Answer:
In forecasting accounts payable, one of the relevant questions is:
What is the cash conversion cycle?
Explanation:
The variables used in computing the cash conversion cycle include accounts receivable days, inventory turnover days, and accounts payable days. Specifically, cash conversion cycle (CCC) is the period in days that it takes the firm to convert cash into inventory, then into sales, and finally back into cash. To gain a good understanding of accounts payable, one should always consider the major inclusive metric.
An investor sells short 200 shares of ABC stock at $5.25 a share. He sells two put contracts (100 shares each) with a striking price of S5 and a premium of S0.50 a share. Assume interest r-0% annual effective. (a) Draw a time diagram for the short sale, and the sold put. (b) What is the investor's profit if the spot price is below $5 at expiration? (c) The investor will be making profit as long as the spot price is less than what value at expiration?
Answer:
The solution of the given query is provided below in the explanation segment.
Explanation:
(a)
The diagram according to the given query is attached below.
(b)
Given:
Investor sells,
= 200 shares
at,
= $5.25
Strike price,
= $5
Premium,
= $0.50
If the price is less than $5 is $.75 per share,
The investor's gain will be:
= [tex]200\times 0.75[/tex]
= [tex]150[/tex] ($)
(c)
The investor would earn under $5.25 upon expiry, as longer as the spot price becomes less.
Mitchell waited until July 5, 2019, to file his 2018 Form 1040 return. He did request an extension and paid 90% of the anticipated balance due on April 15, 2019. His remaining balance due on his 2018 return is $88. What is his failure to file penalty
Answer:
The answer is "$0".
Explanation:
Following are the Tax code of the IRS, taxpayers high school ask that their return on their tax return be extended on a deadline but must thus pay at least 90% of all tax owed, so how they can suffer the nonpayment penalty.
All remainder of the taxes being paid should be paid by the additional due date set by the taxpayer. Companies will have to pay the tax interest just after the due date if they do not pay.
For this reason, M requires timely prolongation and pays 90% of the remainder by the due date. Therefore, 'M' won't be obliged to pay any taxman's failure-to-pay penalty. Therefore, M fails to file $0.
the definition of entrepreneurship holds the promised of
Answer:
Entrepreneurship is the pursuit of opportunity beyond resources controlled. ... Merriam-Webster gives a definition that's closer to what most of us would probably offer the English learner: an entrepreneur is “a person who starts a business and is willing to risk loss in order to make money."
Explanation:
I hope it helped❤hey buddy can u do a favor to meif u don't mind ......plz subscribe to my UTube channel - gtron9528Discuss the six HRM practices from which companies can choose for implementing their strategy. Illustrate by specific examples.
Answer:
Six practices of HRM are as :
Training and development.Recruitment and onboarding. Employee relations. Compensation and benefits. Risk management.Corporate policy.Explanation:
Recruitment and on boarding is the first strategy where the candidates are sourced and hired. Its is done to find the best talent for the job. Followed b the training and development to provide different approaches to candidates such as sexual harassment and cyber training. Compensation and benefits such as rocks of losing good talents and keeps the finger on the pulse of industry. Corporate policy done for internal communication's. Employee relation helps the workers deal with the situations.Gerald is confused as to why his 26-year-old daughter is changing jobs for the third time since graduating from college five years ago. His daughter tells him that she has learned everything she can from her current job and that she wants to explore other jobs. She also tells him that she wants a job that pays more and provides better benefits than her current job. In the context of typical career phases, Gerald's daughter is in the stage of her career where most people's needs and concerns are:________.
a. to deal with lifestyle preferences and limitations
b. to identify interests and acquire capabilities
c. to achieve personal integrity and incorporate their values into their work life
d. to establish a political power base within their organization
Answer: b. to identify interests and acquire capabilities
Explanation:
Gerald's daughter is young and still trying to find out what will interest her so that she can stick to it. She is still shopping for the right job in other words.
She will therefore keep switching jobs so that she can identify what interests her as well as acquire new skills and capabilities from these jobs so that she when she finally settles, she will have the requisite skills to keep up with the demands of her job.
Josie wants to invest in the stock market but is afraid of losing more money than what she invests. Josie need not worry because of:________a. limited liability for investors.b. transferability of investor ownership.c. legal personality.d. separation of legal ownership and management control.
Answer: a. limited liability for investors.
Explanation:
Companies with shares on the stock market are public limited companies. Their limited nature mean that an investor's losses are limited to the amount that they invest in the company and nothing more.
If Josie invests $1,000 into the stock of a company and the company decides to engage in unethical business practices which causes its stock price to plummet to almost zero, the only money that Josie will lose is the $1,000 that she invested.
Maizie files a suit against NuProducts, Inc. NuProducts responds that even if Maizie's statement of the facts is true, according to the law NuProducts is not liable. This is 1. a motion for summary judgment. 2. a motion for judgment on the pleadings. 3. a motion to dismiss. 4. a counterclaim.
Answer: 3. a motion to dismiss.
Explanation:
When a party believes that a case has no legal basis, in other words the party does not believe that what they did warrants a court case, they would file a motion to dismiss so as not to waste resources fighting something they see as frivolous.
In this case, NuProducts is essentially filing a motion to dismiss when they say that they did nothing wrong according to the law. They would prefer if the courts simply dismissed the case so that they would not incur costs to fight the case.
Specter Consulting purchased $8,900 of supplies and paid cash immediately. What general journal entries will Specter Consulting make to record this transaction? Assume the companyâs policy is to initially record prepaid and unearned items in balance sheet accounts?
Answer:
Debit Supplies $8,900; Credit Cash $8,900
Explanation:
Based on the information given the general journal entries that Specter Consulting will make to record this transaction assuming the companyâs policy is to initially record prepaid and unearned items in balance sheet accounts will be :
Debit Supplies $8,900
Credit Cash $8,900
Cleghorn Corporation produces and sells a single product. Data concerning that product appear below: Selling price per unit $160.00 Variable expense per unit $70.40 Fixed expense per month $153,216 Required:Determine the monthly break-even in total dollar sales.
Answer:
$273,600
Explanation:
The selling price per unit is $160
Variable expense per unit is $70.40
Fixed expense per month is 153,216
Therefore the monthly breaking can be calculated as follows
CM ratio = 56%
=>56/100
= 0.56
= 153,216/0.56
= 273,600
Hence the monthly break even in monthly dollars sales is $273,600
Assume that you have been asked to paint the inside walls of an apartment. State specifically how you would estimate the cost of that job. Include payment for your own labor. What are some of the allocation bases you considered?
To estimate the ultimate cost, measure the size of the wall, calculate the amount of paint that will be needed, and add the cost of the materials and the laborers' daily wages.
What is the estimated cost?The cost that will be incurred to create a product or construct something is projected as an estimated cost. This sum is determined either as part of a sales bid when attempting to sell to a customer or as part of the capital budgeting process for an internal project. In accordance with the provisions of a fixed-price contract, the party providing the anticipated cost may be required to pay the sum projected.
Predicting the quantities, cost, and value of the resources needed to execute a task within the project's scope is the goal of cost estimating. Cost estimates are used to influence your task and budget planning process as well as to submit bids for new business from potential clients.
Learn more about the estimated cost, from:
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Fuente, Inc., has identified an investment project with the following cash flows.
Year Cash Flow
1 $ 1,040
2 1,270
3 1,490
4 2,230
a.
If the discount rate is 9 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
b. If the discount rate is 12 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
c. If the discount rate is 23 percent, what is the future value of these cash flows in Year 4? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
a. $6709.81
b. $6953.02
c. $7919.39
Explanation:
To determine the future value of the cash flows, the first step is to determine the present value of the cash flows
Present value is the sum of discounted cash flows
Present value can be calculated using a financial calculator
Cash flow in year 1 = 1,040
Cash flow in year 2 = 1,270
Cash flow in year 3 = 1,490
Cash flow in year 4 = 2,230
PV when interest rate is 9% = 4753.40
PV when interest rate is 12% = 4418.77
PV when interest rate is 23% = 3459.96
To find the PV using a financial calculator:
1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.
2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.
3. Press compute
The formula for calculating future value:
FV = P (1 + r)^nm
FV = Future value
P = Present value
R = interest rate
m = number of compounding
N = number of years
1. 4753.40 x (1.09^4) = $6709.81
2. 4418.77 x (1.12^4) = $6953.02
3. 3459.96 x x (1.23^4) = $7919.39
Your executive team is working on the new vision statement for the company. You notice some people keep confusing the vision statement with a mission statement. You explain that the vision is the _____ and the mission is the _____ for the company g
Group of answer choices.
