Both the employee and the employer contribute to the F.I.C.A. fund and to the Medicare program. True or False

Debora [2.8K]

B is going to be your answer

8 0

3 years ago

Jones Company sells an average of 200 chairs per week, of which 30% are regular chairs and 70% are executive chairs. Regular cha

MissTica

Answer:

Contribution margin per unit: $42.9

Total contribution margin: $8,580

Explanation:

The contribution margin per unit is calculated by calculating the total contribution margin, which is basically the total sales, minus the costs of production, in this cae we have that we sold:

60 regular chairs

140 executive charis

Now the total in sales is:

Regular sales: $6,000

Executive chairs: $23,800

The variable cost of each is:

Regular chairs: $3720

Executive chairs: $17,500

We add up the sales and withdraw from it the total variable cost:

29,800-21,220=8,850

The total contribution margin is equal to $8850.

And the contribution margin per unit is given by dividing the total contribution margin by the number of units sold:

8850/200= 42.9

So the contribution margin per unit is 42.9 dollars.

7 0

3 years ago

Steel Company as lessee signed a lease agreement for equipment for 5 years, beginning December 31, 2017. Annual rental payments

balu736 [363]

Answer:

a.

Debit Credit

December 31, 2017

Lease Equipment Under Capital Leases $166,794

Lease Liability $166,794

December 31, 2017/January 1, 2018

Lease Liability $40,000

Cash $40,000

b. Debit Credit

December 31, 2018

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2018/January 1, 2019

Interest Expense $12,679

Lease Liability $27,321

Cash $40,000

c. Debit Credit

December 31, 2019

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2019/January 1, 2020

Interest Expense $9,947

Lease Liability $30,053

Cash $40,000

d. Balance Sheet

December 31,2019

Property Plant and Equipment Current Liabilities

Leased Equipment Under Capital Leases $166,794 Lease Liability $33,058

Less Accumulated Depreciation $47,656

$119,138 Long Term

Lease Liability $36,362

Explanation:

a. The journal entries, that should be recorded on January 1, and December 31, 2017, by Steel would be as follows:

Debit Credit

December 31, 2017

Lease Equipment Under Capital Leases $166,794

Lease Liability $166,794

December 31, 2017/January 1, 2018

Lease Liability $40,000

Cash $40,000

Lease Equipment Under Capital Leases=(40,000*PVIFA(10%,Years = 40,000*4.16986))= $166,794

b. The journal entries, that should be recorded on January 1 and December 31, 2018, by Steel would be as follows:

Debit Credit

December 31, 2018

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2018/January 1, 2019

Interest Expense $12,679

Lease Liability $27,321

Cash $40,000

Depreciation Expense= (166,794/7)=$23,828

Interest Expense [(166,794 - 40,000)*10%]=$12,679

Lease Liability=(40,000 - 12,679)=$27,321

c. The journal entries, that should be recorded on January 1, and December 31, 2019, by Steel would be as follows:

Debit Credit

December 31, 2019

Depreciation Expense $23,828

Accumulated Depreciation $23,828

December 31, 2019/January 1, 2020

Interest Expense $9,947

Lease Liability $30,053

Cash $40,000

d. The amounts that would appear on Steel's December 31, 2019, balance sheet relative to the lease arrangement would be as follows:

Balance Sheet

December 31,2019

Property Plant and Equipment Current Liabilities

Leased Equipment Under Capital Leases $166,794 Lease Liability $33,058

Less Accumulated Depreciation $47,656

$119,138 Long Term

Lease Liability $36,362

8 0

4 years ago

Moyas corporation sells a single product for $20 per unit. last year, the company's sales revenue was $300,000 and its net opera

lianna [129]

Net operating income was $24000
Fixed expenses=$96000
Sales=$300000
cost per unit=$20
unit sales=$15000 units
CM=$120,000
CM per unit=$8
BE units=FC/CM per unit=96000/8=12,000 units

5 0

3 years ago

Read 2 more answers

Feeney Furniture prepared the following sales budget: Month March April May June Cash Sales Credit Sales $11,000 0 $11,000 0 37,

Leviafan [203]

Answer:

Option (B) is correct.

Explanation:

Total cash collections in June:

= Cash sales + (62 percent of June credit sales) + (30 percent of May credit sales) + (5 percent of April credit sales)

= $60,000 + ($51,000 × 0.62) + ($37,000 × 0.30) + ($11,000 × 0.05)

= $103,270

Therefore, the total cash collections in June at Feeney Furniture is $103,270.

8 0

3 years ago