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zavuch27 [327]
3 years ago
9

a. Business receives $3,000 on January 1 for 10-month service contract for the period January 1 through October 31. (When the ca

sh was received on January 1 assume that a liability account was credited. Assume services are performed evenly each month throughout the term of the contract.)​
Business
1 answer:
stiks02 [169]3 years ago
7 0

<u>Solution:</u>

Deffered revenue means when an organization receives the payment prior to the goods delivered to conusmer. In the given case, business receives $3000 on 1, January for ten month service (From january to October).

<u>The revenue per month needs to be calculated:</u>

Revenue per month = Revenue for ten months divided by Total number of months

By putting the figures we get,

Revenue per month = $3000 divided by 10 = $300 per month

An adjusting entry needs to be passed:        

Date             Particulars                                debit                  credit  

31st jan        Unearned Revenue                 $300

                       Service Revenue                                              $300

( Service revenue that has been collected in advance)                      

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During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 46,000 mini refrigerators, of whi
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Answer:

                                                                     $

Sales                                                       8,800,000

Less: Cost of goods sold (W1)               5,241,739.13

Contribution                                          3,558,260.87

Less: Fixed manufacturing cost               598,000

Less: Fixed selling and admin cost          320,000

Net Income                                            2,640,260.87

<em>(W1) Cost of goods sold</em>

Direct Material                                  3,450,000

Direct Labour                                    1,196,000

Variable manufacturing cost              782,000

Variable selling cost                            600,000

Total variable cost                            6,028,000

Less:closing inventory                     786,260.87 (6,028,000/46,000*6,000)

COST OF GOODS SOLD                  5,241,739.13

8 0
3 years ago
the United States, a three-pound can of coffee costs about $5. If the exchange rate is 0.8 euros per dollar and a three-pound ca
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Answer:

=4/7 cans of Belgium coffee for one can of US coffee

Explanation:

Cost of 1 can of coffee in US = $5

Cost of similar can of coffee in Belgium = EURO 7

Real Exchange Rate (Euro/$) =

Nominal Exchange rate × \frac{Price\ in\ domestic\ market}{Price\ in\ foreign\ market}

= 0.8 × 5/7

=4/7 cans of Belgium coffee per can of US coffee

Nominal exchange rate refers to the exchange rate between two countries which is not adjusted for inflation.

Nominal exchange rate when adjusted for inflation is known as real exchange rate.

Real rate = Nominal rate - Inflation rate

3 0
3 years ago
On July 5, Harris Company purchased supplies from the hardware store for $600 on account. On July 10, Harris receives a bill fro
vekshin1

Answer:

Debit Accounts Payable 600, Credit Cash 600

Explanation:

as goods are purchased on credit initially it will be recorded on parable.

And when it will be paid the general entry will be:-

Account payable debit =600

cash credit = 600

Harris record the transaction on July 17

Debit Accounts Payable 600,

Credit Cash 600

3 0
3 years ago
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Answer:

sole proprietorship

Explanation:

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Characteristics

1. it is owned by one person

2. the business has unlimited liability

3. the business has limited access to capital

4. the business usually lacks continuity. this type of business usually ceases to exist when the owner dies

5. the business is usually not separated from the owner

8 0
2 years ago
On January 1, 20X5, Blaugh Co. signed a long-term lease for an office building. The terms of the lease required Blaugh to pay $1
umka2103 [35]

Answer

The answer and procedures of the exercise are attached in the following image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

4 0
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