Answer: $1500 loss
Explanation:
From the question, On December 2, 20X1, Levi sold confectionary items to a foreign company by selling at a price of 50,000 yen when direct exchange rate was 1 yen = $1.15.
Sale value in dollar = 50,000 × 1.15
= $57500
The account has not been settled as of the year ended December 31, 20X1, when exchange rate had changed to 1 yen = $1.12.
Sale value in dollar = 50,000 × 1.12
= $56000
Foreign exchange loss:
= $57500 - $56000
= $1500 loss
Answer:
The correct answer is letter "B": A change in the price of oil.
Explanation:
The supply curve for any good or service responds in front of changes in price. According to the supply law, if the price of a good or service increases so will the quantity supplied moving the supply law to the right. If the price of the good decreases so will the quantity supplied moving the supply curve to the left. The price-quantity supplied relationship is directly proportional.
Answer:
Debit Interest Expense $440.64, Debit Premium on Bonds Payable $159.36 and Credit Cash $600
Explanation:
Amount paid in cash = $10,000 * 6% = $600
Interest expense = $11,016 * 4% = $440.64
Amortization of premium on bonds payable = Amount paid in cash - Interest expense
Amortization of premium on bonds payable = $600 - $440.64
Amortization of premium on bonds payable = $159.36.
Debit Interest Expense $440.64
Debit Premium on Bonds Payable $159.36
Credit Cash $600
