Palmona Co. establishes a $310 petty cash fund on January 1. On January 8, the fund shows $217 in cash along with receipts for the following expenditures: postage, $38; transportation-in, $13; delivery expenses, $15; and miscellaneous expenses, $27. Palmona uses the perpetual system in accounting for merchandise inventory.Prepare journal entry to establish the fund on January 1, reimburse it on January 8, and reimburse the fund and increase it to $330 on January 8, assuming no entry in part 2

Answers

Answer 1

Answer:

Answer:

The answer and procedures of the exercise are attached in the following archives.

Explanation:

The first part of the journal entry would record the expenses as the receipt. Hence the expense account would be a debit. A corresponding entry would be a credit to the cash account to record the receipt of such expenses. This is done basis the basic accounting rule that increase in the asset and expense account signifies as debit and vice versa whereas increase in the liability and revenue account would be regarded as the credit.

The second journal entry would increase the petty cash account by $50 to raise the balance of existing petty cash from $280 to $330. A corresponding effect would be a credit to the cash account.

Related Questions

Packaging Solutions Corporation manufactures and sells a wide variety of packaging products. Performance reports are prepared monthly for each department. The planning budget and flexible budget for the Production Department are based on the following formulas, where q is the number of labor-hours worked in a month: Cost Formulas Direct labor $16.30q Indirect labor $4,100 + $2.00q Utilities $5,100 + $0.50q Supplies $1,300 + $0.40q Equipment depreciation $18,100 + $2.50q Factory rent $8,500 Property taxes $2,700 Factory administration $13,300 + $0.60q The Production Department planned to work 4,200 labor-hours in March; however, it actually worked 4,000 labor-hours during the month. Its actual costs incurred in March are listed below: Actual Cost Incurred in March Direct labor $ 66,780 Indirect labor $ 11,680 Utilities $ 7,590 Supplies $ 3,190 Equipment depreciation $ 28,100 Factory rent $ 8,900 Property taxes $ 2,700 Factory administration $ 15,050 Required: 1. Prepare the Production Department’s planning budget for the month. 2. Prepare the Production Department’s flexible budget for the month. 3. Calculate the spending variances for all expense items.
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Two towns, each with three members, are deciding whether to put on a fireworks display to celebrate the New Year. Fireworks cost $300. In each town, some people enjoy fireworks more than others.In the town of Bayport, each of the residents values the public good as follows:

Resident Value
(Dollars)
Darnell 70
Eleanor 90
Jacques 150
The total benefit of the fireworks display to the town of Bayport is ($ ).

Therefore, fireworks (would/would not) pass the cost-benefit analysis in the town of Bayport.

The mayor of Bayport proposes to decide by majority rule and, if the fireworks referendum passes, to split the cost equally among all residents.

Who would vote in favor of the fireworks referendum? Check all that apply.

Darnell

Eleanor

Jacques

Answers

Answer:

Thus, option b and c are correct.

Explanation:

Suppose that there are two towns. Each town has three members to put on a fireworks display. The cost of fireworks is $300.

Find the total benefits of the fireworks display to the town of B.

Total benefit = value to Darnell + value to eleanor + value to Jacques

= 70+90+150 =$310

Thus, total benefit of the fireworks display to the town of B is $310.

Since the total benefits to the persons is greater than the total costs, therefore, fireworks would pass the cost- benefits analysis in the town of B.

The mayor of B said to spilt the cost among all the residents. Each of the residents will bear s $100 ($300/3).

Darnell and Eleanor will not vote for this because cost to them is more than the value to them. Remaining Jacques

will vote for this because cost to him is less than the value to him for this.

Thus, Jacques will vote in favor of this.

Thus, option c is correct.

Therefore, vote would not yield the same answer as the cost-benefit analysis.

Find the total benefits of the fireworks display to the town of RH.

Total benefit = value to kyoko + value to Musashi + value to Rina

= 50 +110+ 120 = $280

Thus, total benefit of the fireworks display to the town of RH is $280.

Since the total benefits to the persons is less than the total costs, therefore, fireworks would not pass the cost- benefits analysis in the town of RH.

The mayor of RH said to spilt the cost among all the residents. Each of the residents will bear $100 &$300/3).

Kyoko will not vote for this because cost to them is more than the value to them. Remaining Musashi and Rina will vote for this because cost to him is less than the value to him for this.Thus, Musashi and Rina will vote in favor of this.

Thus, option b and c are correct.

Therefore, vote would not yield the same answer as the cost-benefit analysis.

The following statements are correct about the provision of public goods.

It is hard for the government to decide the appropriate amount of public goods to produce because people have differing preferences regarding such goods. Thus, option b is correct.

A plant asset cost $96,000 and is estimated to have a $12,000 salvage value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be a. $8,040.
b. $13,500.
c. $11,812.
d. $9,190.

Answers

Answer:

option (b) $13,500

Explanation:

Data provided in the question:

Cost of the plant asset = $96,0003

Salvage value = $12,000

Useful life = 8 years

Now,

using the double-declining-balance method

Depreciation rate = $2*\frac{\textup{1}}{\textup{Useful life}}$

Depreciation rate = $2*\frac{\textup{1}}{\textup{8}}$

Depreciation rate = 0.25 or 25%

Thus,

For year 1

Depreciation expense = Depreciation rate × year book value

= 0.25 × $96,000

= $24,000

Book value for year 2 = $96,000 - $24,000 = $72,000

For year 2

Depreciation expense = Depreciation rate × year 2 book value

= 0.25 × $72,000

= $18,000

Book value for year 3 = $72,000 - $18,000 = $54,000

For year 3

Depreciation expense = Depreciation rate × year 3 book value

= 0.25 × $54,000

= $13,500

Hence,

The correct answer is option (b) $13,500

You are head of the Schwartz Family Endowment for the Arts. You have decided to fund an arts school in the San Francisco Bay area in perpetuity. Every 3 years, you will give the school $ 1 comma 000 comma 000. The first payment will occur 3 years from today. If the interest rate is 10.1 % per year, what is the present value of your gift?

Answers

Answer:

PV= $749,269.48

Explanation:

Giving the following information:

Every three years= $1000000

i= 10,1%

The first payment will occur 3 years from today.

We need to find what is the present value of the gift

Using the following formula:

PV= FV/[(1+i)^n)

PV= 1000000/[1,101^3]= $749,269.48

In need of extra cash, Troy and Lily decide to withdraw $2 comma 100 from their traditional IRA. They are both 40 years old. They are in a 35% marginal tax bracket. What will be the tax consequences of this withdrawal?

Answers

Answer:

Calculate the tax consequence of withdrawal from retirement account.

T and L are 40 years old and decide to withdraw $2,100 from their IRA. They lie in a 35% marginal tax bracket.

Analysis

They are withdrawing some amount from their retirement fund. They have to pay the tax and penalty for early withdrawals from the retirement fund. The withdrawal amount is $2,100 so they have to pay tax on it. The tax rate will be 35% which is their marginal tax bracket.

Calculation of tax consequences if withdrawal amount is $2,100:

Ordinary income tax amount calculates by multiplying the withdrawal amount with the ordinary tax rate.

= $2100 × 35%

= $735

The withdrawal amount attracts the 10% penalty. So, the penalty amount is calculated as follows: Penalty on withdrawn funds calculates by multiplying the withdrawn funds with the percentage of penalty.

= $2100 × 10%

= $210

(NOTE: - T and L have to pay ordinary income tax along with the penalty on their withdrawal because they are withdrawing funds from their IRA before age 59.5.)

Total expenses include the tax amount and penalty charge on withdrawal amount. So, it is calculated as follows:

Total expenses =$735 + $210

Total expenses = $945

Conclusion

Therefore, T and L would incur a tax of $945 on their withdrawal. This $945 is the sum of income tax amount and penalty on withdrawal balance.

To achieve the social optimum,the government could set a tax equal to ________ per unit sold. A) $6
B) $4
C) $2
D) $3
E) $5

Answers

Answer:

A) $6

Explanation:

The equilibrium price arises when the marginal cost of private i.e. demand is $12 and when the social production cost is to be considered then the equilibrium price is $18

So, to accomplish the social optimum, the government should set a tax of

= $18 - $12

= $6

This shifted the private marginal cost to the left and there is yield to the social optimum

Hence, the correct option is A. $6

The Murdock Corporation reported the following balance sheet data for 2018 and 2017: 2018 2017 Cash $ 90,695 $ 30,155 Available-for-sale debt securities (not cash equivalents) 21,500 97,000 Accounts receivable 92,000 79,050 Inventory 177,000 155,800 Prepaid insurance 2,580 3,200 Land, buildings, and equipment 1,274,000 1,137,000 Accumulated depreciation (622,000 ) (584,000 ) Total assets $ 1,035,775 $ 918,205 Accounts payable $ 87,140 $ 160,670 Salaries payable 24,800 30,500 Notes payable (current) 35,800 87,000 Bonds payable 212,000 0 Common stock 300,000 300,000 Retained earnings 376,035 340,035 Total liabilities and shareholders' equity $ 1,035,775 $ 918,205 Additional information for 2018: (1.) Sold available-for-sale debt securities costing $75,500 for $81,200. (2.) Equipment costing $20,000 with a book value of $6,200 was sold for $7,800. (3.) Issued 6% bonds payable at face value, $212,000. (4.) Purchased new equipment for $157,000 cash. (5.) Paid cash dividends of $26,000. (6.) Net income was $62,000.Prepare a statement of cash flows for 2018 in good form using the indirect method for cash flows from operating activities.