Precilla, vice-president of operations for Sturgis National Bank, has instructed the bank's computer programmer to use a 365-day year to compute interest on depository
Q: Windsor Co. incurs $1180875 of overhead costs each year in its three main departments, machining ($6...
A: Formula: Predetermined overhead rate = Total Overhead / Total Direct labor hours
Q: Nadine visits Urban Air, a trampoline park. Before Nadine can enter the trampoline park, Urban Air r...
A: This is a Multiple Choice Question in which we have to select the correct option
Q: Lin Corporation has a single product whose selling price is $136 per unit and whose variable expense...
A: Formula: Contribution margin = Sales price - variable cost
Q: If the firm's dividend policy was based on a constant payout ratio of 50 percent for all of the year...
A: If the firm's earnings are more than P1.5 per share, the dividend payout would be 50%. Otherwise, th...
Q: ABC Company has sales of $500,000, COGS of $250,000, operating expenses of $200,000, net income of $...
A: The ratio analysis helps to analyze the financial statements of the business. The times interest rat...
Q: In computing the present value of the lease payments, the lessee should use the implicit rate of th...
A: Present Value of Lease Payment: As a result, the present value of the minimum lease payment may be c...
Q: 2. The following facts pertain to a non-cancelable lease agreement between Faldo Leasing Company an...
A: Lease is the facility available to the lessee to use the asset of the lesser and pay certain rentals...
Q: Statement 1: The relationship between operating leverage and financial leverage is always multiplica...
A: Debt: It implies to the amount that is borrowed by an individual or group to fund the financial need...
Q: When entering tax classes for the sales transaction type, what two items must you enter the tax clas...
A: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-parts at a...
Q: ing transactions in M ased merchandise from Sabine Company under the following y (The cost of the me...
A: Thorsten Should be insuring the merchandise during shipping since Thorsten has purchased the merchan...
Q: Joyful Journeys Music School provides private music lessons for elementary students. Its operating c...
A: The break even sales are the sales where business earns no profit no loss during the period.
Q: right-of-use asset is increased by lease prepayments made by the lessee and initial direct costs i...
A: Solution: Right to use asset is the lessee's right to use or operate a leased asset during the lease...
Q: When a sale is made with the credit terms of 2/10, net 30, the discount of ____% will be used if pai...
A: When a sale is made with the credit terms of 2/10, net 30, the discount of 2% will be used if paid w...
Q: Mohave Corp. is considering outsourcing production of the umbrella tote bag included with some of it...
A: The differential analysis is performed when two alternatives are available with the organisation.
Q: A company borrows $10,000 and signs a 90-day nontrade note payable. In preparing a statement of cash...
A: Short term notes payable are included in the financing activities of the cash flow statement. Howeve...
Q: 28. A business pays weekly salaries of $20,000 on Friday for a five-day week ending on that day. The...
A: The use of adjusting entries can assist any accounting transaction. The five most common are accrued...
Q: ed reserve ratio of supply will increa eposits.]
A: Given in the question -
Q: 4 Use the following to calculate pretax income (IBT): $ 5,000 Sales revenue 4,000 Cost of goods sold...
A: Pre-tax income: It refers to the income earned by the business before deducting the tax expense. ...
Q: 80% investment in Sarah Company. The acquisition cost was equal to Piolo equity in Sarah net assets ...
A: The question is related to Consolidation. The details are as under Share of Piolo Company in Sarah ...
Q: A company reported the following data: • Sales price per unit: $10 • Fixed cost per month: $20,000 •...
A: Formula: Contribution margin = Sales price - variable cost
Q: Flowers Plc. owns a building that was acquired for £120, 000 on 1st July 2019. The year-end is on 31...
A: Formula: Straight line method = ( Asset cost - Salvage value ) / Useful life years
Q: What is the main difference between debt and equity
A: Debt basically refers to the liability that the organization take to run their business activities s...
Q: Bozo Company has total costs of $90,000 when it sells 20,000 units. If total fixed costs are $30,000...
A: The total cost of product= $ 90000 Total fixed cost= $ 30000 Total variable cost= Total cost- total ...
Q: Sun 8 Ski Corporation is the producer ofa ski goggle. Next period's budget data appear below. Sellin...
A: Margin of safety = Total no. of units sold - Break-even sales units where, Break-even sales units = ...
Q: :lf margin of safety ratio is 50% and sales increased by 30%, operating income will increase by 30% ...
A: The margin of safety can be defined as the difference between the expected level of sale and the br...
Q: P Company’s shareholders’ equity as of December 31, 2019 is P2,030,000. On January 1, 2020, P acquir...
A: The goodwill or gain on bargain purchase refers to the excess or short amount paid for the acquisiti...
Q: Garden Sales, Incorporated, sells garden supplies. Management is planning its cash needs for the sec...
A: Solution 2b: Merchandise Purchase Budget Particulars April May June Budgeted Cost of goods so...
Q: The following Trial Balance was prepared from the books of Maxwell Productions Ltd on December 31, 2...
A: In this question Trial Balance was prepared from the books of Maxwell Productions Ltd on December 31...
Q: Acklin Company has two products: A and B. The annual production and sales of Product A is 600 units ...
A: In this question, we will calculate the predetermined overhead rate (i.e., activity rate) for Activi...
Q: You were engaged by CITY CORPORATION, a publicly held company whose shares are traded on the Philip...
A: Shareholder's Equity Shareholder's equity which consist of ordinary shares and preference shares, Tr...
Q: Bulldogs Inc.’s capital structure consists entirely of long-term debt and common equity. The cost of...
A: Calculation of Proportion of Debt in the capital Structure Proportion of Debt = 100% - proportion ...
Q: Which of the following would be classified as a financing activity on a statement of cash flows? S...
A: Solution: Financing activity section of statement of cash flows reflects the net cash flows used to ...
Q: Select financial information from Marshall Inc. is shown below: 2022 2021 Receivables $423,018 $376,...
A: Average Accounts Receivables = Opening accounts receivables + Closing accounts receivables2 ...
Q: Susan and Stan Collins live in Iowa, are married and have two children ages 6 and 10. In 2020, Susan...
A: A tax credit is a monetary amount that taxpayers can deduct straight from their tax returns. Unlike ...
Q: 1 The company's bank statement shows a cash balance of $12,000. Comparing the company's cash records...
A: Hi! Thank you for the question As per the honor code, We’ll answer the first question since the exac...
Q: Teal Company, a major retailer of bicycles and accessories, operates several stores and is a publicl...
A: The question is related to Cash flow Statement. The Cash flow Statement is a summary of Cash receipt...
Q: The comparative partial balance sheets of Barry Company, for Years 1 below in condensed form. Year 2...
A: Barry Company Cash Flow Statement (Indirect Method) For the year ended December 31, Year 2 Cas...
Q: On January 1, 2017, Sydney Inc. issued P 5,000,000 face value, 5-year bonds at 109. Each P1,000 bond...
A: Compound financial instruments are instruments that have both debt and equity components. Both the c...
Q: Lights Incorporated calculates cost for an equivalent unit of production using the weighted-average ...
A: Under weighted average method, equivalent units is calculated basis closing WIP and transferred unit...
Q: Keri & Nick Consulting’s partners’ equity accounts reflected the following balances on August 31, 20...
A: The sharing of profit and loss in accordance with the profit and loss sharing ratio.it completely de...
Q: Which of the following would be included in the Lease Receivable account? I. Guaranteed residual va...
A: Unguaranteed residual value is the excess amount of residual value over its guaranteed residual valu...
Q: Explain in detail with examples of different methods for cash transactions, and the costs associated...
A: Accounting on a cash basis: When transactions are done in cash, the cash basis of accounting is util...
Q: amortized debt premium should be reported on the balance sheet of the insurer as a Group of answer ...
A: The bonds are issued at premium or discount to face value of bond. The issuer has to pay the premium...
Q: Sun & Ski Corporation is the producer of a ski goggle. Next period's budget data appear below. Selli...
A: Introduction:- The following formula used to calculate margin of safety as follows under:- margin of...
Q: The following information is made available in relation to the defined benefit plan of Marcos Compan...
A: RECONCILITION OF PLAN ASSETS PARTICULARS PLAN ASSETS FOR YEAR 2022 FAIR VALUE AS ON...
Q: Oak View Chemicals produces two main products, M-10 and M-20, and one by-product, B-60, from a singl...
A: GIVEN If Processed Further Product Units Produced Unit Sales Value at Split-off Add...
Q: Don Johnson is the management accountant for Cari-Blocks (CB), which manufactures specialty blocks...
A:
Q: Based on the following information, which of the following is closest to days' sales outstanding? •R...
A: Formula: Days sales outstanding = ( Accounts receivable / Revenues ) x 365 days
Q: What is the relative tax advantage of corporate debt if the corporate tax rate Tc = 21%, the persona...
A: Solution Cash dividend is the distribution of funds or money paid to stockholders generally as the p...
Q: A gain on the sale of a plant asset in the ordinary course of business should be presented in a stat...
A: A cash flow statement is a financial document that shows a company's overall cash position at the co...
Precilla, vice-president of operations for Sturgis National Bank, has instructed the bank's computer programmer to use a 365-day year to compute interest on depository
accounts (payables). Precilla also instructed the programmer to use a 360-day year to compute interest on loans (receivables). Discuss whether Precilla is behaving
in a professional manner.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Your client is preparing financial statements to show the bank. You know that he has incurred a refrigeration repair expense during the month, but you see no such expense on the books. When you question the client, he tells you that he has not yet paid the 1,255 bill. Your client is on the accrual basis of accounting. He does not want the refrigeration repair expense on the books as of the end of the month because he wants his profits to look good for the bank. Is your client behaving ethically by suggesting that the refrigeration repair expense not be booked until the 1,255 is paid? Are you behaving ethically if you agree to the clients request? What principle is involved here?Bev Wynn, Vice President of operations for Dillon County Bank, has instructed the banks computer programmer to use a 365-day year to compute interest on depository accounts (liabilities). Bev also instructed the programmer to use a 360-day year to contour interest on loans (assets). Is bev behaving in a professional manner?Ray, the owner of a small entity, asked Holmes, CPA, to conduct an audit of the entity’s records. Ray told Holmes that the audit was to be completed in time to submit audited financial statements to a bank as part of a loan application. Holmes immediately accepted the engagement and agreed to provide an auditors’ report within three weeks. Ray agreed to pay Holmes a fixed fee plus a bonus if the loan was granted.Holmes hired two accounting students to conduct the audit and spent several hours telling them exactly what to do. Holmes told the students not to spend time reviewing the controls but instead to concentrate on proving the mathematical accuracy of the ledger accounts and on summarizing the data in the accounting records that support Ray’s financial statements. The students followed Holmes’ instructions and, after two weeks, gave Holmes the financial statements, which did not include footnotes. Holmes studied the statements and prepared an unmodified auditors’ report. The…
- Osborne Shipbuilding Company, located in Baton Rouge, receives large remittances from its customers in New York and California. If the firm deposits these checks in its local bank, two business days are required for the checks toclear and the funds to become usable by the firm. However, if Osborne sends an employee to New York or Californiaand presents the check for payment at the bank upon which it is drawn, the funds are available immediately to thefirm. The firm can earn 8% per annum on short-term investments, and the cost of sending an employee to New Yorkor California to present the check for payment is $500. What is the net benefit to the firm of employing this specialhandling technique for a $5 million check received on Tuesday? (Assume 365 days per year.)As the manager of the accounts receivable department for Beavis Leather Goods, Ltd., you recently noticed that Kelly Collins, your accounts receivable clerk who is paid $12000 per month, has been wearing unusually tasteful and expensive clothing. (This is Beavis's first year in business.) This morning, Collins drove up to work in a brand new Lexus. Naturally suspicious by nature, you decide to test the accuracy of the accounts receivable balance of $1,320,000 as shown in the ledger. The following information is available for your first year (precisely 9 months ended September 30, 2010) in business. Collections from customers .......................$1,980,000 Merchandise purchased................................3,600,000 Ending merchandise inventory........................900,000 Goods are marked to sell at 40% above cost. Please draft a memo dated on October 3, 20x7 to Jay Corales, the branch manager explaining the fact in this situation. Remember that this problem is serious and you…As the manager of the accounts receivable department for Beavis Leather Goods, Ltd., you recently noticed that Kelly Collins, your accounts receivable clerk who is paid $12000 per month, has been wearing unusually tasteful and expensive clothing. (This is Beavis's first year in business.) This morning, Collins drove up to work in a brand new Lexus. Naturally suspicious by nature, you decide to test the accuracy of the accounts receivable balance of $1,320,000 as shown in the ledger. The following information is available for your first year (precisely 9 months ended September 30, 2010) in business. Collections from customers .......................$1,980,000 Merchandise purchased................................3,600,000 Ending merchandise inventory........................900,000 Goods are marked to sell at 40% above cost. Please provide me a long detailed draft of memo dated on October 3, 20x7 to Jay Corales, the branch manager explaining the fact in this situation. Please make the…
- As the manager of the accounts receivable department for Beavis Leather Goods, Ltd., you recently noticed that Kelly Collins, your accounts receivable clerk who is paid $12000 per month, has been wearing unusually tasteful and expensive clothing. (This is Beavis's first year in business.) This morning, Collins drove up to work in a brand new Lexus. Naturally suspicious by nature, you decide to test the accuracy of the accounts receivable balance of $1,320,000 as shown in the ledger. The following information is available for your first year (precisely 9 months ended September 30, 2010) in business. Collections from customers .......................$1,980,000 Merchandise purchased................................3,600,000 Ending merchandise inventory........................900,000 Goods are marked to sell at 40% above cost. Please draft a LONG, WELL EXPLAINED, and FORMAL memo dated on October 3, 20x7 to Jay Corales, the branch manager explaining the fact in this situation. Remember…As the manager of the accounts receivable department for Beavis Leather Goods, Ltd., you recently noticed that Kelly Collins, your accounts receivable clerk who is paid $12000 per month, has been wearing unusually tasteful and expensive clothing. (This is Beavis's first year in business.) This morning, Collins drove up to work in a brand new Lexus. Naturally suspicious by nature, you decide to test the accuracy of the accounts receivable balance of $1,320,000 as shown in the ledger. The following information is available for your first year (precisely 9 months ended September 30, 2010) in business. Collections from customers .......................$1,980,000 Merchandise purchased................................3,600,000 Ending merchandise inventory........................900,000 Goods are marked to sell at 40% above cost. Draft a memo dated on October 3, 20x7 to Jay Corales, the branch manager explaining the fact in this situation. Remember that this problem is serious and you do not…As the manager of the accounts receivable department for Beavis Leather Goods, Ltd., you recently noticed that Kelly Collins, your accounts receivable clerk who is paid $12000 per month, has been wearing unusually tasteful and expensive clothing. (This is Beavis's first year in business.) This morning, Collins drove up to work in a brand new Lexus. Naturally suspicious by nature, you decide to test the accuracy of the accounts receivable balance of $1,320,000 as shown in the ledger. The following information is available for your first year (precisely 9 months ended September 30, 2010) in business. Collections from customers .......................$1,980,000 Merchandise purchased................................3,600,000 Ending merchandise inventory........................900,000 Goods are marked to sell at 40% above cost. Assuming all sales were made on account, compute the ending balance that should appear in the ledger, noting any apparent shortage.
- Osborne Shipbuilding Company, located in Baton Rouge, receives large remittances from its customers in New York and California. If the firm deposits these checks in its local bank, two business days are required for the checks to clear and the funds to become usable by the firm. However, if Osborne sends an employee to New York or California and presents the check for payment at the bank upon which it is drawn, the funds are available immediately to the firm. The firm can earn 8% per annum on short-term investments, and the cost of sending an employee to New York or California to present the check for payment is $500. What is the net benefit to the firm of employing this special handling technique for a $5 million check received on Tuesday? (Assume 365 days per year.)The president of the retailer Prime Products has just approached the company’s bank with a request for a$30,000, 90-day loan. The purpose of the loan is to assist the company in acquiring inventories. Becausethe company has had some difficulty in paying off its loans in the past, the loan officer has asked for a cashbudget to help determine whether the loan should be made. The following data are available for the monthsApril through June, during which the loan will be used:a. On April 1, the start of the loan period, the cash balance will be $24,000. Accounts receivable onApril 1 will total $140,000, of which $120,000 will be collected during April and $16,000 will becollected during May. The remainder will be uncollectible.b. Past experience shows that 30% of a month’s sales are collected in the month of sale, 60% in themonth following sale, and 8% in the second month following sale. The other 2% represents bad debtsthat are never collected. Budgeted sales and expenses for the…Suppose that the company has a balance sheet as follows at the beginning of the year. In that single year, the following transactions occur. One of the customers pays his $1,400 amount of debt by check. The company immediately pays its $1,200 amount of debt by endorsing these checks. After a while, another customer pays $900 cash for an outstanding debt. The company deposits $800 of this amount to its bank. Then, the company decides to pay one half of its debts via EFT(electronic funds transfer), and the other half of its debts by issuing its own checks. Lastly, the payee cashes these checks from the bank. Assuming that there are no more transactions throughout the year, what would be the total asset at the end of that year?