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P. Jameson Co. sold $500 of merchandise on Master Card credit sales. The net cash receipts from the sale are immediately deposit

Alchen [17]

Answer:

The journal entry would be as follows:

Account Debit Credit

Cash $480

Sales Revenue $500

Credit Card Expense $20

The Credit Card Expense corresponds to the 4% fee that Master Card charged P. Jameson Co. ($500 x 20% = $20)

4 0

3 years ago

Which of the following statements is incorrect when allocating service department costs to operating departments?

Whitepunk [10]

Option C is incorrect when allocating service department costs to operating departments.

Explanation:

Typically, fixed costs are not assigned to working departments; however, they have to be absorbed by the service. This statement is incorrect in the service dept. Cost to Operating dept.

The reciprocal method assigns the cost of services to operating departments and other departments. The reciprocal costs are identified and the costs are assigned to each other and to services offered by each service department.

For example, if Service Department A requires certain services of Service Department B, the cost allocation system would not include these services. Since these services are not delegated to other departments, some auditors assume that the direct approach is not right.

6 0

3 years ago

Suppose that you are the manager of a large retail store that is currently experiencing a shoplifting problem. Every hour, $25 w

earnstyle [38]

Answer:

We will not hire a security guard.

Explanation:

Data provided

Merchandise stolen cost of every hour = $25

Hourly market wage for a security guard = $33

According to the given situation, The hourly loss is $25, and the hourly cost is $33, even if the shopkeeper keeps a security guard, then the cost per hour is $33, so the store loss increases by $33 - $25 = $8, so we will not hire the security guard to maximize the profit.

6 0

2 years ago

Block Island TV currently sells large televisions for $380. It has costs of $320. A competitor is bringing a new large televisio

photoshop1234 [79]

Answer:

Effect on income= (2,400,000)

Explanation:

Giving the following information:

Current selling price= $380

New selling price= $360

Unitary cost= $320

Units sold= 150,000*1.1= 165,000

We need to calculate the effect on income:

Effect on income= contribution margin new sales - contribution margin old sales

Effect on income= 15,000*(360 - 320) - 150,000*(380-360)

Effect on income= (2,400,000)

Prove:

New income= 165,000*40= 6,600,000

Actual income= 150,000*(380-320)= 9,000,000

Difference= (2,400,000)

5 0

3 years ago

Balance Sheet Jay Pembroke started a business in April. Prepare a Balance Sheet using the following balances for April transacti

alukav5142 [94]

Answer:

Jay Pembroke Company

Balance Sheet as of April 30

Assets:

Cash $12,950

Accounts Receivable 2,000

Office Supplies 4,600

Prepaid Insurance 1,200

Total assets $20,750

Liabilities:

Accounts Payable $300

Jay Pembroke, Capital 20,450

Total liabilities + equity $20,750

Explanation:

a) Data and Calculations:

Assets:

Cash $12,950

Accounts Receivable 2,000

Office Supplies 4,600

Prepaid Insurance 1,200

Liabilities:

Accounts Payable $300

Statement of Owner's Equity:

Jay Pembroke, Capital 18,000

Net income 2,550

Jay Pembroke, Drawing (100)

Ending Capital 20,450

Income Statement for the month ended April 30

Service Fees 3,300

Rent Expense 750

Net income 2,550

6 0

3 years ago