Social security payments are normally deducted from paychecks. True False

Vaughn Manufacturing has the following items at year-end:

Amiraneli [1.4K]

Answer:

$37,100

Explanation:

Calculation for what Vaughn should report as cash and cash equivalents

Cash in bank $36,200

Petty cash 300

Short-term paper with maturity of 2 months 600

Cash and cash equivalents $37,100

Therefore Vaughn should report cash and cash equivalents of:$37,100

5 0

2 years ago

Morrow Enterprises Inc. manufactures bathroom fixtures. The stockholders’ equity accounts of Morrow Enterprises Inc., with balan

algol13

Answer:

Morrow Enterprises Inc.

A. January 1 balances in T-accounts:

Common Stock

Jan. 1 Balance b/d $7,500,000

Additional Paid-in Capital -Common Stock

Jan. 1 Balance b/d $825,000

Retained Earnings

Jan. 1 Balance b/d $33,600,000

Treasury Stock

Jan. 1 Balance b/d $450,000

B1. Journal entries to record the transactions:

Jan. 22

Debit Dividends Payable $28,000

Credit Cash Account $28,000

To record payment of $0.08 dividends per share.

April 10

Debit Cash Account $1,800,000

Credit Common Stock $1,500,000

Credit Additional Paid-in Capital $300,000

To record the issue of 75,000 shares for $24 per share.

June 6

Debit Cash Account $650,000

Credit Treasury Stock $450,000

Credit Additional Paid-in Capital $200,000

To record reissue of 25,000 shares of treasury stock at $26 per share and close the Treasury Stock balance to Additional Paid-in Capital.

July 5

Debit Stock Dividends $450,000

Credit Dividends Payable $450,000

To record the declaration of the 4% stock dividend on 450,000 shares of common stock.

August 15

Debit Dividends Payable $450,000

Credit Common Stock $360,000

Credit Additional Paid-in Capital $90,000

To record the issue of a 4% stock dividend certificates on 450,000 shares at $25

Nov. 23

Debit Treasury Stock $570,000

Credit Cash Account $570,000

To record the purchase of 30,000 shares of treasury stock for $19 per share.

Dec. 28

Debit Dividends $42,000

Credit Dividends Payable $42,000

To record the declaration of a $0.10 per share dividend on 420,000 shares of common stock.

Dec. 31

Debit Income Summary Account $1,125,000

Credit Retained Earnings $1,125,000

To close the credit balance of the income summary.

Dec. 31

Debit Retained Earnings $492,000

Credit Stock Dividends $450,000

Credit Dividends $42,000

To close the two dividends accounts.

B2) Posting to the selected accounts:

Common Stock

Dec. 31 Balance c/d $9,360,000 Jan. 1 Balance b/d $7,500,000

Apr. 10 Balance b/d $1,500,000

Aug 15 Dividend Payable $360,000

$9,360,000 $9,360,000

Jan. 1 Balance b/d $9,360,000

Additional Paid-in Capital -Common Stock

Dec. 31 Balance c/d $1,415,000 Jan. 1 Balance b/d $825,000

Apr. 10 Balance b/d $300,000

Jun. 6 Treasury Stock $200,000

Aug 15 Dividend Payable $90,000

$1,415,000 $1,415,000

Jan. 1 Balance b/d $1,415,000

Retained Earnings

Dec. 31 Stock Dividends $450,000 Jan. 1 Balance b/d $33,600,000

Dec. 31 Dividends $42,000 Dec. 31 Income Summary $1,125,000

Dec. 31 Balance c/d $34,233,000

$34,725,000 $34,725,000

Jan. 1 Balance b/d $34,233,000

Treasury Stock

Jan. 1 Balance b/d $450,000 Jun. 6 Cash $450,000

Nov. 23 Cash $570,000 Dec. 31 Balance c/d $570,000

$1,020,000 $1,020,000

Jan. 1 Balance b/d $570,000

Dividends Payable

Jan. 22 Cash $28,000 Jan. 1 Balance b/d $28,000

Aug. 15 Common Stock $360,000 Jul. 5 Stock Dividends $450,000

Aug. 15 Additional Paid-in$90,000 Dec. 23 Cash Dividends $42,000

Dec. 31 Balance c/d $42,000

$520,000 $520,000

Jan. 1 Balance b/d $42,000

Stock Dividends

Jul. 5 Dividends Payable $450,000 Dec. 31 Retained Earnings $450,000

Cash Dividends

Dec. 28 Dividends Payable $42,000 Dec. 31 Retained Earnings $42,000

Income Summary Account

Dec. 31 Retained Earnings $1,125,000 Dec. 31 Balance b/d $1,125,000

C. Retained Earnings Statment for the year ended December 31, 2016:

Beginning Balance $33,600,000

Income Summary $1,125,000

Stock Dividends ($450,000)

Cash Dividends ($42,000)

Ending Balance $34,233,000

Explanation:

a) Cash Account

Apr. 10 Common Stock $1,500,000 Jan. 22 Dividends Payable$28,000

April 10 Additional Paid-in $300,000 Nov. 23 Treasury Stock $570,000

Jun. 6 Treasury Stock $450,000

Jun. 6 Additional Paid-in $200,000

6 0

2 years ago

Francis updates the steps to the occupation manual frequently to maintain the best measures to perform his job. this is an examp

Sergeu [11.5K]

He is a quality control associate. This employee looks for the best ways to perform a task and makes sure that the company adheres to these quality control measures. The associate also makes sure that the output of the job meets up with company and regulatory standards.

3 0

3 years ago

A manufacturer of fishing equipment conducted a test of its products by giving them to eight fishermen who used them with the fo

vampirchik [111]

The conclusion that the manufacturer can draw about the power of this equipment to catch fish is that the fishing equipment have different degree of catching fish.

<h3>What is conclusion?</h3>

Note that there are a lot of fishing equipment that was given by the manufacturer such as Trusty rod with a Husky reel, Trusty rod, monofilament line, and others.

Note that they will not all function at the same level as they all have the extent to which they can catch fishes. Some may be faster than the others why some may attract fishes quickly.

Conclusively, The conclusion is that the fishing equipment have different degree or extent to catching fish.

Learn more about conclusion from

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7 0

1 year ago

The rule that requires financial statements to reflect the assumption that the business will continue operating instead of being

Elan Coil [88]

Answer:

B. Going-concern assumption.

Explanation:

The financial statements are normally prepared on the assumption that an entity is a going concern and will continue in operation for a foreseeable future. Hence, It is assumed that the entity has neither the intention nor the need to liquidate or curtail materially the scale of its operations. If such an intention or need exists, the financial statements have to be prepared on different a basis and , if so , the basis used is disclosed.

7 0

3 years ago