Answer: 43.8 days
Explanation:
Average days of school inventory can be calculated as:
= Average inventory balance/(Cost of goods sold/365)
= $3million/($25 million/365)
= $3 million/$68493.15
= 43.8 days
On May 1, 2018, Kelalani purchased land for $88,000 for use in her business. She sold it on May 1, 2019, for $82,000. If there are no other sales of business or trade property, how is this loss treated for tax purposes on Kelalani's return?
1. $6,000 Section 1231 loss.
2. $6,000 ordinary loss.
3. $6,000 short-term capital loss.
4. $6,000 long-term capital loss.
Answer: $6000 short term Capital loss
Explanation:
From the question, we are informed that on May 1, 2018, Kelalani purchased land for $88,000 for use in her business and that she sold it on May 1, 2019, for $82,000.
We are further told that there are no other sales of business or trade property. Based on this scenario, the loss treated for tax purposes on Kelalani's return will be a short term capital loss of $6000($88,000 - $82,000). It is a short term capital loss because the loss is for a period of a year or less.
Royal Enterprises has presented the following information for the past three months operations:
Month Units Average Cost
June 3,300 $ 11.80
July 5,700 $ 7.80
August 6,900 $ 7.00
a. Using the high-low method, calculate the fixed cost per month and variable cost per unit. (Round your variable cost to 2 decimal places.)
b. What would total costs be for a month with 5,300 units produced?
Answer:
Instructions are below.
Explanation:
Giving the following information:
Month Units Average Cost
June 3,300 $ 11.80=38,940
July 5,700 $ 7.80 = 44,460
August 6,900 $ 7.00 = 48,300
To calculate the unitary variable cost and fixed costs under the high-low method, we need to use the following formulas:
Variable cost per unit= (Highest activity cost - Lowest activity cost)/ (Highest activity units - Lowest activity units)
Variable cost per unit= (48,300 - 38,940) / (6,900 - 3,300)
Variable cost per unit= $2.6
Fixed costs= Highest activity cost - (Variable cost per unit * HAU)
Fixed costs= 48,300 - (2.6*6,900)
Fixed costs= $30,360
Fixed costs= LAC - (Variable cost per unit* LAU)
Fixed costs= 38,940 - (2.6*3,300)
Fixed costs= $30,360
Now, the total cost for 5,300 units:
Total cost= 30,360 + 2.6*5,300
Total cost= $44,140
Present value concept
1. What single investment made today, earning 5% annual interest, will be worth $4,400 at the end of 5 years?
2. What is the present value of $4,400 to be received at the end of 5 years if the discount rate is 5%?
3. What is the most you would pay today for a promise to repay you $4,400 at the end of 5 years ifyour opportunity cost is 5%?
4. Compare, contrast, and discuss your findings in part a through c.
A. A single investment made today, earning 5% annual interest, worth $4,400 at the end of 5 years is $______.
B. The present value of $4,400 to be received at the end of 5 years, the discount rate is 5% is______.
C. The most you would pay today for a promise to repay you $4,400 at the end of 5 years if your opportunity cost is 5% is $_____.
D. Compare, contrast, and discuss your findings in part a through c.
A. The annual interest rate is also called the discount rate or the opportunity cost.
B. In all three cases, you are solving for the present value, PV, which is $3,447.52.
C. In all three cases, the answer is $$3,447.52. In part a, it is the payment, PMT. In part b, it is the present value, PV. In part c, it is the future value, FV.
D. In parts a and c, $4,400 is the future value, FV. In part b, $4,400 is the present value, PV. Therefore, parts a and c have the same answer, while part b has a different answer.
Answer:
The present value concept
1. The single investment made today, earning 5% annual interest that will be worth $4,400 at the end of 5 years is:
$3,447.52
2. The present value of $4,400 to be received at the end of 5 years if the discount rate is 4% is:
$3,447.52
3. The most I would pay today for a promise to repay me $4,400 at the end of 5 years if my opportunity cost is 5% is:
$3,447.52
4. A. A single investment made today, earning 5% annual interest, worth $4,400 at the end of 5 years is $__3,447.52____.
B. The present value of $4,400 to be received at the end of 5 years, the discount rate is 5% is__$3,447.52____.
C. The most you would pay today for a promise to repay you $4,400 at the end of 5 years if your opportunity cost is 5% is $__3,447.52___.
5.
A. The annual interest rate is also called the discount rate or the opportunity cost.
B. In all three cases, you are solving for the present value, PV, which is $3,447.52.
Explanation:
You will need to invest $3,447.52 at the beginning to reach the future value of $4,400.00.
FV (Future Value) $4,400.00
PV (Present Value) $3,447.512
N (Number of Periods) 5.000
I/Y (Interest Rate) 5.000%
PMT (Periodic Payment) $0.00
Starting Investment $3,447.52
Total Principal $3,447.52
Total Interest $952.48
Qualitative Risk Assessment. Imagine that you are a member of a project team that has been charged with developing a new product for the residential building industry. Using a qualitative risk analysis matrix, develop a risk assessment for a project based on the following information: : Identified risk factors Likelihood 1. Key team members pulled off project 1. High 2. Chance of economic downturn 2. Low 3. Project funding cut 3. Medium 4. Project scope changes 4. High 5. Poor spec. performance 5. Low Based on this information, how would you rate the consequences of each of the identified risk factors? Why? Construct the risk matrix and classify each of the risk factors in the matrix.
Answer:
As a member of a project team charged with developing a new project i will firstly address the risk factors with very high consequences first because this risk factors if not addressed will posses a very serious issue when trying to carry out the new project.
Explanation:
Attached below is the detailed solution
As a member of a project team charged with developing a new project i will firstly address the risk factors with very high consequences first because this risk factors if not addressed will posses a very serious issue when trying to carry out the new project.
The following assets in Jack’s business were sold in 2020: Asset Holding Period Gain/(Loss) Office equipment 6 years $1,100 Automobile 8 months ($ 800) ABC stock (capital asset) 2 years $1,400 Office equipment, purchased for $8,000, had a zero adjusted basis. The automobile was purchased for $2,000 and sold for $1,200. The ABC stock was purchased for $1,800 and sold for $3,200. In 2020 (the year of sale), Jack should report what amount of net capital gain and net ordinary income?
Answer:
Net capital gain = $1,400
Net ordinary income = $300
Explanation:
Long term Capital gain = $1,400 from sale of stock since it was hold for 2 years (more than 1 year)
Ordinary gain = $1,100 - $800 = $300 since automobile was 6 months old and equipment had zero basis
The Heinlein and Krampf Investment firm has just been instructed by one of its clients to invest $250,000 for her money. The client has a good deal of trust in the investment firm, but she has also her own ideas about the distribution of funds being invested. In particular, she requests the following: - municipal bonds should constitute at least 20% of the investment - at least 40% of the investment should be placed in a combination of electronic firms, aerospace firms, and drug manufacturers. - no more than 50% of the amount invested in municipal bonds should be placed in nursing home stock. Subject to these constraints, the client's goal is to maximize her return on investments. The investment firm has the following estimated rate of returns on investment choices: 5.3% Electronics Investment Estimated rate of return (%) Los Angeles Municipal Bonds Thompson Electronics 6.8% United Aerospace 4.9% Palmer Drugs 8.4% Happy Days Nursing Homes 11.8% What is the optimal rate of return for the client's portfolio
Answer:
Using Solver, the optimal solution is to invest $50,000 in Los Angeles municipal bonds, $175,000 in Palmer Drugs and $25,000 in Happy days Nursing Homes. Maximum yearly profit = $20,300
Explanation:
you have to maximize 0.053M + 0.068E + 0.049A + 0.084D + 0.118N
where:
M = Los Angeles municipal bondsE = Thompson ElectronicsA = Unites AerospaceD = Palmer DrugsN = Happy Days Nursing Homethe constraints are:
M + E + A + D + N = 250,000
M ≥ 50000
E + A + D ≥ 100000
N ≤ 0.5M
M ≥ 0
E ≥ 0
A ≥ 0
D ≥ 0
N ≥ 0
If the elasticity of demand for college textbooks is -0.1, and the price of textbooks increases by 20%, how much will the quantity demanded change, and in what direction
Answer:
The quantity demanded will decrease by 2%.
Explanation:
This can be determined using the elasticity formula as follows:
e = Percentage change in quantity demanded change / Percentage change in price ........ (1)
Where;
e = elasticity of demand for college textbooks = -0.1
Percentage change in quantity demanded change = ?
Percentage change in price = 20%
Substituting the values into equation (1) and solve for Percentage change in quantity demanded change
-0.1 = Percentage change in quantity demanded change / 20%
Percentage change in quantity demanded change = -0.1 * 20% = -0.02, or -2%
Since the Percentage change in quantity demanded change is negative 2%, it implies that the quantity demanded will decrease by 2%.
Flesch Corporation produces and sells two products. In the most recent month, Product C90B had sales of $24,000 and variable expenses of $6,480. Product Y45E had sales of $29,000 and variable expenses of $11,010. The fixed expenses of the entire company were $32,280. If the sales mix were to shift toward Product C90B with total dollar sales remaining constant, the overall break-even point for the entire company: Multiple Choice could increase or decrease. would increase. would not change. would decrease.
Answer:
would decrease.
Explanation:
The computation is shown below:
As we know that
Contribution = Sales - Variable Expenses
And,
PV Ratio = Contribution margin ÷ Sales
So, PV Ratio of C90B is
= ($24,000 - $6,480) ÷ $24,000
= 73%
And PV Ratio of Y45E is
= ($29,000 - $11,010) ÷ ($29,000)
= 62.03%
It increases in overall PV ratio also overall contribution would be more that reduced the break even point
what is the function of product and service management
A middle-aged aircraft mechanic is laid off from his job after improved technology (robotics and machine learning) reduces the need for workers. This type of:______
Answer: Structural unemployment
Explanation:
A middle-aged aircraft mechanic is laid off from his job after improved technology (robotics and machine learning) reduces the need for workers. This type of Structural unemployment.
Structural unemployment is an unemployment that occurs when the workers doesn't have the necessary skills which are required for the job and this occurs when there's improvement in technology or when the economy undergoes changes. In this case, their skills become obsolete.
BE5-12 Keyser beverage company reported the following items in the most recent year
Tuition of $3400 is due when the spring term begins, in 4 months. What amount should a student deposit today, at 12%, to have enough to pay tuition
Answer: The student should deposit= $3,272.40
Explanation:
The formula we need to use is
FV = P ( 1 + rt )
where:
F V = the future value.
P = the principal amount.
r= the rate of interest. = `12%= 0.12
t= time in years. = 4/12= 1/3 =O.3333
FV = P ( 1 + rt )
$3,400 = P (1 + 0.12 X 0.3333)
$3,400 = P (1 + 0.039)
$3,400 = P (1.039)
P= 3400 /1.039= $3,272.40
On December 31, 2019, The Bates Company's revenue is $440,000 and expenses total $340,000 before consideration of the following: Accrued wages total $21,000; Accrued revenues total $56,000; Depreciation expense is $27,000; Rental revenue of $7,000 was earned; the rent from a tenant was initially recorded by Bates as unearned rent revenue; The income tax rate is 40% of income before income taxes. What is Bates' net income after consideration of the above information
Answer:
Explanation:
Revenue = $440,000
Expenses = $340000
Accrued wages = $21000
Accrued revenues = $56000
Depreciation exp = $27000
Rental value earned but not recorded = $7000
Income tax rate = 40%
Total revenue = 440000 +56000 + 7000 = $503000
Total expenses = 340000 + 21000 + 27000 = $388000
Income before tax = 503000 - 388000 = $115000
income tax = 115000 x .4 = $46000
Net income = 115000 - 46000 = $69000 .
. Which two of the four basic tax planning variables increase the value of Vern's investment? (Select All That Apply).
Answer and Explanation:
Two tax planning variables that increase investment include:
Time period variable; this variable considers when the transaction occurs during the year and tax is calculated based on this. The present value of tax cost reduces tax cost as tax is not collected immediately but is deferred.
Character variable: this variable considers the nature of the transaction and then taxes based on this, such as income from capital gain when an asset is sold, is taxed differently using a different rate from tax on operating income
our firm is contemplating the purchase of a new $615,000 computer-based order entry system. The system will be
Answer:
Almost the entire question is missing, so I looked it up:
Your firm is contemplating the purchase of a new $615,000 computer-based order entry system. The system will be depreciated straight-line to zero over its five-year life. It will be worth $67,000 at the end of that time. You will save $245,000 before taxes per year in order processing costs, and you will be able to reduce working capital by $82,000 (this is a one-time reduction). If the tax rate is 30 percent, what is the IRR for this project?
depreciation expense per year = $615,000 / 5 = $123,000
initial outlay = -$615,000 + $82,000 = -$533,000
NCF year 1 = [($245,000 - $123,000) x 70%] + $123,000 = $208,400
NCF year 2 = [($245,000 - $123,000) x 70%] + $123,000 = $208,400
NCF year 3 = [($245,000 - $123,000) x 70%] + $123,000 = $208,400
NCF year 4 = [($245,000 - $123,000) x 70%] + $123,000 = $208,400
NCF year 5 = [($245,000 - $123,000) x 70%] + $123,000 + ($67,000 x 70%) = $255,300
IRR = 28.77%
A car dealer carries out the following calculations. List price $ 5,368.00 Options $ 1,625.00 Destination charges $ 200.00 Subtotal $ 7,193.00 Tax $ 431.58 Less trade-in $ 2,932.00 Amount to be financed $ 4,692.58 15% interest for 48 months $ 2,815.55 Total $ 7,508.13 MONTHLY PAYMENT $ 156.42 What is the annual percentage rate
Answer and Explanation:
Given interest rate =10%
Repayment months= 48 months,
Interest rate =10% for 48 monthsv
To calculate annual percentage rate,
The annual percentage rate = 2 * repayment months* interest rate divided by repayment months + 1
Annual percentage rate= 2*48*10%/48+1
=2*48*0.10/49
= 96*0.10/49
= 9.6/49= 0.1959= 19.59%
Therefore annual percentage rate = 19.59%
Ahmed owns a small motor repair shop that had a cash flow of $297,241 in the current period. If Ahmed expects his business to grow at a constant rate of 8%, what should his cash flow be next period?
Answer: $321,020
Explanation:
The cash flow is expected to grow at a rate of 8%.
This means that in the next year it will be 8% higher than the $297,241 it is in the current period.
= 297,241 * ( 1 + rate)
= 297,241 * ( 1 + 8%)
= $321,020
A business buys $5000 worth of resources to produce a good. The business makes 100 units of the good and each of them sells for $65. The value added by the business to these products is:
a. $5,000
b. $6,500
c. $1,500
d. $1,000
Answer:
$1,500
Explanation:
A business buys $5000 worth of resources resources to produce a good
The business makes 100 unit of of the good and sell each for $65
Therefore the value added by the business to the product can be calculated as follows
= $65×100
= $6500
$6,500-$5,000
= $1,500
Hence the value added by the business to the product is $1,500
You will invest $25,000 in an ice cream shop your sister is starting. You expect to triple your investment in six years. What is the rate of return that you have in mind? (Rounded to the nearest percent.)
Answer:
r = 20.09%
Explanation:
we can use the future value formula to calculate the expected rate of return:
future value = present value x (1 + r)ⁿ
future value = $25,000 x 3 = $75,000present value = $25,000n = 6$75,000 = $25,000 x (1 + r)⁶
(1 + r)⁶ = $75,000 / $25,000 = 3
⁶√(1 + r)⁶ = ⁶√3
1 + r = 1.2009
r = 0.2009 = 20.09%
The skill you’re focusing on this week is:
could you explain some more please
LLAP Company manufactures a special-ized hoverboard. LLAP began 2017 with an inventory of 240 hoverboards. During the year, it produced 1,200 boards and sold 1,300 for $800 each. Fixed production costs were $319,000, and variable production costs were $375 per unit. Fixed advertising, marketing, and other general and administrative expenses were $150,000, and variable shipping costs were $20 per board. Assume that the cost of each unit in beginning inventory is equal to 2017 inventory cost.1. Prepare an income statement assuming LLAP uses variable costing.2. Prepare an income statement assuming LLAP uses absorption costing. LLAP uses a denominator level of 1,100 units. Production-volume variances are written off to cost of goods sold.3. Compute the breakeven point in units sold assuming LLAP uses the following:a. Variable costingb. Absorption costing (Production
Answer:
Please see solution below
Explanation:
1. Prepare an income statement assuming LLAP uses variable costing
$
Sales
$800 × 1,300 = $1,040,000
Less cost of goods sold
Opening stock
($375 × 240)
$90,000
Add cost of goods manufactured
$450,000
Less closing stock
($374 × 140)
($52,500). ($487,500)
Gross profit. $562,500
Less periodic costs
Fixed production costs
($319,000)
Fixed advertising, marketing, admin
($150,000)
Shipping cost
($20 × 1,300)
($26,000)
Net income
$57,500
2. Prepare an income statement assuming LLAP uses absorption costing
$
Sales ($800 × 1,300)
$1,040,000
Less costs of goods sold
Opening stock ($665 × 240)
$159,600
Add costs of goods manufactured
769,000
Less closing stock ($665 × 140)
($93,100)
Add under - applied overhead
$29,000. $864,500
Gross profit. $175,500
Less periodic costs
Fixed advertising, marketing, admin
($150,000)
Shipping cost ($20 × 1,300)
($26,000)
Net loss. ($500)
3. Compute the Break even point in units sold assuming LLAP uses variable and absorption costing
a. Variable costing
BEP(units) = Fixed costs / Contribution per unit
= $319,000 + $150,000 / ($800 - $375 - $20)
= $469,000 / $405
= 1,159
b. Absorption costing(production = 1,200 boards)
BEP(units) = Fixed costs / Contribution per unit
= $319,000 + $150,000 / ($800 - $375 - $20)
= $469,000 / $385
= 1,159
By the end of 2022, Humanity International has the benefit of hindsight to know that estimates of uncollectible accounts in 2021 were too high. How did this overestimation affect the reported amounts of total assets and expenses at the end of 2021
Answer:
Humanity International
The overestimation of the uncollectible accounts in 2021 reduced the reported amount of total assets and increased the total amount of expenses at the end of 2021.
Explanation:
When the uncollectible accounts in 2021 were overestimated, the uncollectible expense for the year was also overestimated. This increased the total amount of expenses for that year. In turn, the total amount of assets was decreased since the uncollectible allowance is usually deducted from an element of the assets (Accounts Receivable).
Acceptance. Altisource Portfolio Solutions, Inc., is a global corporation that provides real property owners with services, such as property preservation—repairs, debris removal, and so on. Lucas Contracting, Inc., is a small trade contractor in Carrollton, Ohio. On behalf of Altisource, Berghorst Enterprises, LLC, hired Lucas to perform preservation work on certain foreclosed properties in eastern Ohio. When Berghorst did not pay for the work, Lucas filed a suit in an Ohio state court against Altisource. Before the trial, Lucas e-mailed the terms of a settlement. The same day, Altisource e-mailed a response that did not challenge or contradict Lucas’s proposal and indicated agreement to it. Two days later, however, Altisource forwarded a settlement document that contained additional terms. Which proposal most likely satisfies the element of agreement to establish a contract? Explain.
Answer:
Throughout the clarification segment elsewhere here, the definition including its issue is mentioned.
Explanation:
The very first e-mailed submission from Altisource that doesn't even dispute Lucas' suggestion would have been the proposal which most definitely meets the part of the arrangement to create a contract. It is when Altisource's e-mail was approved that they committed to it. Today, if a new arrangement with added provisions is presented two days after ratification, it can not be accepted as an aspect of the binding agreement.If they could have some trouble with the arrangement, they could've just discussed the based distribution and therefore not approved the agreement. It would never be altered until they have approved it but the same could be known as either a contract arrangement.If the discount rate is 10 percent, what is the present value of these cash flows? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the present value at 18 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What is the present value at 24 percent? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Answer:
there are no cash flows given, so I will use another question as an example:
NCF year 0 = -$1,150,000
NCF year 1 = $275,000
NCF year 2 = $275,000
NCF year 3 = $275,000
NCF year 4 = $275,000
NCF year 5 = $275,000
NCF year 6 = $275,000
NCF year 7 = $275,000
a) when cash flows are the same for all the years, you can use an ordinary annuity factor:
PV = $275,000 x 4.86842 (PV annuity factor, 10%, 7 periods) = $1,338,815.50
NPV = -$1,150,000 + $1,338,815.50 = $188,815.50
b) PV = $275,000 x 3.81153 (PV annuity factor, 18%, 7 periods) = $1,048,170.75
NPV = -$1,150,000 + $1,048,170.75 = -$101,829.25
c) PV = $275,000 x 3.24232 (PV annuity factor, 18%, 7 periods) = $891,638
NPV = -$1,150,000 + $891,638 = -$258,362
If the cash flows are different, then you must discount each cash flow individually.
E.g. NCF year 0 = -$150,000
NCF year 1 = $75,000
NCF year 2 = $85,000
NCF year 3 = $95,000
NPV = -$150,000 + $75,000/1.1 + $85,000/1.1² + $95,000/1.1³ = $59,804.66
"Should Dillard's keep its excellent department store credit card program? ______ Yes ______ No" is an example of _____.
Answer:
The answer is "making assumptions"
Explanation:
The making assumption is determined if it can't be provided to claim which is not confirmed unless the argument is one, which you or the writer could show if they tried, users must decide. It requires as a considering as thinks about both the subject so on that basis evaluating the statement.
It is the one way the mind saves power becomes to find patterns in how the environment functions, that draw from our previous history. It adopts such trends, or beliefs, to the current world when we experience new circumstances. Its approach saves us the power to evaluate the condition entirely fresh.An office building with an adjusted basis of $320,000 was destroyed by fire on December 30, 2020. On January 11, 2021, the insurance company paid the owner $450,000. The fair market value of the building was $500,000, but under the co-insurance clause, the insurance company is responsible for only 90 percent of the loss. The owner reinvested $410,000 in a new office building on February 12, 2021, that was smaller than the original office building. What is the recognized gain and the basis of the new building if § 1033 (nonrecognition of gain from an involuntary conversion) is elected?
