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3 years ago

Summer leasing received $11,400 for 24 months rent in advance. how should summer record this transaction?

1 answer:

6 0

Since Summer Leasing received funds in advance, they should record the transaction as Debit Cash for the $11,400 and credit Unearned Revenue. Though they received the cash it is technically unearned revenue because they have not provided the service just yet to earn the money. Once the rent has been used, the money will leave unearned revenue and move to revenue.

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A purely competitive industry has a very ______ number of sellers, whereas the other three market structures reflect a progressi

andrezito [222]

A purely competitive industry has a very large number of sellers, whereas the other three market structures reflect a progressively smaller or decreasing number of sellers.

What are three examples of a market that is only competitive?

Agrarian goods like corn, wheat, and soybeans are excellent examples of a market that is purely competitive. Monopolistic competition is similar to pure competition in that it has few barriers to entry and many suppliers.

What exactly is a product whose market is only competitive?

The characteristics of a market with pure competition the products that are sold are identical. Every seller is the same. It is simple for new businesses to enter the market. Products are priced according to what customers are willing to pay.

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1 year ago

Which of the following activities would be most likely to be accomplished using sampling?a. Sorting a file to identify the large

Tomtit [17]

Answer:

C. Selecting items and tracing back to source documents.

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2 years ago

a personal account earmarked as a retirement supplement contains $292,200. suppose $250,000 is used to establish an annuity that

Hoochie [10]

Suppose $250,000 is used to establish an annuity that earns 6%, compounded quarterly, and pays $6000 at the end of each quarter. It will take about 120 quarters until the account balance reaches $0.

Amount invested (Present value) = $250000

Quarterly payment (At the end of each quarter) (P) = $4500

Interest Rate (Quarterly) (r) = 6% /4

= 1.5% = 0.015

A number of quarters (n) = ?

Future value at the end = 0

Present value of Annuity formula:

Present value = P × $(1-(1+r))^{(-n)} / r$

250000 = 4500 × $(1-((1+0.015))^{(-n)} / 0.015$

250000 = 300000 × $(1-((1+0.015)}}^{(-n)}$

250000 / 300000 = $1-(1+0.015)^{(-n)}$

0.83333 = $1-(1.015)^{(-n)$

n = 120

Hence is shall take 120 Quarters until the account balance is $0.

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1 year ago

Exercise 8-3

7nadin3 [17]

Answer:

(a) Prepare the entries to record sales and collections during the period.

It had net credit sales of $800,000

Dr Accounts receivable $ 800,000

Cr Sales $ 800,000

Collections of $763,000.

Dr CASH $ 763,000

Cr Accounts receivable $ 763,000

(b) Prepare the entry to record the write-off of uncollectible accounts during the period.

It wrote off as uncollectible accounts receivable of $7,300

Dr Allowance for Uncollectible Accounts $ 7,300

Cr Accounts receivable $ 7,300

However, a $3,100 account previously written off as uncollectible was recovered before the end of the current period.

Dr Accounts receivable $ 3,100

Cr Allowance for Uncollectible Accounts $ 3,100

(d) Prepare the entry to record bad debt expense for the period.

Uncollectible accounts are estimated to total $25,000 at the end of the period.

Dr Bad Debt Expense $ 20,200

Cr Allowance for Uncollectible Accounts $ 20,200

Explanation:

If the company applies the allowance method, it means that the account Allowance for Uncollectible Accounts must show as balance the estimated value of $25,000

Because the company already has a CREDIT balance in the Allowance for Doubtful Accounts it's necessary to register an entry that complement the existing value and reflect the estimated value, $ 20,200

Bad accounts are those credits granted by the company and there is no possibility of being charged.

When customers buy products on credits but the company cannot collect the debt, then it's necessary to cancel the unpaid invoice as uncollectible.

One way is to directly cancel bad debts at the time it was decided that the credit is bad, the total amount reported as bad debt expenses negatively affect the income statement and the accounts receivable are reduced by the same amount, less assets

The other way is to determine a percentage of the total amount of accounts receivable as bad debts, there are many ways to analyze accounts receivable and calculate the value of bad debts.

When the company has the percentage of uncollectible accounts, the required journal entry is Bad Expenses (debit) with Reserve for Bad Accounts (credit)

At the time of cancellation, since the expenses were recognized before, we only use the Allowance for Uncollectible Accounts (Debit) with accounts receivable (credit), with this we are recognizing the bad credit of the company.

7 0

3 years ago

Power Drive Corporation designs and produces a line of golf equipment and golf apparel. Power Drive has 100,000 shares of common

Galina-37 [17]

Answer and Explanation:

The Preparation of statement of stockholders’ equity is shown below:-

Statement of Stockholder's Equity

Power Drive Corporation

For the year ended December 31, 2018

Particulars Common Additional Retained Treasury Total

stock paid in Earning Stock Stockholder

capital equity

Jan 1 Balance 100,000 $4,800,000 $2,300,000 0 $7,200,000

Issued common

stock 58,000 $3,132,000 0 0 $3,190,000

(58,000 × $1) (58,000 × $54)

Purchase treasury

stock -$307,400 -$307,400

(5,300 × $58)

Dividends -$251,955 -$251,955

((100,000 + 58,000 - 5,300) × $1.65)

Sale of Treasury

stock $13,250 $153,700 $166,950

(2,650 × $5) (2,650 × $58)

Net Income $630,000 $630,000

Balance,

December

31 158,000 $7,945,250 $2,678,045 -$153,700 $10,627,595

Total Stockholder's equity is

= Common stock + Additional paid in capital + Retained earnings - Treasury stock

= 158,000 + $7,945,250 + $2,678,045 - $153,700

= $10,627,595

8 0

3 years ago