Answer:
A. True
Explanation:
An organization would usually measure the volume of its orders in order to meet up with demand while also making sure that the cost per order is maintained at the nearest minimum. The tool used to measure the volume of frequent orders is Economic order quantity(EOQ) .
When inventories are ordered, there will be continuous movement of inventory say from Q(order amount) to zero. This means that the average inventory is Q ÷ 2. Also, the inventory costs for each period is the same as average cost(Q/2) multiply by length of the period.
When financial services companies undertake layoffs, the most valuable employees, whom the companies want to retain, often leave the company voluntarily for new jobs not long after the layoffs. ITEL Financial Services, however, has not lost any of its most valuable employees despite multiple layoffs in the past decade. ITELcredits its success in keeping valuable employees to its high tolerance for risk when employees make investment decisions.
Which of the following, if true, most strongly supports ITEL’s reasoning as to why the company retains its most valuable employees?
(A) People in the financial services industry are often motivated to change jobs by a significant salary increase.
(B) The way in which layoffs are handled can have a significant upward or downward impact on the morale and company loyalty of the employees who remain.
(C) Layoffs often occur during industry downturns, and it is generally much more difficult to find a new job when the industry is struggling.
(D) It is difficult to develop an objective method or definition for determining who should be considered a very valuable employee.
(E) A risk-intolerant environment impedes the entrepreneurial drive that financial services industry employees feel is a requirement to be successful
Answer:
(E) A risk-intolerant environment impedes the entrepreneurial drive that financial services industry employees feel is a requirement to be successful
Explanation:
Option E describes the justification of why ITEL most valuable employees have decided to remained to continue with a particular firm considering the situation of an economic downturn.
Thus, given that, the ITEL satisfies this justification or standards which implies maintaining a high tolerance for risks, hence the correct answer is option E, as it helps us to reinforce or bolster ITEL's understanding.
Therefore option E is the correct answer.
What is not a potential risk of purchasing a used car?
O used cars can require repairs sooner
O warranties can be very limited
O used cars can have lower initial cost
unexpected issues may arise
Answer:
used cars can have lower initial cost
Explanation:
Remember, the term risk often refers to an unpleasant or unwelcome event such as a loss arising from a particular action.
Hence, since we are looking for what is not a loss (potential risk) of purchasing a used car, the best option that matches this is that used cars have a lower initial cost which ofcourse can be seen as an advantage.
The fact that "used cars can have lower initial cost" is not a potential risk.
Potential risk in this context refers to various risk or issues that the used car can develop in the course of active use of the purchased car.
Usually, cars which are bought fairly requires more repair and maintenance than newly bought carsUsed cares are very susceptible to break-down at any point in time.Some others potential risk to this context includes:
They are less reliable because its good moment have been used by previous user.Ignorance of how the car have been managed in past may prove costly ir the routine is not adhered to.A used car usually have a shorter or no warranty.In conclusion, as this context i concern, the car having a lower initial cost is not a potential risk because the value ofa used car is expected to drop.
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Suppose that an investor with a 5-year investment horizon is considering purchasing a 7-year 9% coupon bond selling at par. The investor expects that he can reinvest the coupon payments at an annual interest rate of 9.4% and that at the end of the investment horizon 2-year bonds will be selling to offer a yield to maturity of 11.2%. What is the total return for this bond
Answer:
50.34%
Explanation:
initial investment = $1,000 (bond purchased at par value)
annual coupon = $1,000 x 9% = $90
period cash flow
year 0 -$1,000
year 1 $90
year 2 $90 + ($90 x 0.094) = $98.46
year 3 $90 + ($188.46 x 0.094) = $107.71524
year 4 $90 + ($296.17524 x 0.094) = $117.84
year 5 $90 + ($414.02 x 0.094) = $128.92
at the end of year 5, the investor will have $542.94, plus he/she will still own the bond
the price of the bond at year 5 will be:
0.112 = {90 + [(1,000 - MV)/2]} / [(1,000 + MV)/2]
0.112 x [(1,000 + MV)/2] = 90 + [(1,000 - MV)/2]
0.112 x (500 + 0.5MV) = 90 + 500 - 0.5MV
56 + 0.056MV = 590 - 0.5MV
0.556MV = 534
MV = 534 / 0.556 = $960.43
the investor's total return = [($542.94 + $960.43) / $1,000] - 1 = ($1,503.37 / $1,000) - 1 = 0.50337 x 100 = 50.34%
Which of the following is an advantage of having a single set of accounting standards used worldwide?a. Reduced accounting costs for multinational corporationsb. Increased power of the FASBc. Reduced number of multinational corporations on the NYSEd. Increased diversity of accounting methods used by multinational corporations
Answer: Reduced accounting costs for multinational corporations.
