To support herself while attending school, Daun Deloch sold stereo systems to other students. During the first year of operations,Deloch purchased the stereo systems for $157,000 and sold them for $294,000 cash. She provided her customers with a one-yearwarranty against defects in parts and labor. Based on industry standards, she estimated that warranty claims would amount to 3percent of sales. During the year, she paid $1,970 cash to replace a defective tuner.Requireda-1. Prepare an income statement for Deloch's first year of operation.a-2. Prepare a statement of cash flows for Deloch's first year of operation.X Answer is not complete.Complete this question by entering your answers in the tabs below.Required A1Required A2Prepare a statement of cash flows for Deloch's first year of operation. (Cash outflows should be indicated with a minus sign.)DELOCH STEREOSStatement of Cash Flows

Warranty Expense = Sales Revenue * Estimated Warranty Expense (%) Warranty Expense = $294,000 * 3%…

Answered: To support herself while attending…

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

James was a high school teacher earning a net salary of $4500 per month. After working for one year, he quit his job to start his own kiosk business dealing in various consumer goods. In order to learn how to run the business, James enrolled in a TAFE to acquire accounting skills. James’ course was for 6 months. James had to pay $3,000 as tuition for the 3 months. After the training, James borrowed $40,000.00 from his uncle whom he pays 8 percent interest per year. Also, James withdrew $ 50,000 from his savings account. He had been earning 5 percent interest per year for this account. Further, to start the business James used his own premises given to him by his father. His father had been receiving $11,000 from rent per year. Finally, to start the business James uses $75,000 he had been given by his father to go on holiday to USA. James’s first year of business can be summarised as follows: "image" Based on your calculations of accounting profit and economic profit, would you advise…
Lori Ramos operates a small retail kiosk in a mall located in Vancouver, British Columbia. She has opted to use the quick method for preparing her GST returns. Her financial results for her latest reporting period (excluding 5% GST) are as follows: Sales $200,000 Inventory purchases 70,000 Employee salaries 23,000 Interest on line of credit 15,000 Rent 18,000 Leasehold improvements 12,000 Determine Lori's owing or refund for the year using the quick method. The remittance rate is 1.8%
Toshiomi works as a sales representative and travels extensively for his employer's business. This year Toshiomi was paid $75,000 in salary and made the following expenditures: State income taxes withheld $6,300 Employee business expenses (unreimbursed portion) 1,450 Charitable cash contributions 200 Investment counseling fees 780 Tax preparation fee 310 Toshiomi also made a number of trips to Las Vegas for gambling. This year Toshiomi won $12,000 in a poker tournament and this amount was almost enough to offset his other gambling losses ($13,420). Calculate Toshiomi's taxable income if he files single.
John was a high school teacher earning $ 80,000 per year. He quit his job to start his own business in pizza catering. In order to learn how to run the pizza catering business, John enrolled in a TAFE to acquire catering skills. John’s course was for 3 months. John had to pay $2,000 as tuition for the 3 months. After the training, John withdrew $110,000 from his savings account. He had been earning 5 percent interest per year for this account. He also borrowed $50,000.00 from his friend whom he pays 6 percent interest per year. Further, to start the business John used his own premises. He was receiving $12,000 from rent per year. Finally, to start the business John uses $50,000 he had been given by his father to go on holiday to USA. John’s first year of business can be summarised as follows: Item Amount $ Revenue- Pizza Section 400,000 Revenue- Beverages Section 190,000 2 Cashiers (wages per worker) 55,000 Pizza ingredients 50,000 Manager 75,000…
Michelle operates several food trucks. Indicate the amount (if any) that she can deduct as an ordinary and necessary business deduction in each of the following situations. Note: Leave no answers blank. Enter zero if applicable. a. Michelle moves her food truck between various locations on a daily rotation. Last week, Michelle was stopped for speeding. She paid a fine of $160 for speeding, including $115 for legal advice in connection with the ticket. b. Michelle paid $785 to reserve a parking place for her food truck for the fall football season outside the local football stadium. Michelle also paid $130 for tickets to a game for her children. c. Michelle provided a candidate with free advertising painted on her truck during the candidate's campaign for city council. Michelle paid $640 to have the ad prepared and an additional $340 to have the ad removed from the truck after the candidate lost the election. d. Michelle realized a $1,235 loss when she sold one of her food trucks to her…
Gerry likes driving small cars and buys nearly identical ones whenever the old one needs replacing. Typically, he trades in his old car for a new one costing about $15,000. A new car warranty covers all repair costs above standard maintenance (standard maintenance costs are constant over the life of the car) for the first two years. After that, his records show an average repair expense (over standard maintenance) of $2500 in the third year (at the end of the year), increasing by 50 percent per year thereafter. If a 30 percent declining-balance depreciation rate is used to estimate salvage values and interest is 9 percent, how often should Gerry get a new car? Click the icon to view the table of compound interest factors for discrete compounding periods when i = 9%. Gerry should get a new car every years, which has the (Round to the nearest whole number as needed.) EAC of $
ABC purchased a new machine on a deferred payment basis using a zero-interest-bearing note. ABC made a down payment of $5,000 and will make ten monthly installment payments of $14,000 each. The present value of the ten payments is $130,000. ABC paid $6,000 to install the machine and $1,200 to repair damage during installation. Prepare the journal entry to record the purchase. Compute the amount that will be debited to the machinery account. $________________
Gerry likes driving small cars and buys nearly identical ones whenever the old one needs replacing. Typically, he trades in his old car for a new one costing about $15 000. A new car warranty covers all repair costs above standard maintenance (standard maintenance costs are constant over the life of the car) for the first two years. PART A: After two years, his records show an average repair expense (over standard maintenance) of $2500 in the third year (at the end of the year), increasing by 50 percent per year thereafter. If a 30 percent declining-balance depreciation rate is used to estimate salvage values and interest is 8 percent, how often should Gerry get a new car with this cost in the third year? PART B: After two years, his records show an average repair expense (over standard maintenance) of $1500 in the third year (at the end of the year), increasing by 50 percent per year thereafter. If a 30 percent declining-balance depreciation rate is used to estimate salvage values…
An employee is required to use her own automobile for employment duties. She acquired a new car at the beginning of the year for $40000 (including GST and HST of 8 %) and during the year she incurred the following expenses. Gasoline $2200, repairs and maintenance $400, insurance and registration $800, meals while away from the office $420 ($200 relates to out of town travel), parking during employment duties $ 300 and interest on loan to acquire car $3900. During the year, the employee drove 26000 km of which 14000 were for employment duties and the remaining were personal. Compute the personal and employment expenses.
Rita is keen to grow her business and provided some information on two transactlons that she undertook during the year. The first was the purchase of an individual asset for the business called a Techpager. wwym ww The initial cost of the machine itself was $32,000 with several extra required fees and charges. Rita also decided to include a number of optional extras in the purchase. Installation of Techpager $1500 Transportation and Shipping Costs $600 Extended Warranty/Service Program $300 per year. This is an optional service offered by the company that covers all maintenance and repairs costs and is paid annually in advance Sorting and Stapling Unit $1200 (required to allow Rita to produce the booklets for her business) Custom Painting $400 (Rita does not need to have this done but has decided she wants the machine to match her office décor) Insurance $500 per year payable in advance Prepare a general Journal entry to record the individual of the purchase business called Techpager.
Charles Prose insured his real estate office with a $300,000 fire insurance policy at a $.78 annual rate per $100. Nine months later the insurance company canceled his policy because Charles failed to correct a fire hazard. What was Charles’s cost for the 9-month coverage?
Khali owns two commercial buildings in downtown Sheridan. XYZ Company expressed an interest in one of the properties. They would like to rent the building for five years. Anxious to close the deal, Khali tells XYZ Company he will provide a significant discount on the first two years of rent, if XYZ Company pays in advance. XYZ Company agrees. On November 15, Khali receives XYZ’s security deposit in the amount of $2,500 that is refundable at the end of the lease period. A check in the amount of $30,000, covering the first two years of rent arrives on December 1, 2022. How much rental income must Khali include on his 2022 tax return?

SEE MORE QUESTIONS

Recommended textbooks for you

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

FINANCIAL ACCOUNTING

Accounting

ISBN:

9781259964947

Author:

Libby

Publisher:

MCG

Accounting

ISBN:

9781337272094

Author:

WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.

Publisher:

Cengage Learning,

Accounting Information Systems

Accounting

ISBN:

9781337619202

Author:

Hall, James A.

Publisher:

Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…

Accounting

ISBN:

9780134475585

Author:

Srikant M. Datar, Madhav V. Rajan

Publisher:

PEARSON

Intermediate Accounting

Accounting

ISBN:

9781259722660

Author:

J. David Spiceland, Mark W. Nelson, Wayne M Thomas

Publisher:

McGraw-Hill Education

Financial and Managerial Accounting

Accounting

ISBN:

9781259726705

Author:

John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS