Master College Concepts with Expert Q&A and Solutions
Bramble Resort opened for business on June 1 with eight air-conditioned units. Its trial balance on August 31 is as follows. BRAMBLE RESORT TRIAL BALANCE AUGUST 31, 2020 Debit Credit Cash $23,800 Prepaid Insurance 8,700 Supplies 6,800 Land 28,000 Buildings 128,000 Equipment 24,000 Accounts Payable $8,700 Unearned Rent Revenue 8,800 Mortgage Payable 68,000 Common Stock 103,200 Retained Earnings 9,000 Dividends 5,000 Rent Revenue 84,200 Salaries and Wages Expense 44,800 Utilities Expenses 9,200 Maintenance and Repairs Expense 3,600 $281,900 $281,900Other data: 1. The balance in prepaid insurance is a one-year premium paid on June 1, 2020. 2. An inventory count on August 31 shows $461 of supplies on hand. 3. Annual depreciation rates are (a) buildings (4%) (b) equipment (10%). (c) Salvage value is estimated to be 10% of cost. 4. Unearned Rent Revenue of $3,666 was earned prior to August 31. 5. Salaries of $346 were unpaid at August 31. 6. Rentals of $837 were due from tenants at August 31. (Use Accounts Receivable account.) 7. The mortgage interest rate is 8% per year. 4. 5. 6. 7. Journalize the adjusting entries on August 31 for the 3-month period June 1-August 31.
Functions of money and barterConsider an economy in which money does not exist, so that agents rely on barter to carry out transactions. When the economy was small, barter seemed sufficient. However, the economy has now begun to grow.If people in this economy trade three goods, the price tag of each good must list ______________?prices, and the economy requires____________?prices for people to carry out transactions.Suppose that the number of goods people trade increases to 15. Then the price tag of each good must list _________?prices, and the number of prices that the economy requires increases to____________?Now suppose that our economy has a money. The government now issues a national currency and there is no longer any barter.In this economy, money and currency are not the same because:1. The fact that the government issues currency means that the currency will be accepted as money by all agents.2. The fact that the currency is backed by the government means that it will never lose value and will remain a perfect unit of account.3. Just because the government issues currency does not mean that the currency will be accepted as money, since it must be used as a medium of exchange, store of value and standard of value.4. Just because the government issues currency does not mean that the currency will be accepted as money, and buyers and sellers still need barter to ensure that money does not lose its value.Suppose now that our economy is suffering from rapid, ongoing increases in the cost of living. Which characteristic of money is directly negatively impacted in that economy?1. Medium of exchange2. Double coincidence of wants3. Store of value4. Unit of account
The operations manager of a plant that manufactures tires wishes to compare the actual inner diameter of two grades of tires, each of which has a nominal value of 575 millimeters. A sample of five tires of each grade is selected, and the results representing the inner diameters of the tires, ordered from smallest to largest, are as follows: Grade X: 568, 570, 575, 578, 584 Grade Y: 573, 574, 575, 577, 578a. Compute the mean, median, and standard deviation for each grade of tire. b. What would be the effect on your answers in (a) and (b) if the last value for grade Y was 588 instead of 578? Explain. c. Which grade of tire is providing better quality? Explain.
Wings Co. budgeted $571,000 manufacturing direct wages, 2,000 direct labor hours, and had the following manufacturing overhead: Overhead Cost Pool Budgeted Overhead Cost Budgeted Level for Cost Driver Overhead Cost Driver Materials handling $ 144,000 4,800 pounds Weight of materials Machine setup 22,000 550 setups Number of setups Machine repair 1,580 31,600 machine hours Machine hours Inspections 16,000 320 inspections Number of inspections Requirements for Job #971 which manufactured 4 units of product: Direct labor 20 hours Direct material: 130 pounds Machine setup 30 setupsMachine hours 15.000 machine hoursInspections 15 inspections Using ABC, overhead cost assigned to Job #971 for machine setup is: a. $2,300 b. $990 c. $6,500 d. $690 e. $1,020 Using ABC, overhead cost assigned to Job #971 for machine repair is: a. $2,300 b. $990 c. $6,500 d. $690 e. $1,020
Steinberg Company produces commercial printers. One is the regular model, a basic model that is designed to copy and print in black and white. Another model, the deluxe model, is a color printer-scanner-copier. For the coming year, Steinberg expects to sell 100,000 regular models and 20,000 deluxe models. A segmented income statement for the two products is as follows: Regular Model Deluxe Model TotalSales $12,000,000 $10,720,000 $22,720,000 Less: Variable costs 7,200,000 6,432,000 13,632,000 Contribution margin $4,800,000 $4,288,000 $9,088,000 Less: Direct fixed costs 1,200,000 960,000 2,160,000 Segment margin $3,600,000 $3,328,000 $6,928,000 Less: Common fixed costs 1,702,400 Operating income $5,225,600 Required:1. Compute the number of regular models and deluxe models that must be sold to break even. Round your answers to the nearest whole unit.Regular models unitsDeluxe models units2. Using information only from the total column of the income statement, compute the sales revenue that must be generated for the company to break even. Round the contribution margin ratio to four decimal places. Use the rounded value in the subsequent computation. (Express as a decimal-based amount rather than a whole percentage.) Round the amount of revenue to the nearest dollar.Contribution margin ratioRevenue$
Ravine Corporation purchased 30 percent ownership of Valley Industries for $94,800 on January 1, 20X6, when Valley had capital stock of $260,000 and retained earnings of $56,000. During the period of January 1, 20X6, through December 31, 20X9, the market value of Ravine's investment in Valley's stock increased by $11,000 each year. The following data were reported by the companies for the years 20X6 through 20X9: Dividends Declared Year Operating Income, Ravine Corporation Net Income, Valley Industries Ravine Valley 20X6 $ 140,000 $ 30,000 $ 70,000 $ 20,000 20X7 80,000 50,000 70,000 40,000 20X8 220,000 10,000 90,000 40,000 20X9 160,000 40,000 100,000 20,000 Required:a. What net income would Ravine Corporation have reported for each of the years, assuming Ravine accounts for the intercorporate investment using the cost method and the equity method?b-1. Give all appropriate journal entries for 20X8 that Ravine made under the cost method. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
The outstanding capital stock of Flint Corporation consists of 1,900 shares of $100 par value, 5% preferred, and 5,200 shares of $50 par value common. Assuming that the company has retained earnings of $83,000, all of which is to be paid out in dividends, and that preferred dividends were not paid during the 2 years preceding the current year, state how much each class of stock should receive under each of the following conditions.(a) The preferred stock is noncumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)PreferredCommon$The outstanding capital stock of Edna Millay Corpo $The outstanding capital stock of Edna Millay Corpo(b) The preferred stock is cumulative and nonparticipating. (Round answers to 0 decimal places, e.g. $38,487.)PreferredCommon$The outstanding capital stock of Edna Millay Corpo $The outstanding capital stock of Edna Millay Corpo(c) The preferred stock is cumulative and participating. (Round the rate of participation to 4 decimal places, e.g.1.4278%. Round answers to 0 decimal places, e.g. $38,487.)PreferredCommon$The outstanding capital stock of Edna Millay Corpo $The outstanding capital stock of Edna Millay Corpo
Annual U.S. imports from a certain country in the years 1996 through 2003 can be approximated by I(t) = t^2 + 3.7t + 50 (1 leq t leq 9) billion dollars, where t represents time in years since 1995. Annual U.S. exports to this country in the same years can be approximated by E(t) = 0.3t^2-1.4t + 16 (0 leq t leq 10) billion dollars. Assuming the trends shown in the above models continue indefinitely, numerically estimate the following. (If you need to use infinite or -infinite, enter INFINITY or -INFINITY, respectively. If an answer does not exist, enter DNE.) lim t tends to +infinite and lim t tends to +infinite E(t)/I(t) lim t tends to +infinite E(t)= lim t tends to +infinite E(t)/I(t)= Interpret your answers. A. In the long term, U.S. exports to the country will fall without bound and be 0.3 times U.S. imports from the country. B. In the long term, U.S. exports to the country will rise without bound and be 0.3 times U.S. imports from the country. C. In the long term, U.S. imports from the country will rise without bound and be 0.3 times U.S. exports to the country. D. In the long term, U.S. imports from the country will fall without bound and be 0.3 times U.S. exports to the country. Comment on the results. A. In the real world, imports and exports can rise without bound. Thus, the given models can be extrapolated far into the future. B. In the real world, imports and exports can fall without bound. Thus, the given models can be extrapolated far into the future. C. In the real world, imports and exports do not change, they always stay fixed. Thus, the given models should not be extrapolated far into the future. D. In the real world, imports and exports cannot rise without bound. Thus, the given models should not be extrapolated far into the future.
Ann Ellis is a systems analyst at CyberStuff, a large company that sells computer hardware and software via telephone, mail order, and the Internet. CyberStuff processes several thousand transactions per week on a three-shift operation and employs 50 full-time and 125 part-time employees. Lately, the billing department has experienced an increase in the number of customer complaints about incorrect bills. During the preliminary investigation, Ann learned that some CyberStuff representatives did not follow established order entry procedures. She feels that with more information, she might find a pattern and identify a solution to the problem. Ann is not sure how to proceed. She came to you, her supervisor, with two separate questions.a. Is a questionnaire the best approach, or would interviews be better?b. Whether Ann uses interview, questionnaire, or both techniques, should she sample by random, include an equal number of people from each shift, or use some other approach? As Anns supervisor, what would you suggest, and why?
The most recent financial statements for Zoso, Inc., are shown here (assuming no income taxes): Income Statement Balance Sheet Sales $4,200 Assets $14,900 Debt $10,900 Costs 3,420 Equity 4,000 Net income $780 Total $14,900 Total $14,900 Assets and costs are proportional to sales. Debt and equity are not. No dividends are paid. Next year's sales are projected to be $5,965.What is the external financing needed?
After graduating from dental school two years ago, Dr. Lauren Farish purchased the dental practice of a long-time dentist who was retiring. In January of this year she had to replace the outdated autoclave equipment she inherited from the previous dentist. Now, as she is preparing her budget for next year, she is concerned about understanding how her cost for sterilizing her dental instruments has changed. She has gathered the following information from her records: Month Number of instruments used Total autoclave cost January 724 $7,468 February 624 6,574 March 824 7,114 April 1,024 9,080 May 924 7,776 June 1,124 8,600 July 1,324 10,012 August 1,224 9,8161) What is the variable cost of sterilizing an instrument using the new equipment?2) What is the fixed cost of the autoclave equipment?3) What is the cost formula that Dr. Farish should use for estimating autoclave sterilization costs for next year's budget?4) If Dr. Farish estimates she will use 1,192 instruments next month, what cost should she include in her budget for instrument sterilization? (Round answer to 0 decimal places, e.g. 5,275.)Total cost $ _