Answer: $3000
Explanation: Allowance for doubtful accounts is the contra account to accounts receiveable when all the bad debts need to be accounted for. The bad debts reduces the accounts receivable line but all bad debts are actually deducted from the allowance for doubtful accounts.
The allowance for doubtful accounts for that year is calculated as 5% of the accounts receivable balance. This amounts to $8000 (160000 x 5%) before bad debts have been accounted for. Allowance for doubtful accounts moves in the opposite direction as accounts receivable because it is a contra account to this line item. At the end of the year before year end closing entries are done, and after the bad debts have been accounted for, the balance on the allowance for doubtful accounts is $5000.
This means that bad debts for that year is:
8000 (balance before bad debts have been accounted for)
- 5000 (balance after bad debts have been accounted for)
= $3000.
Answer:
1. Time spent away from family is an implicit cost.
2. Transportation is an explicit cost
3. Forfeited working experience is an implicit cost
4. Books and materials is an explicit cost
5. Forgone earnings are an implicit cost
Explanation:
A college is an educational institution that provides opportunities for higher learning and specialized professional training. A decision to go to college should be conscious one that takes into consideration all the important aspects. The most important consideration is the cost of education, since attending college is usually an expensive proposition. One needs to consider the different costs that they will meet, whether implicitly or explicitly. Lets us consider the following implicit and explicit costs as shown;
1. Implicit cost: an implicit cost is a cost incurred without necessarily spending money. They are more of an opportunity cost that is calculated from the alternatives undertakings that one has sacrificed. An implicit cost is not an accounting cost but an economical cost that tends to consider options that are not actual expenditures. They are; time spent from family, forfeited working experience and forgone earnings. These are actually items that one sacrifices when he/she decides to go to college. Time spent from family is an implicit cost since one will spend most of his or her time in college. Attending college also means that one wont be able to go for a job and get some working experience while earning, therefor this is also an implicit cost. Explicit cost are determined by estimating the value of the activity sacrificed.
2. Explicit costs: an explicit cost is a type of accounting cost that needs one to actually spend money. It is an out of pocket cost where one has to use money to purchase a good or service. Examples are Books and materials. College students are often required to purchase specific books and materials for study. Transportation is also a cost that requires one to spend on bus fare or even cab fare to and from college. These are costs that require one to actually use money.
Answer:
Please see attached solution
Explanation:
a. Cost of goods sold . Detailed explanation attached.
b. Ending inventory. Detailed explanation attached.
Note 1.
Weighted average cost per unit on January 20
= $1,545,000/20,000 units
= $77.5
Note 2
Weighted average cost per unit on January 30
= $948,000/12,000 units
= $79.00
Answer:
A) Part-time members must sever employment relationships with former employers
D) IASB shall comprise 16 members, and up to 3 of those members may be part-time
Explanation:
Since December 1, 2016, the International Accounting Standards Board (IASB) has 14 board members (reduced from 16 by the 2015 constitution review). All of the 14 members are full time members, there are no more part time members. Each member is appointment for a 5 year initial term that can be renewed for either a 3 or 5 year second term. But no member can serve for more than 10 years.
Answer:
It is a wholly owned subsidiary so the Income Statement will include the figures of both the companies in the consolidated Income Statement. However the equity side of Balance Sheet will include share capital of only the parent company and include retained earnings of both the companies, assets will added up of the two companies and reported in the Balance Sheet however goodwill of the subsidiary will also be reported and liabilities will also be added up and reported in a same manner.
Explanation:
Because the data is not completely provided a general idea is provided here:
It is a wholly owned subsidiary so the Income Statement will include the figures of both the companies in the consolidated Income Statement. However the equity side of Balance Sheet will include share capital of only the parent company and include retained earnings of both the companies, assets will added up of the two companies and reported in the Balance Sheet however goodwill of the subsidiary will also be reported and liabilities will also be added up and reported in a same manner.
