Answer: In January, when the products are delivered.
Answer:
-5.72%
Explanation:
Total rate of return = (Total return/net loss ÷ Purchase Price) × 100 ......... (1)
Loss on sales = Purchase price - Sales price = $1102 - $989 = $113.
Net loss = Coupon received - loss on sales = $50 - $113 = -$63
Substituting the values into equation (1), we have:
Total rate of return = ((-63) ÷ 1,102) × 100 = -5.72%
Therefore, the total rate of return is -5.72%. It is negative because the coupon bond led into net loss.
Answer:
Option B is the correct answer.
Explanation:
The sale of finished goods worth $54000 for an amount of $150000 will require us to recognize a revenue of $150000 and a reduction in inventory of finished goods worth $54000.
Option a is incorrect as the gross profit is not recognized on balance sheet. The gross profit is an income statement item.
Option c is incorrect as the sale of finished goods will cause a reduction in the finished goods inventory for the amount of goods sold.
Option d is incorrect as the sale will be recognized in sales revenue on the profit and loss statement and not on the balance sheet as revenue is a profit and loss statement account.
Thus, option b is the correct answer as the sale of finished goods will be represented by a reduction in finished goods inventory by the cost of the goods sold which is $54000.
