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DENIUS [597]
3 years ago
5

As of December 31, 2017, Armani Company’s financial records show the following items and amounts. Cash $ 10,000 Accounts receiva

ble 9,000 Supplies 6,000 Equipment 5,000 Accounts payable 23,000 A. Armani, Capital, Dec. 31, 2016 4,000 A. Armani, Capital, Dec. 31, 2017 7,000 A. Armani, Withdrawals 13,000 Consulting revenue 33,000 Rental revenue 22,000 Salaries expense 20,000 Rent expense 12,000 Selling and administrative expenses 8,000 Note: Early in 2017, the owner invested $1,000 cash in the business. Required: Prepare a year-end statement of owner’s equity for Armani Company. Hint: Notice the owner invested $1,000 cash during the year.1. Prepare the 2017 year-end income statement for Armani Company. 2. Use the information in Problem 1-3A to prepare a year-end statement of retained earnings for Armani Company Problem 1-4A Preparing a statement of retained earnings P2 Problem 1-5A Preparing a balance sheet P2 3. Use the information in Problem 1-3A to prepare a year-end balance sheet for Armani Company.
Business
1 answer:
julsineya [31]3 years ago
5 0

Answer:

Net Income for the year ended December 31, 2017

Consulting revenue 33,000

Rental revenue        22,000

Total Revenues        55,0000

Salaries expense (20,000)

Rent expense       (12,000)

S&A expenses       (8,000)

Net Income                  15,000

Statement of RE

net income   15,000

withdrawals (13,000)

ending retained earnings 2,000

Balance Sheet

Cash          10,000            Accounts payable 23,000

A/R              9,000           A. Armani, Capital, Dec. 31, 2016 7,000

Supplies     6,000            

Equipment 5,000

Total Assets:  30,0000  Total liab + Equity 30,000

owner's equity:

                Armani Capital Retained Earings Total

Balance Jan 1            4,000          0                4,000

Net Earnings                          15,000     15,000

Withdrawals                         -13,000    -13,000

Contribution           1,000                        1,000

Balance, Dec 31  5,000         2,000       7,000

Explanation:

First we do the net income which is revenues less expenses.

Then we proceed with the retained earnings, which si income less withdrawals

Finally the balance sheet we order the assets accoutn in the left and liabiltiies and equity on the right. They should always match as the balance sheet represent the accounting equation: A = L + E

For the owner's equity statement we most disclosure all changes in equity during the year.

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Explanation:

You will have to compare the Accounts payable of the <em>current and previous year,</em> and check the diference.

If the current year Account Payable is higher then the previous year, this means Google didn't pay as much, so it "save" cash for that diference so the diference will be positive.

If the opposite ocours, then Google pay more than previous year, so the diference will be posted as negatinve in the cash flow statment.

Accrued Expenses for this account, when doing the comparrison, if current is higher this means Google didn't pay as much expenses as it should be, so it save cash, the diference will be posted as positive.

If the actual is smaller, then Google pay more and the diference is posted as negtive.

Resuming, compare current with previous for each account,

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3 years ago
Suppose Stark Ltd. just issued a dividend of $1.59 per share on its common stock. The company paid dividends of $1.25, $1.33, $1
vlada-n [284]

Answer:

Explanation:

arithmetic average growth rate = {[(1.33 - 1.25)/1.25] + [(1.40 - 1.33)/1.33] + [(1.51 - 1.40)/1.40] + [(1.59 - 1.51)/1.51]} / 4 = {0.064 + 0.053 + 0.079 + 0.053} / 4 = 0.06225 x 100 = 6.225%

geometric growth rate = ⁴√{0.064 x 0.053 x 0.079 x 0.053} = 0.061%

a) using arithmetic average growth rate

Div₁ = $1.59 x 1.06225 = $1.689

P₀ = $40

g = 6.225%

40 = 1.689 / (Re - 0.06225)

Re - 0.06225 = 1.689 / 40  = 0.04222

Re = 0.04222 + 0.06225 = 0.10447 = 10.45%

b) using geometric average growth rate

Div₁ = $1.59 x 1.061 = $1.68699

P₀ = $40

g = 0.061%

40 = 1.68699 / (Re - 0.061)

Re - 0.061 = 1.68699 / 40  = 0.04217

Re = 0.04217 + 0.061 = 0.103174 = 10.32%

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3 years ago
A senator wants to raise tax revenue and make workers better off. A staff memberproposes raising the payroll tax paid by firms a
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Answer:

This proposal will not work.

Explanation:

All taxes work the same way, it doesn't matter if they are payroll taxes or taxes on goods or services. In this case, labor is the service provided by the employees (suppliers) and the employer is the consumer. A tax increase will reduce the demand for labor, and therefore the equilibrium price of labor (wage) will also decrease. If wages decreases, then workers are not going to be better off, on the contrary they will be worse off. This tax increase will lower both the wage and the employment level.

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Conversion cost per equivalent unit is the combined costs of direct materials and factory overhead.
Maksim231197 [3]

Answer:

False

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Cost

This is simply defined as a payment of cash or the commitment to pay cash in the future for revenues purpose. E.g. The cash used to purchase a tractor, is the cost of the tractor.

Conversion costs

This is simply regarded as direct materials, direct labor, and factory overhead costs that can be selected together or grouped together for analysis and reporting. It consist of direct labor in factory overhead costs.

The Equation for Conversion cost is simply = Direct Labor Cost + Manufacturing Overhead Cost.

While the Equivalent Units of Production = Number of Units Transferred to the next department + Equivalent Units in Ending Works in Process Inventory.

The equation for Equivalent units of production for conversion cost is given below: Units completed and transferred out + Equivalent units in ending work in process for conversion cost.

The equation for Cost per equivalent unit for conversion cost is simply =

(conversion cost of beginning work in process + conversion cost added during the period)/ Equivalent units of production for conversion cost.

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Answer: A. limited liability company.

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They operate with limited Liability for the owners because the owners are only personally liable for the debts and liabilities the company has up until the capital they invested. Anything past this and they cannot be held liable.

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