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zhuklara [117]
3 years ago
5

In 2021, CPS Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 20

20, CPS’s inventories were $38 million (FIFO). CPS’s records indicated that the inventories would have totaled $28.6 million at December 31, 2020, if determined on an average cost basis.
Required: 1. Prepare the journal entry to record the adjustment.
Business
1 answer:
Anon25 [30]3 years ago
7 0

Answer:

The journal entry would be as follows:

December 31, 2020         Debit                     Credit

Retained Earnings          $9,400,000

                         Inventory                            $9,400,000

Explanation:

In order to prepare the journal entry to record the adjustment, we would have to calculate the amount of inventory with the following formula:

Amount of inventory=December 31, 2020, CPS’s inventories (FIFO)-31, 2020, CPS’s inventories (Average Cost)

                                =$38 million-$28.6 million

                                =$9.4 millions

Therefore, the journal entry would be as follows:

December 31, 2020         Debit                     Credit

Retained Earnings          $9,400,000

                         Inventory                            $9,400,000

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sattari [20]

Answer:

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Explanation:

Even if the workers have the work only to rely upon, they do not deserve to be treated with disdain, bias and victimization as mentioned in the case.

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For a sportswear giant like Nike, it is the exposure to harsh reality of its partners in the developing world, and a shame that it could not detect, monitor and control the code of ethics it follows back home.

7 0
3 years ago
Calculate the price of a two-year bond with a face value of $100, a coupon rate of 5%, and a yield-to-maturity of 5%.
aalyn [17]

The price of the bond is $100.

The bond's price is the present value of the face value plus the present value of the interest accrued throughout the bond's term.

The coupon interest rate is 5% of 100, that is $5 per year. The yield to maturity is also 5%. Because the coupon rate is equal to the yield, the bond's present value will only be its face value.

Present value = 5(P/A, 5%, 2) + 100(P/F, 5%, 2)

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Therefore, the price of the bond is $100.

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6 0
2 years ago
Experience indicates that strategic alliances Group of answer choices work best when they are aimed at achieving a mutually bene
nikdorinn [45]

Answer: Stand a reasonable chance of helping a company reduce competitive disadvantage but very rarely form the basis of a durable competitive advantage over rivals

Explanation:

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It should be noted that companies to into Strategic alliance in order to improve market access, improve supply chain efficiency and to also gain economies of scale.

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3 years ago
Martin is offered an investment where for $4000 today, he will receive $4240 in one year. He decides to borrow $4000 from the ba
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Answer:

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Martin is offered an investment where for $4000 today, he will receive $4240 in one year. The interest rate of the investment = ($4,240-$4,000)/$4,000x100% = 6%

The maximum interest rate the bank needs to offer on the loan if Martin is at least to break even on this investment should equal the interest rate of the investment: 6%

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3 years ago
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Answer:

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I hope my answer helps you.

5 0
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