The adjusted trial balance of Norton Company contained the following information. Assume the tax rate is 25%:
Debit Credit
Sales revenue $390,000
Sales returns and allowances $ 10,000
Sales discounts 5,000
Cost of goods sold 200,000
Operating expenses 110,000
Interest revenue 8,000
Interest expense 3,000
Compute Income before income tax
Compute the net income.
Compute the gross profit & rate(%)
Compute the net sales.
Compute income from Operations
In: Accounting
The AAA Aquarium Co. sells aquariums for $20 each. Fixed costs of production are $20. The total variable costs are $20 for one aquarium, $25 for two units, $35 for the three units, $50 for four units, and $80 for five units. Create a table showing total revenue, marginal revenue, total cost, and marginal cost for each output level (one to five units). What is the minimum level of output for AAA to produce and not lose money? What is the profit-maximizing level of output?
In: Economics
On April 1, 2018, JS Co. sold equipment to JL Co. Service in exchange for a zerointerest bearing note with a face value of €109,000, with payment due in 12 months. The cost of goods sold is € 58,000. The fair value of the equipment on the date of sale was €100,000.
A- Record the entry showing how much revenue should JS Co. record on April 1, 2018.
B- Record the entry showing how much revenue should it report related to this transaction on December 31, 2018.
In: Accounting
Shelly’s Shampoo ended October with inventory of $2,000. Shelly’s purchased $38,000 of inventory during November and had $6,000 of inventory on hand at the end of November. Complete the T account for Shelly’s Inventory. How much inventory did they sell during October? ___________________ If they sold that inventory for $50,000, how much revenue did they have? _______________What is their Gross Margin? _______________
Write the journal entry to record Shelly’s purchases:
Write the journal entry to record Shelly’s revenue:
Write the journal entry to record Shelly’s expense:
In: Accounting
Arreaga Corp had a 20 percent tax rate. Given the following pre-tax amounts, what would be the income tax expense reported on the face of the income statement?
Sales revenue $1,000,000
Cost of goods sold $600,000
Salaries and wages expense $80,000
Depreciation expense $110,000
Dividend revenue $90,000
Utilities expense $10,000
Discontinued operations loss (net of taxes) $100,000
Interest expense $20,000
Select one:
a. $16,000
b. $34,000
c. $36,000
d. $54,000
In: Accounting
The non-binding price floor is the minimum legal price at which a good can be sold ______ the equilibrium price and the non-binding price ceiling is the maximum legal price at which a good can be sold _____ the equilibrium price.
Below: Below
Above: Below
Above: Above
Below: Above
If demand is ________, total revenue stays the same regardless of change in price because total revenue reaches its __________.
Elastic: Maximum
Inelastic: Minimum
Unit-elastic: Maximum
Unit-elastic: Minimum
In: Economics
Adam Ltd. sells product at a price of $1,200,000, including a one-year warranty guarantee that the product was free of defects. The cost of the product is $960,000 and the estimated cost to provide warranty service is $10,000, based on Adam Ltd. past practice on the warranty service. In addition, Adam Ltd. sold extended warranties related to the products for an extra charge of $16,000.
Required:
Explain how should the revenue be recognized with reference to HKFRS 15 “Revenue from Contracts with Customers”? Journal entries are not required for the above transaction.
In: Accounting
1. Q* includes/excludes units whose cost (MC) is
greater than their revenue (P).
2. Why?
3. Q* includes/excludes units whose cost (MC) is less
than their revenue (P).
4. Why?
5. Does Q* guarantee a maximum profit, minimized loss,
to break-even or none/all of the above?
6. Why?
7. If profit is not possible, Q* certainly makes any
losses smaller than FC.- true/false?
8. Why?
In: Economics
On April 1, 2018, JS Co. sold equipment to JL Co. Service in exchange for a zero-interest bearing note with a face value of €109,000, with payment due in 12 months. The cost of goods sold is € 58,000. The fair value of the equipment on the date of sale was €100,000.
A- Record the entry showing how much revenue should JS Co. record on April 1, 2018.
B- Record the entry showing how much revenue should it report related to this transaction on December 31, 2018
In: Accounting
A. Compare and contrast the Balance Sheet of Colgate-Palmolive with the Balance Sheet of the City of Dallas Governmental-Type Funds for 2018
B. Compare and contrast the Income statement of Colgate-Palmolive with the City of Dallas Statements of Revenue, Expenditures and Changes in Fund Balances for 2018
Note: This is a descriptive financial analysis; no data analysis is required. This question requires us to compare and contrast a governmental fund balance sheet and Statements of revenue, expenditures and changes in fund balance with the business equivalents in the for-profit sector.
In: Accounting