Answer:
From a buyer's perspective, a sale made on credit represents a liability. While a sale made on cash represents a decrease of current assets.
From a seller's perspective, a sale made on credit or cash increases current assets, but the possibility of a bad debt always exist, therefore, accounts receivables must be periodically adjusted due to bad debts.
If the seller or buyer uses accrual accounting system, the previous description holds, but if they use cash basis accounting, things change a lot. When use cash basis, transactions are recorded only when cash is exchanged, so accounts receivables do not actually increase assets (seller's perspective), and accounts payables do not increase liabilities (buyer's perspective).
Answer:
The bonds were issued at $87,590,959
Explanation:
The bonds will be issued at the present value of the coupon and maturity discounted by the market rate
C 6,000,000.000 ( 100 million x 6%)
time 30 (2051 - 2021)
market rate 7% = 7/100 = 0.07
PV $74,454,247.1010
PV of the maturity
Maturity 100,000,000.00
time 30.00
rate 0.07
PV 13,136,711.72
Total current value of the bonds:
PV coupon $ 74,454,247.1010
PV maturity $<u> 13,136, 711.7155 </u>
Total $87,590,958.8165
Answer:
a. Determine the standard cost per unit for direct materials and direct labor.
standard direct labor rate = $20 x 30/60 minutes = $10 per faucet
standard direct materials rate = $1.80 x 2.5 lbs = $4.50 per faucet
b. Determine the direct materials price variance, direct materials quantity variance, and total direct materials cost variance.
direct materials price variance = (actual price x actual quantity) - (standard price x actual quantity) = ($1.95 x 13,000) - ($1.80 x 12,500) = $25,350 - $22,500 = $2,850 UNFAVORABLE
direct materials quantity variance = (standard price x actual quantity) -(standard price x standard quantity) = ($1.80 x 13,000) - ($1.80 x 12,500) = $23,400 - $22,500 = $900 UNFAVORABLE
total direct materials variance = direct materials price variance + direct materials quantity variance = $2,850 + $900 = $3,750 UNFAVORABLE
Answer:
To mitigate damages
Explanation:
When a a tenant breaches the terms of a real estate agreement, the landlord must come in to get another tenant to occupy the space.
He is avoiding a situation where the property is to be left unoccupied for a period of time.
Mitigating damages is a way of reducing further loss when one party breaches a contract.
In the given scenario if a tenant moves out of leased premises before the term of the lease expires, the landlord is required to make a reasonable attempt to lease the property to another party.
the common method of trading in the distant past is known as marketing
