As the recently appointed auditor for B Corporation, you have been asked to examine selected accounts before the 6-month financial statements of June 30, 2020, are prepared. The controller for B Corporation mentions that only one account is kept for intangible assets. The account is shown below.Date Particulars Debit Credit BalanceJan. 4 Research and development costs $932,000 $932,000Jan. 5 Legal costs to obtain patent $72,480 $1,004,480Jan. 31 Payment of 7 months' rent on property leased by B Corp $85,400 $1,089,880Feb. 11 Premium on common stock $232,000 $857,880Mar. 31 Unamortized bond discount on bonds due March 31, 2040 $88,800 $946,680Apr. 30 Promotional expenses related to start-up of business $216,800 $1,163,480Jun. 30 Operating losses for first 6 months $247,500 $1,410,980Prepare the entries necessary to correct this account. Assume that the patent has a useful life of 10 years.
Answers
Adjusting journal entries are those made by accountants at the end of the fiscal year to close the temporary accounts and transfer the remaining balances to the permanent accounts.
Adjusting journal entries is required to accurately reflect a company's true financial position. They are used to adjust the balances of specific accounts prior to the preparation of financial statements.
Adjusting journal entries is also used to update accounts for unpaid expenses or revenue that has not yet been recorded. For example, if a company has unpaid expenses from the previous period, the expense would be recorded using an adjusting journal entry.
To correct this account, the following entries need to be made:
1. Record amortization of patent:
Date Particulars Debit Credit
June 30 Amortization expense $7,248 Patent $7,248
2. Record payment of rent:
Date Particulars Debit Credit
June 30 Cash $85,400 Rent expense $85,400
3. Record premium on common stock:
Date Particulars Debit Credit
June 30 Common stock $232,000 Paid-in capital in excess of par $232,000
4. Record amortization of bond discount:
Date Particulars Debit Credit
June 30 Amortization expense $8,880 Bond discount $8,880
5. Record promotional expenses:
Date Particulars Debit Credit
June 30 Promotional expense $216,800 Cash $216,800
6. Record operating losses:
Date Particulars Debit Credit
June 30 Operating loss $247,500 Retained earnings $247,500
After making all the entries, the account should now show the following balances:
Date Particulars Debit Credit Balance
June 30 Patent $7,248 $1,417,228
June 30 Rent expense $85,400 $1,331,828
June 30 Common stock $232,000 $1,099,828
June 30 Bond discount $8,880 $1,091,948
June 30 Promotional expense $216,800 $875,148
June 30 Operating loss $247,500 $627,648
For more questions like Adjusting journal entries click the link below:
https://brainly.com/question/28867174
#SPJ4
Related Questions
FILL IN THE BLANK the general electric model can be compared to swot analysis. market attractiveness corresponds to the_____element is swot analysis, whereas business strength corresponds to the_______ element.
Answers
Swot analysis and the general electric model are comparable. In a swot analysis, company strength refers to the internal aspect, while market attractiveness corresponds to the external element.
Which of the following actions could a marketer do while conducting a situational analysis?A situational analysis determines possible clients, examines predicted growth, evaluates competitors, and creates a realistic assessment of your company using market research. It entails focusing on the specific goals of the company and determining the elements that help or hinder those goals.
When a company launches a new product or service, which growth approach is employed?Market development plan is a growth strategy used by businesses or organizations to reach target consumers they haven't yet attained or aren't already serving with their offerings.
To Know more about Market development
https://brainly.com/question/28497768
#SPJ4
mary manages a manufacturing plant. two inputs are used to produce the product. to minimize the costs of production, mary should continue to hire inputs up to the level at which the
Answers
Mary manages a manufacturing plant. two inputs are used to produce the product. to minimize the costs of production, Mary should continue to hire inputs up to the level at which the (marginal product × price) of each input is equal. Thus, option (c) is correct.
Mary should keep hiring inputs up to the point when the marginal product price of each input is equal in order to reduce production costs.
This is so because an input's price is the cost of purchasing an extra unit of that input, whereas an input's marginal product is the additional output created by adding one more unit of that input.
To keep costs to a minimum, the marginal product price of an input should match the cost of hiring that input. This additional revenue is obtained by adding one more unit of that input.
As a result, the significance of the Mary should continue to hire inputs up to the level at which the (marginal product × price) of each input is equal are the aforementioned. Therefore, option (c) is correct.
Learn more about on marginal product, here:
https://brainly.com/question/34178681
#SPJ12
Your question is incomplete, but most probably the full question was.
Mary manages a manufacturing plant. two inputs are used to produce the product. to minimize the costs of production, Mary should continue to hire inputs up to the level at which the
(A) price of each input is equal
(B) marginal product of each input is equal
(C) (marginal product × price) of each input is equal
(D) (marginal product + price) of each input is equal
(E) (marginal product - price) of each input is equal
includes determining which risks may adversely affect the project objective and what the impact of each risk might be if it occurs.
Answers
Risk identification includes determining which risks may adversely affect the project objective and what the impact of each risk might be if it occurs.
Risk can be characterized as the chance that something bad will occur. Risk, which is frequently focused on undesirable and unpleasant outcomes, is uncertainty about how a decision will affect or connect to something that people value highly.
Numerous distinct definitions have been improved. The worldwide definition of risk for use in various applications is "the influence of uncertainty on targets. Risk is understood, approached to assessment and management, interpreted, and even defined differently in different fields of expertise. This article includes links to additional articles that cover these subjects in greater detail.
To know more about Risk here-
https://brainly.com/question/27754423
#SPJ4
a bond futures contract with one deliverable bond has a maturity date in 2 years from now have, par value of $100, and annual coupon of $8. if the futures delivery date is in 1 year, determine the futures price if r0,1
Answers
The futures price is 93.72. The correct answer is option (c).
What is Future price?The futures price is the price that two parties agree upon in a contract (known as a futures contract) for the sale and delivery of the item at a future date. The current spot price plus the carry cost are added to determine the notional price of a future contract. The supply and demand of the underlying stock, however, have a significant impact on the real price of the futures contract.
A futures contract in finance is a standardized legal agreement between unidentified parties to purchase or sell something at a fixed price for delivery at a specific period in the future.
To know more about Future price, visit:
https://brainly.com/question/8776006
#SPJ4
The full question is,
a bond futures contract with one deliverable bond has a maturity date in 2 years from now have, par value of $100, and annual coupon of $8. if the futures delivery date is in 1 year, determine the futures price if R(0,1) = 5%, R(0,2)=10%
a). 100
b). 102.86
c). 93.72
d). 98.18
e). none of the above
assume that the jpy and cny are highly correlated. a u.s. firm anticipates the equivalent of $1 million cash outflows in cny and the equivalent of $1 million cash outflows in jpy. during a____cycle, the firm is______affected by its exposure.
Answers
assume that the jpy and CNY are highly correlated. a u.s. firm anticipates the equivalent of $1 million cash outflows in CNY and the equivalent of $1 million cash outflows in jpy. during a strong dollar cycle, the firm is favorably affected by its exposure.
China uses the renminbi (CNY) as its official currency legalized by the communist government. It is one of the most traded currencies in the world, coming in at number five. Japan's national currency is the yen (JPY). After the US dollar and the euro, it is the third most traded currency on the foreign exchange market. It has a subunit known as the Sen. It is also commonly utilized as a third reserve currency. Price pressure results from an increase in the cost of importing goods from the United States when a nation's currency depreciates versus the dollar.
To learn more about CNY, click on:
https://brainly.com/question/15308830
#SPJ4
As the chief financial officer, you identify that your firm needs to raise additional funds by selling new shares of stock. What specialist would be able to assist your firm in the issue and sale of new securities? Group of answer choices
O an investment banker
O a commodities broker
O an officer of the Securities and Exchange Commission (SEC)
O an institutional investor advisor
Answers
The company could use the help of an investment banker to help with the issuance and sale of new securities. Therefore, choice (A) is the acceptable answer.
Who is an investment banker?Investment bankers serve institutional clients in tasks like capital raising and mergers and acquisitions by combining their knowledge of the financial services sector, analytical brilliance, and persuasive communication abilities.
Investment bankers assist their clients in raising finance on the capital markets by selling debt or equity in the businesses. Other responsibilities include guiding clients through mergers and acquisitions (M&As) and providing them with information on specialized investment options like derivatives.
Hence, option (A) is accurate.
Learn more about investment banker, from:
brainly.com/question/17255368
#SPJ4
When competitors attempt to share some activities or join together in the performance of a function, they are performing ______.
A. derivative activities
B. appellate activities
C. preemptive activities
D. arbitrated activities
E. concerted activities
Answers
When competitors attempt to share the activities or join together in performance of function, they are performing concerted activities.
What is a concerted activity?Employees typically engage in concerted behavior when they come together for one another's protection or support. This includes things like talking about their employment's terms and circumstances, like compensation, perks, how management treats them, dress regulations, workplace rules, or scheduling. Consequently, it is illegal for employers to try to prevent their workers from participating in concerted activity or to retaliate against them if they do. Supervisors must exercise their independent judgment and real power in order to qualify for exemption. Additionally, employers should be aware that it is quite simple for an employee to qualify for protection under the act if they are discussing the terms and circumstances of their employment in a physical setting with coworkers or managers or in a shared virtual workspace.
