What would happen in the market for loanable funds if the government were to increase the tax on interest income?

Southwest Pediatrics has the following balances on December 31, 2021, before any adjustment: Accounts Receivable = $116,000; All

Vilka [71]

Answer:

Bad Debt expense = Allowance for uncollectible debit + (Estimated uncollectibles)

= 1,900 + (15% * 116,000)

= $‭19,300‬

1.

Dec. 31 DR Bad debt expenses $19,300

CR Allowance for Uncollectable $19,300

2. Balance Sheet;

= 116,000 * 15%

= $‭17,400‬

Income Statement;

= $19,300

3. Net realizable value

= Accounts receivable - Estimated uncollectibles

= 116,000 - 17,400

= $‭98,600‬

6 0

3 years ago

Bramble Corporation is a small wholesaler of gourmet food products. Data regarding the store's operations follow: Sales are budg

Sati [7]

Answer:

Bramble Corporation

The difference between cash receipts and cash disbursements for December would be:

= $71,000

Explanation:

a) Data and Calculations:

Balance Sheet October 31

Assets Cash $ 21,400

Accounts receivable 71,400

Merchandise inventory 156,800

Property, plant and equipment,

net of $573,400 accumulated

depreciation 1,095,400

Total assets $ 1,345,000

Liabilities and Stockholders' Equity

Accounts payable $ 255,400

Common stock 821,400

Retained earnings 268,200

Total liabilities and

stockholders' equity $ 1,345,000

November December January

Budgeted sales $320,000 $300,000 $290,000

Cash Collections:

55% month of sale 176,000 165,000 159,500

45% following month 71,400 144,000 135,000

Total collections $247,400 $309,000 $294,500

Cost of goods sold $224,000 $210,000 $203,000

= (70% of Sales for the month)

Ending Inventory 147,000 142,100

Goods available $371,000 $352,000

Beginning Inventory 156,800 147,000 142,100

Purchases $214,200 $205,000

Cash disbursements:

Payment to suppliers 255,400 214,200 205,000

Other monthly exp. 23,800 23,800

Total disbursements $279,200 $238,000

Comparison of Cash receipts with Cash disbursements:

November December

Cash receipts $247,400 $309,000

Cash disbursements $279,200 $238,000

Difference ($31,800) $71,000

8 0

3 years ago

Savallas Company is highly automated and uses computers to control manufacturing operations. The company uses a job-order costin

Setler79 [48]

Answer:

Part 1. Compute the company%u2019s predetermined overhead rate for the year

Predetermined overhead rate = $15 / Computer Hour

Part 2. Compute the underapplied or overapplied overhead for the year.

Underapplied Overheads are: $1,350,000 - $900,000 = $450,000

Part 3. Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate journal entry.

Cost of goods sold $450,000 (debit)

Overhead Account $450,000 (credit)

Part 4. Company allocates any underapplied or overapplied overhead to work in process, finished goods, and cost of goods sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year:

Work In Process $18,000 (debit)

Finished Goods $73,008 (debit)

Cost of Goods Sold $315,000 (debit)

Overhead Account $450,000(credit)

Explanation:

Part 1. Compute the company%u2019s predetermined overhead rate for the year

Predetermined overhead rate = Budgeted Overheads / Budgeted Activity

= $1,275,000/ 85,000

= $15 / Computer Hour

Part 2. Compute the underapplied or overapplied overhead for the year.

Applied Overheads = Actual hours × Predetermined overhead rate

= 60,000 × $15

= $900,000

Actual Overheads = given = $1,350,000

Applied Overheads $900,000 < Actual Overheads $1,350,000, thus we have an underapplied situation

Therefore Underapplied Overheads are: $1,350,000 - $900,000 = $450,000

Part 3. Assume the company closes any underapplied or overapplied overhead directly to cost of goods sold. Prepare the appropriate journal entry.

Cost of goods sold $450,000 (debit)

Overhead Account $450,000 (credit)

Part 4. Company allocates any underapplied or overapplied overhead to work in process, finished goods, and cost of goods sold on the basis of the amount of overhead applied during the year that remains in each account at the end of the year:

Allocations:

Totals Weighted Average% Allocation

Work In Process $43,200 4% $18,000

Finished Goods $280,800 26% $73,008

Cost of Goods Sold $756,000 70% $315,000

Total $1,080,000 100% $450,000

Journals:

Work In Process $18,000 (debit)

Finished Goods $73,008 (debit)

Cost of Goods Sold $315,000 (debit)

Overhead Account $450,000(credit)

5 0

3 years ago

A credit granted to a customer for returned goods requires a debit to a. Accounts Receivable and a credit to a contra-revenue ac

12345 [234]

Answer:

d. Sales Returns and Allowances and a credit to Accounts Receivable.

Explanation:

The entry to record credit granted to customer entails :

Decrease the Assets of Accounts Receivable (credit entry) and Decrease the Sales Revenue (debit entry).

The Recognition of Sales Return and Allowance decreases Sales Revenue.

5 0

3 years ago

Which factor caused a higher oil prices to directly lead to inflation?

defon

The government began to print more money. The increase in the ‘money supply’ which happens faster than the economic growth leads to inflation. When the government prints more money then it brings down the value of the money in the market.

7 0

2 years ago