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2 years ago

Dr. Peabody contributed $5,000 in cash to the company. Which of the following statements is correct?

Business

1 answer:

Vinvika [58]2 years ago

5 0

Answer:

D. Cash is debited $5,000; capital is credited $5,000.

Explanation:

The action by Mr. Peabody will increase both cash and capital accounts by $5000 each. As per the accounting equation,( Assets = owners equity + liabilities) cash and capital are on the opposites sides. Cash is an asset, while capital is equity.

An increase in an asset is a debit, while an increase in capital is credited. In this case, the cash account will be debited by $5000, while the same amount will credit the capital account.

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Answer:

E) Satisfaction Guarantees

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2 years ago

According to the sticky-wage theory of aggregate supply, nominal wages at the initial equilibrium are ____________ nominal wages

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2 years ago

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Answer:

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2 years ago

Shoemaker Perkins Company uses a standard cost system for raw material X15. The standard cost is $10 per pound. The standard cal

AURORKA [14]

Answer:

Actual Quantity 1500 pounds

Materials price variance $ 1500 Favorable

Explanation:

Shoemaker Perkins Company

Given

Each unit requires 2 pounds of materials X15 at standard.

Standard cost is $10 per pound

Actual Cost $ 9 per pound

Actual No of Units Manufactured = 600

Standard Quantity allowed= 600* 2= 1200 pounds

Materials Usage Variance = $3000 unfavorable

We find the actual quantity by putting the values from the given data in the formula of material quantity variance which is also called material usage variance.

Formula

a. Material Quantity Variance= (Standard Price * Actual Quantity)-(Standard Price * Standard Quantity)

$3000= $ 10*Actual Quantity- $ 10 * 1200

$3000= $ 10*Actual Quantity- 12000

$3000 + 12000= $ 10*Actual Quantity

$ 10*Actual Quantity=15000

Actual Quantity= 15000/10= 1500 pounds

Now the Materials price variance can be calculated by putting the values in the formula of Materials price variance .

b.Materials price variance = (Actual Price * Actual Quantity)- (Standard Price * Actual Quantity)

Materials price variance =( $ 9 *1500)- ($10* 1500)

Materials price variance = 13500- 15000= $ 1500 Favorable

It is favorable because the standard price is more than the actual price.

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2 years ago