Answer:
A) Total Assets
B) Accounts Receivable
E) Revenue.
Explanation:
Accounts Receivable are being increased because the customer took the goods on credit and agreed to pay in 30 days.
Accounts Receivable is an asset so the total asset will increase. Even though inventory decreases, the amount that the good was sold for exceeds inventory cost so the net benefit will increase assets.
Revenue is earned when a good is sold. $10,000 worth of goods were sold so that would be $10,000 in revenue.
An analysis of the accounts of Roberts Company reveals the following manufacturing cost data for the month ended June 30, 2017 Inventory Beginning Ending Raw materials $9,180 $17,480Work in process 5,670 7,610 Finished goods 9,300 6,430Costs incurred: raw materials purchases $55,020, direct labor $51,740, manufacturing overhead $23,300. The specific overhead costs were: indirect labor $6,510, factory insurance $4,700, machinery depreciation $4,380, machinery repairs $1,990, factory utilities $3,740, and miscellaneous factory costs $1,980. Assume that all raw materials used were direct materials. Prepare the cost of goods manufactured schedule for the month ended June 30, 2017
Answer:
Cost of goods manufactured schedule for the month ended June 30, 2017
Raw Materials $46,720
Direct Labor $51,740
Manufacturing Overhead :
Indirect labor $6,510
Factory insurance $4,700
Machinery depreciation $4,380
Machinery repairs $1,990
Factory utilities $3,740
Miscellaneous factory costs $1,980
Add Opening Work in process Inventory $5,670
Less Closing Work in process Inventory ($7,610)
Cost of goods manufactured $119,820
Explanation:
Cost of goods manufactured schedule is a summary of manufacturing costs for the production period.
Determination of Raw Materials In Production
Raw Materials T - Account
Debit :
Opening Balance $9,180
Purchases $55,020
Totals $64,200
Credit :
Work In Process (Balancing figure) $46,720
Closing Balance $17,480
Totals $64,200
The unadjusted trial balance of the Manufacturing Equitable at December 31, 2011, the end of its fiscal year, included the following account balances. Manufacturing�s 2011 financial statements were issued on April 1, 2012.
Accounts receivable $ 92,500
Accounts payable 35,000
Bank notes payable 600,000
Mortgage note payable 1,200,000
Other information:
a. The bank notes, issued August 1, 2011, are due on July 31, 2012, and pay interest at a rate of 10%, payable at maturity.
b. The mortgage note is due on March 1, 2012. Interest at 9% has been paid up to December 31 (assume 9% is a realistic rate). Manufacturing intended at December 31, 2011, to refinance the note on its due date with a new 10-year mortgage note. In fact, on March 1, Manufacturing paid $250,000 in cash on the principal balance and refinanced the remaining $950,000.
c. Included in the accounts receivable balance at December 31, 2011, were two subsidiary accounts that had been overpaid and had credit balances totaling $18,000. The accounts were of two major customers who were expected to order more merchandise from Manufacturing and apply the overpayments to those future purchases.
d. On November 1, 2011, Manufacturing rented a portion of its factory to a tenant for $30,000 per year, payable in advance. The payment for the 12 months ended October 31, 2012, was received as required and was credited to rent revenue.
Required:
(1) Prepare any necessary adjusting journal entries at December 31, 2011, pertaining to each item of other information (a�d).
(2) Prepare the current and long-term liability sections of the December 31, 2011, balance sheet.
Answer:
1. A.
Dec 31
DR Interest Expense ...............................................$25,000
CR Interest Payable ..................................................................$25,000
(To record interest payable on bank notes for the year)
Working
= 10% * 600,000
= $60,000 per year
August to December 5 months
= 60,000/ 12 months * 5
= $25,000
B. No entry required. Payment of $250,000 shall be considered short term liability as it is to be paid in less than a year. The $950,000 shall be a long term liability.
C.
Dec 31,
DR Accounts Receivable...............................................$18,000
CR Advance from Customers.......................................................$18,000
D.
Dec 31,
DR Rent Revenue ............................................................$25,000
CR Rent received in advance.........................................................$25,000
Working
Rent is $30,000 from the tenant starting November 1 which means rent needs to be apportioned to 2 months in 2011.
= 30,000/12 moths * 2
= $5,000
Rent to be recorded as received in advance;
= 30,000 - 5,000
= $25,000
2.
..................................Liabilities as at December 31, 2011............................
Current Liabilities
Accounts Payable ......................................................$35,000
Current Portion of debt .............................................$250,000
Advance from Customers.........................................$18,000
Accrued Interest payable..........................................$25,000
Unearned rent revenue.............................................$25,000
Bank notes payable....................................................$600,000
Total................................................................................$953,000
Long Term Liabilities
Mortgage Note Payable ............................................$950,000
Total .................................................................................$950,000
An independent movie producer with a modest but loyal fan base is short of funds for her next movie. Knowing that a bank loan is an unrealistic option, she is considering crowdfunding. But she is not very familiar with it or how to go about starting and conducting a crowdfunding campaign.
Prepare a report for the producer explaining the different approaches to crowdfunding, including the equity funding approach. Alert the producer to any drawbacks that might make people less willing to contribute to funding her movie and positives that might make people more likely to fund her movie. Conclude your report with a recommendation of which crowdfunding approach you believe would be most effective for this independent movie producer.
Answer:
Crowd funding is a strategy to raise small money from a large number of people. This is mainly suitable when large funding is required for a project.
Explanation:
The filmmaker is planning to make a short web series which will be available online for the viewers. The producers might hesitate to finance such small short movie as they will be unsure whether the movie will be able to make money. There can be crowd funding option considered for raising finance for the movie. These small creators and new filmmakers should be supported as they can have better ideas than the rich filmmakers. Crowd funding will be able to raise money and people will pay for the content they want to watch. The movie will create curiosity in the audience before its release and there are high chances that this small content can be a big hit.
Andrew founded and operated a wedding planning agency, which specialized in celebrity weddings. When he died, his business was dissolved because there was no plan for control after his death.
Answer:
Business Scenario: Sole proprietorship
Explanation:
The sole proprietor is the sole proprietor of the business. He earns losses only from trade and only profits from trade. There is no difference between business and owner. It is very easy to create and cancel such a business because the government is not involved in it.A.The loss on the cash sale of equipment was $4,375 (details in b).B. Sold equipment costing $97,875, with accumulated depreciation of $47,125, for $28,625 cash.C. Purchased equipment costing $113,375 by paying $64,000 cash and signing a long-term note payable for the balance.D. Borrowed $5,700 cash by signing a short-term note payable.E. Paid $58,625 cash to reduce the long-term notes payable.F. Issued 4,200 shares of common stock for $20 cash per share.G. Declared and paid cash dividends of $53,500.Prepare a complete statement of cash flows; report its operating activities using the indirect method.
Answer:
Cash Flow Statement
Cash flow from Operating Activities
Adjustment for Non - Cash items :
loss on the cash sale of equipment $4,375
Adjustment for Working Capital items :
Increase in short-term note payable $5,700
Net Cash from Operating Activities $10,075
Cash flow from Investing Activities
Proceeds from sale of equipment $28,625
Purchase of Equipment ($64,000)
Net Cash from Investing Activities ($35,375)
Cash flow from Financing Activities
Repayment of the long-term notes payable ($58,625)
Issue of Common Stocks $84,000
Dividend Paid ($53,500)
Net Cash from financing Activities ($28,125)
Movement During the Year ($53,425)
Explanation:
The Indirect method reconciles the Operating Profit to the Cash Flow from Operating Activities by adjusting the following items, (1) Non-cash items previously included or deducted from the Operating Profit and (2) Changes in Working Capital items.
You are asked to compose a job description for the position of director of sales at your company. This is a position you once held, so you are familiar with the requirements and qualifications. Before beginning to write, you look in the files for past descriptions and check with your supervisor about details to include. What research method did you use in this situation?
Answer: Informal research
Explanation:
Informal research are forms of research whereby information are collected in an informal way and not through sampling precision or statistical methods. It is a cost effective strategy methods.
In this scenario, since the person knows about the requirements for the position of director of sales at the company, the person is using an informal method by asking the supervisor about details to include.
Select a local nonprofit and work with a team of your classmate to brainstorm ideas for a franchise business that cash flow to support. The mission of the social venture. What advice can you offer social entrepreneurs n developing alternative revenues to replace declining grants and donations
Answer:
fundraising
Explanation:
when rival firms compete aggressively by trying to attract competitors' customers, this might be an indication of:
Answer:
Slow industry growth
Explanation:
Slow industry growth is the growth that shows the industry at a slow rate or no growth is there.
It could arise when the consumer does not opt for a high demand
In the given situation, it is mentioned that when competitive firms aggressively trying to attract the customers of competitors so this is an indication of the slow economic growth and hence, the same is to be considered
Strategic,tactical,and operational are the ____.A) three levels of planningB) levels of diversityC) strategic levelsD) three levels of marketingE) phases of the environment
Answer:
three levels of planning
Explanation:
The three levels of planning are
Strategic,tactical,and operational.
Planning process in management involves the settings of goals that need to be achieved in an organization.
It should be noted that three levels of planning are
1)Strategic
2),tactical
3) operational
All these levels are needed for planning process to be effective.
Tactical level of planning involves the analysis of the short term actions that are required for the set goals to be achieved.
Strategic level of planning provide direction for the business, it helps in good utilization of resources.
Operational level of planning helps to define the goals.
________ can be categorized as popularity, relevancy, and user satisfaction. a. Mobile search SEO b. Ranking factors c. SERP d. Web analytics
Answer:
b. Ranking factors
Explanation:
Ranking factors are used to try to rank or determine which websites are better in certain fields or factors. E.g. which sites rank in top on mobile friendliness. It is just a way to classify websites or apps and categorize them. Another e.g., which apps rank in top in user experience. Companies can use these ranking factors and their results as benchmarks on what they can do to improve.
What is the future value of a $500 annuity payment over eight years if interest rates are 14 per 14 percent
Answer:
FV= $6,616.38
Explanation:
Giving the following information:
Annual cash flow= $500
Number of periods (n)= 8
Interest rate= 14%
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= annual cash flow
FV= {500*[(1.14^8) - 1]} / 0.14
FV= $6,616.38
Fill in the blanks to complete the passage about gains from trade. To have an absolute advantage means to be able to produce more using the same resources. To have________ advantage means to have a lower_______.Comparative advantage is the basis for______. It is________for one producer to have a comparative advantage for every good.
Answer:
- absolute
- cost of raw materials
- exportation of goods
- impossible
Explanation:
To have an absolute advantage means to be able to produce more using the same resources. To have_absolute_______ advantage means to have a lower___production/resource cost____.Comparative advantage is the basis for_exportation of goods_____. It is__impossible______for one producer to have a comparative advantage for every good.
If a producer is producing more using the same resources, that means he has the benefit of obtaining the raw materials at a lower cost.
Comparative advantage is the basis for exportation of goods because producers or countries focus on exporting products that give them comparative advantage, so as to make foreign earnings.
It is impossible for one producer to have comparative advantage for every good.
Jim agrees orally with West Bank to guarantee a loan that West Bank will make to Susan to purchase an existing restaurant upon Susan's agreement to pay Jim 10% of the gross revenues for two years. All parties orally agree. Jim's guaranty agreement with West Bank is unenforceable under the Statute of Frauds.A. Trueb. False
Answer: false
Explanation:
The statute of frauds requires some specific contracts types to be executed in writing. According to the statute, the contracts covered include agreements that involve goods worth over $500,
contracts for land sale, and also contracts that last for either one year or more.
Based on the scenario above, it is false as Jim's guaranty agreement with West Bank is enforceable under the Statute of Frauds
Your just deposited $2500 in a bank account that pays 4.0% nominal interest rate, compounded quarterly. If you also add another $5,000 to the account one year (4 quarters) from now and another $7,500 to the account two years (8 quarters) from now, will you have more than $17,500 in the account three years (12 quarters) from now?
