BUSINESS COLLEGE

g On January 1 the company had office supplies costing $2,700 recorded as an asset. During the year $9,600 of office supplies were purchased and recorded as an asset, but the company did not make any journal entries to record the use of supplies during the year. The physical count on December 31 revealed that supplies of $3,100 were remaining. What adjusting entry would be necessary on December 31

Answers

Answer 1
Answer:

Answer:

Debit Supplies expense    $9200

Credit Supplies account     $9200

Explanation:

The adjustment required is for the recognition of supplies used. When supplies are purchased, Debit Supplies account, credit cash or accounts payable. On use of supplies, Debit Supplies expense, credit Supplies account

The movement in the balance of supplies at the start and end of a period is as a result of usage and purchases. While usage reduces the balance in supplies, purchases increases the balance. This may be expressed mathematically as  

Opening balance + purchases - units used = closing balance  

$2,700 + $9,600 - Units used = $3,100

Units used = $2,700 + $9,600 - $3,100

= $9,200

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Mountain High Ice Cream Company transferred $76,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,600). Mountain High anticipates a $4,600 recourse obligation. The bank charges a 2% fee (2% of $76,000), and requires that amount to be paid at the start of the factoring arrangement. Mountain High has transferred control over the receivables, but determines that it still retains substantially all risks and rewards associated with them. Required: Prepare the journal entry to record the transfer on the books of Mountain High, considering whether the sales criteria under IFRS have been met.

Answers

Answer:

Cash                      66,880 debit

Due from factor       7,600 debit

Loss on factoring    6,120  debit

      Accounts Receivables     76,000 credit

      Recourse Liability               4,600 credit

Explanation:

Accounts receivable factored:       76,000

Cash received 90% of 76,000    =   68,400

less bank charge fee: 76,000 x 2% = 1,520  

total:                                                   66,880

Due  from factoring = 76,000 x 10% 7,600

Recourse liability: 4600

The loss is calcualte bu difference:

The bank receives 76,000 dollars of Accounts receivables

It pays 66,880 It makes us assuma liability for 4,600

and potentially can paid up to 7,600

Net: 69,880‬

difference: 76,000 - 66,880 = 6,120

A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $348,400 and direct labor hours would be 47,000. Actual manufacturing overhead costs incurred were $304,000, and actual direct labor hours were 52,400. The journal entry to apply the factory overhead costs for the year would include a

Answers

Answer:

Journal Entry

Debit Work-in-Process $388,284

Credit Manufacturing Overhead $388,284

To record the application of factory overhead costs for the year.

Explanation:

a) Data and Calculations:

Estimated factory overhead costs = $348,400

Estimated direct labor hours = 47,000

Predetermined overhead rate = $7.41 ($348,400/47,000)

Actual overhead costs = $304,000

Actual direct labor hours = 52,400

Applied overhead costs = $388,284 (52,400 * $7.41)

b) The overhead applied to the production for the year will be the actual direct labor hours by the predetermined overhead rate.  This yields a cost that is greater than the actual overhead costs, which means that the manufacturing overhead was overapplied.  The cause of this situation is the number of actual direct labor hours worked vis-a-vis the actual overhead costs and the predetermined rate.

You want to purchase a new car, and you are willing to pay $19,970. If you can invest at 10% per year and you currently have $15,000, how long will it be before you have enough money to pay cash for the car

Answers

Answer:

It will take 3 years to have enough money to purchase the car.

Explanation:

We can use either Compounding or Discounting Formula to determine the time it will take to make $19,970 from $15,000 when the investment rate is 10%. Lets go with the Compounding Formula:

                           Future Value = Present Value * (1 + i) ^ n

Re-arrange equation for "n" which is the Time Period:

⇒ FV / PV = (1 + i) ^ n

Taking log on both sides;

⇒ log (FV / PV) = log (1 + i) ^ n

OR log (FV / PV) = n log (1 + i)

OR n = log (FV / PV) / log (1 + i)

Simply put values now;

⇒ n = log (19,970 / 15,000) / log (1 + 10%) = log (1.33) / log (1.1) = .12 / .04

OR n = 3

Why do you think setting goals can influence an employee's safety-related actions in the workplace? Answer in 200 words

Answers

Answer:

Setting goals helps with knowing what to focus on and what to do at work

This helps the employee do better at work because they know exactly what they are going for

Explanation:

Just write a bunch of things about the things I said above like try to go into more detail about them I tried helping but I don’t think I can write 200 words worth of explanation on here

Answer:

well there realy inportant

Explanation:

a bond is selling at par value of $1,000 with 10 years to maturity and pays an 8% coupon rate annually. what is the ytm? enter your answer to two decimal places. do not include the % symbol. example: if your answer is 10.22% enter 10.22

Answers

Yield to maturity (YTM) is the overall rate of return that a bond will have earned once all interest payments are made and the principal is repaid. The Yield to maturity is 8

Explain about the Yield to maturity?

The annual percentage rate of return on a bond calculated under the assumption that the investor would hold the bond until it matures is known as the yield to maturity (YTM). The amount is the sum of the remaining coupon payments. The yield to maturity fluctuates according to the market price of the bond and the number of payments left to make.

The yield is the total return that an investor in a bond will receive from the moment the bond is purchased until it matures. As an example, a city might issue bonds that have a 2.192% yield and will maturity on September 1, 2032.

= 8% x 1000/10

= 80/10

= 8

To learn more about Yield to maturity refer to:

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#SPJ4

Which of the following best describes the primary role of auditors in financial reporting? A. Consultants that are hired by company management to advise on key matters related to competition, product pricing, employee retention, and financial reporting strategies. B. Key employees of the company that actively participate on the management team in strategic planning, product development, and financial reporting. C. Government employees assigned by local officials to ensure accurate financial reporting and operational integrity by the company. D. Independent party hired by management to express a professional opinion of the extent to which the company's financial reporting is in compliance with generally accepted accounting principles

Answers

'Auditors' are the 'individuals who conduct an independent review and examination of system records and activities in order to test the adequacy of the effectiveness of data security and processes.'

The statement that most adequately displays the central role of auditors in the 'financial reporting' would be:

D). "Independent party hired by management to express a professional opinion of the extent to which the company's financial reporting is in compliance with generally accepted accounting principles."

The responsibilities of an auditor include:

  • Review and monitoring of the financial records to prevent any discrepancy.
  • Ensure that the organization follows all the standard principles and policies.
  • Prevent it from any kind of fraud or risk.
  • Assist in saving costs.
  • Ensure the operations are being run effectively.
  • Preparation of reports and data charts etc.

Thus, option D correctly goes with the above-stated duties that he/she is an individual who looks after that the company is in proper alliance with the set principles.

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Answer:

D. Independent party hired by management to express a professional opinion of the extent to which the company’s financial reporting is in compliance with generally accepted accounting principles.

Explanation:

I just finish my quiz on it.
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