Answer:
$459,000
Explanation:
The computation of the ending retained earning balance is shown below:
Ending retained earning balance is
= Opening retained earning balance + net income - dividend
where
Net income
= Service revenue - operating expenses
= $827,000 - $748,000
= $79,000
Now the ending retained earnings balance is
= $444,000 + $79,000 - $64,000
= $459,000
Taggart Technologies is considering issuing new common stock and using the proceeds to reduce its outstanding debt. The stock issue would have no effect on total assets, the interest rate Taggart pays, EBIT, or the tax rate. Which of the following is likely to occur if the company goes ahead with the stock issue?
A. The ROA will decline.
B. Taxable income will decline.
C. The tax bill will increase.
D. Net income will decrease.
E. The times-interest-earned ratio will decrease.
Answer:
C. The tax bill will increase.
Explanation:
Interest paid on debt finance is tax deductible , unlike the dividends paid on common stock which are not deductible for tax purposes,hence, by reducing debt capital so also the interest expense which has the potential to reduce taxable income would also reduce.
Hence, there would higher taxable profit and eventually, there would higher tax, in essence, the correct option is the option C
Information concerning a magazine’s readership is of interest both to the publisher and to the magazine’s advertisers. A survey of 500 subscribers included the following questions. For each question, determine the data type of possible responses.
a What is your age?
b What is your gender?
c What is your marital status?
d Is your annual income less than $30000,
between $30000 and $60000, or over
$60 000?
e To how many other magazines do you
subscribe?
f How do you rate the feature article
published in the current issue of the magazine (very good, good or poor)?
What skills and interests might someone in a trade career have?
Answer:
Confidence.
Numerical skills.
IT skills.
Communication skills.
An interest in financial markets.
Analytical skills.
Interpersonal skills.
Teamworking skills.
When developing baseline standards, it is vital to use industry best practices. Industry best practices standards enable one to justify choices being made to regulators. Furthermore, there is increased efficiency to be gained by modifying an existing standard as opposed to creating one from the ground up.
A. True
B. False
Answer:
A. True
Explanation:
A baseline may be defined as the minimum amount of security that a network, a device or a system must adhere to. They are generally mapped to the industry standards. It is applied to the several layers of the IT infrastructure of an organization.
When developing them, it is very important to make use of the industry best practices. It enables to justify the choices that are being made to the regulators.
Hence the answer is true.
Job 910 was recently completed. The following data have been recorded on its job cost sheet: Direct materials $ 2,430 Direct labor-hours 70 labor-hours Direct labor wage rate $ 20 per labor-hour Machine-hours 134 machine-hours The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $21 per machine-hour. The total cost that would be recorded on the job cost sheet for Job 910 would be:
Answer:
6644
Explanation:if u do the math whith your numbers you should get the answer
Account of a supplier would be found
The purchase ledger contains the individual accounts of suppliers from whom the business has made purchases on credit.
Mark as brainlist
The individual accounts of suppliers that the company has made credit-based purchases from are listed in the purchase ledger.
What is the Account of a supplier?The term "supplier accounts" refers to all accounts generated by a borrower or domestic subsidiary for a specific account debtor or its affiliates in the event that a borrower or domestic subsidiary has established a supplier agreement with respect to any of an account debtor's accounts.
Every supplier and client that the business deals with will be handled as a distinct account. Items can be linked to an account that are both material and immaterial.
All transactions relating to each and every Supplier, including all invoices issued and paid for beginning on the first day, are kept in the Supplier ledgers.
Thus, The individual accounts of suppliers that the company has made credit-based purchases.
For more details about Account of a supplier, click here:
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On December 1st, the company pays a local radio station $200,000 for 4 months of radio ads that are to be aired equally throughout December through March. Prepaid Advertising was debited on December 1st and no other entries regarding this transaction were made since then.
15. $ After the adjusting entry has been recorded on December 31", determine the amount of advertising expense for the year ended December 314 16. S After the adjusting entry has been recorded on December 31%, determine the ending balance in the prepaid advertising account that should be recorded on the December 31" Balance Sheet. Use the following transactions to answer questions
17-19 Determine the amount of revenue or expense that would be reported at the time of the transaction under the two methods. An example transaction has been completed for you.
Question Completion:
Journalize the adjusting entry.
Answer:
Adjusting Journal Entry:
December 31:
Debit Advertising Expense $50,000
Credit Prepaid Advertising $50,000
To record the advertising expense for the year (1 month's).
