Answer:
Pick-A-Pet, Inc
a. Classified Balance Sheet as of June 30, Year 3:
Assets
Current Assets:
Cash $1,182,600
Accounts Receivable 419,200 $1,601,800
Equipment 58,400
Software 118,500
Logo & Trademarks 421,600 $598,500
Total assets $2,200,300
Liabilities and Equity:
Current Liabilities:
Accounts Payable $ 349,200
Long-term Liabilities:
Long-term Notes Payable $418,900
Total liabilities $768,100
Equity:
Common Stock 962,100
Retained Earnings 470,100 $1,4322,200
Total liabilities + equity $2,200,300
b. Effects of the July transactions on the basic accounting equation:
Assets = Liabilities + Equity
1. Stockholders contribute $300,000 cash for additional ownership shares
Assets (Cash + $300,000) = Liabilities + Equity (Common Stock + $300,000)
2. Company borrows $150,000 in cash from a bank to buy new equipment by signing a formal agreement to repay the loan in 2 years.
Assets (Cash + $150,000) = Liabilities (Long-term Notes Payable + $150,000) + Equity
c. Journal Entries to record the July transactions:
1. Debit Cash $300,000
Credit Common Stock $300,000
To record the additional capital contribution by stockholders.
2. Debit Cash $150,000
Credit Long-term Notes Payable $150,000
To record the borrowing of cash from a bank, repayable in 2 years.
Explanation:
a) Data and Calculations:
Accounts Payable $ 349,200
Accounts Receivable 419,200
Cash 732,600
Common Stock 662,100
Equipment 58,400
Logo and Trademarks 421,600
Long-term Notes Payable 268,900
Retained Earnings 470,100
Software 118,500
July Year 3 Transactions and Effects on accounts:
Cash 732,600
Common Stock 300,000
Notes Payable 150,000
Cash 1,182,600
Common Stock 662,100
Cash 300,000
Common Stock 962,100
Long-term Notes Payable 268,900
Cash 150,000
Long-term Notes Payable 418,900
Modified account balances:
Cash 1,182,600
Accounts Receivable 419,200
Equipment 58,400
Software 118,500
Logo and Trademarks 421,600
Accounts Payable $ 349,200
Long-term Notes Payable 418,900
Common Stock 962,100
Retained Earnings 470,100
Following are the transactions of a new company called Pose-for-Pics
Aug.
1 Madison Harris, the owner, invested $6,500 cash and $33,500 of photography equipment in the company in exchange for como stock.
2 The company paid $2,100 cash for an insurance policy covering the next 24 months
5 The company purchased office supplies for $880 cash
20 The company received $3,331 cash in photography Tees earned.
31 The company paid $675 cash for August utilities.
Required:
1. Post the transactions to the T-accounts.
2 Use the amounts from the T-accounts in Requirement to prepare an August 31 trial balance for Pose for Pics.
Answer:
Pose-for-Pics
1. T-accounts:
Cash
Date Accounts Titles Debit Credit
Aug. 1 Common stock $6,500
Aug. 2 Prepaid Insurance $2,100
Aug. 5 Office supplies 880
Aug. 20 Photography Fees 3,331
Aug. 31 Utilities 675
Aug. 31 Balance $6,176
Common Stock
Date Accounts Titles Debit Credit
Aug. 1 Cash $6,500
Aug. 1 Photography Equipment 33,500
Aug. 31 Balance $40,000
Photography Equipment
Date Accounts Titles Debit Credit
Aug. 1 Common stock $33,500
Prepaid Insurance
Date Accounts Titles Debit Credit
Aug. 2 Cash $2,100
Office Supplies
Date Accounts Titles Debit Credit
Aug. 4 Cash $880
Photography Fees
Date Accounts Titles Debit Credit
Aug. 20 Cash $3,331
Utilities
Date Accounts Titles Debit Credit
Aug. 31 Cash $675
2. Pose-for-Pics
Trial Balance
As of August 31:
Accounts Titles Debit Credit
Cash $6,176
Common stock $40,000
Equipment 33,500
Prepaid Insurance 2,100
Office supplies 880
Photography Fees 3,331
Utilities expense 675
Totals $43,331 $43,331
Explanation:
T-accounts are the general ledger accounts where the transactions of Pose-for-Pics are summarized. From the T-accounts, the Trial Balance can be prepared to show the list of account balances from the general ledger. The Trial Balance forms the first basis for the preparation of financial statements after adjustments have been made for accruals, prepayments, deferred revenue, and depreciation expenses. The Trial Balance may also show that the accounts have been correctly posted with corresponding debit and credit entries.
Your perceived credibility determines how others receive and react to your communications. You will test your ability to identify actions that correspond with the three elements of credibility: competence, caring, and character. Match the action with the most appropriate area of credibility.
a. Following code of conduct
b. Doing what you say
c. Talking to customers
c. Talking to employees
d. Meeting deadlines
e. Encouraging openness
f. Gaining record of success
g. Sense ofaccountability
Answer:
Credibility
Matching the action with the most appropriate area of credibility:
Competence:
a. Following code of conduct
f. Gaining record of success
Character:
b. Doing what you say
d. Meeting deadlines
g. Sense of accountability
Caring:
c. Talking to customers
c. Talking to employees
e. Encouraging openness
Explanation:
Competence is the professional skills and abilities that one needs in order to accomplish specific tasks. It is developed by experience. Caring is the compassion that one displays in understanding the interests of others and connecting with them. Character is the reputation that one gains by being committed to high morals and values.
which is not an object to taxation?
person
business
transaction public property
which limitation of taxation is the concept of situs of taxation based?
territoriality
public purpose
internati comity
exemption of the government
Banks are like other businesses. While businesses sell services or physical things, banks sell money in the form of loans and credit cards. Banks earn their income in part on the interest they charge on loans. That interest is higher than the interest they pay on depositors' accounts. For example, if you deposit your money in a bank, it may pay you 2 percent interest. So for $100 of your money, it will pay you $2. Then let's say a bank customer wants to borrow $100. The bank might charge that person 10 percent interest on that loan, meaning the borrower would have to pay back $110 after a year. The bank will earn $10 on the $100 it loaned, and it only paid you $2 for that $100. It made a profit of $8.
Which statement summarizes the paragraph?
A
People who take out a $100 loan from the bank at a 10 percent interest rate will pay the bank an extra $10.
B
People who deposit $100 into their account can usually expect to earn 2 percent from their deposit, or $2.
C
Banks are businesses that make money by selling credit cards to people who pay interest on them.
D
Banks make money by charging a higher interest on loans than the interest they pay on depositors' accounts.
Answer:
D. Banks make money by charging a higher interest on loans than the interest they pay on depositors' accounts.
Explanation:
Commercials banks are intermediaries of credit. They connect the supply side and demand side of credit. Banks accept deposits and use them to create loans for other customers.
Interest earned from loans is the primary source of revenue for banks. Interest from loans is earned when banks charge higher interest on loans than they pay for deposits.
Under the transactions approach used in financial accounting, every transaction has a single effect upon each party engaging in it.
a. True
b. False
Answer:
Under the transactions approach used in financial accounting, every transaction has a single effect upon each party engaging in it.
b. False
Explanation:
Every transaction has double effect upon each party that is engaged in it. Instead, a business records each transaction to show that it affects the accounting equation of assets = liabilities + equity. This implies that every transaction that occurs must have an effect on the asset side and the liabilities + equity side. While one account will be receiving value, another account will be giving out the value for the same transaction. This effect helps to keep the equation in balance at all times.
If a Swiss chocolate firm purchases an American ice cream manufacturer, the American ice cream manufacturer becomes a:
Explanation:
subsidiaria de la empresa de chocolate (i am spanish
)
Information related to plant assets, natural resources, and intangibles at the end of 2020 for Concord Company is as follows: buildings $1,030,000, accumulated depreciation—buildings $653,000, goodwill $410,000, coal mine $496,000, and accumulated depletion—coal mine $108,000.
