Answer:
B. Should be counted in Guerin’s inventory until the barbershop sells it.
Explanation:
In this case Alex is the consignor and barbershop is the consignee. Consignee is just an agent of consignor. The ownership of inventory with the consignee is stillwith the consignor until sold.
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:
Working capital is calculated by subtracting current liabilities from current assets shown on a company's balance sheet. Current assets include cash, accounts receivable and inventories. Current liabilities include accounts payable, taxes, wages and accrued interest.
Working capital is calculated by subtracting current assets from a company's current liabilities. For example, if a company has current assets of $100,000 and current liabilities of $80,000, its working capital is $20,000.
To calculate the working capital requirement, the following formula can be used: Working Capital (WC) = Current Assets (CA) – Current Assets (CL).
Learn more about working capital here:brainly.com/question/19804046
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Answer:
Forbid combinations in restraint of trade and monopolizing.
Explanation:
The Sherman Antitrust Act of 1890 is mainly aimed at preventing anti competitive agreements and unilateral conduct by a group of businesses aligning with one another. Such alignment results in restraint of trade and monopoly.
This Act enables the Department of Justice to bring charges against violators of antitrust laws and they may face as much as treble damages (three times of the damage caused to other parties).
Artificial raising of price and restriction of supply of products or trade are prohibited under this Act.
Answer:
A) Joint Venture
Explanation:
Based on the scenario being described within the question it can be said that in this context, Cream Bite Inc. is a Joint Venture. This is a business term that refers to an arrangement between two parties in which both combine their resources in order to meet an agreed upon goal in a more efficient manner and in a much smaller time-frame than if they were to do it separately.
