Answer:
All of these.
Explanation:
The formula to compute the return on investment is as follows:
Return on investment = Net operating income ÷ Average operating assets
Here the return on investment means it calculates the manager performance that motivates them to rise the net operating income via cost efficiency also at the same time the average operating assets could be maintained at the normal level so that the operational efficiency could be accomplished
Therefore the last option is correct
A corporation issued 2,500 shares of its no par common stock at a cash price of $11 per share. The entry to record this transaction would be:
Answer:
Date Account Titles and Explanation Debit Credit
Cash $27,500
Common stock $27,500
(Being shares issued at cash price recorded)
Common stock = 2,500 shares * $11
Common stock = $27,500
Compute the payback statistic for project B and decide whether the firm should accept or reject the project with the cash flows shown as follows if the appropriate cost of capital is 12 percent and the maximum allowable payback is three years.
Time 0 1 2 3 4 5Cash
Flow -$11,000 $3,350 $4,180 $1,520 $0 $1,000
Answer:
The project has no payback period
it should be rejected
Explanation:
Payback period calculate the number of years it would take to recover the amount invested in a project from its cumulative cash flows.
Amount invested = -$11,000
Amounted recovered in the 1st year = -$11,000 + $3,350 = -$7650
Amounted recovered in the 2nd year = -$7650 + $4,180 = -$3470
Amounted recovered in the 3rd year = -$3470 + $1,520 = -$1950
Amounted recovered in the 4th year = -$1950 + 0 = -$1950
Amounted recovered in the 5th year = -$1950 + $1000 = -$950
The amount invested is never recovered. the project isn't profitable and should be rejected
Jorgansen Lighting, Inc., manufactures heavy-duty street lighting systems for municipalities. The company uses variable costing for internal management reports and absorption costing for external reports to shareholders, creditors, and the government. The company has provided the following data:
Year 1 Year 2 Year 3
Inventories:
Beginning (units) 200 170 180
Ending (units) 170 180 220
Variable costing net
operating income $1,080,400 $1,032,400 $996,400
The company's fixed manufacturing overhead per unit was constant at $560 for all three years.
Requirement 1:
Determine each year’s absorption costing net operating income. Present your answer in the form of a reconciliation report for year 1, 2 and 3.
Year 1 Year 2 Year 3
Beginning inventories
Ending inventories
Change in inventorie
Fixed manufacturing overhead in beginning inventories
Fixed manufacturing overhead in ending inventories
Fixed manufacturing overhead deferred in (released from) inventorie
Variable costing net operating income
Add (deduct) fixed manufacturing overhead cost deferred in (released from) inventory under absorption costing
Absorption costing net operating income
Requirement 2:
In Year 4, the company's variable costing net operating income was $984,400 and its absorption costing net operating income was $1,012,400.
(a) Did inventories increase or decrease during Year 4?
(b) How much fixed manufacturing overhead cost was deferred or released from inventory during Year 4?
Deferred or released
Ffixed manufacturing overhead cost $
Answer:
Jorgansen Lighting, Inc.
Requirement 1:
Year 1 Year 2 Year 3
Variable costing net
operating income $1,080,400 $1,032,400 $996,400
Inventory difference (16,800) (5,600) (22,400)
Absorption costing net
operating income $1,063,600 $1,026,800 $974,000
Requirement 2:
Fixed manufacturing overhead cost deferred = $28,000
Explanation:
a) Data and Calculations:
Fixed manufacturing overhead per unit = $560 for all three years
Year 1 Year 2 Year 3
Inventories:
Beginning (units) 200 170 180
Ending (units) 170 180 220
Difference in inventories 30 -10 -40
Value of inventory diff $16,800 ($5,600) ($22,400)
Variable costing net
operating income $1,080,400 $1,032,400 $996,400
Inventory difference (16,800) (5,600) (22,400)
Absorption costing net
operating income $1,063,600 $1,026,800 $974,000
Requirement 2:
Year 4
Variable costing net operating income $984,400
Absorption costing net operating income $1,012,400
Difference in net operating income $28,000
Inventory increase by $28,000/$560 = 50 units
Strategic use of white space improves document readability. Which of the following techniques employ white space?
