The correcting entry is:
C. Debit Cash $540
Service Revenue $280
Credit Accounts Receivable $820
<u>Explanation</u>:
Service revenue is report generated regarding the sales provided to its customers by a business. Generally the revenue will be billed. The revenue can be recognized even it is not billed.
Service Revenues are always mentioned in the income statement maintained by the company. Balance due is the amount owe by the customer. Revenues are considered as the subdivision of retained earnings. Usually some of the business events were not recorded, so the entries adjustment is made often.
The statement in option D is FALSE. An investor must understand the kind of investment he want to put his money on. Individuals should be actively involved in choosing a mutual fund because they know their own reasons for investing in the first place.
Answer:
The correct answer is option (D).
Explanation:
According to the scenario, computation of the given data are as follows:
Rent (Fixed cost) = $1,000
Wages (variable cost )= $6,000
Fabric and thread (variable cost)= $1,500
Electricity (Fixed cost )= $500
So, we can calculate the total variable cost by using following formula:
Total variable cost = Wages + Fabric and thread cost
= $6,000 + $1,500
= $7,500
Answer:
Dr Interest Receivable $240
Cr Interest Income $240
Explanation:
The reason is that the Techcom company is lender and must account the lending as a loan.
The loan will be paid with the interest at the end of the period. The interest received at the end of December 31 would be the single month loan at the $4800 at the interest rate which is 10 percent here.
The Interest Income = $4800 * (10% interest rate * 2/12) = $240
The interes would be recorded for the two months which is $240 and accounted for as under:
Dr Interest Receivable $240
Cr Interest Income $240
And at the end of January 31, Teller will make the payment which would be accounted for as under:
Dr Cash $5260
Cr Interest Revenue $120
Cr Notes Receivable $4800
Cr Interest Receivable $240
Answer:
$65,000
Explanation:
Computation of the given data are as follows:
Direct material cost = Beginning balance + Purchase - Ending balance
Where, Beginning balance = $37,000
Purchase = $57,000
Ending balance = $29,000
So, by putting the value in the formula, we get
Direct material cost = $37,000 + $57,000 - $29,000
= $65,000
