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4 years ago

The following is a partial trial balance for General Lighting Corporation as of December 31, 2021:

Business

1 answer:

baherus [9]4 years ago

5 0

Answer:

1. single-step income statement for 2021

Sales revenue 3,100,000

Less Cost of goods sold (1,340,000)

Gross Profit 1,760,000

Less Expenses :

Loss on inventory write-down (obsolescence) 350,000

Selling expense 450,000

General and administrative expense 225,000

Interest revenue (95,000)

Loss on sale of investments 30,000

Interest expense 94,000 (1,054,000)

Net Income before tax 706,000

Income tax expense (176,500)

Net Income after tax 529,500

Earnings per share (EPS) $1.77

2. multiple-step income statement for 2021

Sales revenue 3,100,000

Less Cost of goods sold (1,340,000)

Gross Profit 1,760,000

Less Operating Expenses :

Loss on inventory write-down (obsolescence) 350,000

Selling expense 450,000

General and administrative expense 225,000 (1,025,000)

Operating Income 735,000

Less Non-Operating Expenses :

Interest revenue (95,000)

Loss on sale of investments 30,000

Interest expense 94,000 (29,000)

Net Income before tax 706,000

Income tax expense (176,500)

Net Income after tax 529,500

Earnings per share (EPS) $1.77

Explanation:

The difference in these Income statements is that, the Multi-step statement clearly shows income derived from Primary Activities (Operating) whist the Single step statement does not.

<u>Additional Notes :</u>

<em>Earnings per share (EPS) = Earnings Attributable to holders of common stock ÷ Weighted Average Number of Common Stocks</em>

Therefore,

Earnings per share (EPS) = $529,500 ÷ 300,000

= $1.77

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The complete question is,

Jim was asked to determine the impressions for an ad campaign. He will determine

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How useful the ad message is to the consumer.

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2 years ago

Suppose that if your income is $100,000, your tax is $20,000, but if your income is $200,000, your tax is $45,000. Such a tax is

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Answer:

"Progressive" would be the correct answer.

Explanation:

A Progressive tax was indeed determined by the capability of the tax authorities to charge or compensate. It wants to inflict a lower corporate rate of taxation on low-wage earners unlike those with maximum income levels.
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3 years ago

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3 years ago

Ayala Architects incorporated as licensed architects on April 1, 2017. During tne first month of the operation of the business,

Artyom0805 [142]

Answer:

Ayala Architects

a) Journal Entries:

Apr. 1: Debit Cash $18,000

Credit Common Stock $18,000

To record the issuance of common shares for cash.

Apr. 2: Debit Rent Expense $900

Credit Cash $900

To record the payment of rent for the month.

Apr. 3: Debit Supplies $1,300

Credit Accounts payable (Burmingham Company) $1,300

To record the purchase of supplies on account.

Apr. 10: Debit Accounts receivable $1,900

Credit Service Revenue $1,900

To record the sale of services on account.

Apr. 11: Debit Cash $700

Credit Unearned Service Revenue $700

To record receipt of cash in advance for services.

Apr. 20: Debit Cash $2,800

Credit Service Revenue $2,800

To record the receipt of cash for services rendered.

Apr. 30: Debit Salaries and Wages Expense $1,500

Credit Cash $1,500

To record payment of salaries for the month. ($375 * 4 weeks)

Apr. 30: Debit Accounts payable (Burmingham Company) $300

Credit Cash $300

To record payment on account.

b) T-accounts

Cash

Account Titles Debit Credit

Common stock $18,000

Rent $900

Unearned revenue 700

Service revenue 2,800

Salaries and wages 1,500

Accounts payable 300

Balance 18,800

Accounts Receivable

Account Titles Debit Credit

Service Revenue $1,900

Supplies

Account Titles Debit Credit

Accounts payable $1,300

Accounts Payable

Account Titles Debit Credit

Supplies $1,300

Cash $300

Balance 1,000

Unearned Service Revenue

Account Titles Debit Credit

Cash $700

Common Stock

Account Titles Debit Credit

Cash $18,000

Service Revenue

Account Titles Debit Credit

Accounts receivable $1,900

Cash 2,800

Balance $4,700

Salaries and Wages Expense

Account Titles Debit Credit

Cash $1,500

Rent Expense

Account Titles Debit Credit

Cash $900

c) Trial Balance

As of April 30, 2017:

Account Titles Debit Credit

Cash $18,800

Accounts receivable 1,900

Supplies 1,300

Accounts payable $1,000

Unearned Service Revenue 700

Common Stock 18,000

Service Revenue 4,700

Salaries and wages exp. 1,500

Rent Expense 900

Totals $24,400 $24,400

Explanation:

a) Data and Analysis:

Apr. 1: Cash $18,000 Common Stock $18,000

Apr. 2: Rent Expense $900 Cash $900

Apr. 3: Supplies $1,300 Accounts payable (Burmingham Company) $1,300

Apr. 10: Accounts receivable $1,900 Service Revenue $1,900

Apr. 11: Cash $700 Unearned Service Revenue $700

Apr. 20: Cash $2,800 Service Revenue $2,800

Apr. 30: Salaries and Wages Expense $1,500 Cash $1,500 ($375 * 4 weeks)

Apr. 30: Accounts payable (Burmingham Company) $300 Cash $300

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3 years ago

A bank loan has been given to a customer at a bank with a FIXED nominal interest rate of 13%. The real

dmitriy555 [2]

Answer:

The new real interest rate is 15%

and the lender was hurt.

O 15%; lender

Explanation:

a) Data and Calculations:

Fixed nominal interest rate = 13%

Real interest rate for the bank's profit margin = 10%

Inflation rate = 3% (13% - 10%)

Unanticipated inflation rate = 7%

Nominal interest rate = 17% (10% + 7%)

But the bank could not increase its fixed nominal interest rate to match the nominal interest rate.

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3 years ago