Answer:
checking accounts, saving accounts, certificates of deposit, and loans.
Explanation:
Answer and Explanation:
The creation of the chart of the account by applying the standard numbering system is presented below:
For the assets it would be started by 100
For the liabilities it would be started by 200
For the owner equity it would be started by 300
For the revenue it would be started by 400
And, for the expenses it would be started by 500
Now the creation is as follows
<u>Balance sheet </u>
<u>Assets Liabilities Stockholder equity</u>
100 Cash 200 Account payable 300 R. capital
110 Automotive supplied 210 unearned revenue 300 R. withdrawal
120 equipment
<u> Income statement</u>
<u> Revenue Expenses </u>
<u> </u> 400 service revenue 500 utilities expense
510 advertising expense
<u></u>
Answer:
the amount of depreciation for Year 1 is $3,948
Explanation:
Step 1 : Determine Cost of Equipment
<em>Cost according to IAS 16 means purchase price plus other costs directly incurred in bringing the asset to location and condition of use as intended by management.</em>
Purchase Price $31,000
Installation and testing $2,800
Total Cost $ 33,800
Step 2 : Determine the depletion rate
Depletion rate = (Cost - Salvage Value) ÷ Estimated Production
= ($ 33,800 - $5,600) ÷ 100,000 units
= 0.282
Step 3 : Determine the Depreciation Expense
Depreciation Expense = Depletion rate x Units Produced
= 0.282 x 14,000 units
= $3,948
Conclusion
the amount of depreciation for Year 1 is $3,948
Answer:
Holmes should sell process the product further, because the profit if process further is higher than sell product now.
Explanation:
Net profit if sell product now is $37,500 ( = sales to another manufacturer $97,500 – already spent $60,000)
Sales as in process further/ Incremental Accounting
Sales: $695,125 (=$415 x 1,675 units)
Additional Process costs: $485,570 (=$290 x 1,675 units)
Net profit if process further = total sales $695,125 – already spent $60,000 – additional process cost $485,570 = $149,555, higher than profit $37,500 if sell now.
