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1 year ago

Interest payable, income tax payable and salary payable are all examples of _______.

1 answer:

wel1 year ago

8 0

Those are all examples of liabilities. To be more specific, they are current liabilities. Interest payable, income tax payable, and salary payable are obligations that must be paid of within one operational cycle, thus they are just current liabilities.

Current liabilities are debts that must be paid off within a year or one operational cycle, whichever comes first. They can also be paid off using current assets or generate new current liabilities.

Analysts, accountants, and investors assess a firm's payables to determine how effectively it can fulfill its short-term financial obligations thus, the firm basically needs to generate sufficient profits and money in the immediate term to meet its debt commitments.

Learn how to define liability and differentiate between a current liability and a long-term liability: brainly.com/question/28391469

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Kallie Smith, owner of Flower Hour, operates a local chain of floral shops. Each shop has its own delivery van. Instead of charg

user100 [1]

Answer:

Use the high-low method to determine Flower Hour's cost equation for van operating costs.

total cost = $1,355 + ($0.25 x total miles)

Use your results to predict van operating costs at a volume of 15,000 miles.

total cost (15,000 miles) = $1,355 + ($0.25 x 15,000) = $5,105

Explanation:

Month Miles driven Van Operating Costs

January 15,800 $5,460

February 17,300 $5,680

March 14,600 $4,940

April 16,000 $5,310

May 17,100 $5,830

June 15,400 $5,420

July 14,100 $4,880

high cost - low cost = $5,680 - $4,880 = $800

high cost - low cost = 17,300 - 14,100 = 3,200 miles

variable cost per mile = $800 / 3,200 miles = $0.25 per mile

total variable cost when driving 14,100 miles = 14,100 miles x $0.25 per mile = $3,525

total fixed cost = $4,880 - $3,525 = $1,355

total cost = $1,355 + ($0.25 x total miles)

total cost (15,000 miles) = $1,355 + ($0.25 x 15,000) = $5,105

5 0

3 years ago

a1. Lobo Company purchased equipment for $40,000 with a useful life of five years and no expected salvage value. Prepare the adj

Pavel [41]

Answer:

a1. Dr Depreciation Expense $8,000

Cr Accumulated Depreciation $8,000

a2. $24,000

b2. December 31

Dr Wages Expenses $440

Cr Wages payable $440

Explanation:

a1. Preparation of the adjusting entry for the first year using the straight-line depreciation method.

Dr Depreciation Expense $8,000

Cr Accumulated Depreciation $8,000

($40,000/5 years)

a2. Computation of the book value at the end of the second year of the equipment's life.

First step is to calculate the First year Book value

First year Book value=$40,000/5 years

First year Book value=$8,000

Second step is to calculate the Second year Book value

Second year Book value=($40,000+$40,000)/5 years

Second year Book value=$80,000/5 years

Second year Book value=$16,000

Now let compute the book value at the end of the second year of the equipment's life.

Book value at the end of the second year=$8,000+$16,000

Book value at the end of the second year=$24,000

Therefore the Book value at the end of the second year will be $24,000

b1. Preparation of the adjusting entry on December 31

December 31

Dr Wages Expenses $440

Cr Wages payable $440

($2,200/5 years)

3 0

3 years ago

EB8.

Stolb23 [73]

Answer:

The fixed costs per unit when 20,000 units are produced are $6.05 per unit.

Explanation:

Fixed costs per unit can be determined by using the following formula:

Fixed costs per unit = Total fixed costs/ number of units are produced

In a company, Total fixed costs do not depend on the level of activity (Fixed costs do not change).

In the company, Total fixed cost = $11 x 11,000 = $121,000

When 20,000 units are produced, Fixed costs per unit = $121,000/20,000 = $6.05 per unit.

3 0

3 years ago

Retained earnings represents: Multiple Choice Amount of cash available for paying dividends. Total assets minus total liabilitie

kotegsom [21]

Answer:

All net income, less all dividends, since the company began operations.

Explanation:

Retained Earnings are the retained profits that the company keeps with itself, for meeting any case of emergency or for growing company and thus, meeting the growing expenses.

Each year when company earns profits and then, it distributes its profits in the form of dividends, the balance remaining after paying the dividends is added to retained earnings.

Thus, the entire balance of these kind of profits not paid anywhere else and also not utilized is called retained earnings.

4 0

3 years ago

Lake Co. receives nonrefundable advance payments with special orders for containers constructed to customer specifications. Rela

klasskru [66]

Solution :

We calculate the advances form the customer to be reported as the current liability as on Dec. 31, 2009 in the balance sheet as follows :

Particulars Amount ($)

Customer advances the balance Dec 31, 2008 110

Add : advances that is received with 2009 orders is 195

Less : advances applicable to the orders in 2009 -180

Less : advances from orders that are canceled in 2009 -45

Advances from the customers liability Dec. 31, 2009 80

Therefore, the advance from the customer to be reported in the balance sheet as the current liability is $80.

6 0

2 years ago