Answer:
The entries to record the transactions are given below.
a. Provide music lessons to students for $7,000 cash.
Debit Cash Asset $ 7000
CreditService Revenue income $ 7000
b. Purchase prepaid insurance to protect musical equipment over the next year for $3,000 cash.
Debit Prepaid Insurance equipment Asset $ 3000
Credit Cash Asset $ 3000
c. Purchase musical equipment for $10,000 cash.
Debit Equipment Asset $ 10,000
Credit Cash Asset $ 10,000
d. Obtain a loan from a bank by signing a note for $10,000
Debit Cash Asset $ 10,000
Credit Notes payable $ 10,000
Answer and Explanation:
The computation is shown below:
= (Original cost - residual value) ÷ (useful life)
= ($52,000 - $8,000) ÷ (4 years)
= ($44000) ÷ (4 years)
= $11,000
In this method, the depreciation is same for all the remaining useful life
a. The depreciation expense for 2019 is $11,000
b. The depreciation expense for 2020 is $11,000
c. The accumulated depreciation for year 2019 is $11,000
d. The accumulated depreciation for year 2020 is $22,000 ($11,000 + $11,000)
e. The book value is
= Original cost - accumulated depreciation
= $52,000 - $22,000
= $30,000
Answer:
lower utility will be experienced on the second pizza
Explanation:
Utility is the satisfaction derived from the consumption of a product or a service. The ability of a product or service to satisfy a particular customer need or want determines its utility value.
The intensity of a need determines the level of utility required. An intense need demands for a product with high utility value. Consumers are willing to spend huge amounts to satisfy such needs. Less intense needs result in reduced utility. Consuming a second pizza will not derive much satisfaction as compared to the first one. The customer's need is not as intense as prior to the first consumption.
Answer:
Total cost Groceries department 4,103,238
Total cost Gif department 366,763
Explanation:
![\left[\begin{array}{ccccc}&Administration&Janitorial&Grocerys&Gifs\\$employee hours&&350&2690&160\\$square feet&&&9200&800\\Direct \: Cost&190000&70000&3860000&350000\\$Allocate A&-190000&20781.25&159718.75&9500\\$Subtotal&&90781.25&4019718.75&359500\\$Allocate J&&-90781.25&83518.75&7262.5\\$Total&&&4103237.5&366762.5\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccccc%7D%26Administration%26Janitorial%26Grocerys%26Gifs%5C%5C%24employee%20hours%26%26350%262690%26160%5C%5C%24square%20feet%26%26%269200%26800%5C%5CDirect%20%5C%3A%20Cost%26190000%2670000%263860000%26350000%5C%5C%24Allocate%20A%26-190000%2620781.25%26159718.75%269500%5C%5C%24Subtotal%26%2690781.25%264019718.75%26359500%5C%5C%24Allocate%20J%26%26-90781.25%2683518.75%267262.5%5C%5C%24Total%26%26%264103237.5%26366762.5%5C%5C%5Cend%7Barray%7D%5Cright%5D)
Adminstration cost will be distributed among Janitorial, Groceries and Gifs
we add up the employee hours:
350 + 2690 +160 = 3200
Then, we cross multuply:
190,000 x 350/3200 = 20781.25
190,000 x 2690/3200 = 159718.75
190,000 x 160/3200 = 9500
we add them to their cost and then do the same for Janitorial.
9200+ 800 = 10,000
90781.25 x 9200/10000 = 83518.75
90781.25 x 800/10000 = 7262.5
giving the total cost of the operating departments.
Answer: True
Explanation:
Safety stock is a particular level of inventory set by the inventory/store manager that the inventory must not go below in order to help the company never to run out of products in their inventory. The aim of safety stock is to ensure that a company's inventory would never be empty and also so that any given point buyers can always purchase products from the company
