Answer:
The correct answer to the question above is OPTION B (The EEOC can bring a lawsuit enforcement action against Spectacular despite Nemo's agreeing to arbitration).
Explanation:
Companies (mostly private) usually desire their employees to sign an arbitration agreement giving the fact that it removes the power of an employee to take the employer to court on certain claims instead the claims go through an arbitration proceeding that happens outside of court.
EEOC (Equal Employment Opportunity Commission) enforces the laws of the state that prohibits discrimination against employees by their employers because of where they come from, their religion, their marital status, sex, their citizenship, and a whole lot more.
So, the EEOC can bring a lawsuit enforcement action against Spectacular despite Nemo's agreeing to arbitration because the EEOC itself was not a party to the arbitration agreement between Spectacular and Nemo, and the U. S. Supreme Court gave EEOC the power to exercise its enforcement powers.
Returns on ABC, Inc. are forecast to be the following: State Probability Return Boom 0.25 30% Normal 0.65 15% Bust 0.10 -14% What is the standard deviation of this company’s stock? Returns on ABC, Inc. are forecast to be the following: State Probability Return Boom 0.25 30% Normal 0.65 15% Bust 0.10 -14% What is the standard deviation of this company’s stock? 11.82% 11.56% 11.32% 11.07% 10.83%
Answer:
Standard deviation=11.82%
Explanation:
Standard deviation is measure of the total risks of an investment. It measures the volatility in return of an investment as a result of both systematic and non-systematic risks. Non-systematic risk includes risk that are unique to a company like poor management, legal suit against the company .
Standard deviation is the sum of the squared deviation of the individual return from the mean return under different scenarios
Expected return (r) = (30% × 0.25 ) + (15% × 0.65) + (-14%× 0.10)=15.8%
Outcome (R- r )^2 × P
Boom (30%-15.8)^2× 0.25 = 50.05
Normal (15%-15.8)^2×0.65 = 0.47
Bust ( 13.6%- 15.8)^2 ×0.1= 89.10
139.63
Standard deviation =√139.63= 11.82%
Standard deviation=11.82%
General Mattress Company makes Memory Foam mattresses, a mass-market high-volume product, and Magnetic Levitation mattresses, a premium low-volume product. The company uses a traditional cost allocation with a single cost pool. It is planning to implement activity-based costing (ABC). After implementing ABC, the company will likely find that the traditional cost allocation: Group of answer choices
Answer:
Answer is explained in the explanation section below.
Explanation:
First of all, this question is not complete and lacks the group of answer choices. However, I have found that question with complete options on the internet.
So,
The Correct option is: D
Option D = Not enough information
Reasoning:
For overestimated or underestimated or not full information required i.e. cost under traditional method and cost under activity based cost method , both information required for compare methods cost under each method.
Under Activity base costing all indirect cost is applied as per activities use by each product but under traditional method only one key factor use for applied overheads i.e. direct labor hours or machine hours etc.
From the account balances listed below, prepare a schedule of cost of goods manufactured for Sampson Manufacturing Company for the month ended December 31, 2013. Account BalancesFinished goods inventory, December 31 $42,000Factory supervisory salaries 12,000Income tax expense 18,000Raw materials inventory, December 1 12,000Work in process inventory, December 31 15,000Sales salaries expense 14,000Factory depreciation expense 8,000Finished goods inventory, December 1 35,000Raw materials purchases 95,000Work in process inventory, December 1 20,000Factory utilities expense 6,000Direct labor 70,000Raw materials inventory, December 31 19,000Sales returns and allowances 5,000Indirect labor 21,000SAMPSON MANUFACTURING COMPANYCost of Goods Manufactured ScheduleFor the Month Ended December 31, 2013Work in process, December 31 ?Direct materials Raw materials inventory, December 1 ? Raw materials purchases ? ? ? Less: Raw materials inventory, December 31 ? ? ? ? ? ? ? ? ? ? ? ? ? ? ? ?? ?? ?Less: Work in process, December 31 ?Cost of goods manufactured ?
