Answer:
Denit Cash for $250,792; Debit Due from factors for $10,672; Debit Loss on Sale of receivables for $9,986; Credit Recourse liability for $4,650; and Credit Accounts receivable for $266,800.
Explanation:
The following are calculated first before preparing the journal entry:
Cash received = Factored amount * (100% - Finance charge percentage - Percentage reserved for probable adjustments) = $266,800 * (100% - 2% - 4%) = $250,792
Due from factors = Factored amount * Percentage reserved for probable adjustments = $266,800 * 4% = $10,672
Loss on Sale of receivables = (Factored amount * Finance charge percentage) + Fair value of recourse liability = ($266,800 * 2%) + $4,650 = $9,986
The journal entry will now appear as follows:
Date Account Titles and Explanation Debit ($) Credit ($)
15 Aug 2014 Cash 250,792
Due from factors 10,672
Loss on Sale of receivables 9,986
Recourse liability 4,650
Accounts receivable 266,800
(To record the sale of receivables.)
On January 2, Dixie, Inc., pays a salvage company $1,000 to haul away a machine costing $28,000 with accumulated depreciation of $28,000. Complete the necessary journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
No Date General Journal Debit Credit
1 Jan. 2 Gain on disposal of machinery 1,000
Accumulated depreciation 28,000
Answer:
Dr Accumulated depreciation-Machinery 28,000
Dr Loss on disposal 1000
Cr Cash 1000
Cr Machinery 28,000
Explanation:
Based on the information given the appropriate journal entry to record the transaction on On January 2 is :
On January 2
Dr Accumulated depreciation-Machinery 28,000
Dr Loss on disposal 1000
Cr Cash 1000
Cr Machinery 28,000
During Year 3, Anywhere, Inc. (AI) incurred the following product costs. Raw materials $ 78,000 Labor 94,288 Overhead 66,000 The Year 2 ending balance in the Work in Process (WIP) account was $34,000. Accordingly, this is the beginning WIP balance for Year 3. There were 125 units of product in beginning WIP inventory. AI started 1,940 units of product during Year 3. Ending WIP inventory consisted of 110 units that were 70 percent complete. Required Prepare a cost of production report by filling in the cells that are left blank.
Answer:
Units Complete 1955
Total Product Costs $ 272,288
$ 139.28 per EUP
Total Costs Accounted For = $ 272,292.4
Explanation:
Anywhere, Inc. (AI)
Physical Flow of Units
Beginning Units 125
Units Started 1940
Total units Available for Completion 2065
Less Ending Inventory 110
Units Complete 1955
Total Products Costs
Beginning Inventory Costs $34,000
Material Costs $ 78,000
Labor 94,288
Overhead 66,000
Total Product Costs $ 272,288
Cost Per Equivalents Units
Cost Per Equivalent Unit= Total Cost/ Equivalent Units
= 272288/1955
=139.277
= $ 139.28 per EUP
Costs Accounted For:
Cost Transferred to Finished Goods= ( 1955- 77=1878)*139.28= $261567.84
Ending Inventory Costs = (110*0.7=77)*139.28= 10724.39
Total Costs Accounted For = $ 272,292.4
Which is the almost the same as the given costs
Given Costs= $ 272,288
Costs Accounted For $ 272,292.4
The difference of $4 is due to rounding off.
Partially correct answer. Your answer is partially correct. Try again. On January 10, 2019, Sheffield Corp. sold merchandise on account to Concord Co. for $21,600, n/30. On February 9, Concord Co. gave Sheffield Corp. a 12% promissory note in settlement of this account. Prepare the journal entry to record the sale and the settlement of the account receivable. (Omit cost of goods sold entries.) (
Answer:
Dr Accounts receivable $21,600
Cr Sales revenue $21,600
Dr Notes receivable $21,600
Cr Accounts receivable $21,600
Explanation:
Preparation of the journal entry to record the sale and the settlement of the account receivable
Dr Accounts receivable $21,600
Cr Sales revenue $21,600
(Being to record Sales revenue)
Dr Notes receivable $21,600
Cr Accounts receivable $21,600
(Being to record settlement of the account receivable)
what is geography
[tex]draw \: the \: graph \: of \: \sin(x + 3) [/tex]
Answer and Explanation:
In a nutshell, we can say that geography is the science that studies physical space and its elements, and their relationship with human beings. This physical space, corresponds to the planet earth and everything that is formed in it and everything that is formed by it. This term also refers to outer space and all its elements. in this way, geography was able to determine the space between regions, the vegetative composition of a place, the urban composition of a place, the influence of the atmosphere on living beings, how the stars are formed, how the climate of a region is impacted by atmospheric changes, among others.
