Answer:
Option (B) is correct.
Explanation:
On November 21,
Note amount = $6,000
Period = 60-day
Interest rate = 12%
When Note is not paid by the market at maturity, then
The Accounts Receivable Account is debited with the Par Value of Note plus interest income and credited Notes Receivables $6,000 and Credit Interest Revenue $120.
Therefore, the journal entry is as follows:
Accounts Receivable A/c Dr. $6,120
To Notes Receivables $6,000
To Interest Revenue $120
(To record the note)
The journal entry to recognize a note not being paid at maturity is to debit Cash and credit Notes Receivable for the principal balance and to credit Interest Revenue for the accrued interest.
The correct journal entry to recognize the event of a $6,000, 60-day, 12% note not being paid by the maker at maturity is: A. debit Cash, $6,120
credit Notes Receivable, $6,12
This entry debits the Cash account to account for the amount the maker owes and credits the Notes Receivable account to remove the note from the books. The additional $120 represents the accrued interest, which is recognized as Revenue.
#SPJ3
Answer:
$21,000
Explanation:
Preparation of income statement
Income statement of Pink Arrangements for the year ended December 31, 2018.
REVENUE:
Service Revenue 84,000
Less EXPENSE:
Insurance Expense (2,500)
Utilities Expense (1,500)
Rent Expense (12,000)
Salaries Expense (47,000)
NET INCOME 21,000
Therefore the Income statement of Pink Arrangements for the year ended December 31, 2018 will be shows the amount of $21,000
The income statement of Pink Arrangements for the fiscal year ending 2018 is prepared by subtracting the total operating expenses (Insurance Expense, Utilities Expense, Rent Expense, and Salaries Expense) from the Service Revenue. The result is an Operating Profit of $21,000.
To prepare the income statement of Pink Arrangements for the year ended December 31, 2018, you start by calculating the Gross Revenue. In this case, the Service Revenue of $84,000 is the Gross Revenue since the company is a service company.
From the Gross Revenue, we deduct the operating expenses - Insurance Expense, Utilities Expense, Rent Expense, and Salaries Expense. This gives us the Operating Profit or Loss. The calculations are as follows:
With this, you can conclude that the Operating Profit of Pink Arrangements for the fiscal year ending December 31, 2018 is $21,000.
#SPJ3
B.Given another dollar, Ellie should buy an additional unit of Beta
C.In order to maximize utility, Ellie should buy more of Beta and less of Alpha
D.In order to maximize utility, Ellie should buy more of Alpha and less of Beta
Answer:
D) In order to maximize utility, Ellie should buy more of Alpha and less of Beta
c. Outstanding checks at August 31 totaled $1,870.
d. Interest credited to the account during August but not recorded on the company's books amounted to $115.
e. A bank charge of $37 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $625 had been recorded as a disbursement of $367.
g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,356.
Required:
Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.
Answer:
Part a.
No entry
Part b.
Debit : Deposits in Transit $1,247
Credit : Bank Reconciliation Statement $1,247
Increase the Bank Statement Balance
Part c.
Debit : Bank Reconciliation Statement $1,247
Credit : Out Standing Checks $1,870
Decrease theBank Statement Balance
Part d.
Debit : Cash $115
Credit : Interest received $115
Interest credited in Bank Statement not recorded
Part e.
Debit : Bank Charges $37
Credit : Cash $37
Recording of Bank Charges in the Books
Part f.
Debit : Accounts Payable $258
Credit : Cash $258
Payment to Supplier understated by $258
Part d.
No entry
Explanation:
Corrections and Adjustments may be either to correct the Cash Book or the Bank Statement Balance as above.
Answer:
The markup percentage is 40%
Explanation:
The computation of the markup percentage is shown below:
Markup percentage is
= Return on investment ÷ Total cost
= ($2,200,000 × 16%) ÷ ($430,000 + $450,000)
= $352,000 ÷ $880,000
= 40%
Hence, the markup percentage is 40%
We simply applied the above formula
And, the same is to be considered
Sales would be ignored in this case
Answer:
D. It will decrease the output level
Explanation:
Answer: d
Explanation: