The total interest due at the end of two months is computed by $480,000 * 0.08 * 2/12 = $6400
As the notes payable charge interest each month interest of $6400/2 = $3200 needs to be accrued. So the adjusting entry to be recorded is:
debit to interest expense 3200
credit to interest payable 3200
Bartering is done without C) money!
Recall how pioneers traded with each other goods.
Increasing the compensation to that stakeholder group.
Answer:
d. having enough books to satisfy customer demands versus the cost of having the inventory
Explanation:
There are inventory issues in each business. This is because many a times the demand and supply of inventory cannot be estimated.
Thus, in the given case also, there is same issue.
The books are written by famous politicians or celebrities, thus there is assurance of sale, because of the popularity, celebrity concerns etc:
At the same time there is no assurance as to the volume of sale. As people might criticize the books or people might like the book, but it will be in popularity that is confirm, because of social status of the author.
In this case to keep the inventory cost low, and also stock of inventory to meet the needs of people at the same time is challenge.
Answer:
Will the financial statements of a company always differ when different choices at the start of the accounting period are made regarding the denominator-level capacity concept?
A. No. It depends on how a company handles the production-volume variance in the end-of-period financial statements. For example, if the adjusted allocation-rate approach is used, each denominator-level capacity concept will give the same financial statement numbers at year-end.
Explanation:
Level capacity strategy
The organisation manufactures or produces at a constant rate of output ignoring any changes or fluctuations in customer demand levels. This often means stockpiling or higher holdings of inventory when customer demand levels fall
