The earliest elections will come effective on January 1, 2016 for case a, b, d anf January 1, 2017 for rest options.
<h3>For different
alternative scenarios:</h3>
a.) Jane is on top of things and makes the election on January 1, 2016.
January 1, 2016
b.) Jane is mostly on top of things and makes the election on January 15, 2016.
January 1, 2016
c.)Jane makes the election on February 10, 2016. She needed a little time to convince a C corporation shareholder to sell its stock to a qualifying shareholder. That process took all of January, and she was glad to have it over with.
January 1, 2017
d.)Jane makes the election on March 14, 2016.
January 1, 2016
e.)Jane makes the election on February 5, 2016. One of the shareholders refused to consent to the S election. He has since sold his shares (on January 15, 2016) to another shareholder who consented to the election.
January 1, 2017
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Answer:
a. The amount refund owed to the customer is : $29,792
b. To record the refund and the return of merchandise:
Dr Sales returned and Allowances $30,400
Cr Sales Discounts $608
Cr Cash $29,792
(to record the refund of $30,400 sales with sales discount of $608 made)
Dr Merchandise Inventory $13,060
Cr Cost of Merchandise sold $13,060
(to record the impact of the $30,400 sales refund on cost of merchandise sold and merchandise inventory)
Explanation:
- Further explanation for sell discounts calculation:
As the terms is 2/10, total discount had been given as calculated below:
$30,400 x 2% = $608.
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Households would provide factors of production to firms.
- The circular flow demonstrates the movement of money in the economy.
- The two-sector model of circular flow comprises households and firms.
- Money first flows from producers to households in return for production services in the form of wages.
- Finally, return to producers back in the form of payment for the purchase or expenditure made by households.
<h2>What do you mean by circular flow of money?</h2>
- The circular flow model demonstrates how money moves through society.
- Money flows from producers to workers as wages and flows back to producers as payment for products.
- In short, an economy is an endless circular flow of money.
<h2>What are the two types of circular flow?</h2>
There are two types of circular flow:
- Real flow: The term real flow means the flow of factor services from households to firms.
- Similarly, the flow of goods and services from firms to households.
- Money flow: The money flow refers to the flow of factor payments from firms to households for factor services.
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