Answer:
(A) The treasurer has the authority to sign checks but gives the signature block to the assistant treasurer to run the check-signing machine.
Explanation:
A segregation of duties is an internal control in business. It is assigning more than one person to a task usually to prevent error or any fraudulent activity. Therefore, the treasurer giving the signature block to the assistant treasurer to run the check-signing machine is not a violation of a segregation of duties.
Answer:
The correct answer is A) worldwide.
Explanation:
The concept of a global approach to tax collection is the determination of the tax burden without considering the origin of the profits reported in the tax declaration, which implies the homogenization of the tax burden that becomes effective taking into account double treaties. taxation, where information is received from other countries on the behavior of foreign branches in this regard.
Answer: Cost management, profitability, return on assets, competitive position and corporate social policy
Explanation:
Supply has the potential to contribute to cost management, profitability, return on assets, competitive position and corporate social policy.
Supply is defined as the amount of goods or services that a supplier is willing to offer for sale at a particular price and at a certain period. The amount of goods offered can determine the revenue generated and hence the profit made.
Accumulated Depreciation-Equipment $ 292,000
Payroll Taxes Payable 177,591
Inventory 239,800
Bonds payable 300,000
Rent payable (short-term) 45,000
Discount on bonds payable 15,000
Income taxes payable 98,362
Cash 360,000
Rent payable (long-term) 480,000
Land 480,000
Common stock, $1 par value 200,000
Notes receivable 445,700
Preferred stock, $10 par value 150,000
Notes payable (to banks) 265,000
Prepaid expenses 87,920
Accounts payable 490,000
Equipment 1,470,000
Retained earnings ?
Retained earnings ?Debt investments (trading) 121,000Income taxes receivable 97,630Accumulated depreciation-buildings 270,200Notes payable (long-term) 1,600,000Buildings 1,640,000
Required:
Required:1. Prepare a classified balance sheet in good form.
Answer:
MONTOYA, INC.
Balance Sheet
December 31, 2017
Assets
Current assets
Cash $360,000
Equity Investments (Trading) 121,000
Notes Receivable 445,700
Income Taxes Receivable 97,630
Inventory 239,800
Prepaid Expenses 87,920
Total current assets $1,352,050
Property, plant, and equipment
Land 480,000
Buildings $1,640,000
Less: Accum Deprec - Buildings 270,200 1,369,800
Equipment 1,470,000
Less: Accum Deprec - Equipment292,000 1,178,000
3,027,800
Intangible assets
Goodwill 125,000
Total assets $4,504,850
Liabilities and Shareholders’ Equity
Current liabilities
Accounts Payable $490,000
Notes Payable to Banks 265,000
Payroll Taxes Payable 177,591
Income Tax Payable 98,362
Rent Payable - Short-term 45,000
Total current liabilities $1,075,953
Long-term liabilities
Unsecured Notes Payable (Long-term) 1,600,000
Bonds Payable $300,000
Less: Discount on Bonds Payable 15,000 285,000
Rental Payable Long-term 480,000 2,365,000
Total liabilities 3,440,953
Shareholders’ equity
Capital Stock
Preferred stock, $10 par; 20,000 shares authorized, 15,000 shares issued 150,000
Common stock, $1 par; 400,000 shares authorized, 200,000 issued 200,000 350,000
Retained Earnings ($1,063,897 - $350,000) 713,897
Total shareholders’ equity ($4,504,850 – $3,440,953) 1,063,897
Total liabilities and shareholders’ equity $4,504,850
Computation of Retained earnings:
Accounting Equation
Total assets $4,504,850
Less: Liabilities 3,440,953
Less: Contributed capital 350,000
Retained earnings $713,897
A classified balance sheet divides assets, liabilities, and equity into subcategories. Assets and liabilities are further divided into current and non-current. Retained earnings, part of equity, is calculated by adding this period's net income to last period's retained earnings and subtracting dividends paid.
A classified balance sheet categorizes assets, liabilities, and equity into subcategories to provide more meaningful information.
Assets
can be categorized as current assets (e.g. Cash, Debt investments (trading), Notes receivable, Prepaid expenses, Income taxes receivable, Inventory), long-term investments, property plant and equipment (PPE), Intangible assets such as Goodwill, and other assets.
Liabilities
can be categorized as current liabilities (e.g. Accounts payable, Notes Payable to the bank, Rent payable (short-term), Payroll Taxes Payable, Income taxes payable) and long-term liabilities (e.g. Notes payable (long-term), Rent payable (long-term), Bonds payable less discount on bonds payable).
Equity
is comprised of share capital (Common stock and Preferred stock) and Retained earnings.
To calculate Retained earnings, begin with the last period's retained earnings, add this period's net income, and subtract dividends paid. Given the provided information, we can't calculate it as not all necessary information is provided. Hence, it is mentioned as ?.
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Answer:
1. Prepare a schedule of cost of goods manufactured
schedule of cost of goods manufactured
Direct labor cost $83,000
Raw Materials $133,000
Manufacturing overhead $202,000
Add Beginning Work In Process $5,900
Less Ending Work In Process ($20,500)
cost of goods manufactured $403,400
2. Prepare a schedule of cost of goods sold
schedule of cost of goods sold
Begining Finished goods $74,000
Add cost of goods manufactured $403,400
Less Ending Finished goods ($25,100)
Add Under- Applied Overheads $22,000
cost of goods sold $473,300
3. Prepare an income statement.
Sales $658,000
Less cost of goods sold ($473,300)
Gross Profit $184,700
Less Operating Expenses
Selling expenses ($106,000)
Administrative expenses ($46,000)
Net Income $ 32,700
Explanation:
1. Prepare a schedule of cost of goods manufactured
Raw Materials Consumed in Production
Begining Raw Materials Inventory $8,800
Add Raw material purchases $135,000
Less Ending Raw Materials Inventory ($10,800)
Raw Materials Consumed in Production $133,000
schedule of cost of goods manufactured
Direct labor cost $83,000
Raw Materials $133,000
Manufacturing overhead $202,000
Add Beginning Work In Process $5,900
Less Ending Work In Process ($20,500)
cost of goods manufactured $403,400
2. Prepare a schedule of cost of goods sold
Actual manufacturing overhead costs ($224,000) > Applied Manufacturing overhead($202,000)
Under- Applied Overheads
Applied Manufacturing overhead $202,000
Actual manufacturing overhead costs $224,000
Under- Applied Overheads $22,000
schedule of cost of goods sold
Begining Finished goods $74,000
Add cost of goods manufactured $403,400
Less Ending Finished goods ($25,100)
Add Under- Applied Overheads $22,000
cost of goods sold $473,300
3. Prepare an income statement.
Sales $658,000
Less cost of goods sold ($473,300)
Gross Profit $184,700
Less Operating Expenses
Selling expenses ($106,000)
Administrative expenses ($46,000)
Net Income $ 32,700
Answer:
125%
Explanation:
The computation of predetermined overhead rate is shown below:-
Manufacturing overhead = $4,090 - ($570 + $370 + $600 + $800)
= $4,090 - $2,340
= $1,750
Total direct labor = $600 + $800
= $1,400
Manufacturing overhead = Predetermined overhead rate × Direct labor
Predetermined overhead rate = Manufacturing overhead ÷ Direct labor
= $1,750 ÷ $1,400
= 125%
Therefore for computing the predetermined overhead rate we simply divide the manufacturing overhead by direct labor.
B) the strategic fit test, the resource fit test, and the profitability test.
C) the barrier-to-entry test, the growth test, and the shareholder value test.
D) the attractiveness test, the cost-of-entry test, and the better-off test.
E) the resource fit test, the strategic fit test, the profitability test, and the shareholder value test.
Answer:
D) the attractiveness test, the cost-of-entry test, and the better-off test.
Explanation:
To judge a diversification change, an organization needs to pass the attractiveness tests, the entry cost test and the best situation test.
These tests will be decisive to analyze the potential that diversification will have to create added value for the shareholder.
The attractiveness test will list the ability that the market has to ensure that there is a safe return on investments.
The cost-of-entry will aim to ensure that when entering a new sector, the organization does not have higher costs that can influence the generation of profitability.
Finally, the better-off test will analyze whether the planned diversification will be so profitable that it will help to improve the performance of the integration of organizational businesses.
Answer:
OPTION d
Explanation: