Answer:
Journal
Account Title
Accounts Payable $400 (Debit)
Purchase return and allowances $400 (Credit)
Account Payable
Dec 7 Cash $400 (Debit)
Purchase Returned
Dec 7 Cash $400 (Credit)
b. You cannot inventory service checked.
c. Employees do not require any technical training unanswered.
d. The service itself cannot be patented checked.
e. The process is part of the product
Answer:
The correct answers are letters "A", "B", "D" and "E".
Explanation:
A service system is a combination of Information Technology (IT) technologies and corporate networks that provide services to customers. Service systems have added values that differentiates and include the efforts of people in the operations. Online education programs are examples of service systems.
Manufacturing systems are the traditional organizations in which a product is created with the use of materials, labor, managerial support, and equipment to produce goods in organized and established cycles aiming to offer a product that satisfies consumers' needs.
Compared to manufacturing systems, service systems are intangible because even if people can make use of them, they are not physic; they cannot be inventoried since there is no specific form of measuring service systems by units; they cannot be patented because most service systems add value to already existing services with the use of technology; and, the process of providing the service is the product itself.
Service systems differ from manufacturing systems in several ways, particularly in that services can't be inventoried, they usually can't be patented, and the process of service delivery is often considered part of the product itself. Hence the correct option is (b, d).
Significant ways in which service systems differ from manufacturing systems include the fact that you cannot inventory service and the service itself cannot usually be patented. These characteristics highlight major differences between services and physical products.
In addition, the process of delivering the service is often considered part of the product in a service system. For instance, customer experience is integral to services delivery, unlike in manufacturing where the product and its manufacturing process are usually distinct.
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Answer:
a) Stockholders' equity = $411,690
b) Stockholders' equity = $477,930
Explanation:
Accounting equation is defined as Assets = Liabilities + Equity.
a) If t the end of its accounting period, December 31, Ryan's Arcade has assets of $632,000 and liabilities of $220,310, the Stockholders' equity as of December 31 of the current year would be determined as follows:
$632,000 = $220,310 + Equity
Stockholders' equity = $632,000 - $220,310
Stockholders' equity = $411,690
b) If assets increased by $84,040 and liabilities increased by $17,800 during the next year, then Stockholders' equity would be determined as follows:
$632,000 + $84,040 = $220,310 + $17,800 + Equity
$716,040 = $238,110 + Equity
Stockholders' equity = $477,930
Preferred stock, 11 percent, par value $13 per share, 5,000 shares authorized
During the year, the following transactions took place in the order presented:
a. Sold and issued 21,900 shares of common stock at $26 cash per share.
b. Sold and issued 2,800 shares of preferred stock at $30 cash per share.
c. At the end of the year, the accounts showed net income of $41,600. No dividends were declared.
Required:
Prepare the stockholders’ equity section of the balance sheet at the end of the year.
Answer and Explanation:
The preparation of the stockholder equity section is presented below:
Tandy Company
Balance Sheet (Partial)
Stockholders Equity :
Contributed Capital :
Common stock (21,900 shares × $6) $131,400
Preferred stock (5,000 shares × $13) $65,000
Additional Paid in Capital - Common stock (21,900 shares × $20) $438,000
Additional Paid in Capital - Preferred stock (5,000 shares × $17) $85,000
Total Contributed Capital $719,400
Add: Retained Earnings $41,600
Total Stockholders Equity $761,000
Should be sold at the split-off point, rather than processed further.
Would increase the company's overall net income by $45,000 if processed further and then sold.
Would increase the company's overall net income by $108,000 if processed further and then sold.
Would increase the company's overall net income by $9,000 if processed further and then sold.
Answer: Would increase the company's overall net income by $9,000 if processed further and then sold.
Explanation:
The Revenue if sold at the split-off point is $63,000.
But if processed further, we can realize revenue of,
= $108,000 - 36,000
= $72,000
To find out the revenue difference then we will subtract the alternatives.
= $72,000 - 63,000
= $9,000
$9,000 extra will be gained if we process further as opposed to selling at the Split-off point. This shows that Option D or the last option is correct.
Answer:
the annual consumer spending is $58,000
Explanation:
The computation of the amount of the wilson family is shown below"
Annual consumer spending is
= Disposable income × marginal propensity to consume + autonomous consumption spending
= $60,000 × 0.8 + $10,000
= $48,000 + $10,000
= $58,000
hence, the annual consumer spending is $58,000
We simply applied the above formula so that the correct value could come
And, the same is to be considered
Answer:
a. Cash basis - amount is $3,600
b. Accrual basis - amount is $1,200
Explanation:
a.
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.
b.
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.