Answer:
(B) For Month Ended April 30, 20--.
Explanation:
Since, the income statement reflects the activities of the specific firm/entity/company for a particular period, therefore the date on income statement is always written in below manner depending on the number of months it represents.
If 12 months are represented by the income statement, then the date on such income statement is written as:
For year ended April 30,20--.
If 6 months are represented by the income statement, then the date on such income statement is written as:
For six months ended April 30,20--.
If 1 month is represented by the income statement, then the date on such income statement is written as:
For month ended April 30,20--.
Keeping in view the above discussion, the answer to the question shall be
(B) For Month Ended April 30, 20--.
Answer:
Interest receivable A/c Dr $225
To Interest revenue A/c $225
(Being the accrued interest is recorded)
Explanation:
The journal entry to record accrued interest is shown below:
On December 31
Interest receivable A/c Dr $225
To Interest revenue A/c $225
(Being the accrued interest is recorded)
For recording this transaction we debited the interest receivable as it reflect in current asset and credited the interest revenue for $225 as it depict income
Answer:
False
Explanation:
The reason is that accrual concept says that the income must only be realized when the revenue are earned which means that the company has delivered her consideration (The part of the service that is delivered to the customer which has monetary value). So the income earned is equal to the monetary value of the two suits they had designed till June 30. So the double entry would be:
Dr Revenue accrued 49000/10suits *2 suits = $9800
Cr Trade Receivables $9800
So saying that the service revenue of $12,250 must be accrued is totally false statement.
Answer:
A circular definition is one that uses the term(s) being defined as a part of the definition or assumes a prior understanding of the term being defined. There are several kinds of circular definition, and several ways of characterising the term: pragmatic, lexicographic and linguistic.
