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3 years ago

The summaries of balance sheet and income statement data follow.

Business

1 answer:

LuckyWell [14K]3 years ago

3 0

Answer:

Total owner’s equity = $23,000

Total liabilities =$50,000

Investment by owner = $20,000

Explanation:

We use the accounting equation which is presented below:

Total assets = Total liabilities + owners equity

At the beginning of the year

The owner equity would be

= Total assets - total liabilities

= $85,000 - $62,000

= $23,000

At the end of the year

The total liabilities would be

= Total assets - total owners equity

= $110,000 - $60,000

= $50,000

The investment by owner would be

= Ending balance of owners equity + drawing - opening balance of owners equity + total expenses - total revenues

= $60,000 + $18,000 - $23,000 + $140,000 - $175,000

= $20,000

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What is the maximum IRA contribution that Mr. Janson can make under each of the following assumptions? He is age 20 and single.

vladimir1956 [14]

Answer:

He is age 20 and single. His only income item is $12,100 interest from a trust fund. NO CONTRIBUTION SINCE HE HAS NO EARNED INCOME

He is age 40 and single. His only income item is a $34,900 share of ordinary income from a partnership. MAXIMUM CONTRIBUTION OF $6,000

He is age 60 and single. His only income item is $21,300 wages from his job. MAXIMUM CONTRIBUTION OF $7,000

He is age 46 and files a joint return with his wife. His sole proprietorship generates a $7,790 loss, and his wife’s salary is $46,700. MR. JANSON CANNOT CONTRIBUTE ANY MONEY TO THE IRA ACCOUNT, BUT HIS WIFE CAN CONTRIBUTE $6,000 ON HER ACCOUNT AND $6,000 ON MR. JANSON'S ACCOUNT.

Explanation:

In 2019, the limit for RA contributions increased by $500 to:

under age 50 ⇒ $6,000 per year
over age 50 ⇒ $7,000 per year

only earned income can be contributed

you cannot contribute more than what you earn

8 0

3 years ago

Read 2 more answers

Perform a sensitivity analysis by answering the following questions: a. What is the break-even point in sales dollars for RBC? b

Rzqust [24]

a). Breakeven point = Total fixed costs ÷ Contribution margin ratio

Contribution ratio = Contribution margin ÷ Total sales

Contribution ratio = $822,212 ÷ $1,953,000 = 0.421

Breakeven point = $520,000 ÷ 0.421= $1,235,154.

b). Margin of safety = Total Sales - Break-even point

Margin of safety = $1,953,000 – $1,235,154= $717,846.

c) Target profit =(Total fixed costs + Target profit) ÷ Contribution margin ratio

Target profit = ($520,000 + $200,000) ÷ 0.421= $720,000 ÷ 0.421= $1,710,214

Explanation:

The Data sheet has been added as an attachment

8 0

3 years ago

The CPI is a measure of the overall cost of goods and services produced in the economy the overall cost of inputs purchased by a

lakkis [162]

Answer:

The overall cost of buying a market basket of goods and services by a typical customer.

Explanation:

The question is incomplete, but I figured that the question is trying to find out the correct meaning of CPI with different options provided. The correct question should be:

The CPI is a measure of

the overall cost of goods and services produced in the economy
the overall cost of inputs purchased by a typical producer
the overall cost of buying a market basket of goods and services by a typical consumer
the overall cost of stocks on the New York Stock Exchange

Which option is correct?

CPI or Consumer Price Index evaluates the average prices of a basket of consumer goods and services, for instance, medical care, food, and transportation. It is evaluated by analyzing the changes in and averaging the price of each item in the basket of consumer goods and services.

The CPI is usually used especially to discover situations of inflation of deflation.

5 0

2 years ago

Jim Smith is a salesman who receives a $1,100 draw per week against his commission. He receives a 12% commission as an incentive

blondinia [14]

Answer:

$29,000

Explanation:

Given that:

Draw per week: $1,100
Commission rate: 12%
Sales for Jim were $205,000 for the month.
4 weeks in a month

Assuming a four-week month, Jim's commission :

Commission on revenue + commission of total draws

= $205,000*12% + 4*$1,100

= $24,600+ $4,400

= $29,000

Hope it will find you well.

3 0

3 years ago

For calendar year 2020, Stuart and Pamela Gibson file a joint return reflecting AGI of $357,700. Their itemized deductions are a

sesenic [268]

Answer:

$56,130

Explanation:

Calculation to determine what the amount of itemized deductions the Gibsons may claim for the year is

Stuart and Pamela Gibson

Casualty loss $17,430

[$53,200 – (10% × $357,700)]

Home mortgage interest 21,280

State tax 10,000

(18,000 income and 16,300 property

Limited to 10,000)

Charitable Contributions 28,700

Total itemized deductions $56,130

Therefore the amount of itemized deductions the Gibsons may claim for the year is $56,130

3 0

3 years ago