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Xelga [282]
2 years ago
15

Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,900 in tailoring fee

s, and paid $12,800 in expenses. Depreciation expense totaled $1900. Accounts receivable increased $1200, supplies increased $3600, and accrued liabilities increased $1650. Pat's accrual-basis net income was:
Business
1 answer:
iris [78.8K]2 years ago
7 0

Answer:

$31,350

Explanation:

Calculation for Pat's accrual-basis net income

Cash receipts$42,900

Less Cash disbursements(12,800)

Cash basis net income 30,100

Less depreciation expense(1,900)

Add increase in accounts receivable1,200

Add increase in supplies 3,600

Less increase in accrued liabilities(1,650)

Accrual-basis net income$31,350

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Culver Corporation purchased machinery on January 1, 2022, at a cost of $288,000. The estimated useful life of the machinery is
Digiron [165]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Purchasing price= $288,000

Useful life= 4 years

Salvage value= $33,800

First, we will calculate the depreciation expense using the straight-line method:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (288,000 - 33,800)/4

Annual depreciation= $63,550

Now, using the double-declining balance:

Annual depreciation= 2*[(book value)/estimated life (years)]

Year 1= 2*63,550= 127,100

Year 2= [(254,200 - 127,100)/4]*2= $63,550

Year 3= [(127,100 - 63,550)/4]*2= $31,775

Year 4= [(63,550 - 31,775)/]*2= $15,887.5

6 0
3 years ago
What are the most important information needs that a governmental annual report should fulfill for each of the following: ______
vladimir2022 [97]

Answer:

1. Compensation for employment services that they offer.

2. Disbursement in sufficient proportions of the available funds.

3. How the government have used their tax money.

4. The ability and capacity of the government to honor debts.

Explanation:

Each stakeholder to the governmental annual report hold a different need compared to the other. Therefore it is important to pay attention to whom the financial statements speaks to. The above shows the different needs of the stakeholders to  governmental annual report.

8 0
3 years ago
XYZ Company has issued 10%, $100 par non-cumulative preferred stock. Two years ago, XYZ omitted its preferred dividend. Last yea
strojnjashka [21]

Answer:

In order to make the distribution to common shareholders, each preferred share must be paid a dividend of:

$5 per share.

Explanation:

The preferred stock is non-cumulative.  This implies that XYZ's preferred stockholders are not being owed for the previous two year's dividend that was not paid.  Non-cumulative preferred stock does not attract dividend arrears whenever it was not declared.  It is cumulative preferred stock that attracts such arrears to be carried forward until they are paid.

4 0
3 years ago
Monster music company provided music lessons to customers for $10,000, receiving $6,000 in cash and the rest on account. what is
prisoha [69]

The monster music company's revenue under the accrual basis of accounting is $10,000

What is the accrual basis of accounting?

Under  the accrual basis of accounting, revenue is recognized when the goods have been delivered or services rendered regardless of when payment for goods or services is received.

The fact that Monster music company already provided the music lessons whose revenue is $10,000 means that it  should recognize the revenue for the whole music lessons provided rather the portion whose cash payment has been received

Find out more about accrual accounting on:brainly.com/question/11312217

#SPJ1

8 0
1 year ago
On October 1, Hawking Corp. had 40,000 shares of $2 par value common stock outstanding before it declared a 2-for-1 stock split.
Naily [24]

Answer:

1. After the split, how many shares of common stock are outstanding and what is their par value per share?

40,000 stocks outstanding x 2 = 80,000 stocks outstanding after the stock split

par value of each stock = $2 / 2 = $1

Aren't both questions the same?

2. After the split, the number of shares outstanding is <u>80,000</u> and the par value per share is <u>$1</u>.

Explanation:

When a stock split happens, the total number of outstanding stock is just multiplied by the stock split factor, in this case it was 2, but other times it might be 4 or 7 (like Apple stock). You just multiply total outstanding stock by the split number. On the other hand, par value is calculated by dividing the current par value by the split number.

5 0
2 years ago
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