All categories

3 years ago

The following is the ending balances of accounts at December 31, 2018 for the Weismuller Publishing Company.

Business

1 answer:

Crazy boy [7]3 years ago

8 0

Answer:

Weismuller Publishing Company

A Classified Balance Sheet at December 31, 2018

Assets:

Current Assets:

Cash $77,000

Accounts Receivable 172,000

less allowance 22,000 150,000

Investments 152,000

Inventories 291,000

Prepaid Expenses 94,000 $764,000

Long-term Assets:

Prepaid Expenses 66,000

Machinery & Equipment 332,000

less Accumulated Depr. 116,000 216,000 $282,000

Total Assets $1,046,000

Current Liabilities:

Accounts payable $66,000

Interest payable 26,000

Deferred revenue 86,000

Taxes payable 36,000

Notes payable:

Six months 46,000

One year 26,000 72,000 $286,000

Long-term Liabilities:

Notes payable:

Two or more years 52,000

Six years 106,000 $158,000

Total Liabilities $444,000

Equity:

Authorized Common Stock, 700,000 shares

Issued Common Stock $406,000

Retained Earnings 196,000 $602,000

Total Liabilities + Equity $1,046,000

Explanation:

a) Prepaid Expenses are classified as follows:

Current Assets: $160,000 - $66,000 = $94,000

Long-Term Assets = $66,000 ($132,000/2)

Since a year's lease is due in the next year.

b) Investments are classified as current because they include treasury bills maturing on January 30, 2019, and marketable securities saleable next year.

c) Deferred Revenue is a current liability.

d) The classifications of notes payable are indicated in the balance sheet.

You might be interested in

An employee was suspended for two weeks for drug use. Six months later, the employee was fired from the job because her producti

kobusy [5.1K]

I believe it’s Involuntary Turnover. There’s a Quizlet that uses this exact same scenario that defines it as Involuntary Turnover

8 0

2 years ago

Which statement defines equilibrium in a graph showing demand and supply curves? A. It is the point where the demand and supply

bagirrra123 [75]

Answer:

The answer is A.

Explanation:

It is the point where the demand and supply curve intersect

7 0

3 years ago

Read 2 more answers

A manufacturing cell consists of 12 identical machines. At any given time, one or more of the machines may be inoperable. The op

elena-s [515]

Answer

The answer and procedures of the exercise are attached in the attached archives.

Explanation

Please consider the information provided by you in the exercise. If you have any question please write me back. Please take a look to the image attached.

5 0

3 years ago

If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at:__________

Gwar [14]

Answer:

a. a discount

Explanation:

Options are "a. a discount. b. a premium, c. par, d. either a discount or premium"

If the market interest rate for a bond is higher than the stated interest rate, the bond will sell at a discount. If Bond Coupon rate (Stated Interest rate) is Lower than YTM (Market Interest Rate) or YTM > Coupon rate Then Bond is selling at a Discount.

5 0

3 years ago

Requirement 3. Explain the accuracy of the product costs calculated using the simple costing system and the ABC system. How migh

Novay_Z [31]

Answer:

Explanation:

DIFFERENCES BETWEEN ACTIVITY-BASED (ABC) AND SIMPLE COSTING SYSTEMS

The major differences relate to the two-stage allocation process. In the first stage, simple costing system allocates indirect costs to cost centers (normally departments), whereas activity-based systems allocate indirect costs to cost centres based o activities rather than departments. Since there are more activities than departments a distinguishing feature is that activity-based system will have a greater number of costs centres in the first stage of the allocation process. in the second stage, simple costing system uses a limited number of different types of second stage volume based and non-volume-based cause-and-effect second stage drivers.

SIMPLE COSTING SYSTEM CAN PROVIDE MISLEADING INFORMATION FOR DECISION MAKING DECISIONS

The system tends to rely on arbitrary allocations of indirect costs, they rely on volume-based allocations. If volume-based allocation is used, high volume products are likely to be assigned with greater proportion of indirect cost than they have consumed, whereas low volume products will be assigned will be assigned a lower proportion. in these circumstances simple costing system will over cost high volume products and under costs low volume products. In contrast ABC system recognize that many indirect costs vary in proportion to changes to changes other than production volume.by identifying the cost drivers that cause the costs to change and assigning cost to cost objects on the basis of cost driver usage, costs can be more accurately traced . it is believed the cause-and effect relationship provides a superior way of determining relevant costs.

FOUR STAGES INVOLVED IN DESIGNING ABC

• identify the major activities that take place in an organisation

• Create a cost centre/cost pool for each activity

• Determine the cost driver for each major activity

• Trace the cost of activity to the product according to a products demand (using cost drivers as a measure of demand) for activities

ABC COST HIERARCHY

ABC cost hierarchy classifies activities along a cost hierarchy consisting of unit-level, batch-level, product sustaining, and facility-sustaining product. Unit level activities are performed each time a unit other product or service is produced. Examples include direct labour costs. Batch level activities are performed each time a batch is produced. Examples include setting up a machine or processing a purchase order. product sustaining activities are performed to enable the production and sale of individual product. Examples include the technical support provided for individual products and the resources required for performing product enhancement. Facility sustaining activities are performed to support the facility’s process. They include general administrative staff.

ABC PROFITABILITY ANALYSIS HIERARCHY

Categorizes costs according to their variability at different hierarchical levels to report different hierarchical contribution level. At the final level,

Facility or business-sustaining costs are deducted from the sum of product contributions to derive a profit at a business level unit.

The aim is to assign all organizational expenses to a hierarchical or organizational level where cause-and-effect cost assignment can be established so that arbitrary apportionments are non-existent.

5 0

3 years ago