Answer:
(A) in the summary of significant accounting policies.
Explanation:
It has the company's financial statements and also describes the key policies that are being followed by the accounting department. This policy summary is mandated by the accounting framework like IFRS or GAAP.
Answer:
a. Issuance of note:
Date Account title Debit Credit
XX-XX Accounts Payable $84,000
Notes Payable $84,000
b. The payment of the note at maturity, including interest. Assume a 360-day year.
Interest payment = 84,000 * 5% * 120/360
= $1,400
Date Account title Debit Credit
XX-XX Note Payable $84,000
Interest payable $1,400
Cash $85,400
Answer:
the gift shop must recognize 31 days of accrued interest payable, total interest = principal x interest rate x time passed
= $50,000 x 12% x 31/365 days = $509.59
the adjusting entry should be:
December 31, accrued interest on note payable
Dr Interest expense 509.59
Cr Interest payable 509.59
GDP (or Gross Domestic Product) is the total value of goods and/or services provided in a country during one year. So, if Disney were to open another amusement park, it would bring the value of Disney up, which means that this would be counted as GDP.
Answer:
• Cost of direct materials used $172,000
• Cost of direct labor $154,000
• Cost of goods manufactured $401,700
• Cost of goods sold $427,500
• Gross profit $1,472,500
Explanation:
Please see attached detailed solution to the above questions and answers.
