Answer:
$12,000
Explanation:
The main difference between cash basis accounting and accrual accounting is that accrual accounting recognizes revenue only after the earning process is completed. On the other hand, cash basis accounting recognizes revenue and expenses when the money is received or paid, regardless of when the service is provided. This is why the US GAAP doesn't allow cash basis accounting.
The IRS allows cash basis accounting for individuals and small businesses that only deal with cash payments, but they must meet certain criteria:
- partnerships or C corporations with less than $5 million in yearly revenue
- sole proprietorships and S corporations with less than $1 million in yearly revenues
- family owned farms
- you provide personal services and 95% of your revenue comes from it
- no publicly traded corporation is allowed
300/12 = 25
So you would pay 25 (/dollars) every month.
I hope it helped you!
Answer:
(B) For Month Ended April 30, 20--.
Explanation:
Since, the income statement reflects the activities of the specific firm/entity/company for a particular period, therefore the date on income statement is always written in below manner depending on the number of months it represents.
If 12 months are represented by the income statement, then the date on such income statement is written as:
For year ended April 30,20--.
If 6 months are represented by the income statement, then the date on such income statement is written as:
For six months ended April 30,20--.
If 1 month is represented by the income statement, then the date on such income statement is written as:
For month ended April 30,20--.
Keeping in view the above discussion, the answer to the question shall be
(B) For Month Ended April 30, 20--.
Answer: 10.81%
Explanation:
The annual percentage rate is the percentage cost of credit on yearly basis.
APR will be calculated
= [(2 x n x I) /( P x ( N + 1)]
where,
n = number of months = 12
I = Finance cost = Interest + service charge = $70 + $12 = $82
P = Borrowed amount = $1,400
N= Loan period = 12
We'll then slot the values into the annual percentage rate (APR) formula and this will be:
= ( 2 x n x I) /( P x ( N + 1))
= ( 2 x 12 x 82) /( 1400 x ( 12 + 1))
= 0.1081
=10.81 %
Answer:
In its 2017 year-end balance sheet, Reliable would report installment receivables (net) of $13,400.
Explanation:
Under cost recovery method, the amount which is actually received was recorded in the books of the accounts. Rest will not be considered.
The Installment receivables should be computed by a formula which is shown below:
= 2017 Merchandising costing - 2017 sales collection
= $32,500 - $19,100
= $13,400
Thus, In its 2017 year-end balance sheet, Reliable would report installment receivables (net) of $13,400.
