Answer:
True
Explanation:
The company received $15000 and credited it to the unearned consulting Revenue accounts because it had not performed any services yet.
According to the accrual principle, the company can only report the amount earned in a period. If the company achieves the required 10% of consulting services by 31st march, it will record 10 percent of $15,000 as its income.
10 percent of $15000= 10/100 x $15000
=$1500
Answer:
B. Sandy recognized gain of $400,000.
Explanation:
Sandy transfers land of basis $100,000 to Dolphin Corporation. The land worth is $500,000 which is transferred to Dolphin Corporation in return for all the stocks worth $300,000 and note was executed by Dolphin amounting $200,000. The total consideration of Dolphin Corporation amounts $500,000 which the worth of the land transferred by Sandy. The basis of Land was $100,000. Sandy can recognize a gain of $400,000.
Answer:
- Entry for Establishing Petty cash fund:
Dr: Petty Cash $ 229
Cr: Cash/bank $229
- Entry for Expense paid out of Petty cash:
Dr: Office Supplies $ 95
Dr: Misc Expense $ 120
Cr: Petty Cash $ 215
- Entry for Reimbursement of Petty cash fund:
Dr: Petty Cash $ 0
Cr: Cash/Bank $ 0
No entry is required at the moment as the petty cash fund balance after the transactions is not below $11 which is the reimbursement limit ($229-$95-$215 = $14)
Explanation:
A petty cash fund is a fund established within an entity in order to pay out day to day small expenses out of expenses. It is recognized as an current asset when initially set up and slowly expense out as soon as the money is taken out from it for a specific expense.
Examples: Petty cash payment can be used for below small expenses:
- Postage and stationery
- Meals and entertainment
- Office Supplies
- Conveyance Allowance
- Sundry Expenses etc.
Answer:
A.July 15
Dr Accounts receivable 50,000
Cr Sales revenue 50,000
July 23
Dr Cash 49,000
Dr Sales discounts 1,000
Cr Accounts receivable 50,000
B. July 15
Dr Accounts receivable50,000
Cr Sales revenue 50,000
Aug. 15
Dr Cash 50,000
Cr Accounts receivable 50,000
Explanation:
A.Preparation of journal entries to record the sale on July 15 and collection on July 23 using the gross method of accounting for cash discounts.
July 15
Dr Accounts receivable 50,000
Cr Sales revenue 50,000
(1,000 tires×$50 each)
July 23
Dr Cash 49,000
(50,000-1,000)
Dr Sales discounts 1,000
(2%×50,000)
Cr Accounts receivable 50,000
(1,000 tires×$50 each)
B.Preparation of journal entries to record the sale on July 15 and collection on August 15 using the gross method of accounting for cash discounts.
July 15
Dr Accounts receivable50,000
Cr Sales revenue 50,000
(1,000 tires×$50 each)
Aug. 15
Dr Cash50,000
Cr Accounts receivable50,000
(1,000 tires×$50 each)
Answer:
while inflation is undesirable, the breakdown of the economy that would occur in the absence of an inflation tax would be worse.
Explanation:
This is because, they believe that, when the economy under inflation is taxed, the money generated would be used to cushion the effects of those inflation through adequate management and administering of policies and projects.
