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1 year ago

The adjusted trial balance for China Tea Company at December 31, 2021, is presented below:

Business

1 answer:

olchik [2.2K]1 year ago

8 0

Answer:

Kindly check attached picture

Explanation:

Given the details below

Accounts Debit Credit

Cash $16,000

Accounts receivable 162,000

Prepaid rent 10,000

Supplies 31,000

Equipment 370,000

Accumulated depreciation $129,000

Accounts payable 11,000

Salaries payable 3,500

Interest payable 1,900

Notes payable (due in two years) 37,000

Common stock 210,000

Retained earnings 176,100

Dividends 27,000

Service revenue 360,000

Salaries expense 150,000

Advertising expense 75,000

Rent expense 18,000

Depreciation expense 32,000

Interest expense 2,500

Utilities expense 35,000

Totals $928,500 $928,500

Prepare an income statement for China Tea Company for the year ended December 31, 2021

Kindly check attached picture

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Byron Books Inc. recently reported $13 million of net income. Its EBIT was $20.8 million, and its tax rate was 35%. What was its

grigory [225]

Answer:

Interest expense = $800,000

Explanation:

Given:

Net income = $13,000,000

EBIT = $20,800,000

Tax rate = 35% = 0.35

Find:

Interest expense

Computation:

Net income= (EBIT - Interest expense) × ( 1-tax rate)

$13,000,000 = [$20,800,000 - Interest expense][1-0.35]

20,000,000 = [$20,800,000 - Interest expense]

Interest expense = $800,000

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1 year ago

Betty's Blossoms Nursery's social media presence has taken the company a step in the right direction toward building relationshi

valentina_108 [34]

Answer:

The answer to this question is option C. customer-management relationship (CMR).

Explanation:

Based on the explanation above, the company is practicing customer management relationship

Hence the answer is C. customer-management relationship (CMR).

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2 years ago

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Wexford Industrial Supply is considering a new project with estimated depreciation of $26,000, fixed costs of $79,000, and total

slava [35]

Answer:

6949 units

Explanation:

Given:

Estimated depreciation of the new project = $26,000

Fixed cost = $79,000

Total sales = $187,000

Estimated variable costs per unit = $11.80

let the break-even production be 'n'

Now,

the break-even point is achieved when there is no profit no loss

thus,

Profit = 0

Also,

Profit = Total sales - Fixed cost - (Total variable cost) - Estimated depreciation

0 = $187,000 - $79,000 - ( $11.80 × n) - $26,000

11.80 × n = 82000

n = 6949.15 ≈ 6949 units

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2 years ago

The budgeted income statement presented below is for Burkett Corporation for the coming fiscal year. Compute the number of units

nlexa [21]

Answer: 47,757 units

Explanation:

To answer this we would need to first find the Contribution Margin. Contribution Margin is the differnce between the sales price and the variable cost per unit.

When the Fixed cost is divided by the Contribution margin, we get the BREAK-EVEN POINT which is where income is zero.

We will then add our required profit to find the Number of units needed.

Calculating the Variable costs we have,

= Direct Material + Direct Labor + Variable Factory overhead+ Variable Marketing Costs

= 235,800 + 241,600 + 151,600 + 51,600

= $680,600

Divide by the number of units to find the Variable cost per unit is,

= 680,609/41,000

= $16.6 per unit.

The Sales per unit will be,

= 984,000/41,000

= $24 per unit.

The Contribution Margin from earlier would therefore be,

= Sales - Variable Cost

= 24 - 16.6

= 7.4

Now we divide the Fixed Costs by that to find the Break-Even Point.

Fixed cost = Fixed factory overhead + Fixed marketing cost

= 111,600 + 108,000

= $219,000

Target sale in unit =Target profit + Fixed cost/Contribution per unit

= 133,800 + 219,000/7.4

= $353,400/7.4

= 47756.7567568

= 47,757

47,757 is the number of units that must be sold in order to achieve a target pretax income of $133,800.

7 0

2 years ago

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Or each of the following accounts, indicate the effect of a debit or credit on the account and the normal balance. Debit Effect

Varvara68 [4.7K]

Answer:

a) bonds payable

normal balance: credit debit decrease credit increase

b) unearned service revenue

normal balance: debit increase credit decrease

c) depreiciation expense

normal balance: debit increase credit decrease

d) common stock

normal balance: credit debit decrease credit increase

e) building

normal balance: debit increase credit decrease

f) rent revenue

normal balance: credit debit decrease credit increase

Explanation:

The reasons are in the acounting equation

assets = laibilities + Equity + revenues - expenses

the left side increase form debit

and the right side from credit

From there, we can conclude each account:

A) B) Are laibilities, obligation to the company an so, follow the rules for liabilities.

C) expenses they decrease equity, so they increase from debit and increase from

D) equity is on the left side

E) assets are the company's possesions. Increase from debit and decrease from credit

F) revenue increase equity so it beheaves like it.

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2 years ago