Answer:
A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement.
Explanation:
As we know that the revenues and gains contains the normal credit balance while on the other hand the expenses and losses contains the normal debit balance and both are reported on the income statement
The gain would be reported on the credit side of the income statement and the loss would be reported on the debit side of the income statement
So the same is relevant too
A gain or a loss is the excess or deficit in the difference of the costs or the base value and the selling price of the goods or services. The gain or loss incurred by a business becomes part of the Income Statement.
The accurate statement for the recording of the gain or loss is:
Option B. A gain has a Credit balance and is shown on the Income Statement. C. A loss has a Debit balance and is shown on the Income Statement.
As per the dual entry bookkeeping system, all the revenues and gains have a general credit balance while the normal balance of the expenses and losses is a debit balance.
The income statement is the financial statement that records the incomes, gains, expenses, and costs occurred in the particular financial year.
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The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory. What would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $40 per product
Answer:
The correct option is d. Increase by $19,500.
Explanation:
Note: This question is not complete. The complete question is therefore provided before answering the question as follows:
Pluto Incorporated provided the following information regarding its single product:
Direct materials used = $240,000
Direct labor incurred = $420,000
Variable manufacturing overhead = $160,000
Fixed manufacturing overhead = $100,000
Variable selling and administrative expenses = $60,000
Fixed selling and administrative expenses = $20,000
The regular selling price for the product is $80. The annual quantity of units produced and sold is 40,000 units (the costs above relate to the 40,000 units production level). The company has excess capacity and regular sales will not be affected by this special order. There was no beginning inventory.
What would be the effect on operating income of accepting a special order for 1,000 units at a sale price of $40 per product? Note: The special order units would not require any variable selling and administrative expenses.
a. Decrease by $19,500
b. Decrease by $18,000
c. Increase by $18,000
d. Increase by $19,500
The explanation of the answer is now provided as follows:
We first calculate the expected total relevant cost of the special order as follows:
Direct materials cost per unit = Direct materials used / Annual units = $240,000 / 40,000 = $6.00
Direct labor cost per unit = Direct labor incurred / Annual units = $420,000 / 40,000 = $10.50
Variable manufacturing overhead per unit = Variable manufacturing overhead / Annual units = $160,000 / 40,000 = $4.00
Expected special order total relevant cost = (Direct materials cost per unit + Direct labor cost per unit + Variable manufacturing overhead per unit) * Special order units = ($6.00 + $10.50 + $4.00) * 1,000 = $20.50 * 1,000 = $20,500
Expected revenue from the special order = Special order units * Special order selling price per unit = 1,000 * $40 = $40,000
Expected profit from the special order = Expected revenue from the special order - Expected special order total relevant cost = $40,000 - $20,500 = $19,500
Since the expected profit from the special order is $19,500, it therefore implies that accepting it would increase operating income by $19,500.
Therefore, the correct option is d. Increase by $19,500.
I know that Stephen has a lot of money. His parents drive Mercedes. His dogs wear cashmere sweaters, and he paid cash for his Hummer. The conclusion of the argument is ____________
Answer: I know that Stephen has a lot of money.
Explanation:
The whole point of the reasoning behind this thought by the speaker was to prove that Stephen had a lot of money.
This is why the speaker explained why they believed that Stephen had a lot of money. They talked about the car his parents drove, the cashmere sweaters his dogs wear and his use of cash to pay for his Hummer all to come to the conclusion that Stephen has a lot of money.
On 1/1/27, Frankfort Company sold 100 components at $700 each. All sales were cash sales. Estimated total cost servicing the components was $1,300 each year of the three-year-warranty. Frankfort spent $1,400 servicing the components in 2027. This is considered an assurance-type warranty. Using the Expense Warranty approach, what is the 12/31/27 Warranty Liability
Answer:
the 12/31/27 Warranty Liability is $2,500
Explanation:
An assurance type warranty gives a customer assurance that the Good or Service will function or work as intended.
There is no option on the customer to take the warranty or not. Therefore, an assurance type warranty is not a separate performance obligation for revenue recognition.
Assurance type warranties are accounted for in terms of IAS 37 : Provisions.
Entries that Frankfort Company will have made Using the Expense Warranty approach will be :
Date : 1/1/27
Debit : Warranty Expense $1,300
Credit : Warranty Provision $1,300
Providing for amount it will cost the entity in 2027
Date : 12/31/27
1st increase the provision
Debit : Warranty Expense $100
Credit : Warranty Provision $100
then utilize the provision
Debit : Warranty Provision $1,400
Credit : Cash $1,400
When warranty claim is subsequently received
Conclusion :
Warranty liability remaining = $3,900 - ($1,300 + $100)
= $2,500
Nebraska Inc. issues 4,100 shares of common stock for $131,200. The stock has a stated value of $15 per share. The journal entry to record the stock issuance would include a credit to Common Stock for
Answer:
$61,500
Explanation:
Based on the information given if the company
issues 4,100 shares of common stock for the amount of $131,200 in which the stock has a stated value of $15 per share which means that The journal entry to record the stock issuance would include a credit to Common Stock for $61,500 Calculated as:
Credit to Common Stock=4,100 shares*$15 per share
Credit to Common Stock=$61,500
) A price change would have the largest income effect on a A) magazine. B) tablet computer. C) piece of clothing. D) car.
Answer:
d
Explanation:
A change in price leads to two effects :
The income effect The substitution effectThe income effect is the change in quantity demanded as a result of a change in real income which affects the consumes purchasing power.
A car constitutes a very large part of a consumers expenditure due to its cost. Thus, the income effect for a car would be the largest
The substitution effect is the change in demand as a result of change in the price of the good compared to the price of another substitute good.
Explain how current economic indicators, such as inflation and unemployment, affect you personally. Explain how they may affect you as a manager
Answer is given below :
Explanation:
In an economy, inflation raises the price level of the basket of goods and services, thus reducing the demand for this affected good and services. This decrease will increase the listings in companies as sales of these goods and services will decrease. Production is the work of labor and capital, NRSE inflation is reduced and there is no need for more production at the company level to reduce the inventory sold, which allows firms to reduce costs in the form of labor cost and other variable costCompanies tend to sell their untold innovations due to declining sales and top-downs that reduce profit margin. Therefore managers are concerned about the profitability of the company and their bonus.When trade barriers began to fall, what was the motivation for much of the foreign direct investment by non-U.S. firms
Answer:
The motivations were all the advantages that the U.S. market offers.
These advantages are many, because the U.S. is a developed country, with a very large population, and a robust legal system that protects private property, including the property of non U.S. firms that invest in the country.
For these reasons, once trade barriers began to fall, many non U.S. firms took advantage of the new opportunities, and started to invest in the U.S. market.
Copy Center sells laser printers and supplies. Assume Copy Center started the year with containers of ink (average cost of each, FIFO cost of each, LIFO cost of each). During the year, Copy Center purchased containers of ink at and sold units for each. Copy Center paid operating expenses throughout the year, a total of . Ignore income taxes for this exercise. Prepare Copy Center's income statement for the current year ended December 31 under the average, FIFO, and LIFO inventory costing methods. Include a complete statement heading.
Answer:
The question is incomplete, so I looked for a similar one:
Copy Center sells laser printers and supplies. Watson Copy Center started the year with 90 containers of ink (average cost of $ 8.50 each, FIFO cost of $ 8.90 each, LIFO cost of $ 7.80each). During the year, Watson Copy Center purchased 720 containers of ink at $ 10.30 and sold 600 units for $ 19.75 each. Watson Copy Center paid operating expenses throughout the year, a total of $ 5000. Watson Copy Center's income statement-excluding the effects of income tax under each of theaverage-cost, FIFO, and LIFO inventory costing methods--is given.
Total sales revenue = 600 x $19.75 = $11,850
COGS under weighted average = {[(90 x $8.50) + (720 x $10.30)] / 810} x 600 = $6,060
COGS under FIFO = (90 x $8.90) + (510 x $10.30) = $6,054
COGS under LIFO = 600 x $10.30 = $6,180
Copy Center
Income Statement for the year 202x
(using weighted average)
Sales revenue $11,850
COGS ($6,060)
Gross profit $5,790
Operating expenses ($5,000)
Net income $790
Copy Center
Income Statement for the year 202x
(using FIFO)
Sales revenue $11,850
COGS ($6,054)
Gross profit $5,796
Operating expenses ($5,000)
Net income $796
Copy Center
Income Statement for the year 202x
(using LIFO)
Sales revenue $11,850
COGS ($6,180)
Gross profit $5,670
Operating expenses ($5,000)
Net income $670
When Tyree Elliott was hired as a public relations advisor to the CEO of a Fortune 500 company, he welcomed the help he received from Rae Rogers, a senior manager. Rogers was able to show Elliott the places where trouble was likely to occur, the likes and dislikes of the CEO, and how to do the best job possible. Which of the following statements describes what was going on in this situation?
a. Elliott was given no training at all.
b. Elliott was assuming the role of an apprentice.
c. Rogers was using off-the-job training techniques.
d. Rogers was assuming the role of a mentor.
Answer:
d. Rogers was assuming the role of a mentor.
Explanation:
Remember, the term mentor is usually assigned to someone who is more experienced, and who provides valuable and trusted advice to someone with lesser experience.
Based on this description, and the fact that we are told that "Rogers was able to show Elliott the places where trouble was likely to occur," makes Roger fit the role of a mentor.