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emmainna [20.7K]
4 years ago
5

Coaster Brothers, Inc. billed a client for services performed on March 12. The customer paid one-half of the amount owed on Marc

h 22 and the other one-half on April 24. When should the company record the related Service Revenue?
A. On March 12.
B. On March 22.
C. One-half on March 22 and the other half on April 24.
D. At year-end in an adjusting entry.
Business
1 answer:
Andru [333]4 years ago
7 0

Answer:

A. On March 12

Explanation:

The accounting  entry that would have been processed by Coaster Brothers Inc on March 12  would be

Accounts Receivable   Debit  

Service Revenue                        Credit

This would have been processed on March 12 since the services were performed.

The other options such as options B and C represent collection dates of the accounts receivable and would only involve the cash and receivable accounts.

Tear end adjusting entries are only recorded if there is an unbilled services or billed services in advance.

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Shahia Company bought a building for $73,000 cash and the land on which it was located for $107,000 cash. The company paid trans
Yuliya22 [10]

Answer:

Explanation:

Dr Building, Asset (73,000+6000+35,000) 114,000

Dr Land, Asset (107,000+10,000) 117,000

   Cr Cash (73,000+107,000+16,000+35,000) 231,000

4 0
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you just saw a video advertisement that shows an interview with a celebrity who says her life changed for the better when she st
julia-pushkina [17]

Urgency has the advertising company used to persuade you to buy the face cream

What is the Urgency technique?

In order to convince their audience and potential consumers to buy your product or obtain it at the best price, professionals in the field of sales utilize the tactic of urgency. Making clients feel pressured into making a purchase immediately rather than later can assist.

The audience's fear of missing out on something worthwhile, or FOMO, is frequently the target of urgent advertising. Typically, two factors must be combined in order to successfully appeal to this fear of missing out. The adverts often start out by explaining why the product is appealing. Second, they restrict the number of products offered, provide a sale price for a brief period of time, or combine these two standards.

What are the advantages of increasing sales urgency?

Your organization can profit in a number of ways from instilling a sense of urgency in sales. The following are a few of the most typical advantages of building urgency in sales:

assisting clients in taking quick decisions

Increasing sales and the perceived worth of your goods

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7 0
1 year ago
Arnell Industries has $35 million in permanent debt outstanding. The firm will pay interest only on this debt. Arnell’s marginal
Bas_tet [7]

Answer:

a) $0.5145 million

b) $7.35 million

Explanation:

Given:

Permanent debt outstanding = $35,000,000

Expected marginal tax rate = 21%

a) Suppose they pay an interest of 7% per year on debt. Find the annual interest tax shield.

To find annual interes tax shield use the formula below:

Annual interest tax​ shield =Total par value of Debt × interest rate × tax rate

= $35,000,000 × 7% × 21%

= $35,000,000 × 0.07 × 0.21

= $514,500

Annual interest tax​ shield = $0.5145 million

b) What is the present value of the interest tax shield, assuming its risk is the same as the loan?

Use the formula:

Present value of the interest tax​ shield = Annual interest tax​ shield /loan interest rate

= $514,500 / 7%

= $7,350,000

present value of the interest tax​ shield = $7.35 million

3 0
3 years ago
Stefani Company has gathered the following information about its product. Direct materials: Each unit of product contains 4.50 p
vodomira [7]

Answer:

The right solution is "$78.55".

Explanation:

The given values are:

Material cost,

= $5 per pound

Average freight costs,

= $0.25 per pound

Downtime average,

= 0.40 hours per unit

According to the question,

The direct material cost per unit will be:

=  ((4.5+0.5)\times 5\times 0.98)+(0.25\times (4.5+0.5))

=  (5\times 5\times 0.98)+(0.25\times 5)

=  24.5+1.25

=  25.75 ($)

The direct labor will be:

=  ((2.0+0.4)\times 12)+(3\times (2.0+0.4))

=  28.8+7.2

=  36 ($)

Manufacturing overhead will be:

=  (2.0+0.4)\times 7

=  2.4\times 7

=  16.8 ($)

hence,

The standard cost per unit will be:

=  Direct \ material+Direct \ labor+Manufacturing \ overhead

=  25.75+36+16.8

=  78.55 ($)

7 0
3 years ago
Winston churchill's stamp collection was valued at $14 million when he died. at auction, it brought in only $4 million. what was
katrin2010 [14]

$4 million.

An item is worth what the market is willing to pay for it, which is sometimes different than the estimated value.

6 0
4 years ago
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