BUSINESS COLLEGE

Peterson Company billed its customers a total of $840,000 for the month of November. The total includes a 5% state sales tax.(a) Determine the proper amount of revenue to report for the month.
(b) Prepare the general journal entry to record the revenue and related liabilities for the month.

Answers

Answer 1
Answer:

Answer:

a. $800000

b. Account receivable Dr. 840000  

                To sales revenue  800000

                To sales tax payable  40000

Explanation:

a. Given the total billed amount = $840000

    Sales tax = 5%

Total revenue for the month = 840000 x (100 / 105) = $800000

b. Account receivable Dr. 840000  

                To sales revenue  800000

                To sales tax payable  40000

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The SP Corporation makes 38,000 motors to be used in the production of its sewing machines. The average cost per motor at this level of activity is: Direct materials $ 9.70 Direct labor $ 8.70 Variable manufacturing overhead $ 3.55 Fixed manufacturing overhead $ 4.50 An outside supplier recently began producing a comparable motor that could be used in the sewing machine. The price offered to SP Corporation for this motor is $24.55. If SP Corporation decides not to make the motors, there would be no other use for the production facilities and none of the fixed manufacturing overhead cost could be avoided. Direct labor is a variable cost in this company. The annual financial advantage (disadvantage) for the company as a result of making the motors rather than buying them from the outside supplier would be:
Fortune Company's direct materials budget shows the following cost of materials to be purchased for the coming three months: January February March Material purchases $ 13,180 $ 15,290 $ 12,110 Payments for purchases are expected to be made 50% in the month of purchase and 50% in the month following purchase. The December Accounts Payable balance is $7,900. The expected January 31 Accounts Payable balance is:______________.
If a purchasing agent must put up a cash deposit for construction services, for security purposes, instead of giving it directly to the contractor, he or she may insist that it be placed in a(n):
Newark Company has provided the following information: Cash sales, $500,000 Credit sales, $1,400,000 Selling and administrative expenses, $380,000 Sales returns and allowances, $95,000 Gross profit, $1,410,000 Increase in accounts receivable, $60,000 Bad debt expense, $38,000 Sales discounts, $48,000 Net income, $1,030,000 How much cash was collected from customers
Earnings available to common shareholders are defined as net profitsSelect one:a. after taxes.b. after taxes minus preferred dividends.c. after taxes minus common dividends.d. before taxes.

On July 1, 2019, Major Co. pays $15,120 to Mesa Insurance Co. for a 4- year insurance contract. Both companies have fiscal years ending December 31 Journalize and post the entry on July 1 and the adjusting entry on December 31 for Mesa Insurance Co. Mesa uses the accounts Unearned Service Revenue and Service Revenue. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. Round answers to O decimal places,e.g. 5,275.) Date Account Titles and Explanation Debit Credit Unearned Service Revenue Service Revenue

Answers

Answer:

Debit Cash account $15,120

Credit Unearned Service Revenue $15,120

Being entries to record cash collected for service to be rendered.

Debit Unearned Service revenue  $1,890

Credit Service Revenue  $1,890

Being entries to recognize revenue earned as at 31 December

Explanation:

When an amount is collected in advance for a service yet to be rendered, the company recognizes and asset in form of cash and a liability in form of Unearned Service Revenue.

When the service for which cash was collected is performed, revenue is said to have been earned. Entries required then are debit Unearned Service Revenue Credit Service revenue.

For Mesa, on 1 July , entries required are

Debit Cash account $15,120

Credit Unearned Service Revenue $15,120

Being entries to record cash collected for service to be rendered.

As at 31 December, revenue earned

= 1/2 × $15120/4

= $1890

Entries required

Debit Unearned Service revenue  $1,890

Credit Service Revenue  $1,890

Being entries to recognize revenue earned as at 31 December

The journal entries and adjusting entries should be shown below.

Journal entries:

Cash account $15,120

       Unearned Service Revenue $15,120

(Being entries to recordcash collected for service to be rendered)

Unearned Service revenue  $1,890 ( 1/2 × $15120/4)

       Service Revenue  $1,890

( to recognizerevenue earned as at 31 December)

These journal entries should be recorded.

learn more about journal entries here: brainly.com/question/24741269

A hedger takes a long position in a futures contract on a commodity on November 1, 2012 to hedge an exposure on March 1, 2013. The initial futures price is $60. On December 31, 2012 the futures price is $61. On March 1, 2013 it is $64. The contract is closed out on March 1, 2013. What gain is recognized in the accounting year January 1 to December 31, 2013

Answers

Answer:

Gain recognized = $3,000

Explanation:

Continuation is"Each contract is on 1, 000 units of the commodity."

Gain in accounting year Jan 1 to Dec 31, 2013 is the total gain the accounting year. Gain recognized = (Price on March 1, 2013 - Price on Dec 31, 2012) * Total Contract

Gain recognized = (64 - 61) * 1000

Gain recognized = 3 * 1000

Gain recognized = $3,000

On January 1 st, you make plans to travel to Switzerland the following summer. The direct quote for Swiss francs is $0.30.Since it will be a short trip, you believe $3000 in spending money will be sufficient. On June 1 st, the direct quote for Swiss francs is $0.40.As a result, How much Swiss francs will buy your $3000.

Answers

Answer:

On January 1st, the $3,000 could buy 10,000 Swiss francs (3,000/0.3).

On June 1st, the $3,000 would buy 7,500 Swiss francs (3,000/0.4).

Explanation:

On January 1st, each Swiss francs could only purchase $0.30 while on June 1st, each Swiss francs could purchase $0.40.

These show that the Swiss francs had appreciated in value relative to the US Dollars with a positive change of 33%.  Therefore, the dollar had weakened against the Swiss francs by the same rate.

Answer:

7500 Swiss francs

Explanation:

Working

January 1, Swiss francs = $0.3

$3000 will by 3000/0.3 = 10,000 Swiss francs.

June 1 , Swiss Francs = $ 0.4

$3000 will buy 7500 Swiss francs.

This also mean that in January 3.33 Swiss francs will buy 1 $

In June 1 , 2.5 Swiss francs will buy one dollar.

This shows that Swiss francs has appreciated in value against dollar over the months

Disney and other global firms have successfully bridged the cultural gap by producing advertising that appeals to the same target market across Multiple Choice a. regions.
b. countries.
c. demographics.
d. counties.
e. countercultures.

Answers

Answer:

a, b

regions and countries.

Explanation:

Often termed global marketing strategy, involves bridging the cultural gap by producing advertising that appeals to countries from several different regions in the world.

Disney is a good example of a company that uses a global marketing strategy, another example is Coca-cola because of irrespective of the regions they produce products that appeal to their consumers.

If the master budget prepared at a volume level of 10,000 units includes direct materials of $40,000, a flexible budget based on a volume of 12,000 units would include direct materials of $48,000.a. True
b. False

Answers

The answer would be true if you really think about it because if 10,000 units is $40,000 then 12,000 units would estimate up to about $48,000

On January 1, Year 1, Milton Manufacturing Company purchased equipment with a list price of $88,000. A total of $4,000 was paid for installation and testing. During the first year, Milton paid $6,000 for insurance on the equipment and another $2,200 for routine maintenance and repairs. Milton uses the units-of-production method of depreciation. Useful life is estimated at 100,000 units, and estimated salvage value is $8,000. During Year 1, the equipment produced 13,000 units. What is the amount of depreciation for Year 1?

Answers

Answer:

The depreciation expense for Year 1 is $9880

Explanation:

The cost of equipment to be recorded in the books is the price at which it was purchased and the cost incurred to bring it to intended use that is the installation cost. Thus, the cost of the equipment in the books will be recorded as,

Equipment = 88000 + 4000 = $84000

The insurance and maintenance are recurring expenses and are not capitalized.

The depreciation rate under units of production method is,

Depreciation rate = (cost - salvage value) / estimated useful life in units

Depreciation rate = (84000 - 8000) / 100000  =  $0.76 per unit

The depreciation expense for Year 1 = 0.76 * 13000 = $9880

Answer:

$10,920

Explanation:

Cost of equipment = List price of equipment + Cost of installation and testing

                     $88,000 + $4,000 = $92,000

Salvage value = $8,000

Depreciation cost of equipment = Cost of equipment - salvage value

              $92,000 - $8,000 = $84,000

Estimated unit of production = 100,000 units

Year 1 units produced = 13,000 units

Depreciation = $84,000 * 13,000 / 100,000

                    = $10,920
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