Answer:
$2,252,000
Explanation:
Calculation to determine what amount should Sunland report as Cost of Goods Sold in the 2021 income statement
Using this formula
2021 income statement Cost of Goods Sold =Cost of Goods Sold account+(2021 LIFO Reserve account ending balance-2020 LIFO Reserve account ending balance)
Let Plug in the formula
2021 income statement Cost of Goods Sold =$2110000+($419000-$277000)
2021 income statement Cost of Goods Sold =$2110000+$142,000
2021 income statement Cost of Goods Sold =$2,252,000
Therefore The amount that Sunland should report as Cost of Goods Sold in the 2021 income statement is $2,252,000
Answer:
Explanation:
The adjusting entries are shown below:
1. Inventory A/c Dr $386,100
To Accounts payable $386,100
(Being the purchase of inventory is made on credit and discount basis)
2. Accounts payable $386,100
To Cash A/c $386,100
(Being the amount is paid for cash)
The computation of inventory after applying the discount is shown below:
= Number of units purchased × price of each satellite uplink system × (100 - discount rate)
= 15 units × $26,000 × (100 - 1%)
= $386,100
VTC's purchase total was $390,000. They received a discount of $3,900 and paid a net amount of $386,100 on January 6, 2022. The inventory and payable accounts were debited and credited respectively on the purchase date, followed by clearing the payable account and crediting the cash account on the payment date.
The first step is to calculate the purchase cost of the satellites. The purchase total is 15 units at $26,000 each, which equals $390,000.
Next, compute the discount amount. The terms 1/10, and n/30 mean that if VTC pays the invoice within 10 days, they receive a 1% discount. Therefore, calculate 1% of $390,000 which is $3,900.
On January 6, 2022, VTC paid the net-of-discount amount. So, subtract the discount from the total to find out how much was paid. That means $390,000 - $3,900 = $386,100.
Now, let's prepare the necessary journal entries. On the purchase date, December 28, 2021:
On the payment date, January 6, 2022:
In this scenario, there's no need for an entry to account for Purchase Discounts as the amounts were already accounted for under the net method.
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Answer:
Audit is an independent examination of records,financial statements or process in order to give report to the party that has commissioned the audit
Explanation:
Audit can be of the three types highlighted in the question.
Audit of financial statements involves an external auditor examining the financial statements of clients i.e the income statement,statement of financial position.the cash flow statement as well statement of changes in equity e.t.c with a view to expressing an opinion on whether the financial statements show a true and fair view of the performance of the organisation audited and sometimes whether they were prepared in line with generally accepted accounting standards such as US GAAP.
Compliance audit is simply to find out whether the person audited has conformed with certain laid down policies and procedures such as the policies to follow in granting credit facilities to bank customers.
Process audit is about examining a process to see if the steps taken by the person carrying the tasks are logical and to find out areas for improvement in order to cut down time and resources used.
At the time the mortgage is obtained, approximately $850,000 of the $900,000 would be classified as a long-term liability.
In the first year, the company pays $20,000 of the principal. In the second year, it pays $30,000 of the principal. This means that by the end of the second year, the company has paid a total of $20,000 + $30,000 = $50,000 of the principal.
Now, the remaining principal balance is $900,000 - $50,000 = $850,000.
Since the company will pay the remainder of the principal evenly over the final 28 years, you can calculate the annual principal payment for the remaining term:
$850,000 / 28 years = $30,357.14 per year (rounded to the nearest cent).
At the time the mortgage payable is obtained, the long-term liability portion of the mortgage is the total principal amount to be paid after the first two years. Therefore, it is:
$20,000 (Year 1 principal payment) + $30,000 (Year 2 principal payment) + ($30,357.14 x 28) ≈ $850,000.
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The amount of the $900,000 mortgage payable classified as a long-term liability is $870,000.
To determine the amount of the $900,000 mortgage payable that would be classified as a long-term liability at the time the mortgage is obtained, we need to calculate the portion of the principal that will be paid over the first year, second year, and the remaining 28 years.
Therefore, the amount of the $900,000 mortgage payable that would be classified as a long-term liability at the time of obtaining the mortgage is the sum of the principal payments in the first year and the remaining principal payment over the final 28 years: $20,000 + $850,000 = $870,000.
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B. a reduction of expenditures.
C.another financing source.
D. matured interest payments.
Answer: C. Another Financing source
Explanation:
The fund was received for the purpose of debt service. Debt service means repayment of loans. The funds were utilized for debt servicing. Hence, the amount should be reported as another financing source.
The objective of the funds was to repay loans and the amount was received for repayment. This amount was used to finance their debt service. So it was a financing source for the company.
Answer:
beginning inventory = 3,200 units
units produced during the year = 23,000
units sold during the year = 21,000
ending inventory = 23,000 + 3,200 - 21,000 = 5,200 units
variable costs per unit:
fixed costs:
A) Variable costing calculates COGS using only variable costs since fixed costs are considered period costs and are not carried over.
carrying value of initial inventory:
carrying value of ending inventory:
using variable costing = $415 x 5,200 units = $2,158,000
using absorption costing = ($415 + $75.87) x 5,200 = $2,552,524
B) net profit using variable costing:
total revenue = 21,000 x $620 = $13,020,000
- COGS = 21,000 x $415 = $8,715,000
gross contribution margin = $4,305,000
- total fixed costs = $1,745,000
net income = $2,560,000
C) net profit using absorption costing:
first we need to determine COGS = carrying value beginning inventory + (17,800 x variable manufacturing costs per unit) + (17,800 x fixed manufacturing costs per unit) = $1,570,784 + (17,800 x $355) + (17,800 x $10.6522) = $1,570,784 + $6,319,000 + $189,609 = $8,079,393
total revenue = $13,020,000
- COGS = $8,079,393
gross margin = $4,940,607
- variable SG&A = 17,800 x $60 = $1,068,000
- fixed SG&A = 17,800 x ($1,500,000 / 23,000) = $1,160,870
net income = $2,711,737
Answer:
A = $3136.51875
Explanation:
Given that :
The principal = $3,000.00
Rate = 9%
Time = 6 months
Since the amount is compounded quarterly;
r = 9/4 = 2.25 %
t = 6 months = 2 quarter
Using the formula:
A = P(1+r/100)^t
A = 3000.00(1+ 2.25/100)^2
A = 3000.00( 1+ 0.0225)^2
A = 3000.00 (1.0225)^2
A = 3000.00 (1.04550625)
A = $3136.51875