Answer:
Total profit for units sold for consignor is 15240 $
Explanation:
Revenue generated from the sale is equal to 40 * 750 $ = 30000$. Since this is consignment sale, revenue belongs to consignor minus the commission and expenses of the consignee. Therefore: 30000-1500-500-680 = 27320$. As the cost of each set was 250 and 40 sets were sold, total amount is 10000 and the cost of shipping 40 sets was 2080, total profit is therefore 15240$. The cost of shipping 40 sets we can get if we divide total cost with the number of sets shipped. Then we get cost per unit and since 40 sets was sold the shipping cost of that sale was 2080$.
Answer:
Smart Touch Learning
SMART TOUCH LEARNING Income Statement December 31, 2016
Service Revenue 42,500
Depreciation Expense--Furniture 1,800
Interest Expense 200
Rent Expense 2,800
Salaries Expense 3,200
Supplies Expense 700
Total Expenses 8,700
Net Income $33,800
Explanation:
a) Data and Calculations:
SMART TOUCH LEARNING Adjusted Trial Balance December 31, 2016 Balance Account Title Debit Credit
Cash 14,000
Accounts Receivable 7,700
Office Supplies 100
Prepaid Rent 9,300
Furniture 16,300
Accumulated Depreciation--Furniture 5,600
Accounts Payable 1,800
Salaries Payable 400
Interest Payable 200
Unearned Revenue 4,600
Notes Payable 6,500
Common Stock 9,100
Retained Earnings 9,300
Dividends 23,900
Service Revenue 42,500
Depreciation Expense--Furniture 1,800
Interest Expense 200
Rent Expense 2,800
Salaries Expense 3,200
Supplies Expense 700
Total 80,000 80,000
b) The income statement of Smart Touch Learning shows the difference between its revenue and expenses for a given accounting period. It is used to determine the net income that the company has generated over a particular period.
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Answer:
$360,000
Explanation:
The computation of the recognition of depletion expense is shown below:-
The balance of $2,400,000 will be capitalized as an intangible asset at the time of acquisition of Oil rights. The reduction in value of this right would be expensed per year at a rate of $12 per barrel and the intangible value of the commodity would be decreased to the same degree.
The depletion or reduction in asset value = Extracted Barrels × Rate per Barrel
= 30,000 × $12
= $360,000
