What amount of shel payable to mussel for intraentity sales

Assignment Help Financial Accounting
Reference no: EM132512010

Selected information from the separate and consolidated balance sheets and income statements of Mussel, Inc., and its subsidiary, Shel Co., as of December 31, Year 4, and for the year then ended, is presented below.

Additional information:

During Year 4, Mussel sold goods to Shel at the same markup on cost that Mussel uses for all sales.

                                        Mussel                                  Shel                      Consolidated

Balance sheet accounts

Accounts receivable           $ 52,000                         $ 38,000                    $ 78,000

Inventory                          60,000                             50,000                     104,000

Income statement accounts

Revenues                         $400,000                            $280,000                      $616,000

Cost of goods sold               300,000                              220,000                       462,000

Gross profit                      $100,000                              $ 60,000                          $154,000

Question 1: At December 31, Year 4, what was the amount of Shel's payable to Mussel for intraentity sales?

Option 1: $12,000

Option 2: $58,000

Option 3: $64,000

Option 4: $6,000

Reference no: EM132512010

Questions Cloud

Residents of the opportunity cost of an hour of time : The table below gives the distribution among residents of the opportunity cost of an hour of time.
Find what will the cash flows for the project be : Find What will the cash flows for the project be. The original cost of the old oven was $41,000; it now five years old, and it current market value of $18,000.
Unit 05 Global Talent Management Assignment : Unit 05 Global Talent Management Assignment - The Role of Global Talent Management in achieving organisational goals and objectives
Human resource management : Discuss how globalization has changed jobs in an organization where you have worked. What are some HR responses to those changes?
What amount of shel payable to mussel for intraentity sales : At December 31, Year 4, what was the amount of Shel's payable to Mussel for intraentity sales? During Year 4, Mussel sold goods to Shel at same markup on cost.
Select a macro economic indicator and at least two micro : Select a macro economic indicator and at least two micro, which may result in business opportunities in the coming days. Explain, two pages.
Explain the developmental gap : How does the position of women in the US compare with the global south or the EU, given what we have learned from the #metoo, the crisis over sexual assault
Consider the use of quantitative experimental : Explain how your research plan might consider the use of a quantitative experimental, quasi-experimental, or non-experimental design.
Determining the concepts of international trade : Recently, the government's economic advisers have favored the establishment of a food tax to increase its taxable income. This can occur since the demand

Reviews

Write a Review

Financial Accounting Questions & Answers

  Evaluate a child for adhd

Evaluate a child for ADHD

  Calculate the borrowing costs which may be capitalized

Calculate the borrowing costs which may be capitalized for each of the assets and consequently the cost of each asset as at 31st December, 2008

  What are the basic elements of financial accounting system

What are the basic elements of a financial accounting system? Do these elements apply to all businesses from a local restaurant to General Motors? Explain

  How can calculate the amount of revenue recognized in april

Magnani Music sells used CDs, How can calculate the amount of revenue recognized in April under the cash basis and accrual basis of accounting?

  Calculate the dollar cost of each of the proposed plans

Calculate the dollar cost of each of the proposed plans for obtaining an initial loan amount of $149,000. which plan do you recommend? Why?

  Calculate depreciation for machine under diminishing-balance

Determine and Calculate depreciation for the machine under Diminishing-balance using double the straight-line rate for 2014 through to 2018.

  What is an Accounting Information System

What is an Accounting Information System (AIS)? What are the four functions associated with payroll activities? What Are the Basic Phases of Accounting

  Determine the required return of each stock

Using the Capital Asset Pricing Model (CAPM), determine the required return of each stock. Which stocks are overvalued or undervalued in the market? Why?

  Effects for variable manufacturing cost variance

Profit performance effects for Variable manufacturing cost variance and Identify the major cause of Markley Division's unfavorable profit performance

  Find the price at which the firm sells the product

Suppose that a firm maximizes its total profits and has a marginal cost (MC) of production of $8 and the price elasticity of demand for the product it sells is (-3). Find the price at which the firm sells the product.

  Describe the tax aspects of each arrangement

Beige Company has approximately $250,000 in net income in 2011 before deducting any compensation or other payment to its sole owner, Janet (who is single). Assume that Janet is in the 35% marginal tax bracket. Describe the tax aspects of each of t..

  Calculate the value of the bond

You own a bond with a par value of $1000 that pays a $100 annual coupon. The bond matures in 15 years. Your required rate of return is 12% p.a. Calculate the value of the bond

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd