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Answer:
The chosen option (considering enrollment costs and opportunity cost) is:
b) College course.
Explanation:
a) Data and Calculations:
Costs/Benefits
College Course Community Course
Cost $2,600 $1,390
Opportunity costs -2,080 2,080
Net costs $520 $3,470
Distance to course 0.40 miles 16 miles
(walking distance) (driving distance)
Timing of course Weekday Weekend
Number of meetings 16 8
b) With the College course option, you will earn $2,080 ($260 * 8) weekdays to offset part of the enrollment cost. With the Community course option, $2,080 will be lost in opportunity cost, thereby increasing the total costs incurred. These costs are apart from the driving costs associated with traveling 16 miles to the Community Course at the local library.
The best option for her to choose is the one called Anual Compounding. With the rest of the compoundings she will have to pay more money. With a semi-annual rate she wil have to pay almost 1000 dollars more than in an anual compounding. With a quarterly period she will have to pay almost the same amount as a semi-annual period. Now with a monthly period she would have to pay almost 2000 dollars of interest.
This was not copied from a website or someone else. This was from my last year report.
Answer:
B. Credit to sales revenue
Explanation:
As per revenue recognition principle, revenue should be recognized when it is earned and not when cash is received.
As per accrual basis of accounting, revenue is to be recognized when the ownership of the goods has been passed by the seller to the buyer and there is reasonable assurance that payment would be received.
When a sale is effected and goods are delivered with reasonable certainty that payment would be received, following journal entry is recorded:
Accounts Receivable A/C Dr.
To Sales Revenue
(Being equipment sold recorded)
