Answer:
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
Explanation:
Given;
Insurance policy was purchased on July 10 to run for 3 years.
Cost of policy = $72,000
Start date is August 1st. As at 31 December, the policy should have been amortized for 5 months (August to December)
Monthly depreciation = $72,000/(3 × 12)
= $2,000
Total amortization between August and December = 5 × $2,000
= $10,000
Journal entries
Debit Insurance expense $10,000
Credit Prepaid Insurance $10,000
Being entries to recognize insurance expense for the period (August to December).
Answer:
C. 534 units
Explanation:
The formula to compute the break-even point is shown below:
= (Fixed cost) ÷ (Contribution margin per unit)
where,
Contribution margin per unit = Selling price per unit - Variable expense per unit
= $3 - $0.75
= $2.25
So, the break-even point would be
= $1,201 ÷ $2.25 per unit
= 534 units
Simply we divide the fixed cost by the contribution margin per unit so that the accurate units can come.
Answer:
These are the options for the question:
a) A negative cash flow from operating activities
b) A negative cash flow from investing activities
c) A significant positive cash flow from financing activities
And this is the correct answer:
a) A negative cash flow from operating activities
Explanation:
Declining companies are characterized by a lack of revenue from regular operating activities.
If cash flow from operating activities is negative, it means that the company is not making enough money to meet its obligations, and that will likely cease to exist in the near future unless big changes happen.
Answer:
85 less rooms this year than last
Explanation:
The number of rooms (n) occupied for this month last year is given by the Room Revenue ($231,470) divided by the daily rate ($76.72):
The number of rooms occupied last year is larger than the number of rooms occupied this year by:
The hotel occupied 85 less rooms this year than last.
Answer:
The answer is
A. Increasein supply of laptop
B. Increase in hotel taxes
C. Reduction in wages or salary paid
Explanation:
A. To offset the outcome: Increase in supply of laptop will neutralize the increase in price due to high demand. The market forced will automatically drive the price laptop down.
B. To offset the outcome: Increase in hotel taxes will drive the price of hotel lodging up because this increase will be passed to the consumers(traveller) and discourage vacation travel
C. To offset the outcome: Reduction in wages or salary paid will discourage people from working. This satisfies law of supply (At lower price(wages), less will be supplied/produced(the supplied factor of production,labor)
