_____ encompasses purchases of fixed assets abroad used in the manufacture and sales of goods and services.
1 answer:
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Answer:
a. Debit to Prepaid Insurance of $10,000
* Option for this question was missing so I have attached a similar question with this answer and answered accordingly.
Explanation:
Insurance purchased for four years was actually prepaid insurance on May 1, Year 2.
The company expensed all amount by positing following entry ( which is a wrong entry)
DR. Insurance Expense $12,000
Cr. Cash $12,000
It should be entered as follow:
DR. Prepaid Insurance $12,000
Cr. Cash $12,000
At the end of the year 2 8 months has been passed for which $2,000 is accrued and it will be recorded, as all the amount is charged to the expense account we will adjusted the remaining amount of $10,000 to correct this mistake.
Now at the end of year 2 the correct entry which will settle the expense and prepaid insurance as well is as follow.
DR. Prepaid Insurance $10,000
Cr. Insurance Expense $10,000
Answer:
$14.96
Explanation:
Shipping and handling charges are attached.
Given: Discounted price= $65.55.
Regular sales price= $77.77
Sales tax= 6%.
Now, find the cost of coat after tax.
Cost of coat=
⇒ Cost of coat=
Adding shipping charges to the cost=
Hence, cost of coat after tax and shipping charges= $91.39.
Next finding total cost of coat if sold at discount after tax.
Cost of coat at discounted price after tax=
⇒ Cost of coat at discounted price after tax=
⇒ Cost of coat at discounted price after tax=
Adding shipping charges to the cost of coat=
Hence, cost of coat at discounted price after tax and shipping charges= $76.43.
Finding saving amount by ordering coat at the sale price or discounted price.
∴ Saving =
Saving=
Hene, Total saving by ordering coat at the sale price is $14.96
