Answer: Debit Accounts receivable for $600.
Explanation:
The customer had not been billed so that means that they still owe the company. This would make them an accounts receivable so the adjusting entry will have to debit the Accounts Receivable account for $600 to show that it is increasing.
This amount will be credited to the Accrued revenue account to show that the cash has not yet been received.
Answer:
the total budgeted manufacturing cost is $292,600
Explanation:
The computation of the total budgeted manufacturing cost is shown below;
Total Budgeted Costs = Fixed Costs + Variable costs
= $12,300 + $292,600
= $304,900
Total Variable costs = Variable Cost Per Unit × Activity Level
= $14 × 20,900
= $292,600
Hence, the total budgeted manufacturing cost is $292,600
Answer:
Subtract vacancy and credit costs from potential gross income
Explanation:
Effective gross income (EGI) is actually the ratio or relationship that exists between the sale price of a property and effective gross income of that same property.
It is the potential gross income added to other income when vacancy and credit costs are subtracted from it.
EGI is used to determine the value of a rental property and the cash that the property generates.
Answer:
The goodwill is $1.1 million
Explanation:
In this question, first we have to compute the net asset which is shown below:
Net asset = Total asset - total liabilities
where,
Total asset = Land + building + inventory
= $1.7 million + $3.4 million + $2.2 million
= $7.3 million
And, the total liabilities = long term note payable = $1.5 million
So, the net asset would equal to
= $7.3 million - $1.5 million
= $5.8 million
Now the goodwill equal to
= Cash purchase price - net asset
= $6.8 million - $5.8 million
= $1.0 million
