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WINSTONCH [101]
3 years ago
13

Jing Company was started on January 1, Year 1 when it issued common stock for $36,000 cash. Also, on January 1, Year 1 the compa

ny purchased office equipment that cost $16,000 cash. The equipment was delivered under terms FOB shipping point, and transportation cost was $2,100. The equipment had a five-year useful life and a $5,800 expected salvage value. Using double-declining-balance depreciation, what the amount of depreciation expense and the amount of accumulated depreciation, respectively, that would appear on the December 31, Year 3 financial statements
Business
1 answer:
san4es73 [151]3 years ago
5 0

Answer:

$716 and $12,300

Explanation:

Original Cost = $16,000 + $2,100

Original Cost = $18,100

Double decline rate = 100/5*2

Double decline rate = 40%

First Year Depreciation = $18,100*40%

First Year Depreciation = $7,240

Second Year Depreciation = $18,100*60%*40%

Second Year Depreciation = $18,100*0.60*0.40

Second Year Depreciation =  $4,344

Third Year Depreciation = ($18,100 - $7,240 -  $4,344 -$5,800)

Third Year Depreciation =  $716

Accumulated Depreciation = $7,240 +  $4,344 + $716

Accumulated Depreciation = $12,300

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Night Shades, Inc. (NSI), manufactures biotech sunglasses. The variable materials cost is $11.13 per unit, and the variable labo
dolphi86 [110]

Answer:

Part a. What is the variable cost per unit?

Variable Cost per Unit is $ 11.13+ $ 7.29 = $18.42

Part b. What are the total costs for the year?

Production for the year is 190000 units

Calculation of Total Production = Variable costs + Fixed Costs

                                                       = 190000 units × $18.42 + $875,000

                                                       =$ 4,374,800

Part c. If the selling price is $44.99 per unit, does the company break even on a cash basis?

The Company Breaks Even when

Total Sales Revenue = Total Production Costs

Total Sales Revenue = $44.99 × 190000

                                    = $ 8,548,100

Total Sales Revenue $ 8,548,100 > Total Production Costs $ 4,374,800

Therefore Company does break even on a cash basis

Part c. If depreciation is $435,000 per year, what is the accounting break-even point?

Total Production Costs = $4,374,800+$435000

                                       = $4,809,800

Therefore accounting break-even point is $4,809,800 Sales

Explanation:

Part a. What is the variable cost per unit?

Variable Cost are costs which Vary with the level of Activity.

Part b. What are the total costs for the year?

Calculation of Total Production Costs= Variable costs + Fixed Costs                                                  

Part c. If the selling price is $44.99 per unit, does the company break even on a cash basis?

Break-Even Point is the Point when the company neither makes a profit or a loss

Total Sales Revenue $ 8,548,100 > Total Production Costs $ 4,374,800

Therefore Company does break even on a cash basis

Part c. If depreciation is $435,000 per year, what is the accounting break-even point?

In simple terms the break even point in Sales Revenue is equal to all Variable plus fixed costs

5 0
3 years ago
Tony is the owner of Tony’s Taqueria. Tony is a profit-maximizing owner whose firm operates in a competitive market. An addition
Lisa [10]

Answer:

(c) $5

Explanation:

Remember, To calculate marginal cost, we divide the change in production costs by the change in quantity.

In this example, the change in production cost is $200 (for hiring an additional worker) while the change in quantity of taco is 40 (increase in marginal productivity).

The marginal cost= $200/40

we get $5 as the marginal cost.

5 0
3 years ago
Refer to Exhibit 9.3, which shows the cost and revenue curves for a non-discriminating monopolist. The total cost incurred by th
Gnom [1K]

Answer: $19,800

Explanation;

The Monopolist will maximize output at the point where Marginal Revenue equals Marginal Cost because at this point all resources are being fully utilized.

Total Cost = Average Total Cost * Quantity produced

At the point where MR=MC, the quantity produced is 1,100 units.

The Average Total Cost tallying with this is $18 per unit.

Total Cost = 18 * 1,100

= $19,800

3 0
3 years ago
Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respec
vichka [17]

Answer:

b. $290,000

Explanation:

The computation of the cash flows from operating activities to be reported on the statement of cash flows is shown below:

= Net income reported on the income statement + decrease in account receivable

where,

Net income reported = $280,000

And, the decrease in account receivable is $10,000 ($70,000 - $80,000)

So, the cash flow from operating activities

= $280,000 + $10,000

= $290,000

The decrease in account receivable implies that more cash is come so it would be added and the same is shown above

5 0
3 years ago
Swifty Corporation has 46,500 shares of $13 par value common stock outstanding. It declares a 15% stock dividend on December 1 w
Olin [163]

Answer:

Common stock dividend distributable = Par * Number of shares * % dividend

= 13 * 46,500 * 15%

= $90,675

Stock Dividend = Number of shares * market price * % dividend

= 46,500 * 18 * 15%

= $125,550

Date          Account Title                                                 Debit               Credit

Dec, 1        Stock Dividend                                          $125,550

                 Common Stock Dividend Distributable                            $90,675

                  Paid in Capital in excess of Par-                                       $34,875

                  Common stock

Date          Account Title                                                 Debit               Credit

Dec, 31      Common Stock Dividend Distributable     $90,675

                 Common Stock                                                                  $90,675

4 0
3 years ago
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