Answer:
April 5
Debit Inventory $28,700
Credit Accounts Payable $28,700
April 6
Debit Inventory $600
Credit Cash $600
April 7
Debit Equipment $29,700
Credit Accounts Payable $30,000
April 8
Debit Accounts Payable $3,400
Credit Inventory $3,400
April 15
Debit Accounts Payable $25,300
Credit Cash $24,541
Credit Inventory $759
Explanation:
Preparation of the journal entries to record these transactions on the books of Harwick Co. under a perpetual inventory system
April 5
Debit Inventory $28,700
Credit Accounts Payable $28,700
April 6
Debit Inventory $600
Credit Cash $600
April 7
Debit Equipment $29,700
Credit Accounts Payable $30,000
April 8
Debit Accounts Payable $3,400
Credit Inventory $3,400
April 15
Debit Accounts Payable $25,300 ($28,700-$3,400)
Credit Cash $24,541
($25,300 x 97%)
Credit Inventory $759
($25,300 x 3%)
Answer:
a. 3.80
Explanation:
This ratio is also called sales turnover.
This represent how much a dollar invested in asset can increase sales.
A higher ratio increase the profitability of the company and represent the efficiency of the assets in the business.
sales/average assets = sales to assets ratio
<u>where:</u>
<em>average assets = (beginning assets + ending assets)/2</em>
(175,000 + 167,000)/2 = 171,000
sales to assets :
650,000/ 171,000 = 3.801169 = 3.80
Answer:
The Federal Reserve is worried about unemployment
Explanation:
The Federal reserve uses various strategies bro control supply of money in the economy. This is aimed at improving the economy depending on its present state.
In an economy where there is inflation there is need to reduce money supply.
When economic growth is slow there is need to increase money supply.
So when the Federal Reserve increases money supply by reducing interest rates, it is most likely to combat unemployment and facilitate economic growth.
The conditions are:
* If tariffs tend to be small
* No retaliation by supplying nations
* No external costs such as rent seeking
If all of the conditions above are fulfilled, the country can protect the interest of local business without having to face larger economic blow back as a result. If the country that being imposed a tariff choose to retaliate, local businesses could experience an even problems since they can no longer export their products with competitive prices.
Answer:
Depreciation Expense for 2018; $10,528.57
Explanation:
On January 2, 2016
machine cost = $100,000
Useful life = 10 years
Annual depreciation = ($100,000 - $6000)/10
= $9,400
By early 2018,
Carrying amount of the machine
= $100,000 - 2($9,400)
= $100,000 - $18,800
= $81,200
Useful life is reassessed to 7 years (rather than 8) with a salvage value of $7,500
Annual Depreciation = ($81,200 - $7,500)/7
= $73,700/7
= $10,528.57
Depreciation Expense for 2018; $10,528.57
