Happy Friday! How is everyone day so far!?

Prepare a multiple-step income statement through the calculation of gross profit.

Darya [45]

Answer:

inventory 6,000 debit

account payable 6,000 credit

--to record July 1st--

Acc Rec 900 debit

Sales Revenues 900 credit (+900 income)

--to record sale--

COGS 500 debit (-500 expense)

Inventory 500 credit

--to record cost of sale--

Delivery expense 125 debit (-125 expense)

Cash 125 credit

--to record freight-out --

Cash 1,700 debit

Sales Revenues 1,700 credit (+1,700 income)

--to record sale--

COGS 1,300 debit (-1,300 expense)

Inventory 1,300 credit

--to record cost of sale--

Inventory 2,200 debit

Account Payable 2,200 credit

--to record purchase--

Account Payable 200 debit

Inventory 200 credit

--to record return of goods--

Cash 882 debit

Sales DIscount 18 debit

Accounts Receivables 900 credit

--to record payment from customer--

Account Payable 6,000 debit

Cash 5,940 credit

Inventory 60 credit

--to record payment to supplier--

Cash 1,200 debit

Sales Revenues 1,200 credit (+1,200 income)

--to record sale--

COGS 800 debit (-800 expense)

Inventory 800 credit

--to record cost of sale--

Sales Returns 200 debit

Account Receivables 200 credit

-- to record return from customer--

Account Payable 2,000 debit

Cash 1,960 credit

Inventory 40 credit

--to record payment to supplier--

Cash 980 debit

Sales DIscount 20 debit

Accounts Receivables 1,000 credit

--to record payment from customer--

Cash 7,000 debit

Sales Revenues 7,000 credit (+7,000 income)

--to record sale--

COGS 4,800 debit (-4,800 expense)

Inventory 4,800 credit

--to record cost of sale--

Explanation:

Cheek

900 x 2% = 18

net of discount 900 - 18 = 882

Boden:

6,000 x 1% = 60

Net of discount 6,000 - 60 = 5,940

Leight:

2,200 - 2,000 = 2,000 balance due

2,000 x 2% = 40

net of discount 1,960

Art Co:

1,200 - 200 = 1,000 balance due

1,000 x 2% = 20 discount

net = 1,000 - 20 = 980

8 0

3 years ago

Why is it relevant that finance tends to attract large amounts of money?

djverab [1.8K]

Explanation:

An organization to be successful in the long term and competitive in the market, needs financial capital to carry out its activities, for this they open the company's capital to investors, who are the capital holders willing to inject capital into the company and receive dividends business, thus becoming a partner of that company.

It is essential that companies attract investors willing to inject a large amount into the business, as this benefits both, since a company with larger amounts of assets will produce more, have its obligations up to date and remain better positioned in the market.

To attract investors to a company, it is necessary that the company has a good reputation in the market and there is a favorable negotiation process, where there is a demonstration of results and the opportunity that the investor will have to invest his money in an organization that will generate profits.

6 0

3 years ago

Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one uni

Viefleur [7K]

Answer: Materials price variance= $5,550 ----F - Favourable

Materials quantity variance=$4,250-U- Unfavourable

Labor Rate Variance= $2,400- U=Unfavorable

Labor Efficiency Variance=$2,800 =F Favourable

Explanation:

Standard Quantity Standard Price Standard Cost

or Hours or Rate

Direct materials 6.40 pounds $ 1.70 per pound $ 10.88

D.irect labor 0.40 hours $ 14.00 per hour $ 5.60

18,500.00 pounds of material were purchased at a cost of $1.40 per pound. All of the material purchased was used to produce 2,500 units of Zoom. 800 hours of direct labor time were recorded at a total labor cost of $13,600

a Materials price variance =Actual Quantity of Material Purchased*(Actual Rate - Standard Rate)

=18,500 X ( 1.40 -1.70)= 18,500 X 0.3= $5,550 ----F - Favourable because the actual cost of material per unit is less than the standard cost of material per unit]

b Materials quantity variance=Standard Rate*(Actual Quantity of Material Used in Production - Standard Quantity of Material Used in Production)

Standard Quantity of Material Used in Production = Actual Units Produced*Standard Material Per Unit

=2500 x 6.40= 16,000pounds nof materials

Materials quantity variance=1.70 x (18,500 - 16,000) =$4,250-U- Unfavourable because the actual quantity of material used to produce 2,500 units is higher than what was expected as the standard

C)Labor Rate Variance = Actual Hours Used*(Actual Rate - Standard Rate)

Actual rate = Actual cost/ Actual time

= 13,600/800= $17

Labor Rate Variance= 800 x (17-14)= 800 x 3 = $2,400- U=Unfavorable because the actual labor hour rate is higher than the standard hour rate

D)Labor Efficiency Variance = Standard Rate*(Actual Hours Used in Production - Standard Hours Used in Production)

Standard Hours Used in Production = Actual Units Produced*Standard Hours Per Unit

2500 x 0.40=1000 hours

Labor Efficiency Variance= 14 x ( 800 -1000) 14 x 200= $2,800 =F Favourable because the actual hours used in production is less than the standard hours that could have been used to produce 2,500 units

8 0

4 years ago

The following information is available for Cubic Company before closing the accounts. After all closing entries are made, what w

Goryan [66]

Answer:

$164,200

Explanation:

Given that,

After all closing entries are made,

Net income = $101,200

Retained earnings = $98,000

Dividends = $35,000

Therefore,

Balance of retained earnings:

= Retained earnings + Net income - Dividends

= $98,000 + $101,200 - $35,000

= $164,200

Hence, the balance in the Retained earnings account is $164,200.

7 0

3 years ago

Ways of eliminating waste in procurement

oee [108]

Answer:

Throwing away your trash, and not leaving it on the ground. You can pick it up and recycle it if you find any.

Explanation:

3 0

3 years ago