To learn more about management, visit:
https://brainly.com/question/29023210
#SPJ4
between 1861 and 1864, the cost of goods in the confederacy rose by group of answer choices 3,000 percent. 9,000 percent. 1,000 percent. 200 percent. 600 percent.
Answers
Between 1861 and 1864, cost of goods in confederacy rose by 3,000 percent.
What is a confederation?A confederation is a grouping of independent nations or states joined for shared objectives. Confederations of states are frequently founded by treaties to deal with important issues like defense, international affairs, domestic trade, or currency. The central government is obligated to support all of the confederation's members. Confederalism is a key example of intergovernmentalism, which is defined as any connection between nations that is based on their sovereign independence or system of government. There are many different types of relationships between the member nations that make up a confederation. A variety of relationships and power structures exist between the member states and the federal government. International organizations can be compared to some looser confederations.
To learn more about government, visit:
https://brainly.com/question/6692596
#SPJ4
Anthony (29) and Vanessa (31) have lived together for the last couple of years. They are not married and do not present themselves as married. Vanessa's daughter, Sasha (9), lived with them all year. Sasha is not Anthony's daughter. Sasha's father, Ted, is not in her life, but Ted sends Vanessa $100 in child support each month. Anthony's wages were $36,291, Vanessa's wages were $23,576, and Sasha has no income.
Using 2018 tax law, who should claim Sasha as a dependent?
O Anthony.
O Vanessa.
O Ted.
O Sasha
Answers
Using the 2018 tax law, Sasha is a dependent claim by Anthony. Thus the correct option is B.
What is claiming dependent?
A claim that someone is dependent is used to mean that person relies on others for financial help or that person is unable to cover his own bills.
In the case at hand, Sasha does not have a job, but she does get $100 in child support from her father, Ted, each month. Her mother and Ted's partner, who is not her father, are both fully responsible for Sasha.
As per the given information, The Claim that Sasha is dependent is done by her mother Venessa as she bears all her responsibility by providing her with financial support.
Her After only pays support of $100 for his child but all other responsibility is taken by the mother as well as she resides with her so she can claim her as a dependent.
Therefore, option B is appropriate.
Learn more about Claiming dependent, here:
brainly.com/question/26238363
#SPJ4
Lewis Co. reports the following results for May. Prepare a flexible budget report showing variances between budgeted and actual results. Sales Variable expenses Fixed expenses (total) Units produced and sold Budgeted $ 300 per unit $ 120 per unit $125,000 1,200 Actual $435,000 $172,000 $122,000 1,400 List variable and fixed expenses separately. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance) LEWIS CO. Flexible Budget Performance Report For Month Ended May 31 Flexible Budget Actual Results Variances $ 435,000 172,000 Sales Variable expenses Contribution margin Fixed expenses I Income from operations Fav./Unf. Favorable Unfavorable Favorable Favorable Favorable 122,000
Answers
To show how actual outcomes compare to projected amounts, a budget report is created. Columns for actual and planned amounts, as well as the variations between them, are included.
The process for creating a flexible budget?The following outcomes are listed for May in the Lewis Co. image. Make a flexible budget report outlining the differences between expected and actual results. Sales Amounts that fluctuate Unchanging costs (total) Production and sales of units Each unit is allocated $300. $120 per unit Actual cost: $125,000 1,200; $172,000, 122,000, and 1,400; $435,000. Separately list your fixed and variable costs. Choose from positive, unfavorable, and no variance to indicate the impact of each variable. For the month that ended on May 31, LEWIS COFlexible .'s Budget Performance Report A Flexible Budget Differences in actual results $ 435,000 172,000 Sales Amounts that fluctuate.
To know more about compare visit:
https://brainly.com/question/14908224
#SPJ4
which of these offerings below has an almost equal balance of tangible and intangible attributes? movie theater dog food advertising agency fast-food restaurant
Answers
The "Ps" are another name for it in marketing. refers to the physical product or intangible service that the company provides to its target market. In addition to the main product, they offer the customers other goods or services.
Anything that can be felt physically is considered a tangible good, such as printed books, CDs, DVDs, lights, food, and baseball bats. Asking if something can be touched or picked up in the real world is one of the simplest methods to tell if something is substantial or not. relates specifically to the mechanical or human tasks that businesses carry out. services that cannot be felt, tasted, or seen in the same way that a pure product can. Example: A physical examination is an intangible service even if you can see and hear the doctor performing it. The production and consumption of services, such as haircuts, occur simultaneously.
To learn more about intangible click the link below:
brainly.com/question/29916481
#SPJ4
____ is the pmbok guide 6e process that determines how project procurement decisions, approach, and dealing with sellers will be accomplished and documented.
