Adjusting entries are made before preparing ____

M2-28. Computing and Comparing Income and Cash Flow MeasuresPenno Corporation recorded service revenues of $200,000 in 2020, of

Zina [86]

Answer:

Explanation:

M2-28. Computing and Comparing Income and Cash Flow MeasuresPenno Corporation recorded service revenues of $200,000 in 2020, of which $170,000 were on credit and $30,000 were for cash. Moreover, of the $170,000 credit sales for 2020, Penno collected $20,000 cash on those receivables before year‑end 2020. The company also paid $25,000 cash for 2020 wages. Its employees also earned another $15,000 in wages for 2020, which were not yet paid at year‑end 2020. (a) Compute the company’s net income for 2020; and (b) how much net cash inflow or outflow did the company generate in 2020? Explain why Penno’s net income and net cash flow differ.

7 0

2 years ago

Jerilu Markets has a beta of 1.09. The risk-free rate of return is 2.75 percent and the market rate of return is 9.80 percent. W

vodka [1.7K]

Answer:

7.68 percent

Explanation:

Calculation to determine the risk premium on this stock

Stock risk premium = 1.09 (0.098 - 0.0275)

Stock risk premium = 1.09(0.0705)

Stock risk premium= 7.68 percent

Therefore the risk premium on this stock is 7.68 percent

5 0

2 years ago

The Polaris Company uses a job-order costing system. The following data relate to October, the first month of the company’s fisc

adelina 88 [10]

Answer:

tru

Explanation:

4 0

2 years ago

Assume that Jordan Enterprises's radio broadcast license is renewable at the end of each 10-year term and management has provi

yan [13]

Answer:

Jordan Enterprises

1) The impairment loss = $110,000.

2) Journal Entry to record the impairment loss:

Debit Broadcast License Impairment Loss $110,000

Credit Accumulated Impairment Loss $110,000

Explanation:

a) Data and Calculations:

Broadcast license original cost (book value) = $786,000

Market value of similar broadcast license = 676,000

Impairment loss = $110,000

b) US GAAP defines impairment loss as the decrease in an asset's net carrying value. This means that impairment loss arises when the book or net carrying value is greater than the future estimated cash flows or the market value of the asset.

8 0

2 years ago

Majestic Corporation manufactures wheel barrows and uses budgeted machine hours to allocate variable manufacturing overhead. The

andre [41]

Answer:

$409185

Explanation:

Given: Budgeted output units: 28,475 units

Budgeted machine-hours: 17,085 hours

Budgeted variable manufacturing overhead costs for 28,475 units: $358,785

Actual output units produced: 32,475 units

Actual machine-hours used: 15,000 hours