A. Technology , the use of kiosks will replace the jobs of some workers.
Answer:
The general journal entry to be made is:
Dr Cash($200+$125) $325
Cr Revenue from services provided $200
Cr Revenue from rental services $125
Explanation:
The sales revenue is made up of dance and rental services which implies that the account for each is credited with $200 and $125 respectively as increase in income naturally is credited to revenue.
On other hand the receipt of cash of $200 as well as $125 which sums up to $325 implies that cash has increased by the same amount, since cash is an asset an increase in asset has a debit entry, that justifies the reason for debiting cash account with $325
Answer:
a. Debt Investments 520,000
Interest Revenue 12,500
Cash 532,500
Explanation:
The journal entry is as follows
Debt Investments 520,000
Interest Revenue 12,500
To Cash 532,500
(Being the purchase of the bond is recorded)
The calculation is shown below:
For debt investment,
= $500,000 × 104%
= $520,000
And, for interest revenue it is
= $500,000 × 10% × 3 months ÷ 12 months
= $12,500
The three months is calculated from the May 1, 2018 to August 1, 2018
Since the bonds are purchased so the cash account are credited and the debt investment and the interest revenue is debited
Answer:
If the ending inventory was understated, that means that the cost of goods sold will be overstated. If the cost of goods sold was overstated, then net profits were understated.
Explanation:
Imagine a company that sells shoes:
It bought 100 shoes at $100 each during the whole year and their ending inventory was 10 units. This means that cost of goods sold was (100 - 10) x $100 = $9,000. But someone discovered 5 pairs in some shelf that were not included in the ending inventory, then the real ending inventory was 15 units = $1,500 and not $1,000. That also means that the cost of goods sold was $8,500, not $9,000. Lower costs = higher profits.
