Based on the cost of purchasing the machine and the delivery and installation fees, the initial outlay is $243,250
<h3>How much is the initial outlay?</h3>
This can be found as:
= Cost of purchasing machine + Installation and delivery cost
Solving gives:
= 237,500 + 5,750
= $243,250
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Answer:
Dr Equipment 62400
Dr Prepaid Insurance 500
Cr Cash 2900
Cr Accounts Payable 60,000
Explanation:
Preparation of the journal entry to Record the above expenditures for the new machine.
Dr Equipment 62400
Dr Prepaid Insurance 500
Cr Cash 2900
Cr Accounts Payable 60,000
(62,400+500-2900)
Equipment:
Purchase price ($55,000) + Sales tax (5,000) + Shipping (800) + Installation (1,600) =
Total cost 62400
Cash:
Shipment of machine (800) + Insurance on the machine ((500)) +Installation of the machine (1,600) = 2900
Answer:
Revenue for Smart Suiting is $521,306.
Explanation:
Revenue is the business operational source of finance. IFRS has made standards for revenue recognition which need to be followed by all organizations. The revenue should be calculated after deducting trade and cash discounts. If there is any sales return it should be deducted from the gross revenue figure. Net revenue should be reported in the Income Statement.
The answer is: "<span>test marketing" .
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