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3 years ago

Which type of adjusting entry is used to record a payment a company has not yet made for a service it received?

Business

1 answer:

givi [52]3 years ago

5 0

Answer:

C. Accrued expense

Explanation:

Because the expense has already been incurred, but not yet paid, it is an accrued expense.

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Henson company applies overhead on the basis of 120% of direct labor cost. job no. 190 is increased with $140,000 of direct mate

DaniilM [7]

The total manufacturing costs for the Job No. 190 is 470,000. To get its direct labor cost, which is the basis of the Henson Company in applying its overhead at the rate of 120%, we need to divide the manufacturing overhead of $180,000 by the rate 120% to get the direct labor cost of 150,000. (180,000/210% = 150,000). To get the total manufacturing cost, you need to add the:direct materials- 140,000direct labor- 150,000manufacturing overhead- 180TOTAL= 470,000- this is the total manufacturing costs (Job No. 190)

8 0

4 years ago

Your company has just taken out a 1-year installment loan for $82,500 at a nominal rate of 12.0% but with equal end-of-month pay

Bas_tet [7]

Answer:

89.63% of 2nd month payment will go towards the payment of principal.

Explanation:

Loan Payament per month = r ( PV ) / 1 - ( 1 + r )^-n

r = rate per period = 12% per year = 1% per month

n = number months = 12 months

PV = present value of all payments = $82,500

P = payment per month = ?

P = 1% ( $82,500 ) / 1 - ( 1 + 1% )^-12

P = $7,330 per month

Month Payments Principal Interest Balance

1 -7330 -6505 -825 75995

2 -7330 -6570 -760 69,425

Percentage of Principal Payment = Principal payment / totla monthly payment = $6,570 / $7,330 = 0.8963 = 89.63%

6 0

3 years ago

Assume you are going to lunch and have a choice of two meals. The first meal would give an increase in marginal utility of 100 w

pantera1 [17]

Answer:

C) Third

Explanation:

The first meal gives you 4 units of utility for every dollar spent (= 100 utility / $25).

The second meal gives you 5 units of utility for every dollar spent (= 10 utility / $2).

The third meal gives you 10 units of utility for every dollar spent (= 50 / $5). We should choose the meal that provides us with the greatest utility per dollar.

3 0

3 years ago

Read 2 more answers

Identifying the Appropriate GAAP. (LO15-1, LO15-3) Section A lists a number of reporting requirements for colleges and universit

Serggg [28]

Answer: Please refer to Explanation.

Explanation:

The Government Accounting Standards Board (GASB) is an NGO that oversees the formulation of the Generally Accepted Accounting Principles (GAAP).

The Financial Accounting Standards Board (FASB) does the same as well and is also an NGO.

The difference between the above 2 is that the whilst the GASB caters for Government organisations, the FASB caters for private Organizations.

Classifying the above we have,

1. Patents are classified as capital assets. GASB STANDARD.

2. Sidewalks are classified as land improvements. FASB STANDARD

3. Revenues and expenses must be categorized as operating and nonoperating. GASB STANDARD.

4. Tuition and fees must be shown net of any estimated uncollectible amounts. Both a GASB and an FASB STANDARD.

5. Expenses must be reported by program and support (management and general, and fund-raising) function classifications. FASB STANDARD.

6. Statement of cash flows must be prepared using the direct method. GASB STANDARD.

7. The purchase of a building is reported as an investing activity on the statement of cash flows. FASB STANDARD.

8. The receipt of student deposits for housing is reported as a liability, Deposits Held in Custody for Others. Both GASB and an FASB STANDARD.

9. The cash from a debt issuance is reported in the capital and related financing activities section on the statement of cash flows. GASB STANDARD.

10. The collection of historical first editions can be reported as a note rather than on the face of the financial statement provided certain conditions are met. Both a GASB and an FASB STANDARD.

7 0

3 years ago

Ula purchased stock in Purple, Inc., six years ago for $150,000. Purple has assets with a value of $225,000 ($175,000 basis) and

elena55 [62]

Answer:

$15,000 gain

Explanation:

Assets with a value of $225,000

Remaining asset (cash) to Ula ($25,000)

Purple liabilities ($60,000)

Balance $140,000

Balance Brought forward $140,000

Remaining asset (cash) to Ula $25,000

Ula purchased stock ($150,000)

Balance $15,000 gain

$225,000-$25,000-$60,000=$140,000+$25,000-$150,000=$15,000 gain

Therefore we have $15,000 gain.

3 0

3 years ago