Answer:
A.
Dr Land $189,000
Cr Jason, Capital $63,000
Cr Kelly, Capital $126,000
B.
Dr Cash $40,000
Cr Gavin, Capital $40,000
Explanation:
A.
Dr Land ($363,000-$174,000) $189,000
Jason, Capital (1/3×189,000) $63,000
Kelly, Capital(1/2×189,000) $126,000
B.
Dr Cash $40,000
Cr Gavin, Capital $40,000
in the budgeting process you should create a budgeted balance sheet and budgeted income statement. Your balance sheet and income statement, whether budgeted or actual, are the two great financials. They reflect the bottom line, showing how the business is doing.
Answer:
$9,045.11.
Explanation:
The value of the investment, fv after 2 years can be determined as fallows :
PV = - $9000
Pmt = $0
r = 0.25%
n = 2 × 12 = 24
p/yr = 12
FV = ?
Using a financial calculator, the value of the investment, fv is $9,045.11.
Answer:
1. Yields a balance sheet inventory amount often markedly less than its replacement cost. LIFO
2. Results in a balance sheet inventory amount approximating replacement cost. FIFO
3. Provides a tax advantage (deferral) to a corporation when costs are rising. LIFO
4. Recognizes (mulches) recent costs against net sales. LIFO
5. The preferred method when each unit of product has unique features that markedly effect cost. WEIGHTED AVERAGE
Explanation:
1. LIFO yields a balance sheet inventory amount often markedly less than its replacement cost. The reason is because the in a period of rising costs, since the last stock of goods bought are sold first, this will result in the remaining stock of goods to be of lower costs as they had been bought at an earlier date at a cheaper rate.
2. FIFO results in a balance sheet inventory amount approximating replacement cost because the first set of goods purchased are sold first; and if the assumption holds that costs are rising with time, then the balance stock of goods would have been bought at a later date at a higher cost, hence the value of the balance (ending) inventory will be almost equal to its replacement cost.
3. LIFO provides a tax advantage (deferral) to a corporation when costs are rising because it results in a lower ending inventory value since the more expensive inventory has been sold. Hence, the closing stock and Net income will be low and income tax will be low.
4. LIFO matches recent costs against net sales because the 'cost of sales' are made up of the recent purchases which are sold first
5. The preferred method when each unit of product has unique features that markedly effect cost is the WEIGHTED AVERAGE because it calculates the average period cost of all goods in stock and apportions the total to individual items.
Answer:
A. FIFO
Explanation:
FIFO, which is First-in, First-Out is a method used for calculating the cost of goods sold whereby the oldest goods in the company's or organization's industry are assumed to be sold first. It gives thesame results under both the periodic system and perpetual inventory system. So, in FIFO, goods acquired first are sold, leaving the most recent cost in the balance sheet. It also costs actual flow of goods in most businesses.
