Answer:
Jan. 1 Inventory 4,000 units at $40
Apr. 19 Sale 2,500 units
June 30 Purchase 4,500 units at $44
Sept. 2 Sale 5,000 units Nov. 15
Purchase 2,000 units at $46
Cost of goods sold under LIFO (last in, first out):
April 19 sale = 2,500 units x $40 = $100,000
Inventory on hand after April 19 sale:
Jan. 1 Inventory 1,500 units at $40September 2 sale = (4,500 units x $44) + (500 units x $40) = $218,000
Inventory on hand after September 2 sale:
Jan. 1 Inventory 1,000 units at $40 = $4,000Total COGS = $318,000
Ending inventory = (1,000 x $40) + (2,000 x $46) = $132,000
Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300. The actual factory overhead for the year was $1,375,000. Determine the over- or underapplied amount for the year.
a. $118,250 overapplied
b. $17,500 underapplied
c. $118,250 underapplied
d. $17,500 overapplied
Answer:
b. $17,500 underapplied
Explanation:
Calculation to Determine the over- or underapplied amount for the year
First step is to find the Pre determined overhead rate using this formula
Pre determined overhead rate = Estimated factory overheads / Estimated machine hours
Pre determined overhead rate = $1,250,000 / 50000
Pre determined overhead rate = $25 per machine hour.
Second step is to find the Factory overhead amount applied using this formula
Factory overhead amount applied = Pre determined overhead rate * Actual machine hours
Factory overhead amount applied = $25 * 54,300
Factory overhead amount applied = $1,357,500
The last step is to calculate for the over- or underapplied amount for the year
Using this formula
Under applied overhead = Applied overhead - Actual overhead
Let plug in the formula
Under applied overhead = $1,357,500 - $1,375,000
Under applied overhead= $17,500
Therefore the underapplied amount for the year is $17,500
A local radio station gives away concert tickets at random times everyday to reward listeners. What schedule of reinforcement are they using?
a. fixed interval
b. variable interval
c. fixed ratio
d. variable ration
Answer:
b. variable interval
Explanation:
Schedules of reinforcement based on lapsed time are known as interval schedules. They are either fixed-interval or variable-interval schedules.
Variable-interval schedules provide reinforcement/reward after random time-interval. The interval of time is irregular but revolves around some average length of time. Reinforcement is therefore dispensed unevenly within a stated period.
Mrs. Nunn, who has a 24 percent marginal tax rate on ordinary income, earned $2,690 interest on a debt instrument this year. Required: Compute her federal income tax on this interest assuming that the debt instrument was: (Round your final answers to the nearest whole dollar amount.) An unsecured note from her son, who borrowed money from his mother to finance the construction of his home. A certificate of deposit from a federal bank. A 30-year General Electric corporate bond. A U.S. Treasury note. A City of Memphis municipal bond.
Answer:
An unsecured note from her son, who borrowed money from his mother to finance the construction of his home.
Not tax exempt so tax is;
= 2,690 * 24%
= $645.60
= $646
A certificate of deposit from a federal bank.
Also not tax exempt so tax is;
= 2,690 * 24%
= $646
A 30-year General Electric corporate bond.
Also not tax exempt so tax is;
= 2,690 * 24%
= $646
A U.S. Treasury note.
Also not tax exempt so tax is;
= 2,690 * 24%
= $646
A City of Memphis municipal bond.
Municipal bond returns are tax exempt so tax payment is $0.
_______ policy involves government changes to spending or taxation to affect the economy.
Budgetary
Fiscal
Inflation
Monetary
Answer:
The answer is B: Fiscal
Explanation:
Fiscal policy involves changes in the overall government spending and/or the overall level of taxation and the budgetary position.
Edge2020
Good luck, Stay safe!
Fiscal policy involves government changes to spending or taxation to affect the economy.
What is Fiscal policy?Fiscal policy occurs when government make use o policies like tax to increase or improve the nations economy.
The spendings of the government can also be used as a policy to improve the economy.
