Black Ltd commenced trading on 1 September Year 3 and is preparing its accounts for the year ended 31 August Year 4. During its first year of trading the company pays total telephone company invoices of £4,300. The three-month invoice paid in July Year 4 includes calls of £1,200 for the quarter up to 30 June Year 4 and advance rental of £960 for the quarter to 30 September Year 4. The invoice received in October Year 4 includes calls of £840 for the quarter up to 30 September Year 4 and advance rental of £1,200 for the quarter to 31 December Year 4. What is the telephone expense to be recorded in the income statement for the first year of trading?
Q: Wolfpack Construction has the following account balances at the end of the year. Accounts Equipment…
A: BALANCE SHEET Balance sheet is one of the Important Financial Statement of the Company. Balance…
Q: 25 On December 31, 2023, Jen & Mink Clothing (J&M) performed the inventory count and determined the…
A: Ending Inventory: The quantity of inventory that a company must disclose on its balance sheet is…
Q: Splish Brothers Limited is a private company that follows ASPE. It is authorized to issue an…
A: Return on Equity (ROE) is a financial ratio that measures the profitability of a company in relation…
Q: Modified Budgeting (MB) approach was implemented in 1990 through the issuance of Treasury Circular…
A: In the late 20th century, traditional budgeting techniques were found to be lacking in…
Q: In an attempt to reduce business costs, and given the current competitive business environment,…
A: Auditing is the process of examining financial statements, records, and other financial information…
Q: Lew's Auto Repair has cash of $18,600, accounts receivable of $34,500, accounts payable of $28,900,…
A: MARKET VALUE OF FIRM ASSETS Market Value Of Firm Assets is the total Value of Assets Received when…
Q: Required information [The following information applies to the questions displayed below.] t Diego…
A: Variable costing is a managerial accounting cost concept. Under this method, manufacturing overhead…
Q: The following information applies to the questions displayed below.] The Gilster Company, a machine…
A: The overhead is applied to the production on the basis of predetermined overhead rate. The…
Q: Alan is the director of your corporation. He is a resident of Alberta. He does not receive…
A: As of 2022, the federal tax rates for individuals in Canada are as follows: 15% on the first…
Q: A company has a single product. The monthly data concerning the single product follows: Item Amount…
A: Income statement :— It is one of the financial statement that shows profitability, total revenue and…
Q: Required information Problem 7-5A (Algo) Determine depreciation under three methods (LO7-4) [The…
A: The depreciation expense is charged on the fixed assets as the decrease in the value of fixed assets…
Q: A company is considering a project with the following characteristics: Cash outflows: Immediate…
A: The payback period is a financial metric that represents the length of time required for a project…
Q: Ida Company produces a handcrafted musical instrument called a gamelan that is similar to a…
A: Under the absorption costing method, all manufacturing expenses, fixed and variable are treated as…
Q: A friend who recently graduated from university is planning to form a partnership. He is planning to…
A: It's great to hear that your friend is planning to form a partnership with integrity in mind. Here…
Q: 1. 2. 3. 4. 5. At the beginning of 2019, the company purchased a machine for $483,000 (salvage value…
A: Accumulated Depreciation Machinery $24,150.00 Depreciation exp $8,050.00…
Q: A company sells bags. Next month's budget is as follows: Selling Price=$50/bag Variable Expenses…
A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…
Q: Margin of safety a. If Kirwan Company, with a break-even point at $435,200 of sales, has actual…
A: Break Even Point :— It is the point of production where total cost is equal to total revenue. At…
Q: The 2020 balance sheet of Osaka’s Tennis Shop, Incorporated, showed $590,000 in the common stock…
A: Cash flow to stockholders is an important measure of a company's financial health as it shows the…
Q: Break-even sales Currently, the unit selling price of a product is $380, the unit variable cost is…
A: The Break-even point indicates that total units are to be sold by the business entity to recover its…
Q: Server Corporation is a majority-owned subsidiary of Proxy Corporation. Proxy acquired 75 percent…
A: Under the consolidation method, the accounting statement merges together financial entries of the…
Q: c. Selling and administrative expenses consist of the following. Selling and Administrative Expenses…
A: Variable costing or direct costing method is used for internal decision making. It uses the…
Q: 2. Using FIFO, calculate ending inventory and cost of goods sold at March 31. Ending inventory Cost…
A: FIFO means First In First out.
Q: Briefly outline accounting standards IAS 2 and IFRS 15 with examples
A: IAS 2, Inventories, provides guidance on the accounting treatment for inventories (i.e., goods held…
Q: Prepare the company’s classified balance sheet at June 30, 2022
A: Balance sheet shows the position of the business at a reporting date which includes assets,…
Q: (Click the icon to view the production and selling price information.) Required Allocate the…
A: In the NRV (Net realizable value method), the allocation is done using the NRV of every product as…
Q: 1. Compute the company's net sales for the year. 2. Compute the company's total cost of merchandise…
A: The total cost of merchandise purchases is the cost which is the net purchases of the products for…
Q: Please prepare classified balance sheet and statement of owners equity.
