Assume that you are part of the accounting team for Logan Digital. The company currently expects to sell 362 units for total revenue of $16,300 each month. Logan Digital estimates direct materials costs of $3,150, direct labor costs of $4,200, variable overhead costs of $2,100, and variable selling and administrative costs of $1,050. Fixed costs of $4,800 are also expected, which includes fixed overhead and selling and administrative costs. Using this information, complete the contribution margin income statement shown below.
Logan Digital is examining cost behavior patterns. Your recommendation is to first determine the break-even point in units. First, calculate the contribution margin (CM) per unit (rounded to the nearest dollar).
Next, complete the formula below to determine the break-even units.
Total Fixed Costs / Contribution Margin per Unit = Units
A profit-volume graph helps managers to visualize the relationship between profits and units sold. The data for Logan Digital has been used to construct the profit-volume graph below. The purple points (diamond symbols) plot the profit line. The operating loss is the shaded area bordered by the red points (cross symbols). The operating profit is the area bounded by the green points (triangle symbols). Graph the correct profit-value graph.
APPLY THE CONCEPTS: Effect of Changes to Sales Price, Variable Costs and Fixed Costs
Now consider each of the following scenarios for Logan Digital. Calculate the contribution margin (CM) per unit, rounded to nearest dollar, and the new break-even point in units, rounded to the nearest whole unit, for each scenario separately.
Scenario 1 Scenario 2 Scenario 3
Logan will dispose of a machine in the factory. The depreciation on that equipment is $500 per month. After some extensive market research, Logan has determined that a sales price increase of $2 per unit will not affect the sales volume and will be effective immediately. Logan has been experiencing quality problems with a materials supplier. Changing suppliers will improve the quality of the product but will cause direct materials costs to increase by $1 per unit.
Answers
Full question attached
Answer and Explanation:
Please find attached
Related Questions
Use the information in the ledger accounts.
Cash Nov. 1 144,000
Nov. 8 40,320
Nov. 25 14,400
Nov. 30 1,680
Land Nov. 8 84,000
Building Nov. 8 70,320
Office Equipment Nov. 15 3,840
Nov. 21 576
Vehicles Nov. 30 11,280
Notes Payable Nov. 25 14,400
Nov. 8 114,000
Nov. 30 9,600
Accounts Payable Nov. 21 576
Nov. 15 3,840
Capital Stock
Nov. 1 144,000
Prepare a trial balance for Avenson Insurance Company dated November 30.
Answers
Answer:
Avenson Insurance Company
Trial Balance as at 30 November
Debit Credit
$ $
Cash 1,680
Land 84,000
Building 70,320
Office Equipment 21 576
Vehicles 11,280
Notes Payable 9,600
Accounts Payable 3,840
Capital Stock 144,000
Total $188,856 $157,440
Explanation:
A trial balance is prepared as at the end of the financial year. It is used to check the arithmetical accuracy of double entry.
Consider only the balances at the date of financial year end - November 30.
Newland Company reported retained earnings at December 31, 2019, of $310,000. Newland had 200,000 shares of common stock outstanding at the beginning of 2020. Determine retained earnings balance. The following transactions occurred during 2020.
1. An error was discovered. In 2015, depreciation expense was recorded at $70,000, but the correct amount was $50,000.
2. A cash dividend of $0.50 per share was declared and paid.
3. A 5% stock dividend was declared and distributed when the market price per share was $15 per share.
4. Net income was $285,000.
Prepare a retained earnings statement for 2020.
Answers
Answer:
Retained earnings = $345,000
Explanation:
Particulars Amount
Retained earnings December 31,2019 $310,000
Less: Cash dividend $100,000
(200000 * $0.50)
Less: Stock dividend $150,000
(200,000*5%*$15)
$60,000
Add: Net income $285,000
Retained earnings $345,000
Retained earnings, December 31,2019 $310,000
Less: Cash dividend -$100,000 ($200,000 × 0.50)
Less: Stock dividend -$150,000 ($200,000 × 5% × 15)
Add: Net income $285,000
Retained earnings $345,000
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Megan, a human resource manager, recently approved the hiring of five summer interns. She will use ________ to decide which departments would benefit from the interns’ employment. As production manager, part of Jennifer’s job is to determine what raw materials will be needed to meet production needs. Sales forecasts may help Jennifer with this ______ function of management. Wesley’s company just began offering online ordering for their products. Wesley uses _______ to delegate tasks to each department that is affected.
Choose the management function being performed in each of the examples.
Example of managerial work Planning Organizing Leading Controlling
A construction project manager from Iron Horse
Construction uses a team of experts to design the
development of a new property on the top of a
very steep ridge.
The team includes geotechnical consultants, erosion
control specialists, and contractors. Jessica Lee,
director of global employer brand and communications
at Marriott International, realizes the mobile app created
by a vendor does not integrate with the company's
existing software.
George Steinbrenner transferred his passion for winning
to everyone in the New York Yankees organization.
His famous quote is, "Winning is the most important thing
in my life, after breathing. Breathing first, winning next."
Taco Bell CEO, Brian Niccol, considers what the technical
and logistical needs would be in order to offer delivery to
customers.
Answers
Answer:
FIRST QUESTION:
Organizing
Planning
Organizing
SECOND QUESTION:
Explanation:
FIRST QUESTION
Megan, a human resource manager, recently approved the hiring of five summer interns. She will use ___Organizing ____ to decide which departments would benefit from the interns’ employment. As production manager, part of Jennifer’s job is to determine what raw materials will be needed to meet production needs. Sales forecasts may help Jennifer with this___ Planning __ function of management. Wesley’s company just began offering online ordering for their products. Wesley uses ____Organizing___ to delegate tasks to each department that is affected.
Management functions involves process, action taken by the management to achieve the goals of the organization effectively. They are:
Planning
Organizing
Controlling
and others
✓Organizing in management can described as dividing task between departments, work group . It involves human resources allocation within the organization.
✓Planning on management inolves steps, ways that are deviced to carried out actions in an organization in future time inorder to achieve the goals of the organization.
✓Controlling are ways management use to monitor the set goals of the organization, is a way to supervise the running of the organization from all departments and level of the organization to efficiency.
✓Leading involves setting example for the follower to follow, it's a way in which leader in organization influence the worker/employee to achieve the organizational goals.
SECOND QUESTION
1)A construction project manager from Iron Horse Construction uses a team of experts to design the development of a new property on the top of a very steep ridge. The team includes geotechnical consultants, erosion
control specialists, and contractors. ( EXAMPLE OF ORGANIZING)
2)Jessica Lee,
director of global employer brand and communications at Marriott International, realizes the mobile app created by a vendor does not integrate with the company's existing software.
."(EXAMPLE OF CONTROLLING)
3)George Steinbrenner transferred his passion for winning to everyone in the New York Yankees organization.
His famous quote is, "Winning is the most important thing in my life, after breathing. Breathing first, winning next(EXAMPLE OF LEADING)
4)Taco Bell CEO, Brian Niccol, considers what the technical
and logistical needs would be in order to offer delivery to customers.(EXAMPLE OF PLANNING)
The management functions that is performed in different examples are as follows :
1. Megan - organizing
2. As production manager, Jennifer - planning
3. Wesley’s company - organizing
4. A construction project manager - organizing
5. Jessica Lee - Controlling
6. George Steinbrenner - Leading
7. Taco Bell CEO - Planning
Management Functions
Management functions are defined as a set of functions or disciplines which is used to run an organization. It consists of : planning, leading, organizing, staffing and controlling.
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can someone plz help me with this idk what to do for it
Answers
Answer: its a baby. 2 hours
Explanation:
love u
Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be appropriate are presently on the market. The company has determined the following (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1)Machine A could be purchased for $48,000. It will last 10 years with annual maintenance costs of $1,000 per year. After 10 years the machine can be sold for $5,000.Machine B could be purchased for $40,000. It also will last 10 years and will require maintenance costs of $4,000 in year three, $5,000 in year six, and $6,000 in year eight. After 10 years, the machine will have no salvage value.Required:Assume an interest rate of 8% properly reflects the time value of money in this situation and that maintenance costs are paid at the end of each year. Ignore income tax considerations. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.)Calculate the present value of Machine A & Machine B. Which machine Esquire should purchase?
Answers
Answer: Machine B because it has the lower Present Value
Explanation:
Machine A= Present Value of income - Present Value of Costs
Present value of Income;
Sold for $5,000 after 10 years.
= 5,000/ (1 + 8%)^10
= $2,315.97
Present Value of Costs;
Purchased for $48,000.
Maintenance of $1,000 per year for years.
Present value of maintenance= 1,000 * Present value factor of annuity, 10 years, 8%
= 1,000 * 6.7101
= $6,710.10
Machine A Present Value
= 2,315.97 - 6,710.10 - 48,000
= -$52,394
Machine BNo salvage value.
Present Value of costs
Purchased for $40,000.
Present value of maintenance = (4,000 / (1 + 8%)^3) + (5,000 / ( 1 + 8)^6) + (6,000 / ( 1 + 8%)^8)
= -$9,567.79
Present Value = -40,000 - 9,567.79
= -$49,568
Alto Corporation sold two capital assets this year. The first sale resulted in a $13,000 capital gain, and the second sale resulted in a $41,000 capital loss. Alto was incorporated five years ago. Four years ago, Alto recognized $5,000 of net capital gain. Three years ago, Alto recognized $10,000 of net capital gain. Two years ago and last year, Alto recognized no net capital gains.
Required:
Using a 21 percent tax rate, compute Alto's tax refund from the carryback of its current year capital loss. Compute Alto's capital loss carryforward into next year.
Answers
Answer:
A. Tax refund $2,100
B. $18,000
Explanation:
A. Calculation for Alto's tax refund from the carryback of its current year capital loss
Based on the information given we were told that Alto has the amount of $28,000 ( 13,000-41,000) as a net capital loss that is non deductible this year which means Alto can
carry the loss back 3 years in order for Alto to deduct against net capital gain in those 3years.
Secondly Alto can as well remove the amount of $10,000 capital loss that was carryback against capital gain 3 years ago in order to have the amount of $2,100 as tax refund which is calculated as ($10,000 × 21%)
B. Computation of Alto's capital loss carryforward into next year.
Alto’s capital loss carryforward = ($28,000 − $10,000).
Alto’s capital loss carryforward =$18,000
Therefore Alto’s capital loss carryforward will be $18,000
what's your favorite holiday and why?
Answers
Answer:
Summer holiday
no coldness
beach time
camping
travel
Answer: Christmas
Explanation:
I think this holiday in particular brings everyone together. Huge festivities are all around and about as well.
What is a "debt-to-income" ratio?
OA. How much money you have to make every year in your job.
OB. How much money you owe in total versus how much you make.
O C. How much money you have to pay back on your income.
How much money you owe on your student loan compared with how much
OD.
you want to make in your job.
Answers
Dodie Company completed its first year of operations on December 31. All of the year's entries have been recorded except for the following: At year-end, employees earned wages of $4,000, which will be paid on the next payroll date in January of next year. At year-end, the company had earned interest revenue of $1,500. The cash will be collected March 1 of the next year.
Required: 2. Prepare the required adjusting entry for transactions (a) and (b). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Answers
Answer:
A. Dr Wages expense 4,000
Cr Wages payable 4,000
B. Dr Interest receivable 1,500
Cr Interest revenue 1,500
Explanation:
Preparation of Journal entries
A. Based on the information given we were told that the company employees earned wages of the amount of $4,000, which will be paid on in January of next year which means that the Journal entry will be:
Dr Wages expense 4,000
Cr Wages payable 4,000
B. Based on the information given we were told that the company had earned the amount of $1,500 as interest revenue which means that the Journal entry will be recorded as:
Dr Interest receivable 1,500
Cr Interest revenue 1,500
research how consumers might use dispute resolution to resolve conflicts with businesses.
Answers
Answer:
The two most popular types of dispute resolution are mediation and arbitration. In mediation, a neutral third party — a mediator — helps you and the other party try to resolve the problem through facilitated dialogue. However, it's up to you and the other party to reach an agreement.
Explanation:
Answer:
what I researched is that
Explanation:
Explanation.
Which action is the best example of appropriate e-mail use at work?
providing urgent updates
sending meeting reports
sharing personal finances
giving criticism to someone
Answers
Answer:
B
Explanation:
Took the test
Answer:
The answer is B.) Sending meeting reports
Explanation:
E-mail is a great tool to use when you want to:
* document an event or an agreement. For example, “Thanks for agreeing to meet with my intern tomorrow morning.”
* send data and information in the form of files.
* provide updates that are not time critical. For example, “I wanted to let you know that the graphic design team expects to finish their changes by Monday.”
Now that you have had some time to think about appropriate ways to use e-mail, next you will learn about some inappropriate uses for e-mail.
I hope this helps. Have a happy day.
If a firm's beta was calculated as 1.6 in a regression equation, a commonly-used adjustment technique incorporating a weighting on long-run beta of 1.0 would provide an adjusted beta of
Answers
Answer: between 1 and 1.6
Explanation:
The Market Beta is 1.0 which is why in the long run, betas will equal 1 and so will move steadily towards 1 overtime.
The adjustment technique will therefore show a beta between 1 and 1.6 because the 1.6 will move on to 1 overtime.
To explain, the adjustment technique is as follows;
Adjusted beta = 2/3(sample beta) + 1/3(1)
= 2/3(1.6) + 1/3
= 1.4
The adjusted beta of 1.4 is between 1 and 1.6.
