Answer:
$2,250 debit to Rent Expense in a journal entry is incorrectly posted to the ledger as a $2,250 credit, leaving the Rent Expense account with a $3,000 debit balance
Explanation:
Answer:
is the repondet the
F.) An entry debiting cash and crediting accounts payable for $12,500 was mistakenly not posted
Wat is accounting in economics
Answer:
Accounting and economics both involve plenty of number-crunching. But accounting is a profession devoted to recording, analyzing, and reporting income and expenses, while economics is a branch of the social sciences that is concerned with the production, consumption, and transfer of resources.
I hope it's helpful!
The ACME manufacturing company is weighing its options to source Component X. Supplier A would cost $3000 per order plus $2.50 for each unit ordered. If ACME buys component X from Supplier B, it would cost $6.00 per unit. ACME also has the option to buy X from Supplier C that charges $5.00 per unit, but requires buyers to pay for a minimum of 400 units (even if they require less than 400). Shipping costs are the same for all suppliers. Select all true statements about sourcing Component X.
Question Completion:
Since the options are not provided, it is assumed that ACME requires 2,000 units of Component X monthly. Which supplier should the company choose?
Answer:
ACME Manufacturing Company
The supplier that should be chosen is:
Supplier A.
Explanation:
a) Data and Calculations:
Quantity of component X required monthly = 2,000 units
Cost of buying from supplier A = $3,000 + ($2.50 * 2,000) = $8,000
Cost of buying from supplier B = $6 * 2,000 = $12,000
Cost of buying from supplier C = $5 * 2,000 = $10,000
b) This cost decision depends on the quantity of component X required by ACME manufacturing. If the quantity were to be less than or equal to 1,100 units, another supplier other than supplier A might be preferred. Again, if there are other considerations apart from cost, supplier A might not be chosen. The implication is that the choice of a supplier for a component depend on many factors.
On 12/31/2020, Heaton Industries Inc. reported retained earnings of $675,000 on its balance sheet, and it reported that it had $172,500 of net income during the year. On its previous balance sheet, at 12/31/2019, the company had reported $555,000 of retained earnings. No shares were repurchased during 2020. How much in dividends did Heaton pay during 2020?
a. $47,381
b. $49,875
c. $57,881
d. $55,125
e. $52,500
Answer:
e. $52,500
Explanation:
Beginning balance of retained earnings= $555,000
Net earning for the period=$172,500
Closing retained earnings balance for the period: $675,000
Closing retained earning =Beginning balance + net earnings - dividend
$675000 = $555,000 +$172,500- Dividends
$675000 = $727,500 - Dividends
Dividends = $727,500 - $675,000
Dividends =$52,500
what is the major difference between corporations and other kinds businesses?
Answer:
A corporation is a separate entity apart from that of the owners. A corporation is not responsible for its debts if it fails. A corporation is much larger than other kinds of businesses.
Explanation:
A corporation has a separate legal entity apart from that of the owners and workers.
The present value of a zero-interest-bearing note given for property, goods, or services should be measured by A : using the prime interest rate to discount the note. B : the book value of the property on the seller's books the interest rate on similar notes being offered in the market place for similar property, goods, or services. C : the fair value of the property, goods, or services or by an amount that reasonably approximates the fair value of the note. D : using a negotiated interest rate between the issuer of the note and the owner of the property, goods, or services to discount the note.
CULLUMBER COMPANY
Trial Balance
June 30, 2017
Debit Credit
Cash $ 5,240
Accounts Receivable $ 5,340
Supplies 2,150
Equipment 5,150
Accounts Payable 5,836
Unearned Service Revenue 2,550
Common Stock 11,150
Dividends 800
Service Revenue 5,630
Salaries and Wages Expense 3,530
Utilities Expense 945 $20,465 $27,856
Each of the listed accounts has a normal balance per the general ledger. An examination of the ledger and journal reveals the following errors:______.
1. Cash received from a customer on account was debited for $760, and Accounts Receivable was credited for the same amount. The actual collection was for $706.
2. The purchase of a printer on account for $340 was recorded as a debit to Supplies for $340 and a credit to Accounts Payable for $340.
3. Services were performed on account for a client for $900. Accounts Receivable was debited for $90 and Service Revenue was credited for $900.
4. A debit posting to Salaries and Wages Expense of $735 was omitted.
5. A payment on account for $206 was credited to Cash for $206 and credited to Accounts Payable for $260.
6. Payment of a $600 cash dividend to Cullumber Company's stockholders was debited to Salaries and Wages Expense for $600 and credited to Cash for $600.
Prepare a correct trial balance.
CULVER CO.
TRIAL BALANCE
JUNE 30, 2017
Debit Credit
Cash
Accounts Receivable
Supplies
Equipment
Accounts Payable
Unearned Service Revenue
Common Stock
Retained Earnings
Service Revenue
Salaries and Wages Expense
Office Expense
Dividends
Totals
Answer:
Realidades 2 WKBK page 109
Explanation:
Realidades 2 WKBK page 109
The president of State University wants to forecast student enrollments for this academic year based on the following historical data: Year Enrollments 5 Years ago 15,000 4 Years ago 16,000 3 Years ago 18,000 2 Years ago 20,000 Last Year 21,000 What is the forecast for this year using trend-adjusted (double) smoothing with alpha
Answer:
19,500
Explanation:
Calculation for the Forecast for this year
First step is to calculate the Forecast for last year
Forecast for last year= [(1 - 0.5 ) × 16,000 ) + ( 0.5 × 20,000)]
Forecast for last year= [(0.5 × 16,000 ) + ( 0.5 × 20,000)]
Forecast for last year= 8,000 + 10,000
Forecast for last year= 18,000
Now let calculate the Forecast for this year
Forecast for this year= [(1 - 0.5 ) × 18, 000 ) + ( 0.5 × 21,000)]
Forecast for this year= [(0.5 × 18, 000 ) + ( 0.5 × 21,000)]
Forecast for this year= 9,000 + 10,500
Forecast for this year= 19,500
Therefore the Forecast for this year will be 19,500
In order for the economy to be strong, individuals must
a. produce goods and pay workers
b. provide labor and pay
workers
C.
produce goods and buy goods
d. provide labor and buy goods
Answer:
B
Explanation:
I took the test
On January 1, 2021, Sans Serif Publishers leased printing equipment from First LeaseCorp. First LeaseCorp purchased the equipment from CompuDec Corporation at a cost of $479,079. The lease agreement specifies six annual payments of $100,000 beginning January 1, 2021, the beginning of the lease, and at each December 31 from 2021 through 2025. The six-year lease term ending December 31, 2026, is equal to the estimated useful life of the equipment. First LeaseCorp routinely acquires electronic equipment to lease to other firms. The interest rate in these financing arrangements is 10%. 1) How should this lease be classified
Answer:
The lease should be classified as a Finance or Capital Lease.
Explanation:
For Sans Serif to recognize a lease arrangement as a Capital Lease, the lease term will take up a significant part of the asset’s useful economic life, among other conditions. In this case, the economic life of the asset is six years, and the lease term lasts six years. This lease cannot be classified as an operating lease, with the lease payments treated as an expense instead of as a repayment of a liability for a recognized asset.
One year ago, Deltona Motor Parts deposited $17,500 in an investment account for the purpose of buying new equipment three years from today. Today, it is adding another $21,000 to this account. The company plans on making a final deposit of $13,000 to the account one year from today. How much will be available when it is ready to buy the equipment, assuming the account pays 5.5 interest
Answer:
$58,445.13
Explanation:
Calculation for How much will be available when it is ready to buy the equipment, assuming the account pays 5.5 interest
Using this formula
FV= PV*(1+i)^n
Let plug in the formula
First deposit= 17,500*(1.055^4)
First deposit= $19,316.73
Second deposit=21 ,000*(1.055^3)
Second deposit= $24,659.07
Third deposit= 13,000*(1.055^2)=
Third deposit=$14,469.33
Total= $58,445.13
Therefore How much will be available when it is ready to buy the equipment, assuming the account pays 5.5 interest is $58,445.13
The ACE Equity Fund has an expected return E[r] of 11.830% and the ZQR Bond Fund has an expected return E[r] of 6.690%. A portfolio comprised of 3% ACE and 97% ZQR would have an expected return of __________%. (percent, rounded three places after decimal)
Answer:
The answer is "6.8442%".
Explanation:
The expected portfolio return is the total average portfolio return for all stocks
ACE fund weight (wA) =3%
ACE fund (ErA) expected return= 11.830%
Bond fund ZQR weight (wB) = 97%.
The ACE fund (ErB) expected return = 6.690%
Expected portfolio return = [tex](wA \times ErA)+(wB \times ErB)[/tex]
[tex]=(3\% \times 11.830 \% )+(97 \% \times 6.690\%)\\\\= 0.03 \times 0.1183 +0.97 \times 0.0669 \\\\=0.003549+ 0.064893\\\\=0.068442\\\\=6.8442 \%[/tex]
Skysong, Inc.'s net income for the current year was $394000. Depreciation was $51000. Accounts receivable and inventories decreased by $16000 and $26000, respectively. Prepaid expenses and salaries payable increased, respectively, by $2000 and $13000. Equipment was sold at a gain of $7400. How much cash was provided by operating activities
Answer:
Skysong, Inc.
Cash provided by operating activities =
$502,000
Explanation:
a) Data and Calculations:
Net income = $394,000
Depreciation 51,000
operating cash $445,000
Net working capital:
Accounts receivable $16,000
Inventory 26,000
Prepaid expenses 2,000
Salaries payable 13,000 57,000
Net cash from operating $502,000
b) The operating activities section of Skysong's cash flows statement depicts the ability of the company to generate cash from its main business activities. The net cash from operating activities is determined by adjusting its net income with non-cash flows (e.g. depreciation expenses) and working capital changes. A decrease in the current assets represents a source of operating cash, just as an increase in the current liabilities also represents a source of operating cash.
Your company manufactures and sells a variety of personal care products such as hair dryers and curling irons. Every hair dryer is properly labeled and contains safety precautions against misuse. Patrick purchases an SF9000 hair dryer from your company website. After a month of use where the hair dryer functions properly, Patrick accidentally drops it in water causing him an electric shock. Patrick sues your company for breach of the implied warranty of merchantability. Discuss whether the implied warranty of merchantability exists for this product and whether it has been violated in this situation.
Answer:
Product Implied Warranty
According to the Uniform Commercial Code, a product warranty guarantees that a product will work when used for its intended purposes. There are two key types of implied warranties: merchantability and fitness. The implied warranty of merchantability states that a product will meet reasonable expectations of the buyer. The implied warranty of fitness means that the product will meet the buyer's intended use.
Based on the above, we can conclude that the implied warranty of merchantability actually exists for the hair dryer. However, Patrick clearly violated it in this situation through the accident of dropping it in water.
Having thus violated the warranty, he cannot reasonably recover any damages from the company.
Explanation:
a) Facts of the case:
1. Every hair dryer is properly labeled and contains safety precautions against misuse.
2. The SF9000 hair dryer that Patrick purchased functioned properly for a month.
3. Patrick accidentally drops the hair dryer in water, causing him an electric shock.
4. Patrick sues for breach of the implied warranty of merchantability.
Way Cool produces two different models of air conditioners. The company produces the mechanical systems in its components department. The mechanical systems are combined with the housing assembly in its finishing department. The activities, costs, and drivers associated with these two manufacturing processes and the production support process follow. Process Activity Overhead Cost Driver Quantity Components Changeover $ 627,450 Number of batches 890 Machining 379,155 Machine hours 8,050 Setups 108,000 Number of setups 60 $ 1,114,605 Finishing Welding $ 220,580 Welding hours 4,100 Inspecting 254,200 Number of inspections 820 Rework 47,200 Rework orders 160 $ 521,980 Support Purchasing $ 158,600 Purchase orders 488 Providing space 30,900 Number of units 8,400 Providing utilities 126,180 Number of units 8,400 $ 315,680 Additional production information concerning its two product lines follows. Model 145 Model 212 Units produced 2,800 5,600 Welding hours 800 3,300 Batches 445 445 Number of inspections 510 310 Machine hours 2,750 5,300 Setups 30 30 Rework orders 90 70 Purchase orders 325 163 Required: 1. Using ABC, compute the overhead cost per unit for each product line. 2. Determine the total cost per unit for each product line if the direct labor and direct materials costs per unit are $200 for Model 145 and $112 for Model 212. 3. If the market price for Model 145 is $515.95 and the market price for Model 212 is $303.34, determine the profit or loss per unit for each model.
Answer:
Way Cool
1. Overhead Cost per unit for each product line:
Model 145 Model 212
Overhead cost per unit $434.97 $457.59
2. Total cost per unit for each product line:
Model 145 Model 212
Total cost per unit $634.97 $569.59
3. The profit or loss per unit for each model:
Model 145 Model 212
Market price 515.95 303.34
Loss per unit $119.02 $266.25
Explanation:
a) Data and Calculations:
Process Activity Overheads Driver Quantity Components O/H rates
Changeover $ 627,450 Number of batches 890 $705
Machining 379,155 Machine hours 8,050 $47.10
Setups 108,000 Number of setups 60 $1,800
Total $ 1,114,605
Finishing
Welding $ 220,580 Welding hours 4,100 $538
Inspecting 254,200 Number of inspections 820 $310
Rework 47,200 Rework orders 160 $295
Total $ 521,980
Support Purchasing $ 158,600 Purchase orders 488 $325
Providing space 30,900 Number of units 8,400 $3.68
Providing utilities 126,180 Number of units 8,400 $15.02
Total $ 315,680
Additional production information concerning its two product lines follows.
Model 145 Model 212
Units produced 2,800 5,600
Welding hours 800 3,300
Batches 445 445
Number of inspections 510 310
Machine hours 2,750 5,300
Setups 30 30
Rework orders 90 70
Purchase orders 325 163
Model 145 Model 212
Units produced 2,800 5,600
Welding hours $430,400 (800*$538) $1,775,400 (3,300 * $538)
Batches 313,725 (445*$705) 313,725 (445*$705)
Number of inspections 158,100 (510*$310) 96,100 (310*$310)
Machine hours 129,525 (2,750*$47.10) 249,630 (5,300*$47.10)
Setups 54,000 (30*$1,800) 54,000 (30*$1,800)
Rework orders 26,550 (90*$295) 20,650 (70*$295)
Purchase orders 105,625 (325*$325) 52,975 (163*$325)
Total overhead costs $1,217,925 $2,562,480
Units produced 2,800 5,600
Overhead cost per unit $434.97 $457.59
Direct labor and materials 200.00 112.00
Total cost per unit $634.97 $569.59
Market price 515.95 303.34
Loss per unit $119.02 $266.25
Your boss approaches you in mid-December and requests that you pay certain employees their gross pay amount as if there were no deductions as their year-end bonuses. None of the employees have reached the Social Security wage base for the year. Required: What is the gross-up amount for each of the following employees
Answer:
The gross up amount for each employee is $4,500.
Explanation:
Social security wage base is a amount of tax on the salary which is used as a social security at the old age. The amount is determined based on a person's salary. The employees will have no deduction from their salary as they do are not eligible for social security wage base. The year end bonus will be the gross which is paid to the employees.
what is the acronym of MHA
no body know hahahaga
Explanation:
yeah
Answer:
The last Masters degree that we will take a look at today includes the M.H.A., or Master of Health Administration.
2. Grocers Absorb Rise in Food Prices to Keep Customers From Straying Dec. 17, 2017 7:00 a.m.
ET: Retailers hold line on prices, fearing they will lose business to discounters and new rivals online
Food costs are ticking up after a multiyear glut of many staples. But consumers aren't paying
much more yet because grocers, discounters and online retailers are all holding down prices to win
business. Many grocers are investing in e-commerce operations to keep up with Amazon.com Inc., which
has slashed prices on products including avocados, organic milk and chicken since it acquired Whole
Foods Market this summer. "Price competition is getting more severe," said Kemper Isely, co-president of
the Colorado-based Natural Grocers by Vitamin Cottage Inc., a health-food chain that competes with
Whole Foods in the West. The chain has cut prices this year in part to try to beat Whole Foods discounts.
Considering grocers, how can you apply price elasticity of demand to this situation?
The human resource department (HR) of Woodworkers, a furniture manufacturing firm, takes the time and effort
to identify and attract the right type of skilled employees required to manufacture premium furniture. It also trains the employees extensively so that they gain job-related knowledge. Moreover, it has established monthly reward systems so that the employees feel appreciated for their hard work. In this scenario, the activities undertaken by the HR department of Woodworkers align with the human resource management goal of _____.
a. adhering to legal business guidelines
b. complying with social obligations
c. creating an ethnocentric work environment
d. enhancing productivity and quality Management
Answer:
The answer is "Option d".
Explanation:
The productivity and quality control rise in connection with customer satisfaction, in which productivity is the relationship between the number of inputs and outputs, and it is necessary to produce a service is a productivity, and the quality is the calculation, that how flawless a material changes steel production quality or function may reduce product quality.
These activities carried out by the Woodworkers Human resources department throughout the scenario fit with the management objective of increasing productivity and quality control.
Rodriguez Company pays $342,225 for real estate with land, land improvements, and a building. Land is appraised at $245,000; land improvements are appraised at $73,500; and a building is appraised at $171,500. Required: 1. Allocate the total cost among the three assets. 2. Prepare the journal entry to record the purchase.
Answer and Explanation:
a. The allocation of the total cost among the three assets is given below:
(a) (b) (a × b)
Appraise value Total appraised Total cost of Apportioned
value cost
Percentage acquisition
Land $245,000 50% $342,225 $171,112.50
Land
improvements $73,500 15% $342,225 $51,333.75
Building $171,500 35% $342,225 $119,778.75
Total $490,000
b. The journal entry to record the purchase is given below:
Land $171,112.50
Land improvements $51,333.75
Building $119,778.75
To Cash $342,225
(To record the purchase)
Here the asset is debited as it rises the assets and cash is credited as it reduced the assets
A start-up company that makes hydraulic seals borrowed $800,000 to expand its packaging and shipping facility. The contract required the company to repay the investors through an innovative mechanism called faux dividends, a series of uniform annual payments over a fixed period of time. If the company paid $250,000 per year for 5 years, what was the interest rate on the loan
Answer:
Internal rate of Return = 17%
Explanation:
Solution:
In order to solve this question, there are two methods to solve. First one is through the use of Factor Tables values, which is bit lengthy. And Second one is through the use of Excel.
Here, I will be solving through the use of Factor Tables.
Using Factor Tables Method:
First we need to know the formula to calculate the interest rate:
P = A x [tex]\frac{(1 + i)^{n} - 1 }{i(1 + i)^{n} }[/tex]
From the above formula, we need to find the P/A.
P/A = [tex]\frac{(1 + i)^{n} - 1 }{i(1 + i)^{n} }[/tex]
Where, P = $800,000
A = $250,000
So, the P/A = 3.2
Now, you need to check out the factor tables for the value interest rate against the value of P/A 3.2 for 5 years.
You will get interest rate of 16% for P/A 3.2743 for 5 years,
And
You will get interest rate of 18% for P/A 3.1272 for 5 years.
But, our P/A value is 3.2 only and it lie between these two points.
So, now, we need to find the internal rate of return which will be our correct answer.
Internal Rate of Return = [tex]i_{a}[/tex] + [tex]\frac{(P/A)_{a} - (P/A)_{c} }{(P/A)_{a} - (P/A)_{b} } (i_{b} - i_{a})[/tex]
Where,
[tex]i_{a}[/tex] = 18% = 0.18
[tex](P/A)_{a}[/tex] = 3.1272
[tex]i_{b}[/tex] = 16% = 0.16
[tex](P/A)_{b}[/tex] = 3.2743
By plugging in the values, we will get the internal rate of return.
