Answer:
The journal entry for Rasheed company on April 1,2020 will be:
Account title Dr Cr
Cash 192,000
Finance charge 8,000
Notes payable 200,000
Finance charge = $400,000 x 2% = 8,000
Notes Payable = 200,000
Cash = 200,000 - 8,000 = 192,000
There are two shoe stores in a small town. Store a is selling a pair of running shoes for $ 39.50. If it costs Store a $ 40 to order this pair of shoesfrom the factory, then Store A is practicing predatory pricing.
This store is most likely selling running shoes below the cost of production to drive the other shoe<span>store out of business or at least to discourage them from selling the same running shoe.</span>
Answer:
Elon Musk is good at juggling multiple tasks.
Explanation:
right on edge
The three main sources of federal tax revenue are individual income taxes, payroll taxes, and corporate income taxes. Other sources of tax revenue include excise taxes, the estate tax, and other taxes and fees.
Answer:
The effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
The error does not have effect on the 2004 ending retained earnings balance.
Explanation:
Let the amount of the commission expense be xxxx.
At the end of 2003, the journal entries should have been as follows:
Debit Commission expense for xxxx
Credie Commission payable for xxxx
Also, we have:
Working capital = Current assets – Current liabilities ………… (1)
From equation (1), current liabilities are understated because commission payable which was not recorded is an item under current liabilities. Since the current liabilities are understated, that indicates that the working capital in equation is overstated. Therefore, the effect of this error on 2003 ending working capital is that it overstated the ending 2003 working capital.
When the 2003 commission expense in the entries above was paid in 2004, it would have been recognized as an expense. This made the error to counterbalance. This implies that the 2004 ending retained earnings balance is still correct despite that there are errors in the earnings of the two years. Therefore, the error does not have effect on the 2004 ending retained earnings balance.
