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Aleks [24]
2 years ago
11

Assume that ABC had a retained earnings balance of $10,000 on April 1, and that the company had the following transactions durin

g April. Issued common stock for cash, $5,000. Provided services to customers on account, $2,000. Provided services to customers in exchange for cash, $900. Purchased equipment and paid cash, $4,300. Paid April rent, $800. Paid employees' salaries for April, $700. What was ABC's retained earnings balance at the end of April
Business
1 answer:
Lostsunrise [7]2 years ago
8 0

Answer:

ABC's retained earnings balance at the end of April is $11,400

Explanation:

The addition to retained earnings in the current month is revenue derived from providing services to customers minus the expenses such as rent and employee salaries

Net income for the month=$2,000+$900-$800-$700=$1400

Retained earnings at month end=opening retained earnings+net income

Retained earnings at month end=$10,000+$1,400=$11,400

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Macinski Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $70,000 and fair value of $95,00
Montano1993 [528]

The nature of the lease arrangement is that of a finance lease. the following journal entries will be passed in the books of accounts:

<u>Explanation:</u>

a. This is because Sharrer Corporation (the lesse) will assume the risks of normal ownership. Maintenance is also not provided by the lessor.

Mike Macinski should, thus, use direct financing lease method. Lease receivable will be $95,000 and interest will be recognized annually.

b. Present value interest factor of annuity for 9% and 3 years = 2.531 (from PVIFA tables)

Annual payment will be = 95,000 by 2.531 = $37,534.57

Interest will be calculated on the opening balance of principal, at the rate of 9%. Thus, interest for the 1st year will be = 95,000 into 0.09 = $8550.

Principal paud during the year = total amount paid - interest amount. closing principal amount = opening principal - principal amount paid.

Period  Cash due  Interest  Principal              Balance

0                                                          95,000.00

1  37,534.57  8,550.00  28,984.57         66,015.43

2  37,534.57  5,941.39           31,593.18           34,422.25

3  37,534.57  3,112.33          34,422.25            0.00

c. <u>Entry for the signing of the lease agreement: </u>

Fixed assets account (Dr) 95,000

Lease Payable account (Cr) 95,000

Entry on 31st December 2014:

Lease payable account (Dr) 28984.57

Interest account (Dr) 8550

Cash (Cr) 37534.57

<u> Entry on 31st december 2015</u>:

Lease payable account (Dr) 31593.18

Interest account (Dr) 5941.39

Cash (Cr) 37534.57

<u> Entry on 31st december 2016: </u>

Lease payable account (Dr) 34422.25

Interest account (Dr) 3112.33

Cash (Cr) 37534.57

5 0
2 years ago
The efforts of employees who work directly to convert direct materials into the finished product are referred to as ______
Alex_Xolod [135]

Answer:

Direct labor

Explanation:

The role of direct labor is to convert direct material into the finished products. Without the help of direct labor, it is impossible to convert the direct material into the finished goods.

Here, the direct material means the labor which works on manufacturing a product which is directly related to the production level. The allocation of direct labor is done based on the number of hours worked or product.

Hence, The efforts of employees who work directly to convert direct materials into the finished product are referred to as direct labor

7 0
2 years ago
The demand for air travel between two cities doubles. the elasticity of the supply of air travel between these cities will​ ____
Vilka [71]
The demand for air travel between two cities doubles. The elasticity of the supply of air travel between these cities will <span>become more​ elastic, the longer the time since demand doubled</span>. Elasticity is the responsiveness between supply or demand when nothing changes but the price. In this situation, the demand for air travel between two citifies doubled, so, the traveling is elastic because even though the demand rose, so did the price, but the demand didn't start to drop. 
5 0
2 years ago
Yellco Inc., a toy manufacturer, provided the following information: Domestic unit sales price $50 Unit manufacturing costs: Var
aleksley [76]

Answer:

$540,000

Explanation:

Calculation for The company's differential revenue from the acceptance of the offer

Using this formula

Differential revenue = Number of units of export order * Offer price per unit

Let plug in the formula

Differential revenue=9,000*$60

Differential revenue= $540,000

Therefore the company's differential revenue from the acceptance of the offer is $540,000

4 0
1 year ago
Which sentences describe points that Miguel should consider in the goal-setting process before he starts to invest?
ki77a [65]

Answer:

First, Miguel arrives at an estimate of the total returns that he wants from his investments.

Explanation:

Plato :)

4 0
1 year ago
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