Answer:
$210,000
Explanation:
Preparation of a schedule of cost of goods manufactured for Sampson Manufacturing Company for the month ended December 31, 2013
SAMPSON MANUFACTURING COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended December 31, 2013
Work in process inventory,December 1 $ 20,000
Direct materials :
Raw Materials Inventory, December 1 $ 12,000
Raw Materials Purchases $95,000
Raw materials avaialble for use $ 107,000
($12,000+$95,000)
Less Raw Materials Inventory, December 31 ($ 19,000)
Raw materials used in production $ 88,000
($107,000-$19,000)
Direct labor $ 70,000
Factory (or) Manufacturing overhead :
Factory Supervisory salaries $ 12,000
Factory Depreciation expense $ 8,000
Factory Utilities expense $ 6,000
Indirect labor $ 21,000
Total Factory (or) Manufacturing overhead $ 47,000
($12,000+$8,000+$6,000+$21,000)
Total Manufacturing cost $ 205,000
($88,000+$70,000+$47,000)
Total Cost of work in process $ $225,000
($20,000+$205,000)
Less: Work in process inventory, December 31 ($ 15,000)
Cost of Goods Manufactured$210,000
Therefore The cost of goods manufactured for Sampson Manufacturing Company for the month ended December 31, 2013 will be $210,000
Answer:
Cost of goods manufactured 210,000
Explanation:
SAMPSON MANUFACTURING COMPANY
Cost of Goods Manufactured Schedule
For the Month Ended December 31, 2013
Raw materials inventory, December 1: 12,000
+ Raw materials purchases 95,000
Less Raw materials inventory, December 31 19,000
Materials Used 88000
Direct labor 70,000
Prime Cost: 158000
Indirect labor 21,000
Factory supervisory salaries 12,000
Factory depreciation expense 8,000
Factory utilities expense 6,000
Total Manufacturing Costs 205,000
Add Work in process inventory, December 1 20,000
Cost of goods available for manufacturing 225,000
Less Work in process inventory, December 31 15,000
Cost of goods manufactured 210,000
Add Finished goods inventory, December 1 35,000
Cost of goods available for sale 245,000
Less Finished goods inventory, December 31 $42,000
Cost of goods sold 203,000
Sales returns and allowances 5,000 and Income tax expense 18,000 are included in the income statement
3. Simone is a marketing consultant hired to review the product sales for a new high-end barista machine line. The product line has four variations, selling in four specialty store regions. To clearly show where each variation is selling best and in which regions, she plans to provide a color-scaled chart using percentage by type and location. What is the name of the chart she will be using
Answer:
heat map
Explanation:
The map that Simone will use will be a Heat map, which is a graph that uses colors for the understanding of the information, that is, according to the color suggested by the map, it is possible to identify patterns that are desired, as in the case of the question above, where each variation sells best and in which regions.
In the heat map, each color corresponds to a value, and this tool is widely used in digital marketing, for understanding customer behaviors on websites, for example.
Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:
a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,225.
b. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its warehouse.
c. On April 8, Mathis returned $800 of the merchandise which had originally cost Reece $500.
d. On April 10, Mathis paid Reece the balance due.
Required:
Prepare the journal entry to record the April 10 payment to Mathis Company.
Answer:
Mathis Company
Journal Entry:
April 10:
Debit Accounts payable (Reece Company) $2,300
Credit Cash $2,254
Credit Cash Discounts $46
To record the payment on account.
Explanation:
1) Data and Transaction Analysis:
Mathis Company
a. April 1: Inventory $3,100 Accounts payable (Reece Company) $3,100
with credit terms of 2/10, n/30.
b. April 1: Freight-in $250 Cash $250
c. April 8: Accounts payable (Reece Company) $800 Inventory $800
d. April 10: Accounts payable (Reece Company) $2,300 Cash $2,254 Cash Discounts $46
2) The payment on April 10 is for $2,300 ($3,100 - $800). The 2% cash discount is applied on the $2,300 to arrive at a Cash payment of $2,254 ($2,300 - $46).
The Massoud Consulting Group reported net income of $1,382,000 for its fiscal year ended December 31, 2021. In addition, during the year the company experienced a positive foreign currency translation adjustment of $380,000 and an unrealized loss on debt securities of $45,000. The company’s effective tax rate on all items affecting comprehensive income is 25%. Each component of other comprehensive income is displayed net of tax.
Required:
Prepare a separate statement of comprehensive income for 2021.
Answer: Check attachment
Explanation:
Kindly check the attachment.
Note that:
Foreign currency adjustment will be:
= $380000 × (1 - 25%)
= $380,000 × 75%
= $380,000 × 0.75
= $285,000
Loss on debt securities:
= $45000 × (1 - 25%)
= $45000 × 75%
= $45000 × 0.75
= $33750
Tom operates an illegal drug-running operation and incurred the following expenses: Salaries $ 75,000 Illegal kickbacks 20,000 Bribes to border guards 25,000 Cost of goods sold 160,000 Rent 8,000 Interest 10,000 Insurance on furniture and fixtures 6,000 Utilities and telephone 20,000 Which of the above amounts reduces his taxable income?A) $0.B) $160,000.C) $279,000.D) $324,000.E) None of the above.
Answer:
B) $160,000
Explanation:
The computation of the amount that reduced the taxable income is shown below:
Here Cost of goods sold of $160,000 would be treated as a negative item in determining gross income instead allowed as a deduction.
And, For a drug dealer, all other deductions would be disallowed
So the option B is correct
What is purpose of public relations?
Answer:
Explanation:
The aim of public relations by a company often is to persuade the public, investors, partners, employees, and other stakeholders to maintain a certain point of view about it, its leadership, products, or of political decisions.
Answer:
Hey mate......
Explanation:
This is ur answer.....
The aim of public relations by a company often is to persuade the public, investors, partners, employees, and other stakeholders to maintain a certain point of view about it, its leadership, products, or of political decisions.
Hope it helps!
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Oriole Company had these transactions pertaining to stock investments: Feb. 1 Purchased 2700 shares of Ayayai Company (10%) for $68850 cash. June 1 Received cash dividends of $3 per share on Ayayai stock. Oct. 1 Sold 1890 shares of Ayayai stock for $51630 less brokerage fees of $600. The entry to record the sale of the stock would include a
Answer and Explanation:
The journal entry for recording the sale of the stock is shown below:
Cash Dr ($51,630 - $600) $51,030
To Investment ($68,850 × 1890 ÷ 2700) $48,195
To Gain on sale of investment $2,835
(Being the sale of the stock is recorded)
Here the cash is debited as it increased the assets, the investment and gain is credited as it reduced the assets but increased the revenue
Employer is desperate to hire sales people. Employer conducts initial telephone interviews and offers employment immediately over the telephone. In making the offer, the employer will always inflate the guaranteed sales commissions that the employee can expect by 200-300%. A potential employee takes the job, relocates and soon realizes that she was misled in terms of compensation. Which of the following is most true? A. A claim by the employee will probably be based on promissory estoppel B. A claim by the employee will probably be based on breach of contract C. Employers are permitted to exaggerate figures to entice people to apply D. Under the doctrine of ‘caveat canem’ an employee bears the risk of being misled in the employment screening
Answer:
A. A claim by the employee will probably be based on promissory estoppel
Explanation:
Promissory estoppel doctrine refers to trying to enforce a promise. In other words, a person that makes a promise is responsible for performing it as long as:
the promissor made a promise and the promisee acted because of it the promisee relied on the promisethe promisee suffers a loss due to the unfulfilled promisehas 8.3 million shares of common stock outstanding. The current share price is $53, and the book value per share is $4. also has two bond issues outstanding. The first bond issue has a face value of $70 million and a coupon rate of 7 percent and sells for 108.3 percent of par. The second issue has a face value of $60 million and a coupon rate of 7.5 percent and sells for 108.9 percent of par. The first issue matures in 8 years, the second in 27 years. (a) What are capital structure weights on a book value basis
Answer:
Equity = 20.34%Debt = 79.66%Explanation:
Book value of stock:
= 8,300,000 * 4
= $33,200,000
Total book value = BV of stock + BV of bonds
= 33,200,000 + 70,000,000 + 60,000,000
= $163,200,000.
Weight of Equity:
= 33,200,000 / 163,200,000
= 20.34%
Weight of debt:
= (70,000,000 + 60,000,000) / 163,200,000
= 79.66%
Aloma, a university graduate who started a successful business, wants to start an endowment in her name that will provide scholarships to CE students. She wants the scholarship to provide $11,000 per year and expects the first one to be awarded on the day she fulfills the endowment obligation. If Aloma plans to donate $250,000, what rate of return must the university realize in order to award the annual scholarship forever
Answer:
the rate of return is 4.60%
Explanation:
The computation of the rate of return is shown below;
= Scholarship provided per year ÷ (Expected donated amount - Scholarship provided per year)
= $11,000 ÷ ($250000 - $11,000)
= $11,000 ÷ $239,000
= 4.60%
Hence, the rate of return is 4.60%
A short-term debt is the same thing as a
debt.
A. Current
B. Liquid
C. Tragic
Answer:
the answer is A. Current
Sandhill Co. provides the following information about its postretirement benefit plan for the year 2020. Service cost $ 43,200 Contribution to the plan 9,100 Actual and expected return on plan assets 10,900 Benefits paid 19,100 Plan assets at January 1, 2020 101,400 Accumulated postretirement benefit obligation at January 1, 2020 321,800 Discount rate 8 % Compute the postretirement benefit expense for 2020.
Answer:
The correct answer is "58,044".
Explanation:
The given values are:
Service cost,
= $43,200
Accumulated postretirement benefit obligation,
= 321,800
Actual and expected return,
= 10,900
Discount rate,
= 8%
The interest cost will be:
= [tex]321,800\times 8 \ percent[/tex]
= [tex]25,744[/tex]
The Postretirement benefit expense will be:
= [tex]Service \ cost +Interest \ cost-Actual \ and \ expected \ return[/tex]
= [tex]43,200+25,744-10,900[/tex]
= [tex]58,044[/tex]
career prep b spreadsheet assignment
anyone have a copy of the assignment willing to email it to me, pls don't answer if you don't have a copy you are willing to give
Answer:
no i do not have a copy or a page i also need one if you have it can you add it plz
Answer:
I dont saadly.
Explanation:
As the supervisor at a fast-food restaurant chain you notice that Tonya, one of your most experienced cashiers, is having trouble balancing her cash register at the end of each shift. You and others have been staying past closing time to resolve the discrepancy. After observing her performance for several days, you notice she seems to be making careless mistakes, such as giving the wrong change. You wonder if she has become bored. What would be the best way to share your observations with Tonya?
Answer:
hey i see that you have been making a lot of mistakes latly are you okay
Explanation:
Try not to be rude
The Step Company has the following information for the year just ended: Budget Actual Sales in units 15,000 14,000 Sales $ 150,000 $ 147,000 Less: Variable Expenses 90,000 82,600 Contribution Margin $ 60,000 $ 64,400 Less: Fixed Expenses 35,000 40,000 Operating Income $ 25,000 $ 24,400 The Step Company's sales-price variance is: Multiple Choice $7,000 unfavorable. $7,500 unfavorable. $7,500 favorable. $7,000 favorable. $3,000 unfavorable.
Answer:
$7,000 Favourable
Explanation:
Calculation to determine what The Step Company's sales-price variance is:
Using this formula
Sales Price Variance = (Actual Sales Price – Budgeted Sales Price) * Actual Sales Volume
Let plug in the formula
Sales Price Variance=[($ 147,000÷14,000)-(150,000/15,000)]*14000
Sales Price Variance = ($10.5 – $10) * 14000
Sales Price Variance = $7,000 Favorable
Therefore The Step Company's sales-price variance is: $7,000 Favorable
The Step Company has the following information for the year just ended: Budget Actual Sales in units 15,000 14,000 Sales $ 150,000 $ 147,000 Less: Variable Expenses 90,000 82,600 Contribution Margin $ 60,000 $ 64,400 Less: Fixed Expenses 35,000 40,000 Operating Income $ 25,000 $
The PC Works assembles custom computers from components supplied by various manufacturers. The company is very small and its assembly shop and retail sales store are housed in a single facility in a Redmond, Washington, industrial park. Listed below are some of the costs that are incurred at the company. Required: For each cost, indicate whether it would most likely be classified as direct materials, direct labor, manufacturing overhead, selling, or an administrative cost.The cost of a hard drive installed in a computer. a. Direct labor cost b. Direct materials cost c. Manufacturing overhead cost d. Selling cost e. Administrative cost
Answer: b. Direct materials cost
Explanation:
Direct materials are integral to the production of a good because they form part of the good being produced.
This is a computer company which assembles computers. Computers need a hard drive in order to function. The hard drive being installed in a computer will therefore count as a direct material because it will form part of the computer assembled.
Capalbo Corporation bases its predetermined overhead rate on the estimated labor-hours for the upcoming year. At the beginning of the most recently completed year, the company estimated the labor-hours for the upcoming year at 52,000 labor-hours. The estimated variable manufacturing overhead was $2.78 per labor-hour and the estimated total fixed manufacturing overhead was $1,192,360. The actual labor-hours for the year turned out to be 52,600 labor-hours. The predetermined overhead rate for the recently completed year was closest to:______.
a. $2.78
b. $25.45
c. $25.71
d. $22.93
Answer:
Predetermined overhead Absorption rate = $22.93. per labour hour
Explanation:
Predetermined Overhead absorption rate(POAR) = Estimate overhead /Estimated labour hours
Estimated overhead = $1,192,360
Estimated labour hours =52,000 hours
Overhead absorption rate = $1,192,360/52,000 hours =$22.93 per labour hour
Predetermined overhead Absorption rate = $22.93. per labour hour
An entrepreneur uses _____ when taking money from a savings account to finance a new business.
friends and family
investors
loans
self-financing
Answer:
An entrepreneur uses Self-financing when taking money from a savings account to finance a new business.
n the balance sheet at the end of its first year of operations, Dinty Inc. reported an allowance for uncollectible accounts of $82,700. During the year, Dinty wrote off $30,600 of accounts receivable it had attempted to collect and failed. Credit sales for the year were $2,220,000, and cash collections from credit customers totaled $1,760,000.What bad debt expense would Dinty report in its first-year income statement
Answer:
the bad debt expense reported is $113,300
Explanation:
The computation of the bad debt expense that should be reported in the first year income statement is shown below:
= Allowance for uncollectible accounts + write off account receivable
= $82,700 + $30,600
= $113,300
Hence, the bad debt expense reported is $113,300
Classify each item as an asset, liability, common stock, revenue, or expense.
a. Issuance of ownership shares.
b. Land purchased.
c. Amounts owed to suppliers.
d. Bonds payable.
e. Amount earned from selling a product.
f. Cost of advertising.
Answer:
A)Common Stock
B) Asset
C)liability
D)liability
E)Revenue
F)expenses
Explanation:
Common stock can be regarded as kind ofcorporate equity ownership, which is one of the type of security.
Asst can be regarded item or property that is been owned by a business or individual which has a value and has future benefits.
liability can be regarded as things that a business or individuals owes, this could be in terms of money.
Expense can be regarded as
type of expenditure which is been seen from the income statement, it is been subtracted from revenue
You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. The yield to maturity on this bond is 4.6 percent. Assume semiannual compounding periods. What is the price of the bond
Answer:
Zero-cupon bond= $3,357.14
Explanation:
Giving the following information:
Par value= $10,000
Number of years to maturity= 24*2= 48 semesters
YTM= 0.046/2= 0.023
To calculate the price of the bond, we need to use the following formula:
Zero-cupon bond= [face value/(1+i)^n]
Zero-cupon bond= [10,000 / (1.023^48)]
Zero-cupon bond= $3,357.14
Sheridan Company traded in a manual pressing machine for an automated pressing machine and gave 437000 cash. The old machine cost $459000 and had a net book value of $324000. The old machine had a fair value of $310000. Which of the following is the correct journal entry to record the exchange assuming comercial substance?
a. Equipment 68,000
Loss on Exchange 11,000
Accumulated Depreciation 22,000
Equipment 93,000
Cash 8,000
b. Equipment 68,000
Equipment 60,000
Cash 8,000
c. Cash 8,000
Equipment 60,000
Loss on Exchange 11,000
Accumulated Depreciation 22,000
Equipment 101,000
d. Equipment 123,000
Accumulated Depreciation 22,000
Equipment 93,000
Cash 8,000
Answer and Explanation:
The correct journal entry is shown below
Equipment ($310,000 + $437,000) $747,000
Loss on exchange ($324,000 - $310,000) $14,000
Accumulated depreciation ($459,000 - $324,000) $135,000
To Equipment $459,000
To Cash $437,000
(Being the exchange is recorded)
Danks Corporation purchased a patent for $405,000 on September 1, 2019. It had a useful life of 10 years. On January 1, 2021, Danks spent $99,000 to successfully defend the patent in a lawsuit. Danks feels that as of that date, the remaining useful life is 5 years. What amount should be reported for patent amortization expense for 2021?
