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umka21 [38]
4 years ago
13

June 1 Sheldon Cooper invests $4,000 cash in exchange for shares of common stock in a small welding business. 2 Purchases equipm

ent on account for $1,200. 3 $800 cash is paid to landlord for June rent. 12 Bills P. Leonard $300 after completing welding work done on account.
Business
1 answer:
algol [13]4 years ago
4 0

Answer:

Transactions:

1. June 1 Monthly invests $4,000 cash in exchange for shares of common stock in a small welding business.

2. June 2 Purchases equipment on account for 1,200.

3. June 3 $800 cash is paid to landlord for June rent.

4. June 12 Bills P. Leonard $300 after completing welding work done on account.

Journal Entries:

1.

June 1              Dr.      Cr.

Investment   $4,000

Cash                          $4,000

2.

June 2              Dr.      Cr.

Equipment     $1,200

Account Payable       $1,200

3.

June 3                Dr.        Cr.

Rent Expense   $800

Cash                               $800

4.

June 12                                Dr.        Cr.

P. Leonard (Receivable)     $300

Welding Service Revenue              $300

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4 years ago
Sag manufacturing is planning to sell 400,000 hammers for $6 per unit. The contribution margin ratio is 20%
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The question is incomplete. The following is the complete question.

Sag Manufacturing is planning to sell 400,000 hammers for $6 per unit. The  contribution margin ratio is 20%. If Sweet will break even at this level of sales, what are  the fixed costs?

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The break even sales is the value of total sales or total revenue where it equals total cost and the company makes no profit or no loss. The break even in sales is calculated by dividing the fixed costs by the contribution margin ratio.

Break even in sales = Fixed cost / Contribution margin ratio

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