Answer: November 2007
Explanation:
The SEC came to a conclusion to remove the requirement that restricted foreign private issues from using IFRS from reconciling their financial statement to the U.S GAAP. The reason for this move was because the SEC recognizes IFRS having high quality set of accounting rules which they believe is capable of ensuring adequate disclosure for the protection of investors. This was their reason for the allowance
This information relates to Novak Real Estate Agency.
Oct. 1 Stockholders invest $33,600 in exchange for common stock of the corporation.
2 Hires an administrative assistant at an annual salary of $36,480.
3 Buys office furniture for $3,780, on account.
6 Sells a house and lot for E. C. Roads; commissions due from Roads, $12,290 (not paid by Roads at this time).
10 Receives cash of $145 as commission for acting as rental agent renting an apartment.
27 Pays $670 on account for the office furniture purchased on October 3.
30 Pays the administrative assistant $3,040 in salary for October.
Jounalize the transactions. ( no entry is required, select "No entry" for the account titles and enter 0 for the amounts amount is entered. Do not indent manually, Record journal entries in the order presented in the problem.
Answer:
She journal entry below
Explanation:
Oct 1. Cash. DR $33,600
To Common stock $33,600
(Being cash received in exchange of common stock that is recorded
Oct 2. No journal entry is required
Oct 3. Equipment Dr $3,780
To Accounts payable $3,780
(Being equipment that is recorded)
Oct 6. Accounts receivables $12,290
To Service revenue. $12,290
(Being service revenue that is recorded)
Oct 10. Cash Dr. $145
To service revenue $145
(Being cash that is recorded)
Oct 27. Accounts payable Dr $670
To cash. Cr $670
(Being accounts payable that is recorded)
Oct 30. Salaries and wages Dr $3,040
To Cash. $3,040
(Being salaries and wages that is recorded)
All of the following are positive outcomes of employee development except: Group of answer choices development enhances the organization's capacity to control environmental forces. development increases the chances that the most capable employees will be attracted to work in the organization. development enhances retention. development ensures that employees have the knowledge and skill to effectively perform in the future.
Answer:
development enhances the organization's capacity to control environmental forces
Explanation:
Employee development can be described as when an employer takes certain certain steps to increase the skills, competences and knowledge of the employees.
Employee development can take the form of :
trainingsMentorshipsOn the job trainingconferencesjob rotationsAdvantages of employee development includes :
It reduces employee turnoverIt increases the skills of employeeIt increases the efficiency of employeesAs the video showed, there are many people who are so concerned about the viability of banks, and indeed the entire financial system, that they are buying gold and silver coins instead of trusting their money to banks. However, the government provides protection from having bank accounts wiped out as they were during the Great Depression. The _____________ is an independent agency of the U.S. government that insures bank deposits (up to $250,000).
Your firm expects sales of $672,500 next year. The profit margin is 4.6 percent and the firm has a dividend payout ratio of 15 percent. What is the projected increase in retained earnings
Answer:
$26,294.8
Explanation:
Total expects sales at Next years = $672,500
The profit margin =4.6 percent
For the profit margin of expects sales at Next years= (4.6/100 ×$672,500)
= $30,935
dividend payout ratio =15 percent
distributed dividends= (15/100× $30,935)
= $26,294.75
the projected increase in retained earnings= difference between the profit margin of expects sales at Next years and distributed dividends
= ($30,935 - $4,640.25)
= $26,294.8
Firms use economic analyses to better understand the overall outlook for the economy and how economic changes will impact the firm.
a. True
b. False
Answer:
True.
Explanation:
It is a true statement.
The firm economic result that is, financial performance depends upon various factors that includes external forces also.
Further, to remain in industry ( or for stable growth ), the firm have to synchronize their activities with the environment.
The question specifies economic environment that relatively impact the firm. So , this statement is true.
A person who is an entrepreneur is also a businessperson. true or false?
Answer:
False
Explanation:
A person who brings his unique idea to run a startup company is known as an entrepreneur. A businessman is a person who starts a business on an old concept or idea. The businessman is a market player while Entrepreneur is a market leader because he is the first to start such a kind of enterprise.
Required information SB Exercise 6-14 through Exercise 6-15 (Static) Skip to question [The following information applies to the questions displayed below.] Chuck Wagon Grills, Inc., makes a single product—a handmade specialty barbecue grill that it sells for $210. Data for last year’s operations follow: Units in beginning inventory 0 Units produced 20,000 Units sold 19,000 Units in ending inventory 1,000 Variable costs per unit: Direct materials $ 50 Direct labor 80 Variable manufacturing overhead 20 Variable selling and administrative 10 Total variable cost per unit $ 160 Fixed costs: Fixed manufacturing overhead $ 700,000 Fixed selling and administrative 285,000 Total fixed costs $ 985,000 Exercise 6-15 (Static) Absorption Costing Unit Product Cost and Income Statement [LO6–1, LO6–2]
Required:
1. Assume that the company uses absorption costing. Compute the unit product cost for one barbecue grill.
2. Assume that the company uses absorption costing. Prepare an income statement for last year.
Answer:
Results are below.
Explanation:
The absorption costing method includes all costs related to production, both fixed and variable. The unit product cost is calculated using direct material, direct labor, and total unitary manufacturing overhead.
First, we need to calculate the unitary cost under absorption costing:
Unitary varaible production cost= 50 + 80 + 20= $150
Unitary fixed cost= 700,000/20,000= $35
Total unitary cost= $185
Now, we the income statement:
Sales= 19,000*210= 3,990,000
COGS= (19,000*185)= (3,515,000)
Gross profit= 475,000
Total selling and administrative= (285,000 + 10*19,000)= (475,000)
Net operating income= 0
the liability created when supplies are bought on account is called an account payable ,true or false
Answer:
True.
Explanation:
In Financial accounting, liability can be defined as the amount of money being owed by an individual or organization to another.
Simply stated, liability is a debt being owed and as such it usually has "payable" in its account title on the balance sheet.
Generally, liabilities are recorded on the right side of the balance sheet and it comprises of financial informations such as warranties, bonds, loans, deferred revenues, mortgages, account payable etc.
Current liability in financial accounting can be defined as the short-term financial obligation such as debt (account payable) that is due to be paid in cash within one (fiscal) year or one operating cycle of a company, whichever is longer.
A company's current liability comprises of the following; dividends payable, short-term debts, account payable, notes payable, interest payable, wages payable, deferred revenues, income tax payable, etc.
Basically, companies usually settles their current liabilities with current assets such as account receivables or cash, that are used up within a fiscal year.
Hence, the liability created when supplies are bought on account is called an account payable.
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The most recent financial statements for Alexander Co. are shown here: Income Statement Balance Sheet Sales $ 43,700 Current assets $ 17,980 Long-term debt $ 37,320 Costs 35,800 Fixed assets 68,600 Equity 49,260 Taxable income $ 7,900 Total $ 86,580 Total $ 86,580 Taxes (21%) 1,659 Net income $ 6,241 Assets and costs are proportional to sales. The company maintains a constant 45 percent dividend payout ratio and a constant debt-equity ratio. What is the maximum dollar increase in sales that can be sustained assuming no new equity is issued
1. XYZ Co. incurred the following costs related to the office building used in operating its sports supply company: a. Replaced a broken window. b. Replaced the roof that had been on the building 23 years. c. Serviced all the air conditioners before summer started. d. Replaced the air conditioners with refrigerated air conditioners in the customer service areas. e. Added a warehouse to the back of the building. f. Repaint the interior walls. g. Installed window shutters on all windows. Classify each of the costs as a capital expenditure or a revenue expenditure. For those costs identified as capital expenditures, classify each as an additional or replacement component.
Answer:
2,4,5,7
Explanation:
Moby Enterprises reports the following information for 2019. ($ numbers are totals for 2019, not per unit) Selling price per unit $800 Beginning and ending balances of Work in Process Inventory 0 Beginning balance of Finished Goods Inventory (50 units) $28,750 Units produced 90 Units sold 100 Direct material used (variable) $12,000 Direct labor used (variable) $28,000 Manufacturing overhead (variable) $4,550 Manufacturing overhead (fixed) $10,800 Selling and admn. expenses: sales commission (variable) $4,000 fixed $10,000 Notes: Moby uses FIFO for maintaining its finished goods inventory account. The Beginning Finished Goods Inventory balance of $28,750 consists of $24,250 in variable manufacturing costs and $4,500 of fixed manufacturing overhead. REQUIRED: Part 1. Compute the following for 2019 using absorption costing: a. Total Manufacturing Costs b. Cost-of-Goods-Manufactured c. Per unit cost of production d. Ending balance of Finished Goods Inventory (in units and dollars) e. Cost-of-goods sold f. Gross Margin g. Net Income Part 2. Identify clearly how the fixed manufacturing overhead (both that in the opening inventory and that incurred in 2019) has moved.
Answer:
Moby Enterprises
Part 1:
a. Total Manufacturing Costs:
Direct material used (variable) $12,000
Direct labor used (variable) $28,000
Manufacturing overhead (variable) $4,550
Manufacturing overhead (fixed) $10,800
Total manufacturing costs = $55,350
b. Cost-of-Goods-Manufactured:
Total manufacturing costs = $55,350
c. Per unit cost of production = $55,350/90 = $615
d. Ending balance of Finished Goods Inventory (in units and dollars)
Beginning inventory of finished goods = 50
Plus units produced 90
Less units sold (100)
Ending inventory of finished goods = 40 units
Cost of ending inventory of finished goods = $24,600 (40 * $615)
e. Cost-of-goods sold:
Beginning Finished Goods Inventory $28,750
Cost of goods manufactured 55,350
Less Ending Finished goods inventory (24,600)
Cost of goods sold = $59,500
f. Gross Margin:
Revenue ($800 * 100) = $80,000
Cost of goods sold = (59,500)
Gross Margin = $20,500
g. Net Income:
Gross Margin $20,500
Less expenses (14,000)
Net income = $6,500
Part 2. Identify clearly how the fixed manufacturing overhead (both that in the opening inventory and that incurred in 2019) has moved.
