Answer:
$121,200
Explanation:
Calculation to determine the gross profit that would appear on a multiple-step income statement
First step is to determine the Net sales
Sales $ 250,000
Less Sales Discounts ($1,500)
Less Sales Returns and Allowances ($2,300 )
Net sales $246,200
Now let determine the Gross profit using this formula
Gross profit=Net sales-Cost of Goods Sold
Let plug in the formula
Gross profit=$246,200-$125,000
Gross profit=$121,200
Therefore the gross profit that would appear on a multiple-step income statement is $121,200
Vanessa and Martin file a joint return for 2020. They have one child age 12. They have combined AGI of $202,000. What is their maximum permitted contribution to a Coverdell Education Savings Account for 2019?
a. $0.
b. $800.
c. $1,200.
d. $2,000.
Answer:
Their maximum permitted contribution to a Coverdell Education Savings Account for 2019 is $1,200 that is Option c.
Explanation:
[tex]=\frac{202000-190000}{30000} \\= 0.40(2000)[/tex]
= $800 is disallowed.
So, $1200 is allowed.
In 2018, Caterpillar Inc. had about 595 million shares outstanding. Their book value was $23.00 per share, and the market price was $154.80 per share. The company's balance sheet shows that the company had $24.8 billion of long-term debt, which was currently selling near par value.
a. What was Caterpillar's book debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.)
b. What was its market debt-to-value ratio? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 2 decimal places.)
c. Which measure should you use to calculate the company's cost of capital?
a. Book debt-to-value ratio
b. Markeet debt-to-value ratio
c. Measure
Answer and Explanation:
The computation is shown below;
(a)-Caterpillar’s book debt-to-value ratio
Caterpillar’s book debt-to-value ratio is
= Debt ÷ [Debt + Book Value of Equity]
= $24.80 Billion ÷ [$24.80 Billion + (0.595 Billion Shares × $23.00 per share)]
= $24.80 Billion ÷ [$24.80 Billion + $13.69 Billion]
= $24.80 Billion ÷ $38.49 Billion
= 0.64
(b)- Caterpillar’s market debt-to-value ratio
Caterpillar’s book Market debt-to-value ratio is
= Debt ÷ [Debt + Market Value of Equity]
= $24.80 Billion ÷ [$24.80 Billion + (0.595 Billion Shares × $154.80 per share)]
= $24.80 Billion ÷ [$24.80 Billion + $92.11 Billion]
= $24.80 Billion ÷ $116.91 Billion
= 0.21
(c)-Best measure to determine the company’s cost of capital is the market value
According to the numbers in the article Group of answer choices smoking among adults is elastic because the percent change in price is greater than the percentage change in quantity demanded. smoking among adults is inelastic because the percent change in price is greater than the percentage change in quantity demanded. none of the answers are correct. smoking among adults is elastic because the percent change in price is less than the percentage change in quantity demanded. smoking among adults is inelastic because the percent change in price is less than the percentage change in quantity demanded.
Answer:
According to the numbers in the article
smoking among adults is inelastic because the percent change in price is less than the percentage change in quantity demanded.
Explanation:
Inelasticity means that price changes do not affect the demand for smoking among adults. When the habits of consumers to smoke are not determined by the change in the price of the item, the demand is described as inelastic. In other words, a change in the price of the good or service does not generate a corresponding change in the quantity demanded. Inelasticity, as an economic term, states that the quantity demanded of a good or service remains static when there is a change in its price.
Suppose you had inside information that your employer was thinking about declaring bankruptcy, and you find out that a family member was about to purchase $20,000 in the stock of your employer. To what extent would it be unethical for you to dissuade the family member from making the investment
Answer: To the extent that Inside Information is not disclosed.
Explanation:
U.S. law prohibits people from being able to disclose inside information so if you pass on the information about the impending bankruptcy to a family member, you would be in violation of this law and if found out, will be punished accordingly.
If however, you advice your family member not to invest based on analysis of the company (of which you must keep detailed records of) using mosaic information which is public information, then you would not have used inside information so it would not be illegal.
The downward slope of the demand curve again illustrates the pattern that as _____________ rises, ______________ decreases.
Answer:
price; quantity demanded.
Explanation:
In Economics, there are primarily two (2) factors which affect the availability and the price at which goods and services are sold or provided, these are demand and supply.
The law of demand states that, the higher the demand for goods and services, the higher the price it would be sold all things being equal.
According to the law of demand, there exist a negative relationship between the quantity of goods demanded and the price of a good i.e when the prices of goods and services in the market increases or rises: there would be a significant decline or fall in the demand for this goods and services.
This ultimately implies that, an increase in the price level of a product usually results in a decrease in the quality of real output demanded along the aggregate demand curve.
In conclusion, the downward slope of the demand curve again illustrates the pattern that as price of goods and services rises, quantity of goods and services demanded decreases.
A car dealer leases a small computer with software for $5,000 per year. As an alterative he could buy the computer for $7,500 and lease the software for $3,500 per year. Any time he would decide to switch to some other computer he could cancel software lease and sell the computer for $500.
If he buys the computer nad leases the software, what is the payback period?
a. 3 years
b. 4 years
c. 5 years
d. 6 years
If he kept the computer and software for 8 years, what would be the benefit-cost ratio, based on a 5% interest rate.
a. 1.5
b. 1.4
c. 1.3
d. 1.2
Answer:
1. The payback period is:
= 3 years
2. The benefit-cost ratio is:
= 1.1
Explanation:
a) Data and Calculations:
Leasing Computer Buying Computer &
with Software Leasing Software
Annual lease payment $5,000 $3,500
Cost of computer $7,500
Salvage value of computer $500
Usage period 8 years 8 years
Interest rate 5% 5%
Present value annuity factor 6.463 6.463
Present value factor for salvage 0.677
Present value of annuity $32,315 $29,782 ($22,621 + $7,500 - 339)
$22,782 = ($3,500 * 6.463 + $7,500 - ($500 * 0.677))
Benefit-cost ratio = $32,315/$29,782 = 1.1
Giả sử có số liệu về nền kinh tế (Lãi suất tính bằng %, các chỉ tiêu khác tính bằng tỷ USD):
MD = 2700 – 250i; MSr = 1750. Thì mức lãi suất cân bằng là bao nhiêu?
giúp em với ạ môn kinh tế vĩ mô nha mn
Answer:
What language is this?
Explanation:
Which of the following is considered the output in the systems thinking example of a decision support system?
1) Transaction processing system:
2) What-if:
3) Sensitivity:
4) Goal-seeking:
5) Optimization:
6) Forecasts:
7) Simulations:
8) Ad hoc reports:
Answer:
6) Forecasts:
Explanation:
Considering the available options the output in the systems thinking example of a decision support system is FORECASTS
Given that the Direct Support System's output is any form of representation that is a proud t of DSS input. It is usually in form of graphical objects, forms, or tables. This output shows the information that is derived from input analysis. It is used to support the decision-making process.
Hence, in this case, the correct answer is "Forecasts"
Normally dividend or /and capital gain is reason of investment. Why do you think stockholders of a firm that is performing very well would prefer that firm pay only a low percentage of its earnings as dividends? Does it give a good message to potential investors Give solid reasons to support your answer by taking into consideration the impact on financial performance of organization and capital structure composition
Answer:Preferred shares are an asset class somewhere between common stocks and bonds, so they can offer companies and their investors the best of both worlds Some companies like to issue preferred shares because they keep the debt-to-equity ratio lower than issuing bonds and give less control to outsiders than common stocks.
When a sales representative wishes to sell an exempt security to an out of state customer, which statement is TRUE?
Answer: A. Both the broker-dealer and the registered representative must be registered in the state where the sale of the exempt security is going to be made
Explanation:
When a sales representative wishes to sell an exempt security to an out of state customer, it should be noted that both the broker-dealer and the registered representative must be registered in the state where the sale of the exempt security is going to be made.
It should be noted that when though the exempt securities aren't typically registered under the Federal law and the State law, the broker-dealers along with the sales employees must be registered unde the state law where the security is being offered.
Belle Company buys land for $50,000 on 12/31/20. As of 3/31/21, the land has appreciated in value to $50,700. On 12/31/21, the land has an appraised value of $51,800. By what amount should the Land account be increased in 2021
Answer:
Belle Company
The amount that the Land account should be increased by is:
= $1,800.
Explanation:
a) Data and Calculations:
Cost of land bought on 12/31/20 = $50,000
Value of land on 3/31/21 = $50,700
Appraised value of land on 21/31/21 = $51,800
The amount that the Land account should be increased by is $1,800 ($51,800 - $50,000)
b) Land is always appraised by a professional appraiser who uses the value of similar property in the same location to determine the value. Appraisal helps to determine the value of the property, especially if it is being sold to another party or being used as collateral to obtain finance.
You accept a new job with a starting salary of $53,000. You receive a 4% raise at the start of your second year, a 5.5% raise at the start of your third year, and an 11.1% raise at the start of your fourth year. (Round your answers to two decimal places.)
Answer:
a. Salary for the second year:
Salary is to increase by 4% in second year.
= 53,000 * (1 + 4%)
= $55,120
b. Third year salary:
Second year salary will increase by 5.5%
= 55,120 * (1 + 5.5%)
= $58,151.60
c. Fourth year salary:
Third year salary to increase by 11.1%
= 58,151.60 * (1 + 11.1%)
= $64,606.43
g Privett Company Accounts payable $33,411 Accounts receivable 66,433 Accrued liabilities 6,512 Cash 22,494 Intangible assets 37,191 Inventory 89,982 Long-term investments 110,819 Long-term liabilities 75,872 Marketable securities 34,976 Notes payable (short-term) 29,393 Property, plant, and equipment 671,232 Prepaid expenses 1,809 Based on the data for Privett Company, what is the quick ratio, rounded to one decimal point
Answer:
1.79
Explanation:
Quick ratio = (Current assets - Inventory - Prepaid expenses) / Current liabilities
Quick ratio = (Account Receivable + Cash + Marketable securities) / (Account Payable + Accrued liabilities + Notes payable)
Quick ratio = (66,433 + 22,494 + 34,976) / (33,411 + 6,512 + 29,393)
Quick ratio = $123,903 / $69,316
Quick ratio = 1.78751
Quick ratio = 1.79
Identify deficiencies in Wagner's participative budgetary policy for planning and performance evaluation purposes
Question Completion:
Behavioral Considerations and Budgeting Anthony Wagner, the controller in the Division of Transportation for the state, recognizes the im ance of the budgetary process for planning, control, and motivation purposes. He believes that properly implemented participative budgeting process for planning purposes and a management by exception reporting procedure based on that budget will motivate his subordinates to improve productivity within their particular departments. Based on this philosophy, Wagner has implemented the following budget procedures:
An appropriation target figure is given to each department manager. This amount is the maximum funding that each department can expect to receive in the next fiscal year Department managers develop their individual budgets within the following spending constraint as directed by the controller's staff:
1. Expenditure requests cannot exceed the appropriation target
2. All fixed expenditures should be included in the budget: these should include items such . . as contracts and salaries at current levels
3. All government projects directed by higher authority should be included in the budget in their entirety. The controller consolidates the departmental budget requests from the various departments into one budget that is to be submitted for the entire division. Upon final budget approval by the legislature, the controller's staff allocates the appropriation to the various departments on instructions from the division manager. However, a specified percentage of each department's appropriation is held back in anticipation of potential budget cuts and special funding needs. The amount and use of this contingency fund are left to the discretion of the division manager Each department is allowed to adjust its budget when necessary to appropriation level. However, as stated in the original directive, specific projects authorized b higher authority must remain intact. The final budget is used as the basis of control for a management by exception form of reporting. Excessive expenditures by account for each department are highlighted on a monthly basis. Department managers are expected to account for all expenditures over budget. Fiscal responsibility is an important factor in the overall performance evaluation of department managers .Each department is allowed to adjust its budget when necessary to operate within the reduced · Wagner believes that his policy of allowing the department managers to participate in the budget process and then holding them accountable for their performance is essential, e these times of limited resources.
