Solution:
Accounts Payable $2900
Cash $2691
Inventory $209
Cleveland didn't pay during the discount period,
So the amount due is $2,700 - 450 = $2,250
Cash was charged in freight charges prior to delivery of the invoice.
Answer:
Journal Entry to reflect the event is as follow;
Dr. Cr.
Utility Expense $520
Utility bill payable $520
Explanation:
Utility bill is received it means the expense is accrued and it is not due until the month end so a liability will be created and will be paid next month.
Answer:
D) Audited by a certified professional accounting firm.
Explanation:
The Securities and Exchange Commission (SEC) requires that publicly traded corporations file audited quarterly financial reports and annual audited financial reports. The Sarbanes-Oxley Act (2002) is the law that established the current external auditing rules imposed by the SEC. It also established legal responsibilities for CEOs and CFOs regarding the financial statements. If they fail to meet them or provide false information, they may face criminal charges and end in jail.
Answer:
$125,000
Explanation:
The sales were $500,000
The variable cost of goods sold is $300,000
The variable selling and administrative expenses were $75,000
The fixed costs were $60,000
Therefore the contribution margin ratio using the variable costing can be calculated as follows
CMR= Sales revenue-Variable cost of good sold-The variable selling and administrative expenses
= $500,000-$300,000-$75,000
= $200,000-$75,000
= $125,000
Hence the contribution margin ratio is $125,000