Katie, a single taxpayer, is a shareholder in Engineers One, a civil engineering company. This year, Katie’s share of net business income from Engineers One is $200,000 (net of the associated for AGI self-employment tax deduction). Assume that Katie’s allocation of wages paid by Engineers One to its employees is $300,000 and her allocation of Engineers One’s qualified property is $150,000 (unadjusted basis of equipment, all purchased within past three years). Assume Katie has no other business income and no capital gains or qualified dividends. Her taxable income before the deduction for qualified business income is $400,000.
Required:
A. Calculate Katie’s deduction for qualified business income.
B. Assume the same facts provided above, except Katie’s net business income from Engineers One is $400,000 (net of the associated for AGI self-employment tax deduction), and her taxable income before the deduction for qualified business income is $350,000.
Answers
Answer:
A) Katie's maximum deduction is $200,000 x 20% = $40,000
But we must check that her deduction meets 3 requirements:
cannot exceed 50% of her earned wages = $300,000 x 50% = $150,000 ✓ requirement metcannot exceed 25% of her earned wages + 2.5% of qualified property = ($300,000 x 25%) + ($150,000 x 2.5%) = $78,750 ✓ requirement metcannot exceed 20% of taxable income = $400,000 x 20% = $80,000 ✓ requirement metB) Katie's maximum deduction is $400,000 x 20% = $80,000, but since her net business income is higher than her taxable income, she must calculate 20% x $350,000 (taxable income) = $70,000 (same as requirement 3 in previous answer)
Question 9 of 10
How should an annual business license fee be recorded in a journal entry?
A. As a credit, because it is an increased liability
B. As a credit, because it creates equity
C. As a debit, because it is an increased expense
D. As a debit, because it is a loss
SNBMIT
Answers
Answer:
Explanation:
As a debit, because it is an increased expence
Consider two neighboring island countries called Euphoria and Contente. They each have 4 million labor hours available per week that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor.Country Rye Jeans(Bushels per hour of labor)(Pairs per hour of labor)Euphoria 5 20Contente 8 16 Initially, suppose Contente uses 1 million hours of labor per week to produce rye and 3 million hours per week to produce jeans, while Euphoria uses 3 million hours of labor per week to produce rye and 1 million hours per week to produce jeans. Consequently, Euphoria produces 15 million bushels of rye and 20 million pairs of jeans, and Contente produces 8 million bushels of rye and 48 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces.Euphoria's opportunity cost of producing 1 bushel of rye is ________ of jeans, and Contente's opportunity cost of producing 1 bushel of rye is ____________ of jeans. Therefore, __________ has a comparative advantage in the production of rye, and___________ has a comparative advantage in the production of jeans.Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce ________million bushels per week, and the country that produces jeans will produce_________million pairs per week.
Answers
Explanation:
here is an explanation and solution to your question
For Euphoria:
The opportunity cost of producing a unit of rye in terms of jeans =20/5 = 4
for contente:
The opportunity cost of producing a unit of rye in terms of jeans = 16/8 = 2
opportunity cost of producing 1 unit of jean in terms of unit of rye:
for euphoria = 5/20 = 1/4
for contente = 8/16 = 1/2
1.
Euphoria's opportunity cost of producing a a bushel of rye is 4 pairs of jeans.
contentes opportunity cost of producing a bushel of rye is 2 pairs of jeans.
2.
contente has comparative advantage in producing rye
euphoria has comparative advantage in jeans production
3
contente produces 8 bushels of rye so with 4 million hours of labor = 8x4 = 32 million bushels in a week.
euphoria 20 pairs of jean in a week, using 4 million hours of labor. 20x4 = 80 pairs of jean a week
A parent transfers inventory with a cost of $25,000 to its subsidiary at a transfer price of $40,000. The subsidiary resold 50% of this transferred inventory to outsiders before year-end. For the current year consolidated financial statement, how much gross profit should be deferred by Consolidation Entry G
Answers
Answer: $7,500
Explanation:
The profit made from the transfer is;
= 40,000 - 25,000
= $15,000
The subsidiary however only managed to resell 50% of this. The Consolidated entry therefore will show that 50% of the inventory remains so profit will have to be deferred till it is sold. The amount deferred is;
= 15,000 * 50%
= $7,500
Suppose someone offered to sell you a note calling for payment of $1,225 15 months from today (456 days). They offer to sell it to you for $950. You have $950 in a bank time deposit which pays a 12% nominal rate with a daily (365 days a year) compounding, and you plan to leave the money in the bank unless you buy the note? Recommend action based on checking the decision in three ways:
(1) by comparing your future value if you buy the note versus leaving your money in the bank,
(2) by comparing the PV of the note with your current bank account, and
(3) by comparing the EAR on the note versus that of the bank account.
