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3 years ago

Kohler Corporation reports the following components of stockholdersâ equity on December 31, 2016:

Business

1 answer:

Flauer [41]3 years ago

4 0

Answer:

Explanation:

1. Jan 1

Paid Up Capital (6,000*15) Dr.$ 90,000

Paid in Capital in excess of par value Dr.$30,000

Treasury stock (6,000*20) Cr.$ 120,000

Jan 5. Dividend (55,000-6,0000=49,000*2) Dr.$98,000

Dividend Payable Cr.$98,000

Feb 28. Dividend Payable Dr.$98,000

Bank Cr.$98,000

July 6 Bank (2,250*24) Dr.$54,000

Paid up capital (2,250*15) Cr.$33,750

Paid in capital in excess of par (2250*9) Cr.$20,250

Aug 22 Cash (3,750*17) Dr.$63,750

Paid up capital (3,750*15) Cr.$ 56,250

Paid in capital in excess of par Cr.$7,500

Sept 5. Dividend (49,000+2,250+3,750)*2 Dr.$110,000

Divided Payable Cr.$110,000

Oct 28. Dividend Payable Dr.$110,000

Cash Cr.$110,000

Dec 31 Income Summary Account Dr.$428,000

Retained Earnings cr.$428,000

2.Statement of retained Earnings

Retained Earnings at beginning $460,000

Add; Net income for the year $428,000

Less: Dividends paid(98,000+110,000) ($208,000)

Retained earnings as at December 31,2017 $680,000

3. Stockholders' Equity Section of Balance Sheet

Retained earnings $680,000

Paid Up Capital Outstanding

(825,000-90,000+33,750+56,250) $915,000

Paid in capital in excess of par

(70,000-30,000+20250+7500) $67,750

Total stockholders' equity $1,662,750

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Cost of goods sold is determined only at the end of the accounting period in.

sladkih [1.3K]

<h3>Answer:</h3>

Under the periodic inventory system.

What is periodic inventory system?

Under the periodic inventory system, the cost of goods sold determined at the end of an accounting period by adding the net cost of goods purchased to the beginning inventory and subtracting the ending inventory.

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2 years ago

On November 1, 2018, Quantum Technology, a geothermal energy supplier, borrowed $22 million cash to fund a geological survey. Th

IgorLugansk [536]

Answer:

<u>when signing the note:</u>

cash 22,000,000

note payable 22,000,000

<u>accrued interest at december 31th, 2018</u>

interest expense 330,000 debit

interest payable 330,000 credit

payment of the note:

<u>payment of the note</u>

note payable 22,000,000

interest payable 330,000

interest expense 1,185,000

cash 23,485,000

Explanation:

adjusting entry:

principal x rate x time

22,000,000

rate 9% / 12 = 0.0075

months 2

We must express rate and time in the same metric, in this case, months

22,000,000 x 0.75 x 2 = 330,000 accrued interest

payment of the note:

22,000,000 x 0.75 x 9 = 1,485,000

already accrued 330,000

interest expense 1,185,000

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3 years ago

Pina Football Shop began operations on January 2, 2017. The following stock record card for footballs was taken from the records

Volgvan

Answer:

A. FIFO $1,794

B. LIFO $6,326

Explanation:

(a) Computation for the December 31, 2017, inventory using the FIFO method

Value of closing Stock

93 Footballs purchased in November = 93 * $16 93 Footballs purchased in November= $1,488

18 Footballs purchased in September= (111-93)* $17

18 Footballs purchased in September= 18* $17

18 Footballs purchased in September= $306

Total Value as on 31 December, 2017 =$1,488+$396

Total Value as on 31 December, 2017=$1,794

Therefore the December 31, 2017, inventory using the FIFO method will be $1,794

B.) Computation for the 2017 cost of goods sold using the LIFO method.

First step is to calculate the Value of closing Stock

67 Footballs purchased in January= 67 * $28

67 Footballs purchased in January = $1,876

44 Footballs purchsed in March= (111-67)* $23

44 Footballs purchsed in March=44*$23

44 Footballs purchsed in March= $1,012

Total Value as on 31 December, 2017=$1,876+$1,012

Total Value as on 31 December, 2017 = $2,888

Now let calculate the Cost of goods sold using this formula

Cost of goods sold

= Gross Invoice amount - Value of closing stock

Let plug in the formula

Cost of goods sold= $9,214 - $2,888

Cost of goods sold= $6,326

Therefore the 2017 cost of goods sold using the LIFO method will be $6,326

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3 years ago

A small pizza restaurant, founded and owned by the Martinelli sisters, would be expected to have which of the following? a.Low i

Marrrta [24]

Answer:

d.High inventory turnover and low gross margin

Explanation:

Inventory Turnover Ratio is ratio of 'cost of goods sold' to 'average inventory level'. Gross margin is the difference between net sales revenue & c.o.g.s

A small pizza restaurant, by Martinelli sisters, would be expected to have :

High Inventory Turnover : It reflects that inventory is quickly converted into liquid cash, & there is less average inventory level management. Both these aspects are applicable to the pizza restaurant
Low Gross Margin : Being a small restaurant, it is less likely to have competitive, high price charge advantage. So, the gross margins are expected to be low.

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3 years ago

Brand managers know that increasing promotional budgets eventually result in diminishing returns. The first one million dollars

Virty [35]

Answer:

The Expected Awareness level for the next year will be 58%

Explanation:

In order to calculate the Expected Awareness level, first we have to calculate opening awareness level using the following formula:

Opening awareness level=Closing level−Decrease in awareness per year

=80%−(1/3×80%)

=80%−26.4%

=53.6%

After having calculated the Opening awareness level we can calculate the Expected Awareness level for next year with the following formula:

Expected Awareness level=Opening awareness level+Increase in level

=53.6%+5%

=58%

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3 years ago