Answer:
Total FV= $16,035.87
Explanation:
Giving the following information:
Deposit 1:
Investment= $2,500
Number of periods= 4*3= 12
Deposit 2:
Investment= $5,000
Number of periods= 4*2= 8
Deposit 3:
Investment= $7,500
Number of periods= 4*1= 4
Interest rate= 4% compoundes quarterly
Real interest rate= 0.04/4= 0.01
To determine the future value, we need to use the following formula on each deposit:
FV= PV*(1+i)^n
FV1= 2,500*(1.01^12)= $2,817.06
FV2= 5,000*(1.01^8)= $5,414.28
FV3= 7,500*(1.01^4)= $7,804.53
Total FV= $16,035.87
External processes targeted in competing on analytics consist of:____.A. Human Resource Management.B. Customer Relationship Management (CRM).C. Enterprise Performance Management.D. Supply Chain Management (SCM).
Answer:
B. Customer Relationship Management (CRM).
Explanation:
Customer relationship management refers to managing a relationship with the customer by providing them excellent products and servcies at reasonable cost in order to build a trust, provide them maximum satisfaction so that the company could able to generate maximum share in the market place. Also it should be more focused to attain competitive advantage
Therefore according to the given situation, the option B is correct
Computers used to produce magazine articles is it land or capital
Answer:
captial
Explanation:
Land means things like natural resources, labor is the manual work force that either makes capital products or turns natural resources into a useable product to work, and capital is anything made that is used to make something else.
When computers are used to produce magazine articles the main factor of production is capital.
To an economist, capital often refers to liquid assets. In other words, it is cash on hand that may be used on either daily requirements or long-term initiatives.
Capital refers to the funds or resources utilized to launch a firm. Capital is a resource that might be money or anything in kind that is used to buy more raw materials and inputs. It is a critical component since every firm needs some initial money.
Therefore, the main factor of production is capital.
To know more about the capital, visit:
https://brainly.com/question/33848256
#SPJ6
This is an incomplete question, the complete question is:
What is the factor of production when computers are used to produce magazine articles?
The following is a December 31, 2021, post-closing trial balance for Almway Corporation.
Answer:
TOTAL ASSETS $1,043,000
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $1,043,000
Explanation:
Preparation of a balance sheet for the Almway Corporation at December 31, 2021.
ALMWAY corporation
Balance sheet at December 31,2018
ASSETS
Current Assets
Cash and cash equivalent$47,000
($79,000-$32,000)
Short term investment $97,000
($144,000-$47,000)
Account receivable net of allowances $77,000
Inventories $217,000
Prepaid insurance $5,000
TOTAL CURRENT ASSETS $443,000
INVESTMENT
Marketable securities $47,000
Land held for sale $42,000
Restricted cash $32,000
TOTAL INVESTMENT $121,000
Plant property and equipment
Land $82,000
($124,000-$42,000)
Building $437,000
Accumulated deperation Building ($117,000)
Equipment $127,000
Accumulated deperation Equipment ($77,000)
NET PLANT PROPERTY AND EQUIPMENT $452,000
INTANGIBLE ASSETS
Patents ( net of amortization) $27,000
TOTAL ASSETS $1,043,000
LIABILITIES AND STOCKHOLDERS EQUITY
Current liabilities
Account payable $109,000
Interest payable $37,000
Note payable due in 6 months $47,000
Current maturity of long term debt notes payable $13,400
TOTAL CURRENT LIABILITY $206,400
LONG TERM LIABILITIES
Notes payable $120,600
($181,000-$47,000-$13,400)
Bond payable $257,000
TOTAL LONGTERM LIABILITIES $377,600
SHAREHOLDER EQUITY
Authorised 500,000 shares
Issued and outstanding shares $351,000
Retained earnings $108,000
Total shareholders equity $459,000
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY $1,043,000
Sadar Company operates a store with two departments: videos and music. Information about those departments follows. Videos Departmen Music Department Sales .. $370,500 279500Cost of goods sold 320000 175000 Direct expenses Salaries 35,000 25000Maintenance. 12000 10000Utilities 5000 4500 Insurance 4200 3700The company also incurred the following indirect costs Advertising 15000Salaries 27000 Office expenses 3,200 Indirect costs are allocated as follows: advertising on the basis of sales; salaries on the basis of number of employees; and office expenses on the basis of square footage. Additional information about the departments follows. Department Square footage Number of employees Videos 5,000 3 Music 3,000 2Required 1. For each department, determine the departmental contribution to overhead and the departmental net income. 2. Should the video department be eliminated?
