Answer:
credited; right; debited; left
Explanation:
The journal entry to record this transaction is shown below:
Cash A/c Dr $1,900
To Service revenue A/c $1,900
(Being the cash is collected)
It to be displayed in T accounts
For cash account
Cash
Debit side
Service revenue $1,900
For service revenue account
Service revenue
Credit side
Cash $1,900
So, the cash account would be debited and would be displayed on the left hand side while the service revenue would be credited and would be displayed on the right hand side
Answer:
$54,020
Explanation:
Total fixed costs = Fixed selling and administrative expenses
Total fixed costs = $54,020
Thus, the total fixed costs for the firm is $54,020
Answer: The cost of the equipment is $66,500.
Explanation: Under IAS 16 Property, Plant and Equipment, the cost of an asset comprises:
- purchase price plus import duties and taxes
- any costs directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in a manner intended by management
- the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is located
In the question, $60,000 was the purchase price, the transportation cost of $1,000 was necessary to bring the asset to the location intended by management, $3,000 was the sales tax and the installation cost of $2,500 was also necessary for the asset to function as intended by management. So all these costs would be capitalized as the cost of the equipment as $66,500.
Answer: $352,000
Explanation:
The information needed to calculate the cash and cash equivalent are:
Balance in checking account, Bank of the East = $ 382,000
The restricted cash included in the checking account = $49,000
Treasury bills = $19,000
We subtract the restricted cash from the balance in the checking account and then add it to the treasury bills. This will be:
= ($382,000 - $49,000) + $19,000
= $333,000 + $19,000
= $352,000
