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notsponge [240]
3 years ago
11

The following events apply to Lewis and Harper, a public accounting firm, for the Year 1 accounting period: Performed $64,500 of

services for clients on account. Performed $41,000 of services for cash. Incurred $30,000 of other operating expenses on account. Paid $15,500 cash to an employee for salary. Collected $50,000 cash from accounts receivable. Paid $16,000 cash on accounts payable. Paid an $5,000 cash dividend to the stockholders. Accrued salaries were $2,200 at the end of Year 1.
Required
a. Show the effects of the events on the financial statements using a horizontal statements model like the following one. In the Cash Flow column, use OA to designate operating activity, IA for investment activity, FA for financing activity, NC for net change in cash and NA to indicate the element is not affected by the event. The first event is recorded as an example. (Enter any decreases to account balances and cash outflows with a minus sign.)
b. What is the amount of total assets at the end of 2014?
c. What is the balance of accounts receivable at the end of 2014?
d. What is the balance of accounts payable at the end of 2014?
f. What is net income for 2014?
g. What is the amount of net cash flow from operating activities for 2014?
Business
1 answer:
charle [14.2K]3 years ago
8 0

Answer:

a) I used an excel spreadsheet since there is not enough room here.

b) $69,000

c) $14,500

d) $14,000

f) $57,800

g) $59,500  

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Alpha Company sold goods to customers who used Under-the-Hill bank credit cards. Credit card sales on July 8, 2016 amounted to $
adoni [48]

Answer:

Accounts receivables -under-the-Hill   11,700 debit

credit card fees expense                          300 debit

            sales revenues                                      12,000 credit

Explanation:

The credit card fee is considered an expense

$12,000 x 0.025 = 300

We will debit our accounts receivables for the difference between the 12,000 billed and the fee charged for Under-the-Hill credit car:

12,000 - 300 0 11,700

5 0
3 years ago
Product Pricing: Single Product Presented is the 2017 contribution income statement of Grafton Products. GRAFTON PRODUCTS Contri
hodyreva [135]

Answer:

a)647,000

b)658,000 yes as increase net income

c) 2,480,000

Explanation:

a) current net income :                                               842,000

less 13,000 x 12 increce in variable manufacturing  (156,000)

less increase in fixed MO                                        <u>     (39,000)  </u>

                                                                                      647,000

b)

Sales        3,200,000    (16,000 x 200)

Variable   <u> (1,408,000)</u>  988,000x16,000/13,000 + 156,000

Contribution  1,792,000

Fixed MO (819,000)  

Fixed S&A<u> (315,000)   </u>

Net Income 658,000

c)

\frac{Fixed\:Cost + Target \: Profit}{Contribution \:Margin \:Ratio} = Break\: Even\: Point_{dollars}

\frac{Contribution \: Margin}{Sales \: Revenue} = Contribution \: Margin \: Ratio

1,792,000 / 3,200,000 = 0.56

\frac{1,134,000 + 254,800}{0.56} = Break\: Even\: Point_{dollars}

4 0
3 years ago
True or False: Production runs can be scheduled in one or two shifts. A. True B. False
stiv31 [10]

Answer:

The correct answer is letter "A": True.

Explanation:

The production run represents the number of units a company can produce during its production line. In some cases, the expected production line cannot be covered by one shift of employees. Then, the company allows overtime or implements a second shift to fulfill its objective.

8 0
3 years ago
explain how the price consumers pay for a good is influenced by the price of the resources that go into making it
Reika [66]

Answer:

Here's an example

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4 0
2 years ago
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To learn how people are searching online, a keyword analysis would be most relevant.

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