Q.12 The owner’s equity balance of LL-company showed an increase in Br. 900,000 for the year 2018. You are provided with the following additional information: Additional investments made during the year Br. 480,000 Withdrawals during the year amounted to 35% of investment Expenses incurred during the year: Salaries Expenses 74,500 Advertising Expenses 42,000 Utilities expenses 50,000 Depreciation Expenses 80,000 Transportation Expenses 35,000 Required: (a) Calculate the revenues generated in 2018. (b) Calculate the net income or net loss for the year 2018.

Answers

Answer 1

a) The revenues generated in 2018 were Br. 800,025.

b) The net income for the year 2018 was Br. 518,525.

What is the increase in owner's equity?

The owner's equity increases with the following factors:

Increased capital contribution.Higher profitsIncreased salesDecreased expenses.

Data and Calculations:

Increase in Owner's Equity = Br. 900,000

Additional investments = Br. 480,000

Withdrawals = 35% of investment expenses

= Br. 98,525 (35% x Br. 281,500)

Salaries Expenses 74,500

Advertising Expenses 42,000

Utilities expenses 50,000

Depreciation Expenses 80,000

Transportation Expenses 35,000

Total investment expenses = Br. 281,500

Net income (loss) = Br. 518,525 (Br. 900,000 -480,000 + 98,525)

Revenues = Br. 800,025 (Br. 518,525 + 281,500)

Thus, while the revenues generated in 2018 were Br. 800,025, the net income for the year 2018 was Br. 518,525.

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Related Questions

what is a resume and why is it important to adopt a you attitude when preparing one?​

Answers

Answer:

A resume is a form you fill out for your job, giving information on why you would be good at the job and important traits about you.

A resume is a doc that you fill out for your wanted employer can look at your skills, experiences, strengths and weaknesses, etc. it’s important to have a you attitude when preparing it because the resume is all about you.

A key difference between an IRA and keogh plan is:
a) you may withdraw your money early from a keogh plan without penalty, but not from an IRA
b) you may contribute more to a keogh plan than to an IRA
c) self-employed individuals may open an IRA, but not a keogh ​

Answers

A key difference between an IRA and a Keogh plan is you may contribute more to a Keogh account than to an IRA.

What is a Keogh account?

An account, the facility of which is granted to self-employed professionals who are involved in sole proprietorship and partnership businesses for the purpose of retirement plans and benefits is known as a Keogh Account.

An IRA, on the other hand, is a facility provided to employed individuals or professionals for the better management of their retirement plans and benefits.

Hence, option B holds true regarding a Keogh Account.

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A consumer protection agency that protects students who take out student
loans is the
O A. Consumer Financial Protection Bureau
OB. Food and Drug Administration
OC. Better Business Bureau
OD. Federal Trade Commission

Answers

It’s a consumer financial protection bureau

Santoro co produced a draft statement of the financial position at the year end which showed the owners equity of 4,50,000. It was later discovered however that the following transactions which all occurred on the last day of the financial year had not been taken into account. 1) Property which cost 3,26,000 had been revalued to 3,86,000 2) Inventories which cost 26,000 had been sold on credit for 31,000 3) The owner withdrew 22,000 in cash. 4) The trade receivable paid the amount owing of 23000 in full what will be the revised figure for owners equity after the above transactions are taken into account?

Answers

Based on the revisions to the statement for Santoro Co., the revised figure for the owner's equity would be $493,000.

What is the new figure for owner's equity?

The revised figure can be found as:

= Beginning owner's equity + (Property readjustment) + Inventory readjustment - Withdrawals

Solving gives:

= 450,000 + (386,000 - 326,000) + (31,000 - 26,000) - 22,000

= $493,000

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On January 1, 2021, Splash City issues $500,000 of 9% bonds, due in 20 years, with interest payable semiannually on June 30 and December 31 each year.


Assuming the market interest rate on the issue date is 8%, the bonds will issue at $549,482.

Answers

The entries to record the bond issue on January 1, 2021 is: Debit Cash $549,482; Credit Discount On bonds Payable $49,482; Credit Bonds Payable $500,000.

