Answer:
c. labor and ideas.
Explanation:
The Romer model is a type of economical model that breaks down the world into objects and ideas such as capital, labor
In the Romer model, the inputs to production are labor and ideas.
c. Paid $513 in principal and $91 in interest expense on long-term debt.
d. Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account.
e. Incurred $10,766 in shipping expenses, all on credit. F. Paid $28,241 cash on accounts owed to suppliers. G. Incurred $4,332 in marketing expenses; paid cash. H. Collected $620 in cash from customers paying on account. I. Borrowed $6,359 in cash as long-term debt. J. Used inventory costing $62,752 when sold to customers. K. Paid $177 in income tax recorded as an expense in the prior year.
The subject of this question is Business at a College level. It provides various transactions and asks for clarification. The step-by-step breakdown of each transaction helps understand the scenario and the financial implications.
The subject of this question is Business and it is at a College level. The question provides various transactions and asks for clarification on the subject matter. Below is a step-by-step breakdown of each transaction:
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The question involves interpreting 'business transactions' and their effect on the components of the accounting equation (Assets = Liabilities + Equity). Various business transactions mentioned include issuing stock, purchasing equipment, earning and collecting sales revenue, borrowing and paying long-term debt, and more.
The subject of this question encompasses various business transactions that ultimately affect an entity's financial statements. The transactions in this question fall into categories of equity transactions (issuing stock), asset acquisitions (purchasing equipment), liabilities and equity transactions (borrowing and paying long-term debt), revenue and receivable transactions (earning and collecting sales revenue), expense and payable transactions (incurred shipping and marketing expenses), inventory transactions (using inventory sold to customers) and tax transactions (paying income tax recorded as an expense in the previous year).
Each of these transactions will have a dual effect on the components of the accounting equation (Assets = Liabilities + Equity).
For instance, when the company issued stocks for $6 cash, it increased its cash asset and its equity. When the company purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account, it increased its equipment asset, decreased its cash asset and increased its Accounts Payable liability.
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b. both involve risk
c. both involve an initial outflow of cash
d. both result in long-term loses.
Answer:
Abel Corp is engaged in maximizing profits.
Explanation:
By different reasons (trade barriers, exchange rate fluctuations, a shift in preferences in Britain increasing demand of Global Electric goods type), there is a market opportunity to increase profits per unit sold faster in Britain than France. IF Abel Corp is not bound by a commercial agreement with Global Electric to sell its products only in France, Global Electric cannot make a complaint about selling its products in another market.
Answer:
d. $36
Explanation:
The Contribution margin is the net of selling price and variable cost of a product. It is calculated by deducting the variable cost from the selling price of a product.
Cake Pie Cookies
Current selling price $30 $18 $5
Variable cost $12 $7 $1
Contribution margin $18 $11 $3
Production hours 2 1.5 0.25
Contribution margin/hr. $9 $7.33 $12
Required Contribution margin per hour of cake = $12
Required Contribution margin = $12 x 2 = $24
Required Selling Price = Contribution margin + variable cost = $24 + $12 = $36
Note there is a mistake in the calculation of Contribution margin of Cookies as it is given $3 but after deducting the variable cost from selling price is should be $4 ( $5 - $1 ), I used the given contribution margin for the calculation.
Answer:
See explanation section.
Explanation:
Sage Hill Company
Journal entries
Requirement A.
March 2 Account receivable - Oriole Company debit $891,900
Sales revenue credit $891,900
Note: Assume that the company used gross method under a perpetual inventory system, during the sales, the company did not deduct the discount.
Cost of good sold Debit $527,400
Merchandise inventory Credit $527,400
Note: Under the perpetual inventory system, a seller has to record cost of good sold journal.
Requirement B & C.
B.
March 6 Sales Returns and Allowances Debit $114,400
Account Receivable Credit $114,400
Note: As the company did not calculate the cost of return goods, we did not give the cost of merchandise journal.
C.
March 12 Cash Debit $891,900
Sales Discounts Debit $26,757
Account Receivable Credit $891,900
Note: Calculation: (891,900-(891,900 × 3%) = (891,900 - 26,757) = $865,143.
As the company received the amount with in the discount period, the customer got the discount from the seller.
Answer:
Eric Pense Journal Entries:
a. Dr Cash$23,000
Dr Office Equipment12,000
Cr Pense, Capital$35,000
b. Dr Land $8,000
Dr Building $33,000
Cr Cash$15,000
Cr Notes payable$26,000
c.Dr Supplies 600
Cr Accounts payable$600
d.Dr Automobile$7,000
Cr Capital$7,000
e.Dr Office Equipment$1,100
Cr Accounts payable$1,100
f.Dr Salary $800
Cr Cash$800
g.Dr Cash$2,700
Cr Fees Earned$2,700
h. Dr Utilities Expense$430
Cr Cash$430
i.Dr Account payable$600
Cr Cash$600
J. Dr Office Equipment $4,000
Cr Cash$4,000
k. Dr Accounts receivables$2,400
Cr Fees Earned$2,400
l. Dr Salary$800
Cr Cash$800
m. Dr Cash$1,000
Cr Accounts Receivable$1,000
n.Dr Pense, Withdrawal$1,050
Cr Cash$1,050
Explanation:
To record the transactions using the given account titles, journal entries need to be prepared. Each transaction must be debited and credited to the appropriate accounts based on the nature of the transaction.
In order to record the transactions provided, journal entries need to be prepared using the given account titles. Here is an example of how to record a transaction using these accounts:
Continue the same process for all other transactions, making sure to debit and credit the appropriate accounts based on the nature of the transaction. Use the given account numbers to assign each entry to the correct account.
Overall, journal entries are used to record the financial transactions of a business, showing how money is received or spent and the impact on various accounts.
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