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4 years ago

McGill and Smyth have capital balances on January 1 of $50,000 and $40,000, respectively.

Business

1 answer:

spin [16.1K]4 years ago

8 0

Explanation:

5800 is interest,,,,,,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,, ,,,

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Smart Watch Company reported the following income statement data for a 2-year period.

Ronch [10]

Answer and Explanation:

a. The preparation of the correct income statement is as follows:

Year 2019 2020

Sales revenue $220,000 $250,000

Cost of goods sold

Beginning inventory $32,000 $38,000

Add: Costs of goods

purchased $173,000 $202,000

Cost of goods available for sale $205,000 $240,000

Less: Ending inventory -$38,000 -$52,000

($44,000 - $6,000 )

Cost of goods sold $167,000 $188,000

Gross profit $53,000 $62,000

b. The cumulative effect is

Incorrect gross profit = $59,000 + $56,000 = $115,000

Correct gross profit = $53,000 + $62,000 = $115,000

Net effect would be zero

8 0

3 years ago

A pencil manufacturer is in a perfectly competitive market. The firm can sell as much as it wants at a price of $1.50 per pencil

Ierofanga [76]

Answer:

d. Continue production in the short run, but exit the business in the long run unless prices are expected to rise or costs to fall..

Explanation:

Currently, their sales revenue less variable cost is positive as it can sale at $1.50 dollars and the variables cost are less than that. Therefore, there are fixed cost thefirm can pay because it produce.

Now, in the long-run when the firm can exit the market it should consider to do so if it continues to get an average cost above the selling price.

3 0

3 years ago

Kristi purchases an annuity that will pay her husband an income for 15 years. if he dies, this income will become payable to the

Elis [28]

The asnwer is Temporary annuity certain
Temporary annuity certain refers to the type of annuity that provides payments for the beneficiarie for a predetermined number of years.
Temporary annuity certain will give payments remitted to the annuitant's beneficiary if the buyer deceased before the end of the agreement.

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3 years ago

Suppose the owners of Lopes and HomeMax meet for a friendly game of golf one afternoon and happen to discuss a strategy to optim

Amiraneli [1.4K]

Answer:

c. $2.0 million for Lopes and by $2.5 million for HomeMax.

Explanation:

For the problem above, the two organizations agreed to work on a particular project because they believed that they will benefit from the outcome of the project. Based on the available information provided in the question, the profit that Lopes will make yearly will increase by $2.0 million while that of HomeMax will increase by $2.5 million.

3 0

4 years ago

Exercise 4-8 Discontinued operations; disposal in subsequent year [LO4-4]

mezya [45]

Answer:

The net income for 2018 is $292,800.

Explanation:

The question is to calculate the partial Income Statement for 2018

Kandon Enterprise Inc.

Partial Income Statement for the Year Ended 31st December, 2018

Particulars/ Description Amount

Continuing Operations Income $420,000

Discontinued Operations gain (loss)

Loss from Operations of the Component Disc. ($212,000)

Income tax benefit (40% of 212,000) $84,800

Loss on the discontinued Operations ($127, 200)

Net income for the year $292,800

N.B Calculation of the Loss on discontinued Operations

Loss from operations 160,000

Impairment loss ($272,000-$220,00) 52,000

Net before tax loss $212,000

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4 years ago