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2 years ago

Cullumber Company has the following balances in selected accounts on December 31, 2020.

Business

1 answer:

wolverine [178]2 years ago

4 0

Answer and Explanation:

The adjusting entries are shown below:

1. Interest expense [$11,400 × 9% × 4 ÷ 12] $342

To Interest payable $342

(being accrued interest expense is recorded)

2. Supplies expense [$2,200 - $820] $1,380

To Supplies $1,380

[Being supplies expense is recorded]

3. Depreciation expense $1,200

To Accumulated depreciation-Equipment $1,200

[Being depreciation expense is recorded]

4 Insurance expense [$3,960 × 7 ÷ 12] $2,310

To Prepaid insurance $2,310

[being insurance expense is recorded]

5 Unearned service revenue $7,000

To Service revenue $7,000

[Being revenue from unearned is recorded]

6 Accounts receivable $4,200

To Service revenue $4,200

[Being accrued service revenue is recorded]

7 Salaries expense [$5,400 × 3 ÷ 5] $3,240

To Salaries payable $3,240

[being accrued salaries expense is recorded]

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Danner Company expects to have a cash balance of $58,050 on January 1, 2017. Relevant monthly budget data for the first 2 months

Alina [70]

Answer:

January February

Beginning Cash Balance 58,050 35,475

Add: Receipts

Collections from Customers 109,650 193,500

Sale of Marketable Securities 15,480 0

Total Receipts 125,130 193,500

Total Available Cash 183,180 228,975

Less: Disbursements

Direct Materials 64,500 96,750

Direct Labour 38,700 58,050

Manufacturing Overhead 25,155 30,315

Selling and Administrative 19,350 25,800

Total Disbursements 147,705 210,915

Cash Balance 35,475 18,060

Financing

Add: Borrowings 0 7,740

Less: Repayments 0 0

Ending Cash Balance 35,475 25,800

The company wants to maintain a minimum monthly cash balance of $25,800 so in February they will have to borrow;

= 25,800 - 18,060

= $7,740

8 0

3 years ago

Having fewer customers in business markets in comparison with consumer markets:

Gemiola [76]

Having fewer customers in a business market can be a positive, since it allows for the business to get to know those customers they do serve more closely and allows them to better cater to their needs. However, it can also be a negative because it makes every transaction with a customer vital to the overall bottom line and the vitality of the business.

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3 years ago

A differentiated product is a product that: a. always costs more than rival products. b. is offered free of cost on purchase of

sweet-ann [11.9K]

Answer:

Option E Provides greater reliability that the rival products

Explanation:

The reason is that differentiation brings uniqueness in the product which the very few rivals that negligible in amount can match. The example includes Mercedes pursue differentiated strategy and the number of firms that can match its differentiation at a competitive price are very few which includes BMW, Ford and Electric Motors whereas in India the only comply that can match its innovation is BMW. Likewise in many other countries Mercedes is always priority of customers because of its brand recognition and creates a perception of great personality of the owner of the car. Thats the reason why in many countries the President and state guests are received in Mercedes.

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3 years ago

Suppose Torche Corporation has the following revenue and expenses for 2019:

OlgaM077 [116]

Answer:

The value of net income is $3,008,000

Explanation:

Income statement:

Revenues= 9,100

COGS= (2,730)

Gross profit= 6,370

Other Expenses= (600)

Sales, General, & Administrative Expenses= (910)

Depreciation Expenses= (500)

Interest Expenses= (180)

EBT= 4,180

Tax= (1,672)

Depreciation= 500

Net income= 3,008

The value of net income is $3,008,000

8 0

3 years ago

Which of the following items will not appear in the operating section of patnode's 2005 indirect method cash flow statement?

galben [10]

Answer:

B. Add: decrease in accounts payable $1,000.

Explanation:

Operating Cash Flow (OCF) can be described as the cash that comes from the normal operating activities a company during a particular period.

The operating cash flow section starts with net income and other items that appear under it include change in current assets and current liabilities.

The following are 4 rules that employed to determine the nature of an adjustment to a current asset or current liability under the operating cash flow section of the cash flow statement:

Rule 1: When a current asset increases, you deduct.

Rule 2: But when a current asset reduces, you add.

Rule 3: When a current a liability increases, you add.

Rule 4: But when a current liability reduces, you deduct.

The 4 rules are now applied to this question as follows:

A. Deduct: increase in accounts receivable $3,000.

Account receivable is a current asset and there is an increase in it. Based on Rule 1, we deduct. Therefore, what is done is correct and will appear in the operating section of the cash flow.

B. Add: decrease in accounts payable $1,000.

Accounts payable is a current liability and there is a decrease in it. Based on Rule 4, we should deduct. Therefore, what is done is wrong and will not appear in the operating section of the cash flow.

C. Add: increase in taxes payable $2,400.

Taxes payable is a current liability and there is an increase in it. Based on Rule 3 above, we add. Therefore, what is done for this is correct and will appear in the operating section of the cash flow.

D. Add: decrease inventories $6,000.

Inventory is a current asset and there is a decrease in it. Based on Rule 2 above, we add. Therefore, what is done is correct and will appear in the operating section of the cash flow.

Conclusion

Based on the analysis above, only option B is wrong and will not appear in the the operating section of the cash flow. Therefore, the answer is B. Add: decrease in accounts payable $1,000.

4 0

3 years ago