Answer: A. Debit to Unearned Consulting Fees for $1,200
Explanation:
Following the information given in the question, Vinfast Co. receives $3,600 cash from FPT Co. for consulting services to be provided evenly over the period November 1, 2021, to April 30, 2022.
Since we want to know the adjusting entry on December 31, 2021, a period form November 1, 2021 to December 31, 2021 is a period of two months out of the 6 months period. Therefore, the unearned consultancy fee will be:
= $3600 × 2/6
= $1200
Therefore, there'll be a debit to the unearned consulting Fees for $1,200. Also, there'll be a credit to the consulting fees earned account by $1200.
Answer:
B. Depreciation allocates replacement values as part of the matching of revenues and expenses.
Explanation:
Depreciation allocates replacement values as part of the matching of revenues and expenses is not entirely true about depreciation accounting.
Answer:
a1. 60 days
a2.Remittance = $40,500
b1- 1 % discount offered
b-2, 10days
b-3 =$40,095 ± 0.1
c-1 Implicit interest $405 ± 0.1%
c-2 Days' credit days=50 days
Explanation:
a1. 60 days
a2.0rder for 300 units of inventory at a unit price of $135
Remittance = 300($135)
Remittance = $40,500
b- 1 % discount offered
b-2, 10days
b-3 Remittance (1- 0.01) $40,500
(0.99)$40,500
Remittance =$40,095 ± 0.1%
c-1 Implicit interest $40,500- $40,095
Implicit interest $405 ± 0.1%
c-2
Days' credit days 60-10
Days' credit days=50 days
