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likoan [24]
3 years ago
9

Jubilee, Inc., owns 30 percent of JPW Company and applies the equity method. During the current year, Jubilee buys inventory cos

ting $110,400 and then sells it to JPW for $138,000. At the end of the year, JPW still holds only $25,300 of merchandise. What amount of gross profit must Jubilee defer in reporting this investment using the equity method
Business
1 answer:
kumpel [21]3 years ago
8 0

Answer:

the gross profit reported is $1,518

Explanation:

The computation of the amount of gross profit that reported is shown below:

But before that the gross profit percentage is

= (Sales - cost of goods sold) ÷ (sales)

= ($138,000 - $110,400) ÷ ($138,000)

= 20%

Now the gross profit is

= $25,300 × 20% × 30%

= $1,518

Hence, the gross profit reported is $1,518

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The entry to adjust for the cost of supplies used during the accounting period is______________.
Sedaia [141]

Answer:

debit Supplies Expense; credit Supplies

Explanation:

Create your journal entry to adjust the account balance. Debit the supplies expense account for the cost of the supplies used. Balance the entry by crediting your supplies account.

3 0
3 years ago
As of December 31, 2019, Armani Company’s financial records show the following items and amounts.
MrRa [10]

Answer:

Revenue (Consulting revenue + Rental revenue)=33000+22000=55000.

Operating expense (salaries expense+rent expense)=20000+12000=32000

Selling and administrative expense = 8000

Explanation:

                                       Armani Company

                               Year end Income statement 2019

Revenue                                                                            = 55000

less: Operating expense                                                  =(<u>32000</u>)

                                            Gross Profit                             23000

less :Selling and administrative expense                         = (<u>8000</u>)

                                              Net profit                                  15000

Notes: Question should be mentioned the company nature of business so that we can identify company real business.

8 0
3 years ago
The Income Statement for Pumpkin Co. is shown below:
Alik [6]

100000875466555547899977

5 0
2 years ago
Which of the following is an example of part-time business? a. Tabatha, who works from home for a fashion website for a minimum
Brut [27]

Answer: The answer is C. Dorothy, who works in her small bakery for less than 30 hours a week.

Explanation:  A part-time business can't exceed <u>35 hours a week.</u>

<u />

3 0
3 years ago
Read 2 more answers
the republic of south africa exports edible fruits and nuts into the common market known as the european union, and imports from
Leno4ka [110]

The republic of south Africa exports edible fruits and nuts into the common market known as the European union, and imports from the European union other products which south Africa could produce but at a higher cost than what it costs the Europeans to produce. this practice follows the theory of comparative advantage.

Comparative gain is an economic system's potential to supply a specific proper or provider at a reduced possibility rate than its buying and selling partners. Comparative benefit is used to provide an reason for why organizations, countries, or people can benefit from trade.

For instance, if a country is skilled at making each cheese and chocolate, they will decide how much tough work is going into producing each right. If it takes one hour of exertions to produce 10 devices of cheese and one in each of of tough paintings to deliver 20 devices of chocolate, then this united states has a comparative benefit in making chocolate.

Comparative advantage, monetary precept, first developed via 19th-century British economist David Ricardo, that attributed the reason and advantages of global alternate to the variations within the relative possibility costs (prices in phrases of other objects given up) of producing the same commodities amongst global locations.

Learn more about Comparative advantage here: brainly.com/question/15361275

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5 0
1 year ago
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