Answer:
b. 116
Explanation:
The calculation of Consumer Price Index is shown below:-
CPI = ((Base year basket quantities × current year price) ÷ (Base year basket quantities × Base year prices)) × 100
= ((50 × $1.50) + (100 × $1.10)) ÷ ((50 × $1.20) + (100 × $1.00)) × 100
= (185 ÷ 160) × 100
= 115.6
0r 116
So, for computing the consumer price index for 2018 we simply applied the above formula.
Answer:
the answer would be d. I got it right on Plato
Answer:
This lease is regarded and classified as Capital lease.
Explanation:
This lease is regarded and classified as Capital lease.
Here, Callaway Golf Co. is the body financing the leased asset but the right ownership is with Photon Company.
Now; the present value of future payment is calculated as:
Present value of future payment =[PVA 6%,5 × Annual payment ]+[PVF 6%,5 × Residual value]
=[4.46511 × 31000] +[0.74726 × 15500]
= 138418.27+ 11582.53
= 150000
However the present value of minimum lease payment is equal or more than 90% fair market value ,as such we therefore conclude that this lease is a capital lease.
Answer:
The balance of allowance for doubtful accounts is $ 1,880
Explanation:
Computation of balance in Allowance for Bad Debts
Total credit sales $ 47 comma 000
Estimated bad debts as a % of sales 4 %
Balance of Allowance for Doubtful accounts $ 1,880
The balance is based on a % to credit sales basis. The bad debts expense for the year considers the balance in the allowance for doubtful accounts and the accounting entry is an adjustment amount.