Answer:
Amortization Expense for year 2021 $90,000
Explanation:
The computation of the amount that should be reported for patent amortization for the year 2021 is shown below:
But before that following calculations need to be done
The value of the patent as of 31st Dec, 2020
Purchase Value as of Sep 1,2019 $405000
Less:- Amortization Expense for the year 2019 $13,500
($405000 ÷ 10 × 4 ÷ 12)
Less:- amortization expense for the year 2020 $40500 ($405,000 ÷ 10)
Value of patent as on 1st Jan, 2021 $351,000
Add:- fees to defend $99000
New Book Value for the year 2021 $450,000
Now Remaining Useful Life 5 years
So,
Amortization Expense for year 2021 $90,000 ($450,000 ÷ 5)
What should be the primary objective of managers?
Answer:
to manage everything in that business
Answer:
In servant leadership, the organization recognizes employees as experts in their field and work to help them work efficiently. No matter which type of management style is used by an organization, the main objective of managers is to help employees reach company goals and maintain company standards and policies.
HOPE U UNDERSTAND
Sales-Related and Purchase-Related Transactions for Seller and Buyer Using Perpetual Inventory System The following selected transactions were completed during April between Swan Company and Bird Company: Apr. 2. Swan Company sold merchandise on account to Bird Company, $19,900, terms FOB shipping point, 1/10, n/30. Swan Company paid freight of $435, which was added to the invoice. The cost of the merchandise sold was $12,500. 8. Swan Company sold merchandise on account to Bird Company, $25,000, terms FOB destination, 2/15, n/30. The cost of the merchandise sold was $15,000. 8. Swan Company paid freight of $650 for delivery of merchandise sold to Bird Company on April 8. 12. Bird Company paid Swan Company for purchase of April 2. 18. Swan Company paid Bird Company a refund of $2,000 for defective merchandise in the April 2 purchase. Bird Company agreed to keep the merchandise. 23. Bird Company paid Swan Company for purchase of April 8. 24. Swan Company sold merchandise on account to Bird Company, $11,200, terms FOB shipping point, n/45. The cost of the merchandise sold was $6,700. 26. Bird Company paid freight of $280 on April 24 purchase from Swan Company. Required: 1. Journalize the April transactions for Bird Company (the buyer). If an amount box does not require an entry, leave it blank.
Answer:
1. Bird Company (Buyer)
Apr-02 Dr Merchandise Inventory $20,335
Cr Accounts Payable $20,335
Apr-08 Dr Merchandise Inventory $25,000
Cr Accounts Payable $25,000
Apr-08 No entry
Apr-12 Dr Accounts Payable $20,335
Cr Cash $19,937
Cr Merchandise Inventory $ 398
Apr-18 Dr Cash $ 2,000
Cr Merchandise Inventory $ 2,000
Apr-23 Dr Accounts Payable $25,000
Cr Cash $24,750
Cr Merchandise Inventory $ 250
Apr-24 Dr Merchandise Inventory $11,200
Cr Accounts Payable $11,200
Apr-26 Dr Merchandise Inventory $280
Cr Cash $280
2.Swan Company (Seller)
Apr-02 Dr Accounts Receivable $20,335
Cr Sales Revenue $19,900
Cr Cash $435
Dr Cost of Goods Sold $12,500
Dr Merchandise Inventory $12,500
Apr-08 Dr Accounts Receivable $ 25,000
Cr Sales Revenue $ 25,000
Dr Cost of Goods Sold $15,000
Cr Merchandise Inventory $15,000
Apr-08 Dr Delivery Expense $650
Cr Cash $650
Apr-12 Dr Cash $19,937
Dr Sales Discounts $ 398
Cr Accounts Receivable $20,335
Apr-18 Dr Sales Returns and allowances $ 2,000
Cr Cash $ 2,000
Apr-23 Dr Cash $ 24,750
Dr Sales Discounts $ 250
Cr Accounts Receivable $25,000
Apr-24 Dr Accounts Receivable $11,200
Cr Sales Revenue $11,200
Dr Cost of Goods Sold $6,700
Cr Merchandise Inventory $6,700
Apr-26 No entry
Explanation:
