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Shtirlitz [24]
3 years ago
5

Henry Josstick has just started his first accounting course and has prepared the following balance sheet and income statement fo

r Omega Corp. Unfortunately, although the data for the individual items are correct, he is very confused as to whether an item should go in the balance sheet or income statement and whether it is an asset or liability.
BALANCE SHEET
Payables $ 36 Inventories $ 51
Less accumulated depreciation 121 Receivables 40
Total current assets Total current liabilities
Long-term debt $ 355 Interest expense $ 26
Property, plant, and equipment 525 Total liabilities
Net fixed assets Shareholders’ equity $ 94
Total assets Total liabilities and shareholders’ equity
INCOME STATEMENT
Net sales $ 710
Cost of goods sold 585
Selling, general, and administrative expenses 39
EBIT
Debt due for repayment $ 26
Cash 16
Taxable income
Taxes $ 16
Depreciation 13
Net income
Prepare the balance sheet and income statement by rearranging the above items. (Be sure to list the assets and liabilities in order of their liquidity. Enter all amounts as positive values.)
Business
1 answer:
Brut [27]3 years ago
5 0

Answer:

INCOME STATEMENT

Net sales                                        $710

Cost of goods sold                       ($585)

Selling, gen & admin expenses   ($39 )

Depreciation                                 <u> ($13)  </u>

EBIT                                                 $73

Interest expense                          <u> ($26 )</u>

Taxable income                              $47

Taxes                                            <u> ($16 ) </u>

Net income                                   <u> $31 </u>

Balance Sheet

Property, plant, and equipment  $525

Less accumulated depreciation <u>($121)</u>

Net fixed assets                                          $404

Inventories                                     $51

Cash                                               $16

Receivables                                   <u>$40 </u>

Total current assets                                    <u>$107 </u>

Total Assets                                               <u>$511</u>

Shareholders’ equity                                   $94

Long-term debt                               $355

Payable                                 $36

Debt due for repayment      <u>$26 </u>

Total current liabilities                     <u>$62</u>

Total liabilities                                             <u> $417 </u>

Total liabilities & shareholders’ equity       <u>$511</u>

Explanation:

Sales and Expenses balances are included in Income statement. Assets, Equity and Liabilities balances are included in the balance sheet.

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3 0
3 years ago
Henry Jones contributed equipment, inventory, and $57,300 cash to a partnership. The equipment had a book value of $27,800 and m
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Answer:

A. $86,900

Explanation:

Henry’s capital account will be credited by the amount of $86,900. See computation below.

Cash $57,300

Equipment 34,100

Inventory 10,400

Note payable (14,900)

————

Total $86,900

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3 0
3 years ago
Subjective performance evaluations are subject to several rater errors, which makes objective measures seem a better alternative
Mandarinka [93]

Answer:

A Subjective performance evaluation is more feasible when evaluating jobs that cannot easily be evaluated by numbers, in finding problems such as ethical errors that objective evaluation cannot identify and in identifying the rate of achievement of work goals that cannot be recorded in an objective evaluation.

Explanation:

Though Objective evaluation has been the more favored form of evaluation for valid reasons, there are still situations where subjective performance evaluation does a better job in the workplace.

Some jobs for example, the job of an attorney, cannot easily be objectively evaluated. In this situation, it falls on the employer to evaluate the performance of the employee by using measurements like team play, professionalism and client service.

In objective analysis, some ethical approaches are overlooked and the achievement of the set goal is the major criterion for ratings. This affords employees the opportunity to use unethical means to achieve set targets and the objective performance evaluation skips it, leaving them safe and with high ratings. In subjective performance ratings however, the employer having the power to rate employers, could expose these unethical behaviors faster and actions, taken on them.

In the workplace, certain goals are set in overall goals, as a method to achieving the overall set target. In an objective performance rating, an employee could bypass these and still appear to have achieved the overall goal. An objective evaluation will miss this but a subjective evaluation could pick this out and make rating each employee based on these soft goals and overall goal achievable.

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