Answer:
Ending Cash balance 113,000
Explanation:
Beginnin 76,000
Cash receipts 304,000
payment of DM (137,000)
payment of DL (77,000)
other cash expenses (43,000)
loan repayment (10,000)
Ending Cash balance 113,000
Answer and Explanation:
In order to answer the question, we first need to understand the concept of Keynesian theory of great depression. John Maynard Keynes, says that during recession or depressed economic conditions, governments should increase their spending in order to create a correct balance of demand and avoid high unemployment. Once the recession and market forces are stable, by that time the full employment is reached and now the deficit could be repaid. Congress could bring the taxes back to its original state as the people are now back to stable condition. This would help to meet the deficit requirement.
Answer:
Credit of $80,000
Explanation:
Big-Mouth Frog Corporation Calculation for Retained earnings
Using this formula
Retained earnings =Revenue- Expenses
Where,
Revenue =$200,000
Expenses =$180,000
Let plug in the formula
Retained earnings =$200,000-$180,000
Retained earnings =$80,000
Therefore when the Income Summary is closed to Retained Earnings, the amount of the credit to Retained Earnings will be $80,000
The amount of the debit or credit to Retained Earnings when the Income Summary is closed for Big-Mouth Frog Corporation would be a credit of $50,000.
The Big-Mouth Frog Corporation's final balance in Retained Earnings is determined by calculating its net revenue (revenues minus expenses) and then subtracting any dividends. In this case, the corporation's net revenue is $200,000 (revenue) - $120,000 (expenses) = $80,000.
Then, subtract the dividends from the net revenue: $80,000 - $30,000 (dividends) = $50,000.
So, the amount of the Retained Earnings would be a credit of $50,000, when Income Summary is closed to Retained Earnings.
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The question asks to identify a problem in the liabilities section of a balance sheet, specifically in the payroll information, and suggest a solution. Possible issues could be inaccurate payroll calculations or inconsistencies between records. A possible solution could be auditing the payroll and implementing regular checks.
The question asks you to review the liabilities section of the balance sheet for a company named Rings and Things with a focus on the payroll information. It's important to note that without specific details from the balance sheet and payroll information, a precise issue can't be identified. However, typical problems in this area could include inaccurate payroll calculations or discrepancies between the balance sheet and payroll records.
A solution to these issues could involve auditing the payroll procedures to identify and rectify any errors or inconsistencies. Furthermore, regular checks and audits could be implemented to prevent these types of issues from occurring in the future. It’s fundamental that Janet and Omar ensure all records are meticulous and accurate to maintain a healthy balance sheet.
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Answer:
Explanation:
Most of the liability costs are coming from payroll, the individual salesperson. This employee only worked for 20 hours during April, and yet still makes an income of $1000 dollars. This means they have an hourly rate of $50 an hour, which is way more than the standard employee should be making. I would recommend Janet and Omar to decrease the hourly rate to something more standard, like minimum wage. This would decrease their liability costs by more than 50% because California's minimum wage rate is only about $12-13.
b. You learn that Maxine’s current at-risk basis in her investment is $1,000 and that her share of the current loss is expected to be $13,000. Based on these facts, how will her loss be treated?
c. After reviewing her situation, Maxine’s financial adviser suggests that she invest at least an additional $12,000 in Teal to ensure a full loss deduction in the current year. How do you react to his suggestion?
d. What would you suggest Maxine consider as she attempts to maximize her current year deductible loss?
Answer:
Explanation:
a) What was the accountant referring to in his comment?
The accountant was referring to the fact that because passive activity losses can only offset passive activity income, she will not be able to deduct the losses in this year. However, she would be able to carry forward the loss to future years to offset any passive activity income generated in those years.
b) You learn that Maxine's current at-risk basis in her investment is $1,000 and that her share of the current loss is expected to be $13,000. Based on these facts, how will her loss be treated?
Based upon the fact that her basis in her investment is only $1000, her losses will be of that amount because of the at-risk limitation, which limits the taxpayer’s deduction by the amount “at risk”. If there is no passive activity income, this would be carried forward to when Maxine would dispose of her entire interest.
c) After reviewing her situation, Maxine's financial adviser suggests that she invest at least an additional $12,000 in Teal to ensure a full loss deduction in the current year. How do you react to his suggestion?
I believe that her financial adviser’s advice to Maxine is a good idea because if her current lossis expected to be $13,000, by contributing $12,000 in Teal, she would be able to deduct the full basis of $13,000 invested into the company. If there is no passive activity income, this would be carried forward to when Maxine would dispose of her entire interest in Teal.
d) What would you suggest Maxine consider as she attempts to maximize her current year deductible loss? She should consider the advice given to her by her accountant.
Answer:
Adjusted balance = $23,387
Explanation:
Franklin Company
Bank Reconciliation statement
Bank balance as of August 31 $21,837
Add: Deposit in transit $ 7,350
$29,187
Less: Outstanding check $(5,800)
Adjusted cash balance $23,387
Cash balance as of August 31 $22,662
Add: Collection of Note receivable $ 870
$23,532
Less: Bank service charge $( 145)
Adjusted cash balance $23,387
b. A credit to Cash Over and Short for $4.00.
c. A debit to Petty Cash for $392.50.
d. A credit to Cash for $396.50.
e. A debit to Cash for $396.50.
Answer:
The correct answer would be:
A credit to cash of $385. However, this is not an option indicated. But, according to the figures provided, the answer i recommend is correct.
Explanation:
Debit: Various expenses $382
Debit: Cash shortage ($450 - $382 - $65) $3
Credit: Cash: 385
To record entry to replenish the petty cash fund.
The entry to replenish the petty cashfund will include a debit to Cash for $396.50. The correct option is e.
The custodian must record a debit to the Petty Cash account to raise it back to the starting balance of $450 in order to replenish the petty cash fund. $382 + $65 = $447 in total receipts and cash on hand (coins and currency).
The custodian is short by $2.50 because the initial fund amount is $450. A debit of $396.50 ($450 - $2.50) will be issued from Cash to reflect the amount owed to the custodian in order to return the Petty Cash account to $450.
Thus, the correct option is e.
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