Answer:
(a) the cost of the goods sold for the September 30 sale and
(b) the inventory on September 30.
- Ending inventory = 9 units at $17 = $153
Explanation:
date transaction units unit price total
1 beginning inv. 23 $16 $368
5 sale -13 ($208)
17 purchase 24 $17 $408
30 sale -25 ($415)
30 ending inv. 9 $17 $153
When we use first in, first out (FIFO) inventory method, the price of the units sold are calculated using the oldest units in inventory.
The COGS of the units sold on Sept. 5 = 13 units x $16 = $208
The COGS of the units sold on Sept. 30 = (10 units x $16) + (15 units x $17) = $160 + $255 = $415
Ending inventory = 9 units at $17 = $153
Answer:
b. $4,908,000
Explanation:
According to the FASB GAAP, the straight line method is used in this given question which is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($40,900,000 - $4,090,000) ÷ (15 years)
= ($36,810,000) ÷ (15 years)
= $2,454,000
In this method, the depreciation is same for all the remaining useful life
For two years, the accumulated depreciation would be
= Annual year depreciation × number of years
= $2,454,000 × 2 years
= $4,908,000
Jan pays $70 each month for her auto insurance policy. This regular payment is called PREMIUM.
Premium is the payment made by the insured party to the insurer. It primary pays the insurer for bearing the risk of payout in the event that the insurance agreement coverage is needed. Premium payment may be monthly, quarterly, semi-annually, or annually.
Answer:
The correct answers are letters "A", "B", and "C".
Explanation:
Corporate bonds are securities that firm issues to be sold to investors to raise funds that will be using to keep the company up and running. Investors profit from the interest rate dealt in the bond agreement or sometimes they obtain physical assets of the organization as collateral. If in the <em>secondary market bonds</em> are issued at a premium, the premium can be amortized or applied to the bond base but if the bonds were issued at a discount, <em>discount bond rules</em> take into place. The <em>interest payment received</em> thanks to the bonds are recorded in the gross income.
