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1 year ago

Assume a company has a $350 credit (not cash) sale. how would the transaction appear if the business uses accrual accounting?

1 answer:

6 0

The way that the transaction is going to appear if it makes use of accrual accounting is that $350 would show up on the income statement as a sale.

<h2>What is meant by accrual accounting?</h2>

This is what is also referred to as accrual based accounting. This type of accounting is one that has the transactions and all recorded in the books of accounts in such a way that they would reflect even though the service or the goods for which the payment is being made has not been received.

Hence from the explanation that we have here, the The way that the transaction is going to appear if it makes use of accrual accounting is that $350 would show up on the income statement as a sale.

Read more on accrual accounting here: brainly.com/question/14921038

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You borrow $210,000 to purchase a home. the terms of the loan call for monthly payments over 30 years at a mortgage rate of 4.50

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First step, find the monthly payments.
Borrowed amount, P = 210000
Monthly interest, i = 0.045/12
Number of periods, n = 30*12=360

Monthly payment
$A=\frac{P(i*(1+i)^n)}{(1+i)^n-1}$
$=\frac{210000(0.045/12*(1+0.045/12)^360)}{(1+0.045/12)^360-1}$
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2. Calculate interest accumulated over 60 months
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3. Calculate value of payments
$F=\frac{A((1+i)^n-1)}{i}$
$=\frac{1064.039150634359((1+0.045/12)^{60}-1)}{0.045/12}$
$=71445.50$ to the nearest cent

4. Calculate percentage of interest paid
A. as a fraction of future values
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=52877.12/71445.50
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3 years ago

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D) $17,500 gain.

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Wells Company should record the following transactions:

Dr Cash account 40,000
Dr Accumulated Depreciation Vehicles account 47,500
Cr Vehicle account 70,000
Cr Gain on Disposal account 17,500

$40,000 in cash was received and the accumulated depreciation balance should equal to zero, therefore they must be debited.

The vehicles account balance should equal zero and the rest is gain on disposal, therefore they must be credited.

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