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
vovikov84 [41]
3 years ago
13

Ed runs an auto repair business out of the garage attached to his personal residence. How should he account for each of the foll

owing items?a. Cash received from repair services, $28,000.b. Interest paid on his home mortgage, $7,300.c. Power jack hoist purchased at a cost of $12,000.d. Electricity bills, $3,600. (Ed does not have separate electricity service to the garage.)e. Checks received from customers that were returned by his bank, $1,600. The bank charged Ed’s account $35 for processing the bad checks.f. Telephone bill for phone in the garage, $420. (Ed has a separately listed phone in his house.)g. Advertising in the local newspaper, $800.h. Interest paid on home furniture loan, $600.
Business
1 answer:
soldi70 [24.7K]3 years ago
7 0

Answer:

a. Cash received from repair services, $28,000. Repair business

b. Interest paid on his home mortgage, $7,300.Personal expenses

c. Power jack hoist purchased at a cost of $12,000. Repair business

d. Electricity bills, $3,600. (Ed does not have separate electricity service to the garage.)Personal expenses

e. Checks received from customers that were returned by his bank, $1,600. Repair business

The bank charged Ed’s account $35 for processing the bad checks.Repair business

f. Telephone bill for phone in the garage, $420. (Ed has a separately listed phone in his house.)Repair business

g. Advertising in the local newspaper, $800.Repair business

h.Interest paid on home furniture loan, $600.Personal expenses

Explanation:

Under the entity concept, Ed must segregate the income and expenses associated with his auto repair business from those that are personal.  The importance of this segregation is that all trade or business expenses are deductible for adjusted gross income, while most personal expenditures are not deductible.  

c

You might be interested in
Lauhl Corporation provides janitorial services to several office buildings. During April, Lauhl engaged in the following transac
NISA [10]

Answer:

Cash-basis accounting $15,600

Accrual-basis Accounting $7,750

Explanation:

A. Calculation to determine the amount of net income that Lauhl should recognize in April under cash-basis accounting

Cash-basis accounting

=$24,000 -$5000-$3,400

Cash-basis accounting =$15,600

Therefore the amount of net income that Lauhl should recognize in April under cash-basis accounting is $15,600

B. Calculation to determine the amount of net income that Lauhl should recognize in April under the accrual-basis Accounting

Accrual-basis Accounting=($24,000/6) -$1300 + $2500 - $3,400 - $850

Accrual-basis Accounting=$4,000-$1,300+$2,500+$3,400-$850

Accrual-basis Accounting=$7,750

Therefore the amount of net income that Lauhl should recognize in April under the accrual-basis Accounting is $7,750

6 0
3 years ago
1. As an Organizational Psychologist, you have thought of arranging a picnic in two weeks' time for your employees from all depa
yuradex [85]

Hello. This question is incomplete. The full question is:

As an Organizational Psychologist, you have thought of arranging a picnic in two weeks' time for your employees from all departments and their families to unwind their work stress and give them a healthy mental break. There are many fun activities that you have planned. For the children, there will be games like three-legged races and kite-flying. For the adults, besides the baseball game in the afternoon, there will also be sack race and horseshoes. There will be prizes for the winners of all the events. Lunch should be around noon, and you are generously providing all the food and drinks, so let your employees know that they do not need to bring anything.

Your Task: Write a memo requesting, but not demanding, that employees attend the picnic. Also ask your employees to confirm at least one week in advance whether they are coming or not, and also how many guests they are bringing. Also, make sure employees know when and how to respond to you. Be sure to list the activities for that day as well.

Answer:

MEMORANDUM No. 0120

From: Department of Organizational Psychology

For: All employees and families

Subject: Invitation to the annual picnic for socializing.

November 25, 2020.

Dear employees,

We have the honor of inviting all employees and their families to participate in the annual picnic of fraternization that our company will hold on December 20 at 2 pm, at the Club Santa Anne. On the occasion we will offer recreational activities, games and relaxation sessions to promote a day of leisure for our employees. We also have activities for children and a delicious lunch and snack for everyone.

The piquimique will be offered completely free of charge and we hope to meet everyone, although the presence is not mandatory.

In order to avoid waste, we would like to ask you to confirm your presence and the number of guests you intend to bring. This information should be sent to the psychology department email and we ask that the information be sent by January 10th.

We count on your understanding.

Regards,

Maria Lopes.

Director of the psychology department.

7 0
2 years ago
Lynn Brown is widely known as the one of the best customer relationship managers in her company. Over the years she has develope
grin007 [14]
It is c.equity capital I know it is the answer
8 0
3 years ago
Your friend fills out their first tax form and is confused between adjusted and gross income. How can you explain the difference
Illusion [34]
<span>Annual gross income is the amount of money you make BEFORE taxes. Your adjusted gross income is how much money you make before taxes, MINUS anything you can deduct. You can deduct many things, like student loan interest payments and alimony. So, you would have an adjustment if you paid for student loans this year. If your gross income (not adjusted) is $20,000 and you paid $1000 on student loan interest, your adjusted gross income is $19000. The IRS will then see your income as only $19000 instead of $20,000 and will tax you on that lower amount.</span>
8 0
3 years ago
Under a partnership agreement, sarah is to receive 25% of the partnership's income, but not less than $12,000. the partnership's
Rudiy27
Given: -
 Sarah's income = 25% of the partnership income but not less than $12,000.
 Net income of partnership for the year = $32,000.  
To find: -
 1) Amount that can be deducted by partnership as guaranteed payment.
 2) Income that Sarah is to report on her tax return. 
 Solution: -
 Partnership income = $32,000
 Sarah's share = 25% of 32000 = $8,000
 But Sarah must receive $12,000 (Shortfall $12,000-$8,000=$4,000)
 So, 1) $4,000 can be deducted by partnership as guaranteed payment.
 2) Income that Sarah needs to report on her tax return = $12,000.
6 0
3 years ago
Other questions:
  • The method for providing solutions to union-management conflicts over interpretation or violation of a collective bargaining agr
    5·2 answers
  • Consider a firm with an annual net income of $20 million, revenue of $60 million and cost of goods sold of $25 million. If the b
    12·1 answer
  • Depreciation expense on factory equipment is part of factory overhead cost.<br> A. True<br> B. False
    10·1 answer
  • Which approach to lessons learned helps identify most of the lessons learned on a project
    7·1 answer
  • Dehner Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hou
    9·1 answer
  • A BUYER IS PURCHASING A HOME AND HAS ORDERED A HOME INSPECTION AND A A TERMITE INSPECTION. WHAT SHOULD THE BUYER ORDER TO PROTEC
    8·1 answer
  • Domestic business differs from international business in that a firm operating within the borders of one country A) must be conc
    13·1 answer
  • You are looking for your first credit card. You plan to use this credit card only for emergencies and to pay the credit card bal
    5·1 answer
  • Assume that Simple Co. had credit sales of $280,000 and cost of goods sold of $165,000 for the period. It estimates that 2 perce
    12·1 answer
  • The two primary competitive levers that managers can use in order to answer the question of how to compete are.
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!