Explanation:
An accounting standards are common standards, procedures and set of principles, that define financial accounting policies basis. Accounting standards also help in improving transparency of financial reporting.
An advantage of having a single set of accounting standards used worldwide is reduced accounting costs for multinational corporations.
An individual who suffers from a self-reference criterion should learn to take into consideration the ________ before making an international marketing decision.a. total cost of goods soldb. home country valuesc. competitor stanced. culture of the other countrye. global resources
Answer: culture of the other country
Explanation:
Self reference criterion is simply influence of an individual's culture on his or her behavior in certain situations. Individuals try as much as possible to respond in a way associated with their culture when faced with certain situations.
An individual who suffers from a self-reference criterion should learn to take into consideration the culture of the other country before making an international marketing decision. This is necessary to Foster good working relationship.
Your friend wants to put money aside for retirement. He can only afford $5,000 a year max and he wants to make sure that the money is not taxed when he withdraws it after he’s 59 ½. Which account would you recommend? Roth IRA Traditional IRA 401(k) 403(b)
Answer:
Roth IRA
Explanation:
Roth IRA offers tax-free growth and tax-free withdraw in retirement.
Nabors Company reported the following current assets and liabilities for December 31 for two recent years: Dec. 31, Current Year Dec. 31, Previous Year Cash $650 $680 Temporary investments 1,500 1,550 Accounts receivable 700 770 Inventory 1,250 1,400 Accounts payable 2,375 2,000 a. Compute the quick ratio on December 31 of both years. If required, round your answers to one decimal place. Quick Ratio December 31, current year December 31, previous year b. Is the quick ratio improving or declining?
Collins Company had the following cost data available. The Collins accountant believes that direct labor hours is the correct cost driver to use to predict and manage these costs.$100,000; 15,000 direct labor hours for January$80,000; 12,000 direct labor hours for February$90,000; 14,000 direct labor hours for March$75,000; 11,000 direct labor hours for April$85,000; 12,500 direct labor hours for May$70,000; 10,000 direct labor hours for JuneUse the high-low method to compute the total amount of monthly fixed costs for Collins Company.
a) $10,000b) $0c) $15,000d) $90,000e) $60,000f) $30,000
Answer:
a) $10,000
Explanation:
The computation of the fixed cost by using high low method is shown below:
Before that first we have to determine the variable cost per direct labor hours which is shown below:
Variable cost per hour = (High Operating cost - low operating cost) ÷ (High labor hours - low labor hours)
= ($100,000 - $70,000) ÷ (15,000 hours - 10,000 hours)
= $30,000 ÷ 5,000 hours
= $6
Now the fixed cost equal to
= High operating cost - (High labor hours × Variable cost per hour)
= $100,000 - (15,000 hours × $6)
= $100,000 - $90,000
= $10,000
hence, the correct option is a . $10,000
What is the importance of the Define Phase in terms of its placement in the DMAIC method? a) It provides the data collection prior to data analysis b) It clarifies the problem, the process and the customer of the process prior to data collection c) It provides monitoring of the solution in order to sustain the gains d) It takes the data and process analysis into account in order to develop solutions
Answer:
b) It clarifies the problem, the process and the customer of the process prior to data collection
Explanation:
DMAIC is the acronym representing the steps taken in the lean six sigma programme to increase efficiency.
The steps are define, measure, analyse, improve, and control.
Define is the first stage at which the need of the process client is determined. Process knowledge is obtained by interacting with the participants.
In this stage we ensure there is alignment between project focus and goals of organisational leadership.
