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tamaranim1 [39]
3 years ago
13

The following is the general ledger for ABC Company as of December 31, 20X1. Use this information to answer questions (1) throug

h (4).
ABC Company

General Ledger

As of December 31, 20X1

Amount

Assets

Cash

$29,400

Accounts receivable

8,100

Supplies

4,900

Prepaid rent

20,200

Equipment (net)

63,800

Liabilities

Accounts payable

$ 6,300

Salaries payable

4,000

Interest payable

1,100

Utilities payable

3,700

Bonds payable

38,400

Stockholders' equity

Common stock

$60,900

Retained earnings

0

Dividends

2,100

Revenues

Sales revenue

$54,200

Interest revenue

1,400

Expenses

Cost of goods sold

$15,100

Salaries expense

7,100

Rent expense

4,900

Supplies expense

1,300

Utilities expense

4,800

Depreciation expense

2,500

Interest expense

2,100

Income tax expense

3,700

What is the amount of gross profit to be reported on ABC Company’s 12/31/X1 income statement?

$40,500

$14,100

$39,100

$17,800

What is the amount of operating income (EBIT) to be reported on ABC Company’s 12/31/X1 income statement?

$36,100

$18,500

$14,800

$14,100

What is the amount of earnings before taxes (EBT) to be reported on ABC Company’s 12/31/X1 income statement?

$15,000

$17,800

$12,000

$18,500

What is the amount of net income to be reported on ABC Company’s 12/31/X1 income statement?

$17,800

$12,000

$14,100

$18,500
Business
1 answer:
sweet [91]3 years ago
5 0

Answer:

What is the amount of gross profit to be reported on ABC Company’s 12/31/X1 income statement?

Gross Profit = Sales Revenue - Cost of Goods Sold

                    = $54,200 - 15,100

                    = $39,100

What is the amount of operating income (EBIT) to be reported on ABC Company’s 12/31/X1 income statement?

EBIT = Sales Revenue - Cost of Goods Sold - Operating Expenses

We have the following operating expenses:

Salaries expense $7,100

Rent expense = $4,900

Supplies expense = $1,300

Utilities expense = $4,800

Depreciation expense = $2,500

Total operating expenses = $20,600

Now we substract this figure from the gross profit we found above

EBIT = $39,100 - 20,600

        = $18,500

What is the amount of earnings before taxes (EBT) to be reported on ABC Company’s 12/31/X1 income statement?

EBT = Sales Revenues + Interest Revenue - Cost of Goods Sold - Operating Expenses - Non-Operating Expenses.

EBT = $54,200 + $1,400 - $15,100 - $20,600 - $2,100

      = $17,800

What is the amount of net income to be reported on ABC Company’s 12/31/X1 income statement?

Net Income = Sales Revenues + Interest Revenue - Cost of Goods Sold - Operating Expenses - Non-Operating Expenses - Tax Expense

We simply substract the Tax Expense ($3,700), from the EBT.

Net Income = $17,800 - $3,700

                   = $14,100

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Answer:

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3 years ago
org303 According to the textbook, the most important reason for organizations to rely on research is that it ultimately
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Answer:

Explanation:

The most important reason for organizations to rely on research is that it ultimately provides the organization with insight on how a specific decision will perform in the target market and what effects it will have on the company. This is because research provides valuable information such as a target population's interests, hobbies, spending behaviors, needs, likes/dislikes, etc. All of which are factors that help determine if that population will buy a certain product and increase the organizations revenue.

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If a patient falls in your facility, what preventive measure would you take in the future to prevent patient falls in your
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Explanation:

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The journal entry a company records for the issuance of bonds when the contract rate is less than the market rate would be______
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Answer:

b. debit Cash and Discount on Bonds Payable, credit Bonds Payable.

Explanation:

Since the contract rate is less than the market rate, the bond is issued at a discount. And, the journal entry is shown below:

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Discount on bonds payable A/c XXXXX

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When the bond is issued at a discount, we debited the cash account and  the discount on bonds payable and credited the bonds payable account

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Units-of-Production Depreciation Irons Delivery Inc. purchased a new delivery truck for $42,000 on January 1, 2019. The truck is
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Depreciation Expense  for 2019 is  $10,800 while Depreciation Expense for 2020 is $9,720

Rate of Depreciation = (Cost - Residual Value) ÷useful life  

                                = ($42,000 - $2,000) ÷ 150,000 miles  

                                 = $0.27

Depreciation Expense = Rate of Depreciation x unit of miles during the period

So,  

Depreciation Expense  for 2019 = $0.27 x 40, 000  

                                                =   $10,800

Depreciation Expense for 2020 = $0.27 x 36,000  

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Journal entries to record depreciation expense

Date       Account titles and explanation      Debit                 Credit

2019          Depreciation Expense                   $10,800

    Accumulated Depreciation                                                $10,800

Date       Account titles and explanation      Debit                 Credit

2020        Depreciation Expense                   $9,720

    Accumulated Depreciation                                                $9,720

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