Benjamin O'Henry has owned and operated O'Henry's Data
Services since its beginning ten years ago. From all
appearances, the business has prospered. In the past few
years, you have become friends with O'Henry and his wife.
Recently, O'Henry mentioned that he has lost his zest for
the business and would consider selling it for the right
price. You are interested in buying this business, and you
obtain its most recent monthly unadjusted trial balance
which follows:
O'Henry's Data Services Unadjusted Trial Balance November
30, 20XX
Cash……………………………… $9,700
Accounts receivable……………………… 7,900
Prepaid expenses………… 2,600
Furniture, fixtures, & equipment 151,300
Accumulated depreciation $15,600
Accounts payable………… 3,800
Salary payable………………
Unearned service revenue 6,700
Benjamin O'Henry, capital 137,400
Benjamin O'Henry, withdrawals 2,000
Service revenue………… 14,300
Rent expense……………
Salary expense………… 3,400
Utilities expense……… 900
Depreciation expense
Supplies expense……
Total…………………………………………. $177,800 $177,800
Revenues and expenses vary little from month to month, and
November is a typical month. Your investigation reveals
that the unadjusted trial balance does not include the
effects of monthly revenues of $2,100 and monthly expenses
totaling $2,750. If you were to buy O'Henry's Data
Services, you would hire a manager who would require a
monthly salary of $3,000.
The most you would pay for the business is 20 times the
monthly net income you could expect to earn from it.
Compute this possible price. The least O'Henry will take
for the business is his ending capital. Compute this
amount. Under these conditions, how much should you offer
O'Henry? Give your reason. I have the mathimatical part
ok , please give reasons on how much and why I they would
offer him the amount.
In the case of bank fixed deposits,t.d.s. u/s194A ,is to be
deducted whether on the basis of person ,as a person earns
50000 interest on 1 fd or on fixed deposit scheme as 10fds
earn 200000 interest?
hi gurus , plz can anybody forward ur cv of
accounts/finance related , exp of 4+ years to
afreenjuveriya@yahoo.com
69
Why the closing stock will not appear in the Trial Balance?
58
How & When We Calculate Deffered Tax...
Please Give me Some Example.?
20
What sorts of accountant count as "qualified accountants"
to be independent examiners for charities with income over
?100,000 or assets over ?1,000,000?
79
Anyone whose sbi interview has been over , please share all
the question asked by them
define accounting,scope of account , types of account ?
74
what is the direct or indirect tax,types of direct or
indirect tax.rates of various taxes 2008-09,procedure of taxes.
form of various taxes.when the taxes is filled?
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