Bank + Other assets = Equity + Liabilities
Q: Penny's direct material cost is $3 per unit. The direct labor rate is $11 per hour and each units…
A: The cost of goods sold includes the cost of goods that are sold including variable and fixed…
Q: Treasury Shares On October 10, the capital of the shareholders (stockholders' equity) of Sherman…
A: Lets understand the basics. Journal entry is required to make to record event and transaction that…
Q: Kate's Kale Chips produces a healthy snack made primarily of kale. Each bag of the product sells for…
A: Product cost is the cost which is incurred on the manufacture of the goods. It includes the cost of…
Q: Evaluate each of the following transactions in terms of their effect on assets, liabilities, and…
A: Accounting equation is the basic equation which is followed in the financial accounting system. The…
Q: RGW Industries purchased the net assets of SP Company for P1,300,000. A schedule of the net assets…
A: In the case of the acquisition of companies, the value of the cost of control (goodwill or capital…
Q: anu has forecast sales to be $129900 in February, $159900 in March, $163400 in April, and $177000kn…
A: Cash receipts refer to the amount that is received in against of sale of goods or services. It is…
Q: What do you understand by Goodwill?
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: Describe how total fixed costs and unit fixed costs behave as the level of activity increases?
A: Fixed cost: It is a cost that does not change with an increase or decrease in output i.e it remains…
Q: This year, Sigma Incorporated generated $686,250 income from its routine business operations. In…
A: Section 1231 Gain/losses: Real estate or depreciable business equipment held for more than a year is…
Q: Mr. Lion, who is in the 37 percent tax bracket, is the sole shareholder of Toto Inc., which…
A: Note: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: [The following information applies to the questions displayed below.] Astro Company sold 22,500…
A: The break even point is the point at which the total cost and total revenue are equal, which means…
Q: Cullumber Company borrowed $760,000 on December 31, 2019, by issuing an $760,000, 8% mortgage note…
A: Introduction: Liabilities are legally binding promises that must be paid to some other person or…
Q: Required information [The following information applies to the questions displayed below.] Manuel…
A: Standard overhead rate is = Budgeted overhead at expected level of capacity/ hours at budgeted level…
Q: When budgeting, how do we go about figuring out what our costs are for the coming year?
A: A budget is a schedule that shows estimated revenues and expenses for a specific future period.…
Q: The Harris Company is the lessee on a four-year lease with the following payments at the end of each…
A: Leasing is an agreement which is usually written between the lessor and the lessee which allows for…
Q: Acquisition Cost On January 1, 2017, Ruby Company purchased a piece of equipment with a list price…
A: Acquisition cost of equipment:— It is the purchase cost of equipment less discount plus any capital…
Q: Mark the correct statements [ ]Lead time is the interval between when an order is placed and when…
A: Inventory Management: Businesses may decide which goods to order when and in what amounts by using…
Q: 2. A retailer purchased repair equipment for RM 36,000. If the estimated life of the equipment is 12…
A: Depreciation is the outlay which is reported in the books to report the regular wear and tear on an…
Q: 4. Mahogany Company had the following information relating to its accounts receivable at December…
A: Mahogany company uses allowance method for recording the expected estimated credit loss. Allowance…
Q: Instructions: 1. Prepare the journal entry (if any) to record the impairment of the asset at…
A:
Q: on 1 enny's direct material cost is $5 per unit. The direct labor rate is $19 per hour and each…
A: The cost of goods sold is, essentially, the cost that is incurred to produce the goods sold. These…
Q: on 4 Obinson Corp., which operates on a calendar year, expects to sell 1380 units in October, and…
A: In the given question, sales are increases in the number units, by 130 units every month and the…
Q: BAK Corp is considering purchasing one of two new diagnostic machines. Either machine would make it…
A: Solution: Net present value is computed as = Present value of cash inflows - Initial Investment…
Q: Superior Micro Products uses the weighted-average method in its process costing system. Data for the…
A: The equivalent units are calculated on the basis of percentage of the work completed during the…
Q: Say the Fed wants to increase the money supply in the country. Which of the following open market…
A: The Fed can influence the money supply by modifying reserves requirement which generally refers to…
Q: se the following information for the Exercises below. (Algo) Skip to question [The following…
A: Introduction: A tangible item's cost can be spread out over the period of its useful life using the…
