Answer: The total expected cash receipts during March is $232000.
Explanation:
Given that,
Budgeted sales in January = $210000
Budgeted sales in February = $260000
Budgeted sales in March = $220000
40% of sales are for cash and rest 60% are on credit
Total cash receipts during march = cash sales in the month of march + Credit sales in the month of February + Credit sales in the month of march
= 40% of 220000 + 260000 × 60% × 50% + 220000 × 60% × 50%
= 88000+78000+66000
= $232000
Therefore, the total expected cash receipts during March is $232000.
Answer:
A) debit interest expense, $1000
Explanation:
to determine the accrued interest expense = $100,000 x 6% x 2/12 = $1,000
the journal entry should be:
December 31, 2018, accrued interest expense on note payable:
Dr Interest expense 1,000
Cr Accrued interest payable 1,000
Accrual accounting establishes that expenses must be recognize during the period that they occur regardless of when they are paid. So we must recognize 2 months worth of interest.
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Answer:
Total cost= $60,800
Explanation:
Giving the following information:
For 4,000 units:
Unitary variable cost= $8
Unitary fixed cost= $5
<u>First, we need to calculate the total fixed cost:</u>
Total fixed cost= 5*4,000= $20,000
<u>Now, we can determine the total cost for 5,100 units:</u>
Total cost= 5,100*8 + 20,000
Total cost= $60,800
Answer:
The owner's equity amounts to $1,040,000
Explanation:
The formula to compute the owner's equity is as:
Owner's equity = Assets - Liabilities
Where
Assets = Land + Machinery + Cash
= $1,500,000 + $30,000 + $10,000
= $1,500,000 + $40,000
= $1,540,000
Liabilities = Loan
= $500,000
Putting the values above in the formula:
= $1,540,000 - $500,000
= $1,040,000
