Difference between luna and sol?

Presented below are various account balances of K.D. Lang Inc.

yulyashka [42]

Answer:

a. Contra Liability and expense account

b. Long-term liability

c. Long-term and current liability

d. current liability

e. Long-term liability

f. Current asset

g. Current liability

h. current liability

i. current liability

Explanation:

Req. A, B and C

A. Contra liability is a credit liability account for that has an explicit debit liability account. In that case, unamortized premium on bonds payable is a liability for which there is a premium, which is a debit liability. $3,000 is an expense, so it is an expense account.

B. Since the current year is 2017 and the maturity date is 2021, it is a long-term liability.

C. As $200,000 will be matured at the end of the year, it is a current liability. $800,000 is a long-term liability.

Req. D, E and F

D. Due to income tax purpose, employees' wages will be withhold for a specific time, it is a current liability.

E(1,2). Since the notes payable will be matured in 2020, it is a long-term liability. (as operating cycle is more than one year, it is a long-term liability. Whatever assets are used, they are long-term liabilities.

F. Accounts receivable is a current asset account. Therefore, if the balance is credit due to returns, it will not change the account.

Req. G, H and I

G. Since the bonds payable is matured at the end of this period, the entire amount will be current liability.

H. Bank Overdraft is a current liability account whatever the scenario pretends.

I. Since customers paid and goods have not been provided to them, it is a liability for the company. As it is related to products, it is a current liability.

6 0

4 years ago

Plum Corporation began the month of May with $1,400,000 of current assets, a current ratio of 1.90:1, and an acid-test ratio of

matrenka [14]

Answer:

Plum Corporation

(1) current ratio = Current assets/current liabilities

(2) acid-test ratio = (Current asset -Inventory)/Current liabilities

(3) working capital = Current assets minus Current liabilities

(4) acid-test assets = quick assets

May 2 Purchased $75,000 of merchandise inventory on credit.

Current Assets: $1,400,000 + $75,000 = $1,475,000

Current Liabilities: $737,000 + $75,000 = $812,000

Inventory: $147,000 +$75,000 = $222,000

(1) current ratio = $1,475,000/$812,000

= 1.82:1

(2) acid-test ratio = $1,475,000 - $222,000/$812,000

= 1.54:1

(3) working capital = Current Assets - Current Liabilities

= $1,475,000 - $812,000

= $663,000

May 8 Sold merchandise inventory that cost $55,000 for $150,000 cash.

Current Assets: $1,475,000 -55,000 + 150,000 = $1,570,000

Current Liabilities: $812,000

Inventory: $222,000 - 55,000 = $167,000

Quick Assets = $1,570,000 - 167,000 = $1,403,000

(1) current ratio = $1,570,000/$812,000

= 1.93

(2) acid-test ratio = $1,403,000/$812,000

= 1.73

(3) working capital = $1,570,000 - $812,000

= $758,000

May 10 Collected $26,000 cash on an account receivable.

Current Assets: $1,570,000 ($26,000 - $26,000) = $1,570,000

Current Liabilities: $812,000

Inventory: 167,000

Quick Assets = $1,570,000 - 167,000 = $1,403,000

(1) current ratio = $1,570,000/$812,000

= 1.93

(2) acid-test ratio = $1,403,000/$812,000

= 1.73

(3) working capital = $1,570,000 - $812,000

= $758,000

May 15 Paid $29,500 cash to settle an account payable.

Current Assets: $1,570,000 - $29,500 = $1,540,500

Current Liabilities: $812,000 - $29,500 = $782,500

Inventory: 167,000

Quick Assets = $1,540,500 - 167,000 = $1,373,500

(1) current ratio = $1,540,500/$782,500

= 1.97:1

(2) acid-test ratio = $1,373,500/$782,500

= 1.76:1

(3) working capital = $1,540,500 - $782,500

= $758,000

May 17 Wrote off a $5,000 bad debt against the Allowance for Doubtful Accounts account.

Current Assets: $1,540,500 - $5,000 = $1,535,500

Current Liabilities: $782,500

Inventory: 167,000

Quick Assets = $1,535,500 - 167,000 = $1,368,500

(1) current ratio = $1,535,500/$782,500

= 1.96:1

(2) acid-test ratio = $1,535,500/$782,500

= $1.96:1

(3) working capital = $1,535,500 - $782,500

=$753,000

May 22 Declared a $1 per share cash dividend on its 69,000 shares of outstanding common stock.

Current Assets: $1,535,500

Current Liabilities: $782,500

Inventory: 167,000

Quick Assets = $1,535,500 - 167,000 = $1,368,500

(1) current ratio = $1,535,500/$782,500

= 1.96:1

(2) acid-test ratio = $1,535,500/$782,500

= $1.96:1

(3) working capital = $1,535,500 - $782,500

=$753,000

May 26 Paid the dividend declared on May 22.

Current Assets: $1,535,500 -$69,000 = $1,466,500

Current Liabilities: $782,500

Inventory: 167,000

Quick Assets = $1,466,500 - 167,000 = $1,299,500

(1) current ratio = $1,466,500/$782,500

= 1.87:1

(2) acid-test ratio = $1,299,500/$782,500

= 1.66:1

(3) working capital = $1,466,500 - $782,500

= $684,000

May 27 Borrowed $120,000 cash by giving the bank a 30-day, 10% note.

Current Assets: $1,466,500 + $120,000 = $1,586,500

Current Liabilities: $782,500 + $120,000 = $902,500

Inventory: 167,000

Quick Assets = $1,586,500 - 167,000 = $1,419,500

(1) current ratio = $1,586,500/$902,500

= 1.76

(2) acid-test ratio = $1,419,500/$902,500

= 1.57

(3) working capital = $1,586,500 - $902,500

= $684,000

May 28 Borrowed $135,000 cash by signing a long-term secured note.

Current Assets: $1,586,500 + $135,000= $1,721,500

Current Liabilities: $902,500

Inventory: 167,000

Quick Assets = $1,721,500 - 167,000 = $1,554,500

(1) current ratio = $1,721,500/$902,500

= 1.91:1

(2) acid-test ratio = $1,554,500/$902,500

= 1.72

(3) working capital = $1,721,500 - $902,500

= $819,000

May 29 Used the $255,000 cash proceeds from the notes to buy new machinery.

Current Assets: $1,721,500 - $255,000 = $1,466,500

Current Liabilities: $902,500

Inventory: 167,000

Quick Assets = $1,466,500 - 167,000 = $1,299,500

(1) current ratio = $1,466,500/$902,500

= 1.62:1

(2) acid-test ratio = $1,299,500/$902,500

= 1.44:1

(3) working capital = $1,466,500 - $902,500

= $564,000

Explanation:

a) Data and Calculations:

May 1, Current Assets = $1,400,000

Ratio of current assets to current liabilities = 1.90:1

Acid -test ratio = 1.70:1

Therefore, current liabilities = $1,400,000/1.9 = $737,000

Current Assets minus Inventory/$737,000 = 1.7

Therefore, current assets minus inventory = $737,000 * 1.7 = 1,253,000

Inventory = Current Assets - (Current assets -inventory)

= $1,400,000 - $1,253,000

= $147,000

3 0

4 years ago

Read 2 more answers

Henderson industries has $500 million of common equity on its balance sheet; its stock price is $60 per share; and its market va

vodka [1.7K]

Calculation of number of common shares currently outstanding:

It is given that Henderson industries has $500 million of common equity on its balance sheet; its stock price is $60 per share; and its market value added (mva) is $130 million.

We can use MVA formula to calculate the number of common shares currently outstanding as follows:

MVA = (Total Shares Outstanding × Current Market Price) − Total Common Equity

130,000,000 = (Total Shares Outstanding x 60)-500,000,000

(Total Shares Outstanding x 60)= 130,000,000 + 500,000,000

Total Shares Outstanding x 60= 630,000,000

Hence,

Total Shares Outstanding = 630,000,000 /60 = 10,500,000

Hence, the number of common shares currently outstanding are 10,500,000 shares.

5 0

4 years ago

Changing a career is what kind of obstacle?

anygoal [31]

Building a network, experience void, translating skills, competetion, & employer risk

7 0

3 years ago

There are vast differences in local market needs in the consumer soft drink business around the world. TwinFold Media, a Canadia

nordsb [41]

Answer: c. it tends to reduce cultural myopia and enhance local responsiveness.

Explanation:

A Geocentric staffing approach means that a company picks those that it views as the most suitable for a job regardless of the country they are from. This means that although the company is in Canada, they can hire a person from Sudan if they feel the person is suitable for the job in question.

The main advantage of this is that it reduces cultural myopia which is the tendency to belief that a person's culture i.e western culture, works across the globe. For instance, going back to the earlier example, a person from Sudan would most likely know more about norms in Sudan than a person from Canada.

This would ensure that the people hired, can respond effectively due to this reduction in cultural myopia.

3 0

3 years ago

Difference between luna and sol?​

Difference between luna and sol?