When Patey Pontoons issued 6% bonds on January 1, 2018, with a face amount of $600,000, the market yield for bonds of similar risk and maturity was 7%. The bonds mature December 31, 2021 (4 years). Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)
Required:
1. Determine the price of the bonds at January 1, 2018.
2. Prepare the journal entry to record their issuance by Patey on January 1, 2018.
3. Prepare an amortization schedule that determines interest at the effective rate each period.
4. Prepare the journal entry to record interest on June 30, 2018.
5. What is the amount related to the bonds that Patey will report in its balance sheet at December 31, 2018
Answers
Answer:
Follows are the solution to this question:
Explanation:
Some of the missing data is defined in the attached file, please find it.
Bond problem rates
Diagram values are based on the following:
[tex]N = 4\times 2 \\\\[/tex]
[tex]= 8 \ Years \\[/tex]
[tex]i = 10.00 \% \times \frac{1}{2} \\\\[/tex]
[tex]= 5.00 \% \\[/tex]
[tex]\left\begin{array}{ccc} Cash \ Flow&\ \ \ \ \ \ \ Table \ Value \times Amount& \ \ \ \ \ \ \ \ = Present \ Value\\ Principal &0.676839 \times \$ 600,000& =\$ 406,104 \\ Semi-annual \ interest& 6.463213 \times \$ 18,000 & =\$ 116,337\end{array}\right \\[/tex]
Bond issuance price
Timetable for bond amortization:
please find the attachment.
Related Questions
You buy a house for $299,000.
If you make a 20% down payment, find the value of the
a. Down payment $ 59800
If you take out a loan for the remainder of the house, find the
b. Loan amount $ 239200
Question 2
How much will your principal and interest payment be per month if you take out a 30-
year loan with an interest rate of 4.25%.
Question 3
How much would you pay in total per month for the 30-year loan if you pay $3200/year
in taxes, $1050/year in insurance and $28/month for the homeowner's association?
Question 4
How much of the first payment for the 30-year loan is interest?
Question 5
How much of the first payment for the 30-year loan is principal?
Question 6
How much in total will you pay for the 30-year loan?
Question 7
How much will you pay in interest for the 30-year loan?
Answers
Answer:
the answer is b
Explanation:
i worked it out
Maury and Bev have saved all their lives and they have been able to pay off their mortgage on their home. Bev is getting elderly and frail and Maury needs to put her into a nursing home where they can give her round-the-clock care. Maury intends to finance this arrangement by getting a loan where the lender makes payments to the homeowner each month, based on accumulated equity. What type of loan does Maury want to get?
Answers
Answer:
A reverse mortgage
Explanation:
A reverse mortgage is a loan type available to senior citizens above the age of 62. This loan type allows the elderly to convert part of their home equity into cash without selling the house. Once a bank value home, it offers the loan against the home value. The loan amount is dispersed as a lump sum or fixed monthly payments. The elderly do not have to pay back the loan. The bank recover its money upon death or relocation.
Maury should get a reverse mortgage loan. He won't have to repay the loan but will be getting monthly payments to support Bev's care.
SNC is considering evaluating the payment profile of its customer base, especially focusing on customers who are chronically delinquent in paying invoices. Super Sports Centers-a national, mall-based, upscale fitness network and a key SNC customer (accounting for 20% of SNC's overall sales)-routinely takes almost 200 days to pay its invoices. That far exceeds the 90-day average collection period for SNC's other customers. If SNC drops Super Sports Centers from its customer base, sales will decrease by $2 million. However, the cash-flow measure of days sales outstanding (DSO) will quickly improve. What would you like to do about this opportunity?
2013 2014 2015 Post 2015
Incremental Summary
Income Statement
($ in thousands)
Sales -$2,000 -$2,000 -$2,000 -$2,000
Cost of Sales -$1,870 -$1,870 -$1,870 -$1,870
EBIT -$130 -$130 -$130 -$130
Incremental Balance Sheet
($ in thousands)
Accounts Receivable -$1,096 -$1,096 -$1,096 -$1,096
Inventories -$461 -$461 -$461 -$461
Accounts Payable -$210 -$210 -$210 -$210
Answers
Answer:
I would decline the proposal to drop Super Sports Centers.
Explanation:
In order to be able to accept or decline dropping SSC as a customer we must first calculate the cost of being paid after 200 days.
If you analyze it from an accounting point of view, dropping SSC will decrease your operating profits by $130,000 and that might result in your firm not being able to make a profit anymore.
In my opinion, the cost analysis is not complete because in order to calculate EBIT your are simply subtracting COGS from revenue (which is correct but incomplete). When you make important business decisions, you must determine which is the least of evils. Is reducing your DSO so important that you will risk going bankrupt? How much does financing SSC costs? Since SCC takes so long to pay, you should probably record the present value of the sale (similar to a non-interest bearing note).
You must also remember that if your total sales decrease by 20%, your COGS will increase since fixed costs per unit will increase. Probably the best way to understand this is to analyze the situation like a special order sale. SNC should probably calculate their manufacturing (or retailing) costs without SSC and that way they will be able to determine the real advantage or disadvantage of having SSC as a client.
If the required rate of return on a bond (rd) is greater than its coupon interest rate and will remain above that rate, then the market value of the bond will always be below its par value until the bond matures, at which time its market value will equal its par value.
a. True
b. False
Answers
Answer:
True
Explanation:
until the bond matures the market value of the bond will always be below its par value. Especially if the required rate of return on a bond (rd) is greater than its coupon interest rate.
Hence the statement is very true.
During the course of your examination of the financial statements of the Hales Corporation for the year ended December 31, 2021, you discover the following:
a. An insurance policy covering three years was purchased on January 1, 2021, for $6,600. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item.
b. During 2021, the company received a $850 cash advance from a customer for merchandise to be manufactured and shipped in 2022. The $850 was credited to sales revenue. No entry was recorded for the cost of merchandise.
c. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $900 were on hand at December 31.
d. Hales borrowed $25,000 from a local bank on October 1, 2021. Principal and interest at 12% will be paid on September 30, 2022. No accrual was recorded for interest.
e. Net income reported in the 2021 income statement is $40,000 before reflecting any of the above items.
Required:
Determine the proper amount of net income for 2021.
Answers
Answer:
adjusting entries:
a. An insurance policy covering three years was purchased on January 1, 2021, for $6,600. The entire amount was debited to insurance expense and no adjusting entry was recorded for this item.
Dr Prepaid insurance 4,000
Cr Insurance expense 4,000
b. During 2021, the company received a $850 cash advance from a customer for merchandise to be manufactured and shipped in 2022. The $850 was credited to sales revenue. No entry was recorded for the cost of merchandise.
Dr Sales revenue 850
Cr Unearned revenue 850
c. There were no supplies listed in the balance sheet under assets. However, you discover that supplies costing $900 were on hand at December 31.
Dr Supplies 900
Cr Supplies expense 900
d. Hales borrowed $25,000 from a local bank on October 1, 2021. Principal and interest at 12% will be paid on September 30, 2022. No accrual was recorded for interest.
Dr Interest expense 750
Cr Interest payable 750
e. Net income reported in the 2021 income statement is $40,000 before reflecting any of the above items.
net income after adjustments = $40,000 + $4,000 - $850 + $900 - $750 = $43,300
What type of method records customers’ online usage?
A.
web analytics
B.
clustering
C.
RFM
D.
loyalty cards
Answers
Answer:
The answer is A: Web Analytics
Explanation:
Web analytics help determine a visitor's location and track the products the visitor has selected.
Denzel Brooks opened a Web consulting business called Venture Consultants and completed the following transactions in March.
March 1 Brooks invested $175,000 cash along with $27,000 in office equipment in the company in exchange for common stock.
2 The company prepaid $9,000 cash for six months' rent for an office. Hint: Debit Prepaid Rent for $9,000.
3 The company made credit purchases of office equipment for $5,100 and office supplies for $1,700. Payment is due within 10 days.
6 The company completed services for a client and immediately received $4,000 cash.
9 The company completed a $10,400 project for a client, who must pay within 30 days.
12 The company paid $6,800 cash to settle the account payable created on March 3.
19 The company paid $7,800 cash for the premium on a 12-month insurance policy. Hint: Debit Prepaid Insurance for $7,800.
22 The company received $3,500 cash as partial payment for the work completed on March 9.
25 The company completed work for another client for $4,980 on credit.
29 The company paid a $6,400 cash dividend.
30 The company purchased $1,000 of additional office supplies on credit.
31 The company paid $900 cash for this month's utility bill.
Required:
1. Prepare general journal entries to record these transactions using the following titles: Cash; Accounts Receivable; Office Supplies; Prepaid Insurance; Prepaid Rent; Office Services Revenue; and Utilities Expense.
2. Prepare a trial balance as of the end of March.
Answers
Answer:
Venture Consultants
General Journal
March 1
Cash $175,000 (debit)
Office equipment $27,000 (debit)
Common Stock $202,000 (credit)
March 2
Prepaid Rent $9,000 (debit)
Cash $9,000 (credit)
March 3
Office equipment $5,100 (debit)
Office supplies $1,700 (debit)
Accounts Payable $6,800 (credit)
March 6
Cash $4,000 (debit)
Service Revenue $4,000 (credit)
March 9
Accounts Receivable $10,400 (credit)
Service Revenue $10,400 (credit)
March 12
Accounts Payable $6,800 (debit)
Cash $6,800 (credit)
March 19
Prepaid Insurance $7,800 (debit)
Cash $7,800 (credit)
March 22
Cash $3,500 (debit)
Accounts Receivable $3,500 (credit)
March 25
Accounts Receivable $4,980 (debit)
Service Revenue $4,980 (credit)
March 29
Dividends $6,400 (debit)
Cash $6,400 (credit)
March 30
Office supplies $1,000 (credit)
Accounts Payable $1,000 (credit)
March 31
Utilities $900 (debit)
Cash $900 (credit)
Venture Consultants
Trial balance as March 31.
Debit Credit
Cash $151,600
Office equipment $31,100
Common Stock $202,000
Prepaid Rent $9,000
Office supplies $2,700
Accounts Payable $1,000
Service Revenue $19,380
Accounts Receivable $11,880
Prepaid Insurance $7,800
Dividends $6,400
Utilities $900
Total $222,380 $222,380
Explanation:
Determine Account Balances at the end of the month as follows :
Cash : $175,000 - $9,000 + $4,000 - $6,800 - $7,800 + $3,500 - $6,400 - $900 = $151,600
Office equipment : $27,000 + $5,100 = $31,100
Common Stock : $202,000
Prepaid Rent: $9,000
Office supplies : $1,700 + $1,000 = $2,700
Accounts Payable : $6,800 - $6,800 + $1,000 = $1,000
Service Revenue : $4,000 + $10,400 + $4,980 = $19,380
Accounts Receivable: $10,400 - $3,500 + $4,980 = $11,880
Prepaid Insurance: $7,800
Dividends: $6,400
Utilities: $900
A dairy producer has determined that almost all grocery consumers are potential customers for its products. Which type of marketing strategy should the
company use?
Answers
Answer:
undifferentiated
Explanation:
Branson paid $566,700 cash for all of the outstanding common stock of Wolfpack, Inc., on January 1, 2017. On that date, the subsidiary had a book value of $411,000 (common stock of $200,000 and retained earnings of $211,000), although various unrecorded royalty agreements (10-year remaining life) were assessed at a $136,000 fair value. Any remaining excess fair value was considered goodwill. In negotiating the acquisition price, Branson also promised to pay Wolfpack’s former owners an additional $59,000 if Wolfpack’s income exceeded $130,000 total over the first two years after the acquisition. At the acquisition date, Branson estimated the probability-adjusted present value of this contingent consideration at $51,800. On December 31, 2017, based on Wolfpack’s earnings to date, Branson increased the value of the contingency to $59,200.
During the subsequent two years, Wolfpack reported the following amounts for income and dividends:
Net Income Dividends Declared
2017 $78,000 $15,000
2018 88,000 25,000
In keeping with the original acquisition agreement, on December 31, 2018, Branson paid the additional $74,000 performance fee to Wolfpack’s previous owners.
Prepare each of the following:
a. Branson’s entry to record the acquisition of the shares of its Wolfpack subsidiary.
b. Branson’s entries at the end of 2017 and 2018 to adjust its contingent performance obligation for changes in fair value and the December 31, 2018, payment.
c. Prepare consolidation worksheet entries as of December 31, 2018, assuming that Branson has applied the equity method.
d. Prepare consolidation worksheet entries as of December 31, 2018, assuming that Branson has applied the initial value method.
Answers
Answer:
a.
Dr Investment in Wolfpack, Inc. 618,500
Cr Contingent performance obligation 51,800
Cr Cash 566,700
b.
12/31/17
Dr Loss from increase in contingent performance obligation 7,400
Cr Contingent performance obligation 7,400
12/31/17
Dr Loss from increase in contingent performance obligation 200
Cr Contingent performance obligation 200
12/31/18
Dr Contingent performance obligation 59,000
Cr Cash 59,000
c.
Equity Method
Dr Common stock- Wolfpack 200,000
Dr Retained earnings-Wolfpack 274,000
Cr Investment in Wolfpack 474,000
Dr Royalty agreements 122,400
Dr Goodwill 71,500
Cr Investment in Wolfpack 193,900
Dr Equity earnings of Wolfpack 74,400
Cr Investment in Wolfpack 74,400
Dr Investment in Wolfpack 25,000
Cr Dividends paid 25,000
Dr Amortization expense 13,600
Cr Royalty agreements 13,600
d.
Initial Value Method
Dr Investment in Wolfpack 59,400
Cr Retained earnings-Branson 59,400
Dr Common stock- Wolfpack 200,000
Dr Retained earnings-Wolfpack 284,000
Cr Investment in Wolfpack 484,000
Dr Royalty agreements 122,400
Dr Goodwill 71,500
Cr Investment in Wolfpack 193,900
Dr Dividend income 25,000
Cr Dividends paid 25,000
Dr Amortization expense 13,600
Cr Royalty agreements 13,600
Explanation:
a. Preparation of the Journal entry to record the acquisition of the shares of its Wolfpack subsidiary
Dr Investment in Wolfpack, Inc. 618,500
Cr Contingent performance obligation 51,800
Cr Cash 566,700
(566,700+51,800)
b. Preparation of the Journal entries at the end of 2017 and 2018 and the December 31, 2018, payment.
12/31/17
Dr Loss from increase in contingent performance obligation 7,400
(59,200 - 51,800)
Cr Contingent performance obligation 7,400
12/31/17
Dr Loss from increase in contingent performance obligation 200
(59,000 - 59,200)
Cr Contingent performance obligation 200
12/31/18
Dr Contingent performance obligation 59,000
Cr Cash 59,000
c. Preparation of consolidation worksheet journal entries as of December 31, 2018
Equity Method
Dr Common stock- Wolfpack 200,000
Dr Retained earnings-Wolfpack 274,000
(211,000+ (78,000 - 15,000)
Cr Investment in Wolfpack 474,000 (274,000+200,000)
Dr Royalty agreements 122,400
(136,000 - 13,600)
(136,000/10 years=13,600)
Dr Goodwill 71,500
( 618,500- 411,000 - 136,000)
Cr Investment in Wolfpack 193,900
(122,400+71,500)
Dr Equity earnings of Wolfpack 74,400
(88,000 - 13,600)
Cr Investment in Wolfpack 74,400
Dr Investment in Wolfpack 25,000
Cr Dividends paid 25,000
Dr Amortization expense 13,600
(136,000/10 years)
Cr Royalty agreements 13,600
d. Preparation of consolidation worksheet journal entries as of December 31, 2018,
Initial Value Method
Dr Investment in Wolfpack 59,400
(88,000-15,000-13,600)
Cr Retained earnings-Branson 59,400
Dr Common stock- Wolfpack 200,000
Dr Retained earnings-Wolfpack 284,000
(211,000+ (88,000 - 15,000)
Cr Investment in Wolfpack 484,000
(284,000+200,000)
Dr Royalty agreements 122,400
(136,000 - 13,600)
Dr Goodwill 71,500
( 618,500 - 411,000 - 136,000)
Cr Investment in Wolfpack 193,900
Dr Dividend income 25,000
Cr Dividends paid 25,000
Dr Amortization expense 13,600
Cr Royalty agreements 13,600
Let be the damage incurred (in $) in a certain type of accident during a given year. Possible values are , , , and , with probabilities , , , and , respectively. A particular company offers a deductible policy. If the company wishes its expected profit to be , what premium amount should it charge?
Answers
Full question attached
Answer and Explanation:
Given probability of damages 0, 1000, 5000, 10000 = 0.8, 0.1, 0.08, 0.02 respectively
Also given that company offers a $500 deductible policy
To find premium amount charged
Equation could be given by
A=X+100 where A is premium charged, X is damage incurred
Substituting 0
A=0+100=100
Substituting 1000
A=1000-500+100=600
Substituting 5000
A=5000-500+100=4600
Substituting 10000
A=10000-500+100=9600
premium amount to be charged
=0.8*100+0.1*600+0.08*4600+0.02*9600 = $700
JLR Enterprises provides consulting services throughout California and uses job-order costing system to accumulate the cost of client projects. Traceable costs are charged directly to individual clients; in contrast, other costs incurred by JLR, but not identifiable with specific clients, are charged to jobs using a predetermined overhead application rate. Clients are billed for directly chargeable costs, overhead and markup. JLR's director of cost management, Brent Dean, anticipates the following costs for the upcoming year. Cost Percentage of Cost Directly Traceable to ClientsProfessional staff salaries ………………………….$2,500,000 ………………………………80%Administrative support staff ………………………. 300,000 ……………………………… 60%Travel ……………………………………………… 250,000 ………………………… 90%Photocopying ………………………………………….50,000 ……………………………… 90%Other operating costs ………………………………. 100,000 ……………………………… 50%Total ……………………………………………… $3,200,000 …………………The firm’s partners desire to make a $640,000 profit for the firm and plan to add a percentage markup on total cost to achieve that figure.On March 10, JLR completed work on a project for Martin Manufacturing. The following costs were incurred: professional staff salaries, $41,000; administrative support staff, $2,600; travel, $4,500; photocopying, $500; and other operating costs, $1,400.Required:Question 1. Determine JLR’s total traceable costs for the upcoming year and the firm’s total anticipated overhead.Question 2. Calculate the predetermined overhead rate. The rate is based on total costs traceable to client jobs.Question 3. What percentage of cost will JLR add to each job to achieve its profit target?Question 4. Determine the total cost of the Martin Manufacturing project. How much would Martin be billed for services performed?Question 5. Notice that only 50 percent of JLR’s other operating cost is directly traceable to specific client projects. Cite several costs that would be included in this category and difficult to trace to clients.Question 6. Notice that 80 percent of the professional staff cost is directly traceable to specific client projects. Cite several reasons that would explain why this figure isn’t 100 percent.
Answers
Find full question attached
Answer and Explanation:
Answer and explanation attached
A customer, age 45, invests $100,000 in a variable annuity contract. It imposes an 8% charge if the contract is surrendered within the 1st 8 years; and a 4% charge if the contract is surrendered in years 9 and 10. Thereafter, there is no surrender charge. The contract has a Guaranteed Minimum Income Benefit (GMIB) that promises to annuitize the account at a value of $180,000 starting at age 60. After holding the contract for 5 years, the separate account has a net asset value of $120,000. The insurance company makes an offer to the client to buy back the contract at $121,000 with no surrender charges imposed. Assuming that the client's investment objectives have not changed, the best advice to the client is to:_______.
Answers
Answer:
the client should wait 10 more years until the contract is worth $180,000 since he will earn a slightly higher interest rate
Explanation:
we must determine the effective interest earned by the client if he accepts the company's proposal:
future value = present value x (1 + r)ⁿ
121,000 = 100,000 x (1 + r)⁵
(1 + r)⁵ = 121,000 / 100,000 = 1.21
⁵√(1 + r)⁵ = ⁵√1.21
1 + r = 1.0389
r = 0.0389 = 3.89%
if the client waits 10 more years until he is able to annuitize the account, he should earn:
180,000 = 100,000 x (1 + r)¹⁵
(1 + r)¹⁵ = 180,000 / 100,000 = 1.80
¹⁵√(1 + r)¹⁵ = ¹⁵√1.80
1 + r = 1.03996
r = 0.03996 = 4%
West Virginia has one of the highest divorce rates in the nation, with an annual rate of approximately 5 divorces per 1000 people (Centers for Disease Control and Prevention website, January 12, 2012). The Marital Counseling Center, Inc. (MCC) thinks that the high divorce rate in the state may require them to hire additional staff. Working with a consultant, the management of MCC has developed the following probability distribution for x 5 the number of new clients for marriage counseling for the next year
x f(x)
10 .05
20 .10
30 .10
40 .20
50 .35
60 .20
a. Is this probability distribution valid?
A. Yes
B. No
Explain.
f(x) greater than or equal to 0less than or equal to 0greater than or equal to 1less than or equal to?
f(x) equal to 1not equal to 1greater than 1less than 1Item 3
b. What is the probability MCC will obtain more than 30 new clients (to 2 decimals)?
c. What is the probability MCC will obtain fewer than 20 new clients(to 2 decimals)?
d. Compute the expected value and variance of x.
Expected value clients per year
Variance squared clients per year
Answers
Answer:
Kindly check explanation
Explanation:
Given the data:
x___ f(x)
10__ 0.05
20__0.10
30__0.10
40__0.20
50__0.35
60__0.20
a. Is this probability distribution valid?
Yes
Σf(x) = (0.05 + 0.10 + 0.10 + 0.20 + 0.35 + 0.20) = 1
0≤f(x)≤1
b. What is the probability MCC will obtain more than 30 new clients
X = 40 + x = 50 + x = 60
0.20 + 0.35 + 0.20 = 0.75
c. What is the probability MCC will obtain fewer than 20 new clients
x = 10
f(x) = f(10) = 0.05
d)Compute the expected value and variance of x.
Expected value (E(x)) :
Σ(x * f(x))
= (10*0.05) + (20*0.1) + (30*0.1) + (40*0.2) + (50*0.35) + (60*0.2)
= 43
Σ(x * E(x))² * f(x)
= (10 - 43)^2 * 0.05 + (20 - 43)^2 * 0.1 + (30 - 43)^2 * 0.1 + (40 - 43)^2 * 0.2+ (50 - 43)^2 * 0.35 + (60 - 43)^2 * 0.2
= 201
Nix’It Company’s ledger on July 31, its fiscal year-end, includes the following selected accounts that have normal balances (Nix’It uses the perpetual inventory system). Merchandise inventory $ 44,800 Sales returns and allowances $ 5,100 Retained earnings 129,300 Cost of goods sold 109,200 Dividends 7,000 Depreciation expense 11,700 Sales 161,600 Salaries expense 39,500 Sales discounts 4,300 Miscellaneous expenses 5,000 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $42,950.Prepare journal entries to close the balances in temporary revenue and expense accounts. Remember to consider the entry for shrinkage.
Answers
Answer and Explanation:
The Journal entries are shown below:-
1. Sales Dr, $161,600
To Income summary $161,600
(Being To close a temporary account with credit balances is recorded)
2. Income summary Dr, $176,650
To Sales discount $4,300
To Sales return and allowance $5,100
To Cost of good sold $111,050
To Depreciation expenses $11,700
To Salaries expenses $39,500
To Miscellaneous expenses $5,000
(Being to close a temporary account with a debit balance is recorded)
Working note:-
shrinkage based on physical count = $44,800 - $42,950
= $1,850
Cost of good sold = $109,200 + $1,850
= $111,050
100 POINTS PLZ HELP
Career and Technical Student Organizations: Tutorial
Choosing a Professional Organization
This activity will help you meet these educational goals:
Content Standards— You will research and choose a professional organization for your chosen career path.
Inquiry—You will conduct online research in which you will collect information and communicate your results in written form.
21st Century Skills — You will use critical-thinking and problem-solving skills.
Directions
Read the instructions for this self-checked activity. Type in your response to each question, and check your answers. At the end of the activity, write a brief evaluation of your work.
Activity
Identify three professional organizations for your chosen career via Internet research. Describe the membership requirements, as well as any certifications that the organization might offer. Why would you join the organization? What are the benefits of joining it? What are the drawbacks? Do you have to get any certifications? Identify the one organization that you believe would be the best for a professional entering the field in that chosen career cluster, and explain why.
Answers
Answer:
Hydrologist
Architect
Naval architect
Architectural or civil drafter
Materials lab and supply technician
Explanation:
Answer:
PLATO/edmentum sample answer :)
Explanation:
I have conducted an online research and identified three professional organizations for my chosen career path of finance and insurance. The organizations are as follows.
International Cost Estimating and Analysis Association (ICEAA): This association is a non-profit organization that has not only national chapters but also international ones. It fosters the professional growth of its members and has open membership for students, professionals, and government employees. It offers a certification program that could train you to become a Certified Cost Estimator/Analyst. This certification program consists of two parts. However, one needs five years of cost experience and a bachelor’s degree. A benefit of joining this program is that members can get international exposure because of the presence of international chapters.
International Association of Insurance Professionals: This association provides a platform for people who want to establish a career in insurance. This professional association is open to all individuals in the insurance and risk management industries. It offers various programs for entry-level professionals and for those who want to continue their education. One of the most popular certifications it offers is the Certified Leadership Program (CLP). This program has four modules, with papers ranging from strategic planning to self-leadership. The benefits of joining this organization are that it provides mentoring opportunities, has various educational programs and certifications, and—most important—offers partnerships with other business organizations that could prove beneficial in the long run.
Government Finance Officers Association (GFOA): This organization has an open membership for those moving toward government financial management. It has comprehensive resources and updates its members on accounting standards such as GAAP and the Code of Professional Ethics. The Certified Public Finance Officers Program is the certification that GFOA offers. This self-study program tests your knowledge of government finance. It is a series of five examinations that receives technical support from Radford University. The benefit of joining this organization is that it provides internships and scholarships for students. Because of this benefit, I think GFOA is the best organization for providing guidance and support to students and professionals entering the Finance career cluster.
Hi, Sierra,
1. As your CPA, I'm happy to respond to your request for clarification of the tax status of profits from eBay.
2. Or one of the other online sellers such as Etsy, Amazon, and Bonanza.
3. As you are probably already aware, you can use eBay or one of the other sellers to clean out your closets or to run a small business.
4. Tax liabilities should definitely be clarified.
5. Although no clear line separates fun from profit or a hobby from a business.
6. One thing is certain: the IRS taxes all income.
7. A number of factors will help you determine whether your hobby is a business.
8. To use eBay safely, the following questions should be considered:
9. Do you run the operation in a businesslike manner?
10. That is, do you keep records, is your profit and loss tracked, and how about keeping a separate checking account?
11. Do you devote considerable time and effort to your selling?
12. If you spend eight or more hours a day trading on eBay.
13. The IRS would tend to think you are in a business.
14. Some people depend on the income from their eBay activities for their livelihood.
15. Do you?
16. Are you selling items for more than they cost you?
17. If you spend $5 for a garage sale vase and sell it for $50.
18. The IRS would probably consider this a business transaction.
19. All profits are taxable.
20. Even for eBay sellers who are just playing around.
21. If you wish to discuss this further, please call me at 213-456-8901. Justin Corona
Answers
Answer:
Question requires that you find five sentence fragments, one dangling modifier, one passive-voice sentence, and one parallelism fault.
Sentence Fragment
A sentence fragment is so because it is either missing a subject, or a verb, and/ or a complete thought. It is therefore an incomplete sentence.
5. Although no clear line separates fun from profit or a hobby from a business.12. If you spend eight or more hours a day trading on eBay.17. If you spend $5 for a garage sale vase and sell it for $50.18. The IRS would probably consider this a business transaction.20. Even for eBay sellers who are just playing around. (not a proper sentence)Dangling Modifier
Attempts to modify an unclear word in the sentence
19. All profits are taxable.It is unclear what profits the sentence alludes to.
Passive-voice sentence
In Passive voice, the subject of the text is the one that is being acted upon.
13. The IRS would tend to think you are in a business.Parallelism Fault
This occurs when the sentence is not grammatically parallel. In other words the sentence does not follow as it is not using the same structure.
3. As you are probably already aware, you can use eBay or one of the other sellers to clean out your closets or to run a small business.Prepare an adjusted trial balance (LO3-3, 3-4) [The following information applies to the questions displayed below.] The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below. Accounts Debit Credit Cash $ 10,000 Accounts Receivable 15,000 Prepaid Rent 7,200 Supplies 4,000 Deferred Revenue $ 3,000 Common Stock 11,000 Retained Earnings 6,000 Service Revenue 51,200 Salaries Expense 35,000 $ 71,200 $ 71,200 At year-end, the following additional information is available:______. 1. The balance of Prepaid Rent, $7,200, represents payment on October 31, 2021, for rent from November 1, 2021, to April 30, 2022. 2. The balance of Deferred Revenue, $3,000, represents payment in advance from a customer. By the end of the year, $750 of the services have been provided. 3. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4, 2022. 4. The balance of Supplies, $4,000, represents the amount of office supplies on hand at the beginning of the year of $1,700 plus an additional $2,300 purchased throughout 2021. By the end of 2021, only $800 of supplies remains
Answers
Answer:
1. December 31
Dr Rent expense 2,400
Cr Prepaid rent $2,400
2. Dr Deferred revenue $750
Service revenue $750
3. December 31
Dr Salaries expense $700
Cr Salaries payable $700
4. December 31
Dr Supplies expense $3,200
Cr Supplies $3,200
Explanation:
Preparation of Journal entries
1. Since Rent expense for 6 months is the
amount of $7,200 this means that the Rent expense for 2 months which is November and December will be calculated as 7,200 x 2/6
= $2,400 and recorded as :
December 31
Dr Rent expense 2,400
Cr Prepaid rent $2,400
( To record rent expense)
2. Based on the information given we were told that by year end the amount of $750 of the services have been provided which means that the Journal entry will be.
December 31
Dr Deferred revenue $750
Service revenue $750
( To record service revenue)
3. Based on the information given we were told that the an additional amount of $700 in salaries is owed to employees but will not be paid until January 4 which means that the Journal entry will be :
December 31
Dr Salaries expense $700
Cr Salaries payable $700
( To record salaries expense)
4. Since Supplies expense which is calculated as Beginning supplies 1,700+ Supplies purchases 2,300- Ending supplies 800 will gives us $3,200 the Journal entry for supplies will be recorded as :
December 31
Dr Supplies expense $3,200
Cr Supplies $3,200
( 1,700+2,300-800)
( To record supplies expense)
The following partially completed T-accounts summarize transactions for Faaberg Corporation during the year: Raw Materials Beg Bal 4,800 8,600 5,000 Work in Process Beg Bal 3,900 22,000 6,000 8,300 8,100 Finished Goods Beg Bal 2,000 20,200 22,000 Manufacturing Overhead 2,600 8,100 3,300 3,000 Wages & Salaries Payable 20,200 Beg Bal 2,300 11,600 Cost of Goods Sold Beg Bal 20,200 The Cost of Goods Manufactured was:_______
a. $8,600
b. $6,000
c. $3,900
d. $5,000
Answers
Answer:
a. $8,600
Explanation:
The cost of goods manufactured equation is the sum of the total manufacturing costs (i.e all direct materials, direct labor, and factory overhead) and the beginning work in process inventory also subtracting the ending goods in process inventory.
The total raw materials was $8600 of which $6000 was debited to work in process and $2600 was debited to manufacturing overhead. The work in process is the cost of direct materials, hence the cost of good manufactured is given as the total raw materials which is $8600
The following information was taken from the records of Whispering Inc. for the year 2020: Income tax applicable to income from continuing operations $243,100; income tax applicable to loss on discontinued operations $33,150, and unrealized holding gain on available-for-sale securities (net of tax) $19,500.
Gain on sale of equipment $ 123,500
Cash dividends declared $195,000
Loss on discontinued operations 97,500
Retained earnings January 1, 2020 3,480,000
Administrative expenses 312,000
Cost of goods sold 1,105,000
Rent revenue 52,000
Selling expenses 390,000
Loss on write-down of inventory 78,000
Sales Revenue 2,470,000
Shares outstanding during 2020 were 100,000.
Instructions
(a) Prepare a multiple-step income statement.
(b) Prepare a comprehensive income statement for 2017, using the two statement format.
Answers
Answer:
a) Whispering, Inc.
Income statement
For the year ended December 31, 2020
Sales Revenue $2,470,000
Cost of goods sold ($1,105,000)
Loss on write-down of inventory ($78,000 )
Gross profit $1,287,000
Operating expenses:
Administrative expenses $312,000 Selling expenses $390,000 ($702,000)Operating income $585,000
Other income/expenses:
Rent revenue $52,000
Gain on sale of equipment $123,500
Income before taxes $760,500
Income taxes ($243,100)
Net income from continuing operations $517,400
Discontinued operations:
Loss on discontinued operations ($97,500) Income tax applicable to loss $33,150 ($64,350)Net income $453,050
Other comprehensive income:
Unrealized holding gain on AFS securities (net) $19,500
Comprehensive income $472,550
Shares outstanding during 2020 were 100,000
Earnings per share $4.7255
Cash dividends declared $195,000
Dividends per share $1.95
b) Whispering, Inc.
Comprehensive Income Statement
For the year ended December 31, 2020
Net income $453,050
Other comprehensive income:
Unrealized holding gain on AFS securities (net) $19,500
Comprehensive income $472,550
A last-mile delivery service is looking into increasing capacity by purchasing new delivery vans. Two vans are being considered. Van A costs $50,000 with a variable cost of $12.00 per average delivery, all inclusive of gasoline, insurance, etc. Van B costs $70,000 with a variable cost of $11.00 per average delivery. The company is also considering a courier service which requires a $60,000 non-refundable joiner fee and a variable cost of $13.00 per average delivery. Last but not least the company is also considering a new drone delivery option that requires an investment in infrastructure of $100,000 and a delivery cost of $15.00 per delivery, but costs are expected to drop sharply in the foreseeable future.
a. What of the following is NOT true?
A. In the long run, Option B with its $11.00 variable cost is the best option
B. The drone option should be chosen because it is the least expensive in terms of both fixed and variable cost.
C. Option A requires the smallest initial cash outlay, followed by using the courier service, followed by Option B.
D. There is no point of indifference/break even between Option A and using the courier service
b. ________ is preferred at volumes below_______ while_______ is preferred at volume above_______
A. B and 30,000, A and 20,000
B. B and 5,000, C and 5,000
C. C is always preferred to A at every volume
D. A and 20,000, B and 20,000
Answers
Answer: a. The drone option should be chosen because it is the least expensive in terms of both fixed cost and variable cost.
b. A and 20000, B and 20000
Explanation:
a. From the information provided, the correct option is option B "The drone option should be chosen because it is the least expensive in terms of both fixed cost and variable cost".
This statement is wrong has the drone has the largest fixed cost and variable cost. It's fixed cost of $100,000 is more than that of $70,000 and $60,000 for others.
b. A and 20000, B and 20000
A is preferred at volumes below 20000 while B is preferred at volume above 20000.
Henry Ford famously mass-produced cars at the beginning of the twentieth century, starting Ford Motor Company. He made millions because mass production made cars cheap to make, and he passed some of the savings to the consumer in the form of a low price. Cars became a common sight in the United States thereafter. Keeping total revenue and its relationship with price in mind, do you expect the demand for cars to be elastic or inelastic given the story of Henry Ford?
Answers
Answer:
Elastic
Explanation:
Elasticity of demand measures the responsiveness of quantity demanded to changes in price of a good
Elasticity of demand = percentage change in quantity demanded / percentage change in price
demand is elastic if a small change in price leads to a greater change in quantity demanded
Because there are a lot of cars available, if the price of cars are increased, consumers can easily shift to the consumption of cheaper cars
Demand is inelastic if a small change in price leads to little or no change in quantity demanded
Gross wage refers to the wage an employee ears before deductions are subtracted.
True
False
Answers
how are you doing today??
Answers
Answer:
Good. Thanks for asking how about you?
Explanation:
Pettit Ice Cream Company produces various ice cream products for which demand is highly seasonal. The company sells more ice cream in warmer months and less in colder ones. Last year, the high point in production activity occurred in August when Pettit produced 50,000 gallons of ice cream at a total cost of $82,000. The low point in production activity occurred in February when the company produced 20,000 gallons of ice cream at a total cost of $46,000.
Required:
a. Use the high-low method to estimate the amount of fixed cost per month incurred by Pettit Ice Cream Company
b. Determine the total estimated monthly cost when 40,000 gallons of ice cream are produced.
c. What factors could cause the estimate determined in Requirement b to be inaccurate?
d. Explain how regression analysis could be used to improve accuracy. Your explanation should in- clude a discussion of the R2 statistic as well as the potential impact of multiple regression analysis.
Answers
Answer:
a) Fixed costs = $22,000
b) $70,000
c) The high low cost method is generally inaccurate because it only considers the extremes, the highest and lowest costs and activity levels. Generally costs are not linear, but they might follow a certain tendency. The advantages of the high low cost method is that it is fairly accurate when costs are stable, plus it is much simpler to calculate.
d) Assuming that costs follow a certain tendency, regression analysis is much more exact since it analyses the relationship between different data and different variables. When you analyze only 2 variables, a linear regression analysis will serve you. but if you need to analyse more than two variables, then you must use a multiple regression analysis.
The R² statistic basically measures how one variable's variance is affected by other variables. E.g. if R² is 0.75, then 75% of the variance of A will be explained by the variance of B.
Explanation:
variable cost using high low cost method = (highest activity cost - lowest activity cost) / (highest activity level - lowest activity level) = ($82,000 - $46,000) / (50,000 - 20,000) = $36,000 / 30,000 gallons of ice cream = $1.20 per gallon of ice cream
fixed costs = $82,000 - (50,000 x $1.20) = $22,000
40,000 gallons
$22,000 + (40,000 x $1.20) = $70,000
how regression analysis improves accuracy of high low cost method
Which type of CRM technique is best for e-commerce companies?
A.
RFM analysis
B.
subscription model
C.
customer surveys
D.
clickstream analysis
Answers
Answer:
I think RFM analysis is best
Explanation:
As RFM analysis is based on customer purchase history, it's a powerful tool for eCommerce stores. Windsor circle reported significant success when using RFM for their retail customers: Eastwood increased their email marketing profits by 21% L'Occitane saw 25 times more revenue per email.
Answer:
The answer is D clickstream analysis!
Explanation:
Edmentum defines clickstream analysis as this: "Clickstream analysis is a type of web analytics that records browsing data. It also collects customer data by recording a user’s “clicking” data. Every time a user clicks an object, a link, or an image, companies gather data about the usage of their website. "
You are a newly hired operations manager for Hospital XYZ. You are required to:
Review the current hiring practices for nurses working in the emergency room department. Investigate recent patient complaints concerning bad bedside manner from nurses in labor and delivery.
Review financial requests for Environmental Services to purchase new buffers to wax floors.
Review Information Technology’s concerns regarding a possible information breach. Review request for implementation of new software in the radiology department.
Determine your approach to these tasks. How would you determine how to prioritize your tasks? Who are the stakeholders in each of these scenarios? Is there a need for project management? If so why?
Answers
Answer:
Follows are the solution to this question:
Explanation:
follows are the tasks, which is not in the priority order and at hand at Hospital XYZ:
HR domain: share the latest recruitment procedures throughout the emergency department of public health.
Operations: nurse staffing methods for function or treatment.
Funding: Review financial requests for both the purchase of new protections on wax surfaces by protection from the environment.
IT: IT reviews complaints regarding a possible breach of information.
IT: Study application in the physician's office for the implementation of new technology.
If valuing such activities, it should remember, that this patient (client) becomes impacted mainly. The clinicians or staff involved in Tasks 1 & 2, because Task 2, the very first priority must be considered, and also some standards must be developed, by each nurse, with remote care issues.
Information from its daily client is provided to control the staff, and a specific training program is intended for both the newly employed and negative feedback staff.
Respondents-Patients, Professions
Task 1, which directly affects the daily quality of service in a hospital, should be the secondary priority, with such a smaller shortage of hospitals due to customer dissatisfaction.
Members – Patients, medical personnel, permanent employees, doctors.
Task 4 When information violation is alleged, the third priority should to the loss of important patient data to certain other entities that may use for financial gains.
Participants – IT department, patients.
Task 3 will help its hospital cleaner if funds are required to purchase new buffers. Especially in comparison with all the above 3 tasks, it was taken as the fourth priority.
It was important, and that does not affect mostly the client nor would it impact the level of service as large as the three tasks above.
Advisor position-representatives of finance, environment protection, clean folk (sweepers). advisor position
Task 5 Its latest radiology software review application is now to be approved as the last. It indicates why old software is already in place since it is a new program. Consequently, nothing's ever going to stoop or the task in other projects is no slowdowns. It can be achieved as the last goal.
Investors involved-officials of the IT agency, diagnostic agents.
The process improvement throughout the solution of the problems in the hospitals by providing them the necessary importance to identify the priorities of different tasks.
The comparative statements of Cullumber Company are presented here.
CULLUMBER COMPANY
Income Statements
For the Years Ended December 31
2017 2016
Net sales $1,899,240 $1,759,200
Cost of goods sold 1,067,240 1,014,700
Gross profit 832,000 744,500
Selling and administrative expenses 508,700 487,700
Income from operations 323,300 256,800
Other expenses and losses
Interest expense 23,200 21,200
Income before income taxes 300,100 235,600
Income tax expense 93,200 74,200
Net income $ 206,900 $ 161,400
CULLUMBER COMPANY
Balance Sheets
December 31
Assets 2017 2016
Current assets
Cash $ 60,100 $ 64,200
Debt investments (short-term) 74,000 50,000
Accounts receivable 126,500 111,500
Inventory 127,200 116,700
Total current assets 387,800 342,400
Plant assets (net) 663,000 534,300
Total assets $1,050,800 $876,700
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 168,700 $154,100
Income taxes payable 44,700 43,200
Total current liabilities 213,400 197,300
Bonds payable 234,000 214,000
Total liabilities 447,400 411,300
Stockholders’ equity
Common stock ($5 par) 290,000 300,000
Retained earnings 313,400 165,400
Total stockholders’ equity 603,400 465,400
Total liabilities and stockholders’ equity $1,050,800 $876,700
All sales were on account. Net cash provided by operating activities for 2017 was $246,000. Capital expenditures were $135,000, and cash dividends were $58,900.
Compute the following ratios for 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)
(a) Earnings per share $
(b) Return on common stockholders’ equity
%
(c) Return on assets
%
(d) Current ratio
(e) Accounts receivable turnover
times
(f) Average collection period
days
(g) Inventory turnover
times
(h) Days in inventory
days
(i) Times interest earned
times
(j) Asset turnover
times
(k) Debt to assets ratio
%
(l) Free cash flow $
Answers
Answer:
Cullumber Company
(a) Earnings per share = Net Income / No. of outstanding common shares
= $ 206,900/58,000
$ 3.57
(b) Return on common stockholders’ equity = Net Income/Equity
= $ 206,900/603,400 * 100
= 34.29%
(c) Return on assets = Net Income/Assets * 100
= $206,900/$1,050,800 * 100
= 19.69%
(d) Current ratio = Current Assets/ Current Liabilities
= $387,800/213,400
= 1.82
(e) Accounts receivable turnover = Sales /Average Receivable
= $1,899,240/119,000
= 15.96 times
Average receivable = (126,500 + 111,500)/2 = 119,000
(f) Average collection period = Average Receivable/Sales * 365
= 119,000/1,899,240 * 365
= 22,87 days
(g) Inventory turnover = cost of goods sold/average inventory
= 1,067,240/121,950
= 8.75 times
Average Inventory = )127,200 + 116,700 )/2 = 121,950
(h) Days in inventory = 365/8.75
41.71 days
(i) Times interest earned = EBIT/Interest Expense
= $323,300/23,200
= 13.94 times
(j) Asset turnover = Sales/Average Assets
= 1.97 times
(k) Debt to assets ratio = Total Liabilities/Total Assets
= $447,400/$1,050,800 * 100
= 42.58%
(l) Free cash flow
= Operating Cash Minus CAPEX
= $246,000 - $135,000 = $111,000
= $111,000
Explanation:
a) Data:
CULLUMBER COMPANY
Income Statements
For the Years Ended December 31
2017 2016
Net sales $1,899,240 $1,759,200
Cost of goods sold 1,067,240 1,014,700
Gross profit 832,000 744,500
Selling and administrative expenses 508,700 487,700
Income from operations 323,300 256,800
Other expenses and losses
Interest expense 23,200 21,200
Income before income taxes 300,100 235,600
Income tax expense 93,200 74,200
Net income $ 206,900 $ 161,400
CULLUMBER COMPANY
Balance Sheets
December 31
Assets 2017 2016
Current assets
Cash $ 60,100 $ 64,200
Debt investments (short-term) 74,000 50,000
Accounts receivable 126,500 111,500
Inventory 127,200 116,700
Total current assets 387,800 342,400
Plant assets (net) 663,000 534,300
Total assets $1,050,800 $876,700
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 168,700 $154,100
Income taxes payable 44,700 43,200
Total current liabilities 213,400 197,300
Bonds payable 234,000 214,000
Total liabilities 447,400 411,300
Stockholders’ equity
Common stock ($5 par) 290,000 300,000
Retained earnings 313,400 165,400
Total stockholders’ equity 603,400 465,400
Total liabilities and
stockholders’ equity $1,050,800 $876,700
Others:
All sales were on account. Net cash provided by operating activities for 2017 was $246,000. Capital expenditures were $135,000, and cash dividends were $58,900
b) Explanation:
Asset Turnover = Sales/Average Assets
= $1,899,240/$963,750
= 1.97 times
Average assets = ($1,050,800 + $876,700 )/2 = $963,750
Debit to asset ratio = Total Liabilities/Total Assets
= $447,400/$1,050,800 * 100
= 42,58%
Free Cash Flow = Operating Cash Minus CAPEX
= $246,000 - $135,000 = $111,000
A+T Williamson Company is making adjusting entries for the year ended December 31 of the current year. In developing information for the adjusting entries, the accountant learned the following:______. A. A two-year insurance premium of $6,000 was paid on October 1 of the current year for coverage beginning on that date. The bookkeeper debited the full amount to Prepaid Insurance on October 1. B. At December 31 of the current year, the following data relating to Shipping Supplies were obtained from the records and supporting documents.Shipping supplies on hand, January 1 of the current year $17,500
Purchases of shipping supplies during the current year 62,500
Shipping supplies on hand, counted on December 31 of the current year 13,000
1. What amount should be reported on the current year's income statement for Insurance Expense? For Shipping Supplies Expense?
2. What amount should be reported on the current year's balance sheet for Prepaid Insurance? For Shipping Supplies?
Answers
Answer:
The following amounts shall be reported on 31 December of the current year.
1.
Insurance expense = $750
Shipping Supplies expense = $67000
2.
Prepaid Insurance = $5250
Shipping Supplies = $13000
Explanation:
1.
The insurance paid on October 1 of $6000 was for two years or 24 months. This means that the premium paid per month was of = 6000 / 24 = $250
On 31 December of the current year, the insurance for 3 months have been used and the insurance expense should be recorded for 3 months ending 31 December of $750.
Insurance expense till 31 December = $250 * 3 = $750
The shipping supplies expense can be calculated based on the consumption of shipping supplies in the current year. The consumption can be calculated as follows,
Consumption = Opening Inventory + Purchases - Closing Inventory
Consumption = 17500 + 62500 - 13000
Consumption = $67000
So, shipping supplies expense for the current year is $67000
2.
Out of the prepaid insurance of $6000, 3 months of insurance worth $750 has been expensed out till 31 December. Thus the remaining balance in the prepaid insurance account will be = 6000 - 750 = $5250
The closing balance of shipping supplies has been provided on 31 December and this balance of $13000 will be reported on balance sheet as shipping supplies.
Hair Stylists's adjusted trial balance and statement of retained earnings follow:
Daniel Hair Stylists Adjusted Trial Balance December 31, 2018
Account Balance Debit Credit
Cash $1,000
Accounts Receivable 900
Office Supplies 600
Equipment 19,700
Accumulated Depreciation - Equipment $2,000
Accounts Payable 900
Interest Payable 550
Notes Payable 3,400
Common Stock 10,650
Dividends 700
Service Revenue 14,100
Rent Expense 5,200
Supplies Expense 100
Depreciation Expense - Equipment 2,000
Interest Expense 1,400
Total $31,600 $31,600
Daniel Hair Stylists Statement of Retained Earnings Year Ended December 31, 2018:
Retained Earnings, January 1, 2018 $0
Net Income for the year 5,400
5,400
Dividends (700)
Retained Earnings, December 31, 2018 $4,700
Required:
Prepare Daniel's classified balance sheet at December 31, 2018. Assume the Notes Payable is due on December 1, 2025. Use the report form.
Answers
Answer:
Daniel Hair Stylists
Balance Sheet
For the year ended December 31, 2018
Assets
Current assets
Cash $1,000Accounts Receivable $900 Office Supplies $600Total current assets $2,500
Non-current assets
Equipment, net $19,700 Accumulated depreciation ($2,000) $17,700Total non-current assets $17,700
Total assets $20,200
Liabilities
Current liabilities
Accounts Payable $900 Interest Payable $550Total current liabilities $1,450
Total long term liabilities $3,400
Total liabilities $4,850
Owner's Equity
Owner's equity
Retained earnings $4,700Common stock $10,650Total owner's equity $15,350
Total liabilities and owner's equity $20,200
Bridgeport Architects incorporated as licensed architects on April 1, 2022. During the first month of the operation of the business, these events and transactions occurred:
Apr. 1 Stockholders invested $19,980 cash in exchange for common stock of the corporation.
1 Hired a secretary-receptionist at a salary of $416 per week, payable monthly.
2 Paid office rent for the month $999.
3 Purchased architectural supplies on account from Birmingham Company $1,443.
10 Completed blueprints on a carport and billed client $2,109 for services.
11 Received $777 cash advance from M. Jason to design a new home.
20 Received $3,108 cash for services completed and delivered to S. Melvin.
30 Paid secretary-receptionist for the month $1,664.
30 Paid $333 to Birmingham Company for accounts payable due.
Journalize the transactions. Of no entry is required, select "No entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Answers
Answer and Explanation:
The journal entries are shown below:
1. Cash $19,980
To Common Stock $19,980
(Being the invested amount is recorded)
2. No journal entry is required
3. Rent Expense $999
To Cash $999
(Being the rent expense is recorded)
4. Supplies $1,443
To Accounts Payable $1,443
(being supplies purchased on account is recorded)
5. Accounts Receivable $2,109
To Service Revenues $2,109
(Being service provided is recorded)
6. Cash $777
To Unearned Revenues $777
(Being cash is recorded)
7. Cash $3,108
To Service Revenues $3,108
(Being cash is recorded)
8. Salary & Wages Expense $1,664
To Cash $1,664
(Being cash paid is recordeD)
9. Accounts Payable $333
To Cash $333
(Being cash paid is recorded)