1/6
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced |
---|
No study sessions yet.
What advice would you give Millie?
Select all that apply.
Open a line of credit at a bank
Apply for a business loan
Take out a second mortgage
Open a business line of credit with a hardware store
Open a line of credit at a bank
Open a business line of credit with a hardware store
Millie quotes the job at $10,000 for two weeks of work. Her customers pay half the amount upfront, with the second half due at project completion.
Deferred revenue: $5,000
Material costs: $4,000
The utility trailer: $3,200
The job begins on August 17th
What does the corresponding accounting equation look like at this point?
Millie purchases the necessary materials from the hardware store on August 22nd for $4,000.
What does the entry for job materials look like?
What does the corresponding accounting equation look like for the purchase of the material?
Getting the equipment
On August 29th, Millie uses her line of credit at the bank to buy a utility trailer. The cost is $3,200.
What does the entry for the equipment purchase look like?
What does the corresponding accounting equation look like?