Required: Prepare journal entries to record the December transactions in the General Journal Tab in the excel template file "Accounting Cycle Excel Template.xlsx". Use the following accounts as appropriate: Cash, Accounts Receivable, Supplies, Prepaid Insurance, Equipment, Accumulated Depreciation, Accounts Payable, Wages Payable, Common Stock, Retained Earnings, Dividends, Service Revenue, Depreciation Expense, Wages Expense, Supplies Expense, Rent Expense, and Insurance Expense. 1-Dec Began business by depositing $10500 in a bank account in the name of the company in exchange for 1050 shares of $10 per share common stock. 1-Dec Paid the rent for the current month, $950 . 1-Dec Paid the premium on a one-year insurance policy, $600 . 1-Dec Purchased Equipment for $3600 cash. 5-Dec Purchased office supplies from XYZ Company on account, $300 . 15-Dec Provided services to customers for $7200 cash. 16-Dec Provided service to customers ABC Inc. on account, $5200 . 21-Dec Received $2400 cash from ABC Inc., customer on account. 23-Dec Paid $170 to XYZ company for supplies purchased on account on December 5 . 28-Dec Paid wages for the period December 1 through December 28, $4480 . 30-Dec Declared and paid dividend to stockholders $200 .
Answers
Answer:
journal entries to record the December transactions
1-Dec
Cash $10500 (debit)
Common Stock $10500 (credit)
1-Dec
Rent Expense $950 (debit)
Cash $950 (credit)
1-Dec
Prepaid Insurance $600 (debit)
Cash $600 (credit)
1-Dec
Equipment $3600 (debit)
Cash $3600 (credit)
5-Dec
Supplies Expense $300 (debit)
Accounts Payable $300 (credit)
15-Dec
Cash $7200 (debit)
Service Revenue $7200 (credit)
16-Dec
Accounts Receivable $5200 (debit)
Service Revenue $5200 (credit)
21-Dec
Cash $2400 (debit)
Accounts Receivable $2400 (credit)
23-Dec
Accounts Payable $170 (debit)
Cash $170 (credit)
28-Dec
Wages Expense $4480 (debit)
Cash $4480 (credit)
30-Dec
Dividends $200 (debit)
Cash $200 (credit)
Explanation:
The General Journal consists of Entries of Expenses, Capital Expenditures and Receipts and Payments in Cash.
Related Questions
electricity charges paid to electricity authority by cash rs.6500
Answers
A project with an initial cost of $74500 is expected to generate annual cash flows of $16800 for the next 8 years. What is the project's internal rate of return?
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The project's internal rate of return is -$74,500 + $16,800 (PVIFA IRR, 8) = .1536 or 15.36% Use an excel sheet.
What is the internal rate of return?Internal rate of return (IRR) is a method of calculating an investment’s rate of return. The term internal refers to the fact that the calculation excludes external factors, such as the risk-free rate, inflation, the cost of capital, or financial risk.
The method may be applied either ex-post or ex-ante. Applied ex-ante, the IRR is an estimate of a future annual rate of return. Applied ex-post, it measures the achieved investment return of historical investment.
It is also called the discounted cash flow rate of return (DCFROR) or yield rate.
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In financial analysis, the internal rate of return (IRR) is a statistic used to calculate the profitability of possible investments. Hence IRR is 15.36%.
What is IRR ?IRR is a discount rate that, in a discounted cash flow analysis, reduces all cash flows' net present values (NPV) to zero.
The same formula is used for NPV calculations and IRR calculations. Remember that the project's true financial value is not represented by the IRR. The annual return is what brings the NPV to a negative value.
Computation of IRR
Given
Initial cost = $ 74,500
Annual Cash Flows = $ 16,800
Time = 8 years
\(74,500+16,800(PVIFA,8)\\15.36%\)
(Use excel sheet for formula)
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Question 1 Calculate the selling price that Valmont Company will establish for the XP–200 using absorption cost-plus pricing, considering the absorption unit product cost of $8,400 and a markup percentage of 85%.
Question 2 Determine the economic value to the customer (EVC) over the XP–200's 20,000-hour life. Consider the advantages it offers compared to the competitor's piece of equipment, such as longer usage time, lower preventive maintenance costs, and lower electricity consumption.
Question 3 If Valmont Company decides to use value-based pricing, what range of possible prices should they consider when setting a price for the XP–200? Take into account the economic value provided to the customer and the pricing of the competitor's equipment.
Question 4 Provide advice to Valmont's managers on choosing between absorption cost-plus pricing and value-based pricing. Consider the concerns expressed by the marketing managers and the potential impact on market competitiveness, customer perception, and profitability.
For each question, ask your students to show their calculations, provide explanations, and justify their answers based on the given information and pricing concepts. Encourage them to think critically and consider the implications of different pricing strategies on the company's goals and market position.
