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2 years ago

During 2017, its first year of operations as a delivery service, Concord Corporation entered into the following transactions.

Business

1 answer:

AleksandrR [38]2 years ago

4 0

Answer:

1. Issued shares of common stock to investors in exchange for $181,000 in cash - Asset (increase) = Liabilities (NA) + Equity (increase)

2. Borrowed $54,000 by issuing bonds - Asset (increase) = Liabilities (increase) + Equity (NA)

3. Purchased delivery trucks for $60,000 cash - Asset (No effect) = Liabilities (NA) + Equity (NA)

4. Received $17,000 from customers for services performed - Asset (increase) = Liabilities (NA) + Equity (increase)

5. Purchased supplies for $5,800 on account - Asset (increase) = Liabilities (increase) + Equity (NA)

6. Paid rent of $4,800 - Asset (decrease) = Liabilities (NA) + Equity (decrease)

7. Performed services on account for $11,000 - Asset (increase) = Liabilities (NA) + Equity (increase)

8. Paid salaries of $29,300 - Asset (decrease) = Liabilities (NA) + Equity (decrease)

9. Paid a dividend of $10,700 to shareholders - Asset (decrease) = Liabilities (NA) + Equity (decrease)

Explanation:

An accounting equation is usually expressed by this formula: Asset = Liabilities + Equity.

The issued shares of common stock increases Cash (Asset) by $181,000 and also increases Common stock (Equity) by the same amount.
The bonds payable increases Liabilities by $54,000 and Cash by the same amount.
The purchase of delivery truck has no effect since there is decrease in Cash and increase in Fixed asset by the same amount - both transactions affect asset.
The receipt from customers increases Cash and Sales revenue, which ultimately impacts Retained earnings (Equity).
The purchase of supplies on account means there would be an increase in Supplies (Asset) and increase in accounts payable (Liabilities).
If the rent paid is not a prepayment, it would be a reduction in Cash (Asset) and increase in Operating expenses (which ultimately affects Equity).
Services performed on account increases Sales revenue (which invariably impacts Equity) and increases Accounts receivable (Asset).
Payment of salaries is outflow of Cash (Asset reduced) and increase in Salaries expenses. This reduces the net income by $29,300.
Dividend of $10,700 causes an outflow of Cash (Asset) and reduction in Retained earnings (Equity).

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In the past year at Carter’s Material Handling Equipment Manufacturing Company, eight employees experienced minor injuries (cuts

larisa86 [58]

Answer:

The performance problem to minor burns will be mainly psychological.

Explanation:

The staff involved will most likely exhibit a reduction in speed at which he or she executed the task which led to the burn.

If the personnel is in a chain of production where their own activity feeds others, it may translate to the increase in the time taken to achieve results.

One solution to this is to critically examine the production process and eliminate the cause of the accident if any.

If the cause of the incident was as a result of carelessness on the part of the staff, then he or she might have to be rescheduled to another department or unit where their current mindset will not stall the overall performance of the team/production line.

Cheers!

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3 years ago

The journal entry a company uses to record accrued vacation privileges for its employees at the end of the year is:________.

Lilit [14]

Answer:

C. debit Vacation Pay Expense; credit Vacation Pay Payable

Explanation:

In as much as the name implies, debit vacation pay expense of the said worker is moved to his/her credit vacation pay payable. And cases like this comes up when the said worker is about to go on a vacation. This vacation pay expense is been considered a liability because it causes depreciation in equity.

Therefore accrued vacation privileges of an employer are times in which a worker has to go on a free working period that in some cases can be a vacation which deals with a debit Vacation Pay Expense; credit Vacation Pay Payable by the end of the year.

6 0

3 years ago

Coatney Incorporated has provided the following data for the month of October. There were no beginning inventories; consequently

PilotLPTM [1.2K]

Answer:

$33,410

Explanation:

The computation of Ending finished goods inventory after allocation of underapplied or overapplied manufacturing overhead is shown below:-

Ending finished goods inventory after allocation of overapplied manufacturing overhead

= (Total of finished goods - (Manufacturing overhead applied of finished goods ÷ Total of Manufacturing overhead applied) × Overapplied amount

= ($34,530 - ($6,240 ÷ $39,000) × $7,000)

= $34,530 - $1,120

= $33,410

4 0

3 years ago

Satchel Inc purchases 10,000 shares of its own previously issued $10 par common stock for $290,000. Assuming the shares are held

BaLLatris [955]

Answer:

a. No effect

b. Decreases in total asset

c. No effect

d. Decreases in total stockholder equity

Explanation:

Given that

Number of shares purchased = 10,000 shares

Par value = $10

Common stock = $290,000

By using the above information, we can interpret that

a. There is no effect on the net income

b. The total asset is decreased by $290,000 as it reduces the cash balance for $290,000

c. There is no effect on the total paid-in-capital

d. Total stockholder equity is decreased by $290,000

We assume that treasury stock is accounted for using the cash method

5 0

2 years ago

proud family inc., produces a variety of products. the average cost of one widget using ABC costing is closets to

olga55 [171]

Answer:

b. $156.59

Explanation:

Note: The full question is attached as picture below

As the company is under traditional costing system and the allocation base is machine hours.

Variable OH per hour = Total variable cost / Total machine hours

Variable OH per hour = 513,600/32,000

Variable OH per hour = $16.05

Average cost of producing one unit of widget = Direct material per hour + Direct labor per hour + Variable OH per hour

= $95.52 + $51.04 + ($16.05*750/1200)

= $95.52 + $51.04 + $10.03

= $156.59

4 0

2 years ago