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Aliun [14]
3 years ago
5

On September 1, Year 1, Gomez Company collected $9,000 in advance from a customer for services to be provided over a one-year pe

riod beginning on that date. How much revenue would Gomez Company report related to this contract on its income statement for the year ended December 31, Year 1? How much would the company report as net cash flows from operating activities for Year 1?
Business
1 answer:
Leya [2.2K]3 years ago
4 0

Answer:

$3,000 and $9,000

Explanation:

In the income statement only four months revenue is recorded i.e from September 1 to December 31      

= $9,000 × 4 months ÷ 12 months

= $3,000

And, under the operating activities the whole amount i.e $9,000 is to be recorded and added to the net income as it is inflow of cash and the same is added using the direct method of the cash flow statements

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Silver Spoon Service repairs commercial food preparation equipment. The following budgeted cost data is available for 2019: Time
stepladder [879]

Answer:

The rate charged per hour of labor is 120.

Explanation:

Rate charged per hour of labor is given by:

= Budgeted cost per labor hour + Profit margin

= 660000/10000 + 54  

= 120

Therefore, The rate charged per hour of labor is 120.

5 0
2 years ago
A consumer values a car at $30,000 and a producer values the same car at $20,000. What amount of tax will result in unconsummate
Serhud [2]

The question is incomplete:

A consumer values a car at $30,000 and a producer values the same car at $20,000. If the transaction is completed at $24,000, what level of sales tax will result in unconsummated transaction?

a. 0%

b. 25%

c. 20%

d. 40%

Answer:

d. 40%

Explanation:

The unconsummated transaction would occur when the price that the customer has to pay is higher than the value that he gave to the car. According to that, the answer would be the tax that would increase the final price to more than $30,000:

0%: $24,000

25%: 24,000*1.25= $30,000

20%: 24,000*1.20= $28,800

40%: 24,000*1.40= $33,600

The answer is that the amount of tax will result in an unconsummated transaction is 40%.

7 0
3 years ago
Assume that labor and capital are the only two inputs a perfectly competitive firm uses to produce wheat. The firm hires its inp
noname [10]

The price of wheat per ton must be $4 when profit-maximizing combination is employed.

<h3>What is Price?</h3>

This is defined as the amount of money that has to be paid to acquire a given product.

To get the price per ton for the company to make profit, we find the ratio of the unit price of labor to the marginal product of labor.

$8 / $2 = $4.

Read more about Price here brainly.com/question/24877850

5 0
2 years ago
On January 1, 2021, Pence Airlines issued $400,000 of its 20-year, 8% bonds. The bonds were priced to yield 10%. Interest is pay
finlep [7]

Answer:

1) the price of the bonds can be determined by calculating the PV of the face value and coupon payments:

PV of face value = $1,000 / 1.05⁴⁰ = $142.05

PV of coupon payments = $40 x 17.159 (PV annuity factor, 5%, 40 periods) = $689.36

PV of each bond = $831.41 x 400 = $332,564

January 1, 2021, bonds issued at a discount

Dr Cash 332,564

Dr Discount on bonds payable 67,436

    Cr Bonds payable 400,000

2) amortization of bond discount = (332,564 x 5%) - 16,000 = $628.20 ≈ $628

June 30, 2021, first coupon payment

Dr Interest expense 16,628

    Cr Cash 16,000

    Cr Discount on bonds payable 628

3) amortization of bond discount = (333,192 x 5%) - 16,000 = $659.60 ≈ $660

December 31, 2021, first coupon payment

Dr Interest expense 16,660

    Cr Cash 16,000

    Cr Discount on bonds payable 660

4) bonds carrying value on December 31, 2021 = $333,852 - $335,000 = $1,148

December 31, 2021, adjusting entry for bonds' fair market value

Dr Unrealized loss on bonds' fair value 1,148

    Cr Fair value adjustment 1,148

4 0
2 years ago
A not-for-profit firm uses a small convenience sample to gather data on customer reactions. It invites a small group of customer
Rzqust [24]

Answer:

D. informal surveys is the correct answer

Explanation:

  • Informal survey objectives are to develop an understanding and to collect on the farmers' and customer's situations and also to plan the process to find a solution for these types of problems.
  • In the informal surveys, data gathering process is iterative and interviews are semi directed which is  carried out by the interdisciplinary member
  • Informal surveys are also called as exploratory surveys.
5 0
3 years ago
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