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pochemuha
2 years ago
7

1. Depreciation on the equipment for the month of January is calculated using the straight-line method. The company estimates fu

ture uncollectible accounts. The company determines $4,300 of accounts receivable on January 31 are past due, and 50% of these accounts are estimated to be uncollectible.
2. The remaining accounts receivable on January 31 are not past due, and 2% of these accounts are estimated to be uncollectible. (Hint: Use the January 31 accounts receivable balance calculated in the general ledger.)

3. Accrued interest revenue on notes receivable for January.

4. Unpaid salaries at the end of January are $33,900.

5. Accrued income taxes at the end of January are $10,300.


Record the adjusting entries on January 31 for the above transactionsOn January 1, 2018, the general ledger of ACME Fireworks
Business
1 answer:
Pani-rosa [81]2 years ago
4 0

Answer and explanation:

2)

Date                    Account title                Debit credit

Jan 31    

1                            Depreciation expense 525  

                                  Accumulated

                                  depreciation -equipment          525

2

                                 Bad debt expense         11160

               Allowance for uncollectible account               11160

3                                       interest expense 255  

                    Interest payable (51000*.06*1/12]               255

4                               Income tax expense 13100  

                                       Income tax payable              13100

5                                    Deferred revenue 3100  

                                                 sales revenue             3100

**Depreciation on equipment =[cost-residual value]/useful life

     [16000-4300]/2

      = 5850

Depreciation for one month = 5850*1/12= 487.5

**Accounts receivable at end = 46400 beginning+136000-125500-4900+134000=186000

Estimated uncollectible account at end =[12000*30%]+[(186000-12000)*.04]

          = 3600+ 6960

          = 10560

Unadjusted balance in allowance account =4300-4900=-600 debit

Bad debt expense= estimated uncollectible account at end- unadjusted balance in allowance account

           = 10560 - (-600)

            = 10560+600

                = 11160

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Juicy Beauty manufactures and sells a face cream to small specialty stores in the greater Los Angeles area. It presents the mont
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Answer: Please see explanation column for answer

Explanation:

Recasting  the income statement to emphasize contribution margin.

Juicy Beauty Operating Income Statement, June 2017

Units sold                                                            20,000

Revenues                                                         $200,000

Variable costs(subtract):

Variable manufacturing costs    $110,000

Variable marketing costs             $10,000

Total variable costs                                                 $120,000  

Contribution margin                                                   $80,000

Fixed costs

fixed manufacturing costs                         40,000

Fixed marketing and administrative costs 20,000

Total fixed cost                                                                $60,000

Operating income                                                           $20,000

Working  for income statement above =

Contribution margin = Revenue -Total  variable cost =$200,000- ($110,000 + $10,000) - $80,000

Operating income= Contribution margin - Total fixed cost = $80,000 - $($40,000 +$20,000) -=$20,000

2  The contribution margin percentage and breakeven point in units and revenues for June 2017.

Contribution margin percentage = ,Contribution margin/ Revenue x 100%

= $80,000/ $200,000 x 100= 40 %

Contribution margin per unit = ,Contribution margin/ units sold

                                                   80,000 / 20,000= $4 per unit

Break  even point units  = Total fixed cost/ ,Contribution margin per unit

 = $60,000/ $4=  15,000units

Break even revenue=

we first calculate the selling price = Revenue / units sold = $200,000/ 20,000 =$10

Break even revenue=Break even units x per unit sold = $15,000 x $10 = $150,000.

3. Margin of safety = units sold - break even point unit

20,000 - 15,000 =5000 units

4. If the sales is 16,000 and tax is 30% , Net income is

Units sold                     16,000

Revenue                     $160,000

Contribution margin    $64,000

Total fixed cost           - $60,000

Operation income       $4,000

tax at 30 %                  - $ 1200

Net income                 $2,800

working

Revenue = units sold x sale per unit = 16,000 x $10 = $160,000

Contribution margin = Revenue x contribution margin percentage = $160,000 x 40% = $64,000

Operation income = contribution margin - fixed costs= $64,000 - $60,000 = $4000

Tax = 30% of 4000 = $1200

Net income = $4000 - $1200 = $2,800

3 0
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The adjusted trial balance for Rowdy Profits Corporation reports that its equipment had cost $240,000. For the current year, the
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Explanation:

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Answer: Option B

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Only under the above instances one can have more output than the previous level without increasing the input.

Hence from the above we can conclude that the correct option is B.

3 0
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