Answer and Explanation:
The preparation of sales journal is shown below:-
Date Account Invoice Account Cost of
Debited Number Receivable Dr. Good Sold Dr.
Sales Cr. Inventory Cr.
May-07 J. Dryer 5704 1,566 1,080
May-12 R. Lamb 5705 432 270
May-25 T. Taylor 5706 707 450
Therefore, only credit sales of merchandise inventory is included while rest of the transactions is not relevant in sales Journal.
Answer:
$4,000 is treated as a capital gain and then reduced by the un-offset net losses in 2016 ($300) and 2017 ($100) to arrive at net capital gain of $3,600 ($4,000 - 300 - 100). $0 of the amount is treated as an ordinary income.
Explanation:
Section 1231 gain arises when an asset (real property or depreciable business property) is sold for more than its current tax basis. The gain is regarded as a capital gain and taxed at the lower capital gain rates and not as ordinary income.
Section 1231 property are assets used in trade or business and held by the Taxpayer for more than one year. A gain on the sale of Section 1231 business property is treated as a long-term capital gain.
Answer:
$2,000
Explanation:
The amount which is to be recorded for the service revenue for the month of the December 2018 is computed as:
Service revenue = Monthly Salary / Number of days in the month of December × Number of days from being hired
where
Monthly salary is $4,000
Number of days in the month of December is 30 days
Number of days from being hired is 15 days (From 15 December to 30 December)
Service revenue = $4,000 / 30 days × 15 days
Service revenue = $133.33 × 15 days
Service revenue = $1999.95 or $2,000
Therefore, the service revenue for the month of December amounts to $2,000.
