In general, business writing should be ____

For each of the following transactions for the Sky Blue Corporation, prepare the adjusting journal entries required on October 3

alexandr1967 [171]

Answer:

(a) Debit Deferred revenue $800

Credit Revenue $800

Being entries to recognize revenue earned as at October 31.

(b) Debit Insurance expense $400

Credit Prepaid Insurance $400

Being entries to record insurance expense incurred as at October 31.

(c) Debit Depreciation expense $400

Credit Accumulated depreciation $400

Being entries to record depreciation expense on machine as at October 31

Explanation:

Adjusting entries are required when transactions have occurred but are yet to be properly accounted for in the company's books.

(a) Cash collected in advance results in the debit in cash account and a credit to deferred revenue. When the revenue is earned, it is recognized by crediting revenue and debiting deferred revenue with the amount earned.

As at October 31, amount earned

= 1/3 × $2,400

= $800

Entries required

Debit Deferred revenue $800

Credit Revenue $800

Being entries to recognize revenue earned as at October 31.

(b) For amount paid in advance, the expense is recorded when incurred by debiting the expense account and crediting prepaid account to reduce the amount prepaid.

Expense incurred as at October 31

= 1/3 × $1,200

= $400

Entries required

Debit Insurance expense $400

Credit Prepaid Insurance $400

Being entries to record insurance expense incurred as at October 31.

(c) Depreciation expense is recognized as the fixed asset is used by debiting the expense account and crediting the accumulated depreciation account.

Since the annual depreciation is $4,800

Monthly depreciation = 1/12 × $4800

= $400

Entries required

Debit Depreciation expense $400

Credit Accumulated depreciation $400

Being entries to record depreciation expense on machine as at October 31

4 0

3 years ago

When products cannot be easily differentiated: A. there is little room for price variations from the competition. B. a skimming

nlexa [21]

Answer:

A. there is little room for price variations from the competition

Explanation:

When a company's product cannot be easily differentiated from competitors' products, it means that these companies sell homogenous products; the features and purpose are very similar to the customers and they would see little opportunity cost when they chose one over the other. The sellers are therefore price takers in the market and their sales revenues will depend on forces of demand and supply. Therefore, there is little room for price variations from their competitors.

8 0

2 years ago

Read 2 more answers

Rita Company buys merchandise on account from Linus Company for $590. Rita sells the goods to Ellis for $900 cash. Use a tabular

rosijanka [135]

Answer:

Record of transaction is given below

Explanation:

given data

Selling price of goods = $900

Cost of goods sold = $590

solution

we get here Record of transaction in Rita Company that is

Inventory accounts Dr $900

Account payable Cr $900

and

Record of transaction in Linus Company is

Account receive able Dr $900

Sales revenue Cr $900

and

Cost of goods sold Dr $590

Inventory Cr $590

4 0

2 years ago

Land-based forces gravitate toward a control mindset endemic of a higher headquarters model. this demonstrates which key element

kupik [55]

<span>

Centralized Organization vs. Decentralized Organization. The centralized organization can be characterized as a progression basic leadership structure where all choices and procedures are taken care of entirely at the best or the official level.
The way toward exchanging and allotting basic leadership specialist to bring down levels of a hierarchical chain of importance. In a decentralized association, the basic leadership has been moved to bring down levels or levels of the association, for example, divisions, branches, offices or auxiliaries.</span>

5 0

2 years ago

Moskowitz Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 91 Ma

Molodets [167]

Answer:

Moskowitz Corporation

The net operating income (loss) under variable costing in Year 2 is closest to:

= $56,000.

Explanation:

a) Data and Calculations:

Selling price per unit $ 91

Manufacturing costs:

Variable manufacturing cost per unit produced:

Direct materials $ 13

Direct labor $ 7

Variable manufacturing overhead $ 3 23

Contribution per unit $ 68

Fixed manufacturing overhead per year $480,000

Selling and administrative expenses:

Variable selling and administrative expense per unit sold $ 6

Fixed selling and administrative expense per year $ 84,000

Year 1 Year 2

Units in beginning inventory 0 3,000

Units produced during the year 12,000 10,000

Units sold during the year 9,000 10,000

Units in ending inventory 3,000 3,000

Year 2:

Income Statement:

Sales Revenue ($91 * 10,000) = $910,000

Variable manufacturing costs 230,000 ($23 * 10,000)

Variable selling and admin. 60,000 ($6 * 10,000)

Contribution margin $620,000

Fixed manufacturing costs 480,000

Fixed selling and admin. costs 84,000

Net operating income (loss) $ 56,000

8 0

2 years ago

In general, business writing should be _____.