A. Using headings
B. Using parallel structures
C. Using serif typeface
D. Using bulleted and numbered lists
Answer: A & D
Explanation: White space is the white area between written characters and graphic regions on a produced page or computer display; It is also blanks and the vertical blanks lines in between paragraphs, or any other organized rows of text lines for example poetry.
The use of headings and the use of bulleted and numbered lists all employ the use of white space which helps improve the readability of documents. These ample spaces created can be used to break up paragraphs into readable chunks.
If public goods were marketed like private goods, then public goods would be overproduced:__________
Answer:
in the presence of suce positive externalities
Explanation:
because the cost of production for the firm are overstated and the profits are understated
Think about choices to include and choices to avoid when developing a mission statement. Drag and drop each of the following phrases to either the Good Mission Statements box or the Poor Mission Statements box. Lists all the products the organization sells Addresses customers the organization serves Is product-oriented Is meaningful Is specific Is very broad Is less than seven words Describes the business the organization is in Is market-oriented States what the organization wants to accomplish Submit Poor Mission Statements Good Mission Statements
Answer and Explanation:
The categorization is as follows:
For Poor Mission Statements:
1. Lists all or all kinds of the products the organization sells
2. is product-oriented
3. is very broad or wide
4. is less or lower than seven words
For Good Mission Statements:
1. Addresses customers the organization serves
2. Is meaningful and relevant
3. Is specific and determined
4. Describes the business the organization is in
5. is market-oriented
6. States what the organization wants to accomplish or achieve
Workplace diversity describes differences among workers in any of the following areas:
salary
office space
religion
race
Answer:
religion
race
Explanation:
Diversity in the workplace is a deliberate attempt to incorporate a wide range of different workers. It is an appreciation that each person or group of people is unique and has diverse characteristics. Workplace diversity results in the organization being accommodative to diverse cultures and different identities.
Workplace diversity embraces race, gender, age, sexual orientation, ethnic groups, religion, sexual orientation, and physical conditions. It also includes other unique differences between people.
Kristen reduced her Federal mortgage interest deduction by $500 (the amount of her mortgage interest credit from Federal Form 8396 - Mortgage Interest Credit). When completing her California tax return, she can increase the California itemized deductions for home mortgage interest by what amount
Answer:
The answer is "$500".
Explanation:
Whenever Kristen reduces its deduction in government loan by the amount of its Federal Type 8396 Monthly Mortgage Original account credit, that deductor rises her California has the same number of comprehensive reductions. Represent the total as just a real integer on other adjustments to the comprehensive deduction for your Federal monthly mortgage credit.
Which of the following is true regarding taxation of dividends in participating policies?
a. They are always taxable to chronically ill insured.
b. There are always taxed
c. There is a 10% penalty for early distribution of the death benefit.
d. They are taxed free to terminal ill insured
Answer:
d. They are tax free to terminal ill insured
Explanation:
Dividends in participating policies are not taxed, whether you are chronically ill or not. The IRS considers dividends distributed by participating policies as unused premiums, they are not considered income. Only if any interests are earned, then only the interests will be taxed.
Phil used his rental property for personal use for 7 days and rented it for 63 days. In most cases, what percentage of his expenses are not rental expenses and cannot be deducted on Schedule E?
a. 10%
b. 20%
c. 50%
d. 90%
Answer: a. 10%
Explanation:
The total number of days the property was used:
= 7 + 63
= 70 days
He used the property for personal use for 7 days out of that:
= 7/70
= 10%
That 10% cannot be deducted as rental expenses because he used these for personal use.
Which market characteristic could best be described as market participants focusing production on a selection of goods and services
Answer: c. Self-Interest.
Explanation:
Self interest is a characteristic of the market economic system that explains that market participants act in their self interest. Transactions they engage in are meant to bring the maximum benefits to them.
They will therefore focus on producing a selection of goods and services if those goods and services are the ones that will give them the greatest benefit.
Central Building Company borrowed $15,804 on a 280-day simple interest note to expand their business. The note carried an interest rate of 7.0%. Find the maturity value of the note.
a. $15,888.87
b. $14,943.56
c. $16,664.44
d. $16,676.56
Answer: c. $16,664.44
Explanation:
The interest amount is = Amount * Interest * 280/360
= 15,804 * 7% * 280/360 days
= $860.44
Add that to the amount borrowed;
= 15,804 + 860.44
= $16,664.44
Haley is expanding her tax preparation business and wants to reorganize it. She wants to better protect her personal assets from any liabilities associated with the business, and she wants to pay a lower tax rate on her business income. She also believes her business will benefit from oversight from a board of directors.
Which form of business structure would clearly meet Haley's needs?
a. Corporation
b. Sole proprietorship
c. Limited liability partnership
d. Partnership
Answer:
a. Corporation
Explanation:
A Corporation is the best form of business structure would clearly meet Haley's needs
1. Limited Liability
This form of business gives her limited liability, that is to say her liability is only limited to what she has invested in business and not any further thus having a better protect her personal assets from any liabilities associated with the business.
2. Taxes
A Corporation also had lower tax rate on business income not to mentions of capital allowances on assets used in business or the other deductions in expenditure incurred to run the business
3. Corporate Governance
Her daily involvement in the operations of the business is limited in this as the directors are appointed as stewards to manage the business with the oversight from a board of directors.
Accounting ErrorsThe shannon corporation began operations on january 1 2010. financial statements for the years ended december 31 2010 and 2017, contained the following errors: December 31 2016 2017Ending inventory $16,000 $15,000 understated overstatedInsurance expense $10,000 $10,000 overstated understatedPrepaid insurance $10,000 — understated In addition, on December 31, 2017, fully depreciated machinery was sold for $10,800 cash, but the sale was not recorded until 2018. There were no other errors during 2016 or 2017, and no corrections have been made for any of the errors. Ignoring income taxes, what is the total effect of the errors on 2017 net income?
A. Net income overstated by $5,800.B. Net income overstated by $11,000.C. Net income overstated by $14,200.D. Net income understated by $1,800.
Answer:
C. Net income overstated by $14,200
Explanation:
Effect of errors on 2017 net income = Overstated ending inventory + Understated insurance expense - Understated income on sale of machinery
Effect of errors on 2017 net income = $15,000 + $10,000 - $10,800
Effect of errors on 2017 net income = $14,200 Overstated.
So, the total effect of the errors on 2017 net income is overstated by $14,200
Interest Rates) Well-known financial writer Andrew Tobias argues that he can earn 177 percent per year buying wine by the case. Specifically, he assumes that he will consume one $10 bottle of fine Bordeaux per week for the next twelve weeks. He can either pay $10 per week or buy a case of 12 bottles today. If he buys the case, he receives a 10 percent discount, and, by doing so, earns the 177 percent. Assume he buys the wine and consumes the first bottle today. Do you agree with his analysis? Do you see a problem with his numbers?
Answer:
I disagree and his numbers are clearly wrong.
Explanation:
there are 52 weeks in a year, so the you should consume 52 bottles of wine per year. By the way, $10 per bottle doesn't buy any fine wine, but lets follow the question.
If you buy each wine individually, you will spend $10 x 52 = $520.
If you buy the wine by cases, you will spend $520 x 90% = $468
the difference is clearly not 177%, it only represents $52 or 10%.
Even if you decided to invest your savings per case of wine = $12 x $10 x 10% = $12
his total savings per year = $52 are spread over the year, so you could consider them an annuity of 4 $12 payments and 1 $4 payment. In order for this annuity to represent a 177% gain, which is equivalent to $468 x 177% = $828.36, the interest rate should be extremely high.
FV of an annuity due = payment x FV annuity due factor
$828.36 = $12 x FV annuity due factor
FV annuity due factor = $828.36 / $12 = 69.03
the % earned in 4.3 periods that results in 69.03 is close to 150% per every 12 weeks. This is not a reasonable interest rate.
Flamingo Company borrows $30,000 using a five-year, long-term installment note payable. The rate on the note is 5 percent and Flamingo agrees to make monthly payments of $566.14. When Flamingo records its first payment on the note payable, what will the journal entry look like (without the numbers).
