Siegel Company spent $14,000 on direct supplies and $19,000 on compensation for manufacturing personnel during its first year of operation. Lease and utility costs for the manufacturing plants totaled $17,000, with general, marketing, and administrative expenditures totaling $8,000. The business manufactured 5,000 devices and sold 3,000 units for $15.00 each. What was Silverman's net income in his first year of business? Answer options group 1. $7,000 2. $12,000 3. $28,000 4. $37,000
Q: according to a summary of the payroll of Scotland company, salaries for the. Were 500,000 federal…
A: Introduction: A journal is the official book of the firm in which all transactions are documented in…
Q: Is ABC Manufacturing is properly using the budget process to plan for next year's expenses? You have…
A: The budget can be defined as the process of estimating revenues, expenses, and income. The budget is…
Q: The credit terms offered to a customer by a business firm are 2/10, n/30, which means that the…
A: Credit term refers to a payment term mentioned in the invoice which stated the timing and payment of…
Q: Liabilities and Revenues O Are decreased by debits and increased by credits Are decreased by both…
A: The different accounts in the business have debit or credit balance. The revenue and liabilities…
Q: Prepare Trial balance with the given ledger account balances the year ended March 2019.
A: A trial balance is a summary of all the ledger accounts maintained in a company. All the assets and…
Q: A manufacturer offers a 30/25 chain discount if the invoice subtotal is above $1,000. If the list…
A: calculation of chain discount are as follows
Q: College Logos buys logo-imprinted merchandise and then sells it to university bookstores. Sales are…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: Determine minimum transfer price under different situations. E9.28 (LO 6) The machining division has…
A: The company may consist of multiple departments and products produced by one department may be…
Q: Logistics Solutions provides order fulfillment services for dot.com merchants. The company maintains…
A: Lets understand the basics. Variable overhead rate variance indicates the variance between the rate…
Q: Boomer owns a 4-bedroom home located two miles from the Raymond James Stadium in Tampa. On February…
A: Boomer owns a 4 bedroom home located 2 miles from the Raymond James Stadium in Tampa. On Feb 4,…
Q: Cash Accounts receivable Inventory Equipment Total Accounts payable Payable to B 80,000 240,000…
A: Partnership is a firm is legal entity where partner share profit or loss according to the firms deed…
Q: How does the enterprise risk management influence the internal control detective identified?
A: Introduction: Control is a managerial function that aids in measuring actual performance by…
Q: Find the monthly house payment necessary to amortize the following loan. In order to purchase a…
A: Loan: When money is lent to another party in return for regular repayment of the loan principle…
Q: What are five basic principles which, if followed, should improve the probability of preparing a…
A: Introduction A budget is a financial statement that the management develops to evaluate the…
Q: NINV = Purchase price + Additional NWC, which equals $20,000. 2. Complete the following tale…
A: Operating cash flows refer to the concept of determining the cash generated by a company's business…
Q: 1.Ricardo Ltd makes doors with a selling price of £50 per door. Budgeted production and sales volume…
A: Calculation of product cost per unit : Particulars Amount Variable cost per unit £25 Fixed…
Q: 25. A parent company’s investment account would include an element which is representative of :…
A: In the context of the given question, we are required to find the correct option from the available…
Q: Janet works in the credit department handling accounts receivable transactions. At the end of each…
A: Introduction: Accounts Receivable (AR) are the cash flow or funds received by the business from…
Q: Why might revenues generated from the tax fall short of expectations? 2. Do you think that…
A: Everybody has needs and wants. The demands and wants may not all be able to be met by the current…
Q: Standard Cost Journal Entries Bellingham Company produced 5,300 units that require five standard…
A: The journal entries are prepared to keep the record of day to day transactions of the business on…
Q: On September 1, 2024, Jacob Furniture Mart enters into a tentative agreement to sell the assets of…
A: Operating loss net of tax benefit from discontinued operations=Operating loss from discontinued…
Q: Highridge Homes has the following payroll information for the week ended February 21: Name Earnings…
A: Payroll It is important for the business entity to prepare the payroll process which are important…
Q: On January 1, 2018, Tonge Industries had outstanding 700,000 common shares ($1 par) that originally…
A: Earnings per share is the amount of money per share earned, by the common stockholders of the…
Q: The journal entry to record the payment of the monthly rent would include: a debit to Rent Expense…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Q: The expired portion of a Prepaid Expense is
A: Prepaid expenses are an expense that is paid in advance for future years. They are not due for the…
Q: The following data is for Atlantis Merchandising, which uses a periodic inventory system: Sales…
A: The cost of goods available for sale includes beginning inventory, net purchases, and freight…
Q: i. The Statement of Profit and Loss for the year ending December 31, 2020 ii. The Statement of…
A: This question belongs to the preparation of the statement of profit and loss and the financial…
Q: On December 31, 2017, Bulldog Company approved a restricted stock share plan for a number of…
A: Restricted stock share plan is the way of issuing stocks to the existing employees. It is one of the…
Q: Commando Corp. agrees to sell 100 of its products to M&H Co. for P30,000 in August 2021. (P300 per…
A: The original sale price of the products before alteration will not be modified. As previously…
Q: During March 2020, Polaro Corporation recorded P40,200 of costs related to factory overhead.…
A: Overheads which was estimated=P40,900 Estimated direct labor hours=5,000 hours Actual hours worked…
Q: Alman Company sold pharmaceuticals to a Swedish company for 200,000 kronor (SKr) on April 20, with…
A: Introduction: Accounting journal entries are used to record banking transactions in the books of…
Q: The size of a country’s national debt should not be of much economic concern as long as:
A: Government too requires funds so that the country or even state can run by them, it is the amounts…
Q: On December 31, 2017, Bulldog Company approved a restricted stock share plan for a number of…
A: The journal entries can be defined as the measure of recording the business transaction in the…
Q: Boris detergents expects to have a cash balance of P46,000 on January 1, 2020. These are the…
A: Cash budget is a kind of budget where it displays expected cash payments, other expenses and cash…
Q: A corporation has a balance of $75,088 for CCA class 53 on January 1, 2021. Throughout 2021, the…
A: Capital cost allowance or CCA is the amount permissible to be deducted from income for tax purposes…
Q: Following events and transactions occurred during the first month of operations of a business of…
A: Transactions was initially recorded by various journal entries in books from where ledgers accounts…
Q: Timothy (40) and Tina (42) are California residents. Todd (age 10) and Ted (age 7) are their two…
A: Tax Break for Children: As per 2020 Child Tax Credit, an individual can get a tax credit of $2,000…
Q: Using the income tax withholding table in Figure 3, for each employee of Miller Company, determine…
A: Net pay is the amount which is computed by reducing the tax to be deducted at source & expenses…
Q: During October, Daylight Company experiences the following transactions in establishing a petty cash…
A: Various small expenses are incurred for day to day activities of the entity can be managed…
Q: The following standards for variable overhead have been established for a company that makes only…
A: The term "variable overhead efficiency variance" refers to both the impact of the discrepancy…
Q: For the following situations, identify whether the situation represents a violation or a correct…
A: There are principles and assumptions based on which whole accounting depends regarding how to enter…
Q: The Hi-Stakes Company has a number of importing and exporting transactions. Importing activities…
A: In the context of the given question, we are required to compute the effect of direct exchange rates…
Q: After working for 30 years and due to old age (55 years), Rufino retired from his employment on…
A: Individuals or HUFs who had voluntarily retired before attaining 60 years of age will incur the…
Q: Prepare depreciation schedules for the life of the asset under the following depreciation methods:…
A: Methods of Depreciation Straight Line Method (SLM): Under SLM method, a fixed portion of asset is…
Q: Materials Labor Overhead Requirements Fixed Manufacturing Overhead is $705,000 annually. $ 19.00 $…
A: Selling price=Manufacturing cost per unit×Percentage of manufacturing cost
Q: [The following information applies to the questions displayed below.] Trey Monson starts a…
A: Average unit cost=Cost of goods available for saleUnits available for sale
Q: Cosy Stoves Limited is planning a major capital investment in April 2022 which requires an extension…
A: Cash Budget: It is the estimation of the cash in flows and outflows of a business over a given…
Q: When an investor owns less than 20 percent of the investee company, the investor may still be able…
A: Introduction:- Significant influence means company or investor holds 20% or more of the voting…
Q: A merchandiser that provided the following information: Number of units sold 20,000 Selling price…
A: Contribution margin can be found out by subtracting the total sales made with cost of goods sold and…
Q: FDNACCT Co. purchased merchandise and issued a twelve-month promissory note with 8% interest and…
A: Journal Entries - Journal Entries are the recording of transactions of the organization. It is…
Step by step
Solved in 2 steps
- At the beginning of the year, an audio engineer quit his job and gave up a salary of $1,175,000.00 per year to start his own business Sound Devices Inc. The company builds, installs and maintains custom audio equipment for a business that require high-quality audio-systems. A partial income statement for the first year of operation for Sound Devices Inc. is shown below: Revenue Revenue from sales of product and services $970,000 Operating cost and expenses Cost of products and services sold $355,000 Selling Expenses $155,000 Administrative Expenses $45,000 Total Operating cost and expenses 555,000 Income from operations $415,000 Interest expenses (Bank Loan) $45,000 Legal Expenses to start business $28,000 Income taxes $165,000 Net Income $177,000 To get started, the owner of Sound Devices spent $100,000 of his personal savings to pay for some of the capital equipment used in the business. During the first year of operation, the owner of Sound Devices…The Silverman Company spent $14,000 on direct supplies and $19,000 on the salary of production personnel in its first year of business. General, selling, and administrative costs came to $8,000 while lease payments and utilities for the production facilities came to $17,000. At a cost of $15.00 per unit, the company produced 5,000 units, of which 3,000 were sold. When was the year's operating net profit for Silverman? $7,000 $12,000 $28,000 $37,000A local manufacturing company estimated the following expenses for the upcoming year: a. Insurance on factory: $100,000 b. Factory security: 1 guard at $20/hour for a 2,000 hour work year . 1 production supervisor at $90,000/year d. Repair/Maintenance Technicians: 2 technicians at $40/hour each for a 2,000 hour work year e. Depreciation: $25/machine hour f. Utilities: $7/machine hour The company applies overhead on the basis of machine hours. Required: Build the cost formula Assume one unit of output takes 2 machine hours, and the estimated production for the year is 20,000 units • Calculate the expected number of machine hours to be used in the year. o Calculate the estimated total manufacturing overhead cost. o Calculate the applied overhead rate per machine hour. o Calculate the applied overhead per unit of output.
- Seal Financial Advisors provides accounting and finance assistance to customers in the retail business. Seal has four professionals on staff and an office with six clerical staff. Total compensation, including benefits, for the professional staff runs about $573,000 per year, and normal billable hours are 8,300 hours per year. The professional staff keep detailed time sheets organized by client number. The total office and administrative costs for the year are $755,000. Seal allocates office and administrative costs to clients monthly, using a predetermined overhead allocation rate based on billable hours. What is the predetermined overhead allocation rate that Seal will use for office and administrative costs? (Round your answer to the nearest cent.) A. $69.04 per hour B. $21.93 per hour C. $160.00 per hour D. $90.96 per hourDuring its first year of operations, Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wages. Lease payments and utilities on the production facilities amounted to $17,000 while general, selling, and administrative expenses totaled $8,000. The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What was Silverman's net income for the first year in operation? Group of answer choices $7,000 $12,000 $28,000 $37,000You own a construction company with a revenue of $395,000. The direct costs of construction are $280,000. Your annual general overhead is $22,000, which includes $3500 in meals and entertainment; $3000 in office utilities; $2500 for office laptop; $8000 for office desks and chairs; $500 for office supplies; and miscellaneous. The allowed depreciation for office utilities is $50; for office laptop is $200; and for office desks and chairs is $85; and for office supplies is $15. In addition, the past allowed depreciation amounted to $300. During the year you also earned $8000 in dividends and $800 in interest. Determine your net taxable income from construction business and marginal net taxable income. The income tax rate for the company is 25%. Calculate the net profit of the company.
- Swagelok Enterprises is a manufacturer of miniature fittings and valves. Over a 5- year period, the costs associated with one product line were as follows: first cost of $30,000 and annual costs of $18,000. Annual revenue was $27,000, and the used equipment was salvaged for $4,000. What rate of return did the company make on this product?A local manufacturing company estimated the following expenses for the upcoming year: a. Insurance on factory: $100,000 b. Factory security: 1 guard at $20/hour for a 2,000 hour work year c. 1 production supervisor at $90,000/year d. Repair/Maintenance Technicians: 2 technicians at $40/hour each for a 2,000 hour work year e. Depreciation: $25/machine hour f. Utilities: $7/machine hour The company applies overhead on the basis of machine hours. Required: · Build the cost formula · Assume one unit of output takes 2 machine hours, and the estimated production for the year is 20,000 units o Calculate the expected number of machine hours to be used in the year. o Calculate the estimated total manufacturing overhead cost. o Calculate the applied overhead rate per machine hour. o Calculate the applied overhead per unit of output.Demmert Production spent the following money in the current fiscal year: $5,400 on equipment yearly maintenance; $22,000 on refurbishing offices; $35,000 on improving efficiency in the shipping and receiving area; and $25,000 on installing a security system in the manufacturing plant. What is Demmert supposed to do with all of these bills?
- uniper Design Limited of Manchester, England, provides design services to residential developers. Last year, the company had net operating income of $470,000 on sales of $1,200,000. The company’s average operating assets for the year were $1,400,000 and its minimum required rate of return was 11%. Required: Compute the company’s residual income for the year.Rundle Home Maintenance Company earned operating income of $6,512,000 on operating assets of $59,200,000 during Year 2. The Tree Cutting Division earned $1,179,860 on operating assets of $6,820,000. Rundle has offered the Tree Cutting Division $2,180,000 of additional operating assets. The manager of the Tree Cutting Division believes he could use the additional assets to generate operating income amounting to $440,360. Rundle has a desired return on investment (ROI) of 9.00 percent. Required a. Calculate the return on investment for Rundle, the Tree Cutting Division, and the additional investment opportunity. b. Calculate the residual income for Rundle, the Tree Cutting Division, and the additional investment opportunity. Complete this question by entering your answers in the tabs below. Required A Required B Calculate the return on investment for Rundle, the Tree Cutting Division, and the additional investment opportunity. (Round your answers to 2 decimal places. (i.e., 0.2345 should…Campbell Home Maintenance Company earned operating income of $6,902,000 on operating assets of $59,500,000 during Year 2. The Tree Cutting Division earned $1,164,240 on operating assets of $6,930,000. Campbell has offered the Tree Cutting Division $2,060,000 of additional operating assets. The manager of the Tree Cutting Division believes he could use the additional assets to generate operating income amounting to $426,420. Campbell has a desired return on investment (ROI) of 9.60 percent.Required Calculate the return on investment for Campbell, the Tree Cutting Division, and the additional investment opportunity. Calculate the residual income for Campbell, the Tree Cutting Division, and the additional investment opportunity.