Answer:
Impact of $2,000 sale on accounting equation is as follow:
Accounting Equation
Asset = Equity + Liabilities
Cash+2000 Sales+2,000 No Effect
As cash an asset for the business, so the receipt will increase the balance of assets of the company. The revenue is ultimately adjusted to equity in the form of net income after deducting all the expenses. This transaction will result in increase of equity balance by the sale amount.
Explanation:
The Following journal Entry will support my answer:
Sales amount = 2,000
As this transaction is made on cash basis the following Journal entry will be recorded for this event.
Dr. Cr.
Cash $2,000
Sales $2,000
Answer:
(a) March 12, 2017
(b) Recognized gain = $15,000
(c) Adjusted basis = $450,000
(d) Recognized gain = $175,000
Mitchell basis = $625000
Explanation:
(a) March 12, 2017 is the earliest Mitchell can acquire a new restaurant and qualify for § 1033 postponement
(b) Assuming that he elects postponement of gain under § 1033, the recognized gain is calculated as;
Recognized gain = Award received - cost of land
=$625000 - $610,000
= $15,000
(c) From the question, Mitchell's adjusted basis for the new land and building is $450,000
(d) If Mitchell does not elect § 1033, his recognized gain is calculated as;
Recognized gain = Award received- adjusted basis for the building
=$625,000 - $450,000
=$175,000
Also,Mitchell basis for the new land and building is $625000
Answer:
No
Explanation:
Because its better u save 0.3*10=3 dollars but I value my time for $5 for that half an hour and hence its better not to go considering opportunity cost.
Answer: 1. $110000.
2. $120000
Explanation:
First, we calculate the sold units which will be:
= Opening inventory + Purchase - Ending inventory
= 10000 + 30000 - 20000.
= 20000
Then, the cost of stock per unit will be:
= $115000/20000
= $5.75
The total cost of the total stock available will be:
= 40000 × $5.75
= $230,000
Cost of purchase stock will be:
= Total cost of stock - Cost of beginning inventory
= $230000 - $50000
= $180000
Then, cos per unit of purchased stock will be:
= $180000 / 30000
= $6
1 Determine the cost of goods sold for 2021 using the FIFO method.
Cost from begining inventory = 10000 × 5 = 50000
Add: Cost from purchase inventory = 10000 × 6 = 60000
Cost of goods sold under FIFO = 110000
2. Determine the cost of goods sold for 2021 using the LIFO method.
This will be:
= 20000 × 6
= 120000
