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nirvana33 [79]
3 years ago
13

Exercise 4-8 (part level submission) plevin company ended its fiscal year on july 31, 2017. the company’s adjusted trial balance

as of the end of its fiscal year is shown below. plevin company adjusted trial balance july 31, 2017 no. account titles debit credit 101 cash $10,050 112 accounts receivable 9,500 157 equipment 15,600 158 accumulated depreciation—equip. $7,500 201 accounts payable 4,800 208 unearned rent revenue 1,800 311 common stock 17,450 320 retained earnings 27,000 332 dividends 15,500 400 service revenue 65,000 429 rent revenue 6,000 711 depreciation expense 7,000 726 salaries and wages expense 56,400 732 utilities expense 15,500 $129,550 $129,550 (a) prepare the closing entries. (credit account titles are automatically indented when amount is entered. do not indent manually.)
Business
2 answers:
Lostsunrise [7]3 years ago
6 0

            Service Revenue.................................65000

            Rent Revenue..........................................6000

              To Income Summary.....................................................71000


             Income Summary..........................78900

                  To Depreciation Expense..............................................7000

                  To Salaries Expense.......................................................56400

                   To Utilitites Expense.........................................................15500

Retained Earnings.....................................................................7900

      To Income Summary...............................................................................7900

Mariulka [41]3 years ago
5 0

Answer: The Net loss Position is -$7,900. The distributable retained earnings (post dividend payment and loss recognition) is $3,600 and the Net Asset Position of Plevin Company is $21,050

Explanation:

The response below looks all muddied up, but i have attached an excel file to help you understand how i arrived at the conclusions above.

Plevin Company      

Income Statemenet for the Year Ended July 31, 2017      

     

Revenue:      

Service Revenue   65,000  

Rent Revenue   6,000  

Net Income    71,000  

     

Less Expenses:      

Salaries & Wages    56,400  

Utilities   15,500  

Depreciation   7,000  

Net Expenses    78,900  

     

Net Loss    -7,900  

     

schedule of distributable Profit      

Opening Balance of Retained Earnings    27,000  

Add Net Loss for the year    -7,900  

Less Dividend Payment    15,500  

Closing balance of Retained Earnings    3,600  

Plevin Company    

Balance Sheet as at July 31, 2017    

   

Fixed Assets:    

Equipment    15,600

less Accumulated Depreciation    -7,500

Net Book Value    8,100

   

Current Assets    

Cash   10,050  

Account receivable   9,500  

  19,550  

   

Current Liabilities    

Accounts Payable   4,800  

Unearned rent revenue   1,800  

  6,600  

   

Working Capital (Current Asset less Current Liability)    12,950

   

Net Assets    21,050

   

   

Shareholders Fund:    

Common Stock    17,450

Add Retained Earnings    3,600

Net Shareholders Fund    21,050

Download xlsx
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Let x = the price of the car that Olivia can afford.

Down payment = $2,500
Remaining amount to be financed is P = x - 2500.

Total payments should equal the monthly payments.
The total payment over 4 years (48 months) is
A  = $185*48 = $8,880

The rate is r = 4.9% = 0.049.
The compounding interval is n = 12.
The time is t = 4  years.
The amount financed is P = $(x - 2500).
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(x - 2500)(1 + 0.049/12)⁴⁸ = 8880
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3 years ago
Therrell Corporation has two divisions: Bulb Division and Seed Division. The following report is for the most recent operating p
amm1812

Answer:

a. For Bulb = $183,418.92

b. For Seed = $96,759.49

c. Break even = $336,144.74

Explanation:

Sales = Bulb Division + Seed Division

= $234,000 + $156,000

= $390,000

Variable Expense = Bulb Division + Seed Division

= $60,840 + $32,760

= $93,600

Contribution margin for bulb = Sales - Variable

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Contribution margin for Seed division = Sales - Variable

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= $296,400

Division Income for bulb = contribution margin - Traceable fixed expenses

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Division Income for seed division = contribution margin - Traceable fixed expenses

= $123,240 - $76,440

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Total of Division income = $296,400 - $212,170

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Common Fixed expenses = $25,980 + $17,320

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Income = Total of Division income - Common Fixed expenses

= $84,230 - $43,300

= $40,930

Contribution margin ratio for bulb = Contribution ÷ Sales × 100

= $173,160 ÷ $234,000 × 100

= 74.00%

Contribution margin ratio for seed = Contribution ÷ Sales × 100

= $123,240 ÷ $156,000 × 100

= 79%

Total Contribution margin ratio for bulb and seed  = Contribution ÷ Sales × 100

= ($173,160 + $123,240) ÷ $390,000 × 100

= $296,400 ÷ $390,000 × 100

= 76%

a and b. Division’s break-even in sales dollars = Fixed costs ÷ Contribution margin ratio

For Bulb = $183,418.92

For Seed = $96,759.49

c. company’s overall break - even in sales dollars

= (212170 + 43300) ÷ 76%

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