The following are the transactions for the month of July.

Jane is an employee of Tyco, Inc. and she is in charge of payroll. Every week she issues a check in the name of a fictitious emp

KengaRu [80]

Answer:

b. Tyco is liable because it authorized Jane to issue payroll checks.

Explanation:

There is the company responsibility to put the right person for the specific job. Here in the given situation Jane would not be a liable person for an vital position of the company. in the case when the fraud done by the employee so the firm would be liable as the company provide the authorization to the person who have to perform that job

Therefore, the option b is correct

4 0

3 years ago

ATech has fixed costs of $7 million and profits of $4 million. Its competitor, ZTech, is roughly the same size and this year ear

Triss [41]

Answer: Degree of Operating Leverage

A Tech = 2.75

Z Tech = 3

Explanation:

As defined in question itself,

Degree of Operating Leverage = $1 + \frac{fixed\ cost}{Profit}$

As here, it is provided that profit for both the companies are same amounting $4 million.

Although the fixed cost differ by $1 million.

A Tech Degree of operating Leverage = 1 + $\frac{7,000,000}{4,000,000}$ = 2.75

Z Tech Degree of Operating Leverage = 1 + $\frac{8,000,000}{4,000,000}$ = 3

This clearly demonstrates that A Tech will reach its break even faster than the Z Tech as the ratio of fixed cost to variable cost is lower in A tech in comparison to Z Tech.

5 0

3 years ago

Finer Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journa

BaLLatris [955]

Answer:

Finer Company

Sales Journal:

May 7 Debit Accounts Receivable (J. Dryer) $1,527

Credit Sales Revenue $1,527

To record the sale of goods on terms 2/10, n/30, via invoice no. 5704.

May 12 Debit Accounts Receivable (R. Lamb) $421

Credit Sales Revenue $421

To record the sale of goods on terms n/30, via invoice no. 5705.

May 25 Debit Accounts Receivable (T. Taylor) $691

Credit Sales Revenue $691

To record the sale of goods on terms n/30, via invoice no. 5706.

Explanation:

a) Data and Analysis for Sales Journal:

May 7 Accounts Receivable (J. Dryer) $1,527 Sales Revenue $1,527 terms 2/10, n/30, invoice no. 5704.

May 12 Accounts Receivable (R. Lamb) $421 Sales Revenue $421 terms n/30, invoice no. 5705.

May 25 Accounts Receivable (T. Taylor) $691 Sales Revenue $691 terms n/30, invoice no. 5706.

8 0

3 years ago

According to a summary of the payroll of Mountain Streaming Co., $110,000 was subject to the 6.0% social security tax and the 1.

Rainbow [258]

Answer:

a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 5.4%; federal unemployment, 0.8%.

$9,800

b. Journalize the entry to record the accrual of payroll taxes. If an amount box does not require an entry, leave it blank.

Dr FICA Social Security expense 6,600
Dr FICA Medicare expense 1,650
Dr Federal unemployment tax expense 200
Dr State unemployment tax expense 1,350
Cr FICA Social Security payable 6,600
Cr FICA Medicare payable 1,650
Cr Federal unemployment tax payable 200
Cr State unemployment tax payable 1,350

Explanation:

payroll taxes should be:

social security $110,000 x 6% = $6,600

Medicare $110,000 x 1.5% = $1,650

federal unemployment $25,000 x 0.8% = $200

state unemployment $25,000 x 5.4% = $1,350

total = $9,800

Both employees and employers must pay equal amounts of FICA taxes (social security and medicare), but only employees pay unemployment taxes.

8 0

3 years ago

Hiro owns and operates a small business that provides economic consulting services. During the year he spends $57,000 on travel

tino4ka555 [31]

Answer: D. Since Hiro’s economic profit is negative, he would be better off if he didn’t operate the consulting business and taught economics instead.

Explanation:

Economic Cost is calculated by taking into account all costs, both Implicit and Explicit. Implicit Costs are also known as Opportunity costs and are referred to as the income you could be earning if you were doing the alternative.

Hiro's Economic Cost can hence be calculated by,

Economic Cost = Implicit costs + Explicit Costs

= (50,000 + 100) + 57,000

= <em>$107,000</em>

Subtracting that from his Revenue per year gives,

= 100,000 - 107,000

= -<em>$7,000</em>

Hiro is experiencing an Economic Loss by operating his business and would be better off Teaching Economics at the small local college.

8 0

3 years ago