Flat taxation is present when a set rate is applied to ______

Maquoketa Services was formed on May 1, 2017. The following transactions took place during the first month.

mariarad [96]

Answer:

1. Jay BradFord invested $40,000 cash in the company, as its sole owner.

Account Debit Credit

Cash $40,000

Capital $40,000

2. Hired two employees to work in the warehouse. They will each be paid a salary of $3,050 per month.

Account Debit Credit

Wage Expense $3,050

Wages Payable $3,050

3. Signed a 2-year rental agreement on a warehouse; paid $24,000 cash in advance for the first year.

Account Debit Credit

Prepaid Rent $24,000

Cash $24,000

4. Purchased furniture and equipment costing $30,000. A cash payment of $10,000 was made immediately; the remainder will be paid in 6 months.

Account Debit Credit

Furniture and Equipment $30,000

Cash $10,000

Accounts Payable $10,000

5. Paid $1,800 cash for a one-year insurance policy on the furniture and equipment.

Account Debit Credit

Prepaid Insurance $1,800

Cash $1,800

6. Purchased basic office supplies for $420 cash.

Account Debit Credit

Office supplies $420

Cash $420

7. Purchased more office supplies for $1,500 on account.

Account Debit Credit

Supplies $1,500

Accounts Payable $1,500

8. Total revenues earned were $20,000—$8,000 cash and $12,000 on account.

Account Debit Credit

Revenue $20,000

Cash $8,000

Accounts Receivable $12,000

9. Paid $400 to suppliers for accounts payable due.

Account Debit Credit

Accounts Payable $400

Cash $400

10. Received $3,000 from customers in payment of accounts receivable.

Account Debit Credit

Accounts Receivable $3,000

Cash $3,000

11. Received utility bills in the amount of $380, to be paid next month.

Account Debit Credit

Utility Expense $380

Accounts Payable $380

12. Paid the monthly salaries of the two employees, totaling $6,100.

Account Debit Credit

Wage Expense $3,050

Wages Payable $3,050

6 0

3 years ago

Petro Roos is thinking of purchasing the business premises rather than renting it. Provide Two separate advantages and two separ

lilavasa [31]

Answer:

Advantages of buying business premises

There are considerable advantages to securing a mortgage to buy business premises, including:

your mortgage repayment is likely to be similar to or less than a rental payment on the same property
with a fixed rate mortgage, your monthly repayments will be predictable
you aren't exposed to any sudden, large rent increases
you may be able to sublet any free space, reducing your monthly repayments (you may require permission from your lender to do so) and allowing you to generate extra income
interest payments on a commercial mortgage are tax-deductible
any gain in value of the property will increase your capital
as your business grows, you may be able to extend your existing premises, avoiding relocation costs
you have control over what alterations you want to make to your office space

Disadvantages of buying business premises

The disadvantages of buying business premises include the following:

Unlike renting, you'll need to come up with a substantial mortgage deposit - this is money that might be used for more important business purposes.
If you own premises, you may find it harder to relocate your business, because selling business premises is a complex and sometimes lengthy process. If you rent, you may be able to negotiate to end your rental agreement, or to find another organisation to take over your tenancy at short-notice.
If you have a variable rate mortgage, you are exposed to increases in interest rates.
Owning a property means you'll be responsible for factors such as maintenance, fixtures and fittings, insurance, decoration and security, which can prove expensive.
Repaying a commercial mortgage
Commercial mortgage fees and costs
Book traversal links for Advantages and disadvantages of buying business premises

Explanation:

4 0

3 years ago

Entrepreneurs affect the economic decisions a country makes by:

xeze [42]

Answer:

D. identifying new ways for people to fulfill their wants and needs

Explanation:

Entrepreneurs start new businesses in society. They are quick to spot and identify needs and wants in the market. Entrepreneurs establish businesses to provide solutions to these needs and want at a profit.

Entrepreneurs use their creativity to come up with new and unique products that offer solutions to society's problems. They innovate better products and ways of offering services that are friendly and more cost-effective. Entrepreneurship goes hand-in-hand with creativity and innovation.

8 0

2 years ago

Inventories Raw materials $ 42,000 $ 32,000 Work in process 9,100 18,300 Finished goods 57,000 34,300 Activities and information

Svetach [21]

Answer:

a. Computation of the following amounts for the month of May using T-accounts:

1. Cost of direct materials used = $176,000

2. Cost of direct labor used = $77,000

3. Cost of goods manufactured = $286,150

4. Cost of goods sold = $308,850

5. Gross profit = $691,150

6. Overapplied or underapplied overhead = $89,650 (underapplied)

b. Journal Entries:

Debit Raw materials $172,000

Credit Cash $172,000

To record the purchase of raw materials for cash.

Debit Factory payroll $100,000

Credit Cash $100,000

To record the payroll paid in cash.

Debit Factory overhead:

Indirect materials $6,000

Indirect labor $23,000

Other overhead costs 103,000

Credit Raw materials $6,000

Credit Factory payroll $23,000

Credit Cash $103,000

To record indirect materials, labor and other costs.

Debit Work in process $42,350

Credit Factory overhead $42,350

To apply overhead based on direct labor cost 55%.

Debit Cash $1,000,000

Credit Sales Revenue $1,000,000

To record the sale of goods for cash.

Explanation:

a) Data and Calculations:

Inventories:

Raw materials $ 42,000 $ 32,000

Work in process 9,100 18,300

Finished goods 57,000 34,300

Activities for May:

Raw materials purchases (paid with cash) 172,000

Factory payroll (paid with cash) 100,000

Factory overhead:

Indirect materials 6,000

Indirect labor 23,000

Other overhead costs 103,000

Sales (received in cash) 1,000,000

Predetermined overhead rate based on direct labor cost 55%

T-accounts:

Raw materials

Beginning balance $ 42,000

Cash 172,000

Manufacturing overhead 6,000

Work in process 176,000

Ending balance $ 32,000

Work in process

Beginning balance 9,100

Raw materials 176,000

Payroll 77,000

Overhead applied 42,350

Finished goods 286,150

Ending balance 18,300

Finished goods

Beginning balance 57,000

Work in process 286,150

Cost of goods sold 308,850

Ending balance 34,300

Manufacturing overhead

Indirect materials 6,000

Indirect labor 23,000

Other overhead costs 103,000

Work in process 42,350

Underapplied overhead 89,650

Sales revenue $1,000,000

Cost of goods sold 308,850

Gross profit $691,150

Analysis of Transactions:

Raw materials $172,000 Cash $172,000

Factory payroll $100,000 Cash $100,000

Factory overhead:

Indirect materials $6,000 Raw materials $6,000

Indirect labor $23,000 Factory payroll $23,000

Other overhead costs 103,000 Cash $103,000

Work in process $42,350 Factory overhead $42,350

Predetermined overhead rate based on direct labor cost 55%

Cash $1,000,000 Sales Revenue $1,000,000

5 0

2 years ago

Within the labor movement, the demise of the Knights of Labor led to a shift away from the broadly reformist past to more limite

natita [175]

The given statement is TRUE.

Explanation:

The statements that describe the AFL :

Rather than facing business leaders head on, the AFL has committed itself to seeking fair working practices and higher wages for employers.

In the vocabulary of the corporate community of that period, the latest AFL policies were labeled "financial unionism."

6 0

3 years ago

Flat taxation is present when a set rate is applied to _______ levels of income.