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3 years ago

An employee's commission is always based on total dollar sales. true or false

Business

1 answer:

gizmo_the_mogwai [7]3 years ago

5 0

Answer:

An employee's commission acts invariably on total sales and it is true.

Explanation:

An employee's commission is invariably based on entire sales. Commission only positions are not for the faint of heart, nor are they always the top-paying sales jobs available. but it depends on how much a person have achieved their target and how much they are to be paid. when they hit the target they are suited for the commission out of the sales the have made.

Differential pay is one of the way were you get fixed rate per unit that is produced.

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Closing the Accounts of a Merchandiser From the following list, identify the accounts that should be closed to Income Summary at

mixer [17]

Answer:

Advertising Expense , Cost of Merchandise Sold , Merchandise Inventory, Sales,Supplies Expense are closed to income summary account. Revenues and expenses are closed to Income Summary.

Explanation:

Closing Entries

a. Accounts Payable: No it is not closed to income summary account.

b. Advertising Expense: Yes it is closed to income summary account.

c. Cost of Merchandise Sold: Yes it is closed to income summary account.

d. Dividends : No these are closed To Retained Earnings Accounts.

e. Merchandise Inventory : Yes it is closed to income summary account

f. Sales Yes it is closed to income summary account

g. Supplies: No prepaid supplies are an asset account and it is included balance sheet.

h. Supplies Expense: Yes it is closed to income summary account

i. Wages Payable: Not closed in the income summary account.

These are liabilities and included in the balance sheet.

8 0

3 years ago

On October 10, the stockholdersâ€™ equity of Sherman Systems appears as follows.

aniked [119]

Answer:

Sherman Systems

1. Journal Entries

Debit Credit

a) October 11:

Treasury Stock $68,000

Additional Paid-in Capital $224,400

Cash $292,400

To record purchase of 6,800 shares at $43 per share.

b) November 1:

Cash $71,050

Treasury Stock $14,500

Additional Paid-in Capital $56,550

To record sale of 1,450 treasury shares at $49 per share.

c) November 25:

Cash $203,300

Treasury Stock $53,500

Additional Paid-in Capital $149,800

To record sale of 5,350 treasury shares at $38 per share.

2. Revised Equity Section of Sherman Systems' Balance Sheet as at October 11:

Common stock at“$10 par value,

90,000 shares authorized, issued, and outstanding $ 900,000

Paid-in capital in excess of par value, common stock 81,600

Treasury Stock (68,000)

Retained earnings 1,008,000

Total stockholders' equity $1,921,600

Explanation:

1. Additional Paid-in Capital:

Balance on October 10 $306,000

Treasury Stock ($224,400)

Balance on October 11 $81,600

2. Treasury Stock is a contra account to Common Stock. It represents the purchase of its own shares by a company. There are two methods for accounting for treasury stock. One is the par value method, where the adjustments for above or below par value are made in the Additional Paid-in Capital account. The other method is the costing method, where the adjustments for above or below par value are made in the Treasury stock.

3. The equity section prepared above is limited to the October 11 transaction. The transactions occurring on November 1 and 25 were not required by the question.

4. The remaining shares of the treasury stock reissued on November 25 is equal to 6,800 - 1,450 = 5,350 shares.

3 0

3 years ago

(Table: Cherry Farm) Use Table: Cherry Farm. If Hank and Helen have one of 100 farms in the perfectly competitive cherry industr

Dmitry_Shevchenko [17]

Answer:

500

Explanation:

please find attached the table referred to in this question and a second table where marginal cost is included

A perfect competition is characterised by many buyers and sellers of homogeneous goods and services. Market prices are set by the forces of demand and supply.

in a perfect competition, price = marginal cost = marginal revenue

Marginal cost = total cost 2 - total cost 1

e.g. marginal cost at 2 units of output = $7 - $2 = $5

Hank and Helen would supply at the point where marginal cost is equal to $5.

looking at the second attached table, there are two points where marginal cost is equal to $5. at output 1 and output 5.

at output one, Hank and Helen would be earning a loss because total cost is greater than total revenue. so they would not supply at this point.

at output five, Hank and Helen would earn a profit and thus would supply at 5 units of output.

Since all firms face and identical cost structure, the industry supply would be 100 x 5 = 500 pounds

6 0

3 years ago

Complete the balance sheet and sales information in the table that follows for J. White

deff fn [24]

Answer:

Sales $600,000

Cost of Goods Sold $450,000

Cash $28,000

Accounts payable $110,000

Accounts receivable $60,000

Inventory $120,000

Common Stock $140,000

Fixed Asset $192,000

Total Liabilities and equity $400,000

Explanation:

1.To compute the missing amount of sales, we must look for the data given that has something to do with sales. And the two data given that will give us the hint are the Asset turnover and the total asset.

ASSET TURNOVER = Net Sales / Total Asset

1.5 = Net Sales * $400,000

Net Sales = 1.5 * $400,000

Net Sales = $600,000

To check if the answer is correct:

$600,000 / $400,000 = 1.5 which is equal to the data given

2. The Sales has been computed above and Gross profit margin on sales is present, these are the hint we needed to compute the Cost of goods sold.

Sales 100%

Less: Gross profit margin on sales 25%

Cost of goods sold ratio on sales 75%

Therefore, $600,000 x 75% (ratio on sales) = $450,000

3.ACCOUNTS RECEIVABLE

It is impossible to compute the cash based on the data given without the accounts receivable. So, let's compute the accounts receivable beforehand.

The additional hint that we have is the Days sales outstanding (based on 365-day year).

Days sales outstanding = Accounts receivable / (Annual credit sales / 365 days)

36.5 days = Accounts receivable / ($600,000 / 365)
Accounts receivable = 36.5 * ($600,000 / 365)
Accounts receivable = $60,000

To check our answer:

$60,000 / ($600,000 / 365)

$60,000 / 1,643.84

36.5 days

4. ACCOUNTS PAYABLE

Next missing item that we will compute is the accounts payable. The hint that we have that is related to the computation of accounts payable is the Liability to asset ratio.

FORMULA :

Liability to asset ratio = Total Liabilities / Total Assets

40% = Total Liabilities / $400,000

Total Liabilities = 40% * $400,000

Total liabilities = $160,000

To Check:

$160,000 / $400,000 = 40% which is equal to the data given

Next Step, Compute accounts payable (the only current liability account in the given partial income statement). Long term debt is the only non-current liability on the data given, which means it is the only account that is included in the total liability of $160,000.

So, $160,000 less $50,000 = $110,000 (accounts payable)

5. CASH

We can now compute the cash based on the accounts already computed above. The additional hint that we have is the quick ratio. Quick ratio is the quotient of Cash & cash equivalent plus Marketable securities (which is not present in the data given, therefore ignore) plus the accounts receivable over the current liability.

Computation:

0.80 = (Cash + Marketable security + Accounts receivable) / current liability

0.80 = (Cash + Accounts receivable) / $110,000

Cash + Accounts receivable = 0.80 * $110,000

Cash + Accounts receivable = 88,000

Cash + $60,000 = $88,000

Cash = $88,000 - $60,000

Cash = $28,000

6. INVENTORY

To compute the inventory, we need the inventory turn-over hint.

Inventory turn-over = Cost of goods sold / Average inventory

3.75 = $450,000 / Ave inventory

Average inventory = $450,000 / 3.75

Average inventory = $120,000

to check:

$450,000 / $120,000 = 3.75 which is equal to the data given

7. COMMON STOCK

Total asset = Liabilities + Equity

$400,000 = $160,000 +?

$400,000 - $160,000 = $240,000

Equity is composed of common stock and retained earnings. Therefore, $240,000 - $100,000 (Retained earnings) = $140,000 (common stock)

8. FIXED ASSET

It is the only asset account that is missing after we computed cash, accounts receivable and inventory. Therefore total assets less current assets equals fixed assets.

$400,000 - ($28,000 + $60,000 + $120,000)

$400,000 - $208,000

$192,000 (fixed assets)

9. TOTAL LIABILITIES AND EQUITY

Current liability + Non-current liability + Common stock + Retained earnings

$110,000 + $50,000 + $140,000 + $100,000

$400,000

6 0

3 years ago

10. Which of the following is an example of system software?

OLEGan [10]

Answer:

The computer's OS is a well-known example of system software. Widely used operating systems include Microsoft Windows, Mac OS and Linux.

8 0

2 years ago