Answer:
D) Debit Accounts Payable $1500; Credit Merchandise Inventory $1500
Explanation:
The journal entry to record the merchandise return is shown below:
Account payable A/c Dr $1,500
To Merchandise inventory A/c $1,500
(Being returned inventory is recorded)
For recording the returned inventory we debited the account payable and credited the merchandise inventory account so that the proper posting could be done
The size of the dividend per share of stock depend on : The corporation's profit
Dividend per share is calculated by : Total dividend / Total shares outstanding,
Which mean that dividend per share will increase if the total dividend increases.
Meanwhile total dividend will increased if the company gains more profit
Answer:
Luther Corporation
Current Ratio for 2006 is closest to:
1.1 : 1
Explanation:
a) Data and Calculations:
Total Current Assets = $144 million
Total Current Liabilities = $132 million
Current Ratio = Current Assets/Current Liabilities
= $144/$132
= 1.1 : 1
b) Luther Corporation's current ratio is a liquidity measure that shows Luther's ability to pay off short-term obligations worth $132 million or those due within one year with its current assets of $144 million. The ratio tells investors and analysts of Luther Corporation how Luther can use its current assets to pay off its current debts. Since Luther's current ratio is higher than 1, it is considered good, depending on the industry average. This means that Luther's current ratio of 1.1 : 1 should not be considered in isolation, but in comparison with other firms in the industry and its performance over a number of years.
I think it might be C, but i'm not sure
Answer:
35,000 equivalent units
Explanation:
Equivalent Units E.U) are notional whole units which represent incomplete work and are used to apportion costs between between work in progress and completed work.
To compute as
Equivalent Units = Degree of completion (%) × units
Items Units Workings E.U
Completed 28,000 28,000× 100% 28,000
Closing WIP 14,000 14,000 × 50% 7,000
Total equivalent units 35000
The total equivalents for conversion cost
= 28,000 + 7,000
= 35,000
