Answer:
d
Explanation:
because it is declined i think
If merchandise is sold on account to a customer for $10,000, terms FOB shipping point, 1/10, n/30, what is the amount to be recorded as an accounts receivable on the date of the sale?
a. $10,000
b. $10,050
c. $9,950
d. none of the above
Answer: a. $10,000
Explanation:
The amount to be recorded as an Accounts Receivable on the date of the sale is the actual amount that the merchandise was sold for which is $10,000.
The discount of 1% if paid within 10 days will only apply if the customer pays within that time and if this is done, the discount will be deducted from the amount paid to the company and debited to the Sales discount account.
United Parcel Service, Inc. (Ticker: UPS (Links to an external site.)) estimates its cost for a distribution center at $18.63 million. Management has decided to invest $1.1 million a quarter to fund the project. Assuming that the firm can earn a return of 6.25 percent, compounded quarterly, on its savings, how long does the firm have to wait before expanding its operations
Answer:
It will take 182.44 quarters to reach $18,630,000.
Explanation:
Giving the following information:
Future Value= $18,630,000
Initial Investment= $1,100,000
Interest rate= 0.0625/4= 0.01563
To calculate the time required to reach the objective, we need to use the following formula:
n= ln(FV/PV) / ln(1+i)
n= ln(18,630,000 / 1,100,000) / ln (1.01563)
n= 182,44
It will take 182.44 quarters to reach $18,630,000.
Waterway Beauty Corporation manufactures cosmetic products that are sold through a network of sales agents. The agents are paid a commission of 21% of sales. The income statement for the year ending December 31, 2020, is as follows.
WATERWAY BEAUTY CORPORATION
Income Statement For the Year Ended December 31, 2020
Sales $79,000,000
Cost of goods sold
Variable $32,390,000
Fixed 8,750,000 41,140,000
Gross margin $37,860,000
Selling and marketing expenses
Commissions $16,590,000
Fixed costs 10,607,200 27,197,200
Operating income $10,662,800
The company is considering hiring its own sales staff to replace the network of agents. It will pay its salespeople a commission of 9% and incur additional fixed costs of $9,480,000.
Under the current policy of using a network of sales agents, calculate the Bonita Beauty Corporation's break-even point in sales dollars for the year 2017. (Round intermediate calculations to 2 decimal places e.g. 10.25 and final answers to 0 decimal places, e.g 2,510.)
Break-even point: $ _ _ _ _ _ _
Answer:
$50,940,000
Explanation:
Calculate the Bonita Beauty Corporation's break even point in sales dollars for the year 2017.
Please see as attached, detailed solution to the above question.
Flo enters into a contract with Global Shipping Ltd. to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would a. enforce the contract as is. b. allow the parties to rescind the contract. c. award damages to Global for the mistake. d. award damages to Flo for the mistake.
Answer:
b. Allow the parties to rescind the contract
Explanation:
Flo enters into a contract with Global Shipping Ltd. to insure and ship a painting from France to the United States at a certain amount mentioned in the contract. However, Global Shipping Ltd. makes a mistake in calculating the costs. As a result, a contract price is equal to the amount that is $1,000 less than the true cost. Most likely, a court would allow the parties to rescind the contract.
Option b. is correct.
The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities is:
Answer:
Acid-test ratio
Explanation:
Acid-test ratio I finance can also be regarded as quick ratio, it gives the measurement of how an organization can utilize her quick asset as well as cash to settle her liabilities at at that current period.
It can be calculated theoretically using this expresion;
Quick ratio= (Current Asset- Inventory)/Current Liabilities
It should be noted that acid-test ratio gives The ratio of total cash, marketable securities, accounts receivable, and short-term notes to current liabilities. It enables to know shot term liquidity of a particular company.
Flyer Company has provided the following information prior to any year-end bad debt adjustment: Cash sales, $152,000 Credit sales, $452,000 Selling and administrative expenses, $112,000 Sales returns and allowances, $32,000 Gross profit, $492,000 Accounts receivable, $130,000 Sales discounts, $16,000 Allowance for doubtful accounts credit balance, $1,400 Flyer prepares an aging of accounts receivable and the result shows that 3% of accounts receivable is estimated to be uncollectible. How much is bad debt expense
Answer:
$2,500
Explanation:
The computation of bad debt expense is shown below:-
Total Bad Debt = $130,000 × 3%
= $3,900
Balance of allowance for doubtful accounts after Bad debt Expense = Total bad debt - Allowance for doubtful account credit balance
= $3,900 - $1,400
= $2,500
So, we have applied the above formula.
The same is to be considered
A particular raw material is available to a company at three different prices, depending on the size of the order: Less than 100 pounds $ 25 per pound 100 pounds to 3,999 pounds $ 24 per pound 4,000 pounds or more $ 23 per pound The cost to place an order is $40. Annual demand is 2,700 units. Holding (or carrying) cost is 25 percent of the material price. What is the economic order quantity to buy each time, and its total cost
Answer:
EOQ = 201 units
total cost = $66,007.35
Explanation:
we can calculate the EOQ using 2 different prices (it makes no sense to use $23 since the minimum order size is larger than annual demand):
EOQ = √[(2 x S x D) / H]
S = order costD = annual demandH = holding cost$25 per unit
S = $45
D = 2,700
H = $25 x 25% = $6.25
EOQ = √[(2 x 45 x 2,700) / 6.25] = 197.18
$24 per unit
S = $45
D = 2,700
H = $24 x 25% = $6
EOQ = √[(2 x 45 x 2,700) / 6] = 201.25 ≈ 201 units
since both EOQs are higher than 100 units, then we must use $24 per unit
you have to make 2,700 / 201 = 13.43
total cost = (13.43 x $45) + (2,700 x $24) + (201 x $6 x 0.5) = $604.35 + $64,800 + $603 = $66,007.35
What is a "closing balance?
a.) The amountof money you have at the end of the statement period
b.)The amount of money you have when you close your account
c.)The amount of money you owe at the end of the statement period
d.)The amount of money waiting to be transferred out of your account
Faster pls
Answer:
The answer is A
Explanation:
A closing balance is the amount of money a business has at the end of a specific time period.
Two methods can be used for producing solar panels for electric power generation. Method 1 will have an initial cost of $550,000, an AOC of $160,000 per year, and $125,000 salvage value after its 3-year life. Method 2 will cost $830,000 with an AOC of $120,000, and a $240,000 salvage value after its 5-year life. Assume your boss asked you to determine which method is better, but she wants the analysis done over a 3-year planning period. You estimate the salvage value of method 2 will be 35% higher after 3 years than it is after 5 years. If the MARR is 10% per year, which method should the company select?
Answer:
method 1 should be selected.
Explanation:
for method 1:
p = 550000
a = 160000
s = 125000
I = 10%
n = 3 years
aw = -550000(a/p, 0.10,3)-160000+125000(a/f,0.10,3)
= -550000(0.4021)-160000+125000(0.3021)
= -221155-160000+37762.5
= -343.392.5 dollars
for method 2:
salvage value = 240000x1.35
= 324000
p= 830000
a = 120000
s = 324000
I = 0.10 or 10%
n = 3
aw = -830000(a/p,0.10,3)-120000+324000(a/f,10%,3)
= -830000(0.4021)-120000+324000(0.3021)
= -333743-120000+97880.4
= -355862.6 dollars
after comparing both values, method 1 is better
All the long-term debt of a government, including the long-term debt that will be financed by Enterprise Fund revenues, is reported in the fund-level financial statements.
a. True
b. False
Answer: False
Explanation:
False.
Long term debt is a debt owed by an economic entity which could either be the inividual, a business or the government and such debts are expected to mature in a period of at least one year.
It should be noted that the long term debt isn't reported in fund level financial statement but rather it's reported in government wide statements.
Between January 2010 and January 2016, U.S. employment increased by 12.1 million workers, but the number of unemployed workers declined by only 7.3 million. True or False: The labor force has remained unchanged.
Answer:
False, the labor forced increased
Explanation:
labor force = total number of people actively working (employed) or searching for jobs (unemployed)
lets say L = the total labor force in 2010
by 2016, L had increased by 12.1 million and decreased by 7.3 million
net change of L = 12.1 - 7.3 = 4.8 more million people were part of the labor force in 2016 than in 2010.
Required information Problem 17-3A Applying activity-based costing LO P1, P3, A1, A2, C3 [The following information applies to the questions displayed below.] Craft Pro Machining produces machine tools for the construction industry. The following details about overhead costs were taken from its company records. Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 320,000 Polishing $ 135,000 Product modification 600,000 Providing power $ 255,000 System calibration 500,000 Additional information on the drivers for its production activities follows. Grinding 13,000 machine hours Polishing 13,000 machine hours Product modification 1,500 engineering hours Providing power 17,000 direct labor hours System calibration 400 batches Job 3175 Job 4286 Number of units 200 units 2,500 units Machine hours 550 MH 5,500 MH Engineering hours 26 eng. hours 32 eng. hours Batches 30 batches 90 batches Direct labor hours 500 DLH 4,375 DLH Problem 17-3A Part 5 Required: 5. If the company uses a plantwide overhead rate based on direct labor hours, what is the overhead cost for each unit of Job 3175? Of Job 4286? (Do not round intermediate calculations. Round "OH Cost per unit" answers to 2 decimal places.)
Answer:
Craft Pro Machining
The overhead cost for each unit of the jobs:
Job 3175 Job 4286
Number of units 200 units 2,500 units
Direct labor hours 500 DLH 4,375 DLH
Plantwide overhead rate = $371.28205
Overhead allocation $185,641.03 $1,624,358.97
Unit overhead cost $928.21 $649.74
Explanation:
a) Data and Calculations:
Production Activity Indirect Labor Indirect Materials Other Overhead Grinding $ 320,000
Polishing $ 135,000
Product modification 600,000
Providing power $ 255,000
System calibration 500,000
Total overhead cost $1,810,000
Additional information on the drivers for its production activities follows.
Grinding 13,000 machine hours
Polishing 13,000 machine hours
Product modification 1,500 engineering hours
Providing power 17,000 direct labor hours
System calibration 400 batches
Job 3175 Job 4286
Number of units 200 units 2,500 units
Machine hours 550 MH 5,500 MH
Engineering hours 26 eng. hours 32 eng. hours
Batches 30 batches 90 batches
Direct labor hours 500 DLH 4,375 DLH 4,875 DLH
Plantwide overhead rate based on direct labor hours:
= Total overhead costs/Total direct labor hours
= $1,810,000/4,875
= $371.28205
A lawn company intends to use the sales of lawn fertilizer to predict the sales of lawn mower. The store manager estimates a probable six-week lag between fertilizer sales and mower sales. The pertinent data are
Answer:
Period ; Fertilizer ; Sales
1 ; 1.6 ; 10
2; 1.3 ; 8
3; 1.8 ; 11
4; 2.0 ; 12
5; 2.2 ; 12
6; 1.6 ; 9
7; 1.5 ; 8
8; 1.3 ; 7
9; 1.7 ; 10
10; 1.2 ; 6
Explanation:
Correlation is 0.960
R-Squared is 0.921
This is positive correlation which means both variables will move in same direction.
Slope is 6.153
Intercept is -0.649
Regression line will be formed with x intercept as fertilizers and y intercept as Lawn Mowers sold.
Bond Ratings. Companies pay rating agencies such as Moody’s and S&P to rate their bonds, and the costs can be substantial. However, companies are not required to have their bonds rated in the first place; doing so is strictly voluntary. Why so you think they do so?
Answer:
Bond Ratings
Companies employ rating agencies such as Moody's and S&P to rate their bonds despite the substantial costs and their voluntariness because ratings by these agencies add a badge of honor to the bonds. It gives investors some level of assurance that the bonds will be honored at maturity and that the pricing is right, given the company's credit risk.
