Answer: $5,500
Explanation:
The Cost of Goods available for sale is the price of the inventory and purchases that the company intends to sell.
June 1 Inventory = $1,000
June 12 Purchase = $2,400
June 23 Purchase = $2,100
Cost of goods available for sale = 1,000 + 2,400 + 2,100
= $5,500
Mr. Brew Cafeteria has computed the indifference point between debt and common equity financing options to be $4 millions of EBIT. EBIT is approximately normally distributed with an expected value of $4.5 million and a standard deviation of $600,000. What is the probability that the equity financing option will be superior to the debt option
Answer: 20.33%
Explanation:
The probability of having the equity financing option having higher figures than debt is the probability of having EBIT lower than the indifference point of $4million. We would use the z-score to find the probability of having a lower EBIT.
z-score = indifference point - expected EBIT/ standard deviation
Which would be; 4000000-4500000/600000= -0.83.
From our table, -0.83 is 20.33%.
Steve has been given the charge of managing unskilled labor in the production units of his company. These workers are primarily motivated by financial incentives and other perks such as discount coupons and free movie or lunch days. In this scenario, which of the following power bases should Steve primarily use to influence the workers to improve their productivity?
a. Referent power
b. Expert power
c. Reward power
d. Information power
Answer:
c. Reward power
Explanation:
Reward power is the power to influence employees or to impress employees by giving them some reward for doing certain things. The reward is clear and vague . so correct option is c. Reward powerJackson, Inc., manufactures two products that it sells to the same market. Excerpted below are its budgeted and actual operating results for the year just completed: Unit sales Budged Actual Product X 22,500 42,000 Product Y 90,000 80,000 Unit contribution margin Product X $4.80 $3.90 Product Y $13.00 $14.00 Unit selling price Product X $13.00 $14.00 Product Y $30.00 $29.00 Industry volume was estimated to be 1,875,000 units at the time the budget was prepared. Actual industry volume for the period was 2,440,000 units. Jackson measures variances using contribution margin. Total sales quantity variance is: $97,280 favorable. $95,190 favorable. $107,920 favorable. $84,500 favorable. $36,400 favorable.
Answer:
$46,500 unfavorable
Explanation:
The computation of the total sales quantity variance is as follows:
Total sales quantity variance
Sales quantity variance is
= (Actual quantity sold - Budgeted quantity) × Budgeted price
For product X, it would be
= (42,000 - 22,500) × $13
= $253,500 favorable
And, For product Y, it is
= (80,000 - 90,000) × $30
= $300,000 unfavorable
So, the total would be
= $300,000 - $253,500
= $46,500 unfavorable
This is the answer but the same would not be provided in the given options
Fox Corporation has provided its contribution format income statement for June. The company produces and sells a single product: sales (2,700 units), $261,900; variable costs, $102,600; contribution margin, $159,300; fixed costs, $136,300; and operating profit, $23,000.If the company sells 3,000 units, its total contribution margin should be closest to _____.A. $25,556
Answer:
Total contribution margin= $177,000
Explanation:
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= total contribution margin / number of units
Unitary contribution margin= 159,300 / 2,700
Unitary contribution margin= $59
Now, the total contribution margin for 3,000 units:
Total contribution margin= 3,000*59
Total contribution margin= $177,000
Frederick Group uses ABC to account for its chrome wheel manufacturing process. Company managers have identified four manufacturing activities that incur manufacturing overhead costs: materials handling, machine setup, insertion of parts, and finishing. The budgeted activity costs for the upcoming year and their allocation bases are as follows:
Activity Total budgeted manufacturing overhead cost Allocation base
Material handeling 8700 Number of parts
Machine setup 4650 Number of setups
Insertion of parts 49300 Number of parts
Finishing 75600 Finishing direct labour hours
Total 138250
Frederick Group expects to produce 1,000 chrome wheels during the year.
The wheels are expected to use 2,900 parts, require 15 setups, and consume 1,800 hours of finishing time. Job 420
Job 420 used 150 parts, required 4 setups, and consumed 120 finishing hours.
