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wel
3 years ago
8

Eugene Co. has inventory it purchased for $6,000. It sells the inventory to a customer for $10,000, including installation. Inst

allation sold separately costs $1,000 and the inventory sold separately costs $10,000. What amount of Sales Revenue is recognized by Eugene when delivery of the inventory has been made to the customer, but the installation has not been completed?
Business
2 answers:
ahrayia [7]3 years ago
8 0

Answer: $9090.91

Explanation:

Guven the following ;

Sales price of Inventory = $10,000

Installation cost = $1000

Inventory and installation = $10,000

Calculate : Amount of sales revenue recognized by Eugene when delivery of inventory has been made to customer but installation hasn't been completed.

That is, what is the sales price of the inventory alone at that price without adding the installation fee.

Total cost price if inventory and installation were charged separately

Price = $(10,000 + 1,000) = $11,000

Sale revenue =( price when sold together) ÷ (price when sold separately) × sales price of inventory

Sales revenue = ($10,000 ÷ $11,000) × $10,000 = 0.909090 × $10,000 = 9090.91

Scrat [10]3 years ago
5 0

Answer:

The necessary entries would be:

Dr Accounts receivable             $11,000

Cr Sales revenue                                     $10,000

Cr Deferred revenue                                $,1000

Explanation:

Revenue should be recognized in the books of account where the selling party has performed its obligation of delivering goods or rendering services as contained in the sales contract.

This contract contains provision of goods -inventory that have been delivered and rendering of services-installation that is in progress, as a result the revenue relating to the former is due to be recognized now while the  later would be recognized when is installation is concluded.

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7 0
3 years ago
f the steps are small, a step-variable cost may be approximated using a ______ cost function without significant loss in accurac
posledela

If the steps are small, a step-variable cost may be approximated using a Variable cost function without significant loss in accuracy.

<h3>Variable cost function</h3>
  • An expense for the company that varies according to how much is produced or sold is called a variable cost.
  • Depending on a company's production or sales volume, variable costs grow or fall. They climb as production rises and reduce as production declines.
  • It is a production cost whose level fluctuates in response to shifts in a business's manufacturing activities.
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7 0
2 years ago
Naomi has a home loan amount of $120,000. Her monthly principal and interest payment is $679.00 for thirty years. How much inter
Viktor [21]

Answer:

$124,440

Explanation:

Given a monthly principal and interest payment of $679, over the 30 year period, Naomi would have paid back

$679 * 30 year * 12 months in a year

= $244,440

With a loan amount of @120,000, the interest portion of the total repayment is therefore = total repayment less the loan amount

= $244,440 - $120000

= $124,440.

8 0
2 years ago
Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The com
Ivan

Answer:

Chapman Company

Statement of Cash Flows for the year ended May 2014:

Operating activities:

Cash from customers     $1,238,350

Cash to suppliers              ($683,910)

Salaries & Wages                (277,340)

Other expenses                    (10,548)

Income Tax                           (43,250)

Net Cash from operating activities       223,302

Investing activities:

Plant                                      (17,610)         (17,610)

Financing activities:

Dividends                           (104,312)

Interest                                (73,340)

Bonds                                  (29,870)

Issue of stock                        9,570

Net cash from financing activities        (197,952)

Net cash flows                                          $7,740

Explanation:

a) Data and Calculations:

1. CHAPMAN COMPANY

COMPARATIVE BALANCE SHEET

AS OF MAY 31

                                                 2014                2013

Current assets

Cash                                     $28,560       $20,820

Accounts receivable              75,850          58,940

Inventory                             220,080        250,770

Prepaid expenses                    9,148             7,580

Total current assets           333,638           338,110

Plant assets

Plant assets                        600,070        502,460

Less: Accumulated depreciation

—plant assets                      150,060         125,320

Net plant assets                 450,010          377,140

Total assets                     $783,648       $715,250

Current liabilities

Accounts payable            $123,190        $115,200

Salaries & wages payable  47,660           72,420

Interest payable                  27,980          25,490

Total current liabilities       198,830          213,110

Long-term debt

Bonds payable                    70,770        100,640

Total liabilities                  269,600        313,750

Stockholders’ equity

Common stock, $10 par  370,460       280,890

Retained earnings            143,588         120,610

Total stockholders’ equity 514,048      401,500

Total liabilities and stockholders’

equity                              $783,648     $715,250

2. CHAPMAN COMPANY

INCOME STATEMENT

FOR THE YEAR ENDED MAY 31, 2014

Sales revenue                    $1,255,260

Cost of goods sold                 722,590

Gross profit                             532,670

Expenses

Salaries and wages expense 252,580

Interest expense                       75,830

Depreciation expense              24,740

Other expenses                         8,980

Total expenses                       362,130

Operating income                  170,540

Income tax expense               43,250

Net income                          $127,290

3) Cash Receipts:

Cash from customers $1,238,350

Issue of stock                       9,570

4) Cash Payments:

Cash to suppliers         $683,910

Plant                                   17,610

Income Tax                      43,250

Dividends                        104,312

Salaries & Wages          277,340

Interest                            73,340

Other expenses              10,548

Bonds                              29,870

5) Prepaid Expenses

Ending balance             $9,148

Expenses                        8,980

Beginning balance         7,580

Cash paid                   $10,548

6) Accounts Receivable:

Beginning balance  $58,940

Sales                     1,255,260

Ending balance         75,850

Cash received   $1,238,350

7) Accounts Payable:

Beginning balance $115,200

Purchases                691,900

Ending balance      $123,190

Cash paid              $693,910

8) Purchases:

Ending inventory    $220,080

Cost of goods sold   722,590

Beginning inventory 250,770

Purchases               $691,900

9) Salaries and Wages Payable

Beginning balance $72,420

Expenses               252,580

Ending balance        47,660

Cash paid            $277,340

10) Interest payable:

Beginning balance $25,490

Expense                    75,830

Ending balance        27,980

Cash paid               $73,340

8 0
3 years ago
Approximately 2.2 million American workers are employed as customer service representatives.
bonufazy [111]

Answer:

the answer is true hope this helps

4 0
2 years ago
Read 2 more answers
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