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iris [78.8K]
3 years ago
6

On January 4 of this year, Diaz Boutique incurs a $105,000 cost to modernize its store. Improvements include new floors, ceiling

s, wiring, and wall coverings. These improvements are estimated to yield benefits for 10 years. Diaz leases its store and has eight years remaining on the lease.
Required : Prepare the entry to record (1) the cost, of moderanization and (2) amortization at the end of this current year.
Business
1 answer:
irina [24]3 years ago
8 0

Answer:

Explanation:

The journal entries are shown below:

1. Modernization cost A/c Dr $105,000

            To Cash A/c $105,000

(Being the cost of modernization is recorded)

2. Amortization of modernization A/c $13,125

           To Modernization A/c $13,125

(Being the amortization is recorded)

The computation of the amortization is shown below:

= Modernization cost ÷ remaining life

= $105,000 ÷ 8 years

= $13,125

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4 0
1 year ago
Buckshot Electronics is a chain of electronics superstores that is located throughout California. They have 15 locations concent
prisoha [69]

Answer:

Explanation:

Given that:

annual demand = 7800 units

wholesale price = $325

retail price = 399

The per-unit cost for each item = $399 per unit

The annual cost to purchase the items = Annual demand × wholesale price

= annual demand × price of the wholesales

= 7800 × 325

= $2535000

8 0
3 years ago
Tracy consumes dress shoes​ (D) and casual Crocs​ (C). Her marginal utility from consuming casual Crocs is MU Subscript Upper CM
Llana [10]

Answer:

The optimal bundle is 6 pairs of dress shoes and 3 pairs of Crocs.

Explanation:

From the question,

Allowance (M) = $450; Price of dress shoes, Pd = $50; Price of crocs, Pc = $50

Note: MRS-price ratio, MUC- marginal utility from consuming casual Crocs ,MUD- marginal utility from consuming dress shoes

Optimal bundle is determined where MRS = Price ratio

MRS = MUC/MUD = 20DC/10C2 = 2D/C

Price ratio = Pd/Pc = 50/50 = 1

So, 2D/C = 1

       Therefore, C = 2D

Budget constraint:  M = Pd*D + Pc*C

So, 50D + 50*(2D) = 450

      50D + 100D = 150D = 450

So, D = 450/150 = 3

C = 2D = 2*3 = 6

7 0
3 years ago
During the _____ stage of the product development process, a firm gears up for full-scale production, distribution, and promotio
earnstyle [38]
<span>Commercialization, is the stage in new product development, is the full introduction of a complete marketing strategy and the launch of the product for commercial success.After that only we can come to know whether the product is commercially successful or not.when the product is commercially successful one can go for full-scale production of the product.</span>
8 0
3 years ago
Kuyu Company uses the periodic inventory system. Kuyu started the period with $12,000 in inventory. The Company purchased an add
a_sh-v [17]

Answer:

$29,500

Explanation:

Given that,

Beginning inventory = $12,000

Ending inventory = $6,000

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Kuyu’s cost of goods sold during the period:

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= $12,000 + 23,500 - $6,000

= $29,500

5 0
3 years ago
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