Explanation:
Credit risk rating agencies assess the credit risk of a company or financial product as formal and credit-worthy benchmarks for investment decisions. While companies pay huge costs to have these ratings conducted by the big three, including Moody's, S&P, and Fitch, the main value goes to the potential investors who require the information to decide whether to invest in the rated companies.
Gold Corp. sells office furniture. In 2020, it sold 200 desks for $500 each. For each desk sold, Gold Corp. distributed a 50% discount coupon for purchase of an office chair valid for two months. Based on historical experience, Gold Corp. expects that approximately 20% of the coupons will be utilized. The chairs purchased with the coupons are priced at $150 and normally discounted 10%. What would be the stand-alone sales price used by Gold Corp. for the coupon when allocating the $500 transaction price to the performance obligations
Answer:
Gold Corp.
The stand-alone sales price is $135
Explanation:
a) Data and Calculations:
Selling price of desks = $500 per unit
Selling price of chairs = $150 per unit
Combined price of desks and chairs = $650
50% discount coupon on chairs = $75 (50% * $150)
Normal discount price of chairs = $135 ($150 * 90%)
Combined price of desks and discounted chair = $575 ($500 + $75)
Allocation of transaction price:
Desk = $575 * $500/$635 = $452.76
Chair = $575 * $135/$635 = $122.24
Total = $575
Catharine, Inc. is considering issuing additional long-term debt to finance an expansion. The company currently has $20 million in 5% debt outstanding. Its earnings after-tax (EAT) are $3.0 million, and its marginal and average tax rate is 40 percent. The company is required by the debt holders to maintain its times interest earned ratio at 3.0 or greater. How much additional 10 percent debt can Catharine, Inc issue now and maintain its times interest earned ratio at 3.0
Answer:
$10 million
Explanation:
Calculation for How much additional 10 percent debt can Catharine, Inc issue
First step is to find the EBT
EBT = $3.0 / (1 - 0.40)
EBT= $5.0
Second step is to find the EBIT
EBIT = $5.0 + $1.0
EBIT= $6.0
Third step is to find the Interest permitted using this formula
Interest permitted = EBIT / Times interest earned
Let plug in the formula
Interest permitted = $6.0 / 3.0
Interest permitted = $2.0
Fourth step is to find the Additional interest amount
Additional interest = $2.0 - $1.0
Additional interest = $1.0
Last step is to compute the Additional debt amount
Additional debt = $1.0 / 0.1
Additional debt= $10 million
Therefore the Additional debt will be $10 million
Suppose that Sophia expects to serve 15 percent more meals in the next quarter. Unit variable costs are expected to remain unchanged. However, Sophia knows that if the restaurant serves over 5,500 meals in a quarter, she must hire an additional manager (part-time) at a cost of $6,450 for the quarter. Other fixed costs are expected to increase by 10 percent. Calculate the unit cost and the total cost if 5,750 meals are served next quarter
Answer:
$87,975
15.30
Explanation:
The computation of unit cost and total cost is shown below:-
Managers' salary ($22,000 + $6,450) $28,450
Rent $18,000
Depreciation on equipment $2,000
Other fixed cost (3,000 × 1.1) 3,300
Total Fixed cost $51,750
Total Cost = $36,225 + $51,750
= $87,975
Unit Cost = 87,975 ÷ 5,750
= 15.30
Teakap, Inc., has current assets of $1,456,312 and total assets of $4,812,369 for the year ending September 30, 2016. It also has current liabilities of $1,041,012, common equity of $1,500,000, and retained earnings of $1,468,347. What is the value of long term debt?
Answer:
$803,010
Explanation:
Calculation for the value of long term debt
First step is to find the Stockholders' equity
Stockholders' equity = $1,500,000 + $1,468,347 Stockholders' equity= $2,968,347
Last step is to find the Long-term debt
Using this formula
Value of Long-term debt= Total assets – Current liabilities – Stockholders' equity
Let plug in the formula.
Value of Long-term debt= $4,812,369 – $1,041,012 – $2,968,347
Value of Long-term debt = $803,010
Therefore the Value of Long-term debt
will be $803,010
Bluebird Mfg. has received a special one-time order for 15,000 bird feeders at $3 per unit. Bluebird currently produces and sells 75,000 units at $7.00 each. This level represents 80% of its capacity. Production costs for these units are $3.50 per unit, which includes $2.25 variable cost and $1.25 fixed cost. If Bluebird accepts this additional business, the effect on net income will be:
Answer:
Effect on income= $11,250
Explanation:
Giving the following information:
Production costs:
Variable= $2.25
Special offer:
Selling price= $3
Units= 15,000
Because it is a special offer, and there is unused capacity, we will not take into account the fixed costs.
Effect on income= Number of units*unitary contribution margin
Unitary contribution margin= 3 - 2.25= $0.75
Effect on income= 15,000*0.75= $11,250
Juniper Corp. makes three models of insulated thermos. Juniper has $306,000 in total revenue and total variable costs of $192,780. Its sales mix is given below: Percentage of total sales Thermos A 30 % Thermos B 48 Thermos C 22 Required: 1. Calculate the (overall) weighted-average contribution margin ratio. 2. Determine the total sales revenue Juniper needs to break even if fixed costs are $73,075. 3. Determine the total sales revenue needed to generate a profit of $78,070. 4. Determine the sales revenue from each product needed to generate a profit of $78,070.
Answer:
Follows are the solution to this question:
Explanation:
In Option 1:
[tex]\to CM \ ratio = \frac{(Sales - variable\ cost)}{variable\ cost}[/tex]
[tex]= \frac{(306,000 - 192,780)}{306,000}\\\\= \frac{113,220}{306,000}\\\\= 0.37 \%[/tex]
In Option 2: .
[tex]\to BEP = \frac{Total \ fixed \ cost}{CM \ ratio}[/tex]
[tex]= \frac{73,075}{0.37}\\\\=\$ \ 197500[/tex]
In Option 3:
[tex]\to Required \ sales = \frac{(73,075+ 78,070)}{0.37}[/tex]
[tex]=\frac{151145}{0.37}\\\\=408500[/tex]
In Option 4:
[tex]\to Sales A = 408500 \times \frac{30}{100} = 1361666.67\\\\\to Sales B = 408500\times \frac{48}{100} = 851041.667\\\\\to Sales C = 408500\times \frac{22}{100} = 1856818.18\\\\[/tex]
7. The theory of efficiency wages Why might some firms voluntarily pay workers a wage above the market equilibrium, even in the presence of surplus labor? Check all that apply. Paying higher wages encourages workers to be more productive. Higher wages cause workers to shirk more of their responsibilities. Paying higher wages can reduce a firm's training costs. Higher wages attract a more competent pool of workers.
Answer:
Paying higher wages encourages workers to be more productive.
Explanation:
Firms pay workers a wage above the market equilibrium even in the presence of surplus labor to encourage the workers to work hard. Increasing a workers wage is known to be an effective method to motivating which later brings about efficiency in output from the workers. It is also use to appreciate the efforts of employees by showing them that company cares for their basic requirement.
Answer:
paying higher wages encourages workers to be more productive
Paying higher wages can reduce a firm's training costs.
Higher wages attract a more competent pool of workers.
Explanation:
Paying higher wages enhances workers to adopt healthier lifestyles, enhancing their productivity.
When a firm pays high wages, it attracts a better pool of workers to apply for its jobs and thereby increases the quality of its workforce
Workers who are shirking their responsibilities are fired
Your classmates from the University of Chicago are planning to go to Miami for spring break, and you are undecided about whether you should go with them. The round-trip airfare is $600, but you have a frequent-flyer coupon worth $500 that you could use to pay part of the airfare. All other costs for the vacation are exactly $900. The most you would be willing to pay for the trip is $1,400. Your only alternative use for your frequent-flyer coupon is for your trip to Atlanta two weeks after the break to attend your sister's graduation, which your parents are forcing you to attend. The Chicago-Atlanta round-trip airfare is $450. If the Chicago-Atlanta round-trip air fare were $350, should you use the coupon to go to Miami?
Answer:
You should use the discount coupon to pay for the Chicago-Miami trip. Not considering the personal motivations for the trip, the coupon is worth $500. The cost of flying is $600, so you will only pay $100 yourself. You will be spending $900 + $1000 = $1,000 in total.
The opportunity cost of using the coupon is $350 (the cost of the round trip to Atlanta). Even if you add the $350 to the $1,000 expense, the total is $1,350, less than your $1,400 maximum budget.
Here are comparative statement data for Duke Company and Lord Company, two competitors. All balance sheet data are as of December 31, 2020, and December 31, 2019.
2020 2019 2020 2019
(Duke Company) (Duke Company) (Lord Company) (Lord
Company)
Net sales $1,896,000 $561,000
Cost of goods sold 1,020,048 297,330
Operating expenses 257,856 79,662
Interest expense 7,584 3,927
Income tax expense 54,984 6,171
Current assets 322,500 $310,000 83,500 $78,000
Plant assets (net) 520,800 500,300 139,800 123,000
Current liabilities 64,200 75,600 34,400 29,600
Long-term liabilities 108,400 90,400 28,400 26,000
Common stock, $10 par 498,000 498,000 122,500 122,500
Retained earnings 172,700 146,300 38,000 22,900
Prepare a vertical analysis of the 2017 income statement data for duke company and Lord company.
Answer:
Please attached detailed solution.
Explanation:
• Prepare a vertical analysis of the 2017 income statement data for Luke and Lord company.
Please see as attached detailed solution to the above question.
uh hi . . . . . . . . BANNNA BANNNABANNNA BANNNABANNNA BANNNA BANNNA BANNNA :) B)
Answer:
banannanannanannanannananan
Answer:
BANNNA BANNNA BANNNA BANNNA BANNNA BANNNA
Explanation:
Part 1
Suppose that nominal GDP was $11 trillion in 2040 in Mordor. In 2050, nominal GDP was $15 trillion in Mordor. The price level fell 3% between 2040 and 2050, and population growth was 2%. Between 2040 and 2050 in Mordor,
nominal GDP growth was______ %
and economic growth was______ %. (Give your answers to one decimal place.)
Part 2
Suppose that nominal GDP was $20 trillion in 2040 in Mordor. In 2050, nominal GDP was $18 trillion in Mordor. The price level rose 3% between 2040 and 2050, and population growth was 2%.
Between 2040 and 2050 in Mordor, nominal GDP growth was________ %
and economic growth was______ %. (Give your answers to one decimal place.)
Part 3
Suppose that nominal GDP was $8 trillion in 2040 in Mordor. In 2050, nominal GDP was $10 trillion in Mordor. The price level rose 18.0% between 2040 and 2050, and population growth was 13.0%.
Between 2040 and 2050 in Mordor, nominal GDP growth was___________ %
and economic growth was______ %. (Give your answers to one decimal place.)
Answer:
Part 1
Suppose that nominal GDP was $11 trillion in 2040 in Mordor. In 2050, nominal GDP was $15 trillion in Mordor. The price level fell 3% between 2040 and 2050, and population growth was 2%. Between 2040 and 2050 in Mordor,
nominal GDP growth was 36.4%
and economic growth was 37.4%.
total nominal growth rate:
(15 - 11) / 11 = 0.3636 = 36.4%
economic growth = nominal GDP growth rate - change in price level - population growth rate = 36.36% - (-3%) - 2% = 37.36%
Part 2
Suppose that nominal GDP was $20 trillion in 2040 in Mordor. In 2050, nominal GDP was $18 trillion in Mordor. The price level rose 3% between 2040 and 2050, and population growth was 2%.
Between 2040 and 2050 in Mordor, nominal GDP growth was -10%
and economic growth was -15%
total nominal growth rate:
(18 - 20) / 20 = -0.1 = -10%
economic growth = nominal GDP growth rate - change in price level - population growth rate = -10% - 3% - 2% = -15%
Part 3
Suppose that nominal GDP was $8 trillion in 2040 in Mordor. In 2050, nominal GDP was $10 trillion in Mordor. The price level rose 18.0% between 2040 and 2050, and population growth was 13.0%.
