Capital, 1 February 2019 Drawings Fixtures and fittings Equipment Accumulated depreciation of fixtures and fittings Accumulated depreciation of equipment Cash in Hand Hairdressing Fees Interest expense Wages and salaries Insurance expense Cash at bank (Cr) Rent income $ 16 000 1 900 30 000 25 200 6 000 1 320 750 38 100 500 23 900 3 850 910 12 300
Q: Thompson Distributors sold $50,000 worth of bonds to raise money for a new warehouse.…
A: Introduction: A bond is a fixed payment obligation issued by corporations or government entities to…
Q: Why do you think providers of finance are interested in a company's accounting information?
A: Finance means a money management system like Borrowing money, investing money, expenses money,…
Q: Amy and Emma have been in partnership for a number of years, investing capital of £156,000 and…
A: A partnership is an agreement between two or more partners where partners are agreed to work…
Q: Pell Company acquires 80% of Demers Company for $500,000 on January 1, 2019. Demers reported common…
A: A consolidated financial statement refers to a statement that presents grouped information of a…
Q: Consider the following partially completed schedules of cost of goods manufactured. Compute the…
A: Total manufacturing cost incurred during the period = Direct material used + Direct labour+…
Q: a) Define fixed, variable and semi-variable costs and give an example of each.
A: Since you have posted multiple questions we will do the first one for you. To get the remaining…
Q: Monterey Co. makes and sells a single product. The current selling price is $14 per unit. Variable…
A: New selling price per unit for part (d) = $14 - $2 = $12 New selling price per unit for part…
Q: What other expense can the Anderson family add to their budget to plan for occasional expenses?
A: It has been given the budget for the whole month as well as the incomes and expenditure list for the…
Q: Which of the following is a characteristic of a partnership? Oa. limited liability Ob. limited life…
A: The partnership comes into existence when two or more persons agree to do the business and further…
Q: Calculate the (1) Total Manufacturing Overhead, (2) Selling Expenses and (3) Administrative Expenses…
A: Manufacturing overhead is the cost of making of the good. It do not include the direct costs…
Q: Revenue on account amounted to $9,000. Cash collections of accounts receivable amounted to $8,100.…
A: Cash flow from operating activities means that the amount of cash inflows and outflows from the…
Q: Geronimo files his tax return as a head of household for year 2021. If his taxable income is…
A:
Q: T2 Manufacturing Ltd. manufactures electrical parts. Data for two of the company's customers is as…
A: preparation of comparative income statement are as follows
Q: At the beginning of 2017, EZ Tech Company's Accounts Receivable balance was $241,000, and the…
A: As per the given information: Beginning accounts receivable balance - $241,000 Balance in allowance…
Q: Parker Corp. included the following items under its inventory account: Raw materials.. .P 1,400,000…
A: Correct amount of the inventory is the inventory which has been present to the company on a…
Q: Assuming the income allocated to Kiyara is qualified business income, what is Kiyara's deduction for…
A: Qualified business income deduction It is the deduction, an individual can claim in order to reduce…
Q: Express the following comparative income statements in common-size percents. Using the common-size…
A: Common size comparative income statement :— It is an income statement in which all items of income…
Q: Stiller Company, an 80% owned subsidiary of Leo Company, purchased land from Leo on March 1, 2020,…
A: Introduction: A consolidation worksheet is a tool used to generate consolidated financial statements…
Q: for the Easy Solutions calculator to remain competitive and still meet the target profit margin of…
A: The target costing is like a marketing approach to the costing in which the management is…
Q: Financial Statements of a Manufacturing Firm The following events took place for Sorensen…
A: Cost of goods manufactured - Cost of Goods Manufactured is the total cost incurred for manufactured…
Q: Ken and Charles owns and D'Naa Fresh Option. Thye opened the business on January 1, 2019 selling…
A: The sales made on 7 June to Ang-ge Variety store is assumed to be cash sales. The sales made on 8…
Q: Let’s walk through an example and compute your post-tax returns. Suppose $2 million of your…
A: EBIT stands for Earnings before interest and taxes which states the profitability of the business…
Q: On 12/31/X4, Zoom, LLC, reported a $49,500 loss on its books. The items included in the loss…
A: Ordinary business income (loss) :— It is the difference between operating revenue and operating…
Q: 13. An increase in net assets for a not-for-profit organization that would be labeled exchange…
A: Introduction:- The net assets of a nonprofit organization are equals to the net worth (difference…
Q: Baker Industries’ net income is $24,000, its interest expense is $4,000, and its tax rate is 25%.…
A: ROE :— The return on equity is a measure of the profitability of a business in relation to the…
Q: Cash Flow Statement, Reported in Thousands Period Ending Net Income OPERATING ACTIVITIES, CASH FLOWS…
A: Answer:- Financial statement meaning:- Financial statements are documents that describe a company's…
Q: *Use Accrual Accounting Base Method Chart of Accounts (strictly use it): ASSETS: Cash and Cash…
A: Journal Entry The following accounting journal entry examples help you comprehend the most typical…
Q: [Choose ] V [Choose ] Merchandise Inventory Pre-paid Insurance Accumulated Depreciation Supplies…
A: The journal entries are prepared as Debit one account and credit other account. The adjustment…
Q: As the manager of Speedy Supermarket, answer the following questions. (Round dollars to the nearest…
A: Markup = Markup is the Difference between a Product price and cost as a percentage of the Cost.…
Q: On December 31, 2020, Roe Company leased a machine from Colt Company for a five-year period Equal…
A: Lease liability :— It is the obligation of making payment under the lease term by lesse to lessor.…
Q: Q3. ANZ Company accepts from Nike a €3,600, 90-day, 6% note dated May 10 in settlement of Nike's…
A: The note receivable is the asset for the business. If note receivable is due within one year then it…
Q: Compute cost of goods sold using the following information Finished goods inventory, beginning work…
A: Cost of goods sold represents the amount of expenses incurred on the goods that are sold in the…
Q: I need all blanks filled with the blue arrow pleaee and thank you.
A: Balance sheet include all assets and liabilities. Value of both side that is asset and equity should…
Q: Answer the following questions and give an example for each case: In which areas can the…
A: What are Embezzlement scheme? Embezzlement schemes can be defined as misuse or misappropriation of…
Q: PL manufactures athletic clothing, including shoes. Because of strict production specifications, the…
A: journal entry for spoilage units for above cases are as follows
Q: What are the advantages and disadvantages of reviewing the balance statement for a company.
A: Any financial statement typically lists a company's assets and debts, including shareholder equity…
Q: Explain the difference between inductive and deductive reasoning. Which method does Sherlock Holmes…
A: Introduction: The process of applying current information to draw conclusions, make predictions, or…
Q: You are the staff accountant working at a local tutoring center. The monthly financial statements…
A: Accounting equation represents that the total asset of the entity equal to its Liability and…
Q: Martinez Company’s relevant range of production is 7,500 units to 12,500 units. When it produces and…
A: The variable cost changes with change in level of production. The fixed cost remains constant at…
Q: In a manufacturing company of bicycles, the management wants to know the (1)Total Direct Costs and…
A: Direct cost is the cost which is directly incurred on the production of the goods whereas indirect…
Q: Match the concept that closely describes a particular depreciation method. Choose the correct answer…
A: Lets understand the basics. Double declining balance method is a accelerated depreciation method…
Q: Andre incorporated his sole proprietorship by transferring the following assets and debts to Raiders…
A: A sole proprietorship is an unincorporated business with only one owner who is responsible for…
Q: Breifly outline the tax consequences of each of these four matters for the year end of 31 decemeber…
A: You have asked four matters which are the four sub-parts of the question kindly resubmit the…
Q: You are the Certified Managerial Accountant (CMA) for Southwood Company. You have worked for the…
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three…
Q: Espresso Express operates a number of espresso coffee stands in busy suburban malls. The fixed…
A: Lets understand the basics. Costs are divided into two parts which are, (1) Fixed cost (2) Variable…
Q: Factory rent Factory utilities Sales salaries expense Office salaries expense Indirect materials How…
A: A cost sheet is a written statement that shows the cost of manufacturing the product in every stage…
Q: a) Explain what a temporary difference is and why it attracts deferred tax
A: Since you have asked multiple questions, we will solve the first question for you. If you want any…
Q: CJN Corporation is evaluating a project requiring a capital expenditure of $725,650. The project has…
A: The average rate of return refers to the income generated from the sum of cash flow over its…
Q: Stephen his amule resident 2012. morind anded 21 1
A: In Zambia income tax rules and regulations are governed by Zambia Revenue Authority[ZRA]…
Q: 5. What is the significance of the value $10,000? How was this value calculated? 6. What is the…
A: Marginal Tax rate :— The Amount of Additional Tax paid for every additional dollar earned as income.…
Step by step
Solved in 3 steps with 6 images
- Investing Activities and Depreciable Assets Verlando Company had the following account balances and information available for 2019: During 2019, Verlando recorded the following transactions affecting these accounts: a. Land with a carrying value of 35,000 was sold at a loss of 6,000. b. Land and equipment were purchased with cash during the period. c. Equipment with an original cost of 20,000 that had a book value of 4,000 was written off as obsolete. d. A building with an original cost of 60,000 and accumulated depreciation of 25,000 was sold at a 23,000 gain. e. Depreciation expense and amortization expense were recorded. f. Net income for the year was 60,000. g. A patent was acquired during the year in exchange for 1,200 shares of common stock with a par value of 1 per share and a market value of 26 per share. h. Additional marketable securities wefe purchased during the year. i. Verlando Company has no notes payable in the liabilities section of its balance sheet. Required: 1. Next Level Assuming that Verlando uses the indirect method to determine operating cash flows, what is the amount of depreciation expense and amortization expense that would be added back to net income: 2. Prepare the investing activities section of the statement of cash flows for the year ended December 31, 2019. 3. Prepare the disclosure for significant noncash transactions for the statement of cash flows for the year ended December 31, 2019.Partially Completed Spreadsheet Hanks Company has prepared the following changes in account balances for the spreadsheet to support its 2019 statement of cash flows: Additional information: The net income was 1,300. Depreciation expense was 350, and patent amortization expense was 100. At the end of 2019, long-term investments were purchased at a cost of 1,550. Land that cost 700 was sold for 900. On December 31, 2019, bonds payable with a face value of 2,000 were issued for equipment valued at 2,300. Two hundred shares of common stock were issued at 7 per share. Forty shares of common stock were issued as a small stock dividend, the relevant market price being 5 per share. Cash dividends declared and paid totaled 600. Required: On the basis of the preceding information, complete the spreadsheet.Worksheet Devlin Company has prepared the following partially completed worksheet for the year ended December 31, 2019: The following additional information is available: (a) salaries accrued but unpaid total 250; (b) the 80 heat and light bill for December has not been recorded or paid; (c) depreciation expense totals 810 on the buildings and equipment; (d) interest accrued on the note payable totals 380 (this will be paid when the note is repaid); (e) the company leases a portion of its floor space to KT Daniel Specialty Company for 50 per month, and KT Daniel has not yet paid its December rent; (f) interest accrued on the note receivable totals 80; (g) bad debts expense is 70; and (h) the income tax rate is 30% on current income and is payable in the first quarter of 2017. Required: 1. Complete the worksheet. (Round to the nearest dollar.) 2. Prepare the companys financial statements. 3. Prepare (a) adjusting and (b) closing entries in the general journal.
- Spreadsheet The following 2019 information is available for Payne Company: Partial additional information: The net income for 2019 totaled 1,600. During 2019, the company sold, for 390, equipment that cost 390 and had a book value of 300. The company sold land for 200, resulting in a loss of 40. The remaining change in the Land account resulted from the purchase of land through the issuance of common stock. Required: Making whatever additional assumptions that are necessary, prepare a spreadsheet to support the 2019 statement of cash flows for Payne.Balance Sheet and Notes Listed here in random order are Wicks Construction Limiteds balance sheet accounts and related ending balances as of December 31, 2019: Additional information: 1. The company reports on the balance sheet the total amount for inventories and the net book value of property, plant, and equipment, with the related details for each account disclosed in notes. 2. The straight line method is used to depreciate buildings, machinery, and equipment, based upon their cost and estimated residual values and lives. A breakdown of property, plant, and equipment shows the following: land at a cost of 32,000, buildings at a cost of 182,400 and a net book value of 120,200, machinery at a cost of 63,900, and related accumulated depreciation of 18,600, and equipment (40% depreciated) at a cost of 53,000. 3. Patents are amortized on a straight line basis directly to the Patent account. 4. Inventories are listed at the lower of cost or market value using an average cost. The inventories include raw-materials, 22,200; work in process, 34,700; and finished goods, 41,600. 5. Common stock has a 10 par value per share, 12,000 shares are authorized, and 6,280 shares have been issued. 6. Preferred stock has a 100 par value per share, 1,000 shares are authorized, and 400 shares have been issued. 7. The investment in bonds is carried at the original cost, which is the face value, and is being held to maturity. 8. Short-term investments in marketable securities were purchased at year-end. 9. The bonds payable mature on December 31, 2024. 10. The company attaches a 1-year warranty on all the products it sells. Required: 1. Prepare Wicks Constructions December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare notes to accompany the balance sheet that itemize company accounting policies; inventories; and property, plant, and equipment. 3. Next Level Compute the current ratio and the quick ratio. How do these two ratios provide different information about the companys liquidity? Why are these ratios useful?Cash Receipts from Customers Singleton Inc. had accounts receivable of $22,150 at January 1, 2019, and $26,850 at December 31, 2019. Net income for 2019 was $125,300 and sales revenue was $1,240,000. Required: Compute the amount of cash collected from customers using the direct method.
