Answer:
1. The cost of a hard drive installed in a computer. DIRECT MATERIAL COST.
The business of the company is to make computers so when it comes to hard drives, these are fundamental parts of a computer so they will be classified as direct materials since they are directly involved in the production process.
2. The cost of advertising in the Puget Sound Computer User newspaper. SELLING COST.
Advertising is done to be able to sell gods and services so it will fall under selling costs.
3. The wages of employees who assemble computers from components. DIRECT LABOR COST.
The labor cost of those that are involved in the direct manufacture of the computer will be considered direct labor as they are directly involved in the production process.
4. Sales commissions paid to the company’s salespeople. SELLING COST.
Sales commissions are paid to encourage the salespeople to sell more so this is a selling cost as it is incurred to increase sales.
Answer:
Rent expense of $2,000
Prepaid rent of $22,000
Explanation:
Since we were told that On November 1,2019 Movers Inc., paid the amount of $24,000 for a 2 years' rent which will start or begin on November 1 which means Movers' year-end financial statements as of December 31,2019 will show:
Rent expense of $2,000
Prepaid rent of $22,000
The rent expense of $2,000 is calculated as
(1÷12*$24,000)=$2,000
The prepaid rent of $22,000 is calculated as
$24,000-$2,000
$22,000
I think it’s higher the risk and the lower present value
Answer:
Explanation:
The journal entries are shown below:
a. Cash A/c Dr $15,000
To Games revenue A/c $15,000
(Being cash collected)
b. Cash A/c Dr $3,000
Accounts receivable A/c Dr $5,000
To Sales revenue $8,000
(Being cash received for selling of equipment)
c. Cash A/c Dr $4,000
To Account receivable $4,000
(Being cash received for merchandise sold by the company)
d. Cash A/c Dr $2,500
To Unearned revenue A/c $2,500
(Being deposit received for the upcoming fall season)
Cds are time deposits that you can close before the term ends but might pay early penalty for withdrawing early. Cds vary with the financial institution. I would say a savings account
