1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
liq [111]
3 years ago
11

A roofing company collects fees when jobs are complete. The work for one customer, whose job was bid at $3,900, has been complet

ed as of December 31, but the customer has not yet been billed. Assuming adjustments are only made at year-end, what is the adjusting entry the company would need to make on December 31, the calendar year-end?
Business
1 answer:
3241004551 [841]3 years ago
3 0

Answer:

Debit Accounts Receivable, $3,900;

Credit Roofing Fees Revenue, $3,900

Explanation:

Here, no cash transaction was involved. Since the job has been completed but  the customer has not been billed yet, this simply means it has to be debited with accounts receivable, which is recognised as current asset and recognised as revenue for the period, hence needs to be credited.

This means that accounts receivable has to be debited with the amount of $3,900 while roofing fees revenue has to be credited with the amount of $3,900

Considering the above, the adjusting entry the company would need to make on December 31, the calendar year-end would be:

Debit Accounts Receivable, $3,900;

Credit Roofing Fees Revenue, $3.900

You might be interested in
Managerial accounting is primarily focused on: a. Providing information for internal and external users b. Providing general pur
sp2606 [1]

Answer:

c. Providing special-purpose information and reports

Explanation:

Managerial or management accounting unlike financial accounting which focuses on historical data involves the review of management's forecast or budget with the actual results obtained.

It is used by management for internal decision making unlike financial accounting which follows a defined framework that is useful for both internal and external users of the financials.

Hence, Managerial accounting is primarily focused on Providing special-purpose information and reports.

3 0
3 years ago
Read 2 more answers
Gary and Wilma Johnson plan to open a bus tour business taking people from their small City to historic sites along the east coa
Dovator [93]

The answer to the given question above would be Profit Margin. On the given scenario above, since they will be offering different kinds of services at once, what they should pay attention to is the profit margin or the net margin. Profit margin serves as the measurement of profitability. This is expressed in percentage and shows how much the return sales are that are generated by the company based on the amount they have initially invested.

4 0
3 years ago
Read 2 more answers
For each of the following transactions for , state whether the total effect of the transaction results in an increase, decrease,
astraxan [27]

Answer:

It will increase the assets,equity and net income but decrease the liabilities

5 0
3 years ago
The characteristics that make a team effective include ________.
Sonbull [250]

Answer:

- context, composition, work design, and processes

Explanation:

While all the option have important parts which makes a team effective there are options with characteristics which do not affecrt the team effectiveness.

The resources available can vary between the projects thus, cannot determinated the effectiveness of a team. Thus, the second cannot be correct.

The size is a variable part as well thus, the third option cannot be correct neither.

Finally the task significance, the team should do an efficient job regardless of how much crucial is the job As if done badly all task have impact on the overall firm outcome. From janitor to managers is required that all team jobs make the extra mile or effort to achieve the desired outcome. Thus the fourth statement is not correct.

3 0
3 years ago
Parent Inc. purchased 30% of the common stock of Affiliate Co. on January 1, YR01 for $5,000 and appropriately accounted for thi
blondinia [14]

Answer:

net cash from investing activities = -$4,940

operating and financing activities are not affected.

Explanation:

the journal entries should be:

January 1, socks purchased

Dr Investment in Affiliate 5,000

    <u>Cr Cash 5,000</u>

December 31, dividends received

<u>Dr Cash 60</u>

    Cr Investment in Affiliate 60

December 31, Affiliate reports net income

Dr Investment in Affiliate 300

    Cr Revenue from investing activities 300

Only the cash flow from investing activities will be affected by Parent's investing in Affiliate. Since the company uses the equity method, the operating and financing cash flows are not affected.

The cash flow from investing activities will:

  • Decrease by $5,000 due to the purchase of stocks.
  • Increase by $60 due to the dividends received.
  • net cash from investing activities = -$4,940

4 0
3 years ago
Other questions:
  • What is debit note received
    5·1 answer
  • Which city is NOT one of the “big five” fashion capitals?
    13·2 answers
  • Security A offers an expected return of 14%, with a standard deviation of 8%. Security B offers an expected return of 11%, with
    12·1 answer
  • Why is it important to write a business plan?
    5·2 answers
  • In 2018, the country of Brazil, had imports of $78.02 billion and had a favorable balance of trade. This means that Brazil had:_
    13·1 answer
  • Christie sued her former employer for a back injury she suffered on the job in 2019. As a result of the injury , she was partial
    10·1 answer
  • In computing the present value of the lease payments, the lessee should Group of answer choices use its incremental borrowing ra
    13·1 answer
  • Richards Corporation uses the weighted-average method of process costing. The following information is available for October in
    13·1 answer
  • A company makes travel umbrellas. Its fixed costs are $1000 a week and its variable costs for one batch of umbrellas are $500 fo
    8·1 answer
  • Using the information provided, calculate the direct materials quantity variance. Standard price $3.00 per pound Actual price: $
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!