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expeople1 [14]
3 years ago
14

Pak Co.'s professional fees expense account had a balance of $82,000 at December 31, Year 1, before considering year-end adjustm

ents relating to the following: Consultants were hired for a special project at a total fee not to exceed $65,000. Pak has recorded $55,000 of this fee based on billings for work performed in Year 1. The attorney's letter requested by the auditors dated January 28, Year 2, indicated that legal fees of $6,000 were billed on January 15, Year 2 for work performed in November Year 1 and unbilled fees for December Year 1 were $7,000. What amount should Pak report for professional fees expense for the year ended December 31, Year 1
Business
1 answer:
Gelneren [198K]3 years ago
8 0

Answer:

$95,000

Explanation:

Given that,

Professional fees expense balance = $82,000

Billed amount for November, Year 1 = $6,000

Unbilled fees for Year 1 = $7,000

Professional fees expense for the year ended December 31, Year 1:

= Professional fees expense balance + Billed amount for November, Year 1 + Unbilled fees for Year 1

= $82,000 + $6,000 + $7,000

= $95,000

Therefore, the amount should Pak report for professional fees expense for the year ended December 31, Year 1 is $95,000.

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Last year, DJ's Soda Fountains, Inc. reported an ROE = 27 percent. The firm's debt ratio was 50 percent, sales were $9 million,
notsponge [240]

Answer:

b. $1.82m

Explanation:

Capital Intensity ratio = Total aasets / sales

1.5 = Total Assets / 9m

Total Assets = 9m x 1.5 = 13.5

ROE = Total Income / Shareholders equity

27% = Total Income / (13.5 x 50%)

27% = Total Income / 6.75

Total Income = 27% x 6.75

Total Income = 1.8225

Total Income = 1.82 (Rounded)

The correct option is b. $1.82m.

7 0
3 years ago
In a period of rising prices, the inventory method that produces the lowest ending inventory is the:
Dmitry [639]

Answer:

LIFO Periodic method

Explanation:

The LIFO means Last In First Out this means that item that have been stocked today would be sold first although there’s still some inventory from previous periods.

Using LIFO would result in lower ending inventory because closing inventory would be valued at low price which they had been bought assuming that there’s now a hick in price and goods in the warehouse were stocked when prices were low.

LIFO is used for the manipulation of profit.

8 0
4 years ago
Scenario 10 Suppose that in Country A, one worker per day can produce either 120 units of food or 50 units of capital goods; whi
aleksandrvk [35]

Answer:

1) country A has a comparative advantage in production of capital goods.

2) for country A 24 units of food can be traded for 10 units of capital goods,

for country B 30 units of food can be traded for 10 units of capital goods.

Explanation:

country A has a comparative advantage in production of capital goods because they have been able to produce more capital goods with the same amount of input (worker) than country B.

For country A, 120 units of food = 50 units of capital goods, therefore

10 units of capital good will be traded for (120 x 10)/50 = 24 units of food.

for country B 90 units of food is equivalent to 30 units of capital goods, therefore,

(90 x 10)/30 = 30 units of food

5 0
4 years ago
Contribution margin is first used to cover expenses. Once the break-even point has been reached, contribution margin becomes:.
oksano4ka [1.4K]

It should be noted that the contribution margin is first used to cover fixed expenses.

<h3>What is contribution margin?</h3>

The contribution margin simply shows you the aggregate amount of revenue that is available after variable costs to cover fixed expenses.

Contribution margin is first used to cover fixed expenses. Once the break-even point has been reached, the contribution margin becomes profit.

Learn more about contribution margin on:

brainly.com/question/24962994

4 0
2 years ago
If you deposit $100 of currency into a demand deposit at a bank, this action by itself
Dahasolnce [82]

Answer:

A) Does not change the money supply.

Explanation:

Demand deposits change the monetary base, because the monetary base equals currency plus demand deposits.

However, in itself, a demand deposit does not change the money supply. For the change in the money supply to occur, the bank must loan out some of the money in the deposit.

8 0
4 years ago
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