Answer:
NONE
Explanation:
The treasury stock sales increase additional paid-in capital treasury stock. It do not generate net income the stokc are part of equity transactions. They cannot generate a gain, the differnece in value betwene cost and reissuance of the shares will be adjusted against additional paid-in capital Treasu Stock as state before.
b. raise the quantity demanded of goods and services, but lower the quantity supplied.
c. lower the quantity demanded of goods and services, but raise the quantity supplied.
d. lower both the quantity demanded and the quantity supplied of goods and services.
Answer:
b. raise the quantity demanded of goods and services, but lower the quantity supplied.
Explanation:
The law of demand shows an inverse relationship between price and quantity demanded. It states that if the price of goods and services decreases, the demand will increase. This is because a lower price increasing the purchasing power of buyers. On the other hand, the law of supply states shows that price and quantity supplied will move in the same direction; it states that if the price of goods and services decrease, the quantity supplied will also decrease.
Journal entry on August 15th for Roland industries for payment of the invoice in full:
It is given that Roland industries purchased $2,200 worth of inventory on account on august 6th. Roland industries were granted a $190 purchase allowance for slightly damaged goods. It means the net amount of invoice is (2200-190) = $2,010. We are also given that the terms were 2/15, n/eom. Now the company paid the invoice on 15th August, it means it shall get the discount of 2% and the net amount to be paid shall be = 2010- (2010*2%) = $1,969.80
The Journal entry on August 15th for Roland industries for payment of the invoice in full shall be as follows:
Account Payable Debit $2,200
Inventory Credit $190
Purchase Discount Credit $40.2
Cash Credit $1,969.80
(Being payment made in full and discount received)
Requirements:
a. What accounting action should Aquarium take in this situation?
b. Give any journal entry required.
c. At what amount should Aquarium report Inventory on the balance? sheet?
d. At what amount should the company report Cost of Goods Sold on the income? statement?
e. Discuss the accounting principle or concept that is most relevant to this situation.
Answer:
a. What accounting action should Aquarium take in this situation?
the balance of inventory account should decrease to match the replacement cost.
b. Give any journal entry required.
Dr Cost of goods sold 75,000
Cr Inventory 75,000
c. At what amount should Aquarium report Inventory on the balance? sheet?
Inventory = $200,000 - $75,000 = $125,000
d. At what amount should the company report Cost of Goods Sold on the income statement?
Cost of goods sold = $820,000 + $75,000 = $895,000
e. Discuss the accounting principle or concept that is most relevant to this situation.
US GAAP states that companies must use the lower of cost or market rule, which means that inventory must be recognized at the lowest cost either original purchase cost or market value.
Answer:
the direct material & conversion cost per equivalent unit is $750 per ton and $120 per ton
Explanation:
The calculation of the direct material & conversion cost per equivalent unit is given below:
Direct materials per equivalent unit is
= $3,000,000 ÷ 4,000 tons
= $750 per ton
And,
Conversion costs per equivalent unit is
= $462,600 ÷ 3,855 tons
= $120 per ton
Hence, the direct material & conversion cost per equivalent unit is $750 per ton and $120 per ton
Answer:
Reduces
Raises
Explanation:
Compared to a perfectly competitive firm having the same cost curves, a monopolistically competitive firm reduces output and raises prices.
The topic that explains this is economic efficiency and resource allocation.