Answer:
Main route:
Smelting --> Rolling --> Converting --> Sheared Sheet
Secondary route -->
Smelting --> Rolling --> rolled sheet
1) Smelting trasnferred materials into Rolling
2) It will be part of that department work in process inventory
"WIP SConverting debit then factorty overhead credit"
Later it will be transferred out as a complete process therefore,
Finished good Inventory - Shared sheet
3) the Smelting department transfer the entire of his output into Rolling department
4) the finished good will become cost of good solg once they are sold.
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Explanation:
We have to read he description of how the processing system works and check to whichdeparmtent are the goods being transferred or sold.
Answer:
Under the allowance method writing of uncollectible account will only affect Balance sheet accounts
Explanation:
Uncollectibles when write of under allowance method will create reduce account receivable one side and also results in reduction of allowance for receivable on other side created previously, thus having impact only on balance sheet:
Entry will be:
Dr: Allowance for Doubtful Debts (Balance Sheet Item)
Cr: Account Receivable (Balance Sheet Item)
Barack Obama is the President of the US
Answer:
The firm's tax payment is $ 102,200
Explanation:
Sales 3,600,000
Cost of goods sold. (2,300,000)
Gross profit. 1,300,000
Other operating exp. (840,000)
Depreciation expenses. (114,000)
Interest expense
625,000 × 8%. (50,000)
Gain on investment 30,000
Income before taxes. 326,000
Tax expense 31.34% × 326,000
Firm's tax payment is therefore $102,200.
Answer:
B. Cost of goods sold will be too low by $5,000.
Explanation:
Overstatement in closing inventory has two effects. First in income statement, that the cost of goods sold is decreased by the same amount that is overstated. Second is overstatement of Inventory value in the asset section of balance sheet. According to the given scenario The effect of this event should be as cost of goods sold will be too low by $5,000.
