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garri49 [273]
3 years ago
10

On October 1, Kelly Company received $25,500 for six months of rent, in advance. Kelly credited Rent Revenue, which is an altern

ate way of recording the initial receipt of cash. If the appropriate adjusting entry is not made at the end of the year, what will be the effect on:
Business
1 answer:
Nikitich [7]3 years ago
7 0

Answer: The effect will be that the results will be distorted by registering a gain in the incorrect period, since 3 months correspond to the current year, from October-December and the rest corresponds from January-March of the following year.

The correct way to record these 3 months is as a liability (deferred income) when the income is realized they are taken to the income statement.

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5. The best way to find out if a particular business is a good fit for you is to
ipn [44]

Answer:

A

Explanation:

The question is saying, 'fit for you' therefore I think this is about the owner and not necessarily the consumer hence the potential owner should go and shadow

5 0
3 years ago
Read 2 more answers
The decline in unit costs of a product or service that occurs as the absolute volume of production increases is known as
leva [86]

Answer:

A. economies of scale.

Explanation:

The economies of scale is the scale where the company has the advantage of the cost that reaped by the organization in the case when there is an efficient production. It could be accomplished when the level of production or the volume of the production rises by lowering the cost

Therefore as per the given situation, the option A is correct as it fits to the current situation

Hence, the correct option is A.

4 0
3 years ago
Imagine that you are a pecan farmer in Georgia. If the same trends hold true for nut production as maple syrup production, where
Dimas [21]

Answer:

You be looking to relocate your business to Delaware

Explanation:

Delaware is one of the 50 states of the United States, in the Mid Atlantic region. The weather condition in Delaware is very conducive in growing a maple tree.

8 0
3 years ago
Inventories Raw materials $ 42,000 $ 32,000 Work in process 9,100 18,300 Finished goods 57,000 34,300 Activities and information
Svetach [21]

Answer:

a. Computation of the following amounts for the month of May using T-accounts:

1. Cost of direct materials used = $176,000

2. Cost of direct labor used = $77,000

3. Cost of goods manufactured = $286,150

4. Cost of goods sold = $308,850

5. Gross profit = $691,150

6. Overapplied or underapplied overhead = $89,650 (underapplied)

b. Journal Entries:

Debit Raw materials $172,000

Credit Cash $172,000

To record the purchase of raw materials for cash.

Debit Factory payroll $100,000

Credit Cash $100,000

To record the payroll paid in cash.

Debit Factory overhead:

 Indirect materials $6,000

 Indirect labor $23,000

 Other overhead costs 103,000

Credit Raw materials $6,000

Credit Factory payroll $23,000

Credit Cash $103,000

To record indirect materials, labor and other costs.

Debit Work in process $42,350

Credit Factory overhead $42,350

To apply overhead based on direct labor cost 55%.

Debit Cash $1,000,000

Credit Sales Revenue $1,000,000

To record the sale of goods for cash.

Explanation:

a) Data and Calculations:

Inventories:

Raw materials $ 42,000 $ 32,000

Work in process 9,100 18,300

Finished goods 57,000 34,300

Activities for May:

Raw materials purchases (paid with cash) 172,000

Factory payroll (paid with cash) 100,000

Factory overhead:

Indirect materials 6,000

Indirect labor 23,000

Other overhead costs 103,000

Sales (received in cash) 1,000,000

Predetermined overhead rate based on direct labor cost 55%

T-accounts:

Raw materials

Beginning balance $ 42,000

Cash                         172,000

Manufacturing overhead                6,000

Work in process                          176,000

Ending balance                         $ 32,000

Work in process

Beginning balance    9,100

Raw materials       176,000

Payroll                     77,000

Overhead applied 42,350

Finished goods                          286,150

Ending balance                            18,300

Finished goods

Beginning balance 57,000

Work in process   286,150

Cost of goods sold                   308,850

Ending balance                           34,300

Manufacturing overhead

Indirect materials             6,000

Indirect labor                 23,000

Other overhead costs 103,000

Work in process                            42,350

Underapplied overhead               89,650

Sales revenue    $1,000,000

Cost of goods sold 308,850

Gross profit            $691,150

Analysis of Transactions:

Raw materials $172,000 Cash $172,000

Factory payroll $100,000 Cash $100,000

Factory overhead:

Indirect materials $6,000 Raw materials $6,000

Indirect labor $23,000 Factory payroll $23,000

Other overhead costs 103,000 Cash $103,000

Work in process $42,350 Factory overhead $42,350

Predetermined overhead rate based on direct labor cost 55%

Cash $1,000,000 Sales Revenue $1,000,000

5 0
3 years ago
Question 2 (2 points)
astraxan [27]

Answer: being goal oriented

Explanation: A goal oriented individual may be referred to an individual with a strong aim and focus who will give his or her very best in other to achieve or attain his intended purpose or aim. A goal oriented individual will defy obstructions capable of hindering or standing in between her and her goal. Attaining one's desire or purpose requires very strong motivation which keeps one going in the face of tribulation or temptation and a strong organizational skill useful for attaining task specific needs at a specific time.

3 0
3 years ago
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