g On November 1, 2020, 5M Corporation entered into a purchase contract (not subject to revision or cancellation) to purchase 750 units of inventory for $50 per unit before January 1, 2021. The company uses the LIFO inventory method. a. If the inventory has a market price of $45 per unit on November 30, 2020, what entry (if any) does 5M Corporation record

Answers

Answer 1

Answer and Explanation:

The journal entry is shown below;

Estimated loss on purchase commitment (750 units ×  ($50 - $45)  $3,750

       To Estimated liability on purchase commitment $3,750

(Being estimated loss is recorded)

Here the estimated loss is debited as it increased the loss and estimated liability is credited as it also increased the liability


Related Questions

Andrew owns a cooperative apartment and would like to verify if he is allowed to install a washer/dryer in his unit. Where should Andrew look to find this information...?

Answers

Answer:

Cooperative house rules

Explanation:

A cooperative house rules can be defined as the set of rules and regulations that are set by mortgage companies to regulate the activities and actions of the house owners.

In this scenario, Andrew owns a cooperative apartment and would like to verify if he is allowed to install a washer/dryer in his unit. Therefore, Andrew should look at the cooperative house rules to find the information pertaining to whether or not, he's permitted (allowed) to install a washer or dryer in his unit.

Copy Center sells laser printers and supplies. Assume Copy Center started the year with containers of ink​ (average cost of ​each, FIFO cost of ​each, LIFO cost of ​each). During the​ year, Copy Center purchased containers of ink at and sold units for each. Copy Center paid operating expenses throughout the​ year, a total of . Ignore income taxes for this exercise. Prepare Copy​ Center's income statement for the current year ended December 31 under the​ average, FIFO, and LIFO inventory costing methods. Include a complete statement heading.

Answers

Answer:

The question is incomplete, so I looked for a similar one:

Copy Center sells laser printers and supplies. Watson Copy Center started the year with 90 containers of ink​ (average cost of $ 8.50 ​each, FIFO cost of $ 8.90 ​each, LIFO cost of $ 7.80​each). During the​ year, Watson Copy Center purchased 720 containers of ink at $ 10.30 and sold 600 units for $ 19.75 each. Watson Copy Center paid operating expenses throughout the​ year, a total of $ 5000. Watson Copy​ Center's income statement-excluding the effects of income tax under each of the​average-cost, FIFO, and LIFO inventory costing methods--is given.

Total sales revenue = 600 x $19.75 = $11,850

COGS under weighted average = {[(90 x $8.50) + (720 x $10.30)] / 810} x 600 = $6,060

COGS under FIFO = (90 x $8.90) + (510 x $10.30) = $6,054

COGS under LIFO = 600 x $10.30 = $6,180

Copy Center

Income Statement for the year 202x

(using weighted average)

Sales revenue             $11,850

COGS                          ($6,060)

Gross profit                  $5,790

Operating expenses  ($5,000)

Net income                     $790

Copy Center

Income Statement for the year 202x

(using FIFO)

Sales revenue             $11,850

COGS                          ($6,054)

Gross profit                  $5,796

Operating expenses  ($5,000)

Net income                     $796

Copy Center

Income Statement for the year 202x

(using LIFO)

Sales revenue             $11,850

COGS                          ($6,180)

Gross profit                  $5,670

Operating expenses  ($5,000)

Net income                     $670

Having _________ information can help you determine your restaurant’s concept and tell you if your business has a chance to succeed to a particular location

Answers

I would say detailed information would help

Clancy is training for a triathlon, a timed race that combines swimming, biking, and running. Consider the following sentence: Clancy has only 20 hours this week that he can devote to training. Each hour he spends swimming is an hour that he can't spend biking or running. Which basic principle of individual choice do these statements best illustrate?

Answers

Answer: People face trade off

Explanation:

The basic principle of individual choice that these statements best illustrate is referred to as trade off.

Trade-off occurs when one has to make a compromise between two particular things such that when one increases one, the other decreases. A gain for a particular thing is a loss for something else.

