1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GalinKa [24]
3 years ago
6

Kumar Inc. uses a perpetual inventory system. At January 1, 2020, inventory was $214,000,000 at both cost and realizable value.

At December 31, 2020, the inventory was $286,000,000 at cost and $265,000,000 at realizable value. Prepare the necessary December 31 entry under (a) the cost-of-goods-sold method (b) Loss method. g
Business
1 answer:
MAVERICK [17]3 years ago
7 0

Answer:

A. Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

B. Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

Explanation:

A.Preparation of the necessary December 31 entry under the cost-of-goods-sold method

COST-OF-GOODS-SOLD METHOD

Dr Cost of Goods Sold $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

B.Preparation of the necessary December 31 entry under the Loss method

LOSS METHOD

Dr Loss Due to Market Decline of Inventory $21,000,000

Cr Allowance to Reduce Inventory to Market $21,000,000

($286,000,000 - $265,000,000)

You might be interested in
Suppose you know that a company’s stock currently sells for $55 per share and the required return on the stock is 8 percent. Y
inysia [295]

Answer:

Dividend per share $ 2.16

Explanation:

Return = Dividend yield + Capital gains yield = 0.08

Dividend yield = Capital gains yield

Div yield 0.08 / 2 = 0.04

Next year dividend:

share Price x dividend yield

$ 55 x 0.04  =  $2.2

<u>Current dividend:</u>

We remove the grow factor from next year dividend:

2.2 / (1+0.04) = 2,11538

8 0
4 years ago
Read 2 more answers
. If the Fed wishes to conduct expansionary monetary policy, it should (select one) a. Increase required reserve ratio b. Decrea
Elza [17]

If the Fed needs to conduct expansionary monetary policy, it must b) decrease the required reserve ratio.

Expansionary economic coverage works via increasing the cash supply faster than traditional or lowering short-time period interest charges. it's far enacted by way of vital banks and comes about thru open marketplace operations, reserve requirements, and setting interest costs.

The Federal Reserve has 3 expansionary financial policy methods: lowering interest rates, decreasing banks' reserve necessities, and shopping for authorities' securities.

Expansionary monetary policy is genuinely a policy that expands (will increase) the delivery of money, while contractionary economic policy contracts (decreases) the supply of a rustic's forex.

Learn more about expansionary monetary policy here: brainly.com/question/9046840

#SPJ4

3 0
2 years ago
25. XYZ Company leased equipment to West Corporation under a lease agreement that qualifies as a finance lease to West but not a
Sergeu [11.5K]

Answer:

The balance in right-of-use asset after two years using straight-line method is $428,571.

Explanation:

Right-of-use asset is simply the lessee's right to the use of leased asset under the agreed terms. The term came into being as a result of IFRS 16 Leases, which replaced IAS 17.

Using straight-line method, depreciation expense is calculated as (Cost - Residual Value) / No of useful life

The economic life of the asset is what we would use as the useful life and not the lease term since that approximates the useful life of the asset.

Therefore, depreciation = ($600,000 - 0) / 7 years = $85,714 yearly

Accumulated depreciation for 2 years is $85,714 x 2 = $171,429 approximately

Therefore, the balance (net book value) in the right-of-use asset after two years will be $600,000 - $171,429 = $428,571

3 0
3 years ago
Basse Corporation has 7,000 shares of common stock outstanding. It declares a $1 per share cash dividend on November 1 to stockh
Lana71 [14]

Answer:

November 1, declaration of cash dividends

  • Dr Retained Earnings account 7,000
  • Cr Dividends Payable account 7,000

December 31, distribution of cash dividends

  • Dr Dividends Payable account 7,000
  • Cr Cash account 7,000

Explanation:

The cash dividends will decrease the retained earnings account, since retained earnings is an equity account, when it decreases it has to be debited.

Dividends payable account is a liability account created when the company declared the dividends and it is cancelled when the company pays the dividends.

5 0
3 years ago
alachi is a manager at a home goods store. he subscribes to theory x. in managing his employees, he is most likely to
RideAnS [48]

Alachi is a manager at a home goods store. he subscribes to theory x. in managing his employees, he is most likely to assume the average worker prefers to be directed.

<h3>What is Management Style?</h3>

There are many management styles and it depends on the mind mindset off employer or manager, a manager with theory X assumes that the employees does not like to work and there needs to be directed, they can only be motivated with salary. While the manager theory Y assumes that the employees like their job and are responsible for the work they do, they need some guidance but are responsible for the work, they can be motivated with appraisals, appreciations and more rewards.

Alachi as a manager is a theory X manager and assumes that the workers prefers to be directed and therefore he would delegate the task and provide the complete guidance to them.

Learn more about Management style at brainly.com/question/27207232

#SPJ1

7 0
1 year ago
Other questions:
  • Trendown inc. has launched a plan to completely transition from a clothing retailer to a cosmetic brand by the end of the year.
    9·1 answer
  • The December 31, 2018, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.Accounts Debit CreditCash $1
    7·1 answer
  • Omar, an individual in the 37% tax bracket, wants to shift some of his income to a new corporation in order to take advantage of
    15·1 answer
  • People pay monthly subscription fees to get current stock price from financial service companies. This behaviour highlights the
    12·1 answer
  • On January​ 1, 2018, Jordan Company acquired a machine for​ $1,090,000. The estimated useful life of the asset is five years. Re
    8·1 answer
  • Assume an economy where the required reserve ratio is 20 percent. if you withdraw $5,000 from your checking account to go on vac
    9·1 answer
  • In year 1, iris king bought a diamond necklace for her own use at a cost of $10,000. in year 6, when the fair market value was $
    7·1 answer
  • Suppose Larry's Lariats produces lassos in a factory, and uses nine feet of rope to make each lasso. The rope is put into a mach
    10·1 answer
  • Which of the following has the lowest housing prices and the smallest population density
    5·2 answers
  • Why was buying things on credit not common in 1917
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!