Therefore, Fiscal policy involves government changes to spending or taxation to affect the economy.
Learn more on fiscal policy here,
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In its initial S-1 filing, Groupon presented a non-GAAP performance metric called ACSOI. It was subsequently removed after the SEC objected. a. Why did the SEC question the inclusion of ACSOI in Groupon’s financial statements? Explain whether you think the use of ACSOI was appropriate or not. b. Non-GAAP metrics are common in some industries. For example, same-store-sales in retail, revenue-passenger-miles for airlines, etc. Are non-GAAP measures, such as these, ever of value for financial statement users?
Answer:
a. Groupon presented the Adjusted Consolidated Segment Operating Income (ACSOI) because it shows a higher amount than EBITDA. The reason is simple, Groupon wanted to show higher revenues and earnings, and the way they thought that they could do it was to use what I call "creative accounting". If the numbers do not match your expectations, play with them and change them until they do. That is exactly what Groupon did.
ACSOI increases EBITDA (which is a non-GAAP metric but it is accepted as valid by all companies) because it excludes certain expenses, e.g. marketing expenses, stock compensations, etc. It is irrational to believe that marketing expenses in a company like Groupon were irrelevant. Just a few years ago Groupon was the fastest-growing internet services company, and online marketing was essential for that type of growth rate.
b. We can just compare EBITDA and ACSOI, both are non-GAAP metrics, but one is properly designed, useful and actually shows how a company's cost structure works. But ACSOI is deliberately used to fool investors.
Some non-GAAP metrics are very useful, such as managerial accounting. Financial reports are tools and how helpful or useful they are depends on people. If you try to fool investors and trick them, eventually they will realize it.
Privott, Inc., manufactures and sells two products: Product Z9 and Product N0. The company is considering adopting an activity-based costing system with the following activity cost pools, activity measures, and expected activity: Estimated Expected Activity Activity Cost Pools Activity Measures Overhead Cost Product Z9 Product N0 Total Labor-related DLHs $ 326,018 6,600 3,200 9,800 Product testing tests 46,747 500 600 1,100 Order size MHs 472,108 4,200 4,500 8,700 $ 844,873 The activity rate for the Labor-Related activity cost pool under activity-based costing is closest to:
Answer:
$33.27 per DLH
Explanation:
Calculation for the activity rate for the Labor-Related activity cost pool under activity-based costing
Using this formula
Activity rate = Estimated overhead cost ÷ Total expected activity
Let plug in the formula
Activity rate =$ 326,018 ÷ 9,800 DLHs
Activity rate = $33.27 per DLH
Therefore the activity rate for the Labor-Related activity cost pool under activity-based costing is closest to $33.27 per DLH
You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into its systems and is offering to pay you $461,000 today, plus $461,000 at the end of each of the following six years, for permission to do this. If the appropriate interest rate is 8 percent, what is the present value of the cash flow stream that the company is offering you? (Round factor values to 4 decimal places, e.g. 1.5215 and final answer to 2 decimal places, e.g. 15.25.)
Answer: $2,592,156.90
Explanation:
The payments of $461,000 are constant so this will be an annuity.
The present value of the cashflow being offered will therefore be the $461,000 being paid today plus the present value of the annuity.
Present value of Annuity = Annuity * Present value interest factor for 8%, 6 years.
= 461,000 * 4.6229
= $2,131,156.90
Present Value of cashflow;
= 461,000 + 2,131,156.9
= $2,592,156.90
Mrs. Cox, a head of household, earned a $313,000 salary and recognized a $29,300 net long-term capital gain this year. Use Individual tax rate schedules and Tax rates for capital gains and qualified dividends. Required: Compute the income tax on the gain if: (Do not round intermediate calculations. Round your final answers to nearest whole dollar amount.) None of the gain is collectibles gain or unrecaptured Section 1250 gain. $10,000 is collectibles gain. $15,500 is unrecaptured Section 1250 gain. $1,700 is collectibles gain and $22,000 is unrecaptured Section 1250 gain.
Explanation:
. $4,395 ($29,300 long-term capital gain × 15%)
Biblio Files Company is making plans for its next fiscal year, and decides to sell two new types of bookshelves, Basic and Deluxe. The company has compiled the following estimates for the new product offerings. Type of Bookshelf Sales Price per Unit Variable Cost per Unit Basic $5.00 $1.75 Deluxe 9.00 8.10 The company is interested in determining how many of each type of bookshelf would have to be sold in order to break even. If we think of the Basic and Deluxe products as components of one overall enterprise product called "Combined," the unit contribution margin for the Combined product would be $2.31. Fixed costs for the upcoming year are estimated at $334,950. Recall that the totals of all the sales mix percents must be 100%. Determine the amounts to complete the following
Answer:
The requirements are missing, so I looked for similar questions:
Percent of Sales Mix = Break-Even Sales in Units = Break-Even Sales in Dollars =Type of Bookshelf Sales Price Variable Cost Contribution M.
Basic $5.00 $1.75 $3.25
Deluxe $9.00 $8.10 $0.90
combined contribution margin = $2.31
total fixed costs $334,950
break even point in units = $334,950 / $2.31 = 149,329 units
3.25b + 0.9d = 2.31
I will first try a 50/50 sales mix
(3.25 x 0.5) + (0.9 x 0.5) = 2.075 ⇒ b must be higher
(3.25 x 0.6) + (0.9 x 0.4) = 2.31 ✓
sales mix:
basic = 60% of sales
deluxe = 40% of sales
total = 100%
break-even sales in units =
basic (60% of sales) = 89,598 units
deluxe (40% of sales) = 59,731 units
total = 149,329 units
break-even sales in dollars =
basic 89,598 units x $5 = $447,990
deluxe 59,731 units x $9 = $537,579
total = $985,569
Exercise 6-8 Petty cash fund with a shortage LO P2 Waupaca Company establishes a $350 petty cash fund on September 9. On September 30, the fund shows $104 in cash along with receipts for the following expenditures: transportation-in, $40; postage expenses, $123; and miscellaneous expenses, $80. The petty cashier could not account for a $3 shortage in the fund. The company uses the perpetual system in accounting for merchandise inventory. Prepare (1) the September 9 entry to establish the fund, (2) the September 30 entry to reimburse the fund, and (3) an October 1 entry to increase the fund to $400.
Answer:
1.September 09
Dr Petty cash 350
Cr Cash 350
2. September 30
Dr Merchandise inventory 40
Dr Postage expense 123
Dr Miscellaneous expenses 80
Dr Cash short and over 3
Cr Cash 246
3. Dr Petty cash 50
Cr Cash 50
Explanation:
Preparation of Journal entries
1. Preparation of September 9 Journal entry to establish the fund
September 09
Dr Petty cash 350
Cr Cash 350
2. Preparation of September 30 Journal entry to reimburse the fund
September 30
Dr Merchandise inventory 40
Dr Postage expense 123
Dr Miscellaneous expenses 80
Dr Cash short and over 3
Cr Cash 246
(40+123+80+3)
3. Preparation of October 1 Journal entry to increase the fund to $400.
October 01
Dr Petty cash 50
Cr Cash 50
($400-$350)
Madtack Company’s beginning and ending inventories for the month of July are
July 1 July 30
Direct materials $ 67,000 $ 62,000
Work-in-process 145,000 171,000
Production data for the month of July follows:
Direct labor $200,000
Direct materials purchased 163,000
Madtack has one overhead cost account and assigns overhead to production based on direct labor cost. The predetermined allocation rate is 0.7. The company formally reconciles over- or underapplied overhead at year end.
What are the costs of good manufactured for July?
When you go to stores or restaurants such as Burger King, Starbucks, or McDonald’s, are you paying for the food, the experience, or both? Explain.
Answer:
Both
Explanation:
I pay for both because I like having a nice environment to enjoy my meal or drinks in. I like starbucks the most becasuse I can sit there with a coffee and a snack and enjoy the space around me. They are always pleasant there.
Benny is the manager of an office-support business that supplies copying, binding, and other services for local companies. He must replace a worn-out copy machine that is used for black-and-white copying. He is considering two machines, and each of these has a monthly lease cost plus a cost for each page that is copied. Machine 1 has a monthly lease cost of $619, and there is a cost of $0.040 per page copied. Machine 2 has a monthly lease cost of $685, and there is a cost of $0.025 per page copied. Customers are charged $.12 per page copied. If Benny expects to make 75,000 copies per month, what would be the monthly cost for each machine
Answer:
Results are below.
Explanation:
Giving the following information:
Machine 1:
Monthly lease cost of $619
Cost per page= $0.040
Machine 2:
Monthly lease cost of $685
Csot per page= $0.025
First, we need to structure the total cost formula for each machine:
Machine 1:
Total cost= 619 + 0.04x
Machine 2:
Total cost= 685 + 0.025x
Now, the cost of 75,000 pages:
Machine 1:
Total cost= 619 + 0.04*75,000= $3,619
Machine 2:
Total cost= 685 + 0.025*75,000= $2,560
Western Athletic Club International (WACI) owns and operates a chain of fitness clubs and is interested in estimating the CLV for new memberships. Practically all of WACI's costs are fixed costs. Meaning that, when a member pays his or her monthly dues, there are no variable costs associated with that payment and all the revenues go toward covering the fixed costs of the business (facilities, salaries, equipment, etc.) WACI's monthly membership dues are $78 per person. The average member keeps his or her membership active for 26 months. In addition to membership, WACI also offers personal training services through a staff of independent athletic trainers. WACI and the trainer split the fees associated with personal training 50/50. Historically, 15% of members choose to use a personal trainer for, on average, 30 training sessions. Sessions with a personal trainer are priced at $40 each.
Required:
a. What is the monthly margin generated by a new membership (don’t include training)?
b. What is the CLV to WACI on the membership component?
c. What is the CLV of the personal training component for a member who chooses to hire a trainer?
d. What is the total CLV for a new member?
e. What would be the net value of implementing a program that doubled the likelihood that a person would hire a personal trainer?
Answer:
a. What is the monthly margin generated by a new membership (don’t include training)?
$78, since there are no variable costs
d. What is the total CLV for a new member?
the average purchase value = $78 + (15% of customers x 30/26 sessions per month x 50% earnings x $40 per session) = $78 + $3.46 = $81.46
the average purchase frequency = 1 per month
average customer value = $81.46 / 1 = $81.46
average customer lifespan = 26 months
customer lifetime value = average customer value x average customer lifespan = $81.46 x 26 = $2,118
b. What is the CLV to WACI on the membership component?
$78 x 26 = $2,028
c. What is the CLV of the personal training component for a member who chooses to hire a trainer?
$3.46 x 26 = $89.96
e. What would be the net value of implementing a program that doubled the likelihood that a person would hire a personal trainer?
$3.46 per customer, same as the CLV of the personal training component
a.
The monthly margin generated by a new membership is $78 because there are no variable costs
b.
The CLV to WACI on the membership component is
= $78 × 26
= $2,028
c.
the CLV of the personal training component for a member is
= $3.46 × 26
= $89.96
d. The CLV for a new member is
The average purchase value = $78 + (15% of customers × 30/26 sessions per month × 50% earnings × $40 per session)
= $78 + $3.46
= $81.46
the average purchase frequency = 1 per month
average customer value = $81.46 / 1 = $81.46
average customer lifespan = 26 months
So,
customer lifetime value
= average customer value x average customer lifespan
= $81.46 × 26
= $2,118
e. The net value should be
$3.46 per customer, similar to the CLV of the personal training component
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2. The buyer's prepaid expense is the seller's
Which revenue?
Answer:
Unearned revenue
Explanation:
Unearned revenue is money that a business has received for goods and services that it will deliver later. It is not yet revenue in a business sense because the activity that makes revenue be recognized has not yet happened. Unearned revenue is also known as deferred revenue. It is recorded as a liability by the supplier.
Unearned revenue may arise due to prepayment for goods and services, initial deposits when purchasing property, and subscription fees for magazines, TV, and clubs.
What is the purpose of Geert Hofstede’s Cultural Dimensions Theory? Review Later To explain why some cultures are not worth time investing into. To assess the net capital expenditure on a particular foreign market and its viability as a long-term market. A model to understand key cultural considerations between different counties, so as to inform global business managers of cultural deviations. A model for predicting financial gain across a globalized market. Two of the answers in this answer set are correct.
Answer:
c. A model to understand key cultural considerations between different countries, so as to inform global business managers of cultural deviations.
d. A model for predicting financial gain across a globalized market.
Explanation:
Culture plays a key role in the advancement of businesses because the local employees have a way of doing things and a system of beliefs that would affect the business in the long-run. So, if businesses want to be successful, managers would have to understand the culture of the people they work with. This prompted the work of Dutch Philosopher Geert Hofstede who classified the cultural orientation of people across six dimensions which include;
Power Distance
Individualism/Collectivism
Masculinity/Femininity
Uncertainty Avoidance
Long-term/Short-term Orientation and
Restraint/Indulgence
The major aim of his work is to provide an understanding of the key cultural considerations between different countries, so as to inform global business managers of cultural deviations. This model would also help managers to predict how successful their business can be given the culture of the area concerned.
Jim recently joined the Austin Barter Club, an organization that facilitates the exchange of services between its members. This year Jim provided lawn-mowing services to other club members. Jim received the following from the barter club. Determine the amount, if any, Jim should include in his gross income in each of the following situations:
A. Jim received $275 of car repair services from another member of the club.
B. Jim received a $150 credit that gave him the option of receiving a season pass at a local ski resort from another member of the club. However, he forgot to request the pass by the end of the ski session and his credit expired.
Answer:
Jim's Gross Income:
A. Car Repair $275
B. Option $0
Explanation:
Jim actually received the $275 car repair services from a club member and should include this sum in his gross income. However, since he did not actually receive the credit option of $150 for the local ski resort, because it expired, he should not include it in his gross income. The exchange was not complete since he did not benefit from the Ski Resort's free services.
The following transactions occurred at the Daisy King Ice Cream Company.
1. Started business by issuing 10,000 shares of common stock for $26,000.
2. Leased a building for three years at $560 per month and paid six months' rent in advance.
3. Purchased equipment for $6,000, signing a two-year, 12% note.
4. Purchased $2,400 of supplies on account.
5. Recorded cash sales of $1,400 for the first week.
6. Paid weekly salaries, $620.
7. Paid for supplies purchased in item (4).
8. Recorded depreciation on equipment, $80.
9. Signed a franchise agreement to pay royalties of 5% of sales.
10. Paid royalites due on 1st weeks sales.
Required:
Prepare journal entries to record each of the transactions listed above.
Answer:
Please find the attached file.
Explanation:
Kal Tech Engineering Systems is considering buying a CNC machining center for its operation in Tennessee. The net benefits in the first year is estimated to be $40,000 and increasing at the rate $5,000 for the next four years and stays at the same level as that of year 5 for the next 5 years. If MARR is 8%, determine the amount of money that the company can invest justifying on this machining center. A salvage value of 20% of the initial cost is reasonable to assume at the end of year 10.
Answer:
If investment amount is at most equals to $396,311.20 then this project is justifiable.
