What document is used to make adjustments to an existing sales contract?

A customer has total assets of $436,000 and total liabilities of $314,000. The customer has just signed a contract to buy a new

natta225 [31]

Answer:

$122,000

Explanation:

Net worth refers to total assets minus total liabilities.

Therefore, the net worth of this customer can be calculated as follows:

Assets = Existing assets + A new car - Withdraw from existing checking account = $436,000 + $35,000 - $5,000 = $466,000

Liabilities = Existing liabilities + Borrowing from auto fiance company = $314,000 + $30,000 = $344,000

Net worth = Assets - Liabilities = $466,000 - $344,000 = $122,000.

8 0

3 years ago

Amanda's Interior Design has credit sales of $783,000, costs of goods sold of $418,000, and average accounts receivable of $107,

posledela

Answer:

The 50.30 days are required to take its credit customers to pay for their purchases.

Explanation:

For computing the average collection period, we have to use the formula of the average collection period.

Average collection period = Average accounts receivable ÷ Credit sales × total number of days in a year

= $107,900 ÷ $783,000 × 365

= 0.13780 × 365

= 50.30 days

We assume 365 days in a year

The cost of goods sold is irrelevant. Thus, it is not considered in the computation part.

Hence, 50.30 days are required to take its credit customers to pay for their purchases.

5 0

3 years ago

In 2013, Space Technology Company modified its model Z2 satellite to incorporate a new communication device. The company made th

jeyben [28]

Answer:

1. Dec 31

Dr Research and Development Expense $3,180,000

Cr 2013 Patent $3,180,000

2. Dec 31

Dr Equipment $60,000

Cr 2013 Patent $60,000

3. Dec 31

Dr Research and Development Expense $10,000

Cr 2013 Accumulated Depreciation - Equipment $10,000

Explanation:

1. Preparation of the Journal entry to Record the correcting entry to expense

Dec 31

Dr Research and Development Expense $3,180,000

Cr 2013 Patent $3,180,000

(Being To record research and development expense )

Calculation for the Total amount of theresearch and development expense

Basic research to develop the technology $2,000,000

Engineering design work $680,000

Development of a prototype device $300,000

Testing and modification of the prototype $200,000

TOTAL research and development expense $3,180,000

2. Preparation of the journal entry to Record the correcting entry to capitalize the cost of equipment

Dec 31

Dr Equipment $60,000

Cr 2013 Patent $60,000

(Being To correct cost of equipment capitalized to patent)

3. Preparation of the Journal entry to Record the correcting entry to record depreciation on equipment

Dec 31

Dr Research and Development Expense $10,000

Cr 2013 Accumulated Depreciation - Equipment $10,000

(Being To record research and development expens

4 0

3 years ago

A manager has a gut feeling that some members are contributing more to the organization than other members. The first step the m

balandron [24]

Answer: This certain manager should be able to reach out to other the employes to join more organizations. I think that if these other employees are contributing to more organization than others, Then they will be more selected. The other employees that are not contributing will certainly be fired. Thanks this is my way of reasoning:)

4 0

3 years ago

In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.1. Cervi

Fofino [41]

Answer:

The entry to record the sales transactions and related taxes for Quartz Company would be as follows:

Debit Credit

Cash $23,100

Sales $22,000

Sales taxes $1,100

Cash $13,780

Sales $13,000

Sales taxes $780

Explanation:

In order to prepare the entry to record the sales transactions for Quartz Company we would have to make the following calculation:

According to the given data On April 10, the register totals are sales $22,000 and sales taxes $1,100, hence, cash=$22,000 +$1,100=$23,100

Therefore, the entry to record the sales transactions for Quartz Company would be as follows:

Debit Credit

Cash $23,100

Sales $22,000

Sales taxes $1,100

In April 15 the cash is $13,780, which includes a 6% sales tax, therefore, the sales would be calculated as follows:

sales=$13,780/6%

sales=$13,000

hence, sales taxes=$780

The entry to record the sales transactions and related taxes for Quartz Company would be as follows:

Cash $13,780

Sales $13,000

Sales taxes $780

5 0

4 years ago