Answer:
1. Debit Depreciation expense $1,340
Credit Accumulated depreciation $1,340
2. Debit Interest expense $275
Credit Accrued Interest $275
3. Debit Supplies expense $450
Credit Supplies Account $450
4. Debit Unearned Service revenue $3,100
Credit Service revenue $3,100
5. Debit Salaries expense $900
Credit Accrued Salaries $900
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the income statement over the estimated useful life of that asset.
It is determined as the depreciable value of the asset over the estimated useful life of the asset where the depreciable value is the difference between the cost and salvage value of the asset
Mathematically,
Depreciation = (Cost - Salvage value)/Estimated useful life
It is recorded by debiting depreciation and crediting accumulated depreciation.
When interest is incurred as an expense but yet to be paid, it will be accrued for by Debiting Interest expense and crediting accrued Interest. The same applies to salaries incurred but yet to be paid.
When Supplies is purchased, Debit supplies and credit Cash/Accounts payable. As Supplies are used up, debit supplies expense (with the amount used) and Credit Supplies account.
Amount of supplies used up = $550 - $100
= $450
When a fee is received in advance for a service yet to be rendered, the revenue for such fee is said to be unearned. The entries required are
Debit Cash account and Credit Unearned fees or deferred revenue.
As the service is performed and the revenue is earned, debit Unearned fees and credit revenue.
Earned revenue = $4,000 - $900
= $3,100
Answer: Incentives
Explanation:
Incentive Fees which can also be known as Performance Fees are an ADDITIONAL form.of compensation that are tied to an Employee's salary based on their level of performance or more specifically, their level of Financial return.
They can be calculated in various ways but the main goal is to encourage the employee to keep up the good work.
Endrik received the Incentive of a large bonus check for Exceeding the Sales expectations of the company. This will spur him to keep up the good work.
1. Record the issuance of note.
2. Record the adjustment for interest.
3. Record the repayment of the note at maturity.
Answer:
1.
Aug 1st,2021; Entry to record note issuance is as followed:
Dr Note Receivable $20,600,000
Cr Cash $20,600,000
(to record the issuance of note to Trico Technologies)
2.
Dec 31st,2021; Entry to record interest income from note receivable:
Dr Interest revenue receivable $515,000
Cr Accrued Interest Income $515,000
(to record accrued interest income of 5 months; calculated as 20,600,000 x 6% x 5/12 = $515,000)
3. January 31st, 2022; Entry to record repayment of the note at maturity:
Dr Cash $21,218,000
Cr Interest Income $103,000
Cr Note Receivable $20,600,000
Cr Interest Income receivable $515,000
( to record the repayment of the principal and interest income, in which 5 months of interest income had already been recorded in 2021, the other 1 month of interest income $103,000 (20.6 million x 6%/12) is recorded at the end of January which is also maturity time.
Explanation:
Answer:
The company must sell 34706 units
Explanation:
To calculate the units required to earn a target profit of $1000000 next year, we will use the break even analysis modified for target profit calculation.
The break even in units is calculated by dividing the Total fixed costs by the contribution margin per unit. To calculate the units required for target profit, we add the target profit amount to the fixed cost and divide it by the contribution margin per unit. Thus, the formula is,
Units required for target profit = (Total fixed cost + target profit) / Contribution margin per unit
Where contribution margin per unit = Selling price per unit - Variable cost per unit
New fixed costs = 700000 + 700000 * 0.1 = 770000
New variable cost = 45 - 3 = 42
New contribution margin per unit = 93 - 42 = $51
Units required for target profit = (770000 + 1000000) / 51
Units required for target profit = 34705.88 rounded off to 34706 units
B. "Report any differences on the enclosed statement directly to our auditors; no reply is necessary if this amount agrees with your records"
C. "If you do not report any differences with 15 days, it will be assumed that this statement is correct"
D. "The following invoices have been selected for confirmation and represent amounts that are overdue"
Answer:
The correct answer is letter "C": "If you do not report any differences with 15 days, it will be assumed that this statement is correct".
Explanation:
Accounts Receivable, or AR, is an accounting term used to refer to the money that is owed to a company by its customers. The customers, who may be individuals or corporations, are the debtors since they owe money for the goods or services provided by the company. When the product is sold in credit the company sets a number of days so that the customer can pay the bill amount. The term usually is 30, 60 or 90 days.
In that sense, and auditor may find 15 days suitable for a debtor for report changes in a statement, otherwise, it is considered as correct.
Answer:
e. Affiliative selling relationship
Explanation:
In an affiliative selling relationship, the buyer needs the information related to the product which helps the buyer to buy the product. The buyer trust on the seller with a view to satisfy his expectations
This relationship fully depends upon the trust which results in the best purchasing decision.
By maintaining the trust, the seller increase its sales which helps him to achieve its sales target