D) By reducing expenses you increase margins which means there is more money available for stockholders
Answer:
If Splendid Occasions had recorded their service revenue using the other method, how much service revenue would they have recorded for the year?
Ans: $2,970
The ''other method'' in question is the Cash method which recognizes revenue when cash is paid unlike the Accrual method that recognizes it when earned.
Using the Cash method the Service Revenue would be $2,970 because the cash has been received for it.
If Sweet Catering had recorded transactions using the Cash method, how much net income (loss) would they have recorded for the month of May?
= Cash revenues - Cash expense
= Received cash for meals served to customers - Prepaid rent for three months - Received and paid electricity bill
= 2,530 - 2400 - 60
= $70
If Sweet Catering had recorded transactions using the Accrual method, how much net income (loss) would they have recorded for the month of May?
= Revenue - Expense
= Served a banquet on account + Received cash for meals served to customers - Rent - Electricity - Accrued salary expense - depreciation
= 2,810 + 2,530 - (2,400/3) - 60 - 2,670 - 380
= $1,430
<em>Cash spent on Equipment is not expense but capital expenditure. </em>
Answer:
Journal Entry
Explanation:
The Journal Entry is shown below:-
Bonds payable Dr, $1,030,000
Loss on retirement of bond Dr, $78,800
($1,091,800 - $1,013,000)
To discount on bond $17,000
To cash $1,091,800
($1,030,000 × 106%)
(Being retirement of the bonds is recorded)
Answer:
The journal entry which is to be recorded is shown below:
Explanation:
Contract Price A/c...................................Dr $500,000
Cost of constructionA/c.........................Dr $150,000
Revenue A/c................................Cr $2,000,000
As the company recording the revenue, so the revenue account is credited. It involves the cost of construction which is debited and the contract price account is debited.
Note: The options are missing. So, proving the journal entry in the answer.
