BUSINESS COLLEGE

The Orange Lily Law Firm prepays for advertising in the local newspaper. On January 1, Orange Lily paid $3,600 for six months of advertising. How much advertising expense should Orange Lily Law Firm record for the two months ending February 28 under the a. cash basis? b. accrual basis?

Answers

Answer 1

Answer:

Answer:

a. Cash basis - amount is $3,600

b. Accrual basis - amount is $1,200

Explanation:

Under the cash basis, the amount which will be recorded is as:

In cash basis, it is the method or way of recording the accounting transactions for the revenue and the expenses only when the cash (corresponding) is received or when the payments are made.

So, in this $3,600 is paid, the full amount will be recorded.

Under Accrual basis, the amount which will be recorded as:

In Accrual basis, it is the method or way of recording the accounting transactions for the revenue when it is earned and the expenses is recorded when it is incurred.

So, in this the expense to be recorded for 2 months, it is computed as:

For per month = $3,600 / 6

= $600 per month

For 2 months, it is:

= $600 × 2

= $1,200

Therefore, the amount is $1,200 for 2 months.

Related Questions

Vaughn Manufacturing borrowed $399000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized for the period from April 1 to December 31?
The Model E extender fits with the 2 inch heavy duty hitches.The contract calls for 247 Model E extenders per week to be delivered in equal installments over the 16 weeks of the contract. The goal of Alpha Assemblies is to work 40 hours per week. The actual work time for completing the Model E extenders has been broken down by process in the table below. Also provided is the anticipated learning rate for each process. All processes must be performed in sequence and each step has its own separate and unique workcenter. To achieve the goal of working 40 hours per week or less, the cycle time must be lower than the takt time. What is the expected Cycle Time for Model E in Week 16? Note: learning is applied to the batch quantity per week. Do not try to break out the units within a week.Process Time Required per Unit Predecessor Task Learning RateA 9 82B 12 A 86C 18 B 81D 9 C 90E 12 D 80F 17 E 88G 14 F 83H 12 G 85I 8 H 82
What are the products of an effectively performed job analysis?
Northwest Hospital is a full-service hospital that provides everything from major surgery and emergency room care to outpatient clinics. Required: For each of the following costs incurred at Northwest Hospital, indicate whether it would most likely be a direct cost or an indirect cost of the specified cost object by listing the number and a "D" for direct or an "I" for indirect. For example: 1D, 2D, etc.a. The wages of pediatric nurses / The pediatric departmentb. Prescription drugs / A particular patientc. Heating the hospital / The pediatric patientd. The salary of the head of pediatrics / The pediatric patiente. The salary of the head of pediatrics / The particular pediatric patientf. Hospital chaplain's salary / A particular patientg. Lab tests by outside contractor / A particular patienth. Lab tests by outside contractor / A particular department
In January, Knox Company requisitions raw materials for production as follows: Job 1 $936, Job 2 $1,690, Job 3 $767, and general factory use $667.Prepare a summary journal entry to record raw materials used:DEBIT CREDITWork in Process InventoryJan 31. Manufacturing OverheadRaw Materials Inventory

Sunland Company uses the FIFO method for internal reporting purposes and LIFO for external reporting purposes. The balance in the LIFO Reserve account at the end of 2020 was $277000. The balance in the same account at the end of 2021 is $419000. Sunland’s Cost of Goods Sold account has a balance of $2110000 from sales transactions recorded during the year. What amount should Sunland report as Cost of Goods Sold in the 2021 income statement?

Answers

Answer:

$2,252,000

Explanation:

Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement

Using this formula

2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)

Let Plug in the formula

2021 income statement Cost of Goods Sold =$2110000+($419000-$277000)

2021 income statement Cost of Goods Sold =$2110000+$142,000

2021 income statement Cost of Goods Sold =$2,252,000

Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is $2,252,000

Calculate the present value of the following: a-1. Annual payment of $800 for 10 years at 5% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a-2. Annual payment of $600 for 15 years at 5% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.) a-3. Which option would you prefer? b-1. Annual payment of $800 for 10 years at 20% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b-2. Annual payment of $600 for 15 years at 20% interest. (Do not round intermediate calculations. Round your answer to 2 decimal places.) b-3. Which option would you prefer?

Answers

Answer:

a-1 Present value = 6,177.39

a2- Present Value =6,227.79

a3- Choose the payment stream with the highest present value = a2

b1- Present Value=3,353.98

b2-Present Value=2,805.28

b3-Choose the payment stream with the highest present value = b1

Explanation:

a-1 describes an ordinary annuity whose present value is calculated as follows:

$Present value =PMT*([1-(1+i)^-^n])/(i)$

where PMT=$800; i= 5%, n= 10

$Present value =800*([1-(1+0.05)^-^1^0])/(0.05)$ = 6,177.39

a2- $Present value =600*([1-(1+0.05)^-^1^5])/(0.05)$ = 6,227.79

a3- If I were receiving these payments annually, I would prefer the payment stream with the highest present value ie a2 -Annual payment of $600 for 15 years at 5% interest.

b1- $Present value =800*([1-(1+0.20)^-^1^0])/(0.20)$ = 3,353.98

b2- $Present value =600*([1-(1+0.20)^-^1^5])/(0.20)$ =2,805.28

b3- f I were receiving these payments annually, I would prefer the payment stream with the highest present value ie b1- Annual payment of $800 for 10 years at 20% interest.

The distribution of the amount of money spent by students for textbooks in a semester is approximately normal in shape with a mean of $235 and a standard deviation of $20. According to the standard deviation rule, how much did almost all (99.7%) of the students spend on textbooks in a semester?

Answers

Answer: $295

Explanation:

Given that,

Amount spent by the students is normal in shape

Mean = $235

Standard deviation = $20

99.7% is within 3 standard deviations of the mean:

= Mean + 3 × Standard deviation

= $235 + 3 × $20

= $235 + $60

= $295

The amount of $295 is spent by all the students on textbooks.

A man works for a marketing firm that has just landed a contract with Run-of-the-Mills to help them promote three of their products: splishy splashies, frizzles, and kipples. All of these products have been on the market for some time, but, to entice better sales, Run-of-the-Mills wants to try a new advertisement that will market two of the products that consumers will likely consume together. As a former economics student, a man knows that complements are typically consumed together while substitutes can take the place of other goods.Run-of-the-Mills provides man's marketing firm with the following data: When the price of splishy splashies decreases by 5%, the quantity of frizzles sold increases by 4% and the quantity of kipples sold decreases by 6%. A man's job is to use the cross-price elasticity between splishy splashies and the other goods to determine which goods to a man marketing firm should advertise together.
Complete the first column of the following table by computing the cross-price elasticity between splishy splashies and frizzles, and then between splishy splashies and kipples. In the second column, determine if splishy splashies are a complement to or a substitute for each of the goods listed. Finally, complete the final column by indicating should be recommended marketing with splishy splashies.Relative to Splishy Splashies Recommend Marketing with Splishy Splashies
Cross-Price Elasticity of Demand Complement or Substitute
Frizzles _____ _____ _____
Kipples _____ _____ _____

Answers

Answer and Explanation:

According to the given situation, when the amount of splishy splashies decrease by 5%, quantity of frizzles increases by 4%.

So, The cross price elasticity of frizzles relative to splishy splashies = Percentage change in quantity demand for frizzles ÷ Percentage change in price for splishy splashies

= 4 ÷ -5

= -0.80

Now,

Cross-price elasticity between splishy splashies and kipples = Percentage change in quantity demand for Kipples ÷ Percentage change in price for splishy splashies

= -6% ÷ -5%

= 1.20

b. Since there is negative cross-price elasticity between splishy splashies and frizzles, these products are complementary.

The elasticity of the cross-price between splendid splashies and kipples is positive, these goods being substitutes.

c. Here, I would therefore recommend Raskels marketing, since these two are used together.

The required Table are as shown below:-

Particulars Cross-Price Elasticity Complements Recommended

of Demand or Substitute Marketing with

splishy splashies

Frizzles 0.80 Complements Yes

Kipples 1.20 Substitute No

Avon was known as the company that sold cosmetics door-to-door for a long time. In order to grow and reach new markets it began to sell jewelry through its door-to-door sales force. This involved marketing new products through existing channels of distribution. It also is now selling its products by mail order and has opened retail stores. Avon is an example of a company effectively using which strategy? A. product development strategy
B. diversification strategy
C. market penetration strategy

Answers

the answe is deffffffffff a

Final answer:

Avon is effectively using the diversification strategy by expanding its product offerings and distribution channels.

Explanation:

Avon is an example of a company effectively using the diversification strategy. Diversification involves entering new markets or offering new products to reach a broader range of customers. Avon expanded its product offerings from cosmetics to jewelry and adopted various distribution channels such as door-to-door sales, mail order, and retail stores to reach different customer segments.

Learn more about Diversification strategy here:

brainly.com/question/33565595

#SPJ2

Crane uses the periodic inventory system. For the current month, the beginning inventory consisted of 7400 units that cost $11.00 each. During the month, the company made two purchases: 3100 units at $12.00 each and 12200 units at $12.50 each. Crane also sold 12700 units during the month. Using the average cost method, what is the amount of cost of goods sold for the month

Answers

Answer:

$151,673

Explanation:

Average cost method calculate the cost of the inventory on the average price basis. Cost of goods sold is the cost of the goods sold in the given period.

Description Units Rate Value

Beginning Inventory 7,400 $11.00 $81,400

Purchases 3,100 $12.00 $37,200

Purchases 12,200 $12.50 $152,500

Total Inventory 22,700 $11.94273128 $271,100

Sale 12,700 $11.94273128 $151,673

Cost of Goods Sold = $271,100 x 12,700 / 22,700 = $151,673

Other Questions

Andy is talking to his friend Bruce, who has an interest in Arlington, LLC, about purchasing his LLC interest. Bruce’s outside basis in Arlington, LLC is $21,000. This includes his $5,000 one-fourth share of the LLC’s debt. Bruce’s 704(b) capital account is $25,000. If Andy bought Bruce’s LLC interest for $18,000, what would Andy’s outside basis be in Arlington, LLC?

Please match each description with the appropriate approach to federal finance. Policymakers should reduce spending and increase taxes when the economy is growing in order to prevent "overheating". _____This approach was considered conventional wisdom until the advent of the Great Depression. _____Policymakers should focus on keeping unemployment low and providing the people with the public goods and services they want. ____ If insisted upon, this approach would only worsen the economy during a recession. ____This approach ignores the impact of the budget on the business cycle. _____

Calculate the annual cash flows of a $100,000, 10-year fixed-payment deferred annuity earning a guaranteed 3.6 percent per year if annual payments are to begin at the end of year 4 (beginning of year 5). (Hint: Grow the original investment for 4 years and then all payments are paid at the beginning of the year.)

Chuck, a single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the US tax rate schedule)Required:a. If Chuck earns an additional $40,000 of taxable income, what is his marginal tax rate on this income?b. What is his marginal rate if, instead, he had $40,000 of additional deductions?