Answer:
May 15, 2020
No Entry
June 15, 2020
Debit: Account Receivable 2,060
Credit Revenue 2,060
Debit COGS 1,380
Credit Inventory 1,380
July 15, 2020
Debit Cash 2,060
Credit Account Receivable 2,060
Explanation:
Preparation of the journal entries for Splish related to this contract.
May 15, 2020
No Entry
June 15, 2020
Debit: Account Receivable 2,060
Credit Revenue 2,060
Debit COGS 1,380
Credit Inventory 1,380
July 15, 2020
Debit Cash 2,060
Credit Account Receivable 2,060
Answer:
D. $605,500
Explanation:
The computation of the expected balance in retained earnings on the 2018 is shown below:
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
= $533,500 + $112,000 - $40,000
= $605,500
We simply applied the above formula so that the ending balance could arrive by considering all the items given in the question
Answer:
Present Value= $1,772.115
Explanation:
Giving the following information:
You have won the $3 million first prize in the Centennial Lottery.
However, the prize will be awarded on your 100th birthday, 78 years from now. What is the present value of your windfall if the appropriate discount rate is 10 percent.
We need to use the following formula:
PV= FV/[(1+i)^n]
PV= present value
FV= final value
PV= 3000000/(1.10^78)= $1,772.115
Answer:
Company should continue with old machine (Alternative 1)
Explanation:
Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)
DIFFERENTIAL ANALYSIS
Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income
REVENUES
Proceeds from sale of machine
$0 $50500 $50500
COSTS
Purchase price $0 -$75000 -$75000
Direct labor -$56000 -$37000 19000
(11200*5 = -56000)
(7400*5 = -37000)
Income (loss) -$56000 -$61500 -$5500
Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)
Answer and Explanation:
This is an example of corporation. Corporation is a legal entity wherein it goes public and offers its shares for ownership and trading in the primary and secondary market. Corporation is public limited company and has a board consisting of executives and CEO. Whereas, the shareholders do not interfere with the management decisions they are only concerned with their dividends.
In this case, Juan owned 1000 shares of DDX. DDX is a corporation because it is able to offers its shares to the general public and allows trading of shares for ownership.
