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- -d Alsup Consulting sometimes performs services for which it receives payment at the conclusion of the engagement, up to six months after services commence. Alsup recognizes service revenue for financial reporting purposes when the services are performed. For tax purposes, revenue is reported when fees are collected. Service revenue, collections, and pretax accounting income for 2020-2023 are as follows: 2020 2021 2022 2023 Service Revenue Collections $700,000 $660,000 790,000 818,000 750,000 756,000 742,000 760,000 Pretax Accounting Income $226,000 300,000 268,000 240,000 There are no differences between accounting income and taxable income other than the temporary difference described above. The enacted tax rate for each year is 25%. (Hint: You will find it helpful to prepare a schedule that shows the balances in service revenue receivable at December 31, 2020- 2023.) Required: 1. to 3. Prepare the appropriate journal entries to record Alsup's 2021 income taxes, 2022 income taxes and…The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 4,980,000 Net operating income $ 298,800 Average operating assets $ 830,000 The following questions are to be considered independently. Brewer 8e Rechecks 2019-01-10 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,400,000 increase in sales, requiring a $166,875 increase in average operating assets, with a resulting $243,500 increase in net operating income. What would be the company’s ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Return on investment (ROI) %Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2020, for Business Solutions follow. Total assets $121,068 Total liabilities $867 Total equity $120, 201 Required: 1. The bank has offered a long-term secured note to Business Solutions. The bank's loan procedures require that a client's debt-to- equity ratio not exceed 0.88. As of March 31, 2020, what is the maximum amount that Business Solutions could borrow from this bank? (Round your intermediate calculations to the nearest dollar amount.) 2. Assume Business Solutions borrows the maximum amount allowed from the bank. (Round your intermediate dollar values to the nearest whole number and final answers to 1 decimal place.) (a) What percentage of assets would be financed by debt? (b) What percentage of assets would be financed by equity? 1. 2. 2. (b) (a) Maximum amount Percentage of assets financed by debt…
- Accounting QUESTION 3 BJs Ltd manufactures products that are used in the construction industry. The company has been successful in the management of its working capital and liquidity. However, 2020 has been different. Calculate the working capital and liquidity ratios for BJs Ltd given the following financial information The following is an extract of the trading account in the income statement: 2020 2019 R'000 R'000 Sales 2,065 1,789 Cost of sales (1,479) (1,304) Gross profit 586 485 Extract Statement From financial position Assets 2020 2019 R'000 R'000 Current Assets Inventory 119 109 Debtors (refer to note1) 401 347 Short term investments 4 19 Cash 48 48 572 523 EQUITY AND LIABILITIES Noncurrent liabilities 49 35 Taxes 62 47 Dividend 19 14 Creditors (refer to note 2) 371 324 501 420 Net current assets 71 103 Notes 1. Ammount of trades receivable in debtors amount 330 285 2.Amount of trades payables in…Scenario: Payment for note payable 29.050 The 2020 comparative balance sheet and 2020 income statement of Maple Group Ltd, have Dividend paid Book value of equipment sold 90,950 just been prepare and presented to the owners by the company's Accountant. Upon close examination of the financial information received, it was discovered that some figures in the balance sheet were erroneously omitted due to an oversight by the accountant who is not available to fix the problem due to his unavoidable absence from work. In addition, the Requirements ouners were concemed about the movement in the company's cash and cash equivalent given that the balance sheet does not show or explain the reason or reasons why there was an 1. How can the owners use the cash flow information or what can the statement of cash flows helps the owners to do? Maple Group Ltd Income Statement increase or decrease in this area The company uses the indirect method to prepare the statement of cash flows and it is expected…You are the new controller for Moonlight Bay Resorts. The company CFO has asked you to determine the company’s interest expense for the year ended December 31, 2021. Your accounting group provided you the following information on the company's debt: (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) 1. On July 1, 2021, Moonlight Bay issued bonds with a face amount of $2,000,000. The bonds mature in 20 years and interest of 11% is payable semiannually on June 30 and December 31. The bonds were issued at a price to yield investors 12%. Moonlight Bay records interest at the effective rate. 2. At December 31, 2020, Moonlight Bay had a 10% installment note payable to Third Mercantile Bank with a balance of $530,000. The annual payment is $75,000, payable each June 30. 3. On January 1, 2021, Moonlight Bay leased a building under a finance lease calling for four annual lease payments of $40,000 beginning January 1, 2021.…
- What is the situation of the McCormick & Company Inc in which this company functions? What does this Compay's future look like? (Minimum 200 wordsA Closer Look on Fundamentals Accounting 191 Problem 6: Michelle Co. its operation in 2030. The following transactions and events occurred during the year: 1. Michelle invested P1,500,000 cash to the business. 2. Borrowed 12%, one year loan amounting to P1,000,000 on September 1, 2030. The principal received and interest are due upon maturity. 3. Purchased supplies amounting to P14,000 on account. 4. Purchased equipment on February 1, 2030 for P500,000 cash. 5. Rendered services on account, P260,000 6. Paid utilities amounting to P32,000 7. Paid salaries of employees, P82,000 8. Rendered services for cash P110,000 9. Michelle withdrew P40,000 cash for personal use. 10. Paid P8,000 supplies previously acquired on account. 11. Collected P140,000 accounts receivable Additional information: a. Unpaid salaries P16,000 b. The equipment has a useful life of 8 years c. Unused supplied at year end per physical count amounted to P400. Required: Prepare the following: a. Journal entries b.…[The following information applies to the questions displayed below.] CommercialServices.com Corporation provides business-to-business services on the Internet. Data concerning the most recent year appear below: Sales $ 2,760,000 Net operating income $ 110,400 Average operating assets $ 920,000 The following questions are to be considered independently. Brewer 8e Rechecks 2019-01-10 3. The Chief Financial Officer of the company believes a more realistic scenario would be a $1,850,000 increase in sales, requiring a $232,500 increase in average operating assets, with a resulting $292,975 increase in net operating income. What would be the company’s ROI in this scenario? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
- Santana Rey has consulted with her local banker and is considering financing an expansion of her business by obtaining a long-term bank loan. Selected account balances at March 31, 2020, for Business Solutions follow. Total assets $121,568 Total liabilities $862 Total equity $120,706 Required:1. The bank has offered a long-term secured note to Business Solutions. The bank’s loan procedures require that a client’s debt-to-equity ratio not exceed 0.77. As of March 31, 2020, what is the maximum amount that Business Solutions could borrow from this bank? 2. Assume Business Solutions borrows the maximum amount allowed from the bank. (a) What percentage of assets would be financed by debt?(b) What percentage of assets would be financed by equity?QUESTION 5 Entity A is preparing its financial statements for the year ended 30 September 2023. The company is now facing a number of legal claims from its customers about some faulty products sold. The total amount being claimed is $2,250,000. The company's lawyers say that the customers have an 80% chance of being successful. REQUIRED: According to HKAS 37 Provisions, Contingent Liabilities and Contingent Assets, what journal entries should be made in respect of the above case in Entity A's statement of financial position on 30 September 2023? ACCOUNTS FOR INPUT: | Legal claim expense | Legal claim income | Provision for legal claim expense | | Bank | Contingent liability | Contingent asset | Provision for legal claim income | ANSWER: Journal Entries: Date Account Name Debit ($) Credit ($) Hints For Sequence 4 paProblem 2 ( computing and Interpreting Rates of Change) Selected information from the financial statements of Yellow Harvest includes the following: 2020 2019 Net sales. P2, 200,000 P2, 000,000 Total expenses.. 1, 998,000 1,800,00T Required: a. Compute the percentage change in 2020 for the amounts of (1) net sales and (2) total expenses b. Using the information developed in a part a, express your opinion as to whether the company's net income for 2020: 1. Increased at a greater or lower percentage rate than did net sales. 2. Represented a larger or smaller percentage of net sales revenue than in 2019. For each answer, explain your reasoning without making any computations or references to peso amounts.