Sales to customers who use bank credit cards such as mastercard and visa are usually recorded by:a. Debit to Cash and a credit to Sales b. Debit to Cash, credit to Credit Card Expense, and a credit to Sales c. Debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales d. Debit to Sales, debit to Credit Card Expense, and a credit to Cash
Answers
Answer:
c. Debit to Bank Credit Card Sales, debit to Credit Card Expense, and a credit to Sales
Explanation:
The journal entry is shown below:
Bank credit card sales A/c Dr XXXXX
Credit card expense A/c Dr XXXXX
To Sales A/c XXXXX
(Being the sales is recorded via bank credit cards)
As the credit card has some expense so we debited the credit card expense along with the bank credit card sales and credited the sales as it is revenue which is to be credited
Related Questions
A customer recently wrote your bakery a letter complaining that the cherry scones were too crumbly and dry. Although the customer already ate all the scones, he is demanding a full refund. Your company does not honor refunds on food that has been consumed What could you include in the closing of your response to restore confidence? 1. A statement of company policy regarding refunds 2. A freebie or promotional discount 3. A defensive remark 4. An alternative product
Consider how McKnight Valley River Park Lodge could use capital budgeting to decide whether the $ 11 comma 500 comma 000 River Park Lodge expansion would be a good investment. Assume McKnight Valley's managers developed the following estimates concerning the expansion: LOADING...(Click the icon to view the estimates.) Assume that McKnight Valley uses the straight-line depreciation method and expects the lodge expansion to have a residual value of $ 950 comma 000 at the end of its ten-year life. The average annual net cash inflow from the expansion is expected to be $ 2 comma 779 comma 548. Compute the payback for the expansion project. Round to one decimal place.
Manny wants to be involved in a business but is not sure which type of business to join or create. He has capital to invest. He has a good network of potential investors and partners. He has no experience in management.A. Limited partner in a limited partnership.B. Neither a limited or general partner would be a good choice.C. General partner in a limited partnership.
How might different types of office design influence employee social interaction, collaboration, and creativity? Should there be encouraged even in organizations without an innovative culture?
Answers
Answer:
- 1. $486,134.86
- 2. $525,593.86
- 3. $602,492.04
Explanation:
You need to use the formula to calculate the future value of a constant annual deposit:
Where r is the expected percent return, and n the number of years.
1. For a deposit of $30,800 at the end of each year for the next 11 years, with 7% interest.
You will have saved:
2. For a deposit of $33,300 each year, for the same number of years and with the same interest rate.
You will have saved:
3. For a deposit of $30,800 each year, but with 11 percent interest, for 11 years.
Answers
Answer:
Explanation:
a) A corporation?
A Corporations are taxable entities. Miller, Inc. will pay tax on its income. Ramona will be taxed on dividends received. Ramona has $36,000 ($180,000 x 20%) of dividend income from Miller. The dividend income will be taxed at 15%.
b) An S corporation?
An S corporations are conduit entities and do not pay tax on their income. The income from the conduit flows through and is taxed to the owners of the S corporation. Ramona will be taxed on 20% of Miller's income. Capital gains and losses of conduit entities must be reported separately, so that the owners can properly treat them in the calculation of their net capital gain or loss for the year. Miller has $700,000 ($3,400,000 - $1,800,000 - $900,000) of operating income and a $250,000 long-term capital gain in the current year. Ramona must include $140,000 ($700,000 x 20%) of ordinary income and $50,000 ($250,000 x 20%) of long-term capital gain on her individual return. The $140,000 of ordinary income is added to Ramona's gross income. The long-term capital gain of $50,000 is netted with other capital gains and losses. Because the income of the conduit is being taxed at the owner level, dividends paid to owners are considered to be returns of capital investment and are not taxed.
Answer: on S corporation taxable income will be affected by 140,000 and on corporation it will be 36000
Taxable income of Ramona
S corporation Corporation
share on profits 140000 0
dividends 36000
Explanation:
Miller Inc
S corporation corporation
sales 3400000 3400000
cost of sales 1800000 1800000
gross profit 1600000 1600000
other income 250000 250000
gain on sale of stock 250000 250000
operating expenses 900000 900000
Net Profit 950000 950000
dividends 0 180000
taxable income of Miller Inc
S corporation Corproration
Net Profit 950000 950000
gain on sale of stock -250000 -250000
Taxable Income 700000 700000
for the S corporation Miller gets a share of 20% on the taxable profits of the S corporation and on the corporation he gets 20% of the total dividends to shareholder. The gain is capital in nature and is not taxable income as per SARS.
Answers
Answer:
B. A contra liability
Explanation:
A contra liability account is an account that is paired with another liability account and used to reduce the liability in that account. The Discount on Bonds Payable, decreases the Value of Bonds.
Final answer:
The 'Discount on Bonds Payable' account is a contra liability. It's used to reduce the balance of the 'Bonds Payable' account. The discount is slowly amortized to interest expense over time.
Explanation:
The Discount on Bonds Payable account is a contra liability. In accounting, contra accounts are used to reduce the balance of their corresponding main accounts. Here, 'Discount on Bonds Payable' is used to reduce the balance of the 'Bonds Payable' account. For example, if a $10000 Bond is issued at a discount for $9500, the 'Bonds Payable' account would show $10000 and the 'Discount on Bonds Payable' would show $500 (which is a contra liability, not a regular liability). Over time, this discount is slowly amortized to interest expense, reducing the balance of the 'Discount on Bonds Payable' account and increasing the carrying value of the 'Bonds Payable' account.
Learn more about Discount on Bonds Payable here:
#SPJ6
Answers
Answer:
A. Horizontal at the shutdown price and upward sloping at prices above the shutdown point.
Answers
Answer:
A.Journal entries
(1)
Dr Investment in AMC common shares
$580,000
Cr Cash $580,000
(2) No journal entry required
(3) Dr Cash $31,250
Cr Investment Revenue $31,250
(4) Dr Fair value adjustment
$35,000
Cr Net unrealised holding gains and losses- OCI $35,000
(B.) Journal entries
Dr Investment in AMC common shares $580,000
Cr Cash $580,000
(2) Investment in AMC common shares
Dr $87,500
Cr Investment Revenue $87,500
(3) Dr Cash $31,250
Cr Investment in AMC common shares $31,250
(4) No journal entry required
Explanation:
A.Journal entries
(1)
Dr Investment in AMC common shares
$580,000
Cr Cash $580,000
(2) No journal entry required
(3) Dr Cash $31,250
Cr Investment Revenue $31,250
(4) Dr Fair value adjustment
$35,000
Cr Net unrealised holding gains and losses- OCI $35,000
Working notes:
Cash Dividends = 25%*500,000*$0.25 = $31,250
Adjustment entry:
Fair value adjustment = 580,000-615,000 = $35,000
B.) Journal entries:
(1)
Dr Investment in AMC common shares $580,000
Cr Cash $580,000
(2) Investment in AMC common shares
Dr $87,500
Cr Investment Revenue $87,500
(3) Dr Cash $31,250
Cr Investment in AMC common shares $31,250
(4) No journal entry required
Working notes:
Net Income:
Investment in AMC common shares = 25%*350,000= $87,500
Cash Dividends = 25%*500,000*$0.25= $31,250
b. people are willing to forgo; yam yam
c. must be forgone; yam yam
d. people are willing to forgo; lemon lemon