Between 2040 and 2050 in Mordor, nominal GDP growth was 25%
and economic growth was -6%.
total nominal growth rate:
(10 - 8) / 8 = 0.25 = 25%
economic growth = nominal GDP growth rate - change in price level - population growth rate = 25% - 18% - 13% = -6%
Item18 Time Remaining 22 minutes 25 seconds00:22:25 eBookItem 18Item 18 Time Remaining 22 minutes 25 seconds00:22:25 Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $34. It was determined that the cost to sell is $22 per unit. Using the lower of cost or net realizable value rule, what amount should b
Answer:
$12
Explanation:
Moore Company purchased an item for inventory that cost $20 per unit and was priced to sell at $34. It was determined that the cost to sell is $22 per unit. Using the lower of cost or net realizable value rule, what amount should be?
Cost per Unit = $20
Sale per unit = $34
Disposal cost = $22
Net realizable value per unit = Sale per unit - Disposal cost
Net realizable value per unit = $34 - $22
Net realizable value per unit = $12
Using the LCM method, $12 should be reported on the balance sheet for inventory.
Budgets are prepared in which of the following orders? Group of answer choices sales budget, production budget, direct materials purchases budget sales budget, cash budget, production budget production budget, cost of goods sold budget, direct labor budget production budget, sales budget, direct labor budget
Answer:
Sales Budget,
Production Budget,
Direct Materials Purchases Budget
Explanation:
The budgets are prepared so that the company could get to know how much revenue earned and the expenses to be incurred during a particular period of time. It gives an idea of how much would be earned and how much would be incurred
Here, in the following orders, the budgets could be prepared
Sales Budget,
Production Budget,
Direct Materials Purchases Budget
On April 30, one year before maturity, Middleton Company retired $200,000 of its 9% bonds payable at the current market price of 101 (101% of the bond face amount, or $200,000 1.01 3 5 $202,000). The bond book value on April 30 is $196,600, reflecting an unamortized discount of $3,400. Bond interest is currently fully paid and recorded up to the date of retirement. What is the gain or loss on retirement of these bonds
Answer:
Loss on retirement of these bonds = $5,400
Explanation:
Particulars Amount
Amount paid $202,000
Book value of bonds $196,600
Loss on retirement of bonds $5,400
However, this is not a real economic gain
in creating the master budget, the second budget a company prepares is the production budget. a. True b. False
Answer:
In creating the master budget, the second budget a company prepares is the production budget.
a. True
Explanation:
When a company prepares the master budget, it first prepares the sales budget, followed by the production budget. The production budget calculates the costs of materials, labor, and overhead based on the number of units to be manufactured within the budget period. The units of products are derived from the sales forecast and the planned amount of ending finished goods inventory.
Prepare adjusting entries for the following transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
1. Unrecorded interest accrued on savings bonds is $410.
2. Property taxes incurred but not paid or recorded amount to $800.
3. Unearned service revenue of $4,000 was collected in advance. By year end $700 was still unearned.
4. Prepaid insurance had a $750 debit balance prior to adjustment. By year end, 60 percent was still unexpired.
5. Salaries incurred by year end but not yet paid or recorded amounted to $650.
Answer:
1. Dr Interest Receivable 410
Cr Interest Revenue 410
2. Dr Property Tax Expense 800
Cr Property Taxes Payable 800
3. Dr Unearned Service Revenue 3,300
Cr Service Revenue 3,300
4. Dr Insurance Expense 300
Cr Prepaid Insurance 300
5. Dr Salaries and Wages Expense 650
Cr Salaries and Wages Payable 650
Explanation:
Preparation of Journal entries
1. Dr Interest Receivable 410
Cr Interest Revenue 410
2. Dr Property Tax Expense 800
Cr Property Taxes Payable 800
3. Dr Unearned Service Revenue 3,300
Cr Service Revenue 3,300
($4,000 – $700)
4. Dr Insurance Expense 300
Cr Prepaid Insurance 300
[$750 x (100%-60%)]
5. Dr Salaries and Wages Expense 650
Cr Salaries and Wages Payable 650