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marishachu [46]
2 years ago
5

On March 31, 2015, Cars, Inc. owes Preston Devices, one of its suppliers, $25,000 for previous purchases. During April 2015, Pre

ston sells Cars devices with a sales price of $10,000 and a cost to Preston of $8,000. During April, Cars pays Preston $12,000 against the amount owed to Preston. What is the effect of these April transactions on Preston's balance sheet?
Business
1 answer:
andrew11 [14]2 years ago
5 0

Answer:

March 31, outstanding debt $25,000

During April $10,000 more merchandise is sold to Cars inc. (COGS $8,000)

Cars paid $12,000 to Preston to lower its accounts payable

On March 31, Preston's balance sheet showed an accounts receivable of $25,000.

On April 30, the accounts receivable balance is $23,000, the cash balance increased by $12,000 and retained earnings should increase by $2,000.

The income statement should show an increases in sales revenue of $10,000 - $8,000 COGS = $2,000 profit (which increases retained earnings).

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A major difference between ifrs and gaap relates to the revaluation surplus account. retained earnings account. share premium ac
AleksAgata [21]

A major difference between IFRS and GAAP relates to the  A  Revaluation Surplus Account.

A revaluation reserve is an equity account that stores changes in the value of fixed assets. If the revalued assets are subsequently disposed of by the company, the remaining revaluation reserve is credited to the company's retained earnings account.

This reserve is only used when the organization prepares its financial statements in accordance with International Financial Reporting Standards. No revaluation reserve is allowed for companies using generally accepted accounting principles.

A revaluation reserve is an equity account that stores changes in the value of fixed assets. If the revalued assets are subsequently disposed of by the company, the remaining revaluation reserve is credited to the company's retained earnings account.

Learn more about Revaluation here: brainly.com/question/19908089

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3 0
2 years ago
How much is the sales tax on $19.50 worth of goods if the tax rate is 7%? $2.79 $0.14 $1.37 $0.28
exis [7]

Answer:

1.37

Explanation:

=19.50x7

=$1.365

=$1.37

4 0
2 years ago
Firms such as IKEA and The Home Depot are known for their use of __________ because they set reasonably low prices but still off
Maslowich

Answer:

b. value-based pricing

Explanation:

Value based pricing is a pricing strategy to set price of products based on value perceived by the purchaser. To have increased profit margin, business deduces the number of benefit the product provides to consumer. Then it establishes price which takes consideration of manufacturing cost, competitive price and consumer's willingness to pay price for the goods.

In the question  mentioned IKEA not only provide functional benefit for the product but also quality, design, and services at low prices hence it is an instance of value based pricing.

7 0
2 years ago
Read 2 more answers
Gary Smith just launched a firm in the sports drink industry. He has decided to focus his efforts on appealing to extreme sports
grandymaker [24]
I think it is C: target market
8 0
3 years ago
Alonso, the union steward at Selzar Inc., is attempting to persuade members of management to make certain revisions to the compa
UkoKoshka [18]

Answer:

C. negotiating contracts

Explanation:

Discussing and Compromising on contract term in order to reach out final agreement between the company management and union at Selzar Inc.

6 0
3 years ago
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