Answer:
The answer is b.Cash ,000 Notes Payable ,000
Explanation:
The exact entry Drake Builders Company has to record in its accounting book for the proceeds received from the issuance of the note is:
1st January
Dr Cash 400,000
Cr Note Payable 400,000
As at the time the note is issued, no interest expenses has been incurred, all the answer with Interest expenses can be eliminated.
In fact, interest expenses is only incurred and accrued during the lifetime of the note, based on the number of days the note is hold; that is, from the day the fund is lend out to Drake Builders Company; not on the day of issuance.
States dont collect income tax the government does so B
Answer:
The change in net working capital resulting from the addition of the microbrewery is $5,500 (decrease)
Explanation:
There are 3 key elements of working capital. These are;
- Inventory
- Accounts payable
- Accounts receivable
Given;
increase in inventory = $8,000
increase in Accounts payable = $2,500
Change in net working capital resulting from the addition of the microbrewery = -$8,000 + $2,500
= -$5,500
<span>Experience attributes are those that require some trial or consumption before evaluation.</span>
Answer:
Sales volume variance $26,250 Favorable
Explanation:
<em>The sales volume variance is calculated as the difference between the budgeted and the actual sales volume multiplied by he standard contribution per unit</em>
Units
Budgeted sales units 225,000
Actual sales units <u> 230,000</u>
Sales volume 5,000 favorable
Standard contribution(9-3.75) <u> × $5.25</u>
Sales volume variance <u> $ 26,250 </u>
Sales volume variance $26,250 Favorable
<em>Note standard contribution = standard selling price - standard variable cost</em>