Answer:
A January 1, 2020
Dr Cash $54,600
Cr Bonds payable $52,000
Cr Premium on bonds payable $2,600
B. December 21 2022
Dr Bonds payable $52,000
Dr Premium on bonds payable $1,820
Cr Common stock $26,000
Cr Paid in capital in excess of Par $27,820
Explanation:
Preparation of the entry for Stonewall Corporation
A January 1, 2020
Dr Cash $54,600
($52,000+$2,600)
Cr Bonds payable $52,000
Cr Premium on bonds payable $2,600
(5%*$52,000)
(To record issue of bonds for premium)
B. December 21 2022
Dr Bonds payable $52,000
Dr Premium on bonds payable $1,820
(100%-30%*$2,600)
Cr Common stock $26,000
(52*10*50)
Cr Paid in capital in excess of Par $27,820
($52,000+$1,820-$26,000)
(To record conversion of bonds into Common Stock)
Answer:
$70,000
Explanation:
The amount of direct material purchased during the year will be arrived at by working back from the amount of Direct Materials used within the year, then we <u>less</u> opening stock of Direct Material because obviously that was not purchased within the year but was carried over from previous period; and finally we add closing stock of Direct Material because that was left over from what was bought during the current period.
Direct materials used............................... $72,000
Beginning Direct materials inventory... ($9,000)
Ending Direct materials inventory..........<u> $7,000 </u>
Direct material purchased ........................<u>$70,000</u>
Answer: 19.01%
Explanation:
The simple rate of return is the Income that came from an investment divided by the cost of the investment.
It is therefore expressed by;
Simple rate of return = Net Income / Initial investment
Initial investment
= Price of new machine - salvage value of old machine
= 432,000 - 27,000
= $405,000
Net Income
= Income - depreciation of new machine
= 149,000 - (432,000/6)
= $77,000
Simple rate of return
= 77,000/405,000
= 19.01%
Answer:
Last in, Fast out (LIFO)
Explanation:
The Last in, Fast out (LIFO) method is an accounting method used to attach value to inventory. Under the LIFO formula, the assumption is that the last item to be purchased will be sold first. The costs of the final goods to be produced or purchased will be used to expense the first batch of products to be sold.
LIFO is the contrast of FIFO, which stands for first in first out. LIFO, as an inventory accounting technique, is rarely used outside the US. The approach is suitable for large businesses with huge inventories such as car dealers and retailers.
Answer:
everyone is willing to pay the taxes to receive the benefits.
Explanation:
Taxation can be defined as the involuntary or compulsory fees levied on individuals or business entities by the government to generate revenues used for funding public institutions and activities.
The different types of tax include the following;
1. Income tax: a tax on the money made by workers in the state. This type of tax is paid by employees with respect to the amount of money they receive as their wages or salary.
2. Property tax: a tax based on the value of a person's home or business. It is mainly taxed on physical assets or properties such as land, building, cars, business, etc.
3. Sales tax: a tax that is a percent of the price of goods sold in retail stores. It is being paid by the consumers (buyers) of finished goods and services and then, transfered to the appropriate authorities by the seller.
A Lindahl equilibrium can be defined as an economic state in which there is a production of an optimal quantity of public goods and the cost of these goods is shared in a fair manner among everybody. It was developed by Erik Lindahl.
In a Lindahl equilibrium everyone is willing to pay the taxes to receive the benefits.
