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lapo4ka [179]
2 years ago
9

Andy Roddick is the new owner of Ace Computer Services. At the end of August 2014, his first month of ownership, Roddick is tryi

ng to prepare monthly financial statements. Below is some information related to unrecorded expenses that the business incurred during August.
(a) At August 31, Roddick owed his employees $3,247 in salaries and wages that will be paid on September 1.
(b) At the end of the month, he had not yet received the month's utility bill. Based on past experience, he estimated the bill would be approximately $761.
(c) On August 1, Roddick borrowed $48,000 from a local bank on a 15-year mortgage. The annual interest rate is 8%.
(d) A telephone bill in the amount of $134 covering August charges is unpaid at August 31.
Prepare the adjusting journal entries as of August 31, 2014, suggested by the information above. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.)
Business
1 answer:
Verdich [7]2 years ago
6 0

Answer:

A)

wages expense 3,247 debit

      wages payable   3,247 credit

b) utilities expense 761 debit

     utilities payable          761 credit

c) interest expense 320 debit

     interest payable         320 credit

d) telephone expense 134 debit

     telephone payable        134 credit

Explanation:

a) we recognize the expense and we also need to disclosure the obligation to pay this expenses in the near future.

b) we must place the expense in the period it was generated, which is August.

c) principal x rate x time = interest

rate and tiem must be expressed atthe same metric

8% annual  --> 12 months

we need interest for 1 month so 0.08/12 = 0.0066667

48,000 x 0.08 / 12 = 320

d) same as b we adjust to a associate the expense with the period it occur.

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Henry Crouch's law office has traditionally ordered ink refills 55 units at a time. The firm estimates that carrying cost is 40%
defon

Answer:

Its action would be optimal given an ordering cost of $28.31 per order

Explanation:

According to the given data we have the following:

economic order quantity, EOQ= 55 units

annual demand, D=235

holding cost per one unit per year, H=40%×$11=$4.4

ordering cost, S=?

In order to calculate the ordering cost we would have to use the following formula:

EOQ=√(<u>2×D×S)</u>

                (H)

Hence, S=<u>(EOQ)∧2×H</u>

                     2×D

           S=<u>(55)∧2×4.4</u>

                   2×235

          S=<u>13,310</u>

                470

          S=$28.31

Its action would be optimal given an ordering cost of $28.31 per order

4 0
3 years ago
Blaine bought 4 pairs of pants and 2 shirts at a department store in California. Each pair of pants cost $25.85 and each shirt c
Mazyrski [523]

Answer:

$57.11

Explanation:

$25.85 × 4 = $103.40

$15.70 × 2 = $31.40

Total cost of purchase = $134.80

6% tax = 0.06 × $134.80 = $8.09

Total cost of purchase including tax = $142.89

Change received by Blaine = $200 - $142.89 = $57.11

I hope my answer helps you

3 0
3 years ago
Cedrick's credit card was​ stolen, and he did not realize that it was stolen until he received his most recent billing stateme
denis23 [38]

Answer:

Cedrick's potential maximum liability = $50

Explanation:

Given:

$250 = a Blueminusray player

$600 = new set of tires

$200  = Cash withdrawal

$40 = interest charges

Find:

Cedrick's potential maximum liability

Computation:

Cedrick's potential maximum liability = Blueminusray player  - Cash withdrawal

Cedrick's potential maximum liability = $250 - $200

Cedrick's potential maximum liability = $50

7 0
2 years ago
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sukhopar [10]
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7 0
3 years ago
Read 2 more answers
The following information exists for ABC Company:
Vladimir [108]

Answer:

Difference= $1,000 increase

Explanation:

Giving the following information:

Selling price per unit: $30

Variable expenses per unit: $21

New selling price= 30 - 2= $28

New units sales= 13,000

<u>First, we need to calculate the current contribution margin:</u>

Total contribution margin= units sold*unitary contribution margin

Total contribution margin= 10,000*(30 - 21)

Total contribution margin= $90,000

<u>Now, the new contribution margin:</u>

Total contribution margin= 13,000*(28 - 21)

Total contribution margin= $91,000

4 0
3 years ago
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