Answer: $90
Explanation: closing stock as at November ending is 3, consisting of:
1 DVD bought on 1st June @ $47
1 DVD bought on 1st Nov @ $43
1 DVD bought on 30th Nov @ $36
using FIFO (First in first Out) inventory method, 2 of the DVD was sold as at the end of December.
Cost of goods sold in the month of December is $47 +$43 = $90
Answer:
Debit Supplies expenses for $275
Office supplies for $275
Explanation:
Before the adjusting entry, the following adjustment has to be made first:
Ending balance of supplies that has not been adjusted = $379
Physical ending balance = $104
Amount of used supplies during the period = $379 - $104 = $275
This $275 will be recorded as supplies expense. Therefore, the adjusting entry will be as follows:
<u>Particulars Dr ($) Cr ($) </u>
Supplies expenses 275
Office supplies 275
<em><u>(To record the supplies expense for the period.) </u></em>
The above entries will then reduce enduing balance of supplies from $379 to $104.
Answer:
Bonds Payable $1000000 Dr
Gain on redemption $15000 Cr
Discount on bonds Payable $10000 Cr
Cash $975000 Cr
Explanation:
The face value of bonds payable is $1000000 while they are a discount bond and carry a discount of $10000. The value of bonds is 1000000 - 10000 = 990000.
The bonds, however, are redeemed at 97.5 which means they are redeemed by paying 97.5% of face value which comes out to be 975000.
Thus, the difference between their value and the redemption price is the gain as value is greater than the price paid for them at redemption.
Gain = 990000 - 975000 = $15000
Answer:
The correct answer is $18920.
Explanation:
Boone Company purchased a piece of machinery by paying $18,000 cash.
In addition to the purchase price, the company incurred $800 freight charges.
Estimated useful life of the machine is 5 years and will require $600 for insurance over that period.
So insurance money for a year = $ (
) = $120.
Boone Company would record the cost of the machine at $ ( 18000+ 800+ 120) = $ 18920.
It should be not allowed as that can cause a lot of conflict
