Answer:
the question is incomplete, so I looked for a similar one:
Real estate commissions billed to clients amount to $4,000. Paid $700 in cash for the current month's rent. Paid $250 cash on account for office supplies purchased in transaction 2. Received a bill for $800 for advertising for the current month. Paid $2,500 cash for office salaries. Paid $1,200 cash dividends to stockholders. Received a check for $2,000 from a client in payment on account for commissions billed
<u>Income statement</u>
Service revenue $4,000
Operating expenses:
- Rent $700
- Advertising $800
- Office salaries $2,500 <u>($4,000)</u>
Net income $0
Accrual accounting recognizes both expenses and revenues when they occur, not when a cash flow is associated to them. E.g. even though only $2,000 were paid by clients, the whole $4,000 must be considered revenue.
Answer:
D) Debit income summary 187000, credit revenues 187000
Explanation:
When dividend is declared, following journal entry is passed
Retained Earnings Dr.
To Dividend Payable
(Being declared dividend recorded)
When dividends are actually paid, the journal entry is
Dividend Payable A/C Dr.
To Cash A/C
(Being dividend paid recorded)
Income summary account is prepared as a temporary account while income statement represents permanent account.
Income summary shows net income balance i.e Revenue less expenses.
As per the given information in the question, debiting income summary account with total revenues of $187000 would be wrong.
Answer:
A.) degree
Explanation:
The degree certificate is the certification awarded after successful completion of a college/university education program. A university program takes a long time to accomplish as compared to a vocational school program. While vocational colleges award certificates, colleges, and universities award degrees.
Answer: 1) increases and 2) increases
Explanation:
When a government cuts tax on gasoline then it will become cheaper for the consumer as well as for the suppliers of gasoline. So, they increase the supply of gasoline because of the tax cut by the government.
Also, if the oil producing companies decided to increase the production at the same time then this will also increase the supply of gasoline.
Hence, both tax cut by the government and increase in oil production results in higher supply of gasoline.
