The account balances and income statement of Winfrey Towing Service on June 30, 2018, follow:Equipment $18,250 Service Revinue $10,800Office Supplies 1,400 Account Receivable 8,400Notes Payable 5,000 Accounts Payable 11,000Rent Expense 550 Retined Earnings, June 1, 2018, 3,900Cash 2,200 Salries Expense 1,900Dividends 4,000 Common Stock 6,000Required:a. Prepare the statement of retained earnings for Winfrey Towing Service for the month ending June 30, 2018.b. What does the statement of a retained earnings report?
Answers
Answer:
See explanations below.
Explanation:
First , we need to calculate net income
Revenues :
Service revenue $10,800
Less : Expenses:
Salary expense $1,900
Rent expense $550
Total expense. ($2,450)
Net income. $8,350
a. Winfrey Towing Service
Statement of retained earnings
Month ended, June 30 2018
Retained earnings June 1, 2018 $3,900
Add net income for the month $8,350
$12,250
Less: Dividends ($4,000)
Retained earnings June 30, 2018 $8,250
b. Statement of retained earnings report is the change in retained earnings of a firm or business unit during a given period of time.
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Buffy is engaging product users to create an exhaustive list of things that bother them when they use the product and how often those situations arise, then asking the consumers to rate the list in order of importance and asking which brands are associated with the items on the list. She is using an approach called _____________________________
Mountain High Ice Cream Company transferred $76,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,600). Mountain High anticipates a $4,600 recourse obligation. The bank charges a 2% fee (2% of $76,000), and requires that amount to be paid at the start of the factoring arrangement. Mountain High has transferred control over the receivables, but determines that it still retains substantially all risks and rewards associated with them. Required: Prepare the journal entry to record the transfer on the books of Mountain High, considering whether the sales criteria under IFRS have been met.
Katie Homes and Garden Co. has 14,000,000 shares outstanding. The stock is currently selling at $66 per share. If an unfriendly outside group acquired 20 percent of the shares, existing stockholders will be able to buy new shares at 25 percent below the currently existing stock price.A. How many shares must the unfriendly outside group acquire for the poison pill to go into effect?B. What will be the new purchase price for the existing stockholders?
The McKnight Company expects sales in 2015 of 208 comma 000 units of serving trays. McKnight's beginning inventory for 2015 is 18 comma 000 trays, and its target ending inventory is 27 comma 000 trays. Compute the number of trays budgeted for production in 2015. Select the labels and enter the amounts to calculate the units of finished goods (trays) to be produced. Budgeted unit sales 208,000 Add target ending finished goods inventory 27,000 Total required units Deduct beginning finished goods inventory –18,000 Units of finished goods to be produced
Answers
Answer:
Explanation:
a. The computation of the economic order quantity is shown below:
=
where,
Carrying cost = $20 × 15% = 3
And, the annual demand = 450 bicycles × 12 months × 2 tyres = 10,800
And, the ordering cost is $50
Now put these values to the above formula
So, the value would equal to
=
= 600 tires
b. The number of orders would be equal to
= Annual demand ÷ economic order quantity
= $10,800 ÷ 600 tires
= 18 orders
c. The average annual ordering cost would equal to
= Number of orders × ordering cost
= 18 orders × $50
= $900
Final answer:
The Economic Order Quantity for the company is around 240 units. This leads to an estimated 23 orders per year with an average annual ordering cost of $1150.
Explanation:
The Economic Order Quantity (EOQ) is calculated using the equation √((2DS)/H). In this example, D represents the demand rate which is the number of bicycles produced a year (450 per month times 12, totaling 5400). S represents the ordering cost ($50) and H represents the holding cost which is 15% of the tire cost ($20) per unit, totaling $3 per unit.
So if you substitute these values into the formula, the EOQ equals √((2 * 5400 * 50)/3), which results in approximately 240 units. From this solution, the number of orders per year would be the annual demand divided by the EOQ, i.e., 5400 / 240 giving approximately 22.5 orders (rounded upwards it means 23 orders per year). The average annual ordering cost would be the cost per order times the number of orders per year (23 * $50), resulting in $1150.
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Required:
a. Determine the proceeds of the note, assuming that the note carries an interest rate of 6%.
b. Determine the proceeds of the note, assuming that the note is discounted at 6%.
Answers
Answer:
A. $100,000
B.$99,000
Explanation:
A. Calculation for Determining the proceeds of the note, assuming that the note carries an interest rate of 6%
Based on the information given the note is not discounted which means the face value is equal to the proceeds of $100,000
Hence,
Face value = Proceeds of $100,000
Therefore the proceeds of the note, assuming that the note carries an interest rate of 6% will be $100,000
b. Calculation for Determining the proceeds of the note, assuming the note is discounted at 6%
First step is to find the discount
Using this formula
Discount = Face value amount x Discount rate x (term of note / 360)
Let plug in the formula
Discount= $100,000 x .06 x 60/360
Discount =$360,000/360
Discount= $1,000
Second step is to calculate for the Proceeds
Calculation for the Proceeds
Using this formula
Proceeds = face amount – discount
Let plug in the formula
Proceeds=$100,000 – $1,000
Proceeds= $99,000
Therefore the proceeds of the note, assuming that the note is discounted at 6% will be $99,000
1. Calculate the selling price of the bonds.
2. Prepare journal entry for the issuance of the bonds and bond issue costs.
3. Assume that Barnett uses IFRS. Prepare the journal entry for the issuance of the bonds.
Answers
Answer:
1. The selling price of the bonds is $590.976.46
2 .The journal entry for the issuance of the bonds and bond issue costs would be as follows:
Debit Credit
Cash $538,976.26
Discount on bonds payable $39,023.74
Unamortized bonds issue costs $22,000
Bonds Payable $600,000
3. Assuming that Barnett uses IFRS, the journal entry for the issuance of the bonds would be as follows:
Debit Credit
Cash $600,000
Bonds Payable $600,000
Explanation:
In order to calculate the selling price of the bonds we would have to calculate first the present value of particular and present value of interest, hence:
present value of particular=($600,000×0.414643)=$248,785.80
present value of interest=$600,000×4%13.007936=$312,190.46
Therefore, selling price of the bonds=present value of particular+present value of interest
1. Selling price of the bonds=$248,785.80+$312,190.46=$590.976.46
2. The journal entry for the issuance of the bonds and bond issue costs would be as follows:
Debit Credit
Cash $538,976.26
Discount on bonds payable $39,023.74
Unamortized bonds issue costs $22,000
Bonds Payable $600,000
3. Assuming that Barnett uses IFRS, the journal entry for the issuance of the bonds would be as follows:
Debit Credit
Cash $600,000
Bonds Payable $600,000
Answers
Canliss Mining Company borrowed $41,006.
To find out how much Canliss Mining Company borrowed, we'll work step by step.
Future Value of $1 (FV): This factor calculates the future value of a present sum after a certain number of periods.
Given that the annual installment payments of $10,000 are not due for three years, we'll find the future value of this annuity.
The FV factor for 7% over three years is approximately 1.225.
So, the future value of the annuity is
Present Value of $1 (PV): This factor calculates the present value of a future sum. In this case, we want to find out how much the $12,250 due in three years is worth in present terms.
Using the PV factor for 7% over three years, we find it's approximately 0.816.
So, the present value is
This means that Canliss Mining Company borrowed approximately $10,002 from the local bank.
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Answers
Explanation:
There is no clear purposeful in the business writing above.
For it to be a message that effectively communicates the main information that you want to transmit, it is important that the message is written in the most objective and accurate way possible, so that there is no communication noise and so that the message reaches the receiver and the message is understood. central purpose of the message effectively.
Retained earnings, 1/1/20 $250,000 $240,000
Cash and receivables 170,000 70,000 $70,000
Inventory 230,000 170,000 210,000
Land 280,000 220,000 240,000
Buildings (net) 480,000 240,000 270,000
Equipment (net) 120,000 90,000 90,000
Liabilities 650,000 430,000 420,000
Common stock 360,000 80,000
Additional paid-in capital 20,000 40,000
Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value for all of the outstanding shares of Vicker. What will be the consolidated Additional Paid-In Capital and Retained Earnings (January 1, 2018 balances) as a result of this acquisition transaction?
(A) $524,000 and $420,000.
(B) $60,000 and $250,000.
(C) $524,000 and $250,000.
(D) $60,000 and $490,000.
(E) $380,000 and $250,000.
Answers
Answer:
The answer is (c)$524,000 and $250,000...the explanation is attached below
Explanation: