The following selected transactions are from Wilson Company. Year 1 Dec. 16 Accepted a $19,200, 60-day.

Lay Perfect Pillow Company sells specialty pillows and accessories to customers. Its fiscal year ends on December 31. The follow

Annette [7]

Answer and Explanation:

The preparation of the following statement is

Cash Basis Statement Accrual Basis Statement

Income Statement Income Statement

Revenues Revenues

Cash Sales $500,000 Sales to Customers $750,000

Customer Deposits $70,000

Total $570,000 Total $750,000

Expenses Expenses

Inventory Purchase $90,000 Cost of Sales $485,000

Wages Paid $180,300 Wages expense $184,000

Utilities paid $17,200 Utilities expense $19,130

Total $287,500 Total $688,130

Net Income $282,500 Net Income $61,870

3 0

1 year ago

The price of oil in the United States has been very volatile over the last 50 years, with the real price of oil showing a few d

Snowcat [4.5K]

Answer:

The first dramatic swing happened in the 1970s when there was a sharp rise in the real price of oil caused by the formation of OPEC.

In 1973, the World saw it's first oil spike when members of the Organization of Oil Exporting Countries (OPEC) being mostly Muslims, decided to punish the Western World for their perceived support of the Israelis in the Yom Kippur War. They placed an embargo on the sale of oil to the West and because they controlled 56% of the then World supply, this was enough to force the price of oil up due to the reduction in demand.

The second swing happened in the 2000s when there was a sharp rise in the real price of oil caused by increased demand from emerging economies.

From the early 2000s to 2008, the price of oil kept rising steadily till it reached around $147.30 in July 2008. This rise in prices was due to increased demand from newly industrialized and emerging nations like China that needed the oil to maintain their rapid growth.

The most recent swing happened in 2008 when there was a sharp drop in the real price of oil caused by a large financial crisis.

By December 2008, the price of oil had fallen to $32 and this was down to the global recession that was ravaging the World known as the Great Recession. As the world saw economic output fall, demand for oil decreased sharply thereby forcing the price of oil to fall dramatically.

3 0

2 years ago

Ryker Manufacturing, inc. provided the following information for the year: The inventory account balances as of January 1 are gi

Licemer1 [7]

Answer:

B. $304,060

Explanation:

We know that

Ending balance of finished goods inventory = Beginning balance of finished goods inventory + Cost of Goods manufactured - Cost of Goods Sold

= $304,560 + $290,500 - $291,000

= $304,060

We simply applied the above formula to compute the ending balance of finished goods inventory by considering the beginning balance of finished goods inventory, cost of goods manufacture and cost of goods sold.

8 0

1 year ago

Adams Manufacturing allocates overhead to production on the basis of direct labor costs. At the beginning of the year, Adams est

alexira [117]

Answer:

The overhead application rate is 1.8

Explanation:

In the question both the estimated and actual overhead cost , material and labor cost are provided -

ESTIMATED ACTUAL

Overhead cost $396,000 $418,000

Material cost $410,000 $413,200

Direct cost $220,000 $224,000

Overhead application rate can be calculated by dividing the total budgeted overhead cost by direct labor cost.

= Budgeted overhead cost / direct labor cost

= $396,000 / $220,000

= 1.8

7 0

2 years ago

Geraldine was injured in a car accident, and the insurance company has offered her the choice of $25,000 per year for 15 years,

erma4kov [3.2K]

Answer:

Explanation:

Present value of annuity due = (1+interest rate)*Annuity[1-(1+interest rate)^ -time period]/rate

=(1+0.075)*25000*[1-(1.075)^-15]/0.075

=$25000*9.489153726

=$237,228.84

7 0

2 years ago