How to calculate revenue?
Q: Accounting for revenues and expenses - give examples
A: The answer is provided as follows:
Q: Which of the following is an input method for recognizing revenue over time?
A: Cost to Cost Method While recognizing the revenue in the contract work there are different method…
Q: What is accrual accounting and how does it work?
A: Accrual accounting is a system of accounting wherein: Revenues are recognized as and when they are…
Q: Explain the income & expenditure and Receipts & payment? Draw the format with example? What is the…
A: Income and Expenditure Account: Its a summary of all incomes and expenditures of current accounting…
Q: Which of the following best describes revenue?
A: In simple accounting term revenue is the amount which company earn by selling goods or providing…
Q: How to determine the timing and measurement of revenue.
A: Revenue recognition principle is the principle that determines when and how much amount should be…
Q: how to compare between prepaid expenses and unearned revenue?
A: The adjustment for deferred items are made at the end of the year.
Q: Mention the key features of the Income and Expenditure Account.
A: Lets understand the basics. Income and expenditure account is a account prepared for non trading…
Q: what are the concepts of revenue recognition?
A: Definition: Revenue recognition principle: Revenue recognition principle states that every…
Q: Discuss the fundamental concepts related to revenue recognition and measurement.
A: Revenue Recognition: Revenue recognition is a Generally accepted accounting principle that tells…
Q: What is the revenue project?
A: Revenue refers to the income generated by the company by performing certain operations or business…
Q: Define the term revenue recognition.
A: Accounting principle: These are the guidelines which are to be applied while preparing the…
Q: What is the criteria to recognize revenue?
A: Introduction: Taxes, customs charges, earnings from state-owned firms, capital revenues, and foreign…
Q: When is Profit and Loss Account made? Why?
A: Profit and loss account: profit and loss account also called an income statement. Every business…
Q: What is the revenue recognition principle?
A:
Q: Describe the Fundamental Issues Related to Recognizing Revenue.
A: Revenue Recognition: Revenue recognition refers to the principle which tells about the conditions…
Q: Which type of revenue activity is correctly matched with the revenue recognition method?
A: The question is related with the revenue activity is correctly matched with the revenue recognition…
Q: Explain what is meant by the phrase matched with revenues
A: The term matched with revenues means to recognize expenses in the same period as the related…
Q: State the meaning of Income and Expenditure Account.
A: Accounting: It refers to the process of recording the financial transactions of an organization…
Q: When should DJD recognize revenue
A: The revenues in these type of contracts are based on two types of contracts. 1. Revenues under…
Q: Understand the fundamental concepts related to revenue recognition and measurement.
A: Revenue Recognition: Revenue recognition is a Generally accepted accounting principle that tells…
Q: What is an accrued revenue? Provide an example.
A: Revenue refers to the income that is received by a business from its business operations and…
Q: Briefly explain the relationship between assets, liabilities, and revenue.
A: Assets is the tangible or Intangible factor in the business, which can be valued in terms of money…
Q: What function does the receiving department serve in the revenue cycle?
A:
Q: describe, calculate, and interpret comprehensive income;
A: The income statement is considered an important financial statement as it helps in order to get the…
Q: What is Physical Systems of Revenue Cycle?
A: Revenue cycle Revenue cycle are divided into two a. physical phase…
Q: Explain the basic features of Income and Expenditure Account and ofReceipt and Payment Account.
A: Explain the basic features of Income and Expenditure Account and of Receipt and Payment Account.
Q: Explain the Criteria for Recognizing Revenue over Time.
A:
Q: Describe presentation and disclosure regarding revenue.
A: The core principle of IFRS 15 is that revenue is recognised when the goods or services are…
Q: What is revenue?
A: Accounting: Accounting is a system, or a process of collecting and organizing economic transactions,…
Q: What is Revenue Recognition?
A: The income statement is the one of the financial statements of the business.
Q: Classify Revenue or capital expenditure?
A: Introduction: Revenue Expenditure: Its a Recurring expenditure. Expenditure spent with in 12 months…
Q: What are the revenue credits? Give an example?
A: Meaning of Revenue Credit:Revenue Credit refers to the payments received in advance for services…
Q: How does accrued but uncollected revenue affect the bal-ance sheet?
A: Accrued revenue: It can be defined as the revenue that has already been earned by the business but…
Q: Define Revenue
A: The revenue is reported on the income statement of the company, and it is used to derive the net…
Q: Explain the function of the receiving department in the revenue cycle.
A:
Q: Discuss the major principle that describes recording revenues.
A: We have many accounting principles that will guide accountants in recording and reporting financial…
Q: What are the two most often used ways of accounting for revenue from by-products?
A: When the manufacturing entity is engaged in manufacturing the main product which is the main source…
Q: Service revenue belongs on which financial statement?
A: Service revenue is in the nature of Revenues account. Therefore, the Balance of Service revenues…
Q: What is the basic sequence of activities and accounting in a revenue and collection cycle?
A: Revenue Collection Cycle: A collection cycle is a process that begins when a customer approaches…
How to calculate revenue?
Step by step
Solved in 2 steps with 1 images
- The Hat Store had the following series of transactions for Year 2. Date Transaction Description January 1 Beginning inventory 45 units @ $21.50 March 15 Purchased 210 units @ $25.50 May 30 Sold 160 units @ $25.50 August 10 Purchased 275 units @ $26.50 November 20 Sold 345 units @ $40.75 Required a. Determine the quantity and dollar amount of inventory at the end of the year, assuming The Hat Store uses the FIFO cost flow assumption and keeps perpetual records. (Round your answers to 2 decimal places.)The following detail of transactions and balances were extracted from the records of Wasp Manufacturers a company manufacturing gas lights. The company make use of the periodic inventory system. During the year 20 400 units were completed.The company are registered for VAT and the VAT rate is 15%.01/07/20.1930/06/20.20Inventory - completed units:2 720 units? unitsBalancesInventory:RRRaw materials123 900151 600Work in progress75 45072 650Indirect materials1 3002 450The following information was obtained from the trial balance on 30 June20.1920.20Factory equipment720 800910 000Accumulated depreciation – factory equipment250 200290 250The following information was obtained from the trial balance on 30 JuneDebitCreditPurchases of raw materials (on credit)485 300Raw materials returned25 100Freight costs: raw materials15 600Indirect materials purchased (on credit)17 400Depreciation (note 8)?Railage on sales16 800Salaries and wages (note 1)525 200Insurance claim for damaged goods (note 3)3…You are reviewing the inventories of Sheep-Ahoy Company and found the following items: In the shipping room was a product costing P 264,000 marked "Hold for shipping instruction". This item was not included in the count although the purchased order of the customer was received on December 10, 2022. Actual shipment and billing happened on January 2, 2023. On December 28, goods costing P 232,960 were shipped to Holy Cow Company. The invoice accompanying the goods with selling price of P 300,000 was marked "on consignment". These goods were excluded from the inventory at year end. The company received merchandise costing P 92,500 on January 3, 2023. The invoice was received and recorded on January 4, 2023 with FOB shipping point ter. Shipment was made on December 31. The goods were included in the year-end inventory although these were not yet received when the physical count was taken. A customized product of a VIP customer was completed and in the shipping room at year-end. Actual…
- The Hat Store had the following series of transactions for Year 2. Date Transaction Description January 1 Beginning inventory 70 units @ $22.00 March 15 Purchased 195 units @ $26.00 May 30 Sold 170 units @ $26.00 August 10 Purchased 265 units @ $27.00 November 20 Sold 340 units @ $39.75 Required a. Determine the quantity and dollar amount of inventory at the end of the year, assuming The Hat Store uses the FIFO cost flow assumption and keeps perpetual records. (Round your answers to 2 decimal places.) Only typing answer Please answer explaining in detail step by step without table and graph thankyouRequired information Use the following information for the Exercises below. Skip to question [The following information applies to the questions displayed below.] Hemming Co. reported the following current-year purchases and sales for its only product. Date Activities Units Acquired at Cost Units Sold at Retail Jan. 1 Beginning inventory 250 units @ $12.00 = $ 3,000 Jan. 10 Sales 200 units @ $42.00 Mar. 14 Purchase 400 units @ $17.00 = 6,800 Mar. 15 Sales 360 units @ $42.00 July 30 Purchase 450 units @ $22.00 = 9,900 Oct. 5 Sales 420 units @ $42.00 Oct. 26 Purchase 150 units @ $27.00 = 4,050 Totals 1,250 units $ 23,750 980 units Exercise 5-7 Perpetual: Inventory costing methods-FIFO and LIFO LO P1 Required:Hemming uses a perpetual inventory system. 1. Determine the costs assigned to ending…The following information is taken from the financial statement of Al Reem Manufacturing LLC for the month of March 2021, the company follows FIFO method for material issue pricing: 1st March 2021: Opening balance – 50 units @ RO 4 Receipts: 5th March: 100 units @ RO 5 12th March: 200 units @ RO 4.50 24th March: 150 units @ RO 3 Issues: 2nd March: 30 units 18th March: 150 units 30th March: 100 units Use the above information and answer 32, 33 and 34 MCQs 1-Identify the total number of units received during the month of March 2021 for Al Reem Manufacturing LLC. a. 320 units b. 220 units c. 280 units d. 450 units 2-Identify the total number of units on 12th March 2021 for Al Reem Manufacturing LLC. a. 280 units b. 320 units c. 450 units d. 220 units 3-Identify the total receipts amount for the month of March 2021 for Al Reem Manufacturing LLC. a. RO 1,285 b. RO 1,480 c. RO 765 d. RO 1,850
