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mars1129 [50]
2 years ago
8

Brief Exercise 4-09 At Raymond Company, the following errors were discovered after the transactions had been journalized and pos

ted. 1. A collection on account from a customer for $870 was recorded as a debit to Cash $870 and a credit to Service Revenue $870. 2. The purchase of store supplies on account for $1,510 was recorded as a debit to Supplies $1,150 and a credit to Accounts Payable $1,150.
Business
1 answer:
labwork [276]2 years ago
6 0

Answer:

Dr Cash 870

                 Cr Account Receiable 870    

Dr Supplies  360

                  Cr Account Payable    360  

Explanation:

1. whenever sales is recorded, Account receivable is debited and sales revenue is credited,cash is recorded when collection is made against that receivable in this case directly cash has been recorded without first generating account receivable entry.

2.in this case (1510-1150=$360) of purchases has not been recorded therefore we have to create an entry of $360.

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In the U.S., how is the deficit different than the national debt?
Vika [28.1K]
Deficit is the difference between what the government spends and what it takes in. National debt is the result of government borrowing money to cover years of deficits
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3 years ago
In early April, an investor buys 1 XYZ Oct 60 call for $9 and sells 1 XYZ Jul 70 call for $4. If the investor buys back the Jul
goldfiish [28.3K]

Answer:

$600 profit

Explanation:

bought Oct Call at $9 and sold at $12 = $3 profit
sold Jul Call at $4 and bought back at $1 = $3 profit
total profit $6 per option x 100 shares = $600

6 0
2 years ago
10. Calculate the future value of $2000 in a. 5 years at an interest rate of 5% per year. b. 10 years at an interest rate of 5%
timofeeve [1]

Answer and Explanation:

The computation is shown below;

Given that,

Principal = P = $2000

As we know that

Future value (FV) = P × (1 + R)^n

here,

R = Rate of interest,

N = no of years

Now

A) N = 5, R = 5% = 0.05

FV = $2,000 × (1.05)^5

= $2,553

The Interest earned is

= $2,553 - $2,000

= $553

B) N = 10, R = 5% = 0.05

FV = $2,000 × (1.05)^10

= $3,258

The Interest earned is

= $3,258 - $2,000

= $1,258

C) N = 5, R = 10% = 0.10

FV = $2,000 × (1.10)^5

= $3,221

D) Option A

As in the part B the time period is 10 years as compared with the part A i.e. 5 years having the interest rate same

Also the cumulative interest would be greather than double as compared with part A

4 0
3 years ago
How to calculate gross margin Description AmountNumber of units sold 800 unitsSelling price per unit $500 per unitCost of goods
shutvik [7]

Answer:

$200,000

Explanation:

The computation of the gross margin is shown below:

As we know that

Gross margin = Sales - cost of goods sold

= (800 units × $500 per unit) - (800 units × $250 per unit)

= $400,000 - $200,000

= $200,000

We simply applied the above formula so that the gross margin could come

And the other items which are mentioned in the question are to be ignored as they are not relevant

8 0
2 years ago
Pina Company produces golf discs which it normally sells to retailers for $7 each. The cost of manufacturing 19,900 golf discs i
Ivahew [28]

Answer:

a) <em>Net income using incremental analysis is  </em> $692

b)   PINA should accept the order because it will increase its net income by $692

<em />

Explanation:

The relevant cash flows for decision to accept or reject the special order are

I. the incremental contribution from of producing 5,350 units

2. The incremental fixed cost- 45,374

Note that whether or not the special order is accepted the fixed cost of manufacturing  would be incurred either way.

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Variable production cost per unit = total variable cost / units

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a) Incremental Analysis

<em>Change in Net Income:                               $</em>

I<em>ncremental contribution :</em>

( 4.77 - 3.45) ×   5,350 =                           7,062

<em>Increase in Fixed cost</em> :

(45,374 - 39,004)                                     <u>(  6370)</u>

<em>Net income                                               </em><em><u>   692</u></em>

<em><u>b) </u></em>   PINA should accept the order because it will increase its net income by $692

<em />

6 0
3 years ago
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