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
andrew-mc [135]
3 years ago
15

The following transactions occurred during March 2016 for the Wainwright Corporation. The company owns and operates a wholesale

warehouse.
1. Issued 30,000 shares of capital stock in exchange for $300,000 in cash.
2. Purchased equipment at a cost of $40,000. $10,000 cash was paid and a note payable was signed for the balance owed.
3. Purchased inventory on account at a cost of $90,000. The company uses the perpetual inventory system.
4. Credit sales for the month totaled $120,000. The cost of the goods sold was $70,000.
5. Paid $5,000 in rent on the warehouse building for the month of March.
6. Paid $6,000 to an insurance company for fire and liability insurance for a one-year period beginning April 1, 2016.
7. Paid $70,000 on account for the merchandise purchased in 3.
8. Collected $55,000 from customers on account.
9. Recorded depreciation expense of $1,000 for the month on the equipment.
Required:
Analyze each transaction and classify each as a financing, investing, and/or operating activity (a transaction can represent more than one type of activity). In doing so, also indicate the cash effect of each. (Amounts to be deducted should be indicated with a minus sign. If there is no cash effect, leave cell blank.)
Business
1 answer:
Triss [41]3 years ago
6 0

Answer:

1. Financing Activity : $300,000

2.Investing Activity : $10,000 and Non-cash Financing and Investing Activity : $30,000

3.Operating Activity : - $90,000

4.Operating Activity :   $50,000

5.Operating Activity :  -$5,000

6.Operating Activity :  -$6,000

7.Operating Activity :  -$70,000

8.Operating Activity :   $55,000

9.Operating Activity :   $1,000

Explanation:

Operating Activities involves the entity`s trading operation in ordinary course of business.

Investing Activities involves the entity`s sale or purchase of Investments.

Financing Activities involves the entity`s acquisition and sale of funds.  

You might be interested in
Gross payroll for the employees of Bannister Enterprises totals $100,000 per week. From this must be withheld Social Security ta
bogdanovich [222]

Answer:

B) $77,350

Explanation:

Gross payroll=$100,000

Social Security taxes =6.20%

6.20/100×$100,000

=0.062×$100,000

=$6,200

Medicare taxes = 1.45%.

1.45/100×$100,000

=0.145×$100,000

=$1,450

federal and state income tax =15%

15/100×$100,000

=0.15×$100,000

=$15,000

Total Withholdings=

$6,200+$1,450+$15,000

=$22,650

Total employee compensation= Gross earnings-total withhold

=$100,000-$22,650

=$77,350

4 0
3 years ago
Bartoletti Fabrication Corporation has a standard cost system in which it applies manufacturing overhead to products on the basi
vazorg [7]

Answer:

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = $9,096 Unfavorable

Explanation:

Actual variable overhead rate = \frac{Actual variable overhead}{Actual Hours} = \frac{66,170}{6,400}  = 10.34

Therefore variance with the budgeted standard variable overhead

= (Standard Overhead rate - Actual overhead rate) \times Actual Hours

= ($9.70 - $10.34) \times 6,400 = -$4,096

And Fixed Overhead variance = Standard Fixed Overhead - Actual Fixed Overhead = $69,000 - $74,000 = -$5,000

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = -$4,096 + -$5,000 = -$9,096

Since the value of variance is negative it means the expense both variable and fixed are over absorbed, which means it is unfavorable.

Total of the variable overhead rate and fixed manufacturing overhead budget variances for the month = $9,096 Unfavorable

3 0
2 years ago
Why is going to a restaurant to eat dinner both a good.and a service
lions [1.4K]
You eat at the time you need to and they service you
3 0
3 years ago
Read 2 more answers
If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the
blondinia [14]
<span>If a firm has an incentive to increase supply now and decrease supply in the future, then the firm expects that the prices for the firm's product will be lower than the prices that have been set in the present. In the present case as the supply is increased, the prices are higher as the demand is higher. Then at later point of time when the supply is decreased, then demand also decreased, then the prices are likely to come down.</span>
3 0
2 years ago
Which type of organizational structure has multiple managers having authority over an employee
fomenos

Answer:

I believe it’s line structure

Explanation:

8 0
2 years ago
Other questions:
  • Exercise C The marketing department of Specialty Coffees estimates the following monthly demand for espresso in these four price
    10·1 answer
  • Consider the figures below and determine which is the best description of what causes the shift from ad1 ad1 to ad2 ad2.
    12·1 answer
  • Which sentence makes a logical comparison? bob's stocks are worth more than leslie's. bob's stocks are worth more than leslie. l
    13·2 answers
  • Who pleads with big business to hire again in great depression?
    5·2 answers
  • Which of the following is a poor label for a category level file folder?
    13·1 answer
  • The following information is for Bright Eyes Auto Supplies: Bright Eyes Auto Supplies Balance Sheet December 31, 2015 Cash $ 40,
    6·1 answer
  • Effie company uses a periodic inventory system. details for the inventory account for the month of january, 2013 are as follows:
    8·1 answer
  • If the actual price in this market were above the equilibrium price, quantity supplied would begreater than quantity demanded, s
    13·2 answers
  • The Consumer Product Safety Commission is a government agency that issues rules, orders, and decisions. The Colorado state legis
    11·1 answer
  • List at least Two functional digital wallet
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!