Lincoln Company purchased merchandise from Grandville Corp. on September 30, 2018. Payment was made in the form of a noninterest-bearing note requiring Lincoln to make six annual payments of $4,600 on each September 30, beginning on September 30, 2021. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)Required: Calculate the amount at which Lincoln should record the note payable and corresponding purchases on September 30, 2018, assuming that an interest rate of 11% properly reflects the time value of money in this situation. Amount recorded
Answers
Answer:
Dr purchases $ 15,794.56
Cr notes payable $ 15,794.56
Explanation:
The present value of the annual payments of $4,600, starting in three years' time is computed as shown below:
PV of annual payments=$4600/(1+11%)^3+$4600/(1+11%)^4+$4600/(1+11%)^5+$4600/(1+11%)^6+$4600/(1+11%)^7+$4600/(1+11%)^8=$ 15,794.56
The amount of purchases and notes payable is $ 15,794.56
Related Questions
Why does an informal proposal seem like a contradiction?
Answers
On the other hand, informal means casual or relaxed, lacking in formality or structure. Thus, an informal proposal may appear to be an oxymoron because a proposal is expected to be structured, precise, and professional to communicate its intended goals and objectives to its audience.
However, in some cases, an informal proposal may refer to a proposal that is less structured, less in-depth, or less formal. An informal proposal may be used to introduce an idea or concept before a more formal proposal is developed. An informal proposal can also refer to an internal proposal or a proposal made in an informal setting, such as a conversation between colleagues. In these cases, the proposal may be less formal in tone and structure but still convey the main idea or concept proposed.
Paul’s grocery received 1,000 pounds of onion at $0.11 per pound. On the average, 3% of the onions will spoil before selling. Find the selling price per pound to obtain a makeup rate of 180% based on cost.
Answers
The selling price per pound for onions to obtain a makeup rate of 180% based on cost is $2.0350.
What is the selling price per pound for onions?Total Cost = Quantity * Cost per pound
Total Cost = 1,000 pounds * $0.11/pound
Total Cost = $110
Spoilage Quantity = 3% of Quantity
Spoilage Quantity = 3% of 1,000 pounds
Spoilage Quantity = 0.03 * 1,000 pounds
Spoilage Quantity = 30 pounds
Effective Quantity = Quantity - Spoilage Quantity
Effective Quantity = 1,000 pounds - 30 pounds
Effective Quantity = 970 pounds
Makeup Rate = 180%
Selling Price per pound:
= (Total Cost * Makeup Rate) / Effective Quantity
= ($110 * 1.80) / 970 pounds
= $2.03505/pound.
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A company’s product is the combination of all product it offers
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The statement "A company’s product is the combination of all product it offers" is incorrect, product mix is the combination of all product it offers.
The product mix consists of several product lines that a company offers for sale to buyers.
That is, it is the combination of products used as a marketing strategy in which a company offers a variety of products or services to its target audience.
Sometimes referred to as a product assortment, it has to do with the number of products and the type of products offered in each line, and the relevance of those products to consumers.
Therefore, we can conclude that the product mix is the combination of all product a company offers.
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produces sports socks. The company has fixed expenses of $ 80 comma 000 and variable expenses of $ 0.80 per package. Each package sells for $ 1.60. Read the requirementsLOADING.... Requirement 1. Compute the contribution margin per package and the contribution margin ratio. Begin by identifying the formula to compute the contribution margin per package. Then compute the contribution margin per package. (Enter the amount to the nearest cent.)
Answers
Answer:
Instructions are below.
Explanation:
Giving the following information:
Unitary variable expenses= $ 0.80
Selling price per unit= $ 1.60
First, we need to calculate the unitary contribution margin:
Unitary contribution margin= selling price - unitary variable cost
Unitary contribution margin= 1.6 - 0.8
Unitary contribution margin= $0.8
Now, the contribution margin ratio:
contribution margin ratio= contribution margin / sellig price
contribution margin ratio= 0.8/1.6
contribution margin ratio= 0.5
Find the present value of $10,000 received at the start of every year for 20 years if the interest rate is J1 = 12% p.a. and if the first payment of $10,000 is received at the end of 10 years
Answers
Answer:
$ 26,935.56
Explanation:
The key to this question is that present value of those cash flows in year ten is the future value today.
PV=PMT*(1/i-1/i*(1+i)^n)*(1+i)
PMT is the annual amount receivable which is $10,000
i is 12% or 0.12
n is 20 years
1/i*(1+i)^=1/0.12*(1+0.12)^20=1/(0.12*9.646293093 )=0.863889709
1/i=1/0.12=8.333333333
1+i=1+0.12=1.12
PV=10,000*(8.333333333 -0.863889709 )*1.12
PV=10,000*7.469443624*1.12=$83,657.77
The PV In ten years' time is future value today, hence we need to discount that future value to today's terms
PV=FV*(1+r)^-n
n is ten
r is 12%
PV=$83,657.77*(1+12%)^-10=$ 26,935.56
what is the reading about?
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The bonds of CYTK, Inc. carry a 12% annual coupon, have a $1,000 face value, and mature in 5 years. Bonds of equivalent risk yield 9%. What is the market value of CYTK bonds
Answers
Answer:
The market value of CYTK bonds is $1,116.69.
Explanation:
This can be calculated as follows:
Annual coupon = $1000 × 12% = $120
Annual coupon discount factor based ordinary annuity = ((1-(1/(1 + r))^n)/r)
Where;
r = rate of return of equivalent bond = 9%, or 0.09
n = number of years to maturity = 5
Therefore, we have
Annual coupon discount factor = ((1-(1/(1.09))^5)/0.09) = 3.88965126335172
PV of coupon = $120 × 3.88965126335172 = $466.76
PV of the face value of the bond = Face value ÷ (1 + r)^n = 1,000 ÷ (1 + 0.09)^5 = $649.93
Therefore, we have:
Market value of CYTK bonds = PV of coupon + PV of the face value of the bond = $466.76 + $649.93 = $1,116.69
Therefore, the market value of CYTK bonds is $1,116.69.
Countries participate in foreign trade because?
Answers
Countries participate in foreign trade because it does not have the comparative advantage in the production of all goods.
What is comparative advantage?A country has comparative advantage in production if it produces at a lower opportunity cost when compared to other countries. For example, some countries do not have crude oil, so it would have to import from countries that produce crude oil. It would be more efficient for these countries to import crude oil.
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How do these three rules apply to your life? Explain them in your words and try to think about how they relate to your financial situation. (Hint: Think about how you earn money and how you spend money, also imagine that you have been offered a credit card with a starting line of credit at $1000)
Rule 1 - Don't have debt rise faster than income, because the debt burden will eventually crush you
Rule 2 - Don't have income rise faster than productivity, because you will eventually become uncompetitive
Rule 3 - Do all that you can to raise your productivity, because in the long run that's what matters most
Answers
The three rules below will help individuals achieve financial stability and security, which is critical for living a happy and stress-free life. They can learn new skills, enroll in courses, read books, and so on to increase their productivity levels.
Rule 1: Don't have debt rise faster than income, because the debt burden will eventually crush you.To avoid falling into a debt trap, one should prioritize their spending. It's always a good idea to live within one's means and avoid spending more than they earn.Rule 2: Don't have income rise faster than productivity, because you will eventually become uncompetitive.It's a good idea to focus on increasing productivity to achieve long-term financial stability. One must avoid situations where they are not productive but are earning more money, as this can make them uncompetitive in the long run.Rule 3: Do all that you can to raise your productivity, because in the long run that's what matters most.Productivity is the most critical factor in achieving financial stability. Increasing productivity can lead to higher earnings, which can help you reach your financial goals faster.Individuals must always make efforts to improve their productivity. It's always a good idea to live within one's means, avoid unnecessary debt, increase productivity, and invest in oneself. In conclusion, the above three rules can be beneficial to anyone looking to achieve financial stability.
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Suppose your manager gave you a complex project that involved a lot of research and analysis to provide information to write a detailed and accurate report. How might you make it more manageable? What type of communication skills would that require? When you are done, submit your assignment for grading.
