Answer:
The Journal entries to record the given transactions would be:
Account Title Debit Credit
(1) Uncollectible Accounts Expense 18,600
Allowance for Doubtful Accounts 18,600
($600 + $18,000)
(2) Allowance for Doubtful Accounts 350
Accounts Receivable—Fronk Co. 350
(3) Accounts Receivable—Fronk Co. 200
Allowance for Doubtful Accounts 200
Cash 200
Accounts Receivable—Fronk Co. 200
(4) Cash 400
Allowance for Doubtful Accounts* 200
Accounts Receivable—Dodger Co. 600
($600 - $400)*
Answer:
The correct answer is D.
Explanation:
Giving the following information:
Total Variable manufacturing costs 288,000
Unitary variable costs= 288,000/24,000= $12
Rhythm Company has offered to purchase 3,000 IT-54s at $16 each. No variable selling costs will be incurred.
Because it is a special offer and there is available capacity, we will not have into account the fixed costs.
Effect on income= 3,000*(16-12)= $12,000 increase
Answer:
Option (e) is correct.
Explanation:
Taxable Income:
= Net income per book - municipal bond interest + deduction for business meals + deduction for a net capital loss + deduction for federal income taxes
= $100,000 - $4,000 + 50% of $5,000 + $5,000 + $22,000
= $125,500
Eliot Corp.'s current earnings and profits (Current E&P) for 2014:
= Taxable Income + municipal bond interest - deduction for federal income taxes - deduction for a net capital loss
= $125,500 + $4,000 - $22,000 - $5,000
= $102,500
Answer:
$18,000
Explanation:
To find the Sales Revenue we simply add the $12,000 cash received immediately, and the $30,000 received as partial payment, totalling $42,000.
Then, we simply complete the proposed income statement:
Income Statement for the Month Ended in March 31
Sales Revenue $42,000
Rent Expense $9,600
Wage Expense $14,400
Net Income $18,000
Net Income is equal to Revenue - expenses.
