The expected cash balance at the end of February is $113,300.
Explanation: Lense Laboratories reported a net income of $290,000. Analyzing the account data provided includes an increase in Accounts Receivable of $64,000, an increase in Salaries Payable of $57,500, a decrease in Inventory of $36,500, Depreciation Expense of $49,000, and an increase in Prepaid Insurance of $3,600.
Answer:
40%
Explanation:
Total assets. $240,000
Less total liabilities ($130,000)
$110,000
Less common stock ($24,000)
Retained earnings at end $86,0000
Less Retained earnings at the beginning ($29,000)
Addition to retained earnings $57,000
Add dividends $6,400
Net profit earned $63,400
Add expenses $94,000
Revenue. $157,400
Therefore, company's net profit margin expressed as a percentage = Net profit earned / Revenue
= (63,400/157,400) × 100
[[TAG_37]]= 40%[[TAG_38]]
Answer: 1. On March 1, record the insurance purchase in advance. Debit Prepaid Insurance $36,000. Credit Cash $36,000. 2. On December 31, make the adjusting entry. Debit Insurance Expense $30,000. Credit Prepaid Insurance $30,000. Explanation: Mountaineer excavation preemptively acquires one year’s worth of flood insurance on March 1, totaling $36,000 ($3,000 a month). The insurance is documented as prepaid insurance: Debit Prepaid Insurance $36,000, Credit Cash $36,000. By December 31, at the conclusion of the following 10 months, an adjustment is recorded to Credit Prepaid Insurance for $30,000 ($3,000 per month for 10 months) and Debit Insurance Expense for the same amount.
