Homework Answers
1. Gross profit = (Sales - Cost of goods sold) / Sales *100
= (143,000 - 40,000) / 143,000 * 100 = 72%
2. The company's profitability is calculated by deducting all the expenses incurred by the company from the sales revenue for the year. ie: Net profit = Sales - cost of goods sold - salaries expense - Insurance expense - Depreciation expense
Net profit = 143,000 - 40,000 - 52,000 - 3,000 - 12,000 = 36,000
3. For a small sized company the business seems to be in a good shape, because it has been profitable since the prior years which can be seen from the retained earnings of the company. The company has generated a net profit of 36,000 which seems to be good profit for the business and it is paying dividends to the shareholders. Also the business has enough cash and profits to meet the immediate liabilities in the near future.
4. Yes, the business is incorporated. Incorporation is a legal process used to form a corporate entity or company. It means, that the resulting company formed would have its own assets and liabilities which is separate from its owners. This is evidenced from this scenario by looking at common stock. Common stock is a form of corporate equity ownership. The business has a common stock which means that the shares are owned by one or more shareholders, which means the company is incorporated.
5. Yes, the company has been in business for more than one year. The Accounts have Retained earnings as at 1/1/19, which generally means the Company has been earning profits for more than a year. These profits are accumulated in the retained earnings year on year.
Add Answer to:
The following items are taken from the financial statements of Hannah Co. for the year ending...
23. The following items are taken from the financial statements of the Postal Service for the...
23. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2020: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/21 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/20) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense...
24. The following items are taken from the financial statements of the Postal Service for the...
24. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2020: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/21 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/20) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense...
23. The following items are taken from the financial statements of the Postal Service for the...
23. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2020: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/21 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/20) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense...
24. The following items are taken from the financial statements of the Postal Service for the...
24. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2020: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/21 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/20) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense...
Question 1 (20%) The following items are taken from the financial statements of Trump Company for...
Question 1 (20%) The following items are taken from the financial statements of Trump Company for 2017 Accounts payable Accounts receivable Accumulated depreciation-equipment Advertising expense Cash Common stock Depreciation expense Dividends Equipment Insurance expense Notes payable (due 2020) Prepaid insurance Rent expense Retained earnings (beginning) Salaries and wages expense Salaries and wages payable Service revenue Supplies Supplies expense $ 10,000 11,000 38,000 21,000 14,000 90,000 12,000 15,000 210,000 3,000 70,000 6,000 17,000 12,000 34,000 3,000 130,000 4,000 6,000 Instructions: (a)...
the following items are taken from the 2021 financial records.. prepare an income statement (in good...
the
following items are taken from the 2021 financial records.. prepare
an income statement (in good form).
The following items and amounts are taken from the 2021 financial records of Labrador Co.: Labrador Co. Income Statement For the Year Ended December 31, 2021 Supplies expense........ Equipment Salaries expense...... Utilities expense. Dividends Accounts payable..... Accounts receivable.... $32,000 Salaries payable... 72,000 Common stock. 150,000 Cash....... 8,200 Retained earnings, Jan. 1, 2021... 1,000 Insurance expense 6,000 Repair expense 26,800 Service revenue $5,000 50,000...
1. (12 pts) The following data were taken from the adjusted trial balance of Star Search...
1. (12 pts) The following data were taken from the adjusted trial balance of Star Search Video Company. Star Search Video Company Adjusted Trial Balance Data December 31, 20D Accounts Payable Accounts Receivable Accumulated Depreciation-Building Accumulated Depreciation-Furniture & Fixtures Building Capital Stock Cash Copyrights Dividends Declared Furniture & Fixtures Land Note Payable (10%, duc in 5 years) Office Supplies Prepaid Insurance Retained Earnings (January 1, 20D) Salaries Payable Service Revenue Salaries Expense Utilities Expense Depreciation Expense Insurance Expense Office Supplies...
CULLUMBER COMPANY Income Statement $ $ $ These items are taken from the financial statements of...
CULLUMBER COMPANY Income Statement $ $ $ These items are taken from the financial statements of Cullumber Company for 2022. Retained earnings (beginning of year) Utilities expense Equipment Accounts payable Cash Salaries and wages payable Common stock Dividends Supplies Debt investment (long-term) Trademarks Service revenue Prepaid insurance Maintenance and repairs expense Depreciation expense Accounts receivable Insurance expense Salaries and wages expense Accumulated depreciation equipment $32,850 2,180 65,300 17,650 14,980 5,600 22,400 12,000 3,400 5,200 1,800 72,680 6,130 1,600 3,200 13,600...
The following items are taken from the financial statements of the Pronghorn Service for the year...
The following items are taken
from the financial statements of the Pronghorn Service for the year
ending December 31, 2018: Accounts payable $ 17700 Accounts
receivable 11000 Accumulated depreciation – equipment 27900
Advertising expense 21400 Cash 14900 Common stock 41400 Dividends
14100 Depreciation expense 12300 Insurance expense 3100 Note
payable, due 6/30/19 70200 Prepaid insurance (12-month policy) 6200
Rent expense 17000 Retained earnings (1/1/18) 60550 Salaries and
wages expense 32700 Service revenue 134200 Supplies 3900 Supplies
expense 6100 Equipment 209250...
the following items were taken from the financial statements of Pronghorn Company for the year ending...
the following items were taken from the financial statements of Pronghorn Company for the year ending December 31,2022 Accounts Payable:$18,000 Accounts Recievable:$7,000 Accumulated depreciation- Equipment:$5,200 Bonds Payable:$17,000 Cash: 24,000 Common Stock: $26,900 Cost of Goods sold:$28,500 Depreciation Expense:$5,700 Dividends:$5,000 Equipment:$ 40,000 Interest Expense:$2,500 Patents:$10,565 Retained Earnings January 1,2022: $10,925 Salaries and wages expense: 6,100 Sales Revenue$53,100 Supplies:$1,760 prepare and income statement.. part 1. this question is in 3 parts.
23. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2020: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/21 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/20) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense...
24. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2020: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/21 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/20) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense...
23. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2020: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/21 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/20) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense...
24. The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2020: Accounts payable $ 18,000 Accounts receivable 11,000 Accumulated depreciation - equipment 28,000 Advertising expense 21,000 Cash 15,000 Common stock 42,000 Dividends 14,000 Depreciation expense 12,000 Equipment 210,000 Insurance expense 3,000 Note payable, due 6/30/21 70,000 Prepaid insurance (12-month policy) 6,000 Rent expense 17,000 Retained earnings (1/1/20) 60,000 Salaries and wages expense 32,000 Service revenue 133,000 Supplies 4,000 Supplies expense...
Question 1 (20%) The following items are taken from the financial statements of Trump Company for 2017 Accounts payable Accounts receivable Accumulated depreciation-equipment Advertising expense Cash Common stock Depreciation expense Dividends Equipment Insurance expense Notes payable (due 2020) Prepaid insurance Rent expense Retained earnings (beginning) Salaries and wages expense Salaries and wages payable Service revenue Supplies Supplies expense $ 10,000 11,000 38,000 21,000 14,000 90,000 12,000 15,000 210,000 3,000 70,000 6,000 17,000 12,000 34,000 3,000 130,000 4,000 6,000 Instructions: (a)...
the
following items are taken from the 2021 financial records.. prepare
an income statement (in good form).
The following items and amounts are taken from the 2021 financial records of Labrador Co.: Labrador Co. Income Statement For the Year Ended December 31, 2021 Supplies expense........ Equipment Salaries expense...... Utilities expense. Dividends Accounts payable..... Accounts receivable.... $32,000 Salaries payable... 72,000 Common stock. 150,000 Cash....... 8,200 Retained earnings, Jan. 1, 2021... 1,000 Insurance expense 6,000 Repair expense 26,800 Service revenue $5,000 50,000...
1. (12 pts) The following data were taken from the adjusted trial balance of Star Search Video Company. Star Search Video Company Adjusted Trial Balance Data December 31, 20D Accounts Payable Accounts Receivable Accumulated Depreciation-Building Accumulated Depreciation-Furniture & Fixtures Building Capital Stock Cash Copyrights Dividends Declared Furniture & Fixtures Land Note Payable (10%, duc in 5 years) Office Supplies Prepaid Insurance Retained Earnings (January 1, 20D) Salaries Payable Service Revenue Salaries Expense Utilities Expense Depreciation Expense Insurance Expense Office Supplies...
CULLUMBER COMPANY Income Statement $ $ $ These items are taken from the financial statements of Cullumber Company for 2022. Retained earnings (beginning of year) Utilities expense Equipment Accounts payable Cash Salaries and wages payable Common stock Dividends Supplies Debt investment (long-term) Trademarks Service revenue Prepaid insurance Maintenance and repairs expense Depreciation expense Accounts receivable Insurance expense Salaries and wages expense Accumulated depreciation equipment $32,850 2,180 65,300 17,650 14,980 5,600 22,400 12,000 3,400 5,200 1,800 72,680 6,130 1,600 3,200 13,600...
The following items are taken
from the financial statements of the Pronghorn Service for the year
ending December 31, 2018: Accounts payable $ 17700 Accounts
receivable 11000 Accumulated depreciation – equipment 27900
Advertising expense 21400 Cash 14900 Common stock 41400 Dividends
14100 Depreciation expense 12300 Insurance expense 3100 Note
payable, due 6/30/19 70200 Prepaid insurance (12-month policy) 6200
Rent expense 17000 Retained earnings (1/1/18) 60550 Salaries and
wages expense 32700 Service revenue 134200 Supplies 3900 Supplies
expense 6100 Equipment 209250...
Most questions answered within 3 hours.
-
Items Values
Indirect Business taxes and subsidies 416.2
Corporate Profit 1,239.5
Personal tax Rate ...
asked 6 minutes ago -
Can you help with is econ question?
If the MPS is equal to 0.20, then an...
asked 11 minutes ago -
Make a 10-minute presentation and argument to the rest of the class
in support of an...
asked 13 minutes ago -
Calculate ΔGrxn for the dissociation
of N2O4 at 25°C with
P(N2O4) = 0.150 bar and P(NO2)...
asked 15 minutes ago -
Q1-A rotation platform's angular acceleration is
0.681rad/s2. In unit of degree/s2 , what is
the angular...
asked 30 minutes ago -
13. a. What is/are the function(s) of SDS (sodium dodecyl
phosphate) when preparing protein samples for...
asked 44 minutes ago -
a write down of inventory due to obsolescence reduces the amount
in the inventory account and...
asked 42 minutes ago -
If 5.23 g of CuNO3 is
dissolved in water to make a 0.800 M solution, what
is the volume of the solution in milliliters?
volume
asked 44 minutes ago -
At a major International Airport, 0.37 of the flights arrive on
time. A sample of 12...
asked 54 minutes ago -
The most abundant isotope of uranium is 238U. All naturally
occurring fluorine is 19F. What is...
asked 52 minutes ago -
AgNO3(aq) + NH4Cl(aq) → AgCl(s) +
NH4NO3(aq)
The concentration of NH4Cl is 0.263 M at the...
asked 58 minutes ago -
What vitamin acts as a coenzyme in cell respiration and is
important in alcohol fermentation?
A....
asked 59 minutes ago