Answer:
$30,000
Explanation:
Calculation for the amount of equity income to reported
Using this formula
Equity income=[(Amount earned in 2012×(Outstanding common stock percentage +Additional percentage of Wiz)]
Let plug in the formula
Equity income = [($120,000 ×(15%+ 10%)]
Equity income = ($120,000 ×25%)
Equity income= $30,000
Therefore the amount of equity income to reported for 2012 will be $30,000
Requirements
1. Record each transaction in the journal, using the following account titles: Cash; Accounts Receivable; Office Supplies; Prepaid insurance; Land; Building; Furniture; Accounts Payable; Utilities Payable; Notes Payable; Common Stock; Dividends; Service Revenue; Salaries Expense; Rent Expense; and Utilities Expense. Explanations are not required.
2. Open the following four-column accounts including account numbers: Cash, 101; Accounts Receivable, 111; Office Supplies, 121; Prepaid Insurance, 131; Land, 141; Building, 151; Furniture, 161; Accounts Payable, 201; Utilities Payable, 211; Notes Payable, 221; Common Stock, 301; Dividends, 311; Service Revenue, 411; Salaries Expense, 511; Rent Expense, 521; and Utilities Expense, 531.
3. Post the journal entries to four-column accounts in the ledger, using dates, account numbers, journal references, and posting references. Assume the journal entries were recorded on page 1 of the journal.
4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.
Answer:
1. Record each transaction in the journal. Explanations are not required.
April 1
Dr Cash 70,000
Cr Common stock 70,000
April 3
Dr Office supplies 1,100
Dr Furniture 1,300
Cr Accounts payable 2,400
April 4
Dr Cash 2,000
Cr Service revenue 2,000
April 7
Dr Land 30,000
Dr Building 150,000
Cr Cash 40,000
Cr Notes payable 140,000
April 11
Dr Accounts receivable 400
Cr Service revenue 400
April 15
Dr Salaries expense 1,200
Cr Cash 1,200
April 16
Dr Accounts payable 1,100
Cr Cash 1,100
April 18
Dr Cash 2,700
Cr Service revenue 2,700
April 19
Dr Accounts receivable 1,700
Cr Service revenue 1,700
April 25
Dr Utilities expense 650
Cr Accounts payable 650
April 28
Dr Cash 1,100
Cr Accounts receivable 1,100
April 29
Dr Prepaid insurance 3,600
Cr Cash 3,600
April 29
Dr Salaries expense 1,200
Cr Cash 1,200
April 30
Dr Rent expense 2,100
Cr Cash 2,100
April 30
Dr Dividends 3,200
Cr Cash 3,200
2. Open the following four-column accounts including account numbers:
3. Post the journal entries to four-column accounts in the ledger,
I used an excel spreadsheet to answer questions 2 and 3
4. Prepare the trial balance of Theodore McMahon, Attorney, at April 30, 2018.
In order to prepare a trial balance we must prepare an income statement first.
Service revenue $6,800
Salaries expense -$2,400
Rent expense -$2,100
Utilities expense -$650
Net income $1,650
retained earnings = net income - dividends = $1,650 - $3,200 = -$1,550
Theodore McMahon, Attorney
Balance Sheet
For the Month Ended April 30, 2018
Assets:
Cash $23,400
Accounts receivable $1,000
Prepaid insurance $3,600
Office supplies $1,100
Furniture $1,300
Land $30,000
Building $150,000
Total assets: $210,400
Liabilities and Equity:
Accounts payable $1,950
Notes payable $140,000
Common stock $70,000
Retained earnings ($1,550)
Total liabilities and equity: $210,400
The process involves journalizing each transaction that occurred in April 2018, posting these journal entries into their corresponding accounts and then preparing a trial balance to check that total debits equal total credits. However, without specific transactional data, a step-by-step guide could not be provided.
The question pertains to the fundamentals of financial accounting, primarily dealing with the concepts of journalizing transactions, posting journal entries to four-column accounts, and preparing a trial balance. Due to the lack of specific transactional data provided within the question, an exact step-by-step guide cannot be provided. However, the process can be generally explained and understand in following steps:
#SPJ3
Answer: LG needs to be aware of the implications around leasing her property or to selling off out rightly.
whether A sale or lease happens between her and the company /individual who wants to buy over or make use of the property. So she cannot ignore the legal formalities and report the transaction as a lease.
Explanation:
Answer:
$252,000
Explanation:
The question is to determine the contribution of Sam's Bookstore for the first quarter
Contribution Margin represents the profit an organisation can generate from the sale of a product. in order to calculate, the variable costs are deducted from the revenue from sale.
The formula for Contribution margin = Sales- the cost of goods sold - variable selling expense.
Selling Price = $65
Reported ales = $910,000
First, we determine the number of books sold in the first quarter
= $910 000/ $65 = 14 000 books
Second, since the store sold 14,000 books in the first quarter, the total variable selling cost for the books sold
= total books sold x the variable selling expense per book
= 14,000 x $4 = $56,000= total variable selling expense
Third, since the store sold 14,000 books in the first quarter, the total variable administrative cost for the books sold
= total books sold x the variable administrative expense per book
= 14,000 x $3 = $42,000= total variable Administrative expense
Four, determine the contribution margin as follows:
Sales - cost of goods sold - variable selling expense - variable administrative expense
= $910,000-$560,000- $56,000-$42,000= $252,000
Answer:
The cash is increased by $115,000 during the month of October.
Explanation:
The computation of net effect of cash is shown below:
= Net income - increased in receivables - decrease in payable + depreciation expense
= $120,000 - $35,000 - $25,000 + $55,000
= $115,000
The increase in receivable should be deducted as the outflow of cash is there, which decrease the cash balance so we deduct it
The decrease in account payable reflect that the company has paid the amount which ultimately reduce the cash balance, hence it is deducted in the computation part
Depreciation expense is added in the cash balance because it is a non cash expense.
Thus, the amount is in positive number which reflects increase in cash
Hence, the cash is increased by $115,000 during the month of October.
Answer:
$55,800
Explanation:
The computation of the net realizable value of accounts receivable is shown below:
Net realizable value of account receivable = Account receivable - Allowance for Uncollectible Accounts
= $62,300 - $6,500
= $55,800
By deducting the allowance for uncollectible accounts from the account receivable so that the net realizable value of the account receivable
Answer:
The answer is option C) Managers find operation costing useful in cost management because it uses job costing to account for the conversion costs and process costing for the material and customizable components.
Explanation:
Operation costing is a mix of job costing and process costing,
In Process Costing, each process or stage of production is costed separately. while Job costing is used to calculate and assign the total cost of materials, labor, and overhead of a specific job.
The manufacture of a product may consist of several operations. In Operation Costing, costs are collected for each operation instead of each process or stage of manufacture.
Therefore, Managers find operation costing useful in cost management because it uses job costing to account for the conversion costs and process costing for the material and customizable components.