Answer:
$75,000
Explanation:
Revenue is said to be earned on the deliver of the goods and services to the party that enjoys the benefits from the good or service.
As long as control of the goods has been transferred, the revenue is earned. Note that this is not when cash has been collected.
As such, if the company earned $75,000 in 2018 but some amounts are to be collected in subsequent years, the revenue earned in 2018 is still $75,000 while the amounts yet to be collected will be recognized in accounts receivable.
Answer:
The answer is B. $10,000
Explanation:
Straight-line depreciation method equals:
[Historical cost of the asset - salvage value(if any)] ÷ useful number of years of the asset.
Historical cost of the asset = $33,000
Salvage value = $3,000
Useful life = 3 years
= ($33,000 - $3,000) ÷ 3 years
=$10,000
So the amount of depreciation that will be recorded during 2018 using the straight-line method is $10,000
Answer:
$242,800
Explanation:
Tax Base Accounting Base Temporary Difference
2021 Insurance Expense $234,000 0 $234,000
This insurance expense will result in taxable temporary difference=$234,000*20%=$46,800
The journal entry will be;
Income Tax Expense Dr.$46,800
Deferred Tax liability Cr.$46,800
Therefore Income tax expense will be=$196,000+$46,800=$242,800
The future value of a current investment is calculated through the equation,
F = P x (1 + i)^n
where F is the present value, F is the future value, i is the nominal interest rate, and n is the number of years.
Substituting the known values,
F = ($375)(1 + 0.03)^1 = $386.25
Hence, the answer to this item is letter C.
Answer:
Explanation:
The statement of stockholder's equity comprises common stock and retained earnings. The ending balance after adjustment shown in the attached spreadsheet.
The ending balance of retained earning = Beginning balance of retained earnings + net income - dividend paid
And, the ending balance of the common stock = Beginning balance of common stock + issued shares
Before preparation, first, we have to compute the net income which is shown below:
Net income = Sales revenue - cost of goods sold - operating expenses
= $766,600 - $524,400 - $86,300
= $155,900
The preparation of the statement of stockholders’ equity is presented in the spreadsheet. Kindly find the attachment below:
