The financial statements for Myers Service Company include the following items

Nature of Transactions Kristoff Walker operates his own catering service. Summary financial data for February are presented in e

vichka [17]

Answer:

A. Description for :

Transaction 1 - Provided catering service for cash

Transaction 2 - Purchase of land for cash

Transaction 3 - Payment of cash for expenses

Transaction 4 - Purchase of supplies on account

Transaction 5 - Withdrawal of cash by owner

Transaction 6 - Payment of cash to creditors

Transaction 7 - Recognition of cost of supplies used

B. The amount of the net decrease in cash during the month = 13,900

C. The amount of the net increase in owner's equity during the month = 3700

D. The amount of the net income for the month = 5500

E. The net income for the month was retained in the business = 3700

Explanation:

a)

Description for :

Transaction 1 - Provided catering service for cash

Transaction 2 - Purchase of land for cash

Transaction 3 - Payment of cash for expenses

Transaction 4 - Purchase of supplies on account

Transaction 5 - Withdrawal of cash by owner

Transaction 6 - Payment of cash to creditors

Transaction 7 - Recognition of cost of supplies used

b.)

Net decrease = Closing Balance - opening Balance

= 27,600 - 13,700

= 13,900

⇒The amount of the net decrease in cash during the month = 13,900

c.)

Net increase in owner's equity = ( Opening capital balance - Drawing + Income earned during the year - Expenses incurred during the year ) - Opening capital

⇒Net increase = ( 92,700 - 1800 + 32,300 - 26,800 ) - 92,700

= 96,400 - 92,700 = 3700

⇒The amount of the net increase in owner's equity during the month = 3700

d.)

Amount of the net income for the month = Total Income - Expenses

= 32,300 - 26,800

= 5500

⇒Amount of the net income for the month = 5500

e.)

Net income for the month was retained in the business = Net Income - Drawings

⇒Net income was retained in the business = 5500 - 1800

= 3700

⇒Net income for the month was retained in the business = 3700

7 0

3 years ago

Consider the following income statement for the Heir Jordan Corporation: HEIR JORDAN CORPORATION Income Statement Sales $49,000C

Slav-nsk [51]

Answer:

Since the answer requires construction of a proforma income statement, please refer to the explanation section for the answer

Explanation:

The proforma invoice has been provided below. Sales have been increased by 18%. The question states that costs vary with sales therefore, the costs are kept at the same percentage of sales in the proforma. Costs as a percentage of sales in the question come out to 82%. Taxable income is Sales less Costs. Taxes are 22% of taxable income. Dividend payout ration is calculated by dividends paid divided by total income available to shareholders. Total income available to shareholders includes Net Income PLUS non cash charges (depreciation) MINUS Non Cash Sales. With the information given in the question, it is assumed that non cash charges and non cash sales are zero so the only income available to shareholders is the net income. Dividend payout in the question comes out to 35%.

Sales 57,820.00

Costs 47,554.00

Taxable Income 10,266.00

Taxes 2,258.52

Net Income 8,007.48

Dividend = Dividend payout ratio x Net Income: 0.35 x 8,007.48

So, Dividends = 2,832.00

Addition in Retained earnings = Net Income - Dividend = 8,007.48 - 2,832

So, Addition in Retained earnings = 5,175.48

5 0

3 years ago

Consider the following information pertaining to Company C:

Sloan [31]

Answer:

C. $34,300.

Explanation:

Gross profit= Net sales - cost of sales

1. <u>calculating net sales</u>

= sales- sales returns and allowances

=$48,000-6000

=$42,000

2.<u> calculating cost of sales</u>

=opening stock + purchases- closing stock

=($900+$9100)-$2300

=$7,700

3. Gross profit

=$42,000-$7,700= $34,300

Gross profit =$ 34,300

4 0

4 years ago

Peggy McLaughlin runs an ice cream shop. She is determining how many employees should work next week and at what times. She is p

Lunna [17]

Answer:

organizing

Explanation:

its jacksepticeyes sister his full name is sean McLaughlin

7 0

4 years ago

Identify five HRM criteria or components that can be used to measure organizational effectiveness or ineffectiveness. "Grievance

kolezko [41]

Answer:

They include;

1. Customer Satisfaction

2. Absenteeism

3. Legal Compliance

4. Performance

5. Training

Explanation:

The Human Resource Management criteria that are used to measure the effectiveness or ineffectiveness of an organization, are a list that gives an idea of how an organization is performing, and this list can serve as a basis of comparison with other organizations. These options include;

1. Satisfaction: If the employees are treated fairly and so, feel satisfied with the organization, then they can be said to be effective.

2. Absenteeism: When workers are always absent from work it does not present the organization as an effective one.

3. Legal Compliance: The organization must be able to comply to government rules and regulations guiding the business to be rated as effective.

4. Performance: High or low-performance which is reflected in the turnover rates would be an indication of how effective or ineffective an organization is.

5. Training: The organization should be able to provide regular standard training for its workers to be rated as effective.

8 0

3 years ago