Answer:
Savings: is setting aside money so you dont need to spend your money for anything, only for emergeincies. Investment: is when you are buying stocks or bonds your are making an investment.
The formula for annual depreciation by means of the units-of-production method is:
(depreciable cost / estimated output) x the actual yearly output
Under the units of production method, the quantity of depreciation indicted to expense differs in direct proportion to the amount of asset usage. Therefore, a business may charge more depreciation in times when there is more asset consumption and less depreciation in times when there is a smaller amount of usage. It is the most precise method for indicting depreciation as this method relate thoroughly to the wear and tear on assets. Though, it also needs that someone should track asset usage which means that its use is commonly restricted to more luxurious assets. It needs estimation of the total usage over the life of the asset in order to come up with the amount of depreciation to identify in separate accounting period.
Answer:
SIMON COMPANY'S YEAR END BALANCE SHEET
AT DECEMBER 31 Current 1 yr ago 2 yrs ago
cash 6.1% 8.1% 9.90%
Accounts receivables 16.6% 14.1% 13.2%
inventory 21.5% 18.9% 14.6%
prepaid expense 1.8% 2.1% 1.1%
plant asset 54.0% 56.8% 61.2%
Total Asset 100.0% 100.0% 100.0%
Liabilities and Equity
Accounts payable 24.4% 17.1% 13.2%
Notes payable 18.6% 23.0% 22.5%
common stock 28.5% 33.1% 40.5%
Retained earnings 28.5% 26.9% 23.8%
total 100.0% 100.0% 100.0%
2) The change in % of accounts receivables is unfavorable because this means that our Debtors are not paying instead are continuing to buy on credit and that our collection methods are weak and ineffective.
3) The % change in inventory is unfavorable because it means we are selling less stock as years goes by and that we are buying more than we are selling.
Explanation:
Answer:
The journal entry is
Dr Cost of sales ---------------$22,000
Cr Factory overhead---------$22,000.
Explanation:
At the end of the year:
Total debits equal $624,000
Total credits equal $646,000.
The difference is $646,000 - $624,000 = $22,000
This $22,000 will be the balance at the beginning of the following year.
So the journal entry to close the balance in the Factory overhead account to cost of goods sold is:
Dr Cost of sales ---------------$22,000
Cr Factory overhead---------$22,000.
This means the overhead is under-applied(actual overhead is greater than the budgeted cost)
Answer:
According to law, the gift in lifetime means that the asset is legally owned by the person who receives the gift. But in this case, Larry has died and had left his assets behind which has to be distributed according to his will statement and the residue will belongs to his family members. The first thing here is the inheritance tax payment on these assets must be paid by the Owner Kari to have the right to use this asset.
