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Ulleksa [173]
3 years ago
10

On September 1, 2021, Custom Shirts Inc. "entered into a lease agreement appropriately classified as an operating lease". The le

ase term is three years. The annual payments by Custom Shirts are (a) $24,000 for year 1, (b) $28,000 for year 2, and (c) $32,000 for year 3. How much total lease expense will Custom Shirts recognize for 2021
Business
1 answer:
Savatey [412]3 years ago
8 0

Answer: Please refer to the explanation section

Explanation:

The question is not clear in terms of when is the financial year end, we only its 2021. We will assume the financial year started in January 2021 and ended December 2021

Operational Lease is an agreement where the lessor (owner of the asset)  allows the lessee (user of the asset) to only use the asset without the transfer of ownership. Ownership of the asset is not transferred to the lessee/ user of the asset. lease Payments/ Rental payments are considered as expenses and are recognize in the income statement.

Custom Shirts Inc entered into a Lease agreement on the 1st of September 2021. assuming the financial year ends on December 2021, the expense Recognized in the Income statement for the year ended December 2021 will

$ 24000 x 4 months/12 months =$ 8000

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Grassley Corporation allocates administrative costs on the basis of staff hours. Short-run monthly usage and anticipated long-ru
vodka [1.7K]

Answer:

$80,000

Explanation:

Calculation to determine what the amount of variable administrative cost to allocate to Department 1 would be

Variable administrative cost to allocate to Department 1=(40,000 ÷100,000) x $200,000

Variable administrative cost to allocate to Department 1=0.4×$200,000

Variable administrative cost to allocate to Department 1= $80,000

Therefore The Variable administrative cost to allocate to Department 1 would be $80,000

4 0
2 years ago
Havermill Co. establishes a $270 petty cash fund on September 1. On September 30, the fund is replenished. The accumulated recei
stiv31 [10]

Answer:

Hi there!

C. Debit Miscellaneous Expense $270; credit Cash $270.

Explanation:

At the time of the reimbursement from the petty cash, the vouchers for the money used are presented and these must be charged to the different expenses incurred.

In October 1, the journal entry for the petty cash increase of $54 will be:

Debit Petty Cash $54; credit cash $54.

8 0
3 years ago
Identify whether each of the following would be reported as an operating, investing, or financing activity on the statement of c
anyanavicka [17]

Answer and Explanation:

The classification is as follows

1.

A. financing activity = Cash outflow  as cash is gone

B. Operating activity  = Cash inflow as cash is received

C.  Operating activity  = Cash outflow  as cash is gone

D. Financing activity  = Cash outflow  as cash is gone

E. Investing activity  = Cash outflow  as cash is gone

2.

A. Investing activity  = Cash outflow  as cash is gone

B, Investing activity  = Cash inflow as cash is received

C.  Operating activity  = Cash outflow  as cash is gone

D.  Operating activity  = Cash inflow as cash is received

E.  Operating activity  = Cash inflow as cash is received

F.financing activity  = Cash inflow as cash is received

8 0
3 years ago
A company revenue reports the following information as of December 31: Sales revenue $800,000 Cost of goods sold 600,000 Operati
Wittaler [7]

Answer:

$320,000

Explanation:

As we know that the

Comprehensive Income = Operating profits + Unrelated profits

The unrelated profits here is profit generated arising due to the sale of debt securities which is not the core operation of the company and hence is unrelated profits.

So by putting values we have:

Comprehensive Income =  ($800,000 - $600,000 + $90,000)  + $30,000

Comprehensive Income =  $320,000

4 0
3 years ago
Read 2 more answers
Food production facilities like the three Graeter's factories must comply with strict regulations to ensure purity and safety. W
Blababa [14]

The types of teams that Graeter might use in these facilities include a food quality team, a production team, and a logistics team.

<h3>What are the most important processes of food production?</h3>

The most important processes of food production include quality controls, which are fundamental to ensure safe foods, and also teams associated with the production, which ensure a suitable production to obtain benefits.

Moreover, the logistic team is also fundamental in food production because it ensures the correct movement of packaged food to the final destination.

In conclusion, the types of teams that Graeter might use in these facilities include a food quality team to control the quality of foods, a production team to ensure the required amount of food products on a daily basis, and a logistics team to ensure the transport of foods to corresponding market centers

Learn more about food production here:

brainly.com/question/11900425

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3 0
1 year ago
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