Answers
Conduct Contract Reviews is the pmbok guide 6e process that determines how project procurement decisions, approach, and dealing with sellers will be accomplished and documented.
An agreement's important terms can be found and analyzed through a procedure known as a contract review. A legal expert will carefully read each contract to comprehend the terms and circumstances and to identify any hazards or important information.The contract review checklist is a thorough list of every important element that has to be evaluated before you sign a contract. It serves as the bare least that should be done before agreeing to anything, but it cannot take the place of a qualified contract review attorney.To know more about Contract here
https://brainly.com/question/5746834
#SPJ4
if actual gdp is 500 billion and there is a negative gdp gap of 10 billion potential gdp is 520 million 490 billion 10 billion 990 million
Answers
With a negative GDP gap of $10 billion and an actual GDP of $500 billion, the potential GDP is $510 billion.
What percentage of the actual GDP falls short of the potential GDP?The discrepancy between the real GDP level as it is today and its potential level is known as the output gap. Inflation is likely to occur when the output gap is positive or when GDP exceeds potential because the economy is operating above its sustainable capacity. If GDP is below potential, the production gap is negative.
What exactly is a negative GDP gap?As a result of insufficient demand, a negative gap means that the economy has excess capacity. When there is an output gap, resources are either being employed inefficiently or insufficiently in the economy.
Learn more about output gap: https://brainly.com/question/29556015
#SPJ4
given the following distances between destination nodes, what is the minimum distance that connects all the nodes?
Answers
The minimum distance in the following calculations connecting all of the destination nodes is 750 miles.
Destination nodes: what are they?One of the destination choice (network nodes and virtual nodes) that cannot be reached during route selection is represented by one network-qualified reference station name in the target node list structure.
What do server nodes do?Nodes are devices or CPUs that function as Entire Strategy To build nuclei or Whole System Azure servers and carry out operating system requests. Similar to how database IDs identify between various Adabas databases, they can be recognized by numerical identifiers.
To know more about destination nodes visit :
https://brainly.com/question/27743345
#SPJ4
Put the four evolutionary stages in the correct historical order, with the oldest on the top and the newest on the bottom.
Answers
The four Ps of the marketing mix are these four components: Product: a product, service, or concept to meet the needs of the customer.
Price: what is traded for the item. Promotion: a way for the buyer and seller to communicate.
What aspects of the marketing concept are included?The four pillars of the marketing concept are: target market, client needs, incorporated showcasing and benefit.
How does the era of marketing concepts differ from the era of production?In the marketing concept era, businesses had to figure out what their customers wanted and needed before making products that met those needs. This was different from making products and then trying to get people to buy them.
To learn more about marketing mix here:
https://brainly.com/question/14591993
#SPJ4
Matilda, a calendar year taxpayer, made the following donations to qualified charitable organizations during the year:
Basis: Fair Market
ValueCash donation to State University: $30,000: $30,000
Unimproved land to the City of Terre Haute, IN: 70,000 : 210,000
The land had been held as an investment and was acquired four years ago. Shortly after receipt, the City of Terre Haute sold the land for $210,000. Matilda's AGI is $450,000. The allowable charitable contribution deduction this year is:
a.$240,000.
b.$225,000.
c.$100,000.
d.$165,000.
Answers
The allowable charitable contribution deduction this year is: $165,000.
A charitable donation is when someone gives money or property to a nonprofit organisation so that it can use it to further its objectives without expecting anything in return. In the United States, donors can deduct their charitable contributions from their federal tax returns.
The types of gifts that can be made and the kinds of organisations that can accept them are limited by the Internal Revenue Service (IRS). The receiving charity must be a qualified organisation in the eyes of the IRS in order for donations to be tax deductible.
To learn more about charitable contribution refer here:
https://brainly.com/question/22597080
#SPJ4
For each of the tests of controls for sales and receivables, indicate the assertion that is supported by placing the correct number in the blank 1. Accuracy 2. Completeness 3. Occurrence 4. Completeness 5. Accuracy A. Scan sales invoices for missing numbers in sequence. B. Perform arithmetic recalculation of a sample of recorded sales invoices. C. For a sample of recorded sales, determine whether credit was approved. D. Trace a sample of credit memos to postings in customers accounts. E. Select a sample of customer accounts and vouch debits to sales invoices
Answers
Indicate the claim that is supported by placing it next to each controls test for sales and receivables Completeness ,Accuracy, Occurrence, Accuracy , Completeness .
How can accuracy be explained?A measurement's degree of accuracy in respect to its actual value. The level to which the same results are produced by repeated observations under the same circumstances is known as precision.
What is an example of accuracy?A measurement's degree of accuracy in proportion to a standard or known value. For instance, your measurement is inaccurate if you determine in a lab that a substance weighs 3.2 kg when the true or actual weight is 10 kg. Your measurement does not match the known value in this situation.
To know more about accuracy visit:
https://brainly.com/question/28103280
#SPJ4
If the average variable cost of producing 4 burritos is $20 and the average variable cost of producing 5 burritos is $25, then the marginal cost of increasing output from 4 to 5 burritos is...
A. $5
B. $25
C. $45
D. $30
E. $50
Answers
The marginal cost is the relationship between the change in the production of a product and the amount of product produced. It is calculated when it can be determined that the business activities are becoming profitable. The marginal cost equation is known as:
Marginal Cost = (Changes in Costs) / (Changes in quantity)We can conclude that if marginal cost is less than average variable cost always declines and it is minimum. Marginal cost is the known as cost of producing every additional unit whereas the average variable cost is the average cost of producing every unit.
Hence, the marginal cost of the increasing unit is option c $45.
Know more about Marginal Cost:
https://brainly.com/question/7781429
#SPJ4
which statement describes a drawback of investing in bonds
Answers
The principal (face value) of the bonds must be paid at maturity, and periodic interest payments must be made. These are the two main drawbacks of using bonds.
What do you mean by the Bonds?An IOU-like debt security called a bond. Bonds are issued by borrowers to attract capital from investors ready to extend a loan to them for a specific period of time.
When you purchase a bond, you are making a loan to the issuer, which could be a corporate, government, or municipality.
Corporate bonds, municipal bonds, government bonds, and agency bonds are the four different types of bonds that can be categorized.
The relationship between the Bond prices and the Coupon Rate is inverse. When the rate of interest rises, bond prices fall, and when the rate of interest falls, bond prices rise.
Therefore, the principal (face value) of the bonds must be paid at maturity, and periodic interest payments must be made. These are the two main drawbacks of using bonds.
To know more about the bonds, visit:
https://brainly.com/question/10777799
#SPJ1
With regard to accounting for a merchandising company versus a service company, which of the following is true?
a. The operating cycle of a merchandising company is longer than that of a service company.
b. Retailers and wholesalers can be either service companies or merchandising companies.
c. Additional accounts and entries are typically required for a service company.
d. Because inventory is an asset, it is recognized on the balance sheet by both service and merchandising companies.
Answers
The true statement is b. Retailers and wholesalers can be either service companies or merchandising companies.
The accounting for a merchandising company versus a service company is different in several ways. The primary difference is that a merchandising company must account for inventory, while a service company does not.
The operating cycle of a merchandising company is the process of purchasing inventory, selling it, and collecting payment from customers. This cycle is longer than the operating cycle of a service company, which does not need to account for inventory purchases.
Additionally, service companies typically require additional accounts and entries for their services, such as for labor, materials, and overhead costs.
Merchandising companies do not need to account for these types of expenses as they only need to account for the cost of inventory purchased.Both service and merchandising companies recognize inventory as an asset on their balance sheet.
However, the method used to calculate the value of the inventory can differ between the two types of companies. Service companies use the cost method to calculate the value of inventory while merchandising companies use the retail inventory method or the lower of cost or market method.
For more questions like Operating cycle click the link below:
https://brainly.com/question/13305417
#SPJ4
annabelle works at acme cleaning company. when she retires, her employer's health insurance plan and medicare should cover all of her medical expenses.
Answers
It is true when Annabelle retires, her employer's health insurance plan and the Medicare should cover all of her medical expenses.
What is an insurance?A party promises to compensate another party in exchange for a fee in the case of a certain loss, damage, or injury as a way of financial loss protection. An insurer, insurance business, insurance carrier, or underwriter is corporation that offers insurance. A person or company that purchases insurance is referred to as policyholder, while someone or anything that is protected by policy is referred to as an insured. In exchange for the insurer's pledge to reimburse the insured in the case of a covered loss, the policyholder accepts a guaranteed, known, and relatively minor loss in the form of a payment to the insurer.
To learn more about insurance, visit:
https://brainly.com/question/24034584
#SPJ4
harry is married and file joint tax return on which he uses the standard deduction if he make $1000charitable contribution in 2022 how much of contributionis deductible
Answers
Harry is married and file joint tax return on which he uses the standard deduction if he make $1000 charitable contribution in 2022. So, Deductible contribution is $2000.
What do you mean by Contribution?The amount of earnings left over after all direct expenses have been deducted from revenue is known as the contribution. This balance is the sum that can be used to cover any fixed expenses a company may have within a reporting period.
Contributions of money or commodities to a tax-exempt entity, like a charity, are considered tax-deductible donations. Donations that are tax deductible may lower taxable income. You must itemize your deductions on Schedule A of IRS Forms 1040 or 1040-SR in order to deduct donations from your taxes.
The standard deduction for single filers in 2022 is $12,950, while for married couples filing jointly, it is $25,900. Additionally, you won't be able to deduct charitable contributions on an itemized basis in 2022 if you choose the standard deduction.
Therefore, Deductible contribution is $2000 for Harry.
Learn more about Contribution, here;
https://brainly.com/question/14388157
#SPJ1
What is the term used to describe a person who feels isolated from his or her own culture or is prevented from participating in society?
a. Assimilation
b. Acculturation
c. Alienation
d. Anti-socialization
Answers
a person who feels isolated from his or her own culture or is prevented from participating in society is know as Alienation.
What is psychological alienation?Alienation happens when a person withdraws or isolates themselves from their surroundings or other people. People who exhibit signs of estrangement frequently reject their loved ones or society. They could also exhibit sentiments of separation and estrangement, possibly even from their own emotions. a lack of awareness of one's own ideas, emotions, or identity as well as a sense of detachment from these things. self-alienation emotions. In social sciences, alienation is the state of feeling cut off or distant from one's surroundings, one's work, one's work products, or oneself.
To know more about alienation visit:
https://brainly.com/question/3054567
#SPJ4
On July 1, 2021, Tony and Suzie organize their new company as a corporation, Great Adventures Inc. The articles of incorporation state that the corporation will sell 39,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership. Tony and Suzie will act as co-presidents of the company. The following transactions occur from July 1 through December 31.
Jul. 1 Sell $19,500 of common stock to Suzie.
Jul. 1 Sell $19,500 of common stock to Tony.
Jul. 1 Purchase a one-year insurance policy for $4,320 ($360 per month) to cover injuries to participants during outdoor clinics.
Jul. 2 Pay legal fees of $1,300 associated with incorporation.
Jul. 4 Purchase office supplies of $1,400 on account.
Jul. 7 Pay for advertising of $280 to a local newspaper for an upcoming mountain biking clinic to be held on July 15. Attendees will be charged $50 on the day of the clinic.
Jul. 8 Purchase 10 mountain bikes, paying $17,200 cash.
Jul. 15 On the day of the clinic, Great Adventures receives cash of $2,500 from 50 bikers. Tony conducts the mountain biking clinic.
Jul. 22 Because of the success of the first mountain biking clinic, Tony holds another mountain biking clinic and the company receives $2,950.
Jul. 24 Pay $720 to a local radio station for advertising to appear immediately. A kayaking clinic will be held on August 10, and attendees can pay $130 in advance or $180 on the day of the clinic.
Jul. 30 Great Adventures receives cash of $7,800 in advance from 60 kayakers for the upcoming kayak clinic.
Aug. 1 Great Adventures obtains a $46,000 low-interest loan for the company from the city council, which has recently passed an initiative encouraging business development related to outdoor activities. The loan is due in three years, and 6% annual interest is due each year on July 31.
Aug. 4 The company purchases 14 kayaks, paying $13,200 cash.
Aug. 10 Twenty additional kayakers pay $3,600 ($180 each), in addition to the $7,800 that was paid in advance on July 30, on the day of the clinic. Tony conducts the first kayak clinic.
Aug. 17 Tony conducts a second kayak clinic, and the company receives $129,600 cash.
Aug. 24 Office supplies of $1,400 purchased on July 4 are paid in full.
Sep. 1 To provide better storage of mountain bikes and kayaks when not in use, the company rents a storage shed for one year, paying $4,680 ($390 per month) in advance.
Sep. 21 Tony conducts a rock-climbing clinic. The company receives $14,400 cash.
Oct. 17 Tony conducts an orienteering clinic. Participants practice how to understand a topographical map, read an altimeter, use a compass, and orient through heavily wooded areas. The company receives $18,200 cash.
Dec. 1 Tony decides to hold the company’s first adventure race on December 15. Four-person teams will race from checkpoint to checkpoint using a combination of mountain biking, kayaking, orienteering, trail running, and rock-climbing skills. The first team in each category to complete all checkpoints in order wins. The entry fee for each team is $520.
Dec. 5 To help organize and promote the race, Tony hires his college roommate, Victor. Victor will be paid $60 in salary for each team that competes in the race. His salary will be paid after the race.
Dec. 8 The company pays $1,000 to purchase a permit from a state park where the race will be held. The amount is recorded as a miscellaneous expense.
Dec. 12 The company purchases racing supplies for $2,100 on account due in 30 days. Supplies include trophies for the top-finishing teams in each category, promotional shirts, snack foods and drinks for participants, and field markers to prepare the racecourse.
Dec. 15 The company receives $20,800 cash from a total of forty teams, and the race is held.
Dec. 16 The company pays Victor’s salary of $2,400.
