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Aleksandr [31]
3 years ago
13

Katie Inc. reported net income of $171,000 for the current year and paid dividends of $26,000 on common stock. It also has 10,00

0 shares of 6%, $100 par value, noncumulative preferred stock outstanding. Common stockholders’ equity was $1,200,000 on January 1 and $1,600,000 on December 31. The company’s return on common stockholders’ equity for the current year is___________.
Business
1 answer:
yulyashka [42]3 years ago
3 0

Answer:

The company’s return on common stockholders’ equity for the present year is 7.9%

Explanation:

The return on common stockholders’ equity of the company for the present year is computed as:

= Net Income - (Shares x 6% x  Rate of shares)

where

Net Income is $171,000

Shares is 10,000

Rate is $100

Putting the values in the above:

=$171,000 - (10,000 x .06 x $100)

= $171,000 - $60,000

= $111,000

Return on common stockholders’ equity  = [ $111,000 / Common stockholders’ equity on January 1 + Common stockholders’ equity on December 31 / 2 )]

= ([$111,000($1,200,000+$1,600,000 /2 )]

= $111,000 / ($28,00,000 / 2)

= $111,000 / $14,00,000

= 0.079 or 7.9%

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Leaping Deer Company purchased a tractor at a cost of $240,000. The tractor has an estimated residual value of $40,000 and an es
trapecia [35]

Answer:

Units of production method: $76,820

Explanation:

The three most common depreciation methods are: straight line, double-declining, and units of production. We will calculate the depreciation expense for each.

Straight line method:

Depreciable amount= cost - residual value

                                 = 240,000 - 40,000

                                = 200,000

Depreciation by year = depreciable amount / years of useful life

                                   = 200,000 / 8

                                   = 25,000

Double declining method

Depreciation per year = depreciable amount x (2 / useful life in years)

                      = 200,000 x (2 / 8)

                      = 50,000

Units of production method

Depreciation per unit  = depreciable amount / hours of operation

                                     = 200,000 / 12,000

                                     = 16.7

Total depreciation = depreciation per unit x actual units of operation

                              = 16.7 x 2,400 + 2,200

                              = 16.7 x 4,600

                              = 76.820

Therefore, the units of production method results in the highest depreciation expense among the three.

   

3 0
3 years ago
Preparing job order costing journal entries
trasher [3.6K]

Answer:

Item a

Debit : Website expenses $2,000

Credit : Cash $2,000

Item b

Debit : Work in Process : Direct labor $11,250

Debit : Work in Process : Indirect labor $3,750

Credit : Wages Payable  $15,000

Item c

Debit : Raw Materials $24,000

Credit : Accounts Payable $24,000

Item d

Debit : Work in Process : Direct Materials  $7,500

Debit : Work in Process : Indirect Materials $5,000

Credit : Raw Materials $12,500

Item e

Debit : Work in Process : Depreciation $18,000

Credit : Accumulated depreciation $18,000

Item e

Debit : Work in Process : Pant Insurance  $1,500

Credit : Prepaid insurance  $1,500

Item e

Debit : Work in Process : Property tax  $3,900

Credit : Property Tax Payable  $3,900

Item f

Debit : Overheads $11,250 x 200% $22,500

Credit : Work in Process $22,500

Item g

Debit : Finished Goods Inventory $40,000

Credit : Work in Process $40,000

Item h

Debit : Accounts Receivables   $22,000

Debit : Cost of Sales  $18,000

Credit : Sales Revenue  $22,000

Credit : Finished Goods Inventory $18,000

Explanation:

The journals for the transactions have been prepared above.

4 0
3 years ago
Kearney, Inc., makes kitchen tools. Company management believes that a new model of coffee grinder would sell well at a price of
IRINA_888 [86]

Answer:

$0.15 hours per unit

Explanation:

Given that

Direct material cost = $16

Assume Direct labor cost = X

Manufacturing overheads = $18

Profit margin = 20%

Direct labor per hour cost = $28

The computation of direct labor-hour input is shown below:-

Total manufacturing cost = X + $34

Total cost of goods sold = (X + $34) × 1.7 = $66

Direct labor cost per unit

= (X + $34) = $38.82

= $38.82 - $34

= $4.32

Direct labor hours per unit = Direct labor cost per unit ÷ Direct labor per hour cost

= $4.32 ÷ $28

= $0.15 hours per unit

3 0
3 years ago
Select the correct text in the passage.
AfilCa [17]

Answer:   I heard its the second option, I cannot verify that. But i do have the awnsers to every question for the final in Entrepreneruship, Its on quizlet labeled Entrepreneurship. 37 terms.

Explanation:

5 0
2 years ago
Short notes on Co-Work skill?​
sammy [17]

Answer:

Coworking is an arrangement in which workers of different companies share an office space, allowing cost savings and convenience through the use of common infrastructures, such as equipment, utilities, and receptionist and custodial services, and in some cases refreshments and parcel acceptance services.

6 0
2 years ago
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