Answer:
700 units
Explanation:
Since it is given that the 700 units if city are sold to the nano segment and it is also mentioned that the competitive environment remains unchanged so the city demand of the product for the next year is also remains same as there is no change in the competitive environment
Hence, the demand fro the product in the next year is 700 units
Chester company's City product's demand next year can be predicted to remain at the current level of 700 units if the competitive environment stays the same. Forecasting depends on production and cost conditions and market structure. The concept of economies of scale and the analysis of the LRAC curve are important in understanding these market dynamics.
Explanation:To determine the demand for Chester company's City product next year, given that all competitors' policies remain the same, we would start by looking at the current sales figures, which are 700 units in the Nano segment. If the competitive environment, including market shares and consumer behavior, does not change, it is reasonable to forecast that the product’s demand will remain the same, meaning Chester can expect to sell a similar amount of units next year. The assumptions on market structure, competitive environment, and production costs are critical for such forecasting.
When looking at microeconomic questions similar to this, the decision to produce more or fewer goods hin_ges on production and cost conditions as well as the market's structure. For instance, changes in the competitive landscape, such as a price increase for running shoes or a government subsidy for green technologies, would need to be considered when forecasting demand and profits for the coming year.
Market structure is crucial; a key question to ask is how many competitors are in the market and what their capacities are. For instance, if the market can only support a certain number of units before reaching saturation, producing beyond that point would lead to excess supply and potential losses. This is tied into the concept of economies of scale and the intersection of market demand with the long-run average cost (LRAC) curve, which can predict whether a company will be able to sell all its products at a profitable price.
Lily Company sells automatic can openers under a 75-day warranty for defective merchandise. Based on past experience, Lily estimates that 4% of the units sold will become defective during the warranty period. Management estimates that the average cost of replacing or repairing a defective unit is $20. The units sold and units defective that occurred during the last 2 months of 2020 are as follows.
Months Units Sold Units Defective Prior to December 31
November 37,300 746
December 39,300 491
Prepare the journal entries to record the estimated liability for warranties and the costs incurred in honoring 1,237 warranty claims.
Answer and Explanation:
The journal entries are shown below:
a. On November
Warranty expense Dr $29,840 (37,300 units × 4% × $20)
To Estimated warranty payable $29,840
(Being the warranty expense is recorded)
For recording this we debited the expense as it increase the expense and credited the estimated warranty payable as it increased the liabilities
On December
Warranty expense Dr $31,440 (39,300 units × 4% × $20)
To Estimated warranty payable $31,440
(Being the warranty expense is recorded)
For recording this we debited the expense as it increase the expense and credited the estimated warranty payable as it increased the liabilities
For cost incurred
Accrued Warranty Expense $24,740
To Cash $24,740
(Being the cash is paid)
For recording this we debited the expense as it increase the expense and credited the cash as it reduced the assets
The cash account for Pala Medical Co. at June 30, 20Y1, indicated a balance of $166,436. The bank statement indicated a balance of $195,688 on June 30, 20Y1. Comparing the bank statement and the accompanying canceled checks and memos with the records revealed the following reconciling items: a. Checks outstanding totaled $19,427. b. A deposit of $12,300, representing receipts of June 30, had been made too late to appear on the bank statement. c. The bank collected $26,500 on a $25,000 note, including interest of $1,500. d. A check for $4,000 returned with the statement had been incorrectly recorded by Pala Medical Co. as $400. The check was for the payment of an obligation to Skyline Supply Co. for a purchase on account. e. A check drawn for $195 had been erroneously charged by the bank as $915. f. Bank service charges for June amounted to $55.
Final answer:
The subject of this question is the reconciliation of cash accounts for Pala Medical Co. The company needs to analyze the differences between its cash account balance and the balance on the bank statement and consider various reconciling items.
Explanation:
The subject of this question is the reconciliation of cash accounts for Pala Medical Co. The question provides a list of reconciling items that need to be taken into account to reconcile the balance in the company's cash account with the balance on the bank statement. By analyzing the differences between the two balances and considering the reconciling items, the company can determine the correct balance of its cash account.
For each of the goods, identify the characteristics that describe each good. Note that each good will be described with two characteristics. Rivalrous is also referred to as rival in consumption. Consider only the immediate benefits and costs, not any externalities.
national defense
Pay-Per-View cable television
a Hot Pocket sandwich
private classroom education
pajamas
a unicycle
Excludable
Nonexcludable
Rivalrous
Nonrivalrous
Answer: PLEASE see below for answer
Explanation: An excludable good is referred to as a private good which restrict people from using them while a non excludable goods are public goods that do not place restriction an so people can access them eg park .
Also, Non-rivalrous goods are those goods that even though consumed by the people will not cause shortage of the availability of the same goods to others. A rivalrous good is the opposite as it causes shortage in availability to others when used.
National Defence----Non excludable and Non Rivalrous
Pay-Per-View cable television---Excludable and NonRivalrous
a Hot Pocket sandwich--- Excludable and Rivalrous
private classroom education--- Excludable and Rivalrous
pajamas--- Excludable and Rivalrous
a unicycle ---- Excludable and Rivalrous
Calculator Crawford Company's standard fixed overhead rate is $6 per direct labor hour based on budgeted fixed costs of $600,000. The standard allows one direct labor hour per unit. Last year, Crawford produced 110,000 units of product, incurred $630,000 of fixed overhead costs, and recorded 212,000 actual hours of direct labor. What is Crawford's fixed overhead spending variance for last year
Answer:
$30,000(U)
Explanation:
Calculator Crawford Company's
Fixed overhead cost $630,000
Less budgeted fixed costs $600,000
Fixed overhead spending variance $30,000(U)
Therefore Crawford's fixed overhead spending variance for last year will be
$30,000(U)
Suppose that the duopolists Carl and Simon face an inverse demand function for pumpkins of P = 400 - Q, where Q = Qs + Qc is the total number of pumpkins that reach the market and P is the price of pumpkins. Suppose further that Simon's cost function is Cs(Qs) = Qs2 and Carl's cost function is Cc(Qc) = 30Qc + Qc2. In the Cournot-Nash equilibrium, Simon's production is
Answer:
the Cournot-Nash equilibrium, Simon's production is 82 units
Explanation:
The Cournot-Nash Equilibrium for Simon's production is calculated as follows:
[tex]P = 400 - Q \\ \\ Q = Q_s + Q_c[/tex]
Reaction function of Carl is as follows:
Carl maximize profit at [tex]HR_c = HC_c[/tex]
[tex]TR_c = P*Q_c[/tex]
[tex]TR_c = (400 -Q_s -Q_c)Q_c[/tex]
[tex]TR_c = 400Q_c -Q_sQ_c -Q_c^2[/tex]
⇒ [tex]HR_c = \delta TR_c/ \delta Q_c[/tex]
[tex]HR_c =400 -Q_s -2 Q_c[/tex]
[tex]C_c = 30 Q_c + Q_c^2[/tex]
⇒ [tex]HC_c = \delta C_c/ \delta Q_c[/tex]
[tex]HC_c =30+2Q_c[/tex]
Set [tex]HR_c = HC_c[/tex]
[tex]400 - Q_s - 2 Q_c = 30 - 2Q_c \\ \\ 400 - Q_s -30 = 2Q_c + 2Q_c \\\\(370 Q_s) = 4 Q_c \\ \\ Q_c = (370-Q_s)/4 \\ \\ Q_c = 92.5 - 0.25 Q_s \to Reaction \ function \ of \ Carl --- equation (1)[/tex]
Reaction function of Simon
Since Simon maximize profit at [tex]HR_s = HC_s[/tex]
[tex]TR_s = PQ_s \\ \\ TR_s = (400-Q_c -Q_s)Q_s \\ \\ TR_s = 400 Q_s - Q_cQ_s - Q_s^2[/tex]
[tex]HR_s = \delta TR_s/ \delta Q_s[/tex]
[tex]HR_s =400 - Q_c -2Q_s[/tex]
[tex]C_s = Q_s^2[/tex]
[tex]HC_s= \delta C_s/ \delta Q_s[/tex]
[tex]HC_s=2Q_s[/tex]
Set [tex]HR_s = HC_s[/tex]
[tex]400- Q_c - 2Q_s = 2Q_s \\ \\ 400 - Q_c = 2Q_s+2Q_s \\ \\ 4Q_s = 400 - Q_c \\ \\ Q_s = (4000- Q_c)/4 \\ \\ Q_s = 100 -0.25 Q_c --- Reaction \ function \ of \ Simon \ -- equation (2)[/tex]
Substituting equation (1) into equation (2)
[tex]Q_s =100 -0.25Q_c \\ \\ Q_s = 100 - 0.25(92.5-0.25 Q_s) \\ \\ Q_s = 100 -23.125 +0.0625Q_s \\ \\ (Q_s-0.0625Q_s) = 76.375 \\ \\ 0.9375 Q_s = 76.875 \\ \\ Q_s = 76.375/0.9375 \\ \\ Q_s = 82[/tex]
Thus; the Cournot-Nash equilibrium, Simon's production is 82 units
Jones Excavation Company is planning an investment of $125,000 for a bulldozer. The bulldozer is expected to operate for 1,000 hours per year for five years. Customers will be charged $90 per hour for bulldozer work. The bulldozer operator costs $30 per hour in wages and benefits. The bulldozer is expected to require annual maintenance costing $7,500. The bulldozer uses fuel that is expected to cost $15 per hour of bulldozer operation.
Determine the equal annual net cash flows from operating the bulldozer.
Answer:
net cash flows = $37,500 per year
Explanation:
initial investment $125,000
operate 1,000 hours per year for 5 years
price per hour $90
direct labor costs $30 per hour
direct materials (fuel) $15 per hour
annual maintenance $7,500
the annual cash flows from operating the bulldozer = [($90 (price per hour) - $45 (total variable costs per hour) x 1,000 hours] - $7,500 (annual maintenance cost) = $45,000 - $7,500 = $37,500 per year
the cash flows should be the same for years 1 through 5.
The equal annual net cash flows from operating the bulldozer are $37,500.
Explanation:The equal annual net cash flows from operating the bulldozer can be calculated by subtracting the costs of operating the bulldozer from the revenue generated. In this case, the revenue is the customer charge per hour multiplied by the number of operating hours per year. The costs include the operator wages, annual maintenance costs, and fuel costs per hour. Let's calculate the net cash flows:
Revenue per year: $90/hour x 1,000 hours/year = $90,000Operator costs per year: $30/hour x 1,000 hours/year = $30,000Maintenance costs per year: $7,500Fuel costs per year: $15/hour x 1,000 hours/year = $15,000Total costs per year: $30,000 + $7,500 + $15,000 = $52,500Net cash flows per year = Revenue per year - Total costs per year = $90,000 - $52,500 = $37,500Therefore, the equal annual net cash flows from operating the bulldozer are $37,500.
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Airbolt Avionics makes aircraft instrumentation. Their basic navigation radio requires $ 120 in variable costs and requires $ 3 comma 000 per month in fixed costs. If it processes the radio further to enhance its functionality, it will require an additional $ 20 per unit of variable costs and $ 400 per month in fixed costs. The marketing manager believes the sales price of the radio can be increased from $ 270 to $ 300. In making this decision, the amount of additional fixed costs per month is a relevant cost.
