-.444 anything divided by nine is the numerator repeating, just add a - sign
Your answer is a command economy. Good Luck.
Answer:
1. Dr Accounts Receivable $6
Cr Fees Earned $6
2. Dr Supplies Expense $3
Cr Supplies $3
3. Dr Insurance Expense $12
Cr Prepaid Insurance $12
4. Dr Depreciation Expense $5
Cr Accumulated Depreciation—Equipment $5
5. Dr Wages Expense $2
Cr Wages Payable $2
Explanation:
Preparation of the five journal entries that adjusted the accounts at October 31, 2018.
1. Dr Accounts Receivable $6
Cr Fees Earned $6
($44-$38)
(To Accrued fees earned)
2. Dr Supplies Expense $3
Cr Supplies $3
($10-$7)
(To record Supplies used)
3. Dr Insurance Expense $12
Cr Prepaid Insurance $12
($22-$10)
(To record Insurance expired)
4. Dr Depreciation Expense $5
Cr Accumulated Depreciation—Equipment $5
($12-$7)
(To record Equipment depreciation)
5. Dr Wages Expense $2
Cr Wages Payable $2
($2-$0)
(To record Accrued wages)
Answer:
A. $230,400
Explanation:
600,000 x 40% = 240,000
260,000 - 156,000 = 104,000 transfers of goods intra-entity at sale price
we divide by the markup to know the cost:
104,000 / 1.3 = 80,000 cost of the goods
gross margin 104,000 - 80,000 = 24,000
we will eliminate 40% of the gross margin
24,000 x 40% = 9,600
This amount will be eliminate from the incoem statemnet:
240,000 - 9,600 = 230,400
