A manufacturer that produces standard products in large volumes is likely to be using a(n):

Below are several transactions for Scarlet Knight Corporation. A junior accountant, recently employed by the company, proposes t

hram777 [196]

Answer:

Scarlet Knight Corporation

Posting of transactions:

1. Owners invest $5,500 in the company and receive common stock. Common Stock 5,500 Cash 5,500

Wrong. Correct Posting: Cash 5,500 Common Stock 5,500

2. Receive cash of $2,100 for services provided in the current period. Cash 2,100 Service Revenue 2,100

Correct.

3. Purchase office supplies on account, $110. Supplies 110 Cash 110

Wrong. Correct Posting : Supplies 110 Accounts Payable 110

4. Pay $410 for next month's rent. Rent Expense 410 Cash 410

Wrong. Correct Posting: Rent Prepaid 410 Cash 410

5. Purchase office equipment with cash of $1,250. Cash 1,250 Equipment 1,250

Wrong. Correct Posting: Equipment 1,250 Cash 1,250

Explanation:

1. Owners invest $5,500 in the company and receive common stock. Cash is increased and Common Stock increased by $5,500.

2. 2. Receive cash of $2,100 for services provided in the current period.

Cash is increased and Service Revenue increased by the same amount.

3. Purchase office supplies on account, $110.

No cash payment is involved with this transaction since it was on account. The accounts involved and which increased by $110 are Supplies and Accounts Payable.

4. Pay $410 for next month's rent. The amount is for next month. As such no Rent Expense account is involved. Instead, the accounts involved are Rent Prepaid and cash. While Rent Prepaid increases, Cash is reduced.

5. Purchase office equipment with cash of $1,250. Equipment received value and will increase by $1,250 while Cash gave value and will reduced by $1,250 and not vice versa.

6 0

3 years ago

The daily demand for parts from a machining workcell JMB to an assembly workcell is 1,600 units. The average processing time is

Karolina [17]

Answer:

Daily demand for parts = 1600 units

Avg processing time = 25 seconds.

Capacity of a container = 250 units

Waiting time of a container before the JMB = 6 hours

Number of containters currently deployed = 10

Solution:

Total number of parts carried by the containter = 10 x 250 = 2500 parts.

Total numbers carried in excess as safety stock = 2500-1600 = 900

Percentage of safety stock = (900/1600) x 100 = 56.25%

If one container is removed total parts carried = 2250 units

Processing time at machine for 250 parts after loading in JMB = 250 x 25 seconds = 1.736 hours, but it has to wait for another 4.26 hours for the next container to be loaded because of the waiting time of the containter is 6 hours.

Processing time at machine for 1600 parts = 1600 x 25 seconds = 11.11 hours

Number of containers required for 1600 parts = 1600/250= 6.4 ~ 7 containters

Waiting time of 7 containers = 7 x 4.26 = 29.82 hours.

If one of the containers has to be removed 1600 parts has to be carried in 6 containers ie., 29.82hours - 6 hours = 23.82hours

Waiting time per container before loading = 23.82/6 = 3.97 hours.

Reduced Total waiting time of the container = 3.97 hours + the processing time of 250 parts = 3.97 + 1.736 =5.7hours ~ 5 hours and 42 minutes

4 0

3 years ago

Automakers began rewarding dealers with financial incentives long before dealership customers started getting them, too. Recipie

frozen [14]

Answer:

Spiff

Explanation:

Spiff: It is an financial incentive paid by manufacturer or employer to the salesperson for directly selling it´s product., sometime it is paid on achieving sales target by salesperson. It encourage seller to make more sales. Spiff stand for Sales performance Incentive Fund and it is paid quicker than commission.

In the given case, Automaker is paying spiff to dealers to encourage sales of it´s own brand over a competitor's product sold at the same store.

8 0

2 years ago

Imagine that two goods are available to you: apples (X) and pears (Y). You like apples half as much as pears. If your fruit budg

goldenfox [79]

Answer:

the value of the MktRS (market rate of substitution) is 0

Explanation:

The computation of the market rate of substitution is shown below:

Since it is mentioned that

You like apples half as pears

So the equation would be

X = 1 ÷ 2 Y

X ÷ Y = 1 ÷ 2

Now the market rate of substitution of the price is

= $2 ÷ $4

= 1 ÷ 2

So,

= 1 ÷ 2 - 1 ÷ 2

= 0

Hence, the value of the MktRS (market rate of substitution) is 0

The same is to be considered

3 0

2 years ago

Ware Co. produces and sells motorcycle parts. On the first day of its fiscal year, Ware issued $35,000,000 of five-year, 12% bon

nlexa [21]

Answer:

Cash proceeds is $37,702,607.23

First premium amortization $214,869.64

Second premium amortization is $225,613.12

First year interest expense is $ 3,759,517.24

Explanation:

The amount of cash proceeds from the bond issue is the pv of the bond using the pv formula,=-pv(rate,nper,pmt,fv)

rate is 10% yield to maturity divided 2 since interest is semi-annual i.e 5%

nper is 5 years multiplied by 2=10

pmt is the semi-annual interest payable by the bond i.e $35,000,000*12%*6/12=$2,100,000

fv is the face value of the bond at $35,000,000

=-pv(5%,10,2100000,35000000)

pv=$37,702,607.23

The amount of premium to be amortized in first semi-annual interest payment:

Interest expense=$$37,702,607.23*10%/2=$1,885,130.36

coupon interest=$35,000,000*12%/2=$2,100,000

Premium amortized=$2,100,000-$1,885,130.36

premium amortized=$214,869.64

The amount of premium to be amortized in second semi-annual interest payment:

interest expense=($37,702,607.23+$2,100,000-$1,885,130.36)*10%/2

=$1,874,386.88

Premium amortized=$2,100,000-$1,874,386.88

premium amortized=$225613.12

Bond expense for the first payment= 37,702,607.23*10%/2

=$1,885,130.362

Bond expense for the first payment= 37,487,737.59 *10%/2

=$ 1,874,386.88

First year bond interest expense= 1,874,386.88+1,885,130.362

=$ 3,759,517.24

Find attached schedule in addition

Download xlsx

4 0

3 years ago