Procedures and Requirements for starting a Business

Chase Company has 10 employees, who earn a total of $2,200 in salaries each working day. They are paid on Monday for the five-da

UkoKoshka [18]

The adjusting entry is shown below:

Salaries expense A/c $6,600

To Salaries payable A/c $6,600

(Being salary is adjusted)

The salaries expense is computed by

= Total salary each day × number of days

= $2,200 × 3 days

= $6,600

The 3 days is computed from Monday to Wednesday

And for correct posting, we debited the salaries expense account and credited the salaries payable account.

<h3>What is Salary Payable and Salary Expense?</h3>

Salaries expense is how much an employee earned in salary. Salaries payable refers only to the amount of salary pay that employers have not yet distributed to employees.

Since Salaries are an expense, the Salary Expense is debited.

Correspondingly, Salaries Payable are a Liability and is credited on the books of the company.

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7 0

2 years ago

Alex Meir recently won a lottery and has the option of receiving one of the following three prizes: (1) $96,000 cash immediately

Iteru [2.4K]

Answer: Option 1

Explanation:

The option selected should be the one with the highest present value.

1. Present value = $96,000

2. Present value = $39,000 + Present value of $9,800 annuity

Present value of Annuity = Annuity * Present value interest factor of annuity, 6 periods, 5%

= 9,800 * 5.0757

= $49,741.86

Present value of option 2 = 39,000 + 49,741.86

= $88,741.86

3. Present value of $18,800 annuity:

= 18,800 * Present value interest factor of annuity, 6 periods, 5%

= 18,800 * 5.0757

= $95,423.16

Cash payment of $96,000 immediately is best option as it is highest.

8 0

3 years ago

J. Arthur has a capital balance of $80,000 and E. Joseph has a capital balance of $100,000 in their partnership as of June 30. O

Aliun [14]

Answer:

Debit Cash $20,000

Credit M. Alice capital $20,000

Explanation:

We recognize the admission of new partner by debiting the cash that the partnership received in the amount of $20,000 and then record the interest of the new partner by crediting her capital, M. Alice, capital $20,000. Basically, the old partners will agree as to what amount of interest that the new partner will be credited to the partnership. But in this scenario, the problem is silent as to the agreement of interest that M. Alice will be credited, in effect, the books will recognize M. Alice' interest equal to the cash she invested to the partnership.

5 0

4 years ago

A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price.

Yuki888 [10]

A company produces and sells a consumer product and is able to control the demand for the product by varying the selling price. The approximate relationship between price and demand is 50 units.

p = 38 + (2,700 / D) - (5,000 / D2)

Marginal (variable) cost (MC) = 40

(a) Profit is maximized by equality of Marginal revenue (MR) and MC.

Total revenue (TR) = p x D = 38D + 2,700 - (5,000 / D)

MR = dTR / dD = 38 + (5,000 / D2)

Equating MR with MC,

38 + (5,000 / D2) = 40

5,000 / D2 = 2

D2 = 2,500

Taking positive square root on each side,

D = 50

(b) When D = 50, from demand function we get

p = 38 + (2,700 / 50) - (5,000 / 2,500) = 38 + 54 - 2 = $90 (Profit-maximizing price)

Profit (\pi) ($) = Total Revenue - Total Costs = TR - (Fixed cost + Total variable cost) = (p x D) - (1,000 + 40D)

= 38D + 2,700 - (5,000 / D) - 1,000 - 40D

= 1,700 - 2D - (5,000 / D)

Profit is maximized when d\pi/dD = 0 and d2\pi/dD2 < 0.

First order condition: d\pi/dD = - 2 + (5,000 / D2)

Second order condition: d2\pi/dD2 = d/dD(d\pi/dD) = - 2 x (5,000 / D3) = - 10,000 / D3

Since D > 0, (- 10,000 / D3) < 0, which proves that profit is maximized when company produces = 50 units.

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8 0

2 years ago

I’m starting a business if I launch my business will y’all come shop !! for boys and girls * Didn’t launch yet but it’s coming s

EleoNora [17]

Answer:

I willlllll

Explanation:

sure thing :)

5 0

3 years ago