Answers
Answer:
(1) by comparing your future value if you buy the note versus leaving your money in the bank,
the future value of the note = $1,225
the future value of the time deposit = $950 x (1 + 0.12/365)⁴⁵⁶ = $1,103.62
the note has the highest future value
(2) by comparing the PV of the note with your current bank account, and
PV of note = $1,225 / (1 + 0.12/365)⁴⁵⁶ = $1,054.48 (I used the same interest rate than the time deposit)
present value of your time deposit = $950
the note has the highest present value
(3) by comparing the EAR on the note versus that of the bank account.
EAR of the note using the future value formula:
1,225 = 950 x (1 + r)¹°²⁵
(1 + r)¹°²⁵ = 1,225 / 950 = 1.2895
¹°²⁵√(1 + r)¹°²⁵ = ¹°²⁵√1.2895
1 + r = 1.2255
r = 0.2255 = 22.55%
EAR time deposit = (1 + 0.12/365)³⁶⁵ - 1 = 12.75%
the note's effective annual rate is higher
Brown Company's bank statement for September 30 showed a cash balance of $1,350. The company's Cash account in its general ledger showed a $995 debit balance. The following information was also available as of September 30.
a. A $125 debit memoranda is included with the bank statement and dealt with a customer's check for $100 marked NSF and returned to Brown Company by the bank. In addition, the bank charged the company's a $25 processing fee.
b. The September 30 cash receipts, $1,250, were placed in the bank's night depository after banking hours on that date and this amount did not appear on the September 30 bank statement.
c. A $15 debit memorandum for checks printed by the September 30 bank was included with the canceled checks.
d. Outstanding checks amounted to $1,145.
e. A customer's note for $900 was collected by the bank. A collection fee of $25 was deducted by the bank and the difference was deposited in the account.
f. Included with the canceled checks was a check for $275, drawn on another company, Browne Inc.
Answers
Omitted question. Prepare Bank reconciliation for Brown's company for September 30.
Answer:Please see explanation for answers.
Explanation:
Brown Company"s Bank Reconciliation for September 30
Cash Balance as per bank statement $ 1,350
Add:
Deposit in transit + $ 1,250
Bank error in recording of check + $ 275
Deduct:
Outstanding checks - $ 1,145
Adjusted bank balance $ 1,730
Cash balance per books $995
Add: Electronic transfer collected by bank
(900-25) +$875
Deduct:
Bank service charges (25+15) - $40
NSF Check -$100
Adjusted book balance $ 1,730
This program consists of three lottery-funded scholarships for Florida high school graduates who demonstrate high academic achievement and enroll in eligible Florida public or private postsecondary institutions.
Financial Aid
Florida Pre-Paid College Plan
College Board
Bright Futures Scholarship
Answers
Answer: Bright Future Scholarship
Explanation:
since it’s for only Florida schools this can be the only answer.
Answer:
bright future
Explanation:
Took the test and got it right
Vaughn Manufacturing has a weighted-average unit contribution margin of $30 for its two products, Standard and Supreme. Expected sales for Vaughn are 60000 Standard and 40000 Supreme. Fixed expenses are $1500000. How many Standards would Vaughn sell at the break-even point?
Answers
Answer:
30,000 units
Explanation:
The computation of the break even point is shown below:
But before that we need to do the following calculations
Standard product sales mix % is
= 60,000 ÷ (60,000 + 40,000)
= 60,000 ÷ 100,000
= 60%
Total Break even in units is
= $1,500,000 ÷ $30
= 50,000
Now
Break even units for Standard product is
= 50000 x 60%
= 30,000 units
The readings suggest there are certain strategies for pricing new products, which is decidedly more difficult than adjusting prices to existing products. The new product pricing approaches are:SkimmingPenetrationEveryday low pricesThe pricing approaches discussed for existing products are:Cost plusMarkupMarkdownOdd-even pricingPrestige pricingPrice liningDemand backward pricingLeader pricingSealed bid pricingGoing-rate pricingPrice bundlingCaptive pricingProduct mix pricingTwo-part pricingPromotional pricingThere is no shortage of pricing approaches, and as customers, we are exposed to all of them at some time or another in our purchasing processes.Choose one of the pricing approaches and discuss the product, the pricing approach, and why you think it is the most appropriate approach for that particular product given your consumer characteristics. Be sure you understand the definition of your approach before tackling this topic.Many of you will be tempted to use promotional pricing since it is the easiest to demonstrate. So promotional pricing is not "for sale" (pun intended). Pick one of the other approaches for this topic.
Answers
Explanation:
Penetration Pricing:
It is the marketing approach that consists of a strategy to insert a new product in the market offering lower prices.
This strategy would help a new company, for example, to enter the market and already achieve good demand for its products and services, in addition to this strategy being a barrier of entry for new competitors.
