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daser333 [38]
2 years ago
11

The journal entry to issue $ 600 of direct materials and $ 40 of indirect materials to production involves​ debit(s) to the​ ___

_____.
A. WorkminusinminusProcess Inventory account for $ 600 and Finished Goods Inventory account for $ 40
B. Manufacturing Overhead account for $ 640
C. WorkminusinminusProcess Inventory account for $ 640
D. WorkminusinminusProcess Inventory account for $ 600 and Manufacturing Overhead account for$530
Business
1 answer:
Shkiper50 [21]2 years ago
4 0

Answer:

work in process             600 debit

manufacturing overhead 40 debit

         raw material inventory      640 credit

--to record the materials used into production and general production facilities--

Explanation:

There is 600 direct material which are allocated into work in process.

Then the 40 dollars of indirect materials will be assigned int othe actual overhead so the accounting can later adjust for oer or udnerappplied amounts at month-end

Both, makes the raw paterials inventory to decrease as there is less inventory available for future request. Thus it is credited.

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Which two of the four cs of credit have to do with earning potential and available cash?
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The four 'Cs' of credit  are : Character, Capacity or Cashflow, Capital and Conditions.

Out of the 4 'Cs' of credit, the two 'Cs' that deal with the earning potential and available cash are 'Capacity' and 'Capital'.

Capacity: It is the  assessment the of the ability of any business to pay bills and maintain the cash flow. It contains in it  the debt  structure of the firm and the unused credit.

Capital: It is the assessment, if a company has the ability to pay back its creditors by the help of its financial resources or available cash.

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2 years ago
First he was all about innovation. next it was efficiency. now​ snyder's strategy is customer responsiveness. these changes in s
Lorico [155]

These changes in strategy are indicative of internal forces of change. Internal forces of change in business refer to events, people and systems inside a company that aid or prevent it from fulfilling short term as well as long term goals. 

8 0
2 years ago
On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, r
sammy [17]

Answer:

1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1.

Dr Cash 37,282,062

Dr Discount on bonds payable 2,717,938

    Cr Bonds payable 40,000,000

2. Journalize the entries to record the following:

a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. Round to the nearest dollar.

discount on bonds payable = 2,717,938 / 20 coupons = $135,896.90

December 31, Year 1, first coupon payment

Dr Interest expense 1,535,896.90

    Cr Cash 1,400,000

    Cr Discount on bonds payable 135,896.90

b. The interest payment on June 30, Year 2, and the amortization of the bond discount,using the straight-line method. Round to the nearest dollar.

June 30, Year 2, second coupon payment

Dr Interest expense 1,535,896.90

    Cr Cash 1,400,000

    Cr Discount on bonds payable 135,896.90

3. Determine the total interest expense for Year 1.

$1,535,896.90

4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?

yes, if the market rate is higher than the coupon rate, the bonds will sell at a discount.

5. (Appendix 1) Compute the price of $37,282,062 received for the bonds by using the present value tables in Appendix A at the end of the text. Round to the nearest dollar.

bond price = PV of face value + PV of coupon payments

  • PV of face value = $40,000,000 x 0.4564 (PV factor, 4%, 20 periods) = $18,256,000
  • PV of coupon payments = $1,400,000 x 13.590 (PV annuity factor, 4%, 20 periods) = $19,026,000

bond's market price = $18,256,000 + $19,026,000 = $37,282,000

6 0
2 years ago
Flora and Fauna Company estimates its doubtful accounts by aging its accounts receivable and applying percentages to various age
vladimir2022 [97]

Answer:

$6,000

Explanation:

When a company makes sales on account, debit accounts receivable and credit sales. Based on assessment, some or all of the receivables may be uncollectible.  

To account for this, debit bad debit expense and credit allowance for doubtful debt. Should the debt become uncollectible (i.e go bad), debit allowance for doubtful debt and credit accounts receivable.

Since the Allowance for Doubtful Accounts has a credit balance of $1,200 before adjustment at December 31, 2016, the additional amount to be allowed

= $7200 - $1200

= $6000

This will be posted as

Debit Bad debt expense  $6000

Credit Allowance for doubtful debt  $6000

4 0
2 years ago
Project A has a predicted payback period of 2.5 and Project B has a predicted payback period of 5. Based on this information we
anastassius [24]

Answer:

A. more information should be gathered before deciding on which project, if either, is desirable.

Explanation:

The lower Payback Period is not sufficient information to decide which project is more profitable. The payback period indicates when in the life of a project the initial investment principal cash flow is achieved.

But to decide about a certain project it is better to know the interest yield, it is also important to get the life of the project and other information.

For example:

a.- 250 investment 100 per year  payback in 2.5-year life 3 years

b.- 500 investment 100 per year payback in 5-year life 20 years

While A payback occurs before project B is better

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2 years ago
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