Answer:
6,000 units
Explanation:
The beginning inventory units are calculated below
We know
Number of units produced = Budgeted units sold + ending inventory units - beginning inventory units
35,000 units = 32,000 units + 9,000 units - beginning inventory units
35,000 units = 41,000 units - beginning inventory units
So, the beginning inventory units would be
= 41,000 units - 35,000 units
= 6,000 units
People bought more goods and created high demand for new products
Answer:
A. Cash basis $5,750
Accrual basis $11,400
B. Accrual basis
Explanation:
A. Calculation for the first year’s net earnings under the cash basis of accounting, and accrual basis of accounting
Cash basis Accrual basis
Service revenue
$21,900 $30,000
Less Operating expenses
$12,880 $18,600
Less Insurance expenses $3,270 $0
Net income $5,750 $11,400
B. Based on the above calculation the basis of accounting that provides more useful information for decision-makers is ACCRUAL BASIS OF ACCOUNTING.
In the United States alone, $16 billion of products and services are traded every year without any money changing hands in a practice referred to as Barter transactions account .
- A barter exchange account is handled as an asset account and the revenue from bartering is treated as income in a typical journal entry.
- In the aforementioned scenario, barter income would be credited with $100 and the barter exchange account would be debited with $100.
- A barter exchange is a group of people or businesses that have decided to swap goods or services without taking payment in cash.
- Disadvantages are that bartering frequently requires much time and hassle and that goods are often not readily divisible, meaning that swapped goods have to be basically equal in value if a trade is to occur.
What are barter accounts?
- A barter exchange operates as a broker and bank in which each participating member has an account that is debited when purchases are made, and credited when sales are made.
- Compared to one-to-one bartering, concerns over unequal exchanges are reduced in a barter exchange.
Learn more about barter accounts brainly.com/question/23967562
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