Answers
1. Valmont Company should establish a selling price of $15,540 for the XP–200 using absorption cost-plus pricing.
2. The advantages mentioned are longer usage time, lower preventive maintenance costs, and lower electricity consumption.
3. If Valmont Company decides to use value-based pricing, they should consider the economic value provided to the customer and the pricing of the competitor's equipment.
4. Choosing between absorption cost-plus pricing and value-based pricing depends on various factors such as market competitiveness, customer perception, and profitability.
1. To calculate the selling price using absorption cost-plus pricing, we need to add a markup percentage to the absorption unit product cost. In this case, the absorption unit product cost is given as $8,400, and the markup percentage is 85%.
Markup = Markup percentage * Absorption unit product cost
Markup = 85% * $8,400
Markup = $7,140
Selling price = Absorption unit product cost + Markup
Selling price = $8,400 + $7,140
Selling price = $15,540
Therefore, Valmont Company should establish a selling price of $15,540 for the XP–200 using absorption cost-plus pricing.
2. To determine the economic value to the customer (EVC) over the XP–200's 20,000-hour life, we need to consider the advantages it offers compared to the competitor's equipment. The advantages mentioned are longer usage time, lower preventive maintenance costs, and lower electricity consumption.
EVC can be calculated by quantifying the monetary value of these advantages over the product's lifespan. Let's assume the following values:
Longer usage time: 5,000 additional hours compared to the competitor's equipment.
Lower preventive maintenance costs: $500 saved annually compared to the competitor's equipment.
Lower electricity consumption: $200 saved annually compared to the competitor's equipment.
EVC = (Additional usage time * Value per hour) + (Annual cost savings * Present value factor)
Using a discount rate of 10% and assuming the annual cost savings remain constant over the 20,000-hour life:
EVC = (5,000 hours * Value per hour) + ($500 * Present value factor) + ($200 * Present value factor) + ... (repeated for all 20 years)
3. If Valmont Company decides to use value-based pricing, they should consider the economic value provided to the customer and the pricing of the competitor's equipment. This involves determining a range of possible prices based on the additional value delivered by the XP–200 compared to the competitor's equipment.
To calculate the range of possible prices, you would need to assess the economic value of the XP–200 as determined in Question 2 and consider the pricing of the competitor's equipment. Without specific values and competitor pricing information, it's not possible to provide a precise range of prices.
However, Valmont Company should set the price within a range that captures a significant portion of the economic value delivered to the customer while remaining competitive in the market.
4. Choosing between absorption cost-plus pricing and value-based pricing depends on various factors such as market competitiveness, customer perception, and profitability. Here are some considerations for Valmont's managers:
Absorption cost-plus pricing:
Pros: This approach ensures that all costs, including fixed and variable costs, are covered. It provides a straightforward calculation for determining the selling price and ensures profitability.
Cons: It does not directly consider the economic value delivered to the customer or the pricing of the competitor's equipment. This approach may not reflect the true value of the XP–200 to customers, potentially leading to pricing that is not aligned with customer expectations or market conditions.
Value-based pricing:
Pros: This approach considers the economic value provided to the customer, allowing the price to be based on the perceived value rather than just the cost. It aligns the price with the customer's willingness to pay and can capture the full value delivered by the XP–200.
Cons: It may be more challenging to quantify and communicate the economic value to customers. Determining the optimal price range requires a thorough understanding of customer preferences, competitor pricing, and market dynamics.
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Use the following information to answer questions Skip to question [The following information applies to the questions displayed below.] The following information is available for Lock-Tite Company, which produces special-order security products and uses a job order costing system. April 30 May 31 Inventories Raw materials $ 43,000 $ 52,000 Work in process 10,200 21,300 Finished goods 63,000 35,600 Activities and information for May Raw materials purchases (paid with cash) 210,000 Factory payroll (paid with cash) 345,000 Factory overhead Indirect materials 15,000 Indirect labor 80,000 Other overhead costs 120,000 Sales (received in cash) 1,400,000 Predetermined overhead rate based on direct labor cost 70 %
Answers
Answer:
Missing word "a. Direct labor usage. b. Indirect labor usage. c. Total payroll paid in cash. Prepare journal entries for the above transactions for the month of May"
S/n General Journal Debit Credit
a Work in Process inventory $265,000
($345,000 - $80,000)
Factory wages payable $265,000
(To record for Direct labor usage)
b Factory overhead $80,000
Factory wages payable $80,000
(To record for Indirect labor usage)
c Factory wages payable $345,000
Cash $345,000
(To record for Total payroll paid in cash)
Define Interpersonal Intelligence.
Answers
Answer:
Interpersonal intelligence is a concept introduced by Howard Gardner as part of his theory of multiple intelligences. It refers to the ability to understand and interact effectively with other people. People who possess interpersonal intelligence are skilled at recognizing and understanding the emotions, motivations, and intentions of others. They are also able to communicate effectively and build strong relationships with others.
