Question Completion:
Prepare the corrected Trial Balance of Ricardo Company.
Answer:
RICARDO COMPANY
The corrected Trial Balance April 30, Year 2
Account Titles Debit Credit
Cash $ 72,920
Accounts receivable 34,800
Supplies 2,400
Prepaid insurance 4,200
Land 11,000
Accounts payable $10,780
Common stock 100,000
Retained earnings 29,640
Dividends 8,600
Service revenue 70,000
Rent expense 11,000
Salaries expense 31,900
Operating expense 33,600
Totals $ 210,420 $ 210,420
Explanation:
a) Data and Calculations:
RICARDO COMPANY
Trial Balance April 30, Year 2
Account Titles Debit Credit
Cash $ 71,900
Accounts receivable 36,000
Supplies 2,400
Prepaid insurance 4,200
Land $11,000
Accounts payable 10,200
Common stock 100,000
Retained earnings 29,640
Dividends 8,600
Service revenue 70,000
Rent expense 10,200
Salaries expense 32,700
Operating expense 33,600
Totals $ 199,600 $ 220,840
Cash Account:
Account Titles Debit Credit
Balance $ 71,900
Overstated service revenue 180
Accounts receivable 1,200
Balance $72,920
Totals $73,100 $73,100
Balance $72,920
Accounts Receivable
Account Titles Debit Credit
Balance $36,000
Cash $1,200
Balance $34,800
Totals $36,000 $36,000
Balance $34,800
Accounts Payable
Account Titles Debit Credit
Balance $10,200
Supplies 580
Balance $10,780
Totals $10,780 $10,780
Balance $10,780
Land
Account Titles Debit Credit
Balance $11,000
Correction of error $22,000
Balance $11,000
Totals $22,000 $22,000
Balance $11,000
Salaries Expense
Account Titles Debit Credit
Balance $32,700
Rent Expense $800
Balance $31,900
Totals $32,700 $32,700
Balance $31,900
Rent Expense
Account Titles Debit Credit
Balance $10,200
Salaries Expense 800
Balance $11,000
Totals $11,000 $11,000
Balance $11,000
Making a financial transaction based on information not available to other
investors is known as
A. Sarbanes-Oxley
B. fair disclosure
C. insider trading
D. selling or buying short
SUBMIT
Answer:c.....
Explanation:a p e x
Making a financial transaction based on information not available to other investors is known as insider trading. Thus the correct option is C.
What is a financial transaction?A financial transaction is an arrangement for the exchange of commodities or services between a buyer and a seller. The financial account keeps systematic track of all financial transactions and summarises them.
Insider trading is the act of workers dealing in the stock or other securities of a publicly traded firm while in possession of substantial, non-public information on the company.
Insider trading is the act of buying or selling a financial instrument based on the knowledge that is not typically available to investors. Sales are transactions in which a buyer exchanges goods and services with a seller in return for cash or credit.
Therefore, option C is appropriate.
Learn more about Insider trading, here:
https://brainly.com/question/14031275
#SPJ2
Recently, a group of university students decided to incorporate for the purposes of selling a process to recycle the waste product from manufacturing cheese. Some of the initial costs involved were legal fees and office expenses incurred in starting the business, state incorporation fees, and stamp taxes. One student wishes to charge these costs against revenue in the current period. Another wishes to defer these costs and amortize them in the future. Which student is correct
Answer:
The student wishing to defer these costs and amortize them in the future.
Explanation:
Indeed, according to standard regulatory requirements, all the initial costs associated with incorporating a business cannot be deducted all at once in the first year of operation.
However, these costs are spread over a long period of time. And one way to do this is to amortize them in the future. Therefore, the second student deferring cost is correct.
The following events apply to Montgomery Company for Year 1, its first year of operation: Received cash of $49,000 from the issue of common stock. Performed $68,000 of services on account. Incurred $10,500 of other operating expenses on account. Paid $41,000 cash for salaries expense. Collected $44,500 of accounts receivable. Paid a $5,000 dividend to the stockholders. Performed $11,500 of services for cash. Paid $7,500 of the accounts payable. Required a. Record the preceding transactions in general journal form. b. Post the entries to T-accounts and determine the ending balance in each account. c.
Answer:
Montgomery Company
a. Journal Entries
Account Title Debit Credit
Cash $49,000
Common stock $49,000
To record the issue of common stock for cash.
Accounts Receivable $68,000
Service Revenue $68,000
To record the performance of services on account.
Operating Expense $10,500
Accounts payable $10,500
To record operating expenses incurred on account.
Salaries Expense $41,000
Cash $41,000
To record the payment for salaries expense.
Cash $44,500
Accounts Receivable $44,500
To record cash collected on account.
Dividends $5,000
Cash $5,000
To record the payment of dividend to stockholders.
Cash $11,500
Service Revenue $11,500
To record the performance of services for cash.
Accounts payable $7,500
Cash $7,500
To record the payment on account.
b. T-accounts
Cash Account
Account Title Debit Credit
Common stock $49,000
Salaries expense $41,000
Accounts receivable 44,500
Dividends 5,000
Service revenue 11,500
Accounts payable 7,500
Balance 51,500
Totals $105,000 $105,000
Common Stock
Account Title Debit Credit
Cash $49,000
Accounts Receivable
Account Title Debit Credit
Service Revenue $68,000
Cash $44,500
Balance 23,500
Totals 68,000 68,000
Service Revenue
Account Title Debit Credit
Accounts receivable $68,000
Cash 11,500
Balance $79,500
Totals 79,500 79,500
Accounts Payable
Account Title Debit Credit
Operating Expense $10,500
Cash $7,500
Balance 3,000
Totals $10,500 $10,500
Operating Expense
Account Title Debit Credit
Accounts payable $10,500
Salaries Expense
Account Title Debit Credit
Cash $41,000
Dividends
Account Title Debit Credit
Cash $5,000
c. Trial Balance as of December 31, Year 1:
Account Title Debit Credit
Cash $51,500
Common stock $49,000
Accounts receivable 23,500
Service revenue 79,500
Accounts payable 3,000
Operating expense 10,500
Salaries expense 41,000
Dividends 5,000
Totals $131,500 $131,500
Explanation:
a) Transactions:
Received cash of $49,000 from the issue of common stock.
Performed $68,000 of services on account.
Incurred $10,500 of other operating expenses on account.
Paid $41,000 cash for salaries expense.
Collected $44,500 of accounts receivable.
Paid a $5,000 dividend to the stockholders.
Performed $11,500 of services for cash.
Paid $7,500 of the accounts payable.
b) Journal entries record the transactions for the first time. General ledger accounts are where the accounts are summarized. Trial balance shows the list of the account balances extracted from the general ledger.
The following is the information for the Brendan's Bread bakery company: Beginning raw materials inventory $ 53,200 Beginning work in process, inventory 78,400 Ending raw materials inventory 58,100 Ending work in process, inventory 98,000 Direct labor 149,800 Total factory overhead 105,000 Raw material purchases 210,000 Question: What is the value of Total Manufacturing Costs? Do not include a dollar sign or commas in your answer.
Answer:
$254,900
Explanation:
Total Manufacturing Costs include all costs involved in manufacturing a Product such as direct materials, direct labor and indirect costs or overheads incurred during the period of production.
Calculation of Total Manufacturing Cost
Raw Materials (53,200 +210,000 -58,100) $205,100
Direct Labor $149,800
Factory Overhead $105,000
Total Manufacturing Cost $254,900
Conclusion
Total Manufacturing Costs will be $254,900
Dawn, a sole proprietor, was engaged in a service business and reported her income on a cash basis. In 2018, she incorporated her business by transferring the assets of the business to a new corporation in return for all the stock in the corporation plus the corporation’s assumption of the liabilities of her proprietorship. All the receivables and the unpaid trade payables were transferred to the new corporation. The assets of the proprietorship had total basis of $125,000 and total fair market value of $300,000. The trade accounts payable assumed by the corporation totaled $35,000, and were for services rendered by third parties directly to customers of the business under Dawn’s supervision. The corporation also assumed a note payable to the bank, in the amount of $95,000. The note was issued for a loan used to purchase computers and other business equipment used in the business and transferred to the corporation.
a. Dawn has a taxable gain on the transfer of $5,000.
b. Dawn has a basis of $20,000 in the stock she receives.
c. Dawn has a basis of $10,000 in the stock she receives.
d. Dawn has a basis of $30,000 in the stock she receives.
e. Dawn has a basis of $235,000 in the stock she receives.
Answer:
d. Dawn has a basis of $30,000 in the stock she receives.
Explanation:
The computation is shown below:
= Total assets basis - total liabilities in terms of note payable
= $125,000 - $95,000
= $30,000
So Dawn has the basis of $30,000 in terms of the stock she received
Therefore the option d is correct
What is the present value of the following cash flow stream at a rate of 11.5% per year? Select the correct answer. a. $425.24 b. $419.54 c. $430.94 d. $442.34 e. $436.64
Answer:
the answer to the question would be E
According to the substitution effect of labor supply, when the wage rate goes up: Group of answer choices it becomes more costly to consume leisure, so people will work more. it becomes less costly to consume leisure, so people will work more. the opportunity cost of enjoying leisure goes down. firms will hire more workers since people are more willing to work.
According to the substitution effect of labor, firms would hire more workers because people are more willing to work more.
The substitution effect of labor tells us that as income is raised, people would be more willing to give up leisure hours to work more.
This is due to the fact that they would earn more money for the extra hours that they would have spent on leisure.
There would be more willingness to work and the firms would have more people to hire.
Read more on the substitution effect here:
https://brainly.com/question/1319399
The management of Ballard MicroBrew is considering the purchase of an automated bottling machine for $61,000. The machine would replace an old piece of equipment that costs $15,000 per year to operate. The new machine would cost $6,000 per year to operate. The old machine currently in use could be sold now for a salvage value of $20,000. The new machine would have a useful life of 10 years with no salvage value. Required: 1. What is the annual depreciation expense associated with the new bottling machine
Answer:
1. $6,100
2. $3,000
3.$41,000
4.7.3%
Explanation:
1. Calculation for What is the annual depreciation expense associated with the new bottling machine
Depreciation expense= 61,000/10
Depreciation expense=$6,100
2. Calculation for What is the annual incremental net operating income provided by the new bottling machine
Reduction in Operating costs 9,000 ($15,000-$6,000)
Less: Depreciation expense $6000
Incremental net operating income $3,000
3. Calculation for What is the amount of the initial investment
Purchase cost $61,000
Less: Salvage value of old machine $20,000
Initial Investment $41,000
4. Calculation for What is the simple rate of return on the new bottling machine
Incremental net operating income 3000
÷ Initial Investment 41000
Simple rate of return 7.3%
(3,000÷41,000)