A. what & how; why.
B. why; who & what.
C. how; what & why.
D. what; how & why.
E. why; what & how.
Answer:
D. what; how & why.
Explanation:
In Business management, a strategy can be defined as a set of guiding principles, actions and decisions that an organization combines so as to achieve its business goals, attract customers and possess a competitive advantage over its rivals in the industry.
Business strategy sets the overall direction for the business because it focuses on defining how a business would achieve its goals, objectives, and mission; as well as the funds and material resources required to implement or execute the business plan. The components of a business strategy includes the following;
I. Value.
II. Vision.
III. Mission.
Vision is an ideal future conditions that aligns with the purpose for which an organization or business is in operation. Thus, it's a path that guides an organization into achieving a certain height in the future.
Basically, a vision statement answers the question of what an organization would want to be, by combining its current and future objectives.
On the other hand, a mission statement is typically a description of the overall goal or purpose for which an organization was established and what it hopes to achieve in the future.
In conclusion, you should explain that the vision is the what and the mission is the how and why for the company.
You are the manager of a firm that receives revenues of $20,000 per year from product X and $100,000 per year from product Y. The own price elasticity of demand for product X is −2, and the cross-price elasticity of demand between product Y and X is −1.6.
Required:
How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent?
Answer:
$3,600
Explanation:
Calculation to determine How much will your firm's total revenues change if you increase the price of good X by 2 percent?
Using this formula
Change in Revenue = [PxQx * (1 + Ex) + PyQy * (Ey)] * % change in P
Let plug in the formula
Change in Revenue= [$20,000*(1-2) +$100,000*(1.6)] * 2%
Change in Revenue= [$20,000*(-1) + $100,000*(-1.6)] * 2%
Change in Revenue= [-$20,000 + (-$160,000)] * 2%
Change in Revenue= $180,000*2%
Change in Revenue=$3,600
Therefore how much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 2 percent will be $3,600
A wood products company has decided to purchase new logging equipment for $104,000. The new equipment will be kept for 12 years before being sold for an estimated SV of $3,000. Using MACRS depreciation (7 year recovery period), the depreciation charge permissible at year 6 is equal to?
Answer: $9,276.80
Explanation:
The Modified Accelerated Cost Recovery System (MACRS) is a depreciation method used by the United States for depreciation of fixed assets for tax purposes. There are different recovery period term types and the 7 year recovery period is attached here.
The depreciation charge for year 6 is: 8.92%
Depreciation charge is therefore:
= 104,000 * 8.92%
= $9,276.80
A vertical aggregate supply curve, where the quantity of output is consistent with many different price levels, also implies: ________.
A. an upward sloping Phillips curve.
B. a downward sloping aggregate demand curve.
C. a vertical aggregate demand curve.
D. a vertical Phillips curve.
Answer:
D. a vertical Phillips curve.
Explanation:
As we know that the aggregate demand does not impact the production quantity. In the case when the total supply is in vertical so the total demand does not impact the quantity of an output
Also aggregate demand may result in change in the price level for inflation
So as per the given situation, the option d is correct
Hence, the same is to be considered
After the accounts have been adjusted at November 30, the end of the fiscal year, the following balances were taken from the ledger of Diamond Landscaping Co.: Retained Earnings $2,550,000 Dividends 25,000 Fees Earned 1,150,000 Wages Expense 613,750 Rent Expense 120,000 Supplies Expense 9,150 Miscellaneous Expense 11,000 Journalize the two entries required to close the accounts.
Answer:
Nov-30
Dr Fees Earned $1,150,000
Cr Wages Expenses $613,750
Cr Rent Expenses $120,000
Cr Supplies expense $9,150
Cr Miscellaneous expenses $11,000
Cr Retained earnings $396,100
Nov-30
Dr Retained Earnings $25,000
Cr Dividends $25,000
Explanation:
Preparation of the two journal entries required to close the accounts.
