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2 years ago

if a start up business owner invests $25,000 cash and then borrows $15,000 from a bank, the owner's equity would be

Business

1 answer:

ss7ja [257]2 years ago

7 0

The owner's equity would be $10,000

<h3>What is owner's equity?</h3>

Owners Equity is the residual interest that represents the portion remained to the investors such as partners and shareholders.

This is computed by deducting liabilities from the asset account, which includes capital accounts and retained earnings.

Using the accounting equation,

Assets = Liabilities + Equity

$25,000 = $15,000 + Equity

Equity = $25,000 - $15,000

Equity = $10,000

Therefore, owner's equity would be $10,000

Learn more about owner's equity here: brainly.com/question/11110287

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The following payroll journal entries for Oct. 15 were made by your predecessor. For FICA tax, assume that the social security r

krok68 [10]

Answer:

1. We have:

Payroll subject to the federal unemployment taxes = $22,000

Payroll subject to the state unemployment taxes = $22,000

2. Total payroll = $820,000

3. FICA taxes in payroll = $61,500

Explanation:

Note: The data in this question are merged together. They are therefore sorted before answering the question. See the attached pdf file for the complete question with the sorted data.

The explanation of the answers is now provided as follows:

1. Determine the payroll amount subject to federal and state unemployment taxes in this payroll.

Payroll subject to the federal unemployment taxes = Federal unemployment tax payable / Federal unemployment tax rates = 176 / 0.8% = $22,000

Payroll subject to the state unemployment taxes = State unemployment tax payable / State unemployment tax rates = 1,188 / 5.4% = $22,000

2. What is the total payroll for Copperfield and Company shown in these journal entries?

Total payroll = Salaries Expense + Wages Expense = 647,800 + $172,200 = $820,000

3. What is Copperfield and Company’s share of FICA taxes in this payroll?

FICA taxes in payroll = Social security tax payable + Medical tax payable = $49,200 + 12,300 = $61,500

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4 0

3 years ago

RKO Company sold bonds with a face value of $850,000 for $910,000. The bonds have a coupon rate of 8 percent, mature in 10 years

Alex73 [517]

Answer:

cash 910,000 debit

bonds payable 850,000 credit

premium on BP 60,000 credit

-- to record issuance of bonds --

interest expense 63700 debit

amortization 4300 credit

cash 68000 credit

--to record coupon payment at December 31th--

Explanation:

issuance:

cash proceed of 910,000 face value of 850,000 the 60,000 difference wil be a premium.

interest entry:

we multiply the carrying value of the bonds by the market rate

we calcualte the cash procees as ussual: face value x bond rate

the difference wil be the amortization on premium

910,000 x 7% 63,700

850,000 x 8% 68,000

amorization 4,300

5 0

3 years ago

Continuing the analysis of Ginnie's Gym Refreshment Bar:

IrinaVladis [17]

The bundle prices for Hydration Power Drink and Satisfying Smoothie are given below.

<h3>What is Contribution Margin?</h3>

The contribution margin (CM), also known as the dollar contribution per unit, is the difference between the selling price and the variable cost per unit.

Because 100% is the best contribution margin, the closer the contribution margin is to 100%, the better. The greater the figure, the better a company's ability to meet its overhead expenditures with cash on hand.

The contribution margin =

Unit Margin (Profit) = Unit Revenue - Unit Variable Cost (Marginal Cost)

<h3>What is the bundle prices and Net Profit?</h3>

For Hydration Power Drink:

High 7 -1 = 6

Low: 6 - 1 = 5

Total = 11

For Satisfying Smoothie:

High: 10 -4 = 6

Low: 5-4 = 1

Total = 7

High Bundle Price for both products:
6 + 6 = 12

Low Bundle price for both products:
5 + 1 = 6

From the above information, it is clear that the Bundle Price that will maximize profit is the High Bundle Price.

The product that will yield the most profit is: The Hydration Power Drink.

Learn more about bundle price:
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7 0

2 years ago

What is a marketing plan and why is it a company's a most important document? What basic elements should be included in a top-do

bonufazy [111]

Answer:

Explanation:

A marketing plan refers to the comprehensive document that outlines a company's overall marketing effort. It is a blueprint that outlines how a company will implement its marketing strategy, and how the company will utilize a combination of resources in order to achieve its business objectives. It is a company's a most important document because:

It contains specific goals and objectives and outlines the precise strategies to be used in achieving them.

It rallies the company's forces and resources for the marketing battlefield and therefore, dictates the role of Integrated Marketing Communications (IMC) in the marketing mix.

A marketing plan should always have the following:

A situation analysis: normally this will include a market analysis, a SWOT analysis and a competitive analysis.

Marketing strategy
Sales forecast
Expense budget.

Small companies can use bottom-up marketing to become big companies by creating an ingenious tactic they can use and building a strategy around it.

The elements of an advertising plan and an IMC strategy:

The IMC strategy will be determined by how the marketer makes use of the creative mix.

The creative mix is composed of:

The target audience
Product concept
Communications media, and
The message.

The best method of allocating funds for a real estate development is the sales percentage, market share, objective task, empirical research

The type of companies that tend to use the percentage of sales method are companies that want to use a method that will cost them nothing and will provide a greater chance of success for future sales.

4 0

3 years ago

Shares of Notung Cutlery Corp. closed 2010 at $75 per share. Notunghad 14.5 million shares outstanding. The assets are valued at

Kay [80]

Answer:

If you considered that outstanding shares are equal that total shares, then: market capitalization is $1.085 billions; market value added is $477.5 millions and the market-ti-book ratio is 1.78.

Explanation:

To get these numbers we calculate as follow: market capitalization = number of shares multiply by the price per share (75$ x 14.5 million); marked value added = market capitalization - (total assets - liabilities) [1.085 Bn - (1 Bn - 390 m)] ; and market-to-book ratio = market capitalization / book value (1.085bn/610m)

6 0

3 years ago