Answer:
1.
Income Statement
$
Service Revenue 4,300
Less :Supplies Expense 410
Gross Income 3,890
Less :Depreciation Expense 2,420
Less :Rent Expense (2,920)
Net Loss 1,450
2.
Balance Sheet
Assets $
Non-Current Asset
Equipment (15,900-3,975) 11,925
Current Asset $
Cash 2,660
Accounts Receivable 2,140
Supplies 1,850
6,650
Total Asset 18,575
Common Stock 10,000
Retained Earnings 2,060
Liabilities
Current Liabilities $
Unearned Service Revenue 3,205
Accounts Payable 3,310
6,515
Total Equity and Liability 18,575
3.
Retained Earning Statement $
Retained Earning (at beginning) 4,510
Dividend Paid (1,000)
Net Loss for the year (1,450)
Retained Earning (at Ending) 2,060
Explanation:
1.
Income statement shows the profit or loss for the period by deducting all the expenses from the revenue. The net value from here transferred to retained earning in the balance sheet.
2.
Balance sheet shows the financial position of the company. It contains assets, equity and liabilities balance.
3.
Statement of retained earning shows the balance of retained earnings and adjust all the payments made to shareholders in the form of dividend and net profit or loss for the period.
The income statement shows a net loss of $1,450. The retained earnings statement is $2,060 after accounting for the net loss and dividends. The balance sheet shows a total of $18,575 in assets, $6,515 in liabilities, and $12,060 in stockholders equity.
We will first need to prepare the income statement, followed by the retained earnings statement, and finally the balance sheet.
Service Revenue: $4,300
Less Expenses:
Supplies Expense: $410
Depreciation Expense: $2,420
Rent Expense: $2,920
Total Expense: $5,750
Net Income (Service Revenue - Total Expense): -$1,450
Beginning Retained Earnings: $4,510
Add: Net Income: -$1,450
Less: Dividends: $1,000
Ending Retained Earnings: $2,060
Assets:
Cash: $2,660
Accounts Receivable: $2,140
Supplies: $1,850
Equipment: $15,900
Less: Accumulated Depreciation: $3,975
Total Assets: $18,575
Liabilities:
Accounts Payable: $3,310
Unearned Service Revenue: $3,205
Total Liabilities: $6,515
Stockholders Equity:
Common Stock: $10,000
Retained Earnings: $2,060
Total Stockholders Equity: $12,060
Total Liabilities and Stockholders Equity: $18,575
#SPJ3
b) false
Learning curves are indeed useful for measuring work improvement in repetitive, simple tasks. They represent worker improvement in efficiency and reduction in mistakes over time, as these tasks are completed on a repetitive basis.
The statement, 'Learning curves are useful for measuring work improvement for repetitive, simple jobs requiring short times to complete', is true. A learning curve is a concept that represents improvement in efficiency of production as workers increase in skill through repetition of tasks. This concept is often used in business and economics to measure work improvement, particularly for jobs that are simple and repetitive in nature. For instance, when an assembly line worker repeats the same task over and over, they typically become faster and make fewer mistakes over time, thus increasing productivity.
#SPJ12
Answer:
break-even level of revenues increases from $2,890,625 to $3,500,000
Explanation:
Break even point is the level of sales at which the company makes neither a Profit nor a loss.
Break -even Sales revenue = Fixed Cost / Contribution Margin Ratio
Old Break -even Sales revenue
Break -even Sales revenue = ( $800,000 + $125,000)/(1.00-0.68)
= $925,000/ 0.32
= $2,890,625
Old Break -even Sales revenue
Break -even Sales revenue = ( $600,000 + $100,000)/(1.00-0.80)
= $700,000/ 0.20
= $3,500,000
Answer:
Net income year 2 = $21,300
Explanation:
I looked for the missing information and found this:
Year Depreciation overstated Prepaid expense omitted
1 $2,500 $2,000
2 $4,000 $2,700
If your question doesn't include the same values, just adjust the answer.
Year 2's net income = net income (year 2) + overstated depreciation (year 2) + omitted prepaid expenses (year 1) - omitted prepaid expenses (year 2) = $18,000 + $4,000 + $2,000 - $2,700 = $21,300
Answer:
11.12
Explanation:
See attached files
Answer:
Explanation:
Suppose that LilyMac Photography has annual sales of $233,000, cost of goods sold of $168,000, average inventories of $4,800, average accounts receivable of $25,600, and an average accounts payable balance of $7,300.
Assuming that all of LilyMac’s sales are on credit, what will be the firm’s cash cycle? (Use 365 days a year. Do not round intermediate calculations. Round your final answer to 2 decimal places.)
Answer:
the net present value is $606.64
Explanation:
The computation of the net present value is shown below:
But before that the present value of annual cash inflows is to be determined i.e.
Present value = annual cash flows × PVIFA(8%,4years)
= $8,400 × 3.3121
= $27,821.64
Now
Net present value = Present value of cash flows - initial investment
= $27,821.64 - $27,215
= $606.64
Hence, the net present value is $606.64
Answer:
Fees Income 112,400 debit
Income Summary 112,400 credit
Income Summary 31,720 debit
Advertising Expense 3,800 credit
Depreciation Expense—Equip 800 credit
Rent Expense 2,600 credit
Salaries Expense 18,800 credit
Utilities Expense 5,720 credit
income summary 80,680 debit
Emilio Gonzalez, Drawing 6,200 credit
Emilio Gonzalez, Capital 74,480 credit
Explanation:
We close the temporary account which are, reveneus and expenses against income summary then we close this account balance against Emilio Capital Account along with Emilio's drawings.