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Anuta_ua [19.1K]
3 years ago
14

Sheridan, a lawyer, accepts a legal engagement in March, performs the work in April, and is paid in May. In completing the engag

ement, Sheridan pays no costs in March, $2,590 in April, and $3,090 in May (incurred in April). How much expense should the firm deduct from revenues in the month when it recognizes the revenue?
Business
1 answer:
Brrunno [24]3 years ago
8 0

Answer:

The $5,680 expense should the firm deduct from revenues in the month when it recognizes the revenue.

Explanation:

According to the matching accounting principles, the expenses and revenues should be recorded in that period in which they are incurred and earned.

In the question, the Sheridan pays $2,590 in April, and $3,090 in may but it incurred in April

So, the total amount would be $2,590 + $3,090 = $5,680 should be recorded on April month only.

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irina1246 [14]
That's a 'cartel'.  It's illegal in the US.  It's also, mean, nasty, and not fair.
7 0
2 years ago
Flounder Corporation owns machinery that cost $26,400 when purchased on July 1, 2017. Depreciation has been recorded at a rate o
Alecsey [184]

Answer:

A. Dr Depreciation Expense $2,123

Cr Accumulated Depreciation $2,123

B. Dr Cash $13,860

Dr Accumulated Depreciation$13,211

Cr Machiner$26,400

Cr Gain on Disposal of Machinery$671

Explanation:

Preparation of the journal entries to (a) update depreciation for 2021 and (b) record the sale.

A. Preparation of the journal entries to (a) update depreciation for 2021

Dr Depreciation Expense $2,123

Cr Accumulated Depreciation $2,123

(3185*8/12)

B. Preparation of the journal entries to record the sale

Dr Cash $13,860

Dr Accumulated Depreciation$13,211

($11,088+$2,123)

Cr Machiner$26,400

Cr Gain on Disposal of Machinery$671

[($13,860+$13,211)+$26,400]

7 0
2 years ago
Gina made a down payment on a motorcycle. What incentive did she have for making a down payment?
8_murik_8 [283]

Answer:

A reduced time in debt

Explanation:

Gina intends to purchase that motorbike on credit. By making a down-payment, Gina is reducing the amount she needs to borrow to buy the bike.

A reduced loan amount means that Gina will require less to repay. It also implies that the interest to be paid will reduce. Making the down-payment helps Gina stay in debt for a short period.

7 0
3 years ago
Common misconception about entrepreneurship
Y_Kistochka [10]

Answer:

1. Entrepreneurs can only be successful if they have large funding backing them.

2. Entrepreneurs have cushy hours.

3. Entrepreneurs have to do everything themselves.

5. Entrepreneurs have to take huge risks.

7. Entrepreneurs are never stressed out.

8. Entrepreneurs are all wealthy.

9. Entrepreneurs are their own boss.

10. Entrepreneurs have more personal time.

4 0
3 years ago
Marginal​ cost-benefit analysis and the goal of the firm   Ken​ Allen, capital budgeting analyst for Bally​Gears, In
mafiozo [28]

Answer:

a.The marginal (added) benefits of the proposed new robotics.

  • $195,000

b. The marginal (added) cost of the proposed new robotics.

  • -$227,200

c. The net benefit of the proposed new robotics.

  • loss =  -$32,200

d. What should Ken recommend that the company do? Why?

  • Based only on this analysis, the company should keep the old robotics. The new robotics are too expensive and do not generate enough benefits.

e. What factors besides the costs and benefits should be considered before the final decision is made?

  • increases in efficiency and reductions in manufacturing time.

Explanation:

Marginal cost benefit analysis refers to analyzing the additional benefits of a new project or activity compared to the benefits generated by an alternative project or activity.

In this case, both alternative should be evaluated as follows:

                                alternative 1           alternative 2        marginal

                                keep robotics        change robotics  benefits

revenue (in              $446,000              $568,000             $122,000

today's $)  

required invest.                   $0             -$227,200           -$227,200

old robotics                         $0                $73,000               $73,000

<u>sales value                                                                                           </u>

marginal benefits / losses                                                  -$32,200

6 0
2 years ago
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