Nov-30
Dr Fees Earned $1,150,000
Cr Wages Expenses $613,750
Cr Rent Expenses $120,000
Cr Supplies expense $9,150
Cr Miscellaneous expenses $11,000
Cr Retained earnings $396,100
[1150000-613750-120000-9150-11000]
(To close revenues and expenses)
Nov-30
Dr Retained Earnings $25,000
Cr Dividends $25,000
(To close Dividend)
Compensation in the United States is governed by a number of laws that set boundaries for what companies can do. The rules governing equal employment opportunity and the Fair Labor Standards Act (FLSA). In the United States, it is illegal to discriminate on the basis of race, sex, or other protected categories in employment practices, including pay. The 1938 FLSA established the minimum wage, requirements for overtime regulations, and employment of minors.The FLSA establishes periodic minimum wages, of which the latest federal minimum wage is $7.25 per hour as of October 2016, although some exceptions apply for training wages and adherence to state minimum-wage laws. The FLSA also establishes overtime pay for wage earners working over 40 hours per week with detailed computation that includes bonuses and piece-rate payments. These employees are considered nonexempt workers because they are covered under FLSA requirements for overtime pay. Those employees who are not covered are considered exempt employees, usually paid salaries, who are in the executive and other professional white-collar jobs. FLSA rules also govern employment of child labor, outlining details from ages under 14 through 18. Finally, two additional federal laws, the Davis-Bacon Act of 1931 and the Walsh-Healy Public Contracts Act of 1936, govern pay policies of federal contractors.Roll over each iterm to read a specific scenario and drag the items into the appropriate column that best describes them. There are four statements for each category. A. Living wageB. Computer professionals C. Fast-food employee D. Hourly basis E. Salary basis F. Supervisors G. Off the clock H. Higher rates I. Time J. Full-time K. Corporate1. Non-exempt2. Exempt3. Minimum Wage
Answer:
I don't know otherwise please marks me as brainliests..MC Qu. 91 Raven Company has a target of earning... Raven Company has a target of earning $70,100 pre-tax income. The contribution margin ratio is 32%. What amount of dollar sales must be achieved to reach the goal if fixed costs are $36,200
Answer:
The amount of dollar sales must be achieved to reach the goal is $331,875.
Explanation:
This can be calculated using the following formula:
Amount of dollar sales required = (Targeted pre-tax income + Fixed costs) / Contribution margin ratio ……..(1)
Where:
Amount of dollar sales required = ?
Targeted pre-tax income = $70,000
Fixed costs = $36,200
Contribution margin ratio = 32%, or 0.32
Substituting all the values into equation (1), we have:
Amount of dollar sales required = ($70,000 + $36,200) / 0.32 = $106,200 / 0.32 = $331,875
Thereforee, the amount of dollar sales must be achieved to reach the goal is $331,875.
George wants to retire at 65 with $1,000,000 in savings. He plans to deposit a lump sum on his birthday each year. How much will he need to invest each year if he starts saving at 25
Answer:
Annual saving = 6460
Explanation:
Below is the calculations:
Future value of amount = $1000000
He starts saving at 25 years, then the Years of saving = 40.
Let the interest earned on the saving account = 6%
Thus annual saving = 1000000(F/A, 6%, 40)
Annual saving = 1000000(0.00646)
Annual saving = 6460
Therefore the annual saving will be 6460 dollars.
The April 30 bank statement for Trimble Corporation shows an ending balance of $40,921. The unadjusted cash account balance was $34,350. The accountant for Trimble gathered the following information: There was a deposit in transit for $5,480. The bank statement reports a service charge of $189. A credit memo included in the bank statement shows interest earned of $895. Outstanding checks totaled $14,115. The bank statement included a $2,770 NSF check deposited in April. What is the true cash balance as of April 30
Answer: $32,286
Explanation:
To adjust the cash balance, it is faster to use the bank statement balance and then adjust that for the deposits in transit and the outstanding checks.
True cash balance = Bank statement balance + Deposits in transit - Outstanding checks
= 40,921 + 5,480 - 14,115
= $32,286
Jeong Company began operations on January 1, 2020, and uses the Average Cost method in costing its raw material inventory. Management is contemplating a change to the FIFO method and is interested in determining what effect such a change will have on net income. Accordingly, the following information has been developed:
Final Inventory 2017 2018
FIFO $630000 $635000
LIFO 510000 600000
Net Income (computed under the FIFO method) 910000 1260000
Based on the above information, a change to the LIFO method in 2018 would result in net income for 2018 of:___________
Answer: $1,225,000
Explanation:
LIFO means that when inventory is sold, only the most recent inventory is sold as opposed to FIFO where the earliest inventory is sold before the recent ones.
With FIFO, net income is usually higher because prices generally increase so LIFO will have a higher Cost of Goods sold.
