All categories

3 years ago

The revenues and expenses of Paradise Travel Service for the year ended May 31, 20Y6, follow:

Business

1 answer:

Hitman42 [59]3 years ago

3 0

Answer:

Common Stock 100,000

Retained Earnings 425,000

Total 525,000

Explanation:

Paradise Travel Service Statement of Net Income

Fees Earned : 900,000

Less Office Expense : (300,000)

Less Miscelleaneous Expenses :( 15,000)

Less Wages expense (450,000)

Net Earnings 135,000

Paradise Travel Service statement of stockholders’ equity for the year ended May 31, 20Y6

Common stock Retained Earning Total

Balance Jan 1 60,000 300,000 360,000

Additional Invested capital

40,000 - 40,000

Net Income :

- $135,000 $135,000

Less Dividends paid

- ($10,000) ($10,000)

Balance, May 31 20y6

100000 425000 525000

Common Stock 100,000

Retained Earnings 425,000

Total 525,000

You might be interested in

If net exports is a negative number for a particular year, then

denpristay [2]

The value of foreign goods purchased exceeded the value of goods sold to foreigners during the current year.

4 0

3 years ago

An investor places $5,000 in an account. The stated annual interest rate is 6% compounded monthly. The value of the account at t

Nostrana [21]

Answer:

$5,983.40

Explanation:

Data provided in the question:

Principle amount = $5,000

Interest rate, r = 6% = 0.06

Time, t = 3 years

Compounded monthly i.e number of periods n = 12

Now,

Final amount = Principle × $\left( 1 + \frac{r}{n} \right)^{\Large{n\times t}}$

Final amount = $5,000 × $\left( 1 + \frac{0.06}{12} \right)^{\Large{12\times3}}$

Final amount = $5,000 × 1.005³⁶

Final amount = $5,000 × 1.196

Final amount = $5,983.40

7 0

3 years ago

Ervin Company uses the allowance method to account for uncollectible accounts receivable. Bad debt expense is established as a p

bixtya [17]

Answer:

$90,000

Explanation:

Given data

Net credit sales = $6,000,000

The estimated bad debt percentage is 1.50%

Credit balance in allowance for uncollectible accounts = $42,000

Adjusted balance = $40,000

The computation of the bad debt expense is shown below:

= Net credit sales × estimated bad debt percentage

= $6,000,000 × 1.50%

= $90,000

By multiplying the net credit sales with the estimated bad debt percentage we get the bad debt expense and the same is applied in the above calculation

6 0

3 years ago

18d-8d+16 simplify with distributive property

Anika [276]

Answer:2(5d+8)

Explanation:

We need to combine like terms in this expression by adding up all numerical coefficients and copying the literal part, if any.

No numerical coefficient implies value of 1.

There is only one group of like terms:

5 0

4 years ago

Summit Products, Inc. is interested in producing and selling an improved widget. Market research indicates that customers would

alukav5142 [94]

Answer: Profit is $50,000 less.

Explanation:

The target cost as a result of the Competition is;

Summit requires 25% profit from the sales price of $80

= 80 * 25%

= $20

Target cost is;

= 80 - 20

= $60

If there was no competition, the target cost would be $65 and the sales price would be $90. They would also sell 50,000 units.

With competition, the target cost is $60, price is $80 and sales will be 60,000 units.

At a price of $90 and target cost of $65, profit = 90 - 65 = $25

At a price of $80 and target cost of $60, profit = 80 - 60 = $20

The difference = (20 * 60,000) - (25 * 50,000)

= -$50,000

Profit is $50,000 less.

4 0

3 years ago