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Inga [223]
3 years ago
15

Milo Clothing experienced the following events during 2016, its first year of operation: 1. Acquired $12,000 cash from the issue

of common stock. 2. Purchased inventory for $5,600 cash. 3. Sold inventory costing $3,360 for $5,712 cash. 4. Paid $650 for advertising expense. Required a. Record the general journal entries for the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
Business
1 answer:
Serga [27]3 years ago
5 0

Answer:

Explanation:

The four transactions  will be recorded in the general journal as follows:

1) Debit cash                 $12,000

             Credit common stock                       $12,000

(To record the sale of common stock)

2) Debit purchases                 $5,600

            Credit   cash                 $5,600

(To record purchase of inventory in cash)

3) Debit cash                 $5,712

           Credit sales                        $3,360

            Credit gross profit              $2,352

(To record the sale of inventory in cash)

4) Debit advertising expenses                   $650

          Credit cash                     $650

(To record the payment of advertising expenses in cash)

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Duke’s Garage has cash of $68, accounts receivable of $142, accounts payable of $235, and inventory of $318. What is the value o
zhannawk [14.2K]

Answer:

The correct answer is option (D).

Explanation:

According to the scenario, the given data are as follows:

Cash (assets) = $68

Accounts receivables ( assets ) = $142

accounts payable ( liabilities)  = $235

Inventory = $318

So, we can calculate quick ratio by using following formula:

Quick ratio = Assets / Liabilities

= $68 + $ 142 / $235

= $210 / $235

= 0.89

Hence, the value of quick ratio is 0.89.

7 0
3 years ago
Cold Goose Metal Works Inc. just reported earnings after tax (also called net income) of $8,000,000 and a current stock price of
Harrizon [31]

Answer:

$14.49

Explanation:

Present P/E ratio = Current stock price/(Net income/Shares outstanding)

Present P/E ratio = 14.75/($8,000,000/5,500,000 shares)

Present P/E ratio = 10.1406

EPS after 1 year = 8000000*125%/ 7000000

EPS after 1 year = 1.4286

Stock price = EPS after 1 year * Present P/E ratio

Stock price= 1.4286* 10.1406

Stock price = $14.49

8 0
2 years ago
You receive results from the team engagement survey. According to the survey, your team members feel that the feedback they prov
andrew-mc [135]

Answer: Most: Discuss the issue with your team. Ask team members for suggestions on how to better incorporate their

Least: Talk to your peers who received similar feedback and brainstorm together on how to better engage the team.

Explanation:

You probably wish you could get more input from your employees if you're like most managers. Quality feedback will help all of you work together, improve your style of leadership, and make sure you catch problems before they become big issues.

While the members of your team must be the ones to come up with the ideas, there are many things you can do to make it better and more productive to produce them.

Your methodology offers an example.

7 0
2 years ago
For each of the following depreciable assets, determine the missing amount. Abbreviations for depreciation methods are SL for st
makkiz [27]

Answer:

Please check the attached image for the answers

Explanation:

Check the attached image for a clearer image of the table used in answering this question

A.

Cost of asset = c

Useful life = 5

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life)

= 2 × (1/5) = 0.4 = 40%

Because the depreciation factor is 40%, the remaining book value after depreciation would be 60%.

Note that : Book value in year 1 = Cost of asset - Depreciation expense of year 1

Book value in year in subsequent years = previous book value - that year's depreciation expense

The book value in year 2: 0.6c x $51,000

Solve for c = 51,000 / 0.6 = 85,000

So, the book value in year 2 is $85,000

The book value in year 1 which is also the cost of the asset can be found using this equation : (2 / 5 ) x c = $85,000

Solve for c = $85,000 × (5/2) = $212500

The cost of the asset is $212,500

For asset b

Sum of the year Depreciation expense = (number of useful life remaining / sum of useful years) x (Cost of asset - Salvage value)

number of useful life remaining at year 2 = 7

Sum of useful life = 1 + 2 + 3 + 4 + 5 + 6 + 7 + 8 = 36

The equation for year 2 depreciation : (7/36) × ($40,000 - Salvage value) = $7,000

0.194444 × ($40,000 - Salvage value) = $7,000

Make salvage value the subject of the formula and solve

Salvage value = $4,000

For asset c,

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

Inputting the values given for asset C into the above equation: ($103,000 - $13,000) ÷ useful life = $9,000

= $90,000 / useful life = $9,000

Solve for useful life, useful life = 10 years

For asset D,

To find the depreciation method used , we have to employ trial and error method. We would try all the depreciation methods available and determine which depreciation method would give us the depreciation value of $23,900

I would start with the straight line depreciation method Deprecation method.

Straight line depreciation expense = (Cost of asset - Salvage value) / useful life

= ($268,000-$29,000)/10 = $23,900

From the above calculation, the depreciation method used is the straight line depreciation method.

For asset E,

The 150% declining method = Depreciation factor x cost of the asset

Depreciation factor = 1.5 x (1/useful life)

1.5 x (1/8) = 0.1875

To derive the depreciation expense in year 2, the book value at the beginning of year 2 has to be determined. To determine the year 2 book value, the depreciation expense in year one has to be determined.

Year 1 depreciation expense = 0.1875 x $219,000 = $41,062.50

Year 2 , book value = $219,000 - $41,062.50 = $177,937.50

Depreciation expense in year 2 = 0.1875 x $177,937.50 = $33,363.28

I hope my answer helps you

7 0
3 years ago
The project is expected to generate the following net cash flows:
iVinArrow [24]

Answer:

Correct option is A 5.01%

Explanation:

Let irr be x%

At irr,present value of inflows=present value of outflows.

1,500,000=350,000/1.0x+475,000/1.0x^2+400,000/1.0x^3+475000/1.0x^4

Hence x=irr=5.01%(Approx).

8 0
2 years ago
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