Answer:
Account name statement(1) type of account(2)
Accounts payable BS CL
Accounts receivable BS CA
Accruals IS and BS income and SE
Accumulated amortization BS FA
administrative expenses IS E
Buildings BS FA
Cash BS CA
Common shares BS SE
Cost of goods sold IS E
Amortization BS E
Equipment BS F ASSET
General expenses IS E
Intrest expenses IS E
Account name Statement(1) type of account(2)
Inventories BS CA
Land BS FA
long term debts BS CL
Machinery BS FA
marketable securities BS CA
Line of credit BS LTD
operating expense IS E
Preferred shares BS SE
preferred share dividends BS SE
retained earnings BS R
Sales revenue IS R
Selling expense IS E
Taxes IS E
Vehicle BS FA
Answer:
<u>January 1, 2017</u>
Debit: Accounts Receivable $2800
Credit: Deferred Revenue[Wiring Base] - $1120
Credit: Deferred Revenue[Shelving Unit] - $1680
Narration: Contract Detail and invoicing of the client.
<u>February 5, 2017</u>
Debit Deferred Revenue[Wiring Base] - $1120
Credit Revenue Account - [Wiring Base] - $1120
Narration: Revenue recognition of Wiring Base delivered to customer
<u>February 25, 2017</u>
Debit Deferred Revenue[Shelving Unit]- $1680
Credit Revenue Account - [Shelving Unit] - $1680
Narration: Revenue recognition of Shelf delivered to customer
<u>February 25, 2017</u>
Debit: Bank - $2800
Credit: Accounts Receivable - $2800
Narration: Payment received in settlement of contract fully delivered
Explanation:
The question is an example of a Performance Contract.
A Performance Contract is an agreement with a customer by a vendor to discharge a service or provide goods that are distinct from each other. The accounting for this obligations will therefore be recorded and recognized separately.
It is also important to note that the services or goods must be separately identifiable and the customer must be able to derive from each goods on individually or jointly.
The rule is to
- Recognize the contract and invoice amount with the customer as Deferred Income.
- Identify the distinct obligations and services to be provided.
- Identify the transaction amount for each service or good.
- As each obligation is met, the revenue is finally recognized and transferred from Deferred income.
The answer is a, all the others answers are wrong
Answer:
The answer is £0.2055/$
Explanation:
Exchange rate is the price of one currency in terms of another. It is also the number of units of one currency(price currency) that one unit of another currency(base currency) will buy.
In US, an ounce of gold = $20.67
In british, it costs £4.2474
Therefore, exchange rate of pounds per dollar =
£4.2474/$20.67
=£0.2055/$