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Lelechka [254]
3 years ago
13

On January 1, 2016, Dreamworld Co. began construction of a new warehouse. The building was finished and ready for use on Septemb

er 30, 2017. Expenditures on the project were as follows: January 1, 2016 $300,000 September 1, 2016 $450,000 December 31, 2016 $450,000 March 31, 2017 $450,000 September 30, 2017 $300,000 Dreamworld had $5,000,000 in 12% bonds outstanding through both years. Dreamworld's average accumulated expenditures for 2016 was:
Business
1 answer:
Akimi4 [234]3 years ago
3 0

Answer:

$54,000

Explanation:

Average accumulated expenditure can be determined by calculating the weighted average expenditure of each bond based on the numbers of month each bond is outstanding.

2016

As per given data

January 1, 2016 $300,000

September 1, 2016 $450,000

December 31, 2016 $450,000

Expenditures

As the bonds have different outstanding periods in the year, so we have to calculate the weighted average expenditure based on the numbers of months each bond outstanding within 2016.

January 1, 2016         $300,000 x 12/12 x 12% = $36,000  

September 1, 2016   $450,000  x 4/12 x 12% =  $18,000

December 31, 2016  $450,000  x 0/12 x 12% = <u>$0           </u>

Total Expenditure                                                <u>$54,000 </u>

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Ivanhoe company purchased machinery with a list price of $88000. They were given a 7% discount by the manufacturer. They paid $4
cestrela7 [59]

Answer:

A) $6194

Explanation:

Price before discount = $88,000

discount rate = 7%

Amount of discount = 7% *$88,000 = $6,160

Price after discount = Price before discount - Amount of discount

= $88,000 - $6,160

Price after discount = $81,840 (this is the price included in depreciation)

Items included in total cost of machinery;

Price of machinery after discount = $81,840

Shipping  cost = $400

Sales tax = $4,700

Therefore, total cost is therefore = $81,840 + $400 + $4,700 = $86,940

Depreciation per year = (Total cost of the machinery - salvage value) / useful life

= (86,940 - 25,000)/ 10

= 61,940/10

= 6,194

Therefore annual depreciation = $6,194

8 0
3 years ago
Zook company is a wholesaler that buys footballs and then sells them to other businesses, such as sports authority and target. t
Misha Larkins [42]
Based on the given information above about the Zook Company which is a wholesaler company, the type of wholesaler that it falls into is in the JOBBER. It is classified as a jobber since the Zook company only has a limited merchandise as well as their functions are limited too. In addition, they do not give any feedback to the manufacturers from the retailers.
5 0
3 years ago
The Reingold Hat Company uses the allowance method to account for bad debts. During 2018, the company recorded $800,000 in credi
olasank [31]

Answer:

$24,000

Explanation:

Since in the question it is given that the  3% of credit sales is considered to be a bad debt expense

where,

Credit sales is $800,000

And, the estimated percentage is 3%

So by considering this above information, the amount debited to bad debt expense is

= $800,000 × 3%

= $24,000

All the other information i.e to be given is not relevant. Hence, ignored it

4 0
3 years ago
In 2002, a Swedish home electrical appliance manufacturer decided to use the same advertising message wherever it advertised aro
ella [17]

Answer:

Global advertising

Explanation:

Global advertising -

It refers to the method of popularizing a specific goods or services to the whole world , is referred to as global advertising .

Only specific companies or business are able to advertise their products on the global platform and earn some profit .

The example are -

Microsoft , Coca cola , McDonald's etc .

Hence , from the given scenario of the question ,

The correct answer is Global advertising .

7 0
3 years ago
Following the 2007-2009 financial crisis, many people feared that Greece might leave the euro and resume using the drachma. If t
Nina [5.8K]

Answer:

A medium of exchange

Explanation:

A medium of exchange is a system where it is used to facilitate the sale, purchase, trading of the products & services between the parties

Since in the given situation,  it is mentioned that the seller would not willing to accept the drachma in exchange of goods & services so here the drachma would not be served as a medium of exchange

hence, the same would be relevant

7 0
2 years ago
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