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Romashka [77]
3 years ago
13

A company with a December 31 fiscal year end sold and delivered $5,000 worth of inventory on December 15, 2016 with payments of

$1,200 collected on December 28, 2016 and $3,800 collected January 25, 2017. Under the accrual method of accounting, what amount of revenue would be recognized in 2016?
Business
2 answers:
Zepler [3.9K]3 years ago
8 0

Answer:

$5,000

Explanation:

Under the accrual accounting method, revenue is recognized and recorded in the books once the recognition criteria is met i.e once the goods or service has been delivered.

Under this system as well expenses are recorded once incurred.

As such, the time of cash payment does not affect the recognition of revenue. When revenue is earned and cash is yet to be paid, the entries required are debit accounts receivable and credit revenue.

On payment of cash, the entries are posted between cash and accounts receivables.

mestny [16]3 years ago
6 0

Answer:

Explanation:

Accrual accounting means revenue and expenses are recognized and recorded when they occur unlike cash basis which are revenues recognised recorded when there are cash payments.

Given:

Sold = $ 5,000

Cash in 2016 = $ 1,200

Cash in 2017 = $ 3,800

Using the above definition of accrual accounting,

Revenue = $ 5,000

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The most compelling and effective messages contain a variety of sentence patterns and avoid common sentence faults. You can crea
Zepler [3.9K]

Answer:

The correct answer is (c)

Explanation:

The structure of a sentence is important to avoid common sentence faults as it helps to better understand the sentence. There are various types of sentences such as compound, simple sentence etc. A complex sentence consists of at least one dependent clause and an independent clause. A dependent sentence can stand alone but for a better sentence, it is important to have an independent clause with a dependent clause.

5 0
3 years ago
Suppose selected comparative statement data for the giant bookseller Barnes & Noble are presented here. All balance sheet da
grandymaker [24]

Answer:

Profit margin = net profit / total sales = $78 / $5,200 = 1.5%  

Asset turnover = total sales / average total assets = $5,200 / ($2,990 + $3,510) = 1.6

Return on assets = net income / average total assets = $78 / $3,250 = 2.4%  

Return on common stockholders’ equity =  net income / average stockholders' equity = $78 / ($992 + $1,031) = 7.71%  

Gross profit rate = gross profit / total sales = $1,716 / $5,200 = 33%

3 0
3 years ago
The people pane shows social media information available for any people who were included in the header of a message in the ____
larisa86 [58]
The people pane displays social media data presented for some people who were limited within the header of the message in the reading pane, as well as attachments, appointments and notes related to those people. A people pane is a pane in outlook that shows a certain contact laterally with related data including photos, status communication or feed, calendar items, etc. on or after outlook and other networks.
5 0
3 years ago
Fortune Enterprises is an all-equity firm that is considering issuing $13.5 million of perpetual debt. The interest rate is 10%.
Nuetrik [128]

Answer:

d. Debt holders get $0 mil. under the unlevered plan vs. 0.6075 mil. under the levered plan

Explanation:

interests paid to debt holders = $13,500,000 x 10% = $1,350,000

generally, interest revenue is taxed as ordinary revenue = corporate income tax rate (if debt holder is a business) or personal income tax (if debt holder is an individual).

under the first plan, debt holders get nothing because there is no outstanding debt since the company is an all equity firm.

under the second plan, if the personal tax rate on interest income is 55%, which is really high, the debt holders will earn $1,350,000 x (1 - 55%) = $607,500

8 0
3 years ago
In a $1031 like-kind exchange, Rafael exchanges a business building that originally cost $346,800. On the date of the exchange,
Andreyy89

Answer:

A. $52,020

B. $0

C. $208,080

Explanation:

a. Computation of Rafael's realized gain on the exchange

Using this formula

Realized gain=Fair market value -Adjusted basis

Let plug in the formula

Realized gain= $190,740-$138,720

Realized gain=$52,020

Therefore a. Rafael's realized gain on the exchange is $52,020

b. Based on the information given Rafael's recognized $1031 gain is $0 reason been that

NO BOOT WAS RECEIVED

c. Computation for Rafael's $1245 depreciation recapture Amount

Using this formula

Depreciation recapture Amount=Equipment originally cost -Adjusted basis

Let plug in the formula

Depreciation recapture=$346,800-$138,720

Depreciation recapture=$208,080

Therefore Rafael's $1245 depreciation recapture of $208,080 is carried over to the replacement property

4 0
3 years ago
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