Answer:
the finance charge is $420
Explanation:
Finance charge constitutes Interest cost to be paid on the loan. Interest compensate the lender for forgoing the alternative of investing the money elsewhere.
Annual finance charge :
Interest charge = $2,000 x 6% = $120
After two years :
Interest charge = $120 x 2 = $420
Therefore, the finance charge is $420.
Answer:
(A) Budged amounts
(B) A list of all controllable costs
(C) The difference between actual and budgeted amounts
(D) Actual amounts
Explanation:
Responsibility accounting is a system that gathers or receives, summarizes, and reports accounting data pertaining to the responsibilities of individual managers. This system makes available every information needed for the evaluation of each manager on the revenue over which he presides.
A responsibility accounting report contains those revenues presided over by the responsible manager. It also contains all of the responsibility accounting budgets made for each department and summaries them in one report. When both controllable and uncontrollable items are included in the report, accountants should clearly separate the categories.
Answer:
a.
Cash 27000 Dr
Common Stock 13500 Cr
Paid in capital in excess of par-Common stock 13500 Cr
b.
Cash 135000 Dr
Preferred Stock 135000 Cr
Explanation:
a.
When we issue stock at premium, we always record the amount received from such issuance of stock at full. So, the cash account will be debited for 4500 * 6 = 27000
However, we record the common stock issued at par value and the remaining is credited under the reserve account which is Paid in capital in excess of par.
Thus the common stock will be credited by its par value of 4500 * 3 = 13500 and the remaining 4500 * 3 will be credited to the Paid in Capital account.
b.
The par value of the preferred stock is 4500 * 30 = 135000
Thus the preferred stock is issued at par and we simply debit the cash received from the issue and credit the preferred stock.
Answer:
Crane Company
If Crane Company uses LIFO, the value of the ending inventory is:
= $440.
Explanation:
a) Data and Calculations:
Units Unit Cost Total Cost
1/1/20 inventory 150 $4.00 $600
1/15/20 Purchase, 70 5.10 357
1/28/20 Purchase, 70 5.30 371
Total 240 $1,328
1/31/20 inventory 110 $4.00 $440 ($4.00 * 110)
b) The LIFO method assumes that goods that are sold first are the last that were purchased. Therefore, the cost of the ending inventory is usually based on the cost of the earlier inventory purchased. In our case, the cost per unit was based on the beginning inventory balance.
It is important because that is how you budget and how you are able to save money if an emergency comes up