Answer:
Interest expense = 30,000*5%*1/12
Interest expense = 30,000*0.00416666667
Interest expense = $125.0000001
The journal entry will be:
Description Debit Credit
Interest expense $125
Notes payable $441.14
Cash $566.14
An investment project provides cash inflows of $705 per year for eight years. What is the project payback period if the initial cost is $1,900
Answer:
2 years and 8 months
Explanation:
The payback period is the length of time required for thee total cashflows to equal the Initial Capital Investment.
Payback = $1,900
Therefore,
$1,900 = $705 + $705 + $490
Which is 2 years and 8 months ($490/ $705 × 12)
Conclusion :
The project payback period is 2 years and 8 months
In fiscal 2016, Microsoft Corp. reported a statutory tax rate of 35% and an effective tax rate of approximately 15%. The 2016 income statement reported income tax expense of $2,953 million. What did Microsoft report as income before income tax expense that year?
What did Microsoft report as income before income tax expense that year?
a. $14,826 million
b. $19,687 million
c. $27,054 million
d. $ 7,571 million
e. None of the above
Answer: $19,687 million
Explanation:
From the question, we are informed that Microsoft Corp. reported a statutory tax rate of 35% and an effective tax rate of approximately 15% and that the 2016 income statement reported income tax expense of $2,953 million.
The amount reported by Microsoft as income before income tax expense that year will be calculated as:
= 2,953 million / 15%
= $19,686.67 million
= $19,687 million
Gravity, Inc., needs to raise $50 million to fund its expansion plans. The company will sell shares at a price of $28.40 in a general cash offer and the company's underwriters will charge a spread of 6.5 percent. How many shares need to be sold
Answer:
1,882,956 shares
Explanation:
Amount that company wants to raise = $50,000,000
Price per share in general cash offer = Price per share offered to public
Price per share offered to public = $28.40
Underwriters Spread = 7.5%
Underwriter's commission per share = 6.5% * $28.40 = $1.846
Amount received by company per share = Price per share in general cash offer - Underwriter's commission per share
Amount received by company per share = $28.40 - $1.846
Amount received by company per share = $26.554
Amount that company wants to raise = Number of shares sold * Amount received by company per share
50,000,000 = Number of shares sold * $26.554
Number of shares sold = $50,000,000 / $26.554
Number of shares sold = 1882955.486932289
Number of shares sold = 1,882,956 shares
According to libertarians, the government should redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income.
a. True
b. False
Answer:
b. False
Explanation:
In the United States of America, the libertarians refers to a group of people or individuals who have the philosophical views of promoting individual freedom and liberty among the people. Thus, the primary political strength, values and ideas of a libertarian is individual freedom and liberty.
Saying libertarians wants the government to redistribute income from rich individuals to poor individuals to achieve a more equal distribution of income is a false statement because the libertarians simply cares about the means being just but not concerned about the outcome of a process or event.
Consider two policies: a tax cut that will last for only one year and a tax cut that is expected to be permanent. True or False: A tax cut that will last for only one year will stimulate greater spending by consumers than a tax cut that is expected to be permanent. True False
Answer: False
Explanation:
A short term tax cut will not affect spending as much as a permanent tax cut.
With a short term tax cut, people will know that they will have to go back to paying higher taxes in a short while and so will spend less so that they may be able to afford the higher taxes when they are reimplemented.
If a tax cut is long term however, consumers will spend more because they do not have to worry about having to afford to pay higher taxes after the year expires.
At the end of the current year, the accounts receivable account of Malik's Lanscaping Service has a debit balance of $390,000. Credit sales are $2,730,000. Record the end-of-period adjusting entry on December 31, in general journal form, for the estimated uncollectible accounts. Assume the following independent conditions existed prior to the adjustment:
Allowance for Doubtful Accounts has a credit balance of $1,770.
The percentage of sales method is used and bad debt expense is estimated to be 1% of credit sales. If an amount box does not require an entry, leave it blank.
