Accounting for Operating Activities in a New Business (the Accounting Cycle)

Penny’s Pool Service & Supply, Inc. (PPSS) had the following transactions related to operating the business in its first year’s busiest quarter ended September 30, 2013:

a. Placed and paid for $2,600 in advertisements with several area newspapers (including the online versions), all of which ran in the newspapers during the quarter.

b. Cleaned pools for customers for $19,200, receiving $16,000 in cash with the rest owed by customers who will pay when billed in October.

c. Paid Pool Corporation, Inc., a pool supply wholesaler, $10,600 for inventory received by PPSS in May.

d. As an incentive to maintain customer loyalty, PPSS offered customers a discount for prepaying next year’s pool cleaning service. PPSS received $10,000 from customers who took advantage of the discount.

e. Paid the office receptionist $4,500, with $1,500 owed from work in the prior quarter and the rest from work in the current quarter. Last quarter’s amount was recorded as an expense and a liability Wages Payable.

f. Had the company van repaired, paying $310 to the mechanic.

g. Paid $220 for phone, water, and electric utilities used during the quarter.

h. Received $75 cash in interest earned during the current quarter on short-term investments.

i. Received a property tax bill for $600 for use of the land and building in the quarter; the bill will be paid next quarter.

j. Paid $2,400 for the next quarter’s insurance coverage.

Required:

1. For each of the events, prepare journal entries, checking that debits equal credits.

2. Based only on these quarterly transactions, prepare a classified income statement (with income from operations determined separately from other items) for the quarter ended September 30, 2013.

3. Calculate the net profit margin ratio at September 30, 2013 (using income before taxes in place of net income). What does this ratio indicate about the ability of PPSS to control operations?

Answers

Answer 1
I’m sorry I don’t know but can someone help me!?!!?!
Answer 2

1. Journal Entries for the events in Quarter ending September 30, 2013:

a. Debit Advertising Expense $2,600

Credit Cash $2,600

b. Debit Cash $16,000

Debit Accounts Receivable $3,200

Credit Service Revenue $19,200

c. Debit Accounts Payable (Pool Corporation) $10,600

Credit Cash $10,600

d. Debit Cash $10,000

Credit Unearned Service Revenue $10,000

e. Debit Wages Expense $3,000

Debit Wages Payable $1,500

Credit Cash $4,500

f. Debit Vehicle Repairs Expense $310

Credit Cash $310

g. Debit Utilities Expense $220

Credit Cash $220

h. Debit Cash $75

Credit Interest Revenue $75

i. Debit Property tax expense $600

Credit Property tax Payable $600

j. Debit Prepaid Insurance $2,400

Credit Cash $2,400

2. Classified Income Statement for the Quarter ended September 30, 2013:

Service Revenue                        $19,200

Advertising Expense   $2,600

Wages Expense             3,000

Vehicle Repairs Expense  310

Utilities Expense               220

Property tax Expense       600  $6,730

Income from operations         $12,470

Interest Revenue                             $75

Income before taxes               $12,545

3. The net profit margin ratio = 64.95% ($12,470/$19,200 x 100)

3b. This ratio shows that PPSS is able to control the costs of its operations in such a way that it could convert as much as 65% income from its service revenue.

Data Analysis:

a. Advertising Expense $2,600 Cash $2,600

b. Cash $16,000 Accounts Receivable $3,200 Service Revenue $19,200

c. Accounts Payable (Pool Corporation) $10,600 Cash $10,600

d. Cash $10,000 Unearned Service Revenue $10,000

e. Wages Expense $3,000 Wages Payable $1,500 Cash $4,500

f. Vehicle Repairs Expense $310 Cash $310

g. Utilities Expense $220 Cash $220

h. Cash $75 Interest Revenue $75

i. Property tax expense $600 Property tax Payable $600

j. Prepaid Insurance $2,400 Cash $2,400

Learn more about calculating net profit margin at https://brainly.com/question/22024991


Related Questions

An entrepreneur who is green focuses on
a. helping others who are in need.
b. conserving resources.
c. operating with integrity.
d. finding societal needs that are not being met by the government.​

Answers

Hello!

An entrepreneur who is green focuses on environmental issues and the best options for sustainable businesses.

In this question, the best answer is B. "conserving resources."

I hope this helps you! Have a great day!

- Mal

Parker Company uses a job-order costing system and applies manufacturing overhead to jobs using a predetermined overhead rate based on direct labor-hours. Last year manufacturing overhead and direct labor-hours were estimated at $50,000 and 20,000 hours, respectively, for the year. In June, Job #461 was completed. Materials costs on the job totaled $4,000 and labor costs totaled $1,500 at $5 per hour. At the end of the year, it was determined that the company worked 24,000 direct labor-hours for the year and incurred $54,000 in actual manufacturing overhead costs. Required: a. Job #461 contained 100 units. Determine the unit product cost that would appear on the job cost sheet. b. Determine the underapplied or overapplied overhead for the year.

Answers

Answer:

Instructions are below.

Explanation:

First, we need to calculate the predetermined overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= (50,000/20,000)

Predetermined manufacturing overhead rate= $2.5 per direct labor hour

Now, we can determine the total cost and unitary cost of Job 461:

Direct labor hours= 1,500/5= 300

Total cost= 4,000 + 1,500 + 2.5*300= $6,250

Unitary cost= 6,250/100= $62.5

To calculate the under/over allocation, first, we allocate overhead for the whole company:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Allocated MOH= 2.5*24,000= $60,000

Under/over applied overhead= real overhead - allocated overhead

Under/over applied overhead= 54,000 - 60,000

Under/over applied overhead= $6,000 overallocated

Kelp Company produces three joint products from seaweed. At the split-off point, three basic products emerge: Sea Tea, Sea Paste, and Sea Powder. Each of these products can either be sold at the split-off point or be processed further. If they are processed further, the resulting products can be sold as delicacies to health food stores. Cost and revenue information is as follows. Sales Value and Additional Costs If Processed Further Product Pounds Produced Sales Value at Split-Off Final Sales Value Additional Cost Sea Tea 9,000 $ 60,000 $ 90,000 $ 35,000 Sea Paste 4,000 80,000 160,000 50,000 Sea Powder 2,000 70,000 85,000 14,000 Required: a-1. Compute the incremental benefit (cost) of further processing to these products. a-2. Which products should Kelp process beyond the split-off point

Answers

Answer:

a-1. Compute the incremental benefit (cost) of further processing to these products.

sea tea = ($5,000) losssea paste = $30,000sea powder = $1,000

a-2. Which products should Kelp process beyond the split-off point

sea paste and sea powder

Explanation:

Sales Value and Additional Costs If Processed Further

Product            Pounds        Sales value           Final sales     Additional

                        produced     at split-off             value              cost

Sea Tea              9,000          $60,000              $90,000        $35,000

Sea Paste           4,000          $80,000             $160,000       $50,000

Sea Powder       2,000           $70,000              $85,000        $14,000

incremental benefit of further processing:

sea tea = ($90,000 - $60,000) - $35,000 = -$5,000

sea paste = ($160,000 - $80,000) - $50,000 = $30,000

sea powder = ($85,000 - $70,000) - $14,000 = $1,000

For the year ended December 31, 2021, Fidelity Engineering reported pretax accounting income of $978,000. Selected information for 2021 from Fidelity’s records follows: Interest income on municipal governmental bonds $ 32,000 Depreciation claimed on the 2021 tax return in excess of depreciation on the income statement 58,000 Carrying amount of depreciable assets in excess of their tax basis at year-end 88,000 Warranty expense reported on the income statement 26,000 Actual warranty expenditures in 2021 10,000 Fidelity's income tax rate is 25%. At January 1, 2021, Fidelity's records indicated balances of zero and $7,500 in its deferred tax asset and deferred tax liability accounts, respectively. Required: 1. Determine the amounts necessary to record income taxes for 2021, and prepare the appropriate journal entry. 2. What is Fidelity’s 2021 net income?

Answers

Answer:

1. Income tax payable for 2021 = (Pretax accounting income - Interest income on municipal governmental bonds - Depreciation + (Warranty expense reported - Actual Warranty) ) * Income Tax rate

= (978,000 - 32,000 - 58,000 + (26,000 - 10,000)) * 25%

= $226,000

Income tax expense for 2021 = (Pretax Income - Interest income on municipal governmental bonds) * 25%

= (978,000 - 32,000) * 25%

= $236,500

Deferred tax asset - Warranty

=  (Warranty expense reported - Actual Warranty) * Income Tax rate

= (26,000 - 10,000)) * 25%

= $4,000

Deferred Tax liability

= Depreciation * Income Tax rate

= 58,000 * 25%

= $14,500

Journal entry

DR Income Tax Expense                                            $236,500

     Deferred Tax Asset                                               $4,000

CR Income Tax Payable                                                                  $226,000

     Differed Tax liability                                                                  $14.50

2. Net Income

= Pretax Accounting Income - Income tax expense

= 978,000 - 236,500

= $741,500

Problem 5-3 Future Value and Multiple Cash Flows [LO 1] Wells, Inc., has identified an investment project with the following cash flows. Year Cash Flow 1 $ 1,060 2 1,290 3 1,510 4 2,250 a. If the discount rate is 6 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the future value at an interest rate of 14 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the future value at an interest rate of 21 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

Answer:

a. $6,562.52

b. $7,218.32

c.$7,843.64

Explanation:

The present value of the cash flows would be found first and after, the present value has been determined, the future value would be found

Present value can be calculated using a financial calculator

Cash flow in year  1 = $1,060

Cash flow in year  2 = $1,290

Cash flow in year  3 = 1,510

Cash flow in year  4 = $2,250

Present value when interest rate is 6% = $5,198.131267

Present value when interest rate is 14% = $4,273.825287

Present value when interest rate is 21% = $3,659.117655

Now we find the future value

Future value = present value ( 1 + r)^n

r = interest rate

n = number of years

a. $5,198.131267(1.06)^4 = $6,562.52

b. $4,273.825287(1.14)^4 = $7,218.32

c. $3,659.117655 (1.21)^4 = $7,843.64

To find the PV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

In any industry, ethical behavior is the responsibility of ______.

Answers

Answer:

In any industry, ethical behavior is the responsibility of each employee

Answer:

each employee

Hope this helps

You are the new VP for HR of a company that has not been performing well, and everyone including youself, has a mandate to deliver results. The pressure has never been greater. Shareholders are angry after three years of a tough market that has left their company stock losing value every day. Many shareholders disparately need stock performance to pay for their retirement. Working for you is a 52-year-old manager with two kids in college. In previous evaluations, executives told him he was doing fine, when he clearly was not, and his performance is still far below par. At the same time, the executives awarded him impressive annual pay raises. If you are to show others in the company that you are willing to make tough decisions, you feel you must fire this individual. The question is, who is going to suffer --the firm and ultimately, the shareholders, who retirements are in jeopardy --or a nice guy who's been lied to for 20 years? 1. What would you do and why. 2. What factor(s) in this ethical dilemma might influence a person to make a less-than-ethical decision?

Answers

Many individual factors affect a person's ethical behavior at work, such as knowledge, values, personal goals, morals and personality. The more information that you have about a subject, the better chance you will make an informed, ethical decision.

For example, what if you had to decide whether to approve building a new company store? What if you did not have the knowledge that the store would disturb an endangered species nest? Without the appropriate knowledge, you could be choosing an unethical path.

Values are an individual's judgment or standard of behavior. They are another individual factor that affects ethical behavior. To some people, acting in an improper way is just a part of doing business. Would you feel that it is ethical to make up lies about your competitor just to win a contract? Some people's standard of behavior will feel that lying for a business financial win is not unethical.

Morals are another individual characteristic that can affect an individual's ethics. Morals are the rules people develop as a result of cultural norms and values and are, traditionally, what employees learn from their childhood, culture, education, religion, etc. They are usually described as good or bad behavior. Would you have good morals if you pushed a product on a customer that you knew was not going to help solve a problem?

Many ethical work situations will also be affected by a person's goals. Which characteristics do you feel are worthy to aspire to? Is financial gain ranked ahead of good character or integrity? If your personal goals are about acquiring wealth no matter what the consequence, then you might act unethical in the future.

Lastly, an employee's personality plays an important factor in determining ethical behavior. Do you enjoy risk or do you prefer the safe route? Individuals who prefer to take risks tend to have a higher chance of unethical conduct at work

You are ready to buy a house, and you have $25,000 for a down payment and closing costs. Closing costs are estimated to be 4% of the loan value. You have an annual salary of $48,000 (monthly income $4000) , and the bank is willing to allow your monthly mortgage payment to be equal to 25% of your monthly income. The interest rate on the loan is 7.2% per year with monthly compounding (.6% per month) for a 30-year fixed rate loan. How much money will the bank loan you

Answers

Answer:

The bank will loan you $147,321.36.

Explanation:

The amount the ban will loan can be calculated using the formula for calculating the present value of an ordinary annuity as follows:

PV = P * ((1 - (1 / (1 + r))^n) / r) …………………………………. (1)

Where;

PV = Present value of the of loan or the amount the bank will loan you =?

P = Monthly mortgage payment = Monthly salary * 25% = $4,000 * 25% = $1,000

r = Monthly interest rate = 7.2% / 12 = 0.072 / 12 = 0.006

n = number of months = 30 years * 12 months = 360

Substitute the values into equation (1) to have:

PV = $1,000 * ((1 - (1 / (1 + 0.006))^360) / 0.006)

PV = $1,000 * ((1 - (1 / 1.006)^360) / 0.006)

PV = $1,000 * ((1 - 0.99403578528827^360) / 0.006)

PV = $1,000 * ((1 - 0.116071859187515) / 0.006)

PV = $1,000 * (0.883928140812485 / 0.006)

PV = $1,000 * 147.321356802081

PV = $147,321.36

Therefore, the bank will loan you $147,321.36.

Your boss indicates that the store’s stock/sales ratio is 5:1. This means that _____ should be invested in inventory for every $1 of forecasted sales.

Answers

Answer:

5 stocks

Explanation:

This means that 5 stocks should be invested in inventory for every $1 of forecasted sales. That is because an x:y ratio means that for every y amount of something there needs to be an x amount as well. The same applies for the opposite, if there is an x amount of something then a y amount should exist. Therefore, in this scenario for every $1 of sales 5 stocks need to exist.

Fixed costs are _____.


costs that increase regardless of how much of a good or service is produced

costs that stay the same regardless of how much of a good or service is produced

costs that decrease regardless of how much of a good or service is produced

none of the above

Answers

Answer:

costs that stay the same regardless of how much of a good or service is produced

Explanation:

In the short run, fixed costs are the expenses that do not change regardless of the output level. In other words, fixed costs remain a constant amount throughout the financial period.  Examples of fixed costs include rent, administrative salaries, insurance, and loan repayments. These amounts will be the same irrespective of production levels.

Fixed costs contrast with variable costs that vary depending on the output level.

 

Toot! TiX Total Users 16,700 23,100 39,800 Revenues $ 2,100,000 $ 1,880,000 $ 3,980,000 Engineering hours 13,600 9,600 23,200 Engineering cost $ 330,000 $ 450,000 $ 780,000 Administrative costs $ 1,671,600 Required: a. Compute the predetermined overhead rate used to apply administrative costs to the two services assuming SMI uses the revenue to allocate administrative costs. b. Based on the rates computed in requirement (a), what is the profit for each service?

Answers

Answer:

Instructions are below.

Explanation:

First, we need to calculate the revenue proportion:

Toot!= 2,100,000/3,980,000= 0.53

TiX= 1,880,000/3,980,000= 0.47

Now, we can allocate administrative costs:

Toot!= 0.53*1,671,600= $885,948

TiX= 0.47*1,671,600= $785,652

Finally, the total, and unitary profit per product:

Toot!:

Revenues= 2,100,000

Engineering cost= (330,000)

Administrative costs= (885,948)

Total profit= $884,052

Unitary profit= 884,052/16,700= $52.937

TiX:

Revenues= 1,880,000

Engineering cost= (450,000)

Administrative costs= (785,652)

Total profit= $644,348

Unitary profit= 644,348/23,100= $27.894

June 1 T. James, owner, invested $11,500 cash in Sustain Company in exchange for common stock. 2 The company purchased $4,500 of furniture made from reclaimed wood on credit. 3 The company paid $700 cash for a 12-month insurance policy on the re-claimed furniture. 4 The company billed a customer $3,500 in fees earned from preparing a sustainability report. 12 The company paid $4,500 cash toward the payable from the June 2 furniture purchase. 20 The company collected $3,500 cash for fees billed on June 4. 21 T.James invested an additional $10,500 cash in Sustain Company in exchange for common stock. 30 The company received $5,500 cash from a client for sustainability services for the next 3 months.Prepare general journal entries for the above transactions

Answers

Answer:

General Journal

June 1

Cash $11,500 (debit)

Common Stock $11,500 (credit)

Received Cash in exchange of common stock

June 2

Furniture $4,500 (debit)

Accounts Payable $4,500 (credit)

Purchased Furniture on credit

June 3

Prepaid Insurance $700 (debit)

Cash $700 (credit)

Paid Insurance in advance

June 4

Accounts Receivable $3,500 (debit)

Fees Earned $3,500 (credit)

Fees earned not yet paid

June 12

Accounts Payable $4,500 (debit)

Cash $4,500 (credit)

Payment made to suppliers

June 20

Cash $3,500 (debit)

Accounts Receivable $3,500 (credit)

Cash receipt from debtors

June 21

Cash $10,500 (debit)

Common Stock $10,500 (credit)

Received Cash In exchange of Common Stock

June 30

Cash $5,500 (debit)

Deferred Revenue $5,500 (credit)

Received Cash for services to be rendered

Explanation:

See the journals and their narrations prepared above.

Answer:

Entries are posted

Explanation:

We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.

                                                  DEBIT     CREDIT                

1-June  (Common Stock issued)

Cash                                         $11,500

Common stock                                          $11,500

2-June  (Furniture purchased on Credit)

Furniture                                  $4,500

Accounts Payable                                      $4,500

3-June  (Prepaid Insurance Paid)

Prepaid insurance                   $700

Cash                                                              $700

4-June  (Revenue earned)

Accounts Receivable              $3,500

Service Revenue                                          $3,500

12-June  (Paid for Outstanding balance in payables)

Accounts Payable                  $4,500

Cash                                                                $4,500

20-June  (Received from Accounts Receivables)

Cash                                       $3,500

Accounts Receivables                                     $3,500

21-June  (Common Stock issued)

Cash                                      $10,500

Common stock                                             $10,500

30-June  (Advance received for services to be performed in future)

Cash                                       $5,500

Unearned Service Revenue                         $5,500

Question 5
The Elements of Supply Chain are:

Answers

Answer:

The elements of a supply chain include all the functions that start with receiving an order to meeting the customer's request. These functions include product development, marketing, operations, distribution networks, finance, and customer service. (I hope this helped!!! Have a great day!!)

Value of a mixed stream Harte​ Systems, Inc., a maker of electronic survillance​ equipment, is considering selling to a​ well-known hardware chain the rights to market its home security system. The proposed deal calls for the hardware chain to pay Harte ​$30,000 and ​$25,000 at the end of years 1 and 2 and to make annual​ year-end payments of ​$15,000 in years 3 through 9. A final payment to Harte of ​$10,000 would be due at the end of year 10. a. Select the time line that represents the cash flows involved in the offer. b. If Harte applies a required rate of return of 12​% to​ them, what is the present value of this series of​ payments? c. A second company has offered Harte an immediate​ one-time payment of ​$100,000 for the rights to market the home security system. Which offer should Harte​ accept?

Answers

Answer:

101,288

Explanation:

We can calculate the present value of each cash flow by dividing it by the rate of return along with the power of each period in which each cash flow occurs.

Requirement a:  Timeline that represents the cash flows involved in the offer

year 1 - 30,000  

year 2- 25000  

year 3 - 15000  

year 4 -15000  

year5 -15000

year6 -15000

year 7-15000

year8 -15000

year9 -15000

Requirement b: If Harte applies a required rate of return of 12​% to​ them

                                                  Present Value

year 1 - 30,000 /1.12                     26,786

year 2- 25000  /(1.12)^2               19,930

year 3 - 15000  /(1.12)^3               10,677

year 4 -15000  /(1.12)^4                9,533

year5 -15000 /(1.12)^5                  8,511

year6 -15000 /(1.12)^6                  7,599

year 7-15000/(1.12)^7                    6,785

year8 -15000 /(1.12)^8                  6,058

year9 -15000/(1.12)^9                   5,409

                                                   101,288

Requirement C:

It should accept the second offer of paying $100,000 as the first offer payment (i.e $101288.5) is greater than $100000

Eva received $60,000 in compensation payments from JAZZ Corp. during 2020. Eva incurred $5,000 in business expenses relating to her work for JAZZ Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,400. Based on these facts, answer the following questions: Use Tax Rate Schedule for reference. (Leave no answer blank. Enter zero if applicable.) d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year

Answers

Answer:

d. Assume that Eva is considered to be a self-employed contractor. What is her regular tax liability for the year

Since Eva's standard deduction is $12,000, then we must assume that we are dealing with income earned during 2018.

Eva's AGI = $60,000 - $5,000 (business expenses) = $55,000 - (7.65% x $55,000 for self employer taxes) - $12,000 (standard deduction) = $38,792.50

Eva's tax liability:

$9,700 x 10% = $97012% x ($38,700 - $9,700) = $3,48022% x ($38,792.50 - $38,700) = $20.35total tax liability = $4,470.35

Knowledge Check 01 Which of the following is deducted from the total selling and administrative expense budget to determine the cash disbursements for selling and administrative expense budget? Advertising expense Depreciation expense Selling commissions Utilities expense Knowledge Check 02 A company determines that the number of units sold is the cost driver for its variable selling and administrative expense budget. The product of its variable selling and administrative rate and budgeted unit sales will be ________. budgeted sales revenue total budgeted cash disbursements for selling and administrative expenses total budgeted fixed selling and administrative expenses total budgeted variable selling and administrative expenses

Answers

Answer:

Knowledge Check 01 Which of the following is deducted from the total selling and administrative expense budget to determine the cash disbursements for selling and administrative expense budget?

Depreciation expense

Depreciation expense is a non cash charge since there is no cash outflow associated to it. The same applies for amortization expense, asset impairments, stock based compensation and asset depletion (similar to depreciation but used by extracting companies like mines and oil companies).

Knowledge Check 02 A company determines that the number of units sold is the cost driver for its variable selling and administrative expense budget. The product of its variable selling and administrative rate and budgeted unit sales will be ________.

total budgeted variable selling and administrative expenses

Since we are dealing with budgets, any calculation is also a budget or forecast. We are calculating here the total budgeted variable selling and administrative expense since we are multiplying the predetermined variable S&A per unit x budgeted units.

Seven years ago, Lance Measy purchased a wooden statue of a Spanish Conquistador for $8,200 to put in his home office. Lance recently married a woman who he thinks has better taste then he does and she insists it has to go. He loves his new wife and agrees to sell the Conquistador statue on ebay and receives less than he paid for it, $7,000. What is his rate of return on the purchase of the statue? Hint, I/Y compounded annually

Answers

Answer:

-2.28%

Explanation:

we can use the future value formula:

FV = PV x (1 + r)ⁿ

$7,200 = $8,200 x (1 + r)⁷

(1 + r)⁷ = $7,000 / $8,200 = 0.853658536

⁷√(1 + r)⁷ = ⁷√0.853658536

1 + r = 0.9772

r = -0.0228 = -2.28%

almona Co. establishes a $200 petty cash fund on January 1. On January 8, the fund shows $38 in cash along with receipts for the following expenditures: postage, $74; transportation-in, $29; delivery expenses, $16; and miscellaneous expenses, $43. Palmona uses the perpetual system in accounting for merchandise inventory. Prepare journal entries to (1) establish the fund on January 1, (2) reimburse it on January 8, and (3) both reimburse the fund and increase it to $450 on January 8, assuming no entry in part 2. Hint: Make two separate entries for part 3.

