Answer:
Results are below.
Explanation:
First, we need to calculate the cost of goods sold:
COGS= beginning finished inventory + cost of goods purchased - ending finished inventory
COGS= 30,000 + 100,000 - 40,000
COGS= 90,000
Now, the number of skis sold:
Units sold= 150,000/750= 200 units
Traditional income statement:
Sales= 150,000
COGS= (90,000)
Gross profit= 60,000
Total selling expense= (50*200 + 20,000)= (30,000)
Total administrative expense= (10*200 + 20,000)= (22,000)
Net operating income= 8,000
Contribution format income statement:
Sales= 150,000
Total variable cost= (90,000 + 50*200 + 10*200)= (102,000)
Contribution margin= 48,000
Total fixed selling expense= (20,000)
Total fixed administrative expense= (20,000)
Net operating income= 8,000
1. Traditional income statement for the quarter ended March 31 is $8,000.
2. Contribution format income statement for the quarter ended March 31 is $8,000.
3. The contribution margin per unit is 240.
Income statement:1. Alpine House, Inc., Traditional Income Statement
Sales revenue $150,000
Cost of goods sold $90,000
($30,000 + $100,000 - $40,000)
Gross margin $60,000
Selling and administrative expenses:
Selling expenses $30,000
[(150,000/750×50)+$20,000)]
Administrative expenses $22,000
[(150,000/750×10)+$20,000)]
Total selling and administrative expenses $52,000
Net operating income $8,000
2. Alpine House, Inc., Contribution format Income Statement
Sales revenue $150,000
Variable expenses:
Cost of good sold sold $90,000
Selling expenses $10,000
Administrative expenses $2,000
Total variables expenses $102,000
Contribution margin $48,000
Fixed expenses:
Selling expenses $20,000
Administrative expenses $20,000
Total fixed cost $40,000
Net operating income $8,000
3. Selling price per unit 750
Variable cost per unit 510
(102,000/200)
Contribution margin per units 240
Inconclusion traditional income statement for the quarter ended March 31 is $8,000, contribution format income statement for the quarter ended March 31 is $8,000, and the contribution margin per unit is 240.
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In managerial leadership, which part is leadership?
a. understanding.
b. facilitating.
c. exhibiting.
d. influencing.
e. demonstrating.
Answer:
All of them but if I had to choose it would be D.
Explanation:
In managerial leadership, the leadership aspect encompasses are including "understanding, facilitating, exhibiting, influencing and demonstrating". The correct option is all.
Leadership involves having a deep comprehension of the organization's goals, challenges and the needs of its team members as understanding.
It requires the ability to empower and support employees to reach their full potential and fostering a collaborative and productive work environment as facilitating.
A great leader leads by example, displaying the values, ethics and behaviors expected of their team members as exhibiting.
Effective leadership involves inspiring and motivating, communication, leaders show commitment, competence and dedication to the organization's vision and mission as demonstrating.
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During the month of July, the company had the following activities: Issued 4,500 shares of common stock for $450,000 cash. Borrowed $38,500 cash from a local bank, payable in two years. Bought a building for $201,500; paid $53,500 in cash and signed a three-year note for the balance. Paid cash for equipment that cost $247,000. Purchased supplies for $10,600 on account. Prepare a classified balance sheet at July 31.
Answer:
classified balance sheet at July 31.
Assets
Non-Current Assets
Building $201,500
Equipment $247,000
Total Non-Current Assets $448,500
Current Assets
Supplies $10,600
Cash ($450,000 + $38,500 - $53,500 - $247,000) $188,000
Total Current Assets $198,600
Total Assets $647,100
Equity and Liabilities
Equity
Common Stock $450,000
Total Equity $450,000
Liabilities
Current Liabilities
Account Payable $10,600
Total Non Current Liabilities $10,600
Non-Current Liabilities
Note Payable ($38,500 + $148,000) $186,500
Total Non Current Liabilities $186,500
Total Liabilities $197,100
Total Equity and Liabilities $647,100
Explanation:
A Balance Sheet is a Financial Statement report that shows the Assets, Liability and Equity balances as at the end of the Reporting period.
On January 10 of the current year, Mary transfer to Green Corporation a machine purchased three years ago for $100,000. On the transfer date, the machine has a $60,000 adjusted basis and a $10,000 FMV. Mary receives all 100 shares of Green stock, worth $100,000, and a two-year Green note worth $10,000. Required:a. What are the amount and character of Mary's recognized gain or loss? b. What is Mary's basis in the stock and note? When does her holding period begin? c. What are the amount and character of Green's gain or loss? d. What is Green's basis in the machine? When does Green's holding period begin?
