When venturing into a foreign country for business, which controllable risk will you most likely face?

Crestfield leases office space. On January 3, the company incurs $22,000 to improve the leased office space. These improvements

BabaBlast [244]

Answer:

Journal 1

Office Improvements $22,000 (debit)

Cash $22,000 (credit)

Being recognition of the Capital expenditure

Journal 2

Depreciation expense $ 2,200 (debit)

Accumulated Depreciation - Office Improvements $ 2,200 (credit)

Being Using the 10 years remaining on its lease to depreciate the lease

Explanation:

The improvements to leased offices are of a Capital Nature. Thus thus is a capital expenditure not a revenue expenditure.

Any improvements made on the leased property belongs to the lessor and thus the lessee will still be bound by the lease period.

In the year of improvements the journals are as follows

Office Improvements $22,000 (debit)

Cash $22,000 (credit)

Being recognition of the Capital expenditure

A journal to record the depreciation also need to be effected

Depreciation expense $ 2,200 (debit)

Accumulated Depreciation - Office Improvements $ 2,200 (credit)

Being Using the 10 years remaining on its lease to depreciate the lease

5 0

3 years ago

Sharon would make an adjustment entry to __________ to record the $500 her company received from a customer to perform future se

makkiz [27]

Answer:

the ending balance of the unearned revenue is $3,225

Explanation:

The computation of the ending balance is shown below:

= Amount received from the customer for performing the future service + balance in the account

= $500 + $2,725

= $3,225

Therefore the ending balance of the unearned revenue is $3,225

The above formula should be applied

5 0

3 years ago

Suppose Megan gets a sales bonus at her place of work that gives her an extra $400 of disposable income. She chooses to spend $3

kicyunya [14]

Answer:

0.75, 0.25

Explanation:

With an increase in disposable income marginal propensity to consume increase. Similarly, with an increase in disposable income marginal propensity to save increases. Marginal propensity to save is the amount of money saved or kept after a fraction increase in overall disposable income.

MPC = 300/400=0.75

MPS = 100/400=0.25

Marginal propensity to consume is 0.75

Marginal propensity to save is 0.25

5 0

3 years ago

Challenge Tennis & Recreation's operating activities for the year are listed below. Purchases $174 comma 800 Operating exp

makkiz [27]

Answer:

The answer is $169,400

Explanation:

Gross profit is a line item under income statement and it is the difference between net sales(revenue) and cost of sales. It is a measure of profitability ( net sales - cost of sales?

Cost of sales = beginning Inventory + purchases - ending Inventory

$27,600 + $174,800 - $37,800

$164,600.

Now, cost of sales is: ( net sales - cost of sales)

$334,000 - $163,800

=$169,400

6 0

3 years ago

Lin corporation has a single product whose selling price is $134 and whose variable expense is $67 per unit. the company's month

Rashid [163]

Answer:

600 units

Explanation:

The equation to calculate target profit is:

S × Q = (V × Q) + F + T

S = sales price
Q = Quantity of units
V = Variable expenses
F = Fixed expenses
T = Target profit

$134Q = $67Q + $32,300 + $7,900

$134Q - $67Q = $40,200

$67Q = $40,200

Q = $40,200 / $67 = 600

7 0

3 years ago