The transaction for the bill for newspaper advertising services will be recorded today as a debit to Advertising Expenses and a credit to Accounts Payable (Advertising Payable).
<h3>How is an accrued expense recorded?</h3>
An accrued expense refers to an incurred outgoing that the service has been enjoyed previously and payment is due later.
According to the matching principle and accrual concept of generally accepted accounting principles, all expenses incurred within a financial period must be recognized in that period whether cash has been exchanged or not.
Thus, the transaction for the bill for newspaper advertising services will be recorded today as a debit to Advertising Expenses and a credit to Accounts Payable (Advertising Payable).
Learn more about recording accrued expenses at brainly.com/question/14524895
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Answer:
Option C. $0.11
Option D. $0.95
Explanation:
As we know that the Transfer Price is set at either selling price for an outside market or variable cost plus opportunity cost if the product sold is to internal market present within the organization (Inter group or inter division sales).
However, the division can still charge upper limit price to the division which is $1 market price of the product.
Upper limit = $1
As it is given that the selling of the additional units will be among divisions which means its inter division market. Hence the lower limit will be used here.
Lower Limit = Variable cost + opportunity cost
Here
Variable cost is $10 cents
And
Opportunity cost will be zero here as the division will be using its excess capacity to sell to the other division, so there is no opportunity cost.
So, by putting values, we have:
Lower Limit = $0.1 - $0 = $0.1
Upper limit = $1
Thus the transfer price set for each bell can be between $1 and $0.1. So the $0.11 and $0.95 falls between these range and both are correct options here.
Had to look for the options and here is my answer.
What happens when all of the capacity on a product line is being sold is that, the inventory from that line will be sold at HALF OF THE PRICE OR VALUE AS IT IS REFLECTED ON THE RECORDS OF ACCOUNTING DEPARTMENT. Hope this answer helps.
Answer:
patent 301,350 debit
cash 301,350 credit
franchise 633,600 debit
cash 633,600 credit
development expense 189,000 debit
cash 189,000 credit
year-end adjustment:
amortization expense 50,225 debit
patent 50,225 credit
amortization expense 31,680 debit
patent 31,680 credit
Explanation:
The patent and franchise will be activate as there is a certain possibility to produce positive cashflow in the future.
They will be adjusted at year-end for amortization:
301,350 / 6 = 50,225 amortization on patent
633,600 / 10 = 63,360 amortization on franchise
As it was concede on July 1st then, we will do half-year
63,360 / 2 = 31,680
The development cost will be treated as expense as there is no precise information that can determined the development cost which yield a positive outcome.
<span>it only takes one
things happen
exclusions apply
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