Lee Financial Services pays employees monthly. Payroll information is listed below for January 2018, the first month of Lee's fiscal year. Assume that none of the employees exceeded any relevant wage base.
Salaries $470,000
Federal income taxes to be withheld 94,000
Federal unemployment tax rate 0.60%
State unemployment tax rate (after
FUTA deduction) 5.40%
Social security tax rate 6.20%
Medicare tax rate 1.45%
Required:
1. Calculate the income and payroll taxes for the January 2018 pay period.
2. Prepare the appropriate journal entries to record salaries and wages expense (not paid) and payroll tax expense for the January 2018 pay period.

Answers

Answer 1

Answer and Explanation:

1. The computation is shown below:

As we know that employee taxes involved the social security tax, medicare tax and the income tax

Social security tax

= Gross pay × 6.2%

= $470,000 × 6.2%

= $29,140

Medicare tax

= Gross pay × 1.45%

= $470,000 × 1.45%

= $6,815

And,

Income tax withheld = $94,000

Now payroll taxes involved social security tax, Medicare tax, Federal unemployment tax, and state unemployment tax.

Social security tax

= Gross pay × 6.2%

= $470,000 × 6.2%

= $29,140

Medicare tax

= Gross pay × 1.45%

= $470,000 × 1.45%

= $6,815

Federal unemployment tax is

= Gross pay × 0.6%

= $470,000 × 0.6%

= $2,820

State unemployment tax

= Gross pay × 5.40%

= $470,000 × 5.40%

= $25,380

2. Now the journal entries are

On January, 2018

Salaries wages expense  $470,000

       To Withholding income tax payable  $94,000

       To Social security tax payable  $29,140

       To Medicare tax payable $6,815

       to Salaries and wages payable $340,045

(being salaries and wages expense is recorded)

On Jan 2018

Payroll tax expense  $64,155

      To Social security tax payable $29,140

      To Medicare tax payable $6,815

      To Federal unemployment tax payable $2,820

      To State unemployment tax payable $25,380

(being tax liabilities is recorded)  

 

 


Related Questions

g Novak Corp. started the year with $73200 in its Common Stock account and a credit balance in Retained Earnings of $53700. During the year, the company earned net income of $58600, and declared and paid $24400 of dividends. In addition, the company sold additional common stock amounting to $34200. As a result, the balance in retained earnings at the end of the year would be

Answers

Answer:

the ending retained earnings balance is $87,900

Explanation:

The computation of the ending retained earnings balance is shown below:

= opening retained earning balance + net income - dividend paid

= $53,700 + $58,600 - $24,400

= $87,900

Hence, the ending retained earnings balance is $87,900

We simply applied the above formula

Which of the following statements is not true? Many Fortune 500 U.S. firms derive more than half their revenues from foreign operations. Technology companies are particularly dependent on offshore revenue. Eighty percent of the toys sold in the United States are manufactured in China. Most PCs manufactured in China use microprocessor chips manufactured in Korea. In 2017, 60 percent of Apple's revenue was generated outside of the United States.

Answers

Answer:

B

Explanation:

Brainliest?

Jenna Jeffries started her business baking dog treats by investing cash of $1,000. During May, its first month of operations, Jenna's Barkery had revenues of $3,000, all of which was collected in cash. She paid her assistant $1,000 in cash and purchased $200 of supplies on account. The business paid cash dividends of $500.

Required:
Determine the balance in Cash at the end of the month.

Answers

Answer:

Cash balance= $500

Explanation:

Giving the following information:

Started her business baking dog treats by investing cash of $1,000.

Had revenues of $3,000.

She paid her assistant $1,000 in cash.

The business paid cash dividends of $500.

The cash account is affected by every entrance or exit of money. For example, if a purchase is made on account, the cash balance is not affected.

Cash balance= -1,000 + 3,000 - 1,000 - 500

Cash balance= $500

The balance in cash at the end of the month is $500.

Calculation of the closing cash balance:

Since Jenna Jeffries started her business baking dog treats by investing cash of $1,000. During May, its first month of operations, Jenna's Barkery had revenues of $3,000, all of which was collected in cash. She paid her assistant $1,000 in cash and purchased $200 of supplies on account. The business paid cash dividends of $500.

So, the ending cash balance is

= -1,000 + 3,000 - 1,000 - 500

= $500

Hence, the balance in cash at the end of the month is $500.

Learn more about cash here: https://brainly.com/question/19552698

According to economists, all humans have their own "rational self-interest." What does this mean?

A.) They want to help others rather than help themselves.
B.) They will only make rational and logical decisions about purchases.
C.) They want to benefit themselves as much as possible.
D.) They will only make a purchase if it is involving their top three interests.

Answers

C, “Self interest”....

They want to benefit themselves as much as possible.

The original purpose of counties was to?​

Answers

Answer:

The original purpose of the counties was to establish an intermediate governmental structure between that of the cities and that of the states, bringing together several cities in a single entity, the County, which would centralize basic services such as courts, hospitals, universities, etc. and it would represent these cities before the State in a more forceful way than if each city did so on its own initiative.

​"A permanent increase in government purchases has a larger effect than a temporary increase of the same​ amount." Use the​ saving-investment diagram to evaluate this​ statement, focusing on effects on​ consumption, investment, and the real interest rate for a fixed level of output. ​(​Hint: The permanent increase in government purchases implies larger increases in current and future taxes​.)

