how would you purchase of inventory on credit affect the income statement?

Answers

Answer 1

Answer:

The purchase of credit increases both accounts payable and inventory, which are balance sheet accounts. It would, therefore, have no effect on the income statement.

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Related Questions

Luker Corporation uses a process costing system. The company had $160,500 of beginning Finished Goods Inventory on October 1. It transferred in $837,000 of units completed during the period. The ending Finished Goods Inventory balance on October 31 was $158,200. The entry to account for the cost of goods manufactured during October is

Answers

Answer and Explanation:

The journal entry for the cost of goods manufactured is shown below:

Finished Goods Inventory $837,000

          To Work in process $837,000

(Being cost of goods manufactured)

Here the finished goods inventory is debited as it increased the assets and credited the work in process as it decrease the assets

Kirchhoff Industries has a past history of uncollectible accounts, as follows.

Age Class Percent Uncollectible
Not past due 2%
1-30 days past due 4
31-60 days past due 18
61-90 days past due 40
Over 90 days past due 75

Required:
Estimate the allowance for doubtful accounts.

Answers

Answer:

The balance of allowance for doubtful accounts is $131,712.

Explanation:

Note: This question is not complete. The complete question is therefore provided before answering the question. See the attached pdf file for the complete question.

The explanation of the answer is now given as follows:

Note: See the attached excel file for the estimated allowance for doubtful accounts.

In the attached excel file, the allowance for doubtful accounts for each  Percentage uncollectible is calculated as follows:

Allowance for doubtful accounts = Total receivables *  Percentage uncollectible.

Also, the balance of allowance for doubtful accounts is calculated by adding the allowance for doubtful accounts of the Age Classes.

From the attached excel file, the balance of allowance for doubtful accounts is $131,712.

Harrison Forklift's pension expense includes a service cost of $26 million. Harrison began the year with a pension liability of $46 million (underfunded pension plan).

1. Interest cost, $7; expected return on assets, $20; amortization of net loss, $6.
2. Interest cost, $22; expected return on assets, $16; amortization of net gain, $6.
3. Interest cost, $22; expected return on assets, $16; amortization of net loss, $6; amortization of prior service cost, $7 million.


Required:
Prepare the appropriate general journal entries to record Harrison's pension expense in each of the above independent situations regarding the other components of pension expense ($ in millions).

Answers

Answer:

1. ($ in millions)

Dr Pension expense $19

Dr Plan assets (expected return on assets) $20

Cr PBO$33

Cr Net loss—AOCI(current amortization) $6

2. ($ in millions)

Dr Pension expense $26

Dr Plan assets (expected return on assets) $16

Dr Net gain—AOCI(current amortization) $6

Cr PBO $48

3. ($ in millions)

Dr Pension expense $45

Dr Plan assets (expected return on assets) $16

Cr PBO $48

Cr Net loss—AOCI(current amortization) $6

Cr Prior service cost (current Amortization) $7

Explanation:

Preparation of the appropriate general journal entries to record Harrison's pension expense

1. ($ in millions)

Dr Pension expense $19

($33+$6-$20)

Dr Plan assets (expected return on assets) $20

Cr PBO($26 service cost + $7 interest cost) $33

Cr Net loss—AOCI(current amortization) $6

2. ($ in millions)

Dr Pension expense $26

($48-$16-$6)

Dr Plan assets (expected return on assets) $16

Dr Net gain—AOCI(current amortization) $6

Cr PBO($26 service cost + $22 interest cost) $48

3. ($ in millions)

Dr Pension expense $45

($48+$6+$7-$16)

Dr Plan assets (expected return on assets) $16

Cr PBO($26 service cost + $22 interest cost) $48

Cr Net loss—AOCI(current amortization) $6

Cr Prior service cost (current Amortization) $7

The new truck your catering company just purchased has a cost of $75,000 with all the movable carts, storage, and refrigeration built in. You are able to negotiate a loan with your bank with 10% down payment, 12%, 2 years, with a monthly mortgage. Please find amortization schedule with correct numbers for the first two months of this loan.

