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kari74 [83]
3 years ago
10

Use the information in the adjusted trial balance to prepare (a) the income statement for the year ended December 31; (b) the st

atement of retained earnings for the year ended December 31 [Note: Retained Earnings at December 31 of the prior year was $284,220]; and (c) the balance sheet as of December 31.
Business
1 answer:
Nastasia [14]3 years ago
6 0

Question Completion:

The adjusted trial balance for Chiara Company as of December 31 follows.

                                                                  Debit    Credit

Cash                                                        $182,200

Accounts receivable                                   51,500

Interest receivable                                      21,000

Notes receivable (due in 90 days)          169,000

Office supplies                                           15,500

Automobiles                                             175,000

Accumulated depreciation-Automobiles                $70,000

Equipment                                               142,000

Accumulated depreciation-Equipment                     19,000

Land                                                         85,000

Accounts payable                                                      98,000

Interest payable                                                        50,000

Salaries payable                                                         16,000

Unearned fees                                                          30,000

Long-term notes payable                                        152,000

Common stock                                                           51,580

Retained earnings                                                   284,220

Dividends                                                48,000

Fees earned                                                           524,000

Interest earned                                                         34,000

Depreciation expense-Automobiles     27,500

Depreciation expense-Equipment         18,500

Salaries expense                                  190,000

Wages expense                                     44,000

Interest expense                                   36,200

Office supplies expense                       35,800

Advertising expense                             60,000

Repairs expense-Automobiles             27,600

Totals                                               $1,328,800 $1,328,800

Answer:

CHIARA COMPANY

a) Income Statement For Year Ended December 31

Fees earned                                                         $524,000

Interest earned                                                         34,000

Total revenue                                                      $558,000

Depreciation expense-Automobiles     27,500

Depreciation expense-Equipment         18,500

Salaries expense                                  190,000

Wages expense                                     44,000

Interest expense                                   36,200

Office supplies expense                       35,800

Advertising expense                             60,000

Repairs expense-Automobiles             27,600

Total expenses                                                   $ 439,600

Net income                                                            $118,400

CHIARA COMPANY

2. Statement of Retained Earnings For Year Ended December 31

Retained earnings, Dec.31 prior year        $284,220

Add: Net income                                             118,400

                                                                      402,620

Less: Dividends                                               48,000

Retained earnings, Dec. 31 current year  $354,620

CHIARA COMPANY

3. Balance Sheet December 31

Assets

Current assets:

Cash                                                        $182,200

Accounts receivable                                   51,500

Interest receivable                                      21,000

Notes receivable (due in 90 days)          169,000

Office supplies                                           15,500   $439,200

Long-term assets:

Automobiles                         175,000

Accumulated depreciation   70,000     105,000

Equipment                           142,000

Accumulated depreciation   19,000     123,000

Land                                                        85,000     $313,000

Total assets                                                            $752,200

Liabilities + Equity

Current liabilities:

Accounts payable                              $98,000

Interest payable                                   50,000

Salaries payable                                   16,000

Unearned fees                                    30,000      $194,000

Long-term notes payable                                        152,000

Total liabilities                                                       $346,000

Equity:

Common stock                                  $51,580

Retained earnings                            354,620    $406,200

Total equity Total liabilities and equity              $752,200

Explanation:

The financial statements above are prepared from the adjusted trial balance.  The revenue items (temporary accounts) are closed to the income statement, while the assets, liabilities, and equity accounts (permanent items) are closed to the balance sheet.  The Statement of retained earnings links the income statement and the balance sheet through the adjustments to the net income and retained earnings.

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So then we can answer this question like this:

P(23

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Solution to the problem

For this case we know that the the random variable X represent the number of phone calls answered by each of the 12 receptionists is bell shaped with a mean \mu = 37 and a standard deviation of \sigma = 7.

And for this case we want to find this probability:

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And the best way to solve this is using the z score formula given by:

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For the value fo 51 we have this:

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And for the 23 we got:

z= \frac{23-37}{7}=-2

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5 0
3 years ago
River Wild is considering purchasing a water park in Charleston, South Carolina​, for $ 2,050,000. The new facility will generat
Kipish [7]

Answer:

1. Payback period = 3.94 Years

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The NPV is $937,102,

The approximate IRR of this investment is 20.87%

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Explanation:

In order to calculate the Payback period ARR, the NPV, and the approximate IRR of this investment we would have to use the following formula:

Payback period = Initial Investment/Annual net Cash inflow

Payback period = $ 2,050,000/$ 520,000

Payback period = 3.94 Years

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Average Net Income = $ 520,000-$ 2,050,000/8

Average Net Income = $262,750

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NPV = -Initial Investment + Annual Cash Inflow *(1-(1+r)^-n)/r

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IRR = rate(8, $ 520,000,-$ 2,050,000,0)

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6 0
3 years ago
Summit Services Co. offers its services to individuals desiring to improve their personal images. After the accounts have been a
Agata [3.3K]

Answer:

May-31

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Cr Rent expense $50,800

Cr Supplies expense $12,400

Cr Wages expense $213,300

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Cr Dividends $33,000

Explanation:

Preparation to Journalize the closing entries required to close the accounts.

May-31

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($213,300+$12,400+$50,800-$243,000)

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Cr Supplies expense $12,400

Cr Wages expense $213,300

Cr Miscellaneous expense $ 4,300

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5 0
3 years ago
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Ilia_Sergeevich [38]

Answer:

It decreases. 

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I hope my answer helps you

4 0
4 years ago
Read 2 more answers
PLEASE HELP............
sleet_krkn [62]
I would say D all of the above
6 0
3 years ago
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