Explanation:
a) Data and Calculations:
December 1: Prepaid Advertising for 4 months = $200,000
Advertising expense for the year (1 month) = $50,000 ($200,000/4 months)
Balance of Prepaid Advertising for 3 months = $150,000 ($200,000 *3/4)
b) The Adjusting Journal entry recognizes the advertising expense that relates to the year and carry forward the prepaid balance to the next accounting year. Expenses and revenue are recorded when the services are consumed or rendered and not when cash is exchanged. In this case, the $200,000 is not recognized as advertising expense for the current year. Instead, only $50,000 is recorded as expense. The balance of $150,000 is carried forward to the next year when the service will be consumed.
The following information is available for the adjusting entries. Accrued interest on the notes payable at year-end amounted to $4,000 and will be paid January 1, 2022. Accrued salaries at year-end amounted to $3,000 and will be paid on January 5, 2022. Supplies remaining on hand at the end of the year equal $3,800. Problem 3-9B Part 9 9. Record closing entries.
Question Completion:
Assume that Supplies were purchased during the year worth $13,000.
Record the adjusting entries.
Answer:
Adjusting Journal Entries on December 31, 2021:
Debit Interest Expense $4,000
Credit Interest payable $4,000
To record the accrued interest on the notes payable.
Debit Salaries Expense $3,000
Credit Salaries payable $3,000
To record the accrued salaries at year end.
Debit Supplies Expense $9,200
Credit Supplies $9,200
To record supplies expense for the year.
Explanation:
a) Data and Calculations:
Supplies purchased = $13,000
Supplies at year-end = 3,800
Supplies consumed = $9,200 ($13,000 - $3,800)
b) Adjusting entries are journal entries done at the end of a financial period to ensure that expenses and revenues are matched to the period they occur instead of when cash is exchanged. This accords with the accrual concept and the matching principle of accounting.
The International Bank for Reconstruction and Development was originally founded with the purpose of:_________
Answer:
Explanation:
This banks original purpose for being founded was to provide money and help pay for the reconstruction of European nations that suffered great losses during the second World War. This bank was founded in 1944, one whole year before the end of the war. The war completely destroyed many European nations as well as their economies so it was very difficult for them to rebuild without the help of the International Bank for Reconstruction and Development.
(b) The citizens of this country are in general very clever people, but they are not good at multiplying by 2. This made shopping for potatoes excruciatingly difficult for many citizens. Therefore it was decided to introduce a new unit of currency, such that potatoes would be the numeraire. A sack of potatoes costs one unit of the new currency while the same relative prices apply as in the past. In terms of the new currency, what is the price of meatballs
Answer: 2 sacks of potatoes
Explanation:
In the past, meatballs cost 4 crowns per crock which was twice the price of Potatoes at 2 crowns per sack.
Now that potatoes were are the new currency but relative prices apply, the same notion above applies too.
If meatballs are twice the price of potatoes and potatoes are now the currency, then meatballs which are still twice the price of potatoes must be:
= 2 * 1 sack of potatoes
= 2 sacks of potatoes
The next three questions are based on the following information: Demand for an item is 1000 units per year. A processing fee of $10 will be charged for each order placed. The purchasing cost of the item is $20. The annual cost to carry an item in inventory is 20% of the item costs. What is the unit inventory holding cost
Answer:
$4.00
Explanation:
The cost of purchasing 1000 units per year is computed thus:
the annual cost of purchase=annual demand*cost per unit
annual demand=1000
cost per unit=$20
the annual cost of purchase=1,000*$20
the annual cost of purchase=$20,000
The cost of carrying or holding the inventory for one year is 20% of cost of purchase
Annual holding cost=20%*$20,000
Annual holding cost=$4,000
the unit inventory holding cost=annual holding cost/annual demand
the unit inventory holding cost=$4,000/1000
the unit inventory holding cost=$4.00
Suppose we want to highlight the year number for each year during which sales were at least 5% higher than the previous year. We would begin by selecting the cell range D6:D12 and choose Conditional Formatting from the Ribbon. Then you would select new rules followed by the Use a Formula option. Finally you would enter the following formula.
Year Actual Sales Cumulative Sales
1 77 77
2 58 135
3 78 213
4 40 253
5 42 295
6 44 339
7 74 413
8 83 496
A. (E5/E4)>1.05.
B. ($E$6/E5)>1.05.
C. (E6/E5)>1.05.
D. (E6/E5)>.05.
Answer:
c) E6/E5 > 1.05
Option C is the correct option.