Fixed manufacturing overhead in Beginning Inventory = $4,500
= $90 per unit ($4,500/50)
Fixed manufacturing overhead in current period = $10,800
= $120 per unit ($10,800/90)
This shows that the per unit cost of fixed manufacturing overhead has increased from $90 to $120.
Explanation:
a) Data and Calculations:
Selling price per unit $800
Beginning and ending balances of Work in Process Inventory 0
Beginning balance of Finished Goods Inventory (50 units) $28,750
$24,250 in variable manufacturing costs and $4,500 of fixed manufacturing overhead
Units produced 90
Units sold 100
Ending Finished Goods Inventory = 40 units (50 + 90 = 100)
Direct material used (variable) $12,000
Direct labor used (variable) $28,000
Manufacturing overhead (variable) $4,550
Manufacturing overhead (fixed) $10,800
Selling and admin. expenses:
sales commission (variable) $4,000
fixed $10,000
Give account of the political argument against outsourcing practiced by US firms.
Answer:
The political argument against outsourcing practiced by U.S. firms can be summarized in three arguments:
Explanation:
The trade balance argument: this factor is both economic and political, and those who agree with it argue that outsourcing contributes to the decline of American exports while raising the amount of imports at the same time, since those goods and services produced abroad by outsourcing have to be imported to the U.S. if they are to be consumed by American consumeres.
The American worker argument: outsourcing creates a job loss in the U.S. that affects American workers, specially those without a tertiary education. Those who agree with this argument state that outsourcing increases economic inequality, urban decay, rates of mental disease and drug use, and so on.
The national security argument: this argument applies to specific industries like the weapon industry or pharmaceutical. Supporters of this argument say that there are several industries and economic sectors that should not be outsourced on the basis of national security.
Quality Ceramic, Inc. (QCI) defined five submarkets within its broad product-market. To obtain some economies of scale, QCI decided not to offer each of the submarkets a different marketing mix. Instead, it selected two submarkets whose needs are fairly similar, and is counting on promotion and minor product differences to make its one basic marketing mix appeal to both submarkets. QCI is using the
Answer:
combined target market approach
Explanation:
When a company engages in a combined target market approach, it segregates potential markets into pairs or small groups which share similarities and then offers their products or services to them. The marketing mix will be similar for all the small segments that are within the larger group.
Riverbed Corp provides security services. Selected transactions for Riverbed Corp are presented below. Oct. 1 Issued common stock in exchange for $67,300 cash from investors. 2 Hired part-time security consultant. Salary will be $2,000 per month. First day of work will be October 15. 4 Paid 1 month of rent for building for $2,000. 7 Purchased equipment for $18,400, paying $4,100 cash and the balance on account. 8 Paid $500 for advertising. 10 Received bill for equipment repair cost of $400. 12 Provided security services for event for $3,300 on account. 16 Purchased supplies for $420 on account. 21 Paid balance due from October 7 purchase of equipment. 24 Received and paid utility bill for $151. 27 Received payment from customer for October 12 services performed. 31 Paid employee salaries and wages of $5,200.
Date Account Titles and Explanation Debit Credit 1 Cash 67,300 Common Stock 67,30 2 No Entry No Entry Rent Expense 2.000 Cash 2.06 Equipment 18,400 Cash 4.10 Accounts Payable 1436 Advertising Expense 1,700 Cash 1.70 10 Maintenance and Repairs Expense 420 Accounts Payable 42 12 Accounts Receivable 3.300 Service Revenue 3,30 16 Supplies 420 Accounts Payable 21 V Accounts Payable 14300 Cash 1434 24 Utilities Expense 151 Cash 15 27 Cash 3,300 Accounts Receivable 3.30 31 > Salaries and Wages Expense 5.200 Cash 5.26 Post the transactions to accounts. (Post entries in the order of journal entries presented in the previous port. For accounts with zero balance select "Balance from the list and enter or leave it blank) Cash < < < < Accounts Receivable Supplies Equipment < Accounts Payable < Common Stock Accounts Payable < Common Stock Service Revenue Advertising Expense Salaries and Wages Expense Maintenance & Repairs Expense V Rent Expense < Utilities Expense <
Answer:
Oct.1
Dr Cash $67,300
Cr Common stock $67,300
Oct.2 No Entry
Oct.4
Dr Rent expense $2,000
Cr Cash $2,000
Oct.7
Dr Equipment $18,400
Cr Cash $4100
Cr Accounts payable $14,300
Oct.8
Do Advertising expense $500
Cr Cash $500
Oct.10
Dr Repair expense $400
Cr Accounts payable $400
Oct.12
Dr Accounts receivable $3,300
Cr Service revenue $3,300
Oct.16
Dr Supplies $420
Cr Accounts payable $420
[Being To record purchase of supplies on account]
Oct.21
Dr Accounts payable $14,300
Cr Cash $14,300
($18,400-$4,100)
Oct.24
Dr Utilities expense $151
Cr Cash $151
Oct.27
Dr Cash $3,300
Cr Accounts receivable $3,300
Oct.31
Dr Salaries and wages expense $5,200
Cr Cash $5,200
Explanation:
Preparation of journal entries
Oct.1
Dr Cash $67,300
Cr Common stock $67,300
[Being To record investment in business]
Oct.2 No Entry
Oct.4
Dr Rent expense $2,000
Cr Cash $2,000
[Being To record payment of rent]
Oct.7
Dr Equipment $18,400
Cr Cash $4100
Cr Accounts payable $14,300
($18,400-$4,100)
[BeingTo record purchase of equipment]
Oct.8
Do Advertising expense $500
Cr Cash $500
[Being To record payment of advertising expense]
Oct.10
Dr Repair expense $400
Cr Accounts payable $400
[Being To record repair expense]
Oct.12
Dr Accounts receivable $3,300
Cr Service revenue $3,300
[Being To record services performed on account]
Oct.16
Dr Supplies $420
Cr Accounts payable $420
[Being To record purchase of supplies on account]
Oct.21
Dr Accounts payable $14,300
Cr Cash $14,300
($18,400-$4,100)
[Being To record cash paid for accounts payable]
Oct.24
Dr Utilities expense $151
Cr Cash $151
[Being To record payment of utilities]
Oct.27
Dr Cash $3,300
Cr Accounts receivable $3,300
[Being To record collections from customers]
Oct.31
Dr Salaries and wages expense $5,200
Cr Cash $5,200
[Being To record payment of salaries and wages expense]
Abbott Company uses the allowance method of accounting for uncollectible accounts. Abbott estimates that 3% of net credit sales will be uncollectible. On January 1, theAllowance for Doubtful Accounts had a credit balance of $2,400. During the year, Abbott wrote off accounts receivable totaling $1,800 and made credit sales of $100,000.There were no sales returns or sales discounts during the year. After the adjusting entry, the December 31, balance in the Bad Debt Expense will be:________.
a. $1,200
b. $3,000
c. $3,600
d. $7,200
Answer:
b. $3,000
Explanation:
According to the above information, the following data are given
Credit sales = $100,000
Uncollectible percentage = 3%
So, after the adjustment by using allowance method, Bad debt expense can be calculated as;
Bad debt expense = Credit sales × Uncollectible percentage
= $100,000 × 3%
= $3,000
Your restaurant plans to spend $1,000 on social media ads. Your average meal sells for $10 and food cost is 30%. How
many additional meals do you need to sell to breakeven on your advertising?
Ignore all
other restaurant costs except food cost
a) 100 meals
b) 132 meals
c) 143 meals
d) 1000 meals
Answer:
c) 143 meals
Explanation:
30% of 10 is 3
10-3=7
1000/7=142.857143
round up.
The following events apply to Kate Enterprises:______.
Collected $16,200 cash for services to be performed in the future. Acquired $50,000 cash from the issue of common stock. Paid salaries to employees: $3,500 cash. Paid cash to rent office space for the next 12 months: $12,000. Paid cash of $17,500 for other operating expenses. Paid on accounts payable: $1,752. Paid cash for utilities expense: $804. Recognized $45,000 of service revenue on account. Paid a $2,500 cash dividend to the stockholders. Purchased $3,200 of supplies on account. Received $12,500 cash for services rendered. Recognized $5,200 of accrued salaries expense. Recognized $3,000 of rent expense. Cash had been paid in a prior transaction (see Event 4). Recognized $5,000 of revenue for services performed. Cash had been previously collected (see Event 1).
Required:
Identify each event as asset source (AS), asset use (AU), asset exchange (AE), or claims exchange (CE). Also identify the account that is to be debited and the account that is to be credited when the transaction is recorded.
Event No. Type of Event Account Debited Account Credited
1 AS Cash Common Stock
The first event is recorded as an example.
Answer:
Kate Enterprises
Event No. Type of Event Account Debited Account Credited
1 AS Cash Common Stock
2. AS Cash Service Revenue
3. AU Salaries Expense Cash
4. AE Prepaid Rent Cash
5. AU Other operating exp. Cash
6. AU Accounts payable Cash
7. AU Utilities Expense Cash
8. AS Accounts Receivable Service Revenue
9. AU Dividends Cash
10. AS Supplies Accounts Payable
11. AS Cash Service Revenue
12. AE Salaries Expense Salaries Payable
13. AE Rent Expense Rent Payable
14. AE Unearned revenue Earned Revenue
Explanation:
Asset source (AS) = increases an asset and a claim on the asset
Asset use (AU) = decreases an asset and a claim on the asset
Asset exchange (AE) = does not change the value of assets or claims
Claims exchange (CE) = decreases one claim account and decreases another.
Melinda is excited about working on her financial plan. She has taken the time to look at all of her current resources, accounts, and investments. She also has identified some short- and long-term financial goals. What should Melinda do NEXT to continue her steps in the financial planning process?
Answer:
Melinda should save and invest for the short term as well as long term goal as she planned.
Explanation:
Financial planning is very important for a stable future in terms of finance and monetary matters. Financial planning may be defined as the process that will reduce the stress about the finances, helps to support the current needs. It also helps to build or save money for a long term goal. Financial planning is very important as it allows one to make the most use of one's assets, and also ensures one to meet their future goals.
In the context, Melinda is making a financial plan. She had looked over all her her current resources and investments and also made some long term and short term goal which will help her better plan for the future.
Once Melinda had identified her goal, she needs to act on it as soon as possible and contribute or save some money according to the plans. She should invest in the plans in order to support her long term goals.
Answer:
its A decide what her biggest financial risks are\
Explanation:
Tunstall, Inc., a small service company, keeps its records without the help of an accountant. After much effort, an outside accountant prepared the following unadjusted trial balance as of the end of the annual accounting period on December 31: Account Titles Debit Credit Cash $ 42,000 Accounts receivable 11,600 Supplies 900 Prepaid insurance 800 Service trucks 19,000 Accumulated depreciation $ 9,200 Other assets 8,300 Accounts payable 3,000 Wages payable Income taxes payable Note payable (3 years; 10% interest due each December 31) 17,000 Common stock (5,000 shares outstanding) 400 Additional paid-in capital 19,000 Retained earnings 6,000 Service revenue 61,360 Remaining expenses (not detailed; excludes income tax) 33,360 Income tax expense Totals $ 115,960 $ 115,960 Data not yet recorded at December 31 included: The supplies count on December 31 reflected $300 in remaining supplies on hand to be used in the next year. Insurance expired during the current year, $800. Depreciation expense for the current year, $3,700. Wages earned by employees not yet paid on December 3, $640. Income tax expense, $5,540.
Data not yet recorded at December 31 included:_____.
The supplies count on December 31 reflected $300 in remaining supplies on hand to be used in the next year.
Insurance expired during the current year, $800.
Depreciation expense for the current year, $3,700.
Wages earned by employees not yet paid on December 3, $640.
Income tax expense, $5,540.
Problem: Prepare an income statement and a classified balance sheet that include the effects of the preceding five transactions.
Answer:
try your best and try hard don't matter what
Affordable Lawn Care, Inc., provides lawn mowing services to both commercial and residential customers. The company performs adjusting entries on a monthly basis, whereas closing entries are prepared annually at December 31. An adjusted trial balance dated December, current year follows
Affordable Lawn Care, Inc.
Adjusted Trial Balance
December 31, current year
Debit Credits
Cash…………………………………………… $117,050
Accounts receivable……………………………. 9,600
Unexpired insurance…………………………. 16,000
Prepaid rent………………………………………. . 6,000
Supplies………………………………………….. 2,150
Trucks…………………………………………… 300,000
Accumulated depreciation: truck $240,000
Mowing equipment………………………. 40,000
Accumulated depreciation: mowing equipment 24,000
Accounts payables……………………………. 3,000
Notes payables………………………….................................................... 100,000
Salaries payables……............................................................................. 1,800
Interest payables…………………............................................................ 300
Income taxes payables........................................................................ 2,100
Unearned mowing revenue……........................................................ 1,800
Capital Stock............................................................................................. 40,000
Retained earnings…… ........................................................................... 60,000
Dividends……………………… 10,000
Mowing revenue earned………………..................................................... 340,000
Insurance expense………………. 4,800
Office rent expense………………….. 72,000
Supplies expense…………………….. 10,400
Salary expense………………………….. 120,000
Depreciation expense: truck……….. 60,000
Depreciation expense: mowing equipment 8,000
Repair and maintenance expense………. 6,000
Fuel expense………………………………… 3,000
Miscellaneous expense………………… 10,000
Interest expense……………………………. 6,000
Income taxes expense……………….. 12,000
$813,000 $813,000
1. Prepare an income statement and statement of retained earnings for the year ended December 31, current year. Also prepare the company’s balance sheet dated December 31, current year
2. Prepare the necessary year end closing entries
3. Prepare an after closing trial balance
4. Using the financial statement prepared in part a, briefly evaluate the company’s profitability and liquidity
Answer:
Affordable Lawn Care, Inc.
1. Income Statement for the year ended December 31,
Mowing revenue earned $340,000
Insurance expense $4,800
Office rent expense 72,000
Supplies expense 10,400
Salary expense 120,000
Depreciation expense: truck 60,000
Depreciation expense: mowing equipment 8,000
Repair and maintenance expense 6,000
Fuel expense 3,000
Miscellaneous expense 10,000
Total operating expenses $294,200
Operating income $45,800
Interest expense 6,000
Income before taxes $39,800
Income taxes expense 12,000
Income after taxes $27,800
Statement of Retained Earnings for the year ended December 31,
Retained earnings $60,000
Income after taxes 27,800
Dividends 10,000
Retained earnings, December 31 $77,800
Balance Sheet as of December 31
Assets
Current Assets:
Cash $117,050
Accounts receivable 9,600
Unexpired insurance 16,000
Prepaid rent 6,000
Supplies 2,150
Total current assets $150,800
Long-term assets:
Trucks 300,000
Accumulated depreciation: truck 240,000 60,000
Mowing equipment 40,000
Accumulated depreciation:mowing 24,000 16,000
Total long-term assets $76,000
Total assets $226,800
Liabilities + Equity
Liabilities:
Accounts payables $3,000
Notes payables 100,000
Salaries payables 1,800
Interest payables 300
Income taxes payables 2,100
Unearned mowing revenue 1,800
Total liabilities $109,000
Equity:
Capital Stock $40,000
Retained earnings 77,800
Total Equity 117,800 $117,800
Total liabilities and equity $226,800
2. Closing Journal Entries:
Debit Credits
Cash $117,050
Accounts receivable 9,600
Unexpired insurance 16,000
Prepaid rent 6,000
Supplies 2,150
Trucks 300,000
Accumulated depreciation: truck $240,000
Mowing equipment 40,000
Accumulated depreciation: mowing equipment 24,000
Accounts payables 3,000
Notes payables 100,000
Salaries payables 1,800
Interest payables 300
Income taxes payables 2,100
Unearned mowing revenue 1,800
Capital Stock 40,000
Retained earnings 77,800
To close the permanent accounts to the current financial period.
3. After Closing Trial Balance as of January 1:
Debit Credits
Cash $117,050
Accounts receivable 9,600
Unexpired insurance 16,000
Prepaid rent 6,000
Supplies 2,150
Trucks 300,000
Accumulated depreciation: truck $240,000
Mowing equipment 40,000
Accumulated depreciation: mowing equipment 24,000
Accounts payables 3,000
Notes payables 100,000
Salaries payables 1,800
Interest payables 300
Income taxes payables 2,100
Unearned mowing revenue 1,800
Capital Stock 40,000
Retained earnings 77,800
Totals $490,800 $490,800
4. Evaluation of company's profitability and liquidity:
Profitability:
Net Income Margin = 8.18%
Operating margin = 13.47%
These two ratios show that more than 5% of the company's revenue was spent on interest and taxes.
Liquidity:
Current Ratio = 1.38
Quick Ratio = 1.07
The company is liquid and can meet its current maturing liabilities with its current assets. The quick ratio is based on Cash only given the nature of the business.
Explanation:
a) Data and Calculations:
Affordable Lawn Care, Inc.
Adjusted Trial Balance
December 31, current year
Debit Credits
Cash $117,050
Accounts receivable 9,600
Unexpired insurance 16,000
Prepaid rent 6,000
Supplies 2,150
Trucks 300,000
Accumulated depreciation: truck $240,000
Mowing equipment 40,000
Accumulated depreciation: mowing equipment 24,000
Accounts payables 3,000
Notes payables 100,000
Salaries payables 1,800
Interest payables 300
Income taxes payables 2,100
Unearned mowing revenue 1,800
Capital Stock 40,000
Retained earnings 60,000
Dividends 10,000
Mowing revenue earned 340,000
Insurance expense 4,800
Office rent expense 72,000
Supplies expense 10,400
Salary expense 120,000
Depreciation expense: truck 60,000
Depreciation expense: mowing equipment 8,000
Repair and maintenance expense 6,000
Fuel expense 3,000
Miscellaneous expense 10,000
Interest expense 6,000
Income taxes expense 12,000
Totals $813,000 $813,000
b) Profitability and Liquidity Ratios:
Profitability:
Net Profit Margin = Net Income/Revenue * 100 = 27,800/340,000 * 100 = 8.18%
Operating Profit Margin = Operating Income/Revenue * 100 = 45,800/340,000 * 100 = 13.47%
Liquidity Ratios:
Current ratio = Current Assets/Current Liabilities = 150,800/109,000 = 1.38
Quick Ratio = Cash/Current Liabilities = 117,050/109,000 = 1.07
Affordable Lawn Care, Inc.
Answer 1:
Income Statement for the year ended December 31,
Dr. Cr.
Mowing revenue earned $340,000
Insurance expense $4,800
Office rent expense 72,000
Supplies expense 10,400
Salary expense 120,000
Depreciation expense: truck 60,000
Depreciation expense: mowing equipment 8,000
Repair and maintenance expense 6,000
Fuel expense 3,000
Miscellaneous expense 10,000
Total operating expenses $294,200
Operating income $45,800
Interest expense 6,000
Income before taxes $39,800
Income taxes expense 12,000
Income after taxes $27,800
Statement of Retained Earnings for the year ended December 31,Retained earnings $60,000
Income after taxes 27,800
Dividends 10,000
Retained earnings, December 31 $77,800
Balance Sheet as of December 31
Assets
Current Assets:
Cash $117,050
Accounts receivable 9,600
Unexpired insurance 16,000
Prepaid rent 6,000
Supplies 2,150
Total current assets $150,800
Long-term assets:
Trucks 300,000
Accumulated depreciation: truck 240,000 60,000
Moving equipment 40,000
Accumulated depreciation:mowing 24,000 16,000
Total long-term assets $76,000
Total assets $226,800
(Liabilities + Equity)
Liabilities:
Accounts payables $3,000
Notes payables 100,000
Salaries payables 1,800
Interest payables 300
Income taxes payables 2,100
Unearned mowing revenue 1,800
Total liabilities $109,000
Equity:
Capital Stock $40,000
Retained earnings 77,800
Total Equity 117,800 $117,800
Total liabilities and equity $226,800
Answer 2:
Closing Journal Entries:
Debit Credits
Cash $117,050
Accounts receivable 9,600
Unexpired insurance 16,000
Prepaid rent 6,000
Supplies 2,150
Trucks 300,000
Accumulated depreciation: truck $240,000
Mowing equipment 40,000
Accumulated depreciation: mowing equipment 24,000
Accounts payables 3,000
Notes payables 100,000
Salaries payables 1,800
Interest payables 300
Income taxes payables 2,100
Unearned mowing revenue 1,800
Capital Stock 40,000
Retained earnings 77,800
To close the permanent accounts to the current financial period.
Answer 3:
After Closing Trial Balance as of January 1:
Debit Credits
Cash $117,050
Accounts receivable 9,600
Unexpired insurance 16,000
Prepaid rent 6,000
Supplies 2,150
Trucks 300,000
Accumulated depreciation: truck $240,000
Mowing equipment 40,000
Accumulated depreciation: mowing equipment 24,000
Accounts payables 3,000
Notes payables 100,000
Salaries payables 1,800
Interest payables 300
Income taxes payables 2,100
Unearned mowing revenue 1,800
Capital Stock 40,000
Retained earnings 77,800
Totals $490,800 $490,800
Answer 4:
Evaluation of the company's profitability and liquidity:
Profitability:
Net Income Margin = 8.18%
Operating margin = 13.47%
These two ratios show that more than 5% of the company's revenue was spent on interest and taxes.
Liquidity:
Current Ratio = 1.38
Quick Ratio = 1.07
The company is liquid and can meet its current maturing liabilities with its current assets. The quick ratio is based on Cash only given the nature of the business.
Working Notes:
Profitability and Liquidity Ratios:
Profitability:
Net Profit Margin = Net Income/Revenue * 100 = 27,800/340,000 * 100 = 8.18%
Operating Profit Margin = Operating Income/Revenue * 100 = 45,800/340,000 * 100 = 13.47%
Liquidity Ratios:
Current ratio = Current Assets/Current Liabilities = 150,800/109,000 = 1.38
Quick Ratio = Cash/Current Liabilities = 117,050/109,000 = 1.07
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Jerome has insignificant influence of Melina Corporation because it owns less than 20% of the voting stock. The cost of the Melina stock is $5,000 and has a fair value of $6,000 on December 31 at the end of the first year it held the securities. Complete the necessary adjusting entry selecting the account names from the pull-down menus and entering dollar amounts in the debit and credit columns.
Answer:
Dec 31
Dr Fair value adjustment - stock $1,000
Cr Unrealized gain - Income $1,000
Explanation:
Preparation of the necessary adjusting entry
Based on the information given if The cost of the Melina stock was the amount of $5,000 in which it has a fair value of the amount of $6,000 on December 31 which means that the necessary adjusting entry will be :
Dec 31
Dr Fair value adjustment - stock $1,000
Cr Unrealized gain - Income $1,000
($6,000 - $5,000)
The 2014 balance sheet of Jordan’s Golf Shop, Inc., showed long-term debt of $6.2 million, and the 2015 balance sheet showed long-term debt of $6.45 million. The 2015 income statement showed an interest expense of $215,000. The 2014 balance sheet showed $610,000 in the common stock account and $2.5 million in the additional paid-in surplus account. The 2015 balance sheet showed $650,000 and $3 million in the same two accounts, respectively. The company paid out $610,000 in cash dividends during 2015. Suppose you also know that the firm’s net capital spending for 2015 was $1,470,000, and that the firm reduced its net working capital investment by $89,000. What was the firm’s 2015 operating cash flow, or OCF? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, e.g., 1,234,567.)
Answer:
$1,416,000
Explanation:
The computation of the operating cash flow is shown below:
But before that following calculations need to be done
Cash flow to creditors is
= Interest paid - Net new borrowing
= $215,000 - (LTD at end - LTD at beg)
= $215,000 - ($6,450,000 - 6,200,000)
= $215,000 - 250,000
–$35,000
Cash flow to stockholders = Dividends paid - Net new equity
Cash flow to stockholders = $610,000 – [(Common end + APIS end) - (Common beg + APIS beg)]
= $610,000 - [($650,000 + 3,000,000) - ($610,000 + 2,500,000)]
= $610,000 - ($3,650,000 - 3,110,000)
= $70,000
Here APIS denotes the additional paid-in surplus.
Cash flow from assets = Cash flow to creditors + Cash flow to stockholders
= -$35,000 + 70,000
= $35,000
Cash flow from assets = OCF - Change in NWC - Net capital spending
$35,000 = OCF - (-$89,000) - 1,470,000
= $35,000 - 89,000 + 1,470,000
= $1,416,000
Brief summary of New York Yankees Revenue Plan
For Sports Management class.
Answer:
The Yankees were the lead investors in a group that included Amazon and Sinclair Broadcast Group that bought 80% of the YES Network from Walt Disney in August 2019. The enterprise value of the deal was $3.47 billion. Prior to the deal, the Yankees owned 20% of the regional sports network. Last summer, Disney agreed to sell off 21st Century Fox’s 22 regional sports networks to secure Justice Department approval of its acquisition of major 21st Century Fox assets. The Yankees launched YES, the most-watched regional sports network in the country, in 2002, and the original investors were the team, Goldman Sachs, Quadrangle Group, the owners of the New Jersey (now Brooklyn) Nets, and others. A minority stake in YES was sold to Fox in 2012, and Fox increased its stake to 80% in 2014. The valuation of the sale to Fox was over $4 billion (including $1.7 billion of debt), with the Yankees share valued at $4.2 billion and the remaining portion valued at $3.9 billion.
Explanation:
∑⊂⊃⊃⊆⊇⊄⊅∀⇵←→∨∧∉∈⇔∛ what do this means
[tex]\left[\begin{array}{ccc}1&2&3\\4&5&6\\7&8&9\end{array}\right][/tex]
Answer:
hello
Explanation:
hi
g A physical inventory taken on December 31, 2020, resulted in an ending inventory of $1,150,000. Historically, Jensen's gross margin on sales has remained constant at 25%. Jensen suspects that an unusual amount of inventory may have been damaged and disposed of without appropriate tracking. At December 31, 2020, what is the estimated cost of missing inventory
Answer: $350,000
Explanation:
The Cost of Goods sold according to the Gross margin on sales is:
COGS = Revenue - (Gross margin * Revenue)
= 6,400,000 - (25% * 6,400,000)
= $4,800,000
The COGS according to the income statement formula:
= Opening inventory + Purchases - Closing inventory
= 1,300,000 + 5,000,000 - 1,150,000
= $5,150,000
The difference is the missing inventory
Difference = 5,150,000 - 4,800,000
= $350,000
Prepare an amortization schedule for a three-year loan of $114,000. The interest rate is 11 percent per year, and the loan calls for equal annual payments. How much total interest is paid over the life of the loan?
Answer:
$1254.000 loan
Explanation:
hope help keep learning
Thomlin Company forecasts that total overhead for the current year will be $15,000,000 with 300,000 total machine hours. Year to date, the actual overhead is $16,000,000 and the actual machine hours are 330,000 hours. If Thomlin Company uses a predetermined overhead rate based on machine hours for applying overhead, as of this point in time (year to date), the overhead is
Answer:
$50,000 overapplied
Explanation:
The computation of the overhead is shown below:
The predetermined overhead rate is
= $15,000,000 ÷ 3,000,0000 machine hours
= $50
Now the applied overhead is
= $50 × 330,000 hours
= $16,500,000
Now the overapplied overhead is
= $16,500,000 - $16,000,000
= $50,000 overapplied
A team made up of employees from about the same hierarchical level, but different
functional areas of an organization is called a:
O A. cross-functional team
There are different kinds of team. A team made up of employees from about the same hierarchical level, but different functional areas of an organization is called a cross-functional team.
Cross-functional teams are known to be a kind of team that is made up of members who has different areas of expertise but they share a common goal.
This teams is composed of employees that arise from about the same hierarchical level but they have different work areas but they do come together to accomplish a task.
Example are; marketing, product, sales, customer success etc.
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These are the agents of the
organization.
A. Board of Directors
B. Bondholders
C. Managers
D. Managers
Answer:
bondholder I think it is the correct one
Answer:
It is correct but remove the D. Managers
Lego Group in Bellund, Denmark, manufactures Lego toy construction blocks. The company is considering two methods for producing special-purpose Lego parts. Method 1 will have an initial cost of $360,000, an annual operating cost of $130,000, and a life of 3 years. Method 2 will have an initial cost of $760,000, an operating cost of $130,000 per year, and a 6-year life. Assume 13% salvage values for both methods. Lego uses an MARR of 13% per year.
Required:
a. Which method should it select on the basis of a present worth analysis?
b. If the evaluation is incorrectly performed using the respective life estimates of 3 and 6 years, will Lego make a correct or incorrect economic decision? Explain your answer.
Answer:
a) method 1 has a lower present worth, so it should be selected.
b) in order to properly compare both projects, we must assume that method 1 will be repeated at he end of year 3. That way both projects will have the same life span.
Explanation:
we must first determine the equivalent cash flows:
method 1 method 2
initial outlay -360,000 -760,000
cash flow year 1 -130,000 -130,000
cash flow year 2 -130,000 -130,000
cash flow year 3 -443,200 -130,000
cash flow year 4 -130,000 -130,000
cash flow year 5 -130,000 -130,000
cash flow year 5 -83,200 -31,200
the present worth of method 1 = -$1,074,266
the present worth of method 2 = -$1,232,226