The following were selected from among the transactions completed by Harrison Company during November of the current year:
| Nov. | 3 | Purchased merchandise on account from Moonlight Co., list price $88,000, trade discount 20%, terms FOB destination, 2/10, n/30. |
| 4 | Sold merchandise for cash, $41,250. The cost of the merchandise sold was $22,250. | |
| 5 | Purchased merchandise on account from Papoose Creek Co., $43,700, terms FOB shipping point, 2/10, n/30, with prepaid freight of $840 added to the invoice. | |
| 6 | Returned $13,600 ($17,000 list price less trade discount of 20%) of merchandise purchased on November 3 from Moonlight Co. | |
| 8 | Sold merchandise on account to Quinn Co., $16,100 with terms n/15. The cost of the merchandise sold was $9,440. | |
| 13 | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. | |
| 14 | Sold merchandise on VISA, $226,120. The cost of the merchandise sold was $135,430. | |
| 15 | Paid Papoose Creek Co. on account for purchase of November 5. | |
| 23 | Received cash on account from sale of November 8 to Quinn Co. | |
| 24 | Sold merchandise on account to Rabel Co., $60,700, terms 1/10, n/30. The cost of the merchandise sold was $33,120. | |
| 28 | Paid VISA service fee of $3,580. | |
| 30 | Paid Quinn Co. a cash refund of $1,730 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise. |
Required:
| Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered. |
Chart of Accounts
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| Harrison Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
In: Accounting
The following were selected from among the transactions completed by Harrison Company during November of the current year:
| Nov. | 3 | Purchased merchandise on account from Moonlight Co., list price $120,000, trade discount 25%, terms FOB destination, 2/10, n/30. |
| 4 | Sold merchandise for cash, $53,500. The cost of the merchandise sold was $32,100. | |
| 5 | Purchased merchandise on account from Papoose Creek Co., $67,400, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,150 added to the invoice. | |
| 6 | Returned $19,200 ($25,600 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. | |
| 8 | Sold merchandise on account to Quinn Co., $22,100 with terms n/15. The cost of the merchandise sold was $13,000. | |
| 13 | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. | |
| 14 | Sold merchandise on VISA, $335,000. The cost of the merchandise sold was $198,700. | |
| 15 | Paid Papoose Creek Co. on account for purchase of November 5. | |
| 23 | Received cash on account from sale of November 8 to Quinn Co. | |
| 24 | Sold merchandise on account to Rabel Co., $80,800, terms 1/10, n/30. The cost of the merchandise sold was $48,300. | |
| 28 | Paid VISA service fee of $5,030. | |
| 30 | Paid Quinn Co. a cash refund of $1,770 for damaged merchandise from sale of November 8. Quinn Co. kept the merchandise |
CHART OF ACCOUNTSHarrison CompanyGeneral Ledger
| ASSETS | |
| 110 | Cash |
| 121 | Accounts Receivable-Quinn Co. |
| 122 | Accounts Receivable-Rabel Co. |
| 125 | Notes Receivable |
| 130 | Merchandise Inventory |
| 131 | Estimated Returns Inventory |
| 140 | Office Supplies |
| 141 | Store Supplies |
| 142 | Prepaid Insurance |
| 180 | Land |
| 192 | Store Equipment |
| 193 | Accumulated Depreciation-Store Equipment |
| 194 | Office Equipment |
| 195 | Accumulated Depreciation-Office Equipment |
| LIABILITIES | |
| 211 | Accounts Payable-Moonlight Co. |
| 212 | Accounts Payable-Papoose Creek Co. |
| 216 | Salaries Payable |
| 218 | Sales Tax Payable |
| 219 | Customer Refunds Payable |
| 221 | Notes Payable |
| EQUITY | |
| 310 | Owner, Capital |
| 311 | Owner, Drawing |
| REVENUE | |
| 410 | Sales |
| 610 | Interest Revenue |
| EXPENSES | |
| 510 | Cost of Merchandise Sold |
| 521 | Delivery Expense |
| 522 | Advertising Expense |
| 524 | Depreciation Expense-Store Equipment |
| 525 | Depreciation Expense-Office Equipment |
| 526 | Salaries Expense |
| 531 | Rent Expense |
| 533 | Insurance Expense |
| 534 | Store Supplies Expense |
| 535 | Office Supplies Expense |
| 536 | Credit Card Expense |
| 539 | Miscellaneous Expense |
| 710 | Interest Expense |
Journalize the transactions. Refer to the chart of accounts for the exact wording of the account titles. CNOW journals do not use lines for journal explanations. Every line on a journal page is used for debit or credit entries. CNOW journals will automatically indent a credit entry when a credit amount is entered.
PAGE 10
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In: Accounting
a) Saha have two investment alternatives from which he need to choose one. If the current market interest rate is 8%, which alternative would saha choose and why?
Alternative 1: Receive $ 280 semi-annually for the next 12 years
Alternative 2: Receive $ 12000 lumpsum at the end of 12 years
b) During the four years of saha's University life, saha have received the following amounts of money at the end of each year for outstanding performance from the university fund. He deposited his money in a savings account paying 10 percent rate of interest per annum. How much money will he have on the graduation day at the end of four years?
|
Year |
$ |
|
1 |
350 |
|
2 |
330 |
|
3 |
350 |
|
4 |
400 |
In: Finance
The Potter family has a marginal propensity to consume (MPC) of 0.70. If their disposable income increases by $500, what happens to their consumption and saving?
Select one:
a. Consumption rises by $700, and saving falls by $200.
b. Consumption rises by $350, and saving falls by $150.
c. Consumption rises by $350, and saving rises by $150.
d. Consumption rises by $700, and saving rises by $300.
e. It depends on their marginal tax rate.
If Canadians expect future disposable income to decrease, then
Select one:
A. Canada's consumption function shifts downward.
B. Canada's consumption function shifts upward.
C. a movement occurs up along Canada's consumption function.
D. a movement occurs down along Canada's consumption function.
E. Canada's saving function shifts downward.
In: Economics
Radar Company sells bikes for $350 each. The company currently sells 4,200 bikes per year and could make as many as 5,000 bikes per year. The bikes cost $270 each to make; $155 in variable costs per bike and $115 of fixed costs per bike. Radar received an offer from a potential customer who wants to buy 775 bikes for $380 each. Incremental fixed costs to make this order are $51,000. No other costs will change if this order is accepted. Compute Radar’s additional income (ignore taxes) if it accepts this order.
|
incremental amount per unit |
incremental fixed costs |
incremental income from new business |
|
| sales | $350 | ?? | |
| variable costs | 195 | ?? | |
| contribution margin | ?? | ?? | |
| fixed costs | $40,000 | $40,000 | |
| incremental income (loss) | ?? | ||
| the company should | ?? |
In: Accounting
Rohan and Lindsay’s offer of $350,000 on a dream home has been accepted! They are excited to move from being renters to homeowners but know that things will be tight since it took all their savings for a 10% down payment. Costs are however adding up, which is making them nervous. The Canada Mortgage Housing Corporation (CMHC) mortgage loan insurance premium is 3.10% of the mortgage amount which they have decided to pay at the time of closing instead of adding it to their monthly mortgage. Other fees include a $275 loan application fee, a $350 appraisal fee, a $750 home inspection fee, $665 in notary fees and $350 for title search and insurance. How much will Rohan and Lindsay need to cover at closing including the down-payment?
$47,155
$35,000
$37,390
$46,950
$47,000
In: Finance
A company produces a product in two departments, P1 and P2. The company has two support departments, S1 and S2. The company allocates S1 costs to other departments based on square meters and S2 costs based on machine hours.
SUPPORT DEPARTMENTS PRODUCTION DEPARTMENTS
S1 S2 P1 P2 TOTAL
COSTS 500 120 350 150 1,120
SQUARE METERS 1000 1600 2400 4000 9000
MACHINE HOURS 200 375 1600 200 2375
TOTAL COSTS 500 120 350 150 1,120
a) (20 pts) Use the direct method to allocate support department costs. b) (40 pts) Use the sequential method to allocate support department costs. c) (40 pts) Use the reciprocal method to allocate support department costs.
In: Accounting
3. An electrical firm manufactures an equipment that has a lifetime that is normally distributed with mean 350 hours and standard deviation of 30 hours.
(a) The company is providing a warranty of 320 hours for their product. What is the proportion of product do you expect to be returned for repair during the warranty period? If the company is willing to repair only 2 % of his product, what warranty period should the company provide?
(b)A random sample of size 25 is drawn from the population, X1, ..., X25~ IID ~ N(350, 30²). Find the distribution of the sample mean (X̅) of the random sample. If 1000 random samples of size 25 are drawn from the population and the sample means are recorded. How many sample means out of the 1000 samples would you guess to fall below 340.
In: Statistics and Probability
3. An electrical firm manufactures an equipment that has a lifetime that is normally distributed with mean 350 hours and standard deviation of 30 hours.
(a) The company is providing a warranty of 320 hours for their product. What is the proportion of product do you expect to be returned for repair during the warranty period? If the company is willing to repair only 2 % of his product, what warranty period should the company provide?
(b)A random sample of size 25 is drawn from the population, X1, ..., X25~ IID ~ N(350, 30²). Find the distribution of the sample mean (X̅) of the random sample. If 1000 random samples of size 25 are drawn from the population and the sample means are recorded. How many sample means out of the 1000 samples would you guess to fall below 340.
In: Statistics and Probability
You must select a high-speed transportation option between Charlotte and Raleigh. The first option is a revolutionary Tube Train with an initial investment of $350 million with yearly maintenance costs of $25 million. You will have to overhaul the Tube Train every 50 years at a cost of $350 million. The second option is the reliable Point-toPoint Transporter with an initial investment of X dollars and a yearly maintenance cost of 2% of the initial investment (0.02*X). You will overhaul the Transporter every 20 years at the same X dollar cost and have the same maintenance cost of 0.02*X per year. What is the breakeven cost of X where both options have the same Capitalized Cost using a MARR of 7%?
Please show all work without using excel.
In: Economics