Answer:
All of these are false
Explanation:
The c corporation is a corporation that is entered if the investors or shareholders are large. That is they exceed 100. The investors or shareholders pay taxes on dividends. They are subjected to what is called double taxation and are taxed separately from the owners. The obligations of the corporation are not personal to any individual and liability of the owners, workers or shareholders are limited
a disgruntled customer will tell how many people about their experience
Answer:
A disgruntled customer will tell 9 - 15 people about their experience.
Explanation:
According to a study carried out by the White House Office of Consumer Affairs, a dissatisfied consumer tells 9-15 people about their experience. However, with the advent of social media and the internet, this number can sky-rocket into thousands and possibly millions depending on how viral the complaint becomes.
This is the more reason why organizations should endeavor to provide good customer service so that their brand will not be dragged into the mud by disgruntled customers.
Assume that a $1,000,000 par value, semiannual coupon US Treasury note with four years to maturity has a coupon rate of 3%. The yield to maturity (YTM) of the bond is 11.00%. Using this information and ignoring the other costs involved, calculate the value of the Treasury note: $746,617.36 $634,624.76 $470,368.94 $895,940.83
Answer:
Asset Price= $746,617.36
Explanation:
Giving the following information:
Face value= $1,000,000
Coupon= 0.03/2= 0.015*1,000,000= $15,000
Number of periods= 2*4= 8 semesters
YTM= 0.11/2= 0.055
To calculate the price of the asset, we need to use the following formula:
Asset Price= cupon*{[1 - (1+i)^-n] / i} + [face value/(1+i)^n]
Asset Price= 15,000*{[1 - (1.055^-8) / 0.055} + [1,000,000 / (1.055^8)]
Asset Price= 95,018.49 + 651,598.87
Asset Price= $746,617.36
Mariana works for a large pharmaceutical company. Last week she visited with an advisor at the nearby university because her employer encourages workers to continue their education. The company even gives employees time off to go to academic-related appointments during regularly scheduled work hours. One would assume that management at Mariana's company values the results of the Hawthorne studies, more so than traditional scientific management principles.
a. true
b. false
Now the restaurant owner receives some good news and some bad news. The good news is that his landlord has rescinded the rent increase. The bad news is that the price of salmon at the fish market has risen. This is a blow because his restaurant is called SALMON CITY because almost all of the items use salmon. The increase in the price of salmon: Hint: Think in terms of the relation between revenue and cost at the margin -- and its implications for firm behavior.a. will cause him to raise his price and reduce the number of meals that he servesb. will cause him to lower his price in order to raise revenuec. may cause the price he charges to rise or falld. will have no impact on the price that he charges or the number of customers that he serves
Answer: a. will cause him to raise his price and reduce the number of meals that he serves
Explanation:
The owner makes a lot of meals that rely on salmon. With salmon prices going up, he will have to pay more money to buy the salmon that he uses to prepare the meals.
This would reduce his profit margin. He will therefore have to increase the price at which he sells his meals so as to recuperate the increased costs. He will also reduce the number of meals he serves because he will have to buy less salmon so that he does not incur a larger cost.
Multi-Level-Marketing is a quickly growing industry in the United States. Many men and women are deciding to work from home, selling various goods to their friends and family due to the convenience and possible salary that can be made. Multi-Level-Marketing consists of a hierarchy of workers and customers and is sometimes referred to as a pyramid scheme
Answer:
True
Explanation:
Multilevel marketing is a strategy that consists of creating a hierarchy of workers for product distribution, being very common companies of beauty products, essential oils, and other products that are easy to sell. The strategy works like this: the distributors buy the products of the companies to sell to the final customer, and thus they receive a percentage for the sale of the products. But there is a criticism about this strategy, which can be a pyramid scheme, when there is a greater intention of the company to recruit new distributors than to actually sell its products, because in a pyramid scheme the intention is always to profit to benefit those who are on the top. Generally, companies that operate in an illegal pyramid scheme have strong marketing aimed at recruiting people to purchase products for sale with promises of quick enrichment.
Corporation Q, a calendar year taxpayer, has incurred the following Section 1231 net gains and losses since its formation in 2016: 2016 2017 2018 Section 1231 gains $ 14,800 $ 5,700 0 Section 1231 losses (13,000 ) (9,000 ) $ (3,100 ) Net gain or (loss) $ 1,800 $ (3,300 ) $ (3,100 ) Required: In 2019, Corporation Q sold only one asset and recognized a $4,000 Section 1231 gain. How much of this gain is treated as capital gain, and how much is ordinary
Answer: $4,000 is ordinary income. No Capital gain
Explanation:
In 2017 and 2018, total Section 1231 losses are:
= 3,300 + 3,100
= $6,400
The Section 1231 gain in 2019 falls below the combined losses from the previous years of 2017 and 2018 so will not be counted as a capital gain as those losses are not yet being recaptured.
The entire $4,000 is therefore ordinary income.
what is a business administration
Answer:
Business administration is the administration of a commercial enterprise. It includes all aspects of overseeing and supervising business operations.
Explanation:
This is what I found during my research. Please correct me if I am wrong which I feel like I am right. Hope this helped a bit and have a good one!
☜(ˆ▿ˆc)g Equipment was purchased for $94700 on January 1, 2021. Freight charges amounted to $3800 and there was a cost of $12000 for building a foundation and installing the equipment. It is estimated that the equipment will have a $25000 salvage value at the end of its 5-year useful life. What is the amount of accumulated depreciation at December 31, 2022 if the straight-line method of depreciation is used
Answer:
$34,200
Explanation:
Calculation of total Cost of Equipment
Purchase Price $94700
Freight charges $3800
Foundation and Installation $12000
Total $110,500
Annual Depreciation = Cost - Salvage Value / Useful Life
= ( $110,500 - $25000) / 5
= $17,100
Accumulated Depreciation = $17,100 x 2 = $34,200
Therefore,
the amount of accumulated depreciation at December 31, 2022 is $34,200.
Assume Purity Ice Cream Company, Inc., in Ithaca, NY, bought a new ice cream maker at the beginning of the year at a cost of $9,000. The estimated useful life was four years, and the residual value was $1,000. Assume that the estimated productive life of the machine was 16,000 hours. Actual annual usage was 5,500 hours in Year 1; 3,800 hours in Year 2; 3,200 hours in Year 3; and 3,500 hours in Year 4.Required: Complete a separate depreciation schedule for each of the alternative methods. Do not round intermediate calculations a. Straight-line. reciati Book Value At acquisition b. Units-of-production (u four decimal places for the per unit output factor) se Net Depreciation Accumulated Depreciation Book Value Expense At acquisition
Answer:
Purity Ice Cream Company
a. Depreciation Schedule, using straight-line method:
Cost Depreciation Accumulated Net Book
Expense Depreciation Value
Year 1 $9,000 $2,000 $2,000 $7,000
Year 2 $9,000 $2,000 4,000 5,000
Year 3 $9,000 $2,000 6,000 3,000
Year 4 $9,000 $2,000 8,000 1,000
b. Depreciation Schedule, using unit of production method:
Cost Depreciation Accumulated Net Book
Expense Depreciation Value
Year 1 $9,000 $2,750 $2,750 $6,250
Year 2 $9,000 $1,900 4,650 4,350
Year 3 $9,000 $1,600 6,250 2,750
Year 4 $9,000 $1,750 8,000 1,000
Explanation:
a) Data and Calculations:
Cost of ice cream maker = $9,000
Estimated useful life = 4 years
Residual value = $1,000
Depreciable amount = $8,000 ($9,000 - $1,000)
Annual depreciation (Straight-line method) = $2,000 ($8,000/4)
Estimated productive life the machine = 16,000 hours
Annual usage: Depreciation Expense
Year 1 5,500 hours $2,750
Year 2 3,800 hours 1,900
Year 3 3,200 hours 1,600
Year 4 3,500 hours 1,750
Total 16,000 hours $8,000
Depreciation rate per hour = $0.50 ($8,000/16,000)
Happy Lawn Company started a lawn services business on January 1, 20X1 (so all account balances were zero on January 1, 20X1). It sends invoices to its customers for lawn maintenance services at the end of each month, and expects the customer to pay within 30 days. All of these sales were made on credit. During 20X1, cash collected from its customers totaled $750,000 for services rendered during the year. At the end of 20X1, the Accounts Receivable for Happy Lawn had a balance of $60,000. After all write-offs but before the year-end adjusting entry, the Allowance for Doubtful Accounts had a debit balance of $4,000. Given the above information and considering the recording of Bad Debt Expense for the year, regardless of the method used to estimate bad debts, the ending Allowance for Doubtful Accounts balance for 20X1 will be: Multiple Choice
Question Completion:
Assume that Happy Lawn uses the percentage of credit sales method to directly calculate the bad debt expense) instead of the aging method, and it is estimated that it will not collect 1% of the total credit sales.
Answer:
Happy Lawn Company
Given the above information and considering the recording of Bad Debt Expense for the year, regardless of the method used to estimate bad debts, the ending Allowance for Doubtful Accounts balance for 20X1 will be:
= $8,140.
Explanation:
a) Data and Calculations:
Total credit sales:
Cash collected from customers = $750,000
Accounts receivable balance 60,000
Write-off of debts 4,000
Total credit sales for the year $814,000
Allowance for Doubtful Accounts 8,140 ($814,000 * 1%)
Bad Debts Expense = $12,140 ($8,140 + $4,000)
b) Since Happy Lawn is a new outfit, it does not have beginning balances of Accounts Receivable and Allowance for Doubtful Accounts. With a debit balance of $4,000 in the Allowance for Doubtful Accounts, signifying a write-off (contrary entry from the Accounts Receivable), the balance in the Allowance for Doubtful Accounts at year-end is expected to be equal to 1% of the credit sales. This will require a credit entry for Bad Debts Expense.
Aster Inc. has developed a new digital three-tier food steamer. Though the product comes with a self-explanatory manual, the controls and the operation of the appliance have to be explained to the customer on a one-to-one basis, in great detail. Which of the following elements of the promotional mix is Aster most likely to rely on to sell its products?
a. Advertising
b. Sales promotion
c. Public relations
d. Personal selling
Answer:
d. Personal selling
Explanation:
Personal selling would be the one of the component of the promotional mix where the person interact with the customers from face to face and explains the product with respect to its features, price, benefits, etc also at the same time customer could solve their doubts related to the product
So as per the given situation, the option d is correct
Under an installment contract, a buyer can:
A. Reject an installment if the nonconformity substantially impairs the value of the installment without giving the seller an opportunity to cure
B. Hold the seller in breach of the entire installment contract when a nonconforming installment substantially impairs the value of that
installment alone.
C. Reject an installment no matter how minor the nonconformance is
D. None of these answers
Answer:
A. Reject an installment if the nonconformity substantially impairs the value of the installment without giving the seller an opportunity to cure.
Explanation:
A contract can be defined as an agreement between two or more parties (group of people) which gives rise to a mutual legal obligation or enforceable by law.
There are different types of contract in business and these includes: fixed-price contract, cost-plus contract, bilateral contract, implies contract, unilateral contract, adhesion contract, unconscionable contract, option contract, express contract, installment contract, etc.
Total installment price is the total amount a consumer or customer end up paying for goods and services.
Mathematically, it can be calculated by using the formula below;
Total Installment Price = ([Monthly payment] × [No. of payments] + Down payment)
Hence, you multiply the monthly revenue by the amount of payments and add it to the down the payment.
Under an installment contract, a buyer can reject an installment if the nonconformity substantially impairs the value of the installment without giving the seller an opportunity to cure. This is in accordance with the uniform commercial code (UCC).
The uniform commercial code (UCC) is a set of standardized business laws which are put in place for the regulation of financial contracts and commercial transactions used across different states in the United States of America.
There are special rules known as the special business standards that are set up by UCC governing the merchants and the sales of goods in the Article 2 of the uniform commercial code.
Maple Company purchases new equipment (7-year MACRS property) on January 10, 2020, at a cost of $430,000. Maple also purchases new machines (5-year MACRS property) on July 19, 2020 at a cost of $290,000. Maple wants to maximize its MACRS deductions; assume no taxable income limitations apply. What is Maple's total MACRS deduction for 2020
Answer:
$720000
Explanation:
This answer is quite sole and can be obtained by simple addition.
The answer to this question can be gotten by adding the MACR property of 8byears that has a cost of $430,000 with the purchases of new machines whose cost is $290000.
= $430000 + $290000
= $720000
Therefore Maple's total MACRs deduction for the year 2020 is equal to
$720000.
Thank you!
The following information was collected for the first year of manufacturing for Appliance Apps: Direct Materials per Unit $2.50 Direct Labor per Unit $1.50 Variable Manufacturing Overhead per Unit $0.25 Variable Selling and Administration Expenses $1.50 Units Produced 39,000 Units Sold 33,000 Sales Price $12 Fixed Manufacturing Expenses $117,000 Fixed Selling and Administration Expenses $21,000 Prepare an income statement under variable costing method.
