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3 years ago

Martinez Corp. has the following transactions during August of the current year.

Business

1 answer:

Vinvika [58]3 years ago

6 0

Answer:

Aug 1

Cash $10930 Dr

Common Stock $10930 Cr

Aug 4

Prepaid Insurance $1760 Dr

Cash $1760 Cr

Aug 16

Cash $810 Dr

Service Revenue $810 Cr

Aug 27

Salary Expense $570 Dr

Cash $570 Cr

Explanation:

Aug 1

The receipt of cash in exchange of common stock is recorded as a debit to cash which is an asset and a credit to common stock which is capital

Aug 4

Prepayment of any expense is recorded as a current asset. Thus, prepaid insurance is debited as asset increases and cash is credited as cash decreases.

Aug 16

The receipt of cash in exchange of service provision is recorded as a credit to service revenue and a debit to cash

Aug 27

Payment of salary is an expense and is recorded as a debit to salary expense and a credit to cash.

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Answer:

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Explanation:

As per the data given in the question,

Contribution margin = Sales - Variable expense

Number of books = $880,000 ÷ $55

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Variable selling expenses = 16,000 × $6

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Total = $96,000 + $44,000

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2 years ago

________ is the conscious designing of retail space and its various dimensions to evoke certain effects in buyers.

Ivahew [28]

Answer:

Atmospherics

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3 years ago

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Answer and Explanation:

The preparation of the cash flow statement is presented below:

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Net income $49,311

Less: Gain on disposal of property -$1,188

Add: Depreciation expense $11,580

Add: Other items involving non-cash expenses $1,383

Less: Increase in accounts receivable -$1,746

Add: Decrease in inventory $990

Less: Increase in prepaid expenses -$605

Less: Decrease in accounts payable -$710

Less: Decrease in accrued and other current liabilities -995

Cash flow provided by operating activities $58,020

Amortization of intangible assets : Added

Decrease in accounts payable : Decrease

Decrease in accounts receivable : Added

Decrease in accrued and other current liabilities : Decrease

Decrease in inventory : Added

Decrease in prepaid expenses : Added

Depreciation : Added

Gain on disposal of property : Decrease

Increase in accounts payable : Added

Increase in accrued and other current liabilities : Added

Increase in accounts receivable : Decrease

Increase in inventory : Decrease

Increase in prepaid expenses : Decrease

Losses on disposal of property: Added

Other items involving noncash expenses : added

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3 years ago