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Lina20 [59]
3 years ago
12

For each separate situation, indicate whether Cruz Company should (a) record a liability, (b) disclose in

Business
1 answer:
ratelena [41]3 years ago
8 0

Answer:

Cruz Company

Indicating whether to (a) record a liability, (b) disclose in notes, or (c) have no disclosure.

Transaction                                                        Remark

1.  Guarantee of supplier's debt                  (c) have no disclosure

2. Damages for disgruntled employee      (b) disclose in notes

Explanation:

When it is not probable that the supplier whose debt is guaranteed by Cruz will default on the debt, there is no need to make a disclosure since probable liability is not accruing to Cruz.  But with the legal case of a disgruntled employee, Cruz should disclose the information in a note.  It can only be recorded as a liability when the amount of the damages can be reasonably estimated.

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3 years ago
Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system.
Zanzabum

Answer:

Campus Stop, Inc.

Partial Income Statement

Sales revenue                              $323,300

Sales returns                                    ($1,730)

Sales discounts and allowances <u>  ($2,270)</u>

Net sales                                       $319,300

Cost of goods sold                      <u>($172,870)</u>

Gross profit                                   $146,430

Gross profit margin = $146,430 / $319,300 = 45.86%

8 0
2 years ago
Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,400 of dir
saul85 [17]

Answer:

Total cost of Job A3B=  $31,900

Explanation:

Job A3B was ordered by a customer on September 25.

The company applies overhead at a rate of 100% of the direct labor cost incurred.

Cost of September:

$3,400 of direct materials

$4,900 of direct labor.

$4,900 manufactured overhead

Total= $13,200

Cost of October:

$3,900 of direct materials  

$7,400 of direct labor

$7,400  manufactured overhead

Total= $18,700

Total cost of Job A3B= 13,200 + 18,700= $31,900

3 0
2 years ago
A company produces 3 products that use labor and raw material. The labor usage, raw material usage, and profit per pound produce
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Answer:

sea 100% la materia prima disponible

si consume el 40% lo que le queda es 60%

60% < > 40% + 57

20% < > 57

si el 20% es 57 el 100% es 57 x 5 = 285kg

Explanation:

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3 years ago
A company has an unbiased forecast for its demand. what does that mean?
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Average of all forecast errors is 0 a company wants to use a regression analysis to forecasts the demand for the next quarter.
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