Answer:
5. Increase an expense; increase a liability.
Explanation:
Accrued expenses are expenses that have been incurred but are yet to be paid for. To record and accrued expense,
Debit Expense account (p/l)
Credit Accrued expense (b/s)
The expense account is usually in debit hence the transaction above increases the balance. The accrued expense account is usually in credit hence the above transaction increases the account balance.
As such, the right option is 5. Increase an expense; increase a liability.
Answer:
$255,000
Explanation:
If a company acquires shares of another company the investment amount is shown in the balance sheet of the acquirer. When Plate acquired shares of Silver, it reported the investment of $225,000. The Silver reports a profit of $30,000 on January 2019. The amount reflected in the balance sheet of Plate will be $255,000. This is the sum of investment plus the profit reported by the Silver.
Answer:
Decision : It is not good invest as it offers at $925 whereas your bank deposit cost $893.16 for same return.
Explanation:
Detailed calculations are carried out in the attachment below.
Answer:
b. $469,000
Explanation:
Ending inventory at retail:
$670,000 [$650,000 (beginning inventory) + $1,835,000 (net purchases) + $75,000 (net markups) - $45,000 (net markdowns) - $1,845,000 (net sales)]
Cost ratio: 70% [$390,000 (beginning inventory) + $1,402,000 (net purchases)] / [$650,000 (beginning inventory) + $1,835,000 (net purchases) + $75,000 (net markups)].
Ending inventory at cost: $70,000 x 70%
Answer:
Due to the nature of its work production the function does not exist in case of oil refinery
Explanation:
