Answer:
The $20 ticket to the match.
Explanation:
The sunk cost would be the $20 ticket to the match.
Answer:
$127,400
Explanation:
Gross profit ratio = [(sale - cost) ÷ sale price] × 100
= [($5,000,000 - $3,700,000) ÷ $5,000,000] × 100
= 0.26 × 100
= 26%.
Gross profit on down payment is recognized in 2019:
= Down payment × Gross profit ratio
= $490,000 × 26%
= $127,400
Answer:
Accounting entity concept:
The basic idea behind this concept is that business and the owner are two different entities. Their transactions are to be recorded separately.
Going concern concept:
The concept is to have a view that the company is going to stay solvent in the future. That is we will have another accounting year in the future unless and otherwise we have evidence to the contrary.
Cost-benefit constraint:
It limits the amount of time to research the cost of an event if its benefits outweighs. In case of an immaterial event if its cost outweighs the benefits then that event can be forgone.
Expense recognition (matching principle):
The matching principle states that all the expenses are to be recorded based on the year they have been incurred rather than on the time they are paid.
Materiality constraint:
It states that any event that changes or effects the decision making of the user of financial statement should be recorded and vice versa.
Revenue recognition principle:
It states that the revenue is to be recorded in the period in which it has been incurred instead when it is collected. Accrual basis gives a more clear picture of the performance of the company.
Full disclosure principle:
It requires to disclose any information to be mentioned in the foot notes of the financial statements of the company that might affect the user of financial statement. This helps in identifying the methods used for accounting practices and any event that might effect the organisations future existence.
Cost principle:
To record the transactions based on their historical costs rather than making adjustments for fluctuations in market place.
Answer:
The budgeted materials need in liters for April is $54,800 liters.
Explanation:
For computing the needed budgeted material for April month, following equation is used which is shown below:
= Budgeted raw material + closing inventory - opening inventory
where ,
budgeted raw material for April month is $56,000 liters
Closing inventory is 30% of following month which equals to
= 52,000 × 30%
= 15,600 liters
and, opening inventory is given i.e. 16,800 liters.
Now, apply these values to the above equation which equals to
= $56,000 + $15,600 - $16,800
= $54,800 liters
Thus, the budgeted materials need in liters for April is $54,800 liters.
Answer:
$1,224,000
Explanation:
Given that,
Accounts receivable balance, 1/1/2021 = $ 858,000
Credit sales for 2021 = $3,450,000
Accounts receivable written off during 2021 = $54,000
Collections from customers during 2021 = $3,030,000
Allowance for uncollectible accounts balance, 12/31/2021 = 215,000
Halloran report for accounts receivable, before allowances, at December 31, 2021:
= Beginning accounts receivables + Credit sales for 2021 - Accounts receivable written off during 2021 - Collections from customers during 2021
= $858,000 + $3,450,000 - $54,000 - $3,030,000
= $1,224,000
