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4 years ago

17

Business

1 answer:

Goshia [24]4 years ago

6 0

Answer:

$764,400

Explanation:

Payment in advanced are prepayment which are treated as current liability until the service is delivered and sales income are credited while the .prepayment account are debited.

Accrual payment are payment for service already delivered which are current liability (receivables)

Rental income received = $738,000

Rent in advance as at 31/12/2008 102,600

(prepayment for 2009)

Rent in advance as at 31/12/2009 (77,700)

Prepayment for 2010

Rent in arrears as at 31/12/2008 (39,600)

Accrued payment for 2008

Rent in arrears as at 31/12/2009 41,100

Recognized income 764,400

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given data

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solution

Miller & Sons Static Budget Flexible Budget

Details Total Cost Variable cost/unit total cost

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direct material 50000 500 60000

direct labour 44000 4.40 52800

variable utility 5000 0.50 6000

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