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8090 [49]
2 years ago
13

On September​ 1, Advantage Maintenance Company contracted to provide monthly maintenance services for the next five months at a

rate of​ $3,000 per month. The client paid Advantage​ $15,000 on September 1. The maintenance services began on that date. Assuming Advantage records deferred revenues using the alternative​ treatment, what would be the adjusting entry recorded on December​ 31?
Business
1 answer:
sveta [45]2 years ago
4 0

Answer:

Adjusting Entry

December 31,

Dr. Service Revenue     $3,000

Cr. Unearned Revenue $3,000

Explanation:

Using alternate treatment the cash received in advance is recorded as the revenue initially.

On September following entry was performed

Dr. Cash        $15,000

Cr. Revenue $15,000

At the end of the year services of 4 months have been performed and the amount of one month's service is received in advance until this date. It needs to be adjusted according to the accrual concept.

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The owner of Marshall Restaurant is disappointed because the restaurant has been averaging 7 comma 500 pizza sales per​ month, b
dybincka [34]

Answer:

\left[\begin{array}{ccccc}$Concept&$Base&6,000&7,500&10,000\\$Sales&6.25&37,500&46,875&62,500\\$Variable&-1.55&-9,300&-11,625&-15,500\\$Fixed&12,000&-12,000&-12,000&-12,000\\$Income&&16,200&23,250&35,000\\$Average per pizza&&2.7&3.1&3.5\\\end{array}\right]

Explanation:

Question elaborate budget for the range of 6,000 // 7,500 and 10,000 units considering the selling price per Pizza is 6.25 dollars.

a) we multiply the sales per unit by each volume sales

b) sale idea but with the variable cost

c) we also subtract the fied cost.

d) This give us the income on each volume.

Finally we also divide by the numbers of unit to determinate the gain per pizza.

4 0
2 years ago
Carmel Rugs is holding a 2-week carpet sale at Jean’s Club, a local warehouse store. CarmelRugs plans to sell carpets for $1,000
OlgaM077 [116]

Answer:

Instructions are listed below

Explanation:

Giving the following information:

CarmelRugs plans to sell carpets for $1,000 each. The company will purchase the carpets from a local distributor for $400 each, with the privilege of returning any unsold units for a full refund.

Jean’sClub has offered Carmel Rugs two payment alternatives for the use of space.

Option 1:

Fixed cost= $17,400 for the sale period

Option 2: 20% of the total revenues earned during the sale period.

Break-even point= fixed costs/contribution margin

Option 1:

Break-even point= 17400/(1000-400)= 29 carpets

Option 2:

Break-even point= (400+200)/(1000-400)=1 carpet (no fixed cost)

5 0
2 years ago
Ross has taken a new job at a restaurant. he is now in charge of the lunch shift. he helps determine the​ menu, works on marketi
umka21 [38]
The best option to choose is the Chief Chef or the Executive Chef. This type of chef is the one who is in charge of <span>the decision-making. He is the leader of the kitchen brigade. </span>
6 0
2 years ago
On November 15, 20X3, Chow Inc., a U.S. company, ordered merchandise FOB shipping point from a German company for €200,000. The
Marizza181 [45]

Answer:

$4,000 gain

Explanation:

Some information was missing:

the spot rates for euros were:

  • November 15, 20X3 $0.4955  per €1
  • December 10, 20X3 $0.4875  per €1
  • December 31, 20X3  $0.4675  per €1
  • January 10, 20X4 $0.4475  per €1

In Chow's December 31, 20X3, income statement, the foreign exchange gain is ?

the goods costed €200,000 x 0.4875 = $97,500 on December 10, 20x3

the goods costed €200,000 x 0.4675 = $93,500 on December 31, 20x3

Since the goods were sold FOB shipping point, we have to use the shipping date (December 10) to calculate the original price. By December 31, the price in US dollars had decreased by $4,000 resulting in a foreign exchange gain.

4 0
2 years ago
Fixed vs Variable cost preference. Bates operates a kiosk at a local mall, selling duck calls for $30 each. The variable cost to
GuDViN [60]

Answer:

Option 2 should be selected

Explanation:

Using a rational approach which option most benefit and have a minimum cost. We will use the break-even level here to decide which option should be selected.

Option 1

Price per call = $30

Variable cost per call = $18

Contribution = Sales  - Variable cost = $30 - $18 = $12

Fixed Cost = $15,000

Break-even point = Fixed cost / Contribution per call = $15,000 / $12 = 1,250 calls

Option 2

Price per call = $30

Variable cost per call = $18 + ( $30 x 10% ) = $18 + $3 = $21

Contribution = Sales  - Variable cost = $30 - $21 = $9

Fixed Cost = $9,000

Break-even point = Fixed cost / Contribution per call = $9,000 / $9 = 1,000 calls

Difference  = 1,250 calls - 1,000 calls = 250 calls

Option 2  is better option because it take 250 less calls to reach at break-even in the month. It should be selected.

8 0
2 years ago
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