Answer:Gundy Enterprise journal $
Date
Jan 31 2021
Income statementl Dr 641.67
Mortage Interest. Cr. 641.67
Recognition of interest payable on mortgage loan for December 2021
Jan 31 2021
Mortgage principal Dr 635.52
Mortgage interest Dr. 641.67
Bank Cr. 1277.19
Narration.payment of principal and interest Interest due on mortgage loan as at January 31 2021.
Explanation:
The monthly installment payments of $1277.19 consist of both the principal sum and accompanying monthly interest.
The interest needs to be first recognized as an expenses into the income statement and increase in the mortgage loan. This will prevent an over deduction on the mortgage loan.
Answer:
$2.18 per machine hour
Explanation:
The calculation of Indirect material cost is shown below:-
Flexible budget indirect material = variable cost + indirect materials cost
= $30,444 + $8,142
= $38,586
Cost per machine hour for indirect material = Flexible budget indirect material ÷ Company machine hours
= $38,586 ÷ $17,700
= $2.18 per machine hour
<span>Prepaid expenses are eventually expected to become expenses when their future economic value expires.
A common example of prepaid expenses are insurance/insurance polices because they are something you pay for in advance even though you may not need until a time in the future. Prepaid rent is also a prepaid expense because you are paying in advance for a future month. These items until used are considered an asset to the company. </span>
Answer with Explanation:
The analysis includes the assessment of Non profit organization's efficiency both in fundraising and spending, economy of operations and the effectiveness of the operations. This can be explained with an example. For example if the non profit organization has an objective to increase the book reading habit because it believes that the people who read more are not violent personalities and in this way they can reduce the crime rate. So it has established number of libraries in different communities. Now we will look at at what cost it has acquired these libraries (Economy), how much people have visited these libraries (Efficiency) and whether the crime rate in the community has sufficiently fallen or not (Effectiveness). So this helps in understanding whether the objective was met or not.
However when we analyze the financial statement of profit making organizations then we use many profit and efficiency ratios to assess the performance of the organization. These ratios can also be helpful if the NGO is in business as well. But most of the NGOs rely on grants and these grants are subjective to their previous performance.
The NGOs are also required to publish reports according to the grant provider's enforced accounting principles, rules and guidelines. Just take the example of US-AID program that requires the Non profit organization to publish financial reports in specific format and enforces different Generally Acceptable Principles to be used in preparing these financial reports. So yes it is much more different in analyzing the financial statements of Non profit organization and profit making organization.
Answer:
$200,000
Explanation:
Hawk Corporation purchased 10,000 shares at $50 per share of Diamond Corporation. The share were sold in 2019 at price of $70 per share to Diamond Corporation by Hawks Corporation. The net gain per share was $20 ($70 - $50)
The total gain from this investment : $20 per share * 10,000 shares
= $200,000 gain to Hawk Corporation from investment in Diamond Corporation.