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lawyer [7]
4 years ago
8

Rhonda Company enters into a contract with Petersburg, Inc. on March 5. According to the contract, Rhonda is scheduled to delive

r 100 units of Product 1 at a sales price of $60 per unit and 150 units of Product 2 to Petersburg, Inc. by June 30 at a sales price of $75 per unit. Rhonda agrees to deliver both Products 1 and 2 before being entitled to any payments. The following deliveries are made by Rhonda to Petersburg: On March 25, Rhonda delivers 100 units of Product 1.On June 20, Rhonda delivers 150 units of Product 2. What amount(s) relating to this contract should Rhonda report on its March 31 balance sheet?
Business
2 answers:
rusak2 [61]4 years ago
8 0

Answer:

Rhonda should report Account Receivable of $6,000 in its balance sheet at 31st March.

Explanation:

According to commonly-applied accounting principles/standards; income should be recorded when they are earned ( in this case, when the product is delivered), rather than the cash payment is received.

By March 31st, Rhonda had already delivered all 100 units of Product 1 as agreed in the contract. As a result, they are eligible to record a revenue ( credit side) of $6,000 ( 100 units x $60 each).

As the cash receipt of $6,000 is not received, the Account Receivable should be recorded up by $6,000 to reflect the amount due from customers regarding the contract.

Revenue will be reported in income statement while Account Receivable will be reported in Balance Sheet. Thus, Rhonda should report Account Receivable of $6,000 in its balance sheet at 31st March.

mixer [17]4 years ago
7 0

Anw12e1 2e dwqd ffef ewke

Explanation:

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Morgan Company issues 10%, 20-year bonds with a par value of $720,000 that pay interest semiannually. The current market rate is
faust18 [17]

Answer:

$36,000

Explanation:

Calculation for the amount to be paid to the bondholders for each semiannual interest payment

Using this formula

Semiannual interest payment = Face value Amount*Interest Rate*Time

Let plug in the formula

Semiannual interest payment = $720,000*0.10*0.50

Semiannual interest payment = $36,000

The amount paid to the bondholders for each semiannual interest payment is $36,000

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3 years ago
Discuss which financial management practices are least effective in creating and monitoring an operating budget?
insens350 [35]

The financial management practices which are least effective in creating and monitoring an operating budget include top down/bottom up budgets, poor inventorying, lack of control, over control, and lack of staff investment.

In business, financial management includes the practice of making a business plan and then ensuring that all departments which falls under it stay on track and work properly.

Creating and monitoring an operating budget for the national government involves four distinct processes which are, budget preparation, budget authorization, budget execution and accountability.

Hence, the operating budget helps in keeping track of the income and expenses in an organization.

To learn more about operating budget here:

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3 0
2 years ago
How to be a successful entrepreneur?
pishuonlain [190]

Answer:

Don’t take ‘no’ for an answer

Learn from the best

Stay hungry and ambitious

Never stand still; evolve with the times

Nurture long-term business relationships

Inspire those around you

Trust your gut instinct, not just your spreadsheet

Explanation:

It takes hard work and dedication and they are many free sources that is available today such as videos

7 0
2 years ago
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The audit expectation gap occurs when there is a difference between the expectations of the ________. a. generally accepted acco
Mrrafil [7]

Answer:

c. auditors and financial statement users.

Explanation:

This is because, the auditors and the financial statement users tends to have different views on what their responsibilities are. Since their views differs, their tend to be a gap which occurs. <em>This gap is called audit expectation gap. This could be minimized through self regulating auditing of the financial statement before the final auditing by auditors.</em>

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7nadin3 [17]

Answer:

A. that involves double-counting.

Explanation:

Imagine a company that produces furniture. If we would include the wood, the nails, the wood paint, etc., were included in the calculation plus the furniture itself, you would be double-counting the cost of the manufactured furniture. If you consider waste materials, then you would be adding even more costs. That is why you only consider finished goods.

6 0
3 years ago
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