Identify each of the following items as: (a) an asset,
(b) a liability,
(c) revenue,
(d) an expense, or
(e) a dividend:
1. Amounts due from customers
2. Amounts owed to suppliers
3. Cash on hand
4. Cash paid to stockholders
5. Cash sales
6. Equipment
7. Note payable owed to the bank
8. Rent paid for the month
9. Sales commissions paid to salespersons
10. Wages paid to employees

Answers

Answer 1
Answer:

Answer:

1. An asset.

2. A liability.

3. An asset.

4. A dividend.

5. Revenue.

6. An asset.

7. A liability.

8. An expense.

9. An expense.

10. An expense.

Explanation:

1. Amounts due from customers: an asset. It should be recorded on the balance sheet as account receivable.

2. Amounts owed to suppliers: a liability. It should be recorded on the balance sheet as account payable.

3. Cash on hand: an asset. It should be recorded on the balance sheet as account receivable.

4. Cash paid to stockholders: a dividend. It should be recorded on the statement of retained earnings.

5. Cash sales: revenue. It should be recorded on an income statement.

6. Equipment: an asset. It should be recorded on the balance sheet as account receivable.

7. Note payable owed to the bank: a liability. It should be recorded on the balance sheet as account payable.

8. Rent paid for the month: an expense. It should be recorded as an expense on the income statement.

9. Sales commissions paid to salespersons: an expense. It should be recorded as an expense on the income statement.

10. Wages paid to employees: an expense. It should be recorded as an expense on the income statement.


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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.

Corporation needs to raise $70 million to finance its expansion into new markets. The company will sell new shares of equity via a general cash offering to raise the needed funds. The offer price is $30 per share and the company’s underwriters charge a spread of 8 percent. If the SEC filing fee and associated administrative expenses of the offering are $575,000, how many shares need to be sold? (Do not round intermediate calculations and enter your answer in shares, not millions of shares, rounded to the nearest whole number, e.g., 1,234,567.)

Answers

Answer:

$2536.232

Explanation:

The spread in this case is 30*8% = 2.4  

A spread is simply gap between the bid and the ask prices of a security or asset, like a stock, bond or commodity and the net proceeds are the amount of money the seller receives following the sale of an asset after all costs and expenses are deducted from the gross proceeds.

The net proceeds in this case is 30-2.4 =27.6

To get the number of share we can simply divide the funds need by the net proceeds per share = 70000000/27.6  = $2536.232. Therefore the correct answer is $2536.232

Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the October 9 sale consisted of 55 units from beginning inventory and 185 units from the October 5 purchase; the October 29 sale consisted of 35 units from the October 18 purchase and 75 units from the October 25 purchase. (Round your average cost per unit to 2 decimal places.)

Answers

Answer:

Ending inventory:

(a) specific identification = $5,885

(b) weighted average = $5,960

(c) FIFO = $5,750

(d) LIFO = $5,845

Explanation:

Date        Activity                 Units       Cost        Total

Oct. 1       Beg. inventory     155          $14          $2,170

Oct. 5      Purchase              180         $13.50     $2,430  

Oct. 9      Sales                     240

Oct. 18     Purchase              140         $13          $1,820

Oct. 29    Sales                     110

Oct. 25    Purchase              330        $12.50     $4,125

total         Purchases            805        $13.10      $10,545                              

Cost of goods sold:

(a) specific identification = [(55 x $14) + (185 x $13,50)] + [(35 x $13) + (75 x $12.50)] = $4,660

(b) weighted average = $13.10 x 350 units = $4,585

(c) FIFO = (155 x $14) + (85 x $13.50) + (95 x $13.50) + (15 x $13) = $4,795

(d) LIFO = (180 x $13.50) + (60 x $14) + (110 x $13) = $4,700

Ending inventory:

(a) specific identification = $10,545 - $4,660 = $5,885

(b) weighted average = $10,545 - $4,585 = $5,960

(c) FIFO = $10,545 - $4,795 = $5,750

(d) LIFO = $10,545 - $4,700 = $5,845

Rocky Mountain Bikes' Colorado warehouse has 50 Pack Rat Deluxe Bike Baskets in stock at a moving average price of $25.13 each. They purchase 300 from Rat-a-tat-tat Bike Products at $25.54 each and transfer 100 from their Texas warehouse where the moving average price is $25.25 each. Assuming all of the baskets mentioned above have been received in Colorado and there have been no sales from Colorado, what is the current moving average price and total inventory valuation for Pack Rat Deluxe Bike Baskets in the Colorado warehouse.

Answers

Answer:

Rocky Mountain Bikes

Current moving average price is:

$25.43

Total inventory valuation is:

$11,443.50

Explanation:

Colorado warehouse:

Item             Qty     Price         Moving      Total       Total Value

                                         average price   Qty        

Inventory     50                       $25.13         50        $1,256.50

Purchase   300    $25.54      $25.48      350         $8,918.50

Transfer     100    $25.25      $25.43      450        $11,443.50

Rocky Mountain Bikes' Colorado warehouse uses the moving average price to value the inventory.  The moving average price is computed by creating a constantly updated average price.  This smoothens the price data.

William owns 1 share of Park stock. He purchased the stock three years ago for $17.50. The stock is currently trading for $40 per share. The stock has paid the following dividends over the past three years. o Year 1: $1.00. o Year 2: $2.00. o Year 3: $3.00. What is the compounded rate of return (IRR) that William has earned on this investment

Answers

Answer:

sim eu também preciso desta respota

The adjusted trial balance of Ryan Financial Planners appears below.RYAN FINANCIAL PLANNERS
Adjusted Trial Balance
December 31, 2014
Debit Credit
Cash $2,660
Accounts Receivable 2,140
Supplies 1,850
Equipment 15,900
Accumulated Depreciation-Equipment $ 3,975
Accounts Payable 3,310
Unearned Service Revenue 3,205
Common Stock 10,000
Retained Earnings 4,510
Dividends 1,000
Service Revenue 4,300
Supplies Expense 410
Depreciation Expense 2,420
Rent Expense 2,920
$29,300 $29,300

Using the information from the adjusted trial balance, you are to prepare for the month ending December 31:
1. An income statement.
2. A balance sheet.
3. A retained earnings statement.

Answers

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.

Final answer:

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.

Explanation:

We will first need to prepare the income statement, followed by the retained earnings statement, and finally the balance sheet.

1. Income Statement

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

2. Retained Earnings statement

Beginning Retained Earnings: $4,510

Add: Net Income: -$1,450

Less: Dividends: $1,000

Ending Retained Earnings: $2,060

3. Balance Sheet

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


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