Answers
Based on the accrual method, the correct entry for $10,000 worth of services would be a debit to accounts receivable for $10,000 and a credit to Sales revenue for $10,000.
Why is this the correct entry?
The company has performed a certain service for a customer and hasn't been paid for it. The customer therefore owes the company which makes them an account receivable.
The $10,000 will be considered revenue by the company so they will credit the revenue account. Accounts Receivables are assets so this account will be debited.
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Final answer:
The company should debit (increase) the Accounts Receivable account by $10,000 and credit (increase) the Service Revenue account by $10,000. This follows the accrual method of accounting, in which revenues and expenses are recorded when they are earned and incurred, respectively.
Explanation:
The correct entry to record this transaction, using the accrual method, involves two accounts: Accounts Receivable and Service Revenue. Here is the step-by-step process of recording this transaction.
- Debit (increase) the Accounts Receivable account by $10,000. This step is done because the company has provided a service and is now entitled to receive money (accounts receivable) from the customer.
- Credit (increase) the Service Revenue account by $10,000. The company has earned revenue due to the service that they performed. Revenue increases by credits in the accounting equation.
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Related Questions
Which of the following statements are inconsistent with the efficient market hypothesis?a. The average annual return on stocks is greater than zero. b. Stocks that outperform the index in March always underperform it in April. c. Half of fund managers are able to beat their relevant index each year, before fees. d. Stocks that outperform the index in March always outperform it in April.
2.) Which of the following is true? A. The convenience yield is always positive or zero. B. The convenience yield is always positive for an investment asset. C. The convenience yield is always negative for a consumption asset. D. The convenience yield measures the average return earned by holding futures contracts.
At the end of the current year, Newsmax Inc. has $400,000 of subscriptions received in advance included in its balance sheet. A disclosure note reveals that the entire $400,000 will be recognized in the income statement in the next year. In the absence of other temporary differences, in the balance sheet one would also expect to find a:
asserine runs a tapestry shop in Rome, weaving historical images for the tourism industry. Lately, her arthritis has gotten worse, so she brings in several young workers and begins to teach them how to weave her images. Which factor of production did Passerine enhance?
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Answer:
the correct answer is C
good luck ❤
Answers
Answer:
As a result of the technology change, the price of pollution will be same as price of pollution with pollution permits.
The quantity of pollution with corrective tax will be lower than quantity of pollution with pollution permits.
Explanation:
The pollution permits are issued to reduce pollution by firms. The companies will reduce the pollution and will only be able to emit pollution up to certain limit. The price of pollution with corrective tax will be same as the price of pollution with pollution permits.
Final answer:
The change in technology will effect an increase in the price of pollution due to the increased cost of production factoring in the social cost of pollution, hence shifting the supply curve upward. The quantity of pollution will decrease as firms adopt cheaper technologies for pollution reduction influenced by the corrective tax policy and pollution permits.
Explanation:
The subject of your question is concerned with corrective tax policy and pollution permits in the context of a market economy under the influence of advances in technology. Under the original conditions before the social costs of pollution are taken into account, the equilibrium was met at a pollution price of $15 with a quantity of 440. However, once the external cost of pollution has been factored in, the supply curve shifts upward, creating a new equilibrium at a price of $30 and a quantity of 410, indicating an increase in the cost of pollution and a decrease in its quantity.
These policy instruments (corrective tax and pollution permits) induce companies to invest in technologies that reduce pollution higher costs of pollution as a result of the corrective tax motivate firms to seek cheaper technologies for pollution reduction. Those with less costly ways of lessening pollution will do so to reduce their tax expense, while those who would incur large costs in doing so would opt to pay the tax. The option of pollution permits introduces a marketplace where firms can purchase the right to pollute, the cost of which is again a motivator for firms to reduce pollution. Consequently, the demand for pollution permits among firms will influence their pricing. Firms that can reduce pollution at lower costs will do so the most. With no change in demand for pollution permits or corrective tax policies, the price of pollution will change as a result of the conditions set by these policies, and the quantity will change according to the adoption of more efficient technology.
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Direct labor (variable) $3.50
Variable manufacturing overhead $1.00
Fixed manufacturing overhead $4.00
Total unit cost $14.50
This special order would require an investment of $10,000 for the molds required for the extra-large trees. These molds would have no other purpose and would have no salvage value. The special order trees would also have an additional variable cost of $6.00 per unit associated with having a white tree. This special order would not have any effect on the company's other sales.
Should Apex accept the order? What is the effect on net operating income of accepting the order?
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Answer:
It is profitable to accept the special offer.
Explanation:
Giving the following information:
The shopping mall would like to purchase 200 extra-large white trees. Apex Company has the excess capacity to handle this special order. The shopping mall has offered to pay $120 for each tree.
Variable costs:
Direct materials $50.00
Direct labor (variable) $3.50
Variable manufacturing overhead $1.00
Additional variable cost= $6
This special order would require an investment of $10,000 for the molds required for the extra-large trees.
Because it is a special offer and there is unused capacity, we will not have into account the fixed costs (except the incremental fixed cost).
Unitary variable cost= 50 + 3.5 + 1 + 6= $60.5
Fixed costs= 10,000
Incremental income= (200*120) - (200*60.5) - 10,000= $1,900
It is profitable to accept the special offer.
Answers
Answer: It is Voidable
Explanation:
Samuel took advantage of his fiduciary responsibility is taking care of Juan to unfairly influence him to sell him a piece of land at a price 35% below market price. Juan as an old man who is TOTALLY dependant on Samuel, felt he had no choice but to agree as failure to do so will lead to Samuel no longer taking care of him and this could be quite disadvantageous to him.
There was UNDUE INFLUENCE and Coercion in this scenario which means Voluntary consent was lacking.
For this reason, the contract can be voided.
Answers
Answer:
The percent change in labor productivity is 22%
Explanation:
Listing out the parameters given:
labor productivity (2009) = 3.33 units/hr,
labor productivity (2010) = 4.27 units/hr
To calculate the percent change in labor productivity, we have it thu:
percent change in labor productivity = [labor productivity (2010) - labor productivity (2009)] ÷ labor productivity (2010)
Let's assume 'Labor productivity' = LP
%Δ in LP = * 100% =
* 100%
%Δ in LP = * 100% = 22%
%Δ in LP = 22%
This shows an increase in computer manufacturing from 2009 to 2010 by 22%
Answer:
percentage change in labor productivity = 28.23%
Explanation:
In 2009 the computer manufacturer had a labor productivity of 3.33 units per labor hour. In 2010 the productivity increased to 4.27 units per labor hour.
The percentage change in labor productivity can be calculated as
change in labor productivity = New labor productivity - Old labor productivity
percentage change in labor productivity = change in labor productivity/old labor productivity × 100
Old labor productivity = 3.33 unit
New labor productivity = 4.27 unit
change in labor productivity = 4.27 - 3.33 = 0.94
percentage change in labor productivity = 0.94/3.33 × 100
percentage change in labor productivity = 94/3.33
percentage change in labor productivity = 28.2282282282
percentage change in labor productivity = 28.23%
Mar. 9 Paid the amount owed on the invoice within the discount period.
Mar. 11 Discovered that $18,000 of the merchandise purchased on March 1 was defective and returned items, receiving credit for $17,640 [$18,000 − ($18,000 × 2%)].
Mar. 18 Purchased $10,000 of merchandise from Wright Co. on account, terms n/30.
Mar. 20 Received a refund from Wright Co. for return on Mar. 11 less the purchase on Mar. 18.
Answers
Answer:
See explanation section.
Explanation:
March 1, Purchased Debit $90,000
Accounts payable Credit $90,000
Note: To record the purchased on account.
March 9, Accounts payable Debit $90,000
Cash Credit $88,200
Purchased discount Credit $1,800
Calculation: $90,000 - ($90,000 × 2%) = $88,200
Note: To record the payment.
March 11, No journal entry required.
March 18, Purchased Debit $10,000
Accounts payable Credit $10,000
Note: To record the purchased on account.
March 20, Cash Debit $17,640
Refunds payable Credit $17,640
Note: To record the return.
Final answer:
The journal entries are indicated for each transaction during March, highlighting purchases on account, payment within discount period, return of defective goods, a second purchase, and a refund received. The entries show how these transactions are reflected in the accounting system of Manville Heating & Air Company.
Explanation:
The journal entries for the transactions of Manville Heating & Air Company in the month of March are as follows:
- Mar. 1: Debit Inventory $90,000, Credit Accounts Payable $90,000 (Purchase on account)
- Mar. 9: Debit Accounts Payable $90,000, Credit Cash $88,200, Credit Purchase Discounts $1,800 (Payment within discount period)
- Mar. 11: Debit Accounts Payable $18,000, Credit Inventory $17,640, Credit Purchase Discounts $360 (Return of defective merchandise)
- Mar. 18: Debit Inventory $10,000, Credit Accounts Payable $10,000 (Additional purchase on account)
- Mar. 20: Debit Accounts Payable $17,640, Credit Cash $17,640 (Refund received for defective merchandise, less second purchase)
The above journal entries demonstrate the recording of purchasing transactions and returns, considering the discount period and the eventual refund received.
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