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brilliants [131]
3 years ago
8

During the current year, the Guileman Manufacturing Company signed a noncancelable contract to purchase 1,000 lbs. of a raw mate

rial at $32 per lb. during the forthcoming year. On December 31, the market price of the raw material is $26 per lb., and the selling price of the finished product is expected to decline accordingly. The financial statements prepared for the year should report...A. An appropriation of retained earnings for $6,000.B. A loss of $6,000 in the income statement.C. Nothing regarding this matter.D. A note describing the expected loss on the purchase commitment.
Business
1 answer:
Dovator [93]3 years ago
5 0

Answer:

B) A loss of $6,000 in the income statement.

Explanation:

The appropriate journal entry should be:

December 31 (recognition of loss on purchase commitments)

  • Dr Loss on Purchase Commitments account 6,000
  • Cr Accrued Loss on Purchase Commitments account 6,000

Since the price of raw materials lowered by $6,000, the company lost money on its purchase commitments:

Purchase commitments loss = contracted price - market value = $32,000 - $26,000 = $6,000

The loss on purchase commitments is an expense, and accrued loss on purchase commitments is a liability.

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ivanzaharov [21]

The semiannual investment is mathematically given as

R=6.37

<h3>What is the semiannual investment?</h3>

Question Parameters:

the rate at 9% per year,

to fund an annuity of 20 payments of $200 each, paid every 6 months

Generally, the equation for the Intrest  is mathematically given as

i=r/2

Therefore

i=\frac{0.09}{2}

i=0.045

The amount of annuity

200=R*\frac{1+0.045^{-20}-1}{0.45}\\\\R=\frac{200*0.045}{1.412}

R=6.3739

In conclusion, The semiannual investment would be R=6.37

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7 0
2 years ago
Pauline’s parents perform tasks of which order in this scenario? Pauline’s family is fairly liberal. Her parents have set certai
sdas [7]

Answer:

The reason is that the Pauline's parents are performing parental orders which includes the imposition of conditions. These imposed conditions and rules for the children are for their benefit and will help them in forming habits and protect themselves from the world evil beings. All the habits structuring of Pauline which her parent desire are of immense importance for her future life. Neither of the condition or rule mentioned in the case are unethical and are what a proactive person possesses and are also desirable. This shows that the parents are working hard with their children to let them have a good set of habits and reflects good parenting. Though initiallt it seems that the liberty of Pauline is diminished but will ensure its future safety and liberty in the long run. People have choice to drink wine but this doesn't mean that the childrem must also taste them. This is because its not good for health and that the lack of good parenting will affect them most.

3 0
3 years ago
\Stock A, an average stock, has an expected return of 10 percent. Stock B has a beta of 2.0. Portfolio P is a two-stock portfoli
miv72 [106K]

Answer:

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Explanation:

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3 years ago
1. The three main types of banks (Large Traditional, Credit Union, Online or Online-Only) have many tradeoffs with respect to te
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Answer: Rank from highest to lowest  

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3 years ago
"Girls Just Wanna Have Funds" is a Washington, DC, support group that consists mostly of young women who offer tips on budgeting
motikmotik

Answer:

d. service

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