Answer:
The company’s inventory be reported on the balance sheet as $3,150.
Explanation:
GAAP and IFRS requires that the inventory of the company should be recorded as Lower cost and Net realizable value of the inventory.
According to given data
Available Inventory = 210 units
Cost of Inventory = 210 units x $20 = $4,200
Net realizable value is the value of the inventory which can be recovered on the immediate sale. the current market value of the inventory is $15.
So,
Net realizable value is = 2,100 units x $15 = $3,150
As the Net realizable value is lower than the cost of the inventory, $3,150 should be reported as inventory on the balance sheet.
Answer:
contra-assets account.
Credit balance
balance sheet
permanent account.
Explanation:
The allwoance is an account used to adjust accounts receivable to a net value therefore, it is used as contra-asset (to adjust an asset)
Therefore, as assets normal balance is debit a contra-assets in order to adjsut will use credit balance.
<em>Notice:</em> contra-assets decrease the net value of the assets They never increase it. If the princip0al asset increase then, the accounting would use the main asset account, not the contra-asset
Lastly, as it adjsut an asset it will be find in the balnce sheet or in the note to the balance sheet to disclosure the procedure to arrive to net accounts receivables
As it is find in the balance sheet is a permanent account His balance passes through the acouting cycles
Answer:
1. estimate the quantity of raw materials to be purchased.
2. ending raw materials inventory for the last period.
Explanation:
A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.
The first step of the budgeting process is to prepare a list of each type of income and expense that will be part of the budget.
The final step by the management of an organization in the financial decision making process is making necessary adjustments to the budget.
The benefits of having a budget is that it aids in setting goals, earmarking revenues and resources, measuring outcomes and planning against contingencies.
1. The purpose of preparing a direct materials budget is to estimate the quantity of raw materials to be purchased. This includes the raw materials that would be used for the manufacturing of finished goods.
2. In a direct materials budget, the desired ending raw materials inventory for the year is equal to the ending raw materials inventory for the last period.
Answer:
<em>I can see there are no choices.</em>
Purchase or Lease Stage
Explanation:
The "Hardware Lifecycle" has several stages or phases. These are:<em> Plan, Purchase or Lease, Deploy & Install, Maintenance, Upgrade, Parts & Repair, Extend, Buyback or Trade In and Dispose or Recyle.</em>
The situation above is part of the<em> "Purchase or Lease Stage."</em> This stage <u>allows the person to buy the computer that they wanted.</u> When it comes to the IT hardware, the person can either "Buy" or "Lease." One may choose the second option if he is not yet ready to buy.
So, this explains the answer.
(a) Total assets = Current assets + Fixed assets
Total assets = 2180 +9400 = 11,580
Total liabilities = Current liabilities + long term debt
Total liabilities = 1355+3990 = 5,345
According t the accounting equation, Stockholders equity = Total assets - Total liabilities = 11,580-5,345 = 6,235
Stockholders equity = $6,235
(b) Working capital = Current assets - Current liabilities
Working Capital = 2180-1355
Working Capital = $825