Explanation:
Data Given:
Year Actual Sales Cumulative Sales
1 77 77
2 58 135
3 78 213
4 40 253
5 42 295
6 44 339
7 74 413
8 83 496
The formula, we have to use in this question is:
c) E6/E5 > 1.05
Option C is the correct option.
Actual Sales/Previous Sales > (1+r)
r = 5%
r = 0.05
Actual Sales/Previous Sales > (1 + 0.05)
Actual Sales/ Previous Sales > (1.05)
Here, the sales were at least 5% higher than the previous year sales. Therefore, the correct formula here we need to enter in Excel Spread Sheet is "E6/E5 > 1.05"
Where, E is the name of the cell in the Excel Spreadsheet.
Which of these best describes the relationship
between business equity and profit?
A. The proportion of the
equity one owns is more than the
proportion of the profits received.
B. The proportion of the equity one owns is less than the
proportion of the profits received.
C. The proportion of the equity one owns is the same proportion
of the profits received.
Swifty Corporation had the following selected transactions.
1. Kim Leppard invested $7,274 cash in the business in exchange for common stock.
2. Paid office rent of $1,382.
3. Performed consulting services and billed a client $6,838.
4. Declared and paid a $873 cash dividend.
Answer:
Missing word "Indicate the effect each transaction has on the accounting equation, (Assets = Liabilities + Stockholders' Equity), using plus and minus signs."
Assets = Liabilities + Stockholders' Equity
1. Increase(+) No Effect Increase(+)
2. Decrease(-) No Effect Decrease(+)
3. Increase(+) No Effect Increase(+)
4. Decrease(-) No Effect Decrease(+)
Testbank Multiple Choice Question 145 Sheffield Corp. had 330 units of product A on hand at January 1, 2020, costing $22 each. Purchases of product A during January were as follows: Date Units Unit Cost Jan. 10 410 $23 18 450 24 28 180 25 A physical count on January 31, 2020 shows 440 units of product A on hand. The cost of the inventory at January 31, 2020 under the LIFO method is $10740. $9790. $9490. $10190.
Answer:
$9790
Explanation:
LIFO means last in first out. It means it is the last purchased inventory that is the first to be sold.
If LIFO method is used, the reaming inventory would consist of the earliest purchased inventories.
If 440 units remain, they wold consist of beginning inventory and inventory purchased on 10th of January
(330 x $22) + [(440 - 330) x $23) = $9790
PLEASE HELP!!!!
How is a check treated by the US government?
a. as currency
b. as a legal contract
c. as a negotiable instrument
d. as a promise from the payee to the payer
Answer:
legal contract
Explanation:
should be it or currency
Discuss the purpose of strategic planning in a health care environment. Explain what factors affect future planning in an organization and what tools can be used for future planning
Answer: Strategic planning in health care organization is the outlining of steps to to to reach a specific goal within the health sector, it could be a challenge that needs to be solved or an improvement on already existing plans to make them better
Explanation:
Strategic planning in health care organization is the outlining of steps to to to reach a specific goal within the health sector, it could be a challenge that needs to be solved or an improvement on already existing plans to make them better
Factors that affect future planning in organization;
Poor planning; not having a proper plan can lead to failure most times. Sometimes, it's not just about planning but it's more importantly about having aims and objectives that would solve a problem, if it is not solving a problem then there would be failure.
Poor execution; this problem is most times caused by team members who have not grasped the full idea of what the plan is about, don't know how to go about it or are not enthusiastic about the plan.
Tools for planning;
SWOT Analysis
Porter's Five Forces
PESTLE Analysis
Visioning
VRIO Framework
Pack-and-Go, a new competitor to FedEx and UPS, does intra-city package deliveries in seven major metropolitan areas. The performance of Pack-and-Go is measured by management as: (1) delivery time (relative to budgeted delivery time), (2) on-time delivery rates (defined as agreed-upon delivery date/time plus or minus a specified cushion), and (3) percentage of lost or damaged deliveries. In response to competitive pressures, Pack-and-Go is evaluating an investment in new technology that would improve customer service and delivery quality, particularly in terms of items (2) and (3) above. The annual cost of the new technology, for each of the seven metropolitan areas serviced by Pack-and-Go, is expected to be $80,000. You have gathered the following information regarding delivery performance under both existing operations and after implementing the new technology:
Decision Alernative
After Implementing
Item Current System New Technology
On-time delivery rate 80% 95%
Variable cost per package lost or damaged $30 $30
Allocated fixed cost per package lost or damaged $10 $10
Annual number of packages lost or damaged 300 100
Based on a recent marketing study commissioned by Pack-and-Go, the company estimates that each percentage point increase in the on-time performance rate would lead to an annual revenue increase of $10,000. The average contribution margin ratio for packages delivered by Pack-and-Go is estimated as 40%.
Required:
1. From a financial perspective, should pack-and-Go invest in the new technology?
2. Based on the data collected by Pack-and-Go, the company is fairly confident about the reduction in costs associated with lost or damaged packages. However, because of uncertainties in terms of pricing in the markets in which Pack-and-Go operates, it is less sure about the predicted increase in revenues associated with the implementation of the new technology. What is the break-even increase in annual revenue that would justify the investment in the new technology?
Answer:
Pack-and-Go
1. From a financial perspective, Pack-and-Go should invest in the new technology. It will enjoy a contribution margin of 97.5%.
2. The break-even increase in annual revenue that would justify the investment in the new technology is:
Fixed cost = Contribution
$80,000 = Contribution - $8,000
= $72,000 ($80,000 - $8,000
Explanation:
a) Data and Calculations:
Expected cost of new technology investment = $80,000
Delivery performance:
Decision Alternative
After Implementing
Item Current System New Technology
On-time delivery rate 80% 95%
Variable cost per package lost
or damaged $30 $30
Allocated fixed cost per
package lost or damaged $10 $10
Annual number of packages
lost or damaged 300 100
Variable cost for lost or
damaged packages $9,000 (300*$30) $3,000 (100*$30)
Fixed cost for lost or
damaged packages 3,000 (300*$10) $1,000 (100*$10)
Total cost for lost or
damaged packages $12,000 $4,000
Increase in the on-time performance rate = 95% - 80% = 15%
Increase in annual Revenue = $10,000 * 15 = $150,000
Savings from lost or damaged packages = 8,000 ($12,000 - $4,000)
Total savings from new technology = $158,000
Annual cost of new technology = (80,000)
Net savings from new technology = $78,000
Contribution margin based on net savings = $78,000/$80,000 * 100 = 97.5%
Average contribution margin = 40%
Question 7 of 10
Your company emphasizes the important of conserving (not wasting)
resources. How can you support that value when you print an 8-page report
you were asked to bring to your department's monthly meeting?
A. Use the Print option for two-sided printing.
B. Post the report online before printing it.
C. Use the Print option to create extra copies.
D. Use the Save option to choose a format readers can open.
SUBMIT
Answer:
A. Use the Print option for two-sided printing.
I'd choose A, although I don't really understand what option D means..
WESTON ENTERPRISES 2014 and 2015 Partial Balance Sheets Assets Liabilities and Owners’ Equity 2014 2015 2014 2015 Current assets $ 950 $ 1,016 Current liabilities $ 385 $ 416 Net fixed assets 3,967 4,608 Long-term debt 2,035 2,207 WESTON ENTERPRISES 2015 Income Statement Sales $ 12,530 Costs 5,990 Depreciation 1,080 Interest paid 200 a. What is owners' equity for 2014 and 2015?
Answer:
Missing word "b. What was the change in net working capital for 2014"
a. 2013 2014
Total assets 950+3967 = $4917 1016+4608 = $5624
Total liability 385+2035 = $2420 416+2207 = $2623
Equity $2497 $3001
b.Working capital = Current asset - Current liability
2014 Working capital = 1016 - 416
2014 Working capital = $600
2013 Working capital = 950-385
2013 Working capital = $565
Change in NWC = $600 - $565
Change in NWC = $35
Find the EAR in each of the following cases: Stated Rate (APR) Number of Times Compounded Effective Rate (EAR) 7% Quarterly 17 Monthly 13 Daily 10 infinite
Answer:
7.19
18.39
13,88
10.51%
Explanation:
EAR = (1 + periodic interest rate)^m - 1
m = number of compounding
a. ( 1 + 0.07/4)^4 - 1 = 7.19%
b. (1 + 0.17/12)^12 - 1 = 18.39%
c. (1 + 0.13/365)^365 - 1 = 13.88%
d. EAR =
Problem 3-3 (Algo) A dry cleaner uses exponential smoothing to forecast equipment usage at its main plant. August usage was forecasted to be 46 percent of capacity; actual usage was 52 percent of capacity. A smoothing constant of .10 is used. a. Prepare a forecast for September. (Round your final answer to 2 decimal places.) b. Assuming actual September usage of 53 percent, prepare a forecast for October usage. (Round your answer to 2 decimal places.)
Answer:
A.Forecast for September=46.9
B. Forecast for October usage=47.51
Explanation:
a) preparation of the forecast for September
Forecast for September= 46 + .10 (52 − 43)
Forecast for September=46+.10(9)
Forecast for September=46+0.9
Forecast for September=46.9
Therefore Forecast for September will be 46.9
b) Preparation of the forecast for October usage
Forecast for October usage=46.9 + .10 (53-46.9)
Forecast for October usage=46.9+.10(6.1)
Forecast for October usage=46.9+0.61
Forecast for October usage=47.51
Therefore Forecast for October usage will be 47.51
Prepaid rent for three months, $3,600. May 5 Received and paid electricity bill, $900. May 9 Received cash for meals served to customers, $2,000. May 14 Paid cash for kitchen equipment, $3,120. May 23 Served a banquet on account, $3,200. May 31 Made the adjusting entry for rent (from May 1). May 31 Accrued salary expense, $1,800. May 31 Recorded depreciation for May on kitchen equipment, $52
Klingon Cruisers, Inc., purchased new cloaking machinery three years ago for $12 million. The machinery can be sold to the Romulans today for $10.8 million. Klingon's current balance sheet shows net fixed assets of $10 million, current liabilities of $830,000, long-term debt of $5 million and net working capital of $248,000. If all the current accounts were liquidated today, the company would receive $1.15 million cash. What is the book value of Klingon's equity?
a. $5,248,000.00.
b. $11,078,000.00.
c. $5,000,000.00.
d. $22,800,000.00.
e. $12,000,000.00.
Answer:
a. $5,248,000.00.
Explanation:
Calculation for the book value of Klingon's equity
Book value = $248,000 + $5,000,000
Book value = $5,248,0000
Therefore the book value of Klingon's equity will be $5,248,0000
Slapshot Company makes ice hockey sticks and sold 1,890 sticks during the month of June at a total cost of $378,000. Each stick sold at a price of $360. Slapshot also incurred two types of selling costs: commissions equal to 10% of the sales price and other selling expense of $64,700. Administrative expense totaled $53,800.
Required:
Prepare an income statement for Slapshot for the month of June
Answer:
Slapshot Company
Income statement for the month of June
Sales ( 1,890 x $360) $680,400
Less Costs of Sales ($378,000)
Gross Profit $302,400
Selling Costs :
Commissions $68,040
Other Selling Expense $64,700
Administrative Expense $53,800 ($186,540)
Net Income $115,860
Explanation:
The Income statement shows the Profit earned during the reporting period. This is determined as Gross Profit (Sales - Cost of Sales) minus the Operating Expenses.
Presented below is information related to Swifty Corporation.
Oct. 1 Diane Lexington begins business as a real estate agent with a cash investment of $21,688 in exchange for common stock.
2 Hires an administrative assistant.
3 Purchases office furniture for $2,494, on account.
6 Sells a house and lot for N. Fennig; bills N. Fennig $3,904 for realty services performed.
27 Pays $922 on the balance related to the transaction of October 3.
30 Pays the administrative assistant $2,711 in salary for October.
Date Account Titles Ref. Debit Credit
Oct. 1
2
3
6
27
30
Answer:
1) Oct 1
Dr Cash $21,688
Cr Common stock $21,688
2. No entry
3. Oct 3
Dr Cost of real estate service $2,494
Cr Accounts payable $2,494
4. Oct 1
Dr Accounts receivable $3,904
Cr Reality service revenue $3,904
5. Oct 27
Dr Accounts payable $922
Cr Cash $922
6. Oct 30
Dr Cost of real estate service $2,711
Cr Cash $2,711
Explanation:
Preparation of the debit-credit analysis for each transaction.
1) Oct 1
Dr Cash $21,688
Cr Common stock $21,688
[Being to record Issued common stock to properties]
2. No entry
3. Oct 3
Dr Cost of real estate service $2,494
Cr Accounts payable $2,494
[Being to record Purchased on account office furniture]
4. Oct 1
Dr Accounts receivable $3,904
Cr Reality service revenue $3,904
[Being to record Sold reality estate and bill raised]
5. Oct 27
Dr Accounts payable $922
Cr Cash $922
[Being to record paid dues of Oct 3 in part]
6. Oct 30
Dr Cost of real estate service $2,711
Cr Cash $2,711
[Being to record Salary paid to administrative staff]
Zeitler's Department Stores sells its products online and through traditional brick-and-mortar stores. The following parallel coordinates plot displays data from a sample of 20 customers who purchased clothing from Zeitler's either online or in-store. The data include variables for the customer's age, annual income, and the distance from the customer's home to the nearest Zeitler's store. According to the parallel coordinates plot, how are online customers differentiated from in-store customers?
