Answer:
$10,400
Explanation:
Given that,
Sales (2,000 units) = $ 40,000
Variable expenses = $24,000
Contribution margin = 16,000
Fixed expenses = 11,200
Net operating income = $ 4,800
If the selling price increases by $4 per unit and the sales volume decreases by 200 units.
Sales:
= Number of units sold × Selling price per unit
= (2,000 - 200) × ($20 + $4)
= 1,800 × $24
= $43,200
Variable expenses:
= $21,600
Contribution margin:
= Sales - Variable cost
= $43,200 - $21,600
= $21,600
Net operating income:
= Contribution margin - Fixed expenses
= $21,600 - $11,200
= $10,400
Answer:
Explanation:
$100,000 debit to the Equipment asset account because you are recording the actual original cost of the equipment (as is required by the Cost Principle of Depreciation). You should also credit the Accumulated Depreciation: Equipment account for $75,000 to show that the equipment has already depreciated for this amount.
The selling price of the car purchased by Evita is $19,000.00 with 25.36% interest per year for 5 years.
The Parent taxpayer is entitled to the earned income credit
<u>Explanation:</u>
The federal income tax credit or income credit in the United States is a refundable tax credit, particularly those with children, for low- to moderate-income working individuals and couples. The EITC benefit amount depends on the income of the recipient and the number of children.
The EITC benefits low to reasonable-income parents but offers very little assistance to workers without eligible children (often referred to as childless workers). Income tax credit (EITC). Workers earn a loan up to a limit of one percent of their income.
Answer:
a. Debit Accounts receivable for $600
Explanation:
As Greasy catering company provided services but had not got the bill from the customer, it increases an asset. According to the revenue recognition principle, revenue has recognized whenever it is provided not when the cash is received. In that case, the journal entry to record the transaction is -
Accounts receivable (Debit) $600
Revenue (Catering) (Credit) $600
Accounts receivable is debit because the company owes the amount from the customers.