Answer:
regular sales price $270, total sales per month = 10 units
basic manufacturing costs:
variable cost per unit $120
fixed costs $3,000
if further processed, sales price $300
if further processed:
additional variable cost $20 per unit
additional fixed costs $400
At what sales price level would the new, improved radio begin to improve operating earnings?
sales price $270
revenue $2,700
variable costs -$1,200
fixed costs -$3,000
operating income -$1,500
sales price $300
revenue $3,000
variable costs -$1,400
fixed costs -$3,400
operating income -$1,800
Since relevant costs increase by $60 per unit (= $20 variable costs and $400/10 in fixed costs), then the sales price should increase more than $60 in order to lower the company's losses.
If the company wants to make a profit, then it should increase its sales price by more than $180 per unit. If the radio is processed further, in order to break even its sales price should be $480 per unit.
sales price $480
revenue $4,800
variable costs -$1,400
fixed costs -$3,400
operating income $0
Any sales price above $480 will result in an operating profit.
Jan's Dry Cleaning holds $10,000 on a typical day, although only $2,000 is essential for carrying out business. Making a midday deposit is estimated to reduce cash holdings to $8,000 and cost an extra $80 per year in lost production. If, in addition, an armored car service is engaged to pick up cash more frequently for a fee of $120 per year, cash holdings will be further reduced to $6,000 per day. Employing a computerized cash management service for an annual fee of $180 would reduce cash holdings further to $4,000. If any reduction in cash holdings will be invested in government bonds earning 3 percent, then how much money should Jan's hold?
Answer: $6000
Explanation:
If holding is $10000,
Reduction in cash holding = (10000-10000) = 0
Interest earned in government bonds=(Reduction in holdings) × 0.03 =0
Cost of deposits = 0
Additional benefit = (interest earned - cost of deposit)
Additional benefit = 0-0 = 0
Making a mid day deposit;
Reduction in cash holding = (10000-8000) = $2000
Interest earned in government bonds = Reduction in holdings × 0.03
= 2000 × 0.03 =$60
Cost of deposits=$80
Additional benefit=$60-80=-$20
Using a armored car service;
Reduction in cash holding=(10000-6000)=4000
Interest earned in government bonds= 4000 × 0.03 = $120
Cost of deposits=$120
Additional benefit=120 - 120= $0
Using computerized cash management service;
Reduction in cash holding=(10000-4000)=6000
Interest earned in government bonds;
6000 × 0.03 = $180
Cost of deposits=$180
Additional benefit=180 - 180=$0
Additional benefit is maximized in case of both computerized management service and armor vehicle . So, Optimal cash holding is $6000
Harry Trading Company must choose its optimal capital structure. Currently, the firm has a 20 percent debt ratio and the firm expects to generate a dividend next year of $5.64 per share. Dividends are expected to remain at this level indefinitely. Stockholders currently require a 12.3 percent return on their investment. Harry is considering changing its capital structure if it would benefit shareholders. The firm estimates that if it increases the debt ratio to 30 percent, it will increase its expected dividend to $5.92 per share. Again, dividends are expected to remain at this new level indefinitely. However, because of the added risk, the required return demanded by stockholders will increase to 13.6 percent. Based on this information, should Harry make the change?
Answer:
They should not make the change because the price of the stocks will decrease.
Explanation:
the current price of the stocks using the perpetuity formula = dividend / required rate of return
current price with current capital structure = $5.64 / 0.123 = $45.85
if the company changes its capital structure by increasing debt, the price of the stocks will be
$5.92 / 0.136 = $43.53
since the price of the stocks would actually decrease if the capital structure changes, the change should not be made. The stockholders' wealth is measured by the price of the stocks, and if the price of the stocks decreases, then the stockholders' wealth also decreases.
Equipment with a book value of $80,000 and an original cost of $164,000 was sold at a loss of $34,000. Paid $103,000 cash for a new truck. Sold land costing $330,000 for $410,000 cash, yielding a gain of $80,000. Long-term investments in stock were sold for $94,200 cash, yielding a gain of $15,500. Use the above information to determine this company's cash flows from investing activities. (Amounts to be deducted should be indicated with a minus sign.)
Answer:
Cash flows from investing activities is $653,200.
Explanation:
XYZ Company
Statement of cash flows (extract)
Proceed from sale of equipment ($80,000 - $34,000) $46,000
Purchase of vehicle $103,000
Proceed from sale of land $410,000
Proceed from sale of long-term investments in stock $94,200
Cash flows from investing activities $653,200
Copies Plus Print operates a copy business at two different locations. Copies Plus Print has one support department that is responsible for cleaning, service, and maintenance of its copying equipment. The costs of the support department are allocated to each copy center on the basis of total copies made. During the first month, the costs of the support department were expected to be $200,000. Of this amount, $60,000 is considered a fixed cost. During the month, the support department incurred actual variable costs of $128,000 and actual fixed costs of $72,000. Normal and actual activity (copies made) are as follows: Copy Center 1 Copy Center 2 Normal activity (copies) 600,000 400,000 Actual activity (copies) 500,000 440,000 For purposes of performance evaluation, fixed costs allocated to Copy Center 2 are: a. $24,000 b. $28,800 c. $51,200 d. $60,000
Answer:
a. $24,000
Explanation:
60,000 fixed cost which, are allocated in the base of expected copies:
total expected copies: 600,000 + 400,000 = 1,000,000
Copy Center 2 represent 400,000 / 1,000,000 = 40% of the total copies volume for the period
Therefore from the 60,000 fixed cost the 40% was applied.
60,000 x 40 % = 24,000
For performance evaluation, the fixed costs allocated to Copy Center 2 amount to $24,000, calculated by applying the center's share of normal activity (40% of total copies) to the expected total fixed costs.
Allocating fixed costs to a copy center depends on the predetermined allocation rate based on expected activity levels. In this scenario, Copies Plus Print has one support department and the fixed costs are allocated based on the number of copies made. Hence, the fixed costs allocated to Copy Center 2 can be determined following these steps:
Calculate the proportion of copies made by each center out of the normal total.Apply this ratio to the total fixed costs to determine the allocation to each center.Fixed costs for the support department were expected to be $60,000 out of the total expected costs of $200,000.Normal activity for Copy Center 1 is 600,000 copies, and for Copy Center 2 is 400,000, making a total of 1,000,000 expected copies.Therefore, Copy Center 2, responsible for 40% of the total copies (400,000/1,000,000), would get 40% of the fixed costs.This amounts to $60,000 x 0.40, which equals $24,000.Therefore, for performance evaluation purposes, the fixed costs allocated to Copy Center 2 are $24,000.
The following selected information is from Princeton Company’s comparative balance sheets. At December 31 2017 2016 Common stock, $10 par value $ 131,000 $ 126,000 Paid-in capital in excess of par 593,000 355,000 Retained earnings 339,500 313,500 The company’s net income for the year ended December 31, 2017, was $61,000. 1. Complete the T-accounts to calculate the cash received from the sale of its common stock during 2017. 2. Complete the T-account to calculate the cash paid for dividends during 2017.
Answer:
Princeton Company
The T-accounts are attached.
Explanation:
They can also be obtained as follows:
1. T-accounts to calculate the Cash received from the sale of its common stock during 2017:
Common Stock & APIC
Closing balance of common stock = $131,000
Closing balance of APIC = $593,000
less Opening balance of common stock = $126,000
less Opening balance of APIC = $355,000
Cash collected = $243,000
2. T-account to calculate the cash paid for dividends during 2017:
Retained Earnings:
Opening balance = $313,500
Add net income = $61,000
Less closing balance = $339,500
Cash Dividends paid = $35,000
Kim will only buy cars from Japanese automakers because she thinks cars made in the United States are of inferior quality. She has this belief even though she has never studied the ratings of cars made in the United States. What type of communication barrier does this represent?
Answer:
Perception barrier
Explanation:
Perception barrier in communication occurs when the preconceived idea that a person holds about a particular situation influences his choice of decision.
In such a situation , the perceiver makes a less effort in arriving at a choice as he already has a formed opinion as a driver of his choice which can always lead to a wrong choice except in a few cases.
This explains Kim's action as she is already biased about cars from United states.
The following selected transactions were completed by Interlocking Devices Co., a supplier of zippers for clothing: 2017 Dec. 7. Received from Unitarian Clothing & Bags Co., on account, a $75,000, 60-day, 3% note dated December 7. 31. Recorded an adjusting entry for accrued interest on the note of December 7. 31. Recorded the closing entry for interest revenue. 2018 Feb. 5. Received payment of note and interest from Unitarian Clothing & Bags Co. Journalize the entries to record the transactions. If an amount box does not require an entry, leave it blank. Assume 360 days in a year.
Answer:
The journal entry to record receiving the note would be:
December 7, 2017, promissory note received from Unitarian Clothing & Bags Co.
Dr Notes receivable 75,000
Cr Accounts receivable 75,000
Adjusting entry to record accrued interest:
December 31, 2017, accrued interest from notes receivable
Dr Interest receivable ($75,000 x 3% x 24/360 days) 150
Cr Interest revenue 150
December 31, 2017, closing entry for interest revenue
Dr Interest revenue 150
Cr income summary 150
The entry to record the collection of the note receivable:
Dr Cash ($75,000 + $75,000 x 3% x 60/360) 75,375
Cr Notes receivable 75,000
Cr Interest receivable 150
Cr Interest revenue 225
The transactions between Interlocking Devices Co. and Unitarian Clothing & Bags Co. involved receiving a note, recording accrued interest, closing entries for revenue, and receiving payment for the note with interest. These transactions were journalized with the relevant debit and credit entries to corresponding accounts.
Explanation:The transactions involving Interlocking Devices Co. and Unitarian Clothing & Bags Co. can be journalized as follows:
2017 Dec 7: Debit: Accounts Receivable - $75,000 Credit: Sales - $75,000 (Upon receiving the note) 2017 Dec 31: Debit: Interest Receivable - $250 Credit: Interest Revenue - $250 (To record accrued interest, calculated as [$75,000 * 3% * 24 days] / 360) 2017 Dec 31: Debit: Retained Earnings - $250 Credit: Interest Revenue - $250 (Closing entry to transfer Revenue to Retained Earnings) 2018 Feb 5: Debit: Cash - $75,750 Credit: Accounts Receivable - $75,000 Credit: Interest Receivable - $250 Credit: Interest Revenue - $500 (Receive payment for both the note and the interest, where the remaining interest is calculated as [$75,000 * 3% * 36 days] / 360) Learn more about Accounting Transactions here:https://brainly.com/question/34190871
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On July 31, 2022, Sunland Company had a cash balance per books of $6,275.00. The statement from Dakota State Bank on that date showed a balance of $7,825.80. A comparison of the bank statement with the Cash account revealed the following facts.
1. The bank service charge for July was $17.00.
2. The bank collected $1,655.00 from a customer for Sunland Company through electronic funds transfer.
3. The July 31 receipts of $1,336.30 were not included in the bank deposits for July. These receipts were deposited by the company in a night deposit vault on July 31.
4. Company check No. 2480 issued to L. Taylor, a creditor, for $384.00 that cleared the bank in July was incorrectly entered in the cash payments journal on July 10 for $348.00.
5. Checks outstanding on July 31 totaled $1,995.10.
6. On July 31, the bank statement showed an NSF charge of $710.00 for a check received by the company from W. Krueger, a customer, on account.
Prepare the bank reconciliation as of July 31. (List items that increase balance as per bank & books first.)