A: Balance sheet lists all the assets which is owned by the business, owner's equity band liabilities…
Q: Stanford Journal of law, Business,& Finance explain how environmental, sustainability, and…
A: Sustainability in business refers to the practice of operating a company in a way that minimizes…
Q: Question 2 Tropical Fruit Partnership is a calendar year general partnership with the following…
A: Given, Note payable, BIg bank = $555,000 Note payable, pineapple ( individual ) = $370,000 Coconut…
Q: Contribution margin and contribution margin ratio For a recent year, McDonald’s (MCD) company-owned…
A: Cost volume profit analysis is the technique used by management for decision-making. The methods…
Q: You work in a company that has begun selling annual subscriptions to its new online magazine. During…
A: An accounting error refers to a mistake or oversight made in the recording, classification,…
Q: Required information [The following information applies to the questions displayed below.] Diego…
A: Break-even point in units = Fixed costs ÷ Contribution margin per unit. Your break-even point in…
Q: Brewery Ipana Oy also drafts a plan where all other values remain the same as initially estimated,…
A: Cost volume profit analysis is called CVP ANALYSIS. Contribution margin is sales - variable cost.
Q: The following events occur for Messer Engineering during 2024 and 2025, its first two years of…
A: Accounts receivables are the current assets that represent the amount of receivables from the…
Q: 3. What amount was recognized in OCI in 20X1? Be sure to indicate whether OCI amount represented a…
A: The solution has been provided to the question on which the answer has been wrong which is question…
Q: Lukow Products is investigating the purchase of a piece of automated equipment that will save…
A: Time value of money :— According to this concept, value of money in present day is greater than the…
Q: Required information Hall, Incorporated manufactures two components, Standard and Ultra, that are…
A: Activity rate :— It is the rate used to allocate manufacturing overhead to cost object under…
Q: why would a company find it beneficial to offer different credit terms to customers?
A: Credit terms refer to the agreement between a buyer and a seller regarding the payment of goods or…
Q: Required information [The following information applies to the questions displayed below.] Diego…
A: Absorption costing method :— Under this method, Product cost includes direct material, direct labor,…
Q: What is her medical expense deduction assuming the phase-out for medical expenses is 7.5% of…
A: Given in the question: Adjusted Gross Income = $50,000 Health Insurance company reimbursed = $8,000…
Q: Majid Maingal had the following assets and liabilities on March 2005: Cash Hand Rs. 2.345: Cash at…
A:
Q: Use the following selected accounts and amounts with normal balances from Juan Company's adjustec…
A: The financial statements of the business including balance sheet and income statement are prepared…
Q: Assume Wells Corporation uses the simple equity method for its investments in subsidiaries. For 2015…
A: Straightforward equity approach: In this method, investments made by entities are initially reported…
Q: Gold Star Rice, Limited, of Thailand exports Thai rice throughout Asia. The company grows three…
A: Break- even point is the point at which there is no profit and no profit loss. In other words the…
Q: Complete the table below: Capital Assets Liabilties 100, 000 ? 20, 000 ? 250, 000 150, 000 85, 000…
A: As per dual concept of accounting, every transaction has dual effect on the books of accounts of the…
Q: [The following information applies to the questions displayed below.] Diego Company manufactures one…
A: The absorption costing income differs from the variable costing income due to fixed costs deferred…
Q: Toxaway Company is a merchandiser that segments its business into two divisions-Commercial and…
A: Since you have posted a question with multiple sub-parts, we will do the first three sub-parts for…
Q: Last Chance Mine (LCM) purchased a coal deposit for $1,108,250. It estimated it would extract 17,050…
A: It is given that total tons of coal available with LCM is 17,050. Therefore, in order to get that…
Q: Information concerning Johnston Company's direct materials costs is as follows: Standard price per…
A: The variance is the difference between the actual and standard data of production. The favorable…
Q: Cobb Co. purchased 10,000 shares (2% ownership) of Roe Co. on February 12, year 2. Cobb received a…
A: Dividend is return to shareholders on their investments. Dividend can be in form of cash dividend or…
Step by step
Solved in 3 steps
- Maju Enterprise opened a fixed deposit account with Singa Bank Bhd on 1 March. The initial deposit was RM60,000 at an interest of 5% per annum. The term of the deposit was 1 year, and the interest received to be credited to the company’s current account at the end of every six months. Assume that Maju Enterprise’s financial year ended 31 December each year. Required: Prepare an Interest Received Account for the above transaction. Show the posting to Accrued Interest Received Account / Interest Receivable Account. Prepare journal entries for the above adjustment and posting to Statement of Profit or Loss.Black Ltd commenced trading on 1 September Year 3 and is preparing its accounts for the year ended 31 August Year 4. During its first year of trading the company pays total telephone company invoices of £4,300. The three-month invoice paid in July Year 4 includes calls of £1,200 for the quarter up to 30 June Year 4 and advance rental of £960 for the quarter to 30 September Year 4. The invoice received in October Year 4 includes calls of £840 for the quarter up to 30 September Year 4 and advance rental of £1,200 for the quarter to 31 December Year 4. What is the telephone expense to be recorded in the income statement for the first year of trading? D a) £5,180 b) £4,300 c) £4,860 d) £4,540BC Corp. reported a P500,000 account receivable balance at the beginning of the calendar year. For the year, it reported net credit sales of P4,000,000 and collections from customers of P4,050,000. An analysis of the sales showed that a sale amounting to P40,000 was shipped to the buyer on Dec. 31 under FOB destination term while a sale amounting to P50,000 was shipped to the buyer on Jan. 1 under FOB shipping point term. Included in the collections was an over-payment by a customer in the amount of P13,000. Not included in the initial sales and collections amounts are the following:(A) Sales made to officers made under customary terms, P200,000 of which were collected – P700,000 and(B) Claims against common carrier – P 200,000. How much should ABC report as accounts receivables as of Dec. 31?
