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kap26 [50]
3 years ago
9

Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transa

ctions would have upon cash and net income. The first transaction has been completed as an example.
Cash Net Income
A. Purchased $100 of supplies for cash. –$100 $0
B. Recorded an adjusting entry to record
use of $30 of the above supplies.
C. Made sales of $1,250, all on account. 1297 1164
D. Received $850 from customers in payment
of their accounts. 865 299
E. Purchased equipment for cash, $2,600. 2528 2229
F. Recorded depreciation of building for period
used, $650. 610 2839
Business
1 answer:
Jlenok [28]3 years ago
3 0

Answer:

                                                                  Item  cash      Net income  

a  Purchase of Supplies of cash                 -$100                   -

b  Adjusting entry for use of supplies            -                     -$30

c  Made sales on account                               -                   $1,250

                                             Or

   Made sales on account                               -                   $1,297

d Received cash from customer on acct     $850                  -

                                           Or

   Received cash from customer on acct     $865                  -

e  Purchased equipment for cash               -$2,600              -

                                            Or

   Purchased equipment for cash               -$2,528                -

f   Depreciation of building to be recorded      -                  -$650

                                         Or

   Depreciation of building to be recorded       -                 -$610

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Luba_88 [7]

Answer:

$140,000

Explanation:

Computation of the company’s net income for 2014.

Using this formula

Net income=Revenue – Expenses

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Net income=$200,000 - $40,000+$20,000

Net income= $140,000

Therefore the company’s net income for 2014 will be $140,000

6 0
2 years ago
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The Hype Company's currently outstanding bonds have a 10 percent coupon and a 11 percent yield to maturity. Hype believes it cou
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Answer:

After tax cost of debt is 6.82%

Explanation:

Currently the yield to maturity is the  pre-tax cost of debt for Hype company, however the after tax cost of debt considers that the bonds are tax deductible , its actual is less than the pre-tax cost of debt , hence the after-tax cost of debt is shown below

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after tax cost of debt=11%*(1-0.38)

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In 2021, its first year of operations, Kimble Corp. has a $900,000 net operating loss when the tax rate is 20%. In 2022, Kimble
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Answer and Explanation:

Kimble Corp entries in 2021 to record the tax effects of the loss carryforward

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(b)

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The Current bid/ask price = Ask price - Bid price

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The commission amount should be ignored in the computation part. Hence, it will not be considered as it is not relevant.

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