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2 years ago

The following events occur for The Underwood Corporation during 2021 and 2022, its first two years of operations.

Business

1 answer:

trasher [3.6K]2 years ago

5 0

Answer:

Journal Entries are given below

Explanation:

June 12, 2021

Provide services to customers on account of $41,000.

DEBIT CREDIT

Receivable account $41,000

Services Revenue $41,000

September 17, 2021

Receive $25,000 from customers on account.

DEBIT CREDIT

Cash $25,000

Receivable $25,000

December 31, 2021

Estimate that 45% of accounts receivable at the end of the year will not be received.

DEBIT CREDIT

Bad debt($16,000x45%) $7,200

Allowance for doubtful debt $7,200

March 4, 2022

Provide services to customers on account for $56,000

DEBIT CREDIT

Receivable account $56,000

Services Revenue $56,000

May 20, 2022

Receive $10,000 from customers for services provided in 2021.

DEBIT CREDIT

Cash $10,000

Receivable $10,000

July 2, 2022

Write of the remaining amounts owed from services provided in 2021.

Working: $41,000 - $25,000 - $10,000 = $6,000

DEBIT CREDIT

Allowance for doubtful debt $6,000

Account Receivable $6,000

October 19, 2022

Receive $ 45,000 from customers for services provided in 2022.

DEBIT CREDIT

Cash $45,000

Receivable $45,000

December 31, 2022

Estimate that 45% of accounts receivable at the end of the year will not be received.

DEBIT CREDIT

Bad debt (w) $3,750

Allowance for bad debt $3,750

Working:

($56,000 - $45,000) x45% = $4,950

Balance in Allowance account at 31 dec 2021 = 7,200

Bad debt written off = 6,000

Remaining balance = 1,200

Allowance for doubtful debt at 31 dec 2022 = $4,950 - $1,200

Allowance for doubtful debt at 31 dec 2022 = $3,750

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A private not-for-profit entity is working to create a cure for a disease. The charity starts the year with one asset, cash of $

BARSIC [14]

Answer and Explanation:

Net assets:

Donor without restrictions $488400

Donor with restrictions. $320100

Liabilities:

Notes payable. $250000

Salaries payable. $5000

Deferred revenue $27500

Donated amount in separate entity $10000.

$1101000

Assets:

Cash $738000

Equipment $280000

Receivables $83000

$1101000

Notes:

1. Cash.

Beginning cash $700,000

contributions $210,000

less salaries $80,000

less equipment purchase $50,000

Membership dues $30,000

Add contribution $10,000

Add investment income $13,000

less advertisement pay $2,000

less pay for supplies $93,000

2.Pledges receivable:

$78,000 plus the $5,000 in interest for period

3. Equipment. acquired equipment at $300,000 during the year.

4. Accumulated Depreciation: depreciation amounted to $20,000 for the equipment purchased till date.

5. Deferred Revenue: deferred revenue amounts to 27500 in membership dues since they've only earned 1/12 of the $30000 in exchange transactions.

6. Notes Payable: amount accrued for equipment

7. Salaries Payable: salaries owed employees as at end of the year

9. Donated Amount in Separate Entity. The organization does not hold variance powers for the amount contributed by a donor and so it's a liability

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2 years ago

Marion Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock

statuscvo [17]

Answer:

$40,000

Explanation:

Holders of preferred stocks are given preference in terms of dividend distribution. However, the amount of dividend that they will share in the $65,000 dividends declared by the board of directors is only limited to 5% of the total par value (5,000 shares x $100 = $500,000) of preferred stocks, which in this case is only $25,000 ($500,000 x 5%). After deducting the dividends for preferred stocks, the remaining dividends of $40,000 ($65,000 - $25,000) will be distributed to holders of common stocks.

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2 years ago

Excerpts from hulkster company's december 31, 2018 and 2017, financial statements are presented below: 2018 2017 accounts receiv

Rudik [331]

<u>Calculation of Hulkster's 2018 return on shareholders' equity:</u>

Return on shareholders' equity can be calculated with the help of following formula:

Return on shareholders' equity= Net Income / Average shareholders' equity

Following information is available:

Net Income for the year 2018 =$41,500

Shareholders' equity 2018 = $252,000

Shareholders' equity 2017 = $231,000

Average shareholders' equity = (252000+231000) /2 = $241,500

Return on shareholders' equity for 2018 = 41500/241500 = 0.1718 =17.18%

Hence, Hulkster's 2018 return on shareholders' equity is <u>17.18%</u>

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2 years ago

The overall goal of monitoring, audits, and inspection activities is to:

Harrizon [31]

Answer;

Ensure the protection of human research subjects and data integrity.

The overall goal of monitoring, audits and inspection activities is to ensure the protection of human research subjects and data integrity.

Explanation;

-Monitoring is the act of overseeing the progress of a clinical trial, and of ensuring that it is conducted, recorded, and reported in accordance with the protocol, SOPs, GCP and applicable regulatory compliance.

-Inspection is a review conducted by a regulatory authority to assure human subject protections and regulatory complication and to verify the data.

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2 years ago

Wendy, the CEO of an oil drilling company, and her top management team recently discovered that their facilities are damaging a

wel

Answer: Bagley's ethical leader's decision tree

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In the given case, Wendy wants to determine whether they should close the facility temprarily or permanently. They are uncertain which action would be legal and correct.

Hence from the above we can conclude that they are using Bagley decision tree.

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2 years ago