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3 years ago

Bearcat Construction begins operations in March and has the following transactions.

Business

1 answer:

vesna_86 [32]3 years ago

8 0

Answer:

March 1 Issue common stock for $21,000.

Dr Cash 21,000
Cr Common stock 21,000

March 5 Obtain $9,000 loan from the bank by signing a note.

Dr Cash 9,000
Cr Notes payable 9,000

March 10 Purchase construction equipment for $25,000 cash.

Dr Equipment 25,000
Cr Cash 25,000

March 15 Purchase advertising for the current month for $1,100 cash.

Dr Advertising expense 1,100
Cr Cash 1,100

March 22 Provide construction services for $18,000 on account.

Dr Accounts receivable 18,000
Cr Service revenue 18,000

March 27 Receive $13,000 cash on account from March 22 services.

Dr Cash 13,000
Cr Accounts receivable 13,000

March 28 Pay salaries for the current month of $6,000.

Dr Salaries expense 6,000
Cr Cash 6,000

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Swordfish Co. earned $75,000 in 2018 and expects to receive 2/3 of the amount in 2019 and the remainder in 2020. How much revenu

Gnoma [55]

Answer:

$75,000

Explanation:

Revenue is said to be earned on the deliver of the goods and services to the party that enjoys the benefits from the good or service.

As long as control of the goods has been transferred, the revenue is earned. Note that this is not when cash has been collected.

As such, if the company earned $75,000 in 2018 but some amounts are to be collected in subsequent years, the revenue earned in 2018 is still $75,000 while the amounts yet to be collected will be recognized in accounts receivable.

5 0

4 years ago

Green Corporation has total sales revenues of $400,000. If its total fixed costs are $70,000 and its total variable costs are $1

Georgia [21]

Answer:

Part 1

the contribution margin is $220,000

Part 2

the net change in operating income is $270,000

Part 3

Stanley's Bicycles contribution margin is $7,500

Explanation:

Green Corporation Contribution Margin Statement

Sales revenues $400,000

Less Variable costs ($180,000)

Contribution $220,000

Less Fixed Cost ($70,000)

Net Income $150,000

Frost Company Contribution Margin Statement

Contribution ($49 x 10,000) $490,000

Less Fixed Cost ($70,000)

Net Income $420,000

Change = $420,000 - $150,000 = $270,000

Stanley's Bicycles Contribution Margin Statement

Sales Revenue ($750 x 200) $150,000

Less Variable Costs :

Cost of Sales ( $600 x 200) ($120,000)

Commission ($150,000 x 15%) ($22,500)

Contribution $7,500

Less Fixed Costs

Rent expense ($1,400)

Salaries ($3,000)

Net Income $3,100

8 0

3 years ago

Determine the balance in Finished Goods Inventory on October 31 and November 30 under absorption costing and variable costing. C

Morgarella [4.7K]

Answer:Please refer to the explanation section

Explanation:

The question is incomplete, amounts of production costs like Direct Material, direct labour and Variable/Fixed manufacturing overheard were not given, we will explain the absorption cost and variable cost in detail so that the student would be able to calculate absorption cost and variable cost balances easier.

Absorption costing Method

Total Manufacturing costs are allocated to Finished goods Product. Absorption Costing method assigns or allocates the total cost of Manufacturing or total production costs to units of Finished Goods produced. each unit of finished goods thus represents total costs of production per unit or Total Manufacturing/Production cost is the Balance of Finished Goods.

Total Manufacturing/Production cost = direct labor cost + direct material cost + variable and fixed Manufacturing overheads cost.

Finished Goods Balance = Total Manufacturing/Production cost

A unit of Finished Goods = Total Manufacturing costs/units produced

Variable costing method

Variable costing method fixed manufacturing costs are treated as an expense, Variable Manufacturing costs are the only allocated to inventory. The value or Balance of inventory consist of Variable Manufacturing cost like Direct labor, Direct Material and Variable Manufacturing costs. Finished Goods Balance equals total Variable Manufacturing cost

5 0

3 years ago

Ugh Inc.'s net income for the most recent year was $15,585. The tax rate was 40 percent. The firm paid $3,846 in total interest

Umnica [9.8K]

Answer:

4.71

Explanation:

Cash coverage is a financial tool to calculate the proportion of available cash to interest expenses. It is useful in that it gives a deeper insight into available cash to offset interest expense and guide towards proper investment of cash.

<u>Workings</u>

Cash coverage ratio = cash + cash equivalent / interest expenses.

To arrive at the cash equivalent , depreciation is added back to the net income

Cash equivalent = 15,585+ 2,525 = 18,110

Interest expenses = 3,846

Cash coverage ratio = 18,110 / 3,846 = 4.71

This seems high and it is advisable that cash should be used for some short term investments to earn other profit

7 0

4 years ago

PLS HELP!!

dedylja [7]

Answer:

Benefits

Explanation:

Both existing and potential customers attached the value of a product to its perceived benefits rather than its technical features.

When selling a product, businesses should focus more on communicating the benefits of a commodity than its features. Customers are more concerned with the advantages they stand to gain by consuming goods or services.

Focusing on benefits allows a business to set high prices and differentiate the product from its competitors. Communicating benefits creates a psychological conviction on customers, making them want to buy the product, thereby increasing sales.

5 0

3 years ago