Find amount of net income if no capital stock issued

Assignment Help Accounting Basics
Reference no: EM13257874

Financial information related to Midas Interiors for March andApril 2008 is as follows:

                                                  March31,2008                 April 30, 2008

Accountspayable                           $ 30,800                              $  33,200             

Accountsreceivable                        68,000                                    78,250

Capitalstock                                     37,500                                    37,500

Retainedearnings                                ?                                             ?     

Cash                                             120,000                                  204,000

Supplies                                         6,000                                     5,000

  1. Prepare balance sheets for Midas Interiors as of March 31and as of April 30, 2008
  2. Determine the amount of net income for April, assuming that noadditional capital stock was issued and no dividends were paidduring the month
  3. Determine the amount of net income for April, assuming that no additional capital stock was issued but dividends of $25,000 werepaid during the month.

Reference no: EM13257874

Questions Cloud

Create a scenario based on current events : Create a scenario based on current events where a corporation could be found guilty of committing a crime even though the CEO, board of directors, and the shareholders have not themselves done a criminal act.
What is the input signal-to-noise ratio in db : a) The input signal to an amplifier is -20 dBm. What is the input signal power in mW. Given the input signal and noise power in parts (a) and (b), what is the input signal-to-noise ratio in dB.
Amoral best argument for avoiding liability : After being drafted by the Indianapolis Dolts , All-Big One Conference offensive tackle, Les Holdem, contracted with sports agent Harry Shifty to represent him in contract negotiations with the Dolts.
What do budget variances mean : What do budget variances mean? Is the administrator interpreting this information correctly? Explain.
Find amount of net income if no capital stock issued : Determine the amount of net income for April, assuming that no additional capital stock was issued and no dividends were paidduring the month
What is the value of this business : Assume that it will take exactly one year to get the first cash flow and each cash flow will occur on the same date ever year. If the current interest rate is 5% per year then what is the value of this business?
What is a possible thickness of the slime : A ghost leaves a thin slime of ectoplasm (n=1.8) on a puddle of water (1.33). When looking down with light shining on the puddle, What is a possible thickness of the slime
How far away is the pumpkin from the mirror : A pumpkin sets in front of a mirror with radius of curvature of -20 cm. How far away is the pumpkin from the mirror
What is the probability of a major release per reactor-year : The Chernobyl accident may ultimately cause on the order of 10,000 extra cancer deaths (von Hippel and Cochrane 1991). How many would this come to per reactor-year?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Impact on financial statements of missing step

What is the impact on the financial statements of missing a step when completing the accounting cycle?

  Net present value of the equipment

The new equipment is expected to generate cost savings of $20,000 per year in each of the 6 years. Kumanu's discount rate is 16%. What is the net present value of this equipment?

  What arguments might you present against current position

Until recently, governments were not permitted to recognize increases in the value of investments as revenue. What arguments might you present in support of the current position that investments.

  Poor operating income performance

The following product line information is for the Swiss Watch Company. The company is considering dropping its Children's product line due to poor operating income performance. Fixed expenses are allocated to each product line based on sales reven..

  Yield-to-maturity of the bond

A refrigerator manufacturer, Zero King, issued a zero coupon bond with 10 years to maturity. What is the yield-to-maturity of this bond if it is sold for $352?

  What is the business purpose doctrine

The U.S. Tax Code has evolved over time to include many credits and deductions. Certainly, the legislative process encourages offering tax benefits for certain behavior, such as buying a new car or home, investing in manufacturing equipment, and s..

  Partnership interest following distribution

The partners' relative interests in the Sec. 751 assets do not change as a result of the current distribution. The basis of her partnership interest following the distribution is:

  Wrote off uncollectible accounts

XYZ wrote off uncollectible accounts totaling $20,000 during 2010. Under the cash basis of accounting XYZ would have reported 2010 sales of ?

  Boswell break-even point in units

Sales (50,000 units) $1,000,000, direct materials and direct labor $500,000, other variable costs $50,000, and fixed costs $180,000. What is Boswell break-even point in units?

  The security is to be held short-term profits

Purchased $100,000 of U.S. Treasury 6% bonds, paying 102 plus accrued interest of $1000. The security is to be held short-term profits.

  Previous and adjusted balances

Assuming a 30-day period in November, calculate November's interest. Also, calculate the interest Nancy would have paid with: a) the previous balance method, b) the adjusted balance method.

  Journal entry of purchase of long-term bonds

Karr Company purchased bonds with a face amount of $400,000 between interest payment dates. Karr purchased the bonds at 102, paid brokerage costs of $6,000, and paid accrued interest for three months of $10,000.

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!

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