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Zolol [24]
3 years ago
7

Pharoah Company began operations in July 2020. At the end of the month, the company prepares monthly financial statements. It ha

s the following information for the month. 1.At July 31, the company owed employees $1,100 in salaries that the company will pay in August. 2.On July 1, the company borrowed $20,000 from a local bank on a 10-year note. The annual interest rate is 12%. 3.Service revenue unrecorded in July totaled $3,000. Prepare the adjusting entries needed at July 31, 2020.
Business
1 answer:
abruzzese [7]3 years ago
3 0

Answer:

1.At July 31, the company owed employees $1,100 in salaries that the company will pay in August.

July, 31

DR Salaries Expense.................................................$1,100

CR Salaries Payable.................................................................$1,100

<em>(To record accrued salaries expense)</em>

2.On July 1, the company borrowed $20,000 from a local bank on a 10-year note. The annual interest rate is 12%.

July entry would be;

July 31,

DR Interest Expense ................................................$200

CR Interest Payable ............................................................$200

<em>(To record interest accrued for the month)</em>

<u>Working</u>

= 20,000 * 12%/12 months

=  $200

3. Service revenue unrecorded in July totaled $3,000.

July 31,

DR Accounts Receivable .......................................$3,000

CR Service Revenue ...............................................................$3,000

<em>( To record unrecorded Service revenue.)</em>

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Raven Company has a target of earning $71,200 pre-tax income. The contribution margin ratio is 16%. What amount of dollar sales
Jlenok [28]

Answer:

$685,000  

Explanation:

First and foremost, the formula for determining the contribution margin ratio can be used to determine the target dollars sales as shown below:

contribution margin ratio=contibution margin/sales revenue

contribution margin ratio=16%

contribution margin required=pretax income+fixed costs

contribution margin required=$71,200+$38,400=$109,600  

16%=$109,600/sales revenue

16%*sales revenue=$109,600

sales revenue=$109,600/16%

sales revenue=$685,000  

6 0
2 years ago
a publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects
lidiya [134]

If the publisher actually sells 1300 textbooks:

  • C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.

The publisher will earn more revenue because it will sell the additional 300 textbooks at the regular price. The cost of printing the additional textbooks is less than the revenue generated from selling them.

<h3>The Benefits of Printing More Textbooks</h3>

In today's competitive marketplace, publishers must be strategic in their planning in order to maximize profits. One way to do this is to print more copies of a popular book than initially anticipated. This may seem counterintuitive, but if a publisher knows that a book is in high demand, printing more copies can actually lead to more profits.

There are several reasons for this. First, by printing more copies, the publisher can sell the book at a lower price point, making it more affordable for students and increasing the likelihood of sales. Second, the publisher can sell the additional copies to other bookstores or distributors, who may be willing to pay a higher price for them. Finally, if the publisher knows that a book is in high demand, printing more copies can help to ensure that the book remains in stock and available for purchase, preventing lost sales due to a lack of inventory.

Overall, printing more copies of a popular book can be a wise decision for a publisher, as it can lead to increased sales and profits. By being strategic and proactive, publishers can stay ahead of the competition and keep their business thriving.

<h3>The complete question: </h3>

A publisher has copies of a philosophy book in its inventory, but it produces 1,000 copies of the book in august that it expects to sell in the upcoming academic year. the price of the book is $120. if the publisher actually sells 1,300 textbooks, then:

  • A. the publisher will lose money on the sale of the textbooks.
  • B. the publisher will earn exactly enough revenue to cover the cost of printing the textbooks.
  • C. the publisher will earn more revenue than it would have earned if it had not printed the additional 300 textbooks.
  • D. the publisher will earn less revenue than it would have earned if it had not printed the additional 300 textbooks.

Learn more about publishers :

brainly.com/question/25817628

#SPJ4

3 0
1 year ago
Kenneth Corporation expects to incur indirect overhead costs of $166,400 per month and direct manufacturing costs of $22 per uni
Eva8 [605]

Explanation:

The computation is shown below:

1.  For Predetermined overhead rate

Predetermined overhead rate = (Total estimated manufacturing overhead for 4 months) ÷ (Total number of units)

where,

Total estimated direct manufacturing cost is

= $166,400 × 4 months

= $665,600

And, the total number of units is

= 4,700 units + 8,700 units + 4,300 units + 7,900 units

= 25,600 units

So, the predetermined overhead rate is

= $665,600 ÷ 25,600 units

= $26 per unit

2. Now the allocated cost for each month is shown below:

For January

= 4,700 units × $26

= $122,200

For February

= 8,700 units × $26

= $226,200

For March

= 4,300 units × $26

= $111,800

For April

= 7,900 units × $26

= $205,400

c. Now the total cost per unit is

= $22 + $26

= $48 per unit

5 0
3 years ago
Among the guiding principles of six sigma are:
Rudik [331]

Answer:

E. I, II, and IV only

Explanation:

Six sigma is a management technique that involves measuring the number of defective products resulting from production activities, and carefully undergoing certain processes to reduce these defects and improve quality.

The DMAIC cycle is an important process when using the six sigma technique. It involves;

• Defining the goals and objectives to be achieved and problems to be fixed.

• Measuring the production process to see how it currently performs and gathering data on defective products.

• Analysing the processes to find root causes of problems and possible causes of defects.

• Improving the process by implementing carefully formed plans which will help reduce defects.

• Controlling how the new processes are implemented to yield and sustain favorable results and deliver value to customers.

Six sigma aims to remove variations from business processes to reduce product defects and improve quality.

8 0
2 years ago
In a matrix organization, each employee reports to a functional and a(n) __________ manager.
Fofino [41]
The answer is project. <span>In a matrix organization, each employee reports to a functional and a(n) project manager. you can look it up on quizlet.</span>
7 0
3 years ago
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