Answer:
4.1 years
Explanation:
The payback period is the time it takes the project to recover the initial investment required to carry it out.
We are not given any information about the actual yearly revenues and costs, but you give the average net cash flow per year, so we can use that amount to calculate the payback period:
the payback period = total investment / net cash flow = $11,500,000 / $2,779,548 = 4.137 ≈ 4.1 years
Cash 31 Kelly Pitney, Capital 12 Accounts Receivable 32 Kelly Pitney, Drawing 14 Supplies 33 Income Summary 15 Prepaid Rent 41 Fees Earned 16 Prepaid Insurance 51 Salary Expense 52 Rent Expense 18 Office Equipment 19 Accumulated Depreciation 53 Supplies Expense 21 Accounts Payable 54 Depreciation Expense 55 Insurance Expense 22 Salaries Payable 23 Unearned Fees 59 Miscellaneous Expense
Required:
Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank.
Answer:
The May transactions are:
May 5: Received cash from clients on account, $2,450.
May 9: Paid cash for a newspaper advertisement, $225.
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
May 15: Recorded services provided on account for the period May 1-15, $9,180.
May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
May 17: Recorded cash from cash clients for fees earned during the period May 1-16, $8,360.
May 20: Purchased supplies on account, $735.
May 21: Recorded services provided on account for the period May 16-20, $4,820.
May 25: Recorded cash from cash clients for fees earned for the period May 17-23, $7,900.
May 27: Received cash from clients on account, $9,520.
May 28: Paid part-time receptionist for two weeks' salary, $750.
May 30: Paid telephone bill for May, $260.
May 31: Paid electricity bill for May, $810.
May 31: Recorded cash from cash clients for fees earned for the period May 26-31, $3,300.
May 31: Recorded services provided on account for the remainder of May, $2,650.
May 31: Kelly withdrew $10,500 for personal use.
Solution:
Kelly Pitney
General Journal:
May 3:
Debit Cash $4,500
Credit Unearned Fees $4,500
To record advance payment for services.
May 5:
Debit Cash $2,450
Credit Accounts Receivable $2,450
To record cash receipt on account.
May 9:
Debit Miscellaneous Expense $225
Credit Cash $225
To record cash paid for a newspaper advertisement.
May 13:
Debit Accounts Payable $640
Credit Cash $640
To record part debt settlement to Office Station Co.
May 15:
Debit Accounts Receivable $9,180
Credit Fees Earned $9,180
To record services provided to clients on account, May 1 to 15.
May 16:
Debit Salaries Payable $750
Credit Cash $750
To record salaries paid.
May 17:
Debit Cash $8,360
Credit Fees Earned $8,360
To record cash receipt from clients for fees earned, May 1 to 16.
May 20:
Debit Supplies $735
Credit Accounts Payable $735
To record supplies purchased on account.
May 21:
Debit Accounts Receivable $4,820
Credit Fees Earned $4,820
To record fees earned, May 16 - 20.
May 25:
Debit Cash $7,900
Credit Fees Earned $7,900
To record cash receipt from clients for fees earned, May 17 - 23.
May 27:
Debit Cash $9,520
Credit Accounts Receivable $9,520
To record cash receipt from clients on account.
May 28:
Debit Salaries Payable $750
Credit Cash $750
To record salary paid.
May 30:
Debit Miscellaneous Expense $260
Credit Cash $260
To record payment of telephone bill for May.
May 31:
Debit Miscellaneous Expense $810
Credit Cash $810
To record electricity bill for May paid.
May 31:
Debit Cash $3,300
Credit Earned Fees $3,300
To record cash receipts from clients for May 26 - 31.
May 31:
Debit Accounts Receivable $2,650
Credit Fees Earned $2,650
To record fees earned for services on account.
May 31:
Debit Kelly Pitney, Drawing $10,500
Credit Cash $10,500
To record drawing for personal use.
Explanation:
The general journal is an important accounting tool that helps to record transactions as they occur daily. It identifies the two accounts involved in each transaction, which should be debited or credited as the case may be.
The account that is debited is the account that receives value. The account that is credited the account that gives value. Sometimes, for each business transaction or event more than two accounts are involved.
It is from the general journal that transactions are posted to the general ledger. The general ledger is a book that records transactions affecting all the accounts. It is not necessarily in a physical book form.
Answer:
*May 16
Salaries Expense: Debit 630
Salaries Payable: Debit 120
Cash: Credit 750
Explanation:
The salaries payable is equaled to $120 as states in the balance sheet. To find the salaries expense, subtract the cash and the salaries payable.
( 750 - 120 = 630 )
O Tooling
O Money
O Buildings
O Employees
Answer: employees
Explanation:
Answer:
An authority is a power to give orders and ask your subordinates to perform certain duties. Authority can be given to a person by government’s executives, owner of an organization, or by the representatives of GOD.
An authority is a legitimate power to influence people to compel them to perform the task given to them. For example, a mob has the power to punish a criminal, but they don’t have legitimate authority to punish the criminal.
The authority lies in the hands of the law. Similarly, in an organization, the authority lies in the hands of a manager to get organizational tasks accomplished by his subordinates.
However, the authority of the manager is limited to a particular department of the organization. He has no authority on his employees outside the organization.
Authority is the consequence of the position of an individual in an organization. A person can only be at the superior position of the organization if he has authority; a person with no authority can never be on the top position of an organization.
Therefore, the degree of authority is highest at the top level, and its degree keeps on decreasing the levels of the organization. That means only a person at the top level can give orders to the people at a low level and can compel them to perform tasks given to them, and a person at lower level can’t give orders to the people at the top or his peers.
Authority can be of two types such as official authority (where authority is given to a person by the organization he works for), and other is a personal authority (where authority is given to a person because of his ability to influence people in the organization.
What is the Responsibility?
Being responsible
Responsibility is a moral duty or an obligation of an employee, whether he is a manager or subordinate to fulfill the task given to them. The responsibility starts as soon as the job is assigned to the employee and finish with the completion of the task.
The person is responsible for the consequence of his performance in the task. The responsibility comes with authority.
A manager is responsible for the accomplishment of the task. The responsibility moves upwards in the organization from a lower level of employees to the upper level of management.
The responsibility is originated from the superior-subordinate relationship in an organization. Because of this relationship, the manager can do a task from his subordinates with responsibility.
Difference between authority and responsibility
Difference between authority and responsibility
AUTHORITY RESPONSIBILITY
An authority is a power or right that a person gets because of his designation, role, or job. A responsibility is an obligation that an employee has to fulfill the work bestowed on him
An authority is the outcome of a formal position in an organization. A responsibility is the outcome of a superior-subordinate relationship.
An authority is a legal right given to a person. A responsibility is consequence of authority.
It is a delegation of authority. It is an assumption of responsibility.
The flow of authority is from the upper level to lower level. The flow of authority is from lower level to upper level.
Authority requires the ability to give orders. Responsibility requires the ability to follow orders.
The authority lasts for a long period of time. The responsibility ends as soon as the work bestowed on the employee is complete.
The objective of the authority is to make decisions and implement them effectively. The objective of responsibility is to perform duties effectively assigned by the superiors.
Answer:
The correct answer is A) worldwide.
Explanation:
The concept of a global approach to tax collection is the determination of the tax burden without considering the origin of the profits reported in the tax declaration, which implies the homogenization of the tax burden that becomes effective taking into account double treaties. taxation, where information is received from other countries on the behavior of foreign branches in this regard.
Answer:
Product K91B= $10,743.82
Explanation:
Giving the following information:
Activity Cost Pool Activity Rate
Setting up batches $ 59.71 per batch
Processing customer orders $ 73.05 per customer order
Assembling products $ 4.40 per assembly hour
Product K91B
Number of batches 92
Number of customer orders 42
Number of assembly hours 496
We were given the allocation rates, all we need to do is allocate based on actual allocation base:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Product K91B= 59.71*92 + 73.05*42 + 4.4*496
Product K91B= $10,743.82
Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________
PART B: ANALYSIS OF RECEIVABLES METHOD
Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $___________
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $___________
Problem 3
Use PVH Corp.’s financial statement information to answer the following questions.
Provide the following account balances for PVH:
February 2, 2020
February 3, 2019
Accounts Receivable (gross)
Allowance for Doubtful Accounts
Accounts Receivable, net
Which of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)?
Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020?
Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020?
Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019.
Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.
Answer:
Assume that Bach Consulting uses the percent of sales method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
Dr Bad debt expense 300,000 (= $30,000,000 x 1%)
Cr Allowance for doubtful accounts 300,000
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $4,100,000 (= $4,400,000 - $300,000)
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $300,000
Assume that Bach Consulting instead uses the analysis of receivables method to estimate future uncollectible accounts.
What adjusting entry does Bach make to record May 2020 Bad Debt Expense?
Dr Bad debt expense 280,000 (= $360,000 - $80,000)
Cr Allowance for doubtful accounts 280,000
What is "Accounts Receivable, net" on Bach’s May 31, 2018 Balance Sheet? $4,120,000
What is "Bad Debt Expense" on Bach’s May 2020 Income Statement? $280,000
Use PVH Corp.’s financial statement information to answer the following questions.
Provide the following account balances for PVH:
February 2, 2020 February 3, 2019
Accounts Receivable (gross) $762,000,000 $800,000,000
Allowance for Doubtful Accounts $21,000,000 $22,000,000
Accounts Receivable, net $741,000,000 $778,000,000
Which of the above numbers represents the amount of its February 2, 2020 Accounts Receivable balance that PVH expects to collect in the subsequent year(s)?
$741,000,000
Which of the above numbers represents that amount that PVH believes it will not collect from its customers as of February 2, 2020?
$21,000,000
Which of the above numbers represents the total amount PVH is owed by customers as of February 2, 2020?
$762,000,000
Provide the journal entry (both accounts and amounts) that PVH must have made to record its estimate of Bad Debt Expense in fiscal year 2019.
Dr Bad debt expense 22,000,000
Cr Allowance for doubtful accounts 22,000,000
Provide the journal entry (both accounts and amounts) that PVH must have made to record Accounts Receivable writeoffs in fiscal year 2019.
Dr Allowance for doubtful accounts 22,000,000
Cr Accounts receivable 22,000,000
Explanation:
Accounts receivable = $4,400,000
beginning balance Allowance for doubtful accounts = $80,000
May's net sales = $30,000,000
1% of net sales are uncollectible
aging of accounts receivable results in a $360,000 estimate for the Allowance for doubtful accounts as of May 31, 2020