Answer: Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions.
Explanation: Managerial accounting is the type of accounting under which the managers use the accounting estimates and make several assumptions to make decisions that can affect future results of business operations.
Under financial accounting recording, summarizing and presentation of data in a financial statement is done. It is used to keep track of the past transactions hence no assumptions are needed to make for important aspects.
Answer: See explanation
Explanation:
The material price variance will be calculated as:
= (Standard price - Actual price) × Actual quantity of material used
= ($2 - $4) × 500
= -$2 × 500
= $-1000
= $1000 Unfavourable
The material quantity variance will be:
= Standard quantity - Actual quantity) × Standard price
=[(450 × 2) -500] × $2.00
= (900 - 500) × $2.00
= 400 × $2.00
= $800 Favorable
Answer:
$6.25 per ton of coal
Explanation:
the depletion base = purchase cost + restoration costs
- purchase cost = $20 million
- restoration costs = $6 million
depletion base = $26,000,000
depletion rate per ton of coal = (depletion base - salvage value) / estimated reserves = ($26,000,000 - $1,000,000) / 4,000,000 = $6.25 per ton of coal
The depletion rate follows the same concepts as depreciation of fixed assets, but instead of using a fixed asset, you are extracting materials and decreasing the value of the deposits.
Answer:
The below additional piece of information is missing from the question:
In its 2018 income statement, what amount of interest expense should Hernandez report from this lease transaction?
The interest expense for 2018 is $150,000
Explanation:
Interest expense for 2018 is the implicit interest 10% multiplied by the difference present value of $1,800,000 minus annual payment of $300,000.
In order to compute the interest expense,the annual payment must be deducted first since the annual payment was made at the start of the year,hence interest is only due on the net amount of $1,500,000($1,800,000-$300,000).
Interest expense=$1,500,000*10%=$150,000