Answers

Answer:

here

Explanation:

How can lean operations be applied in the service industry?

Answers

Answer:

GG kid

Explanation:

i dont know

Your company is evaluating four locations in South America for its new manufacturing center. The ratings for each location are provided below using a rating system of 1 (least desirable) to 100 (most desirable) to evaluate each factor. Factor Weight Rating Scale (1-100) Brazil Chile Paraguay Bolivia Market Size 0.25 95 60 50 35 Future demand 0.25 90 70 50 35 Incentives 0.20 80 80 70 60 Per capita income 0.15 70 80 40 40 Political risk 0.05 70 90 70 70 Exchange rate 0.05 80 80 40 40 Labor climate 0.05 90 70 70 75 Using only the results of a multi-criteria analysis, which location should you recommend

Answers

Is it asking which one is best that we would recommend?

After reviewing the rhetorical fallacies, can you think of a specific time when you heard a speaker employ one of these fallacies? Which fallacy did they use? Why should you avoid fallacies in your own speeches?

Answers

Answer:

they can be bad because they can / will confuse people especially the public

Kirk Enterprises offers rug cleaning services to business clients. Below is the adjustments data for the year ended July 31.Adjustments:
a. Depreciation expense, $1,000.
b. Wages accrued, but not paid, $2,000.
c. Supplies on hand, $8,000.
d. Of the unearned revenue, 75% has been earned.
e. Unexpired insurance at July 31, $9,000.

Answers

Question Completion:

KIRK Enterprises

Trial Balance as of July 31:

Account Titles                   Debit        Credit

Cash                         36,000

Prepaid Insurance          12,000

Fees Receivable                            56,000

Supplies                         12,000

Equipment                60,000

Accumulated Depreciation               12,000

Unearned Revenue                         20,000

Accounts Payable                            32,000  

Common Stock                               84,000

Dividends                         4,000

Service Revenue                            80,000

Advertising Expense    28,000

Wage Expense             20,000      

Totals                          228,000   228,000

Required:

Using this information along with the spreadsheet below, record the adjusting entries in proper general journal form.

Answer:

Kirk Enterprises

                                        Unadjusted           Adjustments           Adjusted

                                       Trial Balance                                      Trial Balance

Account Titles               Debit     Credit    Debit   Credit       Debit       Credit

Cash                       36,000                                               36,000

Prepaid Insurance        12,000                             3,000          9,000

Fees Receivable       56,000                                              56,000

Supplies                       12,000                             4,000          8,000

Equipment              60,000                                              60,000

Accumulated Depreciation       12,000                1,000                        13,000

Unearned Revenue                  20,000     15,000                                 5,000

Accounts Payable                     32,000                                                32,000

Wages Payable                                                    2,000                         2,000

Common Stock                        84,000                                                 84,000

Dividends                       4,000                                               4,000

Service Revenue                     80,000              15,000                       95,000

Advertising Expense  28,000                                             28,000

Wage Expense           20,000                   2,000                22,000

Insurance Expense                                    3,000                  3,000

Supplies Expense                                      4,000                  4,000

Depreciation Expense                               1,000                   1,000      

Totals                       228,000 228,000 25,000 25,000 231,000  231,000

Explanation:

a) Adjustments:

Depreciation expense $1,000 Accumulated Depreciation $1,000

Wages expense $2,000 Wages payable $2,000

Supplies expense $4,000 Supplies $4,000 ($12,000 - $8,000)

Unearned revenue $15,000 Service Revenue $15,000 ($20,000 * 75%)

Insurance expense $3,000 Prepaid Insurance $3,000 ($12,000 - 9,000)

Thoughts about how eren is acting in attack on titan? Is he the villain or the hero? Also if he touches hangi again I am gonna scream !!!!

Answers

Answer:

I would say he is the hero with a possible dark side i can't really say cause i haven't watched a lot but he definitely has a lot going on

Explanation:

Answer:

I have mixed feelings

ATTACK ON TITAN SPOILER WARNING

I dont really agree with what he is doing, he used to protect his friends at all costs and dint want Armin and Mikasa to join the scouts because he did not want them to get hurt or die. He tried his best to make sure his friends were safe in seasons 1-3, but now he puts them in harm's way just to succeed with his plan. Sasha has to pay the price of Eren's recklessness, and all of the scouts are starting to doubt Eren. I feel like Eren has lost himself in the process of trying to gain freedom. I still love Eren, but I don't compeletly agree with him. That man just needs a hug. He's tired of this war.

If Black Diamond has teams of employees working on projects from nations around the world with varying cultural backgrounds and differing outdoor interests, then this is an example of:

a. Generational differences
b. Surface-level diversity
c. Stereotypes
d. Deep-level diversity

Use your knowledge of the different organizational concepts to classify each of the following statements.

If Black Diamond were to have different contracts for its workers such that some people are paid $15.10 an hour and others are paid $9.25 an hour to perform the same job then this would be an example of:______

Answers

Answer:

d. Deep-level diversity

Explanation:

The term diversity includes the differences that are possessed by the individuals and that distinguishes them from each other. The variation in physical attributes, beliefs, nationality, religion and other such aspects helps in building what is termed to be diversity.  

Deep-level diversity is characterized with the attributes that are non-observable. The beliefs, ideas, values and religion are the attributes of deep-level diversity.  

