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blagie [28]
3 years ago
12

Item 6 In Year 1, Lee Inc. billed its customers $57,600 for services performed. The company collected $41,200 of the amount bill

ed. Lee incurred $36,200 of other operating expenses on account. Lee paid $23,400 of the accounts payable. Lee acquired $37,000 cash from the issue of common stock. The company invested $11,000 cash in the purchase of land. Required (Hint: Identify the six events described in the paragraph and record them in general ledger accounts under an accounting equation before attempting to answer the questions.) Use the preceding information to answer the following questions: a. What amount of revenue will Lee report on the Year 1 income statement
Business
1 answer:
katrin [286]3 years ago
5 0

Answer: $57,600

Explanation:

Accounting works by the Accrual basis. What this means is that transactions are recorded in the period they occur not in the period they are paid for.

In the above, Lee Inc. billed its customers $57,600 for services performed during the year. This is a service company and since their revenue comes from billings, this is their revenue for the year.

It does not matter that some of the services have not been paid for, it matters that the services were performed during the year.

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Rick has met with the Small Business Administration, which analyzed his entrepreneurial skills and provided him with a summary o
Mrrafil [7]

Answer:

c) Rick has an external locus of control.

Explanation:

What can challenge Rick in his quest to become a successful entrepreneur is that he has an external locus of control, which occurs when an individual relates events related to their failures or successes to external variables that are not their responsibility, such as fate, luck or bad luck.

The external locus of control can pose a challenge for Rick in the sense that an entrepreneur's success is related to his own personal control and personal efforts to make the business viable and successful in the market. It is necessary for the entrepreneur to understand that there are risks inherent to the business and that a business can work according to their efforts, learning and planning, that is, the entrepreneur and their control and management actions will be responsible for the success or failure of the business, and not just external factors like fate or bad luck.

5 0
3 years ago
A firm that sells​ e-books - books in digital form downloadable from the Internet​ - sells all​ e-books relating to​ do-it-yours
vampirchik [111]

Answer:

Profit maximizing price of the firm = 50 cents

Average total cost of e-book = $10.5

Explanation:

As per the data given in the question,

Maximum annual profit = $35,000

It sells = 15,000 copies

Expense rate = 50 cent

Company must spend = $150,000

Here, Profit maximizing price of the firm = marginal cost (Expense rate)

So, Profit maximizing price of the firm = 50 cents

As per the following formula,

Average total cost = Total cost ÷ Quantity of output

= ((0.5 × 15,000) + $150,000) ÷ 15,000

= $10.5

6 0
3 years ago
Hawkins Inc. had pre-tax accounting income of $1,800,000 and a tax rate of 35% in 2017, its first year of operations. During 201
Butoxors [25]

Answer:

Hawkins Inc.

For 2017, the amount of income taxes payable for Hawkins Inc. is:

= $572,600.

Explanation:

a) Data and Calculations:

2017 tax rate = 35%

Pre-tax accounting income =   $1,800,000

2018 Rent from Barrett Co.            64,000

Less:

Exempt Municipal bond income  (80,000)

Tax Depreciation (in excess of

 book depreciation)                     (40,000)

2018 Installment sales revenue (108,000)

Adjusted taxable income       $1,636,000

Income tax (35%)                        572,600 (35% of $1,636,000)

Tax expense (provision)             630,000 (35% of $1,800,000)

b) The difference between the income tax payable of $572,600 and the provision for income tax expense for the year of $630,000 is due to temporary differences and exempt Municipal bond income.  The temporary differences are caused by the different timings of the recognition of revenue and expenses under the tax jurisdiction and the GAAP accounting.

5 0
2 years ago
What is a major factor in the decline of some occupations, such as those in the textiles and clothing industries?
Pavel [41]
The major factor that contributes to the decline of occupations in industries such as textile and clothing is due to the change of technology. Through the technological advancement, innovators are able to machines that work twice as fast as human beings.
7 0
3 years ago
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What kind of psychologist would someone who is dealing with the loss of a loved one most likely visit?
aliina [53]

Answer:

Counseling psychologist

Explanation:

I just took the test! Good luck :)

8 0
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