Which situation best illustrates the process of capital formation?

Simmons Consulting Co. has the following accounts in ts ledger Cash: Accounts Receivable Supplies: Office Equipment Accounts Pay

Alchen [17]

Answer:

Simmons Consulting Co

General Journal

Oct 1

Rent Expense $4,800 (debit)

Cash $4,800 (credit)

Paid Rent Expense

Oct 3

Advertising expense $2,500 (debit)

Cash $2,500 (credit)

Paid Advertising Expense

Oct 5

Supplies $1,390 (debit)

Cash $1,390 (credit)

Paid for Supplies

Oct 6

Office equipment $10,670 (debit)

Office Equipment Accounts Payable $10,670 (credit)

Bought Office equipment on credit

Oct 10

Accounts Receivable $19,730 (debit)

Cash $19,730 (credit)

Received payment from accounts

Oct 15

Cash $59,480 (debit)

Accounts Payable $59,480 (credit)

Made payment to Accounts Payable

Oct 27

Miscellaneous Expenses $530 (debit)

Cash $530 (credit)

Paid for Miscellaneous Expenses

Oct 30

Utilities expense $220 (debit)

Cash $220 (credit)

Paid for telephone bill

Oct 31

Cash $538,620 (debit)

Fees Earned $538,620 (credit)

Cash received for Fees Earned

Oct 31

Utilities expense $1,540 (debit)

Cash $1,540 (credit)

Paid for electricity bill

Oct 31

Drawings $56,700 (debit)

Cash $56,700(credit)

Cash drawings by owner

Explanation:

I have prepared the journals and their narrations, see the above.

8 0

3 years ago

Can you think of any way that Gig workers might preserve their worker flexibility while attaining minimum wage standards, health

cluponka [151]

They wouldn’t want to pay someone as much

6 0

4 years ago

Flynn Industries has three activity cost pools and two products. It expects to produce 2,200 units of Product BC113 and 1,430 of

netineya [11]

Answer:

Results are below.

Explanation:

First, we need to calculate the allocation rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Machine setup= 19,608 / 38= $516 per set up

Machining= 123,650 / 4,945= $25 per machine hour

Packing= 33,530 / 479= $70 per order

Now, we can allocate to each product:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Product BC113:

Machine setup= 516*21= $10,836

Machining= 25*1,122= $28,050

Packing= 70*192= $13,440

Total= $52,326

Product AD908:

Machine setup= 516*17= $8,772

Machining= 25*3,824= $95,600

Packing= 70*287= $20,090

Total= $124,462

Finally, the unitary cost:

Product BC113= 52,326 / 2,200= $28,79

Product AD908= 124,462 / 1,430= $87.04

3 0

3 years ago

U.S. businesses and those of other countries are seeking to expand around the world for many reasons. Which of the following is

Andrews [41]

Answer:

C

Explanation:

An increase in underdeveloped countries cannot be the reason why businesses would expand abroad because there wont be as much potential buyers in underdeveloped economies as they have very low capita income and most of the residents live in very poor conditions. But however other options are valid because favorable trade agreements and developed transportation and IT makes the international trade easy and beneficial to both the buyer and the seller. Moreover, when domestic markets matures, the rate of growth slows down and falls to zero. this is when the businesses want to emerge and find new markets abroad in order to benefit from the trade as in matured market there is less chance for businesses to grow and it becomes risky

4 0

4 years ago

Nissan’s all-electric car, the Leaf, has a base price of $32,780 in the United States, but it is eligible for a $7500 federal ta

katen-ka-za [31]

Answer:

Nissan's all-electric car, the Leaf

PV cost of Leaf Purchase = $16,529

PV cost of Leasing = $12,944.78

The company should lease the car.

Explanation:

a) Costs incurred to purchase the Leaf:

Base price $32,780

less Federal tax credit ($7,500)

Charging station 2,200

less 50% tax credit (1,100)

Cash paid $26,380

Sales value after 3 yrs (9,851) ( $26,380 - 40% of base discounted to PV)

Net PV Investment $16,529

b) Calculation of Discounted Present Values of Payments under Leasing, using online financial calculator:

PV (Present Value) $12,944.78

N (Number of Periods) 3.000

I/Y (Interest Rate) 10.000%

PMT (Periodic Payment) $4,200.00

Starting Investment $2,500.00

Total Principal $15,100.00

Total Interest $2,129.50

c) The purchase of the Leaf would involve a present value cost of $26,380 after deducting all the savings from tax. The 40% sales value of the car at the end of 3 years = $13,112 ($32,780 x 40%). When this sales value is discounted to PV of $9,851, the PV of the car investments becomes $16,529 ($26,380 - $9,851). On the other hand, leasing will cost in PV the sum of $12,944.78

.

6 0

3 years ago