SUNLAND COMPANY
Bank Reconciliation
choose the accounting period For the Year Ended July 31, 2022July 31, 2022For the Month Ended July 31, 2022
select an opening name for section one Deposits in transitElectronic funds transfer receivedBank service chargeCash balance per bank statementOutstanding checksError in recording check No. 2480NSF checkAdjusted cash balance per bank
$enter a dollar amount
select between addition and deduction AddLess:
select a reconciling item Error in recording check No. 2480Cash balance per bank statementAdjusted cash balance per bankBank service chargeDeposits in transitOutstanding checksElectronic funds transfer receivedNSF check
enter a dollar amount
enter a subtotal of the two previous amounts
select between addition and deduction AddLess:
select a reconciling item NSF checkError in recording check No. 2480Deposits in transitCash balance per bank statementElectronic funds transfer receivedOutstanding checksBank service chargeAdjusted cash balance per bank
enter a dollar amount
select a closing name for section one Outstanding checksCash balance per bank statementBank service chargeNSF checkElectronic funds transfer receivedDeposits in transitAdjusted cash balance per bankError in recording check No. 2480
$enter a total amount for the first section
select an opening name for section two Deposits in transitBank service chargeError in recording check No. 2480NSF checkAdjusted cash balance per booksCash balance per booksElectronic funds transfer receivedOutstanding checks
$enter a dollar amount
select between addition and deduction AddLess:
select a reconciling item Cash balance per booksOutstanding checksError in recording check No. 2480Deposits in transitAdjusted cash balance per booksElectronic funds transfer receivedBank service chargeNSF check
enter a dollar amount
enter a subtotal of the two previous amounts
select between addition and deduction AddLess:
select a reconciling item Adjusted cash balance per booksElectronic funds transfer receivedNSF checkError in recording check No. 2480Deposits in transitCash balance per booksOutstanding checksBank service charge
$enter a dollar amount
select a reconciling item Deposits in transitError in recording check No. 2480Adjusted cash balance per booksOutstanding checksNSF checkElectronic funds transfer receivedBank service chargeCash balance per books
enter a dollar amount
select a reconciling item NSF checkBank service chargeElectronic funds transfer receivedCash balance per booksError in recording check No. 2480Deposits in transitAdjusted cash balance per booksOutstanding checks
enter a dollar amount
enter a subtotal of the three previous amounts
select a closing name for section two Deposits in transitAdjusted cash balance per booksElectronic funds transfer receivedOutstanding checksError in recording check No. 2480NSF checkCash balance per booksBank service charge
$enter a total amount for the second section
Answer:
CASH
Balance 6275
Service Charge -17
mistake -36
NSF -710
collection 1655
Adjusted Balance 7167.00
BANK
Balance 7825.8
Outstanding Check - 1995.1
Deposit in transit 1336.3
Adjusted Balance 7167.000
Explanation:
We adjust each statement for the unknow information
For the bank these are the outstanding check as the bank only see the checks when the holder goes to cleared and the deposit in transit.
Now, for the company will be the service cash, the collected account in their behalf pretty straight-forward.
Next, the NSF means the company accept this check as a way to settle and account but it wasn't honor It bounce making the cash in the accounting to decrease the check conversion for cash wasn't possible
Finally, the mistake we remove the mistkae by adding the 348 to cash and then, removing the 384 actual check value in both cases against, account payable as we deliver it to a supplier.
2. A company has been successful in reducing the amount of sales returns and allowances. At the same time, a credit card company reduced the credit card discount from 3% to 2%. What effect will these changes have on the company's net sales, all other things equal? a. Net sales will not change. b. Net sales will increase. c. Net sales will decrease. d. Either (b) or (c).
Answer:
B) Net sales will increase.
Explanation:
Net sales = total sales - sales returns and allowances
If the percentage of sales returns and allowances is reduced, then total net sales should increase. E.g. total sales are $100, sales returns and allowances are $4, then net sales = $96. If sales returns and allowances decreases to $2, then net sales will be $98.
Also, if the fee that credit cards charge decreases by 1%, net sales will also increase. Credit card fees decrease total sales, e.g. you sell $50 using credit card and the credit card company charges you $1.50, your total sales will be $48.50, but if the credit card company only charges $1, then total sales will be $49.
Marciano Manufacturing uses a standard cost system. Standards for direct materials are as follows: Direct materials (pounds per unit of output) 3 Cost per pound of direct materials $ 6 The company plans to produce 2 comma 000 units and has purchased on account 12 comma 000 pounds of direct materials at a net cost of $ 43 comma 800. What is the journal entry to record this transaction?
Answer:
Debit Raw Materials Inventory with $72,000; Credit Direct materials Cost Variance with 28,200, and Credit Accounts Payable with $43,800.
Explanation:
Direct materials purchase on account = $43,800
Standard cost of direct materials = 12,000 * $6 = $72,000
Direct materials cost variance = $72,000 - $43,800 = $28,200
The journal entries will therefore be as follows:
Details Dr ($) Cr ($)
Raw Materials Inventory 72,000
Direct materials Cost Variance 28,200
Accounts Payable 43,800
To record direct materials cost and variance.
"Why do transportation costs initially decrease as the number of warehouses in a system increases? Why do transportation costs eventually increase as the number of warehouses increase? Why do inventory costs increase as the number of warehouses in a system increases? "
Answer:
In simple words, The general explanation is that efficiency gains do exist. Which lowers the cost of transport. In addition, as products are delivered to the facilities, one boat load will support more just one storage facility, lowering the expense of transport. In addition, as products are delivered to the facilities, one boatload will support rather than one supermarket, lowering the cost of transport.
