Explanation:
The adjusting journal entry to record the given adjustment is shown below:
At the year-end
Insurance expense A/c Dr. A/c $800
To Prepaid Insurance A/c $800
(Being insurance expense is recorded)
The computation is given below:
= Prepayment done for 6 months insurance policy - expired insurance
= $1,200 - $400
= $800
Answer:
$21
Explanation:
As we know that
The inventory should be recorded in the books of accounts by applying the lower value of cost or net realizable value
In the given case
The cost is $23
And, the net realizable value is
= Expected selling price - selling cost
= $36 - $15
= $21
So by comparing the cost and net realizable value, the net realizable value contains the lower value i.e $21 and the same is recorded on the balance sheet for inventory
Answer:
The stock price is $37.16
Explanation:
Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.
Formula to calculate the value of stock
Price = Dividend / ( Rate or return - growth rate )
Price = $3.27 / ( 12.2% - 3.4% )
Price = $3.27 / 12.2% - 3.4%
Price = $3.27 / 8.8%
Price = $37.16
Answer:
The correct answer is letter "A": Shareholder's equity is the residual value of a firm.
Explanation:
Shareholders' equity is a measure of a company's net worth. I can be calculated by subtracting the company's total liabilities from its assets. It is also understood as the <em>funds remaining after all creditors and debts are paid</em> that is why we could say it is the residual value of the firm.
Answer:
Cost of 1 hamburger and 1 shake is $1.89
Explanation:
Assume:
Cost of hamburgers = h
Cost of milkshakes = m
For Jack
2h + 3m = $4.21.......Eq1
For Jill
3h + 2m = $5.24.........Eq2
Eq1 + Eq2
5h + 5m = 9.45
divide by 5
h + m = $1.89
So,
Cost of 1 hamburger and 1 shake is $1.89
