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jasenka [17]
3 years ago
11

All of the transactions of Harding Trading Co. for the year have been journalized and posted. The following information has been

gathered for the adjustment process as of December 31, 2018: The Supplies account shows a balance of $900. A count of supplies revealed $400 on hand. The $1,200 premium relating to a one–year insurance policy was paid on December 1, 2018. The company’s equipment, which was purchased last year, depreciates at a rate of $1,000 per year. On September 30, 2018, a customer paid $10,000 in advance for services; as of December 31, 2018, services in the amount of $3,000 had been performed for this customer. Employees are paid $5,000 on Fridays for the 5-day workweek, which ends on that Friday. However, December 31, 2018 falls on a Thursday. The company has completed $500 of work for customers; the customers have not yet been billed and the related revenue has not been recorded. Required: Prepare the required adjusting entries required at December 31, 2018. For each of the adjusting items, indicate the amount and the direction of effects of the adjusting journal entry on the elements of the balance sheet and income statement. Complete the following table by entering the amount and the direction (+ for increase, − for decrease) or leave blank for no effect.
Business
1 answer:
Solnce55 [7]3 years ago
4 0

Answer:

supplies expense  500 debit

supplies  500 credit

--to record supplies --consumed--    

insurance expense  100 debit

prepaid insurance  100 credit

--to record expired --insurance    

depreciation expense  1000 debit

acc. Dep. equipment  1000 credit

-to record depreication over the year--    

unearned revenue   3000 debit

service revenue  3000 credit

--to record accrued revenue from customers--    

wages expense  4000 debit

wages payable  4000 credit

--to record earned wages from emplyees--    

accounts receivables  500 debit

sales revneue  500 credit

--to record completion on services--    

Explanation:

Supplies:

900 balance less 400 at hand = 500 use of supplies during the period.

(if there was purchaseds then we should also add them to the consumed / expensed amount)

Insurance 1,200 is the value of a year we need to know the first month of December which as expired:

1,200 a year / 12 months per year = 100 per month

wages:

5,000 full week

we recognize until Thursday thus 4 days:

5,000 / 5 days per week = 1,000 per day

1,000 per day x 4 days = 4,000 accrued wages and salaries

rest are selft-explanatory and there is no calculation needed

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The answer is d. wholly owned subsidiary

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Ivanhoe Diesel owns the Fredonia Barber Shop. He employs 5 barbers and pays each a base rate of $1,380 per month. One of the bar
ANTONII [103]

Answer:

Fredonia Barber Shop

a. Variable costs per haircut = $4.40

   Total monthly fixed costs = $8,910

b. Break-even point in units = 1,350

Break-even point in sales dollars = $14,850

Net income with 1,670 haircuts = $2,120

Explanation:

a) Data and Calculations:

Fixed costs:

Wages of barbers per month =    $6,900 ($1,380 * 5)

Manager's allowance per month = $535

Advertising per month =                 $270

Rent per month =                           $1,010

Utilities per month =                        $160

Magazines per month =                   $35

Total fixed costs per month =     $8,910

Ivanhoe currently charges $11 per haircut.

Variable costs per haircut:

Commission per haircut =       $3.75

Barber supplies per haircut = $0.50

Utilities per haircut =                $0.15

Total variable costs per unit   $4.40

Contribution margin per haircut = $6.60 ($11 - $4.40)

Contribution margin ratio = 0.6

Break-even point in units = $8,910/$6.60 = 1,350

Break-even point in sales dollars = $8,910/0.6 = $14,850

Net income assuming 1,670 haircuts for a month:

Sales revenue = $18,370 ($11 * 1,670)

Variable costs =     7,340 ($4.40 * 1,670)

Contribution       $11,030

Fixed costs            8,910

Net income         $2,120

8 0
3 years ago
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Answer:

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2 years ago
Macrosoft Company reports net income of $55,000. The accounting records reveal depreciation expense of $70,000 as well as increa
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Answer:

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Add- Income tax payable = $13,000

Total = $99,000

Hence, Net cash flow from operating activities = $99,000      

4 0
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