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4 years ago

A company reports the following amounts at the end of the current year:

Business

1 answer:

Solnce55 [7]4 years ago

7 0

Answer:

$80

Explanation:

Permanent earnings are regular or constant earning, which can be expected to continue in the future. It is income earned from everyday business transactions. Permanent earnings contrast transitory earning.

Transitory are non- recurring earnings. It is not definite that they will continue in the future.

For this company, transitory transactions will be gain on the sale of land at $30,000

Permanent earnings will be sales revenues minus expenses

=$860,000 -$250,000-$10,000- $520,000

=$860,000- $780

=$80

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Yes, Jerry is likely to qualify, since his yearly income is below the median annual income of New Mexico.

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4 years ago

Read 2 more answers

Prepare journal entries to record the following production activities for Hotwax. 1. Incurred direct labor of $200,000 (credit F

Firdavs [7]

Answer:

a. Debit Work-in- Progress with $200,000, and credit factory payroll payable with $200,000.

b. Debit factory overhead with $11,500, and credit factory payroll payable with $11,500.

c. Debit factory payroll payable with $211,500, and credit Cash with $211,500.

Explanation:

This will appear as follows in the account:

Hotwax's Journal Entries

Details Dr ($) Cr ($)

Work-in- Progress 200,000

Factory payroll payable 200,000

Being direct labor cost incurred

Factory overhead 11,500

Factory payroll payable 11,500

Being the indirect labor cost incurred

Factory payroll payable 211,500

Cash 211,500

Being total factory payroll or labor cost paid in cash

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4 years ago

A company sells electronics and with a warranty attached and estimates that they will experience an estimated 5% of sales for wa

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Answer:

b. debit warranty expense $10,000; credit estimated warranty liability $10,000

Explanation:

The journal entry to record the estimated warranty expense is shown below:

Warranty Expense Dr $10,000 ($200,000 × 5%)

To Estimated Warranty Liability $10,000

(being the warranty expense is recorded)

Here the warranty expense is debited as it increased the expense and credited the estimated warranty liability as it also increased the liability

Therefore the option b is correct

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3 years ago

Gershwin Wallcovering Inc. shipped the wrong shade of paint to a customer. The customer agreed to keep the paint upon being offe

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Answer:

The answer is D.

Explanation:

A sales allowance is a reduction in the price of goods or services that have been sold to a customer because of a defective or abnormality with good or service(for example in the question, wrong shade of painting).

Sales allowance is usually created after the price has been charged to the customer but before the customer pays.

Sales allowance is similar to sales discount just that sales discount is done to encourage sales.

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3 years ago

Two years ago, you invested $1,000 in a healthcare stock. Your return during the first year was -50 percent, while your return i

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Answer:

The answer is true.

Explanation:

It is true that the investment worth is $1000 because it is given that there is a negative 50 percent yield in the first year and in the second year there is a positive 50 percent yield. Here, negative yield shows some kind of loss and positive yield shows gains. So the loss of first-year is compensated by the gain of the second year. Therefore, the investment worth remains the same at $1000.

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3 years ago