Dec 31 Management Services ....................................$1875
To Prepaid Expenses.....................................................$1875
(Being prepaid expenses recognised for the year)
One of the main hinders of foreign investors on investing in the United States is that the U.S. is less stringent in regulating securities markets. This can be blamed on the rapid increase of trading volume competition which negates the market regulation.
Answer:
The straight-line depreciation method and the double-declining-balance depreciation method:
Produce the same total depreciation over an asset's useful life.
Explanation:
The straight-line and the double-declining-balance depreciation methods are two of the four depreciation methods allowed by US generally accepted accounting principles (GAAP). The other two methods are sum of the years' digit and units of production. The straight-line method is calculated by subtracting the salvage value from the asset's cost and either dividing the depreciable amount by the number of years or applying a fixed rate on the depreciable amount. For the double-declining-balance method, 100% is divided by the number of years of the asset's useful life and then multiplying by 2 to obtain the depreciation rate. Depreciation expense is then calculated on the declining balance until the salvage value is left. This is why they produce the same depreciation over the asset's useful life.
Answer:
The price level and GDP will fall.
Explanation:
A decline in money supply will increase the interest rate, as a result the investment will decline. This will cause production to decrease. An increase in tax will cause the cost of production to increase, reducing the supply. The taxes will decrease the disposable income, further reduing demand and cnsumption. A pessimistic expectation of business will also cause production to decline.
A rise in the value of dollars will make exports expensive, reducing exports. All of this will cause the GDP and price level to decline.
Answer:
The Adjusted Cost of Goods Sold for the year is $926,000
Explanation:
The formula to compute COGS is:
Ending inventory = Opening inventory + Work in progress - Unadjusted COGS (Cost of Goods Sold)
$ 23,000 = $28,000 + 918,000 - COGS
COGS = $946,000 - $23,000
= $ 923,000
The formula to compute the Adjusted Cost of Goods Sold is:
Adjusted Cost of Goods Sold = Unadjusted Cost of Goods Sold + Under- applied overhead
= $923,000 + $3,000
= $926,000
