Answer:
Pina Colada's net income for the year ending October 31, 2022 is $246,400.
Explanation:
Net income = Revenue recognized - Expenses incurred including depreciation
= $484,000 - $237,600
= $246,400
Therefore, Pina Colada's net income for the year ending October 31, 2022 is $246,400.
Answer:
B)debit Interest Expense, $200; credit Interest Payable, $200
Explanation:
The adjusted journal entry for the interest expense is shown below:
Interest expense A/c Dr $200
To Interest payable $200
(Being the interest adjusted entry is recorded)
Since we have to record the interest expense from September 1 to September 30 which reflects 1 month and the computation of interest expense is shown below:
= Principal × rate × (number of month ÷ total number of months in a year)
= $40,000 × 6% × (1 ÷ 12)
= $200
Answer:
Break-even point in units = 11 units
Explanation:
Given:
Rent per month = $150
Fixed charges per = $15
Variable cost = $5
Sale value = $20
Break-even point in units = ?
Computation of Contribution:
Contribution = Sale value - Variable cost
Contribution = $20 - $5
Contribution = $15
Computation of break-even point in units:
Break-even point in units = Fixed cost / Contribution
Break-even point in units = ($150 + $15) / $15
Break-even point in units = ($165) / $15
Break-even point in units = 11 units
Answer:
$20,226
Explanation:
expected sales = 11,400 - 12,000 - 12,600
expected sales price = $7.20 - $7.50 - $7.80
expected variable cost = $3.072 - $3.20 - $3.328
total fixed costs = $31,000
if you use an excel spreadsheet you can calculate all the different possible simulations and combine all the expected sales x 3 different price levels x 3 different variable costs and 1 fixed cost. Once you get all the 27 possible solutions, you just get the average.
I attached it because there is no room here.
