All categories

3 years ago

The Marchetti Soup Company entered into the following transactions during the month of June:_________.

Business

1 answer:

Delvig [45]3 years ago

8 0

Answer: Please find answers in the explanation column

Explanation:

a.) journal entry to record purchase of inventory on account by the company

Date Accounts Debit Credit

June Inventory $245,000

Accounts payable $245,000

b.) journal entry to record for the payment of salaries to the employees

Date Accounts Debit Credit

June Salaries and wages expenses $60,000

Cash $60,000

c1.) journal entry to record the sale of merchandise to customers

Date Accounts Debit Credit

June Cash $300,000

Sales Revenue $300,000

c2.) journal entry to record the cost involved in the sale of merchandise to customers

Date Accounts Debit Credit

June Cost of goods sold $160,000

inventory $160,000

d.) journal entry to record the cash collected from the customers

Date Accounts Debit Credit

June Cash $280,000

Account receivable $280,000

e.) journal entry to record the payment of cash to the suppliers of inventory

Date Accounts Debit Credit

June Account payable $225,000

Cash $225,000

You might be interested in

Treasures, Inc. repurchased 1,000 shares of its $1 par value common stock for $100,000. The journal entry to record this transac

Anna007 [38]

The journal entry to record this transaction includes a debit will always be to cash.

What does common stock include?

Common stock is a security that represents ownership in a corporation. In a liquidation, common stockholders receive whatever assets remain after creditors, bondholders, and preferred stockholders are paid. There are different varieties of stocks traded in the market.

What does common stock mean in a balance sheet?

Common stocks are the number of shares of a company and are found on the balance sheet. Common Stockholders are the company's owners; they have voting rights and earn dividends. They can either be company promoters, insiders, or outside investors.

How is treasury stock reported in the financial statements?

Under the cost method of recording treasury stock, the cost of treasury stock is reported at the end of the Stockholders' Equity section of the balance sheet. Treasury stock will be a deduction from the amounts in Stockholders' Equity.

What is the journal entry for treasury stock?

when shares are acquired, the Treasury Stock account is debited and the cash account is credited. When the shares are reissued, cash is debited for the proceeds and Treasury Stock is credited for the amount paid out originally.

Learn more about journal entry :

brainly.com/question/14279491

#SPJ4

7 0

2 years ago

Chang Industries has 2,000 defective units of product that have already cost $14 each to produce. A salvage company will purchas

sleet_krkn [62]

Answer:

$20,000 income

Explanation:

Computation

Particulars Amount

Sale Value of corrected product= $42,000.00

(2,000 * 21)

Less : Costs of Correction = ($12,000.00)

(2000 * 6)

Less : Opportunity costs - Salvage Value Lost = ($10,000.00)

(2,000 * 5)

Incremental Revenue= $20,000.00

4 0

3 years ago

Two investment advisers are comparing performance. One averaged a 19% return and the other a 16% return. However, the beta for t

finlep [7]

Answer: Adviser B is the superior stock selector.

Explanation:

For the comparision between the two investment advisers, the Jenson's Alpha will be utilized.

Jenson's Alpha:

= Portfolio Actual Return - CAPM(Benchmark Portfolio Return)

T Bill Rate(Risk free rate) = 6%

Market return(E(Em) = 14%

Beta of Investment Adviser A = 1.5

Beta of Investment Adviser B = 1

For Adviser A:

CAPM = Risk free return + Beta ( E(Rm) - Risk free return)

CAPM(Benchmark Portfolio) = 6 + 1.5 (14-6)

= 6 + 12

= 18%

Actual Return = 19%

Jenson's Alpha = 19% - 18% = 1%

For Adviser B:

CAPM = Risk free return + Beta ( E(Rm) - Risk free return)

CAPM(Benchmark Portfolio) = 6 + 1(14-6) = 6 + 1(8) = 14%

Actual Return = 16%

Jenson's Alpha = 16% - 14% = 2%

Adviser B is a better selector because he has a larger alpha of 2% compared to Adviser A who has 1%.

T Bill Rate(Risk free rate) = 3%

Market return(E(Rm) = 15%

Beta of Investment Adviser A = 1.5

Beta of Investment Adviser B = 1

For Adviser A:

CAPM = Risk free return + Beta ( E(Rm) - Risk free return)

CAPM(Benchmark Portfolio) = 3 + 1.5 (15-3)

= 3 + 18

= 21%

Actual Return = 19%

Jenson's Alpha = 19% - 21% = -2%

For Adviser B:

CAPM = Risk free return + Beta ( E(Rm) - Risk free return)

CAPM(Benchmark Portfolio) = 3 + 1(15-3) = 3 + 1(12) = 15%

Actual Return = 16%

Jenson's Alpha = 16% - 15% = 1%

Given the changes, Adviser B is still the better selector because he has a larger alpha of 1% compared to Adviser A who has -2%.

7 0

3 years ago

The Rivoli Company has no debt outstanding, and its financial position is given by the following data:

anzhelika [568]

Answer:

Intrinsic value is $45

Explanation:

The starting point to determining Rivoli Company intrinsic value is to compute the earning after tax as shown below:

Earnings after tax=earning before tax*(1-tax rate)

earnings before tax is $600,000

tax rate

earnings after tax=$600,000*(1-0.25)

=$600,000*0.75

=$450,000

Then we need to compute earnings per share;

Earnings per shares=earnings after tax/weighted average number of shares

=$450,000/100,000

=$4.5

Intrinsic value=earnings per share/cost of equity

cost of equity is 10%

intrinsic value=$4.5/10%

=$45

7 0

3 years ago

Which of the following best defines tangible products? They refer to the physical entities or services that are offered to a buy

Len [333]

Answer: They refers to the physical entities or service that are offered to a buyer .

Explanation:

The statement written above best defines the tangible commodities. A physical good that can be distinguished by touch. Examples of these are automobile, confectionery items such as beverages etc, personal computers, mobiles, etc. Many business organization are also required to dispense packaging for these commodities in order to provide security during their transportation.

4 0

3 years ago