Journal entries

Splash city journal entries

January 1, 2021

Debit Cash $549,482

Credit Discount On bonds Payable $49,482

Credit Bonds Payable $500,000

(To record bond issue)

June 30, 2021

Debit Interest Expense  $21,979.28

(8%/2×$549,482)

Debit Discount on Bonds Payable $520.72

($22,500-$21,979.28)

Cash $22,500

(9%/2×$500,000)

(To record semiannual interest payments )

December 31, 2021

Debit Interest Expense  $21,979.28

(8%/2×$549,482)

Debit Discount on Bonds Payable $520.72

($22,500-$21,979.28)

Cash $22,500

(9%/2×$500,000)

(To record semiannual interest payments )

Therefore the entries to record the bond issue on January 1, 2021 is: Debit Cash $549,482; Credit Discount On bonds Payable $49,482; Credit Bonds Payable $500,000.

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18
Select the correct text in the passage.
Which phrases explain the smart Investment made by Lu Shing and her husband?
Lu Shing is a teacher in a primary school, while her husband works in a huge bookstore. They have two kids and are concerned about their
future. Lu's husband has Invested in a few blue chip stocks listed on the NASDAQ stock exchange and earns good profits from them. Lu, on the
other hand, has invested in some safe Security bonds and fixed return annultles. They also receive monthly rent from an old penthouse in the
suburbs. Lu is also taking up violin lessons so that she can teach violin to students in her free time and pursue her passion. Her husband is a
semi-professional lawn tennis player.
Reset
Next.

Answers

The phrases that explain the smart Investment made by Lu Shing and her husband are:

"smart""sensible""low-risk"
What is an Investment?

This refers to the buying of stocks or other property in hopes that it would appreciate in value over a period of time.

Hence, we can see that based on the smart investment made by the family of Lu Shing who both have stable jobs and bought stocks that are low-risk, the correct phrases to describe them are listed above.

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Answer:

Invested in a few blue chip stocks, and has invested in some safe security bonds and fixed return annuities

Explanation:

Receiving a fixed income from an investment is a great method.

Question 7 of 10
An example of an expenses that is not an allowable tax deductions is:
A. A hospital bill
OB. A donation to a charity
OC. An all inclusive vacation
OD. Home mortgage interest

Answers

All-inclusive vacations are not an example of expenses that are not allowable tax deductions.

What are the tax deductions allowed?

They correspond to a form of exemption and credit in taxation, such as interest on a home mortgage, unreimbursed healthcare costs and charitable donations.

Therefore, tax deductions contribute to a reduction in taxable income and in the amount of taxable tax.

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Answer:

the answer is C.

Explanation:

Which one of the following will not cause a change in the demand for labour, illustrated by a shift of the demand curve?

A.
A decrease in the number of employers

B.
A decrease in the wage rate

C.
An increase in the price of the product

D.
A decrease in the productivity of labour

Answers

Answer:

B. An increase in the wage rate

Explanation:

what is local business​

Answers

A local business is a busses that sells its products and services to consumers in its own city or town.
a local business is a business that is pretty common and sells its own products to the public that is pretty familiar nor close.


An opportunity cost is best described as:

Answers

Answer :

You can describe it in relation to a particular activity which is the loss of value or benefit that would be incurred (the cost) by engaging in that activity, relative to engaging in an alternative activity offering a higher return in value or benefit.

hope this helps..

Answer:

The Alternative Forgone

Explanation:

The opportunity cost simply tells us what you have to give up in other to get something else. For instance, if you have $100 to get either a phone or a console. If you eventually get the console, the opportunity cost is the phone that you have forgone.

in your community on the negative impact of strikes as a socio economic issue on businesses

Answers

Explanation:

hooliganism

increase in poverty

insufficient revenue

decrease in productivity

Rank order the vendors keeping the seasonal products team’s needs in mind

Answers

The vendor that can change the seasonal demand of the product is Vendor V.

What is the meaning of Seasonal Product?

Seasonal Product refers to the product whose requirement occurs that the time of the season. For Example:- Requirement of the woolen clothes at the time of the winner season.

The complete question is attached below.

The team behind the seasonal product should think about using or taking Vendor V. This is due to their performance as per the diagram attached below.

It can be noticed that their performance is superior in every parameter listed in the table. Vendor V is enhancing the performance of all four elements in every parameter and is able to quickly adapt to seasonal variations.

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A steam generation system at a biomassfueled power plant uses an electrostatic precipitator (ESP) to clean its gaseous effluents. The power plant has consistently made use of the same type of ESP over the past several years. The installed cost of a new ESP has been relatively constant at $80,000. Records of operation and maintenance expenses indicate the following average expenses per year as a function of the age of the ESP. The MVs of the ESP are also reasonably well known as a function of age. Determine the best time to replace the ESP if the MARR
is 15% per year

Answers

A steam generation system at a biomass-fueled power plant uses an electrostatic precipitator (ESP) to clean its gaseous effluents. the best time to replace the ESP is mathematically given as

EUAC3= 46377.48

What is the best time to replace the ESP if the MARR is 15% per year?

Generally, the equation for the EUAC for the yrs of operation  is mathematically given as

For Year 1

EUAC1 = 85000 * (A/P,9%,1) + 25000 - 63000 * (A/F,9%,1)

EUAC1 = 54650

Solving till year 5

EUAC2= 46525.60

EUAC3= 46377.48

EUAC4= 48730.91

EUAC5= 50730.79

In conclusion,  the best time to replace the ESP if the MARR is 15% per year will be at the EUAC3= 46377.48  since EUAC is the lowest at that year.

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Which of the following is the best example of a law?
OA. You can't spend more money that you earn.
O B. You should not make promises you can't keep.
C. Teachers must retire at age 65.
D. You may not ask an interviewee if he or she is married or has
children.

Answers

The best example of a law is that C. Teachers must retire at age 65.

What is law?

It should be noted that law simply means the system of rules that guide or govern a group of people.

In this case, the best example of a law is that the teachers must retire at age 65. This guides them.

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how to solve the time value of money problems​

Answers

Answer:

The Time Value of Money formula is FV = PV x [ 1 + (i / n) ] (n x t)] where V is the Future value of money, PV is the Present value of money, i is the interest rate, n is the number of impounding periods per year, and t is the number of years.

Assuming a country's economy maintains an 8% rate of growth, young adults starting at age 20 would see the average standard of living in their country more than double by the time they had reached age

Answers

Answer:

A) 30

Explanation:

to determine in how many years the economy will double with an 8% growth rate, we can use the rule of 72. The rule of 72 basically works by dividing 72 by the compounding growth rate to determine the number of years it will take an investment to double.

The rule of 72 works well when growth rate is between 6-10%, at 8% it is quite exact. For lower growth rates you should use the rule of 70 which is basically the same but instead of using 72, you use 70. For growth rates over 10% you should use 69.3.

the number of years for the economy to double = 72/8 = 9 years, so 9 plus 20 = 29 years. Since the question asks at what age the economy should have more than doubled, it would be a little over 29, and in this case it is 30.

You can always check which number is more exact calculating 1.08⁹ = 1.999

list four factor you should consider when selecting a financial institution

Answers

Answer:

▪︎Products and Services That Fit Your Needs.

▪︎Security for Your Money.

▪︎Convenient Access to Your Cash.

▪︎Minimal Fees.

Explanation:

Requirements for a good code of ethics grade 11

Answers

Answer:

Don't be bad, help others.

Explanation:

Find the GDP data of a country within five years, and analyze the reasons for its growth and decline

Answers

The GDP of the United States shows sustained growth which translates into economic development. However, in 2020 it decreased due to the pandemic.

What is GDP?

The gross domestic product (GDP) is a term used in economics to refer to the macroeconomic magnitude that expresses the monetary value of the production of final demand goods and services of a country or region during a given period, usually one year.

Let's analyze the GDP of the United States2016 - 18.6 billion dollars.2017 - 19.5 billion dollars.2018 - 20.6 billion dollars.2019 - 21.4 billion dollars.2020 - 20.9 billion dollars.

According to the above information, it can be inferred that the United States has a high GDP as a result of its high industrialization and economic strength, however, in 2020 there was a decrease as a result of the pandemic.

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