A rule that allows financial institutions to calculate simple interest using 360 days in a year is called the

Waterway Company uses a periodic inventory system. For April, when the company sold 450 units, the following information is avai

GalinKa [24]

Answer:

Ending inventory is $20,390

Cost of goods sold = $14,190

Explanation:

Given:

Unit sold in April = 450

Beginning inventory = 260 units × $29 = $7,540

Purchased on April 15 = 360 units × $35 = $12,600

Now goods sold is 450 units. Since company follows FIFO, it will sell 260 units @ $29 first and then 450 - 260 = 190 units from goods purchased on April 15.

Cost of goods sold = 7,540 + (190×35)

= $14,190

Closing inventory:

April 15 purchase = 35×(360 - 190)

= $5,950

April 23 purchase = 380×$38 = $14,440

Total closing inventory = 14,440 + 5,950 = $20,390

Cost of goods sold can be verified in the following manner:

Total cost of goods available for sale = $34,580

Ending inventory = $20,390

Cost of goods sold = 34,580 - 20390

= $141,90

6 0

3 years ago

A company pays a constant 6.5 dividend on stock. The dividend will maintain for the next 12 years and cease forever. The require

zalisa [80]

Answer:

$46.31

Explanation:

Calculation to determine the current share price

Using this formula

Current share price=6.5*Present value of annuity factor(9.1%,12)

Present value of annuity=Annuity*[1-(1+interest rate)^-time period]/rate

Let plug in the formula

Current share price=6.5*[1-(1+0.091)^-12]/0.091

Current share price=6.5*[1-(1.091)^-12]/0.091

Current share price=6.5*7.124793

Current share price=$46.31

Therefore the current share price will be $46.31

6 0

3 years ago

A company pays each of its two office employees each Friday at the rate of $210 per day for a five-day week that begins on Monda

marusya05 [52]

Answer:

Correct answer is:

Debit Salaries Expense $840

Credit Salaries Payable $840

Explanation:

2 employees each paid at $ 210 per day so daily salary expense is $210*2 = $420.

The accounting period ends on Tuesday and both employees work for Monday and Tuesday so the 2 days salaries expense is $420*2= $840.

As the salaries are paid on every Friday so there is a liability on a company for the 2 days salary payable to be recorded on accounting period close date i.e Tuesday.

4 0

3 years ago

Read 2 more answers

Last month a company had net sales revenues of $10,000; Cost of goods sold of $4,000; other operating expenses of $3,000; non-op

Pie

Answer:

The correct answer is B. 6.000

Explanation:

Gross profit only includes Sales Revenues and cost of goods sold. So you have to ignore all others. In this case the solution is given for Sales Revenues 10.000 - cost of goods sold 4.000 = Gross profit 6.000. Hope it helps

6 0

3 years ago

Identify the following characteristics as primarily related to financial accounting (FA) or managerial accounting (MA):1. Help

DaniilM [7]

Answer:

Financial accounting is the aspect of accounting that is concerned with the summary, analysis and reporting of financial transactions related to a business.

While managerial accounting is the aspect of accounting that is concerned with the identification, measurement, analysis, and interpretation of accounting information to help managers plan for the future, make decisions for the company, and determine if their plans and decisions were accurate and efficient.

1. Helps Creditors make lending decisions is related Financial Accounting.

2. Helps in planning and controlling operations is related to Managerial Accounting.

3. Is not required to follow GAAP is related to Managerial Accounting.

4. Has a focus on the future is related to Managerial Accounting.

5. Summary reports prepared quarterly or annually is related to Financial Accounting.

6 0

3 years ago