The difference between sales revenue and cost of good sold is referred to as
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Company A had the following events during 2021: 1) Purchase…
Company A had the following events during 2021: 1) Purchased a new piece of equipment for $20,000 2) Issued stock for $12,000 3) Borrowed $6,000 from a local bank 4) Sold an old machine for $2,000 (there was no gain or loss on the sale) 5) Repaid an old loan of $2,000 What is the cash flow from investing activities as a result of these events?
If you needed $5,000 in 5 years and the annual interest rate…
If you needed $5,000 in 5 years and the annual interest rate was 8%, how much would you have to invest today to have the $5,000 in 5 years? (assume interest is compounded annually and round your answer to the nearest dollar)?
Company A borrows $100,000 from Company Z on July 1, 2021. …
Company A borrows $100,000 from Company Z on July 1, 2021. The loan is a 1 year loan with repayment due on June 30, 2022. The annual interest rate for the loan is 12%. Assuming the appropriate adjusting entry was made by Company A on December 31, 2021 to record the interest expense for the first 6 months of the loan, what is the entry that Company A makes on June 30, 2022 to reflect the payment to Company Z when the loan becomes due (assume no other entries have been made in 2022)?
A company had the following sequential transactions during t…
A company had the following sequential transactions during the year : 1) Issued 1,000 shares of $2 par value stock for $12 per share. 2) Repurchased 100 shares of stock at $10 per share. 3) Paid dividends of $1 per share. 4) Had $1,500 in net income. What is the balance in retained earnings at the end of the year?
A company issues a bond when the market interest rate is les…
A company issues a bond when the market interest rate is less than the stated interest rate on the bond. What is the entry for such an issuance?
A company purchases a new forklift on January 1, 2022 and pa…
A company purchases a new forklift on January 1, 2022 and pays cash. The cost of the forklift is $46,000. The company expects that they will use the forklift for 6 years and that at the end of 6 years, the forklift will have a salvage value of $16,000. After two years, the company sells the forklift for $37,000. Assuming the company utilizes the straight line method for depreciation, what is the gain/(loss) on the sale of the forklift?
A company uses the percent of sales method to determine its…
A company uses the percent of sales method to determine its bad debts expense. At the end of the current year, the company’s unadjusted trial balance reported the following selected amounts: Accounts receivable $375,000 debit Allowance for uncollectible accounts 500 debit Net Sales 800,000 credit All sales are made on credit. Based on past experience, the company estimates that 0.6% of net credit sales are uncollectible. What amount should be debited to Bad Debts Expense when the year-end adjusting entry is prepared?
A company had the following purchases and sales during its f…
A company had the following purchases and sales during its first month of operations: January 1 Purchased 10 units at $4.00 per unit January 9 Sold 6 units at $12.00 per unit January 17 Purchased 8 units at $5.50 per unit January 27 Sold 7 units at $12.00 per unit Using the Perpetual weighted average method, what is the value of cost of goods sold? (Round weighted average costs per unit to 2 decimal places.)
If a company begins a month with $4,000 in cash, has sales o…
If a company begins a month with $4,000 in cash, has sales of $6,000, two-thirds of which are credit sales, and incurs $3,000 of expenses, one third of which are paid for with cash, what is the net income for the month?