Maben Company was started on January 1, Year 1, and experienced the following events during its first year of operation:
1. Acquired $35,000 cash from the issue of common stock.
2. Borrowed $47,000 cash from National Bank.
3. Earned cash revenues of $63,000 for performing services.
4. Paid cash expenses of $52,500.
5. Paid a $2,500 cash dividend to the stockholders.
6. Acquired an additional $35,000 cash from the issue of common stock.
7. Paid $12,000 cash to reduce the principal balance of the banknote.
8. Paid $46,000 cash to purchase land.
9. Determined that the market value of the land is $64,000.
Required:
Show the effects of the events on the financial statements using a horizontal financial statements model. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, and NC for net change in cash. (Enter any decreases to account balances with a minus sign. Not all cells in the "Statement of Cash Flows" column may require an input - leave cells blank if there is no corresponding input needed.)
Answer: kindly check attached picture
Explanation:
Kindly view the attached picture for complete financial statement.
Final answer:
The effects of Maben Company's first-year transactions include various cash inflows and outflows categorized under operating, investing, and financing activities, leading to a net cash increase of $67,000 by the end of the year.
Explanation:
Effects of Maben Company's Events on Financial Statements
The following horizontal financial statements model showcases the effects of Maben Company’s transactions:
Acquired $35,000 cash from the issue of common stock. (FA)
Borrowed $47,000 cash from National Bank. (FA)
Earned cash revenues of $63,000 for performing services. (OA)
Paid cash expenses of $52,500. (OA)
Paid a $2,500 cash dividend to the stockholders. (FA)
Acquired an additional $35,000 cash from the issue of common stock. (FA)
Paid $12,000 cash to reduce the banknote. (FA)
Paid $46,000 cash to purchase land. (IA)
Determined that the market value of the land is $64,000. (No cash flow effect)
Now let’s translate those events into the financial statement effects:
Net Increase in Cash: = ($35,000 FA + $47,000 FA + $63,000 OA - $52,500 OA - $2,500 FA + $35,000 FA - $12,000 FA - $46,000 IA) = $67,000
Cash and cash equivalents - beginning of year = $0 (since the company started)
Cash and cash equivalents - end of year = $67,000
This model uses the cash flow designations OA, IA, and FA to reflect operating, investing, and financing activities, respectively. Balance sheet accounts like cash and cash equivalents and liabilities, specifically the banknote, have been affected by these transactions.
Vaughn Manufacturing received cash of $63600 on August 1, 2017 for one year's rent in advance and recorded the transaction with a credit to Rent Revenue. The December 31, 2017 adjusting entry is:
A. debit Cash and credit Unearned Rent Revenue, $37100.
B. debit Unearned Rent Revenue and credit Rent Revenue, $26500.
C. debit Rent Revenue and credit Unearned Rent Revenue, $26500.
D. debit Rent Revenue and credit Unearned Rent Revenue, $37100.
Answer:
C. debit Rent Revenue and credit Unearned Rent Revenue, $26500.
Explanation:
The adjusting entry is shown below:
Rent revenue
To Unearned rent revenue
(Being the unearned rent revenue is recorded)
For recording this we debited the rent revenue as it reduced the sales and credited the unearned rent revenue as it increased the liability
Since the cash is received on August 1 and we need to record the adjusting entry on December 31,2017 so we considered the 5 months instead of taking 12 months i.e
= $63,600 × 5 months ÷ 12 months
= $26,500
2020 2019 Cash $1,800 $1,150 Receivables 1,750 1,300 Inventory 1,600 1,900 Plant assets 1,900 1,700 Accumulated depreciation (1,200 ) (1,170 ) Long-term investments (held-to-maturity) 1,300 1,420 $7,150 $6,300 Accounts payable $1,200 $900 Accrued liabilities 200 250 Bonds payable 1,400 1,550 Common stock 1,900 1,700 Retained earnings 2,450 1,900 $7,150 $6,300 PAT METHENY COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2020 Sales revenue $6,900 Cost of goods sold 4,700 Gross margin 2,200 Selling and administrative expenses 930 Income from operations 1,270 Other revenues and gains Gain on sale of investments 80 Income before tax 1,350 Income tax expense 540 Net income 810 Cash dividends 260 Income retained in business $550
Prepare a statement of cash flows using the direct method.
Answer and Explanation:
The presentation of the cash flow statement using the direct method is shown below:
Pat Methney Company
Statement of cash flow
For year ended Dec-31,2020
Cash flow from operating activities :
Cash collection from customers($1,300+$6,900-$1,750) $6,450
Less: Cash paid for merchandise($1,600+$4,700+$900-$1,900-$1200) $4,100
Cash paid for selling($250+$930-$30-$200) $950
Cash paid for income taxes $540 $5,590
Net cash provided by operating activities($6,450-$5,590) $860
Cash flow from investing activities :
Sale of held-to-maturity investments ($1420-$1300+$80) $200
Less: Purchase of plant assets ($1,900-$1,700-$70) $130
Net cash provided $70
Cash flow from financing activities :
Issuance of capital stock($1,900-$1700-$70) $130
Less: Retirements of bonds payable $150
Less: Payment of cash dividend $260
Net cash used by financing activities $280
Net increase in cash $650
Add Cash as on Jan-1,2020 $1,150
Cash as on Dec-31,2020 $1,800
Non-cash investing and financing activities :
Issuance of common stock for plant assets $70
Suppose the price of salt increases by 25 percent and, as a result, the quantity of pepper demanded (holding the price of pepper constant) increases by 4 percent. The cross-price elasticity of demand between salt and pepper is nothing. (Enter your response rounded to two decimal places and include a minus sign if appropriate.) In this example, salt and pepper are ▼ substitutes not related complements . Instead, suppose salt and pepper were complements. If so, then the cross-price elasticity of demand between salt and pepper would be A. negative. B. zero. C. positive. D. greater than 1. E. greater than minus1.
Answer:
Option (C)
Explanation:
As per the data given in the question,
Price of salt increases by = 25%
Quantity of pepper demanded increases by = 4%
Cross price elasticity = Quantity of demand increases ÷ Price of salt increases
= 4% ÷ 25%
=0.16
Hence Cross-price elasticity of demand between salt and pepper would be positive.
So option (C) is answer
The cross-price elasticity of demand between salt and pepper determines whether they are substitutes or complements. If the cross-price elasticity is zero, they are substitutes. If it is negative, they are complements.
Explanation:In this scenario, the cross-price elasticity of demand between salt and pepper is zero, indicating that they are not related complements. If salt and pepper were complements, the cross-price elasticity of demand between them would be negative. This means that as the price of one product increases, the quantity demanded of the other product would decrease.
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An investment firm recommends that a client invest in bonds rated AAA, A, and B. The average yield on AAA bonds is 4%, on A bonds 5%, and on B bonds 8%. The client wants to invest twice as much in AAA bonds as in B bonds. How much should be invested in each type of bond under the following conditions? A. The total investment is $28 comma 000, and the investor wants an annual return of $1 comma 460 on the three investments. B. The values in part A are changed to $38 comma 000 and $1 comma 990, respectively.
Answer:
let A = AAA bonds that yield 4%
let a = A bonds that yield 5%
let B = B bonds that yield 8%
A = 2B
A)
A + a + B = 28,000 (replace A with 2B)
0.04A + 0.05a + 0.08B = 1,460 (replace A with 2B)
2B + a + B = a + 3B = 28,000 ⇒ a = 28,000 - 3B
0.08B + 0.05a + 0.08B = 0.05a + 0.16B = 1,460 (replace a with 28,000 - 3B)
0.05(28,000 - 3B) + 0.16B = 1,400 - 0.15B + 0.16B =1,460
1,400 + 0.01B = 1,460
0.01B = 1,460 - 1,400 = 60
B = 60 / 0.01 = $6,000
A = $12,000
a = $28,000 - $6,000 - $12,000 = $10,000
AAA bonds = $12,000
A bonds = $10,000
B bonds = $6,000
B)
A + a + B = 38,000 (replace A with 2B)
0.04A + 0.05a + 0.08B = 1,990 (replace A with 2B)
2B + a + B = a + 3B = 38,000 ⇒ a = 38,000 - 3B
0.08B + 0.05a + 0.08B = 0.05a + 0.16B = 1,990 (replace a with 28,000 - 3B)
0.05(38,000 - 3B) + 0.16B = 1,900 - 0.15B + 0.16B =1,990
1,900 + 0.01B = 1,990
0.01B = 1,990 - 1,900 = 90
B = 90 / 0.01 = $9,000
A = $18,000
a = $38,000 - $9,000 - $18,000 = $11,000
AAA bonds = $18,000
A bonds = $11,000
B bonds = $9,000
World Company expects to operate at 80% of its productive capacity of 66,250 units per month. At this planned level, the company expects to use 26,500 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.500 direct labor hours per unit. At the 80% capacity level, the total budgeted cost includes $53,000 fixed overhead cost and $331,250 variable overhead cost. In the current month, the company incurred $389,000 actual overhead and 23,500 actual labor hours while producing 50,000 units. (1) Compute the overhead volume variance. (2) Compute the overhead controllable variance.
Answer:
Overhead volume variance = $3,000 Unfavorable
Overhead controllable variance = $26,500 unfavorable
Explanation:
As per the data given in the question,
a)
Number of units produced = 80% × 66,250
= 53,000 units
Standard = 26,500 hours ÷ 53,000 units
= 0.5 direct labor hour per unit
Particulars a b Direct labor hour(a ÷ b)
Variable overhead rate $331,250 26,500 $12.5 per hour
Fixed overhead rate $53,000 26,500 $2 per hour
Total overhead rate $384,250 $15 per hour
The standard hours to produce 50,000 units = 25,000 (50,000 units × 0.50 hours per unit.)
Applied fixed overhead = $2 × 25,000
= $50,000
Overhead fixed volume variance is
= $53,000 - $50,000
= 3,000 unfavorable
Now
b) Standard hour = 50,000 units × 0.5 direct labor hour per unit
= 25,000
Overhead rate(a) Standard hours(b) Applied overhead(a × b) Actual variance
Variable overhead $12.5 25,000 $312,500
Fixed overhead $2 25,000 $50,000
Total overhead $14.5 25,000 $362,500 $389,000
= $362,500 - $389,000
$26,500 unfavorable
If the actual cost is more than the standard one than the variance should be unfavorable and If the actual cost is less than the standard one than the variance should be favorable
Acme Enterprises began the new year owing its suppliers $3,000 for merchandise purchased last year. Acme then sold half of this merchandise for $5,000 on account. Two weeks later, Acme paid its suppliers $1,000 and bought another $4,000 of merchandise on account. Acme now has an Accounts payable balance of ______. $4,500 $5,500 $11,000 $6,000 $1,000
Answer:
Acme's current balance of accounts payable is $6000
Explanation:
The closing balance of accounts payable can be calculated using the opening balance and adjusting the changes during the period to the opening balance.
The closing balance can thus be calculated as:
Closing balance = Opening balance + Credit purchases - Payment to Accounts payable
Closing balance = 3000 + 4000 - 1000
Closing balance = $6000
Windsor Locomotive Corporation purchased for $550,000 a 40% interest in Lopez Railways, Inc. This investment enables Windsor Locomotive to exert significant influence over Lopez Railways. During the year, Lopez Railways earned net income of $149,000 and paid dividends of $27,000. Prepare Windsor Locomotive’s journal entries related to this investment.
