The graph illustrates a normal distribution for the prices paid
for a particular model of HD television. The mean price paid is
$1600 and the standard deviation is $140.
1180 1320 1460 1600 1740 1880 2020
Use the 68-95-99.7 Rule to answer the following questions.
What is the approximate percentage of buyers who paid more than
$2020?
%
What is the approximate percentage of buyers who paid more than
$1880?
%
What is the approximate percentage of buyers who paid between $1460
and $1740?
%
What is the approximate percentage of buyers who paid between $1460
and $1600?
%
What is the approximate percentage of buyers who paid between $1600
and $2020?
%
What is the approximate percentage of buyers who paid between $1600
and $1880?
In: Statistics and Probability
The following information is an extract from the financial statements of Extreme-Experiences Pty Ltd.
|
2020 |
2019 |
|
|
Current Assets |
409,500 |
292,500 |
|
Non-current Assets |
2,275,000 |
1,768,000 |
|
Current Liabilities |
221,000 |
169,000 |
|
Non-current Liabilities |
764,400 |
670,800 |
|
Total Revenue |
728,000 |
624,000 |
|
Total Expenses |
500,500 |
455,000 |
a) Calculate the following ratios for both 2019 and 2020.
|
2020 |
2019 |
|
|
Profit Margin (Correct your answer to 0.01%) |
||
|
Current Ratio (Correct your answer to 0.1) |
||
|
Debt to Total Assets Ratio (Correct your answer to 0.01%) |
b) Comment on the Liquidity of Extreme-Experiences using the answers in part a).
c) Which ratio measures Solvency? Provide suggestions on how to improve the Solvency of Extreme-Experiences.
In: Accounting
GCA Ltd reported the following information in its statement of financial position at 30 June 2020:
Plant $650,000
Accumulated depreciation – plant (150,000)
Intangible assets 300,000
Accumulated amortisation (100,000)
Land 300,000
Total non-current assets 1,000,000
Cash 50,000
Inventory 180,000
Total current assets 230,000
Total assets $1,230,000
Liabilities 150,000
Net assets $1,080,000
At 30 June 2020, GCA Ltd analysed the internal and external sources of information that would indicate deterioration in the worth of its assets. It determined that there were indications of impairment. GCA Ltd calculated the recoverable amount of the assets to be $980,000.
Provide the journal entry for any impairment loss at 30 June 2020. Show all calculations.
In: Accounting
During 2020, Skysong Company started a construction job with a contract price of $1,590,000. The job was completed in 2022. The following information is available.
|
2020 |
2021 |
2022 |
||||
|---|---|---|---|---|---|---|
|
Costs incurred to date |
$396,000 | $806,600 | $1,080,000 | |||
|
Estimated costs to complete |
594,000 | 283,400 | –0– | |||
|
Billings to date |
301,000 | 892,000 | 1,590,000 | |||
|
Collections to date |
268,000 | 816,000 | 1,427,000 |
Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.
|
Gross profit recognized in 2020 |
$enter a dollar amount |
|
|---|---|---|
|
Gross profit recognized in 2021 |
$enter a dollar amount |
|
|
Gross profit recognized in 2022 |
$enter a dollar amount |
eTextbook and Media
List of Accounts
Prepare all necessary journal entries for 2021
In: Accounting
On March 31, 2020, Adtech Inc. issued $200,000, 9%,10-year bonds. The bonds pay interest semi-annually, on September 30 and March 31. The first interest payment is on September 30, 2020. The bonds are issued at a price of 1141/4 (i.e., $228,500). The issuance price implies an effective interest rate of 7%. Bond issue costs are $10,000, which are amortized using the straight-line method. Adtech’s fiscal year-end is on December 31.
1.Prepare all necessary journal entries in relation to these bonds between March 30, 2020 and April 1, 2021.
2. What is the amount of the liability that Adtech has to the bondholders on September 30, 2021, after the interest payment on that date?
In: Accounting
“US oil prices turned negative for the first time on record on Monday April 20th, 2020 after oil producers ran out of space to store the oversupply of crude left by the coronavirus crisis, triggering an historic market collapse which left oil traders reeling.” (The Guardian, April 20th, 2020)
On April 21st, 2020 the US president Donald Trump tweeted: “We will never let the great U.S. Oil & Gas Industry down. I have instructed the Secretary of Energy and Secretary of the Treasury to formulate a plan, which will make funds available so that these very important companies and jobs will be secured long into the future!”
What factors or government policies do you think will help the price of oil to go up?
In: Economics
QUESTION FIVE [10]
The following information was extracted from the accounting records of Humid Limited for the year ended 31 May 2020:
Humid Ltd
Summary of the statement of profit and loss and other comprehensive income
for the year ended 31 May 2020 .
|
31 May 2020 R |
|||
|
Sales Cost of sales |
1 840 000 (980 000) |
||
|
Gross profit Other income |
860 000 185 000 |
||
|
Commission income Profit on sale of non-current asset |
123 000 62 000 |
||
|
Distribution administration and other expenses |
(625 000) |
||
|
Audit fees Depreciation Salaries and wages Other expenses |
58 000 80 000 402 000 85 000 |
||
|
Finance cost |
(40 000) |
||
|
Interest on borrowings |
40 000 |
||
|
Profit before taxation |
380 000 |
||
|
Income tax expense |
(80 000) |
||
|
Profit / total comprehensive income for the year |
300 000 |
||
Humid Ltd
Extract from the statement of financial position as at 31 May 2020.
|
31 May 2020 R |
31 May 2019 R |
|
|
Inventories – merchandise
Trade debtors Bank Trade creditors Prepaid expenses Accrued expenses |
90 000 5 000 330 000 147 000 170 000 4 200 16 800 |
122 000 5 800 298 000 53 000 178 000 1 800 17 600 |
Required:
Prepare the following section of the statement of cash flows of Humid Limited for the year ended 31 May 2020:
Note that the entire “cash flows from operating activities” section is not required.
Humid Limited uses the indirect method to prepare its statement of cash flows.
In: Accounting
Martin MFG company uses balance sheet approach to calculate allowance for doubtful accounts and bad debt expense. Current policy is to reserve 20% gross accounts receivable as an allowance for uncollectible accounts.
Martin MFG company issued 10% stated rate bonds in 2020. Effective market rate of interest for these bonds is 8%.
Select all statements that are true regarding the
information above. Ignore taxes and any cost of goods sold.
Reducing the percentage of gross accounts receivable reserved in the allowance for uncollectible accounts will increase net income
Increasing the percentage of gross accounts receivable reserved in the allowance for uncollectible accounts will increase net income
Reducing the amount of accounts receivable written off by $1,000 will increase net income
Increasing the amount of accounts receivable written off by $1,000 will increase net income
If given option to deliver inventory in either 2020 or 2021 waiting to deliver inventory to customers until 2021 will increase revenue in 2020
If given option to deliver inventory in either 2020 or 2021 delivering inventory to customers in 2020 will increase revenue in 2020
Using income statement approach to calculate bad debt expense will always result in lower bad debt expense versus the balance sheet approach
Using direct write off method to calculate bad debt expense will always result in lower bad debt expense versus the balance sheet approach
Increasing the stated rate of the bonds would have increased the price of the bonds at issuance
Increasing the market rate used to price the bonds would have increased the price of bonds at issuance
Present value of bonds issued is higher than face value
Present value of bonds issued is lower than face value
In: Accounting
Peanut Corporation is a private corporation using IFRS. At December 31, 2020, an analysis of the accounts and discussions with company officials included the following account balances and other information:
Accounts receivable
$102,000
Accrued interest payable
1,000
Dividend revenue
9,000
Sales revenue
600,000
Purchase discounts
9,000
Purchases
360,000
Accounts payable
30,000
Loss from fire (net of $7,000 tax)
21,000
Selling expenses
64,000
Common shares (20,000 issued; no change during 2020)
200,000
Accumulated depreciation
90,000
Long-term note payable (due Oct 1, 2024)
100,000
Inventory, Jan 1, 2020
76,000
Inventory, Dec 31, 2020
62,500
Supplies inventory
40,000
Unearned service revenue
3,000
Land, at cost (fair value is $450,000).
370,000
Cash
60,000
Franchise
100,000
Retained earnings, Jan 1, 2020
135,000
Interest expense
8,500
Cumulative effect of change from straight-line to accelerated depreciation (net of $6,000 tax) prior to 2020
(18,000)
General and administrative expenses
80,000
Dividends declared and paid
15,000
Allowance for doubtful accounts
5,000
Loss from discontinued operation (before tax)
20,000
Machinery and equipment
225,000
Unless indicated otherwise, you may assume a 25% income tax rate.
General and administrative expenses include depreciation.
Peanut has chosen to account for its land at fair value but the bookkeeper does not understand what to do so he has kept the land’s recorded value at cost.
There are no preferred shares issued.
Instructions
a. Prepare, in good form, a multiple-step comprehensive income statement.
b. Prepare, in good form, the retained earnings portion of the statement of changes in equity.
In: Accounting
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In: Accounting