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MrRa [10]
3 years ago
8

Gunk Co. reported an asset retirement obligation on its 2019 financial statements. The present value of the liability for the as

set retirement obligation at the end of 2019 was $393. The company's discount rate is 8%. What is the amount of accretion expense Gunk will record in 2020 related to the asset retirement obligation
Business
1 answer:
iVinArrow [24]3 years ago
4 0

Answer:

$31.44

Explanation:

The accretion expense each year will be calculated as = Present value of the Asset retirement obligation at the end of the previous year * Discount Rate

Hence, the amount of accretion expense Gunk will record in 2020 related to the asset retirement obligation

= $393 * 8%

= $31.44

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False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account. Sales and cash coll
gayaneshka [121]

Answer:

$607,000

Explanation:

False Value Hardware began 2016 with a credit balance of $32,000 in the allowance for sales returns account.

Sales and cash collections from customers during the year were $650,000 and $610,000, respectively.

False Value estimates that 6% of all sales will be returned.

During 2016, customers returned merchandise for credit of $28,000 to their accounts.

False Value's 2016 income statement would report net sales of:  

The closing balance in the allowance for sales returns account will be: 32,000 opening balance + 6% 0f 650,000 - sales returns within the year of 28,000 = $43,000

Hence Net Sales will be 650,000 - 43,000 = $607,000

5 0
3 years ago
Factors affecting communication in a an organization
iVinArrow [24]

FACTORS AFFECTING COMMUNICATION

Status / Role.

Cultural differences .

Choice of communication channel .

Length of communication .

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3 0
3 years ago
“If the minimum wage rate is higher than the equilibrium wage rate, fewer people will be hired because the cost of labor is too
icang [17]

If the minimum wage rate is higher than the equilibrium wage rate, fewer people will be hired because the cost of labor is too high. I agree.

Explanation:

  • If the minimum wage is set above the equilibrium wage rate, it has powerful effects. The Labor Market and the Minimum Wage The equilibrium wage rate is $4 an hour. The minimum wage rate is set at $5 an hour. So the equilibrium wage rate is in the illegal region
  • If the minimum wage is set below the equilibrium wage rate, it has no effect. The market works as if there were no minimum wage. If the minimum wage is set above the equilibrium wage rate, it has powerful effects.
  • The equilibrium market wage rate is at the intersection of the supply and demand for labour. Employees are hired up to the point where the extra cost of hiring an employee is equal to the extra sales revenue from selling their output.
  • When the labor market is in equilibrium, the economy is at full employment.
5 0
3 years ago
A company had beginning inventory of 12 units at a cost of $15 each on March 1. On March 2, it purchased 12 units at $24 each. O
Tema [17]

Answer:

The cost of the 28 units sold is $548

Explanation:

In the given question,  

On March 1 it purchase 12 units for $15 = 12 units × $15 = $180

On March 2 it purchase 12 units for $24 = 12 units × $24 = $288

On March 6 it purchase 7 units for $20 = 7 units × $20 = $140

And, on march it sold 28 units for $63 each  

The 28 units could be taken from  

12 × $15 = $180

12 × $24 = $288

And remaining 4 units × $20 = $80

So, the total cost of units sold = $180 +$288 +$80 = $548

4 0
3 years ago
"on may 1, mesa verde, inc. purchased a 2-year insurance policy for $15,600. prepaid insurance was debited for the entire amount
N76 [4]

The journal entry on May 1 was:

A debit to Prepaid Insurance for 15,600


And a credit to cash for 15,600

 

Prepaid Insurance is the share of an insurance premium that has been paid in early and has not finished as of the balance sheet date.

The monthly insurance payment for two years is computed by 15,600/24 months which is $650 per month.

 

At December 31 the adjusting entry would be:

A debit to Insurance Expense 5,200

And a credit to Prepaid Insurance for 5,200

 

5,200 is computed by:

650 x 8 months (starting from May 1 to December 31) = 5,200

5 0
3 years ago
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