Answer:
Hodge Company
Calculation of Estimated Loss on Inventory in the
Flood Using Gross Margin (Profit) Method
November 21, 2016
Inventory at November 1, 2016 $96,000
Purchases from November 1, 2016 <u>$131,000</u>
to date of flood
Cost of goods available for sale $227,000
<u>Estimated cost of goods sold:</u>
Net sales from November 1, 2016 $250,000
to date of flood
Less: Estimated gross margin <u>$75,000</u> <u>$175,000</u>
(250,000 * 30%)
Estimated cost of inventory at date of flood $52,000
Less: Salvage goods <u>$9,200</u>
Estimated loss on inventory in the flood <u>$42,800</u>
Answer:
The answer is D ( It forces lenders to disclose all charges to the borrower.)
Answer:
net income increased by $1,537.50
Explanation:
Obviously, the original income statement is missing, so I looked for a similar question:
sales revenue $16,500
COGS <u>($9,300)</u>
Gross profit $7,200
Operating exp.:
- Administrative $950
- Depreciation $1,300
- Shipping $412.50 <u>($2,662.50)</u>
Net income $4,537.50
net income increased by $4,537.50 - $3,000 = $1,537.50
Answer:
loan interest revenue for 2020 is $720
loan interest revenue for 2021 is $240
Explanation:
The loan interest revenue in the year 2020 is for 9 months out of the total loan tenure of twelve months:
interest revenue for 2020=$16,000*6%*9/12=$720.00
This would be debited to interest receivable and credited to interest revenue account.
interest revenue for 2021=$16,000*6%*3/12=$240.00