Answer:
Note that in California, there are THREE ways to create agency: by agreement, by ratification, and by estoppel.
Explanation:
1. Written or expressed - An oral or written contract in which the parties state the contract's terms and express their intentions in words. We agree orally to the terms of our agency relationship, wherein you will hire me to market your property or represent you as a buyer's agent.
2. Implied - A contract under which the agreement of the parties is demonstrated by their acts and conduct. Example: "I'll help you buy a house; so don't work with anyone else because I will be your agent. Let's go look at some houses today."
3. Ostensible Agency - An actual agency relationship that arises by the actions of the parties rather than by express agreement. For example, the owner of a property knows a broker is showing the owner's vacant lot to prospective buyers without authority to do so. Unless the owner takes steps to stop such unauthorized showings, the law considers that third parties have a just cause to believe the broker to be the "owner's broker." This situation is called an ostensible agency because on the surface an agency appears to exist. Once this type of agency is created, the owner is prevented by estoppel* from denying its existence.
*Estoppel - A legal doctrine by which a person is prevented from asserting rights or facts that are inconsistent with a previous position or representation made by act, conduct, or silence.
4. Ratification - A method of creating an agency relationship in which the principal (seller or buyer) accepts the conduct of someone who acted without prior authorization as the principal's agent. Example: A licensee who shows a property without the owner's prior approval, and then the owner agrees to work with the agent to sell the property.
Note that in California, there are THREE ways to create agency: by agreement, by ratification, and by estoppel.
Think about a financial decision you made regarding the purchase of a big-ticket item or investment within the last five years. Provide a summary on the discussion thread, answering the following questions:What decision did you make?How prepared were you to make the decision?What was your thought process as you were making the decision?What financial information did you need to make the decision and why?What lessons have you learned that you will apply to future financial decisions?
At December 31, Gill Co. reported accounts receivable of $288,000 and an allowance for uncollectible accounts of $1,500 (credit) before any adjustments. An analysis of accounts receivable suggests that the allowance for uncollectible accounts should be 1% of accounts receivable. The amount of the adjustment for uncollectible accounts would be:
Answer:
$1,380
Explanation:
Given that;
Accounts receivables = $288,000
Allowance for uncollectible accounts = $1,500 (credit balance)
Allowance should be 1% of accounts receivables = $288,000 × 1% = 2,880
Then, the adjustment = $2,880 - $1,500 = $1,380
Therefore, the amount of the adjustment for uncollectible accounts would be $1,380
In its most recent annual report, Appalachian Beverages reported current assets of $54,000 and a current ratio of 1.80. Assume that the following transactions were completed: (1) purchased merchandise for $6,000 on account, and (2) purchased a delivery truck for $10,000, paying $1,000 cash and signing a two-year promissory note for the balance.
Compute the updated current ratio (round answers to 2 decimal places)
Transaction (1) ________________
Transaction (2) ________________
Answer:
Current Ratio - Transaction 1 = 1.6666 rounded off to 1.67
Current Ratio - Transaction 2 = 1.6388 rounded off to 1.64
Explanation:
The current ratio is a measure of liquidity which measures the amount of current assets a business has to pay off each $1 of current liability. It is calculated as follows,
Current Ratio = Current Assets / Current Liabilities
We know the initial current ratio and current assets. The initial current liabilities will be,
1.8 = 54000 / Current Liabilities
Current Liabilities = 54000 / 1.8
Current Liabilities = $30000
Transaction 1
The result of transaction 1 will be that the current assets will increase by $6000 as inventory increases and the current liabilities will also increase by $6000 as accounts payable are increasing. The new current ratio will be,
Current Ratio - Transaction 1 = (54000 + 6000) / (30000 + 6000)
Current Ratio - Transaction 1 = 1.6666 rounded off to 1.67
Transaction 2
The result of transaction 2 will be that the current assets will decrease by $1000 as payment for truck which is a fixed asset is made partly by cash and the current liabilities will not increase as the note signed for the remaining payment of the truck is due after 2 years thus it is a non current liability. The new current ratio will be,
Current Ratio - Transaction 2 = (54000 + 6000 -1000) / (30000 + 6000)
Current Ratio - Transaction 2 = 1.6388 rounded off to 1.64
EcoFabrics has budgeted overhead costs of $1,039,500. It has allocated overhead on a plantwide basis to its two products (wool and cotton) using direct labor hours which are estimated to be 495,000 for the current year. The company has decided to experiment with activity-based costing and has created two activity cost pools and related activity cost drivers. These two cost pools are cutting (cost driver is machine hours) and design (cost driver is number of setups). Overhead allocated to the cutting cost pool is $396,000 and $643,500 is allocated to the design cost pool. Additional information related to these pools is as follows.
Wool Cotton Total
Machine hours 110,000 110,000 220,000
Number of setups 1,100 550 1,650
1. Calculate the overhead rate using activity based costing.
2. Determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing.
3. Calculate the overhead rate using traditional approach.
4. What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach, assuming direct labor hours were incurred evenly between the wool and cotton?
Answer:
1. Cutting $1.80 per machine hour
Design $390 per setup
2. Wool product line $627,000
Cotton Product line $412,500
3. Overhead rate $2.10
4. Wool Product line $519,750
Cotton Product line $519,750
Explanation:
1. Calculation to determine the overhead rate using activity based costing.
Overhead rate using the activity based costing
Cutting = Overhead / Total Machine hours
= $396,000 / 220,000
= $1.80 per machine hour
Design = Overhead / Number of setups
= $643,500 / 1,650
= $390 per setup
2. Calculation to determine the amount of overhead allocated to the wool product line and the cotton product line using activity-based costing
Overhead allocated to the wool product line and the cotton product line
Wool product line = (110,000 * $1.80) + (1,100 * $390)
Wool product line= $198,000 + $429,000
Wool product line= $627,000
Cotton Product line = (110,000 * $1.80) + (550 * $390)
Cotton Product line= $198,000 + $214,500
Cotton Product line= $412,500
3.Calculation to determine the overhead rate using traditional approach.
Overhead rate using traditional approach
Overhead rate = Total Overhead / Direct labor hours
Overhead rate= $1,039,500 / 495,000
Overhead rate= $2.10
4. Calculation to determine What amount of overhead would be allocated to the wool and cotton product lines using the traditional approach
Overhead allocated using the traditional method
Wool Product line = $1,039,500 / 2
Wool Product line= $519,750
Cotton Product line = $1,039,500 / 2
Cotton Product line= $519,750
who is the richest person on earth?
Answer: Jeff Bezos
Explanation: Jeffrey Preston Bezos is an American internet entrepreneur, industrialist, media proprietor, and investor. Bezos is the founder and CEO of the multi-national technology company Amazon. He is the richest person in the world according to both Forbes' and Bloomberg's Billionaires Index.
Q4) The price of a luxury car increased from 42.000 euros to 44.000 euros. Then the demand for
this car declined from 100 units to 20 units. Calculate the price elasticity of demand for the car.
Answer:
Price elasticity of demand = 28.67 (Approx.)
Explanation:
Given:
Old price of car = 42.000 euros
New price of car = 44.000 euros
Quantity of car old = 100 units
Quantity of car new = 20 units
Find:
Price elasticity of car
Computation:
Price elasticity of demand = (Percentage change in quantity)/(Percentage change in price)
Price elasticity of demand = [{(Q2-Q1)100}/{(Q1+Q2)/2}] / [{(P2-P1)100}/{(P1+P2)/2}]
Price elasticity of demand = [{(20-100)100}/{(20+100)/2}] / [{(44000-42000)100}/{(44000+42000)/2}]
Price elasticity of demand = [{-8000}/{60}] / [{200000}/{(43000}]
Price elasticity of demand = 133.33 / 4.65
Price elasticity of demand = 28.67 (Approx.)
The FOMC is presented with data and analysis showing that the output gap has gone from nearly 0 to large and negative. Additionally, inflation is 1.2% instead of the target rate, 2%. a. Using the floor framework, the FOMC is likely to influence interest rates by the interest rate it pays on excess reserves and its overnight borrowing from financial institutions. b. Additionally, the FOMC is likely the discount rate.
Answer:
A. decreasing
B. decrease
Using the floor framework, the FOMC is likely to influence interest rates by the interest rate it pays on excess reserves and decreasing its overnight borrowing from financial institutions. Additionally, the FOMC is likely decreasing the discount rate.
What is FOMC?The Board of Governors of the Federal Reserve System is in control of the discount rate and reserve requirements, while the Federal Open Market Committee is in charge of carrying out open market activities.
The FOMC is in charge of setting interest rate targets and controlling the money supply. The Fed has historically been motivated by two objectives: first, to maintain stable prices; and second, to achieve full employment.
When the Federal Open Market Committee raises interest rates, the economy and stock markets are impacted because borrowing costs for households and businesses might go up or down.
Thus, the answers are written above.
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Becker Company is preparing its cash budget for the upcoming month. The budgeted beginning cash balance is expected to be $70,000. Budgeted cash disbursements are $254,000, while budgeted cash receipts are $252,000. Becker Company wants to have an ending cash balance of $100,000. How much would Becker Company need to borrow to achieve its desired ending cash balance
Answer:
$32,000
Explanation:
Calculation to determine How much would Becker Company need to borrow to achieve its desired ending cash balance
Using this formula
Desired ending cash balance=[Ending cash balance-Budgeted beginning cash balance+
(Budgeted cash disbursements-budgeted cash receipts)]
Let plug in the formula
Desired ending cash balance=[$100,000-$70,000+($254,000-$252,000)]
Desired ending cash balance=$30,000+$2,000
Desired ending cash balance=$32,000
Therefore The amount that Becker Company need to borrow to achieve its desired ending cash balance is $32,000
Why do they say Accounting Equation is the basis for the preparation of statement of financial position in accordance to IFRS financial statement presentation ?
Answer:
The Statement of Financial Position (SFP) or Balance Sheet, shows the assets of the company on one side and then the way the funding that enabled these assets to be acquired on the other.
This is the basis of the Accounting equation which is:
Assets = Equity + Liability
One one side of the (SFP), you have the assets shown. These assets are added up to find the Net Total Assets.
The other side of the (SFP) will have the Equity and the liabilities listed. These are then added up too and they are to be equivalent to the amount of Assets.
This would therefore prove the equation that when you add up Equity and Liabilities, you get Assets.
You have just been elected to public office and you have been informed that the government does not have money to pay all of its bills.
You have been told that if you were to cut the marginal tax rate, tax revenue would actually increase. Is this true and if so, what would
be the reason for this?
Choose one
Answer:
Yes. But I actually don't know the reason
please if you get the answer, pleasetext me. sorry for bothering you
On January 1, Cheyenne Corp. had 61,400 shares of no-par common stock issued and outstanding. The stock has a stated value of $4 per share. During the year, the following transactions occurred.
Apr. 1 Issued 11,250 additional shares of common stock for $11 per share.
June 15 Declared a cash dividend of $1.90 per share to stockholders of record on June 30.
July 10 Paid the $1.90 cash dividend. Dec. 1 Issued 5,000 additional shares of common stock for $12 per share.
Dec. 15 Declared a cash dividend on outstanding shares of $2.00 per share to stockholders of record on December 31.
Required:
Prepare the entries, if any, on each of the three dates that involved dividends.
Answer:
Journal entry
Date Account & Explanation Debit Credit
June 15 Cash dividend $138,035
(61400+11250)*$1.9
Dividend payable $138,035
(To record dividend declared)
July 10 Dividend payable $138,035
Cash $138,035
(To record dividend paid)
Dec 15 Cash dividend $155,300
(61400+11250+5000)*2
Dividend payable $155,300
(To record dividend declared)
The Jenkins Corporation has purchased an executive jet. The company has agreed to pay $200,000 per year for the next 10 years and an additional $1,000,000 at the end of the 10th year. The seller of the jet is charging 6% annual interest. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Determine the liability that would be recorded by Jenkins.'
Answer:
Present value of liability = $2,030,412.1871 rounded off to $2,030,412.19
Explanation:
To calculate the amount that would be recorded as a liability, we need to find the present value of the jet. The present value can be calculated by discounting the cash flows provided in the question. The 200000 cash flows that will be payable every year are in the form of an ordinary annuity and their present value will be calculated using the attached formula. The present value of 1000000 that is payable at the end of the 10th year will be calculated as follows,
Present Value of Cash flow = Cash Flow / (1+r)^t
Where,
r is the discount rate t is the time periodPresent value of liability = 200000 * [(1 - (1+0.06)^-10) / 0.06] +
1000000 / (1+0.06)^10
Present value of liability = $2,030,412.1871 rounded off to $2,030,412.19
Ringmeup Inc had net income of $126,300 for the year ended December 31, 2013. At the beginning of the year, 44,000 shares of common stock were outstanding. On May 1, an additional 13,000 shares were issued. On December 1, the company purchased 4,500 shares of its own common stock and held them as treasury stock until the end of the year. No other changes in common shares outstanding occurred during the year. During the year, Ringmeup, Inc., paid the annual dividend on the 7,000 shares of 4.75%, $100 par value preferred stock that were outstanding the entire year. Calculate basic earnings per share of common stock for the year ended December 31, 2013
Answer:
$1.78
Explanation:
Basic Earnings Per Share = Earnings attributable to Common Stock Holders / Weighted Average number of shares outstanding at the end of year
Earnings attributable to common stockholders = Net Income - Preferred Stock Dividend paid in the year
Earnings attributable to common stockholders = $126,300 - ($100*4.75%*7,000 Shares)
Earnings attributable to common stockholders = $126,300 - $33,250
Earnings attributable to common stock holders = $93,050
Weighted Average number of shares outstanding at the end of year = (44,000 * 11/12) + [(44,000 - 4,500) * 1/12] + (13,000 * 8/12)
= 40,333.33 + 3,291.67 + 8,666.67
= 52,291.67
Basic Earnings Per Share = $93,050 / 52,291.67 shares
Basic Earnings Per Share = $1.78
What are the different aspects by which an emerging technology is defined?
What are the different aspects by which an emerging technology is defined?
(you can choose more than one sentence)
Emerging technologies are mostly those that arise from new knowledge. Emerging technologies may develop in new markets, this makes it easier to determine their demand. However, at times, the market for this technology may be non-existent. These technologies can be evaluated by using existing technologies as heuristics. SCORE is an example of a heuristic evaluation method. There are no standard methods used to evaluate emerging technologies.
Answer:
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Explanation:
Answer: BEHOLD!!
Explanation:
You have collected data for the 50 U.S. states and estimated the following relationship between the change in the unemployment rate from the previous year and the growth rate of the respective state real GDP (). The results are as follows:
Δur= (0.12) -(0.04)x gy, R2= 0.36, SER= 0.78
Assuming that the estimator has a normal distribution, the 95% confidence interval for the slope is approximately the interval:
a. [-0.31, 0.15]
b. [2.57, 3.05 ]
c. [-0.33, - 0.13]
d. [-0.13, -0.15]
Answer:
[ -0.13, -0.15 ] ( D )
Explanation:
Given data :
sample size ( n ) = 50
Independent variable ( p ) = 1
determine the confidence interval for the slope
Df ( degree of freedom ) = n - p - 1 = ( 50 - 1 - 1 ) = 48
b ( estimated slope ) = -0.23
Standard error of slope = 0.04
confidence interval = 95%
For confidence interval of 95% and Df of 48 ; critical value ( t ) = 2.011
∴ Confidence interval
= -0.23 ± ( 2.011 * 0.04)
= -0.23 ± 0.08044
= [ -0.13, -0.15 ]
Think about an organizational change that recently affected you. This could be a change at work in which jobs or procedures were changed, or it could be a change at school, such as a change in curriculum requirements or major revisions in registration procedures. How effectively did the organization manage the change? What could the organization have done differently to reduce resistance to the change? Your post should reflect the terms and concepts in Chapter 15.
Explanation:
One good example is the recent change in the way we learn at school (remote learning). For many students, it was the first time they had to receive instructions from a teacher via videoconferencing.
Many organizations tried to adjust to this new normal, however, most organizations were confused about what training to provide, how long to should they plan for, etc.
Reports say that many teachers found it difficult to adapt to this method of teaching, hence, some were resistant to this change. However, if proper enlightenment were carried out, as well as employing some motivational factors, such resistance to change would have been minimal.
Pankraz Corporation, a calendar year taxpayer, is formed on April 1, 2020. In connection with its formation, it incurs organizational expenditures of $54,000. Pankraz wants to claim as much of these expenses as soon as possible. Round per month amount to two decimal places. Round your final answer to the nearest dollar. Therefore, its deduction for 2020 is $fill in the blank 1
Answer:
$3,650
Explanation:
Calculation to determine its deduction i
First step is to calculate the Expense
Expense=$5,000 - ($54,000 - $50,000)
Expense=$5,000-$4,000
Expense= $1,000
Second step is to calculate the Amortization
Amortization= ($54,000 - $1,000)/180 months
Amortization= $294.44 x 9 months
Amortization= $2,649.99
Amortization= $2,650 (Approximately)
Now let calculate the total deduction
Total deduction =$1,000 + $2,650
Total deduction= $3,650
Therefore, its deduction for 2020 is $3,650
One day, Barry the Barber, Inc., collects $400 for haircuts. Over this day, his equipment depreciates in value by $50. Of the remaining $350, Barry sends $30 to the government in sales taxes, takes home $220 in wages, and retains $100 in his business to add new equipment in the future. From the $220 that Barry takes home, he pays $70 in income taxes.
a. gross domestic product
b. net national product
c. national income
d. personal income
e. disposable personal income
Answer: See explanation
Explanation:
a. gross domestic product
The GDP is $400 which is the money that Barry collects for haircut.
b. net national product
Net National Product:
= GDP – Depriciation
= $400 - $50
= $350
c. national income
The national income is the total income that the residents of the country earns and this will be same as Net National Product which is $350
d. personal income
Personal income:
= National income – Retained earnings
= $350 - $100 - $30
= $220
e. disposable personal income
Disposable personal income:
= Personal income – Personal tax
= $220 - $70
= $150
Stella is a volunteer at her church during bingo night. At the end of the night, it is her responsibility to take the evening's profits and drop them in the night deposit box at the local bank. She is given the leather and canvas case filled with money and she leaves for the bank. On the way there, she decides to keep the money and drives to another state. What crime has she committed?
A) embezzlement
B) burglary
C) extortion
D) larceny
Stella have taken the money and driven to another state which was supposed to be deposited at the local bank. The crime that Stella have committed is termed as larceny. Thus, the correct answer is option D.
What is larceny?Larceny is a crime that involves the illegal taking or theft of another person's or business's personal property. It was an offence under English common law, and it became an offence in jurisdictions that incorporated English common law into their own law (also statutory law), where it is still in effect in many cases.
Larceny is defined as the unlawful taking of personal property with the intent to permanently deprive the rightful owner of it.
Stella, being the volunteer at her church during bingo night had the responsibility of taking the evening's profits and drop them in the night deposit box at the local bank. Instead she decides to keep the money and drives to another state thus committing larceny.
Thus, larceny is the crime that Stella has committed.
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Which of the following is NOT an example of fixed expenses?
Select the best answer from the choices provided.
A.
Health insurance premium
B.
Interest on college loans
C.
Apartment Rent
D.
The amount of gas to fill up your tank
Answer:
A.
Health insurance premium
Explanation:
helping
Robert is the sole shareholder and CEO of ABC, Inc., an S corporation that is a qualified trade or business. During the current year, ABC has net income of $325,000 after deducting Robert’s $100,000 salary. In addition to his compensation, ABC pays Robert dividends of $250,000. What is Robert’s qualified business income? Would your answer to part (a) change if you determined that reasonable compensation for someone with Robert’s experience and responsibilities is $200,000? Why or why not
Answer and Explanation:
a. The calculation of the robert qualified business income is shown below:
Since robert is the sole shareholder and CEO of the ABC Inc and earned the income of $325,000 after subtracting the deduction of $100,000 salary
Also their is a dividend of $250,000
But the qualified business income should be equivalent to the net income i.e. $325,000
b. In the case when there is $200,000 so the net income would be decreased by $100,000
Now the qualified business income is
= $325,000 - $100,000
= $225,000
Crane Company estimates its sales at 80000 units in the first quarter and that sales will increase by 8000 units each quarter over the year. They have, and desire, a 25% ending inventory of finished goods. Each unit sells for $25. 40% of the sales are for cash. 70% of the credit customers pay within the quarter. The remainder is received in the quarter following sale. Cash collections for the third quarter are budgeted at
Answer:
Total cash collection Third Quarter= $2,364,000
Explanation:
Giving the following information:
40% of the sales are for cash.
70% of the credit customers pay within the quarter.
The remainder is received in the quarter following the sale.
Sales:
Q2= 88,000*25= 2,200,000
Q3= 96,000*25= 2,400,000
Selling price per unit= $25
Cash collection Third Quarter:
Sales in cash= 2,400,000*0.4= 960,000
Sales on account third quarter= (2,400,000*0.6)*0.7= 1,008,000
Sales on account second quarter= (2,200,000*0.6)*0.3= 396,000
Total cash collection Third Quarter= $2,364,000
Jane Tucker is the ethics officer for a publicly traded company. She is concerned that the company does not have a mechanism for anonymous reports of issues by employees. The CEO is not inclined to spend the money required to set up a hotline or any other reporting mechanism. Which of the following statements is true about this situation?
A) As long as the company has an ethics officer to whom employees can report concerns, it has done everything necessary to enjoy the protections under the Federal Sentencing Guidelines.
B) With Jane as an ethics officer and adding in a code of ethics, the company has met the two required prongs for the Federal Sentencing Guidelines.
C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.
D) The Federal Sentencing Guidelines protections do not apply to publicly traded companies under Dodd-Frank.
Answer: C) Without an anonymous reporting system, the company does not meet the minimum requirements for the protections of the Federal Sentencing Guidelines.
Explanation:
Based on the information given, it should be noted that since there's no anonymous reporting system, the minimum requirements for the protections of Federal Sentencing Guidelines isn't met by the company.
The Federal Sentencing Guidelines simply refers to the rules that with regards to the uniform policy through which the individuals and the organizations that have been convicted of felonies and every other misdemeanors are set up. In this case, the requirements hasn't been met since there is no anonymous reporting system.
The market consensus is that Analog Electronic Corporation has an ROE of 9% and a beta of 1.65. It plans to maintain indefinitely its traditional plowback ratio of 2/3. This year's earnings were $2.8 per share. The annual dividend was just paid. The consensus estimate of the coming year's market return is 14%, and T-bills currently offer a 6% return. a. Find the price at which Analog stock should sell. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b. Calculate the P/E ratio.
Answer:
a.
P0 = $7.49494949492 rounded off to $7.49
b.
P/E ratio = 2.67676767676 times rounded off to 2.68 times
Explanation:
a.
The constant growth model of dividend discount model (DDM) can be used to calculate the price of the stock today. DDM calculates the price of a stock based on the present value of the expected future dividends from the stock. The formula for price today under constant growth DDM is,
P0 = D0 * (1+g) / (r - g)
Where,
D0 * (1+g) is the dividend expected in Year 1 or next year g is the constant growth rate in dividends r is the discount rate or required rate of returnWe first need to calculate the values for D0, g and r.
D0 can be calculate by multiplying the earnings per share by (1 - Plowback Ratio)
D0 = 2.8 * (1 - 2/3)
D0 = $0.93333333333 rounded off to $0.93
To calculate the value of g, we need to multiply the ROE by the Plowback ratio.
g = 0.09 * 2/3
g = 0.06 or 6%
To calculate the value of r, we will use the CAPM equation.
r = risk free rate + Beta * (Market return - risk free rate)
r = 0.06 + 1.65 * (0.14 - 0.06)
r = 0.192 or 19.2%
P0 = 0.93333333333 * (1+0.06) / (0.192 - 0.06)
P0 = $7.49494949492 rounded off to $7.49
b.
The P/E ratio can be calculated by dividing the price per share by the earnings per share.
P/E = 7.49494949492 / 2.8
P/E ratio = 2.67676767676 times rounded off to 2.68
A company has current assets of 100,000, total assets of 250,000, current liabilities of 20,000, and long-term liabilities of 50,000. How much of its existing current assets can the company use to acquire equipment without allowing its current ratio to decline below 2.0 to 1
Answer:
$60,000
Explanation:
The computation is shown below
Here the current liabilities is $20,000
And, the current ratio is 2:1
So, as we know that
The current ratio = Current assets ÷ current liabilities
So, the current asset is $40,000
= $40,000 ÷ 20,000
= 2.0 to 1
Now the amount required to purchase an equipment is
= $100,000 - $40,000
= $60,000
a vacuum manufacturer has prepared the following cost data for manufacturing one of its engine components based on the annual production of 50,000 units
Making the engine in-house would be more practical for the corporation than purchasing one from the market. To boost output while maintaining product quality.
What is the cost per unit?
The phrase “cost per unit” refers to the lowest price a corporation must sell a product for in order to break even.
Fixed factory overhead (24×150%) Fixed factory (25% Of 36)
For the purpose of making decisions, this overhead shall not be taken into account as 75% of the fixed overhead cost.
The unit can be purchased from the market for $60. Accordingly, the corporation should produce the engine rather than purchase it from the market because it is more practical for the business.
Company maintains the brand name, increase production and maintain quality of product.
Solving data attach on file.
Hence, the significance of the manufacturing is aforementioned.
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Vaughn Manufacturing purchased land as a factory site for $1345000. Vaughn paid $116000 to tear down two buildings on the land. Salvage was sold for $8100. Legal fees of $5500 were paid for title investigation and making the purchase. Architect's fees were $46900. Title insurance cost $3900, and liability insurance during construction cost $4200. Excavation cost $15860. The contractor was paid $4300000. An assessment made by the city for pavement was $9500. Interest costs during construction were $260000.
1. The cost of the land that should be recorded by Wilson Co. is:_____.
a. $989,880.
b. $980,480.
c $996,280.
d. $986,880.
2. The cost of the building should be recorded by Wilson Co. is:_____.
a. 2,804,840.
b. 2,813,200.
c. 2,803,800.
d. 3,014,240.
Answer:
Cost of Land = $1,471,800
Cost of Building = $4,626,960
Explanation:
Note: "The options attached to the question are incorrect because its belongs to another question entirely and this can be seen as attached as picture below"
1. Cost of Land = Purchase Value + Cost Incurred to Tear Down two Buildings - Salvage + Legal Fees + Title Insurance Cost + Assessment Cost
Cost of Land = $1345000 + $116000 - $8100 + $5500 + $3900 + $9500
Cost of Land = $1,471,800
2. Cost of Building = Architect's Fees + Liability Insurance Cost + Excavation Cost + Contractor's Payment + Interest Cost
Cost of Building = $46900 + $4200 + $15860 + $4300000 + 260000
Cost of Building = $4,626,960
Novak Corp. has 6000 shares of 5%, $100 par value, cumulative preferred stock and 12000 shares of $1 par value common stock outstanding at December 31, 2020. There were no dividends declared in 2018. The board of directors declares and pays a $55800 dividend in 2019 and in 2020. What is the amount of dividends received by the common stockholders in 2020
Answer:
See below
Explanation:
Given the above data,
Preferred shares = 6,000 shares × $100 = $600,000
Dividend on preference shares = $600,000 × 5% = $30,000 per year
Dividend declared in 2019
= $55,800
Preferred dividend in 2019 = $30,000 × 2 = $60,000
Dividend declared in 2020 =$55,800
Preferred dividend declared in 2020 = $30,000 + $4,200 = $34,200
Dividend paid to common stock holders = $55,800 - $34,200 = $21,600
1. Prepare general journal entries for the transactions.
Mitchell Parts Co. had the following plant asset transactions during the year:
1. Assets discarded or sold:
Jan. 1 Motor #12, which had a cost of $2,890 and accumulated depreciation of
$2,890, was discarded.
8 Motor #8, which had a cost of $4,440 and accumulated depreciation of
$4,020, was sold for $260.
14 Motor #16, which had a cost of $5,730 and accumulated depreciation of
$5,490, was sold for $470.
2. Assets exchanged or traded in:
Feb. 1 Motor #6, which had a cost of $5,860 and accumulated depreciation of
$4,590, was traded in for a new motor (#22) with a fair market value of
$6,800. The old motor and $5,300 in cash were given for the new motor.
9 Motor #9, which had a cost of $5,420 and accumulated depreciation of
$4,940, was traded in for a new motor (#23) with a fair market value of
$6,450. The old motor and $6,170 in cash were given for the new motor.
Answer:
1. Accumulated Depreciation (Dr.) $2,890
Motor #12 (Cr.) $2,890
2. Cash (Dr.) $260
Accumulated Depreciation (Dr.) $4,020
Loss on Sale (Dr.) $160
Motor #8 (Cr.) $4,440
3. Cash (Dr.) $470
Accumulated Depreciation (Dr.) $5,490
Gain on Sale (Cr.) $230
Motor #16 (Cr.) $5,730
Explanation:
1. New Motor #22 (Dr.) $6,800
Accumulated Depreciation (Dr.) $4,590
Gain on Sale (Cr.) $230
Motor #6 (Cr.) $5,860
Cash (Cr.) $5,300
2. New Motor #23 (Dr.) $6,450
Accumulated Depreciation (Dr.) $4,940
Loss on Sale (Dr.) $200
Motor #9 (Cr.) $5,420
Cash (Cr.) $6,170
In divisional income statements prepared for Demopolis Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll distributions, and the Purchasing Department costs are charged back on the basis of the number of purchase requisitions. The Payroll Department had expenses of $59,160, and the Purchasing Department had expenses of $20,680 for the year. The following annual data for Residential, Commercial, and Government Contract divisions were obtained from corporate records:
Residential Commercial Government Contract
Sales $2,000,000 $3,250,000 $2,900,000
Weekly payroll (52 weeks per year) 400 250 150
Monthly payroll 80 30 10
Number of purchase requisitions per year 7,500 3,000 2,000
Required:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
b. Residential's service department charge is _______ than the other two divisions because Residential is a user of service department services. Residential has many employees on a weekly payroll, which translates into a ________ number of payroll transactions.
Answer: See explanation
Explanation:
a. Determine the total amount of payroll checks and purchase requisitions processed per year by the company and each division.
The solution has been attached.
b. Residential's service department charge is (higher) than the other two divisions because Residential is a (heavy) user of service department services. Residential has many employees on a weekly payroll, which translates into a (larger) number of payroll transactions.