Answer: Marathon should repair the units since an income of $12000 will be gotten.
Explanation:
Based on the information given, the following can be deduced:
Revenue when repaired = 10000 × $5 = $50000
Revenue if sold without repair = 10000 × $2 = $20000
Incremental revenue = $50000 - $20000 = $30000
Cost to repair = $18000
Incremental be Income = $30000 - $18000 = $12000
Therefore, Marathon should repair the units since an income of $12000 will be gotten.
When workers refuse to work its called boycotting
Answer:
a. Cash basis - Service revenue is $900
b. Accrual basis - Service revenue is $2,100 (which is $1200 + $900)
Explanation:
In accounting, there are 2 basis for recognizing transactions; these are cash basis and accrual basis.
In cash basis, sales and expenses are not recorded unless cash has been collected and paid respectively. In the accrual basis of accounting, expenses and sales are recorded when incurred and earned respectively.
Revenue earned under the accrual basis would therefore include the revenue for which cash has been collected and those for which cash is yet to be collected.
Answer:
A. an outflow or decrease of $1,000.
Explanation:
Ending balance of cash = Opening balance of cash + Net cash flow of the period
Ending balance of cash = Opening balance of cash + ( Cash flow from operating activities + cash flow from investing activities + cash flow from financing activities )
$11,000 = $4,000 + $10,000 + cash flow from investing activities - $2,000
$11,000 = $12,000 + cash flow from investing activities
Cash flow from investing activities = $11,000 - $12,000
Cash flow from investing activities = -$1,000
Answer:
a.Sales tax to be recorded at the time of sales.
b.36000
c.38880
d.Sales tax payable
Explanation:
a.Because sales tax is subjected to sales so it is liability of seller to charge sales tax to customer.
b. Sales = $36000
c.Account receivable = [36000+(36000*8%)]=36000+2880=38880
Entry: Dr Account receivable 38880
Sales 36000
Sales tax payable 2880
d. Sales tax payable, it is liability for a seller to refund to government treasury.
