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3 years ago

The following information relates to Sheridan Company for the year 2022.

Business

1 answer:

aliina [53]3 years ago

5 0

Answer:

a. Computation of net income

Particulars Amount

Service revenue $52,500

Less: Expenses

Salaries and wages expenses ($23,520)

Utilities expense ($2,600)

Rent expense ($8,740)

Advertising expense ($1,510)

Net Income $16,130

b. Computation of comprehensive income statement

Particulars Amount

Net Income $16,130

Add: Other Comprehensive Income $380

Comprehensive Income $16,470

Note: Dividend will not be included as it forms part of Income statement

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The Richmond Corporation uses the weighted-average method in its process costing system. The company has only a single processin

jekas [21]

Answer:

$142,524

Explanation:

The computation of the total cost assigned to the ending work in process

inventory is shown below:

As we know that

Total cost = Material + Labor

where,

Material = 21,400 units × 100% × $3.60 = $77,040

And,

Labor = 21,400 units × 60% × $5.10 = 65,484

So, the total cost is $142,524

We simply added material and the labor cost according to their completion percentage and its cost per equivalent units

7 0

3 years ago

In March 2021, the Phillips Tool Company signed two purchase commitments. The first commitment requires Phillips to purchase inv

xeze [42]

Answer:

Journal entries

Date Account title and explanation PR. No. Debit ($) Credit ($)

June 15,2021 Purchases $85,500

Loss on purchase commitment $15,000

Cash $100,000

(To record the payment for the loss on

purchase commitment)

June 30,2021 Estimated loss on purchase

commitment $10,600

Estimated liability on purchase

commitment $10,600

(To record the loss on purchase commitment)

Aug 30,2021 Purchases $120,500

Loss on purchase commitment $19,900

Estimated liability on purchase

commitment $10,600

Cash $151,000

(To record the payment for the loss on purchase commitment)

Explanation:

For June 15, Loss on purchase commitment = Signed value of inventory - Market value of inventory = $100,000 - $85,500 = $14,500

For June 30, Loss on purchase commitment = Signed value of inventory - Market value of inventory = $151,000 - $140,400 = $10,600

For Aug 30, Loss on purchase commitment = Market price of inventory at June 30 - Market value of inventory at August 30 = $140,400 - $120,500 = $19,900

4 0

3 years ago

Hibiscus Co has a debt-equity ratio of 0.80. The firm is analyzing a new project which requires an initial cash outlay of $300,0

morpeh [17]

Answer:

$321,600

Explanation:

debt equity ratio = debt / equity

since the debt to equity is 0.8, that means that for every $ invested from equity, $0.80 will be borrowed. If the new project requires an initial cash outlay of $300,000:

then $300,000 / $1.80 = $166,667 will be new equity
and $133,333 will be new debt

total cost of initial outlay including flotation costs = ($166,667 x 1.09) + ($133,333 x 1.0495) = $181,667 + $139,933 = $321,600

flotation costs include all the costs associated with issuing new stocks or taking new debt.

8 0

4 years ago

Butcher Co. sold 10,000 toys in Year4 for $20 each. The company expects that 5% of the toys will be returned under warranty for

algol13

Answer:

Butcher's warranty expense for Year 4 is $10,000

Explanation:

Since in the question, it is given that 5% of the toys are returned, and the warranty expenses should be charged on the replacement service or repair service. Even, the question has said the same.

So, the warranty expense computation is shown below:

= Sale units of toys × selling price per toy × returned percentage

= 10,000 toys × $20 × 5%

= $10,000

The warranty obligation part is irrelevant. Thus, we don't consider in the computation part. Therefore, it is ignored.

Hence, Butcher's warranty expense for Year 4 is $10,000

4 0

3 years ago

Which of these is a recent technology that a business information manager might evaluate and recommend to their boss

Vlad1618 [11]

I think it’s A. AI not sure tho

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2 years ago