What is a public sector wage bill ?

A company bought new heating system for $64,000 and was given a trade-in of $3,400 on an old heating system, so the company paid

zheka24 [161]

Answer:

$64,000

Explanation:

The Cost price of the item Acquired is measured at fair value. When the Fair Value of Both the Asset Acquired and Asset given up can be determined reliably, the fair value of the asset given up will be used. Unless, the fair value of the asset acquired is more evident, that value may be used.

Measurement of New Heating System :

Cash $60,600

Add Trade In Value $3,400

Total $64,000

7 0

3 years ago

Pina Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs i

Ivahew [28]

Answer:

a) Net income using incremental analysis is  $692

b) PINA should accept the order because it will increase its net income by $692

Explanation:

The relevant cash flows for decision to accept or reject the special order are

I. the incremental contribution from of producing 5,350 units

2. The incremental fixed cost- 45,374

Note that whether or not the special order is accepted the fixed cost of manufacturing would be incurred either way.

Contribution per unit =Selling price - Variable cost

Variable production cost per unit = total variable cost / units

= (10,945 + 29651 + 21094)/19,900

=$3.1

Variable cost per unit of sale = $3.1 + $0.35 = $3.45

a) Incremental Analysis

Change in Net Income: $

Incremental contribution :

( 4.77 - 3.45) × 5,350 = 7,062

Increase in Fixed cost :

(45,374 - 39,004) ( 6370)

Net income 692

b)  PINA should accept the order because it will increase its net income by $692

6 0

3 years ago

Woolsey Corporation, a U.S. company, expects to sell goods to a British customer at a price of 250,000 pounds, with delivery and

iragen [17]

Answer:

C. $10,000 positive.

Explanation:

The computation of the amount that should be included is shown below:

= (Option strike price - spot rate) × purchased put options

= ($2.17 - $2.13) × 250,000

= $10,000

As the spot rate is less than the strike price so automatically there is a gain of $10,000

Hence, the option c is correct

5 0

3 years ago

Esquire Company needs to acquire a molding machine to be used in its manufacturing process. Two types of machines that would be

In-s [12.5K]

Answer: Machine B because it has the lower Present Value

Explanation:

<h2>Machine A</h2>

= Present Value of income - Present Value of Costs

Present value of Income;

Sold for $5,000 after 10 years.

= 5,000/ (1 + 8%)^10

= $2,315.97

Present Value of Costs;

Purchased for $48,000.

Maintenance of $1,000 per year for years.

Present value of maintenance= 1,000 * Present value factor of annuity, 10 years, 8%

= 1,000 * 6.7101

= $6,710.10

Machine A Present Value

= 2,315.97 - 6,710.10 - 48,000

= ‭-$52,394

<h2>Machine B</h2>

No salvage value.

Present Value of costs

Purchased for $40,000.

Present value of maintenance = (4,000 / (1 + 8%)^3) + (5,000 / ( 1 + 8)^6) + (6,000 / ( 1 + 8%)^8)

= -$9,567.79

Present Value = -40,000 - 9,567.79

= -$49,568

5 0

3 years ago

Mayfair Co. allows select customers to make purchases on credit. Its other customers can use either of two credit cards: Zisa or

alexandr402 [8]

Answer:

June 4 Sold $650 of merchandise (that had cost $400) on credit to Natara Morris.

June 4

Dr Accounts receivable 650

Cr Sales revenue 650

June 4

Dr Cost of goods sold 400

Cr Inventory 400

5 Sold $6,900 of merchandise (that had cost $4,200) to customers who used their Zisa cards.

June 5

Dr Accounts receivable 6,693

Dr Credit card fees 207

Cr Sales revenue 6,900

June 5

Dr Cost of goods sold 4,200

Cr Inventory 4,200

June 5, after Zisa transfers the money

Dr Cash 6,693

Cr Accounts receivable 6,693

6 Sold $5,850 of merchandise (that had cost $3,800) to customers who used their Access cards.

June 6

Dr Unbilled revenue 5,733

Dr Credit card fees 117

Cr Sales revenue 5,850

June 6

Dr Cost of goods sold 3,800

Cr Inventory 3,800

8 Sold $4,350 of merchandise (that had cost $2,900) to customers who used their Access cards.

June 8

Dr Unbilled revenue 4,263

Dr Credit card fees 187

Cr Sales revenue 4,350

June 8

Dr Cost of goods sold 2,900

Cr Inventory 2,900

10 Submitted Access card receipts accumulated since June 6 to the credit card company for payment.

June 10

Dr Accounts receivable 9,996

Cr Unbilled revenue 9,996

13 Wrote off the account of Abigail McKee against the Allowance for Doubtful Accounts. The $429 balance in McKee’s account stemmed from a credit sale in October of last year.

June 13

Dr Bad debt expense 429

Cr Allowance for doubtful accounts 429

17 Received the amount due from Access.

June 17

Dr Cash 9,996

Cr Accounts receivable 9,996

18 Received Morris’s check in full payment for the purchase of June 4.

June 18

Dr Cash 650

Cr Accounts payable 650

3 0

3 years ago