Answer:
Debit Cash account (with the amount received)
Credit Accounts receivables (with the amount received)
Explanation:
Revenue is not recorded until the recognition criteria for the recognition of revenue has been met and this includes;
- the corresponding cost incurred in generating revenue can be reliably measured
- the goods or service has been delivered
Given that the service was performed in May, when half of the fee was received in April, the required entries then was
Debit Cash account
Credit Unearned revenue (with the amount received being half payment)
when the service was performed in May,revenue was earned
Debit Unearned revenue (with the amount received being half payment)
Debit Accounts receivable (with the amount yet to be received being half payment)
Credit Revenue (with the amount agreed for the service)
In June when the final payment is received,
Debit Cash account (with the amount received)
Credit Accounts receivables (with the amount received)
Answer:
$720,000
Explanation:
The total budgeted selling and administrative expenses is made up of both fixed and variable components. The variable component of the cost is dependent on the budgeted number of units to be sold.
Total variable cost budgeted
= 58000 ( $1 + $3 + $4 +$2)
= $580,000
Total fixed cost = $10,000 + $120,000 + $4,000 + $6,000
= $140,000
total budgeted selling and administrative expenses for October
= $580,000 + $140,000
= $720,000
Answer:
Quebec, Inc.
Assuming Quebec, Inc. uses FIFO periodic inventory procedures, the ending inventory cost is:
= $2,220.
Explanation:
a) Data and Calculations:
Units Unit Cost Total Cost Units Sold
Beginning Inventory 32 $54 $1,728
Sale No. 1 10
Purchase No. 1 28 60 1,680
Sale No. 2 32
Purchase No. 2 20 57 1,140
Totals 80 $4,548 42
Ending Inventory using FIFO periodic inventory system:
Units of ending inventory = 38 (80 - 42)
Units are from: Units Unit Cost Total Cost
Purchase No. 1 18 60 $1,080
Purchase No. 2 20 57 1,140
Ending Inventory 38 $2,220
