Carla Corporation provides a defined contribution pension plan
for its employees. Under the plan, the company deducts 5% of each
employee’s gross pay for each bi-weekly pay period. The company
also contributes 6% of the employees’ gross pay to the pension
plan. The combined pension contributions are then submitted to the
pension trustee within 11 days of the end of the month in which the
pay was earned.
For the first pay period of October (from Sunday October 1 to
October 14, 2020), Carla’s total gross payroll was $174,000. Total
gross payroll for the period October 15 through Saturday, October
28, 2020, was $173,000. The total anticipated payroll for the
period October 29 through November 10, 2020, was $169,000
(employees worked Monday through Friday each week). On November 10,
2020, Carla submitted the pension contributions to the trustee for
the month of October (including accruals up to and including
October 31).
Prepare the October 14 journal entry to record the payroll,
including employee and employer contributions to the pension plan.
For simplicity, ignore income taxes and other statutory deductions.
(Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for
the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
October 14 |
|||
|
(To record payment of salaries and wages expense) |
|||
|
(To record company portion of pension expense) |
Prepare the October 28 journal entry to record the payroll,
including employee and employer contributions to the pension plan.
For simplicity, ignore income taxes and other statutory deductions.
(Credit account titles are automatically indented when
the amount is entered. Do not indent manually. If no entry is
required, select "No Entry" for the account titles and enter 0 for
the amounts.)
|
Date |
Account Titles and Explanation |
Debit |
Credit |
|
October 28 |
|||
|
(To record payment of salaries and wages expense) |
|||
In: Accounting
Dengo Co. makes a trail mix in two departments: roasting and
blending. Direct materials are added at the beginning of each
process, and conversion costs are added evenly throughout each
process. The company uses the FIFO method of process costing.
During October, the roasting department completed and transferred
23,600 units to the blending department. Of the units completed,
3,700 were from beginning inventory and the remaining 19,900 were
started and completed during the month. Beginning work in process
was 100% complete with respect to direct materials and 30% complete
with respect to conversion. The company has 3,100 units (100%
complete with respect to direct materials and 70% complete with
respect to conversion) in process at month-end. Information on the
roasting department’s costs of beginning work in process inventory
and costs added during the month follows.
| Cost | Direct Materials | Conversion | ||||
| Of beginning work in process inventory | $ | 10,600 | $ | 112,230 | ||
| Added during the month | 280,600 | 1,131,894 | ||||
In: Accounting
Please provide a step by step solution
Key the names in indexing order using the ARMA rules. In the upper right corner of each card, key the corresponding number for each name
In: Operations Management
You have been hired as a project management consultant to assist the Acme Company in evaluating two different project proposals they are considering. Proposal A calls for the construction of a new plant which will require three years to complete and will have much greater capacity than the old plant. Because the plant will have to be built on the current site, the old plant will have to be razed. Proposal B involves the renovation of this plant. This renovation will require two years to complete, but the plant can remain in operation in a reduced capacity during this upgrade. Once the renovation is complete revenue will be increased by 25% per year, however annual maintenance will be 50% higher than Proposal A.
Proposal A: Build New Plant
Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10
Revenue 0 0 0 400 800 800 800 800 800 800
Expense 800 600 600 50 50 50 50 50 50 50
Proposal B: Renovate Existing Plant
Year1 Year2 Year3 Year4 Year5 Year6 Year7 Year8 Year9 Year10
Revenue 100 100 350 350 350 350 350 350 350 350
Expense 500 500 75 75 75 75 75 75 75 75
Questions:
a. What is the profit associated with the project carried out in Proposal A? Proposal B?
b. When does payback occur on the project carried out in Proposal A? Proposal B?
c. What is the present value of revenue for the project carried out in Proposal A? Proposal B? (In computing present value, do not discount the value for the first year being examined.) (Assume i = 0.10)
d. What is the present value of expense for the project carried out in Proposal A? Proposal B? (In computing present value, do not discount the value for the first year being examined.) (Assume i = 0.10)
e. What is net present value for the project described in Proposal A? Proposal B? (In computing present value, do not discount the value for the first year being examined.) (Assume i = 0.10)
f. What is the internal rate of return for the project described in Proposal A? Proposal B?
g. Which project would you recommend? Why? What are the merits? What are the risks?
In: Finance
4. Which of the following are limitations of an entity’s Statement of Financial Position?
I. The Statement of Financial Position prepared at the end of the financial period may not be representative of the financial position at other times during the financial period.
II. The Statement of Financial Position may not include all items that create value for the entity.
III. The Statement of Financial Position is a historical representation of an entity’s financial position and does not consider the entity’s future growth potential. Group of answer
choices
5. Which of the following statements relates to the accounting period convention?
Group of answer choices
6. The requirement for the accounts of the business to be kept separate from the personal accounts of the owners illustrates the:
Group of answer choices
A. Accounting entity concept
B. Business entity concept
C. Legal entity concept
D. Economic entity concept
7. An entity’s financial year ends on 31 December. On 1 October it pays a 24-month magazine subscription of $600. Under the accrual system of accounting how much of the subscription will be recognized as an expense for the current year ended 31 December, and how much will be treated as an asset (prepaid subscription)?
In: Accounting
4. Which of the following are limitations of an entity’s Statement of Financial Position?
I. The Statement of Financial Position prepared at the end of the financial period may not be representative of the financial position at other times during the financial period.
II. The Statement of Financial Position may not include all items that create value for the entity.
III. The Statement of Financial Position is a historical representation of an entity’s financial position and does not consider the entity’s future growth potential. Group of answer
choices
5. Which of the following statements relates to the accounting period convention?
Group of answer choices
6. The requirement for the accounts of the business to be kept separate from the personal accounts of the owners illustrates the:
Group of answer choices
A. Accounting entity concept
B. Business entity concept
C. Legal entity concept
D. Economic entity concept
7. An entity’s financial year ends on 31 December. On 1 October it pays a 24-month magazine subscription of $600. Under the accrual system of accounting how much of the subscription will be recognized as an expense for the current year ended 31 December, and how much will be treated as an asset (prepaid subscription)?
In: Accounting
M4-6 Recording Adjusting Journal Entries [LO 4-2] For each of
the following transactions for the Sky Blue Corporation, prepare
the adjusting journal entries required on October 31. (If no entry
is required for a transaction/event, select "No Journal Entry
Required" in the first account field.)
a. Collected $3,300 rent for the period October 1 to December 31,
which was credited to Unearned Revenue on October 1.
b. Paid $1,920 for a two-year insurance premium on October 1 and
debited Prepaid Insurance for that amount.
c. Used a machine purchased on October 1 for $51,600. The company
estimates annual depreciation of $5,160.
In: Accounting
In: Statistics and Probability
According to the Bureau of Transportation Statistics, 81.9% of American Airlines flights were on time in 2017. Assume this percentage still holds true for American Airlines. For the next 46 flights from American Airlines, use the normal approximation to the binomial distribution. Determine the probability that 34, 35, 36, or 37 flights will arrive on time.
In: Statistics and Probability
a. Describe the two main types of medical institutions that existed in preindustrial America
b. Why did health insurance in the U.S become employer-based government mandates?
In: Operations Management