Answer:
Dividends - <em>Statement of Changes in Retained Earning</em>
Dividends are payments to shareholders from a company's net income. They are derived from the Statement of Changes in Retained Earning because this is where Net Income is sent to. After they are deducted from Retained Earnings, the Earnings form part of Equity.
Differed Revenue - <em>Balance Sheet</em>
Differed Revenue refers to money that was received from a customer or client for goods and/or services that have not yet been delivered. The business will treat them as a liability until they are delivered so they will go under Current Liabilities in the Balance Sheet assuming they are to be fulfilled in 12 months or less which is usually the case.
Service Revenue - <em>Income Statement</em>
These are revenue that the business earns for providing a service when their main source of revenue is by selling goods. It is listed in the Income Statement just after Revenue and is added to Revenue to get Total Revenue.
Explanation:
The Journal Entry from July 1 and July 31 is shown below:-
1. Cash Dr, $560
To Deferred revenue $560
(Being cash is received)
2. Deferred revenue $336
To Sales revenue $336
(Being 12 months sales service is recorded)
3. Cost of goods sold $280
To Inventory $280
(Being cost of goods sold is recorded)
4. Deferred revenue ($336 ÷ 12) $28
To Service revenue $28
(Being Deferred service revenue is recorded)
Working Note:-
Cellular service revenue = offer price ÷ total cost of phone and service × cellular service
= (($560 ÷ ($448 + $672)) × $672
= $336
Answer: FVn = P( 1 + r )^n
Explanation:
Compound interest means that the bank is providing you with a return based on the opening balance on your account each year. This opening balance will include the interest earned in the previous year therefore ensuring that the bank will keep paying you a higher interest each year.
The formula is;
<em>FVn = P( 1 + r )^n</em>
Where;
FVn is the future value of the amount after n number of years
P is the money that you deposited
r is the interest rate that the money is being compounded with
n is the number of years
Answer:
Option "C" is the correct answer to the following statement.
Explanation:
The income statement is a type of financial account that shows a firm's profit or loss for a particular period.
An investor wanted to invest in a firm that has higher profitability than the other firm or organization, Income statements help him to know about the profitability of a firm.
- Income statement describes how to profit generated and how much profit or dividend distributed by firm.
Answer:
The adjusting entry at the end of the year will include a credit to allowance for doubtful accounts in the amount of $910.
Explanation:
Allowance for Doubtful Accounts balance should be Credit balance, Since we have $120 debit balance and want to create $790 Allowance for Doubtful Accounts credit balance we have to credit Allowance for Doubtful Accounts by ($790 + $120 = $910) to get Allowance for Doubtful Accounts $790 Credit balance.
Therefore, The adjusting entry at the end of the year will include a credit to allowance for doubtful accounts in the amount of $910.