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Katen [24]
3 years ago
15

A project has an initial cost of $31,800 and a market value of $29,600. What is the difference between these two values called

Business
1 answer:
Kazeer [188]3 years ago
5 0

Answer:

Net present value

Explanation:

Below is the given values:

Net present value is the correct answer.

Initial cost of the project = $31800

Market value of the project = $29600

The difference between these two are = 31800 - 29600 = $2200

Net present value shows that the present value of cash inflows minus cash outflows. Moreover, the present value comes by discounting the cash flows at an applicable discount rate.

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Information related to Kerber Co. is presented below.1. On April 5, purchased merchandise from Wilkes Company for $23,000, terms
diamong [38]

Answer: please refer to the explanation section for journals and notes

Explanation:

1 April

DR Inventory 23000

CR       Trade Payable    23000

inventory is purchased on Free on Board Shipping terms, risks and Ownership of inventory  transfers to Kerber Co the moment Wilkes company ships the inventory. inventory must be recognised

6 April

DR Freight costs 900

CR        Bank              900

DR Inventory   900

CR       Freight costs   900

Kerber Co Paid Freight costs of $900. There are two events happening in this transaction  being the payment of freight costs and the capitalisation of freight costs. Freight costs are capitalised  (included in the value of inventory) as they are costs necessary to get the inventory in to the premises of the customer (Kerber Co).

7 April

DR Equipment  26000

CR       Creditor/Liability 26000

Kerber Co purchase inventory on credit. equipment is debited because Equipment is an asset  and liability is credited.

8 April

DR Trade Payable 3000

CR    inventory              3000

Damaged inventory returned will decrease inventory balance and also decrease the amount owed to the creditor (Wilkes Company) . Trade Payable account is Debited and inventory account is credited to record the decrease in inventory and amount payable

15 April

DR Trade Payable 20000  

CR       Bank                    20000

23000 - 3000 = 20 000

recording payment made to the Creditor for inventory purchased or settlement of the trade payable account  

5 0
3 years ago
Jessica decides to order smaller amounts of inventory at a time for her arts and crafts store. she is obviously concerned about
Aleks04 [339]
Do you want to do it in my butt 
yes 
no
yes
no yes

8 0
3 years ago
Adair Valley issued $20,000,000 of general obligation bonds to construct a multipurpose arena. These bonds will be serviced by a
Arlecino [84]

Answer: Please see explanation column for answer.

Explanation:

a) Journal entry to record the budget

Account                                           Debit                     Credit

Estimated   Revenues         $2,500,000

Appropriation                                                        $2,000,000

Budget fund                                                           $500,000

Calculation    

Budget fund= Estimated Revenues-Appropriation   = $2,500,000- $2,000,000= $500,000

b) Journal entry to record the  the expenditure when the interest comes due for payment.

Account                                           Debit                     Credit

Expenditure Interest              $2,000,000

Matured Interest payable                                            $2,000,000

7 0
3 years ago
Scobie Company began 2016 with a retained earnings balance of $142,400. During an examination of its accounting records on Decem
tino4ka555 [31]

The total retained earnings on 31st December 2016 is $197,100. The journal entry are attached below.

<h3>What is Retained Earnings?</h3>

Retained earning is basically the profits of the company which is kept aside to meet the future requirement of the company. It the amount which is left over after deducting all cost such as direct cost, indirect cost, income taxes and dividend.

The retained earning is used in the future projects or for buying the equipment for the company.

Learn more about retained earnings here:

brainly.com/question/14529006

#SPJ1

.

6 0
2 years ago
Explain consumptions of the principal of absolute advantage​
DENIUS [597]

Answer:

The Absolute Advantage Theory assumed that only bilateral trade could take place between nations and only in two commodities that are to be exchanged.

Explanation:

In economics, the principle of absolute advantage refers to the ability of a party (an individual, a firm, or a country) to produce more of a good or service than competitors while using the same amount of resources.

6 0
3 years ago
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