BUSINESS COLLEGE

Provided $1,350 of piano lessons to students who paid in cash.Provided $1,060 of piano lessons on account.Collected $795 from students who took piano lessons during April.Paid April’s piano rental bill of $600.Received May’s piano rental bill of $650 and set it aside for payment in June. Assuming the company uses accrual basis accounting, what is net income for May?Multiple Choice

Answers

Answer 1
Answer:

Answer: $1760

Explanation:

If the company uses accrual basis accounting, the net income will be calculated as:

Cash received for lessons = $1,350

Add: Lessons provided on account = $1,060

Less: Rental bill for may = $(650)

Net income = $1350 + $1060 - $650

= $1760

The net income is $1760

Related Questions

Consider the information about the economy of Pakistan. Note that the currency of Pakistan is the rupee. The government purchases: 2.80 trillions of rupees. Individuals consume: 10.50 trillions of rupees. Individuals save: 5.10 trillions of rupees. Businesses invest: 1.30 trillions of rupees. Foreigners spend: 0.64 trillions of rupees to purchase Pakistani firms. Pakistan imports: 2.09 trillions of rupees. Pakistan exports: 1.30 trillions of rupees.
The Perez Company had a 12.5% return on a $100,000 investment in new equipment. The investment resulted in increased sales, and the resultant increase in income amounted to 5% of sales. The turnover (asset utilization) was:
Everlast Co. manufactures a variety of drill bits. The company's plant is partially automated. The budget for the year includes $660,000 payroll for 8,600 direct labor-hours. Listed below is cost driver information used in the product-costing system: Overhead Cost Pool Budgeted Overhead Cost Driver Estimated Cost Driver Level Machine setups $ 310,000 # of setups 310 setups Materials handling 115,800 # of barrels 9,650 barrels Quality control 1,290,000 # of inspections 3,000 inspections Other overhead cost 1,075,000 # of machine hours 21,500 machine hours Total overhead $ 2,790,800 A current product order has the following requirements: Machine setups 28 setups Materials handling 720 barrels Quality inspections 90 inspections Machine hours 1,700 machine hours Direct labor hour 564 hours Using ABC, how much total overhead is assigned to the order?
Fern motors is offering a rebate on cars purchased this month. this activity involves the ____ ingredient of the marketing mix.
Assume that Jose is indifferent between investing in a corporate bond that pays 10 percent interest and a stock with no growth potential that pays an 9.7 percent dividend yield. Assume that the tax rate on dividends is 15 percent. What is Jose's marginal tax rate?a. 47%.b. 37%.c. 32%.d. 15%.e. None of these.

On September 11, 2017, Home Store sells a mower (that costs $370) for $600 cash with a one-year warranty that covers parts. Warranty expense is estimated at 9% of sales. On July 24, 2018, the mower is brought in for repairs covered under the warranty requiring $42 in materials taken from the Repair Parts Inventory. Prepare the September 11, 2017, entry to record the mower sale, and the July 24, 2018, entry to record the warranty repairs. (Round your answers to 2 decimal places.)

Answers

Answer:

September 11 2017

Dr Cash                     600

 Cr Sales revenue     600

(to record sales revenue on cash)

Dr Cost of good sold      370

 Cr Inventory                   370

(to record cost of good sold)

Dr Warranty expenses        54

Cr Warranty liabilities          54

(to accrue for warranty liabilities)

Jul 24 2018

Dr Warranty liabilities         42

Cr Inventory                       42

(to record warranty services provided which was accrued)

Explanation:

11 Sep 2017:

- As sell of $600 is made on cash with the cost of good sold is $370, we Dr Cash 600 and Dr Cost of good sold 370 to record increase in cash and in Cost of good sold; and Cr Sales 600 and Cr Inventory 370 to record increase in sales and decrease in Inventory delivered.

- Warranty expenses should be recorded at the time to ensure matching of cost and revenue. Warranty expenses is estimated at 9% of sales, so it will be 9% x 600 = $54. Expenses is recorded and liabilities is accrued.

Jul 24 2018:

Warranty liabilities which was accrued actually occurs. So we Dr Liability by the expenses actually incurred and Cr Inventory consumed for the warranty services $42.

