Answer:
Return on common stockholder equity = 9%
so correct option is C. 9%
Explanation:
given data
total assets = $400,000
common stockholders equity = $200,000
Sales = $120,000
Net income = $24,000
Dividends common stock = $9,000
Dividends preferred stock = $6,000
to find out
company’s return on common stockholders’ equity
solution
we get here Return on common stockholder equity is here as
Return on common stockholder equity = Net income - Preferred dividends ÷ common stockholder equity .......................1
put here value we get
Return on common stockholder equity = [tex]\frac{$24000 - $6000}{$200000}[/tex]
Return on common stockholder equity = 9%
so correct option is C. 9%
Excel Memory Company can sell all units of computer memory X and Y that it can produce, but it has limited production capacity. It can produce two units of X per hour or three units of Y per hour, and it has 4,200 production hours available. Contribution margin is $8 for product X and $7 for product Y.
Calculate contribution margin per production hour.
Answer:
Please see attachment
Explanation:
Please see attachment
Along a short-run aggregate supply curve, output is related to unexpected movements in the ______. Along a Phillips curve, unemployment is related to unexpected movements in the ______. price level; inflation rate inflation rate; price level unemployment rate; price level price level; level of output
Answer:
The answer is price level and inflation rate
Explanation:
Because the short run Phillips curve represents a combination of unemployment and inflation that an economy might experience given current expectations about inflation. It is an inverse relationship between inflation and unemployment.
Fred quits his job with a big accounting firm, where he was earning $95,000 per year, to start his own accounting business in a building he owns. He previously rented the building to someone who paid him rent of $22,000 per year, but now Fred collects no rent because he is using the building himself. Fred pays himself a salary of $32,000 per year and has other expenses of $25,000 per year. The yearly economic cost for Fred's accounting business is Enter your response as an integer)
Answer:
economic cost for Fred's accounting business is $142,000
Explanation:
given data
earning = $95,000 per year
rent = $22,000 per year
salary = $32,000 per year
other expenses = $25,000 per year
to find out
economic cost for Fred's accounting business
solution
we know that economic costs include both the explicit costs and implicit costs and here explicit costs is the expenditure on factor of production purchase from outside
so implicit costs is opportunity cost of owner provided resource and other expense is an explicit cost
so here Economic cost is here
Economic cost = Foregone salary + Foregone rent + Other expenses ..............1
put here value
Economic cost = 95,000 + 22,000 + 25,000
Economic cost = = $142000
so
economic cost for Fred's accounting business is $142,000
Bond prices and maturity dates. Les Company is about to issue a bond with annual coupon payments, an annual coupon rate of 8%, and par value of $1,000. The yield to maturity for this bond is 5%.
What is the price of the bond if it matures in 15, 20, 25, or 30 years?
What do you notice about the bond in relationship to the maturity of the bond?
Answer:
Answers are enlisted below
Explanation:
1) year price
5 1120.43
10 1197.35
15 1246.48
20 1277.86
2) inverse relationship as maturity increases bond price increases
Torque Co. has equipment with a carrying amount of $1,600,000. The expected future net cash flows from the equipment are $1,630,000, and its fair value is $1,360,000. The equipment is expected to be used in operations in the future. What amount (if any) should Torque report as an impairment to its equipment?
1. No impairment should be reported.
2. $240,000
3. $30,000
4. $270,000
Answer:
2. $240,000
Explanation:
Impairment loss is calculated as the difference between the book value (carrying amount) of an equipment and its fair market value, usually due to depreciation. Expected cash flows from the equipment are not considered when calculating impairment. Torque Co. should report an impairment of:
[tex]I= \$1,600,000 - $1,360,000 = \$240,000[/tex]
They should report an impairment of $240,000.
A county accounts for its debt service payments in the Debt Service Fund. The amount of unmatured, unpaid interest on general long-term liabilities at the beginning of the year was $122,000. The ending balance was $165,000. The Debt Service Fund made principal payments of $600,000 and interest payments of $150,000 during the year. The Debt Service Fund should report expenditures for debt service for the year of
A. $150,000.
B. $722,000
C. $750,000
D.$793,000.
Answer:
D.$793,000.
Explanation:
Please see attachment
In 2018, Cindy is married and files a joint return. She operates a sole proprietorship in which she materially participates. Her proprietorship generates a gross income of $225,000 and deductions of $525,000, resulting in a loss of $300,000. What is Cindy’s excess business loss for the year?
a. $-0-.
b. $30,000.
c. $250,000.
d. $280,000.
e. None of the abov
Answer:
E. None of the above
Explanation:
Aggregate business deductions $52
Less: Aggregate business gross income and gains (225,00 Less: Threshold amount (250,00) Excess business loss $50000
Therefore the excess business loss is $50000 which none of the above given choices. The correct answer for this problem is therefore none of the above.
Sunny Day Manufacturing Company is considering investing in a one-year project that requires an initial investment of $475,000. To do so, it will have to issue new common stock and will incur a flotation cost of 2.00%. At the end of the year, the project is expected to produce a cash inflow of $595,000. The rate of return that Sunny Day expects to earn on its project (net of its flotation costs) is _______(rounded to two decimal places).
Answer:
22.81%
Explanation:
Data provided in the question:
Initial investment = $475,000
Flotation cost = 2.00%
Cash inflow = $595,000
Now,
Amount of Flotation cost = Flotation cost × Initial investment
= 0.02 × $475,000
= $9,500
Thus,
Rate of return = [ Cash inflow ÷ (Initial investment + Flotation cost) ] - 1
or
Rate of return = [ $595,000 ÷ ($475,000 + $9,500) ] - 1
or
Rate of return = 0.2281 or 22.81%
Sunny Day Manufacturing Company will incur a flotation cost of $9,500 when issuing new common stock for its one-year project investment of $475,000. After taking into account the expected cash inflow of $595,000 at the end of the year, the company expects to earn a rate of return of approximately 22.79% on its project, net of its flotation costs.
Explanation:To calculate the rate of return that Sunny Day Manufacturing Company expects to earn on its project, we must first understand that this value shows how much profit the company is expecting based on its investment. Given the initial investment of $475,000 and the cash inflow expected at the year-end of $595,000, we can see an apparent profit. However, we must account for the flotation cost of 2%, which is the cost incurred when issuing new common stock. This cost is $9,500 ($475,000 ×2%). Therefore, the net investment is $484,500 ($475,000 + $9,500).
Now, we can calculate the rate of return, which is the net gain or loss made on an investment per unit of invested capital. Here it is the ratio of profit to net investment: ($595,000 - $484,500) / $484,500. Consequently, the required rate of return, rounded to two decimal places, is approximately 22.79%.
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Mary Stahley invested $1500 in a 48-month certificate of deposit (CD) that earned 6.5% annual simple interest. When the CD matured, she invested the full amount in a mutual fund that had an annual growth equivalent to 21% compounded annually. How much was the mutual fund worth after 10 years? (Round your answer to the nearest cent.)
Answer:
$12714.98
Explanation:
Data provided in the question:
Initial amount invested = $1,500
Simple interest rate = 6.5%
Duration for simple interest = 48 months = 4 years
Now,
Simple interest = Amount × Interest rate × Time
= $1,500 × 0.065 × 4
= $390
Therefore,
Total amount = $1500 + $390
= $1890
Now
The amount = $1890 is invested in mutual fund which is compounded annually at 21% for 10 years
thus,
Final amount = Principle × (1 + r)ⁿ
here, r = 21% = 0.21
n = 10 years
Therefore,
Final amount = $1890 × (1 + 0.21)¹⁰
= $12714.98
Snake River Sawmill manufactures two lumber products from a joint milling process. The two products developed are mine support braces (MSB) and unseasoned commercial building lumber (CBL). A standard production run incurs joint costs of $380,000 and results in 68,000 units of MSB and 98,000 units of CBL. Each MSB sells for $2, and each unit of CBL sells for $10. Calculate the amount of joint cost allocated to commercial building lumber (CBL) on a physical-units basis. (Round the calculation of "Relative Proportion" to the nearest whole percent. Round your final answers to the nearest dollar amount.)
Final answer:
The joint cost allocated to Commercial Building Lumber (CBL) using a physical-units basis is $224,200, which is calculated by finding the proportion of total units that are CBL and then applying that percentage to the total joint costs.
Explanation:
To allocate the joint costs to Commercial Building Lumber (CBL) using the physical-units basis, you first need to find the total number of units produced and then determine what percentage of these units are CBL.
Total units = MSB units + CBL units
= 68,000 MSB + 98,000 CBL
= 166,000 units
The relative proportion of CBL is:
Percentage of CBL = (CBL Units / Total Units) * 100
= (98,000 / 166,000) * 100
= 59%
The amount of joint cost allocated to CBL is then calculated by multiplying the total joint cost by the relative proportion of CBL:
Joint Cost Allocated to CBL = Total Joint Cost * (Percentage of CBL / 100)
= $380,000 * (59% / 100)
= $380,000 * 0.59
= $224,200 (rounded to the nearest dollar)
Orion Flour Mills purchased a new machine and made the following expenditures: Purchase price $ 63,000 Sales tax 5,400 Shipment of machine 880 Insurance on the machine for the first year 580 Installation of machine 1,760 The machine, including sales tax, was purchased on account, with payment due in 30 days. The other expenditures listed above were paid in cash. Required: Record the above expenditures for the new machine. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
The appropriate journal entry to record the transaction is: Debit Equipment $7,1040; Debit Prepaid insurance $580; Credit Cash $3,220; Credit Accounts payable $68,400.
Journal entryOrion Flour Mills journal entry
Debit Equipment $7,1040
($63,000 + $5,400 + $880 + $1,760)
Debit Prepaid insurance $580
Credit Cash $3,220
($880 + $1,760 + $580)
Credit Accounts payable $68,400
($63,000 + $5,400)
Inconclusion the appropriate journal entry to record the transaction is: Debit Equipment $7,1040; Debit Prepaid insurance $580; Credit Cash $3,220; Credit Accounts payable $68,400.
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The expenditures are recorded by debiting Machinery for the combined amounts of purchase price, sales tax, shipment, insurance, and installation. The machine, including its sales tax, is posted as accounts payable and the other expenditures are paid in cash.
Explanation:The question is about tracking and recording the expenses related to the purchase of a machine by Orion Flour Mills. The relevant expenditures that need to be accounted for, include the purchase price, sales tax, shipment, insurance, and installation costs. It is important to note that the machine, including its sales tax, was purchased on account which means it's not paid for immediately.
Here's how to record the transactions:
Debit Machinery for $63,000 (purchase price) plus $5,400 (sales tax). This transaction is posted as accounts payable as it's due in 30 days. Debit Machinery for $880 (shipment costs), $580 (insurance for the first year) and $1,760 (installation), because these are capitalized as part of the equipment cost. These costs are paid in cash. Learn more about Recording Expenditures here:https://brainly.com/question/31871722
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Which of the following is not a strength of sensitivity analysis?
(A) Provides indication of stand-alone risk.
(B) None of these answers.
(C) Idenifies dangerous variables.
(D) Does not reflect diversificiation.
(E) Gives some breakeven information.
A company that has identified an employee with future managerial potential might send that employee to a three-week university-sponsored program to help improve the individual’s leadership skills. This is an example of _____.
Answer:
development
Explanation:
An individual when grows do not only grows individually, but also helps in the development of the organization.
Accordingly when the organization sees some potential in the individual of growth and development - it shall to develop the managerial skills and allow him to become a leader, send him for some leadership course.
The leadership course will develop the leadership potential professionally that shall help him and the organization as well.
An oligopoly arises when _ have all or most of the sales in an industry. If oligopolists with the same marginal costs and no fixed costs compete against each other in price, it leads to all firms _.
a) A few large firms; making a loss
b) Many small firms; making large profits
c) A few large firms; making zero profit
d) Many small firms; making zero profits
Answer:
The correct answer is letter "D": Many small firms; making zero profits.
Explanation:
An oligopoly is when the market is controlled by a small group of two or more firms. Businesses in an oligopoly can agree in price collusion and create barriers to entry for new commerce. When they compete against each other they act like perfect competitors which generate a price dropdown and causing zero profits for the firms.
Presented below is information related to equipment owned by Monty Company at December 31, 2017.
Cost (residual value $0) $8,943,400
Accumulated depreciation to date 991,000
Value-in-use 5,524,100
Fair value less cost of disposal 4,361,570
Assume that Monty intends to dispose of the equipment in the coming year. As of December 31, 2017, the equipment has a remaining useful life of 8 years. Monty uses straight-line depreciation.
Required :
1. Prepare the journal entry (if any) to record the impairment of the asset at December 31, 2017.
2. Prepare the journal entry to record depreciation expense for 2018.
Answer:
Question 1: DR Profit & Loss Account $2,428,300
CR Equipment $2,428,300
Question 2: DR Depreciation Expense $690,512.50
CR Accumulated Depreciation $690,512.50
Explanation:
Question 1)
DR Profit & Loss Account $2,428,300
CR Equipment $2,428,300
IAS 36 – Impairment of Assets states that the assets is considered to be impaired if the Carrying Amount of an asset is greater than the Recoverable Amount. Recoverable Amount of an assets is the higher of Fair Value less Cost to Sell and Value-in-Use.
In case of Monty Company, recoverable amount of Equipment will be $5,524,100 i.e. Value-in-Use as it is greater than the Fair Value les cost to sell. The carrying amount of Equipment $7,952,400 ($8,943,400 - $991,000 = $7,952,400) exceeds the recoverable amount $5,524,100, Therefore, the asset is considered impaired and must be written down by $2,428,300 ($7,952,400 - $5,524,100 = $2,428,300). The impairment loss is charged to the statement of profit and loss.
Question 2)
DR Depreciation Expense $690,512.50
CR Accumulated Depreciation $690,512.50
Once the asset is impaired, the recoverable amount of the asset is then depreciated over the remaining useful life of the asset. In case of Monty Company, depreciation charge for equipment in 2018 will be ($5,524,100 ÷ 8 = $690,512.50)
The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.
Rina spends all of her money on paperback novels and donuts. In 2009 she earned $14.00 per hour, the price of a paperback novel was $7.00, and the price of a donut was $2.00.
1: Which of the following give the nominal value of a variable? Check all that apply.
A) The price of a donut is $2.00 in 2009.
B) Rina's wage is $14.00 per hour in 2009.
C) Rina's wage is 2 paperback novels per hour in 2009.
Answer:
A) The price of a donut is $2.00 in 2009.
B) Rina's wage is $14.00 per hour in 2009.
Explanation:
The nominal value of a variable is its monetary amount, in this case, in dollars which is susceptible to currency fluctuations and inflation. Therefore, statements A and B present the nominal value of a variable.
When valuing a variable as an exchange for another good, that is assigning a real value to that variable since monetary changes won't affect the relationship between two goods.
The answers are A) and B)
Final answer:
In economics, nominal value refers to measurements in terms of actual prices, while real value refers to measurements adjusted for inflation. In the given scenario, the variables representing nominal value are the price of a donut and Rina's wage. The variable representing real value is Rina's wage in terms of paperback novels per hour.
Explanation:
In economics, the classical dichotomy refers to the separation of real and nominal variables. Nominal value refers to the measurement of a statistic in terms of actual prices that exist at the time. Real value, on the other hand, refers to the same statistic after it has been adjusted for inflation. In the given scenario, the variables that represent nominal value are:
A) The price of a donut is $2.00 in 2009.B) Rina's wage is $14.00 per hour in 2009.The variable that represents real value is:
C) Rina's wage is 2 paperback novels per hour in 2009.Metlock, Inc. has 5900 shares of 6%, $50 par value, cumulative preferred stock and 118000 shares of $1 par value common stock outstanding at December 31, 2020, and December 31, 2019. The board of directors declared and paid a $11500 dividend in 2019. In 2020, $57500 of dividends are declared and paid. What are the dividends received by the preferred stockholders in 2020?
Answer:
$23900
Explanation:
Given: Cumulative Preferred stock is 5900 shares of 6% at $50.
Dividend paid in 2019= $11500
First lets calculate the value of preferred stock.
Preferred stock= [tex]5900 shares\times \$ 50\times \frac{6}{100}[/tex]
∴ Preferred stock= $17700.
Formula:
Dividend received by preferred stockholder= [tex][Preferred\ stock +(Preferred\ stock-Dividend\ paid)][/tex]
⇒Dividend received by preferred stockholder=[tex]17700+(17700-11500)[/tex]
⇒ Dividend received by preferred stockholder= [tex]17700+6200= \$ 23900[/tex]
∴ $23900 dividend received by preferred stockholder in 2020.
Briefly explain whether you agree or disagree with the following statement: "Assets are things of value that people own. Liabilities are debts. Therefore, a bank will always consider a checking account deposit to be an asset and a car loan to be a liability."
Answer:
I disagree. It is clearly a bank liability.
Commercial bank term loans:
a)are offered to superior credit applicants.
b)usually carry fixed interest rates.
c)are very short-term in nature and are offered to superior credit applicants.
d)are very short-term in nature.
Answer:
c) are very short-term in nature and are offered to superior credit applicants.
Explanation:
Commercial bank term loans are most often used for short-term funding needs and granted to creditworthy applicants only.
The loan interest may be fixed or floating subject to applicants’ choices.
(a) Is correct but not enough compared to (c)
(b) Is not correct because it can carry floating rate also
(c) Totally correct in term of length and applicant
(d) Is correct but not enough compared to (c)
If the Federal Reserve were to change from an expansionary to a contractionary monetary
policy, this would be an example of ________.
A) unsystematic risk
B) systematic risk
C) independent risk
D) diversification risk
Answer:
B) systematic risk
Explanation:
Federal Reserve changes in monetary policies affect the entire securities market hence considered a Systematic risk. It is also known as the Non-diversifiable risk ; it cannot be diversified away unlike stock specific or industry specific risk(unsystematic ) which can be eliminated through diversification.
Systematic risk is unavoidable and may be difficult to predict. Other examples include increase in long term interest rates, recessions or wars. Additionally, Investors are only compensated for systematic risk and not for diversifiable risk.
Instant messaging (IM) enables users to communicate in real time via the Internet.Complete the following sentence about instant messaging.Instant messaging is designed for messages.IM is increasingly used by businesses. Identify the reasons workers find IM useful. Check all that apply.a. Controlb. Conveniencec. Litigationd. Unobtrusivenesse. Presence functionalityf. Speed
Answer: Instant messaging is designed for messages online real time.
Explanation:
Which the message are received instantly when sent.
B. a Control, b. Convenience c. Litigation f. Speed
The user has control of it, it's convenient for use, can be used as evidence in litigation, however it's obtrusive it could be disturbing to the receiver and it's presence functionality cannot be determined until it's sent and received.
Instant messaging (IM) is increasingly used in business due to its convenience (b), unobtrusiveness (d), presence functionality (e), and speed (f). It enables easy, fast, and effective communication with less disruption.
Explanation:
Several factors contribute to the popularity of instant messaging (IM) in business environments. Among them are convenience, unobtrusiveness, presence functionality, and speed.
IM is convenient as it allows users to communicate quickly and effectively without the need to leave their workstations. In addition, IM is unobtrusive, since it allows users to receive and respond to messages at their own pace, causing less disruption compared to phone calls or face-to-face meetings.
Presence functionality is another significant advantage of IM. This feature shows whether a user is online and available to communicate, which can greatly aid in coordinating tasks and avoiding communication delays. Finally, speed is a critical factor. IM provides real-time communication, enabling instant sharing of information and quick problem-solving.
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Q 11.34: In 2020, First Inc. issued 12,000 shares of 8%, $60 par-value preferred stock with a cumulative-dividend feature. In 2020, the firm paid total dividends of $30,000, and in 2021, it paid total dividends of $45,000. If First declares $180,000 in total dividends for 2022, what amount will be available for its common stockholders?
Answer:
amount will be available for its common stockholders is $82,200
Explanation:
Dividend paid in 2020 is $30,000
Dividend for preferred stock holder in 2020 is = 12,000 × 60 × 8% = $57,600
Dividend accumulated for the next year is = 57600 - 30000 = $27,600
Dividend paid in 2021 is $45,000
from 57600, company paid 27600 and tjis year dividend as $17400
so total $45000 is paid
Balance unpaid dividend is accumulated = $57,600 - $17,400 = $40,200
in 2022, Total dividend is $180,000
Dividend payable to preferred stock holder in 2020 = $57,600
so total amount allotted to preferred stock holder is = 57600+40200 = $97800
we know total dividend paid in 2022 is $180,000
so dividend payable to common stockholders is =180000- 97800 = $82,200
The presence of pollution in the dry cleaning industry leads in the long run to dynamic inefficiencies because:
A) people will buy fewer clothes that need dry cleaning than they otherwise would have.
B) people will develop substitutes for dry cleaning that are wasteful.
C) firms will be induced to leave the industry because of artificially high costs.
D) firms whose average private cost is less than price will stay in (or enter) the dry cleaning
industry even though their average social cost exceeds price.
E) firms whose average private cost exceeds the price will exit (or fail to enter) the dry
cleaning industry even though their average social cost is less than price.
Answer:
D) firms whose average private cost is less than price will stay in (or enter) the dry cleaning
industry even though their average social cost exceeds price.
Explanation:
When there is pollution as a result of the daily business, then it involves a huge social cost, as you cause harm to public.
But company's do not consider it in making the decision for business, as it generally do not impact the business in financial matters.
As even if the average cost is less then revenue the profit will be there to run the business.
But till the moment the financial impact is not strong of the social cost the pollution will not affect.
Many former employees at AlphaEnergy, an energy trading and supply company, had a large
part of their portfolio invested in AlphaEnergyʹs stock. These employees were bearing a high
degree of ________ risk.
A) unsystematic
B) systematic
C) market-specific
D) non-diversifiable
Answer:
Letter A is correct. Unsystematic risk.
Explanation:
Unlike systematic risk, which is an inherent market risk, unsystematic risk is inherent in a specific sector or company.
The case in point concerns the investment of former AlphaEnergy employees, which is a unsystematic risk, as the investment risk in single-company shares includes regulatory changes, management changes, loss of market due to competition and withdrawal of the product from the market.
To reduce this type of risk, investors should seek diversification in their stock portfolio.
Tang Company accumulates the following data concerning raw materials in making its finished product: (1) Price per pound of raw materials—net purchase price $3.04, freight-in $0.49, and receiving and handling $0.23. (2) Quantity per gallon of finished product—required materials 3.50 pounds, allowance for waste and spoilage 0.80 pounds. Compute the following. (Round answers to 2 decimal places, e.g. 1.25.) (a) Standard direct materials price per pound of raw materials. $ (b) Standard direct materials quantity per gallon. pounds (c) Total standard materials cost per gallon. $ Click if you would like to Show Work for this question: Open Show Work
Answer:
a) price per pound: 3.76 dollars
b) 4.30 pounds
c) standard cost: std raw material quantity * std price
4.30 * $3.76 = $16.168
Explanation:
Raw material cost: we must include all the necessary cost to get theraw material ready for use:
3.04 raw materials +0.49 fregiht +0.23 handling= 3.76 total cost
Pounds per gallon of finished product: we must inclde the allowance because, iof we input less gallon we aren't ending with a gallon of finished product.
3.50 + 0.80 allowance = 4.30 pounds
Answer:
a. 3.76
b.4.30
c.16.168
Explanation:
a. 3.04 raw materials +0.49 freight +0.23 handling= 3.76 total cost
b. 3.50 + 0.80 allowance = 4.30 pounds
c. 4.30 * $3.76 = $16.168
Issuers of coupon bondsmake a single payment of principal when the bonds matures, but multiple payments of interest over the life of the bond.make a single payment of interest and principal.make multiple payments of principal, but a single payment of interest.make a single payment of principal at the time the bond is issued and multiple payments of interest over the life of the bond.You purchase a two-year $1000 face value bond at par. The bond has a 6% coupon rate.However, do to cashflow problems, the company misses the first coupon payment, but pays both coupons payments in year 2. What is your rate of return?0.05830.06530.03000.06000.0428
Answer:Make a single payment of principal when the bonds matured but multiple payment of interest over the life of the bond.
2.0600
Explanation:
Bonds normally has a life of span from one upward for which interest will be paid to the investors as compensation for use of their fund and the principal sum will be refunded on the expiration of the bond life.
The return on a bond is fixed as specified in the bond contract the inability to make payment as at when due may not affect the return obtainable from the bond initial contract.
Tower Company planned to produce 3,000 units of its single product, Titactium, during November. The standards for one unit of Titactium specify six pounds of materials at $.30 per pound. Actual production in November was 3,100 units of Titactium. There was a Unfavorable materials price variance of $380 and an Favorable materials quantity variance of $120. Based on these variances, one could conclude that: a. more materials were purchased than were used. b. more materials were used than were purchased. c. the actual cost per pound for materials was less than the standard cost per pound. d. the actual usage of materials was less than the standard allowed.
Answer:
d. the actual usage of materials was less than the standard allowed.
Explanation:
For evaluating the price or quantity variance, we do not take into consider the number of quantity purchased, instead we focus on the number of quantity actually being used for manufacturing the targeted unit. So, we can easily eliminate the first two options.
Now, as per the question, there was an unfavourable material price variance of $380. That means, the budgeted price for the material is less than the actual price for manufacturing the product. However, the third option exactly contradicts the above situation.
The correct option is (d), because the actual usage of material was less than the budgeted one, which gives the favourable quantity variance of $120.
Pincus Associates uses the allowance method to account for bad debts. During 2021, its first year of operations, Pincus provided a total of $156,000 of services on account. In 2021, the company wrote off uncollectible accounts of $6,300. By the end of 2021, cash collections on accounts receivable totaled $132,300. Pincus estimates that 10% of the accounts receivable balance at 12/31/2021 will prove uncollectible.
Required:
1. & 2. What journal entry did Pincus record to write off uncollectible accounts during 2021 and to recognize bad debt expense for 2021? (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answer:
What journal entry did Pincus record to write off uncollectible accounts during 2021
Dr Allowance for Uncollectible Accounts $ 6,300
Cr Accounts receivable $ 6,300
What journal entry did Pincus record to recognize bad debt expense for 2021?
Dr Bad Debt Expense $ 8,040
Cr Allowance for Uncollectible Accounts $ 8,040
Explanation:
Pincus provided a total of $156,000 of services on account.
Dr Accounts receivable $ 156,000
Cr Sales $ 156,000
In 2021, the company wrote off uncollectible accounts of $6,300
Dr Allowance for Uncollectible Accounts $ 6,300
Cr Accounts receivable $ 6,300
By the end of 2021, cash collections on accounts receivable totaled $132,300.
Dr Cash $ 132,300
Cr Accounts receivable $ 132,300
Balances on Accounts 31.12.2012 before adjustment
Accounts receivable CREDIT $ 17,400
Allowance for Uncollectible Accounts DEBIT $ 6,300
Pincus estimates that 10% of the accounts receivable balance at 12/31/2021 will prove uncollectible.
Dr Bad Debt Expense $ 8,040
Cr Allowance for Uncollectible Accounts $ 8,040
If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the % of estimated value.
Because the company already has a DEBIT balance ($6,300) in the Allowance for Doubtful Accounts it's necessary to register an entry that COMPLEMENT ($8,040) the existing value and reflect the value estimated as bad debts ($1,740).
Bad Debt Expense = $8,040 - $6,300 = $1,740
It's necessary to reflect $1,740 in the Allowance for Uncollectible Accounts as Credit, so we need an entry of $8,040.
The following information is from Amos Company for the year ended December 31, 2019.
a. Retained earnings at December 31, 2018 (before discovery of error), $858,000.
b. Cash dividends declared and paid during the year, $11,000.
c. Two years ago, it forgot to record depreciation expense of $45,600 (net of tax benefit).
d. The company earned $209,000 in net income this year.
Required :
Prepare a statement of retained earnings for Amos Company.
Answer:
Explanation:
The preparation of the statement of retained earnings for Amos Company is shown below:
Retained earnings at December 31, 2018 (before discovery of error) $858,000
Less: Depreciation expense two years ago -$45,600
Add: net income $209,000
Less: Cash dividends declared and paid during the year -$11,000
Retained earnings at December 31, 2019 $1,010,400
A cap-and-trade program 31 1 Multiple Choice eBook 0 assigns a property right to the atmosphere 0 mandates that every firm individually cut its emissions to below a certain level. 0 assigns a property right to polluting the atmosphere. 0 is easy to establish and enforce.
Answer:
Option 3. Assigns a property right to pollute the atmosphere
Explanation:
It makes a cap on the pollution and the permits are transferable so that it assign how much to pollutes means assigning property rights to the firms to pollute.
Everyone is not required to reduce pollution if the firm can buy permits to pollute.