The complete question is as under:
Allen Company is hired on December 15, 2016 to perform services, beginning on December 16, 2016. Under this agreement, Allen will earn $4,500 monthly and receive payment on January 15, 2017. What amount of service revenue should be recorded for the year ending December 31, 2016?
A. 0
B. $4500
C. $2250
D. There is not enough information to answer this
Answer:
Option C- $2250
Explanation:
Option C is correct because according to the accrual accounting, the salary that has be accrued for the services rendered by the Allen company will earn monthly $4500 on every 15 of the month. On 31 December, the half of the $4500 has been earned by the Allen and the company owes him in legal terms $2250 (Half of $4500). This means the Allen Company must recognize its sale $2250 and the company that contracted Allen must recognize expenses of $2250 at 31 December, 2017.
Answer:
Break-even point= 150,000 hangers
Explanation:
Giving the following information:
It charges $0.04 and estimates its variable cost to be $0.01 per hanger. Laguna’s total fixed cost is $4,500 per month.
To calculate the number of hangers we need to use the following formula:
Break-even point= fixed costs/ contribution margin
Break-even point= 4,500 / (0.04 - 0.01)= 150,000 hangers
Answer: 1. Formal.
2. Letter
3. Mr. Gallegos’s friends and family who might also be customers and, Your boss.
4. Send news about the promotion recommendation in a separate e-mail.
Explanation:
1. Formal
Although Mr. Gallegos is a long term customer and as such can be spoken to in friendly tones, it is important that Formal tones are used especially as this is a rejection. There should be no room for unseriousness.
2. Out of the options given, a LETTER would be best. This is because the other mediums expressed are instant while a letter is not. The letter will give one the opportunity to properly list reasons why the request was rejected so that the recipient can understand the logic.
3. •Mr. Gallegos’s friends and family who might also be customers and,
•Your boss
Mr Gallegos will likely inform his friends and family who are customers especially because the reply is in the negative to share his disappointment.
As it is an official refusal, your boss would need to be informed of the correspondence as well.
4. Send news about the promotion recommendation in a separate e-mail.
A recommendation for a promotion is a personal thing. It should only be shared with the person affected and as such the recommendation should be sent in a separate email. Sending it separately also reduces discord in the team as they won't feel and murmur like they should have gotten a promotion as well considering they also put in work.
Answer:
$38,851 approx
Explanation:
As per the information provided in the question, the minimum annual rate of return would be at-least equal to the usual rate of return the investor (here uncle) earns. Here it is 9% per annum.
Anything earned below this rate of return will not satisfy the investor since this represents the minimum required rate of return.
A=
Where A= Amount
P= Principal
r= Annual Rate Of Interest
n= period of loan
Therefore, A=
A= $38,850.87 or $38,851 approx.