Q: SuperCare Pty Ltd pays total taxable wages for the entire financial year beginning 1 July 2019,…
A: To determine your organization's state tax liability in each Australian state and territory, you…
Q: ABC Corp. issued 8-year bonds a year ago. The bonds make semiannual payments. The YTM (yield to…
A: Face value of bond :— It is the price that is paid to the investor when the term of bond expires or…
Q: Answer only b and c
A: Depreciation - Depreciation is the term used to describe the gradual decline in asset value caused…
Q: QS 8-15 (Algo) Intangible assets and amortization LO P4 On January 1 of this year, Diaz Boutique…
A: Introduction: The act of logging any transaction, whether or not it is an economic one, is known as…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: A master budget is a financial plan that outlines an organization's projected income and expenses…
Q: Question 5 Emma Co manufactures electric motors. The company expects to sell 440 units in June and…
A: Manufacturing Overheads are indirectly incurred cost which could not be directly traced to…
Q: On April 1, 2020, Aeroplus Corporation purchased Johnson Company by paying $200,000 cash and issuing…
A: Introduction Amortization is like a depreciation which is used to reduce or lower the loan and book…
Q: The general ledger of Grumpy Corporation as of December 31, 2021, includes the following accounts:…
A: The balance sheet is one of the financial statements of a company, that determines its net worth at…
Q: TufStuff, Incorporated, sells a wide range of drums, bins, boxes, and other containers that are used…
A: In order to determine the contribution margin per unit, the variable cost per unit are required to…
Q: Morganton Company makes one product and it provided the following information to help prepare the…
A: The budgets are prepared to estimate the requirements during the period. The sales budget is the…
Q: Exercise 7-4 (Algo) Direct write-off method LO P1 Dexter Company uses the direct write-off method.…
A: Introduction: A journal entry is used to document a commercial transaction in the accounting records…
Q: . Calculate the depreciation deduction and the unrecovered investment during each year of the
A: Depreciation is the expenses charged to profit and loss statement over the life of asset. it…
Q: five year promissory note with a face value of $5000, bearing interest at 6% compounded…
A: To calculate amount to be paid for promissory note first of all we will calculate future price after…
Q: Question 4 Use the information provided below to prepare the following for January and February…
A: Debtors Collection Scheduled :— It is a scheduled that provides net Cash collection from the…
Q: DO IT! 13.1a (LO 1), C Indicate whether each of the following statements is true or false. If false,…
A: “Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: consider the following summary interim cost reports of a project, say in week 10. Assume that A, B,…
A: In the context of the given question, we need to compute the EV, CV, SV, CPI, SPI, and CR for the…
Q: Based on last year’s Statement of Comprehensive Income, the company’s marginal tax rate was 35%.…
A: Lease refers to the contractual agreement among two parties named as lessor and lessee where lessor…
Q: Checkbook balance:$1,792.50 Bank statement balance: $972.00 Checks outstanding (checks written…
A: Ideally cash balance as per cashbook must reconcile with bank balance as per bank statement. If…
Q: b. 15800 is not correct - what is the correct answer?
A: Materials inventory refers to the aggregate cost of all the component parts that are presently in…
Q: Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the…
A: Predetermined overhead rate is based on the estimated overhead charges incurred and is determined on…
Q: Discuss five different defensive tactics that the target company can use to thwart this takeover…
A: The shielding techniques a business enterprise employs to thwart a antagonistic takeover will have a…
Q: What outside basis do Lance and Francesca have in their partnership interests at the end of the…
A: Given in the question: Lance Limited Partner Francesca General Partner Profits and…
Q: What is the budgeted overhead rate for the assembly department? OA $0.80 per direct labor-hour OB…
A: Direct Costs are directly attributable to the specific product or department but indirect costs are…
Q: A company's master budget for October is to manufacture and sell 31,600 units, for a total sales…
A: The variance is the difference between the actual data and standard output of the production. The…
Ben started a new business called Easy Deliveries on 1 May 2022. The company is
situated in Manaung and delivers pakcages on behalf of clients.
On May 1st, he deposits R16 500 in the bank account to commence the business. The
following transactions took place during May 2022
2. Pays rental for the premises for May of R2 000.
3. Purchases a delivery vehicle of R75 000 on credit from ABC Ltd. An
immiate deposit of R7 500 was paid per EFT.
10. Receives R18 000 for delivery services rendered.
12. Borrows R85 000 from Ocean Bank.
14. Issues an invoice to Blue (Pty) Ltd for delivery services rendered for
R12 300.
15. Buys stationary for R8 500 and pay via EFT.
17. Received an account from XZZZ Motors for fuel purchased on account
during the month of R5 500.
18. Withdraws R5 000 from an ATM for personal use.
26. Pays salaries of R9 500.
Required
Use the information provided above and indicate the effect the transactions
would have on the
answer:
20
Bank + Other assets = Equity + Liabilities
Step by step
Solved in 2 steps
- Hajun Company started its business on May 1, 2019. The following transactions occurred during the month of May. Prepare the journal entries in the journal on Page 1. A. The owners invested $5,000 from their personal account to the business account. B. Paid rent $400 with check #101. C. Initiated a petty cash fund $200 check #102. D. Received $400 cash for services rendered E. Purchased office supplies for $90 with check #103. F. Purchased computer equipment $1,000, paid $350 with check #104 and will pay the remainder in 30 days. G. Received $500 cash for services rendered. H. Paid wages $250, check #105. I. Petty cash reimbursement office supplies $25, Maintenance Expense $125, Miscellaneous Expense $35. Cash on hand $18. Check #106. J. Increased Petty Cash by $50, check #107.Inner Resources Company started its business on April 1, 2019. The following transactions occurred during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $8,500 from their personal account to the business account. B. Paid rent $650 with check #101. C. Initiated a petty cash fund $550 check #102. D. Received $750 cash for services rendered. E. Purchased office supplies for $180 with check #103. F. Purchased computer equipment $8,500, paid $1,600 with check #104 and will pay the remainder in 30 days. G. Received $1,200 cash for services rendered. H. Paid wages $560, check #105. I. Petty cash reimbursement office supplies $200, Maintenance Expense $140, Miscellaneous Expense $65. Cash on Hand $93. Check #106. J. Increased Petty Cash by $100, check #107.Taylor Company recently purchased a piece of equipment for $2,000 which will be paid within 30 days after delivery. At what point would the event be recorded in Taylors accounting system? When Taylor signs the agreement with the seller When Taylor receives an invoice (a bill) from the setter When Taylor receives the asset from the seller When Taylor pays $2.000 cash to the seller
- On October 1, 2019, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business: Oct. 1. Jay transferred cash from a personal bank account to an account to be used for the business, 18,000. 4.Paid rent for period of October 4 to end of month, 3,000. 10.Purchased a used truck for 23,750, paying 3,750 cash and giving a note payable for the remainder. 13.Purchased equipment on account, 10,500. 14.Purchased supplies for cash, 2,100. 15.Paid annual premiums on property and casualty insurance, 3,600. 15.Received cash for job completed, 8,950. Enter the following transactions on Page 2 of the two-column journal: 21.Paid creditor a portion of the amount owed for equipment purchased on October 13, 2,000. 24.Recorded jobs completed on account and sent invoices to customers, 14,150. 26.Received an invoice for truck expenses, to be paid in November, 700. 27.Paid utilities expense, 2,240. 27.Paid miscellaneous expenses, 1,100. Oct. 29. Received cash from customers on account, 7,600. 30.Paid wages of employees, 4,800. 31.Withdrew cash for personal use, 3,500. Instructions 1. Journalize each transaction in a two-column journal beginning on Page 1, referring to the following chart of accounts in selecting the accounts to be debited and credited. (Do not insert the account numbers in the journal at this time.) Journal entry explanations may be omitted. 2. Post the journal to a ledger of four-column accounts, inserting appropriate posting references as each item is posted. Extend the balances to the appropriate balance columns after each transaction is posted. 3. Prepare an unadjusted trial balance for Pioneer Designs as of October 31, 2019. 4. Determine the excess of revenues over expenses for October. 5. Can you think of any reason why the amount determined in (4) might not be the net income for October?Blue Company, an architectural firm, has a bookkeeper who maintains a cash receipts and disbursements journal. At the end of the year (2019), the company hires you to convert the cash receipts and disbursements into accrual basis revenues and expenses. The total cash receipts are summarized as follows. The accounts receivable from customers at the end of the year are 120,000. You note that the accounts receivable at the beginning of the year were 190,000. The cash sales included 30,000 of prepayments for services to be provided over the period January 1, 2019, through December 31, 2021. a. Compute the companys accrual basis gross income for 2019. b. Would you recommend that Blue use the cash method or the accrual method? Why? c. The company does not maintain an allowance for uncollectible accounts. Would you recommend that such an allowance be established for tax purposes? Explain.Lavender Company started its business on April 1, 2019. The following are the transactions that happened during the month of April. Prepare the journal entries in the journal on Page 1. A. The owners invested $7,500 from their personal account to the business account. B. Paid rent $600 with check #101. C. Initiated a petty cash fund $250 check #102. D. Received $350 cash for services rendered. E. Purchased office supplies for $125 with check #103. F. Purchased computer equipment $1,500, paid $500 with check #104, and will pay the remainder in 30 days. G. Received $750 cash for services rendered. H. Paid wages $375, check #105. I. Petty cash reimbursement Office Supplies $50, Maintenance Expense $80, Miscellaneous Expense $60. Cash on hand $8. Check #106. J. Increased Petty Cash by $70, check #107.