Blossom Chemicals Company acquires a delivery truck at a cost of $32,800 on January 1, 2022. The truck is expected to have a salvage value of $4,200 at the end of its 4-year useful life. Assuming the declining-balance depreciation rate is double the straight-line rate, compute annual depreciation for the first and second years under the declining-balance method.
Answer:
$16400
$8200
Explanation:
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life)
Depreciation factor = 2/4 = 0.5
Depreciation expense in year 1 = 0.5 x $32,800 = $16,400
Book value at the beginning of year 2 = $32,800 - $16,400 = $16400
Depreciation expense in year 2 = 0.5 x $16,400= $8200
Waterway Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms.
a. Shamrock Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms. 1. Shamrock Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $469. The standalone selling price of the tablet is $230 (the cost to Shamrock Company is $157). Shamrock Company sells the Internet access service independently for an upfront payment of $292. On January 2, 2017, Shamrock Company signed 100 contracts, receiving a total of $46,900 in cash.
b. Shamrock Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $574. Shamrock Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $145. Shamrock Company signed 220 contracts for Shamrock Bundle B on July 1, 2017, receiving a total of $126,280 in cash.
Required:
a. Prepare any journal entries to record the revenue arrangement for Headland Bundle A on January 2, 2017, and December 31, 2017.
b. Prepare any journal entries to record the revenue arrangement for Headland Bundle B on July 1, 2017, and December 31, 2017.
Answer:
Waterway or Shamrock Company
Journal Entries:
Bundle A:
Debit Cash $46,900
Credit Tablet Revenue $20,665
Credit Annual Internet Access Revenue $8,745
Credit Deferred Revenue: Internet Access $17,490
To record revenue from Bundle A.
Debit Cost of Sale of Tablets $15,700
Credit Tablet Inventory $15,700
To record the cost of tablets sold.
Bundle B:
Debit Cash $126,280
Credit Tablet Revenue $43,545
Credit Annual Tablet Service Plan $9,151
Credit Annual Internet Access Revenue $18,428
Credit Deferred Revenue: Service Plan $18,300
Credit Deferred Revenue: Internet Access $36,856
To record revenue from Bundle B.
Debit Cost of Sale of Tablets $34,540
Credit Tablet Inventory $34,540
To record the cost of tablets sold.
Explanation:
a) Data and Calculations:
Bundle A contract = $469
Tablet standalone selling price = $230 (Total = $23,000 ($230 * 100)
Cost of tablet = $157 (Total costs of 100 tablets = $15,700)
Internet access service standalone selling price = $292 (Total = $29,200)
Total standalone selling price per bundle = $522 (Total = $52,200)
Contracts signed = 100
Revenue received = $46,900
Revenue from Tablet = $23,000/$52,200 * $46,900 = $20,665
Revenue from Internet Access = $29,200/$52,200 * $46,900 = $26,235
Annual interest access = $8,745 ($26,235/3)
Bundle B contract = $574
Tablet standalone selling price = $230 (Total = $50,640 ($230 * 220)
Cost of tablet = $157 (Total costs = $34,540 ($257 * 220)
3-year Tablet Service Plan standalone selling price = $145 (Total = $31,900 ($145 * 220)
Internet access service standalone selling price = $292 (Total = $64,240 ($292 * 220)
Total standalone selling price per bundle = $667 (Total = $146,740 ($667 * 220)
Contracts signed = 220
Revenue received = $126,200
Revenue from Tablet = $50,600/$146,740 * $126,280 = $43,545
Revenue from 3-year Tablet Service Plan = $31,900/$146,740 * $126,280 = $27,452
Annual revenue = $9,151 ($27,452/3)
Revenue from Internet Access = $64,240/$146,740 * $126,280 = $55,283
Annual revenue from internet access = $18,428 ($55,283/3)
Product Pricing: Single Product
Sue Bee Honey is one of the largest processors of its product for the retail market. Assume that one of its plants has annual fixed costs totaling $12,000,000, of which $4,500,000 is for administrative and selling efforts. Sales are anticipated to be 800,000 cases a year. Variable costs for processing are $30 per case, and variable selling expenses are 25 percent of selling price. There are no variable administrative expenses. If the company desires a profit of $7,500,000, what is the selling price per case? Round answer to two decimal places.