Net income under LIFO = Net income under FIFO - Difference between FIFO and LIFO for the year
= 1,260,000 - (635,000 - 600,000)
= 1,260,000 - 35,000
= $1,225,000
Binder Corp. has invested in new machinery at a cost of $1,450,000. This investment is expected to produce cash flows of $640,000, $715,250, $823,330, and $907,125 over the next four years. What is the payback period for this project
Answer:
2.12 years
Explanation:
The calculation of the payback period is given below:
Year CF Cumulative CF
0 $(1,450,000) $(1,450,000)
1 640,000 (810,000)
2 715,250 (94,750)
3 823,330 728,580
4 907,125 1,635,705
Now payback period is
= 2 + ($94,750 ÷$823,330)
= 2.12 years
Securitas Financial Services is contemplating purchasing and installing a new, expensive computer network. This is the type of expenditure that would be included in a(n) __________ budget. Multiple Choice capital cash operating asset
Answer:
capital budget.
Explanation:
From the question we are informed about scenerio whereby Securitas Financial Services is contemplating purchasing and installing a new, expensive computer network. This is the type of expenditure that would be included in capital budget.
Capital budgeting can be regarded as process that is been taken by a business in order to carry out evaluation of potential major projects or potential investments. An instance of this project whereby capital budgeting would be required before approval or rejection is Construction of a new plant, another one is carrying out big investment outside the venture.
Two countries produce coffee and blueberries. Nicaragua can produce either 25 thousand pounds of coffee or 100 thousand pounds of blueberries per year. Colombia can produce either 20 thousand pounds of coffee or 40 thousand pounds of blueberries per year.
Initially the two countries do not trade. Nicaragua produces 7 thousand pounds of coffee and 72 thousand pounds of blueberries. Colombia produces 7 thousand pounds of coffee and 26 thousand pounds of blueberries. Suppose the countries completely specialize and decide to trade 9 thousand pounds of coffee for 27 thousand pounds of blueberries.
Suppose the countries completely specialize and decide to trade 9 thousand pounds of coffee for 27 thousand pounds of blueberries. After trade, Nicaragua can consume _____________ thousand more pounds of coffee and ____________ thousand more pounds of blueberries. After trade, Colombia can consume_____________ thousand more pounds of coffee and thous and _______________more pounds of blueberries in comparison to the pre- trade consumption.
Answer:
Columbia has more than 4 coffee & 1 more berry.
2) Nicaragua has more than 2 coffee & (100-27)= 73 berry, so 1 more berry.
Explanation:
Coffee Berry
Columbia 20 40
Nicaragua 25 100
So Columbia has Comparative ADVANTAGE in Coffee,
So it specializes in Coffee, & Nicaragua specializes in Berry
Initial consumption levels:
In Columbia ( Coffee, Berry)= (7,26)
In Nicaragua, (7,72)
so if Columbia trades 9 Coffee for 27 Berry
it can have (20-9) = 11 coffee, with 27 Berry
1) Columbia has more than 4 coffee & 1 more berry.
2) Nicaragua has more than 2 coffee & (100-27)= 73 berries, so 1 more berry.
Consider the P/E ratios of the following companies: Company A: 7.4 Company B: 11.3 Company C: 14.8 Company D: 9.1 Among these four companies, Company C has the __________. highest relative value highest dollar price lowest relative value lowest net income
Answer:
highest relative value highest dollar
Explanation:
The price to earning ratio is a financial metric used to value a company. it compares the price of a stock to the earnings of the stock. the higher the metric is, the higher the valuation of the firm
price to earning ratio (P / E) = market value per share / earnings
The higher the P/E, the higher the relative value of the firm relative to other firms. This is because investors are confident about the prospects of growth of the firm and are willing to pay a higher price for the stock of the company
Types of P/E ratio
1. trailing p/e - it is calculated by dividing current share price by the earnings per share for the past 12 months
2. forward p/e - it is calculated by dividing current share price by the estimated per share earnings for the next 12 months
When high-tech start-up Minx first hit the technology scene, it created a big splash. Its music streaming and voice control technology promised to revolutionize the field. It attracted $500,000 in seed money, suggesting that it could hire the best talent and create amazing new products. But Minx quickly fell off the fast track. It spent nearly $400,000 on a Bluetooth product that sold only 28 units. In addition, a botched security update resulted in the company's having to conduct a nationwide recall of one of its smart products. Yet, other products have been successful, and the company is not facing bankruptcy. Initially, Minx offered amazing perks to attract the best and brightest talent. It provided an in-house chef with free gourmet meals, unlimited snacks, on-site acupuncture, and free yoga classes. Its offices were pet-friendly, and new employees received a $10,000 cash signing bonus. To counter the long hours that the tech world notoriously demands of its workers, Minx offered relaxation areas with table tennis and foosball tables. Unfortunately, bad times have made it necessary for Minx to pull back on its employee perks. Although no staff people are being released, the in-house chef has to go, along with on-site acupuncture, yoga classes, and the $10,000 signing bonus. However, it's still a good place to work, and camaraderie is high.
