Answer:
$1,120
Explanation:
Ending Merchandise Inventory is value of closing inventory in hand, to be valued at lower of cost or net realizable value or replacement value
Here, cost of closing inventory = 7 units X $160 each = $1,120
Since current realizable/ replacement value = $1,155
Cost is less than realizable value, therefore cost will be considered.
Thus ending merchandise inventory will be valued at total of $1,120.
Answer:
Missing word
<em>"Shipping supplies on hand, January 1 of the current year $13</em>
<em>Purchases of shipping supplies during the current year $75</em>
<em>Shipping supplies on hand, counted on December 31 of the current year $20"</em>
<em />
1. Adjusting entry for insurance at December 31 of the current year.
S/n General Journal Debit Credit
a. Insurance expense $870
(6,960/24)*3=$ 600
Prepaid insurance $870
(Insurance expired)
b. Shipping supplies expenses $68
($13+$75-$20)
Shipping supplies $68
(Supplies used)
2. What amount should be reported on the current year's income statement for Insurance Expense?
Insurance expense = $870
Shipping supplies expense = $68
3. What amount should be reported on the current year's balance sheet for Prepaid Insurance?
Prepaid insurance = ($6,960-$870) = $6,090
Shipping supplies as on Dec 31. = $20
Answer:
At 7% price of bond is $508.35
at 6% price of the bond is $558.39
at 10% price of the bond is $385.54
Explanation:
The present value formula given below is very useful here:
PV=FV*(1+r)^-N
fv=$1000
r=7%
N=10
PV=1000*(1+0.07)^-10
PV=1000*(1.07)^-10
PV=$508.35
at 6% rate of return the price of the bond is computed as follows
fv=$1000
r=6%
N=10
PV=1000*(1+0.06)^-10
PV=1000*(1.06)^-10
PV=$558.39
at 10% rate of return the price of the bond is computed as follows
fv=$1000
r=10%
N=10
PV=1000*(1+0.1)^-10
PV=1000*(1.1)^-10
PV=$385.54