$ 0 price per case
Answer: $72.50
Explanation:
Let the selling price per case be represented by x.
Based on the information you can in the question, we will have an equation as:
(80000 × x) = 12,000,000 + 7,500,000 + (800,000 × 30) + (0.25 × 800000x
800000x = 12,000,000 + 7,500,000
+ (800,000 × 30) + (0.25 × 800000x)
800000x = 43500000 + 200000x
Collect like terms
800000x - 200000x = 43,500,000
600,000x = 43500000
x = 43,500,000 / 600,000
x = 72.50
Selling price per case is $72.50
The plant manager has asked you to do a cost analysis to determine when currently owned equipment should be replaced. The manager stated that under no circumstances will the existing equipment be retained longer than two more years and that once it is replaced, a contractor will provide the same service from then on at a cost of $97,000 per year. The salvage value of the currently owned equipment is estimated to be $37,000 now, $30,000 in 1 year, and $19,000 two years from now. The operating cost is expected to be $85,000 per year. Using an interest rate of 10% per year, determine when the defending equipment should be retired. Annual Worth of Defender, Year 1
Answer:
Year 1 Annual Worth of Defender -$95,700
Explanation:
Calculation to determine when the defending equipment should be retired
Year 1 Total Annual worth=-$37,000(AP 10%,1)-$85,000+($30,000 (AP 10%,1)
Year 1 Total Annual worth=-$37,000(1.10)-$85,000+$30,000(1.000)
Year 1 Total Annual worth= -$95,700
Therefore Total Annual worth of currently owned equipment for year 1 is -$95,700
Year 2 Total Annual worth=-$37,000(AP 10%,2)-$85,000+($30,000 (AP 10%,2)
Year 2 Total Annual worth=-$37,000(0.57619)-$85,000+$19,000(0.47619)
Year 2 Total Annual worth=-$97,217
Therefore the Total Annual worth of currently owned equipment for year 2 is $-97,271
Therefore Based on the above calculation the
the economic service life of equipment will be year 1 reason been that Year 1 Total annual worth of costs of the amount of -$95,700 is lesser in a situation where the equipment is been retained for 1 year.
What is NOT an advantage of a corporation?
A Board and shareholders may make decision with little direct knowiedge of business
B Can continue operations indefinitely (business has a long life)
C .People can buy and sell their shares of ownership without the business ending
D Easy to raise capital by selling stocks or bonds
Answer:
a
Explanation:
I think , hope this helps
Which of the following is false regarding a section 83(b) election? Multiple Choice The election must be made within 30 days of the grant date. The election is an important tax-planning tool if the stock is expected to increase in value. The election freezes the value of the employee's compensation as of the grant date. If an employee leaves before the vesting date, any loss is limited to $3,000.
Answer:
D) If an employee leaves before the vesting date, any loss is limited to $3,000.
Explanation:
The 83(b) election can be regarded as
provision made under the Internal Revenue Code, which provide an option for an employee as well as startup founder to pay their taxes on the total fair market value of restricted stock within the granting time. 83(b) election can as well be applied to equity which is subjected to vesting, and Internal Revenue Service will be alerted so the body can tax the elector for the ownership at granting time instead of time of stock vesting.