Question Completion:
Choose the correct answer below
(1) in-store customers appear to be middle aged, have higher annual income and live further distance away from a store
(2) in-store customers appear to be generally younger, have lower annual income and live near a store
(3) Online customers appear to be generally younger, have higher annual income and live further distance away from a store
(4) Online customers appear to be middle aged, have lower annual income and live near a store
Answer:
Zeitler's Department Stores
Online and In-store Customers:
According to the parallel coordinates plot, online customers are differentiated from in-store customers in the following ways:
(3) Online customers appear to be generally younger, have higher annual income and live further distance away from a store
Explanation:
Younger persons tend to embrace technology more than their older counterparts. Based on this, they also engage on online purchasing of goods and services instead of visiting the traditional brick-and-mortar stores. With online purchase, a customer is in better control because she can search for the best deals from any location.
Based on Jacobs (1954). The Carter Caterer Company must have the following number of clean napkins available at the beginning of each of the next four days: day 1, 1500; day 2, 1200; day 3, 1800; day 4, 600. After being used, a napkin can be cleaned by one of two methods: fast service or slow service. Fast service costs 50 cents per napkin, and a napkin cleaned via fast service is available for use the day after it is last used. Slow service costs 30 cents per napkin, and these napkins can be reused two days after they are last used. New napkins can be purchased for a cost of 95 cents per napkin. Determine how to minimize the cost of meeting the demand for napkins during the next four days. (Note: There are at least two possible modeling approaches, one network and one nonnetwork. See if you can model it each way.)
TB MC Qu. 03-111 A manufacturer of cedar shingles...
A manufacturer of cedar shingles has supplied the following data:
Bundles of cedar shakes produced and sold 262,000
Sales revenue $ 2,122,200
Variable manufacturing expense $ 975,200
Fixed manufacturing expense $ 487,000
Variable selling and administrative expense $ 260,400
Fixed selling and administrative expense $ 276,000
Net operating income $ 123,600"
The company's contribution margin ratio is closest to:__________ (Do not round Intermediate calculations. Round your answer to whole percentage)
a) 42%
b) 34%
c) 66%
d) 58%
Answer:
A. 42%
Explanation:
Given the above information,
Contribution margin ratio = (Selling price - Unitary variable cost) / Selling price
Selling price = $2,122,200 / 262,000 = $8.1
Total variable cost = Variable manufacturing expense $975,200 + Variable selling and administrative expense $260,400 = $1,235,600
Unitary variable cost = $1,235,600 / 262,000 = $4.72
Contribution margin ratio = (8.1 - 4.72)/8.1 = 41.73% = 42%
a. Performed $29,400 of services on account.
b. Collected $17,500 cash on accounts receivable.
c. Paid $4,400 cash in advance for an insurance policy.
d. Paid $570 on accounts payable.
e. Recorded the adjusting entry to recognize $3,700 of insurance expense.
f. Recorded the adjusting entry to recognize $300 accrued interest revenue.
g. Received $9,500 cash for services to be performed at a later date.
h. Purchased land for $1,560 cash.
i. Purchased supplies for $1,800 cash.
Required:
Record each of the above transactions in general journal form and then show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Transaction Account Titles Debit Credit
a Accounts receivable 29,400
Service revenue 29,400
Show the effect of the transaction in a horizontal statements model. The first transaction is shown as an example. (In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. Enter any decreases to account balances with a minus sign.)
Answer:
S/n Account Titles Debit$ Credit$
a. Accounts receivable 29400
Service revenue 29400
b. Cash 17500
Accounts receivable 17500
c. Prepaid insurance 4400
Cash 4400
d. Accounts payable 570
Cash 570
e. Insurance expense 3700
Prepaid insurance 3700
f. Interest receivable 300
Interest revenue 300
g. Cash 9500
Unearned service revenue 9500
h. Land 1560
Cash 1560
i. Supplies 1800
Cash 1800
Asset Liabilities Equity Revenue Expense Net income S.Cash Flow
a. 29400 29400 29400 29400 NA
b. 17500 OA
-17500
c. 4400 OA
-4400
d. -570 -570 OA
e. -3700 -3700 3700 -3700 NA
f. 300 300 300 300 NA
g. 9500 9500 OA
h. 1560 IA
-1560
i. 1800 OA
-1800