1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
morpeh [17]
3 years ago
8

Maria Gomez owns and manages a consulting firm called Accel, which began operations on December 1. She asks us to assist her wit

h some financial reporting questions
Business
1 answer:
soldier1979 [14.2K]3 years ago
3 0

Question Completion:

Financial data:

Unearned revenue 3,600

Notes payable 2,800

Accounts payable 4,800

Advertising expense 2,800

Rent expense 4,000

Salaries expense 6,000

Utility expense 2,400

Consulting revenue 34,000

Rental revenue 7,000

Accounts receivable 10,000

Cash 12,000

Equipment 10,200

Notes receivable 5,000

Prepaid insurance 2,000

Supplies 3,000

Common Stock 9,200

Dividends 4,000

Prepare Income Statement, Statement of Retained Earnings, and Balance Sheet as of December 31.

Answer:

Accel Consulting Firm (owned and managed by Maria Gomez)

a. Income Statement for the month ended December 31:

Consulting revenue            $34,000

Rental revenue                        7,000

Total Revenue                     $41,000

Less expenses:

Advertising expense 2,800

Rent expense            4,000

Salaries expense      6,000

Utility expense          2,400   15,200

Net Income                        $25,800

b. Statement of Retained Earnings for the month ended December 31:

Net Income                             $25,800

Dividends                                    4,000

Retained earnings, Dec. 31    $21,800

c. Balance Sheet as of December 31:

Assets:

Cash                                  $12,000

Accounts receivable           10,000

Notes receivable                  5,000

Prepaid insurance                2,000

Supplies                                3,000

Equipment                           10,200

Total Assets                     $42,200

Liabilities:

Unearned revenue           $3,600

Notes payable                     2,800

Accounts payable               4,800

Total Liabilities                 $11,200

Common Stock                  9,200

Retained earnings            21,800

Total liabilities + Equity $42,200

Explanation:

Accel's income statement is a summary of the temporary accounts, which are not carried forward in the next accounting period.  They are used to calculate the profit performance of the consulting firm.  They include the revenues and the expenses incurred for generating the revenue.

Accel's statement of retained earnings shows the difference between the net income generated over the years for a business that has been in operation for years and the payouts from the net income in form of dividends to stockholders.  For Maria Gomez's consulting business, the retained earnings statement shows what is remaining after paying dividend for the month of December to Gomez.

Accel's balance sheet is the final financial statement that is needed to be prepared to show the financial position of the firm.  It shows what the firm owns as assets and the value that the firm owes other creditors for services not paid for or not yet rendered and the equity value for the stockholder, Maria.

You might be interested in
What is the pattern of 0.03 , 0.3 , 3 , 30
scoundrel [369]
The answer would be 300
4 0
3 years ago
Read 2 more answers
the observation that a country reached automotive production overcapacity in 2018, is an aspect of the segment of the general en
rodikova [14]

The observation that a country reached automotive production overcapacity in 2018, is an aspect of the global segment of the general environment

<h3>What an environment</h3>

An environment includes everything that makes up the earth. This include people, animals, plant, economy, business, culture etc. They all have a role to play in the day to day activities and how an individual act and react.

The global segment of environment is the aspect that affects all countries and people.

Therefore, the observation that a country reached automotive production overcapacity in 2018, is an aspect of the segment of the general environment

Learn more on environment below

brainly.com/question/16755022

#SPJ1

5 0
2 years ago
Agent Higgins helps Mrs. O'Malley to enroll in AB Medicare Advantage (MA) plan during the Annual Open Enrollment Period. Mrs. O'
Neko [114]

Answer:

Since Mrs. O'Malley disenrolled form the plan because she was moving away to a location that was not served by the company, Agent Higgins compensation should not be affected.

If Mrs. O'Malley (or any other client) leaves the plan before the 3 month period because she decides to go back to her former provider since she doesn't like this plan (for whatever personal reason), then the company would be able to recoup Agent Higgins's compensation.

4 0
3 years ago
Big Trail Running Company has started to produce running apparel in addition to the trail running shoes that they have manufactu
Andrew [12]

Answer:

Option (C) is correct.

Explanation:

For Machining department,

Manufacturing overhead rate:

= Estimated Overhead cost ÷ Amount of allocation base

= [$1,000,000 ÷ (130,000 + 70,000) machine hours]

= $1,000,000 ÷ 200,000 machine hours

= $5.00 per machine hour

For Finishing department,

Manufacturing overhead rate:

= Estimated Overhead cost ÷ Amount of allocation base

= [$100,000 ÷ (9,000 + 71,000) direct labor hours]

= $100,000 ÷ 80,000 direct labor hours

= $1.25 per labor hour

8 0
3 years ago
You own the following portfolio of stocks. What is the portfolio weight of Stock C?
LuckyWell [14K]

Answer:

38?59%

Explanation:

Calculation for the portfolio weight of Stock C

First step is to calculate the Total Value of Stock A to Stock D in the Portfolio using this formula

Total Value of stock A to stock D in Portfolio = Number of Shares * Stock Price

Let plug in the formula

Total Value of stock A to stock D in Portfolio = (A 120 *$32)+ (B 750* $28)+ (C 450* $52) +(D 240* $51)

Total Value of stock A to stock D in Portfolio = A $3,840+ B$21,000+C$23,400+D$12,240

Total Value of stock A to stock D in Portfolio=$60,480

Last step is to calculate the portfolio weight of Stock C using this formula

Portfolio weight of Stock C =Stock C /Total Value of stock A to stock D in Portfolio

Let plug in the formula

Portfolio weight of Stock C= 450 *$52/$60,480

Portfolio weight of Stock C=$23,400/$60,480

Portfolio weight of Stock C=0.3869*100

Portfolio weight of Stock C=38.69%

Therefore the Portfolio weight of Stock C will be 38.69%

7 0
3 years ago
Other questions:
  • Martin is a manager at Antrix Computers. A team of 15 people report to him. Elliot is Martin's least preferred coworker because
    5·2 answers
  • Give examples of needs, wants, and demands that fedex customers demonstrate, differentiating these three concepts.
    7·1 answer
  • Which is NOT a tactic TV stations use to get people to watch the news?
    14·1 answer
  • Miguel is doing a research paper on new york city's stonewall riots of 1969. he visits the scene of the riots, interviews people
    6·1 answer
  • All citizens in America have _______ to form a group and push for what they want in the law. Additionally, the architects of our
    9·2 answers
  • About what percentage of lottery winners end up with financial troubles?
    5·2 answers
  • Which of these is a service?<br> A. A car<br> B. Insurance coverage<br> C. Milkshakes<br> D. A bike
    14·2 answers
  • Informal groups: Group of answer choices exist primarily for the benefit of their members. perform routine organizational goals.
    11·1 answer
  • Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of Apr
    5·1 answer
  • What factors, do you think determine how long a product will stay in the product life cycle
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!