Answer:
ABC Daycare
Effect of Performing Plumbing Services on account on the Accounting Equation:
Assets (Accounts receivable) will increase by $565 and Equity (Retained Earnings) will equally increase by $565
Explanation:
a) Data and Analysis:
Accounts receivable $565 Service Revenue $565
The accounting equation that equals assets to liabilities and equity is always true at all times and with every correctly posted transaction. It implies that assets are financed through the contributions made by either the owners (equity) or the creditors (debts), or a combination of the two. This equation forms the basis for the double-entry system of financial accounting.
In the trade-off theory, debt levels chosen to balance interest tax shield against the costs of financial distress imply:________
a. an interior optimum (firm value maximizing) debt ratio
b. that investors are irrational, since they require lower returns the hgher the risk
c. that a firm would use little to no debt
d. that a firm would borrow as much as possible
Answer:
a) an interior optimum (firm value maximizing) debt ratio
Explanation:
Trade off Theory is about capital structure of an economic unit. It mentions about the benefit of debt - ie tax saving, as interest on debt is tax deductible; & cost of debt - bankruptcy & insolvency risk, due to fix interest cost.
The theory depicts the debt level, which is best to - balance interest tax shield against the costs of financial distress imply, which implies that it seeks a balance between benefit & cost of debt.
So, the theory finds the best interior optimum (firm value maximising) debt equity ratio.
Grouper Company purchased an electric wax melter on April 30, 2020, by trading in its old gas model and paying the balance in cash. The following data relate to the purchase.
List price of new melter $21,804
Cash paid 13,800
Cost of old melter (5-year life, $966 salvage value) 15,456
Accumulated Depreciation-old melter (straight-line) 8,694
Secondhand fair value of old melter 7,176
Required:
Prepare the journal entries necessary to record this exchange, assuming that the exchange (a) has commercial substance, and (b) lacks commercial substance. Sage’s fiscal year ends on December 31, and depreciation has been recorded through December 31, 2020.
Answer and Explanation:
The journal entries are shown below;
a. the exchange has commercial substance
Depreciation expense (($15,456 - $966) ÷ 5 × 4 ÷ 12 ) $966
To Accumulate depreciation $966
(being depreciation expense is recorded)
New Melter ($13,800 + $7,176) $20,976
accumulated depreciation ($8,694 + $966) $9,660
To loss on sale of melter $1,380
To old melter $15,456
To cash $13,800
(being equipment exchange is recorded)
b. The exchange lacks commercial substance
Depreciation expense (($15,456 - $966) ÷ 5 × 4 ÷ 12 ) $966
To Accumulate depreciation $966
(being current depreciation expense is recorded)
New Melter ($13,800 + $7,176) $20,976
accumulated depreciation ($8,694 + $966) $9,660
To loss on sale of melter $1,380
To old melter $15,456
To cash $13,800
(being equipment exchange is recorded)
The master budget of Tenenbaum Ltd. shows that the planned activity level for next year is expected to be 30,000 machine hours. At this level of activity, the following manufacturing overhead costs are expected:
Indirect labor................................................. $720,000
Machine supplies..........................................180,000
Indirect materials..........................................210,000
Depreciation on factory building..................150,000
Total manufacturing overhead.....................$1,260,000
A flexible budget for a level of activity of 40,000 machine hours would show total manufacturing overhead costs of:________
Answer:
$1,630,000
Explanation:
The computation of the flexible budget for a level of activity of 40,000 machine hours would show total manufacturing overhead costs is shown below:-
Variable overhead for 30,000 machine hours
= $1,260,000 - $150,000 = $1,110,000
Variable overhead for 40,000 machine hours
= ($1,110,000 / 30,000) × 40,000 = $1,480,000 (a)
Fixed overhead = Depreciation = $150,000 (b)
Total manufacturing Overhead (a + b)
= $14,80,000 + $150,000
= $1,630,000
A company is considering the purchase of new equipment for $480,000. The projected after-tax net income is $80,000 per year after deducting $160,000 of annual depreciation expense. The equipment has a useful life of 3 years and no salvage value. What is the payback period for the new equipment?
a. 2 years.
b. 3 years.
c. 4 years.
d. 5 years.
e. 6 years.
Answer:
a. 2 years.
Explanation:
Annual cash flow = After-tax net income + Depreciation
Annual cash flow = $80,000 + $160,000
Annual cash flow = $240,000
Payback Period = Cost of Project / Annual cash Flow
Payback Period = $480,000 / $240,000
Payback Period = 2 years
So, the payback period for the new equipment is 2 years.
Money is neutral in:___________
A. the short run, since it cannot alter the real aggregate output or price level in the short run.
B. both the short and long run, since it cannot alter price levels or aggregate output in the long and short run.
C. the long run, since it only affects the price level, but not aggregate output or interest rates.
D. the short run, since it cannot alter the price levels or interest rate in the short run.
Answer:
C
Explanation:
Money neutrality is a theory which submits that money supply only affect nominal variable and not real variables.
Nominal variables include price, wages and exchange rate
real variables include employment and real GDP
Money is only neutral in the long run and not in the short run because of money illusion. Money illusion causes economic agents to respond to money supply changes.
Money is neutral only in the long run
During 2016, its first year of operations, Baginski Steel Corporation reported a net operating loss of $375,000 for financial reporting and tax purposes. The enacted tax rate is 40%.
Required:
1. Prepare the journal entry to recognize the income tax benefit of the net operating loss. Assume the weight of available evidence suggests future taxable income sufficient to benefit from future deductible amounts from the net operating loss carryforward.
2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss.
Answer:
1. Debit Deferred Tax Liability for $150,000; and Credit Income Tax Benefit -Operating Loss for $150,000.
2. See part 2 below for how it is shown.
Explanation:
1. Prepare the journal entry to recognize the income tax benefit of the net operating loss.
Income tax benefit = Net operating loss * Tax rate = $375,000 * 40% = $150,000
The journal entry will look as follows:
Particulars Debit ($) Credit ($)
Deferred Tax Liability 150,000
Income Tax Benefit - Operating Loss 150,000
(To record the income tax benefit)
2. Show the lower portion of the 2016 income statement that reports the income tax benefit of the net operating loss.
This can be shown as follows:
Baginski Steel Corporation
Income Statement
For the Year Ended 2016
Details $
Net operating loss (375,000)
Income tax benefit 150,000
Net loss (225,000)
On January 1, 2019, Woodstock, Inc. purchased a machine costing $40,600. Woodstock also paid $1,300 for transportation and installation. The expected useful life of the machine is 6 years and the residual value is $5,300. If Woodstock uses the straight-line depreciation method, which of the following statements is incorrect?
a. The annual depreciation expense is $6.100.
b. The December 31, 2019 book value is $35,800
c. The December 31, 2020 book value is $24,400
d. The December 31, 2021 accumulated depreciation balance is $18,300
Answer:
Book value (2020)= $29,700
Explanation:
Giving the following information:
Total purchase price= 40,600 +´1,300= $41,900
Useful life= 6 years
Residual value= $5,300
To determine which option is incorrect, we are going to calculate the annual depreciation, book value, and accumulated depreciation:
Annual depreciation= (Total purchase price - salvage value)/estimated life (years)
Annual depreciation= (41,900 - 5,300) / 6
Annual depreciation= $6,100
Accumulated depreciation (2021)= 6,100*3= $18,300
Book value (2019)= 41,900 - 6,100= $35,800
Book value (2020)= 35,800 - 6,100= $29,700
home trade helps in proper utilization of local resources how
1. Higher trade volumes
2. Greater opportunities to capitalize on comparative advantages
3. More efficient use of raw materials
4. Stronger economic growth
You are evaluatig an equity investment in a public company called Corona Corp (ticker: COR). You expect the company will pay a $2.00 dividend per share at the end of next year and that dividends will grow at a constant rate of 5% annually in the future. You require a 13% return on investments in equity. Based on these assumptions, what is the fair value of a share of COR stock today?
Answer:
$25
Explanation:
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
2/ 0.13 - 0.08 = $25
On September 30, 2018, Corso Steel acquired a patent from Thermo Steel. The agreement specified that Corso will pay Thermo $1,000,000 immediately and then another $1,000,000 on September 30, 2020. An interest rate of 8% reflects the time value of money for this type of loan agreement.
What amount of interest expense, if any, would Corso record on December 31, 2019, the company’s fiscal year end?
a. $68,687.
b. $80,000.
c. $60,000.
d. $69,959.
Answer: $69,959
Explanation:
The amount of interest expense, that Corso will record on December 31, 2019, the company’s fiscal year end will be calculated thus:
First, we calculate the present value of payment which will be made on September 30,2020 and this will be:
= $1000000 × 0.857339
= $857339
Then, the interest expense on December 31,2018 will be:
= $857339 × 8%/12 × 3
= $17147
Therefore, the Interest expense on December 31,2019 will be:
= ($857339 + $17147) × 8%
= $874486 × 0.08
= $69959
Choose the term that best matches the description given.
Goals that include some details are called
specific goals
realistic goals
planning goals
Which of the following allows an individual to gain from unexpected inflation?
You are considering an investment that costs $152,000 and has projected cash flows of $71,800, $86,900, and -$11,200 for years 1 to 3, respectively. If the required rate of return is 15.5 percent, should you accept the investment based solely on the internal rate of return rule? Why or why not?
a. Yes; The IRR exceeds the required return.
b. No; The IRR exceeds the required return.
c. You cannot apply the IRR rule in this case.
d. Yes; The IRR is less than the required return.
Answer:
c
Explanation:
Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested
The IRR would give conflicting answers in this case because a stream of positive cash flows is followed by negative cash flow
IRR can only be used when a negative cash flow is followed by positive cash flows
In this question there are two negative cash flows in year 0 and year 3
The following are Hibiscus Company's cost of making and selling an item:
Description Amount per unit
Direct materials $9
Direct labor $4
Variable manufacturing overhead $2
Fixed manufacturing overhead $5
Variable selling and administrative $2
Fixed selling and administrative $8
A one-time only special order has been received for 600 units. The company has capacity to accept the oder and it would not affect regular sales. The sales price for the special order is 26 per unit. Total fixed costs would not be affected by this order. The variable selling and administrative costs would have to be incurred for this special order. The order would require an additional $3 per unit for specialized materials and a new machine that costs $2,000. What is the financial advantage or disadvantage of accepting the special order?
Answer:
$2,800 financial advantage
Explanation:
We consider incremental costs and revenues in our analysis for the effects of accepting the special order.
Analysis of effects of accepting the special order :
Sales - Incremental (600 units x $26) $15,600
Less Incremental Costs :
Direct materials ($9 x 600 units) ($5,400)
Direct labor ($4 x 600 units) ($2,400)
Variable manufacturing overhead ($2 x 600 units) ($1,200)
Specialized materials ($3 x 600 units) ($1,800)
Machine Cost ($2,000)
Financial Advantage / (Disadvantage) $2,800
therefore,
the financial advantage of accepting the special order is $2,800
Dennis sells short 100 shares of ARC stock at $152 per share on January 15, 2020. He buys 200 shares of ARC stock on April 1, 2020, at $190 per share. On May 2, 2020, he closes the short sale by delivering 100 of the shares purchased on April 1
a. What are the amount and nature of Dennis’s loss upon closing the short sale?
b. When does the holding period for the remaining 100 shares begin?
c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?
Answer: See explanation
Explanation:
a. What are the amount and nature of Dennis’s loss upon closing the short sale?
Sales consideration = $100 × $152 = $15200
Less: Closing Value of Short sales = 100 × $190 = $19000
Short term capital loss = $3800
b. When does the holding period for the remaining 100 shares begin?
The holding period for the remaining 100 shares begin on May 2, 2020, which was when the short sale was closed.
c. If Dennis sells (at $27 per share) the remaining 100 shares on January 20, 2017, what will be the nature of his gain or loss?
Sales consideration = 100 × $27 = $2700
Less: Base value = $19000
Short term capital loss = $16300
Discuss, what international business is, why and how it differs from domestic business, why it is important, and its historical development?
Answer:
An international business can be understood as the expansion of business beyond your country. Organizations look for economic opportunities in other countries, to achieve competitive and profitable advantages, to increase their value and their market strength.
This is a strategy that includes greater responsibilities than managing a national business, due to the fact that an international business includes adapting to a different culture, legislation and preferences, which means greater challenges and greater capacity for the organization to adapt its values, products and services the culture and local rules, in order to be well accepted and well positioned in the international market.
International business was only possible due to new technologies, which allowed individuals to move and communicate more quickly, which enabled this international expansion in a more dynamic way and management in real time, regardless of geographic distance.
Currently we live in the era of globalization, where there is a great economic interaction between the countries of the world, in an ultra-competitive environment where each organization seeks the best way to generate value and economic results.
Select the correct answer from each drop-down menu.
Jerry's company has launched a new product following the market penetration pricing. What rates would his products have and on what would he
spend a lot on?
Jerry's company has launched a new product following the market penetration pricing. Thus, his products have____
and he is spending a lot on
____the product.
price
First blank:
A.) a high
B.) a low
C.) an above average
Second blank:
A.) packaging
B.) manufacturing
C.) advertising
Jerry's company has launched a new product following the market penetration pricing. Thus, his products have a low price and he is spending a lot on the advertising product price.
Using a lower price during the initial offering of a new product or service, firms utilize penetration pricing as a marketing approach to draw clients to the new offering.
A new product or service can more easily enter the market and draw clients away from rivals thanks to a reduced price. Pricing for market penetration is based on the principle of initially offering a new product at low rates to attract the attention of as many consumers as possible.
A price penetration strategy seeks to increase market share by luring consumers to test new products in the hopes that they would remain loyal after prices return to normal. An online news site that offers a trial month of a subscription-based service is an example of penetration pricing.
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Carts Corporation
is trying to determine how long it takes for one product to pass through the production process. The following information was gathered regarding how many days the product spent in various production activities:
Activity Number of Days
Inspection . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Storage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Assembly . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Handling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Painting . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Packaging . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
a. Which of the above activities are value-added?
b. What is Carts' total cycle time?
c. Determine Carts' manufacturing efficiency ratio.
d. If Carts implements a total quality management program and a just-in-time inventory system, which of the above activities could be eliminated? What would be the change in Carts' manufacturing efficiency ratio?
Answer:
Following are the solution to the given points:
Explanation:
For point a:
[tex]\text{Value added activities = Assembly and Paintings}[/tex]
For point b:
[tex]Activity \ \ \ \ \ \ \ \ \ \ \ \ \ Number \ of \ days \\\\[/tex]
[tex]Inspection \ \ \ \ \ \ \ \ \ \ \ \ \ 4 \\\\ Storage\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3\\\\ Assembly\ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 5\\\\ Handling \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 2\\\\ Painting \ \ \ \ \ \ \ \ \ \ \ \ \ \ \ 3\\\\ Packaging \ \ \ \ \ \ \ \ \ \ \ \ \ 1\\\\ Total \ cycle\ time \ \ \ \ \ 18\ days[/tex]
For point c:
[tex]\text{Efficiency ratio of production} = \frac{\text{time added value}}{\text{total cycle time}} \\\\[/tex]
[tex]\text{VAT = 5 days assembled + 3 days in paint = 8 days in painting}[/tex]
[tex]= \frac{8}{18} \\\\ = 44.44\%[/tex]
For point d:
In inspection, TQM will cut back 4 days
JIT reduces storage time by 3 days.
Reduction total = 7 days
Retrofiled The total time of the cycle[tex]= 18 \ days - 7 \ days = 11\ days[/tex]
Revised efficiency of production [tex]=\frac{8 \ days}{ 11\ days} =72.73\%[/tex]
The value added activities are assembly and paintings, the total chart's time is 18 days, the manufacturing ratio is 44.44% and the revised value of efficiency is 72.73%.
For point A:
What are value added activities?Value Added Activities are those activities that modify the product from raw material into finished goods that the customer is willing to pay for.
Hence, the value added activities are assembly and paintings.
For point B:
The chart of the total cycle time is given in the image below:
For option C:
[tex]\text{Production Efficiency Ratio}=\dfrac{\text{Time Value Added}}{\text{Sum of Time Cycle}}\\\\\text{Value Added Time(VAT)}= \text{Assembled 5 Days}+\text{Days in Paint}\\\\=8\text{Days}\\\\=\dfrac{8}{18}= 44.44\%.[/tex]
For option D:
Time Quantity Management = 4 days,
Just-in-time Inventory Shortage Time= 3 days,
Reduction Total = 7 days,
[tex]\text{Total Time of cycle}=\text{18 days - 7 days}\\\\=11\text{days}[/tex]
[tex]\text{Revised Efficiency Production}=\frac{\text{8 days}}{\text{11 days}}\\\\\\=72.73\%.[/tex]
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Firm ABC sells 1000 units of widgets for $10 per unit per-week. Per-week it pays its employees $1500, rent $2000, materials $1000, and the owner gives himself a salary of $3000 per week. The owner left his job as an engineer making $5000 per-week to start his business. In addition, he would be making an interest of $200 per week on his savings which he withdrew to start the business.
a. The firm's accounting profit per week is equal to $6500
b. The firm's explicit cost is smaller than its implicit cost per week
c. The firm's economic profit per week is equal to $300
d. The firm's economic loss per week is equal to $700
Answer:
C
Explanation:
accounting is the language of business
A non-governmental not-for-profit university in California charges its students tuition of $10,000,000. However, financial aid grants total $2,200,000. In addition, the school receives a $1,000,000 grant restricted for faculty salaries. Of this amount, $300,000 is spent appropriately this year. On the statement of activities, the school reports three categories: (1) revenues and support, (2) net assets released from restrictions, and (3) expenses. Which of the following is not true?
A. In the unrestricted net assets, the revenues and support should total $1.14 million.
B. Unrestricted net assets shows the $160,000 as a direct reduction to the tuition revenue balance.
C. Unrestricted net assets should recognize expenses of $24,000.
D. Unrestricted net assets should show an increase of $24,000 for net assets reclassified.
Answer:
b. In the unrestricted net assets, the revenues and support should total $10,000,000.
Explanation:
Based on the information given the statements that is NOT true will be "IN THE UNRESTRICTED NET ASSETS, THE REVENUES AND SUPPORT SHOULD TOTAL $10,000,000 reason been that in a non-governmental not-for-profit school the the financial grant that was provided by the school will reduce the tuition revenue which therefore means that the FINANCIAL SUPPORT OR GRANTS REVENUES AND SUPPORT should total only the amount of $7,800,000 calculated as ($10,000,000-$2,200,000).
a.) Suppose that South Pangean debt is $100 million and the interest rate it pays on that debt is 4 percent. That means its interest payments must be $ million.
b.) If South Pangean expenditures are $30 million without interest payments, that means its expenditures with interest payments are $ million.
Answer:
a
$4 million
b.
expenditures with interest payments
Explanation:
a.
The interest payment is the value of debt taken multiplied by the interest rate on the debt.
In other words, the interest payment is computed using the below formula:
annual interest payment=value of debt*interest rate
value of debt=$100 million
interest rate=4%
annual interest payment=$100 million*4%
annual interest payment=$4 million
b.
The expenditures with interest payments are is the expenditures without interest payments plus interest payments determined as $4million above
expenditures with interest payments=expenditures without interest payments+interest payments
expenditures without interest payments=$30 million
interest payments=$4 million
expenditures with interest payments=$30million+$4million
expenditures with interest payments=$34million
The interest amount for the $ 100 million at 4% interest rate has been $4 million. The expenditure of South Pangean with interest has been $34 million.
(a) Interest has been the amount paid to the sum principal amount based on the interest rate.
Annual interest can be calculated as:
Interest = Interest rate [tex]\times[/tex] Principal sum
Interest = 4% [tex]\times[/tex] $100 Million
Interest = [tex]\rm \dfrac{4}{100}[/tex] [tex]\times[/tex] $100 Million
Interest = $ 4 Million.
(b) The expenditures with interest have been the sum of expenditure and the interest amount.
Expenditure with interest = Expenditure + Interest
Expenditure with interest = $ 30 + $ 4 million
Expenditure with interest = $ 34 million.
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guns has decided to organixe
Answer:
why wont people stop thinking about guns and help your community out let god get into your hangs its not about guns its about communication helping love this outside world is to enjoy the whole world
On May 13, 2020, Otto, Parker and Quentin bought a parcel of land as tenants in common. The deed provided that Otto owned 1/2 the property and Parker and Quentin each owned 1/4 each. If Quentin dies, the property will be divided as follows:
a. Otto 1/2. Parker 1/2
b. Otto 5/8, Parker 3/8
c. Otto 1/3, Parker 1/3, Quentin's heirs 1/3
d. Otto 1/2. Parker 1/4, Quentin's heirs 1/4
Answer:D. Otto 1/2. Parker 1/4, Quentin's heirs 1/4
Explanation:
Based on the information given in the question, if Quentin dies, the property will be divided as Otto 1/2. Parker 1/4, Quentin's heirs 1/4.
When a tenant in common dies, it should be noted that their share of a property will be passed to their legal heir and thesame percentage of ownership will be shared by the co-owners. Hence the correct option is D
Speedy has net income of $30,955, and assets at the beginning of the year of $212,000. Assets at the end of the year total $258,000. Compute its return on assets.
Answer:
13.17%
Explanation:
Given that;
Net income = $30,955
Asset at the beginning of the year = $212,000
Asset at the end of the year = $258,000
Return on assets = Net income / Average total assets
But,
Average total assets = (Assets at the beginning of the year + Assets at the end of the year ) / 2
Average total assets = ($212,000 + $258,000) / 2
Average total assets = $235,000
Therefore,
Return on assets = ($30,955 / $235,000) × 100
Return on assets = 13.17%
how to vote correctly? explain your answer
What’s the answer here please
I think the answer is b but I could be wrong
THESE ARE TRUE OR FALSE!! PLEASE HELP ASAP!!
1. A letter of application is just a general business letter.
- 2. Getting a position interview is the main purpose of a letter of application.
3. It is important that a letter of application be businesslike and courteous.
– 4. It is not necessary to include a personal data sheet if you have a well-written and complete
letter of application.
5. It is a good idea to restrict yourself to just one good source of job leads.
6. Completing the position application form is not very important in the job-search process.
7. Some employers use ability tests to find out how well job applicants can do certain job
tasks.
8. Being dressed very informally for a position interview lets the employer know that you are
"cool" and will get along well with everybody.
9. A positive attitude toward work has many benefits.
10. When you leave a job, you should exit as soon as possible.
On July 1, Lopez Company paid $1,500 for six months of insurance coverage. No adjustments have been made to the Prepaid Insurance account, and it is now December 31. Zim Company has a Supplies account balance of $5,600 at the beginning of the year. During the year, it purchased $2,300 of supplies. As of December 31, a physical count of supplies shows $950 of supplies available.
Required:
Prepare the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017.
Answer:
Dr Supplies expense $6,950
Cr Supplies $6,950
Explanation:
Preparation of the adjusting journal entry to correctly report the balance of the Supplies account and the Supplies Expense account as of December 31, 2017.
Dr Supplies expense $6,950
Cr Supplies $6,950
($5,600+$2,300-$950)
(To record the balance of the Supplies account and the Supplies Expense account)
Beginning Supplies account balance $5,600
Add purchased $2,300
Less physical count of supplies $950
=$6,950
The following transactions occurred during July:
a. Received $1,090 cash for services provided to a customer during July.
b. Issued common stock for $5,800 cash.
c. Received $940 from a customer in partial payment of his account receivable which arose from sales in June.
d. Provided services to a customer on credit, $565.
e. Borrowed $7,900 from the bank by signing a promissory note.
f. Received $1,440 cash from a customer for services to be performed next year.
Required:
What was the amount of revenue for July?
Answer:
$1,655
Explanation:
Revenue results from transactions with customers. We recognize revenue when services or goods have been transferred to customers not as when they are paid.
Calculation of Revenue for July :
Transaction a $1,090
Transaction d $565
Total Revenue $1,655
therefore,
The amount of revenue for July is $1,655.