Question
In: Accounting
Accounts payable $18,500 Accounts receivable 8,000 Accumulated depreciation-equipment 4,800 Bonds payable 18,000 Cash 24,000 Common stock...
Accounts payable $18,500
Accounts receivable 8,000
Accumulated depreciation-equipment 4,800
Bonds payable 18,000
Cash 24,000
Common stock 25,000
Cost of goods sold 27,000
Depreciation expense 4,800
Dividends 5,300
Equipment 44,000
Interest expense 2,500
Patents 7,500
Retained earnings, January 1 16,000
Salaries and wages expense 5,200
Sales revenue 50,500
Supplies 4,500
Determine the profitability ratio that tells us for every dollars of sales revenue how much operating profit the firm has generated.And solve for the ratio.
Solutions
Expert Solution
The First Step is to Segregation of Balance Sheet Items, Profit and Loss A/c Items and After Profit Appropriations :
Balance Sheet Items :
1. Accounts Payable $18,500
2. Accounts Receivable $8,000
3. Accumulated Depreciation- Equipment $4,800
4. Bonds Payable $18,000
5. Cash $24,000
6. Common Stock $25,000
7. Equipment $44,000
8.Patents $7,500
9. Retained Earnings $16,000
After Profit Appropriations :
10. Dividends $5,300
Profit and Loass A/c Items :
11. Cost of Goods Sold $27,000
12. Depreciation $4,800
13. Interrest Expense $2,500
14. Salaries and Wages $5,200
15 Supplies $4,500
16. Sales Revenue $50,500
Determination of Profitability Ratio :
| Partuculars | Amount in $ |
| Sales Revenue | 50,500 |
| Less : Cost of Goods Sold | 27,000 |
| Interest Expense | 2,500 |
| Depreciation | 4,800 |
| Salaries and Wages | 5,200 |
| Supplies | 4,500 |
| Opering Profit | 6,500 |
Operating Profit Ratio = Operating Profit / Sales Revenue
= 6,500/ 50,500
= 12.87%
ekkarill92 answered 1 year agoRelated Solutions
Accounts payable 2,300 Accounts Receivable 1,500 Accumulated depreciation - Equipment 4,000 Cash 2,600 Common Stock 4,800...
Accounts payable
2,300
Accounts Receivable
1,500
Accumulated depreciation - Equipment
4,000
Cash
2,600
Common Stock
4,800
Equipment
7,500
Inventory
400
Land
10,000
Land held as long term investment
8,000
Notes payable (due in 5 Years)
6,000
Patent
2,500
Retained Earnings 1/1
16,000
Short- term investments
1,000
Wages Payable
400
Required: Calculate following amounts. Show all work.
Total Current Assets (in order of liquidity)
Total property, plant, and equipment
Total Assets
Total Current liabilities
Total Liabilities
Total Stockholders equity
Prove that...
accounts payable $10,600 accounts receivable $11,100 accumulated depreciation $24,000 advertising expense $19,600 cash $46,500 common stock...
accounts payable
$10,600
accounts receivable
$11,100
accumulated depreciation
$24,000
advertising expense
$19,600
cash
$46,500
common stock
$30,000
cost of goods sold
355,500
dividends
5,000
depreciation expense
9,000
equipment
175,000
income tax expense
19,875
income tax payable
-
insurance expense
4,500
interest expense
3,600
interest revenue
2,500
inventory
29,000
notes payable (due in 9 months)
15,000
prepaid insurance
3,625
rent expense
24,000
retained earnings (beg. bal)
91,000
salaries expense -gen/admin
20,000
salaries expense-selling
34,000
sales revenue
605,100
utilities expense
18,000
What...
Cash $6,500 Accumulated Depreciation—Equipment $1,400 Accounts Receivable 3,800 Accounts Payable 2,900 Inventory 1,700 * Common Stock...
Cash
$6,500
Accumulated Depreciation—Equipment
$1,400
Accounts Receivable
3,800
Accounts Payable
2,900
Inventory
1,700
*
Common Stock
22,000
Equipment
20,200
Retained Earnings
5,900
$32,200
$32,200
*(3,400 x $0.50)
The following transactions occurred during December.
Dec. 3
Purchased 4,500 units of inventory on account at a cost of
$0.70 per unit.
5
Sold 4,900 units of inventory on account for $0.92 per unit.
(Blue sold 3,400 of the $0.50 units and 1,500 of the $0.70.)
7
Granted the December 5 customer $276...
Rank in order of liquidity: Accounts Receivable Accumulated Depreciation - Equipment Cash Equipment Prepaid Insurance Prepaid...
Rank in order of liquidity:
Accounts Receivable
Accumulated Depreciation - Equipment
Cash
Equipment
Prepaid Insurance
Prepaid Rent
Rent Revenue
Supplies
Accounts payable $ 40,000 Accounts receivable 33,000 Accumulated depreciation—buildings 25,000 Ac
Accounts payable
$ 40,000
Accounts receivable
33,000
Accumulated depreciation—buildings
25,000
Accumulated depreciation—equipment
20,000
Advertising Expense
4,500
Bonds payable, due December 31, 2024
260,000
Buildings
180,000
Capital stock, $1 par value
220,000
Cash
92,120
Commission Expense
8,400
Cost of
Goods Sold
31,480
Depreciation Office
2,970
Equipment
75,500
Income
Tax Expense
7,150
Income taxes payable
3,860
Insurance Expense Sales Auto
3,200
Interest
Expense
1,550
Interest payable...
Account Balance Accounts Payable* $62,000 Accounts Receivable* $41,000 Accumulated Depreciation – PPE* $116,000 Accumulated Other Comprehensive...
Account
Balance
Accounts Payable*
$62,000
Accounts Receivable*
$41,000
Accumulated Depreciation – PPE*
$116,000
Accumulated Other Comprehensive Income
$17,000
Additional Paid in Capital
$159,000
Amortization Expense
$5,000
Cash and Cash Equivalents *
$79,000
Common Stock
$6,000
Cost of Goods Sold
$1,650,000
Depreciation Expense
$20,000
Dividends
$8,000
Gain on Sale of Discontinued Operations
$60,000
Gain on Sale of Held-To-Maturity Securities
$1,000
Goodwill*
$26,000
Impairment of Intangible Assets
$40,000
Interest Expense
$10,000
Interest Revenue
$2,000
Inventory*
$88,000
Long-Term Debt
$115,000
Long-Term Investments*
$18,000...
Prepare an adjusted Trial balance Accounts Payable- 88,851 Accounts receivable- 442,120 Accumulated depreciation: building- 1,265 Accumulated...
Prepare an adjusted Trial balance
Accounts Payable- 88,851
Accounts receivable- 442,120
Accumulated depreciation: building- 1,265
Accumulated depreciation: equipment- 9,900
Advertising Expense- 9,240
Allowance for doubtful accounts- 75,000
Allowance to Reduce Inventory to NRV- 16,000
Bad Debt Expense- 75,000
Bonds Payable- 700,000
Building- 37,500
Cash- 834,544
Common stock- 135,000
Depreciation Expense- 11,165
Dividends- 28,000
Equipment- 21,600
Impairment Loss Expense- 5,000
Income Taxes Expense- 99,000
Income taxes payable- 99,000
Insurance Expense- 22,500
Interest Expense- 31,171
Interest Payable- 35,000
Inventory- 70,000
Land- 88,000...
Debit Credit Cash 4,400 Accounts Receivable 2,000 Prepaid Insurance 1,600 Equipment 15,000 Accumulated Depreciation - Equipment...
Debit
Credit
Cash
4,400
Accounts Receivable
2,000
Prepaid Insurance
1,600
Equipment
15,000
Accumulated Depreciation - Equipment
3,000
Accounts Payable
2,400
Note Payable
3,920
Unearned Fees
3,200
Common Stock
5,000
Retained Earnings
2,700
Dividends
2,000
Fees Earned
37,000
Wages Expense
19,000
Depreciation Expense
1,800
Utilities Expense
320
Insurance Expense
700
Maintenance Expense
7,700
Income Tax Expense
2,700
57,220
57,220
Use the Adjusted Trial above to calculate the Net Income (or Net
Loss), and the Retained Earnings balance.
Format: Enter...
Debit Credit Cash 4,400 Accounts Receivable 2,000 Prepaid Insurance 1,600 Equipment 15,000 Accumulated Depreciation - Equipment...
Debit
Credit
Cash
4,400
Accounts Receivable
2,000
Prepaid Insurance
1,600
Equipment
15,000
Accumulated Depreciation - Equipment
3,000
Accounts Payable
2,400
Note Payable
3,920
Unearned Fees
3,200
Common Stock
5,000
Retained Earnings
2,700
Dividends
2,000
Fees Earned
37,000
Wages Expense
19,000
Depreciation Expense
1,800
Utilities Expense
320
Insurance Expense
700
Maintenance Expense
7,700
Income Tax Expense
2,700
57,220
57,220
Use the Adjusted Trial above to calculate the Net Income (or Net
Loss), and the Retained Earnings balance.
Prepare the Adjusted Trial Balance Accounts Payable – 65,340 Accounts Receivable – 190,300 Accumulated Depreciation (Building)...
Prepare the Adjusted Trial Balance
Accounts Payable – 65,340
Accounts Receivable – 190,300
Accumulated Depreciation (Building) – 5,400
Accumulated Depreciation (Equipment – 29,359
Accumulated other comprehensive income – 15,000
Additional Paid in Capital – Treasury Stock – 21,000
Advertising Expense – 8,400
Allowance for Doubtful Accounts – 25,000
Bad Debt Expense – 25,000
Bonds Interest Expense – 43,088
Bonds Payable - $1,600,000
Building – 150,000
Cash – 1,270,676
Common Stock – 101,000
Depreciation Expense – 33,759
Dividends – 41,000
Employee...
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