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3 years ago

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

Business

1 answer:

baherus [9]3 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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Answer:

B) diversity pairing

Explanation:

When people of different cultural backgrounds, sexes, races, are paired for mentoring, it is known as diversity pairing.

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3 years ago

Crusher Company has provided the following data for maintenance cost:

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Answer:

Total Fixed Cost: $13,020

Explanation:

Fixed cost is calculated using high low method.

High low method seeks to find variable cost per hour / unit by dividing the difference of cost (total cost at two levels) with difference of activity level. Than variable cost is reduced from total cost to identify the fixed cost. Below is the calculation:

Current year cost: $ 37,850 Current year machine hours: 19,100

Prior year cost: $ 33,300 Prior year machine hours: 15,600

Variable cost per machine hour = <u>Current year cost - Prior year cost</u>

Current year machine hour - prior year machine hour

Variable cost per machine hour: <u>37,850 - 33,300</u> = $1.30 per machine hour

19,100 - 15,600

Variable cost current year: ($1.30 * 19,100) = $24,830

Variable cost prior year: ($1.30 * 15,600) = $20,280

Fixed cost: Total cost - variable cost

Fixed cost current year: 37,850 - 24,830 = $13,020

Fixed cost prior year: 33,300 - 20,280 = $13,020

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3 years ago

Dec. 1 Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid

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Explanation:

The Journal entry is shown below:-

a. Merchandise inventory Dr, $4,700

To accounts payable $4,700

(Being Purchase of merchandise is recorded)

b. Accounts payable Dr, $1,600

To Merchandise inventory $1,600

(Being Return of merchandise is recorded)

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3 years ago

You are considering taking out one of two loans. Loan R has a principal of $17,550, an interest rate of 5. 32% (compounded month

Evgesh-ka [11]

The difference between the monthly payment of R and S is equal to $48.53 by following the compound interest formula. Thus, Loan R's monthly loan amount is greater than Loan S.

<h3>What is a Compound interest loan?</h3>

Combined interest (or compound interest) is the loan interest or deposit calculated based on both the original interest and accrued interest from earlier periods.

$\rm\,For\,R\\\\P = \$\,17,550\\r\,= 5.32\%\\Time\,= n= 7\,years\\Amount\,paid= [P(1+\dfrac{r}{100\times12})^{n\times12} ]\\=[ 17,550 (1+\dfrac{5.32}{100\times12})^{7\times12} ]\\= [ 17,550 (\dfrac{12.0532}{12})^{84} ]\\\\= [ 17,550 (1.00443^{84} ]\\\\= \$ 25,440.48\\\\Total\,monthly\,payment = \rm\,\dfrac{25,440.48}{84}\\\\= \$\, $302.86\\\\$

$\rm\,For\,S =\\\\P=\,\$ 15,925\\r\,= 6.07\%\\T=n= 9\,years\\\\Amount\,paid\,= [P(1+\dfrac{r}{100\times12})^{n\times12} ]\\\\\= [15,925(1+\dfrac{0.0607}{12})^{9\times12} ]\\\\\\= [15,925(1+\dfrac{0.0607}{12})^{108} ]\\\\=[15,925(1.7247.84)} ]\\\\\= \$27,467.19\\\\Total\,monthly\,payment =\dfrac{\rm\,\$\,27,469.19}{108}\\\\= \$ 254.326\\\\$

The difference between the monthly payment of R and S is equal to $48.53.

Hence, Loan R's monthly payment is greater than the loan's monthly payment by $48.53

To learn more about Compound interest, refer to the link:

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