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inysia [295]
3 years ago
7

American Food Services, Inc., acquired a packaging machine from Barton and Barton Corporation. Barton and Barton completed const

ruction of the machine on January 1, 2016. In payment for the $4.7 million machine, American Food Services issued a four-year installment note to be paid in four equal payments at the end of each year. The payments include interest at the rate of 11%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Prepare the journal entry for American Food Services’ purchase of the machine on January 1, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
2. Prepare an amortization schedule for the four-year term of the installment note. (Enter your answers in whole dollars.
3. Prepare the journal entry for the first installment payment on December 31, 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
4. Prepare the journal entry for the third installment payment on December 31, 2018. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)
Business
1 answer:
Simora [160]3 years ago
6 0

Answer:

Following are the solution to this question:

Explanation:

Answer   \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  Installment  \ Amount  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ = \frac{4700000}{PVAF(11\%,4)} = 1,514,934

Answer \  1    \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \    Machinery A/c   \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \                     4,700,000\\\\

                     \text{To Lease Payable} A/C                    \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \                   4,700,000    \\\\ \text{(Being machine purchased on lease)}

Answer \ \ 2                   years \ \ \ \ \ \ \ \  Outstanding \ \ Amount  \ \ \ \ \ \ \ \ Installment \ \ \ \ \ \ \ \ Interest (11 \%)   \ \ \ \ \ \ \ Closing \ on \ Due \\\\    0   \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  4,700,000  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \ \ \ \ \ \ \  \ \ \ \  \ \ \ \ \ \ \ \ \ \ \ \          \ \ \ \ \ \ \ \ \     4,700,000   \\\\1    \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \     4,700,000    \ \ \ \ \ \ \ \ \ \ \ \    1514934      \ \ \ \ \ \ \ \ \ \ \ \ \ \     517000      \ \ \ \ \ \ \ \ \ \ \ \    3702066\\\\

2 \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3,702,066 \ \ \ \ \ \ \ \ \ \ \ \ \ \ 1514934  \ \ \ \ \ \ \ \ \ \ \ \ \ \ 407227 \ \ \ \ \ \ \ \ \ \ \ \ \ \   2594359 \\\\3  \ \ \ \ \ \ \ \ \ \ \ \ \ \  2,589,359  \ \ \ \ \ \ \ \ \ \ \ \ \ \    1514934  \ \ \ \ \ \ \ \ \ \ \ \ \ \     285380   \ \ \ \ \ \ \ \ \ \ \ \ \ \   1364805\\\\4  \ \ \ \ \ \ \ \ \ \ \ \ \ \       1,364,805   \ \ \ \ \ \ \ \ \ \ \ \ \ \  1514934   \ \ \ \ \ \ \ \ \ \ \ \ \ \    150129  \ \ \ \ \ \ \ \ \ \ \ \ \ \    0    \\\\

Answer \ \ 3        \ \ \ \ \ \ \ \ \ \ \ \ \ \          Lease Payable \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \  997,934

                            expenses \ \  Interest \ \ \ \ \ \ \ \ \ \ \ \ \ \      517,000\\\\                       To\ \ cash \  A/c    \ \ \ \ \ \ \ \ \ \ \ \ \ \                                     1,514,934 \\\\                   \text{(First Installment Paid)}            

Answer \ 4  \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \                   Lease payable     \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \                     1,229,554

                              expenses \ \                       Interest         \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \   285,380\\\\                          To cash A/c    \ \ \ \ \ \ \ \ \ \ \ \ \ \  \ \ \                                      1,514,934\\\\                  \text{(Third Installment Paid)}

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Brian lives in Chicago and runs a business that sells pianos. In an average year, he receives $793,000 from selling pianos. Of t
umka21 [38]

Answer:

Brian

1. Implicit and Explicit Costs:

Implicit costs:

The rental income Brian could receive if he chose to rent out his showroom

The salary Brian could earn if he worked as a financial advisor

Explicit costs:

The wages and utility bills that Brian pays

The wholesale cost for the pianos that Brian pays the manufacturer

2. Brian's accounting and economic profit of his piano business:

Accounting profit = $62,000

Economic profit (loss) = ($3,000)

Explanation:

a) Data and Calculations:

                               Accounting Profit     Economic Profit

Sales Revenue            $793,000                $793,000

Cost of pianos              430,000                   430,000

Wages and utility bills   301,000                    301,000

Implicit (Opportunity) Costs:

Rent                                                                   15,000

Salary as an accountant                                  50,000

Total costs                    731,000                    796,000

Profit (loss)                  $62,000                     ($3,000)

b) Implicit costs are opportunity costs.  They include the costs that arise from forgone benefits when another opportunity is taken instead of the other.  Explicit costs are costs that are actually incurred by taking an opportunity.

