Answer:
correct option is b. $80,000
Explanation:
given data
cash sale = $100,000
gain on sale = $10,000
Purchase of equipment = $20000
bonds for cash = $50,000
solution
we get here net cash that provide by investing activity that is
net cash = cash sale of land - Purchase of equipment ..............1
put here value and we get
net cash = $100,000 - $20000
net cash = $80000
so correct option is b. $80,000
In what way is the mississippi college savings account program helping to bridge the economic divide?
Answer:
The mississippi college savings account program helps children save for more expensive schools by starting a savings account at a very young age.
The Mississippi College Savings Account Plan is helping bridge the economic drive by allowing the students to become familiar with the banking service, getting them used to the banking system and saving accounts.
The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,520, sells the remote separately for $95, and offers the installation service separately for $285. The entire package sells for $1,800.
Answer:
$1,440 ; $90 and $270
Explanation:
The computation of the allocation cost for each is shown below:
TV
= (Sale value of TV ÷ Total sales value) × (Entire package sales value)
= ($1,520 ÷ $1,900) × $1,800
= $1,440
Remote
= (Sale value of remote ÷ Total sales value) × (Entire package sales value)
= ($95 ÷ $1,900) × $1,800
= $90
Installation service
= (Sale value of Installation service ÷ Total sales value) × (Entire package sales value)
= ($285 ÷ $1,900) × $1,800
= $270
The total sales value
= $1,520 + $95 + $285
= $1,800
Slapshot Company makes ice hockey sticks. During the month of June, 1,900 sticks were completed at a cost of goods manufactured of $437,000. Suppose that on June 1, Slapshot had 350 units in finished goods inventory costing $80,000 and on June 30, 370 units in finished goods inventory costing $84,000.
Prepare a cost of goods sold statement for the month of June.
Answer:
COST OF GOODS SOLD 433,000
Explanation:
Beginning finished goods 80,000
cost of goods manufactured 437,000
Total goods available for sale 517,000
ending finished goods (84,000)
COST OF GOODS SOLD 433,000
The beginning along with the godos manufactured represent all the units available for sale during the period.
The ending finished goods represent the unsold part Hence the difference is cost of goods sold.
To prepare a cost of goods sold statement for Slapshot Company, we calculate the cost of goods sold by subtracting the ending inventory from the cost of goods available for sale. The cost of goods available for sale is the sum of the cost of goods manufactured and the beginning inventory. In this case, the cost of goods sold for the month of June is $433,000.
To prepare a cost of goods sold statement for the month of June, we need to calculate the cost of goods sold (COGS). COGS can be calculated by subtracting the ending inventory from the cost of goods available for sale. The cost of goods available for sale is the sum of the cost of goods manufactured and the beginning inventory. In this case, the beginning inventory is $80,000 and the cost of goods manufactured is $437,000. Therefore, the cost of goods available for sale is $517,000.
Next, we need to calculate the ending inventory. The number of units in ending inventory is 370, and the cost of these units is $84,000.
Now we can calculate the COGS: COGS = Cost of goods available for sale - Ending inventory = $517,000 - $84,000 = $433,000. Therefore, the cost of goods sold for the month of June is $433,000.
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The primary objective of financial reporting is to provide information:
a. About a firm's management team.
b. That is useful in decision making.
c. About a firm's financing and investing activities.
d. About a firm's product lines.
Answer:
The correct answer is letter "B": That is useful in decision making.
Explanation:
Financial reporting is the activity every business organization engages to analyze the current situation of the company's operations to take decisions. The Financial Statements are the core instruments firms review to find out how is the firm performing and what points could be improved to maximize the revenue.
Olympia Marketing has instituted new policies around misappropriation of assets, conflicts of interests, and kickbacks. Also with the local elections just around the corner, management sent out reminders about political contributions and confidentiality of company information. All of these policies can be found in Olympia Marketing’s
Answer: Code of Ethics
Explanation: Code of Ethics is a term used to describe a set of guildlines,rules or princess put in place by Organisations to ensure that it's members are guided accordingly.
It is adopted mainly by professional Organisations such Medical Doctors, Pharmacists, Engineer etc
Generally code of Ethics can be classified into five categories which includes INTEGRITY, CONFIDENTIALITY, OBJECTIVITY, PROFESSIONAL COMPETENCE AND PROFESSIONAL CONDUCT.These actions by Olympia marketing through which it instituted new policies to guide its personnel is CODE OF ETHICS.
You are starting the four-year college education today, and you are worried if you have enough money in your account for tuitions and fees. You are going to pay $15,000 a year at the beginning of each school year starting today. If the interest rate on your account is 7%, compounded annually, how much should you have in your account today? Round to the nearest cent. Do not include any unit (If your answer is $111.11, then type 111.11 without $ sign.)
Answer:
The student should have in his account now the sum of $ 54,365
Explanation:
In arriving at the amount above,I used the present value formula,which is:
PV=FV/(1+r)^n
FV=future value=$15000 at the beginning of each of the four years
r[=rate=7%
n=number for each payment
The table below showed the detailed calculation
Year Cash flows FV/(1+r)^n
0 15000 15000
1 15000 14,019
2 15000 13,102
3 15000 12,244
Total 54,365
Please note that the beginning of year of year 1 is the same as year 0 and so on.
Say that you have invented a new snack food product and would like to market it to college students. What are some of the advertising messages you would create to entice consumers to purchase the product? What elements of existing student culture would you show and/or promise? How might your product change college culture moving forward?
Explanation:
The ideal would be to create an advertising message that would bring value and engagement to the target audience that you want to reach, which in this case are young university students. Use more modern and informal communication, elements of youth culture, such as music, films and series, which add value to advertising to attract the desired audience.
It would also be important that advertising communication be carried out in colleges, through advertising on student radio or as a sponsor of sports games.
If the product is well aimed at meeting the needs of university students and has a positive response, in the future it can grow and be consumed by other students and thus become a product of value for young people.
Suppose that France and Germany both produce fish and olives. France's opportunity cost of producing a crate of olives is 4 pounds of fish while Germany's opportunity cost of producing a crate of olives is 10 pounds of fish. By comparing the opportunity cost of producing olives in the two countries, you can tell that __________ has a comparative advantage in the production of olives and _______ has a comparative advantage in the production of fish.
Answer:
France
Germany
Explanation:
A country has comparative advantage in production if it produces at a lower opportunity cost when compared with other countries.
France has a lower opportunity cost in the production of olives compared to Germany.
It means that Germany would have a lower opportunity cost in the production of fish when compared to France.
I hope my answer helps you
France has a comparative advantage in the production of olives because it gives up less fish to produce them than Germany does. Conversely, Germany has a comparative advantage in fish production as it sacrifices less to produce fish than olives.
Explanation:Comparative advantage is an economic concept that identifies the goods a country can produce in a cost-effective way compared to other countries. In the scenario where France's opportunity cost for producing one crate of olives is 4 pounds of fish and Germany's opportunity cost for the same crate of olives is 10 pounds of fish, we can deduce that France has a comparative advantage in olive production and Germany has a comparative advantage in fish production since it gives up less to produce the same amount of fish as opposed to olives.
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During its first year of operations, Connor Company paid $46,750 for direct materials and $19,500 in wages for production workers. Lease payments and utilities on the production facilities amounted to $8,500. General, selling, and administrative expenses were $9,500. The company produced 6,500 units and sold 5,500 units for $16.50 a unit. The average cost to produce one unit is which of the following amounts?a. $11.69
b. $10.10
c. $8.15
d. $12.56
Answer:
The average cost to produce one unit is $11.5
Explanation:
Total costs to produce 6,500 units of the company are calculated by following formula:
Total costs = Direct materials cost + Labor cost + Lease payments and utilities on the production facilities = $46,750 + $19,500 + $8,500 = $74,750
The company produced 6,500 units. The average cost to produce one unit = Total costs/6,500 = $74,750/6.500 = $11.5
Note: General, selling, and administrative expenses are not the cost to produce the product.
What evidence does Putnam provide in his discussion of the ""astonishingly strong relationship between poor health and low social capital"" (para. 7)?