A.nswer and Explanation:
The preparation of the partial balance sheet is as follows;
Assets
Long term assets:
Plant, property & equipment
Coal mine $496,000
Less: Acc. depletion, coal mines -$108,000 $388,000
Buildings $1,030,000
Less: Acc. depreciation, buildings - $653,000 $377,000
Total Plant, property & equipment $765,000
Goodwill $410,000
Total long term assets $1,175,000
In January, Dieker Company requisitions raw materials for production as follows: Job 1 $950, Job 2 $1,460, Job 3 $710, and general factory use $610. During January, time tickets show that the factory labor of $6,800 was used as follows: Job 1 $2,300, Job 2 $1,800, Job 3 $1,590, and general factory use $1,110.
Required:
Prepare the job cost sheets for each of the three jobs.
Answer:
Cost of Job 1
Materials $ 950
Factory Labor $ 2300
General Factory:
Indirect material $ 610
Indirect labor $ 1110
Total $ 4970
Cost of Job 2
Materials $ 1460
Factory Labor $ 1800
General Factory:
Indirect material $ 610
Indirect labor $ 1110
Total $ 4980
Cost of Job 3
Materials $ 710
Factory Labor $ 1590
General Factory:
Indirect material $ 610
Indirect labor $ 1110
Total $ 4020
Explanation:
Preparation for the job cost sheets for each of the three jobs.
JOB COST SHEETS
Job1 Job2 Job 3
Materials $950 $ 1460 $710
Factory Labor $2300 $ 1800 $1590
General Factory
Indirect material $ 610 $ 610 $610
Indirect labor $ 1110 $ 1110 $1110
Total $4970 $4980 $4020
Cost of Job 1
Materials $ 950
Factory Labor $ 2300
General Factory:
Indirect material $ 610
Indirect labor $ 1110
Total $ 4970
Cost of Job 2
Materials $ 1460
Factory Labor $ 1800
General Factory:
Indirect material $ 610
Indirect labor $ 1110
Total $ 4980
Cost of Job 3
Materials $ 710
Factory Labor $ 1590
General Factory:
Indirect material $ 610
Indirect labor $ 1110
Total $ 4020
Therefore the job cost sheets for each of the three jobs will be:
Cost of Job 1
Materials $ 950
Factory Labor $ 2300
General Factory:
Indirect material $ 610
Indirect labor $ 1110
Total $ 4970
Cost of Job 2
Materials $ 1460
Factory Labor $ 1800
General Factory:
Indirect material $ 610
Indirect labor $ 1110
Total $ 4980
Cost of Job 3
Materials $ 710
Factory Labor $ 1590
General Factory:
Indirect material $ 610
Indirect labor $ 1110
Total $ 4020
Assume that in an isolated village each household specializes in the production of the good in which they enjoy a comparative advantage. It follows that each household specializes in the production of the good for which the opportunity cost of production is ___________.
Answer: low
Explanation:
When countries produce the goods that they have comparative advantage in, this implies that they will not produce the goods that they have the opportunity cost to be high.
In this case, they'll produce the products that they have low opportunity cost. The opportunity cost simply means the cost of what they'll forgo.
Nathan is a customer service agent for a small nutrition company. He was disabled in a car accident and relies on his wheelchair for mobility. One day the elevator he uses broke. For a week, his co-workers assisted him as the elevator was being assessed, but the repair was delayed. Several weeks later, Nathan continued to use the steep loading dock ramp. After repeated conversations with management, it did not seem they wanted to repair the elevator. It was becoming a physical strain on Nathan and it was affecting his work. If this persists, which government entity would be able to assist Nathan in exercising his employment rights
Answer:
EEOC - Equal Employment Opportunity Commission
Explanation:
EEOC protects employees with disabilities, Nathan would qualify for such protection due to the physical strain.
Nathan may be able to file a complaint with the Equal Employment Opportunity Commission (EEOC) if he believes that his employer has violated his rights under the Americans with Disabilities Act (ADA).
What action can be taken by the EEOC?Charges of discrimination against employers who are subject to the law may be investigated by the EEOC. Our responsibility in an inquiry is to objectively and accurately evaluate the charges' accusations before reaching a conclusion. If we discover that there has been discrimination, we will work to resolve the issue.
The ADA requires employers to provide reasonable accommodations to employees with disabilities, such as installing a functioning elevator or providing an alternative access route to work areas.
