Answer:
Sales revenue 728,400
Sales R&A (25,320)
Delivery Expense (12,780) * considered freight-out
sales discount <u> (12,380) </u>
net sales: 677,920
sales revenue 728,400 debit
income summary 728,400 credit
--to close revenues accounts--
income summary 50,480
Delivery Expense 12,780
Sales Returns and Allowances 25,320
Sales Discounts 12,380.
--to close the contra account to sales---
Income summary 677,920
Retained Earnings 677,920
Explanation:
Answer:
Subordinated debentures - Ranks the lowest in terms of priority with regards to claim on assets, is the riskiest of all. Higher the risk, higher would be the return offered on the bond.
Debentures - These bonds are those which are not backed by any collateral. Issued by both corporations as well as governments, debentures are backed only by the general creditworthiness and reputation of the issuer.
Senior Mortgage Bonds - 'Senior' means they rank high in terms of claims on assets and 'Mortgage' implies they are backed by collateral.
Answer:
Motorcycle A/c Dr. 65,000
To Cash A/c 65,000
Motorcycle is asset
asset will be Dr. when increase
Cash is asset and
asset will be Cr. when decrease
buying motorcycle from cash,
Motorcycle coming cash going
Motorcycle → Debit
Cash → Credit
Answer:
B) A loss of $6,000 in the income statement.
Explanation:
The appropriate journal entry should be:
December 31 (recognition of loss on purchase commitments)
- Dr Loss on Purchase Commitments account 6,000
- Cr Accrued Loss on Purchase Commitments account 6,000
Since the price of raw materials lowered by $6,000, the company lost money on its purchase commitments:
Purchase commitments loss = contracted price - market value = $32,000 - $26,000 = $6,000
The loss on purchase commitments is an expense, and accrued loss on purchase commitments is a liability.
The maximum commission that Broker Claire can charge for securing a $50,000 first mortgage is $2,500.
Basically, a broker is entitled to a commission as a compensation.
The law governing mortgage loan brokers states that the maximum commissions for loans of a period of 2 years is 5% of the principal of a loan of less than 3 years.
Since the broker secure a $50,000 first mortgage.
Commission = $50,000 * 5%
Commission = $2,500
In conclusion, the maximum commission that Broker Claire can charge for securing a $50,000 first mortgage is $2,500.
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