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1 year ago

In the capitalization versus expensing case the main ethical issue is whether gloria hernandez should?

1 answer:

4 0

In the capitalization versus expensing case the main ethical issue is whether Gloria Hernandez should capitalize or expense one millions dollars of expenditures.

<h3>What is meant by capitalization?</h3>

This is the term that is used in accounting to talk about the fact that an item can be recorded as an asset. What this means is that the expenditure is going to be made to appear in the balance sheet and it would not have to appear in the income statement.

Hence we have to say that In the capitalization versus expensing case the main ethical issue is whether Gloria Hernandez should capitalize or expense one millions dollars of expenditures.

Read more on capitalization here: brainly.com/question/1293334

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Marketing by a service firm to effectively train and motivate its customer-contact employees and all the supporting service peop

ikadub [295]

Answer:

Internal

Explanation:

As the name implies, internal marketing is one in which a service firm trains employees in a product's company and its customers' contact to ensure maximum customer satisfaction. Internal marketing means that every member of staff is involved in marketing and not just the marketing department of the firm.

Cheers.

7 0

3 years ago

Chamonix Chateau Rentals. You are planning a ski vacation to Mt. Blanc in Chamonix, France, one year from now. You are negotiati

nata0808 [166]

Answer:

The budgeted $ amount is $13,680.88

Explanation:

The purchasing power parity formula gives us an idea what an exchange spot rate would be in future period using the below formula:

Future spot rate=current spot rate*(1+US inflation)/(1+French inflation)

current spot rate=$1.3620

US inflation rate is 2.50%

French inflation is 3.50%

Future spot rate=$1.3620*(1+2.5%)/(1+3.5%)

future spot rate=$1.3488

The weekly cost of vacation would also be adjusted for inflation rate in France as follows:

Adjusted price=9800*(1+3.5%)=10143

Hence the cost of the one week rental would be 10143 multiplied by the future spot exchange rate of 1.3488 i.e $ 13,680.88 (10143*1.3488)

7 0

3 years ago

Harris Company uses the allowance method of handling its credit losses. It estimates credit losses at one percent of credit sale

likoan [24]

Answer:

Dec.31 Bad Debts Expense 27000

December 31 Balance Sheet Accounts Receivable 392400

Explanation:

Harris Company

Credit Sales for the current year $2700,000

Credit Losses = 1% of $ 2700,000= $ 27000

Add Allowance for Doubtful Accounts $ 30600 Cr

Required Adjustments $ 57,600 Cr

General Journal

Date Description Debit Credit

Dec.31 Bad Debts Expense 27000

Allowance for Doubtful Accounts 27000

December 31 Balance Sheet.

Accounts Receivable $450,000

Less: Allowance for Doubtful Accounts $57,600 ( 27000+ 30,600)

Accounts Receivable 392400

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3 years ago

Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho

Fofino [41]

Answer:

$6,765

Explanation:

The total cost for job K913 is given by the sum of the costs with manufacturing overhead (fixed and variable), direct materials (M) and direct labor (L).

Since the company uses a predetermined overhead rate based on direct labor-hours, the overhead cost for job K913 is:

$O = F+V\\O=\frac{150*\$511,000}{70,000} +150*\$2.10\\O=\$1,410$

The total cost for the job is:

$C=O+M+L\\C=\$1,410+\$705+\$4,650\\C=\$6,765$

The total job cost for Job K913 is closest to $6,765.

8 0

3 years ago

McKinnon Enterprises owns a professional ice hockey team, the Rockford Penguins. The company sells season tickets for its upcomi

lesantik [10]

Answer:

$320,000

Explanation:

Since the season starts in January and lasts until June, by April 30 the balance of the deferred revenue (or unearned revenue account) would be = $960,000 - {($960,000 / 6) x 4} = $960,000 - $640,000 = $320,000

The journal entries should be:

Accumulated tickets until December 31

Dr Cash 960,000

Cr Deferred (Unearned) revenue 960,000

By April 30th, the adjusting entry should be:

Dr Deferred (Unearned) revenue 640,000

Cr Ticket revenue 640,000

7 0

3 years ago