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DaniilM [7]
2 years ago
15

Our company has signed a contract on June 15, 2016, to perform services beginning on June 16, 2016. We will earn $12,000 per mon

th. We will receive payment for our services on July 15, 2016. What dollar amount fees earned should we record on our June 30, 2016 adjusting entry
Business
1 answer:
Kazeer [188]2 years ago
4 0

Answer:

The Service revenue should be recorded on June 30, 2016 adjusting entry is $6,000

Explanation:

According to the given data Service revenue = $12,000 per month

Since services will begin from June 16, thus on June 30, service revenue should be recorded for half month only.

We would calculate the Half month service revenue as follows:

Half month service revenue = $12,000 x 1/2

Half month service revenue = $6,000

Therefore the Service revenue should be recorded on June 30, 2016 adjusting entry = $6,000

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Which of the following reports is an example of an analytical report? a. A report outlining the new company procedure for report
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(C) A report recommending an anti-terrorism security system for mass transit

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Classify each property according to whether it is displayed by metals or by nonmetals
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2 years ago
1. On November 16, 2019, a U.S. company makes a sale to a customer in Germany. Under the sale terms, the customer will pay the c
Vlada [557]

Answer:

$125,000

Explanation:

Given the following resorted data from the question:  

                                          Spot Rate                   Forward Rate for

                                                                          March 16, 2020 Delivery

November 16, 2019             $1.250                               $ 1.248

December 31, 2019               1.260                                 1.255

March 16, 2020                    1.265                                  1.265

The applicable rate to use to calculate the amount the company will report sales revenue on its 2019 income statement is the spot rate ruling on the date the company made the sale to the customer in Germany, i.e. $1.250 on November 16, 2019.

Therefore, we have:

Sales revenue = €100,000 * $1.250 = $125,000.

Therefore, the amount the company will report sales revenue on its 2019 income statement is $125,000.

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2 years ago
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