Answer:
First of all, I believe that their is a mistake on the question, since the FMV of the machine should be $100,000, not $10,000, or else it wouldn't make much sense.
a. What are the amount and character of Mary's recognized gain or loss?
ordinary income of $10,000
The two year note is considered boot and therefore, Mary must report it as ordinary income.
b. What is Mary's basis in the stock and note? When does her holding period begin?
Mary's basis in the stock is $60,000 (the basis of the machine), and $0 for the note (recognized as ordinary income). Her holding period began three years ago when the machine was purchased.
c. What are the amount and character of Green's gain or loss?
Under a carryover basis limit rule (for a section 351 exchange), Green Corporation's basis is reduced, but it not considered a loss or a gain. The basis of the exchanged stock must equal the carryover basis of the property given in exchange.
d. What is Green's basis in the machine? When does Green's holding period begin?
Same as Mary's, the basis is $60,000 and the holding period is 3 years. Since Mary owns 100% of Green Corporation as a result of the exchange, her basis and the corporation's basis will be the same.
Which type of worker would most likely be able to begin work after receiving a high school degree and completing an on-the-job apprenticeship? a miner a forester a conservationist a park worker
Answer:
I think it would be a park worker
Explanation:
Park workers don't use as much heavy equipment as miners
A worker would most likely be able to begin work after receiving a high school degree and completing an on-the-job apprenticeship is conservationist. Option C is correct.
What is Conservationist?A conservationist is a person who works to preserve wildlife, plants, or their natural environments. While some environmentalists teach students about environmental issues, others clean up seabirds after oil spills in the water. He might wish to become a conservationist if you are concerned about protecting the environment and wildlife.
A person active in conservation is one who works to safeguard wildlife, plants, and other natural resources as well as to stop the loss and waste of these resources.
Further a person who complete his education Biology A-Levels are essential, as well as at least one other subject. Furthermore, geography has its uses. A BSc in Biology, Environmental Science, or Zoology might be a suitable place to start after A-Levels before specializing during a Masters for post of conservationist.
Thus option C is correct.
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Write a Preliminary Investigation Report for the New Century Clinic (not Personal Trainer) case study in the book at the end of chapters 1 and 2. It should be similar to the one in the book written for the Software Case on page 96. Read the Software Case at the end of chapters 1, and 2. Chapter 2 lists the topics that should be included in the PI Report. I have attached a file of interviews with various personnel in the New Century Clinic. Try to come up with the costs like in the sample, even with the limited experience you have in this. This should be about one page long, just like in the sample. Use the same headings as in the sample. This is one report, not one for chapter one and one for chapter two
Answer:
I don't see the question all I see is your whole assignment directsions
Value chain activities include all of the following except:
A. Distribution.B. Supply-Chain Management.C. Operations.D. Management Information Systems.
Answer:
D. Management Information Systems.
Explanation:
Management information system may be defined as it is the system of information which is to be used for the purpose of making the decision, coordinating, controlling, analyzing and visualization of information in an organization.
Therefore the learning of the management information system includes person, technology and process in an organizational context.
While value chain may be defined as it the primary activity and support activity that add values to the customers.
Consumers' differing tastes are one reason why monopolistic:____.
a) firms encounter large barriers to entry.
b) competitors earn a positive economic profit in the long run.
c) competitors set price at MC.
d) competitors are similar to monopolists.
Answer:
d) competitors are similar to monopolists.
Explanation:
Monopolistic competition refers to a condition of the market in which it connects with various irms that are closely linked to each other but sell distinct products.
Also, there is free entry and exit in this market
In case when consumer taste and preferences are different so the monopolistic competitors are the same as the monopolist
hence, the correct option is d.
The first papers about servant leadership were written by ______.
a. Spears
b. Liden
c. Greenleaf
d. House
Answer:
c. Greenleaf
Explanation:
Servant leadership is a type of leadership in which the individual interact with each other it could be either management or fellows employees with a motive to accomplish an authority instead of power. Also it follows that organization structure which is decentralized
And, the first paper with respect to the servant leadership was wrote by Green leaf and the same is to be considered
Hence, the correct option is C.