Dec. 31 The company pays a dividend of $4,600 ($2,300 to Tony and $2,300 to Suzie).
Dec. 31 Using his personal money, Tony purchases a diamond ring for $3,600. Tony surprises Suzie by proposing that they get married. Suzie accepts and they get married!
The following information relates to year-end adjusting entries as of December 31, 2021.
Depreciation of the mountain bikes purchased on July 8 and kayaks purchased on August 4 totals $6,080.
Six months’ of the one-year insurance policy purchased on July 1 has expired.
Four months of the one-year rental agreement purchased on September 1 has expired.
Of the $1,400 of office supplies purchased on July 4, $220 remains.
Interest expense on the $46,000 loan obtained from the city council on August 1 should be recorded.
Of the $2,100 of racing supplies purchased on December 12, $290 remains.
Suzie calculates that the company owes $13,800 in income taxes.
I have to make a general journal, Income statement, statement of SE, and balance sheet with this info. Any help?
Answers
The articles of incorporation state that the corporation will sell 39,000 shares of common stock for $1 each. Each share of stock represents a unit of ownership.
July 1
dr.Cash on (20800 *7)
$185,000\sCR Common Shares
(To record common stock issued)
Organisational costs for
July 1
($1,000*7) $7,000\sCR 7% of Common Stock
$2800\s(To record Common Stock Issue) (To record Common Stock Issue)
Aug 7
DR $290
DR for land, $460,000
DR for a building, and $13800
CR for equipment $560,000 in Common Stock
CR. Common stock was paid in capital in excess of par value for $160,000. (To record Exchange of common stock for PPE).
DR Building $400,000
DR Equipment $70,000
CR Common Stock $560,000
CR Paid in capital excess of par value - Common
stock $160,000
(To record Exchange of common stock for PPE)
Dec 31
DR Cash (25,000 * 44) $25000
CR Preferred Stock (25,000*40) $1,000,000
Paid in Excess Capital of Par Value Preferred
Shares $100,000
(To record issue of Preference Shares).
To know more about Common stock visit:
https://brainly.com/question/16012943
#SPJ4
In your internship with Lewis, Lee, & Taylor Inc. you have been asked to forecast the firm's additional funds needed (AFN) for next year. The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year?
Last year's sales = S0 $200,000 Last year's accounts payable $50,000
Sales growth rate = g 40% Last year's notes payable $15,000
Last year's total assets = A0* $120,000 Last year's accruals $120,000
Last year's profit margin = PM 20.0% Target payout ratio 25.0%
Answers
Based on the AFN equation, the Additional Funds Needed for the coming year are $-38,000.
What is the AFN equation?The AFN equation is equal to the projected increase in assets – spontaneous increase in liabilities – any increase in retained earnings.
A negative value shows that there are no external funds required for the project. Instead, the project will generate excess income for external investment.
On the other hand, a positive AFN indicates the additional funding required to execute the project.
Total liabilities = $185,000 ($50,000 + $15,000 + $120,000)
Increase in assets = $48,000 ($120,000 x 1.4 -$120,000)
Increase in liabilities = $74,000 ($185,000 x 1.4 - $185,000)
Last year's retained earnings = $30,000 ($40,000 - $10,000)
Projected retained earnings = $42,000 ($56,000 - $14,000)
Increase in retained earnings = $12,000 ($42,000 - $30,000)
Last year's sales = S0 $200,000
Sales for the projected year = $280,000 ($200,000 x 1.4)
Sales growth rate = g 40%
Last year's total assets = A0* $120,000
Total assets for the projected year = $168,000 ($120,000 x 1.4)
Increase in assets = $48,000 ($168,000 - $120,000)
Last year's accounts payable = $50,000
Last year's notes payable $15,000
Last year's accruals = $120,000
Total liabilities = $185,000
Total liabilities for the projected year = $259,000 ($185,000 x 1.4)
Increase in liabilities = $74,000 ($259,000 - $185,000)
Last year's profit margin = PM 20.0%
Profit for last year = $40,000 ($200,000 x 20%)
Profit for the projected year = $56,000 ($280,000 x 20%)
Target payout ratio 25.0%
Dividends = $10,000 ($40,000 x 25%)
Dividends for the projected year = $14,000 ($56,000 x 25%)
Retained earnings last year = $30,000 ($40,000 - $10,000)
Retained earnings for the projected year = $42,000 ($56,000 - $14,000)
Increase in retained earnings = $12,000 ($42,000 - $30,000)
AFN = $48,000 - $74,000 - $12,000
= -$38,000
Learn more about Additional Funds Needed at https://brainly.com/question/14177687
#SPJ1
While searching for the best interest rate on a certificate of deposit (CD), Chet noted that two online banks had better rates than traditional banks that had physical presence in his town. A logical reason why these banks were offering higher interest for depositors is Multiple Choice the traditional banks have more customers, which translates into more expenses per customer. the traditional banks are not making as many home loans as they did in the past, which decreases their profits. online banking may pay higher interest rates according to federal banking rules. online banks do not have the overhead and labor costs that traditional banks must cover. With expenses at a minimum, they can pass along that savings to depositors.
