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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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A company is preparing financial statements using IFRS for the first time for the year ended December 31, 2018. The "transition
8_murik_8 [283]

Answer:

E. January 1, 2017

Explanation:

Financial statements are prepared showing at least two years for the sake of comparability.

It will be important for the company in presenting its financial statement using the IFRS for the year ended December 31st 2018 to show the financial statements for the year ended 31st December 2017 as if it had always applied the IFRS.

The basic idea is to show in the financial statements the effects of adopting the IFRS from a preceding period in order for the entity to show the financial statement for 2017 and 2018 and be able to compare them having been prepared on the same basis.

Thus, the transition date will be the beginning of the preceding period when the IFRS was applied (1st Jan. 2017 oe 31st Dec. 2016).

I hope this explanation makes the concept easy to grasp.

Thank you.

7 0
3 years ago
The new-product process stage of market testing involves which two items? Multiple select question. using realistic purchase con
larisa [96]

The new-product process stage of market testing involves  two items -

  • Using realistic purchase conditions to see if consumers will buy
  • Exposing actual products to prospective consumers

  • To find out how well a product, service, or offering will perform, one can conduct market research.
  • It often consists of research studies that seek to provide answers to concerns about how the market will respond to the introduction of the product.
  • Convenience goods, shopping goods, specialty products, and unsought goods are the four categories of products, and each is categorized according to consumer preferences, pricing, and product features.
  • Let's explore each of them in more depth.

How many steps are in the new product development process multiple choice question?

  • The process of bringing a brand-new product idea to market is known as new product development (NPD).
  • It can be roughly divided into seven stages: ideation, research, planning, prototype, sourcing, costing, and commercialization, though it varies by industry.

Learn more about new product development (NPD) brainly.com/question/26679051

#SPJ4

4 0
2 years ago
Fenton Manufacturing Company at June 30: Cash in bank account $ 6,455 Inventory of postage stamps $ 74 Money market fund balance
Dmitrij [34]

Answer:

$19,462

Explanation:

The computation of the cash and cash equivalent is shown below:

= Cash in bank account + Money market fund balance + petty cash balance + money orders

= $6,455 + $12,400 + $350 + $257

= $19,462

It includes only cash in bank account, balance in money market, petty cash balance and the money orders

All other information which is given is not relevant. Hence, ignored it

5 0
3 years ago
Sally brings home $50,000 a year to help provide financial support to her family, comprised of her husband and two children. She
svp [43]

Answer:

$386,080

Explanation:

In order to find the Coverage of sally's investment in life insurance for 10year can be done by making 10-year table

Year     Cashflow    Discount factorI5%)    Present Value

                 $                       $                                  $

1           50,000              0.9524                        47,620

2           50,000              0.9070                       45,350

3           50,000              0.8638                        43,190

4           50,000              0.8337                        41,135

5           50,000              0.7835                        39,175

6           50,000              0.7462                        37,310

7           50,000              0.7107                         35,535

8           50,000              0.6768                        33,840

9           50,000              0.6446                        32,230

10          50,000              0.6139                        30,695

NPV =  Sum of all present values

NPV = $386,080

3 0
3 years ago
Yan Yan Corp. has a $5,000 par value bond outstanding with a coupon rate of 4.6 percent paid semiannually and 21 years to maturi
Aleonysh [2.5K]

Answer:

Price of the bond = $4,122.36

Explanation:

<em>The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).  </em>

Value of Bond = PV of interest + PV of RV  

The value of bond for Yan Yan Corp.  be worked out as follows:  

Step 1  

<em>PV of interest payments  </em>

Semi annul interest payment  

= 4.6% × 5,000 × 1/2 = 115

Semi-annual yield = 4.1%/2 = 2.05  % per six months  

Total period to maturity (in months)   = (2 × 21) = 41 periods

PV of interest =  

115  × (1- (1+0.0205)^(-21)/0.0205)=1,946.47

Step 2  

<em>PV of Redemption Value  </em>

= 5000 × (1.0205^(-41)   = 2,175.89

<em>Step 3:Price of the bond </em>

Total present Value = 1,946.47  +  2,175.89  = 4,122.36

Price of the bond = $4,122.36

 

5 0
3 years ago
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