Answer:
It would be a differential loss of 174,500
Explanation:
Continue Or discontinued
Continued Discontinued Differential
Sales 930,000 - (930,000)
Variable (413,500) - 413,500
Tracable Fixed Cost (342,000) - 342,000
Allocate cost (536,500) (536,500) -
Result (362,000) (536,500) (174,500)
If discountinued, sales, variable cost and tracable fixed cost are zero
Tracable cost
215,500 + 126,500
Allocate cost
total fixed cost - tracable cost
(525,500 + 353,000) - 342,000
Once we got the numbers we calculate the diffferential income/loss
b. The company paid $6,000 cash in advance for prepaid insurance coverage.
c. The company purchased $800 of supplies on account.
d. The company paid $600 cash for selling expenses.
e. The company received $6,000 cash for services provided.
f. The company paid $800 cash toward accounts payable.
g. The company paid $4,000 cash for equipment.
Here are the general journal entries for each of the transactions:
a. D. Belle invested in the business with cash, equipment, and web servers in exchange for common stock:
b. The company paid in advance for insurance coverage:
c. The company purchased supplies on account:
d. The company paid cash for selling expenses:
e. The company received cash for services provided:
f. The company paid cash to settle accounts payable:
g. The company paid cash to acquire equipment:
Journal entries are the chronological recordings of financial transactions in a company's accounting system. They serve as a detailed record, documenting each transaction's effects on various accounts, such as assets, liabilities, revenues, and expenses.
Journal entries provide a clear audit trail, helping track the flow of money and enabling the creation of financial statements.
They act as the foundation for accurate financial reporting, facilitating transparency, analysis, and decision-making within an organization.
Learn more about journal entries here:
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This question is about preparing general journal entries for various transactions in Belle Co.'s business. The company engages in activities such as investing cash and equipment, purchasing supplies on account, and receiving cash for services provided. The journal entries for each transaction are provided in the response.
Journal Entry a:
Debit: Cash ($5,900) + Equipment ($6,900) + Web servers ($12,900)
Credit: Common stock ($25,700)
Journal Entry b:
Debit: Prepaid Insurance ($6,000)
Credit: Cash ($6,000)
Journal Entry c:
Debit: Supplies ($800)
Credit: Accounts payable ($800)
Journal Entry d:
Debit: Selling expenses ($600)
Credit: Cash ($600)
Journal Entry e:
Debit: Cash ($6,000)
Credit: Service revenue ($6,000)
Journal Entry f:
Debit: Accounts payable ($800)
Credit: Cash ($800)
Journal Entry g:
Debit: Equipment ($4,000)
Credit: Cash ($4,000)
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Answer:
True.
Explanation:
The cable company will not have any incentive to cut costs. This is because it knows that its costs will be averaged to determine the average cost to which a certain percentage is then added to arrive at the selling price. Having the cost averaged in this way will not motivate the cable company to seek cost minimization strategies that it could use to increase its income.
The statement is false. Under the average-cost pricing policy, the cable company has the incentive to cut costs to potentially lower prices and increase market share.
False, under the average-cost pricing policy, the cable company does have incentives to cut costs. The average-cost pricing policy allows the firm to set the price equal to the average cost of production. If the cable company can lower its cost of production, it will be able to lower the price it charges, which could potentially increase its market share and profits. Consider an example where economies of scale come into play: if each firm produced at a higher average cost due to building their own power lines, they would raise prices to cover this cost. However, if a firm found a way to reduce the cost of power lines or production in general, they could lower their prices in comparison to other firms. This demonstrates the incentive for cost-cutting under average-cost pricing.
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Answer:
Account Details Debit Credit
Notes Payable $1,100,000
Cash $30,500
Land 250,000
Building 750,000
Supplies (Food) 2,500
Accounts Receivable 95,000
Service Revenue 95,000
Salaries Expense 45,000
Supplies (Food) Exp. 5,000
G 17,000
Totals $1,195,000 $1,195,000
Explanation:
a) Notes Payable
Account Details Debit Credit
Cash $1,100,000
a) Cash Account
Account Details Debit Credit
Notes Payable $1,100,000
Land (b) $250,000
Building (c) 750,000
Salaries (f) 45,000
Supplies (Food) (g) 7,500
G (i) 17,000
Balance c/d $30,500
b) Land
Account Details Debit Credit
Cash $250,000
c) Building
Account Details Debit Credit
Cash $750,000
d) Supplies (Food)
Account Details Debit Credit
Accounts Payable $7,500
Supplies (Food) Expense (h) $5,000
Balance c/d $2,500
Accounts Payable
Account Details Debit Credit
Supplies (d) $7,500
Cash (g) $7,500
e) Accounts Receivable
Account Details Debit Credit
Service Revenue $95,000
Service Revenue
Account Details Debit Credit
Accounts Receivable (e) $95,000
f) Salaries Expense
Account Details Debit Credit
Cash $45,000
h) Supplies (Food) Expense
Account Details Debit Credit
Supplies (Food) $5,000
i) G
Account Details Debit Credit
Cash $17,000
Accumulated depreciation—equipment 46,700
Cash 11,000
Equipment $173500
Inventory 64,500
Supplies 5,000
Requried:
Prepare the assets section of Oriole's balance sheet.
Answer:
Assets side of the Balance Sheet:
Assets:
Current Assets:
Cash $11,000
Accounts Receivable 16,000
Supplies 5,000
Inventory 64,500 $96,500
Non-current assets:
Equipment $173,500
less acc. depreciation 47,700 $125,800
Total Assets $222,300
Explanation:
The assets side of the balance sheet is usually prepared in the order of liquidity, starting with the most liquid assets, Cash in the Current Assets subsection, or working capital for running the operations of the business. It ends with the most illiquid assets called non-current assets, which form the core resources of the entity in generating revenue. The accumulated depreciation is subtracted from the non-current assets to obtain the net non-current or fixed assets value.
The prize is really worth $1,006,512.21.
Present value is the sum of cash flows discounted at the rate of interest or the discount rate. The annual cash flows for the next 10 years = $1.5 million / 10 = 150,000
The present value can be determined using a financial calculator
Cash flow from year 1 to 10 = $150,000
Discount rate = 8%
Present value = $1,006,512.21
Here is the complete question: You win a lottery with a prize of $1.5 million. Unfortunately the prize is paid in 10 an¬nual installments. The first payment is next year. How much is the prize really worth? The discount rate is 8 percent.
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b. only Pete
c. both Noah and Pete
d. neither Noah nor Pete