Answer:
<u>Black Diamond Express</u>
<u>Trial Balance as at January 31, 2018.</u>
Debit Credit
Accounts Payable $1,100
Rent Expense $500
Accounts Receivable $1,700
Service Revenue $3,000
Cash $1,400
Supplies $200
Common stock $2,000
Salaries and Wages Expense $1,300
Dividends $1,000
Totals $6,100 $6,100
Explanation:
A trial balance is a list of balances (debits and credits) that is prepared from the ledger accounts from which Financial Statements are prepared.
The Trial Balance can be used a check to the correctness of the double entry system.
Answer:
b. Those who have a reasonable understanding of business and economic activities
Explanation:
Financial statements by an entity should be prepared in such a way so as to enhance their understandability aspect and help in better comprehension and interpretation of financial information by the users.
The above objective can be met by providing detailed disclosures and appropriate notes to accounts as required by laws and statues i.e financial reporting framework.
Understandability refers to the fact that those individuals who have limited financial knowledge should be able to comprehend the presented information as intended and should be able to draw out reasonable conclusions from their understanding of the same.
A contract is a legal document between partners.
Answer:C.
Account Titles Debit Credit
Inventory 200
Cost of Goods Sold 200.
Explanation: Cost of goods sold(COGS) is the total amount spent directly to produce the goods which was sold, it can be calculated as follows
COGS = Beginning Inventory + Purchases During the Period – Ending Inventory.
Inventory is a term used to describe materials of value to an organisation that are in different stage such as RAW MATERIALS,WIP(WORK IN PROGRESS) AND FINISHED GOODS.
To show the inventory at the lower of cost or market the journal entry should be entered as follows; Account Titles Debit Credit
Inventory $200
Cost of Goods Sold $200.
The $200 represented the difference between $800 and $600 which is equal to $200. The $200 will be entered as the cost of goods sold.
Answer:
C) modular
Explanation:
In supply chain management, a modular bill of material is used when you manufacture products with several modules or optional features. In this case, the 10 base colors can be mixed together to form 3,000 different colors. Modular billing allows the company to organize them by subassemblies or product options.