Date Account title Doc No. Post REF Debit Credit
1. 20-Dec.31 _____________
2. _____________
3. _____________
Answer:
Date Account Title Post REF Debit Credit
20 Dec. 31 Bad Debt Expense $27,300
Allowance for Doubtful Debt $27,300
Explanation:
The bad debt expense for the year is estimated at 1% of credit sales using the percentage of sales method:
= 1% * 2,730,000
= $27,300
This figure will be debited to the expense account for Bad debts and credited to the Allowance for Doubtful debt account.
6. The company paid $900 cash toward accounts payable.
do you have any clue some story do that question has a story sorry for the disturb but this is compusing
Which two approaches will solve this issue?
Managers at Universal Containers (UC) have noticed that shipment records (a custom object) are being sent to the shipping department with bad address data specifically, addresses have missing data like City and poorly formatted Postal codes.
Answer:
Universal Containers (UC)
Two approaches to solve the shipment records issue are:
a. Set Validation Rules. For example, a validation rule will specify that the postal address fields contain the required address data.
b. Use Validation Texts. For example, a validation text for the postal code will indicate that the wrong postal code has been used for a specific address and will ask for immediate correction before the shipment records are sent to the shipping department.
Explanation:
A Validation Rule is a field property in the Expression Builder. It is used to specify and define conditions that limit values that can be entered in a particular field. Validation rules are usually reinforced with the use of Validation Texts, which are messages that are displayed when the data entered in the data fields do not conform to the validation rule or when the validation rule is violated.
Royce, a California resident receives $20,000 from a rental building in Arkansas. Royce only reports the $20,000 to Arkansas and pays $2,000 net income tax to Arkansas. Since Royce is a California resident, California also taxes the $20,000, but gives him a tax credit for what amount for the tax he paid to Arkansas
Answer:
$2,000
Explanation:
The state of California will grant its citizens a tax credit equal to the amount of taxes paid in other states when computing income received outside its borders. This same logic is applied by the federal government when someone earns income in foreign countries and pays taxes to a foreign government. Taxes paid to other governments decrease the amount of taxes that you pay to your own government.
Vaughn Manufacturing gathered the following reconciling information in preparing its August bank reconciliation: Cash balance per books, 8/31 $28600 Deposits in transit 1200 Notes receivable and interest collected by bank 6900 Bank charge for check printing 160 Outstanding checks 16300 NSF check 1390 The adjusted cash balance per books on August 31 is
Answer:
$33,950
Explanation:
Calculation for The adjusted cash balance per books on August 31 is
Cash balance per books, 8/31 $28,600
Add Notes receivable and interest collected by bank 6,900
Less Bank charge for check printing (160)
Less NSF check (1,390)
Adjusted cash balance per books $33,950
Therefore the adjusted cash balance per books on August 31 is $33,950
On June 30, 2021, when Crane Company's stock was selling at $65 per share, its capital accounts were as follows: Capital stock (par value $50; 57000 shares issued) $2850000 Premium on capital stock 570000 Retained earnings 4240000 If a 100% stock dividend were declared and distributed, capital stock would be $3420000. $2850000. $7410000. $5700000.
Answer: $2850000
Explanation:
Based on the scenario given in the question, If a 100% stock dividend were declared and distributed, capital stock would be calculated as the number of shares issued multiplied by the percentage of shares declared and the par value. This will be:
= 57,000 × 100% × 50
= $2,850,000
Select one reason a company's capital structure may include more equity than debt.
a. Relying too heavily on debt can increase the interest rate that a company must pay on its debt.
b. Taking on more equity means that a company will be more leveraged.
c. Equity has significant tax advantages that debt does not.
d. Too much debt will decrease a company's volatility.
Answer:
a. Relying too heavily on debt can increase the interest rate that a company must pay on its debt.
Explanation:
It is to avoid the financial risk that comes with debt. Financial risk is the risk of default in payment of Interest charges that comes with debt instruments. This is because debt instruments carry a financial obligation to pay Interest whether or not the company is performing well
Select one reason a company's capital structure may include more equity than debt.
Relying too heavily on debt can increase the interest rate that a company must pay on its debt. CORRECT
Taking on more equity means that a company will be more leveraged. INCORRECT
Equity has significant tax advantages that debt does not. INCORRECT, as equity doesn't have any tax advantages
Too much debt will decrease a company's volatility. INCORRECT
Please sort the following into PEST Analysis, Porter's 5 Forces, Competitive Advantage Analysis and SWOT Analysis.
a. Weaknesses
b. Economic Forecasting
c. Cost Leadership
d. Differentiation
e. Social Forecasting
f. Opportunities
g. Potential new entrants and barriers to entry
h. Technological Forecasting
i. Suppliers and their bargaining power
Answer:
The data is sorted in the required categories as follows. Where no category is filled with the existing data, i have indicated with the "Nill" narration as below :
PEST Analysis
1. Political factors
- Nill
2. Economic factors
- Economic Forecasting
3. Social factors
- Social Forecasting
4. Technological factors
- Technological Forecasting
Porter's 5 Forces
1. Bargaining Power of Customers
- Nill
2. Bargaining Power of Suppliers
- Suppliers and their bargaining power
3. Competition Rivalry between existing competitors
- Nill
4. Threat of Substitutes
- Nill
5. Threats of New Entrants
- Potential new entrants and barriers to entry
Competitive Advantage Analysis
1. Quality
- Nill
2. price
- Cost Leadership
3. location
4. selection
- Differentiation
5. service
- Nill
6. speed/turnaround
- Nill
SWOT Analysis
1.Strength
- Cost Leadership
- Differentiation
2.Weakness
- Weaknesses
3.Opportunities
- Opportunities
4.Threats
- Nill
Sorting the given factors into PEST Analysis, Porter's 5 Forces, Competitive Advantage Analysis and SWOT Analysis gives:
PEST Analysis:
b. Economic Forecastinge. Social Forecastingh. Technological ForecastingPorter's 5 Force:
g. Potential new entrants and barriers to entryi. Suppliers and their bargaining powerCompetitive Advantage Analysis:
c. Cost Leadershipd. DifferentiationSWOT Analysis:
a. Weaknessesf. Opportunities What are some ways of evaluating a business's potential?PEST Analysis uses various forecasting methods such as social and economic forecasting to see how the business would fare in the market.
SWOT analysis show the strengths, weaknesses, opportunities, and threats that a business goes through.
There is also competitive advantage analysis and Porter's 5 forces which relate to how well the business relates with stakeholders in the market.
Find out more on Porter's 5 Forces at https://brainly.com/question/14632175.
#SPJ5
On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances:
Accounts Debit Credit
Cash $ 60,100
Accounts Receivable 27,800
Allowance for Uncollectible Accounts $ 3,600
Inventory 37,700
Notes Receivable (5%, due in 2 years) 28,800
Land 169,000
Accounts Payable 16,200
Common Stock 234,000
Retained Earnings 69,600
Totals $ 323,400 $ 323,400
During January 2021, the following transactions occur:
January1 Purchase equipment for $20,900. The company estimates a residual value of $2,900 and a four-year service life.
January4 Pay cash on accounts payable, $10,900.
January8 Purchase additional inventory on account, $96,900.
January15 Receive cash on accounts receivable, $23,400.
January19 Pay cash for salaries, $31,200.
January28 Pay cash for January utilities, $17,900.
January30 Sales for January total $234,000.
All of these sales are on account. The cost of the units sold is $122,000.
Information for adjusting entries:
a. Depreciation on the equipment for the month of January is calculated using the straight-line method.
b. The company estimates future uncollectible accounts. The company determines $4,400 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible. The remaining accounts receivable on January 31 are not past due, and 3% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)
c. Accrued interest revenue on notes receivable for January.
d. Unpaid salaries at the end of January are $34,000.
e. Accrued income taxes at the end of January are $10,400.
1. Record the adjusting entries on January 31 for the above transactions(Please write out)
2. Prepare an adjusted trial balance as of January 31, 2021.(Please write out)
3. Prepare a multiple-step income statement for the period ended January 31, 2021.(Please write out)
4. Prepare a classified balance sheet as of January 31, 2021. (Deductible amounts should be indicated with a minus sign.)(Please write out).
5. Record closing entries(Please write out)
6. Analyze how well TNT Fireworks manages its assets:
a-1. Calculate the return on assets ratio for the month of January.
Return on Assets Ratio
Choose Numerator ÷ Choose Denominator = Return on Assets Ratio
÷ = Return on assets
Answer:
TNT Fireworks
1. Adjusting Entries on January 31:
Accounts Debit Credit
a. Depreciation Expense $375
Accumulated Depreciation $375
b. Uncollectible Expense $5,620
Allowance for Uncollectible Accounts $5,620
c. Accrued interest revenue $120
Interest Revenue $120
d. Salaries Expense $34,000
Salaries payable $34,000
e. Income Tax Expense $10,400
Income tax payable $10,400
2. Adjusted Trial Balance as of January 31, 2021:
Accounts Debit Credit
Cash $ 2,600
Accounts Receivable 238,400
Allowance for Uncollectible Accounts $9,220
Inventory 12,600
Notes Receivable
(5%, due in 2 years) 28,800
Land 169,000
Equipment 20,900
Accumulated Depreciation 375
Depreciation Expense 375
Salaries Expense 65,200
Utilities Expense 17,900
Income Tax Expense 10,400
Uncollectible Expense 5,620
Accounts Payable 102,200
Salaries Payable 34,000
Income Taxes Payable 10,400
Common Stock 234,000
Retained Earnings 69,600
Sales Revenue 234,000
Interest Revenue 120
Accrued Interest
Receivable 120
Cost of Goods Sold 122,000
Total $693,925 $693,915
3. Multi-step Income Statement for the period ended January 31, 2021:
Sales Revenue 234,000
Cost of goods sold 122,000
Gross profit $112,000
Interest Revenue 120
Total revenue $112,120
Depreciation Expense 375
Salaries Expense 65,200
Utilities Expense 17,900
Uncollectible Expense 5,620 $89,095
Income before tax $23,025
Income Tax Expense 10,400
Net Income $12,625
Retained Earnings, January 1 69,600
Retained Earnings, January 31 $82,225
4. Classified Balance Sheet as of January 31, 2021:
Assets:
Cash $ 2,600
Accounts Receivable 238,400
Uncollectible Accounts 9,220 229,180
Accrued Interest Receivable 120
Inventory 12,600
Current assets $244,500
Notes Receivable
(5%, due in 2 years) 28,800
Land 169,000
Equipment 20,900
Accumulated Dep. 375 20,525 218,325
Total assets $462,825
Liabilities:
Accounts Payable 102,200
Salaries Payable 34,000
Income Taxes Payable 10,400 $146,600
Equity:
Common Stock 234,000
Retained Earnings 82,225 $316,225
Total liabilities and Equity $462,825
5. Closing Journal Entries:
Accounts Debit Credit
Income Summary $221,495
Depreciation Expense 375
Salaries Expense 65,200
Utilities Expense 17,900
Income Tax Expense 10,400
Uncollectible Expense 5,620
Cost of Goods Sold 122,000
To close temporary accounts to the income summary.
Sales Revenue 234,000
Interest Revenue 120
Income Summary $234,120
To close temporary accounts to the income summary.
Cash $ 2,600
Accounts Receivable 238,400
Inventory 12,600
Notes Receivable
(5%, due in 2 years) 28,800
Accrued Interest
Receivable 120
Land 169,000
Equipment 20,900
Allowance for Uncollectible Accounts $9,220
Accumulated Depreciation 375
Accounts Payable 102,200
Salaries Payable 34,000
Income Taxes Payable 10,400
Common Stock 234,000
Retained Earnings 82,225
To close permanent accounts to the balance sheet.
Explanation:
a) Data and Calculations:
Accounts Debit Credit
Cash $ 60,100
Accounts Receivable 27,800
Allowance for
Uncollectible Accounts $ 3,600
Inventory 37,700
Notes Receivable
(5%, due in 2 years) 28,800
Land 169,000
Accounts Payable 16,200
Common Stock 234,000
Retained Earnings 69,600
Totals $ 323,400 $ 323,400
See workings attached.