The Moto Hotel opened for business on May 1, 2017. Here is its trial balance before adjustment on May 31. MOTO HOTEL Trial Balance May 31, 2017

Debit Credit
Cash $2,523
Supplies 2,600
Prepaid Insurance 1,800
Land 15,023
Buildings 67,600
Equipment 16,800
Accounts Payable $4,723
Unearned Rent Revenue 3,300
Mortgage Payable 33,600
Common Stock 60,023
Rent Revenue 9,000
Salaries and Wages Expense 3,000
Utilities Expense 800
Advertising Expense 500
$110,646 $110,646

Other data:
1. Insurance expires at the rate of $450 per month.
2. A count of supplies shows $1,140 of unused supplies on May 31.
3. (a) Annual depreciation is $2,880 on the building.
(b) Annual depreciation is $2,280 on equipment.
4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)
5. Unearned rent of $2,510 has been earned.
6. Salaries of $880 are accrued and unpaid at May 31.

Required:
Journalize the adjusting entries on May 31.

Answers

Answer 1
Answer:

Answer:

1. Insurance expires at the rate of $450 per month.

Dr Insurance expense 450

    Cr Prepaid insurance 450

2. A count of supplies shows $1,140 of unused supplies on May 31.

Dr Supplies expense 1,460

    Cr Supplies 1,460

3. (a) Annual depreciation is $2,880 on the building.

Dr Depreciation expense 240

    Cr Accumulated depreciation, building 240

(b) Annual depreciation is $2,280 on equipment.

Dr Depreciation expense 240

    Cr Accumulated depreciation, equipment 190

4. The mortgage interest rate is 6%. (The mortgage was taken out on May 1.)

Dr Interest expense 168

    Cr Interest payable 168

5. Unearned rent of $2,510 has been earned.

Dr unearned revenue 2,510

    Cr Rent revenue 2,510

6. Salaries of $880 are accrued and unpaid at May 31.

Dr Wages expense 880

    Cr Wages payable 880


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Gilberto Company currently manufactures 65,000 units per year of one of its crucial parts. Variable costs are $1.95 per unit, fixed costs related to making this part are $75,000 per year, and allocated fixed costs are $62,000 per year. Allocated fixed costs are unavoidable whether the company makes or buys the part. Gilberto is considering buying the part from a supplier for a quoted price of $3.25 per unit guaranteed for a three-year period. Calculate the total incremental cost of making 65,000 and buying 65,000 units. Should the company continue to manufacture the part, or should it buy the part from the outside supplier?

Answers

Answer:

Incremental cost of buying the component = $69,500

Therefore the component shall be make in the company and shall not be bought from outside.

Explanation:

Provided the cost in case of manufacturing

65,000 units

Variable Cost = $1.95*65,000 = $126,750

Fixed Cost = $75,000

Total cost of making the product = $126,750 + $75,000 = $201,750

Total cost in case of buying the product

Price to be paid  = $3.25 * 65,000 = $211,250

Also the fixed cost of $60,000 will be incurred in any manner and is not avoidable.

In that case total cost of buying the product = $211,250 + $60,000 = $271,250

Incremental cost of buying the component = $271,250 - $201,750 = $69,500

Therefore the component shall be make in the company and shall not be bought from outside.

Final answer:

If Gilberto Company purchases the part externally, it will incur an extra cost of $12,750. Therefore, it is more cost-effective for the company to continue manufacturing the part in-house.

Explanation:

The first step is to calculate the total cost of producing 65,000 units in-house and the total cost of buying 65,000 units externally.

For in-house production: The cost is the sum of variable costs, fixed costs, and allocated costs, yielding: (65,000 units * $1.95/unit) + $75,000 + $62,000 = $198,500

For external purchasing: the total cost is simply 65,000 units * $3.25/unit = $211,250.

We subtract the in-house cost from the external purchasing cost to obtain the incremental cost: $211,250 - $198,500 = $12,750. Therefore, it costs an incremental $12,750 to buy 65,000 units externally compared to making them in-house. Considering the cost-effectiveness, Gilberto Company should continue to manufacture the parts in-house rather than buying them from the external supplier.

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Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and20,000 shares of $1 par value common stock outstanding at December 31, 2010. Therewere no dividends declared in 2009. The board of directors declares and pays a $45,000dividend in 2010. What is the amount of dividends received by the common stockholdersin 2010?a. $0b. $25,000c. $45,000d. $20,000

Answers

Answer:

The amount of dividend is $20,000.

Explanation:

Calculate the dividend on common stock using the equation as follows:

Dividend = Dividend Declared - (Number of Preferred shares * parvalue)*5%

=$45,000−(5,000×$100×5%)

=$45,000−$25,000

=$20,000

HR managers must comply with laws when hiring, promoting, compensating, and firing employees. These laws include

Answers

Complete Question:

HR managers must comply with laws when hiring, promoting, compensating, and firing employees. These laws include:

Group of answer choices

A. Breach of Warranty of Habitability.

B. Free and Appropriate Public Education Act.

C. Americans with Disabilities Act.

Answer:

C. Americans with Disabilities Act.

Explanation:

Human resources (HR) managers must comply with laws when hiring, promoting, compensating, and firing employees. These laws include Americans with Disabilities Act.

The Americans with Disabilities Act is an employment and civil rights law passed by the U.S Congress and signed into law by President George H. W. Bush on the 26th of July, 1990.

The main purpose of the Americans with Disabilities Act is to prohibit the discrimination and stigmatization of people having any form of disability in several fields such as employment, public accommodations, communications, transportation and access to all national programs and services across the United States of America.

With respect to employment and human resources (HR) managers, it protects the rights of job seekers and employees working in an organization.

If there is a market with the below noted market segmentation, what would the four firm market concentration ratio be?Distribution of sales: 30%, 3%,10%, 5%,15%, 2%, 35%

a. 10
b. 90
c. 50
d. 40

Answers

Answer:

The correct answer is:

90 (b.)

Explanation:

A concentration ratio is the ratio of the combined market shares percentage held by the largest specified number of firms, compared to the given market size. The concentration ratio ranges from 0% to 100%. If the concentration ratio of an industry ranges from 0% to 50%, that industry is said to be perfectly competitive if the top 5 firms have a concentration ratio of 60% or more, oligopoly is said to occur, and if the competition ratio of one company is 100% it shows monopoly.

In our example, the concentration of the largest four market segments are:

35%, 30%, 15% and 10%

Therefore, the four firm market concentration ratio = 35 + 30 + 15 + 10 = 90    

Answer:

b. 90

Explanation:

The concentration ratio is a term in business that is measured as the total summation of the market share percentage carried by the largest specified number of companies in an industry. The concentration ratio varies between 0% to 100%, and an industry's concentration ratio is considered to demonstrates the extent of competition in the industry.

However, the four-firm concentration ratio is calculated by summing the market shares—that is, the percentage of total sales—of the four largest companies in the given market.

Hence, in this case, we have 35%, 30%, 15% and 10% as the top four largest market share. There by, summation equals => 35+30+15+10 = 90.

For each of the following scenarios, classify the type of spending (C,I,G,Xn), describe its impact on gross domestic product (increase, decrease, not impacted), and explain. A. A new airplane purchased by United Parcel Service.
B. The tuition you pay during your first year of college.
C. The social security check your grandmother receives.
D. A new purchase of 50,000 shares of Time/Warner stock.
E. A new pair of tennis shoes made in China and purchased by an American shoe store.

Answers

Answer:

A. A new airplane purchased by United Parcel Service.

  • Investment (in fixed assets), GDP grows

B. The tuition you pay during your first year of college.

  • Consumption (of services), GDP grows

C. The social security check your grandmother receives.

  • Not included in GDP, social security checks are considered transfer payments.

D. A new purchase of 50,000 shares of Time/Warner stock.

  • Not included in GDP, only IPOs are included in GDP

E. A new pair of tennis shoes made in China and purchased by an American shoe store.

  • Import, GDP decreases since net exports decrease

Explanation:

Mitchell, a calendar year taxpayer, is the sole proprietor of a fast-food restaurant. His adjusted basis for the building and the related land is $450,000. On March 4, 2013, state authorities notify Mitchell that his property is going to be condemned so that the highway can be widened. On June 20, Mitchell’s property is officially condemned, and he receives an award of $625,000. Because Mitchell’s business has been successful in the past, he would like to reopen the restaurant in a new location. a. What is the earliest date Mitchell can acquire a new restaurant and qualify for § 1033 postponement? b. On June 30, Mitchell purchases land and a building for $610,000. Assuming thathe elects postponement of gain under § 1033, what is his recognized gain?c. What is Mitchell’s adjusted basis for the new land and building?d. If he does not elect § 1033, what are Mitchell’s recognized gain and adjustedbasis?e. Suppose he invests the $625,000 condemnation proceeds in the stock market onJune 30. What is Mitchell’s recognized gain?

Answers

Answer:

Please consider the explanation below

Explanation:

The earliest date Mitchell can purchase land and building is 4 March,2013-the date of threat of condemtion

According to section 1033 if a property similar to the property conveted , no gain shall be recognized.

b) If he elects section 1033 than there is no recognized gain.

c) His adjusted basis is $450000 cost of old land and building and plus any additional cost above $625000 what he has received.

d) he he invest in stock he does not qualify for 1033 so his recognized gain is $625000-450000=$175000.

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