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Licemer1 [7]
3 years ago
9

A) Depreciation on the company's equipment for 2017 is computed to be $16,000.

Business
1 answer:
OleMash [197]3 years ago
4 0

Answer:

Adjusting Journal Entries:

a) Debit Depreciation Expense - Equipment $16,000

   Credit Accumulated Depreciation - Equipment $16,000

To record depreciation charge for the year.

b) Debit Insurance Expense $8,100

   Credit Insurance Prepaid $8,100

To record insurance expense for the year.

c) Debit Office Supplies Expense $2,583

   Credit Office Supplies Account $2,583

To record office supplies used for the year.

d) Debit Deferred Revenue $2,750

   Credit Service Revenue $2,750

To record revenue for work done this period.

e) Debit Insurance Expense $4,200

   Credit Prepaid Insurance $4,200

To record insurance expense for the year.

f) Debit Wages Expense $5,000

  Credit Wages Payable $5,000

To record unpaid wages as of December 31, 2017.

Explanation:

Adjusting journal entries are entries made in the journal to accrue expenses and revenue in line with the accrual concept and the matching principle of U.S. GAAP.  The concept and principle require that expenses and revenue are matched in the period they were incurred and not when they were actually paid for or received.

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Many store brands use packaging and labeling that is similar to the more expensive national brand. The hope is that the look-ali
olga nikolaevna [1]

Answer:

Stimulus generalization

Explanation:

Stimulus generalization defines that it is the process of call up for a reason by giving responses. For example we call dog by using the bell so that dog can come for food.

Therefore according to the given situation, Many store brands use similar packaging and labeling to the more expensive big company. The idea is that in customers, the look-alike kit would evoke a similar reaction that allows them to buy the affordable store brand so this is an example of Stimulus generalization

6 0
3 years ago
Activity-Based Costing for a Service Business Sterling Hotel uses activity-based costing to determine the cost of servicing cust
Tatiana [17]

Answer:

Total allocated cost= $146.4

Explanation:

Giving the following information:

Julie Stone visited the hotel for a 6-night stay.

Julie had 3 meals in the hotel during the visit.

guest check-in= $8.40 per guest check-in

room cleaning= $21.00 per room cleaning

meal service= $4.00 per served meal

<u>To allocate costs based on the activity, we need to use the following formula:</u>

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

guest check-in= 8.40*1= 8.4

room cleaning= 21.00*6= 126

meal service= 4.00*3= 12

Total allocated cost= $146.4

3 0
2 years ago
Byron Corporation forecasts that its income will be $21,000 next year. The firm pays out 30 percent of earnings as dividends to
noname [10]

Answer:

RE break point = $24500

Explanation:

21,000 net income

30% OF Earnings as dividends

21,000 x 30% = 6,300 dividends

Retained Earnings (assuming no previous beginning value)

21,000 - 6,300 = 14,700

RE break point = 14,700/0.6 = 24500

What does the $24,500 mean?

This mean that the company can raise financing for this ammount without changing their capital structure (60% equity 40% debt)

If the company wants to finance for more, it will need to raise new shares or chance their capital structure, and therefore the WACC will change

8 0
2 years ago
The following information has been provided by New​ Age, Inc.:
N76 [4]

Answer:

(D) $ 4,950

Explanation:

The computation is shown below

As We know that

Ending work in process inventory = Opening work in process inventory + total manufacturing cost - cost of goods manufactured

where,  

Total manufacturing cost = Direct materials used + direct labor cost + manufacturing overhead  cost

= $10,000 + $25,800 + $19,200

= $55,000

So, the opening work in process inventory would be

$11,200 = Opening work in process + $55,000 - $48,750

So, the opening work in process is

= $4,950

7 0
3 years ago
On December 31, after making a concerted effort, management determines that it will not be able to collect the $1,200 owed to it
zvonat [6]

Answer:

See explanation section

Explanation:

To record the journal entry to write off the uncollectible account according to the direct write-off method, we have to use bad dad expanse instead of an allowance account.

December 31         Bad Debt Expense           Debit     $1,200

                              Account receivable - Acme, Inc.      Credit    $1,200

Note: As the company did not get the money from the Acme, Inc., They treated the expense as irrecoverable.

4 0
3 years ago
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