All categories

3 years ago

Turkey Corp. provides services to customers on account for $3,000. Recording this transaction will include a __________.

Business

1 answer:

Luden [163]3 years ago

8 0

Answer:

e) Credit to Revenue

Explanation:

The services provided to customers will be an increase of revenue and an increase in revenues is a credit transaction.

Since the question does not mention that the services were billed therefore the accounts receivable will not be increased till it is billed and thus option a) is not applicable.

The other options are not relevant since there is no cash collection involved, and no liabilities involved.

You might be interested in

Q1. Big Money Monster is a business school. The school bases its budgets on two measures of activity: number of students and num

maxonik [38]

Answer:

Big Money Monster

The spending variance for course supplies is:

$50 Unfavorable.

Explanation:

a) Data and Calculations:

Fixed cost Variable cost Variable cost Total

per month per student per course

Faculty wages $4,000 $0 $20

Course supplies $1,000 $10 $50

Administrative expenses $2,000 $20 $30

Budgeted number of students = 300

Budgeted number of courses = 15

Actual number of students = 280

Actual number of courses = 18

Actual Faculty wages = $4,200

Actual Course supplies = $4,800

Budgeted Costs:

Fixed cost Variable cost Variable cost Total

per month per student per course

Faculty wages $4,000 $0 $20 $4,300

Course supplies $1,000 $10 $50 4,750

Administrative expenses $2,000 $20 $30 8,450

Budgeted costs:

Faculty wages = $4,000 + $0 + $20 * 15 = $4,300

Course supplies = $1,000 + $10 * 300 + $50 * 15 = $4,750

Administrative expenses = $2,000 + $20 * 300 + $30 * 15 = $8,450

Budgeted Cost of Course Supplies = $4,750

Actual Cost of Course Supplies = 4,800

Spending variance for Course Supplies = 50 Unfavorable

4 0

3 years ago

Splish Corporation reported the following for 2020: net sales $1,242,800, cost of goods sold $737,700, selling and administrativ

tester [92]

Answer:

1. $192,200

2. $192,200

Explanation:

1. Preparation for the statement of comprehensive income using the one statement format

Splish Corporation Statement of Comprehensive IncomeFor the Year Ended December 31, 2020

Sales revenue $1,242,800

Less Cost of goods sold ($737,700)

Gross profit $505,100

Less Selling and administrative expenses ($329,500)

Net income $175,600

($505,100-$329,500)

Add Unrealized holding gain on available-for-sale debt securities $16,600

Comprehensive income $192,200

Therefore the Comprehensive income for the statement of comprehensive income using the one statement format will be $192,200

2. Preparation a statement of comprehensive income using the two statement format

Splish Corporation Statement of Comprehensive IncomeFor the Year Ended December 31, 2020

Sales revenue $1,242,800

Less Cost of goods sold ($737,700)

Gross profit $505,100

Less Selling and administrative expenses ($329,500)

Net income $175,600

($505,100-$329,500)

Comprehensive Income

Net Income $175,600

Add Unrealized holding gain on available-for-sale debt securities $16,600

Comprehensive income $192,200

Therefore the Comprehensive income for the statement of comprehensive income using the two statement format will be $192,200

8 0

3 years ago

On May 10, 2020, Crane Co. enters into a contract to deliver a product to Greig Inc. on June 15, 2020. Greig agrees to pay the f

belka [17]

Answer and Explanation:

The journal entries are shown below:

1. Accounts receivable a/c Dr $1,840

To Sales revenue a/c Cr $1,840

(Being the sales is recorded)

2. Cost of goods sold a/c Dr $1,170

To Inventory a/c Cr $1,170

(Being the cost of goods sold is recorded)

3. Cash a/c Dr $1,840

To Accounts receivable a/c Cr $1,840

(Being the payment received is recorded)

Only these three entries are recorded

3 0

3 years ago

When the economy is producing the level of output equal to natural Real GDP, the unemployment rate is equal to :A. zero. B. the

VLD [36.1K]

Answer:

B. the natural unemployment rate.

Explanation:

When the level of output is equal to natural real GDP, it indicates that the country has reach a very optimal level of production has efficiently utilize all resources that it has in its disposal. These 'Resources' include both human , capital, and natural resources.

Natural employment rate is the amount of employment rate that occurs after a country has fully utilize its resources. Like mentioned above, This situation will arise when the level of of output equal to natural Real GDP

Since there is little to no human resources left unused which make natural unemployment rate basically equal to the total employment rate that exist in that country.

7 0

3 years ago

Onslow Co. purchased a used machine for $178,000 cash on January 2. On January 3, Onslow paid $2,840 to wire electricity to the

arsen [322]

Answer:

2nd January

Dr Machinery $178,000

Cr Cash $178,000

( to record the purchase of used machine)

3rd January

Dr Machinery $4,000

Cr Cash $4,000

(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).

Explanation:

- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.

- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.

6 0

3 years ago