1. Preparation of the journal entry for Bird Company (the buyer).
Bird Company (Buyer)
Apr-02 Dr Merchandise Inventory $20,335
Cr Accounts Payable $20,335
($19,900+$435)
Apr-08 Dr Merchandise Inventory $25,000
Cr Accounts Payable $25,000
Apr-08 No entry
Apr-12 Dr Accounts Payable $20,335
($19,900+$435)
Cr Cash $19,937
($20,334-$398)
Cr Merchandise Inventory $ 398
($19,900*2%)
Apr-18 Dr Cash $ 2,000
Cr Merchandise Inventory $ 2,000
Apr-23 Dr Accounts Payable $25,000
Cr Cash $24,750
($25,000-$250)
Cr Merchandise Inventory $ 250
(1%*$25,000)
Apr-24 Dr Merchandise Inventory $11,200
Cr Accounts Payable $11,200
Apr-26 Dr Merchandise Inventory $280
Cr Cash $280
2. Preparation of the journal entry for Bird Company the (Seller).
Swan Company (Seller)
Apr-02 Dr Accounts Receivable $20,335
($19,900+$435)
Cr Sales Revenue $19,900
Cr Cash $435
Dr Cost of Goods Sold $12,500
Dr Merchandise Inventory $12,500
Apr-08 Dr Accounts Receivable $ 25,000
Cr Sales Revenue $ 25,000
Dr Cost of Goods Sold $15,000
Cr Merchandise Inventory $15,000
Apr-08 Dr Delivery Expense $650
Cr Cash $650
Apr-12 Dr Cash $19,937
($20,335-$398)
Dr Sales Discounts $ 398
(2%*$19,900)
Cr Accounts Receivable $20,335
(19,900+435)
Apr-18 Dr Sales Returns and allowances $ 2,000
Cr Cash $ 2,000
Apr-23 Dr Cash $ 24,750
Dr Sales Discounts $ 250
(1%*25,000)
Cr Accounts Receivable $25,000
Apr-24 Dr Accounts Receivable $11,200
Cr Sales Revenue $11,200
Dr Cost of Goods Sold $6,700
Cr Merchandise Inventory $6,700
Apr-26 No entry
In its first month of operations, Literacy for the Illiterate opened a new bookstore and bought merchandise in the following order: (1) 400 units at $7 on January 1, (2) 600 units at $10 on January 8, and (3) 930 units at $11 on January 29. Assume 1,130 units are on hand at the end of the month. Calculate the cost of goods available for sale, cost of goods sold, and ending inventory under the (a) FIFO, (b) LIFO, and (c) weighted average cost flow assumptions. Assume perpetual inventory system and sold 800 units between January 9 and January 28. (Round your intermediate calculations to 2 decimal places.)
Answer:
(a) FIFO
Cost of Goods Sold = $6,800
Ending Inventory = $12,230
(b) LIFO
Cost of Goods Sold = $7,400
Ending Inventory = $11,630
(c) weighted average cost
Cost of Goods Sold = $7,040
Ending Inventory = $11,990
Explanation:
Perpetual inventory method ensures that cost of sales and inventory value is determined after each and every transaction.
FIFO
This method assumes that the units to arrive first, will be sold first. This means the cost of sales is based on the earlier (old) prices and inventory valuation is based on recent (later) prices.
Cost of Goods Sold = 400 x $7 + 400 x $10 = $6,800
Ending Inventory = 200 x $10 + 930 x $11 = $12,230
LIFO
This method assumes that the units to arrive last , will be sold first. This means the cost of sales is based on the recent (later) prices and inventory valuation is based on earlier (old) prices.
Cost of Goods Sold = 600 x $10 + 200 x $7 = $7,400
Ending Inventory = 200 x $7 + 930 x $11 = $11,630
Weighted Average Cost Method
A new unit cost is calculated with each and every purchase made. This new unit cost is then used to determine the cost of goods sold and the value of inventory.
