Considering the diagrams (file:///C:/Users/Administrator/Desktop/image...1.webp).
The answer is D only.
The diagram shows a shift in the supply curve. Changes in production cost and related factors can cause an entire supply curve to shift right or left. This in turn causes a higher or lower quantity to be supplied at a given price. Additionally, if the cost of resources used to produce a good increases, sellers or suppliers will be less inclined to supply the same quantity at a given price, and the supply curve will shift to the left. Those factors that increase production efficiency such as technology advances, shifts the supply curve to the right.
Answer:
1.
Dec 31 Rent expense $3450 Dr
Prepaid Rent $3450 Cr
2.
Oct 1 Prepaid Rent $13800 Dr
Cash $13800 Cr
3.
Year end balances at 31 December:
Rent Expense = $3450
Prepaid Rent = $10350
Explanation:
Assumption: The year end for the business in on 31 December.
1.
The rent is paid in advance thus it is an asset. On 31 December the adjusting entry will be made under the accrual principle to match the current period's rent expense and record it in the period to which it belongs to. Thus we will credit the rent expense for 3 months i.e. October, November and December. We will credit the asset account that is Prepaid Rent.
2.
The prepayment of rent is creating an asset account in the title of prepaid rent. The entry would be to record the asset prepaid rent by the full amount of the rent prepaid and credit the other asset account through which the payment is being made.
3.
The adjusted year end balance for rent expense will be the rent expense paid for this period that is $1150 * 3 = 3450
The balance in the prepaid rent account after adjusting the rent expense will be,
Prepaid rent = 13800 - 3450 = $10350
Answer: I) provides extra protection to bondholders as both an early warning system and perhaps some collateral cash
II) ) provides an option to the firm to buy bonds at the lower of market or face value.
Explanation:
A sinking fund is typically an amount of money that is being set aside by a company in order to either pay a bind or pay off a particular debt that the company has incurred.
The effect of the sinking bond on bondholders is that it provides extra protection to bondholders as both an early warning system and perhaps some collateral cash and tabt is also provides an option to the firm to buy bonds at the lower of market or face value.
Therefore, option I and II are correct.
Answer:
-$414,444.44
Explanation:
The computation of the net present value is shown below:
Net present value = Initial investment + net cash flows ÷ (required rate of return - projected growth rate)
= -$1,570,000 + $104,000 ÷ (12% - 3%)
= -$1,570,000 + $1,155,555.56
= -$414,444.44
Hence, the net present value is -$414,444.44
Since the net present value comes in negative so the project is rejected
Answer:
Maturing product
Explanation:
A product goes through four stages in its life, introduction, growth, maturity and decline. It is during the maturity stage that sales drop as the product has reached almost everywhere. Consumers have accepted the product and now there is no further scope of reach.
Here, mousetrap production is expected to stop indicating that it has entered maturity stage of its life cycle. So, it's a maturing product.
