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Softa [21]
3 years ago
14

Following information relates to Acco Co.

Business
1 answer:
Sedbober [7]3 years ago
3 0

Answer:

Acco Co.

Budgeted Income Statement for the month of July 31, 2020:

Sales Revenue                        $1,400,000

Cost of goods sold                      770,000

Gross profit                               $630,000

Operating expenses:

Depreciation          36,000

Salaries                285,000

Bank loan interest   6,600

Other expenses  200,000     $527,600

Income before taxes               $102,400

Taxes (30%)                                 30,720

Net income                                $71,680

Retained earnings                   964,000

Retained earnings, July 31 $1,035,680

Balance Sheet as of July 31

Assets

Current assets:

Cash                              $122,400

Accounts receivable    1,220,000

Inventory                          60,000

Total current assets             $1,402,400

Equipment       $1,600,000

Acc. Depreciation 316,000   $1,284,000

Total assets                          $2,686,400

Liabilities + Equity:

Current liabilities:

Accounts payable      300,000

Income taxes payable 30,720

Salaries payable          60,000  390,720

Bank loan                                  660,000

Total liabilities                       $1,050,720

Equity:

Common stock      $600,000

Retained earnings 1,035,680 1,635,680

Total liabilities and equity   $2,686,400

Explanation:

a) Data and Calculations:

Cash Account

Account Titles                  Debit      Credit

Beginning balance        $50,000

Cash from customers 1,364,000

Payment to suppliers                    $730,000

Salaries                                            275,000

Other cash expenses                     200,000

Income taxes                                     80,000

Bank loan interest                               6,600

Estimated Ending Balance              122,400

Sales Budget:                      May         June              July              Total

Actual Sales               $1,720,000  $1,200,000    $1,400,000  $4,320,000

Cash Collections:        

30% month of sale      $516,000     $360,000      $420,000     1,296,000

50% next month                                 860,000        600,000     1,460,000

20% in second month                                               344,000       344,000

Total cash collections $516,000  $1,220,000    $1,364,000  $3,100,000

Accounts Receivable balance = $1,220,000 (4,320,000 - $3,100,000)

Purchases Budget:         June              July              Total

                                 $700,000    $750,000   $1,450,000

Cash Payment:

60% in the month    $420,000    $450,000     $870,000

40% ffg month                                280,000       280,000

Total payments        $420,000    $730,000   $1,150,000

Accounts payable $300,000 ($1,450,000 - 1,150,000)

Other cash disbursements:

Salaries                                           275,000

Bank loan interest                              6,600

Accrued Expenses:

Depreciation expense     $36,000  

Accumulated Depreciation $316,000 ($280,000 + 36,000)

Other cash expenses      200,000

Income taxes paid             80,000

Income Taxes:

Income tax payable $30,720

Common stock $600,000

Retained Earnings $964,000

Salaries Expense for July:

Salaries paid                                 $275,000

Salaries expense payable in July    60,000

Salaries expense payable in June (50,000)

Salaries expense for July              285,000

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Scilla [17]

Answer:

cash income paid to a day laborer that is not reported to the tax authorities

Explanation:

GDP stands for Gross domestic product. It is the  monetary value of all finished goods and services made within a country during a specific period.

It is calculated as GDP = private consumption + gross investment + government investment + government spending + (exports – imports).

Hence, cash income paid to a day laborer that is not reported to the tax authorities will not be included in GDP

8 0
3 years ago
Heather is an HR specialist at McCoy Manufacturing, where she is responsible for making sure HR policies and transactions delive
il63 [147K]

Answer: An operational executor

Explanation: The skills of an operational executor tend to lie within the range of human resource activities mostly characterized as transactional. They execute the operational aspects of managing people and organizations. That is, they are responsible for making sure human resource policies and transactions deliver results on a company wide basis by acquiring, developing, motivating, and deploying human resources where and when needed. Policies are required to be drafted, adapted, and implemented; while efficiently satisfying the administrative needs of employees through technology, shared services, or outsourcing etc. This leads to the constant application of organizational policies when done properly.

5 0
3 years ago
Kaspar Industries expects credit sales for January, February, and March to be $202,100, $264,200, and $319,300, respectively. It
Wittaler [7]

Answer:

January $151,575

February $248,675

March $305,525

Explanation:

The computation of the cash collections is shown below:

January month

= January credit sales × month of sale collection percentage

= $202,100 × 75%

= $151,575

February month

= January credit sales × following month collection percentage + February credit sales  × month of sale collection percentage

= $202,100 × 25% + $264,200 × 75%

= $50,525 + $198,150

= $248,675

March month

= February credit sales × following month collection percentage + February credit sales  × month of sale collection percentage

=  $264,200 × 25%+ $319,300 × 75%

= $66,050 + $239,475

= $305,525

3 0
2 years ago
The business was started when the company received $48,500 from the issue of common stock. Purchased equipment inventory of $176
masya89 [10]

Answer:

Total current liabilities  85.008,33‬

Explanation:

current liabilities: obligations that will setlte within a one-year period

<em />

<em>accounts payable</em> from the purchase of equipment:

cost:          176,500

paid:      <u>  (125,900)  </u>

balance:    50,600

<em />

<em>waranty liaiblity:</em>

191,000 x 5% = 9,550

<em>sales tax payable:</em>

sales for     191,000

paid for   <u>  (141,000)  </u>

unpaid for  50,000 x 6% = 3,000

<em>note payable</em> with a local bank:

principal:   21,500

accrued interest: 21,500 x 5% x 1/3 = 358,33

net:   21,858.33

<u>Total current liabilities:</u>

accounts payables 50,600

warrant liability:        9,550

sales tax payable:    3,000

note payable:     <u>    21,858.33   </u>

                             85.008,33‬

5 0
3 years ago
Lopez Corporation incurred the following costs while manufacturing its product Materials used in product Depreciation on plant P
Sonja [21]

Answer:

See attached file

Explanation:

4 0
3 years ago
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