Explanation:
The Journal Entry from July 1 and July 31 is shown below:-
1. Cash Dr, $560
To Deferred revenue $560
(Being cash is received)
2. Deferred revenue $336
To Sales revenue $336
(Being 12 months sales service is recorded)
3. Cost of goods sold $280
To Inventory $280
(Being cost of goods sold is recorded)
4. Deferred revenue ($336 ÷ 12) $28
To Service revenue $28
(Being Deferred service revenue is recorded)
Working Note:-
Cellular service revenue = offer price ÷ total cost of phone and service × cellular service
= (($560 ÷ ($448 + $672)) × $672
= $336
Answer:
STOCKHOLDERS EQUITY
Common Retained Stockholders
stock earnings equity
Beginning balance January 1 153.000 53.000 206.000
Issuance of common stock 43.000 43.000
Net income for the period 33.000 33.000
Cash Dividens (10.300) (10.300)
Ending balances December 31 196.000 75.700 271.700
BALANCE SHEET
Cash 52.900
Supplies 11.200
Prepaid Rent 25.500
Land 215.000
Total Assets 304.600
Account payable 8.100
Utilities payable 3.000
Salaries payable 3.800
Notes payable 18.000
Total liabilities 32.900
Common stock 196.000
Retained earnigs 75.700
Total stockholders 271.700
Liablities and
Stockholders 304.600
Explanation:
STOCKHOLDERS EQUITY
Common Retained Stockholders
stock earnings equity
Beginning balance January 1 153.000 53.000 206.000
Issuance of common stock 43.000 43.000
Net income for the period 33.000 33.000
Cash Dividens (10.300) (10.300)
Ending balances December 31 196.000 75.700 271.700
BALANCE SHEET
Cash 52.900
Supplies 11.200
Prepaid Rent 25.500
Land 215.000
Total Assets 304.600
Account payable 8.100
Utilities payable 3.000
Salaries payable 3.800
Notes payable 18.000
Total liabilities 32.900
Common stock 196.000
Retained earnigs 75.700
Total stockholders 271.700
Liablities and
Stockholders 304.600
Answer:
Net income for a merchandiser is computed as:
Net sales - cost of goods sold - other expenses.
Explanation:
Net sales are the sales revenue after deducting sales discounts and allowances. The cost of goods sold represent the beginning inventory of merchandise and current period's purchases less the ending inventory. The difference between the net sales and the cost of goods sold is called the gross profit. From this, other expenses incurred in running the business and generating sales are deducted, including income taxes to arrive at the net income.
The answer would be:
A. something with a fixed value that we use for exchange
I hope this helps! :D