Penetration pricing is the most appropriate marketing strategy for companies that need to reach a market place and reach a large number of people, which is achieved when offering a product with quality and benefits that can create consumer needs for customers, which makes it possible for the company to fulfill its objective and then be able to establish itself in the market and then increase prices so that the demand for the products is maintained.
This strategy is generally used by retailers and organizations that offer products offered in bulk, such as food, cosmetics, automobiles, etc.
what is the difference between accrual and realization concept in accounting
Answers
Realization:- in layman terms realization is the receiving of the money that had accrued. For example, when you pay the auto fare, that is realization
Cougar Plastics Company has been operating for three years. At December 31 of last year, the accounting records reflected the following:
Cash $ 23,000
Accounts payable $ 19,000
Investments (short-term) 2,100
Accrued liabilities payable 3,100
Accounts receivable 4,600
Notes payable (short-term) 5,200
Inventory 27,000
Notes payable (long-term) 41,000
Notes receivable (long-term) 2,700
Common stock 10,700
Equipment 57,000
Additional paid-in capital 96,300
Factory building 91,000
Retained earnings 36,600
Intangibles 4,500
During the current year, the company had the following summarized activities:
a. Purchased short-term investments for $8,600 cash.
b. Lent $6,300 to a supplier who signed a two-year note.
c. Purchased equipment that cost $24,000; paid $4,900 cash and signed a one-year note for the balance.
d. Hired a new president at the end of the year.
e. The contract was for $86,000 per year plus options to purchase company stock at a set price based on company performance.
f. Issued an additional 2,300 shares of $0.50 par value common stock for $19,000 cash.
g. Borrowed $19,000 cash from a local bank, payable in three months.
h. Purchased a patent (an intangible asset) for $1,100 cash.
i. Built an addition to the factory for $29,000; paid $8,700 in cash and signed a three-year note for the balance.
j. Returned defective equipment to the manufacturer, receiving a cash refund of $2,400.
Prepare a classified balance sheet at December 31of the current year.
Answers
Answer:
a. Purchased short-term investments for $8,600 cash.
Dr short term investments 8,600
Cr cash 8,600
b. Lent $6,300 to a supplier who signed a two-year note.
Dr notes receivable 6,300
Cr cash 6,300
c. Purchased equipment that cost $24,000; paid $4,900 cash and signed a one-year note for the balance.
Dr equipment 24,000
Cr cash 4,900
Cr notes payable 19,100
d. Hired a new president at the end of the year.
no entry
e. The contract was for $86,000 per year plus options to purchase company stock at a set price based on company performance.
no entry
f. Issued an additional 2,300 shares of $0.50 par value common stock for $19,000 cash.
Dr cash 19,000
Cr common stock 115
Cr additional paid in capital 18,885
g. Borrowed $19,000 cash from a local bank, payable in three months.
Dr cash 19,000
Cr notes payable 19,000
h. Purchased a patent (an intangible asset) for $1,100 cash.
Dr patent 1,100
Cr cash 1,100
i. Built an addition to the factory for $29,000; paid $8,700 in cash and signed a three-year note for the balance.
Dr building 29,000
Cr cash 8,700
Cr notes payable 20,300
j. Returned defective equipment to the manufacturer, receiving a cash refund of $2,400.
Dr cash 2,400
Cr equipment 2,400
Cougar Plastics CompanyBalance SheetFor the year ended December 31, 202xAssetsCurrent assets:
Cash $33,800
Accounts receivable $4,600
Inventory $27,000
Investments (short-term) $10,700
Total current assets $76,100
Long term investments:
Notes receivable $9,000
Total long term investments $9,000
Property, plant and equipment:
Equipment $78,600
Factory building $120,000
Total P, P & E $198,600
Intangible assets:
Intangibles $4,500
Patent $1,100
Total intangible assets $5,600
Total assets $289,300
Liabilities and stockholders' equityCurrent liabilities:
Accounts payable $19,000
Accrued liabilities payable $3,100
Notes payable (short-term) $43,300
Total current liabilities $65,400
Long term liabilities:
Notes payable $61,300
Total long term liabilities $61,300
Stockholders' equity:
Common stock $10,815
Additional paid-in capital $115,185
Retained earnings $36,600
Total stockholders' equity $162,600
Total liabilities + stockholder's equity $289,300
The following selected transactions were completed by Air Systems Company during January of the current year. Air Systems Company uses the periodic inventory system.
Jan. 2 Purchased $18,200 of merchandise on account, FOB shipping point, terms 2/15, n/30.
5 Paid freight of $190 on the January 2 purchase.
6 Returned $2,750 of the merchandise purchased on January 2.
13 Sold merchandise on account, $37,300, FOB destination, 1/10, n/30. The cost of goods sold was $22,400.
15 Paid freight of $215 for the merchandise sold on January 13.
17 Paid for the purchase of January 2 less the return and discount.
23 Received payment on account for the sale of January 13 less the discount.
Journalize the entries to record the transactions of Air Systems Company.
Answers
Answer:
Date Account Titles and Explanation Debit Credit
2-Jan Purchase $18,200
Accounts payable $18,200
5-Jan Freight In $190
Cash $190
6-Jan Accounts payable $2,750
Purchased return and allowance $2,750
13-Jan Account receivable $37,300
Sales $37,300
Cost of goods sold $22,400
Merchandise Inventory $22,400
15-Jan Delivery expenses $215
Cash $215
17-Jan Account payable $15,450
Purchase discount $309
Cash $15,141
23-Jan Cash $36,927
Sales discount $373
Account receivables $37,300
The amount of cash received = $37,300 - {$37,300*1%} = 36,927
The amount of sale discount = $37,300 - $ 36,927 = $373
Harper Chicken Corporation processes and packages chicken for grocery stores. It purchases chickens from farmers and processes them into two different products: chicken drumsticks and chicken steak. From a standard batch of 25,000 pounds of raw chicken that costs $17,500, the company produces two parts: 4,400 pounds of drumsticks and 6,200 pounds of breast for a processing cost of $3,648. The chicken breast is further processed into 5,400 pounds of steak for a processing cost of $3,400. The market price of drumsticks per pound is $1.85 and the market price per pound of chicken steak is $5.40. If Harper decided to sell chicken breast instead of chicken steak, the price per pound would be $2.70.
Required:
a-1. Allocate the joint cost to the joint products, drumsticks and breasts, using weight as the allocation base.
a-2. Calculate the gross margin for each product.
a-3. If the drumsticks are producing a loss, should that product line be eliminated?
b-1. Reallocate the joint cost to the joint products, drumsticks and breasts, using relative market values as the allocation base.
b-2. Calculate the gross margin for each product.
c-1. Should Martin further process chicken breasts into chicken steak? (Use the assumption made in requirement b-1).
c-2. How would the profit be affected by your answer in c-1?
Answers
Answer:
Please see answers below
Explanation:
1a . Allocate the joint cost to the joint products
The allocation rate will be computed as follows:
Allocation cost = Total cost / Total number of pounds ( Drumstick + Breast)
= $17,500 + $3,648 / 4,400 + 6,200
= $21,148 / 10,600
= $2.0
Allocation costs of
Drumstick = Allocation rate × Drumstick
= $2.0 × 4,400
= $8,800
Chicken breast = Allocation rate × Chicken breast
= $2.0 × 6,200
= $12,400
Total cost = $8,800 + $12,400 = $21,200
2a. Market price per pound of drumstick $1.85
Market price per pound of chicken breast $2.70
The revenue for drumstick is computed as;
= 4,400 × $1.85
= $8,140
The revenue for chicken breast is computed as;
= 6,200 × $2.70
= $16,740
Compute gross margin.
Gross margin = Revenue cost - Allocation cost
Drumstick = $8,140 - $8,800 = ($660)
Chicken breast = $16,740 - $12,400 = $4,340
3a. No. This is because the drumstick can be eliminated due to the loss they are incurring, hence contribute to the total joint cost
3b. Compute reallocation rate as;
Rate = Total allocation / Total market value of drumstick + Chicken breast
= $21,200 / (4,400 × $1.85) + (6,200 × $2.7)
= $21,200 / $8,140 + $16,740
= $21,200 / $24,880
= $0.85
Compute the market cost of;
Drumstick = $0.85 × 4,400 × $1.85
= $6,919
Chicken breast = $0.85 × 6,200 × $2.70
= $14,229
3b2 Compute gross profit margin for each
Drumstick = $8,140 - $6,919
= $1,221
Chick breast = $16,740 - $14,220
= $2,520
Bren Co.'s beginning inventory at January 1, 2005 was understated by $26,000, and its ending inventory was overstated by $52,000. As a result, Bren's cost of goods sold for 2005 was:
Answers
Answer:
Change in COGS= $78,000 increase
Explanation:
We know that to calculate the cost of goods sold, we use the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
If the beginning inventory is understated, it will increase the value of COGS.
If the ending inventory is overstated, the COGS increase.
