<u>Solution and Explanation:</u>
<u>The following journal entries are passed in the books of accounts.</u>
Purchase of merchandise on credit - no entry is to be passed
Contribution of automobile to the company:
Date Details debit credit
12- nov Automobiles 17000
TB Capital 17000
( To record contribution of automobile to the company)
Sale of merchandise on credit:
Not recorded in gernal journal
Return of merchandise sold:
Date Details debit credit
19- Nov Sales return and allowances 175
accounts receivable - KM 175
Answer:
d.$72 per machine hour
Explanation:
Predetermined overhead rate = Budgeted Overheads ÷ Budgeted Activity
therefore,
Predetermined overhead rate = $11,742,000 ÷ 164,000
= $71.598 or $72
The predetermined overhead rate based on machine hours is $72 per machine hour.
The formula is
I=prt
I interest paid 1120
p principle 32000
T time 4/12
R annual percentage interest rate?
Solve for r
R=I÷pt
R=1,120÷(32,000×(4÷12))
R=0.105×100
R=10.5%
Answer:
Baltimore Inc.
a. Total taxable income = $47,200
b. Income tax payable = $11,800
c. Income tax expense = $11,250
d. Net income = $33,750
Explanation:
a) Data and Calculations:
GAAP determined pretax income = $45,000
Add nondeductible fines 5,000
Less exempt municipal interest revenue 2,800
Total taxable income $47,200
Income tax (25%) 11,800
Income tax expense:
GAAP determined pretax income = $45,000
Income tax (25%) 11,250
Net income $33,750
b) The differences between the GAAP determined pretax income and the tax determined taxable income are due to permanent differences (not temporary). This implies that there are no deferred tax assets and liabilities and no recoveries from deferred taxes. However, in reporting its financial performance for the year, Baltimore Inc. still has to comply with the GAAP rules and not the tax rules.
In economics, there is a formula to predict the growth of money value with time. When dealing with simple interest, the formula is
F = P(1+in), where F is the future worth, P is the present worth, i is the annual interest rate, and n is the amount of time, commonly in terms of years. Substituting to the formula,
F = $23,000(1+0.08*15)
F = $50,600
