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2 years ago

During January, the following selected transactions occurred.

Business

1 answer:

tester [92]2 years ago

5 0

Answer:

The journal entries are given as follows;

Explanation:

Jan 5

Cash Dr.$20,520

Sales Tax Payable 20,520-(20,520/1.08) Cr.$1,520

Inventory Cr.$19,000

Unearned Service Revenue Dr.$12,000

Service Revenue Cr.$12,000

Employee payroll Expense Dr.$452,000

Social Security payable Cr.$3,978

Federal Income Tax payable Cr.$5,686

State Income Tax payable Cr.$1,706

payroll Expenses payable (452,000-3,978-5,686-1,706) Cr.$440,630

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Crimson Corp. was organized as a calendar-year corporation in January, Year 1, incurring $51,000 in qualified organizational exp

Lelechka [254]

Answer:

Total deductible organization expenses is $ 6,611

Explanation:

Upto $ 5000 in qualifying organization expenses are deductible in the year they are incurred , with the amount reduced by the amount by which total organizational expenses exceed $50,000. With a total of $51,000 Crimson corp could deduct $ 4000 .

In addition , the remaining $ 47,000 is amortized over 15 years or 180 months , begining in the period in which the entity commences operations. Since crimson began operaions in March 2016 , amortization would be for 10 months ( march 2016 - december 2016 )

Amoritzation for march 2016 to december 2016 = 10 / 180 * $47,000

= $2611

Total deductible organization expenses = $4,000 + $ 2,611

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2 years ago

5. The time required and costs involved in an external audit are much higher as compared to internal audits.

harina [27]

Answer:

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2 years ago

The risks of vertical integration include all of the following EXCEPT: a. costs and expenses associated with increased overhead

aleksandrvk [35]

Answer: Lack of control over valuable assets

Explanation: In simple words, vertical integration refers to a process under which an organisation combines two or more stages of production which were previously performed by any other company.

The vertical integration is done where the company wants to get more hold on its supply chain with the ultimate objective of having better control over valuable assets.

Hence from the above we can conclude that the correct option is C.

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2 years ago

Blowing Sand Company has just received a one-time offer to purchase 10,000 units of its Gusty model for a price of $22 each. The

VLD [36.1K]

Answer:

a. Accept the order

b. Increase in short-term profit of $50,000

Explanation:

Note : Blowing Sand has "enough excess capacity" this means that fixed cost will be the same in the range or they will be ocurred whether or not the special order is accepted.

Therefore fixed costs are Irrelevant for this decision.

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Less Variable Costs ( 10,000 units × $17each) ($170,000)

Net Income $50,000

The special order will result in an increase in short term profit of $50,000. Therefore, Blowing Sand Company should accept the order.

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3 years ago

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Andrej [43]

Answer:

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1 year ago