Answer:
A debit to Unearned Rent and a credit to Rent Earned for $2,400
Explanation:
When cash is collected in advance for revenue from lease, the revenue will not be recorded as revenue until the lease service has been performed