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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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Nikitich [7]

Answer:

The correct answer is C.

Explanation:

In the inventory of a company, when it is on the balance sheet date, goods in transit purchased at an f.o.b. shipping point must be included.

Goods in transit are goods that are not physically in the warehouse but have already been paid for by the company. This already acquired merchandise is property of the company, only that its arrival is only waited for to the deposit.

Have a nice day!

8 0
3 years ago
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Suppose that a project has a depreciable investment of $600,000 and falls under the following accelerated depreciation schedule
Alex

Solution :

Depreciation rates   16.67%      16.67%    16.67%     16.67%      16.67%      16.67%

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Depreciation        $100000  $100000 $100000  $100000  $100000  $100000

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Depreciation        $35000    $35000    $35000   $35000   $35000  $35000

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Depreciation rate   20%            32%         19.20%      11.50%      11.50%     5.80%

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Depreciation       $120000  $192000   $115200  $69000  $69000  $34800

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6 0
3 years ago
Materials purchased on account during the month amounted to $180,000. Materials requisitioned and placed in production totaled $
Alika [10]

Answer:

Part a. Record the transaction on the day the materials were bought.

Materials Account $180,000 (debit)

Cash $180,000 (credit)

Part b. Record the transaction on the day the materials were requisitioned

Work In Progress $165,000 (debit)

Materials Account $165,000 (credit)

Explanation:

Part a. Record the transaction on the day the materials were bought.

Recognise the Assets of Materials Purchased and Derecognise Cash to depict ouflow of economic benefits

Part b. Record the transaction on the day the materials were requisitioned

De-recognise the Materials applied in Production Process and Recognise the cost in Work In Progress Account

6 0
3 years ago
Liz Mulig earns 52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which CPI increases by 3.8%
Sindrei [870]

Answer:

She lost $754.05.

Explanation:

Giving the following information:

Liz Mulig earns 52,000 per year as a philosophy professor. She receives a raise of 2.5% in a year in which CPI increases by 3.8%.

<u>The rise in her salary allows her to increase her purchasing power. On the contrary, inflation decreases purchasing power. We need to calculate the differences between both effects and determine whether she can buy more or less.</u>

<u></u>

Increase in salary= 52,000*1.025= $53,300

Inflation effect= 52,000/(1-0.038)= $54,054.05

To maintain her purchasing power, now, she needs to earn $54,054.05.

She lost $754.05.

6 0
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Answer:

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  • Giving the incentive to labor at the particular interval of time we will increase the productivity.
3 0
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