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dolphi86 [110]
3 years ago
13

Benton County includes an independent school district and two individually chartered towns within the County. Benton County’s Tr

easurer assesses and collects property taxes on behalf of itself, the school district, and the towns. The County uses a tax collection custodial fund to record tax collections for the school district and towns. During the year ended December 31, 2020, the following transactions took place:
1. The County levied taxes as follows: Benton County General Fund $ 25,000,000 School District 12,500,000 Towns 2,500,000 Total $ 40,000,000
2. The property taxes levied in part (a) were collected.
3. The amounts collected were paid to the school district and towns.
Required:
a. Prepare journal entries for Benton County and the Benton County Independent School District—identify the funds.
Business
1 answer:
Svet_ta [14]3 years ago
8 0

Answer:

<u>In the Book of Benton County:</u>

a. Debit Cash Account for $40,000,000; Credit Property Tax for $25,000,00; and Credit Tax Collection Custodial Fund for $15,000,000.

b. Debit Tax Collection custodial Fund Account for $15,000,000; Credit School District Account for $12,500,000; and Credit Towns Account for 2,500,000.

c. Debit School District Account for $12,500,000; Debit Towns Account for $2,500,000; and Credit Cash Account for $15,000,000.

<u>In the Books of School Districts Accounts:</u>

a. Debit Benton County Accounts for $12,500,000; and Credit Property Tax Account for $12,500,000.

b. Debit Cash Account for $12,500,000; and Credit Benton County Accounts for $12,500,000.

<u>In the Books of Towns Accounts:</u>

a. Debit Benton County Accounts for $2,500,000; and Credit Property Tax Account for $2,500,000.

b. Debit Cash Account for $2,500,000; and Credit Benton County Accounts for $2,500,000.

Explanation:

Note: See the attached excel for how the journal entries will look together with the explanation.

Download xlsx
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Jay sold three items of business equipment for a total of $300,000. None of the equipment was appraised to determine its value.
olasank [31]

Answer:

Consider the following calculations

Explanation:

Step 1. Given information.

Asset        Cost        Adjusted Basis

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

Skidder   230,000      40,000

Driller       120,000      60,000  

Platform  620,000        0

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

Total         970,000      100,000

Step 2. Formulas needed to solve the exercise.

Allocation for each asset =  value sold * (adjusted basis / total)

Gain on sale = Sales price - Adjusted basis amount

Step 3. Calculation and Step 4. Solution.

Sales price is allocated on the basis of adjusted value.

  • Skidder = 300.000 * 40.000/100.000 = 120.000

  • Driller = 300.000*60.000/100.000 = 180.000

  • Platform = 300.000*0/100.000 = 0

Gain on sale = Sales price - Adjusted basis amount

                        = 300.000 - (40.000 + 60.000 + 0)

                        = 200.000

6 0
3 years ago
QS 19-10 Computing contribution margin LO P2 D’Souza Company sold 6,000 units of its product at a price of $88.00 per unit. Tota
Nikitich [7]

Answer:

$218,400

Explanation:

The computation of contribution margin is here below:-

                                               Units       Cost per unit         Total

Sales                                     6,000        $88                       $528,000

Less:

Variable production cost     6,000        $40.8                  $244,800

Variable selling and

administrative costs        6,000         $10.8                   $64,800

Contribution margin                                                           $218,400

Therefore the we multiplied the sale unit with cost per unit, in the similar way we multiplied the Variable production cost unit with cost per unit and Variable selling and administrative costs with cost per unit to reach the contribution margin.

4 0
3 years ago
Rey Company’s single product sells at a price of $216 per unit. Data for its single product for its first year of operations fol
erastovalidia [21]

Answer:

1. Using Absorption Costing

Income Statement

Sales    20,000 X $216                             = $4,320,000

Less: Cost of Goods Sold (Note 1)            =($1,240,000)

Gross Margin                                             = $3,080,000

Less: Operating Expenses

Selling and Administrative Expense         = ($560,000)

(Note 2)                                                        

Net Income                                                  = $2,520,000

Note:

  1. Cost of goods Sold = All the direct variable cost + direct fixed cost = Direct materials + Direct Labor + Direct Overhead = $20 +$28 + $6 = $54 per unit, Total = $54 X 20,000 units = $1,080,000 + Fixed cost = $160,000 = $1,240,000
  2. Selling And Administrative Expense = Variable + Fixed, Variable = $18 X 20,000 units = $360,000, Fixed Expenses = $200,000, Total = $560,000

2. Using Variable Statement

Sales    20,000 X $216                             = $4,320,000

Less: Variable Costs

Direct Material $20 X 20,000                    = ($400,000)

Direct Labor  $28 X 20,000                       = ($560,000)

Variable Overhead $6 X 20,000               = ($120,000)

Variable Selling Expense $18 X 20,000    = ($360,000)

Contribution Margin                                     = $2,880,000

Less: Fixed Costs

Fixed Overhead                                            = ($160,000)

Fixed Selling & Administrative                     = ($200,000)

Net Income                                                    = $2,520,000

Note: Under Variable Statement first variable expenses are deducted to get the value of contribution, and then fixed expenses are deducted to get net income, whereas in absorption costing firstly manufacturing expenses are deducted to get gross margin and then operating expenses like selling and administrative expenses are deducted to get the net income.

But Net income is same in both cases.

5 0
3 years ago
our aunt has $500,000 invested at 5.5%, and she now wants to retire. She wants to withdraw $45,000 at the beginning of each year
dedylja [7]

Answer:

B. 17 is the correct answer.

Explanation:

8 0
2 years ago
You have commissioned a local survey to see what consumers are most interested in.
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Based on the survey data, what can be concluded about the market for coffee shops in the area?

Saturation has been reached.

According to the survey data, which business likely has the least supply in this town?

Shoe stores

8 0
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