Answer:
What would the impact of these transactions be during May on
- (1) the balance of cash NO EFFECT, the account balance was not paid in May
- (2) cash-basis net income: NO EFFECT, the account balance was not paid in May
- (3) accrual-basis net income: DECREASE, even though the debt was not paid, the expense had already been recognized, therefore, the accrual-basis net income decreases
Answer and Explanation:
The journal entry required to close the expense account is given below:
Income summary Dr $33,520
To Wages Expense $19,000
To Depreciation Expense $1,800
To Utilities Expense $320
To Insurance Expense $700
To Maintenance Expense $9,000
To Income Tax Expense $2,700
(being the expenses accounts are closed)
Answer:
C
Explanation:
Price and quantity variances move in the same direction. If one is favorable, the others will be as well. This is because there is a direct relationship between price and quantity. If one is favourable the other is likely to be favourable and if one is adverse the other is likely to be adverse.
In class 2 ., The Model D is the Top/ favorite one having highest market return (24%) with lowest inventory cost ($79)
Explanation:
To Determine the value of the inventory at the lower of cost or market applied to each item in the inventory. simply we should calculate the profit margin for each category
Profit margin = (market value - cost price) = Profit ÷ cost price × 100
Class 1:
Model A
46 $116 $139
Profit margin = (139 - 116) = 23 ÷ 116 × 100 = 19.32%
Model B
49 243 239
Profit margin = (239 - 243)= -4 ÷ 243 × 100 = - 1.65% (loss)
Model C
43 233 252
Profit margin = (252 - 233) = 19 ÷ 233 × 100 = 8.15%
Class 2:
Model D
37 79 98
Profit margin = (98 - 79) = 19 ÷ 79 × 100 = 24%
Model E
6 151 130
Profit margin = (130 - 151) = - 21 ÷ 79 × 100 = -13.91 % (loss)
Result
In class 1
Model A is preferable., It has the lowest inventory value and has highest market value (Returns) at 19.82%
In class 2
Model D is preferable., It has the lowest inventory value and has highest market value (Returns) at 24%
Overall the Model D is the Top/ favorite one having highest market return with lowest inventory cost
The answer is either B or C. I think it may be C.
