jay inc a 25400 11300 9000 3700 5400 of revenue to be eamed

25.400 11,300 9,000 3.700 $5,400 of revenue to be eamed in January of next year Required:

Solution

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. a. Salaries & Wages Expenses          660.00 Salaries & Wages Payable          660.00 (recorded the wages due for 3 days) b. Utilities Expenses          340.00    Utilities Payable          340.00 (Record the telephones expenses due) c. Depreciation Expenses    22,200.00 Accumulated Depreciation - Rental Autos    22,200.00 (record the dep. On rental autos) d. Interest Expenses          540.00    Interest Payable          540.00 (record the interest expenses) Interest Expenses = $18,000 X 12% X 3/12 = $540 e. Maintenance Expenses      2,900.00 Supplies      2,900.00 (Record the supplies used) f. No Entry g. Income Tax Expenses      5,200.00 Income Tax Payable      5,200.00 (Record the income tax expenses) Answer 2. Jay Inc. Income Statement For the Year Ended Dec 31, 2013 Revenue Rental Revenue        101,000.00 Expenses Salaries & Wages Expenses          26,060.00 Maintenance Expenses          14,200.00 Rent Expenses            9,000.00 Utilities Expenses            4,040.00 Gas & Oil Expenses            2,500.00 Misc Expneses            1,700.00 Depreciation Expenses          22,200.00 Total Expenses          79,700.00 Net Operating Income          21,300.00 Other Income & Expenses Interest Exp.                540.00 Net Income before Tax          20,760.00 Income Tax Expenses            5,200.00 Net Income          15,560.00 No. of Common shares Outstanding            7,700.00 Earning Per Share                     2.02 Answer 3. Assets Turnover Ratio = Net Sales / Average Assets Turnover Average Assets Turnover = ($59,020 + $66,180)/2 Average Assets Turnover = $62,600 Assets Turnover Ratio = $101,000 / $62,600 Assets Turnover Ratio = 1.61 times (Approx.)