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Alecsey [184]
3 years ago
9

Kline Corp. recognizes revenue over time to account for long-term contracts. The contract price is $5 million, total constructio

n costs are $3.75 million, actual costs incurred during the first year are $1.5 million, and the revenue recognized is $2 million. The journal entry to record revenue during year 1 is: (Select all that apply.)
a. Debit: CIP $500,000
b. Credit: Revenue $2 million
c. Debit: Cost of construction $1.5 million
Business
1 answer:
timurjin [86]3 years ago
7 0

Explanation:

The journal entry is shown below:

Contract price Dr $500,000

Cost of construction $1.5 million

        To Revenue $2 million

(Being the revenue for the year 1 is recorded)

For recording this transaction we debited the contract price and cont of construction while credited the revenues account so that the proper posting could be done

             

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Samuel is the managing general partner of STU, in which he owns a 25% interest. For the year, STU reported ordinary income of $4
Norma-Jean [14]

Answer:

$220,000

Explanation:

Calculation to determine How much income from self-employment did Samuel earn from STU

Using this formula

Income from self-employment =Guaranteed payment received+(Interest rate*Ordinary income)

Let plug in the formula

Income from self-employment=$120,000+(25%*$400,000)

Income from self-employment=$120,000+$100,000

Income from self-employment=$220,000

Therefore the amount of income from self-employment that Samuel earn from STU is $220,000

7 0
3 years ago
Melanie works in the public relations department at a major university. She is the editor of an internal newspaper, called Updat
Maurinko [17]

Options:

A) employee affairs

B) corporate relations

C) internal relations

D) employee relations

E) house communications

Answer:D) employee relations.

Explanation: Employee Relations is a term used in the field of human resources management to describe the various steps and actions put in place by an organisation in order to ensure a high performing,motivated and a positive relationship with its staff.

THROUGH AWARDS AND OTHER REWARD SYSTEMS ORGANISATIONS CAN EFFECTIVELY MAINTAIN A POSITIVE EMPLOYEE RELATIONSHIP.

6 0
3 years ago
Assume Metro Company had a net income of​ $2,100 for the year ending December 2018. Its beginning and ending total assets were​
Sever21 [200]

Answer:

7.92%

Explanation:

The computation of the return on total assets is shown below:

Return on assets = (Net income) ÷ (average of total assets)

where,  

Net income is $2,100

Average total assets = (Beginning total assets + ending total assets) ÷ 2

= ($33,500 + $19,500) ÷ 2

= $26,500

Now put these values to the above formula  

So, the ratio would equal to

= $2,100 ÷ $26,500

= 7.92%

7 0
4 years ago
The corporate charter of Gagne Corporation allows the issuance of a maximum of 100,000 shares of common stock. During its first
Elanso [62]

Answer:

authorized 100,000

issued 70,000

outstanding 70,000 - 4,000 treasury stock = 66,000

Explanation:

The amount authorized doesn't change unless the company start  the legal procedure to do it.

The shares, once issued, can't be destroyed.

Te outstanding shares are the mount in the market, that will be the issued shaes less the treasury stock, which are shares in the company's possesion.

6 0
3 years ago
Which of the following statements is normative? Group of answer choices Congress gives certain business corporations tax breaks.
fredd [130]

Answer: Congress gives too many tax breaks to corporations.

Explanation:

Normative statements are said to be statement of opinion and not fact.

Option D is therefore a normative statement because it is the opinion of the speaker that congress gives too many tax breaks because from a neutral standpoint, it cannot be said with certainty the number of tax breaks that will be considered too much.

The other options are statements of fact.

8 0
3 years ago
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