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Your Questions About Investing In Restaurants Return

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Donald asks…

stuck on accounting problem?

The Fairway Restaurant chain had a 10% return on a $71,000 investment in new ovens. The investment resulted in increased sales and an increase in income that was 4% of the increase in sales. The increase in sales was:

a. $7,100.
b. $71,000.
c. $177,500.
d. $710,000.

whats the answer and how did u get the answer??

also

The Groovy Movie Chains has invested in a snack bar for its store, where individual pizzas would be prepared and sold. The investment cost the company $50,000. The company expects a sales volume for the new product to be 12,000 pizzas a year. Variable materials, preparation, and marketing costs are expected to be $1.75 a unit and fixed costs are estimated at $18,000 a year. Based on a desired 12% ROI, what should Groovy Movies charge as the selling price per pizza?

the answer to this one is $3.75 but im not sure how to get to it. can you explain this solution please ??
i just figured out the first question but im still lost on the second question.

Justin answers:

C 177,500

Investment 50,000 x 12% = 6,000 net return + 18,000 FC = 24,000 Contribution Margin

Sales less VC of $21,000 (1.75 x 12,000 pizzas) = $24,000 CM
Sales then must be $45,000 / 12,000 = $3.75 Sell price

John asks…

How should I allocate my 401(k)?

I want to start investing in my company’s 401(k), but am lost as to how I should allocate. I’m 24 and just want to be smart about it! I work for Darden Restaurants, so could also buy company stock at a 15% discount (that’s the ESOP fund below). They have Target Retirement funds, but I thought I could earn a better return allocating myself.

I have these funds to chose from:

Davis New York Venture Fund (A)
Harbor Capital Appreciation (Instl)
Vanguard Target Retirement 2035
Vanguard Target Retirement 2045
Vanguard Strategic Equity (Invstor)
EuroPacific Growth Fund (Class A)
Vanguard Target Retirement Income
Vanguard Target Retirement 2005
Vanguard Target Retirement 2015
Vanguard Target Retirement 2025
Vanguard Total Bond Market Index
Vanguard Extended Market / INV
Vanguard Total Intl Stock Index Inv
Vanguard Institutional Index Fund
Aston/Tamro Small Cap/I
RVST Stable Capital Fund II
Darden Company Stock Fund
PIMCO Total Return Fund (Inst)
Darden ESOP Stock Fund

Someone help! 🙂

Justin answers:

Do not do the Target Funds.
Put 20% in EuroPacific and 20% Pimco (each)
10% In the Darden ESOP (don’t overload the company you work for)
10% Astro/Tamro
10% Harbor Capital
10% Davis NY
10% Vanguard Stategic
10% RVST Stable
That’s what I would do for 3 months! Reviewing after each month!

Thomas asks…

i have been asked to invest money in a restaurant?

ok here is the skinny.my brother is look n to open a restaurant.
and ask me to invest. he has been in the business a long time and he knows it well.he has opened several and has failed . i feel the reason he has failed is does does peaple wrong he gets greedy doesn’t pay the bills
i will give you a few details
the last time he asked my dad for money .business was doing very well
or at least that what he told me.he was always at the golf course always had a few friends with him getting drunk.
He always come to my house and brag and put me down.
i told be careful because what goes up must come down. well fast forward a few months. he never pad my dad he lost his restaurant
he had to move in with me cause he had nowhere to go.
he began to recieve letters from food venders he owed money.The IRS
labor department where he didnt pay his peaple. he filed a police report
that some broke in to the safe and stole money and tried to collect
insurance . which later he was charged for for.
Its a shame but my mom and i think the same about him he will try to
screw any one around if has chance to make money off them.
He could not pay me rent but he drove a jag and always had his clothes pressed
I have kept tellin him do the right thing,Karma, what you sow is what you reep be humble work and don’t look for the fast buck.what you put out comes back. put out bad and bad comes right back.Any way enough with the details. He asked me to invest some money in a resturant. i first thing i told him is i cant trust you.
but i believe if he applies him self he can make successful.
So my ques is how do i protect my self and make sure every thing is on the up and up. contract lawyer,accountant, bussines lawyer?
He mentioned he would give me a good return on my money
Time out i dont want good return can go buy a CD at the bank and get secure return i want to be part owner what do i do i really would like for my wife and i to qiut our 9to5 have something that can be ours
HELP PLEASE?
what percentage do i own depending on how much i put in? how much is it worth?
can accountant tell me or business lawyer?
i have to protect my investment there has to be a contract

Justin answers:

You more or less answered you own question. If you invest with your brother, you will have to spend just about all your time in that restaurant because he won’t. Sure he could change and finally learn from experience, but I would not want to have to find out the hard way that he is still the same irresponsible playboy as before.

Ken asks…

How could I make millions in the franchise business?

Or a lot of money?

I plan on having a high paying career and I also plan on investing it in the market, putting more of it in a Roth IRA and putting some of it in franchising. I know I don’t have a million dollars laying around but I am just curious which franchises DO NOT cost very much AND give you VERY high return and make you A LOT.

For example. There is someone who lives in my town who I know owns 3 McDonalds Franchises. He already had money to put in them but his restaurants are VERY successful and his is obviously making A LOT.

How could I be able to do this?

Justin answers:

The thing about a franchise is it’s a investment. For example, a subway franchise can be had for 100,000. But it will only make 60,000 a year and then that is also based on you working it. If you buy 4 of them and pay someone 35 to 40k at each place to run for you, and you spend x time between them checking up and ordering etc you can make 80k on a 400k investment. That’s a 5 year payback and gravy after wards. Same with his Micky-d’s, You have to have money to do this to start with. BAnks wont loan full amount, esp now.

Chris asks…

Math home work that is not working out with me please help me!!?

Venture capital. Henry invested $12,000 in a new restaurant. When the restaurant was sold two years later, he received $27,000. Find his average annual return by solving the equation 12,000(1+r)^2=27,000.

Justin answers:

Get r alone

27000/12000=(1+r)^2

squareroot(27000/12000)=1+r

squareroot(27000/12000)-1=r

r=.5

average annual return=$7500

Robert asks…

Rectangular stge. One side of a rectangular stage is 2 meters longer than the other. If the diagonal is 10?

meters, then what are the lengths of the sides?
2. Venture capital. Henry invested $12,000 in a new restaurant,. When the restaurant was soldtwo-years later he recieved $27,000. Find the average annual return by solving the equation 12,000(1+r)^2= 27,000

Justin answers:

First question. Sides are 6 & 8 meters. 36+ 64 + 100.

Charles asks…

Help us with this math equation from Math 209?

Venture capital. Henry invested $12,000 in a new restaurant. When the restaurant was sold two years later, he received $27,000. Find his average annual
return by solving the equation 12,000(1+r)^2=27,000.

(: thanks!!

Justin answers:

(1+r)^2=27000/12000=2.25
1+r=1.5
r=0.5=50%
God bless you.

Steven asks…

I want to start a Restaurant Franchise, but don’t have the money. Are there any investors who invest in this?

I have a lot of experience in QSR(Quick Service Restaurants), and I have been wanting to buy a franchise and run it. I however do not have the money, and can’t get a loan that would be of the size I would need in order to have the money for the build out, equipment, and cash on hand. The Build out is around $225,000, and $50,000 Cash on Hand. The initial franchise fee is $25,000. I want to find an investor that wants to be behind the scenes, but can have the money to start this franchise. We could do this as a 50/50 partnership down the line, until the investor has made X% of the investment, and then I would be able to take over full time. So if the investor would put in $300,000; and wants 200% return, then once $600,000 has been paid back to the investor, then we would part ways, and I would continue on my own. Please let me know if anyone knows of what steps I can go about in order to do all of this.

Thank You!

Justin answers:

There are very few investors that are willing to invest more than what your own stake in the venture is without some assurances as to the success of the venture whether that be by control of the business or verifiable cash flow. If you have nothing at stake then there’s no assurance of fiscal responsibility. Reasonable cash flow expectations can be discounted to give a net present value to help determine the value of the investment.

Even so, no one will invest and consider the profit distribution as a buy out of their interest in the venture, if anything you will have to buy them out yourself to take the business back but the dividends paid would be an expectation as part of the ownership, they would expect to have a 50/50 share of the profit with any buy out of their 50% share coming out of your share of the profit not theirs. Your best bet may be to join a peer to peer lending website and propose the terms that you wish and see if people are willing to put money into financing your venture. If you present sufficiently attractive terms and assurances then your project may be financed, if not well then you don’t get the money. The idea of a peer to peer lending site is that it may be easier to find 15,000 people each willing to risk $20 on your dubious claims of a return then it would be to find someone willing to risk $300,000 on your word.

James asks…

Henry invested $12,000 in a new restaurant.?

Venture capital. Henry invested $12,000 in a new
restaurant. When the restaurant was sold two years
later, he received $27,000. Find his average annual
return by solving the equation 12,000 (1+r)^2=27,000.

Justin answers:

12,000 (1+r)^2=27,000

Divide 27,000 by 12,000

you get : (1+r)^2 = 2.25

Get rid of the ^2 by doing ^1/2 (or square root) on each side

you get: 1+r = 1.5

isolate for r, you get 0.5

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Your Questions About Investools Scam

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Daniel asks…

Is Joey Miller and Traders Edge Live a scam?

I went to a recent seminar and saw some of the stock trading and forex strategies taught by Joey Miller and Traders Edge Live. It seems to be too good to be true. However, I have backtested the strategies and they seem to work very well for the past 5 years. Does anybody know if this is a scam?

Justin answers:

J. Star Jones,

I too was wondering the exact same thing when I had signed up a few years ago! So I’ll take the time to comment and hope that my experience will help you. Towards the end of 2009, I went to a Get Motivated event, and then through Investools and the James Smith Company, and found out about Joey Miller and Traders Edge Live. Eventually, I canceled Investools (thank God that they allowed me to cancel) because I found that Traders Edge Live was teaching actual, systematic strategies as opposed to just theory. I think Investools is great, but I was just looking for something that I could get started with right away.

I have since purchased all the DVDs, books on options, and attended a couple of Traders Edge Cash Flow Seminars and Advanced Summit events to further my education. I must attest that Joey Miller and Traders Edge Live is NOT a scam. They are real, genuine people. The teachers are excellent and understand the subject material as they are true traders themselves. I even signed up for a mentorship and am seriously committed to make this a part of long-term investment plan.

Having said all that, let me share with you some advice that I wish somebody would have emphasized to me when I get started.

1. Nobody can have a strategy that’s 100%. Strategies may work well in the past and continue to work in the future, but there’s absolutely no guarantee of future success. Your odds are just increased when you have a systematic strategy that has performed well in the past.

2. Take your time. Be patient and make sure learn the strategies fully, don’t skip portions and try to take shortcuts. With option trading, it’s very important that you understand the ins and outs as it’s a leveraged investment vehicle.

3. Don’t put all your eggs in one basket. I made the emotional mistake of putting too large of a trade in the beginning because I was so convinced that things would just work out forever. For the first 3-4 months, I made money so consistently that I just keep increasing my investments (even taking out money from a loan to invest). However, I was quickly humbled. So only invest with funds that you are comfortable with, and don’t try to “swing for the fence”. Keep your trades small, so you can recover in case there’s a bad trade.

4. Keep learning. The more you know and understand, the better off you’ll be.

Again, best wishes to you! I hope this helps.

Chris asks…

Investools: The Infomercial. Signed up for a free seminar and would like feedback from anyone who used it?

I signed up for the class and want to know if someone out there can recommend if that its worth my time. And that I am not being suckered into another one of these business TV Informercial scams. Just looks very interesting and informative. Appreciate all the feedback I can get. Thank you in advance….PS: I really want to start playing the market and thought this might be a positive way to enter the game and learn. Also were there additional fees etc required at the course. I got screwed 5 yrs ago by that Carlton Sheets bastard ones before on home buying investing

Justin answers:

Go to ripoffreport and type in investools – there are a few reports you might want to read before you get to that class….

Problem with infomercials as a whole is that the TV station doesn’t really care what is being sold to the public, whether it be a ‘bill of goods’ or a chopper/dicer…. They care that the airtime is being paid for.

~jennifer
Helping others create income from home through education of the system and how it really works.

Steven asks…

does anyone know about investools?

investools is a software package. they promise education and possible return on your investment. i am thinking about getting the package but not so sure if its real or scam

Justin answers:

Hi, I am currently a PHD student in Investools, and I started about a year ago. I’d say for the most part, it’s been pretty good. If you really apply yourself, you’ll probably be satisfied. However, I’d guess that only 20% of the students do that; those that don’t do not get their money’s worth. The course seems to stay pretty basic, and I’ve used it as a learning springboard , getting more “advanced” stuff from books. I might not have understood those books, however, without the basics from Investools. It’s expensive, the PHD is now about 23 to 25 thousand. Hard to get your money’s worth from that. DO NOT believe hints about how you can make this back quickly. That is hot (sales) air.

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Your Questions About The Stock Market Is A Ponzi Scheme

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Steven asks…

Whats a Ponzi scheme?

plz use simple non overcomplicated words… Im not the shrpest tool in the shed x)

Justin answers:

Both of the other answers are wrong. Let’s use Bernie Madoff, the most recent well known example of a Ponzi scheme. He took money from investors and promised a huge return, 12% to 15% year in and year out – a return on investment that his competitors could not come close to matching. As a result, people were flocking to him with their money. What he did was take the “new” money, from the more recent investors, and use it to pay off any withdrawals made by older investors. And of course he kept hundreds of millions for himself. The whole thing fell apart when the stock market crashed, and lots of people got nervous and wanted their money. He didn’t have their money, he had counted on taking new money to pay off people making withdrawals but when there were too many withdrawals and no new money coming in, that was the end.

George asks…

Bernard Madoff and the Ponzi Scheme…?

What is the story? What happened, how and why?

Thanks

Justin answers:

The story is that he took money from his newest clients to pay returns to his long-time clients. It worked so long as the stock market was strong. However, the whole scheme fell apart last year when the market effectively crashed.

If you want more detail, I suggest doing a search for Bernard Madoff. There is a lot more info out there than I can provide in one answer.

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6 Investing Lessons From BDCs

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6 Investing Lessons From BDCs

Business development companies (BDCs) are great places to invest your money, particularly because they pay very large dividends. But the other reason to pay close attention to BDCs is the way they handle their own investment research: The due diligence
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Australian Private Sector Credit rises less-than-expected

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Australian Private Sector Credit rises less-than-expected

Investing.com – The total amount of new credit issued to consumers and businesses in Australia rose less-than-expected last month, official data showed on Thursday. In a report, Reserve Bank of Australia said that Australian Private Sector Credit rose
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Your Questions About In Which Journal Is The Return Of Supplies Purchased On Account Recorded

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Mark asks…

Assume it is Monday, May 1, the first business day of the month, and you have just been hired?

During your first month on the job, the company experiences the following transactions and
events (terms for all its credit sales are 210, n30 unless stated differently):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $3,710. (Use
two lines to record the transaction. Charge 80% of the rent to Rent Expense—Selling Space
and the balance to Rent Expense—Office Space.)
2 Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,100 (cost is $4,100).
2 Issued a $175 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold
on April 28 and returned for credit. The total selling price (gross) was $4,725.
3 Received a $798 credit memorandum from Peyton Products for the return of merchandise
purchased on April 29.
4 Purchased the following on credit from Gear Supply Co.: merchandise, $37,072; store supplies,
$574; and office supplies, $83. Invoice dated May 4, terms n10 EOM.5 Received payment from Knox, Inc., for the balance from the April 28 sale less the May 2
return and the discount.
8 Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased
on April 29 less the May 3 return and a 2% discount.
9 Sold store supplies to the merchant next door at their cost of $350 cash.
10 Purchased $4,074 of office equipment on credit from Gear Supply Co., invoice dated May
10, terms n10 EOM.
11 Received payment from Hensel Company for the May 2 sale less the discount.
11 Purchased $8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 210,
n30.
12 Received an $854 credit memorandum from Gear Supply Co. for the return of defective office
equipment received on May 10.
15 Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office
salaries, $3,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are $59,220 (cost is $38,200). (Cash sales are
recorded daily but are recorded only twice here to reduce repetitive entries.)
15 Post to the customer and creditor accounts. Also post individual items that are not included
in column totals at the end of the month to the general ledger accounts. (Such items are
posted daily but are posted only twice each month because they are few in number.)
16 Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $3,990 (cost is
$1,890).
17 Purchased $13,650 of merchandise from Fink Corp., invoice dated May 14, terms 210,
n60.
19 Issued Check No. 3413 to Garcia, Inc., in payment of its May 10 invoice less the discount.
22 Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost is $4,990), terms
210, n60.
23 Issued Check No. 3414 to Fink Corp. in payment of its May 14 invoice less the discount.
24 Purchased the following on credit from Gear Supply Co.: merchandise, $8,120; store supplies,
$630; and office supplies, $280. Invoice dated May 24, terms n10 EOM.
25 Purchased $3,080 of merchandise from Peyton Products, invoice dated May 23, terms 210,
n30.
26 Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,210 (cost is $8,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000 cash
from the business for personal use.
30 Received payment from Lee Services for the May 22 sale less the discount.
30 Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320, and office
salaries, $3,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are $66,052 (cost is $42,500).
31 Post to the customer and creditor accounts. Also post individual items that are not included
in column totals at the end of the month to the general ledger accounts. Foot and crossfoot
the journals and make the month-end postings.
Required
1. Enter these transactions in a sales journal, a purchases journal, a cash receipts journal, a cash disbursements
journal, or a general journal as illustrated in this chapter. Post when instructed to do
so. Assume a perpetual inventory system.
2. Prepare a trial balance in the Trial Balance columns of the work sheet form provided with the working
papers. Complete the work sheet using the following information for accounting adjustments:
a. Expired insurance, $553.
b. Ending store supplies inventory, $2,632.
c. Ending office supplies inventory, $504.
d. Depreciation of store equipment, $567.
e. Depreciation of office equipment, $329.
Prepare and post adjusting and closing entries.
3. Prepare a May 2005 multiple-step income statement, a May 2005 statement of owner’s equity,
and a May 31, 2005, classified balance sheet.
4. Prepare a post-closing trial balance. Also prove the accuracy of subsidiary ledgers by preparing
schedules of both accounts receivable and accounts payable.

Justin answers:

I hope these notes on adjusting entries will be useful to you:
http://www.cliffsnotes.com/study_guide/Adjusting-Entries.topicArticleId-21081,articleId-21016.html

Paul asks…

Assume it is Monday, May 1, the first business day of the month, and you have just been hired?

During the first month on the job, the company experiences the following transactions and events (terms for all its credit sales are 2/10, n/30 unless stated differently):

May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $3,710. (Use two lines to record the transaction. Charge 80% of the rent to Rent Expense—Selling Space and the balance to Rent Expense—Office Space.)
2 Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,100 (cost is $4,100).
2 Issued a $175 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold on April 28 and returned for credit. The total selling price (gross) was $4,725.
3 Received a $798 credit memorandum from Peyton Products for the return of merchandise purchased on April 29.
4 Purchased the following on credit from Gear Supply Co.: merchandise, $37,072; store supplies, $574; and office supplies, $83. Invoice dated May 4, terms n10 EOM.
5. Received payment from Knox, Inc., for the balance from the April 28 sale less the May 2 return and the discount.
8 Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased on April 29 less the May 3 return and a 2% discount.
9 Sold store supplies to the merchant next door at their cost of $350 cash.
10 Purchased $4,074 of office equipment on credit from Gear Supply Co., invoice dated May 10, terms n10 EOM.
11 Received payment from Hensel Company for the May 2 sale less the discount.
11 Purchased $8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 210, n30.
12 Received an $854 credit memorandum from Gear Supply Co. for the return of defective office equipment received on May 10.
15 Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are $59,220 (cost is $38,200). (Cash sales are recorded daily but are recorded only twice here to reduce repetitive entries.)
15 Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. (Such items are posted daily but are posted only twice each month because they are few in number.)
16 Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $3,990 (cost is $1,890).
17 Purchased $13,650 of merchandise from Fink Corp., invoice dated May 14, terms 210, n60.
19 Issued Check No. 3413 to Garcia, Inc., in payment of its May 10 invoice less the discount.
22 Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost is $4,990), terms 210, n60.
23 Issued Check No. 3414 to Fink Corp. in payment of its May 14 invoice less the discount.
24 Purchased the following on credit from Gear Supply Co.: merchandise, $8,120; store supplies, $630; and office supplies, $280. Invoice dated May 24, terms n10 EOM.
25 Purchased $3,080 of merchandise from Peyton Products, invoice dated May 23, terms 210, n30.
26 Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,210 (cost is $8,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000 cash from the business for personal use.
30 Received payment from Lee Services for the May 22 sale less the discount.
30 Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320, and office salaries, $3,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are $66,052 (cost is $42,500).
31 Post to the customer and creditor accounts. Also post individual items that are not included in column totals at the end of the month to the general ledger accounts. Foot and crossfoot the journals and make the month-end postings.

Required 1. Enter these transactions in a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, or a general journal as illustrated in this chapter. Post when instructed to do so. Assume a perpetual inventory system.
2. Prepare a trial balance in the Trial Balance columns of the work sheet form provided with the working papers. Complete the work sheet using the following information for accounting adjustments: a. Expired insurance, $553. b. Ending store supplies inventory, $2,632. c. Ending office supplies inventory, $504. d. Depreciation of store equipment, $567. e. Depreciation of office equipment, $329. Prepare and post adjusting and closing entries.
3. Prepare a May 2005 multiple-step income statement, a May 2005 statement of owner’s equity, and a May 31, 2005, classified balance sheet.
4. Prepare a post-closing trial balance. Also prove the accuracy of subsidiary ledgers by preparing schedules of both accounts receivable and accounts payable.

Justin answers:

I’ve sent the file to that address you gave me.

Daniel asks…

I’m not sure what I am doing wrong in completing the general ledger for the Bishop company.?

Bishop Company completes these transactions and events during March of the current year?
Bishop Company completes these transactions and events during March of the current year (terms for
all its credit sales are 2_10, n_30):
Mar. 1 Purchased $42,600 of merchandise from Soy Industries, invoice dated March 1, terms 2_15,
n_30.
2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $15,800 (cost is $7,900).
3 Purchased $1,120 of office supplies on credit from Stacy Company, invoice dated March
3, terms n_10 EOM.
3 Sold merchandise on credit to Lance Snow, Invoice No. 855, for $9,200 (cost is $4,600).
6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
9 Purchased $20,850 of office equipment on credit from Tells Supply, invoice dated March
9, terms n_10 EOM.
10 Sold merchandise on credit to Taylor Few, Invoice No. 856, for $4,600 (cost is $2,300).
12 Received payment from Min Cho for the March 2 sale less the discount.
13 Sent Soy Industries Check No. 416 in payment of the March 1 invoice less the discount.
13 Received payment from Lance Snow for the March 3 sale less the discount.
14 Purchased $31,625 of merchandise from the JW Company, invoice dated March 13, terms
2_10, n_30.
15 Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first
half of the month, $15,900. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are $164,680 (cost is $138,000). (Cash sales are
recorded daily, but are recorded only twice here to reduce repetitive entries.)
16 Purchased $1,670 of store supplies on credit from Stacy Company, invoice dated March 16,
terms n_10 EOM.
17 Received a $2,425 credit memorandum from JW Company for the return of unsatisfactory
merchandise purchased on March 14.
19 Received a $630 credit memorandum from Tells Supply for office equipment received on
March 9 and returned for credit.
20 Received payment from Taylor Few for the sale of March 10 less the discount.
23 Issued Check No. 418 to JW Company in payment of the invoice of March 13 less the return
and the discount.
27 Sold merchandise on credit to Taylor Few, Invoice No. 857, for $13,910 (cost is $6,220).
28 Sold merchandise on credit to Lance Snow, Invoice No. 858, for $5,315 (cost is $2,280).
31 Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last
half of the month, $15,900. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are $174,590 (cost is $143,000).
31 Verify that amounts impacting customer and creditor accounts were posted and that any
amounts that should have been posted as individual amounts to the general ledger accounts
were posted. Foot and crossfoot the journals and make the month-end postings.
Required
1. Open the following general ledger accounts: Cash; Accounts Receivable; Inventory (March 1 beg.
bal. is $300,000); Office Supplies; Store Supplies; Office Equipment; Accounts Payable; Long-
Term Notes Payable; M. Bishop, Capital (March 1 beg. bal. is $300,000); Sales; Sales Discounts;
Cost of Goods Sold; and Sales Salaries Expense. Open the following accounts receivable subsidiary
ledger accounts: Taylor Few, Min Cho, and Lance Snow. Open the following accounts payable subsidiary
ledger accounts: Stacy Company, Soy Industries, Tells Supply, and JW Company.
2. Enter these transactions in a sales journal like Exhibit 7.5, a purchases journal like Exhibit 7.9, a
cash receipts journal like Exhibit 7.7, a cash disbursements journal like Exhibit 7.11, or a general
journal. Number all journal pages as page 2.
3. Prepare a trial balance of the general ledger and prove the accuracy of the subsidiary ledgers by
preparing schedules of both accounts receivable and accounts payable.
I have most of the journals completed but having a really hard time with the all the ledger parts of the question. I am having the same trouble with the Colo company and Choi Enterprises… thought I had a better understanding than I actually do, I guess. Any advice or help would be greatly appreciated.

Justin answers:

I’ve sent the file to that address you gave me.

Joseph asks…

Bishop Company completes these transactions and events during March of the current year? Bishop Company comple?

I need this like soon please help

Bishop Company completes these transactions and events during March of the current year?
Bishop Company completes these transactions and events during March of the current year (terms for
all its credit sales are 2_10, n_30):
Mar. 1 Purchased $42,600 of merchandise from Soy Industries, invoice dated March 1, terms 2_15,
n_30.
2 Sold merchandise on credit to Min Cho, Invoice No. 854, for $15,800 (cost is $7,900).
3 Purchased $1,120 of office supplies on credit from Stacy Company, invoice dated March
3, terms n_10 EOM.
3 Sold merchandise on credit to Lance Snow, Invoice No. 855, for $9,200 (cost is $4,600).
6 Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
9 Purchased $20,850 of office equipment on credit from Tells Supply, invoice dated March
9, terms n_10 EOM.
10 Sold merchandise on credit to Taylor Few, Invoice No. 856, for $4,600 (cost is $2,300).
12 Received payment from Min Cho for the March 2 sale less the discount.
13 Sent Soy Industries Check No. 416 in payment of the March 1 invoice less the discount.
13 Received payment from Lance Snow for the March 3 sale less the discount.
14 Purchased $31,625 of merchandise from the JW Company, invoice dated March 13, terms
2_10, n_30.
15 Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first
half of the month, $15,900. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are $164,680 (cost is $138,000). (Cash sales are
recorded daily, but are recorded only twice here to reduce repetitive entries.)
16 Purchased $1,670 of store supplies on credit from Stacy Company, invoice dated March 16,
terms n_10 EOM.
17 Received a $2,425 credit memorandum from JW Company for the return of unsatisfactory
merchandise purchased on March 14.
19 Received a $630 credit memorandum from Tells Supply for office equipment received on
March 9 and returned for credit.
20 Received payment from Taylor Few for the sale of March 10 less the discount.
23 Issued Check No. 418 to JW Company in payment of the invoice of March 13 less the return
and the discount.
27 Sold merchandise on credit to Taylor Few, Invoice No. 857, for $13,910 (cost is $6,220).
28 Sold merchandise on credit to Lance Snow, Invoice No. 858, for $5,315 (cost is $2,280).
31 Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last
half of the month, $15,900. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are $174,590 (cost is $143,000).
31 Verify that amounts impacting customer and creditor accounts were posted and that any
amounts that should have been posted as individual amounts to the general ledger accounts
were posted. Foot and crossfoot the journals and make the month-end postings.
Required
1. Open the following general ledger accounts: Cash; Accounts Receivable; Inventory (March 1 beg.
bal. is $300,000); Office Supplies; Store Supplies; Office Equipment; Accounts Payable; Long-
Term Notes Payable; M. Bishop, Capital (March 1 beg. bal. is $300,000); Sales; Sales Discounts;
Cost of Goods Sold; and Sales Salaries Expense. Open the following accounts receivable subsidiary
ledger accounts: Taylor Few, Min Cho, and Lance Snow. Open the following accounts payable subsidiary
ledger accounts: Stacy Company, Soy Industries, Tells Supply, and JW Company.
2. Enter these transactions in a sales journal like Exhibit 7.5, a purchases journal like Exhibit 7.9, a
cash receipts journal like Exhibit 7.7, a cash disbursements journal like Exhibit 7.11, or a general
journal. Number all journal pages as page 2.
3. Prepare a trial balance of the general ledger and prove the accuracy of the subsidiary ledgers by
preparing schedules of both accounts receivable and accounts payable.
sorry I am new to Yahoo Answers, my email is:jjack3275@gmail.com
Sorry but I need the answers like fast.

Justin answers:

I hope you’ll find this useful:
http://www.newlearner.com/courses/hts/baf3m/term3_class03.htm

Robert asks…

Assume it is Monday, May 1, the first business day of the month, ?

and you have just been hired as the accountan during your first month on the job, the company experiences the following transactions and
events (terms for all its credit sales are 2_10, n_30 unless stated differently):
May 1 Issued Check No. 3410 to S&P Management Co. in payment of the May rent, $3,710. (Use
two lines to record the transaction. Charge 80% of the rent to Rent Expense—Selling Space
and the balance to Rent Expense—Office Space.)
2 Sold merchandise on credit to Hensel Company, Invoice No. 8785, for $6,100 (cost is $4,100).
2 Issued a $175 credit memorandum to Knox, Inc., for defective (worthless) merchandise sold
on April 28 and returned for credit. The total selling price (gross) was $4,725.
3 Received a $798 credit memorandum from Peyton Products for the return of merchandise
purchased on April 29.
4 Purchased the following on credit from Gear Supply Co.: merchandise, $37,072; store supplies,
$574; and office supplies, $83. Invoice dated May 4, terms n_10 EOM.
5 Received payment from Knox, Inc., for the balance from the April 28 sale less the May 2
return and the discount.
8 Issued Check No. 3411 to Peyton Products to pay for the $7,098 of merchandise purchased
on April 29 less the May 3 return 6923 and a 2% discount. 138.46
9 Sold store supplies to the merchant next door at their cost of $350 cash.
10 Purchased $4,074 of office equipment on credit from Gear Supply Co., invoice dated May
10, terms n_10 EOM.
11 Received payment from Hensel Company for the May 2 sale less the discount.
11 Purchased $8,800 of merchandise from Garcia, Inc., invoice dated May 10, terms 2_10,
n_30.
12 Received an $854 credit memorandum from Gear Supply Co. for the return of defective office
equipment received on May 10.
15 Issued Check No. 3412, payable to Payroll, in payment of sales salaries, $5,320, and office
salaries, $3,150. Cashed the check and paid the employees.
15 Cash sales for the first half of the month are $59,220 (cost is $38,200). (Cash sales are
recorded daily but are recorded only twice here to reduce repetitive entries.)
15 Post to the customer and creditor accounts. Also post individual items that are not included
in column totals at the end of the month to the general ledger accounts. (Such items are
posted daily but are posted only twice each month because they are few in number.)
16 Sold merchandise on credit to Hensel Company, Invoice No. 8786, for $3,990 (cost is
$1,890).
17 Purchased $13,650 of merchandise from Fink Corp., invoice dated May 14, terms 2_10,
n_60.
19 Issued Check No. 3413 to Garcia, Inc., in payment of its May 10 invoice less the discount.
22 Sold merchandise to Lee Services, Invoice No. 8787, for $6,850 (cost is $4,990), terms
2_10, n_60.
23 Issued Check No. 3414 to Fink Corp. in payment of its May 14 invoice less the discount.
24 Purchased the following on credit from Gear Supply Co.: merchandise, $8,120; store supplies,
$630; and office supplies, $280. Invoice dated May 24, terms n_10 EOM.
25 Purchased $3,080 of merchandise from Peyton Products, invoice dated May 23, terms 2_10,
n_30.
26 Sold merchandise on credit to Crane Corp., Invoice No. 8788, for $14,210 (cost is $8,230).
26 Issued Check No. 3415 to Perennial Power in payment of the May electric bill, $1,283.
29 The owner of Colo Company, Jenny Colo, used Check No. 3416 to withdraw $7,000 cash
from the business for personal use.
30 Received payment from Lee Services for the May 22 sale less the discount.
30 Issued Check No. 3417, payable to Payroll, in payment of sales salaries, $5,320, and office
salaries, $3,150. Cashed the check and paid the employees.
31 Cash sales for the last half of the month are $66,052 (cost is $42,500).
31 Post to the customer and creditor accounts. Also post individual items that are not included
in column totals at the end of the month to the general ledger accounts. Foot and crossfoot
the journals and make the month-end postings.
Required
1. Enter these transactions in a sales journal, a purchases journal, a cash receipts journal, a cash disbursements
journal, or a general journal as illustrated in this chapter. Post when instructed to do
so. Assume a perpetual inventory system.
2. Prepare a trial balance in the Trial Balance columns of the work sheet form provided with the working
papers. Complete the work sheet using the following information for accounting adjustments:
a. Expired insurance, $553.
b. Ending store supplies inventory, $2,632.
c. Ending office supplies inventory, $504.
d. Depreciation of store equipment, $567.
e. Depreciation of office equipment, $329.
Prepare and post adjusting and closing entries.
3. Prepare a May 2005 multiple-step income statement, a May 2005 statement of owner’s equity,
and a May 31, 2005, classified balance sheet.
4. Prepare a post-closing trial balance. Also prove the accuracy of subsidiary ledgers by preparing
schedules of both accounts receivable and accounts payable.

Justin answers:

I’ve sent the file to that address you gave me.

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Your Questions About Investing In Silver

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or copy the link

Chris asks…

Can someone explain the basics of silver investing?

Hey everyone! I am new to the world of investing and I decided to start investing in silver. I know how to follow prices and about the gamble it is, but I need to learn the basics. For example terms, where to buy silver, and where to sell it. Anything you think I should know, could you please tell me?

Thanks!

financi4 answers:

Buy low, sell high…those are the basics. I’m gonna buy in September personally…but that’s just because I get my money then….right now I’m trying to sell what I have.
Http://www.kitco.com/charts/livesilver.html is a great place to check prices(both historic and current)

go with the rounds(like maple leaves, sunshine, american eagles etc)….but watch out, they are generally way over priced. I deal a lot in old american quarters and half dollars…sometimes the morgan dollars or liberties…but yeah, it’s honestly up to you…the old quarters, halves, and dollars 1964 and before are 90% silver and can still be found in circulation(although rare). Good luck with the silver investing!

Richard asks…

Can you help me with Investing in Silver?

Hey, I bought some .999 fine silver art bars on ebay for under the spot price of $14.00 If I sell it back on ebay for more than what I bought them for wouldn’t I profit? I bought them for $4.00-$7.00 dollars. I bought 4 of the bars. What should I do to make a profit? Im new to this silver investing thing.

financi4 answers:

What you are doing is not investing, it’s dabbling. Did you bother to find out what it will cost you to SHIP a bar of silver?? Real investors buy on commodity exchanges; they do not warehouse stuff.

Steven asks…

What do you think about investing in silver?

What do you think about investing in silver? Is it a good investment?

financi4 answers:

I HIGHLY recommend investing in silver. I invest in silver myself for various reasons.

1) It is currently selling for a very cheap price relative to gold. (Research online the gold/silver ratio)
2) It has many industrial uses (check out www.silverinstitute.org)
3) It is a great way to protect your wealth in times of uncertainty, especially from the ever-inflating fiat currencies like the U.S. Dollar
4) China is asking their citizens to divest themselves from the U.S. Dollar and instead buy gold and silver.
5) There is barely enough silver today being mined to keep up with world demand. (Again, check out www.silverinstitute.org)
6) Silver will increase in value whether the economy goes up or down. It will increase in value if the economy goes down because people will want to own a secure asset, and silver is such. It will also increase if the economy goes up because industrial demand will drive silver prices up.
7) My most favorite reason, the U.S. Government (or any other government for that matter) can’t “print” gold and silver out of thin air 🙂

There are many reputable silver dealers online. The most reputable company is APMEX.com. I purchased a lot of gold and silver bullion from them and was very satisfied with all of my orders. There are also a ton of videos on YouTube that talk about the benefits of owning silver. Search for silver on YouTube and you’ll be amazed at all the information that’s out there.

*****

EDIT: Sorry, I just read what Warren534 wrote and decided to expand on my answer. If you want to invest in silver, do yourself a favor and invest in REAL physical silver, NOT “paper” silver like silver futures or ETFs. That’s all a scam. I’ve been following the silver market for years and can attest to the fact that there have been many times where the “paper” price of silver (the spot price) is completely irrelevant to what the real price of physical silver is selling for. For example, last year there was a time that “silver shorts” (like Warren534 below) drove the paper/spot price of silver to about $8-$9 an ounce. However, you were lucky if you could actually buy physical silver for less than $12/ounce. Physical dealers were sucked dry of their supplies and were forced to raise prices. There is BLATANT manipulation going on in the “paper silver” market, and many videos on YouTube cover this. Invest in REAL, PHYSICAL silver. Avoid fake/paper silver AT ALL COSTS!

Ken asks…

investing in silver stock market help?

Can I invest Silver ,(commodities) with chase, how?

financi4 answers:

Open a brokerage account with Chase, and buy the SLV etf. Tho I think your a little late to the silver party.

Joseph asks…

Is Investing in Silver a good idea right now?

I have a little money put aside? Which would be best with the current market? Save as emergency cash, invest in medals as silver, or invest in stocks. I know I can lose it all and that is ok. However, I also don’t have enough money to diversify at the moment, so I could only pick one, and diversify later once I get some more cash built up.

financi4 answers:

Silver is in an up trend at the moment:

http://www.haydnallbutt.com.au/files/silverprice.jpg

Since reaching a peak on the 5th of March last year it then dropped during the financial crisis (price is in US dollars per ounce). Not quite as low as it was a couple of years ago but as low as it has gone in recent times. It has since risen very steeply. I don’t follow silver so can’t comment on it’s current sharp increase. Will probably keep going up in the short term.

Investing in stocks is very good at the moment because of the financial crisis. Many stocks all around the world have plummeted so you can pick up some excellent bargains. Then as the economy recovers they will tend to increase dramatically. You do need to watch the company and make sure it is still doing ok despite the downturn, ie I wouldn’t invest in car companies! I can’t suggest particular companies since it depends on where you are in the world and what markets you have access too.

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