Answer: $27,333
Explanation:
Data:
Amount earned = $25,000
Amount received = $12,000
Using accrual method of accounting, income and expenses are recognized as it is being made or earned irrespective of the amount of cash paid or received.
Fair market value = payment received * 7/36
= $12,000 * 7/ 36
= $2333.333
Chaya reported income = amount earned + fair market value
= $25,000 + $2333.333
= $27,333.
Answer:
False is the correct answer.
Explanation:
Answer:
Cost of goods sold= $816
Explanation:
Giving the following information:
Acme-Jones Corporation uses a weighted-average perpetual inventory system.
August 2: 24 units were purchased at $23 per unit.
August 18: 40 units were purchased at $25 per unit.
On August 29: 34 units were sold.
Weighted-average= (23 + 25)/2= $24
Cost of goods sold= 34*24= $816
Answer:
Behan will recover his amount.
Explanation:
The contract has not been formed as the contract is only enforceable if the contract is legally allowed which means that the selling of fireworks in this case scenario is not allowed and hence Behan and Fourth of July Company are both equally responsible for not committing to such type of agreements. So the company must payback the money as the contract is not enforceable in the jurisdiction.