_____refers to the quantity of a good or service that businesses are willing and able to provide.
a. Supply
b. Scarcity
c. Demand
d. Trade-off
Answer:
option a supply is the right answer
Why Uber in Istanbul is costlier than a cab
Uber enjoys a powerful advantage in Istanbul, since its drivers do not have to acquire extortionately expensive cab licences.
Which of the following is not a characteristic of a good economic model?a. Captures the full complexity of a phenomenon b. Able to make powerful predictions c. Flexible in design d. Simple to understand
Answer:
c. Flexible in design
Explanation:
An economic model is a simplified version of reality that allows us to understand and predict economic phenomena.
If economic models were flexible in design it would not make accurate predictions
Common arguments against corporate social responsibility argue that: Select one: a. CSR detracts from the fundamental economic role of businesses. b. CSR does not achieve a triple bottom line. c. there is no positive relationship between CSR and shareholder returns. d. there are no financial benefits of social or environmental initiatives.
Answer: CSR detracts from the fundamental economic role of businesses.
Explanation:
Corporate social responsibility simply refers to the responsibility of businesses to their environment. This maybe in the form of employment opportunities, scholarships, provision of infrastructure etc.
Common arguments against corporate social responsibility argue that CSR detracts from the fundamental economic role of businesses. Critics believe the main role of business is to make profit and CSR detracts from that.
enkins Company had the following information for the year: Direct materials used $ 301,100 Direct labor incurred (9,300 hours) $ 252,600 Actual manufacturing overhead incurred $ 420,000 Jenkins Company used a predetermined overhead rate using estimated overhead of $368,000 and 8,000 estimated direct labor hours. Assume the only inventory balance is an ending Finished Goods Inventory balance of $19,700. What was adjusted cost of goods sold
Answer:
The adjusted cost of goods sold is $86,710
Explanation:
The actual cost of production incurred = Direct materials used + Direct labor incurred + Actual manufacturing overhead incurred
= $301,100 + $252,600 + $420,000
= $973,100
Actual costs of goods sold = $973,100 - $19,700
= $953,400
Direct labor cost per hour = $252,600 / 9,300 hours
= $27.16 per hour
Estimated direct labor cost = $252,600 / 9,300 × 8,000
= $217,290
Total estimated cost of production = $301,100 + $217,290 + $368,000
= $886,390
Estimated cost of goods sold = $886,390 - $19,700
= $866,690
Therefore,
Adjusted cost of goods sold =
$953,400 - $866,690
= $86,710
You invested $4,500 in a project which gave you a return of 12.5% the 1st year. You were quite happy, but the 2nd year wasn't as good. You lost 3.3% that year. The 3rd year was better - you made 5.5% on this investment. What was your annual average rate of return over the three years
Answer:
4.9%
Explanation:
The computation of the annual average rate of return over the three years is shown below:
Given that
Positive return in 1st year is 12.5%
The Negative return in 2nd year is 3.3%
And, the positive return in 3rd year is 5.5%
So, the annual average rate of return is
= (12.5% - 3.3% + 5.5%) ÷ (3 years)
= 4.9%
Trey, Inc. reports a taxable loss of $140,000 for 2018. Its taxable incomes for the years 2015 through 2017 respectively were $25,000, $35,000, and $40,000. Trey has no temporary or permanent differences. Trey elects the carryback provision. Trey expects taxable income in future years and has a tax rate of 30% for all periods affected. What should Trey report as Net Loss on its 2018 income statement?
Answer:
$117500
Explanation:
Taxable loss = $140000 for 2018
Taxable incomes : $25000 for 2015, $35000 for 2016, $40000 for 2017
tax rate = 30%
Net loss on 2018 income statement can be offset by the taxes paid on taxable income for 2 years prior to 2018 ( i.e 2016 and 2017 )
first calculate taxes on taxable incomes for 2016 and 2017
$35000 * 30% = $10500
$40000 * 30% = $12000
hence taxable profit = 10500 + 12000 = $22500
Net loss to be reported on 2018 income statement
= $140000 - $22500 = $117500
gdaniel is working in a job that pays $18,000 per year. He is considering a one-year automobile mechanics course that costs $1,000 for books and tuition. He would stop working for a year while he attends this course. Daniel estimates that this course will increase his income to $23,000 in each of the three years following completion of the course. At the end of those three years, Daniel plans to retire to a commune in Tucson, AZ. The current interest rate is 10 percent. Is it economically rational for Daniel to enroll in the course? Explain and justify your answer.
Answer:
It is not economically rational for Daniel to enroll in the course
Explanation:
Increase in income = $23,000 - $18,000 = $5,000
i = 10% = 0.1
NPV = -(18,000 + 1,000) + 5,000/(1.1)^1 + 5,000/(1.1)^2 + 5,000/(1.1)^3
NPV = -17,000 + (4545.45 + 4132.22 + 3756.74)
NPV = -17,000 + 12,434.41
NPV = -4,565.59
Conclusion: Since NPV is Negative. Therefore, it is not economically rational. So the answer is NO.
Fred wants to take out a loan. He can afford to make monthly payments of 100 dollars and wants to pay the loan off after exactly 20 years. What is the maximum amount that Fred can afford to borrow if the bank charges interest at an annual rate of 10 percent, compounded monthly
Answer:
$10,390.96
Explanation:
The formula for the principal amount is
P = A (1 - (1-r)^n / r)
From the given data, A = 100
r = 10 / 100 * 12 = 10 / 1200 = 0.0083
n= 20 * 12 = 240
Now substitute this data in the formula
P = 100 ( 1 - (1 + 0.0083)^-240 / 0.0083)
P = 100 ( 1 - (1/7.27016) / 0.0083)
P = 100 ( 1 - 0.13755 / 0.0083)
P = 100 ( 0.86245 / 0.0083)
P = 100 * 103.90964
P = $10,390.964
P = $10,390.96
The maximum amount that Fred can afford to borrow if the bank charges interest at an annual rate of 10 percent, compounded monthly is $10,390.96
Answer:
Fred can afford to borrow 10362 dollars
beyer company is considering the purchase of an asset for $250,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Assume that Beyer requires a 12% return on its investments. Compute the net present value of this investment. Should Beyer accept the investment
Answer:
Complete question is
Year Net cash flows
1 $65,000
2 $57,000
3 $81,000
4 $139,000
5 $38,000
6 $380,000"
Solution
Year (a)$ (b)$ (c=a*b)$
Year 1 65000 0.893 58045
Year 2 57000 0.797 45429
Year 3 81000 0.712 57672
Year 4 139000 0.636 88404
Year 5 38000 0.567 21546
$271,096
Totals
Total present value of cash inflow (a) $271,096
Total cash outflow (b) $250,000
Net Present Value (c=a-b) $21,096
Note:
A = Net Cash Flows
B = Present Value of 1 at 12%
C = Present Value of cash flows
b) Beyer company should accept investment due to positive net present value of $21,096
__________ can be used to create a perfect inflation hedge.
a. Gold
b. Real estate
c. TIPS
d. The S&P 500 Index
e. None of the options are correct.
Answer:
c. TIPS
Explanation:
TIPS which is an acronym for Treasury inflation-protected securities is a kind of bond peculiar to the United States which is specifically formulated to shield or safeguard investments during the inflation period over a given time. It dynamically adjusts as inflation occurs, thereby protects the direct cost of investment and its rates of returns.
Hence, in this situation, the correct answer is option C. TIPS
Yasmin Co. can further process Product B to produce Product C. Product B is currently selling for $34 per pound and costs $26 per pound to produce. Product C would sell for $57 per pound and would require an additional cost of $22 per pound to produce. What is the differential cost of producing Product C
Answer:
Differential cost of producing product C is $22
Explanation:
Total cost of product C = Cost of product B + Additional cost to produce C
= $26 + $22
= $48
Differential Cost = Total cost to produce C - Cost of producing B
= $48 - $26
= $22
Thus, the differential cost of producing product C is $22
Our newly constructed retail space is projected to need a face lift in 7 years to keep up with changing tastes. Our projections are that the cost will be $2.5 mil. If we set aside a reserve for replacement our best return prospects for a safe investment (i.e. little risk to principle) suggest a 3% annual interest rate. How much should we deposit annually into that reserve account (sinking fund problem)
Answer:
Annual deposit = $326,265.88
Explanation:
The amount to be set aside annually to accumulate $2.5 million in 7 years time ca n be worked out using the future value of an ordinary annuity formula.
The formula is given as follows:
FV = A×( (1+r)^n - 1)/r).
A= FV/ ((1+r)^n - 1)/r
FV - Future value
A- annual deposit
n- number of years
r- rate of return
FV - $2.5 million
A- ?
n- 7
A=2,500,000 ÷ (1.03^7 - 1)/0.03 = 326,265.88
Annual deposit = $326,265.88
ABC Inc has captured the market for school glue. It is preferred by both students and parents alike. It takes very little capitalization to enter the market but nobody successfully does. The glue clearly needs no patents or secret formulas. This type of market is called: pure or perfect competition. asymmetric oligopoly. competitive monopoly. None of the above described the appropriate market structure in this case
Answer:
None of the above described the appropriate market structure in this case
Explanation:
The market is an example of a monopolistic competition
A monopolistic competition is when there are many firms selling differentiated products in an industry. A monopoly has characteristics of both a monopoly and a perfect competition. the demand curve is downward sloping. it sets the price for its goods and services
A monopoly is when there is only one firm operating in an industry. there are usually high barriers to entry of firms. the demand curve is downward sloping. it sets the price for its goods and services.
A perfect competition is characterized by many buyers and sellers of homogenous goods and services. Market prices are set by the forces of demand and supply. There are no barriers to entry or exit of firms into the industry
An Oligopoly is when there are few large firms operating in an industry
Mike and Mary Jane Lee have a yearly income of $ and own a house worth $, two cars worth a total of and furniture worth $. The house has a mortgage of $ and the cars have outstanding loans of $ each. Utility bills, totaling $ for this month, have not been paid. Calculate the debt ratio for the Lee household.
Answer:
48.11%
Explanation:
Calculation for the debt ratio for the Lee household.
First step is to know the Total assets
ASSETS:
House Worth 79,352
Two Cars Worth 19,907
Furniture Worth 10,442
Total Assets =$132,449
Second step is to know the Liabilities
LIABILITIES:
Mortgage Due 58,347
Car Loan Balance 5134
(2,567 each×2)
Utility Bills 242
Total liabilities =63,723
Now let calculate for the Debt debt ratio for the Lee household using this formula
Debt debt ratio=Total liabilities/Total Assets
Let plug in the formula
Debt debt ratio=63,723 /132,449
Debt debt ratio = 0.4811×100
Debt debt ratio = 48.11%
Therefore for Debt debt ratio for the Lee household will be 48.11%
A manager receives a request from an employee to take off a Wednesday for religious reasons. The manager did not know that this employee was particularly religious and does not believe that the leave is for religious reasons. The manager believes that the employee is going to use this day as a personal day off. Should the manager investigate the situation?
Answer:
Yes
Explanation:
There is no federal law that requires that a manager give an employee days off due to religious reasons. Therefore in this scenario, the manager should investigate the situation further. If the manager finds out that the employee is taking advantage of the manager's generosity and lying then they should get reprimanded for doing so. Otherwise, the employee can have their day off as they asked.
People take permission to be off duty for different reasons. I do not want the manager to investigate the situation. It is a No for me because I believe that as Human being, we have to respect all the religion.
U.S. law clearly stipulated that that employers should not discriminate on the basis of religion and must accommodate for religious needs of the employees.Forcing employees not to use or take an off days for religious holidays is said to be not advisable.
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All the following will help you to identify suspicious sales of high-risk products in your inventory, EXCEPT FOR: A. Taking part in relevant training programs within your establishment. B. Becoming familiar with the traditional uses and sales patterns for high-risk products. C. Participating in partnership activities with law enforcement in your community. D. Identifying purchasers who have numerous questions about specific high-risk products.
Answer:
C. Participating in partnership activities with law enforcement in your community.
Explanation:
This is because, participation in partnership activities with law enforcement has no way of helping you to identify whether a product is a high-risk product or not. It could simply be a way of trying to sensitize the community on the need for something.
The following is a December 31, 2021, post-closing trial balance for Culver City Lighting, Inc. Account Title Debits Credits Cash $ 63,000 Accounts receivable 47,000 Inventory 53,000 Prepaid insurance 23,000 Equipment 110,000 Accumulated depreciation $ 42,000 Patent (net) 48,000 Accounts payable 16,000 Interest payable 6,000 Notes payable (due in 10 years) 140,000 Common stock 78,000 Retained earnings 62,000 Totals $ 344,000 $ 344,000 a. Calculate the current ratio. b. Calculate the acid-test ratio. c. Calculate the debt to equity ratio.
Answer:
a. Current ratio = 5.17
b. Acid test ratio = 3.06
c. Debt to equity ratio = 0.26
Explanation:
a. Current ratio = Current assets / Current liabilities
Current t assets = $63,000 + $47,000 + $53,000 + $23,000
= $186,000
Current liabilities = $16,000 + $6,000 + *$14,000
= $36,000
• Note $14,000 is gotten by ; $140,000 / 10 years.
Current ratio = $186,000 / $36,000
= 5.17
b. Acid test ratio = Quick assets / Current liabilities
Quick assets = Current assets w/o inventory
= $63,000 + $47,000
= $110,000
Current liabilities = $36,000
Acid test ratio = $110,000 / $36,000
= 3.06
c. Debt to equity ratio = Total liabilities / Shareholder's equity
Total liabilities = $36,000
Shareholder's equity = $78,000 + $62,000
= $140,000
Debt to equity ratio = $36,000 / $140,000
= 0.26
The responsiveness of the organization as a whole to stakeholder intelligence consists of the initiatives that the firm adopts to ensure that it abides by or exceeds stakeholder expectations and has a positive impact on _____________ issues.
Answer:
Serious
Explanation:
You own an oil pipeline which will generate $2 million cash return over the coming year. The pipeline’s operating costs are negligible, and it is expected to last for a very long time. Unfortunately, the volume of oil shipped is declining, and cash flows are expected to decline by 4 % per year. The discount rate is 10 %. What is the PV of the pipeline’s cash flows if its cash flows are assumed to last forever?
Answer:
$14,285,714.29
Explanation:
we can use the discounted cash flow model formula for a perpetuity:
PV of infinite cash flows = cash flow in 1 year / (required rate of return - growth rate)
cash flow in 1 year = $2,000,000required rate of return = 10%growth rate = -4%PV of infinite cash flows = $2,000,000 / (10% + 4%) = $14,285,714.29
This formula is used to determine the present value of a firm's future cash flows.
A security will make payments of $25 per month for the next 5 years, plus $1000 at maturity. Which of the following is true? Group of answer choices If the price increases from $1,500 to $1,600 then the period rate will be more than the nominal rate If the price increases from $1,500 to $1,600 then the yield to maturity will increase. If the price increases from $1,500 to $1,600 then the effective rate will increase If the price increases from $1,500 to $1,600 then the yield to maturity will decrease.
Answer: If the price increases from $1,500 to $1,600 then the yield to maturity will decrease.
Explanation:
If Yields in the market fell, Bonds would still be making the same coupon payments they always have been regardless of this fall. This will lead investors to buy more bonds which will have the effect of raising bond prices.
This therefore shows that Bond prices and Yields are inversely related. If one rises, the other falls. If the price of the security (bond) increases from $1,500 to $1,600 then it follows that the yield to maturity will decrease.
Borrowed $4,440 from a local bank on a note due in six months. Received $5,130 cash from investors and issued common stock to them. Purchased $1,500 in equipment, paying $450 cash and promising the rest on a note due in one year. Paid $550 cash for supplies. Bought and received $950 of supplies on account. Prepare a classified balance sheet for Spotlighter, Inc., as of January 31.
Answer:
Classified balance sheet for Spotlighter, Inc., as of January 31.
Assets
Non-Current Assets
Equipment $1,500
Total Non-current assets $1,500
Current Assets
Supplies $1,500
Cash $8,570
Total current assets $10,070
Total Assets $11,570
Equity and Liabilities
Equity
Common Stock $5,130
Total Equity $5,130
Liabilities
Accounts Payable $950
Note Payable $5,490
Total Liabilities $6,440
Total Equity and Liabilities $11,570
Explanation:
Step 1 :
First Record the Transactions as follows
J1
Cash $4,440 (debit)
Note Payable $4,440 (credit)
J2
Cash $5,130 (debit)
Common Stock $5,130 (credit)
J3
Equipment $1,500 (debit)
Cash $450 (credit)
Note Payable $1,050 (credit)
J4
Supplies $550 (debit)
Cash $550 (credit)
J5
Supplies $950 (debit)
Accounts Payable $950 (credit)
Step 2 :
Post the Account Balances to the Trial Balance as follows
Debit Credit
Cash ($4,440 + $5,130 - $450 - $550) $8,570
Note Payable ( $4,440 + $1,050) $5,490
Equipment $1,500
Supplies ($550 + $950) $1,500
Accounts Payable $950
Common Stock $5,130
Totals $11,570 $11,570
Step 3 :
After the Trial Balance has been prepared, Financial Statements can then be prepared using the list of Account Balances. Financial Statement include the Balance sheet that has been required for this question.
