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Nataly_w [17]
3 years ago
15

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, a

nd Roy. Year 1 Year 2 Amounts billed to clients for services rendered $ 184,000 $ 234,000 Cash collected from clients 167,000 197,000 Cash disbursements Salaries paid to employees for services rendered during the year 97,000 107,000 Utilities 33,500 47,000 Purchase of insurance policy 62,100 0 In addition, you learn that the firm incurred utility costs of $38,500 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.Prepare an income statement for each year according to the accrual accounting model.
Business
1 answer:
NARA [144]3 years ago
8 0

Answer:

Answer in Attachment

Explanation:

Download xls
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What would you predict if you had first mixed the catalase (100%) in serial solutions of varying phs of 3, 5, 7, 9, 11? what wou
lana [24]
<span>The optium pH level would be an average of these pHs, which is 7. 7 is also the mean, but the solutions of varying pH would eventually neutralize to 7.</span>
5 0
3 years ago
On November 30, 2013, Piani Incorporated purchased for cash of $25 per share all 400,000 shares of the outstanding common stock
Alenkinab [10]

Answer:

b. 800,000

Explanation:

Step 1; Calcualate Excess Valuation of Surge in Piani's Consolidated Balance Sheet

Surge's balance sheet as at November 30, 2013 showed a book value of $8,000,000

However, Piani Purchased 400,000 Shares of Surge's  Outstanding Common Stock at $25 each. The total Cost therefore to Piani is

$25× 400,000= $10,000,000

The difference between Surge's book value and Piani's valuation of Surge is

Surge's value in Piani- Surge's book value

$10,000,000-$8,000,000= $2,000,000

Step 2: Calculate the Difference between the Excess Property Fair Value and the Step One Total to arrive at the Goodwill

Out of the $2,000,000; $1,200,000 represents the excess of the fair value of Surge's  Property, Plant and Equipment on November 30, 2013.

The Goodwill Value Therefore is

The difference in Surge's Stock Valuation- Excess Fair Value of Surge's Property, Plant and Equipment

= $2,000,000-$1, 200,000

=$800,000

7 0
3 years ago
Craigmont company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead cos
Ivanshal [37]
Conversion cost is defined as the sum of direct labor costs and manufacturing overhead costs. It is the manufacturing cost needed to convert raw materials to a product. From the information given above, the conversion cost is the summation of direct material costs, direct labor costs and factory overhead costs. 
$3000,000 + 7,000,000 + 5,000,000 = 15,000,000
Therefore, the conversion cost is $15,000,000.
3 0
3 years ago
Company Expenses Total Assets Net Income Total Liabilities Dreamworks $ 22,000 $ 40,000 $ 19,000 $ 30,000 Pixar 67,000 150,000 2
Luda [366]

Answer:

                      Expenses   Total Assets   Net Income   Total Liabilities

Dreamworks   $22,000      $40,000         $19,000         $30,000

Pixar                $67,000      $150,000        $27,000        $147,000

Universal         $12,000      $68,000          $5,000          $17,000

<u>Debt ratio:</u> Total Debt / Total Assets

Dreamworks = $30,000 / $40,000 = 0.75

Pixar = $147,000 / $150,000 = 0.98

Universal = $17,000 / $68,000 = 0.25

<u>Financial Leverage:</u> Asset / Equity

Dreamworks = $40,000 / (40,000-30,0000) = 4

Pixar = $150,000 / (150,000-147,000) = 50

Universal = $68,000 / (68,000-17000) = 1.33

Pixar Has the most financial leverage.

7 0
3 years ago
At the beginning of the year, Vendors, Inc., had owners' equity of $50,435. During the year, net income was $6,675 and the compa
iogann1982 [59]

Answer:

<em>Total cash flow to stockholders   13,320‬</em>

<em />

Explanation:

We should consider the actual cash paid by the firm in favor of the stockholders. Net income doesn't represent cashflow is the amount earned by the company but a portion of it is reinvested or hold by the firm. What it matter for cashflwo arethe cash dividends and treasury stock as these are actual cashflow in going into the stockholders pockets

from dividends                               4,535

from stock repurchase                <u>   8,785   </u>

<em>Total cash flow to stockholders   13,320‬</em>

8 0
3 years ago
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