Change in COGS= 26,000 + 52,000
Change in COGS= $78,000 increase
What should be the initial markup percent in a department that has the following figures: Net sales $320,000 Markdowns 7,800 Expenses 105,000 Employee discounts 1,950 Shortages 2,750 Alterations 1,025 Cash discounts 950 Profit 7.5%
Answers
Answer:
42.58%
Explanation:
Calculation for What should be the initial markup percent
First step is to calculate the gross margin using this formula
Gross Margin = Profit + Expenses,
Let plug in the formula
Gross margin = 105,000+24,000
Gross margin= 129,000
Second step is to calculate the reduction using this formula
Reduction = Markdown + Employee discount + Shortages
Let plug in the formula
Reduction = 7,800+1,950+2,750
Reduction = 12,500
Last step is to calculate the Intial Markup Percentage using this formula
Intial Markup Percentage = ( Gross margin + Reduction + Alteration - Cash Discount) / (Sales + Reduction)
Let plug in the formula
Intial Markup Percentage = (129,000+12,500+1,025-950) / (320,000+12,500)
Intial Markup Percentage = =141,575/332,500
Intial Markup Percentage =42.58%
Therefore What should be the initial markup percent is 42.58%
Find an approximate annual dollar-weighted yield received by Abiyote for the three-year period from January 1, 1994 until January 1, 1997 using
Answers
Answer:
The information about Abiyote's investment is missing, so I looked for similar questions:
Abiyote's time weighted rate of return = [(1 + HP₁ ) x (1 + HP₂) x (1 + HP₃)]¹/³ - 1
HP₁ = ($28,212 - $24,500) / $24,500 = 0.1515
HP₂ = ($15,892 - $18,212) / $18,212 = -0.1274
HP₃ = ($30,309 - $23,892) / $23,892 = 0.2686
TWRR = [(1.1515 x 0.8726 x 1.2686)¹/³ - 1 = 0.08426 = 8.43%
You calculate TWRR in the same way as you calculate geometric mean.
On February 1, 2018, Wolf Inc. issued 10% bonds dated February 1, 2018, with a face amount of $270,000. The bonds sold for $323,440 and mature in 20 years. The effective interest rate for these bonds was 8%. Interest is paid semiannually on July 31 and January 31. Wolf's fiscal year is the calendar year. Wolf uses the effective interest method of amortization.
Required:
1. Prepare the journal entry to record the bond issuance on February 1, 2018.
2. Prepare the entry to record interest on July 31, 2018.
3. Prepare the necessary journal entry on December 31, 2018.
4. Prepare the necessary journal entry on January 31, 2019.
Answers
Answer:
Required 1
Cash $323,440 (debit)
Bonds Payable $323,440 (credit)
Required 2
Interest Expense $12,938 (debit)
Bond Payable $12,938 (credit)
Required 3
J1
Interest Expense $12,961 (debit)
Bond Payable $12,961 (credit)
Interest accrued on Bond
J2
Bond Payable $12,938 (debit)
Cash $12,938 (credit)
Interest Cash outflow
Required 4
J1
Interest Expense $12,961 (debit)
Bond Payable $12,961 (credit)
Interest accrued on Bond
J2
Bond Payable $12,938 (debit)
Cash $12,938 (credit)
Interest Cash outflow
Explanation:
First, determine the coupon payments as follows :
FV = ($270,000)
PV = $323,440
N = 20
P/yr = 1
I = 8%
PMT = ?
Using a Financial Calculator, the annual coupon payments will be $27,042 ($12,938 semi-annually).
July 31,2018
Effective Interest Calculation
Effective Interest = $323,440 × 8% × 1/2
= $12,938
Use the following data to calculate the current ratio. Koonce Office Supplies Balance Sheet December 31, 2014
Cash $130,000 Accounts payable $100,000
Accounts receivable $100,000 Salaries and wages payable $20,000
Inventory $110,000 Mortgage payable 160,000
Prepaid insurance $60,000 Total liabilities 320000
Stock investments $170,000 Common stock $240,000
Land 180000 Retained earnings $500,000
Buildings 210000 Total stockholders' equity 740000
Less: Accumulated depreciation ($40,000) Total liability and 1.060,000
$170,000 stockholder equity
Trademarks $140,000
Total assets $1.060,000
a. 2.50:1
b. 2.13:1
c. 1.44:1
d. 2.86:1
Answers
Answer:
a. 2.50:1
Explanation:
Calculation for Current ratio
First step is to Calculate the Total current assets :
Cash $130,000
Accounts receivables $100,000
Inventory $110,000
Prepaid insurance $60,000
Total current assets (a) $400,000
Second step is to Calculate the Total current liabilities :
Accounts payable $140,000
Salaries and wages payable $20,000
Total current liabilities (b) $160,000
Now let find the current ratio using this formula
Current ratio = Total current assets / Total current liabilities
Let plug in the formula
Current ratio =$400,000 / $160,000
Current ratio =2.50 : 1
Therefore the Current ratio will be 2.50 : 1