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3 years ago

Cheese Factory Incorporated reported the following information for the fiscal year ended August 31, 2015.

Business

1 answer:

liraira [26]3 years ago

7 0

Answer:

1. Income statement for 2016.

Sales revenue ($1,661,000 + $15,000) $1,676,000

Less Cost of Sales

Purchases ($1,490,000 + $145,000) ($1,635,000)

Gross Profit $41,000

Less Expenses

Office Expense $95,000

Salaries and wages expense $955,000

Utilities Expense $530,000 ($1,580,000)

Net Loss ($1,539,000)

<u>2. Statement of retained earnings for the fiscal year ended August 31, 2015.</u>

Retained Earnings Beginning $410,000

Dividends $10,000

Retained Earnings Closing $400,000

Explanation:

Income statement calculates profit : Profit = Gross Profit (Sales - Cost of Sales) - Expenses. Whilst Statement of retained earnings calculates closing balance in Retained Earnings : Closing Balance = Opening Balance + Profit for the year - Dividends

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Langhurst Company sold hardware for $12,000 cash and $18,000 of hardware to credit customers. Which of the following is the corr

lora16 [44]

Answer:

Cash A/c Dr $12,000

Account receivable A/c Dr $18,000

To Hardware revenues A/c $30,000

(Being the sale of hardware is recorded)

Explanation:

The journal entry is shown below:

Cash A/c Dr $12,000

Account receivable A/c Dr $18,000

To Hardware revenues A/c $30,000

(Being the sale of hardware is recorded)

Since the sale is taken which increase the current asset i.e cash account and the account receivable by $12,000 and $18,000 respectively so we debited it and the revenue is an income so we credited it

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3 years ago

Stefan Ceramics is in the business of selling ceramic vases. It has two departments - molding and finishing. Molding department

lakkis [162]

Answer:

Explanation:

The journal entry is shown below:

Work in Process-Molding A/c Dr $3,000

To Accounts Payable Control $3,000

(Being the purchase and used production is recorded)

The computation of the purchase amount is shown below:

= Number of kgs purchased × price per kg

= 500 kgs × $60

= $3,000

The other information which is given is not considered. Thus, ignored it

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3 years ago

A bakery sold apple pies for $11 and blueberry pies for $13. one saturday they sold a total of 38 pies and collected a total of

Nimfa-mama [501]

So first you know that if a is apple pies and b is blueberry that
$460=11a+13b in terms of price and you also know that the number
a+b=38
I solved that for either a or b (I chose a)
So
A=38-b
Them I plugged it in to the money equation to solve for b
460=11(38-b)+13b
460=418-11b+13b
460=418+2b
42=2b
B=21
Therefore you can do 38(total pies)-21(what b equals) to find the apple pies which would be 17 so a=17
Therefore the answer is B (17 apple and 21 blueberry)

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3 years ago

Read 2 more answers

Software designed to help create business plans has proven to be of little value because it is difficult to apply it to every bu

Angelina_Jolie [31]

Answer:

True

Explanation:

Business plan software have proven to be of little value in its application. This can be attributed to the fact that softwares are standardized and do not have the flexibility to stray from the provided templates. Also, business softwares restricts the user from personalizing his or her business plans according to his or her business environment or location. Finally, software designed to create business plans do not allow users to review their written works. All these contributed in making softwares designed to help create business plans difficult to apply in every business situation, thus diminishes its value.

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3 years ago

In the current year, Azure Company has $350,000 of net operating income before deducting any compensation or other payment to it

slamgirl [31]

Answer:

Answer is explained in the explanation section below.

Explanation:

A) No dividends or salary to Sasha:

If no dividends or salary then no net income, hence, no taxable amount.

Company has the taxable income of $350,000.

Corporate tax will be computed by reducing the threshold limit from the taxable income according to the rules of income tax and then tax rate will be applied.

b) Distributes $75000 of dividends to Sasha.

Now, it has got the dividend, now the amount is taxable. It will be taxed on every dividend that Sasha will get during each year.

c) Pays $75000 salary to Sasha:

Now, the Sasha is getting Salary of $75000, it means the total taxable amount of $350,000 will be reduced by the amount of Salary that Sasha is receiving. Now, the balance taxable amount = $350,000 - $75000 = $275000

Amount that Sasha is liable to pay as a tax = $75000 x 39.6% = $29700

So, $29700 is the amount that Sasha will pay as tax for getting her salary of $75000

d) Sole proprietorship and Sasha Withdraws nothing:

In this case, taxable income of Sasha is the profit of the company Azure,

So,

Tax payable = $350,000 x 39.6% = $138,600

e) Sole proprietorship and Sasha Withdraws $75000:

Even in this case, Sasha is liable to pay the tax.

Tax payable = $350,000 x 39.6% = $138,600

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3 years ago