Answer:
For seller = $196.44
For buyer = $4583.56
Explanation:
Data provided in the question:
Taxes for the year = $4,780
Date of closing = January 16
since the day of closing belongs to the buyer therefore the seller owns the tax for 15 days only
Per day tax = [ Taxes for the year ] ÷ 365
= $4,780 ÷ 365
= $13.095 per day
Hence,
Proration will be
for seller = $13.095 per day × 15 days
= $196.44
For buyer = $4,780 - $196.44
= $4583.56
Answer:
No adjustment in records can be made until the asset is sold.
Explanation:
This is an example of cost concept. Assets are generally recorded at cost and remain on the accounting records at cost until they are disposed of. Future economic condition may change this appraised value, and therefore no adjustment in records can be made until the asset is sold.
Answer:
Cash A/C Debit $300
To James company $300
(Amount collected from James Company for credit sale)
Explanation:
Cash A/C Debit $300
To James company $300
(Amount collected from James Company for credit sale)
Note: The terms here provided that, 2/10, n/30.
Which means that 2% discount if payment made within 10 days, and total 30 days credit allowed.
Here the sales were made on 14 June, and payment received on 27 June that is it took more than 10 days as 10 days complete on 24 June.
Therefore, no discount will be offered.
Answer: $256
Explanation:
Using time and materials pricing, the total price for a job requiring 3 direct labor hours and $54 of materials will be calculated as:
Materials = $54
Add: Materials markup = 30% × $54 = 0.3 × $54 = $16.2 = $16
Add: Labour = 3 × $62 = $186
Total price of job = $256
