Novak Corp. has the following transactions during August of the current year. Aug. 1 Issues shares of common stock to investors in exchange for $10,950.
4 Pays insurance in advance for 3 months, $1,020.
16 Receives $780 from clients for services rendered.
27 Pays the secretary $520 salary.
Journalize the transactions.
Answers
Answer:Please see answers in explanation column
Explanation:
Journal entry for Novak Corp during August
Date Account title Debit Credit
Aug 1 Cash $10,950
Common stock $10,950
Aug 4 Prepaid Insurance $1,020.
Cash $1,020.
Aug 16 Cash $780
Service revenue $780
Aug 27 Salaries expense $520
Cash $520
Final answer:
To journalize the August transactions for Novak Corp., Debit and Credit the appropriate accounts based on the nature and amount of each transaction. These are done on 1st, 4th, 16th, and 27th of August according to the details provided.
Explanation:
The question is asking for the journalization of the transactions of the Novak Corp. during August. Journalizing transactions involves keeping a record of the financial activities, in the form of debit and credit, in a journal or logbook. Here is how you would journalize the transactions:
Aug. 1: Debit Cash account $10,950. Credit Common Stock account $10,950.
Aug. 4: Debit Insurance Expense account $1,020. Credit Cash account $1,020.
Aug. 16: Debit Cash account $780. Credit Service Revenue account $780.
Aug. 27: Debit Salary Expense account $520. Credit Cash account $520.
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Related Questions
Use the following information to prepare a multistep income statement and a classified balance sheet for Eller Equipment Co. for Year 1. Salaries expense $122,000 Beginning retained earnings $61,100 Common stock 110,000 Warranties payable (short term) 6,500 Notes receivable (short term) 32,500 Gain on sale of equipment 19,000 Allowance for doubtful accounts 19,000 Operating expenses 65,000 Accumulated depreciation 66,000 Cash flow from investing activities 116,000 Notes payable (long term) 160,000 Prepaid rent 38,000 Salvage value of building 21,000 Land 95,000 Interest payable (short term) 6,000 Cash 41,000 Uncollectible accounts expense 45,000 Inventory 101,000 Supplies 6,500 Accounts payable 55,000 Equipment 243,000 Interest expense 36,000 Interest revenue 6,200 Salaries payable 68,000 Sales revenue 940,000 Unearned revenue 47,000 Dividends 20,000 Cost of goods sold 595,000 Warranty expense 9,200 Accounts receivable 108,000 Interest receivable (short term) 3,600 Depreciation expense 3,000
Richards Corporation uses the weighted-average method of process costing. The following information is available for October in its Fabricating Department: Units: Beginning Inventory: 86,000 units, 70% complete as to materials and 25% complete as to conversion. Units started and completed: 262,000. Units completed and transferred out: 348,000. Ending Inventory: 33,000 units, 40% complete as to materials and 10% complete as to conversion. Costs: Costs in beginning Work in Process - Direct Materials: $37,200. Costs in beginning Work in Process - Conversion: $79,700. Costs incurred in October - Direct Materials: $646,800. Costs incurred in October - Conversion: $919,300. Calculate the equivalent units of conversion.
TO GO! writes and manufactures murder mystery parlor games that it sells to retail stores. The following is per-unit information relating to the manufacture and sale of this product. Unit sales price $ 30 Variable cost per unit 6 Fixed costs per year 360,000 a. Determine the contribution margin ratio. b. Determine the sales volume (in dollars) required to break even. c. Determine the sales volume (in dollars) required to earn an annual operating income of $440,000. d. Determine the margin of safety (in dollars) if annual sales total 60,000 units.
9. Which of the following is true regarding the Comprehensive Annual Financial Report (CAFR)? A) The CAFR has three main sections: introductory, financial, and statistical. B) Required supplementary Information includes a Budgetary Comparison Schedule for the General Fund and all major special revenue funds that have a legally adopted annual budget
Answers
Answer:
The cost of land to be reported is $174,750
Explanation:
The cost of land reported in the Balance sheet does not only include the price paid to acquire the Land but also include any costs/revenue received in the processes, activities needed to bring the land to the stage in which it may be ready for usage.
Thus, besides the price paid which is $140,000 ( $90,000 cash and $50,000 short-term note), we have to add-up all the relevant costs including Legal fees, delinquent taxes, Removal of old building expenses and deduct the material salvaged gain from demolition of old building. The construction cost of new warehouse is irrelevant here as without this cost, the Land is already in a ready-to-use stage ( i.e: for building new property in the Land)
So, the amount of Cost of Land to be reported is : 140K + 1,75K + 25K + 9K - 1K = $174,750
Final answer:
The cost of the land to be reported on the balance sheet is $174,750.
Explanation:
To determine the cost of the land to be reported on the balance sheet, we need to add up all the costs associated with acquiring and preparing the land. In this case, the costs include the cash payment of $90,000, the short-term note of $50,000, legal fees of $1,750, delinquent taxes of $25,000, and fees paid to remove the old building of $9,000. We then subtract the salvage value of the materials sold, which is $1,000. So the total cost of the land is:
Total cost of land = Cash payment + Short-term note + Legal fees + Delinquent taxes + Fees to remove old building - Salvage value of materials
= $90,000 + $50,000 + $1,750 + $25,000 + $9,000 - $1,000 = $174,750
Therefore, the cost of the land to be reported on the balance sheet is $174,750.
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Answers
Answer:
Allocated MOH= $274,850
Explanation:
Giving the following information:
Estimated manufacturing overhead cost $238,900
Estimated machine hours 20,000
Actual machine hours 23,000
First, we need to calculate the predetermined overhead rate:
Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base
Predetermined manufacturing overhead rate= 238,900/20,000
Predetermined manufacturing overhead rate= $11.945 per machine-hour
Now, we can allocate overhead:
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
Allocated MOH= 11.95*23,000
Allocated MOH= $274,850
Answers
Answer:
Jeans= 200 units
Shirt= 200 units
Explanation:
To calculate the break-even point in units, we need to use the following formula:
Break-even point (units)= Total fixed costs / Weighted average contribution margin
Weighted average contribution margin= (weighted average selling price - weighted average unitary variable cost)
Weighted average contribution margin= (22*0.5 + 27*0.5) - (14*0.5 + 19*0.5)
Weighted average contribution margin= 8
Break-even point (units)= 3,200/8
Break-even point (units)= 400 units
Jeans= 0.5*400= 200 units
Shirt= 0.5*400= 200 units
Answers
Answer:
The sales revenue would be 170,000 if Hammer Time implements the decrease in selling price.
This would generate a decrease of $10,000 in the sales revenue
Explanation:
Understanding the way sales revenue is generated:
If the selling price drops to $10
and units sold increase by 5,000
Comparing with the previous year:
This policy decrease the sales revenue which makes the business less profitable.
Answers
Answer:
The reimbursement of medical expenses to a taxpayer is not considered as an income or taxable by the IRS.
If the taxpayer had previously deducted the expense and it resulted in tax savings, the reimbursement of a medical expense by insurance would be taxable. More so, there would have been no tax benefit if either the taxpayer had claimed the standard deduction, or if the floor for the medical deduction exceeded the medical expenses.
A 1075000 1.2
B 675000 0.5
C 750000 1.4
D 500000 0.75
Answers
Answer:
a
Explanation:
AVERAGE BETA = (INVESTMENT * BETA) / TOTAL INVESMENT
3052500 / 3000000
1.0175
Required Return = Risk free Return + (Market Return - Risk free return)* Beta
Required Return = 5% + (10% - 5%)*1.0175
Required Return = 10.08%