Putnam argues that the decline in social capital contributes to a strong relationship between poor health and low social capital. This decline leads to a decrease in engagement in government and community organizations, which has negative effects on individuals' and communities' health.
Explanation:Putnam provides evidence for the relationship between poor health and low social capital by discussing the decline in social capital and its impact on engagement in government and community organizations. He argues that a decline in social capital, which includes networks of individuals, a sense of belonging to a larger entity, concern for the collective good, and trust in others, has led to a decrease in people's willingness and ability to be active in government and community organizations. Putnam's research suggests that this trend negatively affects the health of individuals and communities.
3.10 What will be the amount accumulated by each of these present investments? (a) $5,000 in 5 years at 7% compounded annually. (b) $7,250 in 15 years at 9% compounded annually. (c) $9,000 in 33 years at 6% compounded annually. (d) $12,000 in 8 years at 5.5% compounded annually.
Answer:
1) FV =7012.76
2) FV =26408
3) FV ==61565.31
4) FV =18416.24
Explanation:
The formula used for calculation of future value for given present investment is given as
FV = PV ( 1 + I )ⁿ
1) for PV = 5000, n = 5 year, I = 7%
FV = 5000*(1.07)^5
FV =7012.76
2) for PV = 7200, n = 15 year, I = 9%
FV= 7250*(1.09)^15
FV =26408
3) for PV = 9000, n = 33 year, I = 6%
FV= 9000*(1.06)^33
FV ==61565.31
4) for PV = 12000, n = 8 year, I = 5.5%
FV = 12000*(1.055)^8
FV =18416.24
If an economist is considering swiftly increasing technological changes in an economy, which of the following is MOST likely to contribute to the CPl problem of accurately measuring of the cost of living changes? a. new goods blas b. substtution blas c. Income blas
Answer:
The correct answer is option a. new goods bias.
Explanation:
The new goods bias arises from not taking into account new products within a price index. As these products are new, and are not used on a regular basis, they are not included in the CPI (which is the consumer price index, where the prices of products that are consumed regularly by a family are valued).
Due to technology, prices may decrease, therefore this would generate a problem when accurately measuring changes in the cost of living.
If a company’s employees are found guilty of unethical behavior, the U.S. Sentencing Commission can impose a base fine and multiply that fine by up to times, based on the organization’s
Answer:
Yes
Explanation:
The first step is to compute the base fine by determining what level of offense has occurred. After a base fine, the judge computes a culpability score, which is a way of assigning blame to the company. (This is important because the total fine is computed by multiplying the base fine by the culpability score).
The essence of the guidelines is not just to punish companies after their employees break the law, but rather to encourage companies to take proactive measures that will prevent white-collar crime before it happens.
You make sure that when you hire new people, you get input from each of the existing team members. If they are happy with new hire, they are more likely to make that person part of the team, and the team will sell more.Select the word or phrase that best complete the following sentences.Total quality management originated in ________a. Mexicob. Japanc. Russiad. United States
Answer:
The correct answer is letter "B": Japan.
Explanation:
Total quality management or TQM is an approach that aims to guide corporate success through employees' efficiency at work, based and providing on-demand products or services consumers are likely to be interested in. In the 70s and 80s, the U.S. and western European countries faced economic competition from the products offered from Japan that gave customers high-quality goods at reasonable costs.
Johansen Corporation uses a predetermined overhead rate based on direct labor-hours to apply manufacturing overhead to jobs. The Corporation has provided the following estimated costs for the next year:Direct materials...................................$6,000Direct labor.........................................$20,000Rent on factory building......................$15,000Sales salaries.....................................$25,000Depreciation on factory equipment......$8,000Indirect labor.......................................$12,000Production supervisor's salary.............$15,000Jameson estimates that 20,000 direct labor-hours will be worked during the year. The predetermined overhead rate per hour will be:A) $2.50 per direct labor-hourB) $2.79 per direct labor-hourC) $3.00 per direct labor-hourD) $4.00 per direct labor-hour
Answer:
A) $2.50 per direct labor-hour
Explanation:
The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated direct labor-hours)
where,
Estimated manufacturing overhead = Rent on factory building + Depreciation on factory equipment + Indirect labor + Production Supervisor's salary
= $15,000 + $8,000 + $12,000 + $15,000
= $50,000
And, the estimated direct labor hours is 20,000
So, the rate is
= $50,000 ÷ 20,000
= $2.5 per direct labor-hour
One method of managing stress is finding a way to reduce the hindrance stressors encountered on the job. In your group, describe the hindrance stressors that you currently are experiencing.