8 0
2 years ago
The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2022.
pishuonlain [190]

Answer:

Dependable Delivery Service

Classified balance sheet as at July 31, 2022

Non Current Assets

Equipment                                                  $59,360

Total Non Current Assets                          $59,360

Current Assets

Accounts Receivable                                  $11,400

Prepaid Insurance                                        $1,800

Cash                                                            $15,940

Total Current Assets                                  $29,140

Total Assets                                               $88,500

Equity and Liabilities

<u>Equity</u>

Common Stock                                         $40,000

Retained Earnings                                       $8,750

Total Equity                                                $48,750

<u>Liabilities</u>

<u>Non Current Liabilities</u>

Notes Payable, due 2024                         $31,450

Total Non Current Liabilities                     $31,450

<u>Current Liabilities</u>

Accounts Payable                                      $7,400

Salaries and Wages Payable                       $900

Total Non-Current Liabilities                     $8,300

Total Liabilities                                         $39,750

Total Equity and Liabilities                      $88,500

Explanation:

Its very important to calculate the Retained Earnings Balance at the end of July 2020.

To do this, we need to first calculate the Net Income for the period as follows :

<u>Income Statement for the year ended July 31, 2022</u>

Service Revenue                                                        15,500

Less Expenses :

Maintenance and Repairs Expense           1,200

Utilities Expense                                           950

Insurance Expense                                       600

Salaries and Wages Expense                    8,400     (11,150)

Net Income/(loss)                                                         4,350

Then, calculate the Retained Earnings Balance as follows :

<u>Retained Earnings Calculation </u>

Beginning Balance                                    5,200

Add Net Income during the period          4,350

Less Dividends                                            (800)

Ending Balance                                         8,750

6 0
3 years ago
Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor
Maru [420]

By using the ceteris paribus assumption, Taylor is holding the

  • holding all costs of production other than the wage rate constant
  • not considering retail price of laptop computers
<h3>What is ceteris paribus?</h3>

Ceteris paribus is a Latin phrase used in economics that means all other things being equal in English. It is used when studying the effect of one variable on another variable to mean that other variables that can affect the variable being studied is assumed to not change.

When Taylor is analyzing the effect of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, he is assuming that other factors that would affect the supply of laptops are assumed to be constant.

The other factors that might affect the  supply of laptop computers include:

  • cost of production
  • retail price of laptops

Here is the complete question:

Taylor is analyzing the effects of wage rates on the supply of laptop computers. By using the ceteris paribus assumption, Taylor is __________.

Select the two correct answers below.

Select all that apply:

holding the supply of laptop computers constant

holding all costs of production other than the wage rate constant

holding wage rates constant

not considering retail price of laptop computers

To learn more about ceteris paribus, please check: brainly.com/question/13864080

#SPJ1

7 0
1 year ago
A ______ establishes a company's financial and strategic objectives, and provides a set of guidelines for achieving the desired
inysia [295]

Answer:

strategic plan

Explanation:

In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.

Typically, to formulate strategies that are well aligned with the mission of an organization or business firm, some of the activities that needs to be performed includes the following;

1. Knowing your core competencies: this involves identifying your strengths such as knowledge, technology, underlying skill, experience, ability or process that enables you to perform exceptionally and provide a unique set of products or services that meets the needs of your customers.

2. Assessment of the organization's internal strengths and weaknesses: it gives an organization certain advantages, edge and disadvantages in meeting the needs of various customers by analyzing their strengths, weaknesses, opportunities and threats (SWOT).

3. Examination of the organization's external environment: this involves examining and identifying all the factors outside of an organization that affects its performance such as customers, government policies, competitors etc.

4. Analyze your competitors: organization should ensure they are always a step ahead of the their competitors in the industry.

In conclusion, a business strategy or strategic plan sets the overall direction for an organization or business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.

8 0
3 years ago
Behaving in an acceptable manner within a workplace environment is refered to as workplace etiquette.
alexandr402 [8]
True because workplace etiquette is behaving with manners and kindness
8 0
3 years ago
Read 2 more answers
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