Steven needs to create a budget that will list all of his expenses each month with regards to the income he brings in. Once Steven sits down and creates the budget he will see the money that is left over once he is done paying all of his necessary bills. The money that is left over can be saved to purchase a new car.
Answer:
b. 9.75%
Explanation:
When a partner invests in a business, he/she expects to get return on his equity in the business. The major reason for this is to compare his/her return in the partnership business with the return he/she could get elsewhere.
The return on partner equity is calculated by dividing his/her net income from the partnership business by his/her average capital for the period.
The formula is given below:
<u> Net income </u> x 100
Average capital
Average capital = <u>Opening capital balance + Closing capital balance</u>
2
For Carter Pearson, the average capital is =<u> $55,500 + $62,500</u>
2
= $59,000
The return on equity will be: <u>$5,750 </u> x 100
$59,000
= 9.7457
= 9.75% - approximate to two decimal point.
Answer:
$2.07
Explanation:
the complete answer details is found in the attachment below
Answer:
In Barton and Barton Company's general journal, entry required include:
Debit Retained Earnings Account with $8.2 million
Credit Opening Inventory with $8.2 million
Being reversal of overstated inventory due to change from FIFO to Average cost method.
Explanation:
The debit entry to the Retained Earnings Account will reduce the balance by $8.2 million. The effect of overstating the closing inventory is overstatement of the net income because the cost of sales was understated as a result of the inventory overstatement.
The credit entry to the Opening Inventory reduces the balance to the new balance based on the average cost method of $23.8 million.
The FIFO cost method or First-In, First-Out method is an inventory costing method that assumes that goods that were bought first were the ones to be sold first. The inventory cost is therefore valued with the most recent quantity and cost price.
On the other hand, the Average Cost Method, also called the Weighted Average Cost Method, calculates the inventory cost by adding all the period's inventory and dividing it by the quantity for the period. This gives an average cost which is in turn used to multiply the quantity of inventory at the end of the period to obtain the inventory cost.
Both methods are estimates that produce different results and affect the reported net income differently. There is always the need for consistency in choosing the method to apply so that reported net income is not unduly distorted.
Answer:
Payment history, the number and type of credit accounts, your used vs. available credit and the length of your credit history are factors frequently used to calculate credit scores.
Explanation:
