Answer:
1. Latest outstanding loan balance
2. Initial; was originally borrowed.
3. loan's principal.
4. Net worth
5. Equity
6. Insolvency.
Explanation:
Financial statements can be defined as a document used for the formal communication or disclosure of financial information and statements to present and potential users such as investors and creditors. These includes balance sheet, statement of retained earnings and income statement.
Acquiring assets by taking on debt is one way you can accumulate assets. And many of these loans will fall into the category of long-term liabilities. But, in order to present them on the balance sheet correctly, the following must be known about the loan.
1. Regardless of the type of loan, only the latest outstanding loan balance is shown on the balance sheet.
2. The initial loan balance is not what is currently owed but what was originally borrowed.
3. The portion of a loan listed as a liability on the balance sheet is only the loan's principal.
4. Net worth: the fair market value of assets owned less liabilities owed.
5. Equity: the amount left after selling assets and paying off all liabilities.
6. Insolvency: net worth is less than zero.
If the price elasticity of supply is 0.5 and the quantity supplied decreases by g 6%, then the price must:_______
Answer: Price decreased by 12%
Explanation:
Price elasticity = %Change in quantity / % change in price
0.5 = 6% / % change in price
0.5 * % change in price = 6%
% change in price = 6%/0.5
% change in price = 12%
Based on the Information that follows, prepare the cost of goods sold section of a multiple-step income statement.
Merchandise Inventory, January 1, 20-- $37,000
Estimated Returns Inventory, January 1, 20-- 1,000
Purchases 102,000
Purchases Returns and Allowances 4,200
Purchases Discounts 2,040
Freight-In 800
Merchandise Inventory, December 31, 20-- 28,500
Estimated Returns Inventory, December 31, 20-- 3,500
Answer:
Cost of goods sold = $105,060
Explanation:
a) Data and Calculations:
Cost of goods sold section of the multi-step income statement:
Merchandise Inventory, January 1, 20-- $37,000
Purchases 102,000
Purchases Returns and Allowances (4,200)
Purchases Discounts (2,040)
Freight-In 800
Merchandise Inventory, December 31, 20--(28,500)
Cost of goods sold $105,060
b) The cost of goods sold comprises the beginning inventory, purchases and freight-in costs incurred during the period, less purchases returns and discounts, and the ending inventory. It represents the cost incurred directly for the goods sold. This means that indirect costs are not included in the cost of goods sold. Such costs are usually deducted as period costs before arriving at the net income.
At the end of the month, we record the supplies that have been used throughout the period. Required: For the transaction above, complete the following:
(a) Select the accounts that are affected (there will be at least two).
(b) Are the selected accounts increased or decreased?
(c) If Equity is selected, choose the reason that it has changed.
Answer:
a. The accounts affected are assets (Supplies) and Equity (Retained Earnings).
b. Assets and Equity accounts are decreased.
c. The reason that Equity has changed is because the Retained Earnings are reduced by the Supplies Expense.
Explanation:
The five major classifications of accounts are assets, liabilities, equity, revenue and expenses. Both revenues and expenses affect the equity balance through retained earnings. While revenues increase retained earnings, expenses decrease them.
Which of the following transactions increases owner’s equity? a.Earn revenue b.Receive cash from customers on account c.Pay expenses d.Withdraw money for personal use
Answer:
A. Earn revenue
B. Receive Cash from customers on account
Explanation:
The effects of the transactions mentioned in the question are explained below:
A. Earn Revenue
The revenue earned causes the owner's equity to increase. As will it increase the current assets (accounts receivable for credit based transaction and bank for cash based transactions).
B. Receive Cash from customers on account
When cash is received from customers it results in the increase in the current assets . Giving companies the opportunity to invest more in the business. Therefore, the owner's equity is increased in this case.
C. Pay expenses
When the expenses are paid, the owner's equity falls and simultaneously the current assets fall as the cash available has been decreased.
D. Withdraw money for personal use
The owner's equity when available is used for the purpose of investing in the business, therefore, when cash is withdrawn for personal use the amount available to spend on business has been reduced. Hence, owner's equity has fallen.
On December 11, 2019, Hooper Inc. made a credit sale to Marshall Company and required Marshall to sign a $12,000, 60-day note.Required:Prepare the journal entries necessary to record the receipt of the note by Hooper, the accrual of interest on December 31, 2019, and the customer’s repayment on February 9, 2020, assuming:1. Interest of 12% was assessed in addition to the face value of the note.2. The note was issued as a $12,000 non-interest-bearing note with a present value of $11,765. The implicit interest rate on the note receivable was 12%. Assume a 360-day year.
Answer:
1) December 11, 2019
Dr Notes receivable 12,000
Cr Sales revenue 12,000
December 31, 2019
Dr Interest receivable 80
Cr Interest revenue 80
February 9, 2020
Dr Cash 12,240
Cr Notes receivable 12,000
Cr Interest revenue 160
Cr Interest receivable 80
2) December 11, 2019
Dr Notes receivable 12,000
Cr Sales revenue 11,764.71
Cr Discount on notes receivable 235.29
December 31, 2019
Dr Discount on notes receivable 78.43
Cr Interest revenue 78.43
February 9, 2020
Dr Cash 12,000
Dr Discount on notes receivable 156.86
Cr Notes receivable 12,000
Cr Interest revenue 156.86
What is consumer demand?
A.
consumers’ willingness to purchase certain products over a period of time
B.
consumer complaints filed with the FTC and other government agencies
C.
consumer suggestions posted on company websites about products
D.
consumer requests for further product information
Answer:
consumers’ willingness to purchase certain products over a period of time
Explanation:
A company manufactures and sells three products. The products are all manufactured at the same facility. The controller of the company has decided to accumulate all budgeted overhead costs for the manufacturing facility into a single cost pool. The cost pool is then allocated to the three products based on the direct labor hours used by each product. What type of overhead rate has the controller most likely used in this allocation methodology?
Answer:
Plant-wide rate.
Explanation:
A plant-wide rate can be defined as a single overhead rate used by business firms or companies to allocate the manufacturing overhead costs to the level of output or productivity.
In this scenario, company manufactures and sells three products. The products are all manufactured at the same facility. The controller of the company has decided to accumulate all budgeted overhead costs for the manufacturing facility into a single cost pool. The cost pool is then allocated to the three products based on the direct labor hours used by each product.
Hence, the type of overhead rate the controller most likely used in this allocation methodology is the plant-wide rate.
What are examples of career changes? Check all that apply.
Sonja is a Bus Driver who takes a new job as a Cook in a restaurant.
Alfredo is an Actor for a television show who takes a job acting in a movie.
Marybeth is a Farmworker who grows vegetables and decides to start growing fruit, too.
Joshua is a Security Guard who takes a job as a High School Math Teacher.
Answer:
It's A and D.
Explanation:
Answer:
A D
Explanation:
David worked 7 3⁄4 hours each day, Monday through Friday. If he was paid $11.90 per hour, what is his straight pay?
Answer
$92.225
Explanation
Straight pay is calculated by multiplying the hourly rate by the number of hours you worked. 11.90dollars by 7.75 equals 92.225dollars.
State whether the following statement is true or false, and explain why. If the statement is false, state the true change. If the national economy shrank at an annual rate of 20% per year for three consecutive years, then the economy shrank by 60% over the three-year period.
Answer:
It's true.
Explanation:
Because every year 20% is added so after 3 years it's 60%
this is because the percentage changes a certain amount every months which increases the amount of money it's worth or how much the price goes down.
The trial balance of Blues Traveler Corporation does not balance.
Debit Credit
Cash $5,992
Accounts Receivable 5,280
Supplies 3,007
Equipment 6,140
Accounts Payable $7,084
Common Stock 8,040
Retained Earnings 2,040
Service Revenue 5,240
Office Expense 4,360
$24,779 $22,404
An examination of the ledger shows these errors.
1. Cash received from a customer on account was recorded (both debit and credit) as $1,620 instead of $1,890.
2. The purchase on account of a computer costing $3,360 was recorded as a debit to Office Expense and a credit to Accounts Payable.
