All categories

3 years ago

Which of the following journal entries is recorded correctly and in the standard format?

Business

1 answer:

Zanzabum3 years ago

3 0

Answer:

D. Salaries and Wages Expense 530

Advertising Expense 910

Cash 1440

Explanation:

Salaries and wages expense, and advertising expense, are expenses, therefore, when they increase, they are debited.

Cash is an asset account, when it decreases, as in this case, it is debited.

The entry would be:

Account Debit Credit

Salaries and Wages Expense 530

Advertising expense 910

Cash 1440

You might be interested in

The units of an item available for sale during the year were as follows: Jan. 1 Inventory 2,500 units at $5 Feb. 17 Purchase 3,3

Alenkasestr [34]

Answer:

ending inventory using FIFO = $11,700

ending inventory using LIFO = $7,500

ending inventory using average method = $9,435

Explanation:

date item units price total

Jan. 1 beginning inv. 2,500 $5 $12,500

Feb. 17 purchase 3,300 $6 $19,800

July 21 purchase 3,000 $7 $21,000

Nov. 23 purchase 1,200 $8 $9,600

total 10,000 $62,900

Dec. 31 ending inv. 1,500

ending inventory using FIFO = (1,200 x $8) + (300 x $7) = $11,700

ending inventory using LIFO = 1,500 x $5 = $7,500

ending inventory using average cost = 1,500 x $6.29 = $9,435

5 0

3 years ago

When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest paym

Sladkaya [172]

Question Completion:

A. More than the effective interest.

B. Less than the effective interest.

C. Equal to the effective interest.

D. More than if the bonds had been sold at a premium

Answer:

When bonds are issued at a discount and the effective interest method is used for amortization, at each subsequent interest payment date, the cash paid is:

B. Less than the effective interest.

Explanation:

This cash payment is the product of the bond's face value multiplied by the coupon rate. The interest expense is increased by the amortized portion of the discount for the particular period. This means that the interest expense will be higher than the cash payment for interest because of the discount granted at issuance. And the interest expense is the product of the outstanding debt multiplied by the effective interest rate.

8 0

3 years ago

Ed is taking off from work for 4 hrs. the afternoon and going to a baseball game. The ticket to the game cost $25 and it costs $

adell [148]

Answer:

The correct answer is option c.

Explanation:

The opportunity cost of a decision is the cost of sacrificing the second-best alternative. It is the indirect or implicit cost involved in a process.

The ticket to the game costs $25 and it costs $15 to park at the stadium.

Ed earns $15 an hour at this job.

He is taking off from work for 4 hrs. the afternoon and going to a baseball game.

The opportunity cost of going to the game will be equal to the wage he could have earned if he went to work instead of the game.

The opportunity cost

= $\$ 15\ \times\ 4$

= $60

5 0

4 years ago

The standard cost of Product B manufactured by Pharrell Company includes 2.0 units of direct materials at $6.9 per unit. During

LekaFEV [45]

Solution:

Given information,

SP=$6.9

SQ=27400 (13,[email protected])

AP=$6.85

AQ=27,500

Now,

Price variance is AQ(SP-AP), or 27,500($.2)=$5500 (This is favorable, since the materials were obtained at below average cost.)

Quantity variance is SP(SQ-AQ), or $6.9(-1000)= -$6900 (This is unfavorable, since more than the standard quantity was used.)

Total materials variance can be obtained two ways:

SQ*SP-AQ*AP, or totalling the two variances already calculated.

SQ*SP-AQ*AP = 189060 - 188375

SQ*SP-AQ*AP = 685

2. Given information,

SP=$6.9

SQ=27400 (13,[email protected])

AP=$6.85

AQ=27,500

Now, price variance: AQ(SP-AP)= 27,500(6.9-6.85) =1375

Quantity variance: SP(SQ-AQ)=6.9(27,400-27,500)= -690

Thus total variance: -690

(Note that negative numbers are unfavourable, positive numbers are favourable.)

3 0

4 years ago

Corporate finance (Financial management) deals with main three types of managerial decision making problems in the context of bu

Roman55 [17]

Answer:

staffing decision making problems

Explanation:

In simple words, corporate finance relates to the branch of finance that studies how and when an organisation and individuals should incest their money in the market.

In this subject matter. the analyst takes into consideration various market factors such as interest rates, GDP etc. and by applying various tools and methods make a decision.

It particularly deals with investment decisions and asset management problems and not staffing decisions.

4 0

3 years ago