If the federal reserve board decreases reserve requirements for banking institutions, ____

Nidal Company reported inventory in the 2020 year-end balance sheet, using the FIFO method, as $185,000. In 2021, the company de

Ksenya-84 [330]

Answer:

Dr Retained earnings $14,000

Cr Inventory $14,000

Explanation:

There is a need to make adjustment to the inventory . Therefore,

Adjusted inventory

= New method of $171,000 - Old method of $185,000

= $14,000 decrease

It is to be noted that a lower inventory will have high costs associated with goods sold hence reduces profit/net income for the previous year by $14,000.

Also, the net income reports to retained earnings account hence decreases retained earnings.

Having made the above adjustment, we can assume that the average cost method was used for 2020 books.

3 0

3 years ago

Read 2 more answers

When two proprietors decide to combine their businesses and form a partnership, gaap usually requires that noncash assets be tak

Tcecarenko [31]

When proprietors decide to combine their business and form a partnership, gaap usually requires that non cash assets be taken over at : C. fair market vale
The data will be used to calculate the percentages of ownership of each combined companies

hope this helps

8 0

3 years ago

On December 29, 2019, Patel Products, Inc., sells a delivery van that cost $20,000. After recording the entry to bring the accum

Nataliya [291]

Answer:

On disposal, the carrying amount of the asset is derecognized by

Debit Other income/disposal account (p/l) $20,000

Credit Asset account $20,000

Being entries to derecognize the cost of the delivery van

Debit Accumulated depreciation account $18,000

Credit Other income/disposal account (p/l) $18,000

Being entries to derecognize the accumulated depreciation of the asset at the date of disposal,

Furthermore,

Debit Cash account $2,000

Credit Other income/disposal account (p/l) $2,000

Being entries to record cash collected on disposal of the asset

Explanation:

When the amount received from the disposal of an asset is higher than the carrying value of the asset, the company makes a gain on disposal. The proceed from the disposal of an asset may be recorded in the disposal or other income account.

On disposal, the carrying amount of the asset is derecognized by

Debit Other income/disposal account (p/l)

Credit Asset account

with the cost of the asset, then,

Debit Accumulated depreciation account

Credit Other income/disposal account (p/l)

With the accumulated depreciation of the asset at the date of disposal,

Furthermore,

Debit Cash account

Credit Other income/disposal account (p/l)

with the amount received from the disposal or sale of the asset

4 0

4 years ago

the output of a process is valued at $110 per unit. the cost of labour is $50 per hour including benefits

yaroslaw [1]

Based on the labor cost, and output of the process, the multifactor productivity for the week is 3.06.

<h3>What is the multifactor productivity for Week 1?</h3>

This can be found by the formula:

= Cost in week 1 / Value of output in week 1

Cost in week 1:

= Labor + Material + Overheads

= 12,195 + 21,392 + 8,546

= $42,133

Value of product:

= 110 x 1,173 units

= $129,030

Multifactor productivity is:

= 129,030 / 42,133

= 3.06

Find out more on multifactor productivity at brainly.com/question/17550779.

5 0

3 years ago

Kiano, a telecommunications equipment manufacturer, manufactures PDAs (P), wireless handsets (H), and blackberrys (B). They have

a_sh-v [17]

Answer:

Explanation:

Please check the attached file below to see answer to the given question

6 0

3 years ago

If the federal reserve board decreases reserve requirements for banking institutions, _____.