First, it is necessary to record the depreciation expenses for January, February, and March: Depreciation expense over the three months is calculated as ($42,000 - $5,000) x 3/60 = $1,850. As of April 1, the journal entries for the depreciation expense for January, February, and March shall reflect Dr Depreciation Expense 1,850 and Cr Accumulated Depreciation 1,850. Consequently, the book value of the truck becomes $12,400 - $1,850 = $10,550. 1) In the scenario where the truck sells for $12,000 on April 1, the entries will be: Dr Cash 12,000, Dr Accumulated Depreciation 31,450, Cr Gain from Sale 1,450, and Cr Truck 42,000. If it instead sells for $9,000, the entries will adjust to: Dr Cash 9,000, Dr Accumulated Depreciation 31,450, Dr Loss from Sale 1,550, and Cr Truck 42,000. 2) Any gain or loss from the truck's sale should be recorded on the income statement under gains or losses from asset sales. 3) If Swann adopts IFRS and there was a revaluation surplus recorded on the truck, upon selling it for $12,000 on April 1, the entries should show: Dr Cash 12,000, Dr Revaluation Surplus 4,000, Dr Loss from Sale 1,450, and Cr Truck 14,550.
Answer:
Explanation:
Initial WIP inventory 74000
Add: Units initiated in May 390000
Subtract: Final inventory 34000
Completed and moved units 430000
1 Equivalent Units
Whole units Materials Conversion
Initial WIP inventory 74000 74000 74000
Units started and finished 356000 356000 356000
Final inventory 34000 23800 10200
Total units accounted for 464000 453800 440200
Materials Conversion
Production equivalent units 453800 440200
2
Cost Information: Total Material Conversion
Initial WIP inventory 142800 98800 44000
Costs incurred during May 755960 513830 242130
Total costs needing accounting 898760 612630 286130
Divided by Equivalent units 453800 440200
Cost per Equivalent unit 2.00 1.35 0.65
Materials Conversion
Cost per Equivalent unit 1.35 0.65
3
Cost Allocation:
Ending Work in process:
Material 32130
Conversion 6630
Total Ending Work in process 38760
4
Cost of completed and transferred units
Material 580500
Conversion 279500
Total costs 860000
5
Costs to be accounted for:
Initial WIP inventory 142800
Current expenses 755960
Overall costs to be accounted for 898760
Costs accounted for include:
Cost of completed and moved units 860000
Cost of ending work in process 38760
Overall accounted costs 898760
Answer:
Valuation account = $80,000
Explanation:
Details provided:
The valuation allowance acts as a reserve for doubtful debts.
Mentioned below:
Total Deferred tax asset = $160,000 × 50% = $80,000
Total benefited Deferred tax asset = $160,000 × 50% = $80,000
Calculating the Valuation account:
Valuation account = Total Deferred tax asset - Total benefited Deferred tax asset
Valuation account = $160,000 - $80,000
Valuation account = $80,000
Response:
Sam could implement several strategies, such as:
introducing loyalty programs, exploring various advertising methods, and possibly relocating his business.
Analysis:
Loyalty programs are prevalent today, allowing businesses to secure ongoing customer loyalty.
Through rewarding repeat customers for their purchases, these programs cultivate a loyal customer base, ensuring consistent buyers and preserving profit margins. In Sam's situation, he could incentivize his loyal customers with rewards, like a complimentary drink or discount vouchers.
Advertising has been a staple for businesses since their inception. Nowadays, there are various marketing avenues available; for instance, Sam could leverage social media to highlight his promotions and services, engage in "word of mouth" marketing with his customers, or even hand out flyers.
Finally, if the other tactics fail, Sam might think about relocating his stand to a location with no immediate competition.
I trust this advice will be helpful to you.
