Answer:
The adjusting entry for depreciation on December 31, 2018:
Debit Depreciation expense $7,500
Credit Accumulated depreciation $7,500
Explanation:
The company purchases new equipment on August 1, 2018. At the time of purchase, the equipment is expected to be used in operations 48 months. The company depreciates the equipment evenly over the 48 months ($1,500/month). From August 1, 2018 to December 31, 2018, the equipment is expected to be used for 5 months.
Depreciation expense for 2018 = $1,500 x 5 = $7,500
The adjusting entry for depreciation on December 31, 2018:
Debit Depreciation expense $7,500
Credit Accumulated depreciation $7,500
Answer:
FIFO - Treats the oldest inventory purchases as the first units sold.
Disclosure Principle - A company should report enough information for outsiders to make informed decisions about the company
Specific Identification - c. Identifies exactly which inventory item was sold. Usually used for higher cost inventory.
Weighted-Average - Calculates a weighted average cost based on the cost of goods available for sale and the number of units available.
Principle whose foundation is to exercise caution in reporting financial statement items. - Conservatism
f. Treats the most recent/ newest purchases as the first units sold. - LIFO
consistency principle = g. Businesses should use the same accounting methods from period to period.
Principle that states significant items must conform to GAAP. - Materiality
Explanation:
LIFO means last in first out. It means that it is the last purchased inventory that is the first to be sold.
FIFO means first in, first out. It means that it is the first purchased inventory that is the first to be sold
Answer:
cost of goods manufactured= $218,400
COGS= $210,400
Explanation:
<u>To calculate the cost of goods manufactured, we need to use the following formula:</u>
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cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
cost of goods manufactured= 17,800 + (25,800 + 72,800 - 21,800) + 92,800 + 41,800 - 10,800
cost of goods manufactured= $218,400
<u>Now, we can determine the cost of goods sold:</u>
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 48,800 + 218,400 - 56,800
COGS= $210,400
Answer:
price of the bond= $ 117,462.53.
Explanation:
price of the bond = present value of coupon payment + present value of face value.
price of the bond= PMT X (1-( 1/( 1+r∧n))/r + ( face value/(1+r)∧n
price of the bond= 6300x (1-(1.045∧10))/0.045 + (105000/1.045∧10)
price of the bond= $ 117,462.53.
therefore the present value of the bonds payable using thepresent value table is evaluated to be $ 117,462.53.
Answer:
The correct answer is "Financial forecast"
Explanation:
Financial forecast: "Prospective financial statements that present, to the best of the responsible party's knowledge and belief, a company’s expected financial position, results of operations, and cash flows".