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german
3 years ago
10

On November 1, 2018, Cullumber Farm entered into a contract to buy a $162000 harvester from John Deere. The contract required Cu

llumber Farm to pay $162000 in advance on November 1, 2018. The harvester (cost of $122000) was delivered on November 30, 2018. The journal entry to record the contract on November 1, 2018 includes a credit to Unearned Sales Revenue for $162000. debit to Unearned Sales Revenue for $162000. credit to Sales Revenue for $162000. credit to Accounts Receivable for $162000.
Business
1 answer:
Vikki [24]3 years ago
3 0

Answer:

The journal entry to record the contract on November 1, 2018 includes: credit to Accounts Receivable for $162000

Explanation:

Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made. On November 1, 2018, Cullumber Farm had to pay $162,000 in advance to John Deere. John Deere recorded the cash receiving by the entry:

Debit Cash $162,000

Credit Accounts Receivable $162,000

The company did not record revenue because they did not sell the harvester. This was only the advance payment.

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Treasury Bonds are _______.A. liquid, but not a store of value. B. a store of value, but not liquid. C. both liquid and a store
miss Akunina [59]

Answer:

C. both liquid and a store of value.

Explanation:

Treasury Bonds are fixed interest long term government debt instrument issued by the government through the monetary authorities (Federal Reserve or Central Bank) to raise fund from the public. Treasury bond has a maturity of between 10 and 30 years.

Treasury bonds is one of the most liquid financial instrument in the world as  it can be turned to cash within a day.

The T-Bond, as treasury bonds is often called is a good store of value as it pays interest and the principal is backed by a legal contract.

5 0
3 years ago
Esquire Comic Book Company had income before tax of $1,000,000 in 2016 before considering the following material items:
Ganezh [65]

Answer:

                    Esquire Comic Book Company

                               Income Statement

               For the Year Ended December 31, 2016

Operating income                                                $1,000,000

<u>Restructuring costs                                                 ($80,000)</u>

Income from continuing operations b/ Taxes      $920,000

<u>Income tax expense                                              ($368,000)</u>

Income from continuing operations                                        $552,000

Discontinued operations:

  • Operating income                                         $500,000
  • Loss on disposal                                          ($350,000)
  • <u>Income tax on discontinued operations      ($60,000)</u>

Income from discontinued operations                                     $90,000

<u>Net income                                                                               $642,000</u>

Explanation:

Income from discontinued operations must be reported separately, but any restructuring costs must be included as operational expenses.

8 0
3 years ago
Nick wants to buy a new car, and is planning to borrow the money for his purchase from a bank. He read in the newspapers that th
Anna [14]

Answer:

True

Explanation:

Economic stimulus refers to change in monetary or fiscal policies by the Federal Reserve with growth as an objective. One of the ways of implementing economic stimulus is lowering of interest rates by the Fed.

Lowering of interest rates by the Fed would have an effect on loans availed by the public. The quantity of loanable funds shall increase which would lead to lowering of interest rates charged by the banks.

In the given case, Nick stands to gain in the sense he can avail car loan at a lower rate of interest than currently offered, if he waits for Fed to implement it's new policies.

Thus, the given statement is true.

5 0
3 years ago
M. Cotteleer Electronics supplies microcomputer circuitry to a company that incorporates microprocessors into refrigerators and
8090 [49]

Answer:

a) 100 units

b) 2.5 order per year

c) 50 units

Explanation:

Given data:

demand 250 units

order cost is $20

holding cost $1

a) Economic order quantity EOQ = \sqrt{\frac{2\times demand \times order\ cost}{holding \ cost}}

EOQ = \sqrt{\fac{2\times 250 \times 20}{1}} =100 units

b) number of order for each year = \frac{annual/ demand}{EOQ}

                                                    = \frac{250}{100} = 2.5order/ year

c) average inventory = \frac{Q}{2} = \frac{100}{2} =  50 units

3 0
3 years ago
Which is most true of an annual rate of 4% compounded quarterly? A) It is equivalent to 4.4% paid annually. B) It is equivalent
Artemon [7]

Answer:

D) It is equivalent to 4.06% paid annually

Explanation:

Since it is not talking about annuity and simple compound interest, therefore assuming investment value = $100 then interest will be as follows:

Interest for each quarter = \frac{4}{100} \times \frac{3}{12} = 1%

But this 1% will be paid on the compounded value

Interest at end of Quarter 1 = $100 X 1% = $1

Compounded value at end of Quarter 1 = $100 + $1 = $101

Interest at end of Quarter 2 = $101 X 1% = $1.01

Compounded value at end of Quarter 2 = $101 + $1.01 = $102.01

Interest at end of Quarter 3 = $102.01 X 1% = $1.0201

Compounded value at end of Quarter 3 = $102.01 + $1.0201 = $103.0301

Interest at end of Quarter 4 = $103.0301 X 1% = $1.030301

Compounded value at end of Quarter 4 = $103.0301 + $1.030301 = $104.060401

Now net return annually = $4.060401/$100 = 4.06%

Final Answer

D) It is equivalent to 4.06% paid annually

6 0
3 years ago
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