Answer:
Journal Entry is as follows;
June 15
<em>DR</em> Accounts Payable <u>$1,000</u>
<em>CR</em> Cash <u>$400</u>
<em>CR</em> Notes Payable <u>$600</u>
Answer:
$6,000
Explanation:
Purchase price = $75,000
Remaining life = 75 months
The amortization amount for each month (Am) is given by the total purchase price divided by the remaining life of the copyright.
Since the purchase was made in July, there are 6 months left in the current year. Therefore, Jorge's total amortization amount during the current year is:
Answer:
Cost Flow Methods
Gross profit and ending inventory on April 30 using:
Gross Profit Ending Inventory
(a) first-in, first-out (FIFO) $75 $546
(b)
last-in, first-out (LIFO) $71 $542
(c) weighted average cost method $73 $544
Explanation:
a) Data and Calculations:
Item Beta Cost
April 2 Purchase $270
April 15 Purchase 272
April 20 Purchase 274
Total $816
Average cost per unit = $272 ($816/ 3 units)
Assume that one unit is sold on April 27 for $345
Gross profit and ending inventory on April 30 using:
Gross Profit Ending Inventory
(a) first-in, first-out (FIFO) $75 ($345 - $270) $546 ($816 - $270)
(b)
last-in, first-out (LIFO) $71 ($345 - $274) $542 ($816 - $274)
(c) weighted average cost method $73 ($345 - $272) $544 ($816 - $272)
Ending inventory = Cost of goods available for sale Minus Cost of goods sold
Gross profit = Sales Minus Cost of goods sold
Answer:
demand for loanable funds will decrease
Explanation:
Loanable funds is the total of all funds that people have saved and deposited in the savings account of commercial banks. This saved funds are in turn lended out to borrowers so as to gain returns (interest) on it.
When a private investor becomes less optimistic, they would not want to invest their money in loan able funds, therefore the demand for loan able funds will decrease which leads to reduction in the real interest rate.
