Answer: Increase by $3,500
Explanation:
The Net Working Capital of a company is calculated by subtracting Current liabilities from current assets.
Raw materials are current assets and Accounts Payable are current liabilities.
The Net working capital resulting from accepting this project is;
= 12,000 - 8,500
= $3,500
Net Working capital investment would increase by $3,500.
Answer:
55,000 Credit balance
Explanation:
Mango Company
Predetermined overhead rate /Estimated overhead cost
= $600,000 / $300,000
Estimated direct labor cost = 200%
Applied overhead :
=Actual direct labor cost of $335,000 × 200%
= $670,000
Overhead incurred-Overhead applied
$615000 – $670,000
=$55,000
Therefore At year-end, the balance in the Factory Overhead account is a: credit of $55,000
Answer:
The statement is: True.
Explanation:
The Adjusted Gross Income (<em>AGI</em>) is a measure based on individuals' gross income that serves as the basis for different deductions, among them, taxes. Taxpayers can request a tax credit based on certain expenditures that can be eligible for deduction. To do so, they must itemize those expenses in <em>Form 1040</em> (Schedule A). Otherwise, the deduction will be based on the taxpayer's AGI.
Answer: E. 18,000
Explanation:
Wesley Corporation has 80,000 shares of common stock authorized. This the total amount of common stock that is available for sale by the company.
Only 50,000 shares of common stock were issued and 12,000 shares of common stock as held as treasury stock.
Then the total number of outstanding shares of Wesley Corporation amounts to 80,000 - 50,000 - 12,000 = 18,000
Answer:
Explanation:
The adjusting entry is shown below:
Cash Dividend A/c Dr $500,000
To Dividend payable $500,000
(Being dividend is declared)
The dividend amount is computed below:
= Number of shares held × cash dividend per share
= 100,000 shares × $5
= $500,000
As dividend is declared so we debited the cash dividend account and credited the dividend payable as it is a current liability
