All categories

2 years ago

Question 15 of 20

Business

1 answer:

stepladder [879]2 years ago

3 0

Answer:

Explanation:

i believe it could also be c

You might be interested in

During the month of May, a company performed $2,400 of cash services and $3,300 of services on account. The journal entry at the

Tanya [424]

Answer:

Debit : Cash $2,400

Debit : Account Receivables $3,300

Credit : Revenue $5,700

Explanation:

Revenue is recognized when a firm transfers the control of goods or services not when paid.

So this journal must both recognize the Assets in Cash and Assets in Trade Receivables since control for the services has already been transferred.

The journal entry at the end of the month to record this transaction would be :

Debit : Cash $2,400

Debit : Account Receivables $3,300

Credit : Revenue $5,700

3 0

3 years ago

Riverbed Company sells goods that cost $320,000 to Ricard Company for $407,000 on January 2, 2020. The sales price includes an i

Alecsey [184]

Answer:

a) Journal entries to record the sale on January 2, 2020:

Debit Accounts Receivable with $407,000

Credit Sales Account with $368,500

Credit Deferred Revenue (Installation Fee) with $38,500

Being sales of goods and installation services.

b) Income Statement for 1st Quarter of 2020

Sales - $368,500

Installation Fee - $19,250

Total Income - $387,750

less cost of sales - $320,000

Net Income - $67,750

c) The revenue Shaw should recognize in relation to the sale to Ricard is $387,750 (goods and accrued installation fee). The installation fee to be recognized is for 3 months only.

Explanation:

The installation fee is for 6 months. Therefore, 3 months' worth of fee will be recognized in the income statement ending on March 31, 2020.

7 0

3 years ago

Which of the following resources is most helpful to learn more about careers?

ASHA 777 [7]

A. The Occupational Outlook Handbook

4 0

3 years ago

Read 2 more answers

The freeze which destroyed a good portion of the South American coffee crop in the mid-1970s increased the price of tea. Explain

Anarel [89]

Answer:

attached diagrams

Explanation:

As the freeze decrease teh output of coffee the supply decreased heavily. This make the price of coffee go up which decreased demand. This makes consumer move to substitute goods like tea making increase their demand. This ended with a greater price of both, coffee and tea.

6 0

3 years ago

The Whistling Straits Corporation needs to raise $72 million to finance its expansion into new markets. The company will sell ne

Alisiya [41]

Answer:

1,390,718 shares

Explanation:

Amount to be raise = $72 million

Underwriters charges = 5%

Filling Fee = $700,000

After deducting the underwriters charges the amount remains 95% of the total value. The company needs to raise exact $72 million after all charges deducted so, will take this amount as 95% of the total and gross up this value to 100%.

Total Amount to be raised = Amount including the underwrites charge + Filling charge = ( $72,000,000 / 100% - 5% ) + $700,000 = $76,489,474

Share price = $55

Numbers of share = $76,489,474 / $55 = 1,390,718 shares

8 0

3 years ago