<span>Gross income is:
~ All income in the form of money, property, and services that
is not exempt from tax.
~ Gross receipts from rental property (taxes, repairs, etc., are not
deducted).
~ A partner's share of the gross, not a share of the net, partnership
income.
~ Unemployment compensation and certain scholarships and fellowships.
Tax exempt income, such as certain social security payments, is not
included in gross income. Type of Income Amount Gross Income
------------- ----- ------------
Wages $15000
Interest $3000
Tax-exempt interest $3,000
Dividends $2000
Unemployment compensation $4,000
thus Total $21000</span>
Answer:
Businesses use three types of profit to examine different areas of their companies.
1. Gross profit subtracts variable costs to revenue for each product line. Variable costs are only those needed to produce each product, like assembly workers, materials, and fuel. It doesn't include fixed costs, like plants, equipment, and the human resources department. Companies compare product lines to see which is most profitable.
2. Operating profit includes both variable and fixed costs. Since it doesn't include certain financial costs, it's also commonly called EBITA. That stands for Earnings Before Interest, Tax, Depreciation, and Amortization. It's the most commonly used, especially for service companies that don't have products.
3. Net profit includes all costs. It's the most accurate representation of how much money the business is making. On the other hand, it may be misleading. For example, if the company generates a lot of cash, and it's invested in a rising stock market, it may look like it's doing well. But it might just have a good finance department, and not be making money on its core products.
Explanation:
Answer:
Dr Accounts payable-Misner co $150,000
Cr notes payable $150,000
On maturity date:
Dr notes payable $150,000
Dr interest expense $75
Cr cash $150,750
Explanation:
On the date of issuance,the $150,000 being the face value of the note is debited to accounts payable account of Misner Co in the books of accounts of the issuing company and credited to notes payable account
On the date of maturity of the notes,interest of $750 is due($150,000*6%*30/360).
The accounting entries on maturity of the notes payable is to debit the notes payable account with $150,000 as well as the interest expense account with $750 and the total of $150,750 ($150,000+$75) is credited to cash.
Answer:
c. $690
Explanation:
In FIFO method, A company can sell those products which it has purchased earlier.
Beginning Inventory = 10 units x $30 = $ 300
First Purchase = 25 units x $32 = $ 800
Second purchase = 30 units x $34 =$1,020
Third purchase = 10 units x $35 =$ 350
Total costs (75 units) = $2,470
As the firm uses FIFO inventory method, it has 20 inventory in hands,
Therefore, 10 units from the last purchase (third) and 10 units from second purchase will be remained unsold.
Hence, Ending inventory cost =
Second purchase 10 units x $34 = $340
Third purchase 10 units x $35 = $350
Total ending inventory cost = $690