Answer:
(a) January 1
Dr Petty cash $200
Cr Cash $200
B. January
Dr Phone Expense $17.50
Dr Automobile Expense 33
Dr Joseph Levine, Drawing 56
Dr Postage Expense 12.50
Dr Charitable Contributions Expense 15
Dr Miscellaneous Expense 49
Cr Petty cash 183
January 31
Dr Petty cash $183
Cr Cash $183
Explanation:
(a) Preparation of the journal entry to establish a petty cash fund
January 1
Dr Petty cash $200
Cr Cash $200
b. Preparation of the journal entry to replenish the petty cash fund.
January
Dr Phone Expense $17.50
Dr Automobile Expense 33
Dr Joseph Levine, Drawing 56
Dr Postage Expense 12.50
Dr Charitable Contributions Expense 15
Dr Miscellaneous Expense 49
Cr Petty cash 183
($17.50+33+56+12.50+15+49)
January 31
Dr Petty cash $183
Cr Cash $183
($17.50+33+56+12.50+15+49)
Answer:
<em>Therefore the gain or loss to the current shareholders of Goodday if the merger provides no synergy is -$10
</em>
Explanation:
Given:
<em>The Total debt remains same after merger at Pre-merger value = $80 + $40 = $120
</em>
<em>The Value of entities together in Economic state 1 = $160 + $20 = $180
</em>
<em>
Net equity in economic state 1 = Value of entities – total debt
</em>
<em>
= $180 - $120 = $60
</em>
<em>Then,</em>
<em>
The Value of entities in Economic state 2 = $40 + $80 = $120
</em>
<em>
Net equity in economic state 2 =
</em>
<em>= $120 - $120 = $0
</em>
<em>
The Both states are equally possible.
</em>
<em>
Expected value of combined entity = ($60 + $0)/2 = $30
</em>
<em>
Market value of Goodday equity before merger = $40
</em>
<em>
Synergy effect = Expected value of combined entity - Market value of Goodday equity before merger= $30 - $40 = -$10
</em>
Answer: a different product mix, different total profit.
Explanation:
It should be noted that in a situation whereby constraint is binding and a change with regards to the availability that is within the range exist, this will bring about a change in both the product mix and total profit.
With regards to the question, since the machine hour constraint is binding and the original amount of machine hours available is 200 minutes, and the range of feasibility is from 130 minutes to 300 minutes, then it should be noted that the provision of two additional machine hours will result in a different product mix, different total profit.
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
(a) $2,040
(b) $1,020
Explanation:
(a) Under the accrual method of accounting revenue is recognized in the month when product is delivered,
Revenue is recognized on the March income statement from this order:
= Units Delivers × Unit price
= 136 × $15
= $2,040
(b) Revenue is recognized on the April income statement from this order:
= Units Delivers × Unit price
= 68 × $15
= $1,020