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3 years ago

An inventory pricing procedure in which the oldest costs incurred rarely have an effect on the ending inventory valuation is:

Business

1 answer:

laila [671]3 years ago

5 0

Answer:

First in, first out (FIFO)

Explanation:

In FIFO, the assets produced or acquired first are sold, used or disposed of first and may be used by an individual or a corporation. So , since the newer costs are more relevant , the oldest cost won't affect the ending valuation.

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The Retained Earnings account has a credit balance of $40,000 before closing entries are made. Total revenues for the period are

iren2701 [21]

Answer:

A. Debit Income Summary $41,300; credit Expense accounts $41,300

Explanation:

At the end of the period, the revenue and expenses for the company are closed into the income summary account which in turn is closed into the retained earnings account.

For revenue, the entries are debit revenue and credit income summary with the revenue for the year. For expenses, credit expenses and debit income summary with the total expense for the year.

As such, given that Total revenues for the period are $58,200, total expenses are $41,300, and dividends are $10,200, the correct closing entry for the expense accounts is

Debit Income Summary $41,300

Credit Expense accounts $41,300

3 0

3 years ago

Universal Foods issued 10% bonds, dated January 1, with a face amount of $176 million on January 1, 2021 to Wang Communications.

natima [27]

Answer:

January 1, 2021

Dr Investment in bonds $176 million

Cr Discount in Investment in bonds $24,226,136

Dr Cash $151,773,864

June 30, 2021

Dr Cash $8,800,000

Dr Discount in Investment in bonds $897,538

Cr Interest Revenue $9,607,538

December 31, 2028

Dr Cash $8,800,000

Dr Discount in Investment in bonds $897,538

Cr Interest Revenue $9,607,538

Explanation:

1. to 3. Preparation of the journal entries to record the purchase of the bonds by Wang Communications on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2028

January 1, 2021

Dr Investment in bonds $176 million

Cr Discount in Investment in bonds $24,226,136

($151,773,864-$176 million)

Dr Cash $151,773,864

(To record purchase of bonds)

June 30, 2021

Dr Cash $8,800,000

($176 million*10%/2)

Dr Discount in Investment in bonds $897,538

($24,226,136/30)

Cr Interest Revenue $9,607,538

($8,800,000+$897,538)

(To record Interest Revenue)

December 31, 2028

Dr Cash $8,800,000

($176 million*10%/2)

Dr Discount in Investment in bonds $897,538

($24,226,136/30)

Cr Interest Revenue $9,607,538

($8,800,000+$897,538)

(To record Interest Revenue)

Present value of an ordinary annuity of $1 n=30 I=6%

Present value of an ordinary annuity of $1 =13.76483

Present value of $1 n=30 I=6%

Present value of $1=0.17411

Interest ($176 million *5%*13.76483) $121,130,504

Principal ($176 million*0.17411) $30,643,350

=$151,773,864

5 0

3 years ago

In the long run, an increase in the saving rate in a steady-state economy will cause A. a decrease in the capital/labor ratio an

ANTONII [103]

Answer: C) an increase in the capital/labor ratio and an increase in consumption per worker

Explanation:

An increased in the saving rate in a steady state caused the increased in the consumption for each worker when the ratio of the capital labor become capital stock under the golden rule. As, the rate of the higher saving automatically increased the growth of the economical rate. When there is shifting from lower to higher in the steady state then, the rate of the growth increased.

4 0

4 years ago

What is an allocation of scarce resources using some method other than price a. Rationing c. Spillover Costs b. Supply Shock d.

Lerok [7]

The answer for this question would be A) Rationing or the first option.

4 0

3 years ago

Read 2 more answers

The _____ view argues that international production should be distributed among countries according to the theory of comparative

vampirchik [111]

The Free Market View.

3 0

3 years ago