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3 years ago

Given the following information, prepare an income statement for the Dental Drilling Company.

Business

1 answer:

dmitriy555 [2]3 years ago

8 0

Answer:

Results are below.

Explanation:

Giving the following information:

Selling and administrative expense $90,000

Depreciation expense 75,000

Sales 621,000

Interest expense 46,000

Cost of goods sold 231,000

Taxes 50,000

With the information listed above, we need to make an income statement following the structure below:

Sales= 621,000

COGS= (231,000)

Gross profit= 390,000

Selling and administrative expense= (90,000)

Depreciation expense= (75,000)

Interest expense= (46,000)

Eearning before taxes (EBT)= 179,000

Taxes= (50,000)

Net operating income= 129,000

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Tara Westmont, the proprietor of Tiptoe Shoes, had annual revenues of $185,000, expenses of $103,700, and withdrew $18,000 from

navik [9.2K]

Answer:

Explanation:

The closing entry of the income summary account is shown below:

Income summary A/c Dr $81,300

To Retained Earning A/c $81,300

((Being the difference is credited to retained earning))

The retained earning balance is calculated by taking a difference between:

= Annual revenues - Expenditure

= $185,000 - $103,700

= $81,300

The income summary should always be closed after closing of revenue and expenditure account.

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You purchase another company for $50m. The company you purchase has assets with a fair value of $75m and liabilities with a fair

Crazy boy [7]

Answer:

b. $5m

Explanation:

If we purchase another company for $50m and the company you purchase has assets with a fair value of $75m and liabilities with a fair value of $30m. The amount of goodwill we should record in this transaction is: $5m

Goodwill upon acquisition of companies is derived by subtracting the fair value of NET ASSETS from the TOTAL CONSIDERATION (i.e the price paid to acquire the company)

In the scenario, the value of Net Assets is the value of the fairvalue of the assets less the fair value of the liabilities which is $75 - $30 = $45

While the Total Consideration = $50

Therefore Goodwill = $50m - $45m = $5m

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3 years ago

A customer has requested that Lewelling Corporation fill a special order for 2,100 units of product S47 for $26 a unit. While th

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Answer:

Annual Financial advantage $ 550

Explanation:

Computation of income/loss on special order

Unit product costs

Normal product costs $ 19.20

Incremental variable costs $ 1.30 per unit $ 1.30

Total product costs $ 20.50

Revenues per unit $ 26.00

Profit per unit $ 5.50

Sales Units 2,100 units

Total incremental profit on order $ 11,550

Less; cost of moulds $ 11,000

Incremental profit on S 47 order $ 550

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3 years ago

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