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Ne4ueva [31]
4 years ago
8

The May transactions of Bramble Corp. were as followsMay 4 Paid $610 due for supplies previously purchased on account.7 Performe

d advisory services on account for $6,840.8 Purchased supplies for $870 on the account.9 Purchased equipment for $1,930 in cash17 Paid employees $700 in cash22 Received bill for equipment repairs of $80029 Paid $1,280 for 12 months of the insurance policy. Coverage begins JuneJournalize the transactions. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Business
1 answer:
jarptica [38.1K]4 years ago
6 0

Answer: Please see answers in explanation  column

Explanation:

a)Journal To record payment due for supplies

Date Account titles                 Debit              Credit

May 4 Accounts Payable                 $610  

                    Cash                                                        $610

(b)Journal To record services on account  

May 7 Accounts Receivable            $6,840  

      Service Revenue                                            $6,840

c)Journal To record supplies on account  

May 8          Supplies                             $870  

    Accounts Payable                                                   $870

d)Journal  To record equipment purchased for cash

May 9 Equipment                        $1,930  

                Cash                                                         $1,930

 

May 17 Journal To record cash paid to employees

Salaries and Wages                                $700  

     Cash                                                                                 $700

May 22  Journal To record bill received for for Equipment repairs

       Repair and Maintenance                      $800  

    To Accounts Payable                                                $800

 

May 29 Journal to record Prepaid insurance

Prepaid Insurance                              $1,280  

    To Cash                                                                     $1,280

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Yanka [14]

Answer:

The correct answer is 23.33 and 11.67.

Explanation:

According to the scenario, the given data are as follows:

ROE = 20%

Plowback ratio = 0.30

Earning per share = $2

Rate of return = 12%

So, we can calculate the price and P/E ratio by using following formula:

First we calculate the growth rate of the company.

So, Growth rate (g) = Plowback ratio × ROE

By putting the value we get,

Growth rate = 0.30 × 0.20 = 6%

Now we calculate the price,

So, Price = Earning × ( 1 - Plowback ratio) ÷ ( Return rate - Growth rate)

= $2 × ( 1 - 0.30) ÷ ( 0.12 - 0.06)

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And P/E ratio = Price ÷ earning per share

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4 0
3 years ago
The CVP income statement Group of answer choices discloses contribution margin in the body of the statement. is distributed inte
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Answer:  discloses contribution margin in the body of the statement.

Explanation:

The Cost Volume Profit (CVP) income statement is made to better show the influence of variable costs and fixed costs on income. It as well shows the effects that changing costs and production volume can have on the income.

Although it shows the same income as a traditional income statement, the format is different in that the contribution margin is included in the statement and the costs and revenue per unit are shown as well.

3 0
3 years ago
Under which type of revenue stream is the result of ongoing payments (like monthly subscriptions)?
saul85 [17]

Answer:

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8 0
3 years ago
Marginal benefit is the benefit that your activity provides to someone else.
xxMikexx [17]
Marginal benefit is the extra satisfaction or recieved when one consumes an addition unit of a good or a service. Therefore the amount a person or an individual is willing to pay so as to enjoy the additional unit of a good or a service is the person's marginal benefit. Therefore, marginal benefit is not the benefit a person's activity provides another person.
3 0
3 years ago
Selling price $ 200 per unit
djverab [1.8K]

Answer:

1) Margin of safety = $1,000,000 so that is c)

2) Margin of safety (%) = 20%, that is a)

Explanation:

Hi, first, we need to introduce the formulas to use.

Margin of safety (Dollars)

MarginSafety=ActualSales-BEP(dollars)

Margin of safety (%)

MarginSafety=\frac{CurrentSales-BEP(dollars)}{CurrentSales} *100

Where

BEP = Break even point in dollars

This means that we need to find the break even point first, the formula to use is:

BEP(units)=\frac{FixedExpenses}{Price-VarExpense}

From there, we need the break even point in dollars, so:

BEP(dollars)=BEP(units)*Price

Everything should look like this

BEP(units)\frac{1,000,000}{200-150} =20,000

And the BEP in dollars is:

BEP(dollars)=20,000*200=4,000,000

Now, we know that our actual level of sales is 25,000*$200=$5,000,000, therefore Ralph Corporation margin of safety is:

MarginSafety=5,000,000-4,000,000=1,000,000

So, the answer is c. Ralph Corporation’s margin of safety in dollars is $1 million.

Now for the next part, everything should look like this.

MarginSafety(percent)=\frac{5,000,000-4,000,000}{5,000,000} *100=20

Then, the answer is a.  Ralph Corporation’s margin of safety in percentage is 20%

Best of luck.

7 0
4 years ago
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