Answer:
a. Accrual accounting
Explanation:
Accounting method in which the revenue and expenses are recorded in the month in which its activities occurred regardless of cash is received or paid. Cash-basis accounting is referred to the recognition of revenue and expenses when the cash relating to the activities received or paid. So If we want to recognize revenue during the period in which the related sales activity occurred, we will use accrual accounting method.
Answer:
Dr Bonds payable $90,300,000
Dr loss on early redemption of bonds $5,106,000
Cr Discounts on bonds payable $3,300,000
Cr Cash $92,106,000
Explanation:
The amount of cash paid to bondholders by calling the bonds is the 102% of the face value of $90.3 million i.e $90.3*102%=$92,106,000
The proceeds would debited to cash while the face value of the bond of $90.3 million would be debited to bonds payable account.
In addition the remaining discount of $3.3 million would credited to discounts on bonds payable account.
The loss or gain on the bond call can then be determined as appropriate.
Answer:
Explanation:
Direct Labour cost = Time doing the job x Wage
Budgeted Direct labor cost = 3.2 hours per unit x $28.00
Budgeted Direct labor cost = 89.6 per unit
Product WZ per unit cost 89.6