New Unit Cost - 8 jan = (400 x $7 + 600 x $10) ÷ 1,000 = $8.80
New Unit Cost - 29 jan = (200x $8.80 + 930 x $11) ÷ 1,130 = $10.61
therefore,
Cost of Goods Sold = 800 x $8.80 = $7,040
Ending Inventory = 1,130 x $10.61 = $11,990
On January 1, 2021, the general ledger of 3D Family Fireworks includes the following account balances:Accounts Debit CreditCash $26,700 Accounts Receivable 15,000 Allowance for Uncollectible Accounts $ 3,600 Supplies 3,900 Notes Receivable (6%, due in 2 years) 18,000 Land 80,300 Accounts Payable 8,500 Common Stock 98,000 Retained Earnings 33,800 Totals $ 143,900 $ 143,900 During January 2021, the following transactions occur:January 2 Provide services to customers for cash, $49,100.January 6 Provide services to customers on account, $86,400.January 15 Write off accounts receivable as uncollectible, $3,300.January 20 Pay cash for salaries, $32,800.January 22 Receive cash on accounts receivable, $84,000.January 25 Pay cash on accounts payable, $6,900.January 30 Pay cash for utilities during January, $15,100.The following information is available on January 31, 2021.The company estimates future uncollectible accounts. The company determines $4,300 of accounts receivable on January 31 are past due, and 20% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 5% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)Supplies at the end of January total $950.Accrued interest revenue on notes receivable for January. Interest is expected to be received each December 31.Unpaid salaries at the end of January are $34,900.1) Prepare the journal entries for transactions.2) Choose the appropriate accounts to complete the company's income statement.
Answer:
3D Family Fireworks
1. Journal Entries for Transactions:
Jan. 2 Debit Cash $49,100
Credit Service Revenue $49,100
To record services rendered for cash.
Jan. 6 Debit Accounts Receivable $86,400
Credit Service Revenue $86,400
To record services rendered on account.
Jan. 15 Debit Allowance for Uncollectible Accounts $3,300
Credit Accounts Receivable $3,300
To record uncollectible written off.
Jan. 20 Debit Salaries Expense $32,800
Credit Cash $32,800
To record payment for salaries expense.
Jan. 22 Debit Cash $84,000
Credit Accounts Receivable $84,000
To record cash collected on accounted.
Jan. 25 Debit Accounts Payable $6,900
Credit Cash $6,900
To record payment on account.
Jan. 30 Debit Utilities Expense $15,100
Credit Cash $15,100
To record utilities expense paid.
Income Statement for the month ended January 31, 2021:
Service Revenue $135,500
Interest Revenue 1,080
Total Revenue $136,580
Salaries Expense $32,800
Utilities Expense 15,100
Bad Debts Expense 1,060 48,960
Net Income $87,620
Explanation:
a) Data and Calculations:
Trial Balance as of January 1, 2021:
Debit Credit
Cash $26,700
Accounts Receivable 15,000
Allowance for Uncollectible Accounts $3,600
Supplies 3,900
Notes Receivable (6%, due in 2 years) 18,000
Land 80,300
Accounts Payable 8,500
Common Stock 98,000
Retained Earnings 33,800
Totals $ 143,900 $ 143,900
Transaction Analysis:
Jan. 2 Cash $49,100 Service Revenue $49,100
Jan. 6 Accounts Receivable $86,400 Service Revenue $86,400
Jan. 15 Allowance for Uncollectible Accounts $3,300 Accounts Receivable $3,300
Jan. 20 Salaries Expense $32,800 Cash $32,800
Jan. 22 Cash $84,000 Accounts Receivable $84,000
Jan. 25 Accounts Payable $6,900 Cash $6,900
Jan. 30 Utilities Expense $15,100 Cash $15,100
Jan. 31 Adjustments:
Allowance for Uncollectibles:
$4,300 Allowance for Uncollectibles $860 ($4,300 * 20%)
$9,800: Allowance for Uncollectible $490 ($9,800 * 5%)
$14,100 Allowance for Uncollectible $1,350
Allowance for Uncollectibles
Account Titles Debit Credit
Beginning balance $3,600
Accounts receivable $3,300
Bad Debts Expense 1,060
Ending balance 1,350
Interest Receivable $1,080
Interest Revenue $1,080
Service Revenue:
Service Revenue $49,100
Service Revenue $86,400
Service Revenue $135,500
The Weimer Corporation wants to accumulate a sum of money to repay certain debts due on December 31, 2030. Weimer will make annual deposits of $125,000 into a special bank account at the end of each of 10 years beginning December 31, 2021. Assuming that the bank account pays 7% interest compounded annually, what will be the fund balance after the last payment is made on December 31, 2030
Answer:
the fund balance is $1,727,056.25
Explanation:
The computation of the fund balance is shown below:
Given that
PMT = $125,000
NPER = 10
RATE = 7%
PV = $0
The formula is shown below:
= -FV(RATE,NPER,PMT,PV,TYPE)
After applying the above formula, the fund balance is $1,727,056.25
Here basically the future value formula should be applied