Answer:
$2,380,500 and $357,500
Explanation:
The movement in the balance of inventory at the start and end of a period is as a result of sales and purchases. While sales reduces the balance in inventory, purchases increases the balance. This may be expressed mathematically as
Opening balance + purchases - cost of goods sold = closing balance
As such, when inventory is overstated at the start of the year, the ending inventory would also be overstated by the same amount, the cost of goods sold would be overstated and net income understated.
Correct amount of asset
= $2406000 - $25500
= $2,380,500
net income for the year
= $332000 + $25500
= $357,500
Answer:
The 10,000 units of output that will be supplied by the two firms to the market.
Profit that each firm would earn will be higher than previous.
Explanation:
The firm selling 4,000 units at the price of $10 per unit. If the output is increased to 6,000 units the price will increase to $11 per unit. If the new 6,000 units are produced along with the previous 4,000 units then the total output supplied by the two firms will be 10,000 units (6,000 + 4,000). The supply of goods in the market will increase so price will fall and the revenue for the firms will decline but they can benefit with sales volume and their profit can increase.
Answer:
It will be reported as gain.
Explanation:
If the fair value of the net identifiable assets acquired exceeds the fair value of the consideration given (purchase cost) will be a <u>negative goodwill.</u>
It will be due to <em>"bargain purchase"</em> and the accounting records the "negative goodwill" as a gain in the income statment
Hi there
First find the predetermined overhead rate
Predetermined oH rate is total estimated overhead divided by estimated direct labor
Predetermined oH rate is
450,000÷180,000
=2.5
the amount of overhead to be allocated to finished goods inventory if there is $20,000 of total direct labor cost in the jobs in the finished goods inventory is
2.5×20,000
=50,000. ...answer
Good luck!
Answer:
1. What was the issue price on January 1 of this year?
since the coupon rate was 6% and the market rate was the same, the bonds will be sold at par, so their issue price = $240,000
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
interest expense = coupon rate = $7,200 (for both June 30 and December 31)
3. What amount of cash is owed to investors on June 30 and December 31 of this year?
Face value = $240,000
4. What is the book value of the bonds on December 31 of this year, December 31 of next year?
Face value = $240,000
