By the end of December, Jackson Company has completed work of $2,000. Jackson company has neither billed the clients nor recorded any of the revenue. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on: (a) Income statement accounts (overstated, understated, or no effect)? (b) Net income (overstated, understated, or no effect)? (c) Balance sheet accounts (overstated, understated, or no effect)?
Answers
Answer:
(A) sales revenue: understated
gross profit: understated
(B) net income: understated
(C) Retained Earnings : understated
Unearned Services: overstated
Explanation:
(A) sales revenue will not represent the real sales attributable for the period. It will be 2,000 lower than it should be.
Ths will make gross profit be understated as well as is the difference between the sales and the COGS
(B) net income is understated as it do not include a revenue for 2,000 thus, is lower.
(C) unearned services is overstated has it should decrease by 2,000
RE is understate as will increase by the 2,00 additional net income.
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Labor 1.5 hours @ $15.00 per hour
1. What was Glass Vessel’s flexible budget variance for materials in March? (As part of your answer, please indicate whether this variance was favorable or unfavorable.)
2. What was Glass Vessel’s labor efficiency/usage variance for March? (As part of your answer, indicate whether this variance was favorable or unfavorable.)
Must show work
Answers
Answer:
(i) -62.5 (Unfavorable)
(ii) -450 (Unfavorable).
Explanation:
(1) Material variance:
Material cost variance is the difference between standard cost for actual output produced and the actual cost of materials.
Material cost variance = (SQ × SP) – (AQ × AP)
Where SQ = Standard quantity for actual output, AQ = Actual quantity, SP = Standard Price and AP = Actual price.
This material cost variance can be subdivided into material price variance and material usage variance.
Material price variance = AQ × (SP – AP)
Material usage variance = SP (SQ - AQ)
In the problem, it is given that materials 2 pounds @ 1.25 per pound.
Therefore, SP = $1.25 and SQ per unit = 2 pounds.
It is given that Glass vessel produced 300 vases using 650 pounds of material.
Therefore, AQ = 650 pounds and actual output = 300 vases.
Therefore SQ for actual output:
= (SQ per unit) × (Actual output)
= (2 pounds) × (300 vases)
= 600 pounds.
It is given that Glass vessel purchased 650 pounds of material for $845.
Therefore Actual price = $845 ÷ 650 pounds
= $ 1.3
SP = $1.25 and AP = $1.3
SQ = 600 pounds and AQ = 650 pounds.
Material cost variance = (SQ × SP) – (AQ × AP)
Material price variance = AQ × (SP – AP)
Material usage variance = SP × (SQ-AQ)
Material cost variance (MCV):
= (600 × 1.25) – (650 × 1.3)
= -95 (Unfavorable)
Material price variance (MPV):
= 650 × (1.25 – 1.3)
= -32.5 (Unfavorable)
Material usage variance (MUV):
= 1.25 (600-650)
= -62.5 (Unfavorable)
Verification:
MCV = MPV + MUV
= (-32.5) + (-62.5)
= -95.
(2) Labor variances:
Labor cost variance is the difference between standard labor cost and the actual cost.
Labor cost variance = (SH × SR) – (AH × AR)
Where SH = Standard hours for actual output, AH = Actual hours, SR = Standard rate and AR = Actual rate.
Labor cost variance can be subdivided into Labor rate variance and Labor efficiency variance.
Labor rate variance = AH × (SR-AR)
Labor efficiency variance = SR × (SH – AH)
It is given that Labor 1.5 hours @ $15 per hour is the standard.
Therefore, SR = $15 and SH per unit = 1.5 hours.
SH for actual output = SH per unit × actual output
= 1.5 × 300
= 450 hours.
It is given that the actual total labor costs for March were $7200, which entailed 480 hours of labor.
Therefore, AH = 480 hours.
AR = Labor cost ÷ labor hours
= 7,200 ÷ 480
= $15.
SH = 450 hours, AH = 480 hours, SR = $15 and AR = $15.
Here, standard rate and actual rate are same. Therefore the labor rate variance is NIL. So the entire labor variance will come under labor efficiency variance.
Labor cost variance = (SH × SR) – (AH × AR)
Labor rate variance = AH × (SR-AR)
Labor efficiency variance = SR × (SH – AH)
Labor cost variance = (450 × 15) – (480 × 15)
= -450 (Unfavorable)
Labor rate variance = 480 × (15-15)
= 0
Labor efficiency variance = 15 × (450 - 480)
= -450 (Unfavorable).
Answers
Answer:
1. $67,500
2. $69,500
3. $69,500
Explanation:
1. The computation of bad debt expense is shown below:-
Bad debt expense = Credit sales × Debt percentage
= $4,500,000 × 1.5%
= $67,500
2. The computation of receivable written off is shown below:-
receivable written off = Allowance Beginning balance + bad debt expense - Allowance ending balance
= $42,000 + $67,500 - $40,000
= $69,500
3. The computation of bad debt expense be for 2013 is shown below:-
= receivable written off
= $69,500
Answers
Answer:
It will deposit $ 10,082.68 per yearto fund their children tuiton
Explanation:
We calculate the present value of the tuiton:
We must notice payment are made atthe beginning of the year. So this will be an annuity-due
C 40,000 per year
time 4 year
rate 7% = 7/100 = 0.07
PV $144,972.6418
we round to 144,972.64
Then, we have two children and we stop the payment when the oldest children goes into college.
so one tuiton must be carryied two years into the future:
Principal $144,972.64
time 2 years
rate 0.07000
Amount 165,979.18
We add both to get the total value of our fund:
144,972.64 + 165,979.18 = 310,951.82 = 310,952
Finally we calculate the couta of this annuity for 17 years
PV $310,952.00
time 17 years
rate 7% = 0.07
C $ 10,082.68
Based o the fact that there are two children involved and the annual savings have to be uniform, the annual amount to fund your children's education will be $10,808.
How much should you deposit yearly?
The amount needed for both children is:
= 2 students x ( College expenses x Present value factor for Annuity due, 7%, 4 years)
= 2 x (40,000 x 3.6243)
= $271,597
This is the total amount to be saved so the amount to be saved yearly is:
271,597 = Amount x ( ( 1 + 7%)¹⁵ - 1) / 7%
Amount = 271,597 / 25.1290
= $10,808
Find out more on annuities at brainly.com/question/5303391.
Answers
Answer:
Equilibrium Price (Ep) = 20
Equilibrium quantity (Eq) = 100
Explanation:
Missing information
Qs = 5P
Qd = 120 - P
The equilibrium is where quantity supplied matches quantity demanded.
Qs= Qd
5P = 120 - P
5p + P = 120
6P = 120
P = 20
Then we solve for quantity:
Notice, we should get the same answer in both equation, else is wrong.
Qs = 5 x P = 5 x 20 = 100
Qd = 120 - P = 120 - 20 = 100
They match so our answer are correct.
Ie get different value, first; we check the math and if keeping getting different values we should redo the calculation for price.
B) The employer must reemploy Edward with the same seniority and status he would have earned if his employment had not been interrupted.
C) The employer must reemploy Edward but is exempted from providing him any fringe benefits or retirement benefits.
D) The employer must implement an early retirement incentive program for Edward.
E) The employer must reemploy Edward with a lower pay scale to compensate for his absence.
Answers
Answer:
The corrwct option is B
Explanation:
The USERRA is a federal statute that protects servicemen and veterans civilian employment rights. Under certain conditions USERRA requires employers to put individuals back to work after their military service
Answers
Answer: Aggregate Demand will shift by $25 billion dollars at each price level
Explanation:
1 % rise in Household wealth increases , Consumer Spending by $5 Billion. We can assume that when Household wealth Decreases by 1% consumer spending decreases by $5 billion dollars.
if Household Wealth Decreases by 5% aggregate demand will fall by $25 Billion (1% represents 5 Billion, so 5% will be $5 Billion x 5). Aggregate Demand Curve will initially shift by $25 billion at each price level when household wealth Falls by 5%