Answer:
True
Explanation:
Therefore following statement is TRUE.
Answer:
Given that,
Beginning capital of Coburn = $55,000
Beginning capital of Webb = $95,000
Partnership earned net income = $71,000
Coburn made drawings = $17,000
Webb made drawings = $25,000
Income-sharing ratio = 30:70
Coburn's share in profits = Net income earned × 30%
= $71,000 × 0.3
= $21,300
Webb's share in profits = Net income earned × 30%
= $71,000 × 0.7
= $49,700
Therefore, the journal entry is as follows:
Profit and loss A/c Dr. $71,000
To Coburn's capital A/c $21,300
To Webb's capital A/c $49,700
(To record the allocation of net income)
Magnificent Magazines received $16,800 on December 31, 2015, for subscription services related to magazines that will be published and distributed in January through December 2016.
b.
Walker Window Washing paid $1,680 cash for supplies on December 31, 2015. As of January 31, 2016, $280 of these supplies had been used up.
c.
Indoor Raceway received $4,200 on December 31, 2015, from race participants for providing services for three races. One race is held in January 31, 2016, and the other two will be held in March 2016.
1. Record the receipt of $16,800 on December 31, 2015, for subscription services related to magazines that will be published and distributed from January through December 2016.
2. Record the January 31, 2016 adjusting entry for the December 31, 2015 receipt of $16,800 for magazine subscriptions to be published January through December 2016.
3. Record the payment of $1,680 cash for supplies by Walker Window Washing on December 31, 2015. As of January 31, 2016, $280 of these supplies had been used up.
4. Record the January 31, 2016 adjusting entry for the December 31, 2015 cash payment of $1,680 for supplies. As of January 31, 2016, $280 of these supplies had been used up.
5. Record the receipt by Indoor Raceway of $4,200 on December 31, 2015, from race participants for providing services for three races. One race is held on January 31, 2016, and the other two will be held in March 2016.
6. Record the January 31, 2016 adjusting entry for the December 31, 2015 receipt of $4,200 from race participants for providing services for three races. One race is held on January 31, 2016 and the other two will be held in March 2016.
Answer:
Journal Entries
a1) Magnificent Magazines
Date Details Dr Cr
$ $
December 31, 2015 Cash 16,800
Deferred Revenue-subscription 16,800
Being recognition of prepaid subscription service for the year 2016
a2) Magnificent Magazines
Date Details Dr Cr
$ $
January 31, 2016 Deferred Revenue-subscription 1,400
Revenue 1,400
Being revenue for the month of January 2016
b1) Walker Window Washing
Date Details Dr Cr
$ $
December 31, 2015 Prepaid expense-Supplies 1680
Cash 1680
Being recognition of advance payment for supplies
b2) Walker Window Washing
Date Details Dr Cr
$ $
January 31, 2016 Expense - supplies 280
Prepaid expense-Supplies 280
Being supply expense for the month of January
c1) Indoor Raceway
Date Details Dr Cr
$ $
December 31, 2015 Cash 4,200
Deferred Revenue 4,200
Being recognition of race income paid in advance
c2) Indoor Raceway
Date Details Dr Cr
$ $
January 31, 2016 Deferred Revenue 1,400
Revenue 1,400
Being revenue for the month of January 2016
Explanation:
a) For Magnificent Magazines, the total amount paid $16800 is given as an advance for services not yet rendered. This amount which is for 12 months is then recognized as revenue when the services as provided on a monthly basis = 16800/12 = 1400
b) Walker windows paid in advance for supplies amounting to $1680, this is an asset to the company (prepayment) and as at January 2016, only $280 had been utilized. The utilized $280 is therefore expensed to the income statement
c) For Indoor Raceway, the $4200 is a liability as the services have not been provided yet, hence deferred revenue and the revenue is recognized after the service has been rendered in the income statement. For January, being 4200/3 = 1400
Answer:
-Price elasticity of demand=0.77
-The demand is inelastic because the elasticity is 0.77 and this number is less than 1.
Explanation:
The formula to calculate the price elasticity of demand is:
Price elasticity of demand=% change in the quantity demanded/% change in the price
To use this formula you have to calculate the % change in the quantity demanded and % change in the price:
% change in the quantity demanded=(Q2-Q1/((Q2+Q1)/2))*100
% change in the quantity demanded=(250-200/((250+200)/2))*100
% change in the quantity demanded=(50/(450/2))*100
% change in the quantity demanded=(50/225)*100
% change in the quantity demanded=22.22%
% change in the price=(P2-P1/((P2+P1)/2))*100
% change in the price=(600-800/((600+800)/2))*100
% change in the price=(-200/(1400/2))*100
% change in the price=(-200/700)*100
% change in the price=-28.57%
Now, you can replace the values in the formula to to calculate the price elasticity of demand:
Price elasticity of demand= 22.22%/-28.57%
Price elasticity of demand=0.77
The price elasticity of the demand is 0.77. An elastic demand is when the elasticity is greater than 1 and an inelastic demand is when the elasticity is less than one. So, according to this, the demand is inelastic because the elasticity is 0.77 and this number is less than 1.
Answer:
Pro Forma is a financial statement that facilitates comparison of historic data and projections of future predictions.
Explanation:
Pro Forma have different formats but they all do the same thing. They help forecast a company's financial feasibility, break even, and profitability. According to the present situations assumptions about the financial and operating characteristics can be identified.
The results can be assembled in profit and loss projections. Advantage over job candidates is that the past record can be taken into account.
Answer:
How do you envision this knowledge and skill with pro formas will give you an advantage over other job candidates?
Explanation:
If you know about proformas, you are a specialist in companies that issue a profit announcement and make it available to the public, particularly to potential investors. Additionally, you are able to assess the potential value of a proposed change, such as an acquisition or a merger
Answer:
B The isocost line makes a parallel shift inward
Explanation:
This is because the increase in price is proportional ,less of labor and capital can be bought,and isocost line shifts inward parallely.
If both the price of labor and capital increase proportionally while holding production costs constant, the isocost line makes a parallel shift inward, indicating less of both inputs can be afforded for the same level of expenditures.
When considering the effects of changes in the prices of inputs such as labor and capital on the production process, the representation of these changes can be seen on an isocost line in a graph where labor is on the horizontal axis and capital is on the vertical axis. If the price of labor increases, typically the isocost line becomes flatter; however, if both the price of labor and capital rise in the same proportion and production costs remain constant, the result is choice B: The isocost line makes a parallel shift inward. This reflects that at the new higher prices, the firm can afford less labor and less capital for the same level of expenditures, hence the isocost line moves closer to the origin of the graph.
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Answer:
Explanation:
Bank Reconciliation: The bank reconciliation deals with the bank statement balance and the cash statement balance. The motive is to compare these two statements so that the organization can run in the smoothly manner.
There are various transactions due to which the bank statement balance and the cash statement balance do not match. To match these statements, we adjust the transactions accordingly.
The outstanding deposits is computed below:
= Company cash receipts - bank deposited
= $74,640 - $71,375
= $3,265
And, the outstanding checks is computed below:
= Company written checks - Processed by bank
= $72,515 - $71,270
= $1,245
The preparation of the bank reconciliation statement on October 31, 2015 for Damon Company's is presented in the spreadsheet. Kindly find the attachment below: