Wilson Products uses standard costing. It allocates manufacturing overhead (both variable and fixed) to products on the basis of standard direct manufacturing labor-hours (DLH). Wilson Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2014 is based on budgeted output of 672,000 units, requiring 3,360,000 DLH. The company is able to schedule production uniformly throughout the year.

A total of 72,000 output units requiring 321,000 DLH was produced during May 2014. Manufacturing overhead (MOH) costs incurred for May amounted to $ 355,800. The actual costs, compared with the annual budget and 1/12 of the annual budget, are as follows:
Calculate the following amounts for Wilson Products for May 2014:

Total Amount Per Output Unit Per DLH Input Unit Monthly MOH Budget May 2017 Actual MOH Costs for May 2017
Variable MOH
Indirect manufacturing labor $1,008,000 $1.50 $0.30 $84,000 $84,000
Supplies 672,000 1.00 0.2 56,000 117,000
Fixed MOH
Supervision 571,200 0.85 0.17 47,600 41,000
Utilities 369,600 0.55 0.11 30,800 55,000
Depreciation 705,600 1.05 0.21 58,800 88,800
Total $33,26,400 $4.95 $0.99 $277,200 $355,800

Required:
a. Total manufacturing overhead costs allocated.
b. Variable manufacturing overhead spending variance.
c. Fixed manufacturing overhead spending variance.
d. Variable manufacturing overhead efficiency variance.
e. Production-volume variance Be sure to identify each variance as favorable (F) or unfavorable(U).

Answer:

the present value is $37,230.10

Explanation:

The computation of the present value is shown below:

As we know that

Future value = Present value × (1 + rate of interest)^time period

$50,000 = Present value × (1 + 0.06 ÷ 2)^5 × 2

$50,000 = Present value × (1.03)^10

$50,000 = Present value × 1.343

So, the present value is $37,230.10

hence, the present value is $37,230.10

We simply applied the above formula

Answer:

Carving Creations

Joint Product Allocation

Sawdust _____$ 12,840 ($0.428 * 30,000)

Wood chips _____ $8,560 ($0.428 * 20,000)

Totals _____ $21,400

Explanation:

a) Data and Calculations:

Wood chips = 3,000 cubic yards

Sawdust = 10,000 cubic yards

Estimated batch cost = $21,400

Weight assigned to wood chips production = 10

Weight assigned to sawdust production = 2

Weighted Allocation of the joint costs:

Wood chips = 3,000 * 10 = 30,000

Sawdust = 10,000 * 2 = 20,000

Total weighted units = 50,000

Allocation rate based on weights = $21,400/50,000

= $0.428

Joint Product Allocation

Sawdust _____$ 12,840 ($0.428 * 30,000)

Wood chips _____ $8,560 ($0.428 * 20,000)

Totals _____ $21,400

Answer:

1) adjusting entries

a. On September 1 of the current year, Zimmerman collected six months' rent of $8,520 on storage space. At that date, Zimmerman debited Cash and credited Unearned Rent Revenue for $8,520.

Dr Unearned rental revenue 5,500

    Cr Rental revenue 5,500

b. On October 1 of the current year, the company borrowed $13,200 from a local bank and signed a one-year, 12 percent note for that amount. The principal and interest are payable on the maturity date.

Dr Interest expense 396

    Cr Interest payable 396

c. Depreciation of $3,000 must be recognized on a service truck purchased in July of the current year at a cost of $24,000.

Dr Depreciation expense 3,000

    Cr Accumulated depreciation 3,000

d. Cash of $3,600 was collected on November of the current year, for services to be rendered evenly over the next year beginning on November 1 of the current year. Unearned Service Revenue was credited when the cash was received.

Dr Unearned service revenue 600

    Cr Service revenue 600

e. On November 1 of the current year, Zimmerman paid a one-year premium for property insurance, $9,960, for coverage starting on that date. Cash was credited and Prepaid Insurance was debited for this amount.

Dr Insurance expense 1,660

    Cr Prepaid insurance 1,660

f. The company earned service revenue of $4,200 on a special job that was completed December 29 of the current year. Collection will be made during January of the next year. No entry has been recorded.

Dr Accounts receivable 4,200

    Cr Service revenue 4,200

g. At December 31 of the current year, wages earned by employees totaled $13,700. The employees will be paid on the next payroll date in January of the next year.

Dr Wages expense 13,700

    Cr Wages payable 13,700

h. On December 31 of the current year, the company estimated it owed $490 for this year's property taxes on land. The tax will be paid when the bill is received in January of next year.

Dr Property taxes expense 490

    Cr Property taxes payable 490

2) Assets     = Liabilities + Stockholders’     Revenues - Expenses = Net

                                          Equity                                                          Income

a.    na               -                    +                           +               na                +

b.    na               -                    -                           na              -                   -

c.     -               na                   -                           na              -                   -

d.    na               -                    +                           +               na                +

e.     -               na                   -                           na              -                   -

f.      +              na                   +                           +               na                +

g.    na              +                    -                            na             -                   -

h.    na              +                    -                            na             -                   -

Answer: d. Married, filing separately.

Explanation:

From the question, we are informed that Jeremy is married to Amy, who abandoned him in 2019 and that he has not seen or communicated with her since April of that year.

We are further told that he maintains a household in which their son, Evan, lives and that Evan is age 25 and earns over $6,000 each year.

For tax year 2020, Jeremy's filing status is married, filling separately. This is because we are told that Jeremy hasn't has not seen or communicated with her since April. Since they're not divorced, it means they're still married but filing separately.

Answer:

$7,875

Explanation:

Total car sales in January: $112,500

Commission at the  rate of 7%,

Salary for January is :

7 percent of $112,500

=7/100 x $112,500

=0.07 x $112,500

=$7,875

Answer:

$30,720

Explanation:

First, we will calculate the depreciation for 2020.

Depreciation for 2020 = ($48,000 cost - 0) × 40%

= $19,200

Depreciation for 2021 = ($48,000 cost - $19,200 depreciation 2020) × 40%

= $11,520

Accumulated depreciation at the end of 2021

= $11,520 + $19,200

= $30,720

The value of $30,720 will be recorded as accumulated depreciation on the value of the van at December 31, 2021.

• Note, the asset's annual depreciation will be 20% of the depreciation cost since its useful life is 5. It will however be 40% since we are using the double declining balance method.

Answer:

1. Why should Bob declare a cash dividend over giving stockholders a bonus?

Bob should not declare a cash dividend, instead he should give the employees/stockholders a bonus. A corporation distributes dividends with their after tax income, while bonuses actually decrease net income and lowers taxes. it is always better to pay less taxes.

2. Why should Bob not consider paying a larger year-end bonus to his employee/stockholders’.

In this case, if you have to choose between declaring a dividend or paying a bonus, Bob should definitely pay a bonus. But the bonus should not be larger than the corporation's expected income. It is not a good idea to incur in an operating loss due to huge bonuses.

Answer:

Quarterly deposit= $11,653.28

Explanation:

Future Value= $1,066,000

Number of periods= 10*4= 40 quarters

Interest rate= 0.08/4= 0.02

First, we need to calculate the future value of the initial investment. Then, determine the difference required to reach the objective.

FV= PV*(1+i)^n

FV= 164,000*(1.02^40)

FV= $362,118.50

Difference= 1,066,000 - 362,118.5= $703,881.5

To calculate the quarterly deposit, we need to use the following formula:

FV= {A*[(1+i)^n-1]}/i

A= quarterly deposit

Isolating A:

A= (FV*i)/{[(1+i)^n]-1}

A= (703,881.5*0.02) / [(1.02^40) - 1]

A= $11,653.28

Answer: Check explanation

Explanation:

a. For this scenario, it should be noted that the net benefits for the land lease will be equal to the present value of the benefits that are generated. This will be the annual benefit multiplied by the present value of annuity factor. This will be:

= $110,000 x 13.59

= $1,494,900

From the calculation, we can see that the lease price is less than the present value calculated, this implies that the transaction will incur a profit and should be undertaken.

b. For the growing annuity here, the calculation will be:

= [$110,000/(4% - 2%)] x [1 - [(1 + 2%)/(1 + 4%)]²⁰]

= [$110,000/2%] × [1 - (1 + 0.02)/(1 + 0.04)²⁰]

= $5,500,000 x 0.321833005

= $1,770,081.53

The environmental agency should pay for the piece of land as the present value calculated is higher.

Note that the present value of the annuity factor for 20 years at 4% = 13.59

Answer: a. retained earnings was overstated and liabilities were understated.

Explanation:

Dividends are paid from the Retained Earnings so when a company announces a dividend, that dividend is to be deducted from the Retained earnings. As this was not done, the Retained earnings at year end are overstated.

As the dividends are not paid immediately, they become liabilities. With the relevant entries not made, the dividends were not recorded as liabilities which makes liabilities understated.

Answer:

The Operating Activities section of the Statement of Cash Flow for Year 1:

Net Income                          $3,000

Add non-cash expenses:

Depreciation Expense          2,000

Loss from PP&E Sale             1,000

Operating cash flow                               6,000

Changes working capital                      -5,000

Net cash flow from operating activities 1,000

Explanation:

Changes in working capital items:

                                      Year 0   Year 1    Changes

Accounts Receivables   1,000   5,000       -4,000

Inventory                       5,000   4,000        1,000

Accounts Payable         5,000   4,000      -1,000

Unearned Revenue      2,000    1,000      -1000

Net changes in working capital             -5,000

Full question read.

"You will graduate with a BA in accounting from the University of Texas in Austin in a few weeks. And saw an ad for a position in your hometown of San Antonio that matches your skill set. Your experience in your current job, in which you counted cash from various establishments around campus, and prepared daily deposit slips matches one of the full-time jobs requirements. Before that, you performed accounts receivable functions at a large construction company. Another requirement named in the job ad. You decide to apply for the position. Your task. Create a resume tailored to the position. "

This well-written objective customized for the job opening, includes strategic key words for applicant tracking systems and focuses on how the candidate can contribute to the organization.  This bulleted list of employment history, most appropriately quantifies the candidates accomplishments.

Which represents the best way to compose experience statements?

Answer:

Explanation:

Remember, we are told that "strategic key words for applicant tracking systems..." would be used by the organization to determine the best candidates. It, therefore means that accurate spelling would make an experience statement compelling and detectable by the tracking system.

From the above statements, under these conditions, option c appears to be the best way to compose experience statements.

Answer:

The McMahon Construction Company

Journal Entries:

Sept. 1:

Debit Precast Direct Materials Inventory $1,170,000

Credit Accounts Payable $1,170,000

To record the purchase of materials on account for Precast.

Debit Work in Process-Precast $720,000

Debit Manufacturing Overhead (Precast Dept.) $450,000

Credit Precast Direct Materials Inventory $1,170,000

Sept. 4:

Debit Manufacturing Overhead  (Construction Dept.):

Utilities Expense $30,000

Credit Utilities Payable $30,000

To recorde utilities installed at bridge site.

Sept 6:

Debit Manufacturing Overhead (Precast Dept.):

Rent Expense $7,200

Credit Cash Account $7,200

To record the payment of rent for the temporary construction site.

Sept. 15:

No journal entries.

Sept 19:

Debit Manufacturing Overhead (Construction Dept.):

Machine Rental Expense $65,000

Credit Cash Account $65,000

To record the payment of machine rental expense

Sept. 23:

Debit Direct Materials Inventory $1,510,000

Credit Accounts Payable $1,510,000

To record the purchase of additional materials on account.

Sept. 30:

Debit:

Utilities Payable-Precast Dept $7,200

Direct labor -Precast Dept. $50,000

Debit Manufacturing Overhead (Precast Dept.):

  Insurance Expense- Precast $6,700

  Indirect labor $8,200

Credit Cash Account $72,100

Debit Manufacturing Overhead (Precast Dept.):

Depreciation Expense$21,500

Credit Accumulated Depreciation - Precast Dept $21,500

To record the depreciation expense for the month.

Sept. 30:

Debit Work in Process: Direct labor $19,500

Debit Manufacturing Overhead (Construction Dept.):

Utilities Expense t $2,600

Indirect labor $6,100

Insurance Expense $2,500

Credit Cash Account $30,700

Debit Manufacturing Overhead (Construction Dept.):

Depreciation Expense $9,450

Credit Accumulated Depreciation - Construction Dept $9,450

To record the depreciation expense for the month.

Debit Accounts Payable $2,680,000

Credit Cash Account $2,689,000

To record the payment on account by a check issued.

Debit Work in Process (Precast) $192,000

Credit Manufacturing Overhead (Precast) $192,000

To apply overhead to production in Precast Dept.

Debit Work in Process (Construction Dept.) $29,250

Credit Manufacturing Overhead (Construction Dept.) $9,250

To apply overhead to production in the construction department.

October:

Oct. 1:

Debit Manufacturing Overhead (Construction Dept.) $7,000

Credit Cash Account $7,000

To record the cost of rental a crane.

Oct. 4:

Debit Raw Materials Inventory (Precast) $860,000

Debit Manufacturing Overhead (Precast) $150,000

Credit  Raw Materials Inventory.

Oct. 7:

Debit Manufacturing Overhead (Precast Dept.):

Rent Expense $7,500

Credit Cash Account $7,500

To record the payment of rent for cash.

Oct. 12:

Debit Work in Process (Construction Dept.) $220,000

Debit Manufacturing overhead-170,000

Credit Raw Materials $390,000

To record the issue of materials to the construction dept.

Oct. 15:

No Journal Entries required

Oct. 25:

No Journal Entries required

Oct. 29:

No. Journal Required

Oct. 31:

Debit:

Work in Process (Direct labor) $120,000

Manufacturing Overhead (Precast):

Utilities $14,000

Insurance $10,200

Indirect labor $18,300

Credit Cash Account $162,500

Oct. 31:

Debit Manufacturing Overhead (Precast Dept.):

Depreciation Expense$21,500

Credit Accumulated Depreciation - Precast Dept $21,500

To record the depreciation expense for the month.

Oct 31:

Debit Work in Process: Direct labor $144,500

Debit Manufacturing (Construction Dept.):

Utilities Expense t $5,300

Indirect labor $19,200

Insurance Expense $7,400

Credit Cash Account $176,400

To record the payment of cash for the expense

Debit Manufacturing Overhead (Construction Dept.):

Depreciation Expense $9,450

Credit Accumulated Depreciation - Construction Dept $9,450

To record the depreciation expense for the month.

Debit Work in Process (Precast) $123,600

Credit Manufacturing Overhead (Precast) $123,600

To apply overhead to production in Precast Dept.

Debit Work in Process (Construction Dept.) $216,750

Credit Manufacturing Overhead (Construction Dept.) $216,750

To apply overhead to production in the construction department.

Debit Accounts Receivable (State of Montana) $3,850,000

Credit Service Revenue $3,850,000

To record the billing of the state for the completed bridge.

Debit Finished Goods Inventory $1,835,600

Credit Work in Process $1,835,600

To record the cost of the completed jobs.

Explanation:

a) Data:

Estimated costs for Kleinfeld River Bridge

                                  Precast         Construction

                               Department     Department

Direct materials     $ 1,750,000     $ 400,000

Direct labor                 240,000          180,000

Overhead                   300,000         260,000

Overhead application   $30 per DMH     150% DL

Machine hours worked 6,400 MH       $19,500

Work in Process:

Materials                         $720,000

Direct labor (precast)         50,000

Direct labor (construction) 19,500

Overhead applied            192,000

Overhead applied             29,250

Materials                         220,000

Direct labor                     120,000

Direct labor                     144,500

Overhead applied          123,600

Overhead applied          216,750

Total cost                  $1,835,600

Answer and Explanation:

The preparation of the lower portion is presented below:

Income from the continuing operation

before income tax                   $7,800,000

Less: Income tax expenses ($7,800,000 × 25%) (1,950,000)

Income from continuing operation(A) 5,850,000

Discontinued operation:  

Loss from operation discontinued components

($15 - $13 - $4.8) ($2,800,000)

Income tax benefits ($2,800,000 × 25%)  $700,000

Loss on discontinued operation(B) ($21,000,000)

Net loss (A - B) -$15,150,000

Answer: $9,479

Explanation:

The number of periods = 10 years * 4 quarters = 40 periods

Interest per quarter = 10%/4 = 2.5%

$168,000 has been deposited. The value of this cash after 10 years is;

= 168,000 ( 1 + 2.5%) ^ 40

= $451,090.72

Out of $1,090,000, the amount remaining is;

= $1,090,000 - 451,090.72

= $638,909.28‬

They need to deposit an annuity per quarter to get to $638,909.28‬.

Future Value of Annuity = Annuity * ([1 + I]^N - 1 )/I

638,909.28‬ = Annuity * [(1+0.025)^40 - 1] /0.025

638,909.28 = Annuity * 67.40255

Annuity = 638,909.28/67.40255

= $9,479

Answer:

Variable manufacturing overhead spending variance= $2,000 favorable

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 2,400,000 / 240,000

Predetermined manufacturing overhead rate= $10 per machine hour

To calculate the variable overhead spending variance, we need to use the following formula:

Variable manufacturing overhead spending variance= (standard rate - actual rate)* actual quantity

Variable manufacturing overhead spending variance= (15 - 214,000/21,600)*21,600

Variable manufacturing overhead spending variance= $2,000 favorable

The Nanjones' variable overhead spending variance for November is a. $6,000 favorable.

Data and Calculations:

                                            Planning Data                Actual Data    Variances

                                       Annual          November     November  

Fixed overhead          $1,200,000     $100,000          $101,200       $1,200 U

Variable overhead    $2,400,000    $220,000         $214,000      $6,000  F

Direct labor hours             48,000          4,000               4,200            200  U

Machine hours               240,000        22,000             21,600             400  F

Thus, the Nanjones' variable overhead spending variance for November is the difference between planned expenses and actual expenses, which is $6,000 ($214,000 - $220,000) favorable.

Learn more about variable overhead spending variance here: https://brainly.com/question/4535958

Answer:

1. If Alagir and Ertil open to trade, producers in Ertil would be more likely to lobby their government for an import tariff on iGadgets in order to protect themselves from foreign competition.

Producers in Ertil would be at a disadvantage because people in Ertil would simply buy the lower priced iGadgets from Alagir so the producers in Ertil would lobby their Government for tariffs to protect them.

2.

If an import tariff is imposed, people will find the goods from Alagir more expensive and so will import less. The companies who did the shipping and retail of the goods from Alagir would have to let go of some people to save costs or because they would close down.

With tariffs to protect them, the domestic producers in Ertil can charge higher prices.

With the tariff protecting them, the producers will be willing to expand output so that they can sell more iGadgets at the new higher price.

Answer:

Depreciation Expense 2021= $1,000

Depreciation Expense 2022= $4,000

Explanation:

Calculation for depreciation expense using the straight-line method for 2021 and 2022

Using this formula

Depreciation = ( Cost   −   Residual Value )/

Useful Life

Where,

Cost of Truck on October 1,2021= $25,600

Residual Value = $1,600

Useful life of truck = 6 years service life

Let plug in the formula

2021

Depreciation Expense = $25,600 - $1,600 / 6 years * 3/12

Depreciation Expense 2021= $1,000

Note October 1 to 31 December 2021 will give us 3 months

2022

Depreciation Expense=$25,600 - $1,600 / 6 years

Depreciation Expense 2022= $4,000

Therefore the Depreciation Expense for 2021 will be $1,000 while the Depreciation Expense for 2022 will be $4,000

Answer:

(1) increasing funding to its existing R&D department to expand to the development of AI (artificial intelligence) technology, needed for self-driving vehicles

This strategy would produce the benefit of puttinig the company on the edge of the development of AI in order to produce driverless vehicles.

The risk is that the investment could be too high for the initial benefit, since there is no certainty that driveless cars will be in the market in the short-term.

(2) launching a fully owned subsidiary (a new company that it owns and controls) focused exclusively on AI

This strategy would produce a similar benefit as the strategy above. However, it could also benefit from a little bit less administrative control because in this case, the AI development would be in charge of a subsidiary, not a division.

The risk is the same as above: initial investments may be too high for the initial benefits.

(3) partnering with a major Silicon Valley tech company that has already made considerable progress on AI technology.

This strategy produces the benefit of requiring less investment while still putting the company on the edge of AI research. However, the risk lies in loss of control over the thecnology, and possible future conflicts with the partner company.

Answer:

Market: gasoline (monopolistic competition with few sellers and many buyers)

a. Large number of buyers

b. Standardized good

c. Full information (not all participants know all the information, but most is available if they search for it)

d. No transaction cost

e. Participants are price takers

Market: barbershop haircuts (monopolistic competition with a lot of sellers and many buyers, but differentiated service)

a. Large number of buyers

d. No transaction cost

e. Participants are price takers

Market: bicycles (resembles a perfect competition market)

a. Large number of buyers

b. Standardized good

c. Full information (not all participants know all the information, but most is available if they search for it)

d. No transaction cost

e. Participants are price takers

Explanation:

No market provides full information to all participants. The closest you can get are some markets where commodities are traded and the price is set be certain exchange institutions. E.g. the Chicago Mercantile Exchange sets the price of agricultural commodities in the US, and most trading companies follow that price but variations still exist (even though they are minimum).

It is not possible for all the consumers of gasoline, haircuts or bicycles to know the exact price of all the goods the services since the price varies from one seller to another. Even if they are part of a retail chain, the price varies. Full information only exists in theoretical models, it doesn't exist in the real world.

Market: gasoline (monopolistic competition with few sellers and many buyers)

a. Large number of buyers

b. Standardized good

c. Full information (not all participants know all the information, but most is available if they search for it)

d. No transaction cost

e. Participants are price takers

Market: barbershop haircuts (monopolistic competition with a lot of sellers and many buyers, but differentiated service)

a. Large number of buyers

d. No transaction cost

e. Participants are price takers

Market: bicycles (resembles a perfect competition market)

a. Large number of buyers

b. Standardized good

c. Full information (not all participants know all the information, but most is available if they search for it)

d. No transaction cost

e. Participants are price takers

Explanation:

No market provides full information to all participants. The closest you can get are some markets where commodities are traded and the price is set be certain exchange institutions. E.g. the Chicago Mercantile Exchange sets the price of agricultural commodities in the US, and most trading companies follow that price but variations still exist (even though they are minimum).

It is not possible for all the consumers of gasoline, haircuts or bicycles to know the exact price of all the goods the services since the price varies from one seller to another. Even if they are part of a retail chain, the price varies. Full information only exists in theoretical models, it doesn't exist in the real world.

Answer and Explanation:

The steps in global strategic planning include

Review or develop Vision & Mission: business aims to understand what its vision and mission is, reviewing one already there or developing a new one based on the current business environment and changes

Business and operation analysis. Here the business aims to understand it's environment in terms of it strengths and weaknesses internally and externally

Develop Strategic Options: business looks to find all strategic options available and weighs options to select best strategy on the basis of its business and operation analysis to understand strategy to tackle the current business situation

Establish Strategic Objectives: strategy objectives are developed to tackle new business environment

Strategy Execution Plan: the execution plan involves an effective plan that can duly implemented

Establish Resource Allocation: resources are allocated to execute the global strategic plan

Execution Review: execution is reviewed and quantified to see if the plan is being met

Answer:

Please see attached detailed solution

Explanation:

1a. Direct material 550,000

Conversion 530,000

1b. Direct materials $3.64 per EUP

Conversion $2.61 per EUP

1c. Costs assigned to the forming department's output

• Total cost of ending work in process $160,300

• Total costs assigned $3,384,760

Please see attached detailed solution to the above questions and answers.

Answer:

$2,990

Explanation:

A company's fixed asset consist of its plants and machineries, motor vehicles , buildings etc.

To get the company's net fixed asset, we would subtract the networking capital from total equity and add up long term debt.

Therefore,

Net fixed asset = $2,160 total equity - $240 working capital + $1,070 long term debt

= $2,990

Hence net fixed asset is $2,990

Answer:

Middlemen's brands

Explanation:

A middlemen's brand can be defined as a type of business in which a manufacturing company that is into the production of goods sells its products to either a wholesaler, retailer without adding their brand name. Thus, this middlemen then sell the product with their own brand name.

In this scenario, Tara Foods of Georgia produces a wide range of peanut butters and food extracts, but does not sell any of its output under its own brand name.Tara evidently produces middlemen's brands.

Answer:

A. Job satisfaction

Explanation:

Job satisfaction can be influenced by a number of significant factors. There may be motivation or lack of motivation according to the working conditions, such as job perception, management, organizational culture, reward system, etc.

There needs to be active management to analyze what are the main factors that affect job satisfaction in an organization, so that there is greater motivation, productivity, positive business climate, ethical behaviors, etc.

Answer:

Entries and their narrations are posted below

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

Journal Entries  

                                                      Debit             Credit

A. The equipment was purchased on account for $25,000.

Equipment                             $25,000

Accounts Payable                                          $25,000

B. Connors gave the seller a noninterest-bearing note. The note required payment of (27,000 x 1/(1+10%)

Equipment                             $24,545

Discount on Notes Payable        $2,455

Note Payable                                                   $27,000

C. Connors traded in old equipment that had a book value of $6,000

Equipment New                           $24,500

Accumulated Depreciation          $8,000

Loss on Equipment                $3,500

Cash                                                                $22,000

Equipment Old                                               $14,000

D.Connors issued 1,000 shares of its nopar common stock in exchange for the equipment

Equipment                                  $24,000

Common Stock                                             $24,000

Answer:

e. All of the other choices

Explanation:

Product liability is the responsibility that a company bears for injury caused by its products as a result of a defect.

In this instance Musclematic, has known for the past year that this problem existed, but the company took no steps to warn people who owned or used these machines of the problem.

So for any injury users have they will be liable.

If Amanda files a lawsuit against Musclematic they will have to consider:

- How this litigation will affect its goodwill

- Whether or not a settlement with Amanda is a viable option

- Whether this suit will adversely affect other business relationships

- The costs associated with litigating this claim

This is because they will most likely lose the case.

Answer:

Returns

Explanation:

Returns on an investor is the amount of profit or gain an outlay of cash is able to bring at the end of a period.

Rate of returns on invested funds is used as a yardstick by potential investors in deciding which enterprise to fund.

In the given instance where each of the 80 billion pieces of advertising brought 21 cents in revenue, a better replacement for the word revenue is return.

So returns of funds invested on each piece of advertising is 21 cents.

Answer: income

Explanation:

synonym for revenue

Answer:

internal and external source

Explanation:

Answer:

There are two sources of data. they are:

1. Internal Source.

2. External Source.

Explanation:

Internal Source. When data are collected from reports and records of the organision itself, it is known as the internal source.

External Source. When data are collected from outside the organition, it is known as the external source.

Answer:

a. Net income in 2014 is $5.00 million; Net income in 2015 is $11.25 million; and Net income in 2016 is $8.75million.

b. The best summary is that under generally accepted accounting principles (GAAP), the cost-to-cost method is a method that is acceptable to be applied to contracts that span more than one accounting period.

Therefore, the cost-to-cost method is employed in calculating the revenue and net income for Frankel Construction for each of the years 2014, 2015 and 2016.

Explanation:

a. Calculate the amount of revenue, expense, and net income for each of the three years 2014 through 2016 using the cost-to-cost method.

Note: See the attached excel file for the calculations.

Cost-to-cost method can be described as a cost and revenue recognition approach in which all costs recorded to date on a project are divided by the total expected costs to be incurred on the project in order to obtain the overall percentage of completion of the project which is employed in estimating revenue and net income.

b. What best summarizes our conclusion about the usefulness of the cost-to-cost method for this company?

The best summary is that under generally accepted accounting principles (GAAP), the cost-to-cost method is a method that is acceptable to be applied to contracts that span more than one accounting period.

In this question, the cost-to-cost method is employed in calculating the revenue and net income for this company for each of the year 2014, 2015 and 2016.