Answer:
Results are below.
Explanation:
First, we need to calculate the total unitary variable cost:
Total unitary variable cost=2.5 + 1.5 + 0.25 + 1.5
Total unitary variable cost= $5.75
Now, the variable costing income statement:
Sales= 33,000*12= 396,000
Total variable cost= (33,000*5.75)= (189,750)
Total contribution margin= 206,250
Fixed Manufacturing Expenses= (117,000)
Fixed Selling and Administration Expenses= (21,000)
Net operating income= 68,250
If GDP is confidently expected to grow at a rapid 4% rate this year, how do you predict investment spending will change? Is it likely to grow faster than, slower than, or at the same rate as GDP? Why? Based on this expectation, investment spending is likely to by 4%. A rapidly growing economy will generally make business people optimistic, expectations about potential future profits. As a result, they are eager to invest.
Answer:
Based on this expectation, investment spending is likely to increase by more than 4%.
A rapidly growing economy will generally make business people more optimistic, with higher expectations about potential future profits. As a result, they are more eager to invest.
Investment will increase higher than 4% because in a growing economy like this, people will be so optimistic that they would invest huge sums to capitalize on the growth and earn some returns.
This rate of increase would be greater than GDP because GDP is based on multiple factors including investment therefore those factors like government spending would have to increase as well.
If the GDP is expected to be increased by 4%, the investment spending are likely to be increased by more than 4%.
In the rapid growing economy the investors are generally more optimistic they have higher expectations about the future potential profit as a result they will be more eager to invest.
What is GDP?GDP or gross domestic product final value of goods and services produced which is the economy during a financial year. The GDP excludes the value of intermediate consumption to avoid the problem of double counting.
An increasing GDP positively effect the investment spending as the people in the economy are optimistic about the future profit and hence will be eager to invest huge sums to make bigger profits.
Therefore rate of increase in investment spending will we more than 4% when the rate of GDP increases by 4%.
Learn more about GDP here:
https://brainly.com/question/4131508
Answer T or F to the following: _____ In general, job shop operations are larger than line flow operations. _____ In general, job shop operations use more general purpose equipment than line flow operations. _____ In general, job shop operations have higher variety of output than line flow operations. _____ In general, job shop operations have lower labour content than line flow operations. _____ In general, job shop operations are less flexible than line flow operations. _____ In general, job shop operations are more likely to measure their capacity by their outputs. _____ In general, job shop operations have less work in process inventory than line flow operations. _____ In general, job shop operations have higher skilled workers than line flow operations. _____ In general, job shop operations are less likely to compete on cost than line flow operations. _____ In general, job shop operations produce larger volume output than line flow operations.
Answer:
FalseTrueTrueFalseFalseFalseTrueTrueTrueFalseExplanation:
FalseThis is because Job shop operations are smaller than line flow operations
TrueThis is because line flow operations require more specific more specific tools
True.This is because high volume of a specific type of product
FalseThis is because in job shop the production of variety of products require a higher number of labor content
FALSEJob shop operations are more flexible than line flow operations
FALSEoperations are measured by degree of customization in job shops
TRUEJob shops are not usually involved in mass productions
TRUEJob shops posses higher skilled labors because of the customization involved with job shops
TRUELine flow operations are more cost effective because they produce in large quantities
FALSEThere is mass production in lie flow operation
g In the Shaping Department of Crane Company the unit materials cost is $2.00 and the unit conversion cost is $1.50. The department transferred out 7000 units and had 1500 units in ending work in process 20% complete. If all materials are added at the beginning of the process, the total cost to be assigned to the ending work in process is $1050. $5250. $3000. $3450.
Answer:
$3,450
Explanation:
Step 1 : Equivalent units of production in work in process
Materials = 1,500 x 100 % = 1,500
Conversion Costs = 1,500 x 20 % = 300
Step 2 : Cost to be assigned to the ending work in process
Materials (1,500 x $2.00) $3,000
Conversion (300 x $1.50) $450
Total $3,450
Conclusion
the total cost to be assigned to the ending work in process is $3,450.
Senff Corporation uses the following activity rates from its activity-based costing to assign overhead costs to products: Activity Cost Pools Activity Rate Setting up batches $ 89.00 per batch Processing customer orders $ 79.41 per customer order Assembling products $ 14.11 per assembly hour Data concerning two products appear below: Product V91Z Product V21I Number of batches 70 13 Number of customer orders 21 10 Number of assembly hours 493 698 How much overhead cost would be assigned to Product V91Z using the activity-based costing system? (Round your intermediate calculations to 2 decimal places.)