Answers

i’m going to do the work look on google

Answer: Please see  answer in explanation column

Explanation:

1`. To record establishment of fund

Date Account titles and explanation     Debit          Credit

Jan 1            Petty cash                     $200  

                       Cash                                                  $200

2.To record the  reimbursement  the petty cash fund.

Date Account titles and explanation     Debit          Credit

Jan 8    Postage expense                            $74  

Merchandise inventory                                   $29  

Delivery expense                                             $16  

Miscellaneous expenses                           $43  

Cash                                                                                $162

Date Account titles and explanation     Debit          Credit

Jan 08     Petty cash                             $250  

                          Cash                                                   $250

 calculation

Petty cash= $450-$200 = $250

Nolan Company's cash account shows a $24,625 debit balance and its bank statement shows $23,541 on deposit at the close of business on June 30. Outstanding checks as of June 30 total $2,894. The June 30 bank statement lists $27 in bank service charges; the company has not yet recorded the cost of these services. In reviewing the bank statement, a $70 check written by the company was mistakenly recorded in the company’s books as $79. June 30 cash receipts of $3,982 were placed in the bank’s night depository after banking hours and were not recorded on the June 30 bank statement. The bank statement included a $22 credit for interest earned on the company’s cash in the bank. The company has not yet recorded interest earned. Prepare a bank reconciliation using the above information.

Answers

Answer:

Bank Reconciliation Statement as at June 30

Balance as per Bank Statement                $23,541

Add Outstanding Lodgements :                  $3,982

Less Unpresented Checks :                       ($2,894)

Balance as per Cash Book                        $24,629

Explanation:

First adjust the Cash Book Balance as follows :

Cash Book (Bank Columns Only)

Debit :

Balance before adjustments                       $24,625

Correction of Error                                                $9

Interest earned                                                    $22

Totals                                                           $24,656

Credit :

Bank service charges                                        $27

Adjusted balance (balancing figure)         $24,629

Totals                                                           $24,656

Then Prepare a Bank Reconciliation Statement :

Bank Reconciliation Statement as at June 30

Balance as per Bank Statement                $23,541

Add Outstanding Lodgements :                  $3,982

Less Unpresented Checks :                       ($2,894)

Balance as per Cash Book                        $24,629

Conclusion :

The Cash Balance is $24,629. This amount will be shown in the Balance Sheet under Current Assets Section.

name three benefits of being a for-profit business​

Answers

Answer:

Owner Income

Owner Income

Company Morale

Explanation:

hope this helped please give brainliest.

differentiate between piecemeal and time related salary determination methods​

Answers

Answer:

See below

Explanation:

1. The piecemeal pay method compensates worked based on the quantity of output produced while the time method rewards workers based on the time spent in producing the output. The piecemeal rate system pays per unit of production. The time rate system pays per the number of hours worked.

2. The piecemeal rate system emphasizes the quantity of output compared to the time rate system that focuses on the quality of output.

3.The piecemeal system recognizes and rewards more to efficient and skilled employees, but the time rate system tends to compensate employees in the same cadre equal amounts.

Here, we are required to differentiate between piecemeal and time related salary determination methods.

In Piecemeal salary determination methods, Workers are paid according to the number of products/units produced/action performed while in Time-related salary determination methods, workers are paid in accordance to the amount of time they spend at work/on a task or on the job.

In piecemeal salary determination methods, workers are not remunerated (i.e not paid for work or service) for the number of hours worked, regardless of how long it took to complete the task at hand while in Time-related salary determination methods, orkers with the same experience/qualifications are paid on salary scales regardless of the amount of work done.

Piecemeal salary determination method is mostly used in factories particularly in the textile/technology industries where the labor force is unskilled or sometimes semi-skilled. while Time-related salary determination method is used in many private and public sector businesses as majority of the labor force are skilled.

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Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $390,000. During 2021, Halifax sold merchandise on account for $12,800,000. Halifax's merchandise costs is 70% of merchandise selling price. Also during the year, customers returned $370,000 in sales for credit, with $204,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year. Required: 1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end. 2. What is the amount of the year-end refund liability after the adjusting entry is recorded

Answers

Answer:

Please find attached solution to the above questions

Explanation:

a. Record actual returns in 2021 of Merchandize that was sold prior to 2021.

b. Record actual returns in 2021 of Merchandize that was sold during 2021

c. Adjust the refund liability to its appropriate balance at year end.

2. What is the amount of the year end refund liability after the adjusting entry is recorded.

Please see detailed solution as attached in respect of the above questions.

Indicate in the space provided by each item whether it would appear on the income statement, balance sheet, or retained earnings statement: a. Service Revenue choose a statement b. Utilities Expense choose a statement c. Cash choose a statement d. Accounts Payable choose a statement e. Supplies choose a statement f. Salaries and Wages Expense choose a statement g. Accounts Receivable choose a statement h. Common Stock choose a statement i. Equipment choose a statement j. Advertising Expense choose a statement k. Dividends choose a statement l. Notes Payable choose a statement

Answers

Answer:

a. income statement

b. income statement

c. balance sheet

d. balance sheet

e. balance sheet

f.  income statement

g. balance sheet

h. balance sheet

i.  balance sheet

j.  income statement

k. retained earnings statement

l.  balance sheet

Explanation:

Income Statement,

Shows the Profit or Loss attained during the Reporting Period. Elements included in it are Revenues/Incomes and Expenses.

