Answer:
COGS= $2,129,700
Explanation:
Giving the following information:
Finished goods inventory:
Beginning= $190,000
Ending= $150,000
Cost of goods manufactured= $2,089,700
The cost of goods sold is calculated using the following formula:
COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory
COGS= 190,000 + 2,089,700 - 150,000
COGS= $2,129,700
Answer:
Retained earnings......................Dr $22,000
Dividend expense $22,000
Explanation:
There are two accounts, temporary and permanent accounts. Temporary accounts such as dividends and revenue need to be closed and charged against permanent accounts at the end of reporting period. This is done to estimate the total earnings of the firm during the period.
Dividends are charged to permanent account, retained earnings. Following is the closing entry:
Particulars Debit Credit
Retained earnings $22,000
Dividend expense $22,000
(Dividends expenses closed
by charging to retained earnings)
Answer:
Violation of intellectual property rights is known as infringement. The most common infringements are appropriating someone else's property rights without authorization and using something else's property without paying for it.
For example a patent infringement happens when a company uses someone else's patent for producing their owns products or services, e.g. copy cell phone technologies.
Another common example is copyright infringement that happens when someone downloads a movie, song or software from the internet without paying a fee.
Answer:
The borrower is best off in situation <u>"a"</u> and the lender is best off in situation ▼ "C" .
Explanation:
Considering all the situations given in the options, the <u>borrower</u> is best in situation <u>a</u> and <u>lender</u> is best off in situation in <u>c</u>.
<u>Part a </u>
Real Interest rate = Nominal Interest rate - Inflation rate = 14 - 17 = -3 per cent. Thus, the purchasing power of money has fallen and the person has to pay back money with little purchasing power as compared to the value of the purchasing power at the time he borrowed money. Thus, borrowers are best off.Thus, <u>borrower</u> is best off when the inflation rate is very high.
<u>Part c</u>
Inflation rate is negative, thus the purchasing power of money will increase and lenders will get back money with higher purchasing power as compared to the value of the purchasing power of money at the time he lend the money. Thus, <u>lender </u>is best off when inflation rate is lowest.