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A complex project report can be made more manageable by first outlining the key components to develop as a thesis statement and segmenting the duties.
What is a Report?
A report is a written or verbal statement that emphasises the most important problems or occurrences in any company and enables readers to understand the internal and external forces at play.
It's crucial to have written communication abilities that enable someone with a strong vocabulary to express themselves to the reader in a clear and concise manner in order to produce reports that are accurate and successful.
It is necessary to create an outline plan for the task that needs to be done since it aids in framing the report aspects when a project report requires extensive research and analysis to deliver information.
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33). Research by Hill, Kang, and Seo (2014) supports the notion that positive a leader-member relationship can result from _____.
A). a high degree of electronic communications between them
B). the leader and member having the same degree of conscientiousness
C). frequent social encounters with one another outside the workplace
D). the leader and member having complementary skill sets
Which is correct!
Answers
There was a lot of technological communication going on between them.
According to which leadership philosophy, it's critical to acknowledge the existence of in-groups and out-groups within an organization?According to the LMX theory's descriptive argument, it's critical to acknowledge the existence of in- and out-groups within a group or organization.
Which of the following leadership theories places the emphasis on the unique relationship each leader and each subordinate have with one another?The LMX theory of leadership is distinctive because, in contrast to other theories, it focuses on and discusses particular interactions between the leader and each subordinate. A reliable explanatory explanation is the LMX Theory. Our attention is drawn to the importance of communication in leadership by the LMX Theory.
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websites like kayak or expedia use blank to allow customers to compare prices on airline flights and hotels.
Answers
Websites like Kayak or Expedia use bots to allow customers to compare prices on airline flights and hotels.
Which four categories of customer value are there?
With their needs, wants, and financial resources, consumers expect goods and services with features that maximize their satisfaction and value. The four different categories of value are: psychological value, financial value, social value, and functional value.
What does "market strategy" mean?
A marketing strategy is a long-term plan for attaining a company's objectives through comprehending client needs and forging an identifiable and long-lasting competitive advantage.
It covers every aspect, including choosing which channels to employ to reach your target audience and identifying who your clients are.
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Suppose that a firm has both fixed-rate and floating-rate debt outstanding. What effect will a decline in interest rates have on the firm's times-interest-earned ratio
Answers
Answer and Explanation:
The times interest earned ratio refers to the ration that shows a relationship between the earnings before interest and taxes and the interest payments. In the case when the rate of interest declines so the interest payment would also be reduced that result in an increment of the times earned ratio keeping the EBIT unchanged.
This represents that the company has the good capacity to coverup the interest payments
Which dating app is going public with a valuation of about $2 billion?.
Answers
The dating app that is going public with a valuation of about $2 billion is Bumble. Bumble is a popular dating app that was founded in 2014 by Whitney Wolfe Herd.
The app is unique in that it requires women to initiate conversations with their matches, which has helped it gain popularity among female users. Bumble's parent company, Bumble Inc., recently filed for an initial public offering (IPO) and plans to list on the Nasdaq under the ticker symbol BMBL.
The company plans to raise $100 million from the IPO, and its valuation is expected to be around $2 billion. Bumble has grown rapidly in recent years and currently has over 100 million users in more than 150 countries. The company also offers other services, including Bumble BFF, which helps users find friends, and Bumble Bizz, which helps users network professionally.
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Which of the statements is not true about a bank run? Bank runs are bad for the bank affected and usually good for the bank's competitors. Fears leading to bank runs can be self-fulfilling. Deposit insurance is designed to reduce the risk of bank runs for depository banks. There was a wave of bank runs during the Great Depression. Since the Great Depression the government has set up regulation that has eliminated most bank runs.
Answers
Answer:
Explanation:
90% of people marry there 7th grade love. since u have read this, u will be told good news tonight. if u don't pass this on nine comments your worst week starts now this isn't fake. apparently if u copy and paste this on ten comments in the next ten minutes you will have the best day of your life tomorrow. you will either get kissed or asked out in the next 53 minutes someone will say i love u
Which of the following is a key consideration in selecting an allocation base?
a. The allocation base should have an indirect association with the cost objective.
b. The allocation base should be difficult to measure.
c. There should be logical association between the allocation base and the incidence of costs.
d. The allocation base should be out of the control of management.
Answers
Answer:
C. There should be logical association between the allocation base and the incidence of costs.
Explanation:
We define the allocation base as that quantity through which the overhead cost and be allocated to. This base is usually in the form of a quantity. It could be the kilowatts used in hours, or the machine hours used.
It should be able to show to a logical extent how the cost object used the resources to which it is assigned
Onofkp411 Corporation has a time contraint on one of its special machines. The company makes three products that use this machine. Data concerning those products appear below: Magnifico Bellissimo Lovely
Selling price per unit $ 335.18 $ 228.46 $ 199.21
Variable cost per unit $ 259.26 $ 173.08 $ 159.61
Minutes on the constraint 7.50 4.30 5.50
Assume that sufficient time is available on the constrained machine to satisfy demand for all but the least profitable product Q) Up to how much should Onofkp 411 be willing to pay to acquire more of the constrained resource (Round your intermediate calculations to 2 decimal places.)
a) $75.80 per minute
b) $14.17 per unit
c) $39.48 per unit
d) $774 per minute
Answers
Answer: $7.20 per minute
Explanation:
Find out the profitability of each product as Contribution Margin per minute.
Magnifico
Contribution margin per minute = (Selling price - Variable cost) / minutes on the constraint
= (335.18 - 259.26) / 7.5
= $10.12 per minute
Bellissimo
= (228.46 - 173.08) / 4.3
= $12.88 per minute
Lovely
= (199.21 - 159.61) / 5.5
= $7.20 per minute
Their least profitable product is $7.20 per minute.
The machine does not have sufficient time to satisfy the needs of Lovely so they will have to pay more to acquire more of the resource but they should not pay anything more than $7.20 per minute as this is their contribution margin for the product. and anything more would result in a loss.
Options are most probably for another variant of the question.
What is the probability the project will be finished between 62 and 66 weeks?
Answers
Assuming a two-tailed test, the probability of the project being finished between 62 and 66 weeks is approximately 34.13%.
To calculate the probability that the project will be finished between 62 and 66 weeks, we need to have information on the distribution of project completion times.
Assuming that the completion times are normally distributed, with a mean of 65 weeks and a standard deviation of 2 weeks, we can use the standard normal distribution to calculate the probability.First, we need to standardize the values of 62 and 66 by subtracting the mean and dividing by the standard deviation. This gives us:z1 = (62 - 65) / 2 = -1.5
z2 = (66 - 65) / 2 = 0.5
Next, we can use a standard normal distribution table or a calculator to find the area under the curve between z1 and z2, which represents the probability that the project will be finished between 62 and 66 weeks. The probability can also be expressed as a percentage.Assuming a two-tailed test, the probability of the project being finished between 62 and 66 weeks is approximately 34.13%. This means that there is a 34.13% chance that the project completion time will fall within this range, given the mean and standard deviation of the distribution.
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Suppose the working-age population of a fictional economy falls into the following categories: 30 are retired; 45 are stay-at-home parents; 120 are employed full time; 40 are employed part time; 25 are unemployed but are actively looking for employment; 15 are unemployed and are not actively looking for employment. The official unemployment rate as calculated by the BLS would be
Answers
Answer:
The unemployment rate is 13.51%
Explanation:
The computation of the unemployment rate is as follows;
But before that following calculations need to be done
Labor Force is
= 120 + 40 + 25
= 185
And, the unemployed would be 25
Now the unemployment rate is
= unemployed ÷ Labor Force
= 25 ÷ 185
= 13.51%
hence, the unemployment rate is 13.51%
Product: Cheetos Country: Australia
4. Customer Value: What value or benefits will your product or service deliver to the consumers?
5. Profit: What will you charge per individual product or service?
6. Marketing: How will customers learn about your product/service?
7. Customer loyalty: How will you encourage customer loyalty and referrals for new customers?
8. SWOT Analysis:
What are the STRENGTHS of conducting business/marketing your product/service in this country?
b. What are the WEAKNESSES of conducting business/marketing your product/service in this country?
c. What are the OPPORTUNITIES of conducting business/marketing your product/service in this country?
d. What are the THREATS (competition?) of conducting/marketing your product/service in your country?
