Master Business with Fun Quizzes & Brain Teasers!
Tandy Company was issued a charter by the state of Indiana on January 15 of this year. The charter authorized the following: Common stock, $6 par value, 120,000 shares authorized Preferred stock, 11 percent, par value $13 per share, 5,000 shares authorized During the year, the following transactions took place in the order presented: a. Sold and issued 21,900 shares of common stock at $26 cash per share. b. Sold and issued 2,800 shares of preferred stock at $30 cash per share. c. At the end of the year, the accounts showed net income of $41,600. No dividends were declared.Required:Prepare the stockholders equity section of the balance sheet at the end of the year.
Here's the revenue and expenses for the month. Calculate whether Mia had a profit or loss.MAY ACCOUNTSCHECKING$860.00REVENUEFIXED EXPENSESVARIABLE EXPENSESCARD PURCHASE$300SAVINGS$1,006.68DOG FOODCAT FOODPET TREATSPET SUPPLIES$3,650$2,850$1,650$1,800RENT$2,000SALARIES$2,000UTILITIES$1,000PRODUCT STOCK $4,000TOTAL$9,950TOTAL$9,000TOTAL$300ENTER MIA'S TOTAL PROFIT/LOSS FOR THE MONTH IN THE BOX BELOW, THEN CLICK SUBMIT.$SUMIT
The inventory on hand at the end of 2019 for Reddall Company is valued at a cost of $94,000. The following items were not included in this inventory: 1. Purchased goods in transit, under terms FOB shipping point, invoice price $4,200, freight costs $200. 2. Goods out on consignment to Marlman Company, sales price $5,600, shipping costs of $200. 3. Goods sold to Grina Co. under terms FOB destination, invoiced for $1,900 which included $178 freight charges to deliver the goods. Goods are in transit. 4. Goods held on consignment by Reddall at a sales price of $2,700 which included sales commission of 20% of sales price. 5. Purchased goods in transit, shipped FOB destination, invoice price $2,100 which included freight charges of $190.Required:Determine the cost of the ending inventory that Reddall should report on its December 31, 2016, balance sheet, assuming that its selling price is 140% of the cost of the inventory.
Here's the revenue and expenses for the month. Calculate whether Mia had a profit or loss.MAY ACCOUNTSREVENUEFIXED EXPENSESVARIABLE EXPENSESCARD PURCHASE $300DOG FOODCAT FOODPET TREATSPET SUPPLIES$3,650$2,850$1,650$1,800RENT$2,000SALARIES$2,000UTILITIES$1,000PRODUCT STOCK $4,000TOTAL$9,950TOTAL$9,000TOTAL$300ENTER MIA'S TOTAL PROFIT/LOSS FOR THE MONTH IN THE BOX BELOW, THEN CLICK SUBMIT.$1 XSUBMIT
High Tech Manufacturing manufactures 256GB SD cards (memory cards for mobile phones, digital cameras, and other devices). Price and cost data for a relevant range extending to 200,000 units per month are as follows: Sales price per unit: (current monthly sales volume is 120,000 units) $25Variable costs per unit: Direct materials 6.60Direct labor 7.70Variable manufacturing overhead 2.40 Variable selling and administrative expenses 1.90Monthly fixed expenses: Fixed manufacturing overhead 241,900Fixed selling and administrative expenses 327,900Required: a. What is the company's contribution margin per unit? Contribution margin percentage? Total contribution margin? b. What would the company's monthly operating income be if the company sold 160,000 units? c. What would the company's monthly operating income be if the company had sales of d. What is the breakeven point in units? In sales dollars? e. How many units would the company have to sell to earn a target monthly profit of $260,100? f. Management is currently in contract negotiations with the labor union. If the negotiations fail, direct labor costs will increase by 10% and fixed costs will increase by S22,500 per month. If these costs increase, how many units will the company have to sell each month to break even? g. Return to the original data for this question and the rest of the questions. What is the company's current operating leverage factor (round to two decimals)? h. If sales volume increases by 7%, by what percentage will operating income increase? i. What is the company's current margin of safety in sales dollars? What is its margin of safety as a percentage of sales?
World Company expects to operate at 80% of its productive capacity of 67,500 units per month. At this planned level, the company expects to use 32,400 standard hours of direct labor. Overhead is allocated to products using a predetermined standard rate of 0.600 direct labor hour per unit. At the 80% capacity level, the total budgeted cost includes $68,040 fixed overhead cost and $408,240 variable overhead cost. In the current month, the company incurred $472,000 actual overhead and 29,400 actual labor hours while producing 51,000 units. Required:a. Compute the overhead volume variance. b. Compute the overhead controllable variance.
Mortar Corporation acquired 80 percent ownership of Granite Company on January 1, 20X7, for $173,000. At that date, the fair value of the noncontrolling interest was $43,250. The trial balances for the two companies on December 31, 20X7, included the following amounts:Item Mortar Corporation Granite Company Debit Credit Debit CreditCash $38,000 $25,000 Accounts Receivable 50,000 55,000 Inventory 240,000 100,000 Land 80,000 20,000 Buildings and Equipment 500,000 150,000 Investment in Granite Company Stock 202,000 Cost of Goods Sold 500,000 250,000 Depreciation Expense 25,000 15,000 Other Expenses 75,000 75,000 Dividends Declared 50,000 20,000 Accumulated Depreciation $155,000 $75,000 Accounts Payable 70,000 35,000Mortgages Payable 200,000 50,000Common Stock 300,000 50,000Retained Earnings 290,000 100,00Sales 700,000 400,00Income from Subsidiary 45,000 $1,760,000 $1,760,000 $710,000 $710,000 Additional Information: a. On January 1, 20X7, Granite reported net assets with a book value of $150,000 and a fair value of $191,250. b. Accumulated depreciation on Buildings and Equipment was $60,000 on the acquisition date. c. Granite's depreciable assets had an estimated economic life of 11 years on the date of combination. d. The difference between fair value and book value of Granite's net assets is related entirely to buildings and equipment. Required:Give all journal entries recorded by Mortar related to its investment in Granite during 20X7.
During its first year of operations, Drone Zone Corporation (DZC) bought goods from a manufacturer on account at a cost of $55,000. DZC returned $8,500 of this merchandise to the manufacturer for credit on its account. DZC then sold $43,000 of the remaining goods at a selling price of $69,600. DZC records sales returns as they occur and then records estimated additional returns at year-end. During the year, customers returned goods that had been sold at a price of $7,300. These goods were in perfect condition, so they were put back into DZCs inventory at their cost of $4,500. At year-end, DZC estimated $9,510 of current year merchandise sales would be returned to DZC in the following year; DZC estimates $5,800 as its cost of this merchandise.Required:Prepare journal entries to record DZC's transactions and estimates, assuming DZC uses a perpetual inventory system.