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3 years ago

A company bills customers for services rendered on account. Which of the following is part of recording this transaction?

Business

1 answer:

Helga [31]3 years ago

6 0

Answer:

c. Increase account receivable

Explanation:

The journal entry for the record this transaction is

Accounts receivable A/c Dr XXXXX

To Service revenue A/c XXXXX

(Being the service is rendered on the account is recorded)

This transaction increases the account receivable as well as the service revenue account so the respective account is debited and credited.

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Bright Slope Corp. has provided the following information:Balance SheetCash $ 10,000 Accounts Payable $ 5,000Marketable Securiti

Julli [10]

Answer:

Answer : Retained earning = 61400

Explanation:

Sales next year (100000+20000) = 120000

Increase in sales = 120000-100000/100000= 20%

Current profit margin = 7500/100000= 7.5%

Dividend Payout ratio = Dividend / net jncome = 3000/7500 = 40%

New profit margin = 120000 x 7.5% =9000

New Dividend = 9000 x40% = 3600

Performance Balance sheet

Cash 10000(1+0.2) 12000

Marketible securities (no change) 5000

Account Receivable 25000(1+0.02) 30000

Inventory 35000(1+0.02) 42000

Total Current Asset 89000

Net Fixed Asset (80000+12000) 92000

Total Asset 181000

Accounts payable 5000(1+.02) 6000

Accruals 2000(1+.02) 2400

Notes Payable 8% (no change as rolled over) 12000

Total Current Liabilities 20400

Long Term Debt 10% 48000

Common stock 32000

Retained Earning 61400

Balancing figure (additional funding) 19200

181000

Retained earning = Old balance + (Current year net income - dividend paid)

56000+ ( 9000-3600) =61400

2) changes in working capital.

Working capital means Current asset - current liabilities

Earlier it was 75000 - 19000 = 56000

Now its 89000 - 20400 = 68600

Working capital has been increased by 68600 - 56000 =12600

(working capital is the amount needed to run business day to day activities.)

Although sales increased by 20% but working capital doesn't increase by 20% because payable were rolled over. So its bad management as company management is expanding its businesses not from current business retained earning but by deferring payables

8 0

3 years ago

Aaron has designed innovative accessories for hard-core bicycling enthusiasts.He knows where and how he will make them,and he ne

Elza [17]

Answer: Encouraging new bicycling enthusisasts

Explanation:

From the question, we are informed that Aaron has designed innovative accessories for hard-core bicycling enthusiasts and the he knows where and how he will make them,and he needs to turn his attention to the getting the products to the customers.

As he chooses retail partners, the least important in this process is encouraging new bicycling enthusiasts

5 0

3 years ago

Given the following data for Glennon Company, compute (A) total manufacturing costs and (B) costs of goods manufactured: Direct

larisa [96]

Answer:

cost of goods manufactured= $990,000

COGS= $1,010,000

Explanation:

Giving the following information:

Direct materials used $360000

Beginning work in process $40000

Direct labor 280000

Ending work in process 20000

Manufacturing overhead 330000

Beginning finished goods 50000

Operating expenses 430000

Ending finished goods 30000

First, we need to calculate the total manufacturing costs:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 40,000 + 360,000 + 280,000 + 330,000 - 20,000

cost of goods manufactured= 990,000

Now, we can determine the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 50,000 + 990,000 - 30,000= $1,010,000

7 0

3 years ago

Which of the following is added to net income to reconcile to cash from operations?

skad [1K]

Answer:

E. None of the above

Explanation:

The only two accounts that you must add to net income are the amortization and depreciation

In order to reconcile net income to cash from operations the Amortization and Depreciation must be added to Net Income.

Why? because These accounts: Amortization and Depreciation are not cash accounts. This means that the figures in amortization and Depreciation are not actual outflows of cash but just a bookkeeping figure.

7 0

3 years ago

Product X-547 is one of the joint products in a joint manufacturing process. Management is considering whether to sell X-547 at

Katena32 [7]

Answer:

b. 1,2,3,4

Explanation:

Lets first understand what relevant cost is? Relevant cost is any cost that influences the decision of a decision maker. Therefore, the first four items are relevant in the decision of whether to sell the X-547 or to further process it.

Explanation for each item is as follows:

1- Selling price of X-547:

The selling price is relevant because it will help to determine the revenue generated from selling X-547 at the split off point and which could also be used for comparative purposes, if suppose the decision of further processing is chosen.

2- Variable cost of processing X-547 into Xylene:

The variable cost of processing X-547 is indeed relevant too, because at this stage management is not in a position to take a decision until they explore the possibilities coming out of processing X-547, therefore, in order to come to a decision making position the management will need to know the variable cost of processing X-547, making it relevant in the decision.

3- The avoidable fixed costs of processing X-547 into Xylene:

There is sometimes a fear (i.e fear of increase in step-fixed costs as a result of processing a product or fear of loss of control over costs) felt by the management when trying to process certain products for further development therefore those fixed costs which can be avoided during processing X-547 can also influence (i.e encourage) the decision of further processing X-547, making it relevant.

4- The selling price of Xylene:

The last but not the least, the selling price of Xylene. If the management finds that if X-547 is further processed into Xylene and it sells at a highly favorable/lucrative price, creating a huge margin for them then definitely they would be encouraged to taking the decision of further processing it.

5 0

3 years ago