Assume that the returns from an asset are normally distributed. The average annual return for this asset over a specific period was 13.6 percent and the standard deviation of those returns in this period was 43.86 percent. a. What is the approximate probability that your money will double in value in a single year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What about triple in value? (Do not round intermediate calculations and enter your answer as a percent rounded to 6 decimal places, e.g., .161616.)

Answers

Answer: a. 2.44%

b.  0.001070%

Explanation:

Given: The  returns from an asset are normally distributed with

\mu=\text{ 13.6 percent and }\sigma=\text{43.86 percent.}

Let x be the percentage value of return.

a. Double in value in a single year i.e. 100% return.

z-value = (x-\mu)/(\sigma)

=(100-13.6)/(43.86)=1.97

Required probability = Right-tailed probability for Z = 1.97

= 0.0244   [By p-value calculator]

= 2.44%

b. Triple in value in a single year i.e. 200% return.

z-value = (x-\mu)/(\sigma)

=(200-13.6)/(43.86)=4.25

Required probability = Right-tailed probability for Z =4.25

=  0.0000107    [By p-value calculator]

= 0.001070%

This service allows you to pay at a point of sale and accesses funds in the bank but usually does not charge you a fee:A credit card

A student loan

A debit card

A car loan

Answers

Answer:

A debit card

Explanation:

A debit card allows customers to make electronic payments using the funds at their bank accounts. If the customer does not have sufficient funds in their bank accounts, the transaction won't go through.

A debit card is similar to a credit card in appearance. However,  a debit card does not levy interest fees or late payment fees because it's not a credit facility.

On January 1, 2021, Kendall Inc. began construction of an automated cattle feeder system. The system was finished and ready for use on September 30, 2022. Expenditures on the project were as follows: January 1, 2021 $ 235,000 September 1, 2021 $ 342,000 December 31, 2021 $ 342,000 March 31, 2022 $ 342,000 September 30, 2022 $ 235,000 Kendall borrowed $764,000 on a construction loan at 7% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,570,000 in 7% bonds payable outstanding in 2021 and 2022. Average accumulated expenditures for 2021 was:

Answers

Answer:

Average accumulated expenditures for 2021 was: $349,000.

Explanation:

Note: See the attached excel file for the calculation of the Average accumulated expenditures for 2021.

Average accumulated expenditures is calculated by adding the weighted average amount of each expenditure which is the product of the weight of each expenditure in a year and the amount of each expenditure. That is;

Weight of each expenditure = Number of relevant months the expenditure is used 2021 / 12 months

Weighted average amount of each expenditure = Weight of each expenditure * The amount of the expenditure

The marginal benefit from consuming another unit of a good: equals the total benefit obtained from the consumption of all prior units. equals the increase in total benefits from consuming the unit. must be less than the marginal cost or the unit will not be consumed. must equal the marginal cost or the unit will not be consumed.

Answers

Answer:

Equals the increase in total benefits from consuming the unit.

Explanation:

This is defined as a maximum amount a consumer is willing to pay for an additional good or service.

It is also the additional satisfaction or utility that consumer receives when the additional good or service is purchased. The marginal benefit for a consumer tends to decreases as consumption of the good or service increases.

In the business world, the marginal benefit for producers is often referred to as marginal revenue.

Frankenstein Enterprises received two notes from customers for sales that Frankenstein made in 2013. The notes included:Note A: Dated 5/31/2013, principal of $ 132,000and interest due 3/31/2014.Note B: Dated 7/1/2013, principal of $220,000 and interest at 8% annually, due on 4/1/2014.Frankenstein had accrued interest receivable from these notes of $16,000 in its 12/31/2013 balance sheet. What is the annual interest rate on Note A?a) 8.00%b) 9.35%c) 9.95%d) 9.65%

Answers

Answer:

Option B ⇒ The annual interest rate on Note A is  9.35% .

Explanation:

Note B has an accrued interest for six months during 2013: $220,000 x .08 x 6/12 = $8,800.

The remainder of the accrued interest, $7,200 ($16,000 - $8,800) was from Note A, which was held for seven months in 2013.

Therefore, we have the following: $132,000 x annual interest rate x 7/12 = $7,200.

Thus, the annual interest rate on Note A would be ($7,200/132,000) x 12/7 = 9.35%.

Option B ⇒ 9.35% is the correct answer.
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