What should you remember when you

Business

2 answers:

love history [14]3 years ago

4 0

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Naily [24]3 years ago

3 0

Answer:

Explanation:

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For the current interest period, Jones Corporation's accountant correctly recognized interest expense of $7,350 relating to Jone

Xelga [282]

Answer:

Journal entry recording the interest

Debit Credit

Interest Expense $7,350

Cash $7,000

Interest Payable $350

As $7,000 is paid from the total expense of $7,350. Remaining interest of $350 is recorded as liability in interest payable account.

5 0

4 years ago

On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month

Naddika [18.5K]

Answer:

1. Jan 31 Debit Cash $53,600

Credit Accounts receivable $53,600

2. June 30 Debit Cash $80,400

Credit Deferred Revenue $21,440

Credit Bonus Received $5,360

Credit Accounts Receivable $53,600

3. June 30 Debit Penalty Payable $26,800

Debit Cash $53,600

Credit Accounts Receivable $53,600

Credit Deferred Revenue $21,440

Credit Bonus adjustment $5,360

Explanation:

The question required that the month end revenue actually realized under the contract be journalized.

1.$53,600/- is a monthly payment which Revis will be receiving from Green Financial for every month for 6 months. Hence the receipt increases cash/bank balance and these are receivable under the contract. Hence accounts receivable is credited against the actual money received in the first month.

2.If cost saving targets are achieved by Revis, then apart from the monthly payment of $53,600/-, Green Financials has agreed to pay $26,800/- as bonus. Since the question states that Revis estimates that 80% it will reach the target, it would have accounted for the 80% as deferred revenue to be received. Hence 80% of $26,800/- is recorded under deferred revenue. Since now entire $26,800/- is received, the remaining 20% is shown as bonus received.

3.When the targets are not met, the deferred revenue recognized is reversed and penalty is paid. The difference of 20% is shown as bonus adjustment amount. The regular monthly income of $53,600/- is recognized as is.

6 0

3 years ago

Computing and analyzing acid-test and current ratios

uysha [10]

Answer:

Current ratio- 2.03 2.33 1.73 and Acid-test ratio- 0.98 0.43 0.60

Explanation:

Attach is the table of given cases

Acid test ratio= $\frac{cash+Short\ term\ investments+ Current\ receivables }{Current\ liabilities}$