User Account

All Pages

Find amount of retained earnings at december

Assignment Help Accounting Basics
Reference no: EM13257657

Smith Company engaged in the following transactions during2007:

1) Started the business by issuing $7,460 of common stock forcash.
2) The company paid cash to purchase $4,570 of inventory.
3) The company sold inventory that cost $3,030 for $7,370 cash.
4) Operating expenses incurred and paid during the year,$2,430.

Smith Company engaged in the following transactions during2008:
1) The company paid cash to purchase $5,790 of inventory.
2) The company sold inventory that cost $7,030 for $15,260cash.
3) Operating expenses incurred and paid during the year,$3,460.

Smith uses the perpetual inventory system.

The amount of retained earnings at December 31, 2008 is:

$8,060.

$6,310.

$7,330.

$6,680.

 

Reference no: EM13257657

Questions Cloud

Why should the option premium increase with the strike price : Consider your payoff diagram with all three options graphed together. Intuitively, why should the option premium increase with the strike price?
Problem related to productivity gain : last year the nursing home prepared 200,000 standard meals, 40,000 low-sodium meals, and 50,000 other special meals, this year, they prepared meals, 60,000 other special meals, the total time for the foodworkers this year was 76,500 hours using a ..
What is the present value of an annuity : What is the present value of an annuity of $6,000 per year, with the first cash flow received 3 years from today and the last one received 25 years from today? Use a discount rate of 7 percent.
Is there any advantage to investing in the stock : Suppose XYZ stock pays no dividends and has a current price of $50. The forward price for delivery in 1 year is $55. Suppose the 1-year eective annual interest rate is 10%.
Find amount of retained earnings at december : Smith Company engaged in the following transactions during 2007. The amount of retained earnings at December 31, 2008 is?
Determine the book value of the goodwill : Determine the book value of the goodwill on December 31, 2008, prior to making the impairment adjustment. Illustrate the effects on the accounts and financial statements of the December 31, 2008, adjustment for the goodwill impairment.
Machinery account for five years : Given the machinery account for 5 years writing off depreciationat 10% on the written down value.
What will the carrying value of the bonds be on december : What would be the answer to this question and how did you figure it? A company issues $20,000,000, 7.8%, 20-year bonds to yield 8%on January 1, 2007.
Case-venture company : Venture Company acquired patent rights on January 3, 2005, for$661,500. The patent has a useful life equal to its legal life of 15 years. On January 5, 2008, Venture successfully defended the patent in a lawsuit at a cost of $105,000.

Reviews

Write a Review

Accounting Basics Questions & Answers

  Concept of process costing system

A single product in one department and uses a process costing system. At the start of May, there were 10,000 units in process that were 100 percent complete with respect to direct material and 60 percent complete with respect to conversion costs (..

  Amount of income tax expense as a separate item

Provincial Inc. reported the following before-tax income statement items: Provincial has a 30% income tax rate. Provincial would report the following amount of income tax expense as a separate item in the income statement:

  Explaining the purpose of the cash flow statement

Prepare a letter to Renee explaining the purpose of the cash flow statement and why the banker is interested in this financial statement.

  Company total contribution margins

Determine which expenses are mixed and, by use of the high low method, seperate each mixed expense into its variable and fixed components. state the cost formula for each mixed expense.

  Calculating profitability index bill plans

Calculating Profitability Index Bill plans to open a self-serve grooming center in a storefront. The grooming equipment will cost $210,000, to be paid immediately.

  Surviving spouse gross estate

Ernie's executor elects to claim the marital deduction for the QTIP transfer. At the time of the surviving spouse's death, the value of the QTIP trust is $3.6 million. The amount of the QTIP trust included in the surviving spouse's gross estate is..

  Dodger statements for financial reporting purpose

Assuming Dodger's tax rate is 30 percent in all periods, and that the company uses the carryback provisions, what amount should appear in Dodger's statements for financial reporting purposes as a net loss in 2011?

  Determining the amount of ordinary income

The corporation elected S corporation status at the starting of 2011. On February 13, 2012, the property was sold for $40,000, payable in 4 yearly instalments of $10,000 plus interest. What is the amount of ordinary income to be reported from the s..

  What is the taxable income

Jasmine Corporation has ordinary income from operations of $60,000, net long-term capital gain of $20,000, and net short-term capital loss of $25,000. What is the taxable income for 2008?

  Description of income tax

Suppose that Helen's marginal income tax rate is 28 percent. Compare her after-tax income and her group medical costs under three scenarios:

  What amount should abby and co. report as adjusted beginning

Abby and Co. reported a retained earnings balance of $500,000 at December 31, 2010. In September 2011, Abby and Co. determined that insurance premiums of $90,000 for the three-year period beginning January 1, 2010, had been paid and fully expensed..

  What is the target cost reduction

They estimate the variable cost per unit to be $30, and total fixed costs to be $1,000,000. Their required return is 20% of the selling price. What is their target cost reduction?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd