Answer:
d. book value at beginning of year x 2/estimated service life
Explanation:
Duble Declining method of depreciation is a method in which the depreciation is being charged at double rate than in the straight line depreciation method method do. It uses the double amount of carrying book value and estimated useful life. The depreciation charged at a faster rate.
Formula:
Depreciation = Book value of asset at the start of year x 2 / useful life
Answer: please refer to the explanation section for journals and notes
Explanation:
1 April
DR Inventory 23000
CR Trade Payable 23000
inventory is purchased on Free on Board Shipping terms, risks and Ownership of inventory transfers to Kerber Co the moment Wilkes company ships the inventory. inventory must be recognised
6 April
DR Freight costs 900
CR Bank 900
DR Inventory 900
CR Freight costs 900
Kerber Co Paid Freight costs of $900. There are two events happening in this transaction being the payment of freight costs and the capitalisation of freight costs. Freight costs are capitalised (included in the value of inventory) as they are costs necessary to get the inventory in to the premises of the customer (Kerber Co).
7 April
DR Equipment 26000
CR Creditor/Liability 26000
Kerber Co purchase inventory on credit. equipment is debited because Equipment is an asset and liability is credited.
8 April
DR Trade Payable 3000
CR inventory 3000
Damaged inventory returned will decrease inventory balance and also decrease the amount owed to the creditor (Wilkes Company)
. Trade Payable account is Debited and inventory account is credited to record the decrease in inventory and amount payable
15 April
DR Trade Payable 20000
CR Bank 20000
23000 - 3000 = 20 000
recording payment made to the Creditor for inventory purchased or settlement of the trade payable account
Answer:
The correct answer is option b.
Explanation:
A dairy is producing 960 gallons of milk per day.
Each milker works 8 hours and produces the same amount of milk.
For per hour of labor the diary produces 12 gallons of milk.
Quantity of milk produced by a labor in 8 hours
= 
= 
= 96 gallons
The number of workers required to produce 960 gallons per day
= 
= 
= 10 workers
Answer:
Lease
Explanation:
A company is just getting started and needs new equipment but does not have a large amount of cash since the company business will also require frequent updating of the equipment it is better to lease the equipment.
Answer:
A)Choose A B) Choose B C) 0.45
Explanation:
We will use the NPV formula to calculate the IRR and them choose investment opportunity with a high IRR
NPV (A)=CF/R -II
0 =2.4/r -10 m
r=0.24/24%
NPV(B)=1.8/r-0.045-10
0=1.8/r-0.045-10
r=0.135/13.5%
Therefore choose A
B)NPV (A)
=2.4/0.064-10
=$27.5 MIL
NPV (B)
=1.8/0.064-0.045 -10
=1.8/0.019-10
=$84.74 MIL
Therefore choose B as it has higher NPV
C) Equate the NPV to in order to calculate the cost of capital
2.4/r -10 =1.8/r-0.045 -10
2.4/r=1.8/r-0.045
1.8r=2.4r-0.108
0.6r=0.108
r=0.556/5.56%
=
