_____ is a method for determining the estimated annual costs and benefits for a project.

Wages expense Wages payable Utilities expense Accounts payable Unearned service revenue Service revenue Equipment Intangible ass

Elena-2011 [213]

Answer and Explanation:

The adjusting entries are shown below

1. Accrued wages expenses

Wages expense Dr XXXXX

To Wages payable XXXXX

(Being the accrued wages is recorded)

For recording this we debited the wages expense as it increased the expense and credited the wages payable as it also increased the liabilities

2. Accrued utilities expenses

Utilities expense Dr XXXXX

To Account payable XXXXX

(Being the accrued utilities expense is recorded)

For recording this we debited the utility expense as it increased the expense and credited the account payable as it also increased the liabilities

3. For adjusting the unearned service revenue

Unearned service revenue Dr XXXXX

To Service revenue XXXXX

(Being the unearned service revenue is recorded)

For recording this we debited the unearned service revenue as it decreased the liability and credited the service revenue as it increased the revenue

7 0

3 years ago

Inventory records for Dunbar Incorporated revealed the following:Date Transaction Number of units Unit CostApr. 1 Beginning inve

finlep [7]

Answer:

Explanation:

1. Calculate ending inventory Rate per unit Total cost

number of units ($) ($)

Beg bal (April1) 450 2.19 985.50

Add:purchases

April 20 410 2.69 1102.90

-----------------------------------------------------------------------------

Total goods

av for sale 860 2088.40

Less: Sales:

During April 590

--------------------------------

Ending inventory 270

2. Cost of ending inventory = 270*2.19=$591.3

7 0

3 years ago

PureRinse Inc. is a brand reputed for its wide variants of body wash that introduced its range of shampoos and skin moisturizers

klemol [59]

Answer:

Economics of scope.

Explanation:

Economies of scope can easily described to be situations in which the long-run average and marginal cost of a company, organization, or economy decreases, due to the production of some complementary goods and services. An economy of scope means that the production of one good reduces the cost of producing another related good.

Economies of scope differ from economies of scale, in that the former means producing a variety of different products together to reduce costs while the latter means producing more of the same good in order to reduce costs by increasing efficiency.

6 0

3 years ago

Two online magazine companies reported the following in their financial statements: BetterWorth Outdoor Fun 2018 2017 2018 2017

Rudik [331]

Answer:

BetterWorth and Outdoor Fun ROE and P/E Ratio Analysis:

1-a) Computation of 2018 ROE for each company.

ROE = Return on Equity. It is a percentage of the net income over equity. It is best to use the average equity, if given two balance sheets. See explanation for further clarification.

Average Equity = Two balance sheets' equity divided by 2.

BetterWorth's Average Equity = (597,186 + 522,814) / 2 = 560,000

Outdoor Fun's Average Equity = (457,151 + 477,049) / 2 = 467,100

BetterWorth's 2018 ROE = 111,000 / 560,000 x 100 = 19.82%

Outdoor Fun's 2018 ROE = 92,420 / 467,100 x 100 = 19.79%

1-b) BetterWorth's appears to be generating greater returns on stockholders' equity in 2018. It generated 19.82% as against Outdoor Fun's 19.79%, especially with the use of average equity.

2-a) Computation of 2018 P/E Ratio for each company:

P/E Ratio = Price/Earnings Ratio. It is expressed as the market price per share divided by earnings per share.

BetterWorth's 2018 P/E Ratio = 54.90 : 3.4 = 16.15 : 1

Outdoor Fun's 2018 P/E Ratio = 33.05 : 2.30 = 14.37 : 1

2-b) Investors appear to value BetterWorth more than Outdoor Fun. This is because investors are ready to pay 16.15 times more for each unit of the earnings of BetterWorth. For Outdoor Fun, investors are only willing to pay 14.37 times more for each unit of its earnings.

Explanation:

A) ROE = Return on Equity. It is expressed as a percentage of net income over average equity. In the above calculations, we used the average equity. The reason is this: average equity smoothens the mismatch between the income statement and the balance sheet.

But, what does ROE measure? It measures a company's management effectiveness in using assets to make profits for shareholders.

Had we used the 2018 equity, Outdoor Fun would have appeared to have performed relatively better than BetterWorth over ROE.

B) P/E ratio relates a company's share price to its earnings. The P/E ratio shows that the company's stock is overvalued or undervalued. It depicts investors' confidence or lack of it in the company's ability to produce more or less earnings. Without earnings expectation, investors cannot price a company's stock highly. It is therefore a stock valuation tool widely used by financial analysts and investors.

6 0

3 years ago

Charu Khanna received a Form 1099-B showing the following stock transactions and basis during 2019 Stock Date Purchased Date Sol

AysviL [449]

Answer:

Charu Khanna

The Net capital loss is:

= $2,000.

Explanation:

a) Stock Transactions and Data during 2019:

Stock Date Date Sold Sales Price ($) Cost Basis ($)

Purchased

4,000 shares Green Co. 06/04/07 08/05/19 12,000 3,000

500 shares Gold Co. 02/12/17 09/05/19 54,000 62,000

5,000 shares Blue Co. 02/04/08 10/08/19 18,000 22,000

100 shares Orange Co. 11/15/18 07/12/19 19,000 18,000

Total $103,000 $105,000

Net capital loss:

Long-term capital loss = $3,000

Short-term capital gain = $1,000

Net capital loss = $2,000 ($3,000 - $1,000)

8 0

2 years ago