Answer:
Dr. Cost of goods Sold $850,300
Cr. Finished goods Inventory $850,300
Explanation:
Goods available to sale is the sum to Beginning Inventory and the production / Purchases for the period.
Finished goods Available for sale = Beginning Inventory of Finished goods + Production in the period
Finished goods Available for sale = $171,500 + $848,000 = $1,019,500
Cost of Goods sold is the cost of the unit sold which is incurred to produce / purchase that products. It is calculated by deducting the ending inventory from goods available to sale.
Cost of finished goods sold = Finished goods Available for sale - Ending Inventory of finished goods = $1,019,500 - $169,200 = $850,300
Answer:
Balance of Suppliers Account is $2200 debit
Explanation:
It is important to know that the Supplies Account increases on the debit side and decreases on the credit side.
On 1 February the account was $ 3080 and this was a debit since it was an existing balance.
Purchase during the year by Bonita Industries increased the Supplies Account. A debit entry of $2640 must be recorded.
Used supplies during the year decrease the Supplies Account. A credit entry of $3520 must be made
There for the balance left $2200(3080+2640-3520) is still on the increase side (debit).Hence the answer $2200 debit is correct.
Answer:
The increase in yield to maturity from 5.5% to 7% will cause the price of the bond to fall from $ 1,057.46 to $ 972.70
Explanation:
In order to ascertain the impact on the bond of a sudden increase in the yield to maturity from 5.5% to 7%, the present value of the bond, the current price is computed using yield of maturity of 5.5% and 7% respectively.
In calculating the present value, a discounting factor is used to state today's value of the future cash flows from the bond, given as 1/(1+r)^N, where r is the yield to maturity divided by 2 , in order to show that the bond is a semi-annual interest paying bond.The fact that the bond is a semiannual one means interest would be paid 14 times( 7 years *2)
The present value is computed in the attached.
Answer:
In the wake of shutting overall gain/misfortune to the proprietor, capital record, the salary rundown will have a parity of O.
Explanation:
The equalization of Income summary accounts is a transitory record and is moved to portion the record the parity might be Income (if income is higher than costs) or Loss Of income is lesser than costs. At the point when the impermanent record close, its equalization comes back to zero Therefore, in the wake of shutting net gain/deficit to the proprietor, capital record, the pay rundown will have a parity of O.
Answer:
$120,000
Explanation:
Calculation to determine How much of the passive loss is deductible
Using this formula
Deductible passive loss=Passive loss-Active income
Let plug in the formula
Deductible passive loss=$240,000-$120,000
Deductible passive loss=$120,000
Therefore How much of the passive loss is deductible is $120,000