Answer:
c. $524,000 and $250,000
Explanation:
See the attached picture for detailed explanation.
Answer:
Thomas capital
Equipment $30,000
Inventory 25,000
Cash <u> 45,000</u>
Total <u> 100,000</u>
Explanation:
Equipment : thebook value is $25,000 while the market value is $30,000. the market value of the equipment will be used.
Inventory : the book value is $50,000 while the market value is $25,000. As a result of obsolescence, the inventory will be value at lower of cost and net realizable value(IAS2). therefore, $25,000 will be recognized for the inventory in the determination of Thomas capital
Cash: there is no changes in cash contributed.
Answer:
The journal entry to record applied conversion costs for May will include a debit to raw and in-process inventory for $300,000.
Explanation:
Raw materials of all kinds are measured at the start and recorded into a list plus account, with a credit to the accounts collectible account, and a debit to the raw materials inventory account.
The accounting treatment will vary when raw materials are consumed speculating on their standard as direct or indirect materials.
Thus, the journal entry to record applied conversion costs for May will include a debit to raw and in-process inventory for $300,000.
