Answer:
(a) BJ = AJ
In equilibrium, apples and bananas have the same price.
Jimmy’s consumption bundle must be 3 apples and 3 bananas
i just did this
Explanation:
mrk me brainliest pleasee
Why would an investor prefer purchasing bonds to purchasing stocks?
A. Unlike stocks, bonds are guaranteed to return a profit to the
investor.
B. Bonds are typically less risky than stocks.
O C. Unlike stocks, when an investor owns bonds, they own a tiny part
of the company
D. Bonds are more likely than stocks to make huge profits.
Answer:
B. Bonds are typically less risky than stocks.
Explanation:
Answer: B. Bonds are typically less risky than stocks
Explanation:a. p. e. x. (just took the test)
MAD Inc. has a capital structure consisting of 40 percent debt and 60 percent common equity financing. The company has $400 million in net income and plans to pay out 25 percent of their earnings as dividends. What is the maximum amount of new financing that the company can raise without selling new common stock
Answer:
$500 million
Explanation:
Retained earnings = Income * (1 - Dividend payout percentage)
Retained earnings = $400 million * (1-0.25)
Retained earnings = $400 million * 0.75
Retained earnings = $300 million
Amount that can be raise without selling new stock: Retained earnings / % of equity financing in total capital
= $300 million / 60%
= $300 million / 0.60
= $500 million
You enter into a short crude oil futures contract at $43 per barrel. The initial margin is $3,375 and the maintenence margin is $2,500. One contract is for 1,000 barrels of oil. By how much do oil prices have to change before you receive a margin call
Answer:
The correct answer is "43.875". A further explanation is provided below.
Explanation:
The given values are:
Initial margin,
= $3,375
Maintenance margin,
= $2,500
Barrels of oil,
= 1,000
Now,
The loss on the position will be:
= [tex]3375-2500[/tex]
= [tex]875[/tex] ($)
then,
⇒ [tex]1000 (P - 43) = 875[/tex]
⇒ [tex]1000P-43000=875[/tex]
On adding "43000" both sides, we get
⇒ [tex]1000P-43000+43000=875+43000[/tex]
⇒ [tex]1000P=43875[/tex]
⇒ [tex]P=\frac{43875}{1000}[/tex]
⇒ [tex]=43.875[/tex]
Sally took out a $70,000, 5-year term policy at age 45. The premium per $1,000
was $4.21. She will be 50 years old this year. The premium per $1,000 will be
$5.90. What is the percent increase?*
40%
45%
42%
52%
K
Which of the following statements about corporate governance in China is false? a. The state still uses direct and/or indirect controls to influence the strategies employed by most firms. b. The Chinese governance system may be tilting toward the Western model. c. Firms with higher state ownership tend to have lower market value and more volatility in those values over time. d. Private firms seek to establish political ties with the government to increase market value and avoid potential conflict between the principals.
Answer: D. Private firms seek to establish political ties with the government to increase market value and avoid potential conflict between the principals.
Explanation:
Corporate governance refers to a system of policies and rules, which dictate how the operations of an organization are manageed. The statements that are true about corporate governance in China include:
• The state still uses direct and/or indirect controls to influence the strategies employed by most firms.
• The Chinese governance system may be tilting toward the Western model.
• Firms with higher state ownership tend to have lower market value and more volatility in those values over time.
Therefore, the answer to the question will be option D as it's not true about corporate governance in China.
thoughtful is to considerate as
Answer:
thoughtful is to considerate as courage is to bravery?
Red Co. had the following transactions through December 31: Cash proceeds from the sale of investment in Gold Co. stock $ 15,000 Dividends received on investment in Blue Co. stock $ 10,000 Repaid principal on a loan to the bank $ 35,000 Acquired investment in Yellow Co. stock $ 75,000 Proceeds from the disposal of factory equipment $ 12,000 What amount should Red report as net cash used by investing activities in its statement of cash flows for the period ended December 31
Answer:
Red Co.
The amount that Red Co should report as net cash used by investing activities in its statement of cash flows for the period ended December 31 is:
= $38,000.
Explanation:
a) Data and Calculations:
Investing activities section of the Statement of Cash Flows:
Sales of investment in Gold Co stock $15,000
Dividends received on Blue Co. stock 10,000
Purchase of investment in Yellow Co (75,000)
Proceeds from the disposal of equipment 12,000
Net cash used by investing activities $38,000
Vick Vickers has a large consulting practice. New clients are required to pay one-half of the consulting fees up front. The balance is paid at the conclusion of the consultation. How does Vickers account for the cash received at the end of the engagement
Answer:
Vick Vickers
Vickers accounts for the cash received at the end of the engagement by debiting Cash account and crediting Consulting Fees (Revenue).
Explanation:
Then the fees received upfront, which were earlier credited to the Deferred Service Revenue account, are then closed by a debit to the Deferred Service Revenue and a credit to the Consulting Fees (Revenue) account. This is in line with the double-entry system of financial accounting and the new Revenue from Contracts with Customers, IFRS 15 or the ASC 606 equivalent.
Determine the net income of a company for which the following information is available for the month of July. Employee salaries expense $ 182,000 Interest expense 12,000 Rent expense 22,000 Consulting revenue 408,000
Answer:
I don't know thish question
Dev is a strategist for the firm Stark Industries, which produces high-quality HD movie cameras. This company needs a specific material for a new camera they are developing, which is manufactured in large quantities by a competitor called LENS Inc. However, this material is difficult to trade. Because of this, which of the following is most likely the best strategy for Dev to suggest?
A. Stark industries should acquire LENS
B. Stark industries should enter into co-opetition with LENS
C. Stark industries should form a long term agreement with LENS
D. Stark industries should form a short term agreement with LENS
Answer: A. Stark industries should acquire LENS
Explanation:
Based on the information given in the question, the best strategy that Dev should suggest is that Stark industries should acquire LENS.
Since Stark Industries require the material from LENS and it's difficult to trade, the best option is to acquire it. The acquisition will make the production of the high-quality HD movie cameras easier.
It should be noted that entering into a competition with LENS is not advisable as that'll lead to the material not gotten. Also, a short or long term agreement isn't advisable as well.
Therefore, the correct option is A.
Lynch Company began operations in 2019. The company reported $24,000 of depreciation expense on its income statement in 2019 and $26,000 in 2020. On its tax returns, Lynch deducted $32,000 for depreciation in 2019 and $37,000 in 2020. The 2020 tax return shows a tax obligation (liability) of $12,000 based on a 25% tax rate.
Required:
Determine the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020.
Answer:
2019 $8,000
2020 $19,000
Explanation:
Calculation to determine the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020.
Calculation for 2019 Temporary differences
2019
Using this formula
2019 Temporary differences = 2019 Depreciation- 2019 depreciation expense
Let plug in the formula
2019 Temporary differences =$32,000 - $24,000
2019 Temporary differences= $8,000
Calculation for 2020 Temporary differences
Using this formula
2020 Temporary differences=(2019 Depreciation+2020 Depreciation)-( 2019 Depreciation expense+2020 Depreciation expense)
Let plug in the formula
2020 Temporary differences= ($32,000 + $37,000) - ($24,000 + $26,000)
2020 Temporary differences=$69,000-$50,000
2020 Temporary differences= $19,000
Therefore the temporary difference between the book value of depreciable assets and the tax basis of these assets at the end of 2019 and 2020 will be $8,000 and $19,000
A maker of computer games expects to sell games at a price of per game. These units cost to produce. Selling, general, and administrative expenses are million and depreciation is . What is the EBIT break-even point for the number of games sold in this case?
Answer:
$33,684 units
Explanation:
Calculation to determine the EBIT break-even point for the number of games sold in this case
Using this formula
Units sold=(Selling, general, and administrative expenses+Depreciation)/(Price per game-Units cost)
Let plug in the formula
Units sold=($1,000,000+$280,000)/($48-$10)
Units sold = $1,280,000 / $38
Units sold= $33,684 units
Therefore the EBIT break-even point for the number of games sold in this case will be $33,684 units
Sage Company is operating at 90% of capacity and is currently purchasing a part used in its manufacturing operations for $16.00 per unit. The unit cost for the business to make the part is $20.00, including fixed costs, and $11.00, excluding fixed costs. If 32,842 units of the part are normally purchased during the year but could be manufactured using unused capacity, what would be the amount of differential cost increase or decrease from making the part rather than purchasing it
Answer:
$164,210 decrease
Explanation:
Calculation to determine what would be the amount of differential cost increase or decrease from making the part rather than purchasing it
Differential cost increase or decrease=(32,842 * 16)- (32,842 * 11)=
Differential cost increase or decrease=$525,472-$361,262
Differential cost increase or decrease=$164,210 decrease
Therefore what would be the amount of differential cost increase or decrease from making the part rather than purchasing it is $164,210 decrease
Juan Martinez, a systems engineer at a construction machinery company, just received his performance appraisal from his boss, Emily Taylor. Although Juan has been mostly an average performer, Emily gave him below average ratings due to the fact that the person who Emily evaluated before Juan was Max Houser, an exceptional performer. This is an example of what type of rating error
Answer: Contrast
Explanation:
Contrast error is a type of rating error whereby how a target person is evaluated in a group is dependent and affected by how others perform in that group.
Contrast error is used in appraising the performance of an individual and the rating of a candidate will be affected by how the person before him or her was rated. Based on the question, Juan was rated below average because the person before him was given an exceptional rating.
On January 1, a company issued and sold a $399,000, 9%, 10-year bond payable, and received proceeds of $394,000. Interest is payable each June 30 and December 31. The company uses the straight-line method to amortize the discount. The journal entry to record the first interest payment is:
Answer:
Cash Interest payable on Bond = $399,000*4.5% = $17,955
Discount to be amortized = ($399,000-$394,000)/20 = $250
Interest expense = $17,955+$250 = $18,205
Date Journal Entry Debit Credit
Interest Expense $18,205
Discount on bonds payable $250
Cash $17,955
Your opinion is that CSCO has an expected rate of return of 0.15. It has a beta of 1.3. The risk-free rate is 0.04 and the market expected rate of return is 0.115. According to the Capital Asset Pricing Model, this security is
Answer:
Overpriced
Explanation:
The computation is shown below;
As we know that
Expected rate of return = risk free rate + beta × ( expected market rate of return - risk free rate )
= 0.04 + 1.3 × (0.115 - 0.04)
= 0.1375
As the return of the security is 0.1375 i.e. more than the expected rate of return i.e. 0.115
Hence, it is overpriced
Santana Rey, owner of Business Solutions, decides to diversify her business by also manufacturing computer workstation furniture.
Required:
1. Classify the following manufacturing costs of Business Solutions as (a) variable or fixed and (b) direct or indirect.
A. Monthly flat fee to clean workshop
B. Laminate coverings for desktops
C. Taxes on assembly workshop
2. Prepare a schedule of cost of goods manufactured for Business Solutions for the month ended January 31, 2018. Assume the following manufacturing costs:
Direct materials: $2,300
Factory overhead: $550
Direct labor: $1,200
Beginning work in process: none (December 31, 2019)
Ending work in process: $550 (January 31, 2020)
Beginning finished goods inventory: none (December 31, 2019)
Ending finished goods inventory: $320 (January 31, 2020)
3. Prepare the cost of goods sold section of a partial income statement for Business Solutions for the month ended January 31, 2018.
Answer:
Business Solutions
1. Costs Classification:
A. Monthly flat fee to clean workshop = fixed / indirect
B. Laminate coverings for desktops = variable / direct
C. Taxes on assembly workshop = fixed / indirect
2. A Schedule of Cost of Goods Manufactured:
Direct materials: $2,300
Factory overhead: $550
Direct labor: $1,200
Beginning work in process: 0
Ending work in process: (550)
Cost of goods manufactured $3,500
3. Cost of goods sold:
Beginning finished goods inventory: $0
Cost of goods manufactured $3,500
Ending finished goods inventory: $320
Cost of goods sold = $3,180
Explanation:
a) Data and Calculations:
Direct materials: $2,300
Factory overhead: $550
Direct labor: $1,200
Beginning work in process: none (December 31, 2019)
Ending work in process: $550 (January 31, 2020)
Beginning finished goods inventory: none (December 31, 2019)
Ending finished goods inventory: $320 (January 31, 2020)
b) Variable costs are input or direct costs that change with the level of output. Fixed costs are indirect costs that do not change based on the units produced.
Recording Transactions Affecting Stockholders’ Equity
King Corporation began operations in January 2014. The charter authorized the following capital stock:
Preferred stock: 10 percent, $10 par, authorized 40,000 shares
Common stock: $5 par, authorized 85,000 shares
During 2014, the following transactions occurred in the order given:
a. Issued 22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.
b. Sold 9,000 shares of the preferred stock at $20 per share.
c. Sold 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
Required:
Give the journal entries indicated for each of these transactions.
Answer:
King Corporation
Journal Entries:
a. Debit Cash $594,000
Credit Common stock $330,000
Credit Additional Paid-in Capital- Common $264,000
To record the issuance of 22,000 shares of common stock to each of the three organizers at $9 per share.
b. Debit Cash $180,000
Credit 10% Preferred stock $90,000
Credit Additional Paid-in Capital - Preferred $90,000
To record the issuance of 9,000 shares of the preferred stock at $20 per share.
c. Debit Cash $45,000
Credit 10% Preferred stock $10,000
Credit Additional Paid-in Capital- Preferred $10,000
Credit Common stock $12,500
Credit Additional Paid-in Capital-Common $12,500
To record the issuance of 1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
Explanation:
Data and Analysis:
a. Cash $594,000 Common stock $330,000 Additional Paid-in Capital- Common $264,000
22,000 shares of common stock to each of the three organizers and collected $9 cash per share from each of them.
b. Cash $180,000 10% Preferred stock $90,000 Additional Paid-in Capital - Preferred $90,000
9,000 shares of the preferred stock at $20 per share.
c. Cash $45,000 10% Preferred stock $10,000 Additional Paid-in Capital- Preferred $10,000 Common stock $12,500 Additional Paid-in Capital-Common $12,500
1,000 shares of the preferred stock at $20 and 2,500 shares of common stock at $10 per share.
A stock is expected to return 8% in a normal economy, 12% if the economy booms, and lose 3% if the economy moves into a recessionary period. Economists predict a 56% chance of a normal economy, a 25% chance of a boom, and a 19% chance of a recession. The expected return on the stock is __%.
Answer: 6.91%
Explanation:
Expected return = Sum of (Probability of state of economy * Return given state of economy)
= (56% * 8%) + (12% * 25%) + (19% * -3%)
= 4.48% + 3% - 0.57%
= 6.91%
Which pathways are part of the Human Services career cluster? Select all that apply.
o Counseling and Mental Health Services
o Support Services
o Family and Community Services
o Early Childhood Development and Services
o Therapeutic Services
o Consumer Services
o Personal Care Services
Answer:
consumer services
counseling and mental health services
early childhood development and services
family and community services
personal care services.
Explanation:
The Human Services Career Cluster are simply skills that prepares one to take on jobs that cater for human and family needs. This job could either be as a social worker, pedicurist, etc, as human needs will be addressed.
The pathways which are part of the Human Services career cluster include consumer services
counseling and mental health services
early childhood development and services
family and community services
personal care services.
Answer:
A,C,D,F,G
Explanation:
g On January 1, 2019, plant assets, net are $190,000. On December 31, 2019, plant assets, net are $290,000. Depreciation expense for the year is $20,000. During the year, plant assets were acquired for $155,000 with cash. There is a Gain on sale of plant asset of $10,000. What are the cash proceeds from the sale of the plant asset
Answer:
$45,000
Explanation:
Given the equation below,
Total beginning net book value of plant assets + Total plant assets purchased during that period - Total depreciation recorded of plant assets during that period - Net book value of plant assets sold during the period = Net closing book value of plant assets
Hence, we have
$190,000 - $20,000 + $155,000 - Net book value of plant assets sold during the period = $290,000
Net boom value of plant sold during the period = $35,000
We also have the equation below;
Sales proceed - Net book value of plant assets sold during the period = Gain(loss) on disposal of assets
Sales proceed - $35,000 = $10,000
Sales proceed = $10,000 + $35,000
Sales proceed = $45,000
A company projects an increase in net income of $135,000 each year for the next five years if it invests $900,000 in new equipment. The equipment has a five-year life and an estimated salvage value of $300,000. What is the annual rate of return on this investment
Answer:
the annual rate of return is 22.50%
Explanation:
The computation of the annual rate of return is shown below:
Average investment is
= ($900,000 + $300,000) ÷ 2
= $600,000
Now
Annual rate of return is
= Annual net income ÷ Average investment
= $135,000 ÷ $600,000
= 22.50%
hence, the annual rate of return is 22.50%
Harvey Dent wants to sell the $43,000 TriForcebonds he purchased 3 years ago at par value. The bonds have a 2.80% coupon, 9 years to maturity, and are trading at a 2.45% yield to maturity. If Harvey sells the bonds today, his proceeds from the sale would result in:
Answer: $1203
Explanation:
Based on the information given in the question, the proceeds gotten from the sales if Harvey sells the bonds today will be:
Formula for bond price = Present value (Rate, Period, -Coupon amount, -Par value)
= PV(2.45%, 9, -43000 × 2.8%, -43000)
= 44203
Therefore, the proceeds will be the difference between the selling price and the purchase price which will be:
= $44203 - $43000
= $1203
The total value of the bond, or the amount you'll earn if you sell it, is the sum of the face value and the bond's added interest value. The coupon for each bond specifies the interest rate.
The answer, $1203 is the proceeds from the sale would result in.
If Harvey sells the bonds today, based on the evidence presented in the question, the revenues will be:
The formula for bond price = Present value (Rate, Period, -Coupon amount, -Par value)
[tex]= PV(2.45, 9, - 43000 \text{ x } 0.028, - 43000)\\= 44203[/tex]
As a result, the revenues will be equal to the difference between the selling and buying prices, which will be:
[tex]= 44203 - 43000= $1203[/tex]
For more information regarding the bond proceeds, refer to the link:
https://brainly.com/question/13407939
Assume that Saudi Arabia has production possibilities to produce either 100 barrels of oil using 100 worker hours or 25 bushels of corn using 100 worker hours. If it decides to produce 60 barrels of oil, how many bushels of corn can it produce
Answer: 10 bushels
Explanation:
If they produce 100 barrels of oil using 100 worker hours, it means that the number of work hours taken for 1 barrel is:
= 100 / 100
= 1 work hour
For bushels however, 1 worker hour produces:
= 25 / 100
= 0.25 bushels of corn
If 60 barrels of oil are produced, it means 60 worker hours were used which would leave 40 worker hours.
Bushels of corn produced is therefore:
= 40 * 0.25
= 10 bushels
A firm currently has a 43 day cash cycle. Assume that the firm changes its operations such that it increases its receivables period by 2 days, decreases its inventory period by 1 day and increases its payables period by 3 days. What will the length of the cash cycle be after these changes
Answer:
41 days
Explanation:
Calculation to determine What will the length of the cash cycle be after these changes
Using this formula
Cash cycle Length=Cash cycle+Increases in receivables period -Decreases in inventory period -Increases in payables period
Let plug in the formula
Cash cycle Length = 43 days+2 days -1 days - 3 days
Cash cycle Length= 41 day
Therefore What will the length of the cash cycle be after these changes is 41 days
Using the following selected items from the comparative balance sheet of Kato Company, illustrate horizontal and vertical analysis.
HORIZONTAL VERTICAL
ANALYSIS ANALYSIS
December 31, December 31, 2019 December 31, 2020 December 31, 2019
2020
Accounts
Receivable $720,000 $630,000
Inventory 450,000 360,000
Answer:
Kato Company
a. Vertical Analysis:
December 31, 2020 % December 31, 2019 %
Accounts
Receivable $720,000 61.5% $630,000 63.6%
Inventory 450,000 38.5% 360,000 36.4%
Total current assets $1,170,000 100% $990,000 100%
b. Horizontal Analysis:
December 31, 2020 Change December 31, 2019
Accounts
Receivable $720,000 +14.3% $630,000
Inventory 450,000 +25% 360,000
Total current assets $1,170,000 +18.2% $990,000
Explanation:
a) Data and Calculations:
December 31, 2020 December 31, 2019
Accounts
Receivable $720,000 $630,000
Inventory 450,000 360,000
Total current assets $1,170,000 $990,000
December 31, 2020 % December 31, 2019 %
Accounts
Receivable $720,000 61.5%(720/1,170) $630,000 63.6% (630/990)
Inventory 450,000 38.5% (450/1,170) 360,000 36.4%(360/990)
Total current assets $1,170,000 100% (1,170/1,170) $990,000 100% (990/990)
December 31, 2020 Change December 31, 2019
Accounts
Receivable $720,000 +14.3% (720-630)/630 $630,000
Inventory 450,000 +25% (450-360)/360 360,000
Total current assets $1,170,000 +18.2% (1,170-990)/990 $990,000
b) The vertical analysis of Kato's balance sheet items focuses on the relationships between the line items in a single reporting period, while horizontal analysis focuses on multiple reporting periods, reporting on the changes between the accounting periods.
Castille Corp. purchases, for $600,000, land upon which a building and a dilapidated shed are situated. Castille plans to use the building as-is for operations but immediately razes the shed at a cost of $5,000 minus scrap recovery of $1,000. A recent tax appraisal of the property allocated $100,000 to the land and $400,000 to the building. In the entry to record the acquisition of the property, at what amount will Castille debit Land
Answer:
$120,800
Explanation:
Give that;
Cost of land = $600,000
Associated expenses :
Razing down the shed = $5,000
Income from scrap = $1,000
Total expenses = $4,000
The total cost of the land would be;
Total cost of land = Cost of land + Total expense
= $600,000 + $4,000
= $604,000
Tax allocation: land and building = $500,000
Land allocation will now be
= 100,000/500,000 × $604,000
= 0.2 × $604,000
= $120,800
Sheryl Hansen started a business on May 1, 20--. Analyze the following transactions for the first month of business using T accounts. Label each T account with the title of the account affected and then place the transaction letter and the dollar amount on the debit or credit side.
a. Invested cash in the business, $3,100.
b. Bought equipment for cash, $500.
c. Bought equipment on account, $800.
d. Paid cash on account for equipment purchased in transaction (c), $300.
e. Withdrew cash for personal use, $700.
Answer:
Sheryl Hansen
T- Accounts
Cash
Account Titles Debit Credit
a. Sheryl Hasen, Capital $3,100
b. Equipment $500
d. Accounts Payable 300
e. Sheryl Hasen, Drawings 700
Sheryl Hasen, Capital
Account Titles Debit Credit
a. Cash $3,100
Equipment
Account Titles Debit Credit
b. Cash $500
c. Accounts Payable 800
Accounts Payable
Account Titles Debit Credit
c. Equipment $800
d. Cash $300
Sheryl Hasen, Drawings
Account Titles Debit Credit
e. Cash $700
Explanation:
a) Data and Analysis:
a. Cash $3,100 Sheryl Hasen, Capital $3,100
b. Equipment $500 Cash $500
c. Equipment $800 Accounts Payable $800
d. Accounts Payable $300 Cash $300
e. Sheryl Hasen, Drawings $700 Cash $700
A store has the following demand figures for the last four years: Year Demand 1 100 2 150 3 112 4 200 Given a demand forecast for year 2 of 100, a trend forecast for year 2 of 10, an alpha of 0.3, and a beta of 0.2, what is the demand forecast for year 3 using the double exponential smoothing method
Answer:
125
Explanation:
Calculation to determine the demand forecast for year 3 using the double exponential smoothing method
Smoothed forecast for year 3 = (0.3 ×150) + (0.7 ×100) + 10
Smoothed forecast for year 3 = 45+70+10
Smoothed forecast for year 3 =125
Therefore the demand forecast for year 3 using the double exponential smoothing method will be 125
The Chewbacca Starship Company had the following transactions during the month of December:
a. purchased inventory on account for $230,000 (assume Chewbacca uses a perpetual inventory system)
b. paid $57,000 in salaries to employees for work performed during the month
c. sold merchandise that cost $154,000 to credit customers for $285,000
d. collected $265,000 in cash from credit customers
e. paid suppliers of inventory $210,000.
Required:
Post the above transactions to the T-accounts. Assume that the opening balances in each of the accounts is zero except for cash, accounts receivable, and accounts payable that had opening balances of $73,500, $60,000, and $39,000, respectively.
Answer:
The Chewbacca Starship Company
T-accounts:
Cash
Date Account Titles Debit Credit
Dec. 1 Beginning balance $73,500
Dec. 31 Salaries expense $57,000
Dec. 31 Accounts receivable 265,000
Dec. 31 Accounts payable 210,000
Accounts receivable
Date Account Titles Debit Credit
Dec. 1 Beginning balance $60,000
Dec. 31 Sales revenue 154,000
Dec. 31 Cash $265,000
Accounts payable
Date Account Titles Debit Credit
Dec. 1 Beginning balance $39,000
Dec. 31 Inventory 230,000
Dec. 31 Cash $210,000
Inventory
Date Account Titles Debit Credit
Dec. 31 Accounts payable $230,000
Sales revenue
Date Account Titles Debit Credit
Dec. 31 Accounts receivable $154,000
Salaries Expense
Date Account Titles Debit Credit
Dec. 31 Cash $57,000
Explanation:
a) Data and Analysis:
a. Inventory $230,000 Accounts payable $230,000
b. Salaries expense $57,000 Cash $57,000
c. Accounts receivable $154,000 Sales revenue $154,000
d. Cash $365,000 Accounts receivable $265,000
e. Accounts payable $210,000 Cash $210,000
Opening balances:
Cash $73,500
Accounts receivable $60,000
Accounts payable $39,000