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3 years ago

When should supplies be recorded as an expense?

Business

1 answer:

Crazy boy [7]3 years ago

7 0

Answer:

Supplies should be recorded as an expense when it is used up during an accounting period.

Explanation:

Supplies which is also refers to as office supplies can be described as consumables and equipment which are used from time to time by company. Examples of office supplies include printer paper, pencils, notebooks, binders, pens and among others.

When supplies are bought before they are used, they are recorded as office supplies by adding them to office supplies on hand at the beginning of to obtain total supplies for an accounting period under the current asset in the balance sheet. Any part of the office supplies used up during an accounting period is recorded an expense during that accounting period in the income statement. The part used is deducted from the total supplies obtained supplies on hand at the an accounting period to be recorded under the current asset in the balance sheet.

Therefore, supplies should be recorded as an expense when it is used up during an accounting period.

You might be interested in

Rappaport Corp.'s sales last year were $385,000, and its net income after taxes was $23,000. What was its profit margin on sales

Marianna [84]

Answer:

5.97%

Explanation:

Profit margin is an example of profitability ratio

profitability ratio measures the ability of a firm to generate profit from its assets

Profit margin = net income / sales

= $23,000. / $385,000,

5 0

3 years ago

Tyler Hawes and Piper Albright formed a partnership, investing $210,000 and $70,000, respectively. Determine their participation

ad-work [718]

Answer:

No agreement concerning division of net income.

Hawes = $52,000

Albright = $52,000

Divided in the ratio of original capital investment.

Hawes = (210/280) x $104,000 = $78,000

Albright = (70/280) x $104,000 = $26,000

Interest at the rate of 5% allowed on original investments and the remainder divided in the ratio of 2:3.

Hawes = ($210,000 x 5%) + $36,000 = $46,500

Albright = ($70,000 x 5%) + $54,000 = $57,500

Salary allowances of $36,000 and $45,000, respectively, and the balance divided equally.

Hawes = $36,000 + $11,500 = $47,500

Albright = $45,000 + $11,500 = $56,500

Allowance of interest at the rate of 5% on original investments, salary allowances of $36,000 and $45,000, respectively, and the remainder divided equally.

Hawes = ($210,000 x 5%) + $36,000 + $4,500 = $51,000

Albright = ($70,000 x 5%) + $45,000 + $4,500 = $53,000

3 0

3 years ago

A soda manufacturer has two operating departments: mixing and bottling. mixing has 600 employees and bottling has 400 employees.

zhannawk [14.2K]

Cost allocation is a technique of allocating the organization's costs among the various cost centers of the organization. Thus, the office costs allocated to the Bottling department are equal to $128,000.

<h3>What are allocation costs?</h3>

Cost allocation is a technique of supplying relief to shared carrier organization's cost facilities that offer a product or provider. In turn, the related cost is assigned to internal clients' price centers that devour the goods and services.

As per the given information,

Total office costs: $320,000

We have given total number of employees for mixing = 600

And total number of employees for bottling = 400

office costs = $320,000

So total number of employees is equal to 600 plus 400 is 1000 employees.

$\rm\,Allocation \,Base\, For\, Mixing: \frac{600}{1,000} = 0.6 \\\\So allocated amount for mixing is 0.6 \times \$320,000 = \$192,000\\\\Allocation \,Base\, for\, Bottling\, = \dfrac{400}{1,000} = 0.4\\\\So allocated amount for bottling = 0.4 \times \$320,000= \$128,000$

Thus, the office costs allocated to the Bottling department is equal to $128,000.

Learn more about allocation costs here:

brainly.com/question/26656438

#SPJ1

3 0

2 years ago

If Veronica withdraws $1,500 from her savings account and deposits it in her checking account, then M1 will ________ and M2 w

katrin [286]

Answer: Increase and Unchanged

Explanation:

Given that,

Veronica withdraws = $1,500 from her savings account

then deposit this amount into her checking account.

M1 contains:

M1 = currency with public + checkable deposits + other deposits with RBI

M2 Contains:

M2 = M1 + post office savings account

Veronica withdraws $1,500 from savings account, so M2 decreases by $1500. Then, she deposited this amount into her checking account as a result M1 increases by $1,500 and M1 is a component of M2, so M2 also increases by $1500.

The conclusion of this transaction is that M1 increases by $1500 and there is no change in M2.

7 0

3 years ago

1. Noor Patel has had a busy year! She decided to take a cross-country adventure. Along the way, she won a new car on "The Price

Lorico [155]

Answer:

1. 16,100

Explanation:

To get how much she would include in her federal taxable income. We would have to add up these values:

The car won on the price is right + scratch off lottery + sign up bonus.

15,500 + 500 + 100

=$16,100

2a.

head of household

0 to 9275 at 10% = 927.5

(37650 - 9275)*15% = 4256.1

(57500 - 37650)*25% = 4962.5

total = 927.5 + 4256.1 + 4962.5

= 10146.1

single person

0 to 9275 at 10% = 927.5

(35000-9275)*10% = 3858.75

total = 927.5 + 3858.75

= 4786.25

for married couple

0 to 18550 at 10% = 1855

(70700-1855)*15% = 7822.5

total = 1855 + 7822.5

=9677.5

7 0

3 years ago