Answer:
$14,853.84
Explanation:
Calculation to determine How much overhead cost would be assigned to Product V91Z using the activity-based costing system
Overhead cost assigned to Product V91Z
Assembly product $6,956.23
($14.11*493)
Processing customer order $1,667.61
($79.41*21)
Setting up batches $6,230
($89*70)
Total $14,853.84
Therefore How much overhead cost would be assigned to Product V91Z using the activity-based costing system will be $14,853.84
Paparo Corporation has provided the following data from its activity-based costing system: Activity Cost Pool Total Cost Total Activity Assembly $ 794,300 47,000 machine-hours Processing orders $ 61,280 1,600 orders Inspection $ 109,681 1,430 inspection-hours Data concerning the company's product Q79Y appear below: Annual unit production and sales 500 Annual machine-hours 1,130 Annual number of orders 115 Annual inspection hours 20 Direct materials cost $ 42.00 per unit Direct labor cost $ 41.31 per unit According to the activity-based costing system, the average cost of product Q79Y is closest to:
Answer:
Unitary costs= $133.38
Explanation:
First, we need to calculate the activities rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Assembly= 794,300 / 47,000= $16.9 per machine-hour
Processing orders= 61,280 / 1,600= $38.3 per order
Inspection= 109,681 / 1,430= $76.7 per inspection-hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Assembly= 16.9*1,130= 19,097
Processing orders= 38.3*115= 4,404.5
Inspection= 76.7*20= 1,534
Total allocated costs= $25,035.5
Finally, the unitary costs:
Unitary allocated costs= 25,035.5/500= $50.07
Unitary costs= 50.07 + 42 + 41.31
Unitary costs= $133.38
06-14 Calculating EAR [LO4] First National Bank charges 13.1 percent compounded monthly on its business loans. First United Bank charges 13.4 percent compounded semiannually. Calculate the EAR for First National Bank and First United Bank. (Do not round intermediate calculations and enter your answers as a percent rounded to 2 decimal places, e.g., 32.16.) As a potential borrower, which bank would you go to for a new loan
Answer:
13.92%
13.85%
Explanation:
Effective annual interest = (1 + periodic interest)^m - 1
m = number of compounding
Periodic interest = annual interest rate / number of compounding
(1 + 0.131/12)^12 - 1 = 13.92%
(1 + 0.134/2)^2 - 1 = 13.85%
The following account balances were taken from the adjusted trial balance for Capstone Messenger Service, a delivery service firm, for the fiscal year ended April 30, 20Y7: Depreciation Expense $9,800 Fees Earned 520,400 Insurance Expense 1,860 Miscellaneous Expense 3,920 Rent Expense 74,500 Salaries Expense 261,700 Supplies Expense 3,330 Utilities Expense 28,400 Prepare an income statement.
Answer and Explanation:
The preparation of the income statement is presented below:
Revenues
Fees earned $520,400
Total revenues $520,400
Less expenses:
Depreciation Expense $9,800
Insurance Expense $1,860
Miscellaneous Expense $3,920
Rent Expense $74,500
Salaries Expense $261,700
Supplies Expense $3,330
Utilities Expense $28,400
Total expenses $383,510
Net income $136,890
Corporation produces a single product. The standard cost card for the product follows:
Direct materials (4 yards $5 per yard) $20
Direct labor (1.5 hours $10 per hour) $15
Variable manufacturing overhead (1.5 hrs $4 per hour) $6
During the year, the company produced 8,840 units of product and incurred the following actual results:
Materials purchased, 56,100 yards at $2.10 per yard $117,810
Materials used in production (in yards) 36,450
Direct labor cost incurred, 18,000 hours at $8.20 per hour $147,600
Variable manufacturing overhead cost incurred $57,400
Fixed manufacturing overhead cost incurred $117,000
Ignore the variable manufacturing overhead data.
1. The materials price variance far the period is:_____.
A. $1,250 F.
B. $1,500 F.
C. $1,250 U.
D. $1,500 U.
2. The materials quantity variance for the period is:_____.
A. $950 U.
B. $5,000 F.
C. $1,000 U.
D. $6,000 F.
3. The labor rate variance for the period is:_____.
A. $3,150 U.
B. $2,700 F.
C. $2,700 U.
D. $3,150 F.
4. The labor efficiency variance for the period is:_____.
A. $3,000 U.
B. $2,550 U.
C. $2,550 F.
D. $3,000 F.
Answer:
Results are below.