- RMPW makes and sells premium Ultimate Ale and related products.All purchases and sales are made On credit . RMPW uses the perpetual inventory system. They also use the 3-way match to verify invoices and record purchases. Analyze the events below and complete the requirements. 1. June 15: Shipped and billed (sold) 50 cases of ale to Eagles bar for $500. Prepare invoice number 200. The ale cost RMPW $300. 2. July 17: Received $2,000 from Longhorn (customer) for goods that were delivered and billed the prior month. 3. July 31: Received invoice for $1000 from TD Hops for raw materials that have been received and ordered. RMPw performed the 3 way match. (Assume RMPW records purchases when they perform the 3way match) Requirements: for each event identify A) account (s) debited B) account (s) credited C) the special journal used to record the event D) any subsidiary ledgers updated from the event.Reese Manufacturing Company manufactures and sells a limited line of products made to customer order. The company uses a perpetual inventory system and keeps its accounts on a calendar year basis. A 6-column spreadsheet is presented on page 1100. Additional information needed to prepare the income statement and schedule of cost of goods manufactured is as follows: REQUIRED 1. Prepare an income statement and schedule of cost of goods manufactured for the year ended December 31,20--. 2. Prepare a statement of retained earnings for the year ended December 31,20--. 3. Prepare a balance sheet as of December 31, 20--. 4. Prepare the adjusting, closing, and reversing entries.John Neff owns and operates Waikiki Surf Shop. A year-end trial balance is provided on page 561. Year-end adjustment data for the Waikiki Surf Shop are shown below. Neff uses the periodic inventory system. Year-end adjustment data are as follows: (a, b)A physical count shows that merchandise inventory costing 51,800 is on hand as of December 31, 20--. (c, d, e)Neff estimates that customers will be granted 2,000 in refunds of this years sales next year and the merchandise expected to be returned will have a cost of 1,200. (f)Supplies remaining at the end of the year, 600. (g)Unexpired insurance on December 31, 2,600. (h)Depreciation expense on the building for 20--, 5,000. (i)Depreciation expense on the store equipment for 20--, 3,000. (j)Wages earned but not paid as of December 31, 1,800. (k)Neff also offers boat rentals which clients pay for in advance. Unearned boat rental revenue as of December 31 is 3,000. Required 1. Prepare a year-end spreadsheet. 2. Journalize the adjusting entries. 3. Compute cost of goods sold using the spreadsheet prepared for part (1).
- Review the following transactions, and prepare any necessary journal entries for Sewing Masters Inc. A. On October 3, Sewing Masters Inc. purchases 800 yards of fabric (Fabric Inventory) at $9.00 per yard from a supplier, on credit. Terms of the purchase are 1/5, n/40 from the invoice date of October 3. B. On October 8, Sewing Masters Inc. purchases 300 more yards of fabric from the same supplier at an increased price of $9.25 per yard, on credit. Terms of the purchase are 5/10, n/20 from the invoice date of October 8. C. On October 18, Sewing Masters pays cash for the amount due to the fabric supplier from the October 8 transaction. D. On October 23, Sewing Masters pays cash for the amount due to the fabric supplier from the October 3 transaction.Qualcomm Incorporated (QCOM) is a leading developer and manufacturer of digital wireless telecommunications products and services. Qualcomm reported the following inventories (in millions) in the notes to recent financial statements: a.Why does Qualcomm report three different inventories? b. What costs are included in each of the three inventory accounts?Record journal entries for the following transactions of Barrera Suppliers. A. May 12: Sold 32 deluxe hammers at $195 each to a customer, credit terms 10/10, n/45, invoice date May 12; the deluxe hammers cost Barrera Suppliers $88 each. B. May 15: Customer returned 6 hammers for a full refund. The merchandise was in sellable condition at the original cost. C. May 20: Customer found 2 defective hammers but kept the merchandise for an allowance of $200. D. May 22: Customer paid their account in full with cash.