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valentina_108 [34]
3 years ago
8

Pat's Custom Tuxedo Shop maintains its records on the cash basis. During this past year Pat's collected $42,000 in tailoring fee

s, and paid $14,000 in expenses. Depreciation expense totaled $2,000. Accounts receivable increased $1,500, supplies increased $4,000, and accrued liabilities increased $2,500. Pat's accrual-basis net income was: Multiple Choice $18,000.
Business
1 answer:
SVEN [57.7K]3 years ago
8 0

Answer:

The question is incomplete the answer is $29000

Explanation:

The question only has the first option A. which is $18000. we know that when you are finding the net income it contains of Revenue minus operating expenses but on accrual basis we also include differed and accrued expenses so here we will be identifying each transaction in where it fits.

$42000 tailoring fees are revenue as this is a Tuxedo custom shop;

$14000 are expenses as they stated

Depreciation is an expense of $2000

Accounts receivable is an asset that increases on the debit side therefore it will be added to income for the tuxedo shop in which its value is $1500 and we are told that they increased.

Supplies increased so we will also add them to income at a value of $4000

Accrued liabilities will increase on the credit side therefore will be subtracted on the income received as they are liabilities which amount to $2500. Therefore accrual basis net income = $42000-$14000-$2000+$4000+$1500-$2500

=$29000 which is the accrual basis net income.

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Soundgarden Company sold 200 color laser copiers on July 10, 2020, for $4,000 apiece, together with a 1-year warranty. Maintenan
ziro4ka [17]

Answer:

Soundgarden Company

Journal Entries:

July 10, 2020:

Debit Cash Account (or Accounts Receivable) $800,000

Credit Sales Revenue $800,000

To record the sale of 200 copiers at $4,000 apiece.

July 10, 2020:

Debit Warranty Expense $66,000

Credit Warranty Liability $66,000

To record the estimated warranty maintenance on copiers sold.

December 31:

Debit Warranty Liability $17,000

Credit Inventory $17,000

To record actual warranty costs incurred.

Explanation:

Soundgarden should record these transactions according to the matching principle, whereby warranty expense is recognized in the period that matches the sale so that all expenses related to sales are recognized when the sales are recognized.  This is achieved by creating a warranty liability account after the sales and recording a warranty expense as the debit entry.  When actual warranty costs are incurred, the Soundgarden Company will debit the warranty liability and credit the inventory actual for the actual costs.

7 0
3 years ago
Sandra Morris is presently leasing a small business computer from Eller Office Equipment Company. The lease requires 10 annual p
Andre45 [30]

Answer: a. $73,810.88

b. $10,185.18

Explanation:

a. The payments of $11,000 are constant so this can be considered an Annuity.

The cost of the Computer is it's present value which is,

Present Value of Annuity = Annuity Payment * Present Value Interest Factor of Annuity, 11%, 10 periods

= 11,000 * 6.71008 (Payment is made at the end of the year so this is an Ordinary Annuity)

= $73,810.88

b. When an Annuity is instead paid at the beginning of the period it is considered to be an Annuity due.

The formula is the same but for the figures ,

Present Value of Annuity Due = Annuity * Present Value Interest Factor of an Annuity Due, 11% , 10 periods

73,810.88 = Annuity * 7.24689

Annuity = 73,810.88/7.24689

= $10,185.18

7 0
3 years ago
Assume December 31 is a Wednesday. Weld-Rite Company’s wages are paid every Friday, and the weekly payroll (for five days) amoun
AlexFokin [52]

Answer:

Please see explanation

Explanation:

The following journal entry shall be recorded in the accounts of Weld-Rite Company  in respect of salaries expense to be accrued as at December 31:

                                                           Debit                Credit

Salaries expense                              $3,600

(6,000/5*3)                                                                

Salaries payable                                                         $3,600

4 0
3 years ago
Question 1-12
storchak [24]

The change that would encourage GDP growth to slow is the automobile industry reduces hours for factory workers.

<h3>What would cause GDP growth to slow?</h3>

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

If the hours of work for factory workers is reduced, output would be reduced and this would slow GDP growth.

To learn more about GDP, please check: brainly.com/question/15225458

#SPJ1

5 0
2 years ago
Alguien tiene un libro que me pueda compartir con relación a la temática de ¨Rendimiento y riesgo financiero¨ por favor lo ocupo
Amanda [17]

Te recomiendo el siguiente libro que te puede ayudar.

"La Sabiduría de las Finanzas. Descubre el lado humano en el mundo del riesgo y del rendimiento." El autor es Mihir A. Desai.  Hay otro que te puede servir que se llama "El Pequeño Libro de los Altos Rendimientos con Bajo Riesgo. El autor es "Pim Van Vliet. Ambos hablan del los riesgos de las inversiones y los rendimientos en un mundo volátil.

La otra opción es que busques otros libros de Administración y Finanzas en donde venga el subtema de riesgos y rendimientos, aunque podrían no estar tan completos como el desarrollo que le dan al tema en los libros mencionados.

3 0
3 years ago
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