Answer:
An adjustment to retained earnings is necessary when when there is a change from LIFO to FIFO.
Calculating the effect on retained earnings:
- In the year 1 company followed LIFO and recorded ending inventory at $177500. Had it followed FIFO it would have recorded at $195000. So there would be increase in income of $17500 (195000 - 177500).
- In year 2 it followed LIFO and recorded opening inventory at $177500 and closing inventory at $355000 and thereby recording Net closing stock of $177500 (355000 - 177500). Had it followed FIFO it would have recorded a net stock of $195000.(390000-195000). So there would be increase in income by of $17500 (195000 - 177500).
So in total of 2 years there would be an increase of $35000 Net income i.e., Retained earnings and increase in stock value of $35000.
The journal entry is:
Inventory A/c Dr $35,000
To Retained earnings A/c $35,000
Explanation:
Answer:
The journal entry is as follows:
Cash A/c Dr. $2,020,000
Discount on bonds payable A/c Dr. $59,216
To Bonds payable $2,000,000
To Paid in capital - stock warrants $79,216
(To record the issuance of the bonds and warrants)
Workings:
Cash:
= 2,000 × $1,000 × 101%
= $2,020,000
Discount on bonds payable:
= 2,000,000 - 2,020,000 × (980 ÷ 1,020)
= $59,216
The principle of reciprocity is being used when emphasizing the free nature of the useful tool in the press release, as this principle generates a reciprocal response to individuals.
<h3 /><h3>What is the principle of reciprocity?</h3>
It corresponds to an approach developed by Cialdini, who states that reciprocity is the first principle of persuasion, as individuals are conditioned to reciprocate favors and concessions to others.
Therefore, by using the principle of reciprocity, emphasizing the free nature of the new app, the company hopes to generate more attention, use and positive response from the target audience as a form of retribution.
Find out more about persuasion here:
brainly.com/question/4692301
Answer:
c. be lower since the price is lower and equilibrium moves down along the supply curve.
Answer:
Estimated as Elastic Demand
Explanation:
Elastic demand is where a change in price causes a significant change in demand, therefore 20 hats to 15 hats can be considered significant and we can conclude that it's elastic demand.
