Answer:
Maximum business interest deduction that George will be eligible to claim this year will be $525,300
Explanation:
Maximum business interest deduction is 30% of Adjusted Taxable income (ATI)
Adjusted Taxable income (ATI) = 1260000+240500+250500= $1,751,000
Maximum business interest deduction = 1751000*30%= $525300
Answer: See explanation
Explanation:
The question is:
1. What is the service department charge rate for Graphics Production?
a.$10.00
b.$2.00
c.$0.50
d.$6.66
The service department charge for Graphics Production will be calculated by dividing the cost of graphic production by the total number of copies that are made. This will be:
= $200000/(20000 + 30000 + 50000)
= $200,000 / 100,000
= $2 per copy
2. How much service department cost will be allocated to the Micro Division?
a.$200,000
b.$145,000
c.$345,000
d.$60,000
The service department cost that is allocated to the Micro Division will be calculated as:
= [20000 x ($200000/100000)] + [700 x ($500000/2000)] + [130 x ($400000/400)]
= (20000 × 2) + (700 × 250) + (130 × 1000)
= $40000 + $175000 + $130000
= $345000
Answer:
The correct answer would be, Greg's next step is to roll out his Tactical Goals to his staff.
Explanation:
Greg is the division manager for Tasty Foods. His management set a goal of increasing market share and decreasing the corporate cost over the period of next three years. To cope up with this goal, Greg has to work on this from now onward. So he decides how his division can contribute to the fulfillment of these management goals. He looking into his resources and planned two possible options. One is to partnering with another company and the other is to hire a procurement manager to negotiate lower prices from vendors. Now as he has formulated these goals, which are tactical in nature, the next step is to roll out these tactical goals to hi staff. Tactical goals are the goals that are set quickly in response to the conditions or situations as they occur in the real world.
Answer:
b. Salaries and Wages Expense 400 Salaries and Wages Payable 400
Explanation:
The expense shall be recognized in the accounts of Colleen's employer at September 30, in respect of the salary earned by Colleen Mooney for the last week of September.
The following adjusting entry shall be recorded in Colleen's employer accounts:
Debit Credit
Salaries and Wages Expense 400
Salaries and Wages Payable 400
Based on above journal entry, the answer shall be b. Salaries and Wages Expense 400 Salaries and Wages Payable 400
Answer:
This would affect the income statement by having expenses
c. understated and therefore net income overstated revenues
Explanation:
Adjusting Entry:
It is such entry which is added at the end of the fiscal period in order to make the income statement accurate.
Overstated:
In Accounting, overstated amount means that amount is greater than the true amount.
Understated:
In Accounting, if an amount is less than the true amount then it is known as understated.
- As in our case, the adjusting entry for supplies was not added so in this way expenses became understated means they become less as compared to actual expenses. Therefore, revenues overstated.