Job 510 used 500 parts, required 5 setups, and consumed 320 finishing hours.
Requirements
1.Compute the cost allocation rate for each activity.
2. Compute the manufacturing overhead cost that should be assigned to Job 420.
3. Compute overhead cost that should be assigned to Job510.
Answer:
Results are below.
Explanation:
First, we need to calculate the activities allocation rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Material handeling= 8,700/2,900= $3 per part
Machine setup= 4,650/15= $310 per setup
Insertion of parts= 49,300/2,900= $17 per part
Finishing= 75,600/1,800= $42 per direct labor hour
Now, we can allocate overhead to Job 420:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Material handeling= 3*150= $450
Machine setup= 310*4= $1,240
Insertion of parts= 17*150= $2,550
Finishing= 42*120= $5,040
Total allocated costs= $9,280
Finally, allocated costs to Job 510:
Material handeling= 3*500= $1,500
Machine setup= 310*5= $1,550
Insertion of parts= 17*500= $8,500
Finishing= 42*320= $13,440
Total allocated costs= $24,990
The journal entry to transfer completed products from production to finished goods inventory includes which two of the following? (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Debit to Finished Goods Inventory ?
Credit to Work in Process Inventory ?
Credit to Finished Goods Inventory ?
Debit to Work in Process Inventory ?
Debit to Raw Materials Inventory ?
Credit to Raw Materials Inventory ?
Answer:
Debit finished goods inventory
Credit Work in Process Inventory
Explanation:
The journal entry that is required to transfer the completed products from the production stage to finished goods inventory which is the amount of goods in the inventory that have been produced and as well is available and ready for customer to buy will includes to Debit finished goods inventory and to Credit Work in Process. Inventory
Debit finished goods inventory
Credit Work in Process Inventory
(Being to record finished goods inventory)
Sheridan Company has $21000 of ending finished goods inventory as of December 31, 2019. If beginning finished goods inventory was $15000 and cost of goods sold was $50000, how much would Sheridan report for cost of goods manufactured
Answer:
$56,000
Explanation:
The computation of the cost of goods manufactured is shown below:
As we know that
Cost of goods sold = Opening finished goods inventory + cost of goods manufactured - ending finished goods inventory
$50,000 = $15,000 + cost of goods manufactured - $21,000
So, the cost of goods manufactured is
= $50000 + $6,000
= $56,000
Suppose a student-athlete has the opportunity to earn $600,000 next year playing for a minor league baseball team, $100,000 next year playing for a European professional football team, or $0 returning to college for another year.
The opportunity cost of the student-athlete returning to college next year is $
I entered $100,000 and got it wrong.
Answer:
it's 0
Explanation:
hes returning to college and making zero money
Davis acquires 100% of Reynolds in an acquisition . At date of acquisition , Reynolds had in process research and development costs they had spent $300, 000 for 3 years ago and is now recorded on its books at $100, 000 This R and D has not yet reached technological feasibility and no alternative use has been identified. At acquisition date, Reynolds continues to work on this project and the fair value is considered to be $200, 000. How much will Davis recorded this for at acquisition date using the:__________.
a. Acquisition method
b. Purchase method
c. Pooling of interests method
d. Do either of answers a, b, c above differ is this transaction was structured as either a statutory merger or statutory consolidation.
Answer:
a) When an asset is acquired in any form, it is been acquired at the fair market value of that asset which is $200,000. In this case, since the product is not yet technically feasible, so the same amount shall be disclosed in the balance sheet as it is still contingent.
b) When an asset it purchased we look for market value of the asset. So it will be booked at $200,000 but the contingent clause shall not be mentioned here.
c) In case of pooling of interest the book value of the asset i.e $ 1,000,000 shall be the value to be recorded in the books of account.
d) The answers would not differ.
Ananda owns a clothing store that sells graphic T-shirts. N is the number of shirt she sells each month. the revenue function of her store is our equals 25n the cost function of her store is C equals 10n +900 using a calculator what is the breaking even point of Amanda store
slove for x
11x+3=3x+35
Answer:
x = 4
Explanation:
1. 11x + 3 = 3x+ 35
2. -3x -3 -3x -3
----------------------------
3. 8x = 32
divide 8 from both sides of the equal sign
4. x = 4
Hope that helps
Answer:
11x-3x=35-3
8x=32
x=32:8
Suppose Manuel is the only seller in the market for bottled water and Hubert is the only buyer. The following lists show the value Hubert places on a bottle of water and the cost Manuel incurs to produce each bottle of water:
Hubert's Value Manuel's Costs
Value of first bottle: $10 Cost of first bottle: $1
Value of second bottle: $7 Cost of second bottle: $3
Value of third bottle: $3 Cost of third bottle: $7
Value of fourth bottle: $1 Cost of fourth bottle: $10
The following table shows their respective supply and demand schedules:
Price Quantity Demanded Quantity Supplied
$1 or less 4 0
$1 to $3 3 1
$3 to $7 2 2
$7 to $10 1 3
More than $10 0 4
Use Raphae's supply schedule and Larry's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $5, and $8.
A price of____brings supply and demand into equilibrium.
At the equilibrium price, consumer surplus is_____producer surplus is_____, and total surp is_____.
If Raphael produced and Larry consumed one less bottle of water, total surplus would_____.
if instead, Raphael produced and Larry consumed one additional bottle of water, total surplus would_____.
Answer:
Manuel and Hubert
A price of__$5__brings supply and demand into equilibrium.
At the equilibrium price, consumer surplus is__$2___producer surplus is__$2___, and total surplus is__$4___.
If Manuel produced and Hubert consumed one less bottle of water, total surplus would__$6___.
if instead, Manuel produced and Hubert consumed one additional bottle of water, total surplus would_$6____.
Explanation:
a) Data and Calculations:
Hubert's Value Manuel's Costs
Value of first bottle: $10 Cost of first bottle: $1
Value of second bottle: $7 Cost of second bottle: $3
Value of third bottle: $3 Cost of third bottle: $7
Value of fourth bottle: $1 Cost of fourth bottle: $10
The following table shows their respective supply and demand schedules:
Price Quantity Quantity
Demanded Supplied
$1 or less 4 0
$1 to $3 3 1
$3 to $7 2 2
$7 to $10 1 3
More than $10 0 4
Using Manuel's supply schedule and Hubert's demand schedule to find the quantity supplied and quantity demanded at prices of $2, $5, and $8.
Price Quantity Quantity
Demanded Supplied
$2 3 1
$5 2 2
$8 1 3
At the equilibrium price:
Consumer Surplus = $7 - $5 = $2
Producer Surplus = $5 - $3 = $2
Total surplus is $2 * 2 = $4
On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $132 million and classified the securities as trading securities. On December 31, 2021, these bonds were valued at $150 million. Three months later, on April 3, 2022, Phillips Corporation sold these bonds for $140 million. As part of the multi-step approach to record the 2019 transaction, Phillips Corporation should first update the fair value adjustment by recording:A. An unrealized holding gain of $28 million in 2019.B. A unrealized holding loss of $10 million in 2019.C. An unrealized holding gain of $8 million in 2019.D. A gain of $8 million in 2019.
Answer:
B. A unrealized holding loss of $10 million in 2022.
Explanation:
By December 31, 2021, the bonds were worth $150 million, resulting in an $18 million unrealized gain. By the time the bonds were sold, their price had deceased to $140 million, which means that $10 million of the $18 million previous gain had been erased. Therefore, the adjusting entry on December 31, 2022, should include the $10 million unrealized loss.
Indirect labor includes:______.
1. labor of employees working directly on the product.
2. labor of the maintenance employees.
3. labor of the clerical staff.
Answer:
2, 3
Explanation:
Indirect labour includes labour not included in the production process of a good or service. They are involved in the running of the business instead
They include
Accountants
Lawyers
Administrative staffs
Maintenance employees
Direct labour includes labor of employees working directly on the product.
Duce, Inc. produces two different products (Product A and Product X) using two different activities: Machining, which uses machine hours as an activity driver, and Inspection, which uses number of batches as an activity driver. The activity rate for Machining is $125 per machine hour, and the activity rate for Inspection is $500 per batch. The activity drivers are used as follows:
Product A Product X Total
Machine hours 1,900 3,900 5,800
Number of batches 45 22 67
What is the amount of Machining cost assigned to Product X?
a. $780,000
b. $22,500
c. $380,000
d. $950,000
Answer:
Machinning= $487,500
Explanation:
Giving the following information:
The activity rate for Machining is $125 per machine hour.
Product A Product X Total
Machine hours 1,900 3,900 5,800
To assign costs to Product X, we need to use the following formula:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Machinning= 125*3,900
Machinning= $487,500
The Winston Company estimates that the factory overhead for the following year will be $868,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 28,000 hours. The total machine hours for the year were 54,800 hours. The actual factory overhead for the year was $1,723,00.
Required:
a. Determine the total factory overhead amount applied.
b. Calculate the overapplied or underapplied amount for the year.
c. Prepare the journal entry to close Factory Overhead into Cost of Goods Sold.
Answer:
I just learn Logic Of ABi Nandan...Then after That I understand every thing...
The following information is related to Dickinson Company for 2020.
Retained earnings balance, January 1, 2020 $980,000
Sales revenue 25,000,000
Cost of goods sold 16,000,000
Interest revenue 70,000
Selling and administrative expenses 4,700,000
Write-off of goodwill 820,000
Income taxes for 2020 1,244,000
Gain on the sale of investments 110,000
Loss due to flood damage 390,000
Loss on the disposition of the wholesale division (net of tax) 440,000
Loss on operations of the wholesale division (net of tax) 90,000
Dividends declared on common stock 250,000
Dividends declared on preferred stock 80,000
Dickinson Company decided to discontinue its entire wholesale operations (considered a discontinued operation) and to retain its manufacturing operations. On September 15, Dickinson sold the wholesale operations to Rogers Company. During 2020, there were 500,000 shares of common stock outstanding all year.
Required:
Prepare a multiple-step income statement and a retained earnings statement.
Answer:
Dickson Company
Multi-step Income Statement for the year ended December 31, 2020:
Sales revenue $25,000,000
Cost of goods sold 16,000,000
Gross profit $9,000,000
Interest revenue 70,000
Total revenue $9,070,000
Selling and
administrative expenses 4,700,000
Write-off of goodwill 820,000 $5,520,000
Income from operations $3,550,000
Gain on the sale of investments 110,000
Loss due to flood damage (390,000)
Income before taxes 3,270,000
Income taxes for 2020 1,244,000
Net Income $2,026,000
Loss on the disposition of
the wholesale division (net of tax) (440,000)
Loss on operations of the
wholesale division (net of tax) (90,000)
Comprehensive Income $1,496,000
EPS = $2.992
Statement of Retained Earnings for the year ended December 31, 2020:
Comprehensive Income $1,496,000
Retained earnings balance, Jan, 1 980,000
Dividends: common stock 250,000
Dividends: preferred stock 80,000 (330,000)
Retained earnings, December 31 $2,146,000
Explanation:
a) Data and Calculations:
Retained earnings balance, January 1, 2020 $980,000
Sales revenue 25,000,000
Cost of goods sold 16,000,000
Interest revenue 70,000
Selling and administrative expenses 4,700,000
Write-off of goodwill 820,000
Income taxes for 2020 1,244,000
Gain on the sale of investments 110,000
Loss due to flood damage 390,000
Loss on the disposition of the wholesale division (net of tax) 440,000
Loss on operations of the wholesale division (net of tax) 90,000
Dividends declared on common stock 250,000
Dividends declared on preferred stock 80,000
b) EPS = $2.992 ($1,496,000/500,000 shares)
Forming a joint venture with an existing foreign company offers all of the following advantages excepta.providing control over product attributes.b.joining an established firm.c.requiring less commitment from all parties involved in the joint venture.d.providing immediate marketing knowledge.e.providing reduced risk.
Answer:
The correct answer is the option C: Requiring less commitment from all parties involved in the joint venture.
Explanation:
To begin with, the name of "joint venture" in the field of business refers to the method and strategy whose process consists of incorporating two or more parties into one only form of company with the final purpose of increasing the sales of every party included in the agreement and doing that by different ways. Moreover, generally this strategy has its focus on the fact of entering a new market or acquiring new management that will come with more resources and more. So that is why that it brings a lot of advantages as stated in the case presented but absolutely not less commintment from every party involved in it.
If TOMS advertised its shoes differently
Answer:
it might have more sales <3
Explanation:
Franklin, Inc uses activity-based costing. The company produces X and Y. Information relating to the two products is as follows:
X Y
Units produced 38,000 50,000
Machine-hours 15,000 17,000
Direct labor-hours 16,000 24,000
Materials handling (number of moves) 8,000 12,000
Setups 10,000 14,000
The following costs are reported:
Materials handling $160,000
Labor-related overhead 480,000
Setups 240,000
Labor-related overhead costs assigned to product X are:________
A. $192,000
B. $232,000
C. $288,000
D. $272,500
Answer:
A. $192,000
Explanation:
The computation of the labor related overhead cost is shown below:
= (Labor related overhead cost) ÷ (Total direct labor hours) × direct labor hours of X
= ($480,000) ÷ (16,000 hours + 24,000 hours) × 16,000 hours
= $192,000
hence, the correct option is A.
Problem 10-3A The following section is taken from Hardesty's balance sheet at December 31, 2016. Current liabilities Interest payable $ 46,500 Long-term liabilities Bonds payable (9%, due January 1, 2020) 565,000 Interest is payable annually on January 1. The bonds are callable on any annual interest date. (a) Journalize the payment of the bond interest on January 1, 2017. (b) Assume that on January 1, 2017, after paying interest, Hardesty calls bonds having a face value of $160,000. The call price is 107. Record the redemption of the bonds. (c) Prepare the adjusting entry on December 31, 2017, to accrue the interest on the remaining bonds.
Answer:
Hardesty
a) January 1, 2017:
Debit Interest payable $46,500
Credit Cash $46,500
To record the payment of interest on bonds.
b) January 1, 2017:
Debit Long-term liabilities Bonds payable $160,000
Debit Bonds Redemption Expense $11,200
Credit Cash $171,200
To record the redemption of bonds at 107.
c) December 31, 2017:
Debit Interest Expense $36,450
Credit Interest Payable $36,450
To record interest expense for balance of bonds.
Explanation:
a) Data and Calculations:
Current liabilities
Interest payable $ 46,500
Long-term liabilities Bonds payable (9%, due January 1, 2020) $565,000
Interest payment date = January 1
Face value of bonds called = $160,000
Call price = 107
Bond redemption expense = ($160,000 * 107/100) - $160,000 = $11,200
Interest expense for 2017:
= ($565,000 - $160,000) * 9% = $36,450
Consider the following transactions.
1. Receive cash from customers, $15,000.
2. Pay cash for employee salaries, $9,000.
3. Pay cash for rent, $3,000.
4. Receive cash from sale of equipment, $8,000.
5. Pay cash for utilities, $1,000.
6. Receive cash from a bank loan, $4,000.
7. Pay cash for advertising, $7,000.
8. Purchase supplies on account, $3,000.
Required: Post transactions to the Cash T-account and calculate the ending balance. The beginning balance in the Cash T-accow1t is $5,000.
Answer:
Cash accountTransaction Debit Credit
Big. bal. 5,000
1. 15,000
2. 9,000
3. 3,000
4. 8,000
5. 1,000
6. 4,000
7. 7,000
8. NO ENTRY
Ending bal. 12,000
Transaction number 8 is not included since an accounts payable is created, there is no cash outflow.
Explanation:
After the accounts have been adjusted at April 30, the end of the fiscal year, the following balances were taken from the ledger of Nuclear Landscaping Co.:________.
Felix Godwin, Capital $643,600
Felix Godwin, Drawing 10,500
Fees Earned 356,500
Wages Expense 283,100
Rent Expense 56,000
Supplies Expense 11,500
Miscellaneous Expense 13,000
Journalize the two entries required to close the accounts.
Answer:
April 30
Dr Fees earned 356,500
Cr Income summary356,500
April 30
Dr Income summary 363,600
Cr Wages expense 283,100
Cr Rent expense 56,000
Cr Supplies expense 11,500
Cr Miscellaneous expense 13,000
April 30
Dr Felix Goodwin, capital 7,100
Cr Income summary 7,100
April 3.0
Dr Felix Goodwin, capital 10,500
Cr Felix Goodwin, drawing 10,500
Explanation:
Preparation of the journal entry for the two entries required to close the accounts.
April 30
Dr Fees earned 356,500
Cr Income summary356,500
April 30
Dr Income summary 363,600
(283,100+56,000+11,500+13,000)
Cr Wages expense 283,100
Cr Rent expense 56,000
Cr Supplies expense 11,500
Cr Miscellaneous expense 13,000
April 30
Dr Felix Goodwin, capital 7,100
Cr Income summary 7,100
(363,600-356,500)
April 3.0
Dr Felix Goodwin, capital 10,500
Cr Felix Goodwin, drawing 10,500
Bill operates a proprietorship using the cash method of accounting, and this year he received the following: $130 in cash from a customer for services rendered this year a promise from a customer to pay $194 for services rendered this year tickets to a football game worth $235 as payment for services performed last year a check for $176 for services rendered this year that Bill forgot to cash How much income should Bill realize on Schedule C
Answer:
$541
Explanation:
Calculation for How much income should Bill realize on Schedule C
Income realize on Schedule C=$130 + $235 + $176=
Income realize on Schedule C=$541
Therefore the amount of income that Bill should realize on Schedule C is $541
Which of the following best describes what investment is?
A required payment to owners of a company
An amount of money to pay for larger operations
A new company with several shareholders
A renewable technology in a developing country
Because there isn't one single measure of inflation, the government and researchers use a variety of methods to get the most balanced picture of how prices fluctuate in the economy. Two of the most commonly used price indexes are the consumer price index (CPI) and the GDP deflator.
The GDP deflator for this year is calculated by dividing the___using_____by the____using_____and multiplying by 100. However, the CPI reflects only the prices of all goods and services______. Indicate whether each scenario will affect the GDP deflator or the CPI for the United States.
Shows up in the... GDP
Scenario Deflator CPI
A decrease in the price of a Treewood Equipment feller
buncher, which is a commercial forestry machine made
in the U.S. but not bought by U.S. consumers.
An increase in the price of a Japanese-made television
that is popular among U.S. consumers.
Answer:
GDP deflator for this year is calculated by dividing the value of all goods and services produced in the economy using this year's prices by the value of all goods and services produced in the economy using the base year's prices. However, the CPI reflects only the prices of all goods and services bought by the consumers.
1. Scenario: A decrease in the price of a Treewood Equipment feller buncher, which is a commercial forestry machine made in the U.S. but not bought by U.S. consumers
Shows up: In the GDP Deflator not CPI
2. Scenario: An increase in the price of a Japanese-made television that is popular among U.S. consumers.
Shows up: In the CPI not GDP Deflator
Skysong Corporation reported the following for 2020: net sales $1,236,500, cost of goods sold $732,900, selling and administrative expenses $331,400, and an unrealized holding gain on available-for-sale debt securities $24,400.Prepare a statement of comprehensive income using the one statement format. (Ignore income taxes and earnings per share.)Prepare a statement of comprehensive income, using the two statement format. (Ignore income taxes and earnings per share.)
Answer:
A. $196,600
B. $196,600
Explanation:
A. Preparation of a statement of comprehensive income using the one statement format.
SKYSONG CORPORATION Statement of Comprehensive Income For the Year Ended
Sales revenue $1,236,500
Less Cost of goods sold ($732,900)
Gross profit $503,600
($1,236,500-$732,900)
Selling and administrative expenses $331,400
Net income $172,200
($503,600-$331,400)
Add Unrealized holding gain, net of tax $24,400
Comprehensive income $196,600
($172,200+$24,400)
Therefore the statement of comprehensive income using the one statement format will be $196,600
(b) Preparation of a statement of comprehensive income using the two statement format
SKYSONG CORPORATION Income Statement and Comprehensive Income Statement For the Year Ended
Sales $1,236,500
Cost of goods sold ($732,900)
Gross profit $503,600
($1,236,500-$732,900)
Selling and administrative expenses $331,400
Net income $172,200
($503,600-$331,400)
COMPREHENSIVE INCOME
Net income $172,200
Unrealized holding gain $24,400
Comprehensive income $196,600
($172,200+$24,400)
Therefore the statement of comprehensive income using the two statement format will be $196,600
The following are the trial balance and the other information related to Brian Consulting Engineer.
BRIAN CONSULTING ENGINEER
TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $29,500
Accounts Receivable 56,200
Allowance for Doubtful Accounts $754
Supplies 2,370
Prepaid Insurance 1,710
Equipment 26,900
Accumulated Depreciation-Equipment 6,232
Notes Payable 7,200
Owner’s Capital 36,778
Service Revenue 117,230
Rent Expense (13 months of rent) 10,595
Salaries and Wages Expense 34,700
Utilities Expenses 1,720
Office Expense 620
Totals $168,255 $168,255
1. Fees received in advance from clients $5,980, which were recorded as revenue.2. Services performed for clients that were not recorded by December 31, $4,558.3. Bad debt expense for the year is $1,328.4. Insurance expired during the year $519.5. Equipment is being depreciated at 10% per year.6. Pearl Perez gave the bank a 90-day, 10% note for $7,200 on December 1, 2017.7. Rent of the building is $815 per month. The rent for 2017 has been paid, as has that for January 2018, and recorded as Rent Expense.8. Office salaries and wages earned but unpaid December 31, 2017, $2,616.Pearl Perez withdrew $16,090 cash for personal use during the year.
1. From the trial balance and other information given, prepare annual adjusting entries as of December 31, 2017.2. Prepare an income statement for 2017.
3. Prepare a classified balance sheet for 2017.
4. Prepare a statement of owner’s equity for 2017.
Answer:
Brian Consulting Engineer
1. Adjusting Entries:
a. Debit Service Revenue $5,980
Credit Unearned Fees $5,980
To record unearned fees.
b. Debit Accounts Receivable $4,558
Credit Service Revenue $4,558
To record services performed for clients.
c. Debit Bad Debt Expense $1,328
Credit Allowance for Uncollectibles $1,328
To record bad debt expense for the year.
d. Debit Insurance Expense $519
Credit Prepaid Insurance $519
To record expired insurance expense.
e. Debit Depreciation Expense- Equipment $2,690
Credit Accumulated Depreciation- Equipment $2,690
To record depreciation expense for the year.
f. Debit Interest Expense $60
Credit Interest Payable $60
To record interest expense for a month.
g. Debit Prepaid Rent $815
Credit Rent Expense $815
To record prepaid rent for January 2018.
h. Debit Salaries & Wages Expense $2,616
Credit Salaries & Wages Payable $2,616
To record accrued salaries and wages.
i. Debit Drawings $16,090
Credit Cash $16,090
To record drawing for personal use.
2. Income Statement for the year ended December 31, 2017:
Service Revenue $115,808
Depreciation Expense-
Equipment 2,690
Rent Expense 9,780
Bad Debt Expense 1,328
Salaries and
Wages Expense 37,316
Utilities Expense 1,720
Office Expense 620
Interest Expense 60
Insurance Expense 519
Suspense 3,879 $57,912
Net Income $57,896
3. Classified Balance Sheet as of the year ended December 31, 2017:
Assets
Current Assets:
Cash $13,410
Accounts Receivable 60,758
Allowance for
Doubtful Accounts 2,082 58,676
Supplies 2,370
Prepaid Insurance 1,191
Prepaid Rent 815 $76,462
Long-term Assets:
Equipment 26,900
Accumulated Depreciation 8,922 $17,978
Total assets $94,440
Liabilities + Equity
Liabilities:
Notes Payable 7,200
Salaries & Wages Payable 2,616
Interest Payable 60
Unearned Fees 5,980 $15,856
Owner’s Capital 36,778
Drawings (16,090)
Net Income 57,896 $78,584
Total Liabilities + Equity $94,440
4. Statement of Owner's Equity as of the year ended December 31, 2017:
Owner’s Capital $36,778
Drawings (16,090)
Net Income 57,896
Owner's Capital, ending $78,584
Explanation:
a) Data and Calculations:
BRIAN CONSULTING ENGINEER
TRIAL BALANCE
DECEMBER 31, 2020
Debit Credit
Cash $29,500
Accounts Receivable 56,200
Allowance for Doubtful Accounts $754
Supplies 2,370
Prepaid Insurance 1,710
Equipment 26,900
Accumulated Depreciation-Equipment 6,232
Notes Payable 7,200
Owner’s Capital 36,778
Service Revenue 117,230
Rent Expense
(13 months of rent) 10,595
Salaries and
Wages Expense 34,700
Utilities Expense 1,720
Office Expense 620
Totals $????
Adjusted Trial Balance
Debit Credit
Cash $13,410
Accounts Receivable 60,758
Allowance for Doubtful Accounts $2,082
Supplies 2,370
Prepaid Insurance 1,191
Prepaid Rent 815
Equipment 26,900
Accumulated Depreciation-Equipment 8,922
Notes Payable 7,200
Salaries & Wages Payable 2,616
Interest Payable 60
Owner’s Capital 36,778
Drawings 16,090
Service Revenue 115,808
Unearned Fees 5,980
Depreciation Expense-
Equipment 2,690
Rent Expense 9,780
Bad Debt Expense 1,328
Salaries and
Wages Expense 37,316
Utilities Expense 1,720
Office Expense 620
Interest Expense 60
Insurance Expense 519
Suspense 3,879
Totals $179,446 $179,446
The Commerce Ministry of a country conducts regular surveys on goods and services sold within the country. Researchers at the Ministry study consumer behavior through the choices the consumers make while deciding what to buy. Their report on the industry for beverages last year indicated that the price elasticity of demand for fruit juices in the country was? -0.8, while the price elasticity of demand for a particular brand called Fruit Drops was? -1.2. According to the? report, an average consumer spends about 1 percent of his monthly income on fruit juices. A student of? economics, Julio, however feels that the current price elasticity of demand for Fruit Drops is actually higher than? -1.2, based on his own experience in purchasing fruit juices.??More recent reports on consumer behavior in this market indicate that the price elasticity of demand for fruit juices in general is actually higher than? -0.8. Which of the? following, if? true, would support this? claim?A. The number of fruit juice manufacturers has increased substantially in recent years.B. More and more people are choosing to consume fruit juices instead of health drinks because of the extremely high caffeine content in the latter.C. Government has stopped the subsidy it used to provide to producers of fruit juices.D. Market research suggests that as income? increases, people are reducing their consumption of Fruit Drops and moving to other brands.E. Health experts are encouraging people to consume fruits instead of fruit juices because the latter contain harmful preservatives.
Answer:
Explanation:
The number of fruit juice manufacturers has increased substantially in recent years.
Transactions for Sunland Company for the month of June are presented below.
June
1 Issues common stock to investors in exchange for $4,080 cash.
2 Buys equipment on account for $1,720.
3 Pays $910 to landlord for June rent.
12 Bills Wil Wheaton $800 for welding work done.
Journalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)
Answer:
Date Account Detail Debit Credit
June 1 Cash $4,080
Common Stock $4,080
Date Account Detail Debit Credit
June 2 Equipment $1,720
Accounts Payable $1,720
Date Account Detail Debit Credit
June 3 Rental expense $910
Cash $910
Date Account Detail Debit Credit
June 12 Accounts Receivable $800
Welding Revenue $800