On January 1, 2021, Charlie purchased supplies for P20,000 and recorded a debit to Supplies and credit to Cash. On January 31, supplies on-hand amounted to P6,000. How much is the supplies expense?
Q: Activity-Based Management, Non-Value-Added Costs, Target Costs, Kaizen Costing Joseph Hansen, presi...
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-part...
Q: Interest versus dividend income Depot Logistics Inc. has declared pretax income from its operations ...
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve first three sub...
Q: Riverbed Corp. uses the direct method to prepare its statement of cash flows. Riverbed trial balance...
A: The cash flow statement, also known as the statement of cash flows, helps creditors determine how mu...
Q: Menlo Company distributes a single product. The company's sales and expenses for last month follow: ...
A: Formula: Break even point in units = Fixed cost / Unit contribution margin
Q: PROBLEM 3: FOR CLASSROOM DISCUSSION Share-for-share exchanges 1. Frown Co. issued shares in exchange...
A: In business combination one company issue share at fair market value to acquire other company.
Q: *Computed on the basis of sales dollars. Since the start of development work on the Wireless Wizard,...
A: Unit contribution margin is the excess of the selling price per unit over variable cost per unit.
Q: Maximum Annual Contributions to IRAS. H and W file a joint tax return. W is a lawyer with current-ye...
A: Contribution to IRA [Individual Retirement Accounts] are done for two purposes i.e. for retirement b...
Q: ABC Corporation’s liability account balances at June 30, 2018, included a 10% notes payable in the a...
A: What amount should be recorded as accrued interest for this note:- Accrued interest:- = outsta...
Q: Interest versus dividend income Depot Logistics Inc. has declared pretax income from its operations ...
A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for yo...
Q: 1st Quarter 8,600 2nd Quarter 6,500 3rd Quarter 7,300 4th Quarter 8, 200 Units to be produced Each u...
A: Total direct labor hours required = Direct labor hours required per unit * Units produced Total di...
Q: Identifying agency problems, costs, and resolutions You are the CEO of Nelson Corporation, and the c...
A: Takeover is a situation in which one company purchase the other company by paying consideration. We ...
Q: 1. Home Appliances allows customers to pay for merchandise with cash, debit cards, bank credit cards...
A: The procedure of entering business transactions for the first time in the books of accounts is known...
Q: 1. Define and site and example of a Savings and Mortgage Banking. 2. Site and Example of a Long Term...
A: “Since you have asked multiple questions, we will solve the first question for you. If you want any ...
Q: On July 1, 2021, Whiskey Company had an equipment with cost of P5,000,000 and accumulated depreciati...
A: Impairment of assets means reducing the book value of assets when carrying amount is more than high...
Q: A retailer purchases a can of soup for 24 cents and sellsit for 36 cents. Calculate the markup as a ...
A: The worth that a player puts to the cost price of an item is referred to as mark up. The worth added...
Q: Choose a company that creates a product or offers a service that you are familiar. Using the company...
A: Answer with explanation are s follows.
Q: Based on number 3, what is the VAT payable
A: VAT Payable = Output VAT - Presumptive Input VAT The rates of VAT are as follows Presumptive input V...
Q: Only statement 1 is true Only statement 2 is true Both statements are true O Both statements are fal...
A: Statement -1 Split up increase the number of share held and decreases the cost per share Statemen...
Q: Question 21, Warm-Up 1-6 (algorithmic) For 2020, Ross Corporation had pretax ordinary income of $501...
A: Calculation of Tax Liability For Calculating the tax liability which is consider the fact of the tax...
Q: Use the data in Exhibit 14.5 On October 7, Schmidt Machinery Company purchased 720 pounds of PVC at ...
A: journal entry under cost accounting integrated set where both financial and cost systems are recorde...
Q: The following trial balance was extracted from the books of Movies To The Max Ltd at July 31, the en...
A: Note: Hi! Thank you for the question, As per the honor code, we are allowed to answer three sub-part...
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per un...
A: Formula: Contribution Margin ratio = Contribution margin / sales
Q: Chapter 11: Internal Control and COSO Framework During your audit of ABC Sports, Inc., a retail ch...
A: Internal control seems to be a method implemented by management and other staff to offer adequate co...
Q: Abba Company accounted for noncurrent assets using the revaluation model. On June 30, 2021, the enti...
A:
Q: James Company purchased 900 shares of POP Company's stock as a long-term investment for $57,600. Fou...
A: Formula: Purchase price per share = Total purchase value / Number of shares purchased
Q: Paul Richard has a business named Splash-wear which sells various leather jackets to the market. Dur...
A: Note: A journal entry is a form of accounting entry that is used to report a business transaction in...
Q: Arun and Margot want to admit Tammy as a third partner for their partnership. Their capital balances...
A: Partnership The partnership is referred to as that form of business that is run by two or more perso...
Q: Isabela Company commercial operations at the beginning of the current year. The following costs are ...
A: The cost of land includes Purchase price Real estate commission Unpaid taxes Title search and title...
Q: Jenkins Company uses a job order cost system with overhead applied to jobs on the basis of direct la...
A:
Q: You have the following information for Van Gogh Inc. for the month ended October 31, 2022. Van Gogh ...
A: Inventory valuation is based on the flow of exemption used by the company. There are many methods fo...
Q: 2. If XYZ Company Acid-test ratio is computed as 1.7. Which statement interprets the acid-test ratio...
A: Ratio analysis means where different ratio of various years of years companies has been compared and...
Q: On April 1, 2021, Brandy Company had a machine with a cost of P5,000,000 and accumulated depreciatio...
A: Given information, Cost =P5,000,000 Accumulated depreciation=P3,750,000 Estimated selling price =P50...
Q: Madison Corporation sells three products (M. N, and O) in the following mix: 3:1:2. Unit price and c...
A: Contribution margin = Sales - Variable costs
Q: (LG 7.3) Which of the following is a capital cost? a. Anew printer. b. Paper for a new printer. c. C...
A: Capital costs seem to be funds used by an organization to acquire, enhance, or maintain long-term as...
Q: I REALLY NEED HELP ON THIS, PLEASE DON'T REJECT Ed Company acquired the assets and assumed ...
A:
Q: Journalize the following merchandise transactions, using the net method under a perpetual inventory ...
A: Merchandise Inventory: Products that a firm acquires with the intention of reselling to clients at a...
Q: Feather Friends, Incorporated, distributes a high-quality wooden birdhouse that sells for $20 per un...
A: Break even point = Fixed expenses / Contribution margin ratio where, Contribution margin ratio = Con...
Q: If JoBlo Inc., has a retained earnings opening balance of $50,000 at the beginning of the year, and ...
A: Formula: Ending retained earnings balance = Beginning retained earnings balance + Net income - Divid...
Q: have a 5-year useful life and a $500 salvage valu December 31, Year 1 to recognize expense relate A)
A: A decrease in the value of assets with time is known as depreciation. There are different methods in...
Q: Blender Mixer Direct material Direct labor 2$ 23 $. 34 16 44 Manufacturing overhead @ $56 per machin...
A: This question is about deciding which product is produced and what quantity by optimum use of the sc...
Q: Nozama.com Inc. sels consumer electronics over the Internet. For the next period, the budgeted cost ...
A: Formula: Activity rate of the sales order processing activity = Budgeted cost of sales order / Estim...
Q: National Co. needs to borrow P300,000 for the next 6 months. The company has a line of credit with a...
A: Introduction: Borrowing is quite prevalent in adulthood. Almost everyone will need a loan at some ti...
Q: On December 31, 2016, ABC Corp. issues $50,000,000 of 5%, 25-year, convertible bonds for total proce...
A: Introduction: Journals: Recording of a business transactions in a chronological order. First step in...
Q: No election is made s $580,000. Deters
A: Depreciation in the case of a new machine in the first year is the company is eligible for charging ...
Q: The chief financial officer (CFO) of New Age Fashion Ltd. has just received a request from a project...
A: Marginal cost-benefit analysis refers to examination of additional benefits of an activity on its co...
Q: ssets Cash 100,000 Accounts receivable 600,000 Inventory 900,000 Equipment, net 400,000 total 2...
A: Assets are resources that are controlled which results from prior transactions that are expected to ...
Q: 5. For common-size statement of comprehensive income , _______________ is set 100% a. Net Sales b....
A: Common size statement shows vertical analysis of the items of financial statements with respect to o...
Q: Cain Auto Supplies and Able Auto Parts are competitors in the aftermarket for auto supplies. The sep...
A: EPS is called Earning Per Share Earnings per share (EPS) is calculated as a company's profit divided...
Q: On March 1, 2020, P and Q decided to combine their business and form a partnership. Their balance sh...
A: Fixed Assets- Fixed assets are assets that cannot be quickly changed into cash. Rather, they are pur...
Q: Bain Corporation makes and sells state-of-the-art electronics products. One of its segments produces...
A: Contribution = sales - Variable cost Profit = Contribution - Fixed cost Total cost = Number of units...
Step by step
Solved in 2 steps
- 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.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?In December 2019, Swanstrom Inc. receives a cash payment of $3,500 for services performed in December 2019 and a cash payment of S4,500 for services to be performed in January 2020. Swanstrom also receives the December utility bill for S600 but does not pay this bill until 2020. For 2019, under the accrual basis of accounting, Swanstrom would recognize: a. $8,000 of revenue and $600 of expense. b. $8,000 of revenue and $0 of expense. c. $3,500 of revenue and $600 of expense. d. $3,500 Of revenue and $0 of expense.
- 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 sellerDomingo Company started its business on January 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 $10,000 from their personal account to the business account. B. Paid rent $500 with check #101. C. Initiated a petty cash fund $500 with check #102. D. Received $1,000 cash for services rendered. E. Purchased office supplies for $158 with check #103. F. Purchased computer equipment $2,500, paid $1,350 with check #104, and will pay the remainder in 30 days. G. Received $800 cash for services rendered. H. Paid wages $600, check #105. I. Petty cash reimbursement: office supplies $256, maintenance expense $108, postage expense $77, miscellaneous expense $55. Cash on hand $11. Check #106. J. Increased petty cash by $30, check #107.Assume that a lawyer bills her clients $15000 on June 30, for services rendered during June. The lawyer collects $8500 of the billings during July and the remainder in August. Under the accrual basis of accounting, when would the lawyer record the revenue for the fees? A. June, $15,000; July, $0; and August, $0 B. June, $0; July, $6,500; and August, $8,500 C. June, $8,500; July, $6,500; and August, $0 D. June, $0; July, $8,500; and August, $6,500
- 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.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.
- On January 1, Incredible Infants sold goods to Babies Inc. for $1,540, terms 30 days, and received payment on January 18. Which journal would the company use to record this transaction on the 18th? A. sales journal B. purchases journal C. cash receipts journal D. cash disbursements journal E. general journalThe following transactions occurred during December 31, 2021, for the Microchip Company. On October 1, 2021, Microchip lent $90,000 to another company. A note was signed with principal and 8% interest to be paid on September 30, 2022. On November 1, 2021, the company paid its landlord $6,000 representing rent for the months of November through January. Prepaid rent was debited. On August 1, 2021, collected $12,000 in advance rent from another company that is renting a portion of Microchip’s factory. The $12,000 represents one year’s rent and the entire amount was credited to deferred rent revenue. Depreciation on office equipment is $4,500 for the year. Vacation pay for the year that had been earned by employees but not paid to them or recorded is $8,000. The company records vacation pay as salaries expense. Microchip began the year with $2,000 in its asset account, supplies. During the year, $6,500 in supplies were purchased and debited to supplies. At year-end, supplies costing…On April 1, 2021, Nels Ferrer organized a business called Friendly Trucking. During April, the company entered into the following transactions: April 1 - Nels Ferrer deposited additional P500,000 cash in a bank account in the name of the business 1 - Purchased for P250,000 a transportation equipment to be use in the business. Nels paid 50% as down payment while the balance will be paid on May 15, 2020 1 - Paid rental for the month of April, P5,000 4 - Collected accounts from previous month, P13,200 5 - Earned and collected trucking income from Ryan, P8,000 8 - Earned trucking income from Jesper, P30,000 on account. Jesper will pay on May 8, 2020 10 - Paid salaries of drivers, P10,000 15 - Rented the vehicle to Joshua for P35,000, Joshua paid P20,000 on that date and the balance on April 20 18 - Paid electric bills for the month, P2,000 20 - Collected from Joshua the balance of his April 15 account 25 - Purchased office supplies, P2,300 29 - Earned and…