Answer:
$42,300 credit balance
Explanation:
The question is incomplete:
Jensen Corporation uses the percentage-of-sales method to estimate uncollectibles. Net credit sales for the current year amount to $2,010,000 and management estimates 3% will be uncollectible. The Allowance for Doubtful Accounts prior to adjustment has a debit balance of $18,000. After all adjusting entries are made, the balance in Allowance for Uncollectible Accounts will be:
uncollectible accounts = $2,010,000 x 3% = $60,300 credit
the adjusting entry at the end of the year:
December 31, 202x, bad debt expense:
Dr Bad debt 60,300
Cr Allowance for uncollectible accounts 60,300
the ending balance of the Allowance for uncollectible accounts account = $60,300 - $18,000 (debit balance) = $42,300
In 2017, Randa Merchandising, Inc., sold its interest in a chain of wholesale outlets, taking the company completely out of the wholesaling business. The company still operates its retail outlets. A listing of the major sections of an income statement follows:
Item Debit Credit
1. Net sales $3,040,000
2. Gain on state's condemnation of company property, net of tax 269,000
3. Cost of goods sold $1,551,448
4. Income taxes expense 206,000
5. Depreciation expense 242,500
6. Gain on sale of wholesale business segment, net of tax 790,000
7. Loss from operating wholesale business segment, net of tax 470,000
8. Loss of assets from a meteor strike, net of tax 642,000
Prepare the income statement for the calendar year 2017.
Answer:
Randa Merchandising, Inc
Income Statement
For the year Ended December 31, 2017
Net sales $3,040,000
Expenses
Cost of goods sold $1,551,448
Depreciation Expenses $242,500 $1,793,948
Total Operating Expenses $1,240,052
Other Unusual / infrequent gains (Losses)
Gain on state condemnation of $269,000
company property, net of tax
Loss of assets from meteror strike, ($642,000) $373,000
net of tax
Income from continuing operations before taxes $867,052
Income Tax expenses $206,000
Income from Continuing operations $661,052
Discontinuing segment
Loss from operating wholesale $470,000
business segment (net of tax)
Gain on sales of wholesale ($790,000) $320,000
business segment (net of tax)
Net Income $981,052
The ________ is the pipeline through which products, their ownership, communication, financing and payment, and risk flow to the consumer.
Answer: Marketing channel
Explanation: The marketing channel is simply the pipeline through which products, their ownership, communication, financing and payment, and risk flow to the consumer. It is defined as a set of interdependent organizations that help ease the transfer of ownership as products move from producer to business user or consumer thereby creating a continuous and seamless supply chain. They help facilitate the physical flow of goods through the supply chain,and in the marketing mix represents "place" or "distribution".
distinguish between fixed cost and Variable Cost
Answer:
fixed means that it is standard or doesn't change (in a fixed state). remain constant
variable cost on the other hand, is when the cost varies, or changes. it can change proportionally, directly based on the changes or advancements on the service or good
Explanation:
What changes in the work situation might account for the increase in productivity and the decrease in controllable rejects? What might account for the drop in absenteeism and the increase in morale? What were the major changes in the situation? Which changes were under the control of the manager? Which were controlled by the workers? What might happen if the workers went back to the old assembly line method?
A company is considering the relacation of its manufacturing plant and administrative offices from a small city in the midwest to a similar-sized city in the south. Approximately 20% of the residents of the city are employed by the company, and many others are employed in businesses such as banks, personal service, restaurnts, shopping centers, and supermarkets that would suffer a decline in business if the company decides to relocate. Does the company have a social responsiblity to factor into its decision the impact that is move would have on the city? Why?
What are 3 examples of what would be considered un-ethical behavior involving management of quality, and state which ethical principle are violated?
Answer:
g
Explanation:
You want to invest $18,000 and are looking for safe investment options. Your bank is offering you a certificate of deposit that pays a nominal rate of 6% that is compounded semiannually. What is the effective rate of return that you will earn from this investment
Answer:
The correct solution is "6.09%".
Explanation:
Given:
Nominal rate,
= 6%
or,
= 0.06
As we know,
⇒ [tex]EAR = [(1+\frac{APR}{m} )^m]-1[/tex]
By substituting the values, we get
[tex]=[(1+\frac{0.06}{2} )^2]-1[/tex]
[tex]=[(1+0.03 )^2]-1[/tex]
[tex]=1.0609-1[/tex]
[tex]=6.09[/tex] (%)
The Janjua Company had the following account balances at 1/1/18:
Common Stock $65,000
Treasury Stock (at cost) 13,400
Paid-in-Capital in Excess of Par 82,000
Investments in AFS Debt Securities 40,000
FVA (AFS) 1,500 credit
Retained Earnings 22,000
On that date, the Accumulated OCI account was at its proper balance.
There were no sales or purchases of Common Stock or Investments during 2018. Prior to any adjusting journal entries related to the investments, 2018 Net Income was $10,300. No other transactions affecting Retained Earnings occurred. Fair Value of the Investments at 12/31/2018 was $41,500.
Required:
a. Prepare the 12/31/18 journal entry to adjust the investment to fair value.
b. Prepare the complete 12/31/18 Equity section of the balance sheet.
Answer:
a. Journal Entry:
Investments in Debt securities (Dr.) $1500
Fair Value of Debt securities(Cr.) $1500
b. Equity Section:
Common Stock $65,000
Retained Earnings $22,000
Treasury Stock $13,400
Revaluation of Debt securities $1,500
Explanation:
Investments in AFS Debt securities 40,000
Fair value of the investment on 12/31/2018 is $41,500
The difference between fair value and reported value will be adjusted through journal entry. The difference is of $1500 (41,500 - 40,000) is the revaluation amount of the securities.
TB MC Qu. 7-77 Corbel Corporation has two divisions: Division A and ... Corbel Corporation has two divisions: Division A and Division B. Last month, the company reported a contribution margin of $47,700 for Division A. Division B had a contribution margin ratio of 35% and its sales were $231,000. Net operating income for the company was $27,200 and traceable fixed expenses were $59,700. Corbel Corporation's common fixed expenses were:
Answer:
Corbel Corporation's common fixed cost is $41,650
Explanation:
Division A contribution margin $47,700
Division B contribution Margin $80,850 $128,550
($231,000 * 35%)
Less: Traceable fixed cost $59,700
Operating Income $27,200 ($86,900)
Common fixed cost $41,650
You purchased 100 shares of stock for $5 per share. After holding the stock for 8 years and not recieving any dividends, you sell the stock for $42 per share. What are the holding period and annual return on this investment?
a. 185%, 14.42%
b. 920%, 41.63%
c. 740%, 30.48%
d. 625%, 27.66%
Answer:
The answer is C.
Explanation:
The formula for holding period is:
(Future value/present value) - 1
Future value = $42 per share
Present Value = $5 per share
(42/5) - 1
=8.4 - 1
7.4
Expressed as a percentage:
740%
B. Annual return on investment
(1+AHP)^(1/n) - 1
Where AHP is the annual holding period
n is the number of years
[(1+7.4)^(1/8)] - 1
[8.4^ 0.125] - 1
1.3048 - 1
0.3048
Expressed as a percentage
30.48%
Childress Company produces three products, K1, S5, and G9. Each product uses the same type of direct material. K1 uses 4 pounds of the material, S5 uses 2.2 pounds of the material, and G9 uses 6.5 pounds of the material. Demand for all products is strong, but only 55,400 pounds of material are available. Information about the selling price per unit and variable cost per unit of each product follows. K1 S5 G9 Selling price $155.8 $108.92 $205.55 Variable costs 91.00 90.00 136.00
Required:
Calculate the contribution margin per pound for each of the three products.
Answer:
The contribution margin per pound for each of the three products is :
K1 = $16.20
S5 = $8.60
G9 = $10.70
Explanation:
First Calculate the Contribution per margin for for the 3 products.
K1 S5 G9
Selling Price $155.80 $108.92 $205.55
Less Variable Costs ($91.00) ($90.00) ($136.00)
Contribution $64.80 $18.92 $69.55
Then determine the contribution per pound as follows :
K1 S5 G9
Contribution $64.80 $18.92 $69.55
Material Usage per unit 4 pounds 2.2 pounds 6.5 pounds
Contribution per pound $16.20 $8.60 $10.70
Sheridan Company issues 3600 shares of its $10 par value common stock having a fair value of $20 per share and 5600 shares of its $10 par value preferred stock having a fair value of $20 per share for a lump sum of $205400. What amount of the proceeds should be allocated to the preferred stock
Answer:
$125,026
Explanation:
Common Shares 3,600
Fair value $20
Total market value of common stock $72,000
Preferred shares 5,600
Fair value $20
Total market value of preferred stock $112,000
Lump Sum amount $205,400
Amount of proceeds should be allocated to the preferred stock = 205,400 * (112,000 / (72,000 + 112,000) ) = $125,026
On January 1, a company issues bonds dated January 1 with a par value of $390,000. The bonds mature in 5 years. The contract rate is 9%, and interest is paid semiannually on June 30 and December 31. The market rate is 8% and the bonds are sold for $405,830. The journal entry to record the issuance of the bond is: Multiple Choice Debit Bonds Payable $390,000; debit Bond Interest Expense $15,830; credit Cash $405,830. Debit Cash $405,830; credit Bonds Payable $405,830. Debit Cash $405,830; credit Premium on Bonds Payable $15,830; credit Bonds Payable $390,000. Debit Cash $405,830; credit Discount on Bonds Payable $15,830; credit Bonds Payable $390,000. Debit Cash $390,000; debit Premium on Bonds Payable $15,830; credit Bonds Payable $405,830.
Answer:
The journal entry to record issuance is:
January 1, 202x, bonds are issued at a premium
Dr Cash 405,830
Cr Bonds payable 390,000
Cr Premium on bonds payable 15,830
Explanation:
When a bond's coupon rate is higher than the market rate, the bonds will sell at a premium or a value higher than the bond's face value. On the other hand, if the bond's coupon rate is lower than the market rate, the bonds will sell at a discount or a value lower than the bond's face value.
air pollution causes capital to wear out more rapidly, doubling the rate of depreciation. How would this affect economic growth?
Answer:
The economic growth will be lower.
Explanation:
The rise in pollution and the doubling of the rate of depreciation will affect economic growth adversely. However, rapid wear and tear of capital will cost the person and it will reduce the purchasing power. Thus, lower purchasing power will result in lower economic growth. Moreover, pollution creates three main problems that are reduced labor productivity, rise in health problems, and loss of crop yield. So the reduction in all these factors will also slow down economic growth.
Wingate Company, a wholesale distributor of electronic equipment, has been experiencing losses for some time, as shown by its most recent monthly contribution format income statement:
Sales $ 1,546,000
Variable expenses 573,480
Contribution margin 972,520
Fixed expenses 1,070,000
Net operating income (loss) $ (97,480)
In an effort to resolve the problem, the company would like to prepare an income statement segmented by division. Accordingly, the Accounting Department has developed the following information:
Division
East Central West
Sales $ 416,000 $ 630,000 $ 500,000
Variable expenses as a percentage of sales 48 % 26 % 42 %
Traceable fixed expenses $ 282,000 $ 324,000 $ 206,000
Required:
1. Prepare a contribution format income statement segmented by divisions.
2-a. The Marketing Department has proposed increasing the West Division's monthly advertising by $28,000 based on the belief that it would increase that division's sales by 13%. Assuming these estimates are accurate, how much would the company's net operating income increase (decrease) if the proposal is implemented?
2-b. Would you recommend the increased advertising?
Valley Company’s adjusted trial balance on August 31, its fiscal year-end, follows. It categorizes the following accounts as selling expenses: sales salaries expense, rent expense—selling space, store supplies expense, and advertising expense. It categorizes the remaining expenses as general and administrative.
Debit Credit
Merchandise inventory (ending) $43,500
Other (noninventory) assets 174,000
Total liabilities $50,243
Common stock 58,556
Retained earnings 83,482
Dividends 8,000
Sales 297,540
Sales discounts 4,552
Sales returns and allowances 19,638
Cost of goods sold 114,570
Sales salaries expense 40,763
Rent expense—Selling space 13,984
Store supplies expense 3,570
Advertising expense 25,291
Office salaries expense 37,193
Rent expense—Office space 3,570
Office supplies expense 1,190
Totals $ 489,821 $489,821
Beginning merchandise inventory was $35,105. Supplementary records of merchandising activities for the year ended August 31 reveal the following itemized costs.
Invoice cost of merchandise purchases $127,890
Purchases discounts received 2,686
Purchases returns and allowances 6,139
Costs of transportation-in 3,900
Required:
1. Compute the company’s net sales for the year.
2. Compute the company’s total cost of merchandise purchased for the year.
3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
Answer:
1. Net sales = $273,350
2. Total cost of merchandise purchased = $122,965
3. Gross profit = $158,780; and Net Income = $33,219
4. Net Income = $33,219
Explanation:
Note: The data in the question are merged. They are therefore sorted before answering the question. See the attached pdf file for the sorted question.
The explantion to the answers are now provided as follows:
1. Compute the company’s net sales for the year.
Note: See the attached excel file for the net sales computation.
2. Compute the company’s total cost of merchandise purchased for the year.
Note: See the attached excel file for total cost of merchandise purchased computation.
3. Prepare a multiple-step income statement that includes separate categories for net sales, cost of goods sold, selling expenses, and general and administrative expenses.
Note: See the attached excel file the multiple-step income statement.
A multi-step income statement is a detailed income statement that presents net sales, cost of goods sold, gross profit, expenses and overall net profit or loss of a company for a particular accounting period.
4. Prepare a single-step income statement that includes these expense categories: cost of goods sold, selling expenses, and general and administrative expenses.
Note: See the attached excel file the single-step income statement.
A single step income statement is a less detailed income statement that only present all expenses including cost of goods sold in one column without breaking down expenses into categories of net sales, cost of goods sold, gross profit, expenses and overall net profit or loss of a company for a particular accounting period.
(A) What price should the company charge for the phones, and how many phones should be produced to maximize the weekly revenue? What is the maximum weekly revenue?
Answer:
2500 phones produced at $250 per phone
Max weekly revenue would be $625,000.
Explanation:
p = 500 - 0.1x
p is the price per unit
revenue = quantity * price/unit
R(x) = revenue = p(x)*x = 500x - 0.1x²
p(x) maximum when first derivative is set to 0
500 - 0.2x = 0 ==> x = 500/0.2 = 2500 quantities
price/unit : p = 500 - 0.1*2500 = 500 - 250 = 250
revenue :
r(2500) = 500*2500 - 0.1*2500²
r(2500) = 2500(500 - 250) = 625000
The company should produce 2500 phones each week at a price of $250
The maximum weekly revenue is $625000
On January 2, 2021, L Co. issued at face value $22,000 of 3% bonds convertible in total into 1,400 shares of L's common stock. No bonds were converted during 2021. Throughout 2021, L had 1,400 shares of common stock outstanding. L's 2021 net income was $4,000. L's income tax rate is 30%. No potential common shares other than the convertible bonds were outstanding during 2021. L's diluted earnings per share for 2021 would be:
Prepare journal entries to record each of the following four separate issuances of stock. A corporation issued 10,000 shares of $20 par value common stock for $240,000 cash. A corporation issued 5,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $45,500. The stock has a $1 per share stated value. A corporation issued 5,000 shares of no-par common stock to its promoters in exchange for their efforts, estimated to be worth $45,500. The stock has no stated value. A corporation issued 2,500 shares of $50 par value preferred stock for $170,500 cash.
Answer:
1.
DR Cash.................................................$240,000
CR Common Stock................................................... $200,000
Paid in Excess of Par- Common Stock.....................$40,000
Working
Common Stock = $20 * 10,000 = $200,000
Paid in Excess of Par- Common Stock = 240,000 - 200,000 = $40,000
2.
DR Promotion Expenses................................$45,500
CR Common Stock.........................................................$5,000
Paid in Excess of Par- Common Stock ........................$40,500
Working
Common stock = 5,000 * 1 = $5,000
Paid in Excess of Par- Common Stock = 45,500 - 5,000 = $40,500
3
DR Promotion Expenses..........................$45,500
CR Common Stock....................................................$45,500
4
DR Cash ...................................................$170,500
CR Preferred Stock .....................................................$125,000
CR Paid in Excess of Par - Preferred Stock ..............$45,500
Working
Preferred Stock = 50 * 2,500 = $125,000
Paid in Excess of Par - Preferred Stock = 170,500 - 125,000 = $45,500
The manager of Synergy Company's Stock Division projects the following for next year: Sales $195,000 Operating income 70,000 Operating assets 385,000 The manager can invest in an additional project that would require $50,000 investment in additional assets and would generate $9,000 of additional income. The company's minimum rate of return is 15%. What is the residual income for the Stock Division with the additional project
Answer:
13,750
Explanation:
Residual income can be calculated by deducting required return from the Net Operating income
DATA
Operating income = 70,000
Operating assets = 385000
Additional income = 9000
Additional investment = 50,000
Residual income =?
Solution
Residual income = Net Operating income - Required return
Residual income = (70,000+9,000) - ((385,000+50,000)x15%)
Residual income = 79,000 - 65250
Residual income = 13,750
The Sapote Corporation is a manufacturing corporation. The corporation has accumulated earnings of $450,000 and the corporation cannot establish a reasonable business need for any of that amount. What is the amount of the accumulated earnings tax (if any) that will be imposed on the corporation?
Answer: $40,000
Explanation:
As this is a manufacturing company, they are exempt of Accumulated earnings tax of the amount of $250,000. Anything above that will be subject to an Accumulated Earnings tax rate of 20%.
Accumulated Earnings tax = 20% * (450,000 - 250,000)
Accumulated Earnings tax = 20% * 200,000
Accumulated Earnings tax = $40,000
A company can shorten its cash cycle by: __________
a. Reducing inventory turnover
b. Reducing account payables
c. Reducing days receivable
d. None of the above
Answer:
None of the above
Explanation:
Companies can shorten their cash cycles by turning over their inventory faster. The quicker a company sells its goods, the sooner it takes in cash from cash and credit card sales and begins its accounts receivable aging. Inventory turnover has no impact on the cash cycles of service companies with no inventory.
Answer:
C is the answer (I think)
A loan is being repaid by 15 annual installments of 1,000 each. Interest is at an effective annual rate of 5%. Immediately after the fifth installment is paid, the loan is renegotiated. The revised amortization schedule calls for a sixth installment of 800, a seventh installment of (800 + K), with each subsequent installment increasing by K over the previous payment. The period of the loan is not changed. Determine the revised amount of the last installment.
Answer:
the last installment = $1,239.42
Explanation:
renegotiated agreement:
year payment
1 $1,000
2 $1,000
3 $1,000
4 $1,000
5 $1,000
6 $800
7 $800 + K
8 $800 + 2K
9 $800 + 3K
10 $800 + 4K
11 $800 + 5K
12 $800 + 6K
13 $800 + 7K
14 $800 + 8K
15 $800 + 9K
we must first determine the original loan and to do that we need the PV of the original payment schedule:
PV = $1,000 x 10.380 (PV annuity factor, 5%, 15 periods) = $10,380
now we find the present value of the first 5 installments:
PV = $1,000 x 4.3295 (PV annuity factor, 5%, 5 periods) = $4,329.50
$10,380 - $4,329.50 = $6,050.50
now to find K:
$6,050.50 = $800/1.05⁶ + ($800 + K)/1.05⁷ + ($800 + 2K)/1.05⁸ + ($800 + 3K)/1.05⁹ + ($800 + 4K)/1.05¹⁰ + ($800 + 5K)/1.05¹¹ + ($800 + 6K)/1.05¹² + ($800 + 7K)/1.05¹³ + ($800 + 8K)/1.05¹⁴ + ($800 + 9K)/1.05¹⁵ = 596.97 + 568.55 + 0.71K + 541.47 + 1.35K + 515.69 + 1.93K + 491.13 + 2.46K + 467.74 + 2.92K + 445.47 + 3.34K + 424.26 + 3.71K + 404.05 + 4.04K + 384.81 + 4.33K = $4,840.14 + 24.79K
$6,050.50 = $4,840.14 + 24.79K
$6,050.50 - $4,840.14 = 24.79K
$1,210.36 = 24.79K
K = $48.82
the last installment = $800 + 9K = $800 + (9 x $48.82) = $1,239.42
Duerr company makes a $73,000, 90-day, 10% cash loan to Ryan Co. The maturity value of the loan is: (Use 360 days a year.)
Answer: $74,825
Explanation:
Maturity value is the amount that a borrower will pay to the lender when the loan matures.
Based on the above analysis, the interest will be:
= $73,000 × 10% × 90/360
= $73,000 × 0.1 × 0.25
= $1825
Maturity value will now be the addition of the principal and the interest. This will be:
= $73,000 + $1825
= $74,825
examine the difference leadership and management
Answer: LEADERSHIP is about getting to comprehend and believe in the vision you on achieving your goals, while MANAGEMENT is more about administering and making sure the day to day activpities are happening as they should.
Hope it helps you
Explanation:
Suppose you work for a company that makes a product line for a large hardware chain. The chain asks you for a price quote for 30,000 units that will require a $1,500,000 investment with marginal costs of $15 per unit. What is the lowest price you are willing to quote
Answer:
$1,950,000
Explanation:
Note the company has a margin per unit cost and investment cost, where
investment cost = $1,500,000
+
margin per unit cost = $450,000 (30,000 x $15)
Thus, total cost = $1,950,000. Since companies do not want to make loses, but may allow for break-even, the lowest price to quote should not be lesser than the total cost of $1,950,000.
a process with a one-sided specification has a Cpk of 0.22. What is the percentage of the production falls beyond the specification limit
Answer:
≈ 25%
Explanation:
Given data:
Cpk = 0.22
Determine The percentage of production that falls beyond the specification limit ( assuming normal distribution )
first calculate the value of Z ;
Cpk = Z /3
hence Z = Cpk * 3 = 0.22 * 3 = 0.66
The percentage of the production can be determined by
( 1 - value obtained from the standard normal table for the value of Z =0.66 )
1 - 0.7454 = 0.2546 ≈ 25%
A bond issue with a face amount of $1,200,000 bears interest at the rate of 9%. The current market rate of interest is 10%. These bonds will sell at a price that is:
Answer: The selling price of the bond will be less than $1,200,000
Explanation:
From the question, we are informed that a bond issue with a face amount of $1,200,000 bears interest at the rate of 9% and that the current market rate of interest is 10%.
Since the market rate is 10% which is higher than coupon rate of 9%, this means that the market price for the bond will be smaller than the bond's face value.
Therefore, the selling price of the bond will be less than $1,200,000.
Which of the following policies often contains clauses that permit a social networking operator to collect and store data on users or even share it with third parties?
1) Terms of Trade policy
2) Terms of Use policy
3) Terms of Endearment policy
4) Terms of Retention policy
Answer: 2) Terms of Use policy
Explanation:
Terms of service are a contract or agreement between the user of a website or in this case a social networking operator and the social networking operator itself. This agreement is meant to govern the terms of the relationship between the 2 parties in terms of what will be expected of both, i.e, their rights and responsibilities.
On the side of the social networking operator, one of the rights usually listed is one stating that the operator can collect and store data on users or even share it with third parties and so it is important to read the terms of use policy as best you can when you can.
Conversion costs are:_______.
A. The direct labor costs associated with processing a product.
B. The combined costs of converting raw materials to finished goods.
C. The overhead costs associated with processing a product.
D. All the costs that go into the manufacturing of a product (DM, DL and OH).
Answer:
B. The combined costs of converting raw materials to finished goods.
Explanation:
Conversion Costs are the combined costs of converting raw materials to finished goods.
These include the costs of direct labor and manufacturing overheads such as water and electricity.
To be registered as a broker-dealer, the Administrator typically requires the posting of a surety bond in the amount of:
Answer:
$10,000
Explanation:
Most of the time the Administrator requires a posting of a $10,000 surety bond to be registered as a broker-dealer, due to the Uniform Securities act but each separate state administrator can change this amount to what they seem fit. A surety bond makes sure that the individual assumes responsibility for that amount of debt obligation if the borrower defaults on the payment.
If the range of feasibility indicates that the original amount of a resource, which was 20, can increase by 5, then the amount of the resource can increase to 25.
a. True
b. False
Answer: True
Explanation:
The range of feasibility is used to measure values that are on the right-hand-side(objective function) that won't alter dual prices.
When the range of feasibility indicates that the original amount of a resource, which was 20, can increase by 5, then the amount of the resource can increase to (20 + 5) = 25
Therefore, the option is true