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3 years ago

REM Real Estate received a check for $27,000 on July 1 which represents a 6 month

Business

1 answer:

sweet-ann [11.9K]3 years ago

5 0

Answer:

a. Debit Unearned Rent Revenue, $4,500; Credit Rent Revenue, $4,500

Explanation:

When the company receives the $27,000 check for six months of advance rent, it records the unearned revenue in a liability account named Unearned Rent Revenue. The resulting journal entry is:

(Dr) Cash, $27,000

(Cr) Unearned Rent Revenue, $27,000

With the passing of each month, the company <em>earns</em> one-sixth (1/6) of the unearned rent revenue (or $4,500), essentially reclassifying the revenue from unearned to earned. Therefore, after one month, the resulting journal entry is:

(Dr) Unearned Rent Revenue, $4,500

(Cr) Rent Revenue, $4,500

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Pine Creek Company completed 200,000 units during the year at a cost of $3,000,000. The beginning finished goods inventory was 2

solniwko [45]

The cost of goods sold for 210,000 units using a FIFO cost flow for Pine Creek Company during the year is $3,085,000.

FIFO means First-in, First-out.

The FIFO cost flow method is an accounting technique to determine the cost of goods sold and ending inventory based on the assumption that goods produced first are the first to be sold.

The FIFO method is the opposite of the Last-in, First-out (LIFO) method.

<h3>Data and Calculations:</h3>

Number of units produced = 200,000 units

Cost of production = $3 million

Unit cost of production = $15 ($3,000,000/200,000)

Beginning finished goods inventory = 25,000 units

Cost of Beginning inventory = $310,000

Cost of goods sold = $3,085,000 ($310,000 + $15 x 185,000)

Thus, the cost of goods sold for 210,000 units using a FIFO cost flow for Pine Creek Company during the year is $3,085,000.

Learn more about the FIFO Cost Flow Method at brainly.com/question/19167666

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3 0

1 year ago

In September, Year 1, West Corp. made a dividend distribution of one right for each of its 120,000 shares ofoutstanding common s

Sphinxa [80]

Answer:

The correct answer is option C.

Explanation:

Dividend distribution in the first year = 120,000 shares of outstanding common stock

Each right was exercisable.

Though none of the rights have been exercised.

The shares have been redeemed by paying each stockholder=$0.10/right

Reduction in the West's stockholder's equity

=Number of shares*amount paid for redemption

=120,000*$.10

=$12,000

So, option C is the right answer.

8 0

3 years ago

You are the newly assigned project manager to a major IT upgrade project in your global company. How will you determine the risk

kap26 [50]

Answer:

I have to identify the risk factors in the project and then gauge the willingness of the company to take such risks.

Explanation:

Risk tolerance is the willingness of an organization or an individual to take certain risks. The risk tolerance level of a person or organization can be classified as either high or low. For a project manager who wants to determine the risk tolerances associated with his project, he has to first identify the risk factors, and then try to know the risk level and if indeed this level is acceptable within the organization's culture and standard.

The project manager would do well to plot a graph that would show the probability of a risky action happening or not. A risk tolerance line is now obtained from where the project manager can know if that risk is tolerable by organization standards. The extent of job security would also help in determining the amount of risk a manager can take. However, they are still expected to stay within the standards of the organization.

8 0

3 years ago

3 . Relationship between tax revenues, deadweight loss, and demandelasticity

Molodets [167]

Taxing a good with relatively less elastic demand, helps government to raise more revenue with lower welfare loss.

5 0

3 years ago

Assume that Cane expects to produce and sell 88,000 Alphas during the current year. One of Cane's sales representatives has foun

Reptile [31]

Answer:

Advantage = $360,000

Explanation:

Since fixed costs cannot be changed, it is unavoidable or irrelevant.

We have to deduct the avoidable expenses from the revenue to find whether Cane accepts the order or not.

Revenue ($112 x 18,000 units) = $2,016,000

Less: Relevant Costs (Product costs)

Direct Material $30 x 18,000 = $540,000

Direct Labor $22 x 18,000 = $396,000

Variable Manufacturing Overhead $20*18,000 = $360,000

Variable Selling expenses <u> $20*18,000 = $360,000</u>

Total Relevant costs <u> $(1,656,000)</u>

Financial advantage of accepting the new order $ 360,000

Therefore, the company should accept the new order.

7 0

3 years ago