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3 years ago

Prepare journal entries to record the following production activities.

Business

1 answer:

blagie [28]3 years ago

5 0

Answer:

1.Dr Work in progress inventory75,000

Dr Payable Factory payroll 75,000

2. Dr Factory overhead 20,000

Cr Factory Payroll Payable 20,000

3. Dr Factory wages payable 95,000

(75,000+20,000)

Cr Cash 95,000

Explanation:

Preparation to record Journal entry

1. Since the amount of $75,000 was been Incurred of the direct labour production this means we have to record the transaction as :

Dr Work in progress inventory75,000

Dr Payable Factory payroll 75,000

2. Since the amount of $20,000 was Incurred of indirect labor in production this means we have to record the transaction as:

Dr Factory overhead 20,000

Cr Factory Payroll Payable 20,000

3. Since factory payroll was paid the transaction will be recorded as :

Dr Factory wages payable 95,000

(75,000+20,000)

Cr Cash 95,000

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Answer:

(a) Gain or loss to the seller:

= Adjusted basis - Fair market value

= $17,000 - $12,000

= $5,000 (Loss)

No loss will be recognized since the B and P are brothers. As per section 267, such loss is disallowed.

Hence, Loss of $5,000 will not be recognized.

Fair market value is considered as adjusted basis to buyer. Hence, the adjusted basis for the buyer is $12,000.

(b)

Gain or loss to the seller:

= Adjusted basis - Fair market value

= $85,000 - $70,000

= $15,000 (Loss)

Transaction a and b are not related party as per section 267.

Fair market value is considered as adjusted basis to buyer. Hence, the adjusted basis for the buyer is $70,000.

(c)

Gain or loss to the seller:

= Adjusted basis - Fair market value

= $20,000 - $19,000

= $1,000 (Loss)

Recognized loss to seller = $0, since s owns whole stock of corporation.

Fair market value is considered as adjusted basis to buyer. Hence, the adjusted basis for the buyer is $19,000.

(d)

Gain or loss to the seller:

= Adjusted basis - Fair market value

= $20,000 - $18,500

= $1,500 (Loss)

Recognized loss to seller = $1,500, since R and A are not related party as per section 267.

Fair market value is considered as adjusted basis to buyer. Hence, the adjusted basis for the buyer is $18,500.

(e) Gain or loss to the seller:

= Adjusted basis - Fair market value

= $175,000 - $220,000

= $45,000 (Gain)

Recognized loss to seller:

= $175,000 ÷ 2

= $87,500, since M and K both are related parties as per section 267.

Purchase price of interest is considered as adjusted basis to buyer. Hence, the adjusted basis to buyer is $220,000.

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3 years ago

Many older companies have changed from a defined-benefit plan to a(n) ________, which is a retirement plan where workers are cre

avanturin [10]

Cash balance plan is a retirement plan where workers are credited with a part of their pay annually and a predetermined rate of interest.

<h3>What is a Cash balance Plan?</h3>

A defined-benefit pension plan with a lifetime annuity option is referred to as a "cash balance pension plan."

<h3>What are some features of Cash balance plans?</h3>

Based on defined-benefit needs, the financing caps, funding requirements, and investment risk are established.
Like a defined-contribution plan, this type of plan is managed on an individual account basis.
The advantage of these programs is that age-based contribution caps are available.
Pretax contributions enable those 60 and older to save significantly more money each year than younger people.

You can learn more about defined pension plans work using the following link:

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2 years ago

Richard created an advertisement that included a scientific explanation of how clothes are cleaned beside the image of washing m

olga2289 [7]

Answer:

Richard should have use brevity and percision in his ad to make it better.

Explanation:

Brevity is similar to shortness and percision is the most suitable answer because fluidity means changable and the comparability mean it can be similar and comparable

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3 years ago

What sum of money now is equivalent of $8,250 two years later, if the interest is 4% per 6-month period (8% compounded semi-annu

Vitek1552 [10]

Answer:

$7052.13

Explanation:

We can calculate the present value of money equivalent of $8,250 two years later by applying present value formula

DATA

Future value = $8,250

Interest rate = 4%

Number of periods = n = 2 years x 2 times a year = 4 times

Present value =?

Solution

PV = $\frac{1}{1+(interest rate)^n} futurevalue$

PV = ×\ $\frac{1}{1+(0.04)^4} 8250$

PV = $7052.13

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3 years ago

A manager who takes "ownership" of a project and provides the leadership and vision that takes a commodity from the idea stage t

ikadub [295]

Answer: Champion

Explanation:

Someone who drives a course from the initial stage to a stage where it is seen as satisfactory by him and people is known as a champion, as it's been put; the individual championed the course. This individual is responsible for the process of the project and sees that it becomes successful, despite the efforts of others, he supervises them and ensure they carry out the task as he planned it. A manager who takes "ownership" of a project and provides the leadership and vision that takes a commodity from the idea stage to the final customer is a product champion.

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