Answer:
Cash increases by $500,000
Equipment decreases by $300,000
Profit increases by $200,000
Explanation:
Cash increases by $500,000 because the equipment was exchanged for cash.
The equipment (property,plant and equipment account) decreases by $300,000 because this particular equipment will be removed from PPE account.
Equity increases by $200,000 because there is a profit of $200,000 from the sale.
Answer:
Journal entry.
Debit creditors account with $15,000 and credit company's sales account with $15,000
Being quarterly journal subscription paid in advance last year.
Explanation:
The advance subscription payments customers are taken as creditors of the company. The company owes them the service of mailing the quarterly journals to them. The total creditors payment ($45,000) will be recorded as credit entry in the books of the company's creditors account and as the company discharges the liability, the amount is passed to debit side of the creditor's account. We assume equal quarterly subscription amount, which will result in $15,000 for each quarter in a year.
Answer:
Leto Company
The unit contribution margin per production constraint hour is:
= $0.00637.
Explanation:
a) Data and Calculations:
Unit selling price = $96.80
Unit variable cost = (23.50)
Unit contribution margin = $73.30
Hardening treatment hours per unit = 5 hours
Units of alloy produced = 2,300
Total hours spent on hardening treatment = 11,500 (5 * 2,300)
Contribution margin per production constraint hour = Unit contribution margin/Total hours spent on hardening treatment
= $0.00637 ($73.30/11,500)
b) The unit contribution margin per production constraint hour shows the contribution margin that is made per unit of the production constraint. The production constraint is the limited input resources that are available for production. It is a product of the units of the alloy that Leto produces and the number of hours required to produce one unit.
Answer:
The question is not complete,the complete set of question is attached.
The balance sheet value of the stock as at the end of 20X7 is $12000 as shown below.
Explanation:
The requirement of the question is the balance sheet to be shown for the investments at the end of 20x7. These are investments are revalued to fair value on an ongoing basis to reflect prices and reality in the stock market.The fair value is the closing market price at each point time, as a result the balance value of the investments is calculated thus:
Stock Quantity Closing Price Value
Charlie 100 $22 $2200
Delta 200 $34 $6800
Echo 100 $30 <u>$3000</u>
Total value of stocks <u> $12000 </u><u> </u>
But the shares were earlier acquired for $13000 ($20*100+$40*200+$30*100) on 1st February, 20X6, which implies that overall losses in value of $1000($13000-$12000) have been posted to other comprehensive income as unrealized losses
Answer:
true
Explanation:
continuous budgeting involves adding one more month to the end of a multiple period budget as the month goes by. this concept is applied to a twelve month budget, in other ward there is a full year budget in place. the period of budgeting does not correspond to a company fiscal year. there is a constant attention to the budget model and revise budget assumption for the last incremental period of the budget.