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Alisiya [41]
3 years ago
11

Exercise 9-2 Recording known current liabilities LO C2 Listed below are a few transactions and events of Piper Company. Piper Co

mpany records a year-end entry for $10,000 of previously unrecorded cash sales (costing $5,000) and its sales taxes at a rate of 4%. The company earned $50,000 of $125,000 previously received in advance and originally recorded as unearned services revenue. Prepare any necessary adjusting entries at December 31, 2017, for Piper Company's year-end financial statements for each of the above separate transactions and events. (Piper has the policy of recording cash received in advance in balance sheet accounts.)
Business
1 answer:
Virty [35]3 years ago
6 0

Answer and Explanation:

The Journal entry is shown below:-

1. Cash Dr, $10,400

             To Sales $10,000

              To Sales taxes payable $400

(Being the cash is recorded)

Here we debited the cash as  it increased the assets and we credited the sales and sales tax payable as  it increased the sales and the liabilities

2. Cost of goods sold Dr, $5,000

                 To Merchandise inventory $5,000

(Being cost of goods sold is recorded)

Here we debited the cost of goods sold as it increased the expenses and we credited the merchandise inventory as  it reduced the assets

3. Unearned services revenue Dr, $50,000

              To Earned services revenue $50,000

(Being unearned service revenue is recorded)

Here we debited the unearned service revenue as it decreased the liabilities  and we credited the earned service revenue as it increased the revenue

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Better Houses, Inc. has been contracted to build an addition on the Joyners' house. It built half of the addition and then unexp
topjm [15]

Better Houses, Inc. has been contracted to build an addition on the Joyners' house. It built half of the addition and then unexpectedly announced that it was not going to finish the job. Such a desertion of work is called "Abandonment of contractual obligations".

<h3>What is contractual obligations?</h3>

Contractual obligations are responsibilities that each party is bound by law to fulfill under the terms of the agreement.

Each contract involves one or both parties exchanging anything of value in connection with a variety of duties, such as goods, services, money, etc.

Elements of a Contract are-

  • Offer: An offer was made when one of the parties pledged to carry out or refrain from carrying out a specific action in the future.
  • Promise of consideration: A promise of something of value in return for the intended conduct or inaction. This can be demonstrated by a substantial outlay of resources, a promise to provide a service, a commitment not to do something, or reliance on the promise. The incentive for the parties to enter into the agreement is known as consideration.
  • Acceptance: The offer was unmistakably accepted. Acceptance can be demonstrated through words, actions, or by carrying out the contract's requirements. In general, the terms of the acceptance must match those of the offer. If not, the acceptance is interpreted as a counteroffer and rejection.

To know more about the contractual obligations, here

brainly.com/question/22433474

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8 0
1 year ago
Scrumptious Snacks Inc. manufactures three types of snack foods: tortilla chips, potato chips, and pretzels. The company has bud
beks73 [17]

Answer:

Results are below.

Explanation:

<u>First, we need to calculate the number of processing hours:</u>

Processing hours= (0.25*3,000) + (0.1*6,000) + (0.3*3,500)

Processing hours= 750 + 600 + 1,050

Processing hours= 2,400

<u>Now, we can calculate the predetermined overhead rate:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 207,000 / 2,400

Predetermined manufacturing overhead rate=$86.25 per processing hour

<u>To allocate overhead, we need to use the following formula:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Tortilla chips= 86.25*75= 64,687.5

Potato chips= 600*86.25= 51,750

Pretzels= 86.25*1,050= 90,562.5

<u>Finally, the unitary cost:</u>

Tortilla chips= 64,687.5 / 3,000= $21.56

Potato chips= 51,750 / 6,000= $8.63

Pretzels= 90,562.5 / 3,500= $25.88

8 0
3 years ago
Describe two types of investment accounts that you might use in the future. For each type of account, list at least one reason w
larisa [96]
401k is an investment account that you can use to save your paycheck from your work. Most employers provide this. 

A 529 is also another good investment for saving up for college as there are no taxes applied to the investment or income as long as it is used for schooling.

A HSA plan is able to accumulate value for a future health purchase and is also usually taken out of your paycheck. Taxes do not apply so you get the full value of the amount you decide to set aside.
8 0
3 years ago
On April 1, Pujols, Inc., exchanges $590,000 fair-value consideration for 70 percent of the outstanding stock of Ramirez Corpora
Svet_ta [14]

Answer:

Closing NCI = $234,300 + $69,000 = $303,300

Explanation:

The Question is to identify the non-controlling interes in Ramirez Corporation

First we determine the Net income of Ramirez

Net Income = Revenues - Expenses

= $635,000 - $405,000 = $230,000

The next step is to dtermine the value of non -controling interest in teh net income of Ramirez.

Non-Controlling Interest in Net Income = NCI percentge x Net Income

= 30% x $230,000 = $69,000

Finally, based on these calculations , we can compute the Closing Balance of Non-Controlling Interest

The formula = Opening Non-Controlling Interest + Non-controlling Interest Share of Net income

Closing NCI = $234,300 + $69,000 = $303,300

3 0
3 years ago
Your company decides to use internal sources for developing new product ideas. Which of the following would not be a common inte
Fed [463]

Answer: (D) Suppliers

Explanation:

 According to the given question, the organization using the various types of internal sources as it helps in developing the various types of new products ideas in the market.

The supplier is one of the common internal source in an organization as it helps the employees for encourage them for developing various types of new ideas and concepts.

The organization basically developing various types of new ideas by the formal research process and also through the development. Therefore, Option (D) is correct answer.

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