Answer:
Recognized gain or loss = $40,000
Basis of the new building = $320,000
Explanation:
Total gain = Insurance Claim - Adjusted Basis of destroyed Building
Total gain = $450,000-$320,000 = $130,000
if Section 1033 (nonrecognition of gain from an involuntary conversion) is elected
Recognized Gain = Insurance Claim – the Greater of Replacement Cost or the Adjusted Basis of Building
Recognized gain or loss = $450,000-$410,000
Recognized gain or loss = $40,000
Deferred Gain = Total gain - Recognized gain or loss
Deferred Gain= $130,000-$40,000
Deferred Gain = $90,000
Basis of the new building if Section 1033 (nonrecognition of gain from an involuntary conversion) is elected
Basis of the new building = Investment - Deferred Gain
Basis of the new building = $410,000 - $90,000
Basis of the new building = $320,000
Microhard has issued a bond with the following characteristics: Par: $1,000 Time to maturity: 15 years Coupon rate: 7 percent Semiannual payments Calculate the price of this bond if the YTM is 9 percent.
Answer:
$837.11
Explanation:
The computation of the present value is shown below:
Given that
Future value = $1,000
NPER = 15 × 2 = 30
PMT = $1,000 × 7% ÷ 2 = $35
RATE = 9% ÷ 2 = 4.5%
The formula is shown below:
= -PV(RATE;NPER;PMT;FV;TYPE)
After applying the above formula, the present value is $837.11
The same is to be considered
Joe Jones, Inc. has a beta of .85. The risk-free rate is 5% and the expected rate of return on the market portfolio is 10%. a. Compute the required return for Joe Jones using the security market line (SML) equation.
Answer: 9.25%
Explanation:
Risk free rate, Rf = 5% = 0.05
We then subtract the risk free rate of 5% from the expected date of return on market portfolio of 10%. This will be:
= 10% - 5% = 5%
Beta = 0.85
Required return will now be:
= Rf + (Rm-Rf) x Beta
= 5% + (5% × 0.85)
= 5% + 4.25%
= 9.25%
Flow of Accounts into Financial Statements The balances for the accounts that follow appear in the Adjusted Trial Balance columns of the end-of-period spreadsheet. Indicate whether each account would flow into the income statement, statement of owner's equity, or balance sheet.
1. Accounts Payable Balance sheet
2. Accounts Receivable Income statement
3. Cash Statement of owner's equity
4. Eddy Rosewood, Drawing Balance sheet
5. Fees Earned Income statement
6. Supplies Income statement
7. Unearned Rent Balance sheet
8. Utilities Expense Balance sheet
9. Wages Expense
10. Wages Payable
Answer:
1. Accounts Payable will flow to the balance sheet because it is a liability account.
2. Accounts Receivable will flow to the balance sheet because it is an asset account.
3. Cash will flow in the balance sheet as it is an asset for the company.
4. Eddy Rosewood, Drawing will flow into Statement of owner's equity
5. Fees Earned will flow in the Income Statement
6. Supplies belong in the income statement as it is an expense account.
7. Unearned rent will flow in the balance sheet as it is a liability account.
8. Utility Expense will flow in the balance sheet as it is an expense account.
9. Wages Expense will flow in the income statement as it is an expense account.
10. Wages payable will flow in the balance sheet as it is a liability account.
Answer:
It's actually balance sheet for Supplies.
Explanation:
A company just starting business made the following four inventory purchases in June: Date Number of Units Purchased Total Cost June 1 100 units $ 360 June 10 150 units 585 June 15 150 units 610 June 28 100 units 520 $2075 A physical count of merchandise inventory on June 30 reveals that there are 240 units on hand. Using the FIFO inventory method, the amount allocated to cost of goods sold for June is
Answer:
COGS= $985.67
Explanation:
Giving the following information:
Date Number of Units Purchased
June 1 100 units $360 ($3.6)
June 10 150 units 585 ($3.9)
June 15 150 units 610 ($4.067)
June 28 100 units 520 ($5.2)
A physical count of merchandise inventory on June 30 reveals that there are 240 units on hand.
First, we need to calculate the number of units sold:
Units sold= total units - units in ending inventory
Units sold= 500 - 240= 260
To calculate the cost of goods sold under the FIFO (first-in, first-out) method, we need to use the cost of the firsts units incorporated into inventory.
COGS= 100*3.6 + 150*3.9 + 10*4.067
COGS= $985.67