Answers

Answer:

purchase price = $75,000

down payment = $7,500

assuming a fixed monthly payment

monthly payment = $67,500 / 21.243 (PVIFA, 1%, 24 periods) = $3,177.52

month     beg. balance   payment     interest   principal    end. balance

1                $67,500         $3,177.52   $675        $2,502.52  $64,997.48

2             $64,997.48      $3,177.52   $650       $2,527.52   $62,469.96

Katie Homes and Garden Co. has 14,800,000 shares outstanding. The stock is currently selling at $82 per share. If an unfriendly outside group acquired 30 percent of the shares, existing stockholders will be able to buy new shares at 35 percent below the currently existing stock price. a. How many shares must the unfriendly outside group acquire for the poison pill to go into effect

Answers

Answer:

A. $4,440,000

B. $53.30

Explanation:

A. Calculation for How many shares must the unfriendly outside group acquire for the poison pill to go into effect

Number of shares = $14,800,000*30%

Number of shares=$4,440,000

Therefore the numbers of shares that must the unfriendly outside group acquire for the poison pill to go into effect is $4,440,000

b. Calculation for What will be the new purchase price for the existing stockholders

New purchase price = 82*(1-0.35)

New purchase price = $53.30

Therefore the new purchase price for the existing stockholders is $53.30

The risk-free rate of return is 6 percent, and the expected return on the market is 14.7 percent. Stock A has a beta coefficient of 1.6, an earnings and dividend growth rate of 6 percent, and a current dividend of $1.90 a share. Do not round intermediate calculations. Round your answers to the nearest cent. What should be the market price of the stock

Answers

Answer:

P0 = $14.4683 rounded off to $14.47

Explanation:

To calculate the market price of the stock today, we will use the constant growth model of DDM. The constant growth model calculates the values of the stock today based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g)  /  (r - g)

Where,

D0 is the dividend todayg is the constant growth rater is the required rate of return on the stock

We first need to calculate r using the CAPM equation. The equation is,

r = rRF + Beta * (rM - rRF)

Where,

rRF is the risk free raterM is the return on market

r = 0.06 + 1.6 * (0.147 - 0.06)

r = 0.1992 or 19.92%

Using the price formula for DDM above, we can calculate the price today to be,

P0 = 1.9 * (1+0.06)  /  (0.1992 - 0.06)

P0 = $14.4683 rounded off to $14.47

During the month of June, Ace Incorporated purchased goods from two suppliers. The sequence of events was as follows: June 3 Purchased goods for $4,100 from Diamond Inc. with terms 2/10, n/30. 5 Returned goods costing $1,100 to Diamond Inc. for credit on account. 6 Purchased goods from Club Corp. for $1,000 with terms 2/10, n/30. 11 Paid the balance owed to Diamond Inc. 22 Paid Club Corp. in full.
Required: Assume that Ace uses a perpetual inventory system and that the company had no inventory on hand at the beginning of the month. Calculate the cost of inventory as of June 30.

Answers

Answer:

$3,918

Explanation:

Calculation the cost of inventory as of June 30

Purchases [$4,100+1000] $5100

(Less): Returns ($1100)

(Less): Discount [4100 x 2%] ($82)

Cost of inventory $3,918

Therefore the cost of inventory as of June 30 will be $3,918

Karma Company has prepared its operating budget for the first quarter of 20x9. The company forecasts sales of $50,000 in February, $60,000 in March, and $70,000 in April. Variable and fixed expenses are as follows: Variable: Utilities (electricity): 40 % of sales Misc. expenses: 5 % of sales Fixed: Salary expense $ 8,000 per month Rent expense $ 5,000 per month Depreciation expense $ 1,200 per month Utilities expense (fixed part) $ 800 per month Misc. Expense (fixed part) $ 1,000 per month What are the total selling and administrative expenses for the month of February

Answers

Answer:

The correct solution is "38,500".

