1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Lina20 [59]
3 years ago
15

On March 1, a designer received a check for $7,500 from a customer for services to be provided after the customer chose a color

scheme for the first floor of her house. On July 31, the designer completed the design work for this customer. Prepare the July 31 journal entry by selecting the account names from the drop-down menus and entering the dollar amounts in the debit or credit columns.
Business
1 answer:
lora16 [44]3 years ago
7 0

Answer:

unearned service revenue 7,500 DEBIT

       service revenue 7,500 CREDIT

Explanation:

the job is complete on July 31th

so <em>we write-off the unearned service reveue</em>

and <em>we recognize the service revenue </em>for the whole amount of the contract

The cash receipt occurs on March 1st so w edon't haveto post anythign related to cash on July 31th.

the unearned revenue account is used first because the business has the obligation of perform the job or return the cash. So it is a liablity until the job is completed

You might be interested in
According to liquidity preference theory, money supply and money demand are balanced by adjustments of
givi [52]

Answer:

Nominal Interest rate

Explanation:

According to liquidity preference theory, money supply and money demand are balanced by adjustments of Nominal Interest rate. Suppose you have some money, you will decide to either keep it in cash or in the bank. If you keep the money in cash, the opportunity cost of keeping in cash is the interest rate earned if you would have kept the money in the bank. Bank offers the nominal interest rates and not the real interest rates. Bank rates are not adjusted for inflation. So if the interest rate on money increases the opportunity cost of holding money in cash increases. If money supply in the economy increases the demand for money will increase only by reducing the interest rate because then only people fir hold cash and demand higher money.  So, money supply and money demand are balanced by adjustments of the Nominal Interest rate.

5 0
2 years ago
By shutting​ down, a firm A. stops receiving revenue and is stuck with its fixed costs. B. can avoid paying taxes on its previou
wel

Answer:

option A

Explanation: A firm cannot avoid paying taxes on previous profits as these profits were earned before the shutting down period and generally the taxes on profits for current period  are paid at a later period. Thus option B is incorrect.

.

Revenue is the total income that a business gets from its normal operations and variable cost is the cost that changes with the level of output. Thus, there will be no revenue and also variable cost.  Hence option C is incorrect.

.

Sunk cost are the costs that cannot be recovered and are already been incurred.So a company can avoid its variable cost by shutting down but not its   sunk cost. Hence option D is incorrect.

.

Fixed costs are the costs that are independent of the level of output. Therefore, a company after shutting down will not receive revenue but will have to bear fixed cost. Hence option A is correct.

4 0
3 years ago
__________ consist of organization infrastructure (administration and management), human resources (employee recruiting, hiring,
olga55 [171]

Answer:

Secondary Activities

Explanation:

Secondary activities inside an organization are those who support the primary activity. The primary activity consists in the production and distribution of goods and/or services to customers, while secondary activities are meant to improve aspects of the primary activity.

For example, the goal of human resources is to create good labor conditions so that employees are happier, and therefore, more productive. And the goal of the technology department is to engage in research to produce new goods or provide new services in the future.

4 0
3 years ago
Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart wi
Mekhanik [1.2K]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Martha receives $200 on the first of each month. Stewart receives $200 on the last day of each month. Both Martha and Stewart will receive payments for 30 years. The discount rate is 9 percent, compounded monthly.

To calculate the present value, first, we need to determine the final value.

i= 0.09/12= 0.0075

n= 30*12= 360

<u>Martha:</u>

FV= {A*[(1+i)^n-1]}/i + {[A*(1+i)^n]-A}

A= montlhy payment

FV= {200*[(1.0075^360)-1]}/0.0075 + {[200*(1.0075^360)]-200}

FV= 366,148.70 + 2,746.12

FV= 368,894.82

Now, the present value:

PV= FV/ (1+i)^n

PV= 368,894.82/ 1.0075^360

PV= $25,042.80

<u>Stewart:</u>

FV= {A*[(1+i)^n-1]}/i

A= monthly payment

FV= {200*[(1.0075^360)-1]}/0.0075

FV= 366,148.70

PV= 366,148.70/1.0075^360

PV= $24,856.37

Martha has a higher present value because the interest gest compounded for one more time.

3 0
3 years ago
2. A welder and a carpenter decided to get out of the construction industry and build farm trailers instead. From building a few
Firlakuza [10]

Answer:

Answer is explained in the explanation section below.

Explanation:

Data Given:

Material Cost Per Trailer = $500

Material Cost plus Profit Per Trailer (15%)  = $500 + 75 = $575

Selling Price = $1000

Labor Cost Remaining Per Trailer = $425

Formula to Calculate the number of Trailers:

X = X1 (N^{S})

Where,

N = number of Trailers

S = Slope Parameter

X = $425

X1 = $700

So, First we need to find the slope parameter, in order to calculate the number of trailers to be built.

S = \frac{log \alpha }{log 2}

where, α = 0.85 rate of improvement.

Plugging in the values into the formula, we get:

S = \frac{log (0.85) }{log 2}

S = -0.234

Now, we can easily find the number of trailers.

X = X1 (N^{S})

Plugging in the values,

425 = 700 x (N^{-0.234})

Solving For N, we get:

N = 8.4 Trailers

N = 9 Trailers.

Hence, 9 Trailers must be built in order to realize this rate of profit.

8 0
2 years ago
Other questions:
  • Our company is deciding whether to invest in a new machine. The new machine will increase cash flow by $324,000 per year. You be
    5·1 answer
  • Imagine that the economy is in long-run equilibrium. Then, perhaps because of improved international relations and increased con
    9·1 answer
  • 8. Which of the following will cause a movement along the supply curve for oil? a. New technology to drill underwater in the Gul
    9·1 answer
  • Which method of depreciation results in periodic depreciation expense that fluctuates from one period to the next, not necessari
    9·1 answer
  • Assume that all of Thurmond Company’s sales are credit sales. It has been the practice of Thurmond Company to provide for uncoll
    5·1 answer
  • Using the Du Pont method, evaluate the effects of the following relationships for the Butters Corporation. a. Butters Corporatio
    11·1 answer
  • The following is a partially completed lower section of a departmental expense allocation spreadsheet for Brickland. It reports
    10·1 answer
  • Oxidants such as hydrogen peroxide have the ability to release?
    8·1 answer
  • What is the communication principle contained within this verse James 1:19?
    6·2 answers
  • Wellington Corp. has outstanding accounts receivable at year end totaling $6,500,000 and had sales on credit during the year of
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!