Answer:
Explanation:
The journal entry for July 8, 2016 is shown below:
Bank A/c Dr $11,700
Commission fee A/c $300 ($12,000 × 2.5%)
To Sales A/c $12,000
Since the sales is recorded at $12,000 which includes commission fee of $300 ($12,000 × 2.5%) , the remaining balance i.e $11,700 ($12,000 - $300) would be debited to the bank account.
B. patents and copyright law
C. control of resources
D. economies of scale
E. licensing
Answer:
C. control of resources
Answer:
2.64%
Explanation:
A = P(1 + r)^n
A = $12,000
P = $10,000
n = 7 years
12,000 = 10,000(1 + r)^7
(1 + r)^7 = 12,000/10,000 = 1.2
(1 + r)^7 = 1.2
1 + r = (1.2)^1/7
I + r = 1.0264
r = 1.0264 - 1 = 0.0264
r = 0.0264 × 100 = 2.64%
Answer:
See below
Explanation:
Given the above information, the journal entries to record these transactions would be ;
Finished goods Dr $55,000
______ Work in process Cr $55,000
(Being record of transfer from work in process to finished goods)
Cost of goods sold Dr $61,000
__________ Finished goods Cr $61,000
(Being record of cost of goods sold)
Answer:
The correct answer is option (D)
Explanation:
Solution
Given that:
The present value of equity factor for 5 years at 12% discount are = 3.60478
Then,
The present value of servicing costing = -$500 * 3.60478 = -$1802.39
Thus,
The present value of cost to buy =- $18000
The total Present value = -18000 + 1802.39 = -$19802.39
So,
The equivalent annual annuity = total Present value / present value of equity factor
= -$19802.39 / 3.60478
= -$5493.37
Therefore, the equivalent annual annuity of this deal is -$5493.37
b. Results in financial statements that are less useful to decision makers because many details have been omitted.
c. Justifies ignoring the matching principle or the realization principle in certain circumstances.
d. Treats as material only those items that are greater than 2% or 3% of net income.
Answer:
The correct answer is letter "C": Justifies ignoring the matching principle or the realization principle in certain circumstances.
Explanation:
The materiality accounting principle states that some of the Generally Accepted Accounting Principles can be omitted in the entry of an item while record-keeping a company's transactions only in the case the entry does not have any influence on the Financial Statements. Those principles could imply matching or realization principles.