Me on my block be like

Department M had 600 units 60% completed in process at the beginning of June, 6,000 units completed during June, and 700 units 3

irina [24]

Answer:

5,850 units

Explanation:

Units Incomplete at the beginning of the month:

= No. of units × 40% incomplete

= 600 units × 0.4

= 240 units

Units completed during the month:

= 6,000 - 600

= 5,400 units are completed

Units completed at the end of June:

= 700 units × 30%

= 210 units

Number of equivalent units of production for conversion cost for the period:

= 240 + 5,400 + 210

= 5,850 units

4 0

3 years ago

On January 1, 2014, Evers Company purchased the following machine for use in its production process:

iren2701 [21]

Answer:

a) Calculate the amount of depreciation expense that Evers should record each year of its useful life under the following assumptions. Show your workings.

(1) Straight-line method

depreciable value = $180,000 - $10,000 = $170,000 / 4 = $42,500 per year (same for each year)

(2) Double declining balance method

depreciation expense year 2014 = $180,000 x 1/4 x 2 = $90,000

depreciation expense year 2015 = $90,000 x 1/4 x 2 = $45,000

depreciation expense year 2016 = $45,000 x 1/4 x 2 = $22,500

depreciation expense year 2017 = $22,500

(3) Units-of-activity method and estimates that the useful life of machine is 125,000 units. Actual usage is as follows: 2014, 45,000 units; 2015, 35,000 units; 2016, 25,000 units; 2017, 20,000 units.

depreciation expense per unit = $170,000 / 125,000 units = $1.36

depreciation expense year 2014 = $1.36 x 45,000 = $61,200

depreciation expense year 2015 = $1.36 x 35,000 = $47,600

depreciation expense year 2016 = $1.36 x 25,000 = $34,000

depreciation expense year 2017 = $1.36 x 20,000 = $27,200

b) Which method used to calculate depreciation reports the highest amount of depreciation expense in year 1?

double declining balance

The highest in year 4?

straight line method

The highest total amount over the 4-year period?

double declining balance

5 0

3 years ago

Which recommendation would be most suitable for a 40-year old client whose main objective is retirement income and preservation

melisa1 [442]

Answer:

Fixed deferred annuity

Explanation:

Fixed deferred annuity is a form of saving investment where interest is paid on the invested amount at a rate set by the investment company and defined in the contract , and the interest can be deferred into the future till a withdrawal is made from the annuity contract.

Taxes are not paid but deferred until withdrawal which allows the opportunity to control when to pay taxes , a good investment sense for long term investment.

This makes it a good investment for a risk adverse investor who will not require investment income until later years but its main goal is retirement income and preservation of capital.

5 0

3 years ago

Prepare the financial statements for Smart Touch Learning for the month of December. Remember that the business started operatio

Rudiy27

Answer:

Smart Touch Learning

1. Income Statement

For the year ended December 31, 2016

Service Revenue $27,600

Salaries Expense 7,200

Depreciation Expense Furniture 100

Insurance Expense 350

Utilities Expense 380

Rent Expense 2,000

Supplies Expense 60 10,090

Net income $17,510

2. Statement of Retained Earnings

Net income $17,510

Dividends (4,600)

Retained earnings $12,910

3. Balance Sheet

As of December 31, 2016

Assets

Current Assets:

Cash 45,710

Accounts Receivable 1,300

Office Supplies 350

Prepaid Insurance 1,050 48,410

Noncurrent assets:

Furniture 9,100

Acc. Depreciation - Furniture (100) 9,000

Total assets 57,410

Liabilities and Equity

Current liabilities:

Salaries Payable 4,600

Unearned Revenue 4,400

Total liabilities 9,000

Equity:

Common Stock 35,500

Retained earnings 12,910

Total equity 48,410

Total liabilities and equity 57,410

4. Statement of Cash Flows

Operating activities:

Net income $17,510

Add Non-cash flows:

Depreciation expense 100

Working capital changes:

Accounts Receivable (1,300)

Office Supplies (350)

Prepaid Insurance (1,050)

Salaries Payable 4,600

Unearned Revenue 4,400

Net operating cash $23,910

Investing activities:

Furniture ($9,100)

Financing activities:

Common Stock 35,500

Dividends (4,600)

Net financing cash $30,900

Net cash flows $45,710

Explanation:

a) Data and Calculations:

SMART TOUCH LEARNING

Adjusted Trial Balance

December 31, 2016

Account Title Debit Credit

Cash 45,710

Accounts Receivable 1,300

Office Supplies 350

Prepaid Insurance 1,050

Furniture 9,100

Accumulated Depreciation - Furniture 100

Salaries Payable 4,600

Unearned Revenue 4,400

Common Stock 35,500

Dividends 4,600

Service Revenue 27,600

Salaries Expense 7,200

Depreciation Expense Furniture 100

Insurance Expense 350

Utilities Expense 380

Rent Expense 2,000

Supplies Expense 60

Total 72,200 72,200

8 0

3 years ago

On December 31, 2016, Ditka Inc. had Retained Earnings of $270,800 before its closing entries were prepared and posted. During 2

Nat2105 [25]

Answer:

Required a

Closing Retained Earnings Balance

Retained Earnings $270,800 (debit)

Statement of Changes in Shareholders Equity $270,800 (credit)

Required b

Closing Service Revenue Balance

Sales Revenue $171,100 (debit)

Statement of Profit and Loss $171,100 (credit)

Closing Interest Revenue Balance

Interest Revenue $82,800 (debit)

Statement of Profit and Loss $82,800 (credit)

Closing Supplies Expenses Account

Statement of Profit and Loss $89,400 (debit)

Supplies Expenses $89,400 (debit)

Closing Supplies advertising expenses

Statement of Profit and Loss $16,700 (debit)

Advertising expenses $16,700 (debit)

Closing Supplies salaries and wages expenses

Statement of Profit and Loss $18,750 (debit)

Salaries and wages expenses $18,750 (debit)

Closing income tax expenses

Statement of Profit and Loss $14,300 (debit)

income tax expenses $14,300 (debit)

Required c

Closing the dividend Account

Dividend $6,300 (debit)

Retained Earnings Statement $6,300 (credit)

Explanation:

Revenues and Expenses are Closed off to the Statement of Profit and Loss.

Dividends are Closed off to the Retained Income Statement.

Adjusting Supplies Account

Supplies Expenses $89,400 (debit)

Supplies Account $89,400 (credit)

Adjusting dividend Account

Dividend $6,300 (debit)

Cash $6,300 (credit)

3 0

3 years ago