Answer:
Explanation:
The current liability is that liability in which the obligation is arise for one year or less than one year.
So, the categorization is shown below:
a. A note payable for $100,000 due in 2 years. = It is not a current liability as it is due in 2 years that come under the long term liability
b. A 10-year mortgage payable of $300,000 payable in ten $30,000 annual payments. = Current liability for first annual payment only and rest is consider to be long term liability
c. Interest payable of $15,000 on the mortgage. = Current liability as it is arise within one year
d. Accounts payable of $60,000. = Current liability as it is arise within one year
The current liability is shown on the liabilities side of the balance sheet.
Answer:
D)record a decrease in inventory and an increase in cost of goods sold for the cost of the merchandise sold.
Explanation:
perpetual inventory system can be regarded as an inventory management method which involves the recording of real time transaction of stocks by application of technology , both sold and received stocks. This method has great efficiency compare to periodic inventory system. It should be noted that Under the perpetual inventory system, in addition to making the entry to record a sale, a company would record a decrease in inventory and an increase in cost of goods sold for the cost of the merchandise sold.
Answer: $359
Explanation:
Opportunity cost refers to the next best benefit that would have been accrued to you if you did not make the decision or embark on a project that you did. In this case therefore that would be the amount you would have earned working which is $180.
It can be measured as an Economic cost which is both the implicit cost and the explicit cost (opportunity cost).
= 84 + 95 + 180
= $359
Answer:
The required adjusting entry would be to debit the Interest expense account and credit the Interest payable account
Explanation:
Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made.
The company borrowed $10,000 from the bank at 5% interest. The loan has been outstanding for 45 days. At the end of a period, if required adjusting entry, the adjusting entry:
Debit Interest expense and Credit Interest Payable
Answer:
110,257 units.
Explanation:
Fixed operating costs (FC) = $430,000
Variable costs (VC) = $2.10 per unit,
Sales price (P) = $6.00 per unit.
The revenue, as a function of 'n' units produced, for this company is given by:
The break-even point occurs when revenue is zero. The break-even point is:
Rounding it up to the next whole unit, the sales volume needed to reach the break-even point is 110,257 units.
