Answer:
supplies 770* debit
office equipment 1,820 debit
cash 460 credit
accounts payable 2,130 credit
-- to transfer subsidiary purchase book into journal --
Explanation:
we will do a single entry for the whole purchases of the month.
we add the supplies purchases:
*supplies purchases:
Apr 4 460
Apr 16 120
Apr 19 <u> 190 </u>
770
We calcualte the accoutn payable balance:
account payable:
770 supplies purhcase + 1,820 equipment purchase - 460 payment = 2,130
then cash used for 460
and equipment purchase for 1,820
the purchases assets goes into debit side
while the account payable and the cash used on credit
Answer:
amount is $50,000
Explanation:
given data
machine cost = $130,000
accumulated depreciation = $85,000
sold cash = $50,000
to find out
amount that should be reported as a source of cash under cash flows
solution
we know as cash from investing activities is that
cash by sale of Equipment is = sold cash i.e $50000
so we can say that The amount that should be report as a source of the cash under cash flow by investing activities is here $50,000
The cash payback period for the asset is 3 years.
Payback period = Cost of Investment ÷ annual cash inflow
=174,000 / 58,000
= 3 years
What is cost of investment in accounting?
Certain investments are recorded using the cost method of accounting in a company's financial statements. When an investor holds an investment that it has little or no control over—typically described as owning less than 20% of the company—they employ this strategy.
What is yearly cash flow?
Cash circulation in and out of a business over a fiscal year is referred to as "annual cash flow" in finance.
How do you calculate annual cash flow?
To calculate your yearly cash flow, subtract your total cash inflows from your total cash outflows. If the result is positive, it indicates positive cash flow; if it is negative, it indicates negative cash flow. Using the same example, take $175,000 out and subtract $139,000 to generate $36,000 in positive annual cash flow.
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Answer: 1. Goodwill
2. a. Record no entry in the books
b. Record a loss in the books
Explanation:
1. The Special asset created by Heartland Telecom's acquisition of Surety Wireless is Goodwill.
Goodwill is the difference between what the company was worth and what it was purchased for if the purchase price was higher than the worth (market value).
2. a. Goodwill should be accounted for by recoding it in the Long term Assets under Intangible Assets in the balance sheet. It should not be amotrized. If Goodwill increases, there should be no recording this <u>gain</u> on the books.
b. If the value of the asset has decreased, Heartland should record a loss in the books to represent the loss on this account.
Answer:
Yes $30 agsinst $19.50
The variable cost for the first 50 untis is $17.50
Yes $30 against $27.25
average variable cost for the first 100 units $26.25
Marginal cost for the first 50 units: 17.50 which is lower than marginal revenue
from 51 units and subsequent untis: 35 which is higher than marginal revenue
It will produce 50 units achieving $525 of profit
Explanation:
$100 fixed cost /50 units + 17.50 = 19.50 average cost
selling price: $30
100 fixed cost + 17.50 x 50 + 35 x 50 = 2725
total cost 2,725 / 100 units = 27.25 unit average cost
selling price $30
($17.50 x 50 + $35 x 50)/100 = 26.25
After the 50untis our profit will decrease as the marginal revenue is lower than marginal cost thus, we stuop production at the 50 units:
50 x 30 - 100 fixed cost - 17.50 x 50 variable cost = 525 profit
