Answer:
$2,500,000
Explanation:
The computation of the amount which would be credited is shown below:
= Payment of foreign currency units (FC) is due in 30 days × exchange rate i.e spot rate on May 31
= 2,000,000 × $1.25
= $2,500,000
We simply multiply the payment with the spot rate so that the accurate value can come.
All other information which is given is not relevant. Hence, ignored it
Internal control is defined as the procedures and processes used by a company to safeguard its assets, process information accurately and to ensure compliance with laws and regulations.
<h3>Internal control</h3>
Internal controls also include the measures a company takes to ensure its employees comply with all laws and regulations and do not steal company assets. Physical controls like door locks, area restrictions, safes and surveillance equipment are internal controls, too.
Internal controls are policies, procedures, and technical safeguards that protect an organization's assets by preventing errors and inappropriate actions. Internal controls fall into three broad categories: detective, preventative, and corrective.
To learn more about Internal controls visit the link
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Answer:
unearned service revenue 7,500 DEBIT
service revenue 7,500 CREDIT
Explanation:
the job is complete on July 31th
so <em>we write-off the unearned service reveue</em>
and <em>we recognize the service revenue </em>for the whole amount of the contract
The cash receipt occurs on March 1st so w edon't haveto post anythign related to cash on July 31th.
the unearned revenue account is used first because the business has the obligation of perform the job or return the cash. So it is a liablity until the job is completed
Answer:
1 Depreciation expeense (Debit) $4,200
Accumulated depreciation (Credit) $4,200
2.Bad Debt expense (Dr.) $6,900
Accounts Receivables (Cr.) $6,900
3. Accrued Interest Expense (Dr.) $1,200
Notes Payable (Cr.) $1,200
4. Accrued Income Tax (Dr.) $14,200
Cash (Cr.) $14,200
5. Cash (Dr.) $4,200
Redemption of Gift Cards (Cr.) $4,200
Explanation:
Depreciation expense is considered as a tax shield. The larger the depreciation expense, the lower will be the taxable income. The adjusting entries are required before trial balance is created. There are few transaction that occur after the initial recording of the transactions. These transaction needs to be adjusted before the financial statements preparation.
Answer:
book value of Moss’s inventory = $388000
Explanation:
given data
year end inventory = $400,000
selling price = $408,000
costs to sell = 20,000
to find out
book value of Moss’s inventory
solution
we know that inventory value should be low the cost or net realisable cost
so here net realisable cost will be
net realisable cost = selling price - costs to sell
net realisable cost = $408,000 - $20,000
net realisable cost = $388000
so book value of Moss’s inventory will be $388000 due to lower value
