The answer is: Jason can choose a term that ends when he wants to buy his car, and his money will earn more interest than in a simple savings account.
The purpose of choosing this type of account is to ensure that Jason's saving is locked until it reach the maturity date. With this, Jason limited himself from actually using the money for other purposes and he can focused on his goal of buying the car that he wants.
Answer:
Missing word
<em>"Shipping supplies on hand, January 1 of the current year $13</em>
<em>Purchases of shipping supplies during the current year $75</em>
<em>Shipping supplies on hand, counted on December 31 of the current year $20"</em>
<em />
1. Adjusting entry for insurance at December 31 of the current year.
S/n General Journal Debit Credit
a. Insurance expense $870
(6,960/24)*3=$ 600
Prepaid insurance $870
(Insurance expired)
b. Shipping supplies expenses $68
($13+$75-$20)
Shipping supplies $68
(Supplies used)
2. What amount should be reported on the current year's income statement for Insurance Expense?
Insurance expense = $870
Shipping supplies expense = $68
3. What amount should be reported on the current year's balance sheet for Prepaid Insurance?
Prepaid insurance = ($6,960-$870) = $6,090
Shipping supplies as on Dec 31. = $20
Answer:
Explanation:
a. The answer to question (a) goes thus:
Direct materials will be:
= (1,100 × $2.60) × $4.80
= $13,728
Direct labor will be:
= (1,100 × 1/2) × $14.00
= $7,700
Overhead will be:
= $7,700 × 90%
= $7700 × 0.9
= $6,930
b. The standard cost of one unit of product will be calculated as follows:
Direct materials = ($2.60 × $4.80) = $12.48
Add: Direct labor (1/2 × $14.00) = $7.00
Add: Overhead = ($7.00 × 90%) = $6.30
Standard cost = $12.48 + $7.00 + $6.30 = $25.78
Answer:
Option (C) . Recognized $9 millions Gross profit on the project in 2018.
Explanation:
Given Information,
Contract price = $150 millions
Incurred cost = $36 millions
Estimated cost = $84 millions
Now we need to find the Gross profit in 2018 = [ Revenue to be recognized - Cost incurred ]
Revenue to be recognized in 2018 = Contract price * percentage of completetion
Percentage of completion in 2018 = Incurred cost / (Incurred cost + Estimated cost)
= [ $36 millions / ($36 millions + $84 millions) ] * 100
= [0.3] * 100
= 30%
Percentage of completion in 2018 = 30%
Revenue to be recognized in 2018 = Contract price * percentage of completetion
= $150 millions * 30%
= $150 millions * 0.30
= $45 millions
Revenue to be recognized in 2018 = $45 millions
Now we need to find the Gross profit in 2018 = [ Revenue to be recognized - Cost incurred ]
= $45 millions - $36 millions
= $9 millions
\thereforeGross profit in 2018 = $9 millions
Then finally answer is Option (C) . Recognized $9 millions Gross profit on the project in 2018.