It should be noted that in section 83(b) election
✓The election freezes the value of the employee's compensation as of the grant date.
✓The election must be made within 30 days of the grant date.
✓ The election is an important tax-planning tool if the stock is expected to increase in value.
On January 1, 2021, Gundy Enterprises purchases an office building for $305,000, paying $55,000 down and borrowing the remaining $250,000, signing a 9%, 10-year mortgage. Installment payments of $3,166.89 are due at the end of each month, with the first payment due on January 31, 2021.
Required:
a. Record the purchase of the building on January 1, 2021.
b. Complete the first three rows of an amortization schedule.
c. Record the first monthly mortgage payment on January 31, 2021.
d. How much of the first payment goes to interest expense and how much goes to reducing the carrying value of the loan?
Answer:
sgaifsiwfwiwwhwaauwh7w
Freemore Company has the following sales budget for the last six months of 2018: July $206,000 October $181,000 August 168,000 November 203,000 September 209,000 December 185,000 Sales are immediately due, however the cash collection of sales, historically, has been as follows: 55% of sales collected in the month of sale, 35% of sales collected in the month following the sale, 7% of sales collected in the second month following the sale, and 3% of sales are uncollectible. Cash collections for September are ________. $126,710 $199,930 $188,170 $173,750
Answer:
the cash collection for the September month is $188,170
Explanation:
The computation of the cash collection for the September month is given below:
= September collection + August collection + July collection
= $209,000 ×0.55 + $168,000 × 0.35 + $206,000 × 0.07
= $114,950 + $58,800 + $14,420
= $188,170
hence, the cash collection for the September month is $188,170
Therefore the third option is correct
You have just purchased a new DVD player to show videos to your customers. The DVD player costs $500, and you depreciate the machine at a rate of 25% each year. You can borrow money from the bank at 10%, or receive 6% for depositing money at the bank. The expected inflation rate in the coming year is 5%. You used the company's own funds to purchase the DVD player. The firm's user cost of capital for the first year is:__________.
A. $130
B. $150.
C. $155.
D. $175.
Answer: $130
Explanation:(.25 + .06 - .05)*500
The cost of capital for the DVD is $130. The correct answer is option A.
What is cost of capital?Cost of capital is a the minimum return that would be necessary for a company to justify undertaking a capital budgeting project.
Cost of Capital (k) = Cost of the DVD × ( Rate of depreciation + Borrowing rate + rate of deposit)
k = $500( 0.25+0.10+0.06)
= $130
Therefore, the cost of capital for the first is $130.
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Eco Cycle, an eco-friendly bicycle manufacturer has developed a new product known as Green Ride. Green Ride is a stationary bicycle for home use which generates power for electronics and household appliances, such as televisions, video game consoles, dishwashers, and washing machines. Given the recent shift toward sustainable living, renewable energy sources, and a focus on positively impacting climate change, Eco Cycle expects this product to do well in the market. While the company knows that all consumers follow a similar adoption process for products, not all consumers follow it at the same time. In one or more fully formed paragraphs, identify each of the five types of adopters and explain in detail the characteristics of each type of adopter for Eco Cycle and the Green Ride.
Answer:
Explanation:
The Green Ride is an ecologically friendly bicycle product from Eco-Cycle. It is to be utilized at home to produce power for gadgets and family things in this way giving an inexhaustible wellspring of energy.
The milestone book " Diffusion of Innovations" by sociologist Everett Rogers in 1962 originally sorted the adopter types premise on specific attributes as recorded beneath:
1) Innovators: These arrangement of individuals receive new innovation or product as they are recently dispatched. This arrangement of individuals are prepared to face challenges and they are the boldest. For this situation, some corporates may get intrigued to evaluate the Green Ride alternative to perceive how it tends to be utilized to save cost on the force front.
2) Early Adopters: This arrangement of individuals make trends and need to see them on the ball, subsequently they will become the early adopters. For this situation, individuals who are lethargic towards open-air exercises will get their hands on this bicycle as it is locally (home) established and be the early adopter of this product.
