1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Wewaii [24]
2 years ago
7

On January 1, 2021, Red Flash Photography had the following balances: Cash, $20,000; Supplies, $8,800; Land, $68,000; Deferred R

evenue, $5,800; Common Stock $58,000; and Retained Earnings, $33,000. During 2021, the company had the following transactions: 1. February 15 Issue additional shares of common stock, $28,000. 2. May 20 Provide services to customers for cash, $43,000, and on account, $38,000. 3. August 31 Pay salaries to employees for work in 2021, $31,000. 4. October 1 Paid for one year's rent in advance, $20,000. 5. November 17 Purchase supplies on account, $30,000. 6. December 30 Pay dividends, $2,800.
The following information is available on December 31, 2021:
1. Employees are owed an additional $4,800 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $5,800 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.
Business
1 answer:
Vilka [71]2 years ago
4 0

Answer:

A. 15-Feb

Dr Cash $ 28,000.00

Cr Common Stock $ 28,000.00

20-May

Dr Cash $ 43,000.00

CrAccounts Receivable $ 38,000.00

Cr To Service Revenue $ 81,000.00

31-Aug

Dr Salaries Expense $ 31,000.00

Cr To Cash $ 31,000.00

1-Oct

Dr Prepaid Rent $ 20,000.00

Cr To Cash $ 20,000.00

17-Nov Dr Supplies $ 30,000.00

Cr Accounts Payable $ 30,000.00

30-Dec

Dr Dividends $ 2,800.00

Cr Cash $ 2,800.00

31-Dec

Dr Salaries Expense $ 4,800.00

Cr Salaries Payable $ 4,800.00

31-Dec

Dr Rent Expense $ 5,000.00

Cr Prepaid Rent $ 5,000.00

31-Dec

Dr Supplies Expense $ 33,000.00

Cr Supplies $ 33,000.00

31-Dec

Dr Deferred Revenue $ 5,800.00

Cr Service Revenue $ 5,800.00

B. $ 13,000.00

C. $ 43,200.00

D.TOTAL ASSETS $ 164,000.00

TOTAL LIABILITIES and EQUITY $ 164,000.00

Explanation:

Preparation of General Journal, Income Statement, Statement of SE, Balance Sheet

15-Feb

Dr Cash $ 28,000.00

Cr Common Stock $ 28,000.00

20-May

Dr Cash $ 43,000.00

CrAccounts Receivable $ 38,000.00

Cr To Service Revenue $ 81,000.00

31-Aug

Dr Salaries Expense $ 31,000.00

Cr To Cash $ 31,000.00

1-Oct

Dr Prepaid Rent $ 20,000.00

Cr To Cash $ 20,000.00

17-Nov Dr Supplies $ 30,000.00

Cr Accounts Payable $ 30,000.00

30-Dec

Dr Dividends $ 2,800.00

Cr Cash $ 2,800.00

31-Dec

Dr Salaries Expense $ 4,800.00

Cr Salaries Payable $ 4,800.00

31-Dec

Dr Rent Expense $ 5,000.00

Cr Prepaid Rent $ 5,000.00

($ 20000 x 3/12)

31-Dec

Dr Supplies Expense $ 33,000.00

Cr Supplies $ 33,000.00

($ 8800 + $ 30000 - $ 5800)

31-Dec

Dr Deferred Revenue $ 5,800.00

Cr Service Revenue $ 5,800.00

B. Preparation of INCOME STATEMENT

Service REVENUE $ 86,800.00

Less: EXPENSES

Salaries Expense $ 35,800.00

Rent Expense $ 5,000.00

Supplies Expense $ 33,000.00

Net Income $ 13,000.00

($ 86,800.00-$ 73,800.00)

Therefore the income statement will be $ 13,000.00

Calculation for the STATEMENT OF RETAINED EARNINGS

Beginning Balance $ 33,000.00

Add: Net Income $ 13,000.00

Less: Dividends $ (2,800.00)

Ending Balance $ 43,200.00

Therefore retained earnings will be $ 43,200.00

D. Preparation of BALANCE SHEET

ASSETS

Cash $ 37,200.00

Accounts Receivable $ 38,000.00

Prepaid Rent $ 15,000.00

Supplies $ 5,800.00

Land $ 68,000.00

TOTAL ASSETS $ 164,000.00

LIABILITIES and EQUITY

Liabilities

Accounts Payable $ 30,000.00

Salaries Payable $ 4,800.00

Total Liabilities $ 34,800.00

Equity

Common stock $ 86,000.00

Retained Earnings $ 43,200.00

Total Equity $ 129,200.00

TOTAL LIABILITIES and EQUITY $ 164,000.00

Therefore the balance sheet will be

ASSETS $ 164,000.00

TOTAL LIABILITIES and EQUITY $ 164,000.00

You might be interested in
Wytes Pharmaceuticals wants to shift its list of inventory to a cloud so that its different branches can access it easily. The c
weeeeeb [17]

Answer:  A public cloud

     

Explanation: The public cloud is described as processing resources that are provided through the wider internet by third-party suppliers, allowing them access for anyone who chooses to have or buy them. These can be complimentary or on-demand priced, enabling consumers to pay for the CPU cycles, storage, or connectivity these use only per use.

The biggest difference between private and public servers is that you're not responsible for maintaining a public cloud computing solution. Your information is stored in the server farm of the supplier and the data center is owned and controlled by the provider.

7 0
3 years ago
Effective managers understand the importance of clear communication using different channels to advance the _________ strategy.
algol13

Effective managers understand the importance of clear communication and hence use different channels to advance the<u> organizational communication strategy</u>

<u></u>

<h3>What is a communication strategy?</h3>

<u></u>

Communication strategy refers to the plans for speaking statistics associated with a selected issue, event, situation, or audience. They function as the blueprints for speaking with the public, stakeholders, or maybe colleagues.

<u></u>

Therefore, Effective managers understand the importance of clear communication and hence use different channels to advance the<u> organizational communication strategy</u>

<u></u>

Learn more about Communication strategy:

brainly.com/question/14426871

#SPJ1

4 0
2 years ago
Bernie wants to go into the business of construction contracting. Among the reasons that would probably convince Bernie to set u
krek1111 [17]

Answer:

a. its greater flexibility

Explanation:

A sole proprietorship is A form of legal business structure owned by only one person. The liabilities of the owner is unlimited. It is usually flexible as decisions are made and approved by the owner.

A sole proprietorship doesn't usually have perpetual existence. It usually ends when the owner dies. It is not easy to transfer shares to other family members.

A sole proprietorship gives the owner the opportunity to be involved in the day to day running of the business.

I hope my answer helps you.

6 0
3 years ago
Schneider, Inc., had the following information relating to Year 1: Budgeted factory overhead: $74,800 Actual factory overhead: $
astraxan [27]

Answer:

<u>The actual direct labor hours are 45,000.</u>

<u>The overhead rate for Year 2 is $1.74.</u>

Explanation:

Compute the actual direct labor hours:

\begin{aligned}\text{Actual direct labor hours}&=\dfrac{\text{Applied overheads}}{\text{Overhead rate}}\\&=\dfrac{\$76,500}{1.7}\\&=45,000\end{aligned}

<u>Therefore, the actual direct labor hours are 45,000.</u>

Compute the overhead rate for Year 2:

\begin{aligned}\text{Overhead rate}&=\dfrac{\text{Actual overheads}}{\text{Actual direct labor hours}}\\&=\dfrac{\$78,300}{45,000}\\&=1.74\end{aligned}

<u>Therefore, the overhead rate for Year 2 is $1.74.</u>

<u />

Working note:

Calculate the overhead rate for Year 1:

\begin{aligned}\text{Overhead rate}&=\dfrac{\text{Budgeted overheads}}{\text{Estimated direct labor hours}}\\&=\dfrac{\$74,800}{44,000}\\&=1.7\end{aligned}

7 0
3 years ago
Highland Company's standard cost is $250,000. The allowable deviation is ±10%. Its actual costs for six months are as follows Ja
Rasek [7]

Answer:

The month that is lower than the lower control limit is February ($220,000).

Explanation:

Giving the following information:

Highland Company's standard cost is $250,000.

The allowable deviation is ±10%.

Actual Fixed costs:

January $235,000

February 220,000

March 245,000

April 265,000

May 270,000

June 280,000

First, we need to calculate the lower control limit:

Lower control limit= 250,000*0.9= $225,000

The month that is lower than the lower control limit is February ($220,000).

6 0
3 years ago
Other questions:
  • If you’re offered and no-interest loan, the amount of the loan should not exceed
    9·1 answer
  • A pharmacist stocks only one particular brand of acetaminophen, a popular pain-relief drug. Even if his customers prefer other p
    8·1 answer
  • Imagine that you are the manager of valley skateboard shop. the accountant for the business has delivered the news that sales ar
    13·1 answer
  • A company has two departments, Y and Z that incur delivery expenses. An analysis of the total delivery expense of $12,000 indica
    15·1 answer
  • What step in the investigative process would the development of timelines and interpretation of burn patterns be related to?
    15·1 answer
  • Jacob Engineering Group views and organizes its marketing activities from the viewpoint of its buyers. Management works hard to
    9·1 answer
  • fowler credit bank is offering 6.7 percent compounded dailyon its savings accounts. If you deposit $7000 today, how much will yo
    12·1 answer
  • Stoneheart Group is expected to pay a dividend of $3.17 next year. The company's dividend growth rate is expected to be 3.9 perc
    6·1 answer
  • Assume the XYZ Corporation is producing 20 units of output. It is selling this output in a purely competitive market at $10 per
    9·1 answer
  • Mr. Smith's house was listed at $325,000. The property eventually sold for $365,000. The agreed upon commission was 5%. How much
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!