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Crank
3 years ago
6

MC Qu. 166 Joe Jackson opened Jackson's... Joe Jackson opened Jackson's Repairs, Inc. on March 1 of the current year. During Mar

ch, the following transactions occurred and were recorded in the company's books: Jackson invested $25,000 cash in the business. Jackson contributed $100,000 of equipment to the corporation. The company paid $2,000 cash to rent office space for the month. The company received $16,000 cash for repair services provided during March. The company paid $6,200 for salaries for the month. The company provided $3,000 of services to customers on account. The company paid cash of $500 for monthly utilities. The company received $3,100 cash in advance of providing repair services to a customer. Based on this information, net income for March would be: A. $8,400. B. $5,300. C. $13,400. D. $10,300. E. $13,500.
Business
1 answer:
____ [38]3 years ago
6 0

Answer:

D. $ 10,300

Choice D is correct:  Net income = $ 10,300

Explanation:

Cash Received =                                 $ 16000

Less Rent Paid=                                    ( $ 2000)

Add income =                                          $ 3000

Less Salaries for the month of March = ($ 6200)

Less utilities paid                                       ($ <u>500)</u>

<u>Net income=</u>                                               $ 10,300

Treatments.

Net income is found by deducting expenses from revenues earned

$ 100,000 is the retained earnings so it is not accounted for net income.

Equipment is an asset so it is not accounted for net income.

Cash received is the revenue so it is accounted.

Rent is an expense account so it is subtracted.

Income for service $ 3000 provided is also taken into account on matching principle basis.

Advance received will be adjusted when the services will be rendered on matching principle.

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The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed $2.7 million in long-term debt, $760,000 in the common stock accoun
g100num [7]

Answer: -($2,000,000)

Explanation:

Cash flow to creditors = Increase in long term debt + Interest Paid

                                     = ($2.7 - $4.25) + $180,000

                                     = - $1,550,000 + $180,000

                                     = - ($1,370,000)

Cash flow to shareholders = Dividends paid + Increase in common stock + Increase in additional paid-in surplus account

                                            = $510,000 + ($760,000 - $905,000) + ($6.25 - $7.9)

                                            = $510,000 - $145,000 - $1,650,000

                                            = - ($1,285,000)

Cash flow from Assets = Cash flow to creditors + Cash flow to shareholders

                                      = - ($1,370,000)  - ($1,285,000)

                                      = - ($2,655,000)

Operating cash flow =  Cash flow from Assets + Change in net working capital + net capital spending

                                  =   - ($2,655,000) + (-$195,000) + $850,000

                                  = -($2,000,000)

8 0
3 years ago
Which of the following is true with regard to use of individuals and teams? A. Teams and individuals can be used interchangeably
jeka57 [31]

Answer:

E : Task complexity and requirement of different perspectives must be used as criteria when assigning work to teams over individuals and vice versa

Explanation:

5 0
3 years ago
Read 2 more answers
Finishing Touches has two classes of stock authorized: 8%, $10 par preferred, and $1 par value common. The following transaction
natita [175]

Answer:

FINISHING TOUCHES

Balance Sheet  December 31, 2015

(Stockholders’ Equity Section)

Stockholders’ equity:

Common stock  = $100,000

Preferred stock  =  $30,000

Treasury stock  = -$5,500

Additional paid-in capital  = $3,216,000

Total paid-in capital  = $3,340,500

Retained earnings  = $63,100

(Preferred stock  = -$,30,000)

Total stockholders’ equity = $3,373,600

Explanation:

a) 100,000 Common stock issued at $35 per share with $1 par is valued at $1 in the Common Stock section while the difference $34 $(35 - 1) is taken to the Additional paid-in capital at 100,000 x $34.

b) 3,000 Preferred Stock  issued at $11 per share with $10 par is valued at $10 in the Preferred Stock while the difference $1 $(11 - 10) is taken to the Additional paid-in capital at 3,000 x $1.

c) Treasury stock is the repurchase of stock by the company.  It is a contra account to the equity accounts.  It is therefore deducted from the equity section.  Two methods exist for its treatment: the cost method and the par value treatment.  We used the par value treatment.

This involves stating the par value movements in the Treasury stock while  the additional loss or additional gain is taken to the Additional Paid-in Capital section.

On the other hand, the cost method treats the cost of repurchase in the Treasury stock.

d) Additional Paid-in Capital (APIC) account records the above par value received.  It is also where the above par value is deducted for Treasury Stock.

e) Retained Earnings represent the net income after paying dividends to common stockholders and preferred stockholders.

f) To get the total stockholders' equity, the preferred stock is deducted.  Holders of preferred stock are not equity holders.

7 0
3 years ago
On October 1, year 14, Park Co. purchased 200 of the $1,000-face-value, 10% bonds of Ott, Inc., for $220,000, including accrued
lana [24]

Answer:

Bond receivable - Ott Inc 200,000

Premium on B.R Ott Inc       14,400

Interest receivables             10,000

Net:                                     224,400

Explanation:

As Park Co uses straight line method, we don't have to solve for the present value of the bond we directly label the difference between cost and face value as premium or discount accordingly. Premium when above and discount when lower.

accrued interest:

200 bonds x $1,000 each x 10% x 3/12 = 5,000

220,0000 cost - 5,000 interest - 200,000 face value = 15,000 bond premium

Balance at December year 15:

the interest payable will be for the entire period:

200,000 x 10% / 2 = 10,000

the premium will be amortized for 3 month.

and it has outstanding 75 month to mature from October 1st

15,000 x 3 / 75 months = 600

carrying value 15,000 - 600 = 14,400

8 0
3 years ago
Sioux Corporation is estimating the following sales for the first four months of next year:January$210,000February$280,000March$
Serjik [45]

Answer:

$358,000

Explanation:

Calculation to determine how much cash should Sioux expect to collect during the month of April

April sales collected in April ($370,000 × 60%) $222,000

March sales collected in April ($340,000 × 40%) $136,000

Total cash collections in April $358,000

($222,000+$136,000)

Therefore the amount of cash that Sioux should expect to collect during the month of April is $358,000

6 0
3 years ago
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