Answer:
No options presented but the entry below should be right.
$2,600 worth of merchandise was purchased but $600 was returned so Net accounts receivable:
= 2,600 - 600
= $2,000
Company paid the full amount on July 12 which is within the 10 days required for a discount so they get a 3% discount:
= 2,000 * ( 1 - 3%)
= $1,940
Date Account details Debit Credit
July 12 Accounts Payable $2,000
Cash $1,940
Merchandise inventory $60
Answer:
attached answer
Explanation:
equity represnet investment from owners and the accumulation of the result from the company operations.
1) equity increase the company receive an investment from owner
3-6-8) equity decrease as an expense is incurred which is a negative operation it has a negative impact on the earnings of the firm
4-5-9) the company's equity increase as income is generated from the main activity.
2-7)there is no involment of equity as the company acquired an asset and takes a liability while then, at payment an asset(cash) decrease an a liability( A/P) also decrease
We must remember that we work with accrual accounting thus, the day of collection or payment are not what determinates ncome and expenses.
Answer:
A firm maximizes its accounting profits when marginal revenue = marginal costs. In this case, the $250 tax, would increase the price of pizzas by less than 1 cent per pizza since total production = 80 pizzas x 360 days = 28,800 pizzas per year. Even if the restaurant only opens 6 days a week, its total production is very close to 25,000 pizzas. So the impact of the tax is really minimum.
If Ronny (I guess that is the owner's name) really wants to keep maximizing his profits, then he should increase the price of each pizza by 1 cent. The price increase will be minimum and very few customers will probably even notice.
The cat is a good life story but it was a lot better and more fun than that I think I was kind