According to the given excerpt, the cultural backgrounds and outdoor interests are the aspects that are unobservable and therefore grouped under deep-level diversity.

what is financial ratio?​

Answers

Answer:

financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.

Explanation:

financial ratio or accounting ratio is a relative magnitude of two selected numerical values taken from an enterprise's financial statements. Often used in accounting, there are many standard ratios used to try to evaluate the overall financial condition of a corporation or other organization.

All of the following are examples of prospecting methods EXCEPT:

a) Public exhibitions and demonstrations
b) cold canvas
experimentation
d) endless chain
e) observation

Answers

Answer:

c and e

Explanation:

those are 2 examples of it

The example that is excepted from the prospecting methods is given in option (C), that is experimentation is not part of prospecting methods.

What are prospecting methods?

Identification of prospective clients, often known as prospects, is the first step in the sales process.

Creating a database of potential consumers and communicating with them regularly in the hope of turning them from potential customers into existing customers is the aim of prospecting.

The prospecting methods include demonstrations, exhibitions, canvasing, observations, the endless chain of marketing, the center of influence, direct mail, and lot more.

As per the given options, the prospecting here is applicable for political elections, therefore, options (a): "Public exhibitions and demonstrations," (b): "Cold canvas," (c): "observation," and (d): "endless chain," are examples of prospecting methods.

However, as per the need of the question, the example that is not included in the prospecting methods is given in option (c): "experimentation."

Check out the link below to learn more about prospecting methods;

https://brainly.com/question/15024051

#SPJ2

A Herfindahl-Hirschman Index is calculated by
A. summing the advertising expenditures of the firms that want to merge by total industry advertising expenditures.
B. summing the amount of sales by the four largest firms and dividing by total industry sales.
C. dividing the number of firms wanting to merge by the total number in the industry.
D. summing the squares of the market shares of each firm in the industry.

Answers

Answer:

Option D: Summing the squares of the market shares of each firm in the industry.

Explanation:

The Herfindahl-Hirschman index (HHI) is a use worldwide as measure of market concentration. It's calculation is based on squaring the market share of each firm competing in a market, and thereafter the resulting numbers are summed up. It commonly range known is simply from zero to 10,000. It is used by U.S. Department of Justice uses for potential mergers issues evaluation. It is a measure of industry concentration by the sum of the squares of the market shares held by each of the firms in the industry.

The Herfindahl index shows a decrease in competition and an increase of market power, when there is an increase and decreases is the opposite.

Membership in the Cape Fear Health Club has been recorded for the past nine years. Management wants to determine the trend of membership in order to project future space needs. This estimate would help the club determine whether a future expansion will be needed. Given the following time series data, develop a regression equation relating memberships to years. Based on your regression equation, what is your forecast for 2020 memberships? Memberships are in hundreds.
Year > 2011 2012 2013 2014 2015 2016 2017 2018 2019
#'s > 11 13 15 17 16 18 20 19 23
a. 22.b. 24.6.c. 23.3.d. 11.e. 25.9.

Answers

Answer:

c). 23.3

Explanation:

Period   Demand      X       Y       XY        [tex]$X^2$[/tex]

1                11               1        11       11           1

2               13              2       13      26         4

3               15              3       15      45         9

4               17              4        17      68        16

5               16             5        16       80       25

6               18             6        18       108      36

7               20            7         20     140      49

8              19              8         19      152     64

9               23            9         23      207    81

∑                              45        152    837    285

Intercept[tex]$(B_0) = \Sigma Y \times \Sigma X^2 - \Sigma X \times \frac{\Sigma XY}{(N\times \Sigma X^2 - \Sigma X^2)} $[/tex]

Intercept [tex]$= (152\times 285)-\frac{45 \times 837}{(9 \times 285)-45^2}$[/tex]

              = 10.47

Slope [tex]$(B_1)= ((N\times \Sigma XY) - (\Sigma X \times \Sigma Y)-(N \times \SIgma X^2 - \Sigma X^2)$[/tex]

Slope   [tex]$=((9\times837)-\frac{(45 \times 152)}{(9 \times 285)-45^2} $[/tex]

          = 1.28

Therefore, the equation is

Y = intercept + slope(X)

[tex]$Y=10.47 + (1.25 \times X)$[/tex]

For [tex]$X=10$[/tex] forecast [tex]$= 10.47 + (1.28 \times 10)$[/tex]

                                 = 23.27 or 23.3

                                               

A partial listing of costs incurred at Archut Corporation during September appears below: Direct materials $ 113,000 Utilities, factory $ 5,000 Administrative salaries $ 81,000 Indirect labor $ 25,000 Sales commissions $ 48,000 Depreciation of production equipment $ 20,000 Depreciation of administrative equipment $ 30,000 Direct labor $ 129,000 Advertising $ 135,000 The total of the manufacturing overhead costs listed above for September is: Multiple Choice $292,000 $50,000 $586,000 $30,000 PrevQuestion 7 of 10 Total7 of 10Visit question mapNext

Answers

Answer: $50,000

Explanation:

Manufacturing overhead are the costs that are indirectly related to production.

In this scenario those costs are:

Utilities, Factory, Indirect labor and Depreciation of production equipment.

