Answer:
a) dollar amount of the gross profit = 17000
b) dollar amount of the income from operations = 11700
c) dollar amount of the income before income tax = 11900
d) dollar amount of the net income = 8400
Explanation:
(a) Gross profit:
= Sales - Cost of goods sold
= 50,000 - 33,000
= $17,000
(b) Income from operation:
= Gross profit - Bad debt expenses - other operating expenses - Selling and administrative expenses
= $17,000 - $100 - $500 - $4,700
= $11,700
(c) Income before income tax:
= Income from operation + Interest Income and Other Non-operating Revenues
= $11,700 + $200
= $11,900
(d) Net income:
= Income before income tax - Income tax
= $11,900 - $3,500
= $8,400
Answer:
The answer is: $4,522
Explanation:
Since Stanford doesn't operate in the restaurant business and doesn't buy the restaurant, he cannot deduct any amount for investigation costs relating to the restaurant.
Stanford doesn't operate in the bakery business but he bought the bakery, so he can deduct up to $5,000 (before amortization) for investigation costs related to the bakery. But those $5,000 are reduced by every dollar he spent over $50,000, so he can only deduct $4,000 [= $5,000 - ($51,000 - $50,000)].
The remaining $47,000 (= $51,000 - $4,000) can be amortized over 180 months, which equals $261 per month (= $47,000 / 180 months).
Since he bought the restaurant in November, he can deduct two months: $261 per month x 2 months = $522
So his total deduction for investigation expenses is = $4,000 + $522 = $4,522
Answer:
See below
Explanation:
Balance sheet as of December 31, 2022.
Current assets
Account receivable $2,000
Cash $6,280
Supplies $3,790
Total $12,070
Fixed assets
Equipment net $110,300
Inventory $2,810
Total $113,110
Total assets = $12,070 + $113,110 = $125,180
Current liabilities
Accounts payable $3,900
Interest payable $500
Salaries and wages payable $740
Notes payable $32,500
Total $37,640
Financed by;
Common Stock $52,500
Total liabilities + Common stock
= $37,640 + $52,500
= $90,140
Answer:
Actual overhead= $153,400
Explanation:
Giving the following information:
During the year the company's Finished Goods inventory account was debited for $360,000 and credited for $338,800. The ending balance in the Finished Goods inventory account was $36,600.
At the end of the year:
Manufacturing overhead was overapplied by $15,900.
If the applied manufacturing overhead was $169,300.
Because the manufacturing overhead was overapplied, we need to subtract from the applied overhead to determine the actual overhead.
Actual overhead= applied overhead - overapplied overhead
Actual overhead= 169300 - 15900= $153,400
