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lutik1710 [3]
3 years ago
13

The adjusted trial balance of Concord Company shows the following data pertaining to sales at the end of its fiscal year, Octobe

r 31, 2020: Sales Revenue $728,400, Delivery Expense $12,780, Sales Returns and Allowances $25,320, and Sales Discounts $12,380.
a. Prepare the revenues section of the income statement.
b. Prepare separate closing entries for (1) sales and (2) the contra accounts to sales.
Business
1 answer:
Sonbull [250]3 years ago
4 0

Answer:

Sales revenue    728,400

Sales R&A            (25,320)

Delivery Expense (12,780) * considered freight-out

sales discount   <u>   (12,380)    </u>

net sales:              677,920‬

sales revenue   728,400 debit

      income summary             728,400 credit

--to close revenues accounts--

income summary      50,480

  Delivery Expense                          12,780

   Sales Returns and Allowances  25,320

   Sales Discounts                           12,380.

--to close the contra account to sales---

Income summary  677,920

        Retained Earnings       677,920

Explanation:

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At the end of 2001, Lehnhoff Inc. had $75 million in cash on its balance sheet. During 2002, the following events occurred: The
Zepler [3.9K]

Answer:

The multiple choices are:

a. $200 Million

b. $50 Million

c. $1.4 Billion

d. $100 Million

The correct option is A,$200 million

Explanation:

The increase in cash recorded from the statement of cash flows prepared in the year plus the opening balance of cash at the beginning of the year gives the cash balance at the end of the year shown below:

Increase in cash in the year=cash flow from operations+cash flow from financing activities-cash flow used on investing activities

increase in cash in the year=$325+($500-$100)-$600=$125  million

cash at the end of the year=$125 +$75=$200 million

6 0
3 years ago
Mars Corp. is choosing between two different capital investment proposals. Machine A has a useful life of four years, and machin
Zigmanuir [339]

Answer:

c. Mars should invest in Machine B becuase the net present value of Machine A after 4 years is lower than the net present value of Machine B after 4 years.

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

Considering that machine b can be sold on 4 years, The NPV of machine b should be calculated based on the cash flow in for 4 years

NPV can be calculated using a financial calculator.

Machine A :

Cash flow in year 0 = $-200,000

Cash flow each year from year 1 to 4 = $70,000

I = 10%

NPV = 21,890.58

Machine B :

Cash flow in year 0 = $-200,000

Cash flow each year from year 1 = $80,000

Cash flow each year from year 2 = $70,000

Cash flow each year from year 3 = $60,000

Cash flow each year from year 4 = $40000 + $35,000 = $75,000

I = 10%

NPV = $26,883.41

Machine b should be accepted because its NPV is greater than that of machine A

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

6 0
3 years ago
"if i didn't have class tonight, i would save the $4 campus parking fee and spend four hours at work where i earn $10 per hour."
bixtya [17]
Opportunity Cost = It is the cost that is to be sacrificed for achieving something else.  
Given: - 
Campus parking fess (class) = $4 
Income earned through working for 4 hours in place of attending class = $40 ($10/hr) 
 Solution: -  
Opportunity cost of attending class = $4 + $40 = $44.
3 0
3 years ago
arris Corporation, which has only one product, has provided the following data concerning its most recent month of operations: S
Komok [63]

Answer:

$12,500

Explanation:

Absorption costing consider all the cost incurred in production either variable or fixed as production cost and all the operating costs as the period costs. It calculates the gross profit after deducting the cost of goods sold from the net sales and net income after deduction the operating costs from the gross profit.

First of all we need to calculate the product cost.

Manufacturing cost

Direct materials                               $19

Direct labor                                      $61

Variable manufacturing overhead $7

Fixed manufacturing overhead      $15

($135,000/9,000)                          <u>           </u>

Total Product cost                         <u> $102</u>

Now We will calculate the Net Income

Sales (8,600 x $116)                                   $997,600

Less: Cost of goods sold (8,600 x $102)  <u>$877,200</u>

Gross Profit                                                 $120,400

Less:

Variable selling & admin expense            $99,000

($11 x 9,000)

Fixed selling and admin expense             <u>$8,900   </u>

Net Income                                                 <u>$12,500  </u>

6 0
3 years ago
Is this bond currently trading at a​ discount, at​ par, or at a​ premium? Explain. ​(Select the best choice​ below.) A. Because
Dmitrij [34]

A. Because the yield to maturity is less than the coupon​ rate, the bond is trading at a discount. FALSE

<u>Explanation:</u> If the yield to maturity (YTM) is less than the Coupon rate (CR) the bond is trading at a premium

B. Because the yield to maturity is greater than the coupon​ rate, the bond is trading at par. FALSE

<u>Explanation:</u> If the yield to maturity (YTM) is greater than the Coupon rate (CR) the bond is trading at a discount.

C. Because the yield to maturity is less than the coupon​ rate, the bond is trading at a premium. TRUE

D. Because the yield to maturity is greater than the coupon​ rate, the bond is trading at a premium. TRUE

7 0
3 years ago
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