Answer:
Adjusting Entries
December 31
Dr. Insurance Expense $2,000
Cr. Prepaid Insurance $2,000
December 31
Dr. Supplies Expense $8,200
Cr. Supplies account $8,200
Explanation:
On December 31, six months have been accrued and all of the amounts of prepaid insurance became accrued. hence it will be recorded as an expense.
Now calculate the supplies expense using the following formula
Supplies expense = Beginning Supplies + Purchases during the year - Ending Supplies = $6,600 + $2,800 - $1,200 = $8,200
Safety & knowledge of the job
Answer:
C
Explanation:
The shareholder-debtholder conflict usually arises because shareholders would prefer the firm to engage in more risky business activities. This is because this has the potential to increase the income of the firm and as a result, the wealth of shareholders.
On the other hand debtholders would not want the firm to engage in risky activities because it might negatively affect the firm's ability to make its schedules payments to debtholders.
In order to protect themselves, debtholders usually draft a deb covenant which contains allowable activities of the firm
Answer: Fee simple defeasible.
Explanation:
A fee simple defeasible is a transfer of property that has conditions placed on the property. The holder of a fee simple defeasible has the property as a "fee simple" subject to the given condition. In a case whereby the condition is not met or violated then the property will go back to the grantor or a specified third party.
In this case, if the first church of Magnolia allows alcohol to be sold on the land, the property will be given back to Kasen or his heirs.
Answer:
The correct option is c. $8.
Explanation:
Ken will maximize utility where the following equation holds:
MU of Sprite / Price of Sprite = MU of potato chips / Price of potato chips ................. (1)
Where;
MU of Sprite = Marginal utility of Sprite = 3
Price of Sprite = $1 per can
From the table in the question, equation (1) holds at the point where Marginal utility of potato chips is 6 since the Potato chips cost $2 per bag.
Substituting the values into equation (1), we have:
MU of Sprite / Price of Sprite = MU of potato chips / Price of potato chips => 3 / 1 = 6 / 2 = 3
Since when the marginal utility of potato chips that maximizes utility is 6, Ken consumes 4 Bags of Potato chips monthly and pays $2 per bag at this point, the amount he spends on potato chips each month can be calculated as follows:
Amount spent on potato monthly = Number of bags of Potato chips consumed monthly * Cost of potato chips per bag = 4 * $2 = $8
Therefore, the correct option is c. $8.