Nathan may also consider reaching out to his state's Department of Labor or a local advocacy group for people with disabilities to seek assistance. These organizations may be able to provide guidance and support in filing a complaint or pursuing legal action.
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When a business behaves in an ethical manner, it is known as:
Answer:
organisational loyalties
Explanation:
Business are behaving in a manner that they do not change their relationship with other businesses or with workers.
B. What the impact on XYZ's accounting equation in Maywhen it recorded the transaction as a debit to consultant expense for $10,000 and a credit to accounts payable for \$10,000
Answer:
The above entry would decrease stockholders' equity by $10,000 and increase the liabilities by $10,000.
Explanation:
Consultation expense is an expense and when the expense gets debited, it refers to expense being incurred which in turn decreases stockholders' equity. Accounts payable is a liability and crediting accounts payable increases the liability.
Identify which department has stewardship over the following journals, ledgers, and files.
a. Customer open order file
b. Sales journal
c. Journal voucher file
d. Cash receipts journal
e. Inventory subsidiary ledger
f. Accounts receivable subsidiary ledger
g. Sales history file
h. Shipping report file
i. Credit memo file
j. Sales order file
k. Closed sales order file
Answer:
a. Customer open order file ⇒ SALES ORDER DEPARTMENT
This department deals with customer orders so they open the customer open order file.
b. Sales journal ⇒ BILLING DEPARTMENT.
In order the know how much to bill customers, this department does the sales journal.
c. Journal voucher file ⇒ BILLING DEPARTMENT
Journal voucher file is derived from the sales journal so it also falls under the billing department.
d. Cash receipts journal ⇒ CASH RECEIPTS DEPARTMENT
Cash receipts department are in charge of cash transactions that involve receipts so they are in charge of making the relevant journal.
e. Inventory subsidiary ledger ⇒ INVENTORY CONTROL DEPARTMENT
f. Accounts receivable subsidiary ledger ⇒ ACCOUNT RECEIVABLE DEPARTMENT
As the department in charge of transactions related to the Account receivables, this department is in charge of the ledger that records these receivables.
g. Sales history file ⇒ SALES DEPARTMENT
h. Shipping report file ⇒ SHIPPING DEPARTMENT
The shipping report file shows details of goods shipped to customers and so this falls under the responsibility of the shipping department.
i. Credit memo file ⇒ CREDIT DEPARTMENT
j. Sales order file ⇒ SALES DEPARTMENT
k. Closed sales order file ⇒ SALES DEPARTMENT
The sales department is in charge of these last two because everything that has to do with sales falls under the Sales department except for when the sale is first ordered.
The department that has stewardship over the following journals, ledgers, and files will be:
a. Customer open order file - Sales order departmentb. Sales journal - Billing departmentc. Journal voucher file - Billing department.d. Cash receipts journal - Cash receipt department.e. Inventory subsidiary ledger - Inventory control department.f. Accounts receivable subsidiary ledger - Account receivable department.g. Sales history file - Sales departmenth. Shipping report file - Shipping department.i. Credit memo file - Credit departmentj. Sales order file - Sales departmentk. Closed sales order file - Sales department.It should be noted that the sales department is in charge of sales in the organization. The cash receipt department is in charge of cash transactions that have to do with receipts.
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What are three important characteristics for an entrepreneur to have?
(Check all of the boxes that apply)
Popular
Hardworking
Optimistic
Healthy
Witty
Disciplined
Answer:
HardworkingOptimisticDisciplinedExplanation:
An entrepreneur starts and operates a new business. An entrepreneur develops a business idea in their mind. They then source for all that is required to transform the idea into a successful business.
Entrepreneurs take risks by investing their resources, time, and energy in the business idea. They undertake the investment because they are convinced it will work. It takes hard work and sacrifices for the new business to be successful. An entrepreneur must focus on their business for it to grow.
Answer:
2 3 6
Explanation:
On June 10, Pais Company purchased $9,000 of merchandise from McGiver Company, terms 3/10, n/30. Pais Company pays the freight costs of $400 on June 11. Goods totaling $600 are returned to McGiver Company for credit on June 12. On June 19, Pais Company pays McGiver Company in full, less the purchase discount. Both companies use a perpetual inventory system.
Prepare separate entries for each transaction on the books of Pais Company.
Answer:
A. Books of Pais Company
June 10
Dr Merchandise inventory $9,000
Cr Accounts payable $9,000
June 11
Dr Merchandise inventory $400
Cr Cash $400
June 12
Dr Accounts payable $600
Cr Merchandise inventory $600
On June 19
Dr Account payable 8,400
Cr Cash 8,148
Cr Merchandise inventory 252
B. Books of McGiver Company
June 10
Dr Accounts receivable $9,000
Cr Sales $9,000
Dr Cost of Goods Sold $5,000
Cr Merchandise inventory $5,000
On June 11
No entry
On June 12
Dr Sales returns & allowances $600
Cr Accounts receivable $600
Dr Merchandise inventory $310
Cr Cost of Goods Sold $310
On June 19
Dr Cash 8,148
Dr Sales discounts 252
Cr Accounts receivable 8,400
Explanation:
A. Preparation of the entries on the books of Pais Company.
June 10
Dr Merchandise inventory $9,000
Cr Accounts payable $9,000
June 11
Dr Merchandise inventory $400
Cr Cash $400
June 12
Dr Accounts payable $600
Cr Merchandise inventory $600
On June 19
Dr Account payable 8,400
($9,000 - $600)
Cr Cash 8,148
(8,400 x 97%)
Cr Merchandise inventory 252
(8,400 x 3%)
B. Preparation of the entries on the books of McGiver Company
June 10
Dr Accounts receivable $9,000
Cr Sales $9,000
Dr Cost of Goods Sold $5,000
Cr Merchandise inventory $5,000
On June 11
No entry is needed in McGiver Company books
On June 12
Dr Sales returns & allowances $600
Cr Accounts receivable$600
Dr Merchandise inventory$310
Cr Cost of Goods Sold$310
On June 19
Dr Cash 8,148
(8,400 x 97%)
Dr Sales discounts 252
(8,400 x 3%)
Cr Accounts receivable 8,400
(8,148+252)
job satisfaction or organizational commitment Which do you think would be more strongly related to performance?
ISS policies must set rules for users, define consequences of violations, and minimize risk to the organization. There are typically five different types of documents in a policy framework: 1) Principles; 2) Policy; 3) Standard; 4) Procedure, and 5) Guideline
a. True
b. False
Answer:
b. False.
Explanation:
A business strategy sets the overall direction for a business firm or company because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan.
Issues specific standards (ISS) policies must set rules for users, define consequences of violations, and minimize risk to the organization. There are typically six (6) different types of documents in a policy framework:
1) Principles;
2) Policy;
3) Standard;
4) Procedure.
5) Guideline
6. Definitions.
QUESTION 6 of 10: Pricing your new product based on what you pay for the parts inside it is called: a) Demand-based pricing b) Cost-based pricing c) Competition-based pricing
Answer: Cost Based pricing
Explanation:
The issuance of common stock always decrease equity.
True
False?
At December 31, 2019, Skysong Corporation had the following stock outstanding. 10% cumulative preferred stock, $100 par, 108,966 shares $10,896,600 Common stock, $5 par, 4,044,060 shares 20,220,300 During 2020, Skysong did not issue any additional common stock. The following also occurred during 2020. Income from continuing operations before taxes $22,887,900 Discontinued operations (loss before taxes) $3,284,900 Preferred dividends declared $1,089,660 Common dividends declared $2,204,300 Effective tax rate 35 %
Compute earnings per share data as it should appear in the 2020 income statement of Skysong Corporation. (Round answers to 2 decimal places, e.g. 1.48.)
Answer:
Earnings per share from continuing operations is $3.41 per share.
Earnings per share from discontinued operations is -$0.53 per share.
Explanation:
The earnings per share data can be computed by preparing a partial income statment as follows:
Skysong Corporation
Income Statement (Partial)
As at December 31, 2019
Particulars Amount ($)
Continuing operations
Income from continuing operations before taxes 22,887,900
Taxes on continuing operations (22,887,900 * 35%) (8,010,765)
Income from continuing operations after taxes 14,877,135
Preferred dividends declared (1,089,660)
Income from continuing operations after pref. div. 13,787,475
Discontinued operations
Discontinued operations (loss before taxes) (3,284,900)
Tax benefit on discontinued oper. (3,284,900 * 35%) 1,149,715
Discontinued operations (loss after taxes) (2,135,185)
Earnings per share:
Continuing operations (13,787,475 / 4,044,060) 3.41
Discontinued operations (2,135,185 / 4,044,060) (0.53)
If the ending inventory in the previous period was understated $17,000 and the ending inventory in the current period was overstated $27,000. Which of the following is understated in the current period?
a. Owner's equity
b. Cost of goods sold
c. Net income
d. All the other answers are correct
Answer:
In the current period,
b. Cost of goods sold
Explanation:
With the current period's beginning inventory (or previous period's ending inventory) understated by $17,000 and the overstatement of the current period's ending inventory by $27,000, it implies that the Cost of goods sold is understated by $10,000. Once this cost is understated, the net income will be overstated, as well as the owner's equity (via the retained earnings).
What is the rate of return when 20 shares of Stock A purchased for \$30/share , are sold for $710? The commission on the sale is $6
Answer:
ROI=17.33%
Explanation:
the rate of return = Net gain/ initial investments x 100 %
Net gains = (selling price - commissions) - purchase price
Purchase price = 20 x $30 = $600
Selling price = 710
Commission = $6
ROI ={( 710 - 6) - 600}/ 600 x 100
ROI = 104/600 x 100
ROI= 0.173333 x 100
ROI=17.33%
Bill Company paid a previously unrecorded utility bill of $1,000 on January 31st for the month of January.
Which of the following is included in the journal entry on January 31st?
Group of answer choices
A DEBIT Utility Payable $1,000
A DEBIT Utility Expense $1,000
A CREDIT Prepaid Utility Expense $1,000
A CREDIT Utility Expense $1,000
A DEBIT Prepaid Utility Expense $1,000
A CREDIT Utility Payable $1,000
Answer:
A DEBIT Utility Expense $1,000
Explanation:
Utilities are expenses to a business. The unrecorded utility bill increases the amount of business expenses. As per the accounting principles, an increase in expenses is debited. The utility expenses account will be debited by $1000.
The difference between accounting exposure and translation exposure is that:______
a. translation is about going from one language to another, accounting is just about the numbers.
b. accounting exposure and translation exposure are the same thing.
c. hedging one always involves increasing the other.
d. hedging one might involve increasing the other.
Answer:
B.)accounting exposure and translation exposure are the same thing.
Explanation:
Accounting Exposure can also be regarded as also translation exposure, it take care of all accounting-derived changes that could arise in owner's equity. This Translation exposure do take place when a firm is a dominant of part of her equity or liabilities in a foreign currency.
An increase in demand and an increase in supply will lead to:_______
Answer:
increase in the equilibrium quantity
Explanation:
The equilibrium quantity for a product is defined as a point where the supply of a product is equal to the demand of that product. The demand curve as well as the supply curve have opposite trajectories and they eventually intersects creating an economic equilibrium and a equilibrium quantity.
Whenever there is an increase in the supply and an increase in the demand of a product, it will lead to the increase in the equilibrium quantity of the product.
Rent controls force landlords to price apartments below the equilibrium price level. An immediate effect is a shortage (excess demand) of apartments because the quantity of apartments demanded is greater than the quantity supplied at the regulated price.
When cities prevent landlords from charging market rents, which of the following are common long-run outcomes?
a. Black markets develop.
b. The quality of available rental housing units falls.
c. Landlords earn lower profits renting housing units, but the rent charged has no effect on either the quantity or quality of rental units.
d. Nonprice methods of rationing emerge.
Answer: b. The quality of available rental housing units falls.
d. Nonprice methods of rationing emerge.
Explanation:
Rent control is simply defined as a government program which involves placing a limit on the fee that can be charged by a landlord for the lease if his or her house. Rent control are usually put in place to make the cost of living affordable to the people especially the low income earners.
Based on the information given in the question, the common long-run outcomes include the quality of available rental housing units falls and also there'll be emergence of non price methods of rationing.
On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: Jan. 1 Sharon Matthews transferred cash from a personal bank account to an account to be used for the business, $29,000. 2 Paid rent on office and equipment for the month, $2,250. 3 Purchased supplies on account, $2,300. 4 Paid creditor on account, $825. 5 Earned fees, receiving cash, $15,660. 6 Paid automobile expenses (including rental charge) for month, $1,620, and miscellaneous expenses, $830. 7 Paid office salaries, $2,200. 8 Determined that the cost of supplies used was $1,350. 9 Withdrew cash for personal use, $2,800. Required: 1. Journalize entries for transactions Jan. 1 through 9. Refer to the Chart of Accounts for exact wording of account titles. 2. Post the journal entries to the T accounts, selecting the appropriate date to the left of each amount to identify the transactions. Determine the account balances, after all posting is complete. Accounts containing only a single entry do not need a balance. 3. Prepare an unadjusted trial balance as of January 31, 2019. 4. Determine the following: a. Amount of total revenue recorded in the ledger. b. Amount of total expenses recorded in the ledger. c. Amount of net income for January. 5. Determine the increase or decrease in owner’s equity for January.
Answer:
Tri-City Realty
1. Journal Entries
Date Accounts Titles Debit Credit
Jan. 1 Cash $29,000
Common stock $29,000
To record the transfer of cash for common stock.
Jan. 2 Rent expense $2,250
Cash $2,250
Jan. 3 Supplies $2,300
Accounts payable $2,300
To record purchase of supplies on account.
Jan. 4 Accounts payable $825
Cash $825
To record the payment on account.
Jan. 5 Cash $15,660
Fees Revenue $15,660
To record earned fees.
Jan. 6 Automobile Exp. $1,620
Miscellaneous exp. 830
Cash $2,450
To record the payment of automobile and miscellaneous expenses.
Jan. 7 Office Salaries $2,200
Cash $2,200
To record the payment of office salaries.
Jan. 8 Supplies Expense $1,350
Supplies $1,350
To record the cost of supplies used.
Jan. 9 Drawings $2,800
Cash $2,800
To record cash withdrawn for personal use.
2.T-Accounts
Cash
Date Accounts Titles Debit Credit
Jan. 1 Common stock $29,000
Jan. 2 Rent expense $2,250
Jan. 4 Accounts payable 825
Jan. 5 Fees Revenue 15,660
Jan. 6 Automobile expenses 1,620
Miscellaneous expenses 830
Jan. 7 Office salaries 2,200
Jan. 9 Drawings 2,800
Jan. 9 Balance $34,135
Totals $44,660 $44,660
Common Stock
Date Accounts Titles Debit Credit
Jan. 1 Cash $29,000
Rent Expense
Date Accounts Titles Debit Credit
Jan. 2 Cash $2,250
Supplies
Date Accounts Titles Debit Credit
Jan. 3 Accounts payable $2,300
Jan. 8 Supplies expense $1,350
Jan. 9 Balance $ 950
Totals $2,300 $2,300
Accounts Payable
Date Accounts Titles Debit Credit
Jan. 3 Supplies $2,300
Jan. 4 Cash $825
Jan. 9 Balance $1,475
Totals $2,300 $2,300
Fees Revenue
Date Accounts Titles Debit Credit
Jan. 5 Cash $15,660
Automobile Expenses
Date Accounts Titles Debit Credit
Jan. 6 Cash $1,620
Miscellaneous Expenses
Date Accounts Titles Debit Credit
Jan. 6 Cash $830
Office Salaries
Date Accounts Titles Debit Credit
Jan. 7 Cash $2,200
Supplies Expense
Date Accounts Titles Debit Credit
Jan. 8 Supplies $1,350
Drawings
Date Accounts Titles Debit Credit
Jan. 9 Cash $2,800
3. Unadjusted Trial Balance as of January 31, 2019:
Accounts Titles Debit Credit
Cash $34,135
Supplies 950
Common stock $29,000
Accounts payable 1,475
Fees Revenue 15,660
Rent expenses 2,250
Automobile expense 1,620
Miscellaneous expense 830
Office salaries 2,200
Supplies expense 1,350
Drawings 2,800
Totals $46,135 $46,135
4a. Amount of total revenue recorded in the ledger:
= $15,660
