Answer:
The adjusting entry that should be recorded at the end of the accounting period:
Debit Unearned revenue $500
Credit Revenue $500
Explanation:
Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made.
Bobcat Boards and Skis received $800 in advance for future services to be performed. At the end of the month, $300 worth of services were still owed to the customer.
The value of services were performed = $800 - $300 = $500.
The adjusting entry:
Debit Unearned revenue $500
Credit Revenue $500
Answer:
A) Its effectiveness is limited because it offers no opportunity for the salesperson to tailor the presentation to the needs of a specific customer
Explanation:
An standard memorized presentation is a sales presentation that is repeated over and over again to different clients. Actually it should include the best highlights and key selling points, but none the less, it is basically the same presentation every time. Depending on what you are selling and if you are a new salesperson, this might be effective, for example for selling pharmaceutical products, since you are always selling to the same audience, doctors.
But I sincerely doubt that this technique is effective most of the time or at last for most products. People have a tendency to be curious, so generally your clients will ask you things about your products and also your clients are not always the same. Imagine if you are trying to sell clothes, cars or furniture, etc., your sales pitch should not be same for all your clients.
Answer:
$34,243.28
Explanation:
Simple interest = P x r x t
where:
P = Principal
r = rate
T = time
Therefore simple interest = 20,000 x 6% x 4 = $4,800
Compound Interest = ((P*(1+r)^n) - P),
where P is the principal,
r is the annual interest rate = 7%, and
n is the number of periods = 4 years x 4 quarters a year.
Therefore compound interest = ((20000 (1+0.07)^16)-20000) = $39,043.28
Difference in interest = $39,043.28 - $4,800 = $34,243.28
Answer: $4,000
Explanation: Economic profit can be defined as the difference between the total revenues generated from operations and cost incurred plus any opportunity cost taken.
Opportunity cost is the cost of next best alternative foregone, that is loss of profits that occurred due to choosing one alternative over other. In the given case loss of interest and loss of highest salary are opportunity cost for Jacqui .
Hence,
economic profit = revenues - (interest + salary)
= $50,000 - ($1000 + $45,000)
= $4,000
Answer:
$470,425
Explanation:
The computation of the amount reported as bond payable is shown below:
<u>Particulars Interest at 4.5% Interest at 5% Amortized UnAmortized CV</u>
<u> discount discount </u>
Starting value $30,500 $469,500
($500,000 - $469,500)
June 30 $22,500 $23,475 $975 $29,525 $470,425
($500,000 × 4.5%) ($469500 × 5%)
The six months rate would be the half of the rates given in the question
