Answer:
Income statement will have an increased expense of $4.8 million and Revenue and cost of goods sold will decrease. In balance sheet the inventory will be decreased by the amount of crib toy inventory available.
Explanation:
Income Statement will show an expense of $4.8 million in this period as the cost of recall of inventory due to health hazard. Also sales and cost of goods sold will decrease by the amount of sales of crib toy in sales and by the amount of crib toys cost in cost of goods sold and will ultimately result in decrease in a gross profit of a company.
In the Balance Sheet the amount of Inventory will be decreased by the amount of crib toys available in stock.
Answer:
D : $88,800
Explanation:
<u>Cost of goods manufactured :</u>
Direct Material used in production $
21,300
Indirect Material used in production $ 3,700
Direct Labour $
34,100
Direct Labour $ 5,900
Manufacturing overhead <u> $ 16,600 </u>
Total Manufacturing cost $ 75100
Add:Beginning Work in process inventory $7,200
Less: Ending Work in process inventory <u>$ 0 </u>
Cost of Goods Manufactured <u>$88,800</u>
Answer:
10.52 years
Explanation:
We can work out the number of years using this relationship
V =P× (1+r)^n
V= tribe valeu = 3×3.5 = 10.5
r-growth rate -11%
n- number of years- ?
10.5 = 3.5× (1.11)^n
<em>dividing both sides by 1.11^n</em>
1.11^n = 10.5/3.5
<em>taking the log of both sides</em>
n log 1.11 = log 3
n = log 3/log 1.11
n =10.52
All of them are good options, but I would say that D would be the most practical. This is because you’re able to find a large amount of information about a product and view its uses in your situation without paying the cost of the actual product itself.
Answer:
Cash borrowed = $120,000
Interest on promissory note = 10%
The journal entry is as follows:
On December 31,
Interest expense A/c Dr. $3,000.00
To Interest payable $3,000.00
(To record interest accrued on note)
Working notes:
Interest expense:
= $120,000 × 10% × (3/12)
= $120,000 × 0.1 × (1/4)
= $3,000
