Answer:
Dr. Investments in Associates 250,000
Cr. Cash 500,000
Dr. Cash 10,000
Cr. Investments in Associates 10,000
Dr. Investments in Associates 50,000
Cr. Investment revenue 50,000
Explanation:
The equity method is a type of accounting used to incorporate investments. It is used when the investor holds significant influence over the investee but does not exercise full control over it.
An investor is deemed to have significant influence over an investee if it owns between 20% to 50% of the investee’s shares or voting rights.
- Jolley receives dividends of $10,000, which is 25% of $40,000, and records a reduction in their investment account. The reason for this is that they have received money from their investee.
- Jolley records the net income from Tige Co. as an increase to its Investment account.
The definition of commodity is D. Some examples are gold, silver and copper.
Answer:
The correct answer is debit to Bad Debt Expense.
Explanation:
Taking into account the nature of both accounts, the registration of an account receivable is considered an asset taking into account that it is a callable value for the sale of products or services on credit, for which reason it is recorded in the debit to increase the company rights. In the exposed case, where the debt is considered uncollectible after exhausting many resources, the record is to recognize an expense (debit nature), against a credit to the account receivable with the objective of recognizing in the accounting the loss in the expense and the cancellation of the right in the asset.
The question is incomplete. The complete question is :
A manufacturer of mountain bikes has the following marginal cost function:
where q is the quantity of bicycles produced.
When calculating the marginal revenue and marginal profit in this problem, use the approach given for the marginal cost and marginal revenue in the discussions in your textbook.
a) If the fixed cost in producing the bicycles is $2800, find the total cost to produce 30 bicycles?
b) If the bikes are sold for $200 each, what is the profit (or loss) on the first 30 bikes?
Solution :
Given :
a). Fixed cost, FC = $ 2800
Total cost to produce 30 bicycles is :
![$= 2800+700\left[\frac{\ln (0.7q+8)}{0.7}\right]^{30}_0$](https://tex.z-dn.net/?f=%24%3D%202800%2B700%5Cleft%5B%5Cfrac%7B%5Cln%20%280.7q%2B8%29%7D%7B0.7%7D%5Cright%5D%5E%7B30%7D_0%24)
![$=2800+1000[\ln ((0.7 \times 30)+8)- \ln 8 ]$](https://tex.z-dn.net/?f=%24%3D2800%2B1000%5B%5Cln%20%28%280.7%20%5Ctimes%2030%29%2B8%29-%20%5Cln%208%20%5D%24)
![$= 2800 +1000 [\ln 29 - \ln 8]$](https://tex.z-dn.net/?f=%24%3D%202800%20%2B1000%20%5B%5Cln%2029%20-%20%5Cln%208%5D%24)
= 2800 + 1287.85
= $ 4087.85
b). Total selling price = $ (200 x 30)
= $ 6000
Profit = 6000 - 4087.85
= $ 1912.15
