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fiasKO [112]
3 years ago
9

The agreed cost of an item to be purchased by a business on credit is 4000. The applicable cost will be debited to advertising e

xpenses. The item is subject to 5% goods and services tax GST and 5% provincial sales tax PST. Nguyen it’s transaction is recorded what amount will be credited to Accounts Payable?
Business
1 answer:
Free_Kalibri [48]3 years ago
6 0

Answer:

$4,400

Explanation:

For calculation of amount that will be credited to Accounts Payable first we need to find out the GST and PST which is shown below:-

Goods and services tax GST = Goods and services percentage × Purchase cost

= 5% × $4,000

= $200

Provisional sales tax PST = Provisional sales tax percentage × Purchase cost

= 5% × $4,000

= $200

Amount that will be credited to accounts payable = Purchase cost + Goods and services tax GST + Provisional sales tax PST

= $4,000 + $200 + $200

= $4,400

Therefore for computing the amount that will be credited to accounts payable we simply added all the taxes value with the purchase cost.

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which of the following is not typically involved in rescheduling activities of a troubled sovereign loan? group of answer choice
Margarita [4]

Shortening the repayment schedule is not typically involved in rescheduling activities of a troubled sovereign loan.

Governments of independent political entities can issue debt, typically in the form of securities, known as sovereign debt.

Unique risks associated with sovereign debt are not present in other forms of lending.

The creditworthiness of sovereign debtors and the securities they issue is frequently rated by a number of private agencies.

Economies and political systems that are stable are often seen as having better credit risks, enabling them to borrow on more favorable terms.

Governments incur sovereign debt through the issuance of bonds, notes, and other debt instruments as well as by the borrowing of funds from other nations and international institutions like the International Monetary Fund.

Foreign currencies as well as domestic ones may be used to pay off sovereign debt, which may be due to outsiders or to the nation's own population.

To know more about International Monetary Fund click here,

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8 0
1 year ago
Gitano Products operates a job-order costing system and applies overhead cost to jobs on the basis of direct materials used in p
Yanka [14]

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-  

1. Predetermined Overhead Rate for a Year

= Estimated Manufacturing Overhead ÷ Estimated Allocation Base Of Direct Material × 100

= $133,500 ÷ $89,000 × 100

= 150%

2. We have a need the value of overhead applied and overhead incurred, to calculate the value of over applied and under applied overhead.

Overhead Applied = (Purchase Of Direct Material + Opening Value of Direct Material - Closing Value of Direct Material) × Predetermined Overhead Rate

= ($139,000 + $27,000 - $13,000) × 150 ÷ 100

= $153,000 × 150 ÷ 100

= $229,500

Overhead Incurred

= Indirect Labor + Property Taxes + Depreciation of Equipment + Maintenance + Insurance + Rent&Building  

= 127,800 + 8,880 + 18,000 + 12,000 + 11,300 + 40,000

= $217,980

Over Applied Overhead = Overhead Applied - Overhead Incurred

= $229,500 - $217,980

= $11,520

Overhead applied is more than overhead incurred, so this situation is called over applied overhead.

3. Cost of Goods Manufactured for the Year

Particular  Amount  ($)

Opening stock of raw material 27,000

Add-purchases of raw material 139,000

Less-closing stock of raw material 13,000

Add-Direct labor 85,000

Add-Manufacturing overhead applied to WIP 229,500

Add-Opening Work in Progress 46,000

Less-closing Work in Progress 36,000

Goods manufacturing cost 477,500

4. Unadjusted Cost of Goods Sold

Particular  Amount ($)

Goods manufacturing cost 477,500

Add-finished goods opening stock 71,000

Less-finished goods closing stock 56,000

Cost of goods sold 492,500

3 0
3 years ago
Mm mjhuuuuuuuuuuuuuuuuuuuuuh
strojnjashka [21]

Answer: Mm mjuuuuuuuuuuuuuuuuuuuuuh

Explanation: Mm mjhuuuuuuuuuuuuuuuuuuuuuh

5 0
3 years ago
Read 2 more answers
In some instances accounting principles require a departure from valuing inventories at cost alone. Determine the proper unit in
Zepler [3.9K]

Answer:

1   $12.80

2   $16.10

3   $13.00

4   $9.20

5   $15.90

Explanation:

The unit value of inventory is to be valued  the lower of cost price and net realizable value.

Cost is the original purchase price while the net realizable value is the estimated selling price less of costs to complete and costs to sell as computed in the attached file.

Download xlsx
3 0
3 years ago
Lance, Art, and Wayne have joined together to open a law practice but are struggling to manage their cash flow. They haven’t yet
mixas84 [53]

Answer:

This is very simple, they should start billing their clients right away.

You don't have to bill your clients for the full legal expenses, but they for sure need to start making some money.

It is very normal that new businesses don't get enough revenue to cover their operation expenses right away. Even for big corporations, like Amazon and FB, it may take years to reach the break even point.

When you open a business you have to keep some money as reserve to cover some expenses for at least a few months.

6 0
2 years ago
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