All categories

2 years ago

How do we prepare the profit and loss account for partnership

Business

1 answer:

jeka942 years ago

5 0

Answer:

It includes the balance of stocks at the start and end of the year. The main purpose of this account is to determine Gross Profit which is difference between the revenue from trading and the cost of sales. The purpose of the profit and loss account is to.

Explanation:

You might be interested in

During the first month of operations ended August 31, Kodiak Fridgeration Company manufactured 48,000 mini refrigerators, of whi

Anvisha [2.4K]

Answer:

Part a.

Income statement based on the absorption costing concept.

Sales $8,800,000.00

Less Cost of Sales

Beginning Inventory $0

Add Manufacturing Cost $6,048,000.00

Less Ending Inventory ($504,000.00) ($5,544,000.00)

Gross Profit $3,256,000.00

Less Expenses :

Selling and administrative expenses:

Variable $528,000.00

Fixed $352,000.00 ($880,000.00)

Net Income/(loss) $2,376,000.00

Part b.

Income statement based on the variable costing concept.

Sales $8,800,000.00

Less Cost of Sales

Beginning Inventory $0

Add Manufacturing Cost $5,520,000.00

Less Ending Inventory ($460,000.00) ($5,060,000.00)

Contribution $3,740,000.00

Less Expenses :

Fixed manufacturing cost $528,000.00

Selling and administrative expenses:

Variable $528,000.00

Fixed $352,000.00 ($1,408,000.00)

Net Income/(loss) $2,332,000.00

Part c.

Reason : Fixed Costs deferred in Ending Inventory in Absorption Costing has resulted in a higher Income.

Explanation:

<u>Units in Ending Inventory Calculation :</u>

Production 48,000

Less Sales (44,000)

Ending Inventory 4,000

Absorption Costing Calcs

<u>Variable Manufacturing Costs</u>

Direct materials $3,360,000.00

Direct labor $1,344,000.00

Variable manufacturing cost $816,000.00

Fixed manufacturing cost $528,000.00

Total $6,048,000.00

Ending Inventory = $6,048,000.00 × 4,000 / 48,000

= $504,000

Variable Costing Calcs

<u>Variable Manufacturing Costs</u>

Direct materials $3,360,000.00

Direct labor $1,344,000.00

Variable manufacturing cost $816,000.00

Total $5,520,000.00

Ending Inventory = $5,520,000.00 × 4,000 / 48,000

= $460,000

4 0

3 years ago

The law of diminishing marginal returns holds for a situation in which Group of answer choices all inputs are variable. all inpu

Natasha_Volkova [10]

The law of diminishing marginal returns holds for a situation in which some inputs are variable and some inputs are fixed.

<h3>What is the law of diminishing marginal returns?</h3>

The law of diminishing marginal returns states that after some optimal level of capacity is reached in a production process, an additional factor of production would result in a lessening of output (quantity of production).

In this context, we can infer and logically deduce that the law of diminishing marginal returns would only hold for an economic situation in which some inputs are variable and some inputs are fixed.

Read more on diminishing marginal returns here: brainly.com/question/13767400

#SPJ1

3 0

2 years ago

The brenda one is the question thank youuu:)

Ivenika [448]

Answer:

C. y = 11000(1.086)^7

Explanation:

Given the following data;

Principal = $11,000

Interest rate = 8.6% = 8.6/100 = 0.086

Time = 7 years

To derive a mathematical expression, we would use the compound interest formula;

$A = P(1 + \frac{r}{100})^{t}$

Where;

A is the future value.

P is the principal or starting amount.

r is annual interest rate.

t is the number of years for the compound interest.

Substituting into the formula, we have;

$A = 11000*(1 + \frac{8.6}{100})^{7$

$A = 11000*(1 + 0.086)^{7$

$A = 11000*(1.086)^{7$

$A = 11000*1.78$

A = $19,580

7 0

3 years ago

In Jackson Jones Company, land decreased $270,000 because of a cash sale for $270,000, the equipment account increased $90,000 a

marin [14]

Answer:

The answer is D. $180,000

Explanation:

Investing activities is about spending on long term asset or long term investments.

Under investing activities in cash flow, what constitutes inflow is the sales of these long term assets like plant and machinery and what constitutes outflow is the purchase of these assets.

In this question, the inflow is the sale of equipment which us $270,000 and outflow is the purchase of equipment for $90,000.

So net cash flow from investing activities is:

$270,000 - $90,000

=$180,000

5 0

3 years ago

An oil refinery must now begin sending its waste liquids through a costly treatment process before discharging them. The enginee

WARRIOR [948]

Answer:

Option A is the cheapest.

Explanation:

Giving the following information:

The engineering department estimates costs of $450,000 for the first year. It is estimated that if process and plant alterations are made, the waste treatment cost will decline $43,000 each year. As an alternative, a specialized firm, Hydro-Clean, has offered a contract to process the waste liquids for 15 years for $225,000 per year.

We need to use the following formula and chose the smallest net present value:

NPV= Io +∑ [Cf/(1+i)^n]

Option A:

Io= 407,000

Year cost= 43,000

NPV= 734,061

Option B:

Yearly cost= 225,000

NPV= 1,936,368

7 0

3 years ago