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sergey [27]
3 years ago
8

On June 1, 2017, Pharoah Company was started with an initial investment in the company of $22,350 cash. Here are the assets, lia

bilities, and common stock of the company at June 30, 2017, and the revenues and expenses for the month of June, its first month of operations:
Cash $5,010 Notes payable $12,820
Accounts receivable 4,290 Accounts payable 790
Service revenue 7,910 Supplies expense 1,030
Supplies 2,370 Maintenance and repairs expense 630
Advertising expense 400 Utilities expense 270
Equipment 26,410 Salaries and wages expense 1,810
Common stock 22,350

In June, the company issued no additional stock but paid dividends of $1,650.

Required:
Prepare an income statement for the month of June.
Business
1 answer:
guapka [62]3 years ago
6 0

Answer:

                            Pharaoh Company

                             Income statement  

                 For the year ended June 30, 2017  

Revenue & Gains                                              Amount

Service Revenue                                               $7,910

Total revenue & gains (A)                                 $7,910

Expense and losses:

Salaries and wages expense         $1,810

Advertising expense                       $400

Supplies expense                            $2,370

Utilities expense                              $270

Maintenance and repair expense  $630

Total expense (B)                                            <u>$5,480</u>

Net Income (A - B)                                          <u>$2,430</u>

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3 years ago
Inspection costs at one of Ratulowski Corporation's factories are listed below: Units Produced Inspection Costs April 906 $ 16,3
-Dominant- [34]

Answer:

$7,816.9943

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Using the high-low method;variable cost per unit=[Total cost at highest level-Total cost at lowest level]/(Highest level-Lowest level)

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7 0
3 years ago
Cardinal Industries purchased a generator that cost $11,000. It has an estimated life of five years and a residual value of $1,0
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Answer:

Correct answer is letter D, $11,000 cost, five-year life and $1,000 salvage value

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2. life of an asset (in year)

3. residual value (if available)

<em>* residual value of an asset is to be determined by the company, some asset don't have scrap value assigned.</em>

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6 0
3 years ago
Consider a town in which only two residents, Kevin and Maria, own wells that produce water safe for drinking. Kevin and Maria ca
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Answer:

Monopolist profit maximizing price

A: $3 per gallon , total output =270 Kelvins profit = $810(801/7/2 = $405

Maria's profit = $405

B. $2.5 per gallon . Kelvin's profit =$450 Maria's profit = 337.5

C = False. At the same quantity , fall in price brings fall in revenue

Cournot Nash equilibrium

Explanation:

In a monopolist market system , price are set higher than the marginal cost as the producer enjoy the dominance of the market through the production of a unique good.

At the price of $3 , change in demand =(270-225) =45 , change in revenue = ($810-$787.50)22.5 and marginal revenue = (45/22,5) = 0.5. That forms the maximizing price for a monopolist.

On the new arrangement , price drops to $2.5 , Maria's profit =(315-45/2)2.5 = $337.5 and Kelvin's = ($787.5-337.5) = $450

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6 0
3 years ago
Jean and Tom Perritz own and manage Happy Home Helpers, Inc. (HHH), a house-cleaning service. Each cleaning (cleaning one house
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Answer:

$532,500

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Subtract: Closing Inventory of materials    <u>   ($2600)</u>

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Add:

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Variable Overhead Cost                                    $15,000

Fixed Overhead cost                                          $18,000

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The Cost of Services of HHH Inc                                          $532,500

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