Answer: The effect will be that the results will be distorted by registering a gain in the incorrect period, since 3 months correspond to the current year, from October-December and the rest corresponds from January-March of the following year.
The correct way to record these 3 months is as a liability (deferred income) when the income is realized they are taken to the income statement.
A debtor<span> is someone who owes a financial obligation (a “debt”) to another, known as the </span>creditor<span>. An example of a </span>debtor-creditor relationship<span> is where a bank lends money to an individual or company, on the basis that the money has to be paid back at some point to the bank</span>
Answer:
Monthly payment would be $250.37
Explanation:
The monthly payment can be determined using excel pmt formula as follows:
=pmt(rate,nper,-pv,fv)
rate is the APR of 6.25% per year divided by 12 months in a year
nper is the number of years the payments would last which is 6 years multiplied by 12 months
pv is the initial amount of finance which is the net amount of $15,000
fv is the total amounts to be repaid which is unknown
=pmt(6.25%/12,6*12,-15000,0)=$ 250.37
The amount of monthly payment is $250.37
Answer:
The correct answers are letters "A", "B", and "C": straight-line depreciation, manager's salary, store rent.
Explanation:
Fixed Costs are business expenses that do not change as the level of production goes up or down. They are one of two types of business expenses the other being variable cost. Variable costs do change as the volume of production changes. Examples of fixed costs are high-executive salaries, rent, depreciation, and insurance. Examples of variables costs are commissions, raw materials, and transportation fees.
Answer and Explanation:
The computation is shown below:
But before that first determine the predetermined overhead cost which is
= Estimated total manufacturing cost ÷ estimated labor hours
= $359,640 ÷ $9,990
= $36 per hour
Now the total cost is
= Direct material + direct labor + manufacturing overhead
= $25,500 + 1,700 × $10 + $1,700 × $36
= $25,500 + $17,000 + $61,200
= $103,700
Now the bid price is
= Job cost - markup profit
= $103,700 - $103,700 × 31%
= $103,700 - $32,147
= $135,847