- Comprehensive: Balance Sheet, Schedules, and Notes The following is an alphabetical listing of Stone Boat Companys balances sheet accounts and account balances on December 31, 2019: Additional information: 1. The company reports on the balance sheet the net book value of property and equipment and long-term liabilities (known as control accounts). The related details are disclosed in the notes. 2. The straight-line method is used to depreciate property and equipment based upon cost, estimated residual value, and estimated life. The costs of the assets in this account are: land, 29,500; buildings, 164,600; store fixtures, 72,600; and office equipment, 30,000. 3. The accumulated depreciation breakdown is as follows: buildings, 54,600; store fixtures, 37,400; and office equipment, 17,300. 4. The long term debt includes 12%, 36,000 face value bonds that mature on December 31, 2024, and have an unamortized bond discount of 1,000; 11%, 48,000 face value bonds that mature on December 31, 2025, have a premium on bonds payable of 1,800, and whose retirement is being funded by a bond sinking fund; and a 13% note payable that has a face value of 6,200 and matures on January 1, 2022. 5. The non-interest-bearing note receivable matures on June 1, 2023. 6. Inventory is listed at lower of cost or market; cost is determined on the basis of average cost. 7. The investment in affiliate is carried at cost. The company has guaranteed the interest on 12%, 50,000, 15-year bonds issued by this affiliate, Jay Company. 8. Common stock has a 10 par value per share, 10,000 shares are authorized, and 1,000 shares were issued during 2019 at a price of 13 per share, resulting in 8,000 shares issued at year-end. 9. Preferred stock has a 50 par value per share, 2,000 shares are authorized, and 140 shares were issued during 2019 at a price of 55 per share, resulting in 640 shares issued at year-end. 10. On January 15, 2020, before the December 31, 2019, balance sheet was issued, a building with a cost of 20,000 and a book value of 7,000 was totally destroyed. Insurance proceeds will amount to only 5,000. 11. Net income and dividends declared and paid during the year were 50,500 and 21,000, respectively. Required: 1. Prepare Stone Boats December 31, 2019, balance sheet (including appropriate parenthetical notations). 2. Prepare a statement of shareholders equity for 2019. (Hint: Work back from the ending account balances.) 3. Prepare notes that itemize the balance sheet control accounts and those necessary to disclose any company accounting policies, contingent liabilities, and subsequent events. 4. Next Level Compute the debt-to-assets ratio at the cud of 2019. What is your evaluation of this ratio if it was 39% at the end of 2018? Use the following information for P415 and P416: McCormick Company, Inc. is one of the worlds leading producers of spices, herbs, seasonings, condiments, and other flavorings for foods. Its products are sold to consumers, with sonic of the leading brands of spices and seasonings, as well as to industrial producers of foods. McCormicks consolidated balance sheets for 20X2 and 20X3 follow.Refer to the information for Cox Inc. above. What amount would Cox record as depreciation expense for 2019 if the units-of-production method were used ( Note: Round your answer to the nearest dollar)? a. $179,400 b. $184,000 c. $218,400 d. $224,000Asset Efficiency Ratios Rumsford Inc.s financial statements for 2019 indicate the following account balances: Required: 1. Using this information, calculate Rumsfords receivable turnover ratio. (Note: Round to two decimal places.) 2. Using this information, calculate Rumsfords asset turnover ratio and also convert the ratio into days.
- Notes Receivable On January 1, 2019, Lisa Company sold machinery with a book value of 118,000 to Mark Company. Mark signed a 180,000 non-interest-bearing note, payable in three 60,000 annual installments on December 31, 2019, 2020, and 2021. The fair value of the machinery was 149,211.12 on the date of sale. The machinery had been purchased by Lisa at a cost of 160,000. Required: 1. Prepare all the journal entries on Lisas books for January 1, 2019, through December 31, 2021. 2. Prepare the notes receivable portion of Lisas balance sheet on December 31, 2019 and 2020.Classification of Assets and Liabilities Indicate the appropriate classification of each of the following as a current asset (CA), noncurrent asset (NCA), current liability (CL), or long-term liability (LTL). ______ 1. Inventory ______ 2. Accounts payable ______ 3. Cash ______ 4. Patents ______ 5. Notes payable, due in six months ______ 6. Taxes payable ______ 7. Prepaid rent (for the next nine months) ______ 8. Bonds payable, due in ten years ______ 9. Machinery