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puteri [66]
3 years ago
12

Geraths Windows manufactures and sells custom storm windows for three-season porches. Geraths also provides installation service

for the windows. The installation process does not involve changes in the windows, so this service can be performed by other vendors. Geraths enters into the following contract on July 1, 2020, with a local homeowner. The customer purchases windows for a price of $2,400 and chooses Geraths to do the installation. Geraths charges the same price for the windows irrespective of whether it does the installation or not. The customer pays Geraths $2,000 (which equals the standalone selling price of the windows, which have a cost of $1,100) upon delivery and the remaining balance upon installation of the windows. The windows are delivered on September 1, 2020, Geraths completes installation on October 15, 2020, and the customer pays the balance due.
Required:
Prepare the journal entries for Geraths in 2020.
Business
1 answer:
defon3 years ago
5 0

Answer:

July 1

No Entry

Sep 1

Dr Cash $2,000

Dr Accounts Receivable $400

Dr Cost of goods sold $1,100

Cr Inventory $1,100

Cr Unearned Service Revenue $554

Cr Sales Revenue $1,846

Oct 15

Dr Cash $400

Dr Unearned Service Revenue $554

Cr Service Revenue $554

Cr Accounts Receivable $400

Explanation:

Preparation of the journal entries for Geraths in 2020.

July 1

No Entry

Sep 1

Dr Cash $2,000

Dr Accounts Receivable $400

($2400-$2000)

Dr Cost of goods sold $1,100

Cr Inventory $1,100

Cr Unearned Service Revenue $554

($600/$600+$2000*$2400)

Cr Sales Revenue $1,846

($2,000/$600+$2000*$2400)

Oct 15

Dr Cash $400

($2400-$2000)

Dr Unearned Service Revenue $554

Cr Service Revenue $554

($600/$600+$2000*$2400)

Cr Accounts Receivable $400

($2400-$2000)

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Answer and explanation:

The influence a company may have over another when one of them has a number of shares that belongs to the other is determined by the percentage of ownership that the number of shares represent. If its lower than 20%, it is said the company has <em>no influence</em> over the other. From 20% to 50% one company has <em>significant influence</em> over the other. Finally, with more than 50% of the outstanding shares in possession, one company has <em>control </em>over the other.

In that case, CBS Corp. has no influence over Westwood One, Inc. since it owns only 18% of the outstanding shares.

4 0
3 years ago
The town of Sanford, Maine, decided to auction off a plot of land owned by the town. The town advertised that it would accept bi
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Answer:

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Explanation:

Usually when an auction is carried out there are conditions established beforehand by the auctioneer that must be fulfilled in order for the sale to be completed.

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5 0
3 years ago
Fern Co. has net income, before taxes, of $200,000, including $20,000 interest revenue from municipal bonds and $10,000 paid for
exis [7]

Answer:

Effective tax rate =28.50 %

Explanation:

given data

Net Income before taxes = $2,00,000  

Interest revenue = $20,000  

Life insurance Premium = $10,000

tax rate = 30%

to find out

Fern's effective tax rate

solution

first we get here Taxable Income that is express as

Taxable Income = Net Income before taxes + Life insurance Premium - Interest revenue   ........................1

put here value we get

Taxable Income = $2,00,000 + $10,000 - $20,000

Taxable Income = $190000

so

Income tax Liability will be

Income tax Liability = Taxable Income × Tax rate  .....................2

Income tax Liability = $190000  × 30%

so Effective tax rate will be

Effective tax rate = \frac{Income\ tax\ Liability}{Net\ Income}

Effective tax rate = \frac{57000}{200000}

Effective tax rate =28.50 %

3 0
2 years ago
Retained earnings are?
Yakvenalex [24]

Answer:

Retained earnings is the amount of net income left over for the business after it has paid out dividends to its shareholders. The decision to retain the earnings or distribute them among the shareholders is usually left to the company management.

Explanation:

hope this helps you with your question

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The market for a good was in equilibrium. A change occurred which resulted in a new equilibrium with a higher price for the good
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Answer:

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4 0
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