- Prefix Supply Company received a 60-day, 4% note for $46,000 dated July 12 from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume a 360-day year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Prefix Supply Company General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 129 Allowance for Doubtful Accounts 132 Notes Receivable 141 Merchandise Inventory 145 Office Supplies 146 Store Supplies 151 Prepaid Insurance 181 Land 191 Store Equipment 192 Accumulated Depreciation-Store Equipment 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 211 Salaries Payable 213 Sales Tax Payable 214 Interest Payable 215 Notes Payable EQUITY…Lundquist Company received a 60-day, 4% note for $46,000, dated July 23, from a customer on account. Required: a. Determine the due date of the note. b. Determine the maturity value of the note. Assume 360 days in a year. c. Journalize the entry to record the receipt of the payment of the note at maturity. Refer to the Chart of Accounts for exact wording of account titles.On October 1, Black Company receives a 6% interest-bearing note from Reese Company to settle a $17,000 account receivable. The note is due in six months. At December 31, Black should record interest revenue of Oa. $252 Оь. 5255 Oc. $262 Od. $265
- On October 1, Black Company receives a 8% interest-bearing note from Reese Company to settle a $18,600 account receivable. The note is due in six months. At December 31, Black should record interest revenue of Oa. $369 Оb. $372 Ос. $382 Od. $379During the quarter ended 31 December 2021, Marnay Ltd made standard rated sales of £136.000 Included within these are sales of E14.000 on which a discount of 5% was offered to the customer if they paid within 30 days of the invoice date. One customer paid their invoice for £5,000 (before the discount) within the 30-day period. The remaining C9,000 of invoices on which a discount was offered were not paid within the 30-day period. All the above figures are exclusive of any VAT due. Miscellaneous expenditure Momay Ltd incurred the following amounts of input VAT on the following miscellaneous expenditure during the quarter ended 31 December 2021: VAT incurred A new filing cabinet £ 280 350 Repairs on the sales director's car, which has 30% private use Entertaining UK suppliers 225 Entertaining overseas suppliers 125 Purchase of machine Momay Ltd ordered a new machine on 20 September 2021 and paid a deposit of £10,000 on 2 November 2021. The machine was dispatched on 23 December 2021 and…On October 1, 2010, the company deposits 12.000 TL in a bank account for 1 year at 10%. Which entry is made on Dec 31 for accrued interest revenue for 3 months (Oct, Nov, and Dec)? a. 300 TL debit to 181-Acc. Rev. and credit to 642-lnt. Rev b. 1.200 TL debit to 642-Int. Rev and credit to 181-Acc. Rev. c. 1.200 TL debit to 181-Acc. Rev. and credit to 642-Int. Rev d. 300 TL debit to 642-Int. Rev and credit to 380-Unear. Rev.
- On December 1 of the current year, Jordan Inc. assigns 125,000 of its accounts receivable to McLaughlin Company for cash. McLaughlin Company charges a 750 service fee, advances 85% of Jordans accounts receivable, and charges an annual interest rate of 9% on any outstanding loan balance. Prepare the related journal entries for Jordan. Refer to RE6-10. On December 31, Jordan Inc. received 50,000 on assigned accounts. Prepare Jordans journal entries to record the cash receipt and the payment to McLaughlin.Jenkins Inc. had the following transactions. Sep 1 Loaned $20,000 to an employee, who signed a 9-month, 9% note. Interest and principal will all be due on May 31. Dec. 31- Accrued interest on the note. (Round to the nearest whole dollar amount.) May 31 Received the interest on the note's maturity date. PE May 31 amount.) Required: Prepare the required journal entries. Use the MSWord link for the table to write your journal entries. After you have written the journal entries on the table in the MSWord document provided, Received the principal on the note's maturity date. (Round to the nearest whole dollarOn October 1, Black Company receives a 8% interest-bearing note from Reese Company to settle a $15,800 account receivable. The note is due in six months. At December 31, Black should record interest revenue of Oa. $323 Ob. $326 Oc. $316 Od. $313