Answer:
Deficiencies in Wagner's Participative Budgeting Policy
1. Fixed costs are not controllable by managers. This defeats, to a large extent, the idea of participative budgeting policy by Wagner as his departmental managers' performances are evaluated based on goals they have not set for themselves.
2. Wagner's participative budgetary policy allows him to revise some approved budgets arbitrarily without seeking the participation of divisional managers in the revision. This negatives the principle of participation.
Explanation:
An effective participating budgeting process ensures the utilization of specialist knowledge of the participants who are close to the daily operations of their departments. An effective process ensures the setting of more realistic and acceptable goals. A good participative budgetary policy wins managers' commitment, improves communication and accountability, and ensures group cohesiveness.
If variances are recorded in the accounts at the time the manufacturing costs are incurred, what does a debit balance in Direct Materials Price Variance represent?
Answer:
unfavorable variance
Explanation:
In such situation, a debit balance in Direct Materials Price Variance represents
unfavorable variance. This is an accounting term that explains situations when the actual cost of the project is higher than the standard or projected cost.
It means that the actual price at which the materials are bought is higher than the standard price / budgeted price / estimated price and therefore, more amount has to be paid than expected.
Shin Corporation had a projected benefit obligation of $3,100,000 and plan assets of $3,300,000 at January 1, 2020. Shin also had a net actuarial loss of $465,000 in accumulated OCI at January 1, 2020. The average remaining service period of Shin's employees is 7.5 years. Compute Shin's minimum amortization of the actuarial loss.
Answer:
$18,000
Explanation:
Projected benefit obligation = $3,100,000
Plan assets = $3,300,000
Corridor amount = Plan assets * Corridor percentage
Corridor amount = $3,300,000 * 10%
Corridor amount = $330,000
Accumulated loss = $465,000
Excess loss subject to amortization = $465,000 - $330,000
Excess loss subject to amortization = $135,000
Amortized to pension expense = Excess loss subject to amortization / Average remaining service
Amortized to pension expense = $135,000 / 7.5 years
Amortized to pension expense = $18,000
Oakwood Inc. manufactures end tables, armchairs, and other wood furniture products from high-quality materials. The company uses a standard costing system and isolates variances as soon as possible. The purchasing manager is responsible for controlling direct material price variances, and production managers are responsible for controlling usage variances. During November, the following results were reported for the production of American Oak armchairs:
Units produced 1,670 armchairs
Direct materials purchased 18,500 board feet
Direct materials issued into production 17,250 board feet
Standard cost per unit
(22 board feet × $7.2) $158.4 per unit produced
Purchase price variance $2,620 unfavorable
Required:
a. Calculate the actual price paid per board foot purchased.
b. Calculate the standard quantity of materials allowed (in board feet) for the number of units produced.
c. Calculate the direct materials usage variance. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance).)
Answer:
Oakwood Inc.
a) The actual price paid per board foot purchased is:
= $7.34
b) The standard quantity of materials allowed (in board feet) for the number of units produced is:
= 36,740 board feet
c) The direct materials usage variance is:
= $140,328 F
Explanation:
a) Data and Calculations:
i) Reported production of American Oak Armchairs:
Units produced = 1,670 armchairs
Direct materials purchased = 18,500 board feet
Direct materials issued into production = 17,250 board feet
ii) Standard cost per unit
(22 board feet × $7.2) $158.4 per unit produced
Purchase price variance $2,620
a) The actual price paid per board foot purchased
= Standard cost per board feet + (Purchase price variance/Quantity purchased)
= $7.20 + ($2,620/18,500)
= $7.20 + $0.14
= $7.34
b) The standard quantity of materials allowed (in board feet) for the number of units produced
= 22 * 1,670
= 36,740 board feet
c) The direct materials usage variance = (Standard Qty - Actual Qty) * Standard price per board feet
= (36,740 - 17,250) * $7.20
= $140,328 F
A company wants to generate a forecast for unit demand for year 2018 using exponential smoothing. The actual demand in year 2017 was 120. The forecast demand in year 2017 was 110. Using this data and a smoothing constant alpha of 0.1. What is the resulting year 2018 forecast value?
Answer:
111
Explanation:
Exponential Smoothing forecast for 2018 = (Alpha*Actual demand in 2017) + ((1 - Alpha)*Forecast demand for 2017: Where Alpha = 0.1, Actual demand in 2017 = 120 and Forecast for 2017 = 110
Exponential Smoothing forecast for 2018 = (0.1 * 120) + ( (1 - 0.1) * 110)
Exponential Smoothing forecast for 2018 = (0.1 * 120) + (0.9 * 110)
Exponential Smoothing forecast for 2018 = 12 + 99
Exponential Smoothing forecast for 2018 = 111
Term Answer Description Discounting A. A series of equal (constant) cash flows (receipts or payments) that are expected to continue forever. Time value of money B. One of the four major time value of money terms; the amount to which an individual cash flow or series of cash payments or receipts will grow over a period of time when earning interest at a given rate of interest. Amortized loan C. A value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested ove
Answer:
1. Perpetuity.
2. Opportunity cost of funds.
3. Annual Percentage rate.
Explanation:
1. Perpetuity: a series of equal (constant) cash flows (receipts or payments) that are expected to continue forever. It's typically a cash flow stream generated through a share of preferred stock and is often expected to pay dividends to the holders every quarter for an indefinite period of time.
2. Opportunity cost of funds: one of the four major time value of money terms; the amount to which an individual cash flow or series of cash payments or receipts will grow over a period of time when earning interest at a given rate of interest. Opportunity cost also known as the alternative forgone, can be defined as the value, profit or benefits given up by an individual or organization in order to choose or acquire something deemed significant at the time.
3. Annual Percentage rate: value that represents the interest paid by borrowers or earned by lenders, expressed as a percentage of the amount borrowed or invested over a 12-month period. An interest rate can be defined as an amount of money that is charged as a percentage of the total amount borrowed from an individual or a financial institution.
A restaurant chain sponsors a charity that provides support to the parents of children being treated for cancer. How would the use of company funds for this purpose be justified by a business whose goal is to maximize profit
Answer: The money spent is worth the boost it gives to the corporate image
Explanation:
Corporate social responsibility gives companies a good image and can help a company improve its brand and revenue.
Since the restaurant chain sponsors a charity that provides support to the parents of children being treated for cancer, the use of the funds of the company will be justified when the money that's spent is worth the boost it gives to the corporate image.
Leander Mfg. has three support departments (human resources, administration, and maintenance) and two revenue-generating departments (assembly and finishing). The company uses the step method to allocate support department costs to operating departments. In October, human resources incurred $1,008,000 of costs, administration incurred $1,562,400, and maintenance incurred $476,000. Proportions of services provided to other departments for October follow. Human Resources Administration Maintenance Human resources 10% 5% Administration 10% 15 Maintenance 15 10 Assembly 40 50 45 Finishing 35 30 35 a. Assume that the departments are listed in a benefits-provided ranking. Note: Do not round proportions in your calculations; round your final answer to the nearest whole dollar. 1. What amount of cost should be assigned from human resources to each of the other departments
Answer:
Leander Mfg.
Human resources cost assigned to other departments:
Administration 100,800 (10%)
Maintenance 151,200 (15%)
Assembly 403,200 (40%)
Finishing 352,800 (35%)
Total HR costs $1,008,000
Explanation:
a) Data and Calculations:
Human Resource Administration Maintenance
Direct costs incurred $1,008,000 $1,562,400 $476,000
Human resources 10% 5%
Administration 10% 15
Maintenance 15 10
Assembly 40 50 45
Finishing 35 30 35
Allocation of Costs:
Human Resource Administration Maintenance
Direct costs incurred $1,008,000 $1,562,400 $476,000
Human resources ($1,008,000) 100,800 151,200
Administration 100,800 (10%) ($1,663,200) 184,800
Maintenance 151,200 (15%) 184,800 (10%) ($812,000)
Assembly 403,200 (40%) 924,000 (50%) 456,750 (45%)
Finishing 352,800 (35%) 554,400 (30%) 355,250 (35%)
Human resources cost assigned to other departments:
Administration 100,800 (10%)
Maintenance 151,200 (15%)
Assembly 403,200 (40%)
Finishing 352,800 (35%)
Total HR costs $1,008,000
Administration costs assigned to other departments:
Maintenance 184,800 ($1,663,200 * 10/90)
Assembly 924,000 ($1,663,200 * 50/90)
Finishing 554,400 ($1,663,200 * 30/90)
Total administration costs $1,663,200
Maintenance costs assigned to other departments:
Assembly 456,750 ($812,000 * 45/80)
Finishing 355,250 ($812,000 * 35/80)
Total administration costs $812,000
What interest rate is implicit in a $1,000 par value zero-coupon bond that matures in 7 years if the current price is $500. Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
Answer:
0.104
Explanation:
We are to determine the yield to maturity of the bond
yield to maturity can be determined using a financial calculator
Cash flow in year 0 = -500
Cash flow each year from year 1 to 6 = 0
Cash flow in year 7 = 1000
YTM = 10.4%
To find the YTM using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. After inputting all the cash flows, press the IRR button and then press the compute button.
Galaxy Corp. is considering opening a new division to make iToys that it expects to sell at a price of $15,250 each in the first year of the project. The company expects the cost of producing each iToy to be $6,700 in the first year; however, it expects the selling price and cost per iToy to increase by 3.00% each year.
Based on the preceding information and rounding dollar amounts to the nearest whole dollars, the company expects the selling price in the fourth year of the project to be_______ , and it expects the cost per unit in the fourth year of the project to be _______.
Which of the following statements about inflation’s effect on net present value (NPV) is correct?
A. When the selling price and cost per unit are expected to increase at the same rate, forgetting to take inflation into account in a capital budgeting analysis will typically cause the estimated NPV to be lower than the true NPV.
B. When the selling price and cost per unit are expected to increase at the same rate, you do not need to take inflation into account when performing a capital budgeting analysis
Answer:
Galaxy Corp.
1. Based on the preceding information and rounding dollar amounts to the nearest whole dollars, the company expects the selling price in the fourth year of the project to be__$17,172___ , and it expects the cost per unit in the fourth year of the project to be ___$7,544___.
2. The CORRECT statement about inflation's effect on net present value (NPV) is:
B. When the selling price and cost per unit are expected to increase at the same rate, you do not need to take inflation into account when performing a capital budgeting analysis.
Explanation:
a) Data and Calculations:
Expected selling price of iToy = $15,250 per unit
Expected cost of producing iToy = $6,700 per unit
Expected annual increase in selling price and cost per iToy = 3.00%
The expected selling price in the fourth year of the project = $15,250 * (1 + 0.03)^4
= $17,172 ($15,250 * 1.126)
The expected cost per unit in the fourth year of the project = $7,544 (6,700 * 1.126)
Assembly department of Zahra Technologies had 100 units as work in process at the beginning of the month. These units were 50% complete. It has 200 units which are 25% complete at the end of the month. During the month, it completed and transferred 500 units. Direct materials are added at the beginning of production. Conversion costs are allocated evenly throughout production. Zahra uses weighted-average process-costing method.
Required:
Calculate the total equivalent units in ending inventory for assignment of conversion costs?
Answer:
50 units
Explanation:
Particulars Physical units % Conversion EUP-Conversion
Ending Work-in-Process 200 25% 50 (200*25%)
Equivalent unit of production 200 50
So, the total equivalent units in ending inventory for assignment of conversion costs is 50 units.
BR Company has a contribution margin of 18%. Sales are $423,000, net operating income is $76,140, and average operating assets are $131,000. What is the company's return on investment (ROI)
Answer:
58.12%
Explanation:
Return on investment = Net operating income / Average operating assets
Return on investment = $76,140 / $131,000
Return on investment = 0.5812214
Return on investment = 58.12%
So, the company's return on investment (ROI) is 58.12%.
Journalize the entries to record the following: March 1 Established a petty cash fund of $527. March 31 The amount of cash in the petty cash fund is now $354. The fund is replenished based on the following receipts: office supplies, $58 selling expenses, $123. Record any discrepancy in the cash short and over account. If an amount box does not require an entry, leave it blank or enter "0".Mar. 1 Petty Cash 527Cash 527Mar. 31 Office Supplies 58Selling Expenses 123Cash Short and Over ?Cash ?
Answer:
1. Dr Petty Cash $527
Cr Cash $527
2. Dr Office Supplies 58
Dr Selling Expenses $123
Dr Cash Over and Short $8
Cr Cash $173
Explanation:
1. Preparation of the Journal entry to replenish petty cash
March 1
Dr Petty Cash $527
Cr Cash $527
(To replenish petty cash)
2. Preparation of the journal entry to Record any discrepancy in the cash short and over account.
March 31
Dr Office Supplies 58
Dr Selling Expenses $123
Dr Cash Over and Short $8
($173-$58-$123)
Cr Cash $173
($527-$354)
(To Record any discrepancy in the cash short and over account)
Perdue Company purchased equipment on October 1 for $55,060. The equipment was expected to have a useful life of three years, or 7,600 operating hours, and a residual value of $1,860. The equipment was used for 1,400 hours during Year 1, 2,700 hours in Year 2, 2,300 hours in Year 3, and 1,200 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.
Answer:
$13,300 for each of the four years
Unit of output
$9800
$18900
$16100
$8400
double declining
27530
13765
6882.5
3441.25
Explanation:
Straight line depreciation expense = (Cost of asset - Salvage value) / useful life
( $55,060 - $1,860) / 4 = $13,300 each year
Activity method based on hours worked = (hours worked that year / total hours of the machine) x (Cost of asset - Salvage value)
( $55,060 - $1,860) / 7600 = 7
year 1 = 7 x 1400 = 9800
year 2 = 7 x 2700 = $18900
year 3 = 7 x 2300 = $16100
year 4 = 7 x 1200 = $8400
Depreciation expense using the double declining method = Depreciation factor x cost of the asset
Depreciation factor = 2 x (1/useful life) = 2/4 = 0.5
Year 1 = $55,060 x 0.5 = 27530
book value = $55,060 - 27530 = 27530
year 2 = 27530 x 0.5 = 13765
book value = 27530 - 13765 = 13765
year 3 = 13765 x 0.5 = 6882.50
The T-account showing the manufacturing overhead activity for Alfred Corp. for 2020 shows a debit of $195,000 and a credit of $203,000. When answering the three questions below, enter your answer using only numeric amounts (unless otherwise directed), rounded to the nearest dollar (no dollar signs and no commas). What is the actual manufacturing overhead
Answer: $195000
Explanation:
The actual manufacturing overhead refers to the true costs which are incurred during production and this include factory supplies used, indirect materials, insurance, depreciation, factory taxes, etc.
Here, the debit of $195,000 is the actual manufacturing overhead while the credit of $203000 is the allocated manufacturing overhead.
Will give brainliest Please help me and write an outline for my alternate answer at the end of this assignment ( btw a shul is a synagogue)
Explanation:
Sorry about this but problem are not very clear
For which of the following random variables would the use of a Normal distribution as a model be a clear error?
a) The number of houses that an individual owns
b) The number of minutes that a battery lasts in a cell phone
c) Student test scores on an exam
d) The daily percentage change on a stock
Answer:
A. The number of houses that an individual owns
Explanation:
The use of normal distribution in option A would produce an error. That is the number of houses individuals own.
We know that people can own 1 house or more than 1 house or no house at all. But a person can never be said to have less than 0 houses.
Option a is going to be skewed positively. Using Normal distribution would give us an error.