On January 1, Merry Walker established a catering service. Listed below are accounts to use for transactions (a) through (f), each identified by a number. Following are the transactions that occurred in Walker's first month of operations. You need to indicate for each transaction the accounts that should be debited and credited by selecting the account number(s). 1. Cash
2. Accounts Receivable
3. Supplies
4. Prepaid Insurance
5. Equipment
6. Truck
7. Notes Payable
8. Accounts Payable
9. Merry Walker, Capital
10. Merry Walker, Drawing
11. Fees Earned
12. Wages Expense
13. Rent Expense
14. Utilities Expense
15. Truck Expense
16. Miscellaneous Expense
17. Insurance Expense
Answers
Answer:
a. Recorded jobs completed on account and sent Invoices to customers.
Account to be Debited ⇒ 2. Accounts Receivable
Account to be Credited ⇒ 11. Fees Earned
The fees are to be credited as it is revenue. The amount will be debited to Accounts receivables because the customers owe the company.
b. Received an invoice for truck expense to be paid in February.
Account to be Debited ⇒ 15. Truck Expense
Account to be Credited ⇒ 8. Accounts Payable
This is an expense so it is debited as expenses are debited when they increase. As it is to be paid in future, it is a liability and will be credited to Payables.
c. Paid utilities expense
Account to be Debited ⇒ 14. Utilities Expense
Account to be Credited ⇒ 1. Cash
As explained, this is an expense and will have to be debited. It was paid with cash which will reduce the cash balance so Cash should be credited.
d. Received cash from customers on account
Account to be Debited ⇒ 1. Cash
Account to be Credited ⇒ 2. Accounts Receivable
Debtors are paying the company cash which will increase the cash balance so Cash is debited. The Receivables will be credited to reflect that they are decreasing from the debt settlement.
e. Paid Employees Wages
Account to be Debited ⇒ 12. Wages Expense
Account to be Credited ⇒ 1. Cash
As explained, this is an expense and will have to be debited. It was paid with cash which will reduce the cash balance so Cash should be credited.
f. Withdrew cash for personal use.
Account to be Debited ⇒ 10. Merry Walker, Drawing
Account to be Credited ⇒ 1. Cash
The owner withdrew cash for personal use and so this is sent to the Drawings account. It is debited to reflect that it is reducing capital. Cash will be credited as it is decreasing.
Final answer:
In a catering business transaction, you would debit the receiver and credit the giver account for each transaction. Such accounts may include Cash, Supplies, Fees Earned, etc. However, without specific details on transactions (a) through (f), more specific account identification cannot be provided.
Explanation:
The transaction entries would follow the standard principle of accounting - debit the receiver, credit the giver. It would also adhere to another principle - debit what comes in and credit what goes out. Each transaction would affect two accounts; one involves a debit entry, while the other one a credit entry.
For instance, if Merry Walker purchased supplies by cash (Transaction a), it would result in a debit to Supplies (3) and credit to Cash (1). If Merry received cash for catering services provided (Transaction b), Fees Earned (11) would be credited and Cash would be debited (1).
I cannot be more specific without seeing the details of transactions (a) through (f) that you mentioned. However, the principles mentioned above will guide you in identifying the accounts to debit and credit for each transaction.
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Answers
Answer:
Current intrinsic value - equity = $1155.56
Explanation:
FCFE or Free cashflow to equity is the free cash flow attributable to the equity holders. Using the constant growth model of FCFE we can calculate the intrinsic value of the equity or intrinsic value per share. The formula for the constant growth model is as follows,
Value of equity = FCFE0 * (1+g) / (r - g)
Where,
- FCFE0 is the most recent FCFE
- g is the growth rate in FCFE
- r is the required rate of return on equity
Current intrinsic value - equity = 100 * (1+0.04) / (0.13 - 0.04)
Current intrinsic value - equity = $1155.56
Answers
Answer: $12,000
Explanation:
Only the $12,000 will be reported in Statement of Activities ( the financial statement used to report revenues and expenses for governmental and business-type activities) as a change in net position for business-type activities.
Why?
The Water Entreprise Fund is the only listed fund type listed that would fall under BUSINESS TYPE because it is an ENTREPRISE Fund. The Motor Pool Internal Service falls under GOVERNMENT ACTIVITIES and the Pension Find is only displayed in the Fund Financial Statements.
Because the Water Entreprise Fund is the only fund here concerned with BUSINESS TYPE activities, it's rise by $12,000 is what will be reported as the Net Change.
Answers
Answer:
6.5017%
Explanation:
Given that,
Total cost of a college education when your child enters college in 16 years, Future value = $200,000
Amount today to invest, present value = $73,000
Time period = 16 years
Therefore,
Annual rate of interest:
r = 6.5017%
Therefore, the annual rate of interest you must earn on your investment to cover the cost of your child’s college education is 6.5017%.
Cash 31 Kelly Pitney, Capital 12 Accounts Receivable 32 Kelly Pitney, Drawing 14 Supplies 33 Income Summary 15 Prepaid Rent 41 Fees Earned 16 Prepaid Insurance 51 Salary Expense 52 Rent Expense 18 Office Equipment 19 Accumulated Depreciation 53 Supplies Expense 21 Accounts Payable 54 Depreciation Expense 55 Insurance Expense 22 Salaries Payable 23 Unearned Fees 59 Miscellaneous Expense
Required:
Journalize each of the May transactions using Kelly Consulting's chart of accounts. (Do not insert the account numbers in the Post. Ref. column of the journal at this time.) For a compound transaction, if an amount box does not require an entry, leave it blank.
Answers
Answer:
The May transactions are:
May 5: Received cash from clients on account, $2,450.
May 9: Paid cash for a newspaper advertisement, $225.
May 13: Paid Office Station Co. for part of the debt incurred on April 5, $640.
May 15: Recorded services provided on account for the period May 1-15, $9,180.
May 16: Paid part-time receptionist for two weeks' salary including the amount owed on April 30, $750.
May 17: Recorded cash from cash clients for fees earned during the period May 1-16, $8,360.
May 20: Purchased supplies on account, $735.
May 21: Recorded services provided on account for the period May 16-20, $4,820.
May 25: Recorded cash from cash clients for fees earned for the period May 17-23, $7,900.
May 27: Received cash from clients on account, $9,520.
May 28: Paid part-time receptionist for two weeks' salary, $750.
May 30: Paid telephone bill for May, $260.
May 31: Paid electricity bill for May, $810.
May 31: Recorded cash from cash clients for fees earned for the period May 26-31, $3,300.
May 31: Recorded services provided on account for the remainder of May, $2,650.
May 31: Kelly withdrew $10,500 for personal use.
Solution:
Kelly Pitney
General Journal:
May 3:
Debit Cash $4,500
Credit Unearned Fees $4,500
To record advance payment for services.
May 5:
Debit Cash $2,450
Credit Accounts Receivable $2,450
To record cash receipt on account.
May 9:
Debit Miscellaneous Expense $225
Credit Cash $225
To record cash paid for a newspaper advertisement.
May 13:
Debit Accounts Payable $640
Credit Cash $640
To record part debt settlement to Office Station Co.
May 15:
Debit Accounts Receivable $9,180
Credit Fees Earned $9,180
To record services provided to clients on account, May 1 to 15.
May 16:
Debit Salaries Payable $750
Credit Cash $750
To record salaries paid.
May 17:
Debit Cash $8,360
Credit Fees Earned $8,360
To record cash receipt from clients for fees earned, May 1 to 16.
May 20:
Debit Supplies $735
Credit Accounts Payable $735
To record supplies purchased on account.
May 21:
Debit Accounts Receivable $4,820
Credit Fees Earned $4,820
To record fees earned, May 16 - 20.
May 25:
Debit Cash $7,900
Credit Fees Earned $7,900
To record cash receipt from clients for fees earned, May 17 - 23.
May 27:
Debit Cash $9,520
Credit Accounts Receivable $9,520
To record cash receipt from clients on account.
May 28:
Debit Salaries Payable $750
Credit Cash $750
To record salary paid.
May 30:
Debit Miscellaneous Expense $260
Credit Cash $260
To record payment of telephone bill for May.
May 31:
Debit Miscellaneous Expense $810
Credit Cash $810
To record electricity bill for May paid.
May 31:
Debit Cash $3,300
Credit Earned Fees $3,300
To record cash receipts from clients for May 26 - 31.
May 31:
Debit Accounts Receivable $2,650
Credit Fees Earned $2,650
To record fees earned for services on account.
May 31:
Debit Kelly Pitney, Drawing $10,500
Credit Cash $10,500
To record drawing for personal use.
Explanation:
The general journal is an important accounting tool that helps to record transactions as they occur daily. It identifies the two accounts involved in each transaction, which should be debited or credited as the case may be.
The account that is debited is the account that receives value. The account that is credited the account that gives value. Sometimes, for each business transaction or event more than two accounts are involved.
It is from the general journal that transactions are posted to the general ledger. The general ledger is a book that records transactions affecting all the accounts. It is not necessarily in a physical book form.
Answer:
*May 16
Salaries Expense: Debit 630
Salaries Payable: Debit 120
Cash: Credit 750
Explanation:
The salaries payable is equaled to $120 as states in the balance sheet. To find the salaries expense, subtract the cash and the salaries payable.
( 750 - 120 = 630 )
Answers
Answer:
Cyclical Unemployment
Explanation:
Cyclical Unemployment occurs due to irregularities surrounding an economy and these said cycles eventually brings about recession and thus, a good number of willing workers would not be able to get jobs due to this fact. What Joseph is experiencing is called Cyclical unemployment.
Answers
Calculation of average fixed cost per unit at an activity level of 5,600 units:
The average fixed cost per unit can be calculated using the following formula:
Average Fixed cost Per unit = Total Fixed Cost / Number of Units
Total Fixed Cost at the level of 5,600 units is given $86,240
Hence, Average Fixed cost Per unit = 86240/5600 = $15.40
So, the average fixed cost per unit at an activity level of 5,600 units is $15.40