The following Trial Balance was extracted from the books of D. Sampras a sole trader on March

The following transactions occur for Badger Biking Company during the month of June: Provide services to customers on account fo

Taya2010 [7]

Answer:

a) Assets increase by 35,000 (account receivable )

Equity increase by 35,000 (sales revenue)

b) no effect

c) Assets increase by 20,000 (equipment)

Liabilities increase by 20,000 (note payable)

d) Assets decrease by 3500 (cash)

Equity decrease by 3500 (utilities expense)

Explanation:

Accounting Equation:

Assets = Liaiblities + Equity

Assets: things and right owned by the company and able to generate cash in the future

Liabilities: obligation to do or pay assumed by the company

Equity: contribution from owners and earnings/losses

a) Provide services to customers on account for $35,000.

As the company has the right to claim the invoince aginst his customers and is also earning a profit from this sale

b) Receive cash of $27,000 from customers in (a) above.

we are "trading" one assets (account receivable) for another (cash) As the amount collected decerase the amount owed by the customer the effect of income from cash and decrease in amount to collect balance.

c) Purchase bike equipment by signing a note with the bank for $20,000.

the new equipment is an asset, it wil lgenerate earnings in the future. While the promissory note is an obligation thus, liability.

d) Pay utilities of $3,500 for the current mont.

the utulities paid will not generate incoem in the future are cost incurred thus, expenses which decreases the earnings of the business.

6 0

4 years ago

Taylor inc., the company you work for, is considering a new project whose data are shown below. what is the project's year 1 cas

arsen [322]

Answer:

$27,175

Explanation:

Year 1

Sales $62,500

Depreciation $8,000

Operating Cost $25,000

Total Expense ($33,000)

Income Before tax $29,500

Tax 35% ($10,325)

Net Income $19,175

Interest Expense is not relevant to the project, It is a financing decision which will not be part of project calculation.

As the Net income includes the deduction of non cash item of depreciation. so, it will be added back to calculate the cash flow.

Cash Flow in year 1 = Net Income + Depreciation = $19,175 + $8,000 = $27,175

5 0

4 years ago

Read 2 more answers

One year ago, Alpha Supply issued 15-year bonds at par. The bonds have a coupon rate of 6.5 percent, paid semiannually, and a fa

Masja [62]

Answer:

option (C) - 6.11%

Explanation:

Data provided :

Coupon rate one year ago = 6.5% = 0.065

Semiannual coupon rate = $\frac{0.065}{2}$ = 0.0325

Face value = $1,000

Present market yield = 7.2% = 0.072

Semiannual Present market yield, r = $\frac{0.072}{2}$ = 0.036

Now,

With semiannual coupon rate bond price one year ago, C

= 0.0325 × $1,000

= $32.5

Total period in 15 years = 15 year - 1 year = 14 year

or

n = 14 × 2 = 28 semiannual periods

Therefore,

The present value = $C\times[\frac{(1-(1+r)^{-n})}{r}]+FV(1+r)^{-n}$

= $\$32.5\times[\frac{(1-(1+0.036)^{-28})}{0.036}]+\$1,000\times(1+0.036)^{-28}$

or

= $32.5 × 17.4591 + $1,000 × 0.37147

= $567.42 + $371.47

= $938.89

Hence,

The percent change in bond price = $\frac{\textup{Final price - Initial price}}{\textup{Initial price}}\times100\%$

= $\frac{\textup{938.89-1,000}}{\textup{1,000}}$

= - 6.11%

therefore,

the correct answer is option (C) - 6.11%

4 0

4 years ago

Give two examples of unethical behavior for each of these areas: inspection, process control, process capability. For each, name

artcher [175]

Action that falls outside of a conciderde

4 0

3 years ago

Even when products are commodity items, the _____ element can be a powerful differentiating factor for which a customer will pay

Dmitry_Shevchenko [17]

Service can play a big part in whether or not a person would be willing to pay more for an item. Through add-ons like free shipping, assistance with product selection, and support if/when the product fails, the customer can discriminate between products and companies that might offer similar goods.

5 0

3 years ago