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Juliette [100K]
3 years ago
10

on september 1, best company began a contract to provide services to dilwood company for 6 months, with the total of $10800 paym

ent to be made at the end of the six month period. equal services are provided each motnth. the firm usees the account fees receivable to reflect amounts due but not yet bulled. what propoer adjusting entry would best company make on devcember 31, the end of the accounting period (no previous adjustment has been made)
Business
1 answer:
Lelu [443]3 years ago
7 0

Answer:

Fee Receivable$7,200

             To Service Fees Earned $7,200

(Being the service fess earned is recorded)

Explanation:

Th adjusting entry is shown below:

Fee Receivable$7,200

             To Service Fees Earned $7,200

(Being the service fess earned is recorded)

For recording this we debited the fees receivable as it increased the assets and credited the services fees earned as it increase the revenues

Since the payment is made for 6 months but we have to recorded for 4 months i.e computed from September 1 to December 31

= $10,800 × 4 months ÷ 6 months

= $7,200

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Answer: Decider

Explanation:

Janice functions as a decider her family, where she decides the kind of cereal her children would consume. A decider is simply a person in charge of making decisions on an issue.

5 0
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Heathcote Corporation is a manufacturer that uses job -order costing. The company closes out any over-applied or under-applied o
valentinak56 [21]

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I'm figuring this out for you!

5 0
3 years ago
Select the false statement from the following.
lesantik [10]

Answer: Option C.

General,selling and administrative cost cannot be assigned to a cost object.

Explanation:

General, selling and adminstrative cost is the total of both direct and indirect selling cost, administrative cost and all general cost of the organisation. This cost include all the non production cost that they company incured at a specific time bond i.e cost to sell, cost to deliver product and services, rent, cost to manage the company, marketing expenses, salaries, accounting, bonuses e.t.c.

It is not assigned to a cost object because it is general ,cost of selling, and administrative cost.

7 0
2 years ago
On December 31, 2020, American Bank enters into a debt restructuring agreement with Barkley Company, which is now experiencing f
Setler79 [48]

a) Since the debt modification is <u>substantial</u>, more than 10%, the gain to be recorded by Barkley Company, $600,000, will be equal to the loss recorded by American Bank under the debt restructuring.

b) Barkley Company can record a Profit under the term modification above because it is a <u>substantial</u> debt modification, with a gain of $600,000, which is 20% of the original debt.

c. The preparation of the Interest Payment Schedule is as follows:

Period        PV                        PMT             Interest                     FV

1        $2,400,000.00    $621,565.76        $34,262.40        $1,812,696.64

2         $1,812,696.64    $621,565.76        $25,878.06        $1,217,008.93

3         $1,217,008.93    $621,565.76         $17,374.02             $612,817.19

4             $612,817.19    $621,565.76          $8,748.58           $0.00

<h3>What is a debt modification?</h3>

A debt modification is the restructuring of debt to enable the debtor experiencing financial difficulties to regain the financial muscle to settle the restructured debt.

Debt modification can affect the following debt terms:

  • The amounts
  • Timing of interest payments
  • Timing of principal repayment
  • Rate of interest.

<h3>Data and Calculations:</h3>

12% Note Payable = $3,000,000

Revised 10% Note Payable = $2,400,000

Gain on Debt Modification = $600,00

Extended Maturity Period = 4 years

Learn more about debt modifications at brainly.com/question/1490221

5 0
1 year ago
On December​ 31, Sulfur Corporation has the following data​ available: Net Income $ 140 comma 000 Market price of one share of c
GarryVolchara [31]

Answer:

Earnings per share

= <u>Net income - Preferred dividend</u>

 No of common stocks outstanding

= <u>$140,000 - $40,000</u>

   300,000 shares

= $0.33 per share

Price-earnings ratio

= Market price per share

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=  <u>$6.00</u>

   $0.33

= 18

Explanation:

There is need to calculate earnings per share, which is net income minus preferred dividend divided by number of common stocks outstanding at the end of the year. Finally, we will calculate price-earnings ratio, which is the ratio of market price per share to earnings per share.

7 0
3 years ago
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