Explanation:
Stress in the work environment can occur due to several factors, such as excessive pressure, long working hours, conflicts with colleagues and superiors, inadequate salary, insecurity, etc.
It is a factor considered the evil of the century, due to the high competitiveness in the market and faster and faster economic changes, which ends up increasing the company's expectation regarding the employee.
It is important for organizations to adopt a posture that focuses on the needs of employees, so that they are able to measure the level of job satisfaction and implement measures that reduce stress factors in the workplace.
It is also important that the worker seeks to manage his stress through small attitudes, such as establishing a list of tasks, managing his time, seeking to have a better relationship with co-workers, avoiding procrastination, etc.
Computer maker Dell tries to have the lowest prices for its computers in order to attract a large consumer group. In Porter's four competitive strategies, this would be an example of the _____ strategy.
Answer: Cost leadership strategy
Explanation:
Cost leadership strategy is a business strategy in which a business operates at the lowest possible cost within it's industry so as to create a competitive advantage. This strategy is controlled by size, scope and cumulative experience, efficiency, etc.
Cost leadership strategy helps to :
I. Reduce the rate of competition in the market.
II. Enhance business sustainability.
III. Yield more profit for businesses.
You have $ 400 and a bank is offering 4.0 % interest on deposits. If you deposit the money in the bank, how much will you have in one year?
Answer:
I will have $416 in a year's time.
Explanation:
In calculating the amount in the deposits account in one year's time I used the Future Value formula,which is FV=PV*(1+r)^n
PV is present value=$400
r=rate=4%
n=year=1
FV=400(1+0.04)^1
FV=$416
Alternatively, one could calculate 1 year interest on the principal by multiplying it by 4% ,then add the interest of $16 to principal of $400.
What is the present worth of $1,095.50, payable in 20 years, if the discount rate (4%), compounds annually?
Answer:
$500
Explanation:
The expression that describes the present net worth of an investment (P) given its future value (FV) at an annual rate (r) for a period of n years, compounded annually is:
[tex]P=\frac{FV}{(1+r)^n}[/tex]
If the future value of an investment is $1,095.50 after 20 years at a rate of 4% per year, the present value (P) is:
[tex]P=\frac{1,095.50}{(1+0.04)^{20}}\\P= \$499.97[/tex]
The present worth of this investment is roughly $500.
A machine costs $260,000 to purchase and will provide $60,000 a year in benefits. The company plans to use the machine for 12 years and then will sell the machine for scrap, receiving $15,000. The company interest rate is 11%. What is the present value of buying the machine, receiving annual benefits, and then selling the machine
Answer:
$133,828.98
Explanation:
The computation of the net present value is shown below:
Year Cash flows Discount factor Present value
0 $260,000.00 1 $260,000.00 (A)
1 $60,000.00 0.9009009009 $54,054.05
2 $60,000.00 0.8116224332 $48,697.35
3 $60,000.00 0.7311913813 $43,871.48
4 $60,000.00 0.6587309741 $39,523.86
5 $60,000.00 0.5934513281 $35,607.08
6 $60,000.00 0.5346408361 $32,078.45
7 $60,000.00 0.4816584109 $28,899.50
8 $60,000.00 0.4339264963 $26,035.59
9 $60,000.00 0.3909247714 $23,455.49
10 $60,000.00 0.3521844788 $21,131.07
11 $60,000.00 0.3172833142 $19,037.00
12 $75,000.00 0.2858408236 $21,438.06
Total present value $393,828.98 (B)
Net present value $133,828.98 (B - A)
The discount is come from
= 1 ÷ (1 + rate) ^ years
Final answer:
Different operations and settings require specific types of buffers (inventory, time, or capacity) to manage supply and demand variations. Custom operations like cabinet making rely on inventory buffers, while emergency services and educational institutions often need capacity buffers. Logistics-intensive businesses such as Amazon benefit from capacity and time buffers to handle fluctuating order volumes.
Explanation:
The question involves identifying the types of buffers (inventory, time, or capacity) that would be expected in various operations and settings. Buffers are crucial in managing fluctuations and uncertainties in supply and demand across different industries. Here's a look at the types of buffers associated with each situation:
Custom Cabinets Maker: Inventory buffer is expected here due to the customization aspect requiring a variety of materials on hand.Automotive Spare Parts Producer: Inventory and time buffers, as demand can be unpredictable and stocking different parts is necessary.Hospital Emergency Room: Capacity buffer is key for dealing with varying numbers of patients.Wal-Mart: Inventory and time buffers, given its vast range of products and need to manage supply chain efficiently.Amazon: Capacity and time buffers, especially in its logistics and distribution network to accommodate fluctuating order volumes.Submarine Government Contractor: Capacity and time buffers, due to long production cycles and the complexity of projects.Bulk Chemical Producer: Inventory buffer, to manage production against fluctuating demand for different chemicals.Lawn Mower Maker for K-mart and Target: Inventory and time buffers, to ensure product availability and manage seasonal demand.Freeway: Capacity buffer, as road infrastructure must account for peak traffic flows.Space Shuttle: Time and capacity buffers, given the meticulous planning and backup systems required for space missions.Business School: Capacity buffer, to accommodate fluctuating student enrollments.
Jane works 8:00 a.m. - 5:00 p.m. on Monday, and 10:00 a.m. - 7:00 p.m. on Tuesday to accommodate her family situation. Jane is making use of _______. Select one: a. Flextime b. Telework c. Job sharing d. Workplace accommodation
Answer:
a. Flextime
Explanation:
Flextime, is an arrangement between company and employee in which the employees are able to choose their starting and finishing working time, given that they fulfil the required number of hours. This arrangement is beneficial because it allows employees to better accommodate their personal life and work. Therefore, Jane is making use of a. Flextime.
Final answer:
Jane is utilizing flextime to accommodate her family situation by adjusting her work hours while still being present at the workplace during required core hours.
Explanation:
Jane is making use of flextime, which usually involves a requirement of core hours spent in the workplace around which the employee may schedule their arrival and departure from work to meet family demands. Unlike telecommuting, where employees work remotely from home at different parts of the day and set their own hours, flextime involves being present at the workplace during certain core hours while having the flexibility to adjust start and end times. Employers use these workplace arrangements to help manage and reduce work-family conflict, thus improving job satisfaction for their employees.
Assume the probability of a pessimistic, most likely and optimistic state of nature is .25, .45 and .30, and the returns associated with those states of nature are 10%, 12%, and 16% for asset X. Based on the information, the expected return and standard deviation of return are: (MUST SHOW ALL WORK FOR CREDIT)
A) 12.0% and 4.0%
B) 12.7% and 2.3%
C)12.7% and 4.0%
D) 12.0% and 2.3%
E) none of the above
Answer:
E) none of the above
12.70% and 2.49% standard deviation
Explanation:
We multiply probability by the outcome to get the weighted amount, we add them and get the expected return.
probability outcome weighted
0.25 0.10 0.0250
0.45 0.12 0.0540
0.30 0.16 0.0480
expected return 0.1270
Now that we got the expected return at 12.7%
We now subtract the possible outcome with the expected return and square them:
(0.127-0.1)^2
(0.127-0.12)^2
(0.127-0.16)^2
Then we add them and divide by the sample which is 3
0.000622
²√ 0.000622 = 0.024944383
Final step, will be the square root which gives the standard deviation
of 2.49% = 0.024947
Reese, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In late December, she received a $23,000 bill from her accountant for consulting services related to her small business. Reese can pay the $23,000 bill anytime before January 30 of next year without penalty. Assume Reese's marginal tax rate is 32 percent this year and 35 percent next year, and that she can earn an after-tax rate of return of 11 percent on her investments.
a) What is the after-tax cost if Isabel pays the $34,000 bill in December?
b) What is the after-tax cost if Isabel pays the $34,000 bill in January?
Answer:
a)13,600
b) 13,391.8
Explanation:
a. 20,000 * 32% = 6400
20,000 - 6400 = 13,600
b. 20,000* 37% = 7400
Present Value of Tax = $7400 x 0.893 (Discount Factor, 1 Year, 12 percent) = $6608.2
After-tax income =income before tax - Present Value Tax
20,000 - 6608.2 = 13,391.8
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $432,000 payroll for 4,800 direct labor-hours. Listed below is cost driver information used in the product-costing system:
Overhead Cost Pool
Budgeted Overhead
Cost Driver
Estimated Cost Driver Level
Machine setups
$120,000
# of setups
120 setups
Materials handling
104,400
# of barrels
8,700 barrels
Quality control
264,000
# of inspections
1,100 inspections
Other overhead cost
144,000
# of machine hours
12,000 machine hours
Total overhead
$632,400
A current product order has the following requirements:
Machine setups
8 setups
Materials handling
606 barrels
Quality inspections
80 inspections
Machine hours
830 machine hours
Direct labor hour
336 hours
What is the total manufacturing overhead for the current product order if the firm uses a plantwide rate based on direct labor-hours?
$9,960
$44,268
$43,741
$30,240
Answer:
Allocated MOH= $44,268
Explanation:
Giving the following information:
Direct labor:
The budget for the year includes $432,000 payroll for 4,800 direct labor-hours.
Total estimated overhead= $632,400
Actual Direct labor hour (for an order)= 336 hours
First, we need to calculate the plantwide estimated manufacturing overhead rate:
Estimated manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Estimated manufacturing overhead rate= 632,400/4,800= $131.75
Now, we can allocate the overhead based in actual direct labor hours:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 131.75*336= $44,268
The total manufacturing overhead for the current product order, if the firm uses a plantwide rate based on direct labor-hours, is $44,268.
Explanation:To calculate the total manufacturing overhead for the current product order when the firm uses a plantwide rate based on direct labor-hours, we first need to determine the overhead rate per labor-hour. We achieve this by dividing the total budgeted overhead costs by the total direct labor-hours.
So, $632,400 ÷ 4,800 hours = $131.75 per labor-hour (overhead rate).
Now, to find the total manufacturing overhead for the current product order, we multiply the number of direct labor hours needed for the product by this overhead rate:
336 hours × $131.75 per hour = $44,268.
Thus, the total manufacturing overhead for the current product order, under a plantwide rate based on direct labor-hours, is $44,268.
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Due to marketing's success in business, what do management gurus think about marketing's role in a company?
Answer:
The correct answer is letter "C": that it's not just a function anymore.
Explanation:
Marketing has proved that it plays a key role in the success of a business. The way a company portraits its products to consumers impacts directly in the sales, then the better the advertisement the higher the revenue. Marketing is not perceived just as a function because of that. Technology and new means of communication have boosted this scenario since most goods and services are provided to consumers through mobile devices.
David purchases a yacht solely for the purpose of entertaining real estate clients. He wishes to position himself as a high-end real estate salesperson specializing in very expensive residences and uses the yacht only for business entertainment. During 2018, his expenses for maintaining and operating the yacht, including depreciation, were $28,000. In addition, he incurred $9,000 of catering expenses for meals he provided to business clients on the yacht. What is David's tax deduction in 2018?Explain.
Answer:
The tax deductions for the year are as follows:
Depreciation $28000
Catering expenses (50%) $4500
Total deductions $32500
Explanation:
Depreciation is deductible in full as it is an operating expense for the year 2018.
Catering expenses deduction is limited to 50% maximum ,while the remaining 50% is not an allowable deduction for tax purposes.
Analyzing and Determining Liability Amounts
For each of the following situations, indicate the liability amount, if any, that is reported on the balance sheet of Bloomington Inc. at December 31, 2016.
Next to each situation, enter the liability amount reported on Bloomington's balance sheet. If the amount is not reported as a liability, enter zero as your answer.
a. Bloomington owes $250,000 at year-end 2016 for inventory purchase. $____
b. Bloomington agreed to purchase a $31,000 drill press in January 2017. $____
c. During November and December of 2016, Bloomington sold products to a customer and warranted them against product failure for 90 days. Estimated costs of honoring this 90-day warranty during 2017 are $6,100. $____
d. Bloomington provides a profit-sharing bonus for its executive equal to 5% of reported pretax annual income. The estimated pretax income for 2016 is $950,000. Bonuses are not paid until January of the following year. $____
Answer:
a) $250,000
b) Zero
c) $6,100
d) $47,500
Explanation:
a) Bloomington owes $250,000 at year-end 2016 for inventory purchase.\
This relates to account payable and the amount to be reported as liability as at year-end 2016 is $250,000.
b)Bloomington agreed to purchase a $31,000 drill press in January 2017.
No liability will be recognized at year-end because the entity has no present obligation as there is no legal or constructive responsibility to pay $31,000. What occurred is just an agreement that can be altered.
c) During November and December of 2016, Bloomington sold products to a customer and warranted them against product failure for 90 days. Estimated costs of honoring this 90-day warranty during 2017 are $6,100.
The entity will recognized $6,100 as warranty payable as the entity has a present obligation as at year-end 2016 to compensate the customer.
d)Bloomington provides a profit-sharing bonus for its executive equal to 5% of reported pretax annual income. The estimated pretax income for 2016 is $950,000. Bonuses are not paid until January of the following year
The entity will report 5% of $950,000 ($47,500) as liability at year-end 2016 as the the entity has a present obligation to settle its executive.
Consider the following transactions. Receive cash from customers, $16,600. Pay cash for employee salaries, $10,600. Pay cash for rent, $4,600. Receive cash from sale of equipment, $9,600. Pay cash for utilities, $2,600. Receive cash from a bank loan, $5,600. Pay cash for advertising, $8,600. Purchase supplies on account, $4,600. Required: Post transactions to the Cash T-account and calculate the ending balance.
Answer:
Balance of the Cash account: 10,400
Missing information
beginning Cash balance: 5,000
Explanation:
CASH
DEBIT CREDIT
5,000
16,600
10,600
4,600
9,600
2,600
5,600
8,600
36,800 26,400
Balance 10,400
Cash is an asset account thus, increase from debit and decrease from credit.
When we receive cash is being debited
When we pay is credited.
The last trnasaction is a purchase on accont Hence, no cash involve. We don't posted in the Cash T-account
Elizabeth is marketing a new type of picture frame that she invented. She has developed a full identity for the product and wants to make sure that her design is protected before she takes it to market. She should seek a _____ for her product to grant it legal protection.
Answer:
Trademark.
Explanation:
Trademark is a type of intellectual property that involves use of a unique design to legally differentiate a product from others in the market. It shows a particular product belongs to a company.
Elizabeth should first of all get a trademark on her picture frames so that they will be legally protected from copying by others.
Butter Company purchased $300 of supplies for cash.
Illustrate how to record the transaction into T-accounts by completing the following sentence.
The Supplies account would be (debited/credited) on the (left/right) side of the T-account and the Cash account would be (debited/credited) on the (left/right) side of the T-account.
Answer:
The Supplies account would be debited on the left side of the T-account and the Cash account would be credited on the right side of the T-account.
Explanation:
Supplies
DEBIT CREDIT
(LEFT) (RIGHT)
300
We debit supplies as it represnet an asset , something the company owns. Thus it will increase from the debit
Cash
DEBIT CREDIT
(LEFT) (RIGHT)
300
We credit cash is it is assets which is being decreased. We use the cash to acquire the supplies. We no longer have those 300 dollars we use to purchase the supplies.
The Supplies account is debited on the left side of the T-account when $300 of supplies are purchased. The Cash account which shows a decrease in assets, is credited on the right side.
Explanation:When the Butter Company purchases $300 of supplies for cash, the Supplies account would be debited on the left side of the T-account, and the Cash account would be credited on the right side of the T-account. This is because in accounting, a debit to the Supplies account indicates an increase in assets, while a credit to the Cash account signifies a decrease in assets. The rule of debit and credit states that for every debit, there must be a corresponding credit.
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