Answer:
Ending inventory as at Oct 15 : $348
Explanation:
The FIFO (First-In-First-Out) method of inventory valuation is whereby the stock that enters first into inventory is the one that is sold or used first. In other words, the oldest stock is used first. This is common for inventory consisting of perishables such as vegetables, which will be wasted if not used soon.
Oct 1 : Beginning inventory : 40 units x $12.50 = $500
Oct 5 : Purchases : 26 units x $13.50 = $351
Oct 12 : 36 units x $14.50 = $522
Oct 15 : Sales : 78 units. This consists of:
40 units x $12.50 = $500
26 units x $13.50 = $351
12 units x $14.50 = $174
Hence, Cost of Goods sold is : $500 + $351 + $174 = $1025
Ending inventory is (36-12) x $14.50 = $348
Answer:
b. Cash 5,400 Debit
Common Stock 1,200 Credit
Paid-in Capital in Excess of Par 4,200 Credit
Explanation:
the cash proceeds will be for 5,400
common stock will increase for the face value:
600 shares x 2 = 1,200
the paid-in capital in excess of par value will be the difference:
5,400 - 1,200 = 4,200
Cash, which is an asset increase for mdebit side while the common stock and additional paid-in are equity accounts. They increase from the credit side.
Answer:
The correct answer is $2,000.
Explanation:
According to the scenario, the given data are as follows:
Contract with Little company = $5,000
Earn from other job = $3,000
So, we can calculate the amount Kris can recover as a compensation damages by using following formula:
Amount that can be recovered = Contract with Little company - Earn from other job
By putting the value, we get:
Amount that can be recovered = $5,000 - $3,000
= $2,000
D.cash advance................
Answer: True
Explanation: The matching principle is used to compute capitalized costs by companies and it records expenses in the same period as the related revenues by matching the cost of an asset to the time periods in which it is used, and is therefore generating revenue.
Capitalized cost is also given as the present worth of cash flows which go on for an infinite period of time. In other words, the worth of cash flows does not leave the company when items are purchased. This is because the monetary value is retained in the form of a fixed or intangible asset.
The capitalized cost of any investment can be determined using the equation, P = A/i. Where P is the capitalized cost, A is the annual amount and i is the interest rate.
