ABC Company earns revenue from rendering advertising services to various clients. FDN Company received P22,000 for advertising services to be provided to clients and this was credited to a liability account.  At year end, 20% of advertising services has been provided. How much is the advertising revenue for the year ended December 31, 2021?

Q: Great has an annual payroll of $170.000. In addition, the company incurs payroll tax expense of 7%…

A: Income statement is the financial statement which is prepared to know the profitability of the…

Q: BMX Company has one employee. FICA Social Security taxes are 6.2% of the first $137,700 paid to its…

A: Payroll Taxes: The taxes that are paid by both the employer and the employee to support the…

Q: FruAgro Company has average annual gross receipts of $52 million annually. This year. FruAgro earned…

A: The business interest deduction is a tax provision that allows businesses to deduct the interest…

Q: During 2021, Wahid Co. generated revenues of $95,000. The company's expenses were as follows: cost…

A: Gross profit : Net sales is the sales revenue after deducting all the returns and allowances from…

Q: McElroy Inc., a marketing consulting firm, entered into the following three revenue contracts in…

A:

Q: During 2020, Best Corporation had cash and credit sales of $36,420 and $18,560, respectively. The…

A: Solution: Accrual basis net income for the year ended Dec 31, 2020 = Total sales - Operating…

Q: The following transactions apply to Walnut Enterprises for Year 1, its first year of operations:…

A: Statement of Cash Flow - Statement of Cash Flow is a financial statement. That includes inflow and…

Q: Required prepare a post-closing trial balance.

A: Post-closing trial balance is the trial balance that is prepared after closure and transfer of all…

Q: A manufacturing company prepays its insurance coverage for a three-year period. The premium for the…

A: Period costs: Period costs are not directly related to the production process of a product. Sales,…

Q: McElroy Inc., a marketing consulting firm, entered into the following three revenue contracts in…

A: Computation for the Total Transaction Price  Particulars Amount ($) Price for Contract A…

Q: Hayden Company expects to pay a 7% bonus on net income after deducting the bonus. Assume the company…

A: Journal entry is the first step in the accounting. It is recorded to keep accounting transaction in…

Q: In January, gross earnings in Concord Company were $40,000. The 7.65% FICA tax rate consists of the…

A: Payroll accounting is a part of accounting through which an employer can effectively manage payroll…

Q: Assume that Sample Company purchased factory equipment on January 1, 2017, for $90,000. The…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: The Cable TV Co., an accrual basis taxpayer, allows its customers to pay by the month ($10 each…

A: Lets understand the basics. In accruals basis, revenue is recorded when earned and not when it is…

Q: How much is the input tax?              How much is the value added tax payable?

A: VAT is Value Added Tax paid during purchases & collected while making sales the difference to be…

Q: A company sells 180,000 (sale price) of goods and collect sales tax of 8%. What current liability…

A: Current liability means the amount which the business has the obligation to pay within short term…

Q: Ferris Party Rental has 10 employees who earned a total of $25,000 in November ($2,500 each). The…

A: It is the amount of gross earnings of an employee reduced by the income tax to be withheld on the…

Q: What are fictional assets, and how do they work?

A: Asset is such resources that has future benefits. It has two types:- tañgible , intangible.…

Q: In January, gross earnings in Coronado Company were $36,000. The 7.65% FICA tax rate consists of the…

A: Net pay: It can be defined as the amount that is being received by the employees for taking home. It…

Q: [The following information applies to the questions displayed below.] BMX Company has one employee.…

A: Gross earnings is the amount before any deductions but after expenses. It is sales revenue less cost…

Q: During 2020, Reliable Corporation had cash and credit sales of $21,760 and $15,225, respectively.…

A: As per accrual basis of accounting, revenues and expenses are recognized when they are accrued…

Q: Dreighton Engineering Group receives royalties on a technical manual written by two of its engineers…

A: Prepare any journal entries Dreighton should record during 2016 related to the royalty revenue.

Q: Times-Roman Publishing Company reports the following amounts in its first three years of operation:…

A: On a company's balance statement, deferred subscription revenue is listed as a liability. Because…

Q: Pillar has an annual payroll of $135,000. In addition, the company incurs payroll tax expense of 8%…

A: Income statement is the financial statement which is prepared to know the profitability of the…

Q: Jolibi, Inc. enters into an agreement with Ronald’s Co., clothing the later with full authority to…

A: Step 1 - The initial Franchise revenue can only be recorded when the franchiser has established…

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.