Tony’s business has been struggling for a while his marketing strategy has not worked with the consumers his business has reached the stage words market value is an all time low Tony plans to sell his business Gavin an entrepreneur has been interested in buying Tony’s business for a while currently Gavin is in an ideal position to buy Tony’s business because it is ___ (fill in the blank)
Answer:
selling
Explanation:
What jobs would require a point count sample on soil particles?
Answer:
The soil particles sank in the water as it is heavier. It is different from the soil and sand as the lighter particles of the sand are suspended. Soil in the soil bottle looks grainy.
Explanation:
The soil in the soil bottle is just particles of soil whereas that in the soil and sand bottle is a mixture of the soil and sand. The particles at the bottom are the particles with the largest grain size and the heaviest among the soil and sand particles.
Explanation:
From the following list of steps in the accounting cycle, identify what two steps are missing:
a. Transactions are analyzed and recorded in the journal. b. Transactions are posted to the ledger. c. An unadjusted trial balance is prepared. d. An optional end-of-period spreadsheet is prepared. e. Adjusting entries are journalized and posted to the ledger. f. An adjusted trial balance is prepared. g. Financial statements are prepared. h. A post-closing trial balance is prepared.
Answer:
d. Adjustment data are assembled and analyzed.
h. Closing entries are journalized and posted to the ledger.
Explanation:
The fourth step is missing which is to adjust the data. After the unadjusted trial balance is prepared, if the debit side and the credit side do not match, the data will need to be adjusted and that is what this step is for.
The penultimate step is also missing being the journalizing of the closing entries and posting them to the ledger. This is done to close out the accounts for the year and bring all accounts except permanent ones to zero.
Classify each cost as (a) either variable or fixed, and (b) either direct or indirect by selecting the appropriate dropdowns. Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time.Cost Variable or Fixed Direct or Indirect 1. Maintenance on airplanes 2. Beverages served on planes 3. Insurance premium on airplanes 4. Regional vice president salary 5. Airport landing fee (per flight) 6. Fuel used in planes 7. Luggage handler wages 8. Depreciation (straight-line) on ground equipment
Answer:
1) Variable and direct cost
2) Variable and indirect cost
3) Variable and direct cost
4) Fixed and direct cost
5) Variable and direct cost
6) Variable and direct cost
7) Fixed and direct cost
8) Variable and direct cost
Explanation:
On the one hand, the costs known as variable are the ones whose amount changes with the variation of the production and therefore that this costs never the same because it will depend directly on the production. Meanwhile, the fixed costs are the opposite, they do not depend on the production and will always be the same amount, no matter how much the production increases or decreases.
On the other hand, the direct costs are the ones that are directly related to the cost object that is being analized and therefore that this costs are absolutely necessary to pay in order to keep the production of the good. Meanwhile, the indirect costs are the ones that can not be stricly related to the cost object and therefore that sometimes it is not clear how much of them are needed to be attributed to the product.
Which amount best reflects operating income? Enter your answer in millions without commas or dollar signs.
Answer:
4673 million
Explanation:
The operating income is the income that is arrived after deducting all the operating expenses from the sales revenue before deducting the payment of interest and taxes. It is also called as Earning before interest and taxes (EBIT)
So based on the attached figure, as it can be seen that the operating income that should be recorded for 4673 millions i.e. equivalent to the Earning before interest and taxes
Equity method journal entries (price greater than book value) An investor purchases a 25% interest in an investee company, and the investor concludes that it can exert significant influence over the investee. The book value of the investee’s Stockholders’ Equity on the acquisition date is $500,000, and the investor purchases its 25% interest for $145,000. The investor is willing to pay the purchase price because the investee owns an unrecorded (internally developed) patent that the investor estimates is worth $80,000. The patent has a remaining useful life of 10 years. Subsequent to the acquisition, the investee reports net income of $100,000, and pays a cash dividend to the investor of $20,000. At the end of the first year, the investor sells the Equity Investment for $180,000. Prepare all of the required journal entries to account for this Equity Investment during the year.
Answer:
See answer an explanation below.
Explanation:
The journal entries will look as follows:
General Journal
Description Debit ($) Credit ($)
Equity investment 145,000
Cash 145,000
(To record purchase of investment.)
Cash 25,000
Income from equity investment (w.1) 25,000
(To record equity income.)
Cash 20,000
Equity investment 20,000
(To record receipt of cash dividend.)
Income from equity investment 2,000
Equity investment (w.2) 2,000
(To record patent amortization expense.)
Cash 180,000
Gain on sale of equity invest. (w.4) 32,000
Equity investment (w.3) 148,000
(To record sale of investment.)
Workings
w.1: Income from equity investment = Investee's net income * Percentage of interest = $100,000 * 25% = $25,000
w.2: Equity investment = (Patent value / Remaining useful life) * Percentage of interest = ($80,000 / 10) * 25% = $8,000 * 25% = $2,000
w.3: Equity investment = $145,000 + $25,000 - $20,000 - $2,000 = $148,000
w.4: Gain on sale of equity investment = Sales proceed - w.3 = $180,000 - $148,000 = $32,000
On February 1, 2020, Aggie Corporation sold its investment in Smith Corporation bonds for $12,500. The bonds have a face value of $12,000 and a stated interest rate of 10%. The market value of the bonds on December 31, 2019 was $12,300.Required: Prepare the journal entries to record the sale of the bonds and the adjustments of the unrealized gain or loss
Answer:
Journal Entries
Date Account Titles and Explanation Debit Credit
Feb. 1 Cash $12,500
Bonds $12,300
Gain on sale of bonds $200
(Being bond issued at premium)
Feb. 1 Unrealized Gain $300
Income Summary $300
(Being unrealized gain transferred)
Notes:
1) The Unrealized gain will be transferred to income statement at the time of sale. $300 ($12,300 - $12,000)
2) It is assumed that interest receivable for January month is included while calculating the selling price of bonds, hence no need to consider again.
Which of the following Lean principles reflects the ability of a customer to move through a process? a) Value b) Flow c) Pull d) Perfection
Answer:
The correct answer is A) Customer Value
Explanation:
Value is always defined by the paradigm of the Customer.
It starts with the end product in mind then works back to how the product can be achieved, each time modifying the process until all waste is eliminated.
Everything along the production or manufacturing chain that does not contribute to the end-value expected by the customer is eliminated.
Cheers!
Can an internal diversity program support an organization’s overall mission and vision? How?
Answer and Explanation:
An internal diversity program support focused on the overall mission and the vision by balancing the diversity in the organization. Also it provides the opportunities for employees so that the organization could be succeeded
It creates an awareness for inclusion area and the intercultural management
By this way it supports overall mission and vision
Free cash flow and financial statements The primary objective of the corporate management team is to maximize shareholder wealth. The company's board of directors and the shareholders evaluate and review managerial actions based on the growth in the value of the firm.Based on your understanding of what determines a firm's value, review the following: What does the value of a firm depend on? A. The ability to generate cash flow that is available to distribute to the company's investors, including creditors and stockholders.B. The ability to generate cash flow that is available to distribute to the company's stockholders only. Which of the options is most accurate? 1. Option A.2. Option B.When determining the value of a firm, which of the following statements is true? A. Investors are risk neutral. Other things being equal, they prefer to pay more for stocks that are less risky and have uncertain cash flows.B. Investors love risk. other things being equal, they prefer to pay more for stocks that are riskier and have uncertain cash flows. C. Investors are risk averse. other things being equal, they prefer to pay more for stocks that are less risky and that have relatively more certain cash flows than other stocks. Managers strive to increase the value of a firm. An increase in the intrinsic value of the firm's stocks is a good measure of the increase in the value of the firm. Intrinsic value of a firm's stock price is determined by calculating the present values of its free cash flows (FCF) discounted at a rate called the weighted average cost of capital (WACC). Tyler is a team member in Corporate Finance at a digital-content production company. He is required to forecast the free cash flows that the company will be able to generate in the next three years. Tyler takes into account only the following equation in his calculation: FCF = Sales Revenues - Operating Costs - Operating Taxes Will his calculation be an appropriate estimate of the FCF? A. Yes.B. No.Why or why not? A. Because his calculation fails to include the increase in the working capital required to grow sales.B. Because his calculation fails to recognize the increase in sales revenues.C. Because his calculation fails to include the value of the debt that the firm carries on its balance sheet.D. Because his calculation fails to include the costs of the firm's interest and dividend payments.
Complete Question
The complete question is shown on the first uploaded image
Answer:
The correct option for first question is A
The correct option for second question is B
Explanation:
The correct option is A because the value of a firm depends on its ability to generate cash flow that is available to distribute to the company's investors, including creditors and stockholders.
For the second part the answer is B
This because a financial asset will have value only if it can generate future positive cash flows.
Also when valuating the cost at which the asset is acquired is not relevant
expalin Robbin's defination of economics
Answer:
In his landmark essay on the nature of economics, Lionel Robbins defined economics as. “the science which studies human behaviour as a relationship between ends and scarce means which have alternative uses”
Explanation:
I hope this helps!
Cynthia requested a two-week leave from her employer to go on a religious pilgrimage. The pilgrimage was not a requirement of her religion, but Cynthia felt it was a "calling from God." Will it violate Title VII if Cynthia's employer does not grant her the leave? Explain. Compare with a case in which the UPS Jehovah's Witness employee's supervisor denied his request for a schedule accommodation to allow him to attend the annual religious service, terminated the new employee a few days later, and placed him on a do- not-rehire list.
Answer:
For Cynthia
No, it is not a sincerely held belief and does not take place of religion
For the UPS Jehovah Witness employee
Yes, no reasonable good-faith accommodation was made.
Explanation:
Title VII is also called the Civil Rights Act of 1964. It outlaws any form of discrimination in the grounds or race, religion, color, sex, country of origin, and sexual orientations.
In this scenario Cynthia's pilgrimage was not a requirement of her religion, but Cynthia felt it was a "calling from God." So it does not violate Title VII because it is not a sincerely held belief and cannot be classified as religion.
However in the case of the Jehovah Witness employee he wanted to attend a annual religious service. His request was rejected and his employment terminated.
This is discrimination based on religion and is a violation of Title VII
Partial adjusted trial balance for Pina Colada Corp. at December 31, 2017, includes the following accounts: Retained Earnings $16,700, Dividends $4,700, Service Revenue $36,300, Salaries and Wages Expense $15,000, Insurance Expense $1,980, Rent Expense $4,000, Supplies Expense $1,590, and Depreciation Expense $900. The balance in Retained Earnings is the balance as of January 1.
Prepare a retained earnings statement for the year assuming net income is $10,400. (List items that increase retained earnings first.)
PINA COLADA CORP
Retained Eanings Statement
For the Year Ended December 31, 2017
Retained Earnings, January 1 16,700
Add 10,400
Net Income/ (Loss)
27,100
Less 4,700
Dividends
Retained Earnings, December 31 $22,400
Answer and Explanation:
The presentation of the retained earnings statement for the year is presented below:
Pina Colada Corp
Retained Earnings Statement
For the year Ended December 31, 2017
Retained Earnings, as on January 1 $16,700
Add: Net Income $10,400
Less: Dividend paid -$4,700
Retained Earnings, as on December 31 $22,400
Does Svensons find a refrigerator value that $2300 on sale for $1900 they decided to withdraw $500 from savings to use as a down payment on the purchase of a refrigerator and took out a loan to pay the balance choose the true statement
A.The Svensons Assets increased by $1400
B.The Svensons Assets increased by $1800
C.The SvensonsI said to increase by $1900
D.The Svensons assets increased by $2300
Answer:
B.The Svensons Assets increased by $1800
Explanation:
The Svensons assets increased by $1,800 because even if they purchased the refrigerator for $1,900, the market value of the refrigerator is $2,300, so their assets initially increase by this amount.
However, they also withdraw $500 from their savings to pay for the refrigerator, meaning that this asset account is reduced by the same amount.
Thus, an initial increase of $2,300 minus a later decrease of $500 gives us a final $1,800 increase.
What technological superiority a major factor in the conquest of the Americas?
Answer: superior military technology
Explanation:
Superior military technology was a major factor in the conquest of the Americans. The Spaniard's horses and cannons got their soldiers afraid while the armor and the metal helmets the Spanish had protected them from arrows and spears.
The discontent and the division in the other party also helped the Spanish. The Spanish also seemed immune to certain diseases, which gave them the impression that their gods was more powerful.
Cynthia, requested a two-week leave from her employer to go on a religious pilgrimage. The pilgrimage was not a requirement of her religion, but Cynthia felt it was a °calling from God." Will it violate Title VII if Cynthia's employer does not grant her the leave? Explain. (Tiano V. Dillard Department Mores, Inc, 1998 WL 117864 (9th Cir. 1998)).
Answer: No. It does not violate Title VII if Cynthia's employer does not grant her the leave.
Explanation:
From the question, we are informed that Cynthia, requested a two-week leave from her employer to go on a religious pilgrimage and that the pilgrimage was not a requirement of her religion, but Cynthia felt it was a calling from God.
Based on the scenario, Title VII is not violated if Cynthia's employer does not grant her the leave. According to the court, when an employee says that based on his or her religious belief, he or she is required to go to a pilgrimage, the person has to prove beyond reasonable doubt.
In this case, her church which is the Roman Catholic didn't call for a pilgrimage as it was her personal choice. Therefore, Title VII is not violated if Cynthia's employer does not grant her the leave.
The actual production of Lululemon's high-quality clothing for yoga and related sports activities using the very best technical fabrics is an example of:___________
Answer:
d. Strategy implementation
Explanation:
Since in the question it is mentioned that the actual production of great quality clothing for the yoga and the sports activities that are related with the yoga should using the best fabrics so here it is an example of strategy implementation as the strategy is implemented to provide the high quality clothing for the yoga purpose
Hence, the correct option is d.
Operating Activity Investing Activity Financing Activity A pharmaceutical company buys marketing rights to sell a drug exclusively in East Asian markets. A company records a decrease in its total raw materials inventory from the previous year. Yum Co. uses cash to repurchase 10% of its common stock Fitzi Chemical Co. carns revenue from its cash receipts from royalties. Len Corp. reported net sales of $300 million last year and generated a net income of $66.00 million. Last year's accounts receivable increased by $29 million. What is the maximum amount of cash that Len Corp. received from sales last year? a. $203.25 million b. $271.00 million c. $95.00 million d. $135.50 million
Answer:
b. $271.00 million
Explanation:
Cash received = Net sales - Increase in accounts receivable
Cash received = $300 million - $29 million
Cash received = $271 million
Hence, the maximum amount of cash that Len Corp. received from sales last year is $271 million
Determine whether each characteristic describes a general partnership (GP), limited liability company (LLC), both, or neither.A. Must pay a business (corporate) income tax.B. When the business cannot pay its debts, creditors can take the owners' personal assets. C. All owners can have management duties. D. The owners are often referred to as members. E. Ownership is split among two types of owners: general and limited partners. F. Owners have limited liability.
Answer and Explanation:
The categorization is shown below:
a. Neither should be selected as partnership and LLC are through entities and for the income tax is calculated on personal income tax
b. General partnership as it contains the unlimited liabilities
c. LLC as it contains the equal status in this type of business organization.
d,. LLC as it is standardized according to the organization articles
e. Neither should be selected as general and limited should be come under the limited partnership
f. LLC should be selected as in this, owners have the limited liability
Tried and True’s accountant suggests that monthly rent and hourly wage rate also be factored into the productivity calculations. Annandale pays the highest average wage at $10 an hour. Blacksburg pays $7.25 an hour, Charlottesville $8, and Danville $7.50. The cost to rent store space is $2800 a month in Annandale, $1200 a month in Blacksburg, $2000 a month in Charlottesville, and $800 a month in Danville.
a. Which store is most productive?
b. Tried and True is not sure it can keep all four stores open. Based on multifactor productivity, which store would you close? What other factors should be considered?
Answer:
a. Blacksburg
b. Blacksburg
Explanation:
a. Productivity is measured by how much output is derived per input.
= Output/Input
= Sales Volume/Labor Hours
Annandele = 40,000/250
= $160 per hour
Blacksburg = 12,000/60
= $200 per hour
Charlottesville = 60,000/500
= $120
Danville = 25,000/250
= $100
Blacksburg is most productive at $200 per labor hour.
b. Multifactor productivity would incorporate the other costs such as labor rate and rent.
= Sales volume / ( Rent + Labor cost)
Annandale = 4,0000/ (2,800 + 250 * 10)
= $7.5
Blacksburg = 12,000 / (1,200 + 60 * 7.25)
= $7
Charlottesville = 60,000/ ( 2,000 + 500 * 8)
= $10
Danville = 25,000 / ( 800 + 200 * 7.50)
= $10.86
Blacksberg is least productive using Multifactor so should be closed down.
Selected transactions for Sophie's Dog Care are as follows during the month of March:March 1: Paid monthly rent of $1,270.3: Performed services for $150 on account.5: Performed services for cash of $80.8: Purchased equipment for $635. The company paid cash of $85 and the balance was on account.12: Received cash from customers billed on March 3.14: Paid wages to employees of $555.22: Paid utilities of $76.24: Borrowed $1,590 from Grafton State Bank by signing a note.27: Paid $230 to repair service for plumbing repairs.28: Paid balance amount owed from equipment purchase on March 8.30: Paid $1,910 for six months of insurance.Journalize the transactions.
Answer:
See answers and explanation below.
Explanation:
The journal entries will look as follows:
Date Account Title Dr ($) Cr ($)
March 1 Rent expenses 1,270
Cash 1,270
(To record payment of monthly rent.)
March 3 Accounts receivable 150
Service revenue 150
(To record services performed on account.)
March 5 Cash 80
Service revenue 80
(To record services performed for cash.)
March 8 Equipment 635
Cash 85
Acct payable - Equip. (w.1) 550
(To record purchase of equipment.)
March 12 Cash 150
Accounts receivable 150
(To record cash from customers billed on March 3.)
March 14 Wages expenses 555
Cash 555
(To record payment of monthly rent.)
March 22 Utilities expenses 76
Cash 76
(To record payment for utilities.)
March 24 Cash 1,590
Note payable 1,590
(To record borrowing from Grafton State Bank.)
March 27 Plumbing repair exp. 230
Cash 230
(To record payment for Plumbing repair.)
March 27 Acct payable - Equip. (w.1) 550
Cash 550
(To record balance paid for equipt purchased on March 8.)
March 30 Insurance expenses (w.2) 318.33
Insurance prepaid (w.3) 1,591.67
Cash 1,910
(To record payment for six months insurance.)
Workings:
w.1: Account payable - Equipment = Equipment cost - Cash paid = $635 - $85 = $550
w.2: Insurance expenses for March = Cash paid / 6 months = $1,910 / 6 = $318.33
w.3: Insurance prepaid = Cash paid - Insurance expenses for March = $1,910 - $318.33 = $1,591.67
Date Account Title Dr ($) Cr ($)
March 1 Rent expenses 1,270
Cash 1,270
(To record payment of monthly rent.)
March 3 Accounts receivable 150
Service revenue 150
(To record services performed on account.)
March 5 Cash 80
Service revenue 80
(To record services performed for cash.)
March 8 Equipment 635
Cash 85
Acct payable - Equip. (w.1) 550
(To record purchase of equipment.)
March 12 Cash 150
Accounts receivable 150
(To record cash from customers billed on March 3.)
March 14 Wages expenses 555
Cash 555
(To record payment of monthly rent.)
March 22 Utilities expenses 76
Cash 76
(To record payment for utilities.)
March 24 Cash 1,590
Note payable 1,590
(To record borrowing from Grafton State Bank.)
March 27 Plumbing repair exp. 230
Cash 230
(To record payment for Plumbing repair.)
March 27 Acct payable - Equip. (w.1) 550
Cash 550
(To record balance paid for equipt purchased on March 8.)
March 30 Insurance expenses (w.2) 318.33
Insurance prepaid (w.3) 1,591.67
Cash 1,910
(To record payment for six months insurance.)
Workings:
1
Account payable - Equipment = Equipment cost - Cash paid
= $635 - $85 = $550
2.
Insurance expenses for March
= Cash paid ÷ 6 months
= $1,910 ÷ 6
= $318.33
3: Insurance prepaid
= Cash paid - Insurance expenses for March
= $1,910 - $318.33
= $1,591.67
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