Answer:
Date Particular DR CR
a. Patent $214,500
Cash 214,500
<em>Being total payment for the exclusive right </em>
<em>to produce X-core machine </em>
b. Brand name 260,000
Exercise Equipment 403,000
cash 663,000
<em>Being the payment for the brand name of Silver Gym </em>
<em>and exercise equipment </em>
<em>c. </em>Copyright 22,000
Cash 22,000
<em>Being the payment for the exclusive right to sell Healthy book</em>
Explanation:
there is no journal enrty for the amount to be paid to Silver Gym on a monthly basis when the sales begin because the money has not been paid.
Answer:
Wagner Enterprises and Stone Services
Disposal of old asset:
It could be that Stone Services exchanged its old asset with a new one with a company. In that situation, the debit goes to New Equipment, while the credit is to the old Equipment. Another reason could be that Stone Services sold the old asset on account. In this situation, the debit goes to the Accounts Receivable account, while the old asset is credited accordingly.
Explanation:
When a company disposes of an old asset, it credits the asset account and transfers the amount to the Sale of Asset account. The same is done for the accumulated depreciation, in reverse. When cash is realized from the disposal, the Sale of Asset account is credited, while Cash account is debited. Then, the difference in the Sale of Asset account will be a gain or a loss, depending on the net book value and the cash realized from the sale.
Answer:
Income will increase by $5 per unit
Explanation:
The income effect in case of the order accepted is presented below:
As we know that
Additional sales per unit $32
Direct material per unit $12
Direct labor per unit $9
And, the incremental variable overhead cost is $6 per unit
Since the fixed cost is the same so it does not affect the effect on income
So, the income effect would be
= $32 - $12 - $9 - $6
= $5 per unit
Since the answer comes in positive which means there is an increase in income
Answer
The answer and procedures of the exercise are attached in the following image.
Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.
Answer:
$8.20 per pound
Explanation:
The computation of the actual price per pound is shown below:
Material price variance = (Standard price per pound - Actual price per pound) × Actual quantity purchased
-$7,000 = ($8.00 - Actual price per pound) × 35,000
$8.00 - Actual price per pound = -$7,000 ÷ 35,000
Actual price per pound = $8.20 per pound
Hence, the actual price per pound is $8.20 per pound
We simply applied the above formula so that the correct value could come
And, the same is to be considered