Explanation:
To calculate the direct material price and quantity variance, we need to use the following formulas:
Direct material price variance= (standard price - actual price)*actual quantity
Direct material price variance= (5 - 2.1)*56,100
Direct material price variance= $169,690 favorabe
Direct material quantity variance= (standard quantity - actual quantity)*standard price
Direct material quantity variance= (8,840*4 - 36,450)*5
Direct material quantity variance= $5,450 unfavorable
To calculate the direct labor efficiency and rate variance, we need to use the following formulas:
Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate
Direct labor time (efficiency) variance= (1.5*8,840 - 18,000)*10
Direct labor time (efficiency) variance= $47,400 unfavorable
Direct labor rate variance= (Standard Rate - Actual Rate)*Actual Quantity
Direct labor rate variance= (10 - 8.2)*18,000
Direct labor rate variance= $32,400 favorable
Information for Pueblo Company follows: Product A Product B Sales Revenue $ 59,000 $ 51,000 Less: Total Variable Cost $ 11,400 $ 31,500 Contribution Margin $ 47,600 $ 19,500 The total fixed costs are $42,000. Determine target sales needed to earn a $20,000 target profit. (Do not round intermediate calculations. Round your answer to 2 decimal places.)
Answer:
$101,639.34
Explanation:
Given the above information,
Product A Product B Total
Sales revenue $59,000 $51,000 $110,000
Contribution margin $47,600 $19,500 $67,100
Overall contribution margin ratio 61%
Fixed cost + Target profit [$42,000 + $20,000] $62,000
Break even dollars in sales = $62,000 / 61% = $101,639.34
Ben and Jerry were currently both producing at point A on their production possibilities frontier and then Ben decided he would be willing to trade 4 pounds of cones to get 2 pounds of ice cream from Jerry. If both decided to specialize in what they had a comparative advantage in and trade, the gains from trade would be a. 1 pound of cones for Ben and 1 pound of ice cream for Jerry. b. 1 pound of ice cream for Ben and 1 pound of cones for Jerry. c. 2 pounds of ice cream for Ben and 2 pounds of cones for Jerry. d. 2 pounds of ice cream for Ben and 1 pound of cones for Jerry.
Answer:
b. 1 pound of ice cream for Ben and 1 pound of cones for Jerry.
Explanation:
Ben and Jerry both produce ice cream. They can have comparative advantage with producing the specialized product. Ben can gain from the trade if it produces more of ice cream and less or no cones. Jerry would gain the comparative advantage if it would produce cones for the ice cream. Both of them can have comparative advantage by selling the specialized products to each other.
Liang Company began operations in Year 1. During its first two years, the company completed a number of transactions involving sales on credit, accounts receivable collections, and bad debts. These transactions are summarized as follows. Year 1 Sold $1,349,100 of merchandise (that had cost $981,900) on credit, terms n/30. Wrote off $20,200 of uncollectible accounts receivable. Received $674,200 cash in payment of accounts receivable. In adjusting the accounts on December 31, the company estimated that 2.70% of accounts receivable would be uncollectible.Year 2 e. Sold $1,514,600 of merchandise (that had cost $1,299,000) on credit, terms n/30. f. Wrote off $26,700 of uncollectible accounts receivable. g. Received $1,110,700 cash in payment of accounts receivable. h. In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Required: Prepare journal entries to record Liang's Year 1 and Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) (Round your intermediate calculations to the nearest dollar.) Complete this question by entering your answers in the tabs below. JE Year 1 JE Year 2 Prepare journal entries to record Liang's Year 2 summarized transactions and its year-end adjustments to record bad debts expense. (The company uses the perpetual inventory system and it applies the allowance method for its accounts receivable.) View transaction list Journal entry worksheet 5 In adjusting the accounts on December 31, the company estimated that 2.60% of accounts receivable would be uncollectible. Note: Enter debits before credits. Transaction General Journal Debit Credit h. Clear entry View general journal Record entry
Answer:
1). Account receivables A/c Dr. $1,345,000
To sales revenue A/c $1,345,000
(Being the sales revenue is recorded)
Cost of good sold A/c Dr. $975,700
To merchandise inventory A/c $975,700
(Being the cost is recorded)
2. Allowance for doubtful accounts A/c Dr. $19,400
To accounts receivable A/c $19,400
(Being the written off is recorded)
3. Cash A/c Dr. $670,800
To accounts receivables A/c $670,800
(Being cash received is recorded
1. .Account receivable A/c Dr. $1,529,400
To sales A/c $1,529,400
(Being the sales revenue is recorded)
Cost of good sold A/c Dr. $1,332,100
To merchandise inventory A/c $1,332,100
(Being the cost of goods sold is recorded)
2. Allowance for doubtful accounts A/c Dr. $27,000
To Account receivable A/c $27,000
(Being the written off amount is recorded)
3. Cash A/c Dr. $1,391,600
To account receivable A/c $1,391,600
(Being the cash received is recorded)
4. Bad-debts expense A/c Dr. $28,000
(765,600 × 1% + 20,344)
To allowance for doubtful accounts A/c $28,000
(Being the bad debt expense is recorded)
Working note:
Ending Receivables = (654800 + 1529400 - 27,000 - 1,391,600) = $765,600
Total Receivables of 1st Year = 1,345,000 - 19,400 - 670,800 = $654,800
Before Adjustment Ending Allowance Balance = 65,4800 × 1% - 27,000
= 6,548 - 27,000
= 20,344 Debit BalanceThe journal entries are shown below:
According to the scenario, computation of the given data are as follows:-
Journal Entries for 1st year
1). Account receivables A/c Dr. $1,345,000
To sales revenue A/c $1,345,000
(Being the sales revenue is recorded)
Cost of good sold A/c Dr. $975,700
To merchandise inventory A/c $975,700
(Being the cost is recorded)
2. Allowance for doubtful accounts A/c Dr. $19,400
To accounts receivable A/c $19,400
(Being the written off is recorded)
3. Cash A/c Dr. $670,800
To accounts receivables A/c $670,800
(Being cash received is recorded)
4. Bad-debts expense A/c Dr. $38,389
(1,345,000-19,400-670,800) × 2.90+ $19,400
To allowance for doubtful accounts A/c $38,389
(Being the bad debt expense is recorded)
Journal Entries for 2nd year
1. .Account receivable A/c Dr. $1,529,400
To sales A/c $1,529,400
(Being the sales revenue is recorded)
Cost of good sold A/c Dr. $1,332,100
To merchandise inventory A/c $1,332,100
(Being the cost of goods sold is recorded)
2. Allowance for doubtful accounts A/c Dr. $27,000
To Account receivable A/c $27,000
(Being the written off amount is recorded)
3. Cash A/c Dr. $1,391,600
To account receivable A/c $1,391,600
(Being the cash received is recorded)
4. Bad-debts expense A/c Dr. $28,000
(765,600 × 1% + 20,344)
To allowance for doubtful accounts A/c $28,000
(Being the bad debt expense is recorded)
Working note:
Ending Receivables = (654800 + 1529400 - 27,000 - 1,391,600) = $765,600
Total Receivables of 1st Year = 1,345,000 - 19,400 - 670,800 = $654,800
Before Adjustment Ending Allowance Balance = 65,4800 × 1% - 27,000
= 6,548 - 27,000
= 20,344 Debit Balance
Explanation:
Declining Balance Depreciation Irons Delivery Inc. purchased a new delivery truck for $40,600 on January 1, 2019. The truck is expected to have a $2,000 residual value at the end of its 5-year useful life. Irons uses the double-declining-balance method of depreciation. Required: Prepare the journal entry to record depreciation expense for 2019 and 2020.
Answer:
A. Depreciation expense $16240
Cr Accumulated depreciation $16240
B. Dr Depreciation expense $9744
Cr Accumulated depreciation $9744
Explanation:
A. Preparation of the journal entry to record depreciation expense for 2019 and 2020.
Dr Depreciation expense $16240
Cr Accumulated depreciation $16240
(Record double-declining-balance depreciation expense)
Depreciation expense for 2019= $40,600 × (1/5 × 2)
Depreciation expense for 2019= $16240
B. Preparation of the journal entry to record depreciation expense for 2020
Dr Depreciation expense $9744
Cr Accumulated depreciation $9744
[($40,600 –$16,240) × (1/5 × 2) = 9744]
(Record double-declining-balance depreciation expense)Depreciation expense for 2020
Jefferson is interested in starting his own business. He plans to borrow money from the local bank in order to finance the business. They will require him to submit a business plan and a(n) _____.a.buy-out planb.income statementc.partnership agreementd.financial plan
Answer:
d.financial plan
Explanation:
A financial plan is a document that gives a picture of the monetary position of a person or entity, their future monetary goals, along with strategies that are aimed meeting such goals.
A business plan is the general goals of a business and ways in which they can be achieved.
In the given scenario Jefferson has given his business plan. But he also needs to give a financial plan that will show the bank how feasible his business is.
Lewis Incorporated and Clark Enterprises report the following amounts for the year. Lewis Clark Inventory (beginning) $18,000 $44,000 Inventory (ending) 12,000 54,000 Purchases 174,000 181,600 Purchase returns 9,000 54,000 Required:1. Calculate cost of goods sold for each company.2. Calculate the inventory turnover ratio for each company.3. Calculate the average days in inventory for each company.
4. Explain which company appears to be managing its inventory more efficiently.
Answer:
Lewis Incorporated and Clark Enterprises
Lewis Clark
1. Cost of goods sold $171,000 $117,600
2. Inventory turnover ratio 11.4 2.4
3. Average days in inventory 32 152
4. Given the ratios and the figures, Lewis Incorporated is managing its inventory more efficiently than Clark Enterprises.
Explanation:
a) Data and Calculations:
Lewis Clark
Inventory (beginning) $18,000 $44,000
Purchases 174,000 181,600
Purchase returns (9,000) (54,000)
Inventory (ending) (12,000) (54,000)
Cost of goods sold $171,000 $117,600
Inventory (beginning) $18,000 $44,000
Inventory (ending) 12,000 54,000
Total inventory $30,000 $98,000
Average inventory $15,000 $49,000
Inventory turnover ratio = Cost of goods sold/Average Inventory
Cost of goods sold $171,000 $117,600
Average inventory $15,000 $49,000
Inventory turnover
ratio 11.4 2.4
Average days in inventory = 365/Inventory turnover ratio
= 32 152
Put the following statements in the correct order to summarise the sequence of events in moving from the short-run to the long-run in perfect competition.
Answer:
ok
Explanation:
It doesn't surprise you at all that Alex is a bit confused by what these activities mean. You explain the following: Cash flows from operations are cash inflows and outflows caused by the restaurant's main business -- selling food and beverages and catering. Cash flows from investing are payments made to acquire long-term assets or cash received from the sale of long-term assets. Cash flows from financing reflect changes in debt, loans, or dividends. You're still getting a blank look from Alex, so you give him a series of examples to help him understand the different categories. Consider each of the following items and determine whether it affects cash flows from operating, investing, or financing, and whether it is a cash inflow or a cash outflow. Then drag and drop that item into the correct bucket and click Submit. 1. The restaurant buys a new 10-burner range and convection oven. 2. You pay off the mortgage on the building. 3. You obtain a short-term loan from the bank. 4. You pay the supplier for a shipment of meat. 5. You sell a used walk-in cooler. 6. A company pays for its catering bill by giving you a check. 7. You send in your quarterly estimated income tax payment. 8. The restaurant buys a new delivery truck to be used in its growing catering business. 9. You incorporate the restaurant and sell shares of stock. 10. You purchase the building next door to the restaurant so you can add more seating area for customers.A. Cash Inflow from Operations B. Cash Outflow from OperationsC. Cash Inflow from InvestingD. Cash Outflow from InvestingE. Cash Inflow from FinancingF. Cash Outflow from Financing
Answer:
Statement of Cash Flows Activities
1. Investing activity: D. Cash Outflow from Investing
2. Financing activity: F. Cash Outflow from Financing
3. Financing activity: E. Cash Inflow from Financing
4. Operating activity: B. Cash Outflow from Operations
5. Investing activity: C. Cash Inflow from Investing
6. Operating activity: A. Cash Inflow from Operations
7. Operating activity: B. Cash Outflow from Operations
8. Investing activity: D. Cash Outflow from Investing
9. Financing activity: E. Cash Inflow from Financing
10. Investing activity: D. Cash Outflow from Investing
Explanation:
a) Data and Options:
A. Cash Inflow from Operations
B. Cash Outflow from Operations
C. Cash Inflow from Investing
D. Cash Outflow from Investing
E. Cash Inflow from Financing
F. Cash Outflow from Financing
All the terms are already explained in the scenario.