3. Services were performed on account for a client, $2,290, for which Accounts Receivable was debited $2,290 and Service Revenue was credited $265.
4. A payment of $135 for telephone charges was entered as a debit to Office Expense and a debit to Cash.
5. The Service Revenue account was totaled at $5,240 instead of $5,320.
Required:
From this information prepare a corrected trial balance.
Answer:
Total DEBIT SIDE $24,509
Total CREDIT SIDE $24,509
Explanation:
Preparation of a corrected trial balance..
BLUES TRAVELER CORPORATION
Trial Balance April 30,2020
DEBIT SIDE
Cash $5,992
(5992+270-135-135=$5,992)
(1,890-1,620=270)
Accounts Receivable $5,010
(5,280-270=$5,010)
(1,890-1,620=270)
Supplies $3,007
Equipment $9,500
(6,140+3,360=$9,500)
Office Expense $1,000
(4,360-3,360=$1,000)
Total DEBIT SIDE $24,509
CREDIT SIDE
Accounts payable $7,084
Common stock $8,040
Retained earnings $2,040
Service revenue $7,345
(5,240+2,025+80=$7,345)
(2,290-265=2,025)
($5,320 - $5,240=80)
Total CREDIT SIDE $24,509
Therefore the corrected trial balance Total DEBIT SIDE and Total CREDIT SIDE will be $24,509
An investor deposits $2,000 per year (beginning today) for 10 years in a 4% interest bearing account. The last cash flow is received 1 year prior to the end of the tenth year. What is the investor's future balance after 10 years?
Answer:
$24,012.21
Explanation:
Calculation for What is the investor's future balance after 10 years
Using financial to find the FV which represent future value
N 10 years
I/Y 4%
PV 0
PMT $2,000 per year
FV ?
Hence:
FV = $24,012.21
Therefore the investor's future balance after 10 years will be $24,012.21
Express Company reported sales of $770,000 in the year 2013. Interest expense for the year amounted to $10,800; income tax expense, $33,000; and selling and administrative expense, $14,000. The company reported net income after taxes of $42,000. Compute the times interest earned ratio for the year.
A. 6.94
B. 2.60
C. 7.94
D. 9.24
Answer:
C. 7.4
Explanation:
Computation for the times interest earned ratio for the year
First step is to get the EBIT
Net income $42,000
Add Income tax expense $33,000
Add Interest expense $10,800
EBIT $85,800
Now let Compute the times interest earned ratio for the year using this formula
Times interest earned ratio=EBIT/Interest expense
Let plug in the formula
Times interest earned ratio=$85,800/$10,800
Times interest earned ratio=7.94
Therefore the times interest earned ratio for the year will be 7.94
Prepare summary journal entries to record the following transactions for a company in its first month of operations.
Raw materials purchased on account, $114,000.
Direct materials used in production, $45,500. Indirect materials used in production, $20,400.
Paid cash for factory payroll, $50,000. Of this total, $37,000 is for direct labor and $13,000 is for indirect labor.
Paid cash for other actual overhead costs, $9,125.
Applied overhead at the rate of 125% of direct labor cost.
Transferred cost of jobs completed to finished goods, $80,500.
Sold jobs on account for $115,000. The jobs had a cost of $80,500.
a. Record raw materials purchased on account .
b(1). Record the entry to assign costs of direct materials used.
b(2). Record the entry for indirect materials.
c. Record the usage of direct and indirect labor, paid in cash.
d. Record other actual overhead costs, paid in cash.
e. Record the entry to apply overhead at a rate of 125% of direct labor cost.
f. Record costs of jobs completed.
g(1). Record the cost of the jobs sold.
g(2). Record sales on account.
Answer:
1a. Dr Raw materials inventory $114,000
Cr Accounts payable $114,000
b(1) Dr Work in process inventory $45,500
Cr Raw materials inventory$45,500
b(2) Dr Factory overhead $20,400
Cr Raw materials inventory$20,400
c.Dr Work in process inventory 37,000
Dr Factory overhead 13,000
Cr Cash 50,000
d. Dr Factory overhead 9,125
Cr Cash 9,125
e. Dr Work in process inventory 45,500
Cr Factory overhead45,500
f. Dr Finished goods inventory $80,500
Cr Work in process inventory$80,500
g(1) Dr Cost of goods sold$80,500
Cr Finished goods inventory $80,500
g(2) Dr Accounts receivable $115,000
Cr Sales $115,000
Explanation:
Preparation of summary journal entries
1a. Dr Raw materials inventory $114,000
Cr Accounts payable $114,000
(Being to record raw materials purchased on account )
b(1) Dr Work in process inventory $45,500
Cr Raw materials inventory$45,500
(Being to Record the entry to assign costs of direct materials used)
b(2) Dr Factory overhead $20,400
Cr Raw materials inventory$20,400
(Being to record the entry for indirect materials)
c.Dr Work in process inventory 37,000
Dr Factory overhead 13,000
Cr Cash 50,000
(Being to Record the usage of direct and indirect labor, paid in cash)
d. Dr Factory overhead 9,125
Cr Cash 9,125
(Being to Record other actual overhead costs, paid in cash)
e. Dr Work in process inventory 45,500
Cr Factory overhead45,500
(Being to Record the entry to apply overhead)
f. Dr Finished goods inventory $80,500
Cr Work in process inventory$80,500
(Being to Record costs of jobs completed)
g(1) Dr Cost of goods sold$80,500
Cr Finished goods inventory $80,500
(Being to Record the cost of the jobs sold)
g(2) Dr Accounts receivable $115,000
Cr Sales $115,000
(Being to Record sales on account)
Various executive compensation plans have been employed to motivate managers to make decisions that maximize shareholder wealth. These include: a. cash bonuses based on length of service with the firm b. bonuses for resisting hostile takeovers c. requiring officers to own stock in the company d. large corporate staffs e. a, b, and c only
Answer:
e
Explanation:
If mangers are compensated based on their length of service, it would encourage mangers to stay longer for with the firm. This would reduce the rate of turnover of firms.
If mangers are compensated for resisting hostile takeovers, it would align the interest of the firm with their firm instead of with the interest of that of the firm planning the hostile takeover
If mangers own stock of the company, there would be incentive to take actions to increase the value of their stock because if the value of the stock increases, the wealth of managers also increases
The income statement of Sheffield Corp. for 2020 included the following items: Interest revenue $137000 Salaries and wages expense 218000 Insurance expense 23100 The following balances have been excerpted from Sheffield Corp.'s balance sheets:
December 31, 2014 December 31, 2013,
Interest receivable $18,200 $15,000
Salaries and wages Payable $17,800 $8,400
Prepaid Insurance $2,200 $3,000
The cash received for interest during 2014 was:____.
a. $121,000.
b. $102,800.
c. $117,800.
d. $124,200.
Answer:
$133,800
Explanation:
Calculation for The cash received for interest during 2014
Using this formula
2014 Cash received for interest=Interest revenue-2014 Interest receivable+2013 Interest receivable
Let plug in the formula
2014 Cash received for interest=$137,000-$18,200+ $15,000
2014 Cash received for interest=$133,800
Therefore The cash received for interest during 2014 was:$133,800
What is the Jpmorgan ceo leadership style and characters?
Determine the sequence of occupations at the site. Identify which trash pits go with which house cluster. You do not need to report the occupation periods of the canals or the temple, but they will help you reconstruct the house and trash pit sequence.
Answer:
The occupation at site are examined by superposition listed on horizontal map.
Explanation:
The archaeological site is examined to identify the composition of rock, soil and other relative layers. The composition at site can be examined by having a bird eye view look. The purpose is to associate six house clusters with its trash pit feature separately. The relative order of these houses and associated trash pit is reconstructed.
JANE’S EVALUATION
Paul Medwick is a commercial banker. In the past month, he has received loan applications from three entrepreneurs. All three have fledgling businesses with strong potential. However, Paul believes it is important to look at more than just the business itself; the individual also needs close scrutiny. The three entrepreneurs are (1) Robin Wood, owner of a small delicatessen located in the heart of a thriving business district; (2) Richard Trumpe, owner of a ten-minute oilchange-and-lube operation; and (3) Phil Hartack, owner of a bookstore that specializes in best sellers and cookbooks. Paul has had the bank’s outside consultant, Professor Jane Jackson, interview each of the three entrepreneurs. Jane has done a lot of work with entrepreneurs and—after a couple hours of discussion—usually can evaluate a person’s entrepreneurial qualities. In the past, Jane has recommended 87 people for loans, and only two of these ventures have failed. This success rate is much higher than that for commercial loans in general. Following is Jane’s evaluation of the three people she interviewed.
Characteristic Robin Wood Richard Trumpe Phil Hartack
Perseverance H M M
Drive to achieve M H M
Initiative M H M
Persistent problem-solving M M H
Tolerance for ambiguity L M H
Integrity and reliability H M H
Tolerance for failure H H H
Creativity and innovativeness M H M
Self-confidence H H H
Independence H H H
H = High; M = Medium; L = Low.
1. Which of the three applicants do you think comes closest to having the mind-set of an ideal entrepreneur? Why?
2. To which applicant would you recommend that the bank lend money? (Assume that each has asked for a loan of $150,000).
3. Can these three entrepreneurs do anything to improve their entrepreneurial profile and their chances for success?
Answer:
1. Richard Trumpe comes closest to having the mindset of an ideal entrepreneur. This is because of his high creativity and innovativeness.
2. I would recommend that the bank lend the $150,000 to Phil Hartack because of his high integrity and reliability.
3. The three entrepreneurs can improve their entrepreneurial profile and, therefore, their chances for entrepreneurial success by working to improve their weak points. For example, Robin Wood can improve his drive to achieve, problem-solving skills, creativity, and innovativeness. Richard Trumpe can also improve his problem-solving skills and work on his personal integrity and reliability by making it a point to live by the truth. His word should become his bond, henceforth. This has cost him the loan and made Phil preferable. Phil also needs to up his creativity and innovativeness game, which will rub off on his ability to take initiatives, drive to achieve, and perseverance.
Explanation:
a) Data and Calculations:
Characteristic Robin Wood Richard Trumpe Phil Hartack
Perseverance H M M
Drive to achieve M H M
Initiative M H M
Persistent problem-solving M M H
Tolerance for ambiguity L M H
Integrity and reliability H M H
Tolerance for failure H H H
Creativity and innovativeness M H M
Self-confidence H H H
Independence H H H
Scores H M L
Robin Wood 5 4 1
Richard Trumpe 6 4 0
Phil Hartack 6 4 0
H = High; M = Medium; L = Low.
1). The applicant who would come closest to possessing the mindset of an ideal entrepreneur would be:
Richard Trumpe
2). The applicant who would be recommended to the bank for lending the money would be:
Phil Hartack
3). The decision that could be made regarding the improvement in the entrepreneurial profile of the three entrepreneurs would be:
Yes.
Entrepreneurial Mindset
As per the details provided, Richard Trumpe is most likely to reach closest to having the ideal entrepreneurial mindset because he possesses a higher level of innovation and vision.Phil Hartack would be recommended to the bank for lending him money because his credibility and probity are quite high. There are probabilities of all the three to improve in terms of their entrepreneurial profile where they can enhance their low points and become more innovative, effective, productive, and efficient.Learn more about "Entrepreneur" here:
brainly.com/question/4910555
The goal of this exercise is to challenge your knowledge of the different managerial roles. Match each managerial role to the category in which it best fits.
1. Figurehead (Click to select)
2. Spokesperson (Click to select)
3. Leader (Click to select)
4. Resource Allocator (Click to select)
5. Disseminator (Click to select)
6. Disturbance Handler (Click to select)
7. Liaison (Click to select)
8. Entrepreneur (Click to select)
9. Monitor (Click to select)
10. Negotiator (Click to select)
Answer:
1) Interpersonal
2) Informational
3). Interpersonal
4). Decisional
5). Informational
6). Decisional
7)Interpersonal
8)Decisional
9)Decisional
10)Decisional
Explanation:
1. Figurehead [ Interpersonal]
2. Spokesperson [Informational]
3. Leader [Interpersonal]
4. Resource Allocator [ Decisional]
5. Disseminator [ Informational]
6. Disturbance Handler [. Decisional]
7. Liaison [Interpersonal]
8. Entrepreneur [Decisional]
9. Monitor [Decisional]
10. Negotiator [Decisional]
Managerial roles can be regarded as
specific behaviors which is been associated to different task in management. Managers utilize these
roles so that basic functions of management can be performed. These managerial role could be
✓informational roles
✓ interpersonal roles,
✓decisional roles.
According to Mintzberg, decisional roles is one of the essential role in management and it encompass entrepreneur as well as disturbance handle. Interpersonal roles are regarded as roles of having a grounded relationships between the workers and a manager.
At December 31, 2023, Olsen Company had 600,000 shares of common stock outstanding. On October 1, 2024, an additional 120,000 shares of common stock were issued. In addition, Olsen had $5,000,000 of 6% convertible bonds outstanding at December 31, 2023, which are convertible into 270,000 shares of common stock. No bonds were converted into common stock in 2024. The net income for the year ended December 31, 2024, was $1,500,000. Assuming the income tax rate was 30%, the diluted earnings per share for the year ended December 31, 2024, should be (rounded to the nearest cent):
Answer:
$1.9
Explanation:
Net income = $1,500,000 + $5,000,000*6%*(1-30%)
Net income = $1,500,000 + $210,000
Net income = $1,710,000
Number of shares = 600,000 + 120,000*3/12 + 270,000
Number of shares = 600,000 + 30,000 + 270,000
Number of shares = 900,000
Diluted earnings per share = Net income / Number of shares
Diluted earnings per share = $1,710,000/900,000
Diluted earnings per share = $1.9
plzz someone help me
which of the following is not an advantage of budgeting?
Explanation:
where are the options of the question
Answer:
wasting of money
Explanation:
because that's is disadvantages of budgeting
To build wealth is a gamble; the wealthy people are lucky and become rich overnight. True or false
This seems like a rather subjective question. Wealth is built over a lifetime with income. Inheritance is definitely one way to become wealthy, so I would say True
As a Marketing Manager of a Multinational Company Imran & Co., which will manufacture Detergent; draft a detailed Marketing Plan for the year 2020-21? Assuming that the Product is to be launched in Pakistan as a part of your Market Development Strategy?
Answer:
NZXCVJIGH80BGRG
Explanation:
Crawford Corporation incurred the following transactions.
1. Purchased raw materials on account $53,800.
2. Raw Materials of $36,500 were requisitioned to the factory. An analysis of the materials requisition slips indicated that $8,500 was classified as indirect materials.
3. Factory labor costs incurred were $61,900, of which $50,000 pertained to factory wages payable and $11,900 pertained to employer payroll taxes payable.
4. Time tickets indicated that $54,900 was direct labor and $7,000 was indirect labor.
5. Manufacturing overhead costs incurred on account were $82,300.
6. Depreciation on the company's office building was $9,000.
7. Manufacturing overhead was applied at the rate of 160% of direct labor cost.
8. Goods costing $96,600 were completed and transferred to finished goods.
9. Finished goods costing $79,400 to manufacture were sold on account for $106,800.
Required:
Journalize the transactions.
Answer:
Crawford Corporation
Journal Entries:
1. Debit Raw materials inventory $53,800
Credit Accounts payable $53,800
To record the purchase of raw materials on account.
2. Debit Work-in-Process $28,000
Debit Manufacturing overhead $8,500
Credit Raw materials inventory $36,500
To record the requisition of materials.
3. Debit Factory Wages $61,900
Credit Factory Wages Payable $50,000
Credit Employer Payroll Taxes Payable $11,900
To record the factory labor costs.
4. Debit Work-in-Process $54,900
Debit Manufacturing overhead $7,000
Credit Factory Wages $61,900
To record the direct and indirect labor costs.
