Answer:
For $2,000 to be withdrawn from the margin account, the oil futures price must be $62.
Explanation:
a) Data and Calculations:
Price of the long futures contract to buy 4,000 barrels of oil = $62.50 per barrel
Initial margin = $62.50 * 4,000
b) If the futures price is fixed at $62 per barrel and the initial margin per barrel already opened with a broker is $62.50, then the security investor can withdraw $2,000 ($0.50 * 4,000) from the margin account. This will result in an excess of $0.50 per barrel. Computationally, $0.50 * 4,000 = $2,000.
Answer:
A, B, C
Explanation:
Plant assets should be recorded at cost, including all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. This would include Taxes, Insurance in transit and Shipping charges.
Answer:
Please see explanation below
Explanation:
Interest revenue to be recorded on March 10 .
Interest rate = 2% per month
Unpaid balance as of February 12 = $900
Interest revenue = $900 x 2% = $18
The journal entry to be prepared on March 10 :
Date Account Titles and Explanation Debit Credit
Mar. 10 Accounts Receivable $18(Debit)
Interest Revenue $18(Credit)
Answer:
A.The unit product cost of Product G8 under traditional costing is greater than its unit product cost under activity-based costing by $171.48.
Explanation:
In the given problem, the unit cost if we consider the traditional method of costing is estimated as $752.14. Furthermore, the unit cost if we consider the activity-based method of costing is approximately $580.58. Therefore, we we subtract the two values from each other, we have:
$752.14 - $580.68 = $171.46
This is close to the value in option A.
Answer:
assets, liabilities, common stock, retained earnings, dividends, revenues, and expenses
Explanation:
General Ledger accounts are prepared to sort and summarize various accounts.
The order followed while presenting general ledger accounts has balance sheet items i.e assets and liabilities presented first followed with income statement items.
Assets and liabilities come first. Assets refer to items of value or something that yields future benefits. Liabilities refer to obligations which are owed and need to be discharged in future.
Retained earnings refer to retained profits which are pumped back into the business.
Revenues and expenses are costs or incomes arising out of routine business activities.