Answer:
Sadar Company
1. Departmental Contribution and Net Income:
Videos Department Music Department
Sales $370,500 279,500
Cost of goods sold 320,000 175,000
Contribution $ 50,500 104,500
Direct expenses:
Salaries 35,000 25,000
Maintenance 12,000 10,000
Utilities 5,000 4,500
Insurance 4,200 3,700
Indirect expenses:
Advertising 8,550 6,450
Salaries 16,200 10,400
Office expenses 2,000 1,200
Total expenses: $82,950 61,250
Net Income (Loss) $(133,450) 43,250
2. Video Department should be eliminated from the profit point of view. Its indirect costs of $26,750 can be absorbed by the Music Department.
Explanation:
a) Data and Calculations:
Videos Department Music Department
Sales $370,500 279500
Cost of goods sold 320000 175000
Direct expenses:
Salaries 35,000 25000
Maintenance 12000 10000
Utilities 5000 4500
Insurance 4200 3700
Indirect expenses:
Advertising 8,550 6,450
Salaries 16,200 10,400
Office expenses 2,000 1,200
Indirect Costs:
Advertising 15000 Sales
Salaries 27000 Number of employees
Office expenses 3,200 Square footage
Department Square footage Number of employees
Videos 5,000 3
Music 3,000 2
Indirect Costs Allocation:
Videos Department Music Department
Sales $370,500 279,500
Advertising 15000 8,550 6,450
Sales
Salaries 27000 16,200 10,400
Number of employees
Office expenses 3,200 2,000 1,200
Square footage
Product and Period Costs Identify the following costs as a product cost or a period cost for a magazine publisher: a. Sales salaries b. Paper used for the magazine c. Maintenance on printing machines d. Depreciation expense—corporate headquarters
Answer:
Explanation:
We were told to Identify the following costs as a product cost or a period cost for a magazine publisher:
PRODUCT COST are all the incurred cost during production of a service/ product till it's available to get to the consumer. This could be direct labor as well as over head.
PERIOD COST: are cost that cannot be associated to production cost such as rents, utilities cost that are required for the business.
a). SALES SALARIES
Identification: product cost
b. PAPER USED FOR THE MAGAZINE
Identification: product cost
c. MAINTENANCE ON PRINTING MACHINE
Identification: product cost
d) DEPRECIATION EXPENSES—corporate headquarters
Identification: Period cost
Crane Company manufactures a product with a unit variable cost of $100 and a unit sales price of $176. Fixed manufacturing costs were $480000 when 10000 units were produced and sold. The company has a one-time opportunity to sell an additional 1000 units at $115 each in a foreign market which would not affect its present sales.
If the company has sufficient capacity to produce the additional units, acceptance of the special order would affect net income as follows:
a. Income would decrease by $8,000.
b. Income would increase by $8,000.
c. Income would increase by $140,000.
d. Income would increase by $40,000.
e. None of the above.
Answer: e. None of the above
Explanation:
Fixed costs are already incurred so will no longer be a factor as the same facilities are to be used. .
Variable costs on the other hand will always be there as the company aims to produce more and more goods.
The increase in net income will therefore be;
= Sales revenue - Variable costs
= ( 1,000 * 115) - ( 1,000 * 100)
= $15,000
Income will increase by $15,000
Which of the following is most associated with managerial accounting?a. must follow GAAPb. may rely on estimates and forecastsc. is prepared for users outside the organizationd. balways reports on the entire entity
Answer:
b. may rely on estimates and forecasts
Explanation:
Managerial accounting involves not only financial information, it might also include information about production processes, customer satisfaction, etc. E.g. defective units, budgeted production output, % of closed sales, etc. Managerial accounting is used by management to supervise and control how the company is operating, not necessarily if it is making a profit or not.
Healthy Start Bakery mass-produces bread using three sequential processing departments: Mixing, Baking, and Packaging. The following ransactions occurred during AprilRequirements: 1. Post each of these transactions to the company's inventory T-accounts 2. Determine the balance at month-end in each of the inventory accounts. 3. Assume that 3,075,000 loaves of bread were completed and transferred out of the Packaging Department during the month. What was the cost per unit of making each loaf of bread (from start to finish)?Before posting the transactions to the company's T-accounts, begin by determining which accounts are affected by each transaction. The transactions may affect one or two accounts. (Abbreviation used: Dept. -Department. If a box is not used in the table leave the box empty, do not select a label.) 1. Direct materials used in the Packaging Department ................. $ 31,000 2. Costs assigned to units completed and transferred out of Mixing ....... $ 225,000 3. Direct labor incurred in the Mixing Department .................... $ 11,700 4. Beginning balance: Work in Process Inventory Baking..............$ 15,100 5. Manufacturing overhead allocated to the Baking Department. .........$ 77,000 6. Beginning balance: Finished Goods ... .........$ 4,500 7. Costs assigned to units completed and transferred out of Baking....... $ 307,000 8. Beginning balance: Work in Process Inventory Mixing ..............$ 12,600 9. Direct labor incurred in the Packaging Department. .................$ 8,900 10. Manufacturing overhead allocated to the Mixing Department.......... $ 68,000 11. Direct materials used in the Mixing Department ....................$ 153.000 12. Beginning balance: Raw Materials Inventory ......................$ 23,000 13. Costs assigned to units completed and transferred out of Packaging.... $ 386,000 14. Beginning balance: Work in Process InventoryPackaging...........$ 8,200 15. Purchases of Raw Materials ................. $ 170,000 16. Direct labor incurred in the Baking Department ....... .........$ 4,800 17. Manufacturing overhead allocated to the Packaging Department....... $ 49,000 18. Cost of goods sold ............$ 387,000
Complete question
The complete question is shown on the first, second, third uploaded image
Answer:
The solution for the first and second question is shown on the fourth and fifth uploaded image
3
The Cost per unit of making each loaf of bread = $0.1239
Explanation:
Generally the
Cost per unit of making each loaf of bread = [tex]\frac{ Total manufacturing costs }{Number of loaves}[/tex]=
=> Cost per unit of making each loaf of bread = [tex]\frac{\$381000}{\$3075,000}[/tex]
=> Cost per unit of making each loaf of bread = $0.1239
Experts suggest that of your time should be spent on the revising phase.
25%
50%
??
Consider the borrowing rates for Parties A and B. A wants to finance a $100,000,000 project at a FIXED rate. B wants to finance a $100,000,000 project at a FLOATING rate. Both firms want the same maturity, 5 years.
Fim Fixed Rate Floating
A $10.3% Prime + 1%
B $8.900 Prime +4%
Construct a mutually beneficial INTEREST ONLY swap that makes money for A, B, and the swap bank IN EQUAL MEASURE.
Answer:
party A will pay floating rate while party B will pay fixed rate
Explanation:
For A
Sources at floating rate = prime 1%
received fixed rate = 8.9%
For B
sources fixed rate = 8.9%
Received floating rate = prime 1%
For a mutually beneficial interest only swap that makes money for A,Band the swap bank in equal measure, the party A will pay floating rate while party B will pay fixed rate
Mr. Algazi provides the information his client has requested through a voice message.
a. Sender has an idea
b. Receiver decodes message
c. Feedback travels to sender
d. Sender encodes message
e. Message travels over channel
Identify the appropriate step in the communication process.
Lincoln makes notes about questions
a. he has on a benefits update memo from HR.
b. Receiver decodes message
c. Feedback travels to sender
d. Sender has an idea
e. Sender encodes message
f. Message travels over channel
Identify the appropriate step in the communication process.
William Fairaizl left a voicemail to the job candidate, asking him meet with him at 4:00 p.m.
a. Sender sends additional feedback to receiver
b. Sender decodes the idea in a message
c. Receiver decodes message
d. Sender has an idea
e. Sender encodes the message
Answer: c
Explanation:
Mr. Algazi gives his customer the information he needs through voice mail message, which is a sort of "Feedback travels to sender."
The conditions of the scenario in which communication takes place are referred to as context in communications.
Personal, psychological, group, communal, and communications technology are all examples of communication settings.All of the examples provided above are correct.All of the above responses are accurate in the current communication environment.Suppose you plan to take summer courses. The cost of tuition and
textbooks is $1,200, housing will cost you $400, and you'll spend
$300 on food. If you decide not to take courses in the summer,
you'll live in your parents' house for free and spend only $100 on
food. Also, if you don't take courses in the summer, you'll work full
time and could earn $5,000. You can still work part time while
taking courses, but you will only earn $1,000. What is your
opportunity cost of taking courses in the summer?
Answer:
$5800
Explanation:
The income that would be earned if the summer courses were not taken is $5000 while we spend only $100 on food.
Besides, by taking the summer courses costs to be incurred is computed thus:
costs of summer courses=$1,200+$400+$300=$1900
By taking the summer courses one would earn $1000
In short, the opportunity of taking the summer courses is the earnings of -$5000 forgone plus the cost of $100 saved, plus the $1000 earned minus the $1900 spent on summer courses
i.e -$5000+$100+$1000-$1900=-$5800
Do you agree or disagree with the manager’s decision of when to ship goods to customers and record the revenue? Explain your reasoning. Is there an accounting rule against this practice?
Answer:
sorry
Explanation:
The following data pertain to Cowl, Inc., for the year ended December 31, Year 4:Net sales $600,000Net income 150,000Total assets, January 1, Year 4 2,000,000Total assets, December 31, Year 4 3,000,000
What was Cowl's rate of return on assets for 20X4?
a. 6%.b. 20%.
c.5%.
d. 24%.
Answer:
6%
Explanation:
Calculation for Cowl's rate of return on assets for 20X4
Using this formula
Rate of return on assets=Net income/[(Total assets January 1, Year 4 +Total assets, December 31, Year 4)/2]
Let plug in the formula
Rate of return on assets= $150,000/[($2,000,000 + $3,000,000)/2]
Rate of return on assets= $150,000/($5,000,0000/2)
Rate of return on assets= $150,000/2,500,000
Rate of return on assets= 0.06×100
Rate of return on assets= 6%
Therefore Rate of return on assets will be 6%
If the price elasticity of demand for a product is 1 in absolute value, and the price elasticity of supply of the same product is 1, what is the predicted percent change in price from a 1 percent increase in demand?
Answer:
a 1% decrease in price
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded
Unit elastic demand = percentage change in quantity demanded / percentage change in price = 1
According to the law of demand, the higher the price, the lower the quantity demanded and the lower the price, the higher the quantity demanded.
It follows that if price increases by 1%, quantity demanded would fall by 1% since demand is unit elastic
The account balances of Wilson Towing Service at June 30, 2016, follow:
Equipment $12,950
Office supplies 1,000
Notes payable 4,500
Rent expense 500
Cash 1,400
Dividends 5,500
Service revenue 12,500
Accounts receivable 8,000
Accounts payable 10,000
Retained earnings
June 1, 2016 5,900
Salaries expense 2,500
Common stock 2,000
Required:
1. Prepare the income statement for Wilson Towing Service for the month ending June 30, 2016.
2. What does the income statement report?
Answer:
$9,500
The income statement will report both Revenues which is Service revenue and Expenses which are Salaries expense and
Rent expense
Explanation:
Preparation for income statement for Wilson Towing Service
Income statement for Wilson Towing Service for the month ending June 30, 2016.
REVENUE
Service Revenue 12,500
Less EXPENSES:
Salaries expense (2,500)
Rent expense (500)
Net income $9,500
Therefore net inome for income statement for Wilson Towing Service for the month ending June 30, 2016 will be $9,500
Based on the above calculation the income statement will report both Revenues which is Service revenue and Expenses which are Salaries expense and Rent expense.