Answer:
$60,500
Explanation:
The cost of the land to be recorded consist of the cost of the land itself and other associated cost with the purchase.
The amount realized as income in the process is deducted from the cost.
Cost of land
= $50,000 + $5,000 + $4,000 + $2,000 - $500
= $60,500
Answer:
Closing value of inventory = $357 for 21 units
Explanation:
As for the provided information we have,
Under FIFO method we know,
FIFO means First In First Out, under this the goods bought at earliest are sold earliest.
That means first opening inventory is sold, then the inventory purchased at the earliest.
Now we have,
Opening Inventory = 27 units @ $17 = $459
Purchases:
Aug 5 22 units @ $16 = $352
Aug 12 26 units @ $17 = $442
Provided 54 units are sold on Aug 15, that means, opening inventory of 27 units, 22 units bought on Aug 5, and 54 - 27 - 22 = 5 units from purchases on Aug 12.
Therefore, after sale units left = 26 - 5 = 21 units
Thus, closing value of inventory = $357 for 21 units
Answer:
The firm paid $630000 dividends in 2019
Explanation:
Retained earnings is the amount of net income that is not distributed to stockholders and is ploughed back into the business. It is a capital reserve account and appears in the equity section of the Balance Sheet. To determine the amount of Dividends, we will trace the change in Retained earnings and deduct the increase in retained earnings amount from the Net Income to arrive at dividends for the year.
Increase in Retained earnings = 4000000 - 3700000 = $300000
Thus, out of the Net Income of $930000 earned in 2019, $300000 was transferred to retained earnings. The remaining was paid as dividends.
The dividends in 2019 are = 930000 - 300000 = $630000
Answer:
a. Recording of transactions:
May 7, Accounts Receivable (Dr.) $900
Sales Revenue (Cr.) $900
May 15, Customer service Expense (Dr.) $360
Sales Allowance (Cr.) $360
May 20, Cash (Dr.) $495
Cash Discount (Dr.) $45
Sales Allowance (Dr.) $360
Accounts receivable (Cr.) $900
Explanation:
b. Net Sales :
Total Quote ($180 * 5 ) = $900
Less : Cash Discount 5% = 45
Less : Sales Allowance 40% = 360
Net Sales = $495
c. Outdoor expo will record sales after deducting the cash discount. This discount is availed by customer as repayment is made within 15 days. The sales allowance is subtracted from the gross sales as the compensation is made from the outdoor expo due to mistake from their guide on tour. The net sales reported in Income statement will be $495.
