Answer the following questions. Hint: Use the accounting equation. a. On January 1, Lumia Company's liabilities are $61,000 and its equity is $41,000. On January 3, Lumia purchases and installs solar panel assets costing $11,000. For the panels, Lumia pays $4,500 cash and promises to pay the remaining $6,500 in six months. What is the total of Lumia's assets after the solar panel purchase? b. On March 1, ABX Company's assets are $101,000 and its liabilities are $31.000. On March 5, ABX is fined $15,500 for failing emission standards. ABX immediately pays the fine in cash. After the fine is paid, what is the amount of equity for ABX? c. On August 1, Lola Company's assets are $31,000 and its liabilities are $11,000. On August 4, Lola issues a sustainability report. On August 5, ownership invests $3,500 cash and $7,500 of equipment in Lola. After the investment, what is the amount of equity for Lola? Complete this question by entering your answers in the tabs below.

Answer the following questions. Hint: Use the accounting equation. a. On January 1, Lumia Company's liabilities are $61,000 and its equity is $41,000. On January 3, Lumia purchases and installs solar panel assets costing $11,000. For the panels, Lumia pays $4,500 cash and promises to pay the remaining $6,500 in six months. What is the total of Lumia's assets after the solar panel purchase? b. On March 1, ABX Company's assets are $101,000 and its liabilities are $31.000. On March 5, ABX is fined $15,500 for failing emission standards. ABX immediately pays the fine in cash. After the fine is paid, what is the amount of equity for ABX? c. On August 1, Lola Company's assets are $31,000 and its liabilities are $11,000. On August 4, Lola issues a sustainability report. On August 5, ownership invests $3,500 cash and $7,500 of equipment in Lola. After the investment, what is the amount of equity for Lola? Complete this question by entering your answers in the tabs below.

Name: Answer the following questions. Hint: Use the accounting equation.a.
Uploaded: 2024-03-04T10:43:15.000Z
Channel: Bartleby
Description: Answer the following questions. Hint: Use the accounting equation.a. On January 1, Lumia Company's liabilities are $61,000 and its equity is $41,000. On January 3, Lumia purchases and installs solarpanel assets costing $11,000. For the panels, Lumia

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Libscomb Technologies' annual sales are $6,974,991 and all sales are made on credit, it purchases $3,511,535 of materials each year (and this is its cost of goods sold). Libscomb also has $550,869 of inventory, $522,928 of accounts receivable, and $477,584 of accounts payable. Assume a 365 day year. What is Libscomb’s Inventory Turnover?
Solve the following problems without using any software, do everything in digital format, explain the formulas, substitutions and result 1. A company has in its portfolio of assets 10 promissory notes of $ 200 each, with monthly maturities at the end of the month. The company needs liquidity and plans to sell them to a bank, which has accepted the transaction with an interest rate of 24% per year (2% per month). What amount will the company receive if the operation is carried out? In other words, what is the present value of these notes?
Scrimiger Paints wants to upgrade its machinery and on September 20 takes out a loan from the bank in the amount of $550,000. The terms of the loan are 3.7% annual interest rate and payable in 8 months. Interest is due in equal payments each month. A. Compute the interest expense due each month. If required, round final answer to two decimal places. $fill in the blank 923b18021034fe7_1 B. Show the journal entry to recognize the interest payment on October 20, and the entry for payment of the short-term note and final interest payment on May 20. If required, round final answers to two decimal places. If an amount box does not require an entry, leave it blank. Oct. 20 fill in the blank 848f66019ffe028_2 fill in the blank 848f66019ffe028_3 fill in the blank 848f66019ffe028_5 fill in the blank 848f66019ffe028_6 May 20 fill in the blank 848f66019ffe028_8 fill in the blank 848f66019ffe028_9 fill in the blank 848f66019ffe028_11 fill in the blank…
Prepare Financial Income Statement, Statement of Retained Earnings, & Balance Sheet based on the following information: On 3/1/21, the company purchased a large fishing boat for $20,000 of which had a down payment of $5,000 and the rest of borrowed from First Hawaiian Bank. The Note Payable’s principle has a 4% annual interest rate due every 8-months while the principle is due at maturity date in 5 years. The boat has a useful life of 10 years and salvage of $4,000. Straight-line depreciation method is used. Liability insurance was purchased on 5/1/21. The 18 month policy cost $4,600 and was paid in full. Shark Bait purchased $12,000 of office supplies and lures from Huge Minnows Company on 4/1/21 on account. Also, on 11/5/21, Shark Bait received $3,400 cash for the sale of some unused lures that were bought on 4/1/21 for $2,900. On 12/31/21, due to the use of office supplies, the Office Supplies and lures only added up to $2,000. On 6/1/21, Shark Bait received $10,000 cash for a…
Isabella made an initial investment of $5000 in a trading account with a stock brokerage house. After a period of 17 months, the value of the account had increased to $6400. Assuming that there were no additions or withdrawals from the account, what was the nominal annual interest rate earned on the initial investment?
Precision Castparts, a manufacturer of processed engine parts in the automotive and airline industries, borrows $40.4 million cash on October 1, 2024, to provide working capital for anticipated expansion. Precision signs a one-year, 9% promissory note to Midwest Bank under a prearranged short-term line of credit. Interest on the note is payable at maturity. Each company has a December 31 year-end. Required: 1. Prepare the journal entries on October 1, 2024, to record (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. 2. Record the adjusting entry on December 31, 2024, for (a) Precision Castparts and (b) Midwest Bank. 3. Prepare the journal entries on September 30, 2025, to record payment of (a) the notes payable for Precision Castparts and (b) the notes receivable for Midwest Bank. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare the journal entries on October 1, 2024, to record (a) the…
Wally has provided the information below – and asked you to create an Income Statement and Balance Sheet for AndrewCo for the year ended December 31, 2019. Sales were $1,200,000 Gross profit margin was 50% Operating margins were 10% The Bank of Toronto provided a loan on Jan 1, 2019 worth $300,000. The annual interest is 8% and is compounded annually. Interest only payments are needed – until the loan is due in 10 years, where a balloon payment for the full balance must be paid. The combined federal and provincial tax rates is 25% Wally knows that the ending cash balance in his company is 200,000. Accounts Receivables is 12% of sales Inventory is 15% of sales Accounts Payable is 5% of sales Accrued expenses payable is 5.5% of sales Capital equipment purchases were made at the start of the year. These total $50,000. These depreciate at 10% per year The owner will provide all other capital in the form of equity financing Wally has asked you to figure out his Selling General and…
Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,300. On October 4 they made a payment of $1,800. On October 13 the business borrowed $2,500, and on October 19 they borrowed $4,400. If the current prime rate is 6%, what is the new balance (in $)? (Round your answer to the nearest cent.) $
Libscomb Technologies' annual sales are $6,997,444 and all sales are made on credit, it purchases $3,879,449 of materials each year (and this is its cost of goods sold). Libscomb also has $530,851 of inventory, $490,754 of accounts receivable, and $417,441 of accounts payable. Assume a 365 day year. What is Libscomb’s Receivables Turnover?
Torrid Romance Publishers has total receivables of $3,040, which represents 20 days’ sales. Total assets are $73,000. The firm’s operating profit margin is 5%. Find the firm's ROA and asset turnover ratio. (Use 365 days in a year. Do not round intermediate calculations. Round your final answers to 2 decimal places.)
Cook Security Systems has a $37,500 line of credit, which charges an annual percentage rate of prime rate plus 4%. The starting balance on October 1 was $9,100. On October 4 they made a payment of $1,800. On October 13 the business borrowed $2,100, and on October 19 they borrowed $4,200. If the current prime rate is 8%, what is the new balance (in $)? (Round your answer to the nearest cent.) $
Libscomb Technologies' annual sales are $5,790,872 and all sales are made on credit, it purchases $3,221,342 of materials each year (and this is its cost of goods sold). Libscomb also has $539,653 of inventory, $498,477 of accounts receivable, and $416,602 of accounts payable. Assume a 365 day year. What is Libscomb’s Inventory Period (in days)?