Answer:
The reversing entries are outlined below
Explanation:
The accountant should reverse the entries made for salaries payable and interest receivable accruals.
December 31, 2021 (To document interest receivable)
DEBIT CREDIT
Interest receivable [$115,000*8%*3/12] 2300
Interest revenue 2300
December 31, 2021 (To document salaries payable)
DEBIT CREDIT
Salaries expense 7550
Salaries payable 7550
January 1, 2022 (To reverse entry from December 31, 2021)
DEBIT CREDIT
Interest revenue 2300
Interest receivable 2300
January 1, 2022 (To reverse entry from December 31, 2021)
DEBIT CREDIT
Salaries payable 7550
Salaries expense 7550
Answer:
c. Typically, they illustrate the elements that must be developed to generate the final deliverables.
Explanation:
The Work Breakdown Structure (WBS) serves as a method employed by project managers to systematically break down deliverables into smaller parts. It provides a structure that can be utilized for additional planning tasks. These are presented in an indented outline layout.
Answer:
0.45
Explanation:
Total asset turnover indicates the ratio of total assets to total revenue. It evaluates how effectively a company is employing its assets to generate sales.
The calculation is performed as follows: Net Sales / Average Total Assets.
Average total assets are determined by: (Asset at Start + Asset at End) / 2.
Using the given data:
Total revenue = $900,000 and total assets = $2,000,000.
$900,000/$2,000,000 = 0.45.
Note: Since the beginning and ending assets are not specified, we assume $2,000,000 represents the average assets.
The accurate answer is option (c). Explanation: According to the posed question, firms or organizations opt to reduce their inventory since higher spending on inventory translates to increased overall costs on other related inventory expenses. The rationale is that maintaining a fully stocked inventory results in rising costs associated with inventory upkeep, which is not advantageous for the business.
Response: $1091.61
Clarification:
Based on the inquiry, fifteen years ago, Mr. Fairhold invested $50,000 in a single-premium annuity contract, and this year, he began to receive a monthly payment of $1,300 that will last throughout his lifetime, with an expected total of $312,000. The taxable amount of each monthly payment for Mr. Fairhold is calculated as follows:
In accordance with the inquiry, Mr. Fairhold will recoup his $50,000 tax-free. The exclusion ratio is formulated by dividing the investment by the anticipated return. This yields:
= $50,000/$312,000
= 0.1603
Given that he receives a monthly payment of $1,300 and the exclusion ratio stands at 0.1603, the tax-free return on investment would then amount to:
= $1,300 × 0.1603
= $208.39
Taxable portion of the annuity payment will therefore be:
= $1300 - $208.39
= $1091.61
