it has a total population of 40,000 people, of which 1,000 are under 16 years of age or are institutionalized; 5,000 are full-time students who are not employed and are not seeking work; and 30,000 are employed. The rest of the people are out of work but have been actively seeking work within the past four weeks. What is Boone's unemployment rate?
Final answer:
To calculate the unemployment rate in Boone, subtract the number of employed individuals from the labor force and divide that number by the labor force. Multiply the result by 100 to get the unemployment rate.
Explanation:
To calculate the unemployment rate in Boone, we need to know the number of unemployed people and the total labor force. The labor force consists of employed individuals and those who are unemployed but actively seeking work.
Given that the total population is 40,000 and the number of people under 16 or institutionalized is 1,000, we subtract this from the total population to get the labor force: 40,000 - 1,000 = 39,000.
The number of employed individuals in Boone is 30,000, so we can calculate the number of unemployed individuals by subtracting the employed individuals from the labor force: 39,000 - 30,000 = 9,000.
The unemployment rate is then calculated by dividing the number of unemployed individuals by the labor force and multiplying by 100: (9,000 / 39,000) * 100 = 23.1%.
Upstream from Umami Snacks is the set of firms that supply the raw materials, information, and expertise to make the seaweed crisps. The recipe for seaweed crisps is quite simple: nori (red seaweed), olive oil, and spices. From its production of wasabi peas and arare, Umami already has a supplier of olive oil and spices, but it needs to find a supplier for the nori. Nori can be purchased from international suppliers in Korea and China and from local suppliers. A number of factors must be considered when choosing a supplier, and often concessions must be made. In the selection of the nori supplier, which two factors should be prioritized? a. Price b. Management style c. Quality d. Payment terms
Answer: A. Price C Quality
Explanation:
The price of available stock for purchase is of paramount importance to the buying company. The price determines the level of profitability and which in essence determines continuity in business.
Qualities of raw material input will equally determines the quality of the output and this affects the firm reputation.
The management style of the supplier and his payment terms can be influenced by the buying company through it's purchasing power, so they are not of much piority compared to price and quality.
A rich uncle wants to make you a millionaire. How much money must he deposit in a trust fund paying 12% compounded quarterly at the time of your birth to yield $1,000,000 when you retire at age 60? (Round your answer to the nearest cent.)
Answer:
P=24.92 per quarter
Explanation:
this problem can be solved applying the concept of annuity, keep in mind that an annuity is a formula which allows you to calculate the future value of future payments affected by an interest rate.by definition the future value of an annuity is given by:
[tex]s_{n} =P*\frac{(1+i)^{n}-1 }{i}[/tex]
where [tex]s_{n}[/tex] is the future value of the annuity, [tex]i[/tex] is the interest rate for every period payment, n is the number of payments, and P is the regular amount paid. so applying to this particular problem, we have:
[tex]s_{60*4} =P*\frac{(1+(0.12/4))^{60*4}-1 }{(0.12/4)}[/tex]
we will asume that deposits are made as interest is compounded it is quarterly thats why we multiply 60 and 4 and also we divide 12% into 4, so:
[tex]1,000,000 =P*\frac{(1+(0.12/4))^{60*4}-1 }{(0.12/4)}[/tex]
solving P
P=24.92
As a manager for XYZ Company. you are assigned to resolve a conflict between two departments of your organization.Both parties have equal power. Both the parties are under time pressure to resolve the conflicts You also realize that theparties lack trust/openness for problem solving.If instead of equal power. the other department had considerably more power than yours, what would your best conflictresolution style be?A. ForcingB. YieldingC. AvoidingD. CompromisingE. Problem-solving
Answer:
The answer is letter D.
Explanation:
Compromising