A shoe store establishes a retail store on May 1, 2018. Cash of $50,000 is contributed...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A shoe store establishes a retail store on May 1, 2018. Cash of $50,000 is contributed to the business by an individual, Joe Smith, in exchange for 100% of the company's stock. This cash enables the company to start operating. Additional transactions that occurred in May include: 1) Purchased 200 pair of shoes at $25 each (used cash) 2) Sold 110 pair of shoes for $85 each (received cash) 3) Paid employees $3,000 for services provided in May (paid cash) Review the information above & answer the following questions: a. What is the amount of cash on hand at the end of May? b. How many pairs of shoes are left on hand at the end of May? C. What is the COST associated with the shoes on hand? Calculate the total $$ of "shoe" inventory. d. How much revenue was earned in May? e. How much INCOME was earned in May? A shoe store establishes a retail store on May 1, 2018. Cash of $50,000 is contributed to the business by an individual, Joe Smith, in exchange for 100% of the company's stock. This cash enables the company to start operating. Additional transactions that occurred in May include: 1) Purchased 200 pair of shoes at $25 each (used cash) 2) Sold 110 pair of shoes for $85 each (received cash) 3) Paid employees $3,000 for services provided in May (paid cash) Review the information above & answer the following questions: a. What is the amount of cash on hand at the end of May? b. How many pairs of shoes are left on hand at the end of May? C. What is the COST associated with the shoes on hand? Calculate the total $$ of "shoe" inventory. d. How much revenue was earned in May? e. How much INCOME was earned in May?
Expert Answer:
Answer rating: 100% (QA)
Shoe Store Financials May 2018 a Cash on hand Starting Cash 50000 ... View the full answer
Related Book For
Fundamental financial accounting concepts
ISBN: 978-0078025365
8th edition
Authors: Thomas P. Edmonds, Frances M. Mcnair, Philip R. Olds, Edward
Posted Date:
Students also viewed these accounting questions
-
An elevator has a placard stating that the maximum capacity is 1680 lb-10 passengers. So, 10 adult male passengers can have a mean weight of up to 1680/10 = 168 pounds. If the elevator is loaded with...
-
7) The second financial statement to prepare is the statement of retained eamings. To determine the ending balance of retained earnings you need to start with the opening balance as reported in the...
-
Question: Old MathJax webview Old MathJax webview i need ans of these question but the source is alot Old MathJax webviewOld MathJax webview i need ans of these question but the source is alot these...
-
Draw the Lewis structure of AlH 3 . Strategy Draw the Lewis structure in the normal way but realize that, in certain cases, it is not possible to place eight electrons around the central atom.
-
A relation R on a set A is called irreflexive if for all a A, (a, a) R. (a) Give an example of a relation R on Z where R is irreflexive and transitive but not symmetric. (b) Let R be a nonempty...
-
Explain briefly the applets life cycle methods.
-
On January 1, 2020, Josie Inc. purchased for cash ten, \(\$ 1,000,4 \%\) bonds of Star Corp. at par. The bond interest is paid annually on January 1 of each year, and the bonds mature on January 1,...
-
FIFO and LIFO Effects You are the vice president of finance of Mickiewicz Corporation, a retail company that prepared two different schedules of gross margin for the first quarter ended March 31,...
-
Consider four different stocks, all of which have a required return of 18 percent and a most recent dividend of $3.60 per share. Stocks W, X, and Y are expected to maintain constant growth rates in...
-
Homework: HW Ch5 Question 31, P5-56 (similar to) Part 1 of 3 HW Score: 63.13%, 220.94 of 350 points Points: 0 of 10 Save Interest rate for an annuity Personal Finance Problem Anna Waldheim was...
-
During an intravenous injection of fluid, a container is held at a height h above the arm. If the blood pressure is 20 mmHg and the fluid density is 1025 kg/m^3. What is the minimum value of h for...
-
Suppose you observe your friend (mass 69.1 kg) stand at the very edge of a motionless merry-go-round (modelled as a thin disk with moment of inertia 6.8 kg m 2). At some point, your friend walks...
-
Kosmic received a special one-time order to buy 6,000 of its portable radios for $20.00 each. The radio's normal selling price is $25.00 per unit. Each radio costs $21.50 to make: $15.00 in variable...
-
Q2 (a) Technology can be classified into various groups. Examine the differences between new technology and emerging technology. (b) The research and development in the technology life cycle phase...
-
A 39 centimeters tall object is placed in front of a concave mirror which then forms an image with a height of -14 cm at a distance of 10 centimeters. How far away from the mirror (in centimeters)...
-
A rectangular conducting metal loop is being pulled out of an area with a constant magnetic field. The loop has a length L and width W, a resistance R, and is moving with a constant velocity v to the...
-
Solve each equation or inequality. |6x8-4 = 0
-
Nguyen Service Co. does make a few sales on account but is mostly a cash business. Consequently, it uses the direct write-off method to account for uncollectible accounts. During 2013 Nguyen Service...
-
Lan, an accounting major, and Pat, a marketing major, are watching a Matlock rerun on late-night TV. Of course, there is a murder and the suspect wants to hire Matlock as the defense attorney....
-
The following transactions pertain to Boykin Corporation for 2013: Jan. 1 Began operations when the business acquired $25,000 cash from the issue of common stock. Mar. 1 Paid rent for office space...
-
IDEC Pharmaceuticals is considering a drug project that costs \($100,000\) today and is expected to generate end-of-year annual cash flow of \($50,000\) forever. At what discount rate would IDEC be...
-
Should you buy an asset that will generate income of \($1,200\) per year for eight years? The price of the asset is \($6,200\) and the annual interest rate is 10 percent.
-
In its most recent corporate report, Williams, Inc., apologized to its stockholders for not paying a dividend. The report states that management will pay a \($1\) dividend next year. That dividend...
Study smarter with the SolutionInn App