In late 2008, the Fed purchased $300 billion in long-term Treasury securities and $1.25 trillion in mortgage-backed securities. What was the name given to these types of purchases

Answers

Answer:

Quantitative easing

Explanation:

Quantitative easing is a strategy that is used by governments to ease borrowing rates and encourage economic growth.

This is done by buying up long term securities in the economy thereby increasing money supply.

Cost of money is reduced, that is money can now be borrowed at a cheaper rate.

This is exemplified in this scenario where Fed purchased $300 billion in long-term Treasury securities and $1.25 trillion in mortgage-backed securities.

Consider the supply of avocados. Explain why a change in the price of fertilizer causes a shift in the supply curve for avocados rather than a movement along the supply curve for avocados.

Answers

Answer:

Only a change in the price of a good leads to a movement along the supply curve of the good. Other factors lead to a shift of the demand curve.

So a change in the price of fertilizers, would lead to a shift of the supply curve. If the price of fertilizers reduce, supply of avocados would increase and the supply curve would shift outward. If the price of fertilizers increases, the supply curve would shift inward

If the price of avocados increased, there would be a movement up along the supply curve of avocados. If the price of avocados decreased, there would be a movement down along the supply curve of avocados.

Explanation:

If the balance of the Buildings account was $68800 and $5400 of Accounts Payable were paid in cash, what would be the balance of the total stockholders' equity

Answers

Answer:

the total stockholders' equity will be $63,400

Explanation:

The Balance Sheet uses the Accounting Equation. Accounting Equation is stated as :

                                    Assets = Equity + Liabilities

Also stated differently the Accounting equation will be

                                    Equity = Assets - Liabilities

Where,

Assets = $68,800

Liabilities = $5,400

Therefore,

Equity = $68,800 - $5,400

           = $63,400

Conclusion

The total stockholders' equity will be $63,400

what do you think makes us free​

Answers

Answer:

Refers to the ability of a person to act out of his own free will and self-determination. This means that a person may decide to act or not to act, and these decisions are made out of his own free will. also means that a person may act even if he is not required or called to take action.

Explanation:

Direct materials and direct labor of a company total $8300000. If manufacturing overhead is $4150000, what is direct labor cost

Answers

Answer:

The direct labor cost cannot be ascertained from the information given in the question

Explanation:

Direct materials+Direct labor cost= $8300000

In order to determine the labor cost of the  $8300000, we need a clue as to the percentage of the labor cost in the total of  $8300000 or the portion of  $8300000 that belongs to direct materials.

Since such a hint is missing,we can simply guess, costs  incurred cannot be shared out on a basis that has no relationship with reality,hence, the correct answer is that the direct labor cost cannot be determined based on details provided.

At a total cost of $5,600,000, Herrera Corporation acquired 280,000 shares of Tran Corp. common stock as a long-term investment. Herrera Corporation uses the equity method of accounting for this investment. Tran Corp. has 800,000 shares of common stock outstanding, including the shares acquired by Herrera Corporation. a. Journalize the entries by Herrera Corporation to record the following information:

Answers

Answer:

1.

Date            Account title                                            Debit                Credit

Dec. 31        Investment in Tran Corp.                     $210,000

                    Investment Income                                                      $210,000

Working:

Herrera owns 280,000 out of 800,000 Tran Corp shares so they will recognize:

= 280,000/800,000 * 600,000

= $210,000 of Tran Corp. net income.

2.

Date            Account title                                         Debit                  Credit

Dec. 31        Cash                                                   $140,000

                   Investment in Tran Corp.                                               $140,000

Working

Cash received as dividend = 0.5 * 280,000 share

= $140,000

The basic purpose of bookkeeping is to: Multiple Choice Provide financial information about an economic entity. Develop the types of information best-suited to specific managerial decisions. Record the financial transactions of an economic entity. Determine the taxable income of individuals and business entities.

Answers

Answer:

Record the financial transactions of an economic entity

Explanation:

Bookkeeping is the recording of business transactions in the appropriate books of accounts. So bookkeeping takes raw data and converts it into information by recording it in books of accounts such as the Sales Day Book, General Journal or Purchases Day Book. Thus, the basic purpose of bookkeeping is to record the financial transactions of an economic entity.

