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Vlada [557]
2 years ago
13

Sheridan Company signed a long-term non cancellable purchase commitment with a major supplier to purchase raw materials in 2021

at a cost of $1,001,800. At December 31, 2020, the raw materials to be purchased have a market value of $948,900. In 2021, Sheridan paid $1,001,800 to obtain the raw materials which were worth $948,900. Prepare the entry to record the purchase.
Business
1 answer:
stepan [7]2 years ago
6 0

Answer:

Unrealized holding loss - Income (purchase commitments) $ 52,900 Dr

Estimated liability on purchase commitments ( $ 1,001,800 - $ 948,900 ) $ 52,900 Cr

Explanation:

Unrealized holding loss - Income (purchase commitments) $ 52,900 Dr

Estimated liability on purchase commitments ( $ 1,001,800 - $ 948,900 ) $ 52,900 Cr

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If the sides market (betting on a team against the point spread) for NFL football betting is semi-strong form efficient, what do
Black_prince [1.1K]

Answer:

It means that sides market for NFL football betting which is semi strong form of efficient market hypothesis cannot utilize technical or fundamental analysis to earn higher gains since stocks have already adjusted with latest football information release.

Explanation:

Semi strong form of market is an aspect of Efficient Market Hypothesis which provides that security prices adjust rapidly to available public information.

It states that changes in stock prices is an outcome of release of new public information. Based on the information that is made available, investors actions are based, which ultimately leads to changes in prices.

Semi strong form follows the belief that since all public information is used while arriving at a stock's current price, investors cannot utilize technical or fundamental analysis to earn higher returns.

4 0
2 years ago
The Sneed Corporation issues 10,000 shares of $50 par preferred stock for cash at $75 per share. The entry to record the transac
larisa [96]

Answer:

The answer is D.

Explanation:

Value of cash received is :

10,000 shares x $75

=$750,000

And that's a debit as it is shown in the question because cash was received.

Now the credit side.

Value of preferred stock is $50

So we have:

$50 x 10,000 shares

=$500,000 preferred shares.

Paid-in Capital in Excess of Par ValuePreferred Stock is $25 ($75 -$50)

So the value will be $25 x $10,000

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3 0
3 years ago
Hassock Corp. produces woven wall hangings. It takes 4 hours of direct labor to produce a single wall hanging. Hassock standard
navik [9.2K]

Answer:

Efficiency variance  =$9,860   unfavorable

Explanation:

Labour efficiency variance is the difference between the actual time taken to achieve a given production output less the standard hours allowed for same multiplied by the standard labour rate

                                                                                                  Hours

11,900 units should have take (11,900× 4hrs)                          47,600                      

but did take                                                                              <u>48,180</u>

Difference                                                                                   580  unfavorable

Standard hours                                                                     <u> ×   $17 </u>

Efficiency variance                                                           <u>$9,860   unfavorable</u>

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Answer:

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