The correct answer is choice D.
The Stockholders’ Equity section of the balance sheet includes stock, paid-iin capital and retained earnings.
Answer:
Classification of costs as period cost or product cost
a1. Property taxes is 30% period cost
a2. Property taxes is 70% product cost (MOH)
b. Wages and benefits to factory workers = product cost (DL)
c. Depreciation on production equipment = product cost (MOH)
d. Salaries to quality control inspectors in the plant = product cost (MOH)
e. Repairs and maintenance on factory equipment = product cost (MOH)
f. Standard packaging materials = product cost (MOH)
g. Lease payment on administrative headquarters = period cost
h. Telecommunication costs for customer service = period cost
Explanation:
Period costs are fixed costs incurred that relate more to the period in which they are incurred than to the product. They are not directly related to the product and are treated as expenses. Product costs, on the other hand, are costs incurred in producing the product. They may be in the form of direct materials, direct labor, or manufacturing overhead costs.
Answer:
• The value of information is often linked to its timeliness.
• Businesses report financial information at regular intervals to ensure timeliness of data.
• Useful information must reach decision-makers frequently.
Explanation:
Periodic reporting simply explains that the finances of businesses are reported in distinct time periods. The purpose of periodic reporting is simply for the provision of information.
Based on the options given, the true options regarding periodic reporting are:
• The value of information is often linked to its timeliness.
• Businesses report financial information at regular intervals to ensure timeliness of data.
• Useful information must reach decision-makers frequently.
Answer:
Given that,
Value of promissory note = $11,700
Time period = 60 days
Interest rate = 14%
Interest revenue:
= Note value × Interest rate × Time period
= $11,700 × 0.14 × (60/360)
= $273
Therefore, the journal entry is as follows:
Accounts receivable A/c Dr. $11,973
To Interest revenue $273
To Notes receivable $11,700
(To record the dishonored note)
Answer:
Sole Proprietorship
Explanation:
Sole proprietorships own all the assets of the business and the profits generated by it. They also assume complete responsibility for any of its liabilities or debts.