Cullumber uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) were $379000 ($583000), purchases during the current year at cost (retail) were $1835000 ($3080000), freight-in on these purchases totaled $118000, sales during the current year totaled $2780000, and net markups (markdowns) were $61000 ($97000). What is the ending inventory value at cost? Hint: Round intermediate calculation to 3 decimal places, e.g. 0.635 and final answer to 0 decimal places.

Answers

Answer:

$544,621

Explanation:

Cost :

Merchandize available for sale

= Beginning inventory + Purchases + Freight in

= $379,000 + $1,835,000 + $118,000

= $2,332,000

Retail:

Merchandize available for sale

= Beginning inventory + Purchases + Markup

= $583,000 + $3,080,000 + $61,000

= $3,724,000

Ending inventory at retail

= Retail total - Mark down - Net sales

= $3,724,000 - $97,000 - $2,780,000

= $847,000

Cost to retail ratio

= $2,332,000 ÷ ( $2,780,000 + $847,000)

= $2,332,000 ÷ $3,627,000

= 64.30%

Since ending inventory at retail = $847,000

And

Cost to retail = 64.30%

Therefore,

Ending inventory at cost = $847,000 × 64.30%

Ending inventory at cost = $544,621

Askin again cuz I rly need help
My business class suuuuckkks :(

Answers

daycare, in-home nurse, cleaning service, drivers Ed

NYC Marketing gave celebrities new, frayed caps with the logo for its sanitation department, which are available for sale online and in city souvenir shops. This is an example of __________________ marketing. Group of answer choices

Answers

Answer: Buzz

Explanation:

Based on the information given in the question, the above marketing is an example of buzz marketing. Buzz marketing is using wore of mouth in such a way that it'll work in ones favour whereby people will eventually start sharing it on their own or start talking about that product.

Since NYC Marketing gave celebrities new, frayed caps with the logo for its sanitation department, this can motivate people to start buying the goods sold by the company.

A group of cotton growers in North Georgia and North Alabama pooled their resources to build a cotton gin and storage area for the ginned cotton. They marketed their cotton to textile mills under one label. This collective ownership organization is a:

Answers

Answer:

D. cooperative

Explanation:

A cooperative is a business type where the business is managed and controlled by its members. Here the people are come together to accomplish their goal via pooling their resources also sharing the risk at the same time.

So as per the given situation since the cotton would be marketed to textile mills under one label

so here collective ownership organization represent the cooperative

hence, the option d is correct

he purpose of this assignment is to identify and research a potential problem that technology could assist in solving. The ultimate goal is to imagine where technology will be in 18-36 months and how it will solve problems. Technology is constantly growing exponentially. As entrepreneurs, you have opportunities to use this technology to solve grand problems within the world that would better the human condition. Write a one to three sentence problem statement highlighting a single key issue and answering the following questions: What is the problem

Answers

Answer: Tackling untimely failure of machines

Explanation:

Industies in the manufacturing sector are faced with challenges resulting from machine failure and unexpected shutdowns and causes high cost and so much time loss. One of the ways technology can be used to solve this issue is by producing equipment that would be able to run for an ample of time and when approaching failure or total breakdown it then indicates or signify to the technician or manufacturer about the problem, this would help in averting loss of time and expenses, but this scenario will desire an alternative should this happen.

Stephanie would like to study abroad for a year before graduating from college. She would like to live in a country that has experienced economic growth for at least five years. She can choose from campus abroad programs in three different countries. What could she use to measure the economic performance of the three countries

Answers

Answer:

Gross Domestic Product.

Explanation:

The Gross Domestic Product is the measure to scale the economy of any country. They are used by the experts or the economist to check how each country is performing in their national productions which boost their economy.

The Gross Domestic Product is the total produce of a country in terms of products as well as services of that country in a particular financial year. It is popularly known as the GDP. It is used to measure the economic performances of any country.

In the  context, Stephanie wishes to study abroad in such a country which has economic growth for the last five years. For this she could see how much is the GDP of that country. More is the GDP, more is the economic growth of the country.

Thus Stephanie uses Gross Domestic Product or GDP to measure the economic performance of the countries.

how does this affect the balance sheet sale of used equipment with book value of 300,000 for 500,000 cas

Answers

Answer:

Cash increases by $500,000

Equipment decreases by $300,000

Profit increases by $200,000

Explanation:

Cash increases by $500,000 because the equipment was exchanged for cash.

The equipment (property,plant and equipment account) decreases by $300,000 because this particular equipment will be removed from PPE account.

Equity increases by $200,000 because there is a profit of $200,000 from the sale.

Cash flows from collections on credit sales are usually reported in the statement of cash flows as part of:

Answers

Answer:

Operating Activity

Explanation:

Multiple options " Investing activities, Noncash activities, This is not reported in the statement of cash flows, Operating activities, Financing activities."

Cash Flows Collected From the Credit Sales are Reported as an operating activity on the Cash flow Statement. Cash flows Statement Reports the Cash inflows and Cash outflows resulted from the operating, Financing and Investing Activities. Cash flow from operating activities are cash flow from the normal business activity of buying and selling goods and services.

2. Suppose you borrow $2,000 at 5% and you are going to make annual payments of $734.42. How long before you pay off the loan

Answers

Answer:

3 years

Explanation:

The computation of the time period is shown below

Present value of annuity = Annuity × [1 - (1 + interest rate)^-time period] ÷ rate

$2,000 = $734.42 × [1 - (1.05)^-n] ÷ 0.05

$2,000 = $14,688.4 × [1-(1.05)^-n]

1-(1.05)^-n = ($2000 ÷ $14,688.4)

(1.05)^-n = 1 - ($2000 ÷ $14,688.4)

( 1 ÷ 1.05)^n = 0.86383813

Now take the log to the both sides

n × log(1 ÷ 1.05) = log0.86383813

n = log0.86383813 ÷ log (1 ÷ 1.05)

= 3 years

50.The only person authorized by the state of California to receive compensation for the sale or transfer of real property is a/an:

Answers

Answer: licensed real estate salesperson.

Explanation:

The only person authorized by the state of California to receive compensation for the sale or transfer of real property is referred to as a licensed real estate salesperson.

The Real Estate Salesperson, simply helps their clients purchase or sell their properties and hence can collect compensation for the service rendered.

It is December​ 31, the end of the​ year, and the controller of Corporation is applying the​ lower-of-cost-or-market (LCM) rule to inventories. Before any​ year-end adjustments, reports the following​ data: Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $425,000 Historical cost of ending inventory, as determined by a physical count. . . . . . . . . . . . . 55,000 determines that the current replacement cost of ending inventory is . Show what should report for ending inventory and for cost of goods sold. Identify the financial statement where each item appears.

Answers

Answer:

Inventory will be reported on the Statement of Financial Position / Balance Sheet at $43,000.

Cost of Goods Sold will be reported on the Income Statement / Statement of Profit and Loss at $455,000

Explanation:

Hie, I have attached the full question as images below

When applying the​ lower-of-cost-or-market (LCM) rule to inventories, inventories are valued at the amount whichever is lower between the Historical Cost of Inventory and the Net Realizable Value of Inventory (Estimated amount after sale).

Where,

Historical Cost of Inventory = $58,000

Net Realizable Value of Inventory = $43,000

Therefore

Inventories will be valued at $43,000 which is lower. The write down of Inventory of $15,000 ($58,000 - $43,000) will increase the Cost of Goods Sold

Thus, the new Cost of Goods Sold will be $455,000 ($440,000 + $15,000)

b. If foreigners spend $7 billion on U.S. exports in a given year and Americans spend $5 billion on imports from abroad in the same year, what is the value of U.S. net exports

Answers

Answer:

$2 billion

Explanation:

Foreigners spend $7 billion on U.S net exports

Americans spend $5 billion on imports

Therefore the value of U.S net exports can be calculated as follows

= $7 billion-$5billion

= $2 billion

Hence the value of U.S net exports is $2 billion

The CFO of US company Tin Man Corp. knows that under IFRS, foreign currency translations starts with identifying the functional currency for parent and the foreign operations, then translating backwards into functional currency and then translating further into presentational currency. Tin Man is listing its stock exchange and presenting its financial statement under IFRS. The CFO forgets the IFRS rules of translations. She is:

Answers

Answer: Not compliance with the IFRS

Explanation:

From the question, we are informed that when Tin Man is listing its stock exchange and presenting its financial statement under IFRS, the CFO forgets the IFRS rules of translations, thus simply means that she is not compliance with the IFRS.

Even though no fraud has been committed, the fact that she didn't follow the IFRS rules with regards to translation shows that she hasn't followed IFRS and therefore didn't comply with the IFRS.

Olsson Corporation received a check from its underwriters for $78 million. This was for the issue of one million of its $5 par stock that the underwriters expect to sell for $78 per share. Which is the correct entry to record the issue of the stock

Answers

Answer:

Dr Cash $78 million

Cr Common stock $5 million

Cr Paid in capital in excess of par $73 million

Explanation:

Preparation of the journal entry to record the issue of the stock

Based on the information given we were told that the a check was received from its underwriters for the amount of $78 million by Olsson Corporation for the issue of one million of its $5 par stock that was expected of the underwriters to sell for $78 per share. Which means that the correct journal entry to record the issue of the stock will be :

Dr Cash $78 million

Cr Common stock $5 million

($1 million*$5 par stock)

Cr Paid in capital in excess of par $73 million

($78 million-$5 million)

Use this information to answer the next question. What is the unemployment rate for this nation? All numbers are in millions: Population of the nation - 125; Size of the labor force - 75; Number of employed workers - 50; Number of unemployed workers - 25

Answers

Answer:

33.33%

Explanation:

Unemployment rate is the proportion of the labour force without a job

Unemployment rate = (number of unemployed workers / total labour force ) x 100

25 /75 x 100 = 33.33%

Before lean approaches could be implemented successfully, many North American companies needed to make which changes

Answers

Answer:

C. Cultural and organizational changes

Explanation:

The many northern american companies required to make the cultural and organization changes prior to the approaches i.e. lean that implemented successfully as if we bring the changes like cultural and organizational one so it would become very challenging task

Therefore as per the given situation the option c is correct

And, the rest of the options are wrong

If the nominal annual interest rate is 9% compounded quarterly, what is the effective annual interest rate

Answers

Answer: 9.3%

Explanation:

You can find the effective annual rate by the formula:

effective rate = (1 + nominal rate/ no. of compounding periods in a year)^no. of compounding periods in a year - 1

= (1 + 9%/4)⁴ - 1

= ‭1.093 - 1

= 9.3%

The flowtime of the last job in a single work center’s schedule is 7 days. What is the makespan of this schedule?

Answers

Answer:

7 days

Explanation:

Makes-pan means the time it takes to complete a schedule. Last job took 7 days to complete and it was a single job, which means its makes-pan was 7 days as well.

Indicate the category of each item in GDP, or whether it is not in GDP. Assume products are made domestically unless indicated otherwise: A gas station installs new pumps. multiple choice 1 Consumption Investment Govt. Purchases Imports or Exports Not in GDP A bakery buys flour. g

Answers

Answer:

It is included in GDP as part of Investment

It is not included in GDP because it is an intermediate good.

Explanation:

Gross domestic product is the total sum of final goods and services produced in an economy within a given period which is usually a year

GDP calculated using the expenditure approach = Consumption spending by households + Investment spending by businesses + Government spending + Net export

Items not included in the calculation off GDP includes:  

1. services not rendered to oneself

2. Activities not reported to the government  

3. illegal activities

4. sale or purchase of used products

5. sale or purchase of intermediate products

Intermediate goods are goods used in the production of other goods. They are not included in GDP. Flour is an intermediate good because it is used in the production of bread and pastries

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