5. Debit Manufacturing overheads $82,300
Credit Accounts payable $82,300
To record overheads incurred on account.
6. Debit Depreciation expense $9,000
Credit Accumulated depreciation -office building $9,000
To record depreciation expense.
7. Debit Work-in-Process $87,840
Credit Manufacturing overheads $87,840
To record overhead applied at the rate of 160% of direct labor cost.
8. Debit Finished Goods Inventory $96,600
Credit Work-in-Process $96,600
To record the transfer of goods to finished goods.
9. Debit Cost of Goods Sold $79,400
Credit Finished Goods Inventory $79,400
To record the cost of goods sold.
9. Debit Accounts Receivable $106,800
Credit Sales Revenue $106,800
To record the sale of goods on account.
Explanation:
Journal entries are used by Crawford Corporation to record its business transactions as they occur daily. They are the first records of business transactions in the accounting books. They show the accounts to be debited and the others to be credited.
During the month of March, Harley's Computer Services made purchases on account totaling $47,500. Also during the month of March, Harley was paid $14,000 by a customer for services to be provided in the future and paid $38,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $79,300, what is the balance in accounts payable at the end of March
Answer:
The balance in accounts payable at the end of March is $87,900
Explanation:
Accounts payable account shows the balance of the money owed by the business to the suppliers or service providers of the business against which the business received materials, products or services which is not paid at the time of receipt.
We can calculate the End of mArch balance of accounts payable of Harley's Computer Services as follow
Ending Balance = Beginning Balance + Purchases made during March - Payment Made during March
Where
Begining balance = $79,300
Purchases made during March = $47,500
Payment Made during March = $38,900
Pacing values in the formula
Ending Balance = $79,300 + $47,500 - $38,900
Ending Balance = $87,900
The payment of $14,000 made for the future services to be received. It will be classified as prepaid and advances.
Kurtulus Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below:
Beginning work in process inventory:
Units in beginning work in process inventory 700
Materials costs $7,100
Conversion costs $2,400
Percent complete with respect to materials 55%
Percent complete with respect to conversion 25%
Units started into production during the month 6,600
Units transferred to the next department during the month 5,800
Materials costs added during the month $110,200
Conversion costs added during the month $83,300
Ending work in process inventory:
Units in ending work in process inventory 1,500
Percent complete with respect to materials 70%
Percent complete with respect to conversion 55%
The total cost transferred from the first processing department to the next processing department during the month is closest to:_________--
a. $192,401
b. $174,348
c. $201,701
d. $217,391
Answer:
b. $174,348
Explanation:
Calculation for what The total cost transferred from the first processing department to the next processing department during the month is closest to
First step is to calculate Equivalent units of production
Units transferred to the next department 5800 5800
Ending work in process:
Materials: 1500 units × 70% 1050
Conversion: 1500 units × 55% 825
Equivalent units of production 6850 6625
Second step is to calculate Cost per equivalent unit
Materials Conversion
Cost of beginning work in process inventory $7100 $2400
Costs added during the period $110,200 83,300
Total cost (a)$117,300 $85,700
Equivalent units of production (b)6850 6625
Cost per equivalent unit (a) ÷ (b)$17.12 $12.94
Last step is to calculate Cost of units completed and transferred out
Material Conversion Total
Units completed and transferred out:
Units transferred to the next department (a) 5800 5800
Cost per equivalent unit (b)$ 17.12 $12.94
Cost of units completed and transferred out (a) × (b)$99,296 $75,052 $174,348
Total=$99,296+ $75,052
= $174,348
Therefore The total cost transferred from the first processing department to the next processing department during the month is closest to $174,348
Nature of Transactions Kristoff Walker operates his own catering service. Summary financial data for February are presented in equation form as follows. Each line designated by a number indicates the effect of a transaction on the equation. Each increase and decrease in owner's equity, except transaction (5), affects net income.
Assets = Liabilities + Owner's Equity - Kristoff Walker,
Cash + Supplies + Land = Accounts + Kristoff Walker, Drawing
Payable Capital
Bal. 27,600 3,600 69,000 7,500 92,700
1. +32,300 +32,300
2. -13,800 +13,800
3. -24,000 -24,000
4. +1,400 +1,400
5. -1,800 -1,800
6. -6,600 -6,600
7. -2,800 -2,800
Bal. 13,700 2,200 82,800 2,300 92,700 -1,800
Fill in the blank options for questions of a:
-Recognition of cost of supplies used
-Withdrawal of cash by owner
-Purchase of supplies on account
-Purchase of land for cash
-Payment of cash to creditors
-Payment of cash for expenses
-Provided catering service for cash
A. Select the description for transaction 1
Select the description for transaction 2
Select the description for transaction 3
Select the description for transaction 4
Select the description for transaction 5
Select the description for transaction 6
Select the description for transaction 7
B. What is the amount of the net decrease in cash during the month?
C. What is the amount of the net increase in owner's equity during the month?
D. What is the amount of the net income for the month?
E. How much of the net income for the month was retained in the business?
Answer:
A. Description for :
Transaction 1 - Provided catering service for cash
Transaction 2 - Purchase of land for cash
Transaction 3 - Payment of cash for expenses
Transaction 4 - Purchase of supplies on account
Transaction 5 - Withdrawal of cash by owner
Transaction 6 - Payment of cash to creditors
Transaction 7 - Recognition of cost of supplies used
B. The amount of the net decrease in cash during the month = 13,900
C. The amount of the net increase in owner's equity during the month = 3700
D. The amount of the net income for the month = 5500
E. The net income for the month was retained in the business = 3700
Explanation:
a)
Description for :
Transaction 1 - Provided catering service for cash
Transaction 2 - Purchase of land for cash
Transaction 3 - Payment of cash for expenses
Transaction 4 - Purchase of supplies on account
Transaction 5 - Withdrawal of cash by owner
Transaction 6 - Payment of cash to creditors
Transaction 7 - Recognition of cost of supplies used
b.)
Net decrease = Closing Balance - opening Balance
= 27,600 - 13,700
= 13,900
⇒The amount of the net decrease in cash during the month = 13,900
c.)
Net increase in owner's equity = ( Opening capital balance - Drawing + Income earned during the year - Expenses incurred during the year ) - Opening capital
⇒Net increase = ( 92,700 - 1800 + 32,300 - 26,800 ) - 92,700
= 96,400 - 92,700 = 3700
⇒The amount of the net increase in owner's equity during the month = 3700
d.)
Amount of the net income for the month = Total Income - Expenses
= 32,300 - 26,800
= 5500
⇒Amount of the net income for the month = 5500
e.)
Net income for the month was retained in the business = Net Income - Drawings
⇒Net income was retained in the business = 5500 - 1800
= 3700
⇒Net income for the month was retained in the business = 3700
Which of the following correctly describes a general ledger?
Group of answer choices
An index of all the financial accounts reported in the financial statements
A summary record of each separate asset, liability, owners' equity, revenue, expense, and dividend accounts.
A listing of all asset, liability, owners' equity, revenue, expense, and dividend accounts sorted according to its debit or credit balance.
The side-by-side presentation of the Balance Sheet, Income Statement, and Statement of Retained Earnings.
Answer:
A listing of all asset, liability, owners' equity, revenue, expense, and dividend accounts sorted according to its debit or credit balance.
Explanation:
A general ledger stores and summarizes all accounts a business operates. It is the source of financial information required to prepares financial statements.
The general ledger is a summary of a company bookkeeping system. It arranges or sorts the business accounts as the balance sheet order. Assets accounts appear first, then liability accounts, and lastly, the equity accounts.
A general ledger is a listing of all asset, liability, owners' equity, revenue, expense, and dividend accounts sorted according to its debit or credit balance. The third statement correctly describes a general ledger.
A general ledger records and summarises all of a company's accounts. It is the source of financial data used in the preparation of financial statements.
A company's book-keeping system is summarized in the general ledger. It organizes or sorts the business accounts in the order of the balance sheet. The asset accounts come first, followed by the liability accounts, and finally by the equity accounts.
Therefore, a general ledger is used to record all of a company's transactions.
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