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Rina8888 [55]
3 years ago
12

Determine financial statement amounts and prepare owner's equity statement.

Business
1 answer:
bagirrra123 [75]3 years ago
8 0

Answer and Explanation:

a. The first part is presented in the attached spreadsheet

b. The presentation is shown below:

Owner’s equity statement for Alpha Company:-

Particulars                      Amount($)

Opening balance             39,000

Additional investment    9,000

Income from operation    17,000

Available total equity   65,000

Less - Drawings          -15,000

Closing balance           50,000

c) For preparing the financial statements, the first part is to pass journal entries, than positing into ledger after that the income statement is made and then the stockholder equity and balance sheet are made

As the income statement records all revenues and expenses for the company . The same net profit or net loss is shown in the statement of stockholder equity and the closing balances of the retained earning and the common stock are recognized in the balance sheet along with the assets.

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Imagine you are making a $1000 purchase with different payment options. Which of the following
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The payment option that pays the LEAST is <u>B. B. 10% APR, with 12 monthly payments,</u> as it pays back a total of $1,008.33, for borrowing $1,000.

<h3>How to calculate payment options:</h3>

Payment options can be computed using an online finance calculator as follows:

The option that pays the least total cost should be chosen.

<h3>Data and Calculations:</h3>

Loan payment = $1,000

A. 8% APR, no payments for the first 6 months, then 6 monthly payments:

Amount after 6 months = $1,040 ($1,000 + $1,000 x 0.08 x 1/2)

N (# of periods) = 1

I/Y (Interest per year) = 8%

PV (Present Value) = $1,040

FV (Future Value) = $0

<u>Results:</u>

PMT = $174.49

Sum of all periodic payments = $1,046.93 ($174.49 x 6)

Total Interest =$46.93 ($40 + $6.93)

B. 10% APR, with 12 monthly payments:

N (# of periods) = 1

I/Y (Interest per year) = 10%

PV (Present Value) = $1,000

FV (Future Value) = $0

<u>Results:</u>

PMT = $84.03

Sum of all periodic payments = $1,008.33

Total Interest = $8.33

C. 12% APR, with 6 monthly payments:

N (# of periods) = 1

I/Y (Interest per year) = 12%

PV (Present Value) = $1,000

FV (Future Value) = $0

<u>Results:</u>

PMT = $168.33

Sum of all periodic payments = $1,010.00

Total Interest $10.00

Thus, the payment option that pays the LEAST is <u>Option B</u>.

Learn more about periodic payments at brainly.com/question/24244579

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2 years ago
Choco Chocolata is a cookie company in Juarez, Mexico that produces and sells American-style chocolate chip cookies with extreme
lyudmila [28]

Answer:

(1) The total amount of product costs is $79,430.

(2) The total amount of period costs is $37,300.

Explanation:

Note: There are two requirements in this question as follows:

(1) What is the total amount of product costs?

(2) What is the total amount of period costs?

These two are answered as follows:

(1) What is the total amount of product costs?

Product cost can be described as the expenses that are incurred in order to produce a product. These types of expenses are charged to cost of goods sold and include direct materials, direct labor, factory overhead, and consumable production supplies.

Therefore, the total amount of product costs of Choco Chocolata can be calculated as follows:

Choco Chocolata

Computation of Total Product Costs

<u>Details                                                                     Amount ($)   </u>

Utilities for the bakery                                                  2,100

Paper used in packaging product                                  180

Salaries and wages in the bakery                            23,500

Cookie ingredients                                                    43,500

Bakery labor fringe benefits                                        1,300

Bakery equipment maintenance                                   800

Depreciation of bakery plant and equipment           2,200

Uniforms for bakers                                                        750

Insurance for the bakery                                                900

Boxes, bags, and cups used in the bakery                 1,100

Overtime premiums                                                     2,600

Idle Time                                                                  <u>        500  </u>

Total                                                                          <u>   79,430   </u>

Therefore, the total amount of product costs is $79,430.

(2) What is the total amount of period costs?

Period costs are costs that are related to passage of time but cannot not be charged to the cost of goods sold.

Therefore, the total amount of period costs of Choco Chocolata can be calculated as follows:

Choco Chocolata

Computation of Total Period Costs

<u>Details                                               Amount ($)   </u>

Administrative costs                             2,300

Rent for administration offices            18,500

Advertising                                            3,500

Office Manager's salary                    <u>  13,000  </u>

Total                                                    <u>  37,300   </u>

Therefore, the total amount of period costs is $37,300.

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