Balance Sheet,

Shows the Balance of Assets, Liabilities and Equity as at the Reporting Date.

Retained Earnings Statement

Shows the amount of Profit that is left as a reserve after the payments of dividends and transfers to other reserves.

How do productivity programs most benefit the way we work and live?

Answers

Answer:

They provide us with ways to communicate, display, and work with information more quickly and accurately.

The following payroll liability accounts are included in the ledger of Crane Company on January 1, 2020.FICA Taxes Payable $700Federal Income Taxes Payable 1,180.00State Income Taxes Payable 100.00Federal Unemployment Taxes Payable 275.00State Unemployment Taxes Payable 1,930.00Union Dues Payable 800U.S. Savings Bonds Payable 300In January, the following transactions occurred.Jan.10 Sent check for $800 to union treasurer for union dues. 12 Remitted check for $1,880.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. 15 Purchase U.S. Savings Bonds for employees by writing check for $300. 17 Paid state income taxes withheld from employees. 20 Paid federal and state unemployment taxes. 31 Completed monthly payroll register, which shows salaries and wages $54,000, FICA taxes withheld $4,131, federal income taxes payable $1,800, state income taxes payable $350, union dues payable $350, United Fund contributions payable $1,750, and net pay $45,619. 31 Prepared payroll checks for the net pay and distributed checks to employees.At January 31, the company also makes the following accrued adjustments pertaining to employee compensation.1. Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%.2. Vacation pay: 6% of gross earnings.1) Journalize the January transactions.Date Account Titles and Explanation Debit Credit Jan. 10 Union Dues Payable 800.00 Cash 800.00Jan. 12 FICA Taxes Payable 700.00 Federal Income Taxes Payable 1,180.00 Cash 1,880.00 Jan. 15 U.S. Savings Bonds Payable 300.00 Cash 300.00Jan. 17 State Income Taxes Payable 100.00 Cash 100.00 Jan. 20 Federal Unemployment Taxes Payable 275.00 State Unemployment Taxes Payable 1,930.00 Cash 2,205.00 Jan. 31 Salaries and Wages Expense 54,000.00 FICA Taxes Payable 14,131.00 Federal Income Taxes Payable 1,800.00 State Income Taxes Payable 350.00 11 Union Dues Payable 350.00 United Fund Contributions Payable 1,750.00 Salaries and Wages Payable 45,619.00 Jan. 31 Salaries and Wages Payable 45,619.00 Cash 45,619.00B) Journalize the adjustments pertaining to employee compensation at January 31.

Answers

Answer:

he following payroll liability accounts are included in the ledger of Crane Company on January 1, 2020.FICA Taxes Payable $700Federal Income Taxes Payable 1,180.00State Income Taxes Payable 100.00Federal Unemployment Taxes Payable 275.00State Unemployment Taxes Payable 1,930.00Union Dues Payable 800U.S. Savings Bonds Payable 300In January, the following transactions occurred.Jan.10 Sent check for $800 to union treasurer for union dues. 12 Remitted check for $1,880.00 to the Federal Reserve bank for FICA taxes and federal income taxes withheld. 15 Purchase U.S. Savings Bonds for employees by writing check for $300. 17 Paid state income taxes withheld from employees. 20 Paid federal and state unemployment taxes. 31 Completed monthly payroll register, which shows salaries and wages $54,000, FICA taxes withheld $4,131, federal income taxes payable $1,800, state income taxes payable $350, union dues payable $350, United Fund contributions payable $1,750, and net pay $45,619. 31 Prepared payroll checks for the net pay and distributed checks to employees.At January 31, the company also makes the following accrued adjustments pertaining to employee compensation.1. Employer payroll taxes: FICA taxes 7.65%, federal unemployment taxes 0.8%, and state unemployment taxes 5.4%.2. Vacation pay: 6% of gross earnings.1) Journalize the January transactions.Date Account Titles and Explanation Debit Credit Jan. 10 Union Dues Payable 800.00 Cash 800.00Jan. 12 FICA Taxes Payable 700.00 Federal Income Taxes Payable 1,180.00 Cash 1,880.00 Jan. 15 U.S. Savings Bonds Payable 300.00 Cash 300.00Jan. 17 State Income Taxes Payable 100.00 Cash 100.00 Jan. 20 Federal Unemployment Taxes Payable 275.00 State Unemployment Taxes Payable 1,930.00 Cash 2,205.00 Jan. 31 Salaries and Wages Expense 54,000.00 FICA Taxes Payable 14,131.00 Federal Income Taxes Payable 1,800.00 State Income Taxes Payable 350.00 11 Union Dues Payable 350.00 United Fund Contributions Payable 1,750.00 Salaries and Wages Payable 45,619.00 Jan. 31 Salaries and Wages Payable 45,619.00 Cash 45,619.00B) Journalize the adjustments pertaining to employee compensation at January 31.

Explanation:

Ratio analysis is an important component of evaluating company performance. It can provide great insights into how a company matches up against itself over time and against other players within the industry. However, like many tools and techniques, ratio analysis has a few limitations and weaknesses. Which of the following statements represent a weakness or limitation of ratio analysis? Check all that apply. A firm may operate in multiple industries. Different firms may use different accounting practices. A firm’s financial statements show only one period of financial data.

Answers

Answer:

Different firms may use different accounting practices.

Explanation:

Financial ratios are ratios that summarises financial information and can be used in comparison of performance of companies.

Types of financial ratios :

1. Activity ratios

2. Liquidity ratios

3. Solvency ratios

4. Profitability ratios

5. Valuation ratios

If different accounting practices are used, it would result in different data. This can hamper comparison among companies

Urban Drapers Inc., a drapery company, has been successfully doing business for the past 15 years. It went public eight years ago and has been paying out a constant dividend of $3.52 per share every year to its shareholders. In its most recent annual report, the company informed investors that it expects to maintain its constant dividend in the foreseeable future and that dividends are not expected to increase. If you are an investor who requires a 25.50% rate of return and you expect dividends to remain constant forever, then your expected valuation for Urban Drapers stock today is ________ per share.Urban Drapers has a sister company named Super Carpeting Inc. (SCI). SCI just paid a dividend (D_0) of $2.64 per share, and its annual dividend is expected to grow at a constant rate (g) of 5.50% per year. If the required return (r_s) on SCI's stock is 13.75%, then the intrinsic value of SCI's shares is _______ per share. Which of the following statements is true about the constant growth model? When using a constant growth model to analyze a stock, if an increase in the required rate of return occurs while the growth rate remains the same, this will lead to an increased value of the stock. When using a constant growth model to analyze a stock, if an increase in the required rate of return occurs while the growth rate remains the same, this will lead to a decreased value of the stock.

Answers

Answer:

The answer is "$0.138 and $33.76".

Explanation:

[tex]\text{Value of urban drapers stock} = \frac{\text{Annual dividend}}{\text{Required rate of return}}[/tex]

                                              [tex]= \frac{3.52}{25.50} \\\\= \$ 0.138[/tex]

[tex]\text{Intrinsic value of SCI share} = \frac{D_1}{ \text{Required rate - growth rate}}[/tex]

                                            [tex]= \frac{( 2.64 \times 1.055)}{0.1375 - 0.055} \\\\= \frac{2.7852}{0.0825}\\\\ = \$ 33.76[/tex]

The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processing department. The company's ending work in process inventory on August 31 consisted of 18,000 units. The units in the ending work in process inventory were 100% complete with respect to materials and 50% complete with respect to labor and overhead. If the cost per equivalent unit for August was $2.75 for materials and $4.25 for labor and overhead, the total cost assigned to the ending work in process inventory was:

Answers

Answer:

The correct answer is "$87,750".

Explanation:

In process inventory, the overall cost allocated to the final job would be:

⇒ [tex]Sum \ of \ material +labour \ material[/tex]

⇒ [tex]18000 \ units[/tex]

The unit of ending were 100%

⇒ [tex]2.75 = 45,500[/tex] ($)

Labor = [tex]18000\times 50 \ percent \times 4.25[/tex]

          = [tex]38,250[/tex] ($)

In process inventory, the overall cost allocated to the final job would be:

⇒  [tex]Material+Labor[/tex]

⇒  [tex]49,500+38,250[/tex]

⇒  [tex]87,750[/tex] ($)

Below is a partial current state VSM of a production process. In the Stenciling step a single machine, which is manned full-time by a single operator, is used to perform the operation. In the packaging step, the product is packaged into boxes by three employees working full-time. No machines are used in the packaging step. Employees work 7.5 hours a day. What is the minimum batch size that would enable the stenciling operation to meet daily demand:

Answers

Answer:

5000 units.

Explanation:

Kindly check the attachment for the diagram.

In order to solve this question that is the Determination of the minimum batch size that would enable the stenciling operation to meet daily demand, what we have to do is to divide the total number of time operation done per day by the Takt time.

The takt time = 7.5 hours a day × 3600/ 5000 daily demand rate.

The Takt time = 5.4 seconds.

Hence, the minimum batch size that would enable the stenciling operation to meet daily demand = 5000 from the given diagram

Timothy wants to cut costs in his company to increase the profitability of production. Which tactic should Timothy utilize to cut the costs and maintain the quality of output?

A.

using shorter transport routes

B.

use low-grade raw materials

C.

overworking the employees

D.

overstocking the input

Answer right gets

Answers

Answer:

A

Explanation:

Answer:

A) using shorter transport routes

Explanation:

I took the test, and just got it correct

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