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2 years ago

The balance sheet items of Kiner company as of December 31, current year, follow in random order

1 answer:

6 0

Retained Earnings = $86,000

Accounting Equation…Assets= Liabilities + Owners Equity

Assets (Cash, acct rec, equipment, building, land) = $421,000

Liabilities (Notes payable, accounts payable)= $260,000

Equity (capital stock) = $75,000

Liabilities + Equity= $335,000

Retained Earnings flows into equity

$421,000-$335,000= $86,000

$335,000+86,000= $421,000

So the equation balances.

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Gelb Company currently manufactures 43,000 units per year of a key component for its manufacturing process. Variable costs are $

Mashutka [201]

Answer:

It is cheaper to buy the component. At this level of production by $40,750.

Explanation:

Giving the following information:

Production= 43,000 units

Variable costs are $2.95 per unit

Avoidable Fixed costs= $73,000 per year

Unavoidable fixed costs= $77,500 per year.

The company is considering buying this component from a supplier for $3.70 per unit.

We need to calculate the cost of producing and buying and choose the best option.

Production:

Total cost= 43,000*2.95 + 73,000= $199,850

Buy:

Total cost= 43,000*3.7= $159,100

It is cheaper to buy the component. At this level of production by $40,750.

8 0

3 years ago

Which of the following is a feature of a good budget?

kiruha [24]

B and C, are bad feautures. A makes more sense, than D, so A should be your answer.

4 0

3 years ago

Read 2 more answers

Which of the following is a sign of credit trouble?

Aleks04 [339]

The right answer for the question that is being asked and shown above is that: "c. Credit cards are canceled due to poor payment history." a sign of credit trouble is that Credit cards are canceled due to poor payment history.

8 0

2 years ago

You have arranged for a loan on your new car that will require the first payment today. The loan is for $24,500, and the monthly

kykrilka [37]

Answer:

84%

Explanation:

APR is the annual rate of interest that is paid on an investment, without taking into account the compounding of interest within that year. APR is calculated by multiplying the periodic interest rate by the number of periods in a year in which the periodic rate is applied.

Divide the finance charge by the loan amount. In this case, $3,400 divided by $24,500 equals 0.138

Multiply the result by 365 to get 50.4

Divide the result by the term of the loan. In this case, 50.4 divided by 60 is 0.84

Multiply the result by 100 to turn the answer into a percentage 84%

4 0

3 years ago

A note payable was executed by Sterling Inc. to Miami Finance Company. Sterling Inc. used $768,000 of its accounts receivable as

denpristay [2]

Answer:

See all the entries below.

Explanation:

a. Record the entry for Sterling to record the secured borrowing.

The entries will look as follows:

Account Name Debit ($) Credit ($)

Cash (768,000 * 85%) 652,800

Note Payable 652,800

(To record the secured borrowing.)

b. Record the entries for Sterling to record (1) the collections and (2) the payment to Miami for the first month.

The entries will look as follows:

Account Name Debit ($) Credit ($)

Cash 504,320

Refund Liability 20,480

Accounts Receivable 524,800

(To record collection on receivables for first month.)

Interest Expense 4,480

Note Payable 499,840

Cash 504,320

(To record payment to Miami for the first month.)

c. Record the entries for Sterling to record (1) the collections for the second month and (2) the final payment to Miami.

The entries will look as follows:

Account Name Debit ($) Credit ($)

Cash 238,080

Allowance for Doubtful Debt 5,120

Accounts Receivable (w.1) 243,200

(To record collection on receivables for second month Interest.)

Expense 1,920

Note Payable 151,040

Cash (w.2) 152,960

(To record final payment to Miami.)

Workings:

w.1: Accounts Receivable = Amount of accounts receivable as collateral – Cash received from customer = $768,000 - $524,800 = $243,200

w.2: Cash = Loan - First payment for principal = $652,800 - $499,840 = $152,960

3 0

2 years ago