Explanation:
Listening, social intelligence, and effective communication are all elements of interpersonal intelligence. Effective leaders, teachers, and counsellors are frequently those with good interpersonal intelligence. They are capable of building a solid connection with others and earn their trust and respect. Emotional intelligence, which is increasingly acknowledged as a key component of both personal and professional success, includes interpersonal intelligence.
The capacity to comprehend and work well with others is referred to as interpersonal intelligence. Effective verbal and nonverbal communication, the capacity to recognize individual differences, and sensitivity to others' moods and temperaments.
How does one define intrapersonal intelligence?Intrapersonal intelligence is the ability to reflect on oneself, to be aware of one's own strengths and limitations, feelings, and mental processes—all of which go to make up one's own self-knowledge.
What role does interpersonal intelligence play?Being more interpersonally intelligent can help you communicate with others more effectively. It might enable you to make more sincere acquaintances or turn out to be a reliable source of emotional stability and support.
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why is it so important that the mouth and stomach are near the start of the digestive system
Answers
The process is important to finish the digestion and absorption once the foodstuff has been swallowed.
What is the digestive system?The organs aid in the body's foodstuff digestion and absorption helps compensate the digestive tracts. It is a lengthy, twisted tube with a mouth beginning and the withdrawal is with the help of the anus.
Saliva production happens inside the mouth. This salivary amylase molecule, which is found in charge of breaking down carbohydrates, is present in saliva. This is done with the help of the digestion the absorption of the various materials.
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HR 20% accident increase in the workforce
Answers
Answer:
car crash accident on the road with location pointer - car crash icon ... NOTE: Most of the vehicles associated with workplace MVC fatalities are “motorized land ...
Explanation:
the amount of an employees income that an employer sends directly to the federal state
Answers
The amount of an employees income that an employer sends directly to the federal state or local tax authority specific required deductions. Income taxes (federal and state), FICA taxes, and wage garnishments Garnishments, Roth IRA retirement plans, and charitable contributions are all post-tax deductions.
Life insurance, job-related expenses, and amount retirement plans are examples of voluntary deductions. Payroll withholdings, payroll taxes, benefit deductions, and wage garnishments are the most common types of payroll deductions. Payroll taxation: Payroll deductions for taxes are a common type. The employer deducts a certain amount from the employee's gross pay as tax. Unless an employee authorises the deduction, voluntary payroll deductions cannot be withheld from his or her pay check.
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designated research staff, bill stop staff, and claims processing staff use the coverage analysis to:
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In order to assure institutional billing compliance, a coverage analysis is a thorough examination of all the procedures described in the research protocol. It identifies how each service and/or operation at each visit time point should be paid.
Items or services required for reasonable and necessary care, including for the diagnosis or treatment of problems resulting from the supply of an experimental item or service "A research study in which one or more human subjects are prospectively assigned to one or more interventions4 (which may include a placebo or other control) to evaluate the effects of those interventions on health-related biomedical or behavioural outcomes," according to the definition given by the National Institutes of Health. Coverage describes the continual effort analysts do to evaluate and report on a company's operations and provide recommendations, such as "buy" or "sell." An rise in trading activity and investor interest typically occur at the same time as the start of coverage on a stock.
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Designated research staff, bill stop staff, and claims processing staff use the coverage analysis to identifies in the protocol
And on the study calendar the research-only services that are eligible for reimbursement and validates the routine services.
Option B is correct.
Coverage analysis:A Coverage Analysis is a systematic review of all study protocol procedures to determine how each service and/or procedure should be billed at each visit time point to ensure institutional compliance. During this process of making a decision, references to Medicare billing guidelines are made.
To guarantee accurate billing, it is essential to conduct a coverage analysis. A coverage analysis is a review to determine whether a research study is eligible for Medicare coverage and to outline the items and services that should be billed to Medicare as part of the study. The coverage analysis is an essential step in the process of activating the study and has the potential to save sites time, money, and their reputation in the long run.
Question is incomplete . Missing option are:
Designated research staff, bill stop staff, and claims processing staff use the coverage analysis to:
A. proper budget development
B.Validates the routine services and determines research only services in the protocol and on the study calendar for coverage in reimbursement.
C. Quickly review the first few patients' protocol visits after they have started the study.
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Answer the following questions about prepaid expenses:
a. On 1, Tree Service prepaid for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year.
b. On 1, Tree Service paid for supplies. At 31, has of supplies on hand. Make the required journal entry at 31. Then post all amounts to the accounts and show their balances at 31. Assume no beginning balance in supplies.
c. On 1, Tree Service prepaid for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year. Prepare the adjusting journal entry to record the rent expense at 31.
Answers
Answer:
the numbers are missing, so I looked for a similar question:
a. On 1, Tree Service prepaid $7,200 for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year.
Dr Rent expense 1,200 (= $7,200 / 6)
Cr Prepaid rent 1,200
Balances:
Prepaid rent 6,000
Rent expense 1,200
b. On 1, Tree Service paid $1,050 for supplies. At 31, has $400 of supplies on hand. Make the required journal entry at 31. Then post all amounts to the accounts and show their balances at 31. Assume no beginning balance in supplies.
Dr Supplies expense 650 (= $1,050 - $400)
Cr Supplies 650
Balances:
Supplies 400
Supplies expense 650
c. On 1, Tree Service prepaid for six months' rent. Give the adjusting entry to record rent expense at Include the date of the entry and an explanation. Then post all amounts to the two accounts involved, and show their balances at adjusts the accounts only at 31, the end of its fiscal year. Prepare the adjusting journal entry to record the rent expense at 31.
SAME AS QUESTION A
Chin needs more money in his net pay each month, so he plans to reduce his federal income tax deduction from 12% to 11%. His monthly gross pay is $3,500, and his deductions before the change are listed in the table.
Deduction
Dollar Amount
Federal Income Tax
$420
State Income Tax
$95
Social Security
$89
Medicare
$40
What will be his new monthly net pay? Round your answer to the nearest dollar.
$2821
$2857
$2860
$2891
Answers
Answer:
$2891
Explanation:
If chine reduces his federal income deductions from 12% to 11%, the new federal income tax will be as below.
11% of $3500
= 11/100 x 3500
=0.11 x 3500
=$385.
Total deductions after this change will be
=$385 + $95 + $89 + $40
=$609
Net pay
=$3500- $609
=$2,891
Answer:
D
Explanation:
just took test
what is the purpose of the accounting debit and credit system
Answers
Explanation:
to make sure that both are balanced
If the economy is in an expansionary period, appropriate policies to pursue may include: Group of answer choices an income tax cut that shifts the AD curve to the right. consumer investment incentives that shift the AD curve to the right business investment incentives that shift the AD curve to the left. a reduction in government spending that shifts the AD curve to the left.
Answers
Answer:
curve to the right business investment incentives
Mutiyara Berhad is interested in measuring its overall cost of capital. Current investigation has gathered the following data. The firm is in the 40% tax bracket.
Mutiyara Berhad can raise debt by selling RM1000 par value, 8% coupon interest rate, 20 years bonds on which annual interest payments will be made. to sell the issue, an average discount of RM30 per bond would have to be given. The firm also must pay floatation cost of RM30 per bond.
The firm can sell 8% preferred stock at its RM95 per share par value. The cost of issuing and selling the preferred stock is expected to be RM5 per share. Preferred stock can be sold under these terms.
The firm’s common stock is currently selling for RM90 per share. The firm expects to pay cash dividends of RM7 per share next year. The firm’s dividends have been growing at annual rate of 6%, and this growth expected to continue into the future. The stock must be underpriced by RM7 per share, and the floatation costs are expected to amount to RM5 per share. The firm can sell new common stock under these terms.
When measuring this cost, the firm does not concern itself with the tax bracket or brokerage fees of owners. It expects to have available RM100,000 of retained earnings in the coming year; once these retained earnings are exhausted, the firm will use new communication stock as the form of common stock equity financing.
a) Calculate the after-tax cost of debt
b)Calculate the cost of preferred stock
c) Calculate the cost of new common stock.
d)Calculate the firm’s weighted average cost of capital using retained earnings and the capital structure weights shown in the table above.
Answers
a) The after-tax cost of debt is 5.18%
b) The cost of preferred stock is 8.44%
c) The cost of new common stock is 14.97%.
d)The firm’s weighted average cost of capital using retained earnings and the capital structure weights shown in the table is 10.73%.
What is cost of debt?The effective interest rate that a company pays on its debts, such as bonds and loans, is referred to as the cost of debt. The cost of debt can refer to either the before-tax cost of debt (the company's cost of debt before taxes) or the after-tax cost of debt
A company's preferred stock cost is effectively the price it pays in exchange for the income generated by issuing and selling the stock. In other words, it is the amount of money paid out by the company in a year divided by the lump sum received from issuing the stock.
The weighted average cost of capital (WACC) of a company is the amount of money it must pay to finance its operation
The calculations for the sum is attached below.
Therefore, the firm's after-tax cost of debt, cost of preferred stock, cost of new common stock, and weighted average cost is calculated.
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Find the interest rate, I, on a given security that costs $100 and that will return $150 after 10 years.
Answers
Answer:
Rate = 6.666%
Explanation:
First, the formula of the simple interest rate is:
R = I/PT x 100%
Put in the numbers:
R = $100/($150 x 10 years) x 100%
Then calculate:
R = $100/$1500 x 100%
R = 100/15%
R = 6.666%
The Equinox Fabrication Plant suffered a fire incident in August, and most of the records for the year were destroyed. The following accounting data for the year were recovered: Total manufacturing overhead estimated at the beginning of the year Total direct labor costs estimated at the beginning of the year Total direct labor hours estimated at the beginning of the year direct labor hours Actual manufacturing overhead costs for the year Actual direct labor costs for the year Actual direct labor hours for the year direct labor hours The company bases its manufacturing overhead allocation on the number of direct labor hours. What was the predetermined overhead allocation rate for the year? (Round your answer to the nearest cent.
Answers
The predetermined overhead allocation rate for the year is $29.40
The predetermined overhead allocation rate is referred to as the allocation rate that is used in the application of the estimated cost of manufacturing overhead to the job orders or products.
From the complete question, the predetermined overhead allocation rate will be calculated thus:
= Estimated manufacturing overhead / Estimated direct labor hours
= $105840 / 3600
= $29.40
Therefore, the predetermined overhead allocation rate is $29.40.
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Consider the following scenario. If foreign goods are relatively more expensive than U.S. goods, exports from the U.S. rise. How would this scenario make the aggregate demand curve change? a. The AD curve would shift to the left.
b. The AD curve would remain unchanged.
c. The AD curve would shift to the right.
Answers
The AD curve would shift to the left this scenario make the aggregate demand curve change. (OPTION A) As a result, the quantity demanded at a given price can be larger or lower.
If a good is a normal good, a decline in income, a decrease in the price of a substitute, and a rise in the price of a complement can all result in a decrease in demand and a shift to the left of the demand curve. A shift in consumer preference to buy a specific good or service, regardless of a change in price, is referred to as a change in demand. A change in customer preferences or income levels may be the cause of the change.
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Which business is exempt from using the accrual basis for accounting? A clothing manufacturer that has average gross annual receipts of $35 million over the last three years. An online retailer that has average gross annual receipts of $45 million over the last three years. A construction contractor who does not have any outstanding accounts receivable at the end of the tax year. A home improvement store that just began business last year and had $2.7 million in gross receipts.
Answers
Answer:
A home improvement store that just began business last year and had $2.7 million in gross receipts.
Explanation:
The IRS allows only a limited number of businesses to use cash basis accounting and in order to do so, the business must be:
Partnership or C corporation with less than $5 million in total sales revenue per yearSole proprietorship or S corporation with less than $1 million in total sales revenueCannot be a publicly traded corporationPersonal service businesses with more than 95% of revenue specifically related to services. Family owned farms with total annual sales revenue less than $25 million.Ms. Tanja Umstead is 46 years old and lives in Richmond, British Columbia. She is in good health
and works in the sales department of a large publicly traded company.
Employment Information
1. Tanja's 2022 salary is $93,500. In addition, she was awarded a year-end bonus of $12,000, all
of which is payable in January 2023.
2.
Tanja's employer sponsors a defined benefit RPP. In 2022, Tanja and her employer each
contribute $4,150 to the plan. In addition, her employer withheld maximum El contributions of
$953 and maximum CPP contributions of $3,500.
3. Her employer offers to pay the tuition for employees taking foreign language courses. Tanja is
taking an intensive course in spoken Chinese at a British Columbia university. The course is
a course of personal interest and is not related to Tanja's employment. The tuition fee for the
course is $3,600, all of which is paid for by her employer. The duration of the course is eight
months.
4. Tanja is provided with disability insurance by an employer-sponsored plan. In 2022, as a
consequence of an automobile accident, she was unable to go to work for one month and
receives benefits of $6,500. Starting in 2020, Tanja has contributed $340 per year for the plan's
coverage. Her employer made a matching contribution in each year.
5. Tanja's employer provides her with an automobile that was purchased several years ago at
a cost of $39,500. In 2022, the car is driven 41,000 kilometres, 34,000 of which were for
employment purposes and 7,000 for personal use. Tanja is required to pay her own operating
costs, which for 2022 totalled $7,240. Except for the one month that she was off from work,
the car was available to Tanja throughout the year. During the one month that she was off, the
car was left in her employer's garage as required by her employer's policy.
6.
Tanja's employer provides all of its employees with financial counselling services. The cost to
the company of the services provided to Tanja was $450.
7.
As a result of winning a sales contest, Tanja received a one-week trip to Las Vegas. The value
of this trip in Canadian dollars was $5,620.
8.
In 2020, Tanja received options to acquire 250 shares of her employer's common stock at a
price of $25 per share. When the options were granted, the shares were trading at $25 per
share. In 2022, Tanja exercises all of the options. On the exercise date, the shares are trading
at $32 per share. Tanja still owns the shares on December 31, 2022.
Required: Calculate Tanja's 2022 minimum taxable income
Ignore any GST/HST & PST considerations.
Answers
From the information given about 46 year old Ms Tanja, her minimum taxable income for 2022 will be $85,877.
Determining the minimum taxable incomeFirst consider various sources of income and deductions. In steps:
Employment Income:
Salary: $93,500Year-end bonus: $12,000Registered Pension Plan (RPP) Contributions:
Tanja's contribution to RPP: $4,150Employer's contribution to RPP: $4,150Employment Insurance (EI) Contributions:
Maximum EI contributions withheld by the employer: $953Canada Pension Plan (CPP) Contributions:
Maximum CPP contributions withheld by the employer: $3,500Employer-Paid Tuition Fees:
Tuition fee for the Chinese language course: $3,600Disability Insurance Benefits:
Benefits received due to the automobile accident: $6,500Employee Contributions to Disability Insurance:
Annual contribution to the plan: $340Automobile Usage:
Employment-related kilometers driven: 34,000Personal use kilometers driven: 7,000Operating costs: $7,240Financial Counselling Services:
Cost of services provided by the employer: $450Sales Contest Prize:
Value of the Las Vegas trip: $5,620Stock Options:
Options granted to acquire 250 shares at $25 per shareExercise of options when shares were trading at $32 per shareTo calculate the taxable income, this can be done in three stages.
First Calculate Gross Income:
Employment Income:
Salary: $93,500Year-end bonus: $12,000Total Employment Income: $105,500RPP Contributions:
Tanja's contribution: $4,150
Employer's contribution: $4,150
Total RPP Contributions: $8,300
EI Contributions:
Maximum EI contributions withheld: $953
CPP Contributions:
Maximum CPP contributions withheld: $3,500Gross Income: $105,500 + $8,300 - $953 - $3,500 = $109,347Secondly, Calculate Employment-Related Automobile Benefit:
Determine the standby charge:
Cost of the automobile: $39,500Standby charge rate (based on the cost): 2% per monthNumber of months the car was available to Tanja: 12 monthsStandby Charge: ($39,500 × 2%) × 12 = $9,480
Determine the operating cost benefit:
Operating costs paid by Tanja: $7,240
Personal use percentage: 7,000 / 41,000 = 17.07%
Operating Cost Benefit: $7,240 × 17.07% = $1,237
Total Automobile Benefit: Standby Charge + Operating Cost Benefit = $9,480 + $1,237 = $10,717
Thirdly, Calculate Taxable Income:
Gross Income - RPP Contributions - EI Contributions - CPP Contributions - Automobile Benefit = Taxable Income
$109,347 - $8,300 - $953 - $3,500 - $10,717 = $85,877
Therefore, Tanja's minimum taxable income for 2022 is $85,877.
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Using activity-based costing to make decisions
Dino Dog Collars uses activity-based costing. Dino's system has the following features:
Predetermined Overhead
Activity
Allocation Base
Allocation Rate
Purchasing Number of purchase orders $ 65.00 per purchase order
Assembling Number of parts
0.36 per part
Packaging Number of finished collars
0.25 per collar
Each collar has four parts, direct materials cost is $9.00 per collar, and direct labor cost
is $4.00 per collar. Suppose Animal Hut has asked for a bid on 25,000 dog collars. Dino
will issue a total of 150 purchase orders if Animal Hut accepts Dino's bid.
Requirements
1. Compute the total estimated cost Dino will incur to purchase the needed materials
and then assemble and package 25,000 dog collars. Also compute the cost per collar.
2. For bidding, Dino adds a 40% markup to total cost. What total price will the
company bid for the entire Animal Hut order?
3. Suppose that instead of an ABC system, Dino has a traditional product costing
system that allocates indirect costs at the rate of $9.60 per direct labor hour. The dog
collar order will require 12,000 direct labor hours. What total price will Dino bid using
this system's total cost?
4. Use your answers to Requirements 2 and 3 to explain how ABC can help Dino
make a better decision about the bid price it will offer Animal Hut.
Answers
Dino Dog Collars calculates the cost of producing 25,000 dog collars using activity-based costing. The total estimated cost, cost per collar, and bid price are calculated with a 40% markup.
What is the importance of ABC to management decision making?ABC is an accounting methodology that assigns indirect costs to products or services based on the activities that generate those costs. Unlike traditional costing methods, which allocate indirect costs based on a single cost driver, ABC allocates costs based on multiple cost drivers, providing a more accurate picture of a product's or service's true cost. ABC's value to management decision making stems from its ability to provide more accurate and relevant cost information. Managers can use ABC to determine which activities are causing costs, where inefficiencies exist, and how to optimise processes to reduce costs and increase profitability. ABC assists managers in making informed pricing decisions by providing a better understanding of the true cost of products and services.
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in the bee movie what is one positive work characteristic that barry possessed that you could use to achieve your career goals
Answers
Answer:
I believe that Barry went for his dreams to be a Police Officer even though he was a smaller bee he still went for his dreams no matter how much someone told him he couldn't do it. To achieve my career goal I would do what I want to do and not let anyone tell me I can not do it.
Explanation:
I believe that Barry went for his dreams to be a Police Officer even though he was a smaller bee he still went for his dreams no matter how much someone told him he couldn't do it.
What is the theme of movie?The "Bee Movie" is about a bee named Barry. Barry B. Benson in full. Barry is a newly graduated college student. After being graduated he looks for a job prospect at Honex. Honex is the factory in the movie where honey is being produced. Barry, along with his best buddy Adam Flayman flies to Honex touring the workplace.
The first challenge that he is faced with is Pollen Jock. Pollen Jock was the work profile for which Barry was chosen. This job involves risk as bees have to go out of the hive and pollinate the flowers. They are also required to collect the nectar and bring it to the hive. Barry agrees for this mission.
Therefore, I believe that Barry went for his dreams to be a Police Officer even though he was a smaller bee he still went for his dreams no matter how much someone told him he couldn't do it.
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A 10-year bond paying 8% annual coupons pays $1000 at maturity. If the required rate of return on the bond is 7%, then today the bond will sell (rounded to the nearest cent) for
Answers
Answer:
Bond Price = $1070.235815 rounded off to $1070.24
Explanation:
To calculate the price of the bond today, we will use the formula for the price of the bond. We assume that the interest rate provided is stated in annual terms. As the bond is an annual bond, the coupon payment, number of periods and annual YTM will be,
Coupon Payment (C) = 1000 * 0.08 = 80
Total periods (n)= 10
r or YTM = 7%
The formula to calculate the price of the bonds today is attached.
Bond Price = 80 * [( 1 - (1+0.07)^-10) / 0.07] + 1000 / (1+0.07)^10
Bond Price = $1070.235815 rounded off to $1070.24
I have paid off my mortgage and will now be responsible to pay my insurance premium. Please send all invoices directly to me now. Also, I would like to split the payments into the smallest increments possible. Please let me know what my best option is for reducing my payment amount. What type of payment plan would be given?
Answers
The type of payment plan would be given to the customer is installment method where accounting is easier to record transaction.
To split payments there are various methods that are approached in the accounting process and are very helpful but the most helpful method is the installment method which make both debtor and creditor in a profitable relationship.
Installment method helps to record transactions with ease and remember the payment amount with each approached premium to be paid in the form of cash or credit.
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Mason (single) is a 50 percent shareholder in Angels Corporation (an S Corporation). Mason receives a $180,000 salary working full time for Angels Corporation. Angels Corporation reported $400,000 of taxable business income for the year (2022). Before considering his business income allocation from Angels and the self-employment tax deduction (if any), Mason's adjusted gross income is $180,000 (all salary from Angels Corporation). Mason claims $50,000 in itemized deductions. Answer the following questions for Mason.
b. Assuming the business income allocated to Mason is income from a specified service trade or business, what is Mason's deduction for qualified business income? Ignore the wage-based limitation when computing the deduction.
Assume the same facts as question (b), except that Angels Corporation reported $150,000 of taxable business income for the year. What is Mason's deduction for qualified business income? Ignore the wage-based limitation when computing the deduction.
Answers
Mason is from a specified service trade or business, his deduction for qualified business income would be $40,000 when Angels Corporation reported $400,000 of taxable business income.
b. Since Mason is a 50 percent shareholder in Angels Corporation, he is eligible for a deduction for qualified business income (QBI) based on his share of the corporation's income. In this case, assuming the business income allocated to Mason is income from a specified service trade or business, his QBI deduction would be 20 percent of the allocated business income.
Given that Angels Corporation reported $400,000 of taxable business income for the year, Mason's share of that income would be $200,000 (50 percent of $400,000). Therefore, his deduction for qualified business income would be $40,000 (20 percent of $200,000).
Assuming the same facts as in question (b), but with Angels Corporation reporting $150,000 of taxable business income for the year, Mason's share of that income would be $75,000 (50 percent of $150,000). Thus, his deduction for qualified business income would be $15,000 (20 percent of $75,000).
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Where to write the account name? *
a)At the bottom of T account
b)At the top of T account
c)In the debit side
d)In the credit side
Answers
Answer:
b)At the top of T account
Explanation:
The account name is always written at the top of a T account. The account name is also the account title.
A T account has a standard format. The title or the name is what differentiates them.
The Vaughn Inc., a manufacturer of low-sugar, low-sodium, low-cholesterol TV dinners, would like to increase its market share in the Sunbelt. In order to do so, Vaughn has decided to locate a new factory in the Panama City area. Vaughn will either buy or lease a site depending upon which is more advantageous. The site location committee has narrowed down the available sites to the following three very similar buildings that will meet their needs.
Building A: Purchase for a cash price of $615,000, useful life 28 years.
Building B: Lease for 28 years with annual lease payments of $71,570 being made at the beginning of the year.
Building C: Purchase for $659,900 cash. This building is larger than needed; however, the excess space can be sublet for 28 years at a net annual rental of $6,870. Rental payments will be received at the end of each year. The Vaughn Inc. has no aversion to being a landlord.
Required:
In which building would you recommend that Brubaker Inc. locate, assuming a 12% cost of funds?
Answers
Answer:
The new factory should be located in building C.
Explanation:
This can be determined by comparing the present values of the cost of the three buildings and select the one with the lowest.
Building A: Purchase for a cash price of $615,000, useful life 28 years.
Present value of cost of building A = Cost of building A = $615,000
Building B: Lease for 28 years with annual lease payments of $71,570 being made at the beginning of the year.
Since the payments are to be made are the beginning of the year, the present value of the cost of the building can be calculated using the formula for calculating the present value (PV) of annuity due given as follows:
PV of B = P * ((1 - (1 / (1 + r))^n) / r) * (1 + r) .................................. (1)
Where ;
PV of B = Present value of the cost of building B = ?
P = Annual lease payments = $71,570
r = interest rate or cost of funds = 12%, or 0.12
n = number of years = 28
Substituting the values into equation (1) above, we have:
PV of B = $71,570 * ((1 - (1 / (1 + 0.12))^28) / 0.12) * (1 + 0.12)
PV of B = $640,018.55
Present value of the cost of building B = $640,018.55
Building C: Purchase for $659,900 cash. This building is larger than needed; however, the excess space can be sublet for 28 years at a net annual rental of $6,870. Rental payments will be received at the end of each year. The Vaughn Inc. has no aversion to being a landlord.
Cost of building C =$659,900
Since the annual rental from the sublet will be received at the end of each, the present value of the sublet can be calculated using the formula for calculating the present value of an ordinary annuity as follows:
PV of sublet = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (2)
Where;
PV of sublet = Present value of the annual rental from the sublet = ?
P = Annuity rental from the sublet = $6,870
r = interest rate or cost of funds = 12%, or 0.12
n = number of years = 28
Substituting the values into equation (2) above, we have:
PV of sublet = $6,870 * ((1 - (1 / (1 + 0.12))^28) / 0.12)
PV of sublet = $54,852.98
Present value of the cost of building C = Cost of building C - PV of sublet = $659,900 - $54,852.98 = $605,047.02
Conclusion
From the calculations above, we have the following:
Present value of cost of building A = $615,000
Present value of the cost of building B = $640,018.55
Present value of the cost of building C = $605,047.02
Since $605,047.02 which is the present value of the cost of building C is the lowest, the new factory should be located in building C.
A stock has an average return of 13.6% and a standard deviation of 8.4%. In any one given year, you have a 95% chance that you will not lose more than _____% nor earn more than ____% if you invest in this security.
a. 5.2% to 22.0%.
b. 3.2% to 30.4%.
c. 3.2% to 30.4%.
d. 5.2% to 22.0%.
e. 13.6% to 38.8%.
Answers
Answer:
options B and C are identical, and they are both right.
b. 3.2% to 30.4%. c. 3.2% to 30.4%.you have a 95% chance that you will not lose more than 3.2% nor earn more than 30.4% if you invest in this security.
Explanation:
a 95% confidence level represents approximately 2 standard deviations, so the stock could lose up to 13.6% - (2 x 8.4%) = -3.2% in the worse case scenario. You should also be able to earn 13.6% + (2 x 8.4%) = 30.4% in the best case scenario.
most of a distribution manager's decisions must balance cost reduction against which other benefit?
Answers
Answer: Superior customer service
Explanation:
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What is market segmentation in marketing with example?
Answers
Market segmentation, in marketing, is the division of a broad target market into more focused groups based on shared characteristics, tendencies, requirements, or preferences.
Market segmentation in marketing with example.In marketing, market segmentation refers to the process of breaking up a large target market into more narrowly defined segments based on shared traits, tendencies, needs, or preferences. Identification of various market segments is necessary in order to target them with specialized marketing techniques and messages.
Think about a business that sells athletic shoes. They choose to use market segmentation to find particular segments with varied wants and preferences when it comes to athletic shoes rather of targeting the full market of potential clients.
The corporation can effectively target these niche markets with goods and advertising messages that speak to their particular needs and preferences by using market segmentation. Their chances of succeeding in the market are eventually increased by being able to customize their product offers, pricing, promotional techniques, and distribution networks to each segment.
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What are some solutions for schools to fix the problem of too much work/homework given by teachers
Answers
they could give out less homework
give out weekly packets instead of a lot of daily work
only do necessary work
do more work in class
give homework every 2 weeks
or stop giving homework all together