9. How will you know when you are successful?
10. Describe your expectation of your product/service life cycle in this country. How long before your product/service reaches maturity?
( PLS INCLUDE MORE THAN ONE SENTENCE)
Answers
Cheetos are a popular snack food that delivers a delicious and satisfying taste experience to consumers.
Cheetos are widely available in supermarkets and convenience stores across the country.
4. Customer Value: The product provides a convenient and easy-to-eat snack option for people on-the-go. The bold and cheesy flavor of Cheetos appeals to both children and adults, making it a versatile snack option. Additionally, Cheetos are available in different sizes and packaging options, catering to individual preferences and needs.
5. Profit: The price of Cheetos in Australia will depend on the size and packaging of the product. However, a single serving size of Cheetos (28g) is expected to be priced between AUD 1.50 to AUD 2.50.
6. Marketing: To promote Cheetos in Australia, the product can be advertised on social media platforms. The brand can collaborate with popular influencers and create exciting and engaging content that appeals to the target audience. Additionally, the brand can host sampling events and offer promotions to generate interest and awareness.
7. Customer loyalty: To encourage customer loyalty, the brand can offer loyalty programs that provide incentives and rewards for repeat purchases. The brand can also engage with customers through social media and respond to their queries and feedback promptly. Offering excellent customer service and delivering a consistent product experience can also help generate customer loyalty and referrals.
8. SWOT Analysis: a. Strengths: Cheetos are a popular and recognizable brand globally. The brand has a loyal following and offers a unique and delicious taste experience that appeals to a broad range of customers.
b. Weaknesses: The snack food market in Australia is highly competitive, with many established brands competing for market share. Cheetos may face challenges in establishing a foothold in the market and competing with established brands.
c. Opportunities: Australia has a growing snack food market with a diverse and multicultural population. Cheetos can leverage this opportunity and tailor its marketing and product offerings to appeal to different customer segments.
d. Threats: Competition from established brands and changing consumer preferences and trends pose significant threats to the success of Cheetos in the Australian market.
9.Success Measurement: The success of Cheetos in Australia can be measured by sales figures, market share, and customer feedback. Additionally, the brand can track social media engagement and monitor customer sentiment to evaluate the effectiveness of its marketing campaigns.
10. Product/Service Life Cycle: The life cycle of Cheetos in Australia will depend on various factors, including market trends, competition, and customer preferences. Typically, snack foods have a relatively short product life cycle, and the time to maturity can vary from several months to a few years. However, Cheetos' popularity and brand recognition may help the product reach maturity sooner.
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What was Indiana's total government expenditures in fiscal year 2018-2019? (1 point)
O $15.9 billion
O $11.9 billion
O$34.89 billion
O $34.11 billion
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Indiana's total government expenditures in the fiscal year 2018-2019 is $34.89 billion. The correct option is C.
Public consumption, public investment, and transfer payments made up of capital transfers and income transfers (pensions, social benefits), collectively referred to as government expenditures, are all included in the definition of goods and services.
Fiscal policy is characterized as the strategy used by the government to carry out various economic policy goals through the use of taxation, public expenditure, and public borrowing.
Thus, the ideal selection is option C.
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See if you can find all eight components and provide an example for each one.
Answers
Components come in two types, Class components, and Function components, in this tutorial we will concentrate on Function components.
What is a Component?An approach for condensing a large number of connected variables into fewer, more significant components is simple component analysis. It offers a more understandable result than the principal component analysis but is similar.
The parts that make up something is its constituents. One essential element of a nuclear bomb is enriched uranium. There are four basic parts to the management strategy. The parts which make up something are its constituent parts.
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Describing what is the X axis?
Answers
Answer:
the principal or horizontal axis of a system of coordinates, points along which have a value of zero for all other coordinates. -dictonary
Classical economists support which amount of
government intervention into the economy?
A. limited
B. negligent
C. large
Answers
explanation: i took the test
On March 21, 2021, Christine worked 5.5 hours on Job A-1, and 3 hours on general "overhead activities." Christine is paid $15 per hour. Overhead is applied based on $23 per direct labor hour. Additionally, on March 21 Job A-1 requisitioned and entered into production $290 of direct material. On March 21, Christine, while working on Job A-1 used $27 of indirect material. Indirect material is included in the overhead application rate. Use this information to determine the total cost that should have been recorded in the Work in Process for Job A-1 on March 21?
Answers
Answer:
1. Total cost (TC) in WIP of Job A-1 is $456.00 2. Completed number of units is 2,675. 3. Equivalent unit (EU) of production for conversion is 34,560 units.
The total cost that should have been recorded in the Work in Process for Job A-1 on March 21 is $499.
What is The Total Cost?
Whole cost refers to the total cost of achieving a certain level of output; average or unit cost is calculated by dividing total cost by amount produced.
The total cost includes the Direct material, direct labor, direct Expenses and the indirect costs.
Computation of Total Cost for Job A-1 on May 21:
According to the given information,
Direct Material = $290,
Direct Labor:
\(\text{Direct Labor} = \text{Direct LaborHour} \times \text{Direct Labor Hour Rate}\\\\\text{Direct Labor} = 5.5 \times \$15\\\\\text{Direct Labor} = \$82.5\)
Then find the Overhead Cost:
\(\text{Overhead Cost} = \text{Direct Labor Hour} \times \text{Overhead Rate Per Hour}\\\\\text{Overhead Cost} =5.5 \times \$23\\\\\text{Overhead Cost} =\$126.5\)
Then the Total Cost is:
\(\text{Total Cost}= \text{Direct Material + Direct Labor + Overheads}\\\\\text{Total Cost}= \$290+\$82.2+\$126.5\\\\\text{Total Cost}= \$499\)
Therefore, the Total cost is $499.
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Assume money supply rule. Growth in Q is 5%; growth in V is 2%. How
much should the MS grow to keep P constant? Assume MV = PQ (note: what
should the value of M and P be to balance the equation MV = PQ).
Answers
The money supply (M) should grow by the factor of (V1 / (Q1 * 1.05)) to keep the price level (P) constant.
How to determine How much should the MS grow to keep P constant?To keep the price level (P) constant when the growth in output (Q) is 5% and the growth in velocity (V) is 2%, we need to adjust the money supply (M) accordingly.
The equation MV = PQ represents the quantity theory of money, where M represents the money supply, V represents the velocity of money, P represents the price level, and Q represents the output.
Since we want to keep P constant, we can set the initial value of MV equal to the final value of PQ:
MV = PQ
Assuming the initial values of M and P are M1 and P1 respectively, and the final values are M2 and P2, we can rewrite the equation as:
M1V1 = M2Q
Since we know that Q is growing at 5% (Q2 = Q1 * 1.05), and V is growing at 2% (V2 = V1 * 1.02), we can substitute these values into the equation:
M1V1 = M2Q1 * 1.05
To keep P constant, we need to solve for M2:
M2 = (M1V1) / (Q1 * 1.05)
Therefore, the money supply (M) should grow by the factor of (V1 / (Q1 * 1.05)) to keep the price level (P) constant.
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Summarize the benefits and problems of the global food system.
Answers
Answer: Their are many benefits of the global food system, there are also problems.
Explanation: Weather impacts our food globally when their are droughts, storms etc. You need to consider that some people don't have access to food, or water access. Climate change is a big factor when it comes tothe global food system.
Sussman Co. prepared cash-basis financial statements for the month ended January 31. A summary of Sussman's January activities follows:Credit sales of $5,600.Collections of $1,900 relating to January credit sales.Accrued salaries of $1,200.By what amount will Sussman's cash-basis income for the month ended January 31 increase as a result of restating these activities to the accrual basis of accounting?A.$2,500B.$3,700C.$4,400D.$4,900
Answers
Sussman's cash-basis income for the month ended January 31 would increase by $4,900. The accrual basis of accounting records revenues when they are earned and expenses when they are incurred, regardless of when cash is received or paid out.
In this case, Sussman Co. made $5,600 in credit sales during January. However, they only collected $1,900 in cash from those sales. Under the cash basis of accounting, they would only record $1,900 in revenue. But under the accrual basis of accounting, they would record the full $5,600 in revenue because they earned it in January, regardless of when they collect the cash. Additionally, Sussman Co. incurred an expense for $1,200 in accrued salaries. But under the cash basis of accounting, they would not record this expense until they actually pay the salaries in cash. However, under the accrual basis of accounting, they would record the $1,200 expense in January because they incurred it even though they haven't paid in cash yet.
Therefore, by restating these activities to the accrual basis of accounting,
Sussman's cash-basis income is
$5,600 in credit sales - $1,200 in accrued salaries = $4,900
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Sweet Catering completed the following selected transactions during May 2016:
May 1: Prepaid rent for three months, $2,400
May 5: Received and paid electricity bill, $60
May 9: Received cash for meals served to customers, $2,610
May 14: Paid cash for kitchen equipment, $3,880
May 23: Served a banquet on account, $2,050
May 31: Made the adjusting entry for rent (from May 1).
May 31: Accrued salary expense, $730
May 31: Recorded depreciation for May on kitchen equipment, $780
If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May? If there is a loss, enter it with parentheses or a negative sign.
Answers
If Sweet Catering had recorded transactions using the Cash method, the net loss recorded for the month of May would have ($3,730).
What is the cash basis of accounting?The cash basis of accounting is the opposite of the accrual basis. This accounting method records transactions based on the occurrence of cash receipts and payments.
On the other hand, the accrual basis takes into consideration all transactions that pertain to the period whether cash movements are involved or not.
Transaction Analysis:May 1: Prepaid Rent $2,400 Cash $2,400
May 5: Electricity $60 Cash $60
May 9: Cash $2,610 Sales Revenue $2,610
May 14: Kitchen equipment $3,880 Cash $3,880
May 23: Accounts Receivable $2,050 Sales Revenue $2,050
May 31: Rent Expense $800 Prepaid Rent $800
May 31: Salary expense $730 Salaries Payable $730
May 31: Depreciation Expense- kitchen equipment, $780 Accumulated Depreciation $780
Cash Accounting for net income (loss):
Cash Revenue $2,610
Kitchen equipment -3,880
Prepaid rent -2,400
Electricity -60
Net loss = $3,730
Thus, if Sweet Catering had recorded transactions using the Cash method, the net loss recorded for the month of May would have ($3,730).
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The following data are taken from the financial statements of Crane Company.
2022 2021 Accounts receivable (net), end of year $ 567,900 $ 555,000 Net sales on account 4,831,000 4,179,000 Terms for all sales are 1/10, n/45
1) Compute for each year the accounts receivable turnover. At the end of 2015, accounts receivable was $511,500. (Round answers to 1 decimal place, e.g. 12.5.)
2) Compute for each year the average collection period. (Round answers to 1 decimal place, e.g. 12.5. Use 365 days for calculation.)
Answers
Answer and Explanation:
The computation is shown below;
(1)
As we know that
The receivables turnover = Net credit sales ÷ Average account receivable
For the year 2017
Receivables turnover = $4,831,000 ÷ $561,450 = 8.60 times
for the year 2016:
Receivables turnover = $4,179,000 ÷ $533,250 = 7.84 times
Average net AR = (Beginning AR + Ending AR) ÷ 2
2017 = ($567,900 + $555,000) ÷ 2 = $561,450
2016 = ($555,000 + $511,500) ÷ 2 = $533,250
(2)
The average collection period = 365 days ÷ Receivables turnover
For 2017:
Average collection period = 365 ÷ 8.60 = 42.44 days
For 2016
Average collection period = 365 ÷ 7.84 = 46.56 days