Answer:
Journal Entry for establishing a Petty cash fund
Date Particulars Debit Credit
Jan 1 Petty cash A/c $270
To Cash A/c $270
(Being Petty cash fund established)
Journal Entry for reimbursement of petty cash
Date Particulars Debit Credit
Jan 8 Postage A/c $36
Transportation A/c $13
Delivery Expense A/c $15
Miscellaneous Exp A/c $25
To Cash A/c $89
(Being reimbursement of petty cash expenses
incurred from petty cash fund)
Journal entry for Increasing the limit of Petty cash fund
Date Particulars Debit Credit
Jan 8 Petty Cash A/c $50
To Cash A/c $50
(Being Petty cash fund limit extended to $320 i.e., we have
to add $50 to existing fund in order to make it $ 320.)
Answer:
The new machine should not be purchased.
Explanation:
initial outlay = -$3,700 + $1,000 = -$2,700
cash flow years 1-4 = $700
discount rae = 8%
Using a financial calculator, the NPV = -$381.51
Since the NPV is negative, the new machine should not be purchased.
Answer:
The amount allocated to ending inventory is $ 11,520
Explanation:
Using LIFO basis of inventory valuation implies that the items received last are sold first,in other words, sales of 160 units comes from the purchases of 240 units made on July 5,that leaves 80 units of the purchase in closing inventory.
However,the sale of 140 units on 30 July is taken from purchases of 120 units on July 21 as well as purchases of July 5.
The amount allocated to ending inventory is computed below:
July 5 60 units at $112 $6,720
opening inventory 40 units at $120 $4,800
Value of closing inventory $11,520
Answer:
The correct answer is letter "C": paid out of aftertax profits.
Explanation:
A dividend is a cash distribution by a company to its shareholders. It is a payment made as a bonus to investors from publicly listed firms or funds for putting their money into the project. They can be paid either in cash or in stocks or sometimes in other forms of property only when the aftertax earnings have been calculated.
Answer:
Transfer
Explanation:
Risk transfer is a risk management and control strategy that involves the contractual shifting of a pure risk from one party to another. One example is the purchase of an insurance policy, by which a specified risk of loss is passed from the policyholder to the insurer
