Answer:
b. credit to Rent Revenue of $3,200
Explanation:
Cash collected in advance results in the the creation of an asset and a liability. Hence a debit to cash account and a credit to deferred revenue. When the revenue is earned, it is recognized as a credit to revenue and a debit to deferred revenue with the amount earned.
Amount earned as at December 31
= 1/3 × $9,600
= $3,200
Entries required
Debit Deferred Rent revenue $3,200
Credit Rent Revenue $3,200
Being entries to recognize revenue earned as at December 31
Answer:
Current ratio- 2.03 2.33 1.73 and Acid-test ratio- 0.98 0.43 0.60
Explanation:
Attach is the table of given cases
Acid test ratio= 
Now, solving for acid test ratio.
<u>Case x</u>
⇒ Acid test ratio= 
⇒ Acid test ratio= 
∴ Acid test ratio= 
<u>Case y</u>
⇒ Acid test ratio= 
⇒ Acid test ratio= 
∴ Acid test ratio=
<u></u>
<u>Case Z</u>
⇒ Acid test ratio= 
⇒ Acid test ratio= 
∴ Acid test ratio= 
Next solving for current ratio.
We know, current ratio= 
<u>Case x</u>
⇒ current ratio= 
∴ current ratio= 
<u>Case y</u>
⇒ current ratio= 
∴ current ratio= 
<u>Case Z</u>
⇒ current ratio= 
∴ current ratio= 
Hence, Current ratio- 2.03 2.33 1.73 and Acid-test ratio- 0.98 0.43 0.60
Answer:
True
Explanation:
A company manager should be able to appraise its operations profit and capital used to generate the profit.
Answer:
-$55 U
Explanation:
For computation of activity variance for supplies cost in March first we need to find the budgeted activity of standard supplies cost and actual activity of standard supplies cost is shown below:-
Budgeted activity of standard supplies cost = Supplies cost + Per frame cost × budgeted Activity frames
= $1,730 + $11 × 613
= $1,730 + $6,743
= $8,473
Actual activity of Standard supplies cost = Supplies cost + Per frame cost × Actual activity frames
= $1,730 + $11 × 618
= $1,730 + $6,798
= $8,528
So, activity variance for supplies cost = Budgeted activity of standard supplied cost - Actual activity of Standard supplies cost
= $8,473 - $8,528
= -$55