Answer: Debit Notes Receivable 7,800
Sales(to record sales) 7,800
Explanation:
When a customer signs a promissory note in exchange for commodity then the entry to record sales is recorded by debiting notes receivable.
here, sales = $7,800 = Debit Notes Receivable
The entry to record the sales transaction would be
Debit Notes Receivable 7,800
Sales(to record sales) 7,800
Assume that Sheridan factors the receivables on a with recourse basis. The recourse obligation has a fair value of $3500. The loss to be reported is
($710000 × 0.04) + $3500 = $31900.
Answer: 1. units completed and transferred to finished goods.
c. units in ending work in process inventory.
2. b. labor of the maintenance employees.
c. labor of the clerical staff.
Explanation:
1. Equivalent Units of Production (EUP) are very helpful in Process Costing because they help assign costs to manufactured goods as they go along the production process. Using EUP ascribes a value to the manufactured good by assuming it was completed.
For this reason it is useful in determining the cost of goods that are finished and should be transferred to Finished goods because it has already estimated completed good costs.
It is also useful for estimating the amount of units that are still in Progress at the end of the period because it will express the units like they are complete thereby allowing for proper accounting reporting.
2. Indirect labor are those that are not directly involved in the Manufacturing of a good. In this case these would the labor of the maintenance employees who only work to keep the factory performing and so do not actually work on the product and the labor of the clerical staff who are administrative staff and so do not get involved in production.
You will be open to more jobs. Also you will meet new people and make new friends. You could have many opportunities. Finally it helps your brain grow and not deplete ( not forget easier).
Answer:
<u>Net Present Value: </u><em>362,855</em>
Explanation:
<u>First we need to calculate the WACC to know the required return of the project.</u>
Ke = 0.152 (0.137 cost of capital+ 0.015 subjective risk)
ER = 0.35 = E/(E+D)
Kd = 0.086
DR = 0.65 = D/(E+D)
t = 0.35
WACC 8.95350%
<u>Then we calcualte the net present value:</u>
<em>Present value of the cash flow</em>
C= 1,540,000
rate = 8.9535%
time 7 years
PV = 7,762,855
Present value of the cash flow - Investment = NPV
7,762,855 - 7,400,000 = 362,855
