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svlad2 [7]
3 years ago
8

Carmen Camry operates a consulting firm called Help Today, which began operations on August 1. On August 31, the company’s recor

ds show the following selected accounts and amounts for the month of August. Use this information to prepare an August income statement for the business.Cash $ 25,360 Dividends $6,000Accounts receivable 22,360 Consulting fees earned 27,000Office supplies 5,250 Rent expense 9,550Land 44,000 Salaries expense 5,600Office equipment 20,000 Telephone expense 860Accounts payable 10,500 Miscellaneous expenses 520Common stock 102,000
Business
1 answer:
Delicious77 [7]3 years ago
5 0

Answer:

Income statement for the year XXXX ended August 31th

Consulting fees earned 27,000

Rent expense                    9,550

Salaries expense              5,600

Telephone expense             860

Miscellaneous expenses <u>    520  </u>

Total expenses                 16,530

Net income                      10,470

Explanation:

To solve for net income we have to subtract revenue for expenses

the expenses will have the word expense in their name,

Is important to notice dividends are not expense as they represent the distribution of earned to the stockholders or owners of the company. It doesnt' represent an expense associate with the outgoing business activities.

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Master Corp. issued 8%, $80,000 bonds on February 1, 2020. The bonds pay interest semiannually each July 31 and January 31 and w
Archy [21]

Answer:

Master Corp.

a. Journal Entries:

1. Feb. 1, 2020:

Debit Cash $85,685

Credit 8% Bonds Payable $80,000

Credit Bonds Premium $5,685

To record the issuance of bonds at premium.

2. July 31, 2020:

Debit Interest Expense $2,999

Debit Bonds Premium $201

Credit Cash $3,200

To record the first payment of interest on the bonds and amortization of premium.

December 31, 2020:

Debit Interest Expense $2,493

Debit Bonds Premium $174

Credit Interest Payable $2,667

To accrue interest expense and bonds payable.

4. January 31, 2021:

Debit Interest Expense $499

Debit Bonds Premium $34

Debit Interest Payable $2,667

Credit Cash $3,200

To record the payment of interest.

b. Balance Sheet as of December 31, 2020:

Liabilities:

Bonds Payable $80,000

Bonds Premium $5,310 ($5,685 - 201 - 174)

Income Statement for the year ended December 31, 2020:

Interest Expense $5,492

c. The total cost of financing the bonds for full term is $58,315.04.

d. The total cost of financing is $58,315.04

e. Interest expense would have remained the same.

f. The interest expense would have remained the same as it is not dependent on the premium amortization method used.

Explanation:

a) Data and Calculations:

February 1, 2020:

Face value of issued bonds = $80,000

Price of issued bonds =          $85,685

Premium on bonds =                $5,685

N (# of periods)  20

I/Y (Interest per year)  8

PMT (Periodic Payment) = $ 3,200  

Results:

PV = $85,684.96

Sum of all periodic payments = $64,000.00

Total Interest $58,315.04

July 31, 2020:

Cash payment =   $3,200 ($80,000 * 4%)

Interest Expense    2,999 ($85,685 * 3.5%)

Premium amortized $201

December 31, 2020:

Interest Payable =   $2,667 ($80,000 * 4% * 5/6)

Interest expense = $2,493

Premium amortized   $174

January 31, 2021:

Interest Expense $499

Bonds Premium $34

Interest Payable $2,667

5 0
3 years ago
The corporate charter of Luney Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first
kakasveta [241]

Answer:

Luney Corporation is authorized to sell 100000 shares

luney has issued =  70000 shares

luney has shares outstanding 63000

Explanation:

given data

maximum shares of common stock = 100,000

sold shares =  70,000

reacquired = 7,000

solution

we know here 100000 shares are mention in charter of the company

so Luney Corporation is authorized to sell 100000 shares

and  luney has issued =  70000 shares

so here  

we know that

luney has shares outstanding  = 70000 - 7000

luney has shares outstanding 63000

7 0
3 years ago
A friend offers you a Coke, a Dr. Pepper, or a 7-Up. You don't like Coke, so after some thought, you take the Dr. Pepper. What i
Leokris [45]
<span>An opportunity cost is the value or benefit that must be given up to acquire or achieve something else. In this case whatever you choose (Coke, Dr.Pepper or 7-UP) everything would be free , at zero cost. This means that the opportunity cost in this case is zero, because the drink is free.</span>
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3 years ago
Following ethical standards that have been outlined by the company you work for are___standards(apex)
Mashcka [7]

Answer:

D. organizational

Explanation:

You must focus on both your personal life and profession. Just got the question right on apex.

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Answer:

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3 years ago
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