Answer and Explanation:
The journal entries are shown below:
1. Insurance expense Dr $1,200
To Prepaid insurance $1,200
(Being the insurance expense is recorded)
2. Supplies expense Dr ($5,000 + $2,000 - $800) $6,200
To Supplies $6,200
(Being the supplies expense is recorded)
These two above entries should be recorded and the same is to be considered
<span>wanted independent control of their own affairs</span>
Answer:
b) The average cost must be rising.
Explanation:
Assuming that the entity produce 4 units and its total cost is $16 so average cost per unit is $4 and now the same entity has produced the 5th unit at $5 so the average cost now per unit is (16+5)/5=$4.2
So based on the above discussion, it can be concluded that average cost increase when the marginal cost of production is increased.
So the answer is b) The average cost must be rising.
Answer:
it is an adjustment to net income.
Since the prepaid expenses increased during the year, the amount by which it increased should be deducted from operating cash flows
Explanation:
other adjustments to net income:
depreciation expense
changes in accounts receivable
changes in inventory level
changes in accounts payable
changes in other current liabilities, e.g. taxes payable