- Review the following transactions, and prepare any necessary journal entries. A. On July 16, Arrow Corp. purchases 200 computers (Equipment) at $500 per computer from a supplier, on credit. Terms of the purchase are 4/10, n/50 from the invoice date of July 16. B. On August 10, Hondo Inc. receives advance cash payment from a client for legal services in the amount of $9,000. Hondo had yet to provide legal services as of August 10. C. On September 22, Jack Pies sells thirty pies for $25 cash per pie. The sales tax rate is 8%. D. On November 8, More Supplies paid a portion of their noncurrent note in the amount of $3,250 cash.A business has the following transactions: A. The business is started by receiving cash from an investor in exchange for common stock $10,000. B. Rent of $1,250 is paid for the first month. C. Office supplies are purchased for $375. D. Services worth $3,450 are performed. Cash is received for half. E. Customers pay $1,250 for services to be performed next month. F. $6,000 is paid for a one year insurance policy. G. We receive 25% of the money owed by customers in D. H. A customer has placed an order for $475 of services to be done this coming week. How much total revenue does the company have?On March 1 of this year, B. Gervais established Gervais Catering Service. The account headings are presented below. Transactions completed during the month follow. a. Gervais deposited 25,000 in a bank account in the name of the business. b. Bought a truck from Kelly Motors for 26,329, paying 8,000 in cash and placing the balance on account, Ck. No. 500. c. Bought catering equipment on account from Luigis Equipment, 3,795. d. Paid the rent for the month, 1,255, Ck. No. 501. e. Bought insurance for the truck for one year, 400, Ck. No. 502. f. Sold catering services for cash for the first half of the month, 3,012. g. Bought supplies for cash, 185, Ck. No. 503. h. Sold catering services on account, 4,307. i. Received and paid the heating bill, 248, Ck. No. 504. j. Received a bill from GC Gas and Lube for gas and oil for the truck, 128. k. Sold catering services for cash for the remainder of the month, 2,649. l. Gervais withdrew cash for personal use, 1,550, Ck. No. 505. m. Paid the salary of the assistant, 1,150, Ck. No. 506. Required 1. Record the transactions and the balance after each transaction. 2. Total the left side of the accounting equation (left side of the equal sign), then total the right side of the accounting equation (right side of the equal sign). If the two totals are not equal, check the addition and subtraction. If you still cannot find the error, re-analyze each transaction.
