Which statements is correct, Financial Accounting

Assignment Help:

In its first month in business, Jones, Inc. sold merchandise to customers on account for $119,800. It collected $72,000 on those sales during the first month and recorded Revenue for the period of $119,800. Cost of goods sold expense was $60,000, and other expenses, including taxes, were $30,000. Which one of the following statements is correct?
Question options:
Net income (loss) for the first month was ($18,000), and ending balance of accounts receivable was $47,80
Net income for the first month was $29,800, and ending balance of accounts receivable was $47,800.
Net income for the first month was $29,800, and cash collected from customers was $29,800.
Net income for the first month was $29,800, and ending balance of accounts receivable was $119,800.


Related Discussions:- Which statements is correct

What is its future value, An investment will pay $200 at the end of every o...

An investment will pay $200 at the end of every of the next 3 years, $400 at the end of Year 4, $600 at the end of Year 5, and $800 at the end of Year 6. If other investments of eq

Dividends-group accounts, DIVIDENDS The dividends that appear in the cons...

DIVIDENDS The dividends that appear in the consolidated statement of change in equity are for the holding company only. This is because the dividends of the subsidiary belong to

Prepare a cash budget, Question: The accountant of a company is prepari...

Question: The accountant of a company is preparing the cash budget for the first six months of 2011 and obtains the following information: Sales on credit, variable costs an

Consequences of adjudication-adjudication of debtor, Consequences of adjudi...

Consequences of adjudication The consequences of the making of the adjudication order are: 1. The order must be advertised in the gazette and a local paper; 2. The ownershi

Funding the investment by an issue of ordinary shares, Funding the investme...

Funding the investment by an issue of ordinary shares could tender several advantages to Springbank plc. Gearing would drop to 47% (3·5/7·4) fewer than half of the sector average o

FIAR VALUE ALLOCATIONS, How do I figure fair value of assets..2 year estima...

How do I figure fair value of assets..2 year estimated useful life and indefinite life recognized by purchased company

Determine the amount and character of the recognized gain, On May 2, 1986, ...

On May 2, 1986, Hannah acquired residential real estate for $450,000. Of the cost, $100,000 was allocated to the land and $350,000 to the building. On January 20, 2013, the buildin

When a company should recognize the revenue, When a company sells a product...

When a company sells a product for cash, it generally recognize the revenue. However, there are situations when it is not always clear when a company should recognize the revenue.

Shorter discounting periods, Occasionally cash flows may have to be discoun...

Occasionally cash flows may have to be discounted more often than once a year semi- monthly, daily, annually or quarterly.  The outcome of this is as fold (i)  The number of per

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd