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katrin2010 [14]
3 years ago
11

Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $11,000 cash an

d $47,300 of photography equipment in the company in exchange for common stock. 2 The company paid $3,800 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,090 cash. 20 The company received $2,950 cash in photography fees earned. 31 The company paid $878 cash for August utilities. Prepare general journal entries for the above transactions.
Business
1 answer:
Citrus2011 [14]3 years ago
3 0

Answer:

Aug 01

Dr Cash 11,000

Dr Photography equipment 47,300

Cr Common stock 58,300

Aug 02

Dr Prepaid insurance 3,800

Cr Cash 3,800

Aug 05

Dr Office supplies 2,090

Cr Cash 2,090

Aug 20

Dr Cash $2,950

Cr Photography fees earned $2,950

Aug 31

Dr Utilities expense $878

Cr Cash $878

Explanation:

Preparation of the general journal entries

Aug 01

Dr Cash 11,000

Dr Photography equipment 47,300

Cr Common stock 58,300

(47,300+11,000)

Aug 02

Dr Prepaid insurance 3,800

Cr Cash 3,800

Aug 05

Dr Office supplies 2,090

Cr Cash 2,090

Aug 20

Dr Cash $2,950

Cr Photography fees earned $2,950

Aug 31

Dr Utilities expense $878

Cr Cash $878

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Answer:

$7,700 increase

Explanation:

We can determine the change in Wolverine's cash balance by deducting the cash disbursement and operating expenses from the cash receipts.\

Change in cash balance = Cash receipts - Cash disbursement - Operating expense

Change in cash balance = $48,000 - $33,800 -$6,500

Change in cash balance = $7,700

WORKING:

<u>Cash Receipts</u>

Sales

February ( 59,000 x 45%)            $26,550

January ( 39,000 x 55%)              $21,450  

Total                                               $48,000

<u>Cash disbursement</u>

Purchases

February ( 44,000 x 15%)            $6,600

January ( 32,000 x 85%)             $27,200  

Total                                              $33,800

<u>Operating expenses </u>

Incurred                                        $9,400

Depreciation                                ($2,900)

Net                                                 $6,500

7 0
3 years ago
It is important to identify and use only incremental cash flows in capital investment decisions:A) because they are the simplest
abruzzese [7]

Answer:

C) because ultimately it is the change in a firm's overall future cash flows that matter.

Explanation:

Under capital budgeting decisions, decisions are made with respect to addressing the questions like what is the benefit of selecting the project and investing on it.

If the answer to above question is raised income, then the project is selected. Accordingly the raised income in cash terms will be measured by increase in cash flows, that is incremental cash flows.

In simplest terms additional cash flows.

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Mrs. Hanson has 2 pies for a party. She calculates that if she splits the pies evenly among the guests, they will each receive
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Answer:

16 guests

Explanation:

If each guest is getting 1/8 of a pie, it means one pie is being divided into eight parts. One part is 1/8. One pie will be served to eight guests.

Two pies will be sufficient for 2x 8 = 16 guests.

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2 years ago
On January​ 1, 2024, Tyson Manufacturing Company purchased a machine for $41,100,000. ​Tyson's management expects to use the mac
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Answer:

Annual depreciation= $5,865,714.29

Explanation:

Giving the following information:

Purchase price= $41,100,000

Salvage value= $40,000

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<u>To calculate the depreciation expense for 2024, we need to use the following formula:</u>

Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated

Annual depreciation= [(41,100,000 - 40,000) / 28,000]*4,000

Annual depreciation= $5,865,714.29

7 0
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Excelor stock is expected to pay $3.00 per share as its next annual dividend. The firm has a policy of increasing the dividend b
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r = (3/13.65) + 0.11

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r = 0.049 + (2.8 * 0.0856)

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