QS 3-7 Adjusting prepaid (deferred) expenses LO P1 For each separate case, record the necessary adjusting entry. On July 1, Lopez Company paid $1,200 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. Zim Company has a Supplies account balance of $5,000 at the beginning of the year. During the year, it purchased $2,000 of supplies. As of December 31, a physical count of supplies shows $800 of supplies available. Prepare the year-end adjusting entries to reflect expiration of the insurance and correctly report the balance of the Supplies account and the Supplies Expense account as of December 31.

Answers

Answer 1
Answer:

Answer:

S/n   General Journal              Debit      Credit

a       Insurance expense        $1,200

               Prepaid Insurance                   $1,200  

        (To record insurance expired)

b       Supplies expense          $6,200

                Supplies                                  $6,200

                ($5,000 + $2,000 - $800)

         (To record supplies used)

Answer 2
Answer:

Final answer:

Lopez company should adjust their prepaid insurance and Zim company should adjust their supplies account due to their use during the year. Both adjustments will be debits to relevant expense accounts & credits to Prepaid Insurance for Lopez, and Supplies for Zim.

Explanation:

The two adjustments that need to be made are for the prepaid insurance and the supplies. To compute the adjustment for the prepaid insurance, we would divide the total insurance payment by the number of months covered to find the monthly cost. For Lopez Company, six months of insurance is valued at $1,200, therefore the monthly cost is $200. From July 1 to December 31, six months have passed, so $1,200 of insurance has been used up. As a result, we need to debit the Insurance Expense account by $1,200 and credit Prepaid Insurance by $1,200.

Regarding Zim Company, the beginning balance in the Supplies account was $5,000, and it purchased $2,000 more throughout the year - that sum up to $7,000 of total supplies. At the end of the year, they still had $800 left, so they used $6,200 of supplies during the year. The adjustment will be a debit to Supplies Expense by $6,200 and a credit to Supplies by $6,200, reflecting the fact that those supplies are no longer available for use.

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Expectations of lower prices in the near future may cause some producers to do what?a. Increase the quantity supplied of the good nowb. Increase the supply of the good nowc. Decrease the supply of the good nowd. Decrease the quantity supplied of the good now
A company that is based on a direct flow of authority from the top executive to subordinates is known as a ________ organization.
True or False: In most cases, the only way publishers of media websites generate revenue is by charging advertisers to display ads on their sites.
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Engineers at New Generations Computer Company provided three design approaches for the new keyboard the company was planning to produce and sell. Designers got together and used a problem solving approach called ________, in which they analyzed each approach on its advantages, disadvantages and implications to finalize their selection.

Answers

Answer:

PMI approach = Plus, minus, and interesting

Explanation:

It basically practices the approach to provide validation to all the views of people in discussion, and then, choosing the right alternative.

As different people have different views, it signifies that after considering all the views, decision shall be made as to what the pros and cons and alternatives for the current decision, or project chosen.

It provides a proper and detailed evaluation of the decision through lateral thinking, and keeping an unbiased opinion.

Final answer:

The engineers followed a problem-solving approach, using a combination of strategy, solution, and significance to make a final decision. It required analytical intelligence and some creativity to arrive at the final design. This approach was systematic and perfect for making complex decisions.

Explanation:

The approach that the New Generations Computer Company used is known as a problem-solving approach. It involves a three-stage process wherein the engineers analyzed each design based on a certain strategy, finding a solution, and evaluating the significance, i.e. implications of each of their decision. These steps ensure that the final product is effective, efficient, and meaningful. This approach requires analytical intelligence, with a dash of creativity and insight for a much more meaningful output. The process also involves identifying knowns and unknowns and thorough checking if the design is plausible. Overall, it's a systematic way of making complex decisions, perfect for scenarios such as designing a new product.

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An income statement for Sam's Bookstore for the first quarter of the year is presented below:Sam's BookstoreIncome StatementFor Quarter Ended March 31Sales $ 910,000Cost of goods sold 560,000Gross margin 350,000Selling and administrative expensesSelling $ 119,000Administration 142,000 261,000Net operating income $ 89,000On average, a book sells for $65. Variable selling expenses are $4 per book with the remaining selling expenses being fixed. The variable administrative expenses are 3% of sales with the remainder being fixed.The contribution margin for Sam's Bookstore for the first quarter is:____________

Answers

Answer:

$252,000

Explanation:

The question is to determine the contribution of Sam's Bookstore for the first quarter

Contribution Margin represents the profit an organisation can generate from the sale of a product. in order to calculate, the variable costs are deducted from the revenue from sale.

The formula for Contribution margin = Sales- the cost of goods sold - variable selling expense.

Selling Price = $65

Reported ales = $910,000

First, we determine the number of books sold in the first quarter

= $910 000/ $65 = 14 000 books

Second, since the store sold 14,000 books in the first quarter, the total variable selling cost for the books sold

=  total books sold x the variable selling expense per book

= 14,000 x $4 = $56,000= total  variable selling expense

Third, since the store sold 14,000 books in the first quarter, the total variable administrative cost for the books sold

=  total books sold x the variable administrative expense per book

= 14,000 x $3 = $42,000= total  variable Administrative expense

Four, determine the contribution margin as follows:

Sales - cost of goods sold - variable selling expense - variable administrative expense

= $910,000-$560,000- $56,000-$42,000= $252,000

Emily likes travelling, but every time she checks for tickets and a decent hotel, she gets overwhelmed with the amount of information she gets. She wants people to have a hassle-free travel experience. As a result, she starts a small business that filters information based on people's requirements and provides them with just the right amount of information they need about the place they are travelling to, the best available hotel, and the cheapest air fares. Which of the following is most likely to be the source of Emily's business idea?A chance happeningA personal interestA similar businessAn expertise

Answers

Answer:

The correct answer is letter "B": A personal interest.

Explanation:

Businesses based on consumers' personal interests attempt to provide a tailored good or service. The competitive advantage of the organization relies on the uniqueness of the product they can provide to their clients compared to competitors who tend to offer products with wide features to cover the larger amount of needs possible.

Conducting businesses driven by customers' personal interests requires constant studies of consumer patterns to adapt in front of market changes and segmentation to identify what sector of the market the company will dedicate their efforts to.

You have a portfolio which is composed by a risky asset with an expected rate of return of 15% and a standard deviation of 20% and a risk free asset with a rate of return of 10%. What portion of your portfolio should be invested in the risky asset if you want your portfolio to have a standard deviation of 8%?

Answers

Answer:

Weight of risky asset = 0.4 or 40%

Explanation:

The standard deviation(SD) of a portfolio with one risky asset and one risk free asset can be calculated by multiplying the weightage of investment in the risky asset by the standard deviation of the risky asset as the risk free asset's standard deviation is zero. The formula to calculate the standard deviation of such a portfolio is,

Portfolio SD = weight of risky asset * Standard deviation of risky asset

Plugging in the values for portfolio SD and standard deviation of risky asset, we can calculate the weight of risky asset in the portfolio to be,

0.08 = weight of risky asset * 0.2

0.08 / 0.2 = weight of risky asset

Weight of risky asset = 0.4 or 40%

On January 1, Song Corp. receives a $100,000, two-year, note receivable from a customer in exchange for payment of goods. The note has a 12% effective interest rate. On December 31, when Song records interest for the year, Song will record

Answers

Answer:

$9,566.33  

Explanation:

We need to determine the present value of the notes receivable using the pv excel function below:

=-pv(rate,nper,pmt,fv)

rate is the interest rate of 12%

nper is the number of years before the amount on the note is received which is 2 years

pmt is the amount of fixed interest(there is no fixed interest in this case)

fv is the future value of the loan in year 2 i.e $100,000

=-pv(12%,2,0,100000)=$79,719.39  

Now,after a year 12% interest is applied to the pv:

interest=$79,719.39 *12%=$9,566.33  

You are the supply chain manager for a small company that makes customized road bicycles. YouCEO asks you to explain the steps in the process for manufacturing and delivering the product to
consumers, in your supply chain. Use the module content and Better Business to explain the steps i
the process, in four to five sentences minimum.
HTML Editora

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Answer:

The points are as follows:-

1. Their preparations must be successful, and their implementation from the highest to the lowest managerial level is necessary.

2.We need to handle the whole project schedule acquisition process.

3.They ought to manage the sales contract for the finished product and the materials and machinery.

4.Prepare its manual data or auto-metrically produced purchase agreement from the line as well as from the planning process.

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