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love history [14]
3 years ago
15

Joss Distributors had the following revenue-related transaction during December: Collected cash for services provided in Novembe

r, $12,000 Provided services on account, $24,500, of which Joss collected $14,000 Received $2,000 on December 1 for services to be provided evenly in December and January. According to the revenue recognition principle, how much revenue should Joss record for December?
Business
1 answer:
Elodia [21]3 years ago
8 0

Answer:

The revenue for the month of December would be $25,500.

Explanation:

As per the revenue recognition principle, the revenue is recorded as and when the services are rendered or goods are delivered to the customer.

Cash collected for services provided in November: This won't be recorded as revenue in December as the services were rendered in the month of November. Therefore, it belongs to the month of November and not December.

Provided services on account $24,500 (collected $14,000 only): This would be considered as the revenue earned in the month of December.

Received $2,000 on December 1 and services provided evenly in December and January: The services will be provided evenly in both the months. So, the amount will be recorded as service revenue evenly in both the months. Thus, $1,000 would be recorded as revenue for December and remaining $1,00 as revenue for January.

Therefore, the revenue for December would be = $24,500 + $1,000 = $25,500.

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During the year, Cheng Company paid salaries of $24,000. In addition, $8,000 in salaries has accrued by the end of the year but
Burka [1]

Answer:

Correct answer is D. Credit to Salaries Payable for $8,000

Explanation:

Based on the basic underlying guideliness in accounting, specifically matching principle. All income and expenses should be reported during the period it incurred. Thus, all expenses incurred during the period even though it wasn't paid yet shoud be recorded to the book and that's the moment that the year-end adjusting entry is necessary.

On the above given problem, the salaries paid of $24,000 is presumed to have been recorded in the book already. Because it incurred and paid within the calendar period. In addition, the salaries accrued by the year end needs year-end adjustment<em> to recognize the salaries expense applicable for the period</em>. Journal entry of it is to debit salaries expense and credit salaries payable in the amount of $8,000.

6 0
3 years ago
Business operations Essay​
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Answer:

The description of the given term "Business operations" is provided below.

Explanation:

  • Together with all measures essential to manage as well as generate money besides your firm, is considered as business operations.
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Many small businesses choose to outsource their payroll activities to firms that specialize in providing payroll services. Dolor
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Answer:

revenue cycle

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Dolores Yu provides a payroll processing business. According to question, service has been rendered and now its time to collect bills for those service.

Since revenue cycle is capturing of bills and payment for product or service rendered. The work mentioned in the problem is part of revenue cycle.

5 0
3 years ago
. For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual in
Zielflug [23.3K]

Answer:

Inventory cost will be $3

So option (b) is correct option

Explanation:

We have given that carrying and setup cost is $600

So carrying and setup cost = $600

And EOQ = 200 units

We have to find the inventory carrying cost per year

We know that inventory carrying cost is given by

inventory carrying cost =\frac{carrying\ and\ setup\ cost}{EOQ}=\frac{600}{200}=$3

So option (b) will be correct option

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Cedar Designs​ Company, a custom cabinet manufacturing​ company, is setting standard costs for one of its products. The main mat
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Answer:

Standard direct labour cost = $20.00   per hour

Explanation:

The direct labour costs represent expenditures incurred in respect of direct worker which can be traced to the product been produced. For example, the labour cost of machine operator saddled with production task.

The payroll cost is not a direct labour cost because payroll employed are not direct workers, also benefits are overheads related to direct workers

Standard direct labour cost = $20.00

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3 years ago
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