Answers
Online banks do not have the overhead and labor costs that traditional banks must cover. With expenses at a minimum, they can pass along that savings to depositors. So, option (d) can be considered as suitable.
Give a brief account on Online banking.Online banking, sometimes referred to as internet banking, online banking, or home banking, is a type of electronic payment system that enables bank or other financial institution customers to conduct a range of financial transactions online at the banking institution. The online banking system will often connect to or be a component of the main banking system run by a bank to give consumers access to financial services supplementary to or in place of conventional branch banking. By reducing reliance on a branch network, online banking significantly lowers the operating costs of the banks and provides greater convenience to some customers by the convenience of being able to make financial transactions even when bank branches are closed, as opposed to the necessity of visiting a branch location.
To know more about, online banks, visit :
https://brainly.com/question/12980617
#SPJ4
Marketing organizations should choose their rivals carefully because the competitors that marketing strategists choose to hate and compete against the hardest can make them __________.
O known O valuable O great O idols O identifiable
Answers
The competitors that marketing strategists select to despise and compete against the most can make them valuable, thus marketing firms should choose their adversaries carefully.
Marketing competition can affect many different aspects of a company or its products and services. For instance, competitiveness can spur managers to increase organisational output or effort, but it can also increase the likelihood of unethical behaviour. A multitude of internal and external factors might influence a company's marketability. Competitive rivalry is an external force that has a number of, both positive and bad, effects on organisations in that particular field. It's helpful to comprehend how fierce rivalry affects your ability to run a successful organisation.
Learn more about marketing here:
https://brainly.com/question/5554849
#SPJ4
What needs to be done prior to scheduling the project approval meeting?
Answers
Answer: The planning should be perfect.
Explanation: Make a solid project strategy, design a resource plan, specify goals and performance metrics, inform team members of their roles and duties, expand the workforce, foresee hazards, and develop backup plans. Before the project approval meeting, these things need to be planned. By doing all of this in a perfect way and manner, the likelihood that the project will be approved will increase. Everything pertaining to the project needs to be planned beforehand; talk through all the issues with the team; discuss the budget; and talk through every aspect of the project.
Ahmad is considering making a $10,000 investment in a venture which its promoter promises will generate immediate tax benefits for him. Ahmad, who normally itemizes his deductions, is in the 28% marginal tax bracket. If the investment is of a type where the taxpayer may claim either a tax credit of 25% of the amount of the expenditure or an itemized deduction for the amount of the investment, what treatment normally would be most beneficial to Ahmad and by how much will Ahmad's tax liability decline because of the investment? a. $0, take neither the itemized deduction nor the tax credit. b. $2,500, take the tax credit. c. $2,800, take the itemized deduction. d. Both options produce the same benefit. e. None of the above.
Answers
C. Ahmad's tax liability will decline by $2,800, take the itemized deduction is the treatment normally would be most beneficial to Ahmad
In general, you owe taxes when you earn money or make gains off of the sale of an investment or other item. If you don't have enough income to qualify for tax filing, you might not owe any income taxes. The amount that a person, company, or other entity owes to a federal, state, or local tax authority is known as their tax liability.
Tax liability is the sum of money you owe to the government in the form of taxes. It represents the entire amount of tax you owe the government. Your income from services or businesses, interest income from different investment vehicles, stock capital gains, and income from other sources like winning the lottery or a horse race are all subject to taxes.
To learn more about tax liability refer here:
https://brainly.com/question/28192343
#SPJ4
analysis of an income statement, balance sheet, and additional information from the accounting records of gadgets, incorporated, reveals the following items.
Answers
The activities of the cash flow statement verify the various operational activities that judge the accounting records of the firm. The growth and the survival of the firm emphasize financial stability.
How does cash flow work?The amount of money a business brought in or spent overall over a period of time is measured by its cash flow. On the statement of cash flows, a common financial statement, the cash flow is commonly divided into cash flow from operating operations, cash flow from investing activities, and cash flow from financing activities.
What kind of cash flow would this be?The expenses made as part of daily operations are included in cash flow from operations. These cash outflows include things like rent, utilities, payroll, and cost of goods sold. When a corporation operates heavily on the seasonal cycle, cash outflows might vary greatly.
To know more about Cash flow visit:
brainly.com/question/16163871
#SPJ4