Answer:
<em>The adjustment for overapplied overhead </em><em><u>decreases cost of goods sold and increases</u></em><em> </em><em>net income</em>
Answer and Explanation:
The computation is shown below;
But before reaching to the final answers, first do the following calculations
Cash collected $108000
Add Services performed in 2017(not collected) $36000
less Services performed in 2016(collected in 2017) $25000
Revenue for 2017 $119,000
Cash paid in 2017 $72,000
Add Expense incurred not yet paid for 2017 $42000
Less Expense paid for 2016 -$30000
Expense for 2016 $84000
Now
a. Cash basis
Revenue $108000
Less Expenses -$72,000
Net income $36000
b. Accrual basis
Revenue for 2017 $119,000
Less Expenses for 2017 $84,000
Net income $35,000
Answer:
The correct answer is option a.
Explanation:
An interior decorator has moved his business from Los Angeles to St. Paul, Minnesota because his spouse's company transferred her to St. Paul.
The decorator is distressed because the customers in his target market have, in his words, "banal and bourgeois taste."
The customers in St. Paul have a different taste from the customers that he catered to in Los Angeles. The consumer tastes and preferences may differ from place to place according to the climatic conditions, social status, cultures, etc.
The problem with the decorator is that he does not understands that customer needs are not right or wrong, good or bad. It is not right or wrong if the customers in Minnesota have a different preference from customers in Los Angeles.
Answer:
The probability of each outcome
Explanation:
The probability of an event Bis the number of ways event B can occur divided by the total number of possible outcomes. Also it describes the probability of an event taking place and the chance that the event will occur as a result of an experiment carrier out.
Answer:
cash 96,535 debit
discount on BP 3,465 debit
Bonds Payable 100,000 credit
Explanation:
We need to determinate the price at which the bonds were issued:
Which is the present value of the coupon payment and maturity
Coupon payment: 100,000 x 10% / 2 = 5,000
time 4 (2 years x 2 payment per year)
rate 0.06 (12% annual / 2 = 6% semiannual)
PV $17,325.5281
Maturity (face value) $100,000.00
time 4.00
rate 0.06
PV 79,209.37
PV c $17,325.5281
PV m $79,209.3663
Total $96,534.8944
As the bonds are issued below face value there is a discount:
100,000 - 96,535 = 3,465
the entry will recognize the cash procceds and the creation of a liaiblity
we will also use an auxiliar account for the discount on the bonds