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harkovskaia [24]
3 years ago
9

Lisa Frees and Amelia Ellinger have been operating a catering business for several years. In March, the partners plan to expand

by opening a retail sales shop. They have decided to form the business as a corporation called Traveling Gourmet, Inc. The following transactions occurred in March:
a. Received $84,000 cash from each of the two shareholders to form the corporation, in addition to $2,400 in accounts receivable, $6,100 in equipment, a van (equipment) appraised at a fair value of $13,800, and $1,400 in supplies. Gave the two owners each 580 shares of common stock with a par value of $1 per share.
b. Purchased a vacant store for sale in a good location for $400,000, making an $80,000 cash down payment and signing a 10-year mortgage note from a local bank for the rest.
c. Borrowed $54,000 from the local bank on a 10 percent, one-year note.
d. Purchased food and paper supplies costing $11,000 in March; paid cash.
e. Catered four parties in March for $4,600; $1,680 was billed and the rest was received in cash.
f. Sold food at the retail store for $17,100 cash; the food and paper supplies used to cost $10,910. (Hint: Record two the revenue effect separate from the expense effect.)
g. Received a $460 telephone bill for March to be paid in April.
h. Paid $403 in gas for the van in March.
i. Paid $7,080 in wages to employees who worked in March.
j. Paid a $340 dividend from the corporation to each owner.
k. Purchased $54,000 of equipment (refrigerated display cases, cabinets, tables, and chairs) and renovated and decorated the new store for $22.000 (added to the cost of the building); paid cash.

Prepare an unadjusted classified income statement in good form for the month of March.

Business
1 answer:
melisa1 [442]3 years ago
3 0

Answer:

See explanation

Explanation:

See the image below to get the appropriate answer:

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In its first year of business, Borden Corporation had sales of $2,040,000 and cost of goods sold of $1,220,000. Borden expects r
nordsb [41]

The entries are as follows

<u>To record estimated returns on Sales</u>

Debit: Sales Refund Payable Account $142,800

Credit: Accounts Receivables $142,800

<u>To record estimated Cost of Sales returns</u>

Debit: Inventory Returns Estimated Account $85,400

Credit: Inventory on Sales on Returns $85,400

<u>Explanation:</u>

<u>To derive the figure for Sales Refund payable for the year</u>

7% of $2,040,000

=7/100*2040000= $142,800

<u>To derive the figure for Inventory cost on Sales Refund payable for the year </u>

7% of $1,220,000

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6 0
3 years ago
Jamara has started a home party business that hosts parties and those attending paint signs. Jamara must pay $500 a year to be a
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Answer:

Unit contribution margin= $15

Explanation:

Giving the following information:

These items all add up to $10 on average. Jamara charges each participant $25 for each sign they make.

The contribution margin is the result of deducting from the selling price, the unitary variable cost.

Unit contribution margin= selling price - unitary variable cost

Unit contribution margin= 25 - 10

Unit contribution margin= $15

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Troy Engines, Ltd., Manufactures A Variety Of Engines For Use In Heavy Equipment. The Company Has Always Produced All Of The Nec
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Answer:

Total relevant cost for making the parts =$387,400

Total relevant cost for buying the parts = $465,000

Explanation:

The computation of total cost of making and buying the parts is shown below:-

                                           Make         Buy

Cost of purchasing             0               $465,000

                                                            (15,000 × $31)

Direct material                $135,000     0

Direct labor                     $165,000     0

Variable manufacturing

overhead                          $30,000     0

Fixed manufacturing

overhead                          $57,240     0

Total relevant cost           $387,400     $465,000

8 0
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Which of the following factors should be included in the cash flows used to estimate a project's NPV?a. All costs associated wit
ser-zykov [4K]

Answer:

c. The end-of-project recovery of any working capital required to operate the project.

Explanation:

In the Process of Computing Net present value of Project , we need to to consider all the cash in flows. To Operate the Project we need an amount in excess the amount invested in the Project assets, that amount is called Working capital. This amount rotate throught life of the Project and the project relief that working capital on the end of the Project. But in calculating Present value of cash we also need to calculate the Present value of working capital that recovered at the end of the porject by Multiplying with Present value factor at Required rate.

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A recent college graduate with a major in economics attends a job fair but has not yet found a job. this graduate is counted as
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A recent college graduate with a major in economics attends a job fair but has not yet found a job. This graduate is counted as a Frictionally unemployed worker.

What is frictional unemployment?

Frictional unemployment happens when a person is voluntarily job searching or searching for a new career. Frictional unemployment isn't necessarily a bad thing. In fact, because frictional unemployment is voluntary, it can be a sign of a healthy economy. It means that employees are seeking new jobs and new careers

What is an example of frictional unemployment?

Examples of frictional unemployment include: Employees leaving their current positions to find new ones. Employees seeking a career change. Individuals entering the workforce for the first time after graduating from college or searching for their first job.

Learn more about frictional unemployment:

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