Currency (paper money plus coins) constitutes about: ___________

ABC Lumber spent $1,000 cutting down a tree. The result was 40 unfinished logs that sell for $20 each and 100 bags of sawdust th

CaHeK987 [17]

Answer: below

Explanation:

- The sawdust should be sold as is without being processed into Presto

Logs.

- The pieces of unfinished lumber should be processed

8 0

3 years ago

What is meant by market in the lower-of-cost-or-market rule?

Pavel [41]

Answer:

Stock is valued at lower of : cost or market price [prudence principle]

Explanation :

Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses.

This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.

7 0

3 years ago

Bond co. is using the target cost approach on a new product. information gathered so far reveals: expected annual sales 400,000

Bezzdna [24]

<span>The target selling price per unit is $0.77, According the accounting books I have search,using this solution: ($168,000 divided by 400,000) + $0.35= $0.77.Target costing is an approach in most company to know a product’s life cycle cost in which it is sufficient to develop specified functionality and quality.</span>

5 0

3 years ago

On January 1, Revis Consulting entered into a contract to complete a cost reduction program for Green Financial over a six-month

Naddika [18.5K]

Answer:

1. Jan 31 Debit Cash $53,600

Credit Accounts receivable $53,600

2. June 30 Debit Cash $80,400

Credit Deferred Revenue $21,440

Credit Bonus Received $5,360

Credit Accounts Receivable $53,600

3. June 30 Debit Penalty Payable $26,800

Debit Cash $53,600

Credit Accounts Receivable $53,600

Credit Deferred Revenue $21,440

Credit Bonus adjustment $5,360

Explanation:

The question required that the month end revenue actually realized under the contract be journalized.

1.$53,600/- is a monthly payment which Revis will be receiving from Green Financial for every month for 6 months. Hence the receipt increases cash/bank balance and these are receivable under the contract. Hence accounts receivable is credited against the actual money received in the first month.

2.If cost saving targets are achieved by Revis, then apart from the monthly payment of $53,600/-, Green Financials has agreed to pay $26,800/- as bonus. Since the question states that Revis estimates that 80% it will reach the target, it would have accounted for the 80% as deferred revenue to be received. Hence 80% of $26,800/- is recorded under deferred revenue. Since now entire $26,800/- is received, the remaining 20% is shown as bonus received.

3.When the targets are not met, the deferred revenue recognized is reversed and penalty is paid. The difference of 20% is shown as bonus adjustment amount. The regular monthly income of $53,600/- is recognized as is.

6 0

3 years ago

Platinum, Inc. is considering two mutually exclusive projects, X and Y. Project X costs $95,000 today and is expected to generat

Aliun [14]

Answer:

EAA = $17,115.23

Explanation:

Please check the attached image for the formula of the equivalent annual annuity

To calculate the EAA, the NPV of project Y has to be determined:

Net present value can be calculated using a financial calculator:

Cash flow in year 0 = $-120,000

Cash flow in year 1 = $64,000

Cash flow in year 2 = $67,000

Cash flow in year 3 = $56,000

Cash flow in year 4 = $45,000

I = 15%

NPV = $48,863.60

EAA = $17,115.23

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

5 0

3 years ago

Currency (paper money plus coins) constitutes about: ____________