Required:
As a communications trainee in the CEO's office, you have been asked to draft an intranet post or a memo to employees announcing the bad news. Explain the cutbacks that affect current employees. Employ the bad-news techniques taught in this chapter. What could soften this bad news?
Answer:
The responses can be defined as follows:
Explanation:
Whenever we enter an organization, we engage but we see that now the organization and ourselves have shared objectives. You operate as a team, create market value and affect the behavior of those you call customers. This is Minx's aim since day 1, and so far nothing had changed. Irrespective of the problems we face, we will prevail together again and escape from difficult situations.
That is why I send this note to inform you and in these tough economic times, we are reducing some facility's all-around idea of creating a more stable and sustainable atmosphere. In the following few months, we will eliminate some amenities including chefs, in-house acupuncturists, yoga sessions, and a prize fee of $10,000. Notwithstanding the difficulty, we would not implement personnel-related actions, such as redundancies and a decrease of employees.
Despite the reduction, I think that we will recover which is merely a temporary solution to tackle the financial storm. Your high-performing culture, comradeship, mutual care, team chemistry should dominate since we have done in the past. We didn't convey my appreciation for having people like you in our team and from this difficult period, we'll only gain strength. We looking forward more to your contributions and thoughts.
Department S had no work in process at the beginning of the period. It added 12,000 units of direct materials during the period at a cost of $96,000. During the period, 9,000 units were completed, and 3,000 units were 30% completed as to labor and overhead at the end of the period. All materials are added at the beginning of the process. Direct labor was $53,460, and factory overhead was $13,860. The total cost of units completed during the period was a.$72,000 b.$120,600 c.$133,200 d.$159,840
Answer:
$163,320
Explanation:
The computation of the total cost of units completed is shown below:
The conversion cost is
= Direct labor + factory overhead
= $53,460 + $13,860
= $67,320
Now the total cost of unit completed is
= Direct material + conversion cost
= $96,000 + $67,320
= $163,320
This is the answer but the same is not provided in the given options
Pharoah Company purchased machinery on January 1 at a list price of $270000, with credit terms 2/10, n/30. Payment was made within the discount period. Pharoah paid $79750 sales tax on the machinery and paid installation charges of $4800. Prior to installation, Pharoah paid $10900 to pour a concrete slab on which to place the machinery. What is the total cost of the new machinery
Answer: $360,050
Explanation:
The total cost of a fixed asset refers to all the cash that was paid to acquire the asset, transport it and then install it.
Cost of the new machinery is therefore = Discounted cost price + Sales tax + Installation charges + Concrete slab
= (270,000 * (1 - 2%)) + 79,750 + 4,800 + 10,900
= 264,600 + 79,750 + 4,800 + 10,900
= $360,050
Cost price was discounted by 2% as per the credit terms of 2/10 which means that there is a discount of 2% if the asset is paid for in 10 days.
Claremont Company sells refurbished copiers. During the month, the company sold 180 copiers for total sales of $540,000. The budget for the month was to sell 175 copiers at an average price of $3,200. The sales price variance for the month was
Sheridan Company Ltd. publishes a monthly sports magazine, Fishing Preview. Subscriptions to the magazine cost $28 per year. During November 2022, Sheridan sells 10,500 subscriptions for cash, beginning with the December issue. Sheridan prepares financial statements quarterly and recognizes subscription revenue at the end of the quarter. The company uses the accounts Unearned Subscription Revenue and Subscription Revenue. The company has a December 31 year-end.
Required:
Prepare the entry in November for the receipt of the subscriptions.
Answer and Explanation:
The journal entry to record the receipt of the subscription is as follows:
Cash ($28 × 10,500) $294,000
To Unearned Subscription Revenue $294,000
(being the receipt of the subscription is recorded)
Here the cash is debited as it increased the assets and credited the unearned subscription revenue as it also increased the revenue