b. Amount of total expenses recorded in the ledger:
= $8,250
c. Amount of net income for January:
= $7,410
5. Increase or decrease in owner's equity for January:
= $4,610
Explanation:
a) Total expenses:
Rent expenses 2,250
Automobile expense 1,620
Miscellaneous expense 830
Office salaries 2,200
Supplies expense 1,350
Total $8,250
b) Net Income:
Fees Revenue $15,660
Total expenses 8,250
Net income $7,410
c) Increase in Equity:
Net income $7,410
Drawings (2,800)
Increase = $4,610
Grandma and Grandpa Generous had many children, but they have only one grandchild,Harold. Grandma and Grandpa would like to give him a gift of $5.43 million. Upon the transfer to Harold, for which taxes will Grandma and Grandpa Generoushave a current liability? Assume Grandma and Grandpa have exhausted their lifetime gifttax exemption
Answer:
Gift Tax GSTT
Explanation:
In such a scenario, Grandma and Grandpa Generoushave a current liability to the Gift Tax GSTT. This tax rate applies to Grandma and Grandpa Generous because the gift exceeds the limit per individual for gifting and because they have exhausted their lifetime gift-tax exemption. Meaning that they have to pay taxes on this gift of $5.43 million which according to the GSTT guidelines is a fixed rate of 40% of the gift that was given.
Your boss has asked you to calculate the profitability ratios of Cold Goose Metal Works, Inc. and make comments on its second-year performance as compared to its first-year performance. The following shows Cold Goose's income statement for the last two years. The company had assets of $7,050,000 in the first year and $11,277,600 in the second year. Common equity was equal to $3,750,000 in the first year, 100% of earnings were paid out as dividends in the first year, and the firm did not issue new stock in the second year.
Net Sales $3,810,000 $3,000,000
Operating costs less depreciation and amortization 1365000 1,267,500
Depreciation and amortization $190,500 $120,000
Total Operating Costs 1,555,500 1,387,500
Operating Income (or EBIT) $225,450 $1,612,500
Less: Interest 225,450 169,313
Earnings before taxes (EBT) $2,029,050 $1,443,187
Less: Taxes (40%) 821,620 577,275
Net Income $1,217,430 $865,912
Required:
Calculate the profitability ratios of Cold Goose Metal Works, Inc.
Answer:
Gross Margin % 59.2% 53.8%
compares gross profit to sales revenue
Ne income Margin 32.0% 28.9%
compares net income to sales revenue
ROA return on assets 10.8% 12.3%
net earnings relative to the company’s total assets.
ROE return on equity 32.5% 23.1%
net income relative to stockholders’ equity,
Explanation:
Net Sales 3,810,000 3,000,000
Operating costs less depreciation/amortization 1,365,000 1,267,500
Depreciation and amortization 190,500 120,000
Total Operating Costs 1,555,500 1,387,500
Operating Income (or EBIT) 2,254,500 1,612,500
Less: Interest 225,450 169,313
Earnings before taxes (EBT) 2,029,050 1,443,187
Less: Taxes (40%) 821,620 577,275
Net Income 1,217,430 865,912
assets 11,277,600 7,050,000
Equity 3,750,000 3,750,000
Gross Margin % 59.2% 53.8%
compares gross profit to sales revenue
Ne income Margin 32.0% 28.9%
compares net income to sales revenue
ROA return on assets 10.8% 12.3%
net earnings relative to the company’s total assets.
ROE return on equity 32.5% 23.1%
net income relative to stockholders’ equity,
It is recommended that you complete card inventory log sheets contained in each box of Emerald cards as the cards are distributed to clients.
a. True
b. False
Answer:
a. True
Explanation:
In the case when the card inventory is finished in terms of log sheet that contained in each and every box of Emerald cards so the same is allocated or distributed to clients
So as per the given situation, the given statement is true
Therefore the correct option is a
Thus, the incorrect option is b
So the same is relevant
