The following transactions apply to Jova Company for Year 1, the first year of operation: Issued $16,000 of common stock for cash. Recognized $64,000 of service revenue earned on account. Collected $57,200 from accounts receivable. Paid operating expenses of $36,200. Adjusted accounts to recognize uncollectible accounts expense. Jova uses the allowance method of accounting for uncollectible accounts and estimates that uncollectible accounts expense will be 2 percent of sales on account. The following transactions apply to Jova for Year 2: Recognized $71,500 of service revenue on account. Collected $65,200 from accounts receivable. Determined that $880 of the accounts receivable were uncollectible and wrote them off. Collected $100 of an account that had previously been written off. Paid $48,300 cash for operating expenses. Adjusted the accounts to recognize uncollectible accounts expense for Year 2. Jova estimates uncollectible accounts expense will be 1.0 percent of sales on account. Required Complete the following requirements for Year 1 and Year 2. Complete all requirements for Year 1 prior to beginning the requirements for Year 2. d-1. Prepare the income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Year 1.
In: Accounting
Colton Enterprises experienced the following events for Year 1, the first year of operation:
Acquired $53,000 cash from the issue of common stock.
Paid $13,800 cash in advance for rent. The payment was for the period April 1, Year 1, to March 31, Year 2.
Performed services for customers on account for $108,000.
Incurred operating expenses on account of $44,000.
Collected $82,500 cash from accounts receivable.
Paid $39,000 cash for salary expense.
Paid $35,200 cash as a partial payment on accounts payable.
Adjusting Entries
Made the adjusting entry for the expired rent. (See Event 2.)
Recorded $6,000 of accrued salaries at the end of Year 1.
Events for Year 2
Paid $6,000 cash for the salaries accrued at the end of the prior accounting period.
Performed services for cash of $57,000.
Purchased $4,600 of supplies on account.
Paid $15,900 cash in advance for rent. The payment was for one year beginning April 1, Year 2.
Performed services for customers on account for $124,000.
Incurred operating expenses on account of $59,500.
Collected $107,000 cash from accounts receivable.
Paid $57,000 cash as a partial payment on accounts payable.
Paid $33,300 cash for salary expense.
Paid a $15,000 cash dividend to stockholders.
Adjusting Entries
Made the adjusting entry for the expired rent. (Hint: Part of the rent was paid in Year 1.)
Recorded supplies expense. A physical count showed that $800 of supplies were still on hand.
Record the events and adjusting entries for Year 1 in general journal form.
Post the Year 1 events to T-accounts.
Prepare a trial balance for Year 1.
Prepare an income statement for Year 1.
Prepare a statement of changes in stockholders’ equity for Year 1.
Prepare a balance sheet for Year 1.
Prepare a statement of cash flows for Year 1
Prepare a post-closing trial balance for December 31, Year 1.
In: Accounting
A 2%, 3-year US Treasury is selling at 100.25 . The 5% , 3-year IBM is selling at 100.65. Both bonds pay interest semi-annually. The G-spread in basis points on the IBM bond is closest to
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a. 264 bps. |
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b. 285 bps. |
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c. 300 bps |
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d. 345 bps |
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e. 435 bps |
In: Finance
Suppose the zero rate for a 1-year investment is 0.062, the zero rate for a 2-year investment is 0.072, and the zero rate for a 3-year investment is 0.082 (all rates are continuously compounded). What is the forward rate for the 3rd year?
In: Finance
Find the annual deposit of equal amount needed in Year 2 through Year 5 (End of Year 2 through End of Year 5) to provide for annual withdrawals of $1,500 at the end of years 6, 7, 9 and 10 at an interest rate of 12% per year compounded yearly.
In: Economics
1. Fill in the blank. The real GDP for a given year values current year output at _____ year prices.
Group of answer choices
base
current
2. Which of the following values for the GDP deflator would imply that the price level is higher in the current year than in the base year?
90
110
100
3. Which of the following values for the GDP deflator would imply that the price level in the current year equals the price level in the base year?
90
110
100
In: Economics
Timothy quits his job which pays $86000 a year , to enroll in a 3 year graduate program. His annual school expenses are $64900 for tuition, $8500 for books, and $1300 for food.
1. What is his opportunity cost for attending the graduate program?
A motor vehicle assembly plant requires the use of both capital and labour. The Tesla manufacturing plant is considering increasing the numbers of workers to production.
1. Does Diminishing Return hold in this scenario? (YES/NO)
2. Explain answer
In: Economics
The probability that a 28-year-old male in the U.S. will die within one year is approximately 0.001395. If an insurance company sells a one-year, $10,000 life insurance policy to such a person for $255, what is the company's expectation? (Round your answer to the nearest dollar.)
In: Statistics and Probability
The probability that a 28-year-old male in the U.S. will die within one year is approximately 0.001395. If an insurance company sells a one-year, $30,000 life insurance policy to such a person for $195, what is the company's expectation? (Round your answer to the nearest dollar.).
In: Statistics and Probability
The probability that a 22-year-old female in the U.S. will die within one year is approximately 0.00044. If an insurance company sells a one-year, $25,000 life insurance policy to such a person for $155, what is the company's expectation? (Round your answer to the nearest dollar.)
In: Statistics and Probability