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3 years ago

This information relates to Monty Real Estate Agency.

Business

1 answer:

kotykmax [81]3 years ago

3 0

Answer:

Journal Entries

Date Account Titles and Explanation Debit Credit

Oct. 1 Cash $34,040

Common Stock $34,040

(To record the cash is invested in the business)

Oct. 2 No Journal Entry $0

Oct. 3 Office Furniture $4,110

Accounts Payable $4,110

(To record the purchase of office furniture on account)

Oct. 6 Accounts Receivable $10,780

Service Revenue $10,780

(To record the services provided but cash is not yet collected)

Oct. 10 Cash $165

Service Revenue $165

(To record the services provided by cash)

Oct. 27 Accounts Payable $690

Cash $690

(To record the payment made on accounts payable

relating to office furniture)

Oct. 30 Salaries Expense $2,740

Cash $2,740

(To record the payment of salaries to the assistant)

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Using the Base Case, calculate total depreciation expense for the year 2023E. Assume that depreciation expense on assets pre-202

balu736 [363]

Answer:

b) $33,000

Explanation:

Capital Expenditure = $20,000

Salvage Value in % = 10%

Useful Life = 4 Years

Salvage Value = Salvage Value% * Capital Expenditure

Salvage Value = 10% * 20,000

Salvage Value = $2,000

Annual Depreciation = (Capital Expenditures - Salvage Value) / Useful Life

Annual Depreciation = ($20,000 - $2,000) / 4

Annual Depreciation = $18,000 / 4

Annual Depreciation = $4,500

Depreciation of 2023E = Depreciation Pre 2020E + Depreciation on capital expenditures in 2020E + Depreciation on capital expenditures in 2021E + Additional Depreciation on capital expenditures in 2022E + Additional Depreciation on capital expenditures in 2023E

Depreciation of 2023E = $15,000 + $4,500 + $4,500 + $4,500 + $4,500

Depreciation of 2023E = $33,000

7 0

3 years ago

Carey Company had sales in 2016 of $1,560,000 on 60,000 units. Variable costs totaled $900,000, and fixed costs totaled $500,000

user100 [1]

Answer:

Results are below.

Explanation:

Giving the following information:

Selling price per unit= 1,560,000 / 60,000= $26

Unitary variable cost= 900,000 / 60,000= $15

Fixed costs= $500,000.

First, the income statement without the changes:

Sales= 1,560,000

Total varaible cost= (900,000)

Contribution margin= 660,000

Total fixed costs= (500,000)

Net operating income= 160,000

Now, with the changes:

Unitary variable cost= (15*0.8)= 12

Selling price= 26 - 1.5= $24.5

Sales in units= 60,000*1.05= 63,000

Fixed costs= 500,000 + 100,000= $600,000

Sales= 24.5*63,000= 1,543,500

Total variable cost= (12*63,000)= (756,000)

Total contribution margin= 787,500

Fixed costs= (600,000)

Net operating income= 187,500

3 0

3 years ago

On January 1, 2019, Pepin Company adopts a compensatory share option plan for its 50 executives. The plan allows each executive

bazaltina [42]

Answer:

On 31 December 2019: Debit Compensation expense for $39,667; and Credit Paid-in capital from share options for $39,667.

On 31 December 2020: Debit Compensation expense for $39,667; and Credit Paid-in capital from share options for $39,667.

On 31 December 2021: Debit Compensation expense for $41,067; and Credit Paid-in capital from share options for $41,067.

On 06 January 2022: Debit Cash for $48,000; Debit Paid-in capital from share options for $22,400; Credit Common stock for $3,200; and Credit Paid in capital in excess of par- common stock (balancing figure) for $67,200.

Explanation:

Note: See part b of the the attached excel file for the journal entries

Also note that before the journal entries are recorded, the current compensation expense for year 2019, 2020 and 2021 are first calculated. See part a of the attached excel file for the calculation of the the current compensation expense for year 2019, 2020 and 2021.

In part a of the attached excel file, the estimated compensation cost for 2019, 2020 and 2021 are calculated as follows:

Estimated compensation cost for 2019 = Option value on the grant date * Number of executives * (1 - Expected option forfeited rate) * Number of shares in the option = $14 * 50 * (1 - 15%) * 200 = $119,000

Estimated compensation cost for 2020 = Option value on the grant date * Number of executives * (1 - Expected option forfeited rate) * Number of shares in the option = $14 * 50 * (1 - 15%) * 200 = $119,000

Estimated compensation cost for 2021 = Option value on the grant date * (Number of executives - Actual executives turnover for the entire service period) * Number of shares in the option = $14 * (50 - 7) * 200 = $120,400

On 06 January 2022, the calculation of the entries used in the part b of the attached excel file are as follows:

w.1. Cash = Number of executives who exercise their options * Number of shares in the option * Purchase price per share after completing a 3-year service period = (8 * 200 * $30) = $48,000

w.2. Paid-in capital from share options = Number of executives who exercise their options * Number of shares in the option * Option value on the grant date = (8 * 200 * 14) = $22,400

w.3. Common Stock = Number of executives who exercise their options * Number of shares in the option * Sahre par value = (8 * 200 * $2) = $3,200

w.4. Paid in capital in excess of par- common stock (balancing figure) = Cash + Paid-in capital from share options - Common Stock = $48,000 + $22,400 - $3,200 = $67,200

Download xlsx

6 0

3 years ago

For most people, the purchase of a Ford automobile would employ which type of consumer decision making?

Nostrana [21]

Answer:

Extended decision making

Explanation:

Extended decision making is the decision making which involve the very high level of the purchase, an internal as well as extensive information search which is followed by the complex computation of the alternatives available and thorough evaluation is taken place when the purchase will take place.

So, for most of the people, when the decision of purchase is to be made like for the Ford automobile, the people will choose the extended decision making as it is expensive, infrequently purchased products.

5 0

3 years ago

If you needed financial advice, whom would you ask? Why?

kap26 [50]

Answer: financial advisors

Explanation: A financial advisor can help you create a long-term investing strategy, weigh the pros and cons of different account types, pick mutual funds, rebalance your investing portfolio, and set savings benchmarks to help you reach your long-term goals.

Hope this helped

6 0

4 years ago