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ololo11 [35]
3 years ago
14

In October of year one, a firm committed to a purchase of inventory at a total cost of $26,000. The contract is irrevocable and

specifies a delivery date in March of year two. At the end of year one, the market value of the inventory under contract is worth $23,000 at current cost. Choose the correct reporting for the year one financial statements:_______.
Business
1 answer:
nikklg [1K]3 years ago
6 0

Answer:

According to IAS 36 Impairment of assets says that the asset must be recorded at the lower of:

  • Cost $26,000
  • Net realizable Value $23,000

The lower value is $23,000, which must write off value of inventory with an amount of $3000. So the journal entry would be:

Dr Impairment Losses $3000

Cr        Advances paid for inventory     $3000

This entry is the fair presentation of the actual value of the advances paid.

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Vaughn Manufacturing began the year with retained earnings of $114000. During 2022, the company issued $84500 of common stock fo
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<h3>Net income for the year 2022</h3>

Using this formula

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2 years ago
Q 8.14: The financial statements of the Imagine Company report net sales of $1,000,000 and accounts receivable of $700,000 and $
sesenic [268]

Answer:

2 times

Explanation:

The computation of accounts receivable turnover is shown below:-

Account receivable turnover ratio = Net credit sales ÷ Average accounts receivable

where,

Net credit sales is $1,000,000

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= $500,000

Accounts receivable turnover = Net sales ÷ Average accounts receivable

= $1,000,000 ÷ $500,000

= 2 times

6 0
4 years ago
I don't have moey. What is the best job to get when you're in middle school?
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Answer:

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Explanation:

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3 years ago
Read 2 more answers
1) The Johnson Manufacturing Co. has an annual operating budget of $750,000. Each year it budgets for the following expenses: po
nevsk [136]

Answer:

See below

Explanation:

The percentage allocated to each socially responsible action

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As a percentage

= $37,000/$750,000 x 100

=0.0493333 x 100

=4.933%

2. Community project

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3. Employee fitness

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As a percentage

=$7500/$750,000 x 100

=0/01 x 100

=1%

4. The total amount spent is

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3 years ago
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