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USPshnik [31]
2 years ago
14

In 2016, Chaya Corporation, an accrual basis, calendar year taxpayer, provided services to clients andearned $25,000. The client

s signed notes receivable to Chaya that have a fair market value of$22,000 at year-end. In addition, Chaya sold a 36-month service contract on June 1, 2016, and received payment in full of $12,000.
How much income does Chaya report from these transactions in 2016?
Business
1 answer:
Artemon [7]2 years ago
7 0

Answer:

$27,333.33

Explanation:

The computation of the amount of income reported is shown below:

= Provided services to the customer + Payment received × number of months ÷ given number of months

= $25,000 + $12,000 × 7 months ÷ 36 months

= $25,000 + $2,333.33

= $27,333.33

The seven months is calculated from the June 1 to December 31. We assume the books are closed on December 31

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The prepaid insurance account had a beginning balance of $4,500 and was debited for $16,600 of premiums paid during the year. Jo
trasher [3.6K]

Answer:

prepaid expense 15,500 debit

prepaid insurance 15,500 credit

Explanation:

<em>The amount of unexpired insurance will be the ending balance of the account</em>

4,500 debit

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+/- adjustment

5,600 ending

4,500 + 16,600 - 5,600 = 15,500

8 0
2 years ago
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A video game system is on sale for 25% off its original price. If the original price is $200, how much money will be saved?​
NeX [460]

Answer:

$50

Explanation:

25% = 1/4

200 / 4 = 50

50*3=150, which is 25% off.

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3 years ago
The national hockey league redirected its marketing efforts when a survey indicated that almost 50 percent of hockey fans were f
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"Demographic segmentation"
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3 years ago
Assume that Hotel Excellent uses activity-based costing to allocate hotel overhead to guests. In Hotel Excellent, if the budgete
Lyrx [107]

Answer:

c. $33.33 per housekeeping hour

Explanation:

The housekeeping department's activity rate is how much each housekeeping hour costs.

This question can be solved by a simple rule of three.

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So the correct answer is:

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5 0
3 years ago
At the beginning of a year, a company predicts total direct materials costs of $1,010,000 and total overhead costs of $1,270,000
marin [14]

Answer:

1.267 = Overhead Rate

Explanation:

<em>As general approach,</em> the manufacturing rate, along with any rate is done by dividing the cost by a cost driver.

\frac{Cost\:Of\: Manufacturing\: Overhead}{Cost\: Driver}= $Overhead \:Rate

In this case teh cost is the manufacturing overhead and the cost driver the direct materials cost:

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<em>Using Direct Materials cost, the rate would be:</em>

1.257425743= $Overhead Rate

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3 years ago
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