Answer:
December:
Dr cash $16,000
Cr subscription revenue $16,000
Dr cash $216,000
Cr unearned revenue $216,000
January 2017:
Dr unearned revenue $18,000
Cr subscription revenue $18,000
Explanation:
The sales of 4000 copies at the newstand means that revenue of $16,000($4*4000) has been earned in December,which means that cash would debited with $16,000 and sales revenue credited with the same amount.
In December,the subscriptions received in advance for 2017 of $216,000($36*6000) would be debited to cash and credited to unearned revenue account.
At the end of January,the unearned revenue would be debited with $18,000($216,000/12) in respect of subscription earned as a result of the Magazine been mailed to subscribers in the month,which now entitles the company to one month subscription as earned sales revenue.
Answer:
Holding period return = 4.94%
Explanation:
Given that :
Allan purchased 800 shares of stock on margin for $31
And He sold it at the rate of $33.50 after five months.
Initial Margin requirement = 65%
Maintenance Margin = 30%
Interest Rate on Margin loan = 7.5%
The Holding period return can therefore be calculated by the formula:
Holding period return = (sale price - purchase price - interest paid )/Purchase price
where ;
31 × 800 = 24800
Interest for five month = 5/12
Holding period return = (33.50-31)×800 - (7.5% ×24800× 5/12) / 24800
Holding period return = (2000-775)/24800
Holding period return = 0.0494
Holding period return = 4.94%
Answer:
b) credit to Rent Expense for $1530
Explanation:
Date Accounts and Explanation Debit Credit
Income Summary $5,550
Salaries & Wages Expense $2,900
Rent Expense $1,530
Advertising Expense $740
Supplies Expense $270
Insurance Expense $110
(To Close the expense accounts)
Answer:
job 429 -WIP 3040 debit
job 430 -WIP 4020 debit
job 431 -WIP 4740 debit
factory overhead 900 debit
raw materials 12,700 credit
--to record materials requisions--
job 429 -WIP 2,300 debit
job 430 -WIP 3,400 debit
job 431 -WIP 7,900 debit
factory overhead 1,310 debit
wages payables 14,910 credit
--to record wages tickets--
job 429 -WIP 1,426 debit
job 430 -WIP 2,046 debit
job 431 -WIP 4,898 debit
factory overhead 8,370 credit
--to record applied overhead--
Explanation:
job 429 -WIP: 2300 x 62% = 1,426
job 430 -WIP: 3400 x 62% = 2,046
job 431 -WIP: 7900 x 62% = 4,898
total overhead: 8,370
