Answer: B) Deposit the money into Killian’s account, calculate his commission afterwards, then subtract that amount to determine the final sum owed to the principal, followed by issuing a check to the principal within 3 business days.
Explanation:
Killian has options for depositing the funds into the principal's account, an escrow account, or even into the broker's trust fund, depending on what is agreed upon with the seller; however, he cannot retain the funds for personal use. Killian is only entitled to earn his commission after the sale closes.
Advance commissions are not permissible, since various circumstances could prevent the successful execution of the deal, such as the home could be destroyed, the banking system collapsing, or the demise of either buyer or seller, among other unlikely events.
Required information Problem 20-1A Production cost flow and measurement; journal entries LO P1 [The following data pertains to the questions below.] Sierra Company produces soccer balls in two sequential processes: Cutting and Stitch production starting at the beginning of the Cutting process. Here's the data available: Raw materials inventory Work in process inventory-Cutting Work in process inventory Stitching Finished goods inventory Beginning Inventory $16,000 63,500 83,300 24, leo Ending Inventory $17,950 70,500 66,700 12,250 The following additional information elaborates on the production activities of the company for May Direct materials Raw materials purchased on credit Direct materials used in cutting Direct materials used in stitching 5 35.000 22,250 Direct Tab 12 of 2 Next > Saved Check my work mode: This indicates correctness or errors in your work The subsequent information describes production activities in the company: Direct materials Raw materials purchased on credit Direct materials used in Cutting Direct materials used in stitching $ 35,000 22,250 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 16,699 66,490 138, 40e Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 10,800 55,400 49,000 Raw materials purchased on credit Direct materials used in Cutting Direct materials used in stitching $ 35,00 22,250 Direct labor Direct labor-Cutting Direct labor-Stitching Total factory payroll paid (in cash) $ 16,689 66,480 138,400 Factory Overhead (Actual costs) Indirect materials used Indirect labor used Other overhead costs $ 10,800 55,400 49,000 Factory Overhead Rates Cutting (150% of direct materials used) Stitching (120% of direct labor used) Sales $336,000 Piex1 2 of 2 Completeu su Tor. It does Required information RM - April 30 RM purchases RM - May 31 Raw Materials (RM). 16.000 Indirect materials employed 35.000 Direct materials - Cutting 17.950 22 250 10.800 35.900 219 430 WIP - April 30 Direct materials - Stitching Direct labor - Cutting Overapolled overhead - Cutting % $ Work in Process (WIP) Stitching 83,300 Cost of goods sold 66,400 56,750® 79,680 66,700 Factory Overhead 1 2 of 2 Next > id Windows to be a 9 W WORMode