- Discuss how each of the following transactions for Watson, International, will affect assets, liabilities, and stockholders equity, and prove the companys accounts will still be in balance. A. An investor invests an additional $25,000 into a company receiving stock in exchange. B. Services are performed for customers for a total of $4,500. Sixty percent was paid in cash, and the remaining customers asked to be billed. C. An electric bill was received for $35. Payment is due in thirty days. D. Part-time workers earned $750 and were paid. E. The electric bill in C is paid.The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the businesss operations: July 1.Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Musics checking account. 1.Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music store. Paid rent for July, 1,750. 1.Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2.Received 1,000 cash from customers on account. 3.On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for 80 hours per month for a monthly fee of 3,600. Any additional hours beyond 80 will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3.Paid 250 to creditors on account. 4.Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5.Purchased office equipment on account from Office Mart, 7,500. 8.Paid for a newspaper advertisement, 200. 11.Received 1,000 for serving as a disc jockey for a party. 13.Paid 700 to a local audio electronics store for rental of digital recording equipment. 14.Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16.Received 2,000 for serving as a disc jockey for a wedding reception. 18.Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22.Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23.Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27.Paid electric bill, 915. 28.Paid wages of 1,200 to receptionist and part-time assistant. 29.Paid miscellaneous expenses, 540. 30.Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31.Received 3,000 for serving as a disc jockey for a party. 31.Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists music during July. 31.Withdrew 1,250 cash from PS Music for personal use. PS Musics chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: Instructions 1. Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2. Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3. Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4. Prepare an unadjusted trial balance as of July 31, 2019.The transactions completed by PS Music during June 2019 were described at the end of Chapter 1. The following transactions were completed during July, the second month of the business's operations: July 1. Peyton Smith made an additional investment in PS Music by depositing 5,000 in PS Music's checking account. 1. Instead of continuing to share office space with a local real estate agency, Peyton decided to rent office space near a local music: store. Paid rent for July, 1,750. 1. Paid a premium of 2,700 for a comprehensive insurance policy covering liability, theft, and fire. The policy covers a one-year period. 2. Received 1,000 cash from customers on account. 3. On behalf of PS Music, Peyton signed a contract with a local radio station, KXMD, to provide guest spots for the next three months. The contract requires PS Music to provide a guest disc jockey for SO hours per month for a monthly fee of 3,600. Any additional hours beyond SO will be billed to KXMD at 40 per hour. In accordance with the contract, Peyton received 7,200 from KXMD as an advance payment for the first two months. 3. Paid 250 to creditors on account. 4. Paid an attorney 900 for reviewing the July 3 contract with KXMD. (Record as Miscellaneous Expense.) 5. Purchased office equipment on account from Office Mart, 7,500. 8. Paid for a newspaper advertisement, 200. 11. Received 1,000 for serving as a disc jockey for a party. 13. Paid 700 to a local audio electronics store for rental of digital recording equipment. 11. Paid wages of 1,200 to receptionist and part-time assistant. Enter the following transactions on Page 2 of the two-column journal: 16. Received 2,000 for serving as a disc jockey for a wedding reception. 18. Purchased supplies on account, 850. July 21. Paid 620 to Upload Music for use of its current music demos in making various music sets. 22. Paid 800 to a local radio station to advertise the services of PS Music twice daily for the remainder of July. 23. Served as disc jockey for a party for 2,500. Received 750, with the remainder due August 4, 2019. 27. Paid electric bill, 915. 28. Paid wages of 1,200 to receptionist and part-time assistant. 29. Paid miscellaneous expenses, 540. 30. Served as a disc jockey for a charity ball for 1,500. Received 500, with the remainder due on August 9, 2019. 31. Received 3,000 for serving as a disc jockey for a party. 31. Paid 1,400 royalties (music expense) to National Music Clearing for use of various artists' music during July. 31. Withdrew l,250 cash from PS Music for personal use. PS Music's chart of accounts and the balance of accounts as of July 1, 2019 (all normal balances), are as follows: 11 Cash 3,920 12 Accounts receivable 1,000 14 Supplies 170 15 Prepaid insurance 17 Office Equipment 21 Accounts payable 250 23 Unearned Revenue 31 Peyton smith, Drawing 4,000 32 Fees Earned 500 41 Wages Expense 6,200 50 Office Rent Expense 400 51 Equipment Rent Expense 800 52 Utilities Expense 675 53 Supplies Expense 300 54 music Expense 1,590 55 Advertising Expense 500 56 Supplies Expense 180 59 Miscellaneous Expense 415 Instructions 1.Enter the July 1, 2019, account balances in the appropriate balance column of a four-column account. Write Balance in the Item column and place a check mark () in the Posting Reference column. (Hint: Verify the equality of the debit and credit balances in the ledger before proceeding with the next instruction.) 2.Analyze and journalize each transaction in a two-column journal beginning on Page 1, omitting journal entry explanations. 3.Post the journal to the ledger, extending the account balance to the appropriate balance column after each posting. 4.Prepare an unadjusted trial balance as of July 31, 2019.