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mezya [45]
3 years ago
7

A physical count of supplies on hand at the end of May for Masters, Inc. Indicated $1,245 of supplies on hand. The general ledge

r balance before any adjustment is $2,050. What is the adjusting entry for office supplies that should be recorded on May 31?
Business
2 answers:
ira [324]3 years ago
8 0

Answer: In your entry you should debit a loss account and credit a reduction in your asset. Eg

Office Suplies Loss       805

Office Supplies                        805

Explanation: Once you record the entry above the balance of account Office Suplies should be reduced from 2050 to 1245. By this way, the reality (physical count) and the accounting match.

Elis [28]3 years ago
8 0

Answer:

Debit Supplies Expense $805 and credit Supplies $805.

Explanation:

The variance or discrepancy between the physical count of supplies on hand and the general ledger balance must be corrected. this is done by passing an adjustment entry that will bring the general ledger balance in line with the physical inventory.

The difference between the physical count and the system balance is $805,  To bring the book balance to reflect the physical count value, we need to reduce the value from $2,050 to $1,245 by passing a credit entry to Supplies account and a corresponding debit to Supplies expenses account.

The International Accounting standard requires inventories be measured at the lower of cost and net realisable value (NRV).

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You are evaluating two different silicon wafer milling machines. The Techron I costs $276,000, has a three-year life, and has pr
kramer

Answer:

Techron I

-$154,842

Techron II

-$144,981

Explanation:

Techron I

Cash Flow From Year 1 to Year 3

Pretax operating costs             ($75,000)

Depreciation ($276,000 / 3)   <u>($92,000)</u>

Profit before tax                       ($167,000)

Tax (21% x $167,000)                <u>$35,070</u>

Profit after tax                           ($131,930)

Add back Depreciation            <u>$92,000</u>

Cash Flow after tax                   (<u>$39,930)</u>

Terminal Value = Salvage value - Tax = $52,000 - ($52,000 x 21%) = $41,080

NPV = ($276,000) + [ (39,930) x (1+12%)^-1] + [ (39,930) x (1+12%)^-2] + [ (39,930) x (1+12%)^-3] = ($276,000) + ($35,652) + ($31,832) + ($28,421) = ($371,905)

EAC = NPV/(1-(1+r)^-n)/r

EAC = -371,905 / ( 1 - ( 1 + 12% )^-3/12% = -$154,842

Techron II

Cash Flow From Year 1 to Year 3

Pretax operating costs             ($48,000)

Depreciation ($480,000 / 5)   <u>($96,000)</u>

Profit before tax                       ($144,000)

Tax (21% x $167,000)                <u>$30,240</u>

Profit after tax                           ($113,760)

Add back Depreciation            <u>$96,000</u>

Cash Flow after tax                   (<u>$17,746)</u>

Terminal Value = Salvage value - Tax = $52,000 - ($52,000 x 21%) = $41,080

NPV = ($480,000) + [ (17,746) x (1+12%)^-1] + [ (17,746) x (1+12%)^-2] + [ (17,746) x (1+12%)^-3] = ($480,000) + ($15,845) + ($14,147) + ($12631) = ($522,623)

EAC = NPV/(1-(1+r)^-n)/r

EAC = -522,623 / ( 1 - ( 1 + 12% )^-5/12% = -$144,981

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3 years ago
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3 years ago
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The price of a ranchette estate is $260,000. The bank requires a 15% down payment and 3 points at the time of closing. The cost
coldgirl [10]

Answer:

Missing word<em> "and the cost of one point at the time of closing"</em>

<em />

Down payment = $260,000*15%

Down payment = $260,000*0.15

Down payment = $39,000

Amount of mortgage = $260,000 - $39,000

Amount of mortgage = $221,000

Cost of 3 point at the time of closing = 3% of amount of mortgage

Cost of 3 point at the time of closing = 3% * $221,000

Cost of 3 point at the time of closing = $6,630

8 0
2 years ago
Seven sources of waste use resources that do not add value to the product or service. Which activity represents waste: Select on
NARA [144]
D packaging finished goods.
4 0
3 years ago
The effect of the declaration of a cash dividend on a company's financial statements is to:_______
likoan [24]

The effect of the declaration of a cash dividend on a company's financial statements is to decrease both stockholders' equity and total assets.

<h3>What are cash dividends?</h3>

Dividends are cash payments made to the stockholders of a public company. Stockholders are individuals who purchase shares in a public company.

Dividends are paid with cash, thus, the assets of a company would decline. Since assets is positively related to stockholders equity, stock holder's equity would also decline.

To learn more about dividends, please check: brainly.com/question/13672624

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