Answer:
46.67%
Explanation:
Gross margin is the ratio of gross profit to the total sales. The gross profit is the difference between the sales and cost of goods sold. Other cost given such as land and selling and distribution cost make up assets and operating expenses respectively.
Hence
Gross profit = $30,000 - $16,000
= $14,000
Gross margin = $14,000/$30,000
= 0.4667
The company's gross margin is 46.67%.
Answer:
$93,700
Explanation:
Excess of cost over fair value of net identifiable assets of acquired subsidiary Shall be considered as good will and it will come under the head intangible assets.
Other are considered to be a expense.
Total amount reported for intangible assets:
= Trademarks + Excess of cost over fair value of net identifiable assets of acquired subsidiary
= $16,500 + $77,200
= $93,700
Explanation:
The closing entries for the following accounts are shown below:
1. Sales Revenue A/c Dr XXXXX
To Income Summary XXXXX
(Being revenue account closed)
2. Income summary A/c Dr XXXXX
To Expenses A/c XXXXX
(Being expenses accounts are closed)
3. Income summary A/c Dr XXXXX
To Owner capital XXXXX
(Being the difference is recorded)
4. Owner capital XXXXX
To Owner Drawing XXXXX
(Being the drawing account is closed)
Answer:
FALSE
Explanation:
The revenue recognition principle state the firm will only reocgnize a revenu once the sercvice is performed. in this case the revenu should be recognize over time after each magazine is delivered or through adjusting entries at year-end or quarter-end. Never entirely as this represent an obligation to delivwer this magazines or return the money. It isn't revenue. It is a liability which becomes revenue over time.