Once the payment is received, the contact between the sell and buyer is complete. True or False.

Stockton Company Adjusted Trial Balance December 31 Cash 6,102 Accounts Receivable 2,938 Prepaid Expenses 703 Equipment 15,970 A

Svetlanka [38]

Answer:

Stockton Company

The retained earnings ending balance is:

= $12,114.

Explanation:

a) Data and Calculations:

Stockton Company

Adjusted Trial Balance December 31

Cash 6,102

Accounts Receivable 2,938

Prepaid Expenses 703

Equipment 15,970

Accumulated Depreciation 6,337

Accounts Payable 1,719

Notes Payable 4,543

Common Stock 1,000

Retained Earnings 10,872

Dividends 916

Fees Earned 6,176

Wages Expense 2,514

Rent Expense 761

Utilities Expense 459

Depreciation Expense 233

Miscellaneous Expense 51

Totals 30,647 30,647

Income Statement for the year:

Fees Earned $6,176

Wages Expense 2,514

Rent Expense 761

Utilities Expense 459

Depreciation Expense 233

Miscellaneous Expense 51 4,018

Net Income $2,158

Statement of Retained Earnings for the year:

Net Income $2,158

Retained Earnings 10,872

Dividends (916)

Retained Earnings, ending $12,114

5 0

3 years ago

Shannon and Rene are sisters who enter into a contract to buy an income property. The sisters get into a dispute, and Shannon wa

Citrus2011 [14]

Answer:

Novation.

Explanation:

In this scenario, Shannon and Rene are sisters who enter into a contract to buy an income property. The sisters get into a dispute, and Shannon wants out of the deal. However, their uncle Jerry wants to replace Shannon on the contract. Shannon agrees to the substitution so they go ahead and do it. This is an example of novation.

Novation can be defined as the process or an act of legally replacing a party in a contract with another, adding an obligation to engage or replacing a contractual obligation to perform with another based on the consent of all involved parties.

8 0

3 years ago

Patrick has a written independent contractor agreement with his broker Tami. Last year, about 25% of his income came from sales

melomori [17]

Answer:

The correct answer here is C) an employee .

Explanation:

Even though Patrick has written independent contract agreement with his broker, he will be considered an employee not independent contractor because Patrick is earning 75% of his total income from his broker on a hourly wage and that is paid to him on normal pay date , while the independent contractors are paid when the accounts payable receives the invoice, usually independent contractors are paid after the completion of task or at the end of a period.

7 0

4 years ago

Read 2 more answers

Canners Company uses weighted-average costing. Beginning work in process inventory had $3,650 of material costs. During the peri

pishuonlain [190]

If there are 250 equivalent units of production for materials, the cost per equivalent unit for materials is (D) $34.60.

<h3>What is weighted-average costing?</h3>

To apply the weighted average methodology, divide the cost of the commodities on the market by the number of units still on the shelf.
This calculation results in the weighted average cost per unit, which can subsequently be used to allocate a cost to both ending inventory and the cost of goods sold.
When you wish to give some numbers in a dataset more weight than others, you should use a weighted average.
This is beneficial in situations where a single event might have several positive or bad outcomes, but the scale of the positive or negative outcomes varies.

Weighted average cost per unit formula = divide the total purchase price by the number of units available for sale

∴ $3,650 + $5,000 / 250 = $34.60

Therefore, if there are 250 equivalent units of production for materials, the cost per equivalent unit for materials is (D) $34.60.

Know more about weighted-average costing here:

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Complete question:

Canners Company uses weighted-average costing. Beginning work in process inventory had $3,650 of material costs. During the period, $5,000 of materials and $9,250 in conversion costs were added. If there are 250 equivalent units of production for materials, the cost per equivalent unit for materials is ______. Multiple choice question.

(A) $71.60

(B) $20.00

(C) $57.00

(D) $34.60

7 0

2 years ago

A 3-year interest rate swap has a level notional amount of $300,000. Each settlement period is one year and the variable rate is

tankabanditka [31]

Answer:

(a)0.04317 (b) 3672 which will be paid by the payer to the receiver (c) -399. so, the 399 which will be paid by the receiver to the payer (d) 2659.38

Explanation:

Solution

(a) Swap Rate (R) = (1 - P₃)/(P₁+P₂+P₃)

= (1 – 0.88)/(0.97 + 0.93 + 0.88)

= 0.04317

(b) The payer pays the fixed interest rate and gets the variable interest rate.

Then, the fixed interest rate is known as the swap rate which is 4.317%.

Now,

The variable rate is the one year spot rate for the first year of the loan. which is r₁ = 1/P₁ -1 = 1/0.97 - 1 = 0.03093

Thus,

The net swap payment becomes (300,000)(0.04317) - (300,000)(0.03093) = 3672 which will be paid by the payer to the receiver.

(c) The payer pays the fixed interest rate and receives the variable interest rate. The fixed interest rate is the swap rate which is 4.317%.

Thus,

The variable rate is the one year spot rate for the second year of the loan is 4.45%.

So,

The net swap payment becomes (300,000)(0.04317) - (300,000)(0.04450) = -399.

Therefore, the 399 which will be paid by the receiver to the payer.

(d) The market value is the present value of expected future cash flows. under this swap, the variable rate has been swapped for the constant swap rate. There is one year left under the swap.

Then,

The expectation is that the swap owner will pay (300,000)(0.04317) and receive (300,000)(0.0525). these payments would be made at the end of one year. Therefore, the market value will be:

{(300,000)(0.0525) - (300,000)(0.04317)}/1.0525 = 2799/1.0525 = 2659.38

4 0

3 years ago