Answer:
A. Adjusting Journal Entries:
Dec. 31, 2019:
Debit Accounts Receivable $22,650
Credit Service Fee Revenue $22,650
To record fees earned, but not yet billed to clients.
B. No. If the cash basis rather than the accrual basis had been used, an adjusting entry would not have been necessary.
Explanation:
Adjusting entries are only required to align the cash-basis accounting records to the accrual basis. Adjustments are made for prepayments of expenses, unpaid expenses, deferred revenue, unearned earned and earned revenue, and depreciation charges. For an entity operating on a cash basis, adjusting entries are not required.
Adjusting entries ensure that accounting records comply with the accrual concept and matching principle of generally accepted account practises. The requirement under this concept with the matching principle is to accrue and match expenses and revenue to the related revenue and expenses and period.
Answer:
Explanation:
In the income statement, the total revenues and the total expenses are recorded.
If the total revenues are more than the total expenditure then the company earns net income
And, If the total revenues are less than the total expenditure then the company have a net loss
This net income or net loss would reflect in the statement of the retained earning account.
The preparation of the income statement is presented in the spreadsheet. Kindly find the attachment below:
A assets has been created or increased<span />
Answer:
In this case, the differential cost os $18.
Explanation:
<u>The differential cost is the increase in unitary or total production value in two or more steps of the decision-making process. </u>In this case, the unitary cost of product B is not a differential cost. It would remain constant in both products, but, the additional $18 is a cost incurred only in product C.
In this case, the differential cost os $18.
Answer:
B. - 5.71%
Explanation:
Given that
Purchase price = 1000 × 35 = 35000
Selling price = 1100 × 30 = 33000
Recall that
ROI = Net profit/total investment × 100
And that
Net profit = selling price - purchase price
= 33000 - 35000
= -2000
Therefore,
ROI = -2000/35000 × 100
= - 0.05714 × 100
= - 5.71 %
Thus, total return on investment is -5.71%
