Answer:
c. $31,000
Explanation:
Calculation for the Net self-employment income
Gross receipts $100,000
Less Cost of goods sold ($49,000)
Less Depreciation expense ($5,000)
Less Utilities($6,000)
Less Real estate taxes ($1,000)
Less Sec. 179 expense ($1,000)
Less Mortgage interest ($7,000)
Net self-employment income $ 31,000
Therefore the Net self-employment income will be $ 31,000
Answer:
Charging Sales tax
Explanation:
Merchandising business is the kind of business, that buys or purchases the finished products and then resells them to the customers.
So, the merchandising business could act as a collection agency for the government through charging the sales tax. There is need to remit the government after collecting the tax and when it is done, the business will decrease the cash and the sales tax liability.
And it is the lability to the government until it is remitted by the business.
Answer:
c. debit to Bad Debts Expense for $6,900.
Explanation:
Allowance for Doubtful Accounts $1,100 credit balance,
Estimated Un collectibles $8000 credit
Required Adjustment $ 6900 credit
The adjustment to record bad debts for the period will require a
c. debit to Bad Debts Expense for $6,900.
Bad Debt Expense $ 6900 Dr
Allowance for Doubtful Accounts $ 6900 Cr
Alternatively if the allowance account had a debit balance the entry would have been posted adding the two amounts.
Answer:
See below
Explanation:
a. At the end of the year, before distribution, each shareholder's basis
= $400,000 + $100,000 + $50,000
= $550,000
b. After the distribution, each shareholder's basis is
= $300,000 + $200,000
= $500,000
c. Therefore, each shareholder has
$250,000 worth of dividend income.