= 5,000 + 25,000 + 20,000

= $50,000

Veneer Corporation has a competitive advantage in contract manufacturing of small electrical components and expects their competitive advantage to last two years through calendar 2021. The competitive advantage will allow it to increase sales by 20% annually for 2020 and 2021, and, after that, its sales will grow at the same rate as the increase in nominal GDP.

Prepare a proforma income statement, balance sheet, and firm free cash flow for Veneer for 2020 and 2021 (the planning period) using the following assumptions:

Sales are expected to grow by 20% annually.
Cost of goods sold and operating expenses are a constant percent of revenues, interest is 5% of Beginning of Year (BOY) long-term debt plus short-term debt, depreciation is 10% of BOY total fixed assets (gross, not net) and income taxes are 35% of income before tax.
The projected cash balances will change to balance the balance sheet, and the remaining current assets increase in proportion to sales.
Gross fixed assets increase 5% each year.
Accounts payable increases in proportion to sales.
Short-term debt remains the same each year of the planning period. Long-term debt is payable, beginning at the end of the year 2020 and continuing at the end of each year, in equal annual principal payments of $540.
Retained earnings increases by net income and decreases by dividends. The dividend payout ratio is 25%.
During 2021, capital stock with a par value of $1 per share will be sold for $1 per share or a total of $500. There are no other sales of capital stock.
Veneer's Balance Sheet and Income Statement for 2018 and 2019 is shown below:

Veneer Corporation
Balance Sheets
December 31, 2018 and 2019
Historical
ASSETS 2018 2019
Current Assets:
Cash 368 1,823
Accounts receivable 1,622 1,599
Inventories 544 590
Total Current Assets 2,534 4,012
Fixed Assets
Total Fixed Assets (Gross) 7,800 8,474
Accumulated depreciation (580) (730)
Net Fixed Assets 7,220 7,744
TOTAL 9,754 11,756
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable 370 512
5% Short-term debt 1,800 2,288
Total Current Liabilities 2,170 2,800
5% Long-term debt 5,070 5,392
Shareholders' Equity:
Common stock 1,000 1,000
Additional paid-in capital 2,000 2,000
Retained earnings (250) 797
Total 2,750 3,797
Treasury stock (233) (233)
Total Shareholders' Equity 2,517 3,564
TOTAL 9,757 11,756
Statements of Income
Historical
2018 2019
Revenues 16,389 18,210
Cost of goods sold 10,832 12,035
Gross profit on sales 5,558 6,175
Operating expenses 3,521 3,912
Depreciation 150 150
EBIT 1,887 2,113
Interest expense 603 502
Income Taxes 449 564
Net Income 834 1,047

Answers

Answer:

Assets 2018 2019 2020 2021

Current Assets:    

Cash 368 1,823 1,721 2,270

Account Receivavle 1,622 1,599 1,919 2,303

Inventories 544 590 708 850

Current Assets 2,534 4,012 4,348 5,422

Fixed Assets    

Fixed Assets 7,800 8,474 8,898 9,343

Accumulated depreciation -580 -730 -847 -890

Net Fixed Assets 7,220 7,744 8,050 8,453

Total 9,754 11,756 12,398 13,875

LIABILITIES AND SHAREHOLDERS' EQUITY    

Current liabilities    

Account Payable 370 512 614 737

Short term debt 1,800 2,288 2,288 2,288

Total Current liabilities 2,170 2,800 2,902 3,025

Long Term Debt 5,070 5,392 4,852 4,312

Shareholders' Equity:    

Common Stock 1,000 1,000 1,000 1,500

Additional paid in capital 2,000 2,000 2,000 2,000

Retained earnings -250 797 1,876 3,270

Total 2,750 3,797 4,876 6,770

Treasury stock -233 -233 -233 -233

Total Shareholders' Equity: 2,517 3,564 4,643 6,537

Total 9,757 11,756 12,398 13,875

-3 0 0 0

Statements of Income    

   

2018 2019 2020 2021

Revenues 16,389 18,210 21,852 26,222

Cost of goods sold 10,832 12,035 14,442 17,330

Gross profit on sales 5,558 6,175 7,410 8,892

Operating expenses 3,521 3,912 4,694 5,633

Depreciation 150 150 117 42

EBIT 1,887 2,113 2,598 3,216

Interest expense 603 502 384 357

Income Taxes 449 564 775 1,001

Net Income 835 1,047 1,439 1,859

Explanation:

Assets 2018 2019 2020 2021

Current Assets:    

Cash 368 1,823 1,721 2,270

Account Receivavle 1,622 1,599 1,919 2,303

Inventories 544 590 708 850

Current Assets 2,534 4,012 4,348 5,422

Fixed Assets    

Fixed Assets 7,800 8,474 8,898 9,343

Accumulated depreciation -580 -730 -847 -890

Net Fixed Assets 7,220 7,744 8,050 8,453

Total 9,754 11,756 12,398 13,875

LIABILITIES AND SHAREHOLDERS' EQUITY    

Current liabilities    

Account Payable 370 512 614 737

Short term debt 1,800 2,288 2,288 2,288

Total Current liabilities 2,170 2,800 2,902 3,025

Long Term Debt 5,070 5,392 4,852 4,312

Shareholders' Equity:    

Common Stock 1,000 1,000 1,000 1,500

Additional paid in capital 2,000 2,000 2,000 2,000

Retained earnings -250 797 1,876 3,270

Total 2,750 3,797 4,876 6,770

Treasury stock -233 -233 -233 -233

Total Shareholders' Equity: 2,517 3,564 4,643 6,537

Total 9,757 11,756 12,398 13,875

-3 0 0 0

Statements of Income    

   

2018 2019 2020 2021

Revenues 16,389 18,210 21,852 26,222

Cost of goods sold 10,832 12,035 14,442 17,330

Gross profit on sales 5,558 6,175 7,410 8,892

Operating expenses 3,521 3,912 4,694 5,633

Depreciation 150 150 117 42

EBIT 1,887 2,113 2,598 3,216

Interest expense 603 502 384 357

Income Taxes 449 564 775 1,001

Net Income 835 1,047 1,439 1,859

A company owns a 5-year old turret lathe that has a book value of $25,000. The present market value for the lathe is $16,000. The expected decline in market value is $2,000/year to a minimum market value of $4000. maintenance plus operating costs for the lathe equal $4,200/year. A new turret lathe can be purchased for $45,000 and will have an expected life of 8 years. The market value for the turret lathe is expected to equal $45,000(0.70)k at the end of year k. Annual maintenance and operating cost is expected to equal $1,600.

Based on a 12% before-tax MARR, should the old lathe be replaced now? Use an equivalent uniform annual cost comparison, a planning horizon of 7 years, and the cash flow approach.

Answers

Answer:

old lathe should not be replaced now

Explanation:

Using MARR of 12%

Price decline of 2000 per year ; salvage value = (present market value - does cline per year)

Present market value of old lathe = $16000

Opening market value at year end = (16000 * 1.12) = 17920

Add: Maintainace plus operating cost = $4200 / year

Salvage value = 16000 - 2000 = 14000

Annual cost : (Opening market value + operating cost - salvage value)

Annual cost :

Year 1 = (17920 + 4200 - 14000) = 8120

Year 2:

Opening market value at year end = (14000 * 1.12) = 15680

Salvage value = (14000 - 2000) = 12000

Annual cost :

Year 1 = (15680 + 4200 - 12000) = 7880

Year 3:

Opening market value at year end = (12000 * 1.12) = 13440

Salvage value = (12000 - 2000) = 10000

Annual cost :

Year 1 = (13440 + 4200 - 10000) = 7640

Year 4:

Opening market value at year end = (10000 * 1.12) = 11200

Salvage value = (10000 - 2000) = 8000

Annual cost :

Year 1 = (11200 + 4200 - 8000) = 7400

New machine :

Opening market value of year end = (45000 * 1.12) = 50,400

Add : Maintenance plus Operating expense = $1600

Salvage value = 45000 * 0.7 = 31500

Annual cost :

50400 + 1600 - 31500

= 20500

New machine has a far greater annual cost thb the old, hence the old machine should still be used for now.

Sandhill Co. began operations on January 2, 2020. It employs 13 people who work 8-hour days. Each employee earns 11 paid vacation days annually. Vacation days may be taken after January 10 of the year following the year in which they are earned. The average hourly wage rate was $19 in 2020 and $20.25 in 2021. The average vacation days used by each employee in 2021 was 10. Sandhill Co. accrues the cost of compensated absences at rates of pay in effect when earned.
Prepare journal entries to record the transactions related to paid vacation days during 2020 and 2021.

Answers

Answer:

2020

Dr Wages expense $21,836

Cr To vacation wages payable $18,720

On 2021

Dr Wages expense $1,300

Dr Vacation wages payable $19,760

Cr Cash $21,060

2021

Dr Wages expense $23,166

Cr To vacation wages payable $23,166

Explanation:

Preparation of the journal entries to record the transactions related to paid vacation days during 2020 and 2021.

2020

Dr Wages expense $21,836

(13 × 8 hrs × 11 days × $19)

Cr To vacation wages payable $18,720

(Being to record wages expense )

2021

Dr Wages expense $1,300

($21,060-$19,760)

Dr Vacation wages payable $19,760

(13 × 8 hrs × 10 days × $19)

Cr Cash $21,060

(13 × 8 hrs × 10 days × $20.25)

(Being to record cash paid )

2021

Dr Wages expense $23,166

(13 × 8 hrs × 11 days × $20.25)

Cr To vacation wages payable $23,166

(Being to record wages expense )

An organization expresses its reason for being, what it aspires to be, and the values it wants to emphasize in its mission, vision, and values statements, respectively. This activity is important because these three statements are the necessary foundation for a successful organizational planning process.

The goal of this exercise is to challenge your knowledge of important components of organizational mission, vision, and values statements.

Read the descriptions and select whether the description pertains to a mission, vision, or value statement.

1. Describes the image the organization wants to project
Values Statement Vision Statement Mission Statement
2. Inspires enthusiasm and encourages commitment
Vision Statement Values Statement Mission Statement
3. Illuminates the organization’s attitude toward its employees
Values Statement Vision Statement Mission Statement
4. Is intended to guide all of the actions in the organization
Vision Statement Mission Statement Values Statement
5. Is easily understood and well-articulated
Vision Statement Mission Statement Values Statement
6. Outlines the organization’s customer base
Values Statement Vision Statement Mission Statement
7. Expresses the company’s worldview
Vision Statement Mission Statement Values Statement
8. Is appropriate for the times and for the organization
Mission Statement Values Statement Vision Statement
9. Limits itself to a small number that employees can recall when making decisions
Mission Statement Vision Statement Values Statement
10. Articulates the geographical locations where the company competes
Vision Statement Mission Statement Values Statement
11. Unchanging; As applicable in 100 years as it is today
Vision Statement Mission Statement Values Statement
12. Reflects high ideals
Mission Statement Vision Statement Values Statement

Answers

Answer:

1. Describes the image the organization wants to project

Statement: Mission Statement

2. Inspires enthusiasm and encourages commitment

Statement: Vision Statement

3. Illuminates the organization’s attitude toward its employees

Statement: Mission Statement

4. Is intended to guide all of the actions in the organization

Statement: Values Statement

5. Is easily understood and well-articulated

Statement: Vision Statement

6. Outlines the organization’s customer base

Statement: Mission Statement

7. Expresses the company’s worldview

Statement: Values Statement

8. Is appropriate for the times and for the organization

Statement: Vision Statement

9. Limits itself to a small number that employees can recall when making decisions

Statement: Values Statement

10. Articulates the geographical locations where the company competes

Statement: Mission Statement

11. Unchanging; As applicable in 100 years as it is today

Statement: Values Statement

12. Reflects high ideals

Statement: Vision Statement  

You are the General Manager of a US owned plant located in Northern Mexico. The firm manufactures semiconductors and uses temporary employees from the local area to fulfill production labor requirements. Each quarter employees are hired and released depending upon production requirements and needs. The firm has a maximum storage capacity of 1,000,000 semiconductors. Agreements with the Mexican Government require that at least 325 workers must be on the payroll each quarter. There are currently 375 employees on the payroll and 120,000 semiconductors in storage. Sales forecast provided by the marketing department are estimated as follows for the upcoming year:


QUARTER PRODUCTION DAYS PREDICTED SALES FORECAST
First 59 940,000
Second 62 1,215,000
Third 55 860,000
Fourth 58 430,000

Inventory holding cost are $.25 per semiconductor per quarter. The holding cost applies to excess inventory after demand is fulfilled. Thus, assume inventory produced in the quarter to fulfill demand in that quarter is not subjected to holding cost.

The firm would like to have at least 100,000 semiconductors in stock at the end of the year. Each employee produces an average of 30 semiconductors per day. The cost of hiring a new worker is $200, and the cost of releasing a worker is $400. Determine a production plan that minimizes total cost and meets demand forecasts. This production plan must indicate the amount of inventory to produce, store and the amount of workers to hire and release each quarter. Use LP to determine a solution for this problem.

Answers

Answer:

tables to display the required information:

[tex]\left[\begin{array}{ccccccc}$quarter&$beg workers&$hired&$lay-off&$total&$working days&$production\\1st&375&174&0&549&59&971730\\2nd&549&23&0&572&62&1063920\\3rd&572&0&50&522&55&861300\\4th&522&0&196&326&58&567240\\\end{array}\right][/tex]

[tex]\left[\begin{array}{ccccc}$quarter&$beginning&$production&$demand&$ending\\1st&120000&971730&940000&151730\\2nd&151730&1063920&1215000&650\\3rd&650&861300&860000&1950\\4th&1950&567240&430000&139190\\\end{array}\right][/tex]

Total cost:

hiring cost: (174 + 23)*200 = 39,400

lay-off cost: (50 + 196) * 400 = 98,400

inventory cost: ending inventory * $0.25 = 73,380

Total cost: $211,180

Explanation:

We solve this using Excel SOLVER which uses linear programming.

First, build a table for workers and production.

[tex]\left[\begin{array}{ccccccc}\\A&B&C&D&E&F&G\\$quarter&$beg workers&$hired&$lay-off&$total&$working days&$production\\1st&375&&&B + C - D &59&E \times 30 \times F\\2nd&E_1&&&B + C - D&62&E \times 30 \times F\\3rd&E_2&&&B + C - D&62&E \times 30 \times F\\4th&E_3&&&B + C - D&62&E \times 30 \times F\\\end{array}\right][/tex]

Then we build a table for inventory:

[tex]\left[\begin{array}{ccccc}\\A&B&C&D&E\\quarter&beginning&production&demand&ending\\1st&120000&&&B+C-D\\2nd&E_1&&&B+C-D\\3rd&E_2&&&B+C-D\\4th&E_3&&&B+C-D\\\end{array}\right][/tex]

Last the cell for total cost we want to minimize:

=SUM(hired) x 200 + SUM(lay-off) x 400) + SUM(ending inventory) x 0.25

Our requirement is:

1)ending inventory of 100,000 or more

2) total worker of 325 or above

3) fulfill all demand so ending must be zero or higher than zero

4) hiring and lay-off are Natural numbers (we can't hire 0.5 employees)

ABC, a U.S. company sends by fax an offer to sell to XYZ, a French company, 1,000,000 widgets for $1.00 a widget. XYZ sends back a counter offer of $.75 a widget. ABC rejects the counter offer and sells the widgets to GHK Inc. instead. XYZ then sends an acceptance of the original offer of $1.00. ABC has a contract with XYZ and must give them the 1,000,000 widgets for $1.00 a wideget because they accepted the offer.
A. True
B. False

Answers

Answer:

The correct option is B. False.

Further explanation is given below in the explanation section.

Explanation:

Offer From ABC Company to XYZ Company:

1,000,000 widgets to sell.

Selling Price of 1 widget = $1.00

Total Price = $1,000,000

Counter Offer from XYZ company to ABC Company.

Selling Price = $0.75

Total Price = 0.75 x 1,000,000 = $750,000

But in the end, ABC company sold its widgets to GHK company.

The correct option to this question is false.

This case is false because here ABC sends an original offer of $1 but XYZ sent a counter offer of $0.75. This counter offer was then duly rejected by ABC.

XYZ cannot again confirm and accept the original offer of ABC because they have already rejected your claim and thus XYZ have to wait until ABC make them another offer.

In the digital-age workplace, lines of authority are less defined. The availability of information to all employees has increased, as has the prevalence of collaboration. While hierarchical divisions have diminished, you still may communicate messages downward and upward as well as horizontally. Pay special attention to the tone of the messages you write to persuade within your organization. Build interest by emphasizing benefits, and use strategies to overcome resistance. A successful persuasive message flowing downward requires a

Answers

Does a picture come with it

Gonzalez, Inc. has a fiscal year-end of September 30th. On March 1, 2018, Gonzalez authorized $800,000 of bonds payable, with a term of 12 years. The bonds carry a stated interest rate of 6%, with interest to be paid semi-annually on February 28th and August 31st. On August 1, 2019, Gonzalez issued three-quarters of the bonds for cash, at a premium of $25,400.

Required:
Prepare the journal entries that would be required relating to the bonds over period March 1, 2018 through September 30, 2019.

Answers

Answer:

August 1, 2019

Dr. Cash $625,400

Cr. Premium on Bond $25,400

Cr. Bond Payable $600,000

August 31, 2019

Dr. Interest Expense $16,941.67

Dr. Premium on Bond $1,058.33

Cr. Cash __________$18,000

September 30, 2019

Dr. Interest Expense $2,823.61

Dr. Premium on Bond $176.39

Cr. Cash __________$3,000

Explanation:

August 1, 2019

As the Bond was issued on August 1, 2019, So the first entry will be made at the issuance

Issuance of Bond = Total authorized x 3/4 = $800,000 x 3/4 = $600,000

Cash receipt = Face value + Premium on Bond = $600,000 + $25,400 = $625,400

August 31, 2019

As interest is paid on this date.

Interst payment = Face value x Coupon rate = $600,000 x 6% x 6/12 = $18,000

Amortization of Bond Premium ( Straight line ) = Premium on Bond / ( Years to maturity x Coupon payment period per year ) = $25,400 / ( 12 years x 2 periods per year ) = $1,058.33

September 30, 2019

On this date interest of one month is accrued which needs to be recorded.

Interest payable = 600,000 x 6% x 1/12 = $3,000

Amortization of Bond Premium ( Straight line ) = ( 25,400 / 24 ) / 6 = $176.39

Suppose that when the price of gasoline is $3.50 per gallon, the total amount of gasoline purchased in the United States is 6 million barrels per day. Also, suppose that when the price of gas decreases to $3 per gallon, the total amount of gasoline purchased is 8 million barrels per day. Based on these numbers and using the midpoint formula, the price elasticity of demand for gasoline is:

Answers

By definition, the price elasticity of demand for gasoline is -2.33.

Price elasticity of demand

The price elasticity of demand is a measure used to show the responsiveness, or elasticity, of the quantity demanded of a good or service to changes in the price of that good or service.

That is, the price elasticity of demand indicates to what extent changes in price alter the demand for specific products or services.

The price elasticity of demand is calculated by dividing the percentage change in demand by the percentage change in price, resulting in the following expression:

[tex]Elasticity=\frac{percentage change in quantity demanded}{percentage change in price}[/tex]

[tex]Elasticity=\frac{\frac{deltaQ}{Q} }{\frac{deltaP}{P} }[/tex]

where:

deltaQ means the absolute change in quantities demanded.Q represents quantity.deltaP represents the absolute change in price.P represents the price.

Price elasticity of demand for gasoline

Knowing that:

When the price of gasoline is $3.50 per gallon, the total amount of gasoline purchased in the United States is 6 million barrels per day. When the price of gas decreases to $3 per gallon, the total amount of gasoline purchased is 8 million barrels per day.

First, the percentage change in quantities is calculated as follows:

The absolute change in quantities deltaQ is obtained by first subtracting the final demand from the initial demand, that is (8 million – 6 million = 2 million)Now dividing this value by the initial demand, you obtain 2 million÷6 million=0.333, which, taken to a percentage value, finally shows that the percentage change in quantity demanded is 0.333×100%= 33.3%.

Now the percentage change in price is determined as follows:

The absolute change in the deltaP price is obtained by subtracting the final price from the initial price, that is (3 – 3.5= -0.5).Now dividing this value by the initial price -0.5/3.5, we obtain -0.143, which, taken as a percentage value, shows that the percentage variation in the price is -0.143x100%= -14.3%.

Finally, the price elasticity of demand is calculated as:

[tex]Elasticity=\frac{33.3}{-14.3}[/tex]

Solving:

Elasticity= -2.33

In summary, the price elasticity of demand for gasoline is -2.33.

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Bailey Corporation began business on January 2, 2019, with five employees. Its sick leave and vacation policy follow: Each employee is allowed 8 days of sick leave each year and one day of paid vacation leave for each month worked. The accrued vacation cannot be taken until the employee has been with the company 1 year. The sick leave, if not used accumulates to an 18- day maximum. The vacation leave accumulates for 5 years, but at any time the employee may request compensation in lieu of taking paid vacation leave. The company records its liability for both compensated absences on a quarterly basis. The daily gross wages for each employee are $180. Instructions: 1. Prepare the journal entries to record the compensated absences for the first quarter of 2019. Three sick days were used by employees in the first quarter. 2. Prepare a partial interim balance sheet showing the liability balances for compensated absences at March 31, 2019.

Answers

Answer:

Answer is explained in the explanation section below.

Explanation:

Given Data:

Business Began on = 2, January, 2019

Number of employees = 5

Sick leaves and vacation Policy:

Allowed Sick Leaves for each employee = 8 days/year

Paid Leave = 1 day/Month worked

Accrued Vacation condition = Worked for company for at least 1 year

Sick leaves if not used = 18 days accumulated.

Daily Gross Wages = $180 for each employee.

Part 1:

So, we know that,

The company records its liability to compensated absences for both sick leave.

on quarterly basis (5 x 2 = 10 days).

pay per each employ = $180.

The company records its liability to compensated absences for both sick leave.

On quarterly basis = 10 x 180 = $1800.

In a quarter each employee is allowed to avail 3 vacation days, so the total vacations days for 5 employees for a quarter 3 x 5=15 days

gross wage for each employee is $180 per day

for vacation days= 15 x 180= $2700

To record this transaction the journal entry is:

wages expenses             $2700

Accumulated wages        $2700

Part 2:

The partial interim balance compensation for future absences at March 31, 2019

= $1800 + $2700

= $4500.

Last year Kruse Corp had $440,000 of assets (which is equal to its total invested capital), $403,000 of sales, $28,250 of net income, and a debt-to-total-capital ratio of 39%. The new CFO believes the firm has excessive fixed assets and inventory that could be sold, enabling it to reduce its total assets and total invested capital to $252,500. The firm finances using only debt and common equity. Sales, costs, and net income would not be affected, and the firm would maintain the same capital structure (but with less total debt). By how much would the reduction in assets improve the ROE

Answers

Answer:

The reduction in assets would improve the ROE by 7.81%.

Explanation:

This can be calculated as follows:

Previous equity = (100% - Debt-to-total-capital ratio) * Previous total invested capital = (100% - 39%) * $440,000 = 61% * $440,000 = $268,400

Previous return on equity (ROE) = (Net income / Previous equity) * 100 = ($28,250 / $268,400) * 100 = 10.53%

New equity = (100% - Debt-to-total-capital ratio) * New total invested capital = (100% - 39%) * $252,500 = 61% * $252,500 = $154,025

New ROE = (Net income / New equity) * 100 = ($28,250 / $154,025) * 100 = 18.34%

Change in ROE = New ROE - Previous ROE = 18.34% - 10.53% = 7.81%

Since change in ROE is 7.81% and positive, this implies that the reduction in assets would improve the ROE by 7.81%.

JDI, Inc. is trying to decide whether ro make-or-buy a part (#J-45FPT). Purchasing the part would cost them $1.50 each. If they design and produce it themselves, it will result in a per unit cost of $0.75. However, the design investment would be $50,000. Further, they realize that for this type of part, there is a 30% chance that the part will need to be redesigned at an additional cost of $50,000. Regardless of whether they make-or-buy the part, JDI will need 100,000 of these parts. Using decision trees analysis and EMV, what should JDI do? Show the decision tree.

Answers

Answer:

JDI should buy the part

Explanation:

The decision tree is shown in the file attached below.

From the information given:

Provided that the expected values denote the costs; JDI is expected to select the lowest expected value and make the part.

JDI expected monetary cost = $140000

Its buy decision = $150000

The gross domestic product (GDP) of the United States is defined as the all in a given year. Based on this definition, which of the following will be included in (that is, directly increase) the GDP of the United States in 2017?
a. Sofaland, a Swedish furniture company, produces a table at a plant in Virginia on December 5, 2017. It sells the table to a college student on December 19, 2017. An accountant starts a client's 2017 tax return on April 14, 2018, finishing it just before midnight on April 15, 2018.
b. Treetopplers, an American lumber company, produces wood at a plant in Oregon on September 5, 2017. It sells the wood to Buildit and Partners, a developer, for use in the production of a new house that will be made in the United States In December.
c. Athleticus, an American shoe company, produces a pair of sneakers at a plant in Vietnam on March 5, 2017. Athleticus imports the pair of sneakers into the United States on May 14, 2017.
d. Zippy car, an American automobile company, produces a convertible at a manufacturing plant in Minneapolis on January 6, 2017. It sells the car at a dealership in Philadelphia on February 18, 2017.

Answers

Explanation:

GDP is defined as the value of all final goods and services that were produced In the US within a given year.

With this in mind,

A. Sofaland would be included in the GDP of the US, since the table was made and sold in the US in 2017.

B. The finished tax return by the accountant would not be included in the GDP as production for 2018 as it is not yet finished.

C. The lumber company treetopplers would not be included as part of the GDP since the production of lumber cannot be regarded as final good.

D. Athleticism"s importation from Vietnam to the US is not part of gdp since it is not domestic production.

E. Zippycar made the car in the us and sold in the US same year. This would be included in gdp of US.

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