Answer and Explanation:
The matching is as follows:
1. Deferred revenue - the cash would be received in the present period and the same would be reported as a revenue for the future period
2. Accrued expense - It would be recorded as an expense for a present period but the cash would be paid in the future
3. Prepaid expense - The cash is paid or the obligation is to the pay the cash in the present period but the expense would be recorded in the future period
4. Accrued revenue - the revenue is recorded in the present period but the cash would be collected in a future period
From a salesperson's perspective, the characteristics of a good manager: A. vary from manager to manager. B. conflict with the characteristics managers list as being traits of a good manager. C. are a rarity in modern sales organizations. D. include friendship and loyalty E. include flexibility and a team orientation.
Answer:
E. include flexibility and a team orientation.
Explanation:
Sales management is the process that maintains customers sales by planning, direction and control of the sales process.
It involves motivation, supervising, delegation, and equipping of the sales force.
This is a people oriented career and therefore requires flexibility and a team orientation. So the team is able to adapt to new strategies aimed at improving the sales process.
The following events apply to Montgomery Company for Year 1, its first year of operation: Received cash of $49,000 from the issue of common stock. Performed $68,000 of services on account. Incurred $10,500 of other operating expenses on account. Paid $41,000 cash for salaries expense. Collected $44,500 of accounts receivable. Paid a $5,000 dividend to the stockholders. Performed $11,500 of services for cash. Paid $7,500 of the accounts payable. Required a. Record the preceding transactions in general journal form. b. Post the entries to T-accounts and determine the ending balance in each account. c.
Answer:
Montgomery Company
a. Journal Entries
Account Title Debit Credit
Cash $49,000
Common stock $49,000
To record the issue of common stock for cash.
Accounts Receivable $68,000
Service Revenue $68,000
To record the performance of services on account.
Operating Expense $10,500
Accounts payable $10,500
To record operating expenses incurred on account.
Salaries Expense $41,000
Cash $41,000
To record the payment for salaries expense.
Cash $44,500
Accounts Receivable $44,500
To record cash collected on account.
Dividends $5,000
Cash $5,000
To record the payment of dividend to stockholders.
Cash $11,500
Service Revenue $11,500
To record the performance of services for cash.
Accounts payable $7,500
Cash $7,500
To record the payment on account.
b. T-accounts
Cash Account
Account Title Debit Credit
Common stock $49,000
Salaries expense $41,000
Accounts receivable 44,500
Dividends 5,000
Service revenue 11,500
Accounts payable 7,500
Balance 51,500
Totals $105,000 $105,000
Common Stock
Account Title Debit Credit
Cash $49,000
Accounts Receivable
Account Title Debit Credit
Service Revenue $68,000
Cash $44,500
Balance 23,500
Totals 68,000 68,000
Service Revenue
Account Title Debit Credit
Accounts receivable $68,000
Cash 11,500
Balance $79,500
Totals 79,500 79,500
Accounts Payable
Account Title Debit Credit
Operating Expense $10,500
Cash $7,500
Balance 3,000
Totals $10,500 $10,500
Operating Expense
Account Title Debit Credit
Accounts payable $10,500
Salaries Expense
Account Title Debit Credit
Cash $41,000
Dividends
Account Title Debit Credit
Cash $5,000
c. Trial Balance as of December 31, Year 1:
Account Title Debit Credit
Cash $51,500
Common stock $49,000
Accounts receivable 23,500
Service revenue 79,500
Accounts payable 3,000
Operating expense 10,500
Salaries expense 41,000
Dividends 5,000
Totals $131,500 $131,500
Explanation:
a) Transactions:
Received cash of $49,000 from the issue of common stock.
Performed $68,000 of services on account.
Incurred $10,500 of other operating expenses on account.
Paid $41,000 cash for salaries expense.
Collected $44,500 of accounts receivable.
Paid a $5,000 dividend to the stockholders.
Performed $11,500 of services for cash.
Paid $7,500 of the accounts payable.
b) Journal entries record the transactions for the first time. General ledger accounts are where the accounts are summarized. Trial balance shows the list of the account balances extracted from the general ledger.