Explanation:

The given values are:

Sales in February,

= $50,000

Sales in March,

= $60,000

Sales in April,

= $70,000

Now,

The total selling and administrative expenses for the month of February will be:

=  [tex]Variable \ costs + Fixed \ cos ts[/tex]

On substituting the values, we get

=  [tex]50,000\times (40 \ percent+5 \ percent) + (8,00 0+5,000+1,200+800+1,000)[/tex]

=  [tex]20000+2500+8000+5000+1200+800+1000[/tex]

=  [tex]38,500[/tex]

Selling, general and administrative costs are the costs incurred by a firm to market, sell and deliver its products and services, as well as run day-to-day operations.

The correct solution is "38,500".  

Given Information:-

Sales in February= $50,000

Sales in March= $60,000

Sales in April = $70,000  

The total selling and administrative expenses for the month of February will be:

=Variable Costs + Fixed Costs

=50,000*(40%+ 5%)+(8,000+5,000+1,200+800+1,000)

=20,000+2500+8,000+5,000+1,200+800+1,000

=$38,500

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Use the information:
Boxwood Company sells blankets for $60 each. The following was taken from the inventory records during May. The company had no beginning inventory on May 1.
Date Blankets Units Cost
May 3 Purchase 5 $20
10 Sale 3
17 Purchase 10 24
20 Sale 6
23 Sale 3
30 Purchase 10 30
1. Assuming that the company uses the perpetual inventory system sold for the sale of May 20 using the LIFO inventory cost method.
a. $136.
b. $144.
c. $180.
d. $120.
2. Assuming that the company uses the perpetual inventory system, determine the cost of merchandise sold for the sale of May 20 using the FIFO inventory cost method. a. $120 b. $180 $136 d. $144 72.
3. Assuming that the company uses the perpetual inventory system, determine the ending inventory value for the month of May using the FIFO inventory cost method.
a. $364.
b. $372.
c. $324.
d. $320.
4. Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23 using the FIFO inventory cost method.
a. $108.
b. $120.
c. $72.
d. $180.
5. Assuming that the company uses the perpetual inventory system, determine the ending inventory for the month of May using the LIFO inventory cost method.
a. $324.
b. $372.
c. $320.
d. $364.

Answers

Answer:

1.  Option B

2. Option C

3. Option B

4. Option A

5. Option D

I've done this work before so I remember the answers.

Sorry about that other user taking your points, I hope this helps you though :)

16) Warranties, money-back guarantees, extensive usage instructions, demonstrations, and free samples are all ways in which companies attempt to ________ new product adoption. A) accelerate satisfaction with B) stabilize at maturity any C) minimize growth in competition during D) overcome barriers to E) prevent the precipitous decline of

Answers

Answer: D. Overcome barriers

Explanation:

During the life cycle of a product, the introduction stage is where the company builds awareness for the new product.

At this stage, the sales are usually low and companies look out for ways to overcome challenges and barriers. Some of the ways to do this include warranties, extensive usage instructions etc.

Therefore, the correct option is D.

One of the four major time value of money terms; the amount to which an individual cash flow or series of cash payments or receipts will grow over a period of time when earning interest at a given rate of interest.

a. True
b. False

Answers

Answer:

true

Explanation:

Assume that a parent company owns a 100% controlling interest in its long-held subsidiary. On January 1, 2018, a parent company sold land to the subsidiary for $650,000. The land originally cost the parent $520,000 when it was purchased on January 1, 2009. The parent company uses the equity method to account for its pre-consolidation investment in the subsidiary. Related to the transferred land, which of the following items is true regarding the preparation of the consolidated financial statements for the year ending December 31, 2019?
A. The consolidation entries will include a $26,000 debit to "Equipment (gross)".
B. The consolidation entries will include a $26,000 credit to "Loss on Sale of Equipment".
C. The consolidation entries will include a $26,000 debit to "Gain on Sale of Equipment".
D. The consolidation entries will include a $26,000 credit to "Accumulated depreciatio".

Answers

Answer:

A. The consolidation entries will include a $130,000 debit to "Equity Investment (gross)".

Explanation:

Parent Company owns 100% of the shares of its subsidiary which means there is no non controlling interest. The equipment has a value of $520,000 to the parent when it acquired the interest. The land has sold to its subsidiary at a price of $650,000. The differential is $130,000 which is accounted for using the equity method. The parent will report $130,000 debit to the equity investment account.

The following revenue and expense account balances were taken from the ledger of Guardian Health Services Co. after the accounts had been adjusted on February 28, 20Y0, the end of the fiscal year:
Depreciation Expense $17,400
Insurance Expense 8,530
Miscellaneous Expense 6,790
Rent Expense 70,300
Service Revenue 334,100
Supplies Expense 4,180
Utilities Expense 26,800
Wages Expense 262,700
Prepare an income statement.

Answers

Answer:

                             Guardian Health Services Co.

           Income Statement for the year ended February 28, 20Y0

                                                                        $                        $

Sales

      Service Revenue                                                          334,100

Cost of Goods sold

      Supplies Expense                                                            4,180

Gross Profit                                                                          329,920

Operating expense

      Utilities Expense                                   26,800

      Wages Expense                                  262,700

      Depreciation Expense                            17,400

      Insurance Expense                                  8,530

      Miscellaneous Expense                           6,790

      Rent Expense                                         70,300

                                                                                            392,520

Net profit/(loss)                                                                    (62,600)

Explanation:

The income statement is a statement that shows the net profit or loss of a business for a period end. It shows the income made and expenses incurred in the course of a given period.

Accounts Receivable 82,000 debit
Allowance for Doubtful Accounts 2,120 debit
Sales 430,000 credit

Using the data above, give the journal entries required to record each of the following cases. (Each situation is independent.)

a. To obtain additional cash, Tamarisk factors without recourse $24,100 of accounts receivable with Stills Finance. The finance charge is 11% of the amount factored.
b. To obtain a 1-year loan of $62,900, Tamarisk pledges $71,900 of specific receivable accounts to Crosby Financial. The finance charge is 8% of the loan; the cash is received and the accounts turned over to Crosby Financial.
c. The company wants to maintain the Allowance for Doubtful Accounts at 7% of gross accounts receivable.
d. Based on an aging analysis, an allowance of $5,899 should be reported. Assume the allowance has a credit balance of $1,204.

Answers

Answer:

1) Dr Cash $21,449

Dr Loss on Sale $2,651

Cr Account Receivable $24,100

2) Dr Cash $57,868

Dr Interest Expense $5,032

Cr Note Receivable $62,900

3) Bad Debt Expense $7,860

Allowance for Doubt Acc $7,860

4) Bad Debt Expense $4,695

Allowance for Doubt Account $4,695

Explanation:

Preparation of the journal entries required to record each cases

1) Dr Cash $21,449

($24,100-$2,651)

Dr Loss on Sale $2,651

(11%*$24,100)

Cr Account Receivable $24,100

2) Dr Cash $57,868

($62,900-$5,032)

Dr Interest Expense $5,032

(8%*$62,900)

Cr Note Receivable $62,900

3) Bad Debt Expense $7,860

Allowance for Doubt Acc $7,860

[( 7%*82,000)+$2,120]

4) Bad Debt Expense $4,695

Allowance for Doubt Account $4,695

($5,899-$1,204)

The cash flow data for GM is below Cash dividend..............................................$ 94,000 New PPE........................................................$ 61,000 Interest paid on debt.................................$ 39,000 Sales of old equipment.............................$ 86,000 Repurchase of stock..................................$ 83,000 Cash payments to suppliers...................$ 109,000 Cash collections from customers.........$ 440,000 A) Find the net cash provided by or used in investing activities.

Answers

Answer:

the net cash provided by investing activities is $25,000

Explanation:

The computation of the net cash provided by or used in investing activities is shown below

= Sale of old equipment - New PPE

= $86,000 - $61,000

= $25,000

Hence, the net cash provided by investing activities is $25,000

why does a businesss cycle diagram serve as a forecasting model?​

Answers

Business cycle forecasting is the creation of conjectures about how the business cycle will unfold in the future. For instance, if an economist looks at national employment data and sees that companies are hiring new workers at a fast pace and that unemployment is falling, he might conclude that an economic boom will start soon because consumption tends to rise when more workers receive wages.

Which of the following costs is most likely NOT included in a bill from the university for a college student living on campus?
Select the best answer from the choices provided.
OA. tuition
OB.
cell phone
Ос.
fees
OD. housing

Answers

Answer:

B. cell phone

Explanation:

Out of all the following costs, the most likely not to be included in a bill from the university for a college student living on campus is "Cell Phone."

This is because except a student is on full scholarship, Tuition is a must cost to be included in the bill.

Also, student fees that cover extra costs like insurance, and health care are usually included in student bills.

Similarly, the housing cost covers a hostel or off-campus accommodation for students. Hence it is also included in the student bill.

Hence, the correct answer is the cost of a "Cell phone." Which doesn't concern the school whether a student has or not.

It is better to ___ than to ___.

A. pay with a credit card; use cash

B. pay down a credit card; save the money

C. save the money, pay off a credit card

D. use cash; save the money

Answers

Answer:

It is better to pay down a cred card than to save the money.

Or B

Explanation: I just took the quiz.

It is better to "save the money, pay off a credit card" than to "use cash". The correct option is C.

Why is it important to save money early?

The first step toward financial independence is saving money. The sooner children and teenagers begin saving, the more probable it is that it will become a habit. Children and teenagers can benefit from compound interest by saving frequently and early. Finding ways to generate additional money might help kids and teenagers increase their savings.

This is because paying off a credit card debt can help reduce overall debt and save money in the long term by avoiding high-interest charges. On the other hand, using cash may provide a sense of security and control over spending, but it does not necessarily address existing debt or help build credit history.

Thus, the ideal selection is option C.

Learn more about saving money here:

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Walt occasionally borrows the car of his friend, Jesse. Jesse has a PAP with liability limits of 250/500/100. Walt also has a PAP, and his liability limits are also 250/500/100. Walt had an accident while using Jesse's car and was found to be legally liable for $350,000 in bodily injury costs sustained by one person. How much will be paid by Walt's policy

Answers

Answer: $250,000

Explanation:

Liability limits go as follows:

The first number is the maximum amount payable for the bodily injury suffered by one person. The second is the maximum amount payable per accident. The third number is the maximum payable for property damage.

These numbers are in thousands.

As Walt was the one driving, his insurance will kick in first and his policy will pay the maximum that it can pay for bodily injury costs to one person.

That amount as shown is the first number in his limits which is $250,000.

Select the answer that makes each statement correct. When the government changes either its spending or tax policy to pursue economic objectives, it has changed its financial policy. political policy. monetary policy. contractionary policy. expansionary policy. fiscal policy. Changing the amount of money in circulation to pursue economic objectives changes the

Answers

Answer:

fiscal policy

monetary policy

Explanation:

Monetary policy are policies taken by the central bank of a country to shift aggregate demand.

There are two types of monetary policy :

Expansionary monetary policy : these are polices taken in order to increase money supply. When money supply increases, aggregate demand increases. reducing interest rate and open market purchase are ways of carrying out expansionary monetary policy

Contractionary monetary policy : these are policies taken to reduce money supply. When money supply decreases, aggregate demand falls. Increasing interest rate and open market sales are ways of carrying out contractionary monetary policy

Fiscal policies are deliberate steps taken by the government to stimulate the economy in order to cause the economy to move to full employment and price stability more quickly than it might otherwise. The tools of fiscal policy are either taxes and government spending

Fiscal policies can either be expansionary or contractionary

Expansionary fiscal policy is when the government increases the money supply in the economy either by increasing spending or cutting taxes.

Contractionary fiscal policy  is when the government reduces the money supply in the economy either by reducing spending or increasing taxes.

how long will it take a nitrogen dioxide molecule to travel 25m at stp?​

Answers

Answer:

Explanation:Nitrogen dioxide appears as a reddish brown gas or yellowish-brown liquid when cooled or compressed. Shipped as a liquefied gas under own vapor pressure. Vapors are heavier than air. Toxic by inhalation (vapor) and skin absorption. Noncombustible, but accelerates the burning of combustible materials. Cylinders and ton containers may not be equipped with a safety relief device.

Nitrogen oxide (NO2). A highly poisonous gas. Exposure produces inflammation of lungs that may only cause slight pain or pass unnoticed, but resulting edema several days later may cause death. (From Merck, 11th ed) It is a major atmospheric pollutant that is able to absorb UV light that does not reach the earth's surface.

A company purchased a 3-acre tract of land for a building site for $440,000. The company demolished the old building at a cost of $21,000, but was able to sell scrap from the building for $2,400. The cost of title transfer was $1,350 and attorney fees for reviewing the contract was $680. Property taxes paid were $7,500, of which $700 covered the period after the purchase date. The capitalized cost of the land is:

Answers

Answer:

$467,430

Explanation:

Calculation for The capitalized cost of the land is:

Purchase price $440,000

Demolition costs $21,000

Scrap sold ($2,400)

Title insurance $1,350

Legal fees $680

Property taxes ($7,500 – $700) $6,800

Total cost of land $467,430

Therefore The capitalized cost of the land is:$467,430

On January 1, 2017 Preibus acquired 100 % of Spicer. This acquisition was not a bargain purchase. On the date of acquisition, Spicer's Equipment had a net book value of 1,600,000 and a fair value of 1,723,000. Preibus determined that Spicer's equipment had a remaining life of 5 years at the date of acquisition. What is the consolidation adjustment (in addition to adding the two trial balance amounts together) that must be made to the Equipment account when preparing consolidated statements for Preibus as of 12/31/2017

Answers

Answer:

Dr Investment in Spicer $123,000

Cr Equipment $123,000

Dr Equipment $24,600

Cr Depreciation expense $24,600

Explanation:

Preparation of the consolidation adjustment that must be made to the Equipment account when preparing consolidated statements for Preibus as of 12/31/2017

Dr Investment in Spicer $123,000

Cr Equipment $123,000

(1,600,000-1,723,000)

(To record the equipment at their fair value)

Dr Equipment $24,600

Cr Depreciation expense $24,600

($123,000/5 years)

(To record excess Depreciation charged on overvalued Equipment)

define common stock.​

Answers

Common stock is a security that represents ownership in a corporation. Holders of common stock elect the board of directors and vote on corporate policies.
Ownership.............

ABC Company sells several products. Information of average revenue and costs is as follows: Selling price per unit $34 Variable costs per unit: Direct material $6 Direct manufacturing labor $2.40 Manufacturing overhead $0.80 Selling costs $3.20 Annual fixed costs $78,000 The company sells 12,000 units at the end of the year. The contribution margin per unit is ________.

Answers

Answer:

Contribution margin per unit= $21.6

Explanation:

Giving the following information:

Selling price per unit $34

Variable costs per unit:

Direct material $6

Direct manufacturing labor $2.40

Manufacturing overhead $0.80

Selling costs $3.20

The contribution margin is calculated by deducting from the selling price all the variable components:

Contribution margin per unit= selling price - total unitary variable cost

Contribution margin per unit= 34 - 6 - 2.4 - 0.8 - 3.2

Contribution margin per unit= $21.6

what is businesss?explain with examples​

Answers

Answer:

Explanation:

a person's regular occupation, profession, or trade which he/she is doing regularly in his/her daily life.

4.7 Discuss the role that computers play in modern society.

Answers

Answer:

Computer roles in education in modern society

Storage of information.

Quick data processing.

Audio-visual aids in teaching.

Better presentation of information.

Access to the Internet.

Quick communication between students, teachers and parents.

Explanation:

Computers make people's lives easier and more comfortable:

they provide opportunities for staying in touch to billions of people who are in different parts of the world.

People can drive computerized cars and work for employers from other countries without even seeing them.

Janbo Company produces a variety of stationery products. One product, sealing wax sticks, passes through two processes: blending and molding. The weighted average method is used to account for the costs of production. After blending, the resulting product is sent to the molding department, where it is poured into molds and cooled. The following information relates to the blending process for August:A. Work in Process on August 1, had 30,000 pounds, 20% complete. Costs associated with partially completed units were:Materials $220,000Direct labor 30,000Overhead applied 20,000B. Work in Process on August 31, had 50,000 pounds, 40% complete.C. Units completed and transferred out totaled 480,000 pounds. Costs added during the month were (all inputs are added uniformly):Materials $5,800,000Direct labor 4,250,000Overhead applied 1,292,500Required:1A. Prepare a physical flow schedule.1B. Prepare an equivalent unit schedule.2. Calculate the unit cost.3. Compute the cost of EWIP and the cost of goods transferred out.4. Prepare a cost reconciliation.5. Suppose that the materials added uniformly in blending are paraffin and pigment and that the manager of the company wants to know how much each of these materials costs per equivalent unit produced. The costs of the materials in BWIP are as follows:Paraffin $120,000Pigment 100,000The costs of the materials added during the month are also given:Paraffin $3,250,000Pigment 2,550,000Prepare an equivalent unit schedule with cost categories for each material.

Answers

Answer:

1a.                    Janbo Company

                Physical Flow Schedule

Units to account for:

Units in beginning work in process    30000

Units started                                         500000

Total units to account for                    530,000

Units accounted for:

Units completed                                   480,000

From ending work in process              50,000

Total units accounted for                     530,000

1b.                 Janbo Company

          Schedule of Equivalent Units

Weighted Average Method

Units completed                                 480,000    100%   480,000

Units in ending work in process        50,000      40%    20,000

Total equivalent units                                                      500,000            

2. Particulars Amount Amount

Beginning work in process:

Materials                                $220,000  

Direct labor                            $30,000  

Overhead applied                 $20,000          $270,000

Cost added during the month  

Materials                                $5,800,000  

Direct labor                            $4,250,000  

Overhead applied                 $1,292,500      $11,342,500

Total cost                                                        $11,612,500

Equivalent cost per unit = Total cost/Total equivalent units

Equivalent cost per unit = $11,612,500/500,000

Equivalent cost per unit = $23.225

3. Ending work in process= 20000 * $23.225 = 464500

Goods transferred out = 480000 * $23.225 = 11148000

4.                           Janbo Company

                         Cost Reconciliation

Costs to account for:  

Beginning WIP                       270000

August costs                         11342500

Total to account for              11,612,500

Costs accounted for:

Transferred out                     11,148,000

Ending WIP                            464,500

Total costs accounted for    11,612,500

Pool Perfection provided pool maintenance services worth $1,600 during July; in June, the customers had paid in advance for these services. During July, the company performed $1,000 of pool maintenance services, and in August, collected payment from those customers. Also, during July, the company accepted an order to perform $500 of pool maintenance services in August; the customers will pay for these services during August. The company uses accrual basis accounting. The Service Revenue account should be credited for:

Answers

Answer:

$1,600

Explanation:

It is important to note that the company uses accrual basis accounting. The Service Revenue account should be credited for $1,600

20. The shipment of goods or rendering of services to a foreign buyer, located in a
foreign country is:
Importing
Exporting
Foreign Exchange
Importing and Exporting

Answers

That is Importing. Option A.
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