Answer:
At the end of March, Paul’s Painting hired five temporary employees to work on a project that began on April 5 and ended on April 28. Paul’s received 100% of the total payment for the project on May 3. In this situation, both cash basis accounting and GAAP require that Paul’s recognize the employees’ total salary expense in April.
Explanation:
A collection of accounting rules and standards usually followed, for financial reporting is known as GAAP (generally accepted accounting principles) .
For businesses, GAAP needs accrual accounting.
Accrual accounting operates on the basis of matching both revenue and expenses. Revenues and the related expenses occur concurrently, though the cash transaction concerning thereto might happen in some other period.
In the situation given in the question, the revenue from the project is earned in April, subsequently, the salary expense related to that work should also be recognized in the same period due to an accrual basis.
Answer:
The journal entries are shown below:
Explanation:
The journal entries are shown below:
On July 15
Purchases (2,100 × $40) $84,000
To Accounts Payable $84,000
(Being the purchase is recorded)
On July 23
Account payable $84,000
To Purchase discount $2,520 ($84,000 × 3%)
To Cash $81,480
(Being the payment is recorded)
On August 15
Account payable $84,000
To cash $84,000
(Being the payment is recorded)
Answer:
Sam will pay $937.43 weekly or $71.64 quarterly.
The weekly plan has less total cash outflow each year because it involves lower interest charges as the payment is made more frequently.
Sam will have to pay $117.18 if the loan calls for quarterly payments.
Explanation:
The cash outflows are calculated using the PMT formula or function as follows.
Quarterly Payment:
PMT(rate = 0.08/4, nper = 8x4, pv = 22000, fv = 0, 0) = $937.43
Weekly Payment:
PMT(rate = 0.08/52, nper = 8x52, pv = 22000, fv = 0, 0) = $71.64
Annual cash outflow using quarterly payment = $937.43 x 4 = $3749.72
Annual cash outflow using weekly payment = $71.64 x 52 = $3725.28
The weekly plan has $3749.72 - $3725.38 = $24.44 less total cash outflow each year because it involves lower interest charges as the payment is made more frequently.
Sam will have to pay $3749.72 / 32 = $117.18 if the loan calls for quarterly payments.
Answer:
Working for the buyer.
Explanation:
When a real estate agent is contracted, he becomes a representative of the seller, and seeks to give the seller best options that will maximise sales.
For example if the real estate agent has multiple offers from his friends and other people he does not know he is obligated to present all offers made to the seller. He is not to favour some buyers over others.
Therefore the real estate agent as a representative of the seller is not working for the buyer.
When examining how price and demand changes will affect markets, it is important to consider how various goods are related. We can separate goods into 2 basic types: substitutes and complements. ... When the price increases for one good, the demand for the substitute will increase (assuming that price remains constant).