3) Early Majority: These arrangements of individuals settle on choices dependent on utilities and the useful benefits of the product. For this situation, everyone who is worried about the use and benefits of Green Ride will get input from Early Adopters and can continue likewise.
4) Late Majority: This arrangement of individuals imparts a few qualities to the Early Majority set of individuals yet they are generally careful prior to submission. For this situation, youngsters may not get intrigued to utilize a bicycle which is kept to Indoors as it were.
5) Laggards: These arrangements of individuals are delayed to adjust to new innovation or product. They will in general embrace just when they are constrained. For this situation, the arrangement of individuals who are customary bicycle clients won't be prepared to acknowledge this new product except if compelled to do as such because of the limited development during circumstances such as the present.
During 2019, Pepe Guardio purchases the following property for use in his calendar year-end manufacturing business:
Item Date Acquired Cost
Manufacturing equipment (7 year) June 2 $40,000
Office furniture September 15 $6,000
Office computer November 18 $2,000
Passenger automobile
(used 90 percent for business) May 31 $54,000
Warehouse June 23
Building $165,000
Land $135,000
Pepe uses the accelerated depreciation method under MACRS, if available, and does not make the election to expense or take a bonus depreciation. Use Form 4562 to report Pepe's depreciation expense for 2019.
Enter all amounts as positive numbers. If required, round to the nearest dollar. If an amount is zero, enter "0."
Answer:
Depreciation Expense for 2019 using form 4562
Basis For depreciation; Recovery Period ; Convention ; Method ; Depreciation deduction
2,000 ; 5 years ; HY ; 200 DB ; 400
40,000 ; 7 years ; HY ; 200 DB ; 6,573
Explanation:
Accelerated method of depreciation is used by businesses for accounting and income tax purposes. The depreciation is calculated in such a way that the depreciation expense is higher in early years and lower in later years. Pepe is also using this method to account for his business assets. The depreciation expense for computer equipment and manufacturing equipment's totals $6,973.
Quantities on hand at the end of one month may not be sufficient to last until the next month's count. If the company has taken this into account in establishing reorder levels, then it is very possible that the company carrying too large an investment in inventory which can be costly.
a. True
b. False
Answer:
True
Explanation:
The correct option is - True
Reason -
When the company is considering the quantities in stock available at the end of the month in duly setting their reorder level that indicates it creates buffer stock in company's account and not following just-in-time model, whereby the quantity being ordered when there is demand for the same.
Hereby the investment cost occurred while maintaining the inventory will be higher as comparison to just-in-time inventory model as the money is blocked in the inventory and it will be recovered only when the inventory being sold.
Exercise 8-9 Petty cash fund with an overage LO P2 EcoMart establishes a $1,050 petty cash fund on May 2. On May 30, the fund shows $326 in cash along with receipts for the following expenditures: transportation-in, $120; postage expenses, $369; and miscellaneous expenses, $240. The petty cashier could not account for a $5 overage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare the (1) May 2 entry to establish the fund, (2) May 30 entry to reimburse the fund [Hint: Credit Cash Over and Short for $5 and credit Cash for $724], and (3) June 1 entry to increase the fund to $1,200.
Answer:
1. May 2
Petty cash $1,050
Cash $1,050
2.May 30
Dr Merchandise inventory $120
Dr Postage Expense $369
Dr Miscellaneous expenses $240
Cr Cash over and short $5
Cr Cash $724
3. June 1
Petty Cash $150
Cash $150
Explanation:
1. Preparation of the May 2 entry to establish the funds
May 2
Petty cash $1,050
Cash $1,050
(Being to establish the funds)
2. Preparation of May 30 entry to reimburse the fund
May 30
Dr Merchandise inventory $120
Dr Postage Expense $369
Dr Miscellaneous expenses $240
Cr Cash over and short $5
Cr Cash $724
($120+$369+$240-$5)
(Being to reimburse the fund )
3. Preparation of June 1 entry to increase the fund to $1,200.
June 1
Petty Cash $150
Cash $150
($1,200-$1,050)
(Being to increase the fund)
Suppose you bought 1,100 shares of stock at an initial price of $46 per share. The stock paid a dividend of $.46 per share during the following year, and the share price at the end of the year was $41. a. Compute your total dollar return on this investment
Answer:
$-4994
Explanation:
Total dollar return = number of stocks bought x (dividend return + price return)
price return is the return on investment as a result of appreciation or depreciation of share price
Dividend return is the return on investment from dividend earned
price return = price at the end of the year - price at the beginning of the year
$41 - $46 = $-5
1100 x ($-5 + $0.46) = $-4994
The Bell Weather Co. is a new firm in a rapidly growing industry. The company is planning on increasing its annual dividend by 15 percent a year for the next 4 years and then decreasing the growth rate to 6 percent per year. The company just paid its annual dividend in the amount of $2.90 per share. What is the current value of one share of this stock if the required rate of return is 8.40 percent
Answer:
$130.97
Explanation:
The value of the firm can be determined by finding the present value of the dividend payments using the two stage dividend growth model
In the 2 stage dividend growth model, dividend is characterised by a fast growth. After this stage , growth in dividend becomes stable
Present value in the first year = (2.90 x 1.15) / 1.084 = $3.08
Present value in the second year = (2.90 x 1.15²) / 1.084² = $3.26
Present value in the third year = (2.90 x 1.15³) / 1.084³ = $3.46
Present value in the fourth year = (2.90 x [tex]1.15^{4}[/tex]) / [tex]1.084^{4}[/tex] = $3.67
Present value in the second stage = ($3.67 x 1.06) / (0.084 - 0.06) = $162.24
$162.24 / [tex]1.084^{4}[/tex] = $117.50
The value of the stock = sum of present values in the first stage of growth + present value in the second stage of growth
$3.08 + $3.26 + $3.46 + $3.67 + $117.50 = $130.97
If you owned a trade secret, what methods would you employ to protect it?
Answer:
You would restrict access to the information,advise new employees and you would have an agreement with employees abd business partners.
Spalding Pointers Corporation expects to begin operations on January 1, year 1; it will operate as a specialty sales company that sells laser pointers over the Internet. Spalding expects sales in January year 1 to total $120,000 and to increase 5 percent per month in February and March. All sales are on account. Spalding expects to collect 70 percent of accounts receivable in the month of sale, 20 percent in the month following the sale, and 10 percent in the second month following the sale. Required Prepare a sales budget for the first quarter of year 1.
Answer:
Spalding Pointers Corporation
Sales Budget
For the first quarter of year 1.
Details January February March
Sales revenue ($) 120,000 126,000 132,300
Explanation:
Before preparing the sales budget, the following are calculated first:
Expected sales in January year 1 = $120,000
Expected sales in February year 1 = Expected sales in January year 1 * (100% + Expected percentage increase) = $120,000 * (100% + 5%) = $126,000
Expected sales in March year 1 = Expected sales in February year 1 * (100% + Expected percentage increase) = $126,000 * (100% + 5%) = $132,300
The sales budge will now look as follows:
Spalding Pointers Corporation
Sales Budget
For the first quarter of year 1.
Details January February March
Sales revenue ($) 120,000 126,000 132,300
Suppose you expect Longs Drug Stores to pay an annual dividend of $2 per share in the coming year and to trade $40 per share at the end of the year. If investments with equivalent risk to Longs' stock have an expected return of 6%, what is the most you would pay today for Longs' stock
Answer:
$39.62
Explanation:
Calculation to determine what is the most you would pay today for Longs' stock
Using this formula
P0=Div1+P1/1+rE
Let plug in the formula
P0=$2+$40/(1+.06)
P0=$42/1.06
P0=$39.62
Therefore the most you would pay today for Longs' stock is $39.62
During the month of September, the following transactions occurred. The applicable sales tax rate is 6%.
Sept. 2 Sold merchandise on account to Sam Larson, $1,400, plus sales tax.
7 Sold merchandise on account to David Mitchell, $1,900, plus sales tax.
12 Issued credit memorandum to Sam Larson for $689, including sales tax of $39.
22 Sold merchandise on account to Matt Feustal, $500, plus sales tax.
28 Sold merchandise on account to Ana Cardona, $850, plus sales tax.
Enter the transactions in the general journal.
Answer:
Sept. 2
Dr Accounts Receivable-Sam Larson 1484
Cr Sales 1400
Cr Sales Tax Payable 84
Sept. 7
Dr Accounts Receivable-David Mitchell 2014
Cr Sales 1900
Cr Sales Tax Payable 114
Sept. 12
Dr Sales Returns and Allowances 650
Dr Sales Tax Payable 39
Cr Accounts Receivable-Sam Larson 689
Sept. 22
Dr Accounts Receivable-Matt Feustal 530
Cr Sales 500
Cr Sales Tax Payable 30
Sept. 28
Dr Accounts Receivable-Ana Cardona 901
Cr Sales 850
Cr Sales Tax Payable 51
Explanation:
Preparation of the general journal entries
Sept. 2
Dr Accounts Receivable-Sam Larson 1484
(1400+84)
Cr Sales 1400
Cr Sales Tax Payable 84
(1400*6%)
Sept. 7
Dr Accounts Receivable-David Mitchell 2014
(1900+114)
Cr Sales 1900
Cr Sales Tax Payable 114
(1900*6%)
Sept. 12
Dr Sales Returns and Allowances 650
(689-39)
Dr Sales Tax Payable 39
Cr Accounts Receivable-Sam Larson 689
Sept. 22
Dr Accounts Receivable-Matt Feustal 530
(500+30)
Cr Sales 500
Cr Sales Tax Payable 30
(500*6%)
Sept. 28
Dr Accounts Receivable-Ana Cardona 901
(850+51)
Cr Sales 850
Cr Sales Tax Payable 51
(850*6%)
In an effort to reduce costs, many regional power companies want to lower their safety stock of electricity transformers. To support this desire, a large transformer OEM will store safety stock of transformers in a FedEx warehouse in Memphis, Tennessee in order to insure quick air delivery to any of these is power companies should the need arise. This collaboration will result in lower overall inventory across the supply chain, making it possible for all parties to lower their costs.
1. The OEM has signed up 14 power companies on this rapid replenishment program. On average, each of these power companies used to hold 38 transformers in their safety stock. In total, how many transformers would these companies hold?
2. To maintain the same service level after this transition, how many units (transformers) would the OEM need to hold (or pool) in the FedEx warehouse?
3. After making this change for these power companies and OEM, by how many units (transformers) will inventory go down?
4. By what percentage would their inventory decrease by consolidating their inventory from the dealerships into the warehouse?
Answer:
1. Total transformers held by power companies = 532
2. The total units of transformers that OEM needs to hold in the FedEx warehouse = 38
3. The inventory of transformers will go down by 494.
4. The percentage of the decrease = 93%.
Explanation:
Power companies signed up on the rapid replenishment program = 14
Average number of transformers held in safety stock by each power company = 38
Total number of transformers in safety stock = 532 (14 * 38)
Number of transformers needed in the FedEx warehouse = 38
Inventory will go down by 494 (532 - 38)
Percentage of inventory decrease = 93% (494/532 * 100)
Joe bought a stock at $57 per share. The price promptly fell to $55. Joe held on to the stock until it again reached $57, and then he sold it once he had eliminated his loss. If other investors do the same to establish a trading pattern, this would contradict _______. Multiple Choice the strong-form EMH the semistrong-form EMH technical analysis the weak-form EMH
Compute the Z-scores for the second observation of the following data values: X: 462 490 350 294 574
Answer:
0.5
Explanation:
Zscore = (x - mean) / standard deviation
Given the data:
X : 462 490 350 294 574
The second observation = 490
The mean and standard deviation of the data could be obtained using a calculator :
Mean = 434
standard deviation = 112
ZSCORE = (490 - 434) / 112
ZSCORE = 56 / 112
ZSCORE = 0.5
At year-end, Chief Company has a balance of $10,000 in accounts receivable of which $1,000 is more than 30 days overdue. Chief has a credit balance of $100 in the allowance for doubtful accounts before any year-end adjustments. Using the aging of accounts receivable method, Chief estimates that 1% of current accounts and 10% of accounts over thirty days are uncollectible. What is the amount of bad debt expense
Answer:
$90
Explanation:
Total accounts receivable = $10,000
Overdue accounts (30 days) = $1,000
Current account = Total accounts receivable - Overdue accounts (30 days) = $10,000 - $1,000 = $9,000
Bad debt expense = Accounts receivable x Percentage estimated as uncollectible - Existing credit balance in accounts receivable
Bad debt expense = ($9,000 * 1%) + ($1,000 * 10%) - $100
Bad debt expense = $90 + $100 - $100
Bad debt expense = $90
Prepare a bank reconciliation for Cole Co. assuming the following as of May 31. Use the worksheet provided in the Ch 7 Module: 1) The company's cash account as a debit balance of: $95,250 2) The bank statement shows a balance of: $82,500 3) April 30 outstanding checks: $11,317 5) A credit memorandum was received by the bank, but not recorded by Cole Co. by May 31 a) Cash collected by the bank: $18,000 b) Collection fee deducted by bank: $45 6) Check 1115 was written and drawn for $1,350 but was erroneously entered in the accounting records as $1,050. The check was for rent. 7) May 31st daily cash sales were deposited but did not appear on the May 31 bank statement. $41,750 8) Interest earned, but not recorded:
Answer:
Cole Co.
Bank Reconciliation Statement
Balance as per cash account adjusted $112,933
add uncredited deposits 11,317
less Outstanding checks -41,750
Balance as per bank statement $82,500
Explanation:
a) Data and Calculations:
Cash account debit balance = $95,250
Bank statement balance = $82,500
Outstanding checks = $11,317
Credit memorandum $18,000
Collection fee $45
Check 1115 for Rent Expense of $1,350 transposed as $1,050 = $300 ($1,350 - $1050)
Uncredited deposits = $41,750
Interest earned = $28
Cash Account Adjustment:
Cash account debit balance $95,250
Debit:
Credit memorandum 18,000
Interest earned 28
Credit:
Collection fee -45
Rent Expense (understated) -300
Adjusted cash account balance $112,933
b) The bank reconciliation statement above was prepared after adjusting the cash account with items that were recorded by the bank but not recorded by Cole Co. and other misstatements. With the adjusted cash account balance, the bank reconciliation was then carried out with the items that were not recorded by the bank. The resulting figure should agree with the bank statement balance.
The balance in the Work in Process Inventory at any point in time equals Multiple Choice the costs for jobs finished during the period but not yet sold. the manufacturing cost of jobs ordered but not yet started into production. the sum of the manufacturing costs for all jobs in process but not yet completed. the manufacturing costs of all jobs started during the period, completed or not. the sum of the materials, labor and overhead costs paid during the period.
Answer:
the sum of the costs of all jobs started but not yet completed
Explanation:
Work in process inventory can be regarded as those materials that are partially completed within a production cycle. The materials are direct labour costs as well as factory overheads, raw materials along with cost needed to develop the material till it becomes final product. It should be noted that The balance in the Work in Process Inventory at any point in time equals the sum of the costs of all jobs started but not yet completed
First National Bank of America has more than 75% of its assets in first residential fixed-rate mortgages that mature in more than 5 years. Suppose that a 12-month Gap Analysis predicts a decrease in 2021 interest income of $3 million if there is a sudden 1% drop in market interest rates. From your knowledge of the practical flaws in gap analysis, a realistic simulation analysis would predict that:_______.
1. Interest income will drop by more than $3 million for a sudden 1% drop in market interest rates
2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates
Answer:
2. Interest income will drop by less than $3 million for a sudden 1% drop in market interest rates
Explanation:
Since in the question it is mentioned that there is decrease in 2021 interest income of $3 million in the case when there is a sudden decline of 1% in the rate of interest of the market this is due to the convexity of the curve as the GAP analysis and assume straight line
So the option 2 is correct