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:
$47439.50
Explanation:
For a single tax payer if your taxable income range is $200,000 - $500,000 then your income tax is $45,689.50 + 35% of amount over $200,000 of taxable income.
Income tax liability = $45689.50+{ 205000-200000)×35%}
$45689.50+(5000×35/100)
$45689.50+(5000×0.35)
$45689.50+1750
= $47439.50
The income tax liability will be $47439.50
Answer:
c. 2.30 years
Explanation:
In the payback, we analyze in how many years the invested amount is recovered. The computation is shown below:
In year 0 = $1,150 (Initial investment)
In year 1 = $500
In year 2 = $500
In year 3 = $500
If we sum the first 2 year cash inflows than it would be $1,000
Now we deduct the $1,000 from the $1,150 , so the amount would be $150 as if we added the fourth year cash inflow so the total amount exceed to the initial investment. So, we deduct it
And, the next year cash inflow is $500
So, the payback period equal to
= 2 years + ($150 ÷ $500)
= 2.30 years
In 2.30 yeas, the invested amount is recovered.
Answer:
B. Corporation
Explanation:
Corporation is a complex structure of business ownership recognized as separate and distinct from its owners. A corporation is subdivided into small units called stocks, equity, or shares. Each share or stock represents a small part of the company. Owning a share of a corporation is equivalent to owning a small portion of the corporation. A corporation issues shares to investors when it intends to raise additional capital. The shares of corporations are traded at the securities exchange markets.
Shareholders is the title given to owners of a corporation's shares. one feature of a corporation is that it offers its shareholders limited liability to the company's debts. Should the corporation fail in meeting its obligations, shareholders' personal assets cannot be used to settle the debts.
Answer:
Option (E) is correct.
Explanation:
Under the perfectly competitive market conditions, there are large number of buyers and sellers and there is no restrictions on the entry and exit of the firms. Prices of the goods are determined by the market forces and the demand curve for a firm in a perfectly competitive environment varies significantly from the market demand curve. The demand curve is horizontal because all the goods in a perfectly competitive market are considered as perfect substitutes.
