All categories

3 years ago

Part A Smith Company experienced the following accounting events during 2018:

Business

1 answer:

ValentinkaMS [17]3 years ago

6 0

Answer:

1. Cash (Dr.) $2,000

Common Stock (Cr.) $2,000

2. Accounts Receivable (Dr.) $1,500

Revenue (Cr.) $1,500

3. Cash (Dr.) $1,200

Accounts Receivable (Cr.) $1,200

4. Salaries expense accrued (Dr.) $900

Salaries payable (Cr.) $900

5. Salary Payable (Dr.) $700

Cash (Cr.) $700

6. Dividends paid (Dr.) $100

Cash (Cr.) $100

7.Prepaid Insurance (Dr.) $360

Cash (Cr.) $360

8. Cash (Dr.) $2,880

Unearned revenue (Cr.) $2,880

9. Insurance Expense (Dr.) $290

Prepaid Insurance (Cr.) $290

10. Unearned revenue (Dr.) $2,880

Revenue (Cr.) $2,880.

Explanation:

Smith company has started its business and incurred the transactions. These transactions need to be recorded to charge each and every expense in their respective accounts. The expenses are recorded in the journal entries and then ledger accounts will be formed to summaries all the expenses in their respective account heads.

You might be interested in

Which statements describe a Treble Clef correctly? Pick Two

mariarad [96]

Answer: c and a

Explanation:

4 0

3 years ago

In 1931, the U.S. President was paid a salary of $75,000. Government statistics show a consumer price index of 15.2 for 1931 and

Gelneren [198K]

Answer: $1,021,382

Explanation:

The Consumer Price index (CPI) is an economic measure that enables us calculate inflation. It checks for a price changes in a group or basket of goods and then averages these price changes to find out how much they may have changed overtime.

A higher CPI means prices have increased.

CPI can then be used to calculate the potential values of goods in different years using another year as a base. This means that prices of goods in one year can be written in terms of prices in another year.

This can be done by Dividing the CPI in the current year by the CPI in the base year (year being expressed in terms of) and then multiplying the result by the price of the good in question.

In this case the good is the salary of $75,000.

The 2007 equivalent of a 1931 salary will therefore be,

= 75,000 * ( 207/15.2)

= $1,021,381.57

= $1,021,382

8 0

3 years ago

An institutional customer says the following to his broker: "Buy 100,000 shares of ABC stock whenever you think the time is best

Furkat [3]

" The order can be accepted as given, and can be executed at the discretion of the brokerage firm at any time or day " is TRUE about the handling of this order.

Explanation:

In this case "Discretion" applies to free trading when a broker conducts business in an user's account without any of the customer being contacted first.

It typically means that the broker will determine how many stock, commitments or other securities to purchase or sell, at what cost, without customer input.

For example, a consumer might approve only blue-chip investments. If an investor prefers socially responsible investments, the broker may not bet in stocks or under-funded businesses. The investor can advise the broker, but allow the broker to spend as the broker sees fit, to preserve a certain stock to bond ratio. A broker handling a discretionary account shall follow (if applicable) the customer's explicit orders and limitations.

7 0

3 years ago

When you purchased your house, you took out a 30-year annual-payment mortgage with an interest rate of 6 percent per year (compo

Rama09 [41]

Answer: $129,931.24

Explanation:

Annuity is a stream of equal cash flows that has a specified number of periods. To get the payoff amount for living in the house for 12 years, we calculate the present value of the annuity.

The payoff amount for living in the house for 12 years is $129,931.24.

Check the attached document for the calculation.

7 0

3 years ago

Read 2 more answers

Currently, a monopolist’s profit-maximizing output is 600 units per week and it sells its output at a price of $40 per unit. The

natta225 [31]

Answer:

a. What are the firm's weekly economic profits?

The company's weekly economic profit = total revenue - total accounting cost - total opportunity costs = (600 units x $40) - $6,000 = $24,000 - $6,000 = $18,000

b. What is the firm's marginal cost?

since the firm is maximizing its profits, its marginal revenue = marginal cost. Since the marginal revenue of the last unit sold was $25, then the marginal cost of the last unit sold must also be $25.

c. What is the firm's average total cost?

the firm's average total cost = total cost / total output = $6,000 / 600 units = $10 per unit

7 0

3 years ago