Identify each CTSO from its description

Sheffield Company signed a long-term noncancelable purchase commitment with a major supplier to purchase raw materials in 2021 a

Sphinxa [80]

The journal entry to record the purchase of the raw materials by Sheffield Company is as follows:

Debit Purchases $1,031,600

Credit Accounts Payable $1,031,600

To record the purchase of the raw materials in 2021.

The December adjusting entry can be revised with:

Debit Estimated Liability $53,300

Credit Unrealized holding Loss $53,300

To reverse the December 31 adjusting entry.

<h3>What is an unrealized holding loss?</h3>

In this instance, the unrealized holding loss arose from the fact that the market value of the raw materials is less than the purchase amount because of the noncancelable commitment.

Thus, the unrealized holding loss arose as the difference between the market value and the purchase amount.

<h3>Data Analysis:</h3>

Purchases $1,031,600 Accounts Payable $1,031,600

Estimated Liability $53,300 Unrealized holding Loss $53,300

Thus, the entry to record the purchase is a debit to the purchases account and a credit to accounts payable.

Learn more about recording purchases at brainly.com/question/24179237

3 0

2 years ago

Isaac is looking for ways to offer new goods and services to his existing customers. he is pursuing a market development strateg

I am Lyosha [343]

False, this is a product development strategy.

A marketing development strategy finds <em>new </em>markets for <em>existing </em>products, which is the opposite of what Issac is doing.

7 0

3 years ago

At the beginning of the year, Horvath Company estimated the following: Overhead $270,000 Direct labor hours 90,000 Horvath uses

levacccp [35]

Answer:

overhead rate: $3 per labor hours

Appled overhead for January 25,050 dollars

Applied overhead: 268,800 dollar underapplied by 7,200 dollars

Explanation:

$\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate$

expected overhead: 270,000

cost driver: labor hours.

expected labor hours: 90,000

overhead rate: 270,000 / 90,000 = 3

<u>Applied overhead for January</u>

8,350 labor hours x $3 overhead rate = 25,050

for the year:

89,600 x $ 3 = 268,800

actual overhead 276,000

Difference: 7,200

As the actual cost were higher; the overhead was underapplicated.

we need to capitalize more cost.

6 0

3 years ago

a(n) to pay the debts or settle the wrongdoings of another if he or she does not make settlement personally is not enforceable u

just olya [345]

A guarantee, or promise, to settle another person's debts or hold them accountable for their wrongdoings if they fail to do so personally, is not enforceable unless it is in <u>writing</u>.

<h3>What is a guarantee promise?</h3>

An undertaking or pledge from a guarantor to a guarantee is what is known as a guarantee. A guarantee can be viewed as a security for the guarantor's primary or principal performance obligation.

Guaranty Agreement: A two-party contract wherein the first party commits to carrying out its obligations in the event that the other party is unable to do so. A guarantor, unlike a surety, is only obligated to carry out when the obligee has exhausted all reasonable and legal avenues to compel the principal to execute.

<h3>Is a debt payment commitment enforceable?</h3>

Even if no fresh consideration is provided, a commitment to pay a debt that has reached its statute of limitations is nonetheless enforceable. The promise is regarded as a new promise in such circumstances, and only the provisions of the new promise are enforceable.

<h3>What does it mean to vow to be responsible for another's financial failure or default?</h3>

The surety is a party who guarantees another party's payment of one party's debt. A surety is a company or someone who agrees to pay the debt in the event that the debtor policy is in default or is unable to make the payments. The surety, also known as the guarantor, is the party that backs.

Learn more about Guaranty Agreement: brainly.com/question/18454185

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8 0

1 year ago

Kyle made a down payment of $850 towards his car loan. He will be paying $415 every month for 24 months. How Much does the car c

Ronch [10]

<span>Down payment = $850
</span><span>Monthly payment = $415
</span><span>Loan term = 24 months
</span><span>First, ($415)(24) = $9,960
</span><span>Second, ($850+$9,960) = $10,810
</span><span>The total car costs $10,810 </span>

4 0

3 years ago

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