Answer:
Payback period = 3.5 years
Explanation:
Net income $50,000.00
Add: Depreciation expense<u> $42,000.00</u>
Net annual cash inflow <u> $92,000.00</u>
Payback period = Initial investment / Annual cash inflows
= $324,000 / $92,000
= 3.5 years
Answer:A. A contract to deliver a praticular commodity to a buyer sometime in the future.
Explanation:
Answer:
a. Cash basis $15,000
b. Accrual basis $2,500
Explanation:
Under the cash basis of accounting, expenses are recorded or recognized in the books not necessarily when incurred but when cash is paid. This is not in line with the matching concept which requires that expenses be recognized the period it is incurred as well as the resulting revenue.
Hence, the $15,000 paid on January 1 would have been recognized as an expense for the two months ending February 28 using the cash basis.
Using the accrual basis, monthly expense
= $15,000/12
= $1,250
Hence advertising expense for 2 months
= 2 * $1,250
= $2,500
<u>Merck & Co:</u>
Merck is a global healthcare organization that conveys inventive wellbeing arrangements through its physician recommended meds, immunizations, biologic treatments, and creature wellbeing items. View the rundown of items promoted in the United States.
It works as Merck and Co. in North America, the first Merck situated in Darmstadt holds the rights to the Merck name wherever else. Merck and Co. It is the world's seventh-biggest pharmaceutical organization by advertise capitalization and income.
Following ten years around 1967, the organization started its association in liquid crystals, prompting its market-driving job today. Liquid crystals represent the heft of Merck's benefits at present. Furthermore, presently at present, they are the world head in delivering liquid crystals for Flat-TVs and Monitors. In the region of explanatory science.
Explanation:
The adjusting entry is as follows
On January 31
Unearned revenue A/c Dr $3,500
To Magazine subscription revenue A/c $3,500
(Being the unearned revenue is recorded)
The computation is shown below:
= Sale value of annual subscriptions ÷ total number of months in a year
= $42,000 ÷ 12 months
= $3,500
