1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
wolverine [178]
3 years ago
14

Jack Hammer Company completed the following transactions. The annual accounting period ends December 31. Apr. 30 Received $816,0

00 from Commerce Bank after signing a 12-month, 6.00 percent, promissory note. June 6 Purchased merchandise on account at a cost of $93,000. (Assume a perpetual inventory system.) July 15 Paid for the June 6 purchase. Aug. 31 Signed a contract to provide security service to a small apartment complex starting in September, and collected six months’ fees in advance, amounting to $33,000. Dec. 31 Determined salary and wages of $58,000 were earned but not yet paid as of December 31 (ignore payroll taxes). Dec. 31 Adjusted the accounts at year-end, relating to interest. Dec. 31 Adjusted the accounts at year-end, relating to security service. Required: For each listed transaction and related adjusting entry, indicate the accounts, amounts, and effects on the accounting equation. For each item, indicate whether the debt-to-assets ratio is increased or decreased or there is no change. (Assume Jack Hammer’s debt-to-assets ratio is less than 1.0.)
Business
1 answer:
irina [24]3 years ago
4 0

Answer:

Effects on Accounting Equation: Assets = Liabilities + Equity

April 30 - Assets (Cash at bank) are increased and Liabilities (Notes Payable) are increased with $814,000.

June 30 - Assets (Inventory) are increased and Liabilities (Accounts Payable) are increased with $93,000.

July 15 - Assets (Cash) are decreased and Liabilities (Accounts Payable) are decreased with $93,000.

August 31 - Assets (Cash) are increased and Liabilities (Deferred Revenue) are increased by $33,000 for security service received in advance.

Dec 31 - Liabilities (Wages Unpaid) are increased and Equity (Retained Earnings) is decreased by $58,000 for unpaid wages.

Dec 31 - Liabilities (Interests Accrued) are increased and Equity (Retained Earnings) is decreased by $32,640 for accrued interests for 8 months.

Dec 31 - Liabilities (Deferred Revenue) are reduced and Equity (Retained Earnings) is increased by $22,000 for 4/6 months security service revenue received in advance and now adjusted based on the accruals concept.

Explanation:

Effect on Debt-to-Assets Ratio:

a) no change as assets and liabilities are increased by the same amount.

b) no change as assets and liabilities are increased by the same amount.

c) no change as assets and liabilities are decreased by the same amount.

d) no change as assets and liabilities are increased by the same amount.

e) debt-to-asset ratio is increased with unpaid wages.

f) debt-to-asset ratio is increased with accrued interests at 6% of $816,000 x 8/12 = $32,640.  The note was collected on April 30 with 8 months to year-end.

g) debt-to-asset ratio is decreased with the adjustment of security service received for 4 months out of 6 months based on the accruals concept.

You might be interested in
In process cost accounting, the costs of direct materials and direct labor are charged directly to a.service departments b.proce
ycow [4]

Answer:

b.processing departments

Explanation:

The direct cost is the cost that is directly or positively related to the production of the product

It includes direct material cost, direct labor cost.

The direct cost i.e direct material cost and the direct labor cost are directly charged to the processing department because on this department, there are a number of processes through which it can make a finished product  

Moreover, the cost is not identifiable and the production of goods is engaged in the same nature.

4 0
3 years ago
Integrating management theories (Lead)
pantera1 [17]

Answer:

Identifying each Management Strategy with a Management Theory:

Management Strategies:                               Management Strategy

1. You measure sales over time and          4. Contingency Theory

realize that the months of July, August,

and September are particularly slow.

As a result, you ask two of your sales

clerks if they would be willing to work

part-time during those months.                    

2. You make sure that when you hire new  3. Management Science

people, you get input from each of the

existing team members. If they are happy

with the new hire, they are more likely to

make that person part of the team, and

the team will sell more.                                  

3. You notice that when customers have too    2. Humanistic

many choices, they are less likely to make            Management Theory

a decision about what to buy, so you tell all

of your employees to bring out only three

things at one time. In addition, you start to

pay your employees a commission for

every item that they sell.            

4. A customer survey shows that the men who    1. Classical Management

come into the store would prefer to be left alone    Theory

while they shop, but the women who come into

the store want to be asked if they need assistance.

You tell your employees to leave men alone  

and ask women if they want help.

Explanation:

Management Theories:

1. Classical Management Theory concentrates on specialization of labor, centralized leadership and decision-making, and profit maximization.

2. Humanistic Management Theory is a people-based management that seeks profits for human ends and not for the sake of profit as an end in itself.

3. Management Science concentrates on  problem solving and decision making in human organizations.

4. Contingency Theory is a situational management practice without set rules, but depends on the prevailing moment.

8 0
3 years ago
According to efficient market​ theory, which of the following can best predict the stock price of a particular company​ tomorrow
11111nata11111 [884]

Answer:

B. a finance professor who knows a lot of investment theory

Explanation:

The efficient market theory can be regarded as efficient market hypothesis, it is one that stressed that

all information are been reflected by

share prices. It also state that there is possibility of alpha generation.

3 0
3 years ago
I attached a pic of my question, pls help.
kiruha [24]

Farmer raising sheep.

3 0
3 years ago
Read 2 more answers
Wilson's is reviewing a project with an internal rate of return of 13.09 percent and a beta of 1.42. The market risk premium is
BartSMP [9]

Answer:

Yes, The project will  be accepted.

Explanation:

Projects should be accepted when their internal rate of return is greater than the Weighted Average Cost of Capital (WACC). The WACC represents the cost or risk of the company so if the return is greater than the risk, then this will be favorable.

3 0
3 years ago
Other questions:
  • Assume that due to unfavorable conditions in a prime honey-producing area, the price of honey increases by 50 percent. the quant
    11·1 answer
  • Jay Miller insured his pizza shop for $200,000 for fire insurance at an annual rate per $100 of $.49. At the end of 10 months, J
    5·2 answers
  • An import quota
    7·1 answer
  • Quality that measures usefulness vs. price paid is which definition of quality? A. Conformance to specifications B. Fitness for
    14·1 answer
  • Sarah Wiggum would like to make a single investment and have ​$2 million at the time of her retirement in 35 years. She has foun
    14·2 answers
  • Budweiser is a popular brand of beer. Part of this company's market research of U.S. consumers looked at education levels of bee
    6·1 answer
  • Embezzlement, forgery and false swearing are examples of which of the following?
    11·1 answer
  • Noric Cruises Inc. began the month of October with the following balances: Common Stock, $150,000; Additional Paid-In Capital, $
    8·1 answer
  • Tullius Corporation has received a request for a special order of 8,000 units of product C64 for $50.00 each. The normal selling
    10·1 answer
  • Sometimes brand names become synonymous with a product itself. if that happens, the brand.
    9·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!