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3 years ago

What are control accounts in accounting??

2 answers:

6 0

In accounting, the controlling account is an account in the general ledger for which a corresponding subsidiary ledger has been created. The subsidiary ledger allows for tracking transactions within the controlling account in more detail.

Alenkinab [10]3 years ago

6 0

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Garcia manufacturing's april sales forecast projects that 5,000 units will sell at a price of $10.50 per unit. the desired endin

shtirl [24]

Budgeted Purchases = Sales units + Closing inventory - Beginning Inventory
= 5,000 + (1,000 * 130%) - 1,000
= 5,300 units

6 0

4 years ago

Meade Nuptial Bakery makes very elaborate wedding cakes to order. The company has an activity-based costing system with three ac

pychu [463]

Answer:

Overall margin is $84.15

Explanation:

Given that:

For Haupt wedding, Cost of purchased decorations for cake = $73.45

Charges for the Haupt wedding cake = $718.21

The activity rate for the Size-Related activity cost pool = $1.15 per guest.

The activity rate for the Complexity-Related cost pool = $36.42 per tier

The activity rate for the Order-Related activity cost pool = $86.41 per order

Number of order = 1

Number of guest for Haupt wedding = 254 guest

Number of tiers used for Haupt cake = 5 tiers

Therefore:

Size related cost = $1.15 per guest × 254 guest = $292.1

Complexity-Related cost = $36.42 per tier × 5 tiers = $182.1

Order-Related cost = $86.41 per order × 1 order = $86.41

Total cost = Size related cost + Complexity-Related cost + Order-Related cost + Cost of purchased decorations for cake = $292.1 + $182.1 + $86.41 + $73.45 = $634.06

Overall margin = Charges for the Haupt wedding cake - Total cost = $718.21 - $634.06 = $84.15

Overall margin is $84.15

7 0

4 years ago

Ben's Bookstore buys $500 worth of books on credit to sell in its retail store. When Ben records this transaction, how should he

shusha [124]

Based on the fact that the books were bought on credit, to sell at Ben's Bookstore, the $500 should be listed separately as assets and liabilites.

<h3>How should Ben list the $500?
</h3>

The $500 is a liability because Ben acquired the books on credit which means the store owes the supplies for them.

The $500 is also an asset however because it represents stock in the business which makes it a current asset.

Find out more on recording liabilities at brainly.com/question/25687338.

6 0

2 years ago

Identify which control activity is violated in each of the following situations, and explain how the situation creates an opport

Inessa05 [86]

Answer:

1. Once a month, the sales department sends sales invoices to the accounting department to be recorded.

⇒ documentation procedures

Unless all of the company's sales take place only once a month, sales should be recorded as soon as possible. Accounting records must be as precise and accurate as possible, and they must be processed on time. Stacking invoices makes no sense, since sales might be on cash or the collection period might be very short. Who holds the money until the sales records are made?

2. Leah Hutcherson orders merchandise for Rice Lake Company; she also receives merchandise and authorizes payment for merchandise.

⇒ segregation of duties

One single person cannot be responsible for the whole process, since this creates a huge opportunity for fraud. Imagine if the person in charge of the inventory is also in charge of making new purchases, paying for them and reporting ending inventory. No company would be able survive one year, while the person in charge would get rich.

3. Several clerks at Great Foods use the same cash register drawer

⇒ establishment of responsibility

If everyone is allowed to collect money, no one can be responsible for any loss.

6 0

3 years ago

Bartlett Car Wash Co. is considering the purchase of a new facility. It would allow Bartlett to increase its net income by $53,0

Virty [35]

Answer:

Accounting rate of return = 10.39%

Payback period = 4.62 years

Explanation:

The computations are shown below:

For accounting rate of return, it equal to

= Annual net income ÷ Investment

= $53,000 ÷ $510,000

= 10.39%

For payback period, it would be

= Initial investment ÷ Net cash flow

where,

Initial investment is $263,000

And, the net cash flow = annual net operating income + depreciation expenses

= $53,000 + $57,500

= $110,500

The depreciation expense would be

= (Original cost - residual value) ÷ (useful life)

= ($510,000 - $50,000) ÷ (8 years)

= ($460,000) ÷ (8 years)

= $57,500

Now put these values to the above formula

So, the value would equal to

= ($510,000) ÷ ($110,500)

= 4.62 years

4 0

3 years ago

What are control accounts in accounting??​

What are control accounts in accounting??