Answer:
$15,0000 is recorded as revenue
Explanation:
The amount of $15,000 is recorded as revenue immediately the sale is made on March 17. The Discount allowed of $300 (2%).
"3/10, Net 20" means Fredo will enjoy 2% discount if he pays within 10 days or pays in full within 20 days. The amount recorded in revenue will not change regardless of which option he chooses.
Answer:
$386,080
Explanation:
In order to find the Coverage of sally's investment in life insurance for 10year can be done by making 10-year table
Year Cashflow Discount factorI5%) Present Value
$ $ $
1 50,000 0.9524 47,620
2 50,000 0.9070 45,350
3 50,000 0.8638 43,190
4 50,000 0.8337 41,135
5 50,000 0.7835 39,175
6 50,000 0.7462 37,310
7 50,000 0.7107 35,535
8 50,000 0.6768 33,840
9 50,000 0.6446 32,230
10 50,000 0.6139 30,695
NPV = Sum of all present values
NPV = $386,080
Answer:
2nd January
Dr Machinery $178,000
Cr Cash $178,000
( to record the purchase of used machine)
3rd January
Dr Machinery $4,000
Cr Cash $4,000
(to capitalized the cost of wire electricity and installation to put the purchased machine in a ready-to-use stage).
Explanation:
- According to the information, all the expenses relating to the purchase of used machine are in cash. Thus, Cash is credited at the total amount of $182,000, in which $178,000 is credited in 2nd January to record the purchased price and the other $4,000 (2,840 + 1,160) is credited in 3rd January.
- Under GAAP, the recorded costs of a purchased fixed asset should included all the costs incurred which are necessary to bring the fixed asset to a ready-to-use stage. As wire electricity cost & cost for securing the machine in its position are all necessary for the machine's operation, these costs should be capitalized.
The correct answer is market price.
Market price is the price that you normally pay when you want to buy something. This price is usually higher than what the store that is selling it got it from the manufacturer, because it is buying the product in bulks. You as a consumer will have to pay this price when all discounts, allowances, and rebates are subtracted.
Answer:
Increasing Returns on Investment helps business increase its capacity to to respond to customers, stockholders, governments, employees, and other stakeholders, which results in better-quality products, higher financial returns, and high quality of work life.
