1. Who benefits when a customer purchases strawberries from a store?

Vaughn Manufacturing's prepaid insurance was $197000 at December 31, 2021 and $90300 at December 31, 2020. Insurance expense was

Zina [86]

Answer:

Cash disbursements for insurance would be $ 168,700.

Explanation:

In accrual based accounting expenses are recorded when they are incurred. The payment against item purchased does not make it qualified to be recorded as expense. Any advance payment made is recognize as asset untill performance obligation has been completed. So in order to determine amount of payment we will use following accounting equation.

Payments = Prepaid current period + expenses - opening prepaid balance

Payments = 197,000 + 62,000 - 90,300 = $ 168,700

8 0

3 years ago

Philippe Organic Farms has total assets of $689,400, long-term debt of $198,375, total equity of $364.182, net fixed assets of $

Margarita [4]

Answer:

correct option is B. 1.40

Explanation:

given data

total assets = $689,400

long-term debt = $198,375

total equity = $364.182

net fixed assets = $512,100

sales = $1,021,500

profit margin = 6.2 percent

solution

we get here first current assets that is express as

current assets = Total assets - net fixed assets ...................1

put here value

current assets = $689,400 - $512,100

current assets = $177300

and now we get Current liabilities that is express as

Total liabilities = Total assets - Total equity .............2

Current liabilities + Long term debt = Total assets - Total equity

Current liabilities = Total assets - Total equity - Long term debt ...........3

put here value

Current liabilities = $689400 - $364182 - $198,375

Current liabilities = $126843

so here Current ratio will be

Current ratio = current assets ÷ Current liabilities .............4

Current ratio = $\frac{177300}{126843}$

Current ratio = 1.40

so correct option is B. 1.40

6 0

3 years ago

Kohl's Corporation decided to discontinue its Kohl's credit card operations. What factors would this department store company ha

mart [117]

Answer:

The most likely factor that this department store company would have considered in discontinuing its credit card operations is the issue of bad debt.

Bad debt may likely have prevented them from making the required profit to cater for the needs of the company such as payment of salaries and purchase of goods which if not treated may lead to the collapse of the company.

3 0

3 years ago

Prepare adjusting entries for the following transactions.

g100num [7]

Answer:

1. Debit Depreciation expense $1,340

Credit Accumulated depreciation $1,340

2. Debit Interest expense $275

Credit Accrued Interest $275

3. Debit Supplies expense $450

Credit Supplies Account $450

4. Debit Unearned Service revenue $3,100

Credit Service revenue $3,100

5. Debit Salaries expense $900

Credit Accrued Salaries $900

Explanation:

Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.

It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset

Mathematically,

Depreciation = (Cost - Salvage value)/Estimated useful life

It is recorded by debiting depreciation and crediting accumulated depreciation.

When interest is incurred as an expense but yet to be paid, it will be accrued for by Debiting Interest expense and crediting accrued Interest. The same applies to salaries incurred but yet to be paid.

When Supplies is purchased, Debit supplies and credit Cash/Accounts payable. As Supplies are used up, debit supplies expense (with the amount used) and Credit Supplies account.

Amount of supplies used up = $550 - $100

= $450

When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are

Debit Cash account and Credit Unearned fees or deferred revenue.

As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.

Earned revenue = $4,000 - $900

= $3,100

5 0

3 years ago

An agreement between the owner of a brand and another company or individual who pays a royalty for the use of the brand in assoc

levacccp [35]

Answer:

<u>Licensing.</u>

Explanation:

Brand licensing occurs when there is an agreement between companies to use a brand and its characteristics such as name, logo and image, upon payment of royalts for the use.

It is a strategy that occurs on a large scale worldwide due to the ease of use and the added benefits of using a consolidated brand in the market, which already has an established public, and added value, which generates an economic strengthening in companies that use this strategy. as well as increased reliability and profitability.

7 0

3 years ago