A recession is a time in an economy whereby trade and industrial activities is low.Economists believe that towards the end of this period is the best to start a business due to the following reasons: at this time things are more affordable as there is low circulation of money in the economy. Low-interest rates on loans thus credit is cheaper. Additionally, there will be less competition as the money is in the hands of few people during this time. Finally, many people want to save money and thus clients will be on the lookout for more affordable alternatives.
Answer:
The Journal entry will Increase cash and as well Increase Common stock
Explanation:
Based on the information given where we have Cash of the amount of $22,000 and Common Stock of the amount $22,000 on May 23 this means that the journal entry will Increase cash and as well Increase Common stock. And since cash is an asset this mean that it will increased by debit While Common stock will increased by Credit becauee Common stock is a Capital .
Answer:
Weighted Average Cost method provides same ending inventory value and same COGS under both periodic and perpetual inventory valuation.
Explanation:
Weighted average method records all the inventory on average cost. It does not matter how and when inventory is counted, purchased or sold. It averages cost of every unit which comes in the inventory or goes out of inventory. Other valuation method LIFO and FIFO changes the value with change in time or frequency.
Answer:
Explanation: balance per bank statement: $4,270
Add: Unpresented chqs $2,180
NSF chq $210
double posted chq $140
Less: interest earned $31
service fee $44
balance as per Cash book $ 6,725