The following data were selected from the records of Sykes Company for the year ended December 31, Current Year.

On January 1, 2021, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on Septemb

ELEN [110]

Answer:

The correct answer is $60,000.

Explanation:

According to the scenario, the given data are as follows:

Expenditure for Jan.1 = $334,000

Time period ( Jan.1 - Dec.31 ) = 12 months

So, average expenditure = $334,000

Similarly, Expenditure for Sep.1 = $498,000

Time period ( Sep.1 - Dec.31 ) = 4 months

So, average expenditure = $498,000 × 4÷12 = $166,000

Now, Expenditure for Dec.31 = $498,000

Time period ( Dec.31 - Dec.31 ) = 0 months

So, average expenditure = $498,000 × 0÷ 12 = 0

So, capitalized interest = ( average expenditure Jan.1 + average expenditure Sep.1 + average expenditure Dec.31) × 12%

= ($334,000 + $166,000 + $0) × 12%

= $500,000 × 12%

= $60,000

3 0

2 years ago

The company's total assets are $40,000. The following is a listing of the company’s accounts and account balances as of December

galina1969 [7]

Answer:

Determine the balance of the Cash account.

$3,800 Cash

Explanation:

As the total assets it's $40,000 by difference it's possible to find the total balance of cash account.

There are 3 accounts which belongs to the asset part, Accounts Receivable, Supplies and Equipment, by difference with the total balance of Assets it's possible to find the balance of Cash.

$40,000 TOTAL ASSETS

Minus

-$8,000 Accounts Receivable

-$2,000 Supplies

-$26,200 Equipment

$3,800 Cash

December 31, Year 3

$3,800 Cash

$8,000 Accounts Receivable

$2,000 Supplies

$13,800 TOTAL CURRENT ASSETS

$26,200 Equipment

$26,200 TOTAL NONCURRENT ASSETS

$40,000 TOTAL ASSETS

$8,000 Accounts Payable

$0,000 Income Tax Payable

$8,000 TOTAL CURRENT LIABILITIES

$8,000 TOTAL LIABILITIES

$17,000 Retained Earnings

$15,000 Common Stock

$32,000 TOTAL EQUITY

$40,000 TOTAL EQUITY + LIABILITIES

7 0

2 years ago

Soar Incorporated is considering eliminating its mountain bike division, which reported an operating loss for the recent year of

ludmilkaskok [199]

Answer:

Decrease by $132,100

Explanation:

Computation of the given data are as follow:-

We can calculate the Operating Income by using following formula:-

Fixed Cost = Fixed Cost * Dropped Rate

= $193,000 * 30/100

= $57,900

So, Operating Income = Sales - Variable Cost - Fixed Cost

= $,1050,000 - $860,000 - $57,900

= $132,100

According to the Analysis, the operating income will be decrease by $132,100 if the business segment is eliminated.

8 0

2 years ago

Pacific Ink had a beginning work-in-process inventory of $861,960 on October 1. Of this amount, $351,920 was the cost of direct

andrew11 [14]

Answer:

Cost of goods transferred out (FIFO) = $ 6122589.82

Cost of Ending Inventory = $ 939,470.18

Explanation:

Units % of Completion EUP

D.M C.C D.M C.C

Units completed 114,000 100 100 114,000 114,000

Ending Inventory 36,000 80 40 28,800 14400

Total Equivalent Units Of Production 142,800 128,400

Direct Materials= $ $2,721,900/142,800 = $ 19.0761

Conversion Costs = $3,478,200/ 128,400= $ 27.089

Cost of Ending Inventory = $549,391.68 + $390,078.5= $ 939,470.18

Materials = $ 19.0761* 28,800 = $549,391.68

Conversion Costs =$ 27.089 *14400 = $390,078.5

Beginning work-in-process inventory Costs $861,960

Costs incurred During the period= $2,721,900 + $3,478,200= $ 6200100

Cost of goods transferred out = Beg Inventory + Units Started- Ending Inv

Cost of goods transferred out =$861,960 + $ 6200100-$ 939,470.18

Cost of goods transferred out = $ 6122589.82

8 0

1 year ago

A Forman of a construction company is responsible for a construction crew comprised of many unskilled workers. The work is hard,

NemiM [27]

Solution :

In the context, it is given that foreman in a construction company is responsible for the workers who are unskilled labors.

1. The segregation of the duties which involves the separation of the main functions and have them to conducted by the different workers. But here in this case, the approval of the attendance of the employees and the distribution of the checks to the worker are the important activities that are being conducted by a single employee.

2. This may result into frauds to the company. If the segregation of the duties is not implemented, then the company is at risk. This is because a single employee does the work for the approval of the attendance of the workers and distributing the checks to them for their work. So this can result in a fraud if the foreman wants to do fraud. But distributing the work among two employee will reduce the risk of fraud as one employee many not be willing to do fraud.

5 0

1 year ago