Answer:
$230,000
Explanation:
The calculation of treasury stock account balance is shown below:-
Treasury stock account balance on December 31, 2021 balance sheet = Number of shares in treasury stock × Cost per share
= (46,000 - 23,000) × ($460,000 ÷ 46,000)
= 23,000 × $10
= $230,000
Therefore for computing the treasury stock account balance we simply applied the above formula.
Answer:
Product costs are.
Explanation:
Often the information needed by internal managers stands in sharp contrast to external reporting requirements promulgated by Generally Accepted Accounting Principles (GAAP).
GAAP requires full costing and management decision making requires incremental information.
According to GAAP, all manufacturing costs must be treated as product costs, and all selling and administrative costs must be treated as period costs.
Material cost + labor costs incurred directly in producing the product + other production or indirect production overhead costs.
If the products are in inventory, the costs are recorded as assets. If they have been sell, the are recorded as costs of goods sold.
Answer:
(a) 1.11
(b) 0.96
(c) 0.51
(d) Apple has more liquidity than HPQ.
Explanation:
(a) Current Ratio
:
Current ratio is a liquidity ratio, which measures the firm’s ability to pay off its short-term obligations.
Current Ratio = Current Assets ÷ Current Liabilities
Apple’s current ratio:
= $89.75 ÷ $80.59
= 1.11
(b) Quick Ratio
:
Quick ratio is more stringent measure of liquidity. It does not include inventory and other assets that are not liquid.
Quick ratio = (cash + marketable securities + receivables) ÷ current liabilities
Apple’s quick ratio:
= ($41.39 + $35.97) ÷ $80.59
= 0.96
(c) Cash ratio
Cash ratio is a conservative liquidity measure.
Cash ratio = (cash+ marketable securities) ÷ current liabilities
Apple’s cash ratio:
= $41.39 ÷ $80.59
= 0.51
(d) Apple has more liquidity than HPQ.
Though the current ratio of both the companies is the same, Apple has a higher quick ratio and cash ratio.
The reason is because HPQ has a high amount of inventory. Apple is more equipped to meet its short-term obligations.
Answer:
D
Explanation:
Workers will pay for their employer-provided health insurance in the form of lower wages.
Answer: The correct answer is e) $32.
Explanation:
Petty cash fund. $300
Office supplies. (80)
Merchandise inventory. (160)
Miscellaneous expenses. (20)
Cash shortage. (8)
Balance in petty cash. $32
In terms of accounting entries,
Debit Office supplies. $80
Debit Merchandise inventory. $160
Debit Miscellaneous expenses. $20
Debit Cash shortage. $8
Credit Petty cash refund. $268
In the above entries, $268 would be refunded to petty cash fund to reinstate it to $300.