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exis [7]
3 years ago
6

Skysong Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 at

a cost of $1,032,100. At December 31, 2020, the raw materials to be purchased have a market value of $984,100. In 2021, Skysong paid $1,032,100 to obtain the raw materials which were worth $984,100. Prepare the entry to record the purchase.
Business
1 answer:
k0ka [10]3 years ago
6 0

Answer:Skysong journal $

Date

December 2020

Raw material Dr 984,100

Loss on raw material 48,000

Supplier Cr 1,032,100

Narration. recognition of raw materials purchased at agreed value.

2021

Supplier Dr. 1,032,100

Bank Cr. 1,032,100

Narration. Payment for raw materials purchased at agreed value.

Explanation:

The raw materials needs to be paid for at the agreed value not withstand ing the fall in value. However stock are to be recognized at cost or net realisable value which ever is less and since the market value of the stock has dropped this has to be recognized as a loss in the income statement to avoid the stock been over value.

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What factor has the most impact on a person's credit score?​
mario62 [17]

Answer:

The biggest factor impacting your credit is your payment history, which makes up 35% of your FICO® Score☉ . A close second is the amount of credit you're using, which accounts for 30% of your payment history.

Explanation:

7 0
3 years ago
A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, v
lions [1.4K]

Answer:

$368,000

Explanation:

In order to appraise the property using the capitalization approach, we must first determine a net cash flow:

net cash flow = $48,000 - $3,600 - $15,000 = $29,400

Now we calculate the property value using the perpetuity formula:

property value = net cash flow / capitalization rate = $29,400 / 8% = $367,500 which we must round up to $368,000

A property is being appraised using the income capitalization approach. Annually, it has an estimated gross income of $48,000, vacancy and credit losses of $3,600, and operating expenses of $15,000. Using a capitalization rate of 8%, what is the property's value (rounded up to the nearest $1,000)?

4 0
3 years ago
Use the below information to answer the following question.
Alina [70]

Answer:

Follows are the solution to the given point:

Explanation:

The formula for calculating the Quick Ratio:

\text{Quick Ratio} = \frac{\text{Quick Assets}}{\text{Current Liabilities}}

                    = \frac{43700+86150}{104300}\\\\=\frac{ 129850}{104300} \\\\= 1.24

\text{Sales days Receivable at end of year} = (\frac{\text{Account receivables at the end}}{\text{Gross sales by loan}} ) \times \text{number of days}                                                         = \frac{86150}{631000} \times 365 \\\\ = 49.833 \\\\ = 50\  days

\text{Sales price ratio} = \frac{\text{Sales per share price}}{\text{ Sales Share price}}

                         =\frac{43.20}{\frac{63100}{82000}}\\\\ = \frac{43.20}{0.769}\\\\ = 5.61

\text{total equity Debt} = \frac{ \text{Complete Liabilities}}{\text{Stockholders}}

                           = \frac{882400}{(397900+82000)}\\\\ = \frac{882400}{(479,900)}\\\\ = \frac{882400}{(479,900)}\\\\= 1.838

\text{Equity Return} = \frac{\text{Net Sales}}{\text{Equity of Shareholder}}  \times 100

                           = \frac{96200}{(82000+397900)} \times  100 \\\\ = \frac{96200}{(479900)} \times  100 \\\\= 0.2004 \times 100\\\\= 200.4 \ \%

Dividends received throughout the year = Restored earnings opening + Net Sales -Closing of restored profits

                                              = 309000 + 96200 - 397900 \\\\= 7300

5 0
4 years ago
The central bank of the country Iberia recently announced a reduction in the interest rate by 150 basis points. Following this a
dmitriy555 [2]

Answer: (D.) The Iberian economy is going through a period of deflation.

Explanation:

Real interest rate can be denoted using the following formula. i.e.,

Real interest rate = Nominal Interest rate - Inflation.

∴ In this particular case the Real interest rate will rise only if the economy is going through a period of deflation and deflation rate is larger than fall in interest rate.

4 0
3 years ago
Which of the following statements about the needs approach for estimating the amount of life insurance to purchase is (are) true
sukhopar [10]

Answer:

A contract between the insurance policyholder and insurer according to which the insurer promises to give a certain amount of money when the policyholder dies, is known as life insurance. These policies are legal contracts. There are two major categories of life insurance policies, Protection policies, and Investment policies. Some of the Heath insurance policies are AIG Direct, Health IQ, Bestow and Ladder.

4 0
3 years ago
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