Question 3 of 10

BPS reported the following data for its first year of operations: Sales Revenue $8,000 Cost of Goods Available for Sale 6,200 Op

Fittoniya [83]

Answer:

D. $952

Explanation:

The computation of the net income in the case when the LIFO is elected

Particulars AMount

Net sales $7,232 ($8,000 - $640 - $128)

less : cost of goods sold ($6,200 - $820) $5,380

Gross Profit $1,852

Less: Operating Expenses $900

Income before taxes $952

less: Income tax $0

Net income $952

Hence, the net income is $952

5 0

3 years ago

Determine the maturity date and compute interest for each note. (Use 360 days a year. Do not round intermediate calculations.) N

Margaret [11]

Answer:

Note Contract Date Principal Interest Rate Period of Note (Term)

1 March 7 $12,000 5 % 60 days

2. May 21 $18,000 7% 90 days

3. October 26 $ 14,000 4% 45 days

1. Maturity date = 6 May

Interest expenses = $12,000*5%*60/360

Interest expenses = $100

2. Maturity date = 19 August

Interest expenses = $18,000*7%*90/360

Interest expenses = $315

3. Maturity date = 10 December

Interest expenses = $14,000*4%*45/360

Interest expenses = $70

7 0

2 years ago

What's the accounting recording process for transactions? Group of answer choices

Zigmanuir [339]

Answer:

3. The transaction Analyze the transaction, enter transaction in a journal, transfer journal information to ledger accounts.

Explanation:

According to accounting recording process for transactions the sequence is as follows:

1. Prepare Transaction

2. Analyze the the transaction

3. Enter the transaction in the journal

4.Transfer it to ledger accounts

5. Prepare trial balance

6. Prepare financial statements

So the option 3 is correct.

8 0

3 years ago

Which of the following indicates the financial position of a practice at a point in time and shows its assets and liabilities? A

adell [148]

Answer:

The correct answer would be C, Balance Sheet.

Explanation:

A balance sheet is a document, which contains information about the Assets, Liabilities and owner's Equity of a firm, company or an organization. There is a predetermined format to write a Balance Sheet. There are two sides in this statement. One side contains Assets and Liabilities of the Company, whereas the other side contains the Owner's Equity in a particular point of time. This statement summarizes the financial balances of an individual organization. There are other financial statements of the company as well like Income Statement, cash flow statement, etc, but Balance Sheet is considered most appropriate to have a look at the assets, liabilities and equity of the company at a specific point of time.

8 0

3 years ago

On July 1, 2021, Tremen Corporation acquired 25% of the shares of Delany Company. Tremen paid $3,090,000 for the investment, and

ankoles [38]

Answer:

The tremen's investment in Delany company is $3,162,500

Explanation:

Tremen's investment in Delany Company account would be as follows at year ended 31st December 2021

Initial investment value $3,090,000

Delany's net income $1,300,000

Dividends paid(4*$180,000) ($720,000)

Profits after dividends $580,000

Tremen's share 25%*$580,000*6/12 $72,500

year end balance of Tremen's investment $3,162,500

First of all, the total dividends is taken away from net income and a portion of the net income after dividend payment is added to Tremen's investment which reflects its percentage shareholding and the duration of investment of six months

8 0

3 years ago