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anyanavicka [17]
2 years ago
14

Big Tommy Corporation is a local grocery store organized seven years ago as a corporation. The bookkeeper prepared the following

statement at year-end (assume that all amounts are correct, but note the incorrect format): BIG TOMMY CORPORATION Profit and Loss December 31 Debit Credit Net Sales $ 404,000 Cost of Goods Sold $ 279,000 Salaries and Wages Expense 58,000 Office Expenses 16,000 Travel Expenses 1,000 Income Tax Expense 15,000 Net Profit 35,000 Totals $ 404,000 $ 404,000 PA6-5 Part 1 Required: Prepare a properly formatted multistep income statement that would be used for external reporting purposes.
Business
1 answer:
Natali [406]2 years ago
7 0

Answer:

                        Big Tommy Corporation

      Profit and Loss for the year ended December 31

Sales                                                                         404,000

Cost of Goods Sold                                                 279,000

Gross Profit                                                               125,000

<em>Operating Expenses:</em>

Salaries and Wages Expense                   58,000

Office Expenses                                         16,000

Travel Expenses                                           1,000    75,000

Operating Income:                                                     50,000

Non-Operating Expenses

Income Tax Expense                                 15,000     15,000

Net Income                                                                 35,000

Explanation:

Multistep income statement makes a clear distinction on Operating Incomes and Expenses and Non-Operating Incomes and Expenses

Operating income is Profit generated from Primary activities of the company

Non-Operating Incomes and Expenses do not relate to the Primary activities of the firm.They occur as a result of secondary activities.

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Janson Corporation Co.'s trial balance included the following account balances at December 31, 2021: Accounts receivable $14,000
11111nata11111 [884]

Answer:

$88,450 should be included in the current assets section of Janson’s December 31, 2021, balance sheet

Explanation:

Current Assets: The current assets are those assets which are converted into cash within one year.

Examples - Accounts receivable, inventory, prepaid insurance, cash, etc.

The computation of the total current assets is shown below:

= Accounts receivable + Inventory + Prepaid insurance + Short term investment

= $14,000 + $40,000 + $3,650 + $30,800

= $88,450

The amount of prepaid insurance which is given in the question is for two years. We have to compute for one year so we divide the total amount by number of years

= $7,300 ÷ 2 years

= $3,650

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3 years ago
Which two advantages do home buyers have over renters?
Snowcat [4.5K]
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5 0
3 years ago
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Roberta Whitman has recently been hired by Jackson Pharmaceuticals as the senior vicepresident of human resources. Jackson Pharm
butalik [34]

Answer:

Outside vendors specializing in all aspects of benefits administration would provide improved support to the firm's employees.

Explanation:

Shared services HR teams provide specialized support of day-to-day transactional HR activities to the company's employees by focusing on using centralized call centers and outsourcing arrangements with vendors (like benefits providers). By utilizing HR shared services, Whitman and the other managers can now devote more time to other HR matters while improving benefits enrollment and coverage by deferring those questions to benefits specialists.

3 0
2 years ago
Last year, a women's professional organization made two small-business loans totaling $23,000 to young women beginning their own
Fittoniya [83]

Answer:

a. Loan amount at 9%=5,000

b. Loan amount at 11%=$18,000

Explanation:

To determine the amount of each loan amount, first we need to derive the following equations;

a.

<em>Step 1: Determine loan amount at 9%</em>

Total Interest=Interest from 9%+interest from 11%

where;

Total interest=$2,430

Interest from 9%=principal amount at 9%×interest rate×number of years

Interest from 11%=principal amount at 11%×interest rate×number of years

and;

Principal amount at 9%=x, interest rate=9/100=0.09, number of years=1

Principal amount at 11%=23,000-x, interest rate=11/100=0.11, number of years=1

replacing;

2,430=(x×0.09×1)+0.11(23,000-x)

2,430=0.09 x+2,530-0.11 x

(0.11 x-0.09 x)=2,530-2,430

0.02 x=100

x=100/0.02

x=5,000

Loan amount at 9%=5,000

b.

<em>Step 2: Determine loan amount at 11%</em>

Use the expression below to determine the loan amount at 11%;

Loan amount at 11%=Total loan amount-loan amount at 9%

where;

Loan amount at 11%=unknown, to be determined

Total loan amount=$23,000

Loan amount at 9%=$5,000

replacing;

Loan amount at 11%=23,000-5,000=$18,000

Loan amount at 11%=$18,000

3 0
3 years ago
(Advanced analysis) The accompanying equations are for a mixed open economy. The letters Y, Ca, Ig, Xn, G, and T stand for GDP,
spayn [35]

Answer:

Equilibrium GDP = C+ I+ G+ X

Where:             Y = GDP

                        C = Ca = a+bYd

                         I  = Ig

                        G = G

                        X =  Xn

                     Yd  = Y-T

                        T =  0.2Y

                       Y  =  C+ I+ G+ X

                       Y  = a + bYd + I +G + X

                       Y  = a + b(Y-T) + I +G + X

                       Y  = a + bY - bT + I +G + X

                       Y  = a + by - b(0.2Y) + I +G + X

                       Y  = a + bY - 0.2Yb + I +G + X

                       Y  =  a + 0.8Yb + I +G + X

         Y - 0.8Yb  =  a + I +G + X

         Y(1 - 0.8b) =  a + I +G + X

                        Y = (a + I +G + X)/(1 - 0.8b)

That is the equilibrium GDP is Y = (a + I +G + X)/(1 - 0.8b)

Explanation:

Equilibrium GDP is also called equilibrium level of national income. This is the condition that must prevail for planned expenditure to exactly equals planned income or output in an economy. this is represented by the general equation of Y  =  C+ I+ G+ X-M but for the purpose of this question M which represent import was not introduced.

The consumption function of C = Ca = a+bYd is a Keynesian consumption function, it shows aggregate planned expenditure by household

Ig represents investment expenditure of the firm

Xn represents export while

G represents government expenditure on goods and services

T represents tax which varies with income level

3 0
2 years ago
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