Answer:
Explanation: There can be several methods to value a inventory like weighted average, LIFO etc. one of them is FIFO,that is, first in first out. Under FIFO approach it is assumed that the earlier purchased stock will be sold first therefore the ending inventory under FIFO will be valued at the latest prices.
Under periodic inventory method the accounts are updated at a particular point of time and not continuously like in perpetual system.
therefore :-
Inventory = Beginning inventory +total purchase - sale
= 2 + 4 + 5 -2
= 9
value = (5*1600) + (4*1450) = 8000 + 5800 = $13800
Answer:
C. Tec must capitalize the transer tax and treat it as a ney asset placed in service on the date the property is contributed.
Explanation:
A.- Is incorrecto because none of the start espenses can be deducted if the total incurred exceeds $55,000
B.- is incorrect because the partnership steps into the partner´s shoes with respecto to depreciation of contributed probperty.
d.- Is incorrect because the first $5000 of organizational costs may be deducted if total organizational costs are less than $50,000.
Answer:
Aug. 1 Cash 37,800
Common Stock 37,800 (Investment of cash for stock)
Dr.Cash 37,800
Cr. Common stock 37,800
10 Cash 17,010
Service Revenue 17,010 (Received cash for services performed)
Dr. Cash 17010
Cr. Service Revenue 17010
12 Equipment 31,500
Cash 5,040
Notes Payable 26,460 (Purchased office equipment for cash and notes payable)
Dr. Office Equipment 31500
Cr. Cash 5040
Cr. Account Payable 26460
25 Account Receivable 10,080
Service Revenue 10,080 (Billed clients for services performed)
Dr. Account Receivable 10080
Cr. Sales 10080
31 Cash 5,544
Accounts Receivable 5,544 (Receipt of cash on account)
Dr. Cash 5544
Cr. Account Receivable 5544
T account are prepared in the attached MS Excel File, Please find that.
Answer: The answer is "D. Net income, assets, and stockholders' equity are all decreased.".
Explanation: This happens because the recording of the depreciation of equipment reflects the loss of value of the asset, which is a negative result that impacts the results, the value of the assets, and as a consequence in the stockholders' equity.