Explanation:
Lets find Present worth of this project so that this calculated present worth amount equals to the amount of money that the company can invest
Present worth of project = Sum of discounted future cash flow over the life of project = PW of Benefits + PW of Salvage value
X=(40000/1.08)+(45000/1.08^2)+(50000/1.08^3)+(55000/1.08^4)+(60000/1.08^5)+(60000/1.08^6)+(60000/1.08^7)+(60000/1.08^8)+(60000/1.08^9)+(60000/1.08^10)+(0.2X/1.08^10)
X=359612.8+0.2X/(1.08^10)
X=359612.8+0.0926X
0.9074X=359612.8
X = 359612.8/0.9074
X = 396311.2
Conclusion: if investment amount is at most equals to $396311.2 then this project is justifiable
Variable Costing—Sales Exceed Production The beginning inventory is 14,500 units. All of the units that were manufactured during the period and 14,500 units of the beginning inventory were sold. The beginning inventory fixed manufacturing costs are $60 per unit, and variable manufacturing costs are $114 per unit. a. Determine whether variable costing income from operations is less than or greater than absorption costing income from operations. b. Determine the difference in variable costing and absorption costing income from operations. $
Answer:
a. Variable costing income from operations is greater than absorption costing income from operations.
b. $870,000
Explanation:
a. Under Variable costing, only the variable manufacturing costs are apportioned to the units produced.
Cost under Variable costing are;
= 114 * 14,500
= $1,653,000
Under Absorption Costing, both fixed and variable costs are apportioned to the units produced.
Cost therefore is;
= (114 + 60) * 14,500
= $2,523,000
Variable costing income from operations is greater than absorption costing income from operations because Absorption costs yields more cost.
b.= Absorption cost - Variable cost
= 2,523,000 - 1,653,000
= $870,000
Variable costing income from operation will be $870,000 higher than Absorption costing income from operations.
REFRESH Produce is a distributor of fresh produce. They conducted a thorough analysis of its market and identified groups of consumers that had similar product-related needs. One particular market identified wanted fresh and unique produce, such as Swiss chard, radicchio, and exotic fruits, and they were willing to pay higher prices for these choices. REFRESH Produce decided to focus its marketing effort on this segment of the total market. This segment is REFRESH Produce's
Answer:
D. target market
Explanation:
The target market can be identified as the group of people that the company has identified as potential consumers of its products or services, based on its similar characteristics, such as preferences and needs, aligned with the purpose of a product or service.
After identifying its target market, the company will focus its marketing efforts on that group of consumers to promote its business and become competitive and profitable in the market.
It is essential that the company develops personalized marketing to attract and retain potential consumers, using marketing strategies such as the marketing mix and the four pillars of product, price, market and promotion, in order to balance the company's marketing forces by promoting products and making available in the target market with elements that attract the attention and consumer desire for your product or service.
Garth was amazed to hear that his friend Lindsey always pays off her credit card balance each month. Garth just assumed that everyone used credit cards the same way - buy now, pay later - only in his case, months later. He buys almost everything he needs or wants, including clothes, food, and entertainment with his card. When Lindsey asked him about the balance calculation method, APR, grace period, or other fees and features of his card, Garth was clueless. He reasoned that his credit card was a safe and convenient way to shop and it allowed him to buy expensive items by paying minimum monthly payments. Overall, Garth thought of himself as a responsible credit user, despite the fact he had been late making a few monthly payments, and, once or twice, had gone over his credit limit. He also uses his card regularly to obtain cash advances. After hearing all of this, Lindsey is worried about her friend. She has come to you for help in answering the following questions. a. What type of credit user is Garth? Based on your answer, what is the number one factor that should influence Garth's choice of a credit card?
Answer:
Garth is a "REVOLVER "
Explanation:
Garth is a "Revolver" type of credit user, because he doesn't pay up the monthly payments on his card in full and on time, instead he carries debts over to the other months by paying in monthly installments
Based on the type of credit user Garth is, when picking up a credit card Garth should consider going for credit cards with low interest rate/APR charges and a longer grace period as well.
Assume that MTA Sandwiches sells sandwiches for $7.20 each. The cost of each sandwich follows. Materials $ 2.70 Labor 0.90 Variable overhead 0.45 Fixed overhead ($10,800 per month, 6,000 units per month) 1.80 Total costs per sandwich $ 5.85 One of MTA’s regular customers asked the company to fill a special order of sandwiches at a selling price of $5.40 each for a fund-raising event sponsored by a social club at the local college. MTA has capacity to fill it without affecting total fixed costs for the month. MTA’s general manager was concerned about selling the sandwiches below the cost of $5.85 and has asked for your advice. Required: a. Prepare a schedule to show the impact on MTA’s profits of providing 400 sandwiches in addition to the regular production and sales of 6,000 sandwiches per month. b. Based solely on the data given, what is the lowest price per sandwich at which the special order can be filled without reducing MTA’s profits?
Answer:
MTA Sandwiches
a. A Schedule:
Special Order Regular Production Total
Total contribution $540 $18,900 $19,440
Fixed overhead 0 10,800 10,800
Profit $540 $8,100 $8,640
Profits increased by $540 with the special order.
b. The lowest price per sandwich at which this special order of 400 sandwiches can be filled without reducing MTA's profits is $4.05. This is equal to the unit variable cost. At this price, neither profit will be generated nor loss incurred from the special order.
Explanation:
a) Data and Calculations:
Cost of each sandwich:
Materials $ 2.70
Labor 0.90
Variable overhead 0.45
Fixed overhead
($10,800 per month,
6,000 units per month) 1.80
Total costs per sandwich $ 5.85
b) Computation of total profit for special order and regular production:
Special Order Regular Production Total
Selling price = $5.40 7.20
Variable (Relevant) cost:
Materials $ 2.70
Labor 0.90
Variable overhead 0.45 $4.05 $4.05
Contribution per unit $1.35 $3.15
Total contribution ($1.35*400) $540 $18,900 ($3.15*6,000) $19,440
Fixed overhead 10,800
Profit $8,640
The City of Waterville applied for a grant from the state government to build a pedestrian bridge over the river inside the city’s park. On May 1, the city was notified that it had been awarded a grant of up to $200,000 for the project. The state will provide re-imbursement for allowable expenditures. On May 5, the special revenue fund entered into a short-term loan with the General Fund for $200,000 so it could start bridge construction. During the year, the special revenue fund expended $165,000 for allowable bridge construction costs, for which it submitted documentation to the state. Re-imbursement was received from the state on December 13.
Required:
For the special revenue fund, provide the appropriate journal entries, if any, that would be made for the following. (Assume the city has a fiscal year-end of December 31).
1. May 1, 2017, notification of grant approval.
2. May 5, 2017, loan from General Fund.
3. During FY 2017, bridge expenditures and submission of re-imbursement documentation.
4. December 13, 2017, receipt of the grant re-imbursement funds.
5. December 31, 2017, adjusting and closing entries.
Answer and Explanation:
The Journal entries are shown below:-
1. No Journal entry is required as the eligibility should be completed before recognition.
2. Cash Dr, $200,000
To Inter fund Loans Payable-Current $200,000
(Being cash is recorded)
3. Expenditure Dr, $165,000
To Voucher Payable $165,000
(Being expenses is recorded)
Due from State Government Dr, $165,000
To Revenues $165,000
(Being revenues is recorded)
4. Cash Dr, $165,000
To Due from State Government $165,000
(Being cash is recorded)
5. Revenues Dr, $165,000
To Expenditure $165,000
(Being revenue is recorded)
No Other entry will made as the balance of $35,000 eligibility is not fulfilled.
arret Company has provided the following selected information for the year ended December 31, 2019: Cash collected from customers was $783,000. Cash received from stockholders in exchange for common stock totaled $91,000. Cash paid to suppliers was $361,000. Cash paid to employees was $204,000. Cash to stockholders for dividends was $33,000. Cash received from sale of a building was $250,000. Cash paid for store rent was $39,000. Cash received for interest and dividends was $7,000. Cash paid for income taxes was $55,000. Based on the selected information provided, how much was Garret's cash flow from operating activities?
Answer:
Cash flow from operating activities = $131,000
Explanation:
Cash flow from operating activities = Collected from customers - Cash paid to suppliers - Cash paid to employees - Cash paid for store rent + Cash received for interest and dividends - Cash paid for income taxes
Cash flow from operating activities = $783,000 - $361,000 - $204,000 - $39,000 + $7,000 - $55,000
Cash flow from operating activities = $131,000
what do you think are the adverse effects when sustainable economic development practices in country are not implemented?
Answer:
Ignoring the issues of sustainable development has many possible consequences, such as rising sea levels, extreme droughts, erosion and loss of forests, increases in slum populations, species extinctions and collapsing fisheries.
The correct statement is that when the sustainable economic developments in the country are not met, a direct impact is seen in its growth and financial position of the country is weakened.
When there is no sustainable development the people of the country would ultimately suffer due to the bad policies being implemented regarding the allocation of funds.
A country should look after the developments of a country by allocation of required funds in the right fields and achieve such financial goals. Citizens must disclose their earnings and pay taxes on the true and fair amounts of such incomes. This will help in collection of taxes making the country less deficit in funds.A direct effect will be seen in country's GDP whenever there is no development. As a result of this there will be inflation in the country which will reduce the consumer's purchasing power.Hence, a country's GDP is affected when there is no proper sustainable economic development practice and also leads to inflation situations.
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Tariff effects: An overview
Consider two hypothetical countries, Alagir and Ertil. Both countries produce iGadgets, and the price of iGadgets is lower in Alagir than in Ertil. If Alagir and Ertil open to trade, producers in would be more likely to lobby their government for an import tariff on iGadgets in order to protect themselves from foreign competition.
Which of the following statements about the effects of the tariff compared to free trade are correct?
A. In Alagir, workers in iGadget importing companies lose their jobs.
B. In Ertil, some workers at retail and shipping companies that import iGadgets lose their jobs.
C. In Ertil, consumers pay more for the domestic iGadgets.
D. In Ertil, workers in iGadget importing companies see more jobs available to them.
E. In Ertil, producers of iGadgets are willing to expand output.
Answer:
The answer is "Option E, Option B, and Option C".
Explanation:
There are two Alagir and Ertil nations, and both iGadgets are created by the nations. Its price throughout the world was lower than in the world, and the manufacturers in Ertil will be more likely to ask their government for just a tariff on iGadgets to protect them against the international competition so because the cost in the nation is higher and consumers are starting to import goods from the country.
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what is the difference between salary and fixed rate (give an example for both)
Answer:
salary is a lump sum for work and fixed rate is a fixed rate that changes with amount of hours worked.
Explanation:
salary is a lump sum for work and fixed rate is a fixed rate that changes with amount of hours worked.
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The 16 overhead doors on your loading dock must be replaced now. The deluxe model costs $2,200 each and will last for six years. The standard model costs $1,600 each and will last for four years. The deluxe model is aluminum, so it will have a scrap value of $150 at the end of its life. The standard model is plastic and has no scrap value. The use of the deluxe model on the loading dock will also save your company $1,000 per year in heating costs because of its ability to seal better. If you use an interest rate of 12% and present worth analysis, which door will you recommend
Answer:
You should purchase standard doors because the present value of that purchase is -$25,600, while the NPV of purchasing aluminum doors is -$30,195.56.
Explanation:
we have to compare the present value of both alternatives:
alternative 1: purchase aluminum deluxe doors:
cash flow year 1 = (16 x -$2,200) = -$35,200
cash flow year 1 - 5 = $1,000
cash flow year 6 = $1,000 + (16 x $150) = $3,400
NPV = -$35,200 + $1,000/1.12 + $1,000/1.12² + $1,000/1.12³ + $1,000/1.12⁴ + $1,000/1.12⁵ + $3,400/1.12⁶ = -$35,200 + $892.86 + $797.19 + $711.78 + $635.52 + $497.18 + $1,469.91 = -$30,195.56
alternative 2: purchase standard doors
NPV = 16 x -$1,600 = -$25,600
Robert Plant deposits $25 each month into a savings account that pays 4.0% annual interest. How much will be in the account after 36 months, if interest compounds monthly
Answer:
FV= $953.97
Explanation:
Giving the following information:
Monthly deposit= $25
Interest rate= 0.04/12= 0.0033
Number of periods= 36
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {25*[(1.0033^36) - 1]} / 0.0033
FV= $953.97