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Inessa [10]
3 years ago
15

The balance sheet value of a firm's inventory is $60,000. Suppose that the firm purchases supplies at a cost of $3,500 and adds

them to inventory. A day later, the market value of the recently purchased supplies changes to $1,000.
Assuming no other changes to inventory, and using the historical cost method, what is the final balance sheet value of inventory?
Note: Students with prior accounting experience should not apply the monthly "lower of cost or market" adjustment. This is a day-to-day fluctuation.
Business
1 answer:
Andreyy893 years ago
3 0

Answer:

$63,500

Explanation:

Calculatuon to determine the Final balance sheet value of inventory using the historical cost method

Using this formula

Final balance sheet value of inventory=Balance sheet value of firm's inventory+Supplies

Let plug in the formula

Final balance sheet value of inventory= $60,000+$3,500

Final balance sheet value of inventory= $63,500

Therefore Final balance sheet value of inventory is $63,500

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Total assets were $78,000 and total liabilities were $42,000 at the beginning of the year. Net income for the year was $15,500,
Vaselesa [24]

Answer:

$46,500

Explanation:

Accounting equation is stated as :

Assets = Equity + Liabilities

therefore,

Equity = Assets - Liabilities

Equity at Beginning of the Period :

Equity = Assets - Liabilities

           = $78,000 - $42,000

           = $36,000

Equity at end of the Period

Closing Equity Balance = Opening Balance + Net Income - Dividends

                                       = $36,000 + $15,500 - $5,000

                                       = $46,500

6 0
3 years ago
If a fishing boat owner brings 10,000 fish to market and the market price is $7 per fish, she will have $70,000 in total revenue
Alex777 [14]

Answer:

$10,000

Explanation:

Given that

Total revenue is $70,000

Total fixed cost is $40,000

And, the total variable cost is $10,000

According to the given situation, the computation of profit is shown below:-

Profit = Total Revenue - Total Fixed cost - Total variable cost

= $70,000 - (10,000 × $4) - 10,000

= $70,000 - 40,000 - 10,000

= $10,000

Therefore for computing the profit we simply applied the above formula.

6 0
3 years ago
Think of a time when effective or ineffective communication affected your success at home, school, or work.In paragraph 1, descr
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Answer:

Explanation:

<u>How ineffective communication can affect your success at home, school, or work</u>

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Person A is/was supposed to out-rightly tell the problem to person B, instead of getting upset that person didn't notice his/her sore mood.

(b) In the case of safety, members of a home should let one another know their movements, even if they don't say the exact destination.

2. At school, there are teachers, students and administrators. A wise student (especially at the higher education level) should communicate with classmates so as to find out information from the lecturer or teacher and ensure he/she is on track. Every student should also communicate with teachers and administrators (either directly or through their parents), in order to know new rules and regulations, as well as news.

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4 0
3 years ago
As Laura checks items off her meeting agenda and various individuals provide input and insight, she beams at her team. She is so
Alchen [17]

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A high performing team is as the term implies, one that is productive. To be productive one has to be able to come up with solutions to problems as fast as possible and implement those solutions so as to continue or even increase production.

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7 0
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