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garik1379 [7]
3 years ago
8

Dunn Sporting Goods sells athletic clothing and footwear to retail customers. Dunn's accountant indicates that the firm's operat

ing cycle averages 6 months. At December 31, 2019, Dunn has the following assets and liabilities:
1. Prepaid rent in the amount of $8,500. Dunn's rent is $500 per month.
2. A $9,700 account payable due in 45 days.
3. Inventory in the amount of $46,230. Dunn expects to sell $38,000 of the inventory within 3 months. The remainder will be placed in storage until September 2020. The items placed in storage should be sold by November 2020.
4. An investment in marketable securities in the amount of $1,900. Dunn expects to sell $700 of the marketable securities in 6 months. The remainder are not expected to be sold until 2022.
5. Cash in the amount of $1,050.
6. An equipment loan in the amount of $60,000 due in March 2024. Interest of $4,500 is due in March 2020 ($3,750 of the interest relates to 2019, with the remainder relating to the first 3 months of 2020).
7. An account receivable from a local university in the amount of $2,850. The university has promised to pay the full amount in 3 months.
8. Store equipment at a cost of $9,200. Accumulated depreciation has been recorded on the store equipment in the amount of $1,250.

Required:
Identify Current Assets and Liabilities.
Business
1 answer:
Brilliant_brown [7]3 years ago
8 0

Answer:

Dunn Sporting Goods

Identifying Current Assets and Current Liabilities

Current Assets:

1. Prepaid Rent             $6,000

3. Inventory                $46,230

4. Marketable securities $700

5. Cash                         $1,050

7. Account receivable $2,850

Current Liabilities:

2. Accounts payable $9,700

6. Interest  Payable  $4,500

Explanation:

a) Data and Analysis:

1. Prepaid Rent (Current Assets) $6,000 Prepaid Rent (Long-term Assets) $2,500 in the amount of $8,500. Dunn's rent is $500 per month.

2. Account payable $9,700

3. Inventory (Current assets) $46,230.

4. Short-term marketable securities $700 Long-term Investments $1,200  

5. Cash (current assets) $1,050.

6. Loan Payable (long-term) $60,000 due in March 2024. Interest  Payable (current liabilities) $4,500

7. Account receivable (Current assets) $2,850

8. Store equipment $9,200. Accumulated depreciation  $1,250.

b) Current assets are short-term assets expected to be used up within 12 months while current liabilities are short-term assets expected to be settled within 12 months.

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Alexxandr [17]

Answer:

Cheyenne’s Dog Care

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Debit Rent Expense $980

Credit Cash Account $980

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March 3:

Debit Accounts Receivable $110

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To record the performance of services on account.

March 5:

Debit Cash Account $60

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March 8:

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March 12:

Debit Cash Account $110

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To record the receipt of cash from customers.

March 14:

Debit Wages Expense $430

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To record the payment of wages.

March 22:

Debit Utilities Expense $60

Credit Cash Account $60

To record the payment of utilities.

March 24:

Debit Cash Account $1,230

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To record the signing of a note payable.

March 27:

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Explanation:

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3 0
3 years ago
In preparing a responsibility income statement that shows contribution margin and responsibility margin, two concepts are involv
Ivenika [448]

Answer: Whether the costs are variable or fixed and whether they are directly traceable to the responsibility center.

Explanation:

The Responsibility Income Statement is one where the different centers in a business have their own sub income statement so that the activities of each center and their profitability is measured and monitored.

In this statement, costs are classified as Variable and Fixed so it is important that it is known whether the costs are variable or fixed.

As the statements are per center, the costs in them would have to be only those that are directly traceable to that center so that a truer reflection of the statements can be seen.

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3 years ago
Jessica from the legal team needs to make a presentation on intellectual property rights. She is making this presentation for co
ioda

Answer:

Jessica should utilize the advice offered by Alison to edit her presentation slides, removing unnecessary details.

Explanation:

Editing the presentation will enable Jessica to get rid of unnecessary and unwanted stuff.  It will also ensure that the presentation is error-free and achieves grammatical accuracy.  Presentation slides should not be detailed since the required details are usually given during the proper presentation.

3 0
3 years ago
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Mike brought 100 shares costing $53 each.
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He got dividends of $1.45 per share. A dividend is money that is earnt back from a share.
Total dividend amount = 1.45*100
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I'm assuming that Mike sold his shares at the end of the year. He sells for $60 each.
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The rate of return in this instance can be defined as the amount of money made back from a share.

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Hope this helps! :)
4 0
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