Answer:
$987
Explanation:
Calculation to determine the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
First step is to determine the Present value of $1: n= 4, i = 5%
Present value of $1: n= 4, i = 5%
Present value of $1=.8227
Now let calculate the amount to be added to the right-of-use asset and lease liability under the residual value guarantee
Using this formula
Amount added to right-of-use asset and lease liability=(Guaranteed -Actual)*Present value
Let plug in the formula
Amount added to right-of-use asset and lease liability=($39,800-$38,600)*.8227
Amount added to right-of-use asset and lease liability= $1,200*.8227
Amount added to right-of-use asset and lease liability=$987
Therefore the amount to be added to the right-of-use asset and lease liability under the residual value guarantee is $987
Answer and Explanation:
The journal entries are shown below:
On June 1
Stock dividend (120000 × 15% × $13) $234,000
To Common Stock dividend distributable (120000 × 15% × 5) $90,000
To Paid in capital in excess of par-Common Stock $144,000
(being stock dividend declared is recorded)
On June 30
Common Stock dividend distributable $90,000
To Common Stock $90,000
(Being the payment of stock dividend is recorded)
<span>The theory of comparative advantage</span> implies that you should allow another firm to perform work activities for your company if that company can do it more productively than you can.
Comparative advantage is term used in economics to denote the ability to produce goods and services at a lower opportunity cost than competitors or trade partners. This theiry is the <span>foundational principle in the theory of international trade.</span>
Answer:
(A) Underapplied (2,300)
(B)
Cost of Goods Sold debit 2,300
Factory Overhead credit 2,300
It increase their COGS by 2,300 Their Gross Profit will decrease by the same amount
Explanation:
(A)
227,550 / 12,300 = 18.5
<u>APPLIED </u><em>ACTUAL HOURS X RATE</em>
11,800 \times 18.5 = 218,300
<u>ACTUAL </u> (221,000)
Underapplied (2,300)
(B)
It increase their COGS by 2,300 Their Gross Profit will decrease by the same amount
Sales - COGS = Gross Profit
Sales - (COGS + 2,300 adjustment) = Gross Profit
Sales - Cogs - 2,300 = Gross Profit
The gross profit decreased 2,300
Answer:
The correct answer is C. Flexible budget variance .
Explanation:
Variation of flexible budget is the difference that is generated after considering the actual results of production and the amount actually determined as part of the flexible budget for the real levels of income and cost generators. For control terms, this difference is taken to know the real variation of what is produced vs. what is budgeted.