Internal rate of Return = 0.170
Internal rate of Return = 17%
In 2019, Mr. Smith purchased a principal residence for $1,500,000. He made a down payment of $300,000 and financed the remainder by borrowing $1,200,000 through a loan secured by the residence. In 2019, Mr. Smith paid interest that accrued on the indebtedness during that year. He had no other debt secured by the residence. May he deduct the entire amount of interest which was paid on the home loan
Answer:
Following are the solution to the given question:
Explanation:
Article 163(a) enables with all interest charged as well as accumulated throughout the obtainable year as rationale. On something like a duty. Not from having to stand, area 163(h)(1) for individuals continues to refuse an inference.
Definitely competent house involvement is not really a person under Segment 163(h)(2)(D). In Section 163(h)(3)(a) characterizes skilled optimism even though paid or charged interest. Recovering for a guaranteeing responsibility or house price responsibility guaranteed by taxable year Each consumer's competent going to dwell.
Even though optimism for both the supply chain responsibility under sentence 163(h)(3), a public servant may deduct (B) Accrued interest on 1,000,000 of the 1200,000 bond that used highlight the entire living in 2009 Agreement. In getting a competent living situation, the 1200,000 responsibility has been obtained Taxpayer as well as living agreements have been secured. In the this way: 1,000,000 is obligatory Obtained under 163(h)(3) as a supply chain obligation (B).
1. For financial accounting purposes, what is the total amount of product costs incurred to make 21,750 units
Answer: $450,225
Explanation:
Product costs = Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead
= (21,750 * 7.80) + (21,750 * 4.80) + (21,750 * 2.30) + (21,750 * 5.80)
= 169,650 + 104,400 + 50,025 + 126,150
= $450,225
Apisco Tiger Inc. has annual cost of goods sold of $41,700, interest expense of $960, general and administrative expenses of $8,800, dividends paid of $2,170, depreciation of $1,400, and a tax rate of 21 percent. What is the firm's taxable income if it added $3,840 to retained earnings during the year
Answer:
the taxable income is $7,607.59
Explanation:
The computation of the taxable income is shown below:
Net income after tax is
= Dividend paid + Retained earnings
= $2,170 + $3,840
= $6,010
Now Taxable income is
= Net income ÷ (1 - tax rate)
= $6,010 ÷ (1 - 0.21)
= $7,607.59
Hence, the taxable income is $7,607.59
Pamela, the manager of an electronics store in California, has redesigned the jobs of her sales staff so that they have the authority to resolve customer complaints without first getting the approval from management. (In the past, sales staff did not have the authority to issue refunds or replace merchandise). Which job design technique does this represent
Answer:
Job enrichment
Explanation:
Job enrichment is defined a a way of working in an organisation where the individual is motivated to employ their skill in solving problems and working with clients.
In this system employees have some autonomy on how to resolve customer problem.
Thereby fostering accountability and sense of responsibility non the staff.
In the given scenario sales staff now have have the authority to resolve customer complaints without first getting the approval from management.
This is Jobe enrichment strategy.
Paula weeded 40% of her garden in 8 minutes. How many minutes will it take to weed all of her garden at this rate ?
Answer:
3.2
Explanation:
when we get the 8 minutes and multiply
the rate which is 40% we get 3.2. 8*40/100=3.2 minutes.
A merchant plans to sell two models of home computers at costs of $250 and $400, respectively. The $250 model yields a profit of $45 and the $400 model yields a profit of $50. The merchant estimates that the total monthly demand will not exceed 250 units. Find the number of units of each model that should be stocked in order to maximize profit. Assume that the merchant does not want to invest more than $70,000 in computer inventory. (See Exercise 21 in Section 9.2.)
Answer:
That is there is maximum profit when 250 units of $250 model computer and 50 units of $400 model computer is stocked.
Explanation:
Let x represent the number of $250 model and let y represent the number of $400 model. Since the total monthly demand will not exceed 250 units, hence:
x + y < 250 (1)
Also the merchant does not want to invest more than $70,000, hence:
250x + 400y < 70000 (2)
x, y ≥ 0
Plotting the equations using geogebra online graphing tool. The solution to the problem is at (0,0), (200, 50), (250,0), (0, 175).
The profit equation is:
Profit = 45x + 50y
At (0,0); Profit = 45(0) + 50(0) = 0
At (250,0); Profit = 45(250) + 50(0) = $11250
At (0,175); Profit = 45(0) + 50(175) = 8750
At (200,50); Profit = 45(200) + 50(50) = $11500
Therefore the maximum profit is at (200, 50). That is there is maximum profit when 250 units of $250 model computer and 50 units of $400 model computer is stocked.
Act Now!, an organization devoted to voting rights, applied for a permit to protest the closing of polling places in poor neighborhoods. Genevieve, the head of the organization, wanted the protest to be on the lawn of the county courthouse. The county denied the permit on grounds that it would prevent people from accessing the courthouse. If Act Now! challenges this action in court, it will be reviewed by the judge using:___________
a) strict scrutiny.
b) rational basis scrutiny.
c) intermediate scrutiny.
d) no particular form of scrutiny (none is required in this situation)
Answer:
c) intermediate scrutiny.
Explanation:
In this particular scenario this will be reviewed by the judge using intermediate scrutiny. In this review the court will decide whether or not the case helps the government and/or the people in any way. The court case interests must further the interests of the government or people in the same way for it to pass the review. If the court case passes the review it will be reassessed and may be voted upon differently depending on the other details at hand.
Help!
Zeke had great fun as a kid running a lemonade stand, and his ideas helped his class reach their fundraising goal for the class trip last year. What career cluster might Zeke be interested in?
A. Information Technology
B. Human Services
C. Science, Technology, Engineering, and Mathematics
D. Marketing, Sales, and Service
Answer:
D
Explanation:
He was selling Lemonade
D is Marketing and sales so yeah it makes sense
Based on past experience, Maas Corp. (a U.S.-based company) expects to purchase raw materials from a foreign supplier at a cost of 1,000,000 francs on March 15, 2021. To hedge this forecasted transaction, on December 15, 2020, the company acquires a call option to purchase 1,000,000 francs in three months. Maas selects a strike price of $0.58 per franc when the spot rate is $0.58 and pays a premium of $0.005 per franc. The spot rate increases to $0.584 at December 31, 2020, causing the fair value of the option to increase to $7,500. By March 15, 2021, when the raw materials are purchased, the spot rate has climbed to $0.59, resulting in a fair value for the option of $10,000. The raw materials are used in assembling finished products, which are sold by December 31, 2021, when Maas prepares its annual financial statements. Prepare all journal entries for the option hedge of a forecasted transaction and for the purchase of raw materials. What is the overall impact on net income over the two accounting periods
Answer:
A. 15-Dec-20
Dr Foreign Currency Option $5,000
Cr Cash $5,000
2. 15-Dec-20 No Journal Entry Required
3 31-Dec-20 Dr Foreign Currency Option
$4,000
Cr To Accumulated - Other Comrehensive Income $4,000
4 31-Dec-20 Dr Option Expense (AOCI) $1,500
Cr To Foreign currency option $1,500
5 15-Mar-21 Dr Foreign Currency Option $6,000
Cr To Accumulated - Other Comrehensive Income $6,000
6 15-Mar-21 Dr Option Expense (AOCI) $3,500
Cr To Foreign currency option $3,500
7 15-Mar-21 Cash A/c $10,000
Cr To Foreign currency option $10,000
8 15-Mar-21 Dr Raw material inventory $590,000
Cr To Cash $590,000
9 15-Mar-21 Dr Accumulated - Other Comprehensive Income $6,000
Cr To Gain on sale of Option (Income statement) $6,000
b. Impact on net income in 2020= $2,500
Impact on net income in 2021 = $4,500
Explanation:
A. Preparation of all journal entries for the option hedge of a forecasted transaction and for the purchase of raw materials
15-Dec-20
Dr Foreign Currency Option Dr (1,000,000*0.005) $5,000
Cr To Cash $5,000
(Being call option purchased to acquire 1000000 marks at $0.005 per mark)
2 15-Dec-20 No Journal Entry Required
3 31-Dec-20 Dr Foreign Currency Option
[($0.584 - 0.58)*1000000] $4,000
Cr To Accumulated - Other Comrehensive Income $4,000
(Being adjustment of increase in fair value of option)
4 31-Dec-20 Dr Option Expense (AOCI) ($4,000 + $5,000 - $7,500) $1,500
Cr To Foreign currency option $1,500
(Being time value reduction of foreign currency option)
5 15-Mar-21 Dr Foreign Currency Option [(0.59 - 0.584)*1000000] $6,000
Cr To Accumulated - Other Comrehensive Income $6,000
(Being adjustment of increase in fair value of option)
6 15-Mar-21 Dr Option Expense (AOCI) ($7,500 + $6,000 - $10,000) $3,500
Cr To Foreign currency option $3,500
(Being time value reduction of foreign currency option)
7 15-Mar-21 Cash A/c $10,000
Cr To Foreign currency option $10,000
(Being sale of foreign currency option)
8 15-Mar-21 Dr Raw material inventory $590,000
Cr To Cash (1000000*0.59) $590,000
(To record purchase of raw material)
9 15-Mar-21 Dr Accumulated - Other Comprehensive Income $6,000
Cr To Gain on sale of Option (Income statement) $6,000
($4,500+$2,500)
(Being gain on option realzied and transferred to statement of comprehensive income)
b. Calculation for What is the overall impact
Impact on net income in 2020 = $4,000 - 1,500 = $2,500
Impact on net income in 2021 = $6,000 - $1,500 = $4,500
Analyze Life Force Fitness, Inc.
Life Force Fitness, Inc., assembles and sells treadmills. Activity-based product information for each treadmill is as follows:
Activity Activity-Base Usage (hrs. per unit) X Activity Rate per Hour = Activity Cost
Motor assembly 1.50 $20 $30.00
Final assembly 1.00 18 18.00
Testing 0.25 22 5.50
Rework 0.40 22 8.80
Moving 0.20 15 3.00
Activity cost per unit $65.30
All of the activity costs are related to labor. Management must remove $2.00 of activity cost from the product in order to remain competitive.
Rework involves disassembling and repairing a unit that fails testing. Not all units require rework, but the average is 0.40 hours per unit. Presently, the testing is done on the completed assembly; but much of the rework has been related to motors, which can be tested independently prior to adding the motor to the treadmill during final assembly. Thus, motor issues can be diagnosed and solved without having to disassemble the complete treadmill. This change will reduce the average rework per unit by one-quarter.
Determine the new activity cost per unit under the rework improvement scenario. Round your answer to 2 decimal place.
Answer:
63.10
Explanation:
The computation of the new activity cost per unit is shown below:
Particulars Activity-Base Usage Activity rate
Activity (hrs. per unit) per Hour Activity Cost
Motor assembly 1.5 20.00 30.00
Final assembly 1.00 18.00 18.00
Testing 0.25 22.00 5.50
Rework 0.30 22.00 6.60
(0.40- 0.40 ÷ 4)
Moving 0.20 15.00 3.00
Activity cost per unit 63.10
Activity-based costing is one of the ways under cost accounting for the determination of the costs of units or products based upon the types of activities involved in producing the goods. It determines the unit cost of the product by taking the proportional ratio of each activity charged over the product.
The new activity cost per unit is $63.10.
The new activity cost per unit is determined as per the existing activity cost. All the costs per unit will remain the same while the activity usage will also remain the same except for the rework activity.
In the context of the given scenario, the rework cost will be reduced by $2, so it will change from 0.4 to 0.3.
The computation of the new activity cost per unit is shown in the image attached below.
To know more about activity-based cost, refer to the link:
https://brainly.com/question/13444998
