All categories

3 years ago

These items are taken from the financial statements of Windsor, Inc. at December 31, 2017.

Business

1 answer:

nordsb [41]3 years ago

5 0

Answer:

To make balance sheet we first have to calculate net income/net profit for the year.

Net profit Calculation

Service revenue $ 13,524

Insurance expense ($ 718 )

Depreciation expense ($ 4,876)

Interest expense ($ 2,392)

Profit $ 5,538

Balance Sheet

Asset

Non-Current Asset

Land $56,304

Buildings $97,336

Accumulated depreciation—buildings ($41,952)

Equipment $75,808

Accumulated depreciation—equipment ($17,222)

Total non Current Asset $170,274

Current Asset

Cash $10,893

Accounts receivable $11,592

Prepaid insurance $2,944

Current Asset $25,429

Total Asset $195,703

Equity

Common stock $55,200

Retain Earning (36,801+5,538) $42,339

Total Equity $97,539

Liability

Non-Current Liability

Current Liability

Accounts payable $8,740

Notes payable $86,112

Interest payable $3,312

Total Current Liability $98,164

Total Liability + Equity $195,703

You might be interested in

How many cows did helen keller own??? need this answer ASAP!

Hunter-Best [27]

Answer:

Explanation:

7 0

3 years ago

Read 2 more answers

Hidden Valley Communications, Inc., located in a remote area of Utah, made a special device that was used in 4th generation cell

Cerrena [4.2K]

Answer: Leveraged buyout

Explanation:

leveraged buyout is a system of business concept that describes an acquisition of a company done by debts. Where a company acquires another through borrowing money to match the cost of the company being bought. Company assets are often used as loan for collateral in this case and they are often used to trade the profit of many private equity firms.

This is what the employees at Hidden Valley Communications, Inc. did.

4 0

2 years ago

Skysong Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in ca

adell [148]

Answer:

(a) has commercial substance

Electric wax melter 5,720 (debit)

Accumulated depreciation :old gas model 6,930 (debit)

Old gas model : cost 12,320 (credit)

Profit on exchange of old gas model 320 (credit)

Electric wax melter 11,000 (debit)

Cash 11,000 (debit)

(b) lacks commercial substance

Electric wax melter 5,390 (debit)

Accumulated depreciation :old gas model 6,930 (debit)

Old gas model : cost 12,320 (credit)

Electric wax melter 11,000 (debit)

Cash 11,000 (debit)

Explanation:

In terms of IAS 16, if an exchange of non-monetary item has commercial substance the Asset Acquired is measured at the Fair Value of Asset Given up or Fair Value of Asset Acquired.

However if an exchange of non-monetary item lacks commercial substance the Asset Acquired is measured at Carrying Amount of Asset Given up and there would no be any gain or loss on the exhange of asset given up.

(a) has commercial substance

Electric wax melter 5,720 (debit)

Accumulated depreciation :old gas model 6,930 (debit)

Old gas model : cost 12,320 (credit)

Profit on exchange of old gas model 320 (credit)

Electric wax melter 11,000 (debit)

Cash 11,000 (debit)

(b) lacks commercial substance

Electric wax melter 5,390 (debit)

Accumulated depreciation :old gas model 6,930 (debit)

Old gas model : cost 12,320 (credit)

Electric wax melter 11,000 (debit)

Cash 11,000 (debit)

5 0

3 years ago

Plywood, while not the most pleasing wood to look at, has become an incredibly important building material in house construction

weqwewe [10]

Answer: Option (A)

Explanation:

Plywood is referred to as an element that is produced from several thin layers of the wood coatings which are tightly bonded together. It is mostly describd as an engineered ply i.e. wood derived from group of the manufactured boards that tends to mostly encompasses of the M.D. i.e. the medium-density fibreboard and also the particle board.

7 0

2 years ago

Hurwitz and Padden formed a two-person law firm as a partnership without a written agreement. They shared all proceeds on a fift

AveGali [126]

Options:

a. not entitled to more than 50 percent of the profits, because the parties historically had divided the profits fifty-fifty.

b. not entitled to more than 50 percent of the profits, because it was appropriate to apply partnership principles to an LLC when there was no operating agreement.

c. entitled to more than 50 percent of the profits, because Hurwitz would be unjustly enriched if he received 50 percent of the profits.

d. entitled to more than 50 percent of the profits, because it was the parties' intent to compensate Padden to a greater extent than Hurwitz

Answer:

Explanation:

Since neither the partnership nor the limited liability company had any partnership agreement that stated how Hurwitz and Padden would share the profits generated by the business, then the general rule of partnerships should apply, i.e. profits and losses must be divided equally among all the partners.

6 0

3 years ago