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2 years ago

Which of the following items does not result in an adjustment in the merchandiseinventory account under a perpetual system?

Business

1 answer:

pychu [463]2 years ago

3 0

Answer:

c.Payment of freight costs for goods shipped to a customer

Explanation:

In the inventory account management using the perpetual system, whenever there is an event that may result in a change in the carrying value of inventory, the quantity of the change is immediately determined and adjusting entries are posted.

Examples of such events include purchase of merchandise inventory, return of merchandise inventory to the supplier, .Payment of freight costs for goods received from a supplier (this forms part of the cost of inventory).

From the options given, the only entry that will not result in an adjustment to inventory is c.Payment of freight costs for goods shipped to a customer. This will form part of the selling and distribution cost under operating expenses.

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2 years ago

Jake’s Market recorded the following events involving a recent purchase of merchandise: Received goods for $60000, terms 2/10, n

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Answer:

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Explanation:

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2 years ago

Read 2 more answers

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serious [3.7K]

The completion of separate depreciation schedules for each of the alternative depreciation methods is as follows:

<h3>a. Straight-line Method:</h3>

Year Cost Annual Depreciation Accumulated Net Book

Depreciation Value

Year 1 $20,000 $4,455 $4,455 $15,545

Year 2 $20,000 $4,455 8,910 11,090

Year 3 $20,000 $4,455 13,365 6,535

Year 4 $20,000 $4,455 17,820 2,180

<h3>b. Units-of-production Method:</h3>

Year Cost Annual Depreciation Accumulated Net Book

Depreciation Value

Year 1 $20,000 $7,128 $7,128 $12,872

Year 2 $20,000 $5,346 12,474 7,526

Year 3 $20,000 $3,564 16,038 3,962

Year 4 $20,000 $1,782 17,820 2,180

<h3>c. Double-declining-balance Method:</h3>

Year Cost Annual Depreciation Accumulated Net Book

Depreciation Value

Year 1 $20,000 $10,000 $10,000 $10,000

Year 2 $20,000 $5,000 15,000 5,000

Year 3 $20,000 $2,500 17,500 2,500

Year 4 $20,000 $320 17,820 2,180

<h3>Data and Calculations:</h3>

Cost of asset = $20,000

Residual value = $2,180

Depreciable amount = $17,820 ($20,000 - $2,180)

Estimated productive life = 4 years or 9,900 hours

<h3>Annual depreciation rates:</h3>

Straight-line method = $4,455 ($17,820/4)

Units-of-production Method per unit = $1.8 ($17,820/9,900)

Double-declining-balance Method rate = 50% (100/4 x 2)

Learn more about depreciation methods at brainly.com/question/25806993

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1 year ago

Hernandez Company had the following transactions during 2020, its first year in business:

Trava [24]

Question Completion:

Prepare Journal Entries.

Answer:

Hernandez Company

Journal Entries:

January 2 Debit Cash $1,512,000

Credit Common stock $630,000

Credit Additional Paid-in Capital-Common stock $882,000

To record the issuance of 42,000 shares of $15 par common stock for $36 per share.

April 3 Debit Cash $ 776,000

Credit Preferred stock $560,000

Credit Additional Paid-in Capital-Preferred stock $216,000

To record the issuance of 8,000 shares of $70 par preferred stock for $97 per share.

October 6 Debit Treasury Stock $30,000

Debit Additional Paid-in Capital-Common stock $28,000

Credit Cash $58,000

To record the repurchase of 2,000 shares of treasury stock for $29 per share.

December 9 Debit Cash $3,850

Credit Treasury stock $1,650

Credit Additional Paid-in Capital-Common stock $2,200

To record the reissuance of 110 shares of treasury stock for $35 per share.

Explanation:

a) Data and Analysis:

January 2 Cash $1,512,000 Common stock $630,000 Additional Paid-in Capital-Common stock $882,000

issuance of 42,000 shares of $15 par common stock for $36 per share.

April 3 Cash $ 776,000 Preferred stock $560,000 Additional Paid-in Capital-Preferred stock $216,000

issuance of 8,000 shares of $70 par preferred stock for $97 per share.

October 6 Treasury Stock $30,000 Additional Paid-in Capital-Common stock $28,000 Cash $58,000

repurchase of 2,000 shares of treasury stock for $29 per share.

December 9 Cash $3,850 Treasury stock $1,650 Additional Paid-in Capital-Common stock $2,200

re-issue of 110 shares of treasury stock for $35 per share.

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2 years ago

G dixon company produced 6,000 units of product that required 1.5 standard hours per unit. the standard fixed overhead cost per

sweet [91]

Given:
Actual Production 6,000 units @ 1.5 standard hours per unit.
Budgeted hours: 10,000
Fixed overhead cost per unit is $0.50 per hour.

6000 units * 1.5 std. hrs/unit = 9,000 hours

Actual hours: 9,000 hours * $0.50 per hour = $4,500
Budgeted hours: 10,000 hours * $0.50 per hour = $5,000

Fixed Factory Overhead Volume Variance = $5,000 - $4,500 = $500 UNFAVORABLE.

It is unfavorable because the production is inefficient. It is more favorable if the produced units are higher than 6,000 units and the actual hours of production are more than the budgeted hours of production.

3 0

2 years ago