Answer:
Journal Entries
Dr. Investment in Lopez Railways Inc. $600,000
Cr. Cash $600,000
Dr. Investment in Lopez Railways Inc $59,600
Cr. Income of Investment in Lopez Railways Inc $59,600
Dr. Cash $10,800
Cr. Investment in Lopez Railways Inc $10,800
Explanation:
As Windsor Locomotive Corporation has purchased 40% interest in Lopez Railway Inc.Lopez Inc. is classified as the associate company of Windsor Corp.
Share in net Income = $149,000 x 40% = $59,600
Share In Dividend = $27,000 x 40% = $10,800
nder the general transfer pricing rule with excess capacity, the opportunity cost would be equal: Multiple Choice zero. the direct expenses incurred in producing the goods. the total difference in the cost of production between two divisions. the contribution margin forgone from the lost external sale. the summation of variable cost plus fixed cost.
Answer:
ZERO.
Explanation:
A transfer price normally is used to determine the cost to charge another division, subsidiary, or holding company for services rendered. It is said that transfer prices are priced based on the going market price for that good or service. Transfer pricing can also be applied to intellectual property such as research, patents, and royalties.
However, companies at times can also use (or misuse) this practice by altering their taxable income, thus reducing their overall taxes. The transfer pricing mechanism is a way that companies can shift tax liabilities to low-cost tax jurisdictions.
Answer:
zero
Explanation:
When there is an excess capacity available, the opportunity cost will be zero, company can use this capacity to make the potential benefit from an alternative. Transfer pricing is the price charged to a subsidiary division of a company. This price can also be charged by the subsidiary to the parent company. Some companies use this to manage the tax matters. It may also applicable to the transfer of assets of the companies.
Markland First National Bank of Rolla utilizes Kanban techniques in its check processing facility. The fol-lowing information is known about the process. Each Kanban container can hold 50 checks and spends 24 minutes a day in processing and 2 hours a day in materials handling and waiting. Finally, the facility operates 24 hours per day and utilizes a policy variable for unforeseen contingencies of 0.25.
If there are 23 kanban containers in use the current daily demand of the check processing facility is ______ units
The current daily demand of the check processing facility using Kanban techniques is 22,750 units.
Explanation:The current daily demand of the check processing facility, operating on Kanban techniques, can be calculated using the formula: Kanban Quantity = Demand x Lead Time x (1 + Policy Variable). In this case:
The Demand is the number of units that need to be processed daily.The Lead Time is the amount of time a Kanban container spends in processing and materials handling (24 minutes for processing + 120 minutes for handling = 144 minutes in total).The Policy Variable is an additional amount of time added for unforeseen contingencies, which is 0.25 in this case.Given that there are 23 Kanban containers in use and each kanban container can hold 50 checks, it suggests that the facility can process 1,150 checks (23 kanbans * 50 checks) during the sum of the processing and waiting time (144 minutes) in a day. Therefore, considering the facility operates 24 hours, the current daily demand would be (1,150 checks * (24*60 minutes/144 minutes) * (1+0.25)) = 22,750 units.
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Which description identifies the controlling function of the management process? Group of answer choices monitoring a firm's performance to ensure that it is meeting its goals scanning the business environment for threats and opportunities guiding and motivating employees to meet organizational objectives determining how to arrange a firm's resources into a coherent structure determining what an organization needs to do and how best to get it done
Answer:
Monitoring a firm's performance to ensure that it is meeting its goals
Explanation:
The controlling function refers to evaluating the progress the company has to make sure that it wil be able to achieve its goals and determining actions to be taken when there are deviations. According to this, the answer is that the description that identifies the controlling function of the management process is monitoring a firm's performance to ensure that it is meeting its goals.
The other options are not right because guiding and motivating employees to meet organizational objectives refers to the leading function, determining how to arrange a firm's resources into a coherent structure refers to the organizing function and determining what an organization needs to do and how best to get it done refers to the planning function. Also, scanning the business environment for threats and opportunities refers to environmental scanning.
Statement that explains controlling function of the management process as regards this question A: monitoring a firm's performance to ensure that it is meeting its goals.
Controlling function of management can be regarded as function of management that measure the progress of the organization towards her goals.It also brings in corrective action incase there is any deviation from pursuing the set goals. It takes charge if the control of the organization goals.Therefore, option A is correct.
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It is January 2nd. Senior management of Digby meets to determine their investment plan for the year. The current long-term debt is equal to $33,862,062. They decide to fully fund a plant and equipment purchase by issuing 50,000 shares of stock plus a new bond issue. The CFO happily notes this will raise their Leverage (Assets/Equity) to a new target of 2.45. Assume the stock can be issued at yesterday's stock price $20.54.
Which of the following statements are true? (Select 2 answers)
A) Total investment for Digby will be $2,518,806
B) Total Assets will rise to $140,042,395
C) Digby bond issue will be $48,116
D) Long term debt will increase from $33,862,062 to $34,888,934
E) Digby will issue stock totaling $1,026,872
F) Digby working capital will be unchanged at $14,847,979
Answer:
E, F
Explanation:
1) The working capital remain unchanged as new stock issue and the the share issues are purposely to fund the purchase of plant and equipment. Please note that the components of working capital which are cash , inventory , receivable and payable are not affected by this.
2)The total share stock issued issued is close to 1,026,872. (50000*20.54)
Answer:
A) Total investment for Digby will be $2,518,806
D) Long term debt will increase from $33,862,062 to $34,888,934
Explanation:
The current Long-term debt is $33,862,062
Digby issues new shares of 50,000 with stock price $20.54.
50,000 shares * $20.45 = $1,027,000
Assets of Digby will rise by,
Assets / Equity = 2.45
Assets / $1,027,000 = 2.45
Assets = 2.45 * $1,027,000
Assets = $2,516,150