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kozerog [31]
3 years ago
10

The business was started when the company received $48,500 from the issue of common stock. Purchased equipment inventory of $176

,500 on account. Sold equipment for $191,000 cash (not including sales tax). Sales tax of 6 percent is collected when the merchandise is sold. The merchandise had a cost of $116,000. Provided a six-month warranty on the equipment sold. Based on industry estimates, the warranty claims would amount to 5 percent of sales. Paid the sales tax to the state agency on $141,000 of the sales. On September 1, 2018, borrowed $21,500 from the local bank. The note had a 5 percent interest rate and matured on March 1, 2019. Paid $5,900 for warranty repairs during the year. Paid operating expenses of $53,000 for the year. Paid $125,900 of accounts payable. Recorded accrued interest on the note issued in transaction no. 6. What is the total amount of current liabilities at December 31, 2018? (Do not round intermediate calculations and round your answer to the nearest whole dollar amount.)
Business
1 answer:
masya89 [10]3 years ago
5 0

Answer:

Total current liabilities  85.008,33‬

Explanation:

current liabilities: obligations that will setlte within a one-year period

<em />

<em>accounts payable</em> from the purchase of equipment:

cost:          176,500

paid:      <u>  (125,900)  </u>

balance:    50,600

<em />

<em>waranty liaiblity:</em>

191,000 x 5% = 9,550

<em>sales tax payable:</em>

sales for     191,000

paid for   <u>  (141,000)  </u>

unpaid for  50,000 x 6% = 3,000

<em>note payable</em> with a local bank:

principal:   21,500

accrued interest: 21,500 x 5% x 1/3 = 358,33

net:   21,858.33

<u>Total current liabilities:</u>

accounts payables 50,600

warrant liability:        9,550

sales tax payable:    3,000

note payable:     <u>    21,858.33   </u>

                             85.008,33‬

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On March 31, 2018, Easy Rental Agency Inc.'s trial balance included the following selected unadjusted account balances. The comp
AVprozaik [17]

Answer:

1)

Dr Depreciation expense 1,226

    Cr Accumulated depreciation 1,226

2)

Dr Unearned revenue 6,487

    Cr Rent revenue 6,487

3)

Dr Interest expense 600

    Cr Accrued interest 600

4)

Dr Supplies expense 1,960

    Cr Supplies 1,960

5)

Dr Insurance expense 3,618

    Cr Prepaid insurance 3,618

6)

Dr Income tax expense 2,600

    Cr Income tax payable 2,600

Explanation:

March 31, 2018

Prepaid insurance $14,740  - 3,618

Supplies 2,900  - 1,960

Equipment 22,100

Accumulated depreciation-equipment 5,680  + 1,226

Unearned revenue 9,730  - 6,487

interest payable 600

Income tax payable 2,600

Loan payable, due 2020 20,000

Rent revenue 30,900  + 6,487

Salaries expense 14,500

depreciation expense 1,226

interest expense 600

Supplies expense 1,960

Insurance expense 3,618

Income tax expense 2,600

1. The equipment, which was purchased on January 1, 2017, is estimated to have a useful life of four years. The company uses straight-line depreciation.

depreciation per year = $22,100 / 4 = $5,525

depreciation expense up to March 31, 2018:

$5,525 x 1.25 = $6,906.25 ≈ $6,906

adjustment entry = $6,906 - $5,680 = $1,226

Dr Depreciation expense 1,226

    Cr Accumulated depreciation 1,226

2. One third of the unearned revenue related to rent is still unearned at the end of the quarter.

adjusting entry = 9,730  - (9,730  x 1/3) = $6,486.67 ≈ $6,487

Dr Unearned revenue 6,487

    Cr Rent revenue 6,487

3. The loan payable has an interest rate of 6%. Interest is paid on the first day of each following month and was last paid March 1, 2018.

interest per month = $20,000 x 6% x 1/12 = $600

Dr Interest expense 600

    Cr Accrued interest 600

4. Supplies on hand total $940 at March 31.

adjusting entry = $2,900 - $940 = $1,960

Dr Supplies expense 1,960

    Cr Supplies 1,960

5. The one-year insurance policy was purchased for $14,740 on January 1.

insurance expense per quarter = $14,470 x 3/12 = $3,617.50 ≈ $3,618

Dr Insurance expense 3,618

    Cr Prepaid insurance 3,618

6. Income tax is estimated to be $2,600 for the quarter.

Prepare the quarterly adjusting entries required at March 31.

Dr Income tax expense 2,600

    Cr Income tax payable 2,600

8 0
3 years ago
Who is responsible for selecting the required yearly ce topics
Vilka [71]

Based on standard practice <u>State Real Estate Commission</u> is responsible for selecting the required yearly CE topics.

What is CE in Real Estate?

CE in Real Estate is a term that is used to describe the Continue Education that must be participated by the agents and brokers to retain and maintain real estate license.

To maintain the required yearly CE topics, the State Real Estate Commission set the standard, including the requirements, duration, and due dates.

Hence, in this case, it is concluded that the correct answer is "State Real Estate Commission."

Learn more about Real estate here: brainly.com/question/1534216

3 0
3 years ago
Assume that a war breaks out abroad, and foreign investors choose to invest more in a large safe country, the United States. The
goldenfox [79]

Answer: the U.S. real interest rate and net exports will both rise.

Explanation: Due to the ongoing war abroad, there would be a reduction in production of goods and services in the affected countries and a rise in the production of goods and services in the safe haven country (US) leading to increased levels of export to meet the demand.

War affects investments negatively. As a result, investments are also moved to the US for safety. However, pressure on US producers and eventual shortage due to increased exports, would lead to inflation and increase in prices of goods and services. To mitigate these effects and to reduce the supply of money, government would increase interest rates.

This explains why both interest rates and export both rise.

5 0
3 years ago
The person/people who receive the message
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How was your day!<3

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3 0
3 years ago
Social Media, Inc. (SMI) has two services for users. Toot!, which connects tutors with students who are looking for tutoring ser
Agata [3.3K]

Answer:

1. Predetermined overhead rate of admin costs  - $ 27 per user.

2. Profit for TOOT Service   - $ 808,725

   Profit for TIX Service       -  $ 165,800

Explanation:

Computation of predetermined overhead rate

Product TOOT                                                  7,700 users

Product TIX                                                     <u>15,600 users</u>

Total users                                                       23,300 users                                                      

Predetermined overhead rate per user $ 629,100 / 23,300 = $ 27 per user

Allocation of Admin costs - TOOT - 7,700/ 23.300  * $ 629,100 = $ 207,900  

Allocation of Admin costs - TIX    - 15,600/ 23,300  * $ 629,100 = $ 421,200                          

2. Computation of profit per service

                                                      TOOT                 TIX

                                                          $                        $

Revenues                                      1,350,000          1.040.000

Less: Engineering costs               (  333,375 )       (     453,000 )

Less: Allocation Admin costs      <u> (  207,900 ) </u>     <u> (     421,200)</u>

Profit                                               808,725              165,800

7 0
3 years ago
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