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
Answer:
$63,000
Explanation:
The computation of the income statement from this investment is shown below:
= (Value of the bond - outstanding bond) ÷ criteria
= ($1,026,000 - $900,000) ÷ 2
= $126,000 ÷ 2
= $63,000
The outstanding bond value is subtracted from the value of the bond and the amount that comes is divided by 2 so that the actual amount could come.
The economic doctrine that opposes government interference in economic activities is called laissez-faire.
Answer:
The first bank will be short of reserves in the amount of $1,000
Explanation:
According to the given data, we have the following:
bank excess reserves=$5,000
reserve ratio=20%
Total Reserve= $5000+(20%*$5,000)= $6,000
Therefore, to calculate the reserve shortage we would have to make the following calculation:
reserve shortage=$6,000 - $5,000 = $1,000
The first bank will be short of reserves in the amount of $1,000
