Answer:
DR Prepaid expense $9,000
CR Cash $9,000
Explanation:
Based on the information given about Plum Co. In which we were been told that the company paid the amount of $9,000 in cash in order for management services to be performed and since the company record all prepaid expenses to their asset accounts this means that on July 1 Plum should:
DR Prepaid expense $9,000
CR Cash $9,000
Answer:
Net income from special order = $56,400
Blowing Sand Company should accept the order because it will increase net income by $56,400
Explanation:
In order to carry out an incremental analysis, only relevant cash flows should be considered.
The relevant cash flows from accepting the special order are the variable costs and the sales revenue.
Please, note that the fixed costs are not relevant for this decision. Simply because they would be incurred either way.
1. The sales revenue from the order- $30 × 9400 = $282,000
2. the variable cost of production $24 per unit × 9,400 = $225,600
The contribution from the special order would be determined as follows:
Contribution from special order = sales revenue - variable cost
= $282,000 - $225,600
= $56,400
Blowing Sand Company should accept the order
The Tax Cuts and Jobs Act represented sweeping changes to the tax code and reframed the computation of employee income tax.
<h3>What is Tax Cuts and Jobs Act?</h3>
Tax Cuts and Jobs Act serves as the established act that focus on the changes to the tax code as regards the employees.
Therefore,Tax Cuts and Jobs Act changes to the tax code reframed the computation of employee income tax.
Learn more about Tax Cuts and Jobs Act at:
brainly.com/question/1904946
Answer: $80,830
Explanation:
A. 3 months of this insurance should have been for the year:
= 3/12 * 16,800
= $4,200
This should be treated as an expense.
B. The services have not yet being performed so this should not be recognized as revenue but rather as Unearned revenue. It has to be deducted from Net income.
C. These supplies should have been treated as assets but they were treated as expenses. They need to be added back to the net income to correct it.
D. The interest for the 4 months of the year from September to December should have been recorded.
= 58,000* 4/12 * 12%
= $2,320
This should be treated as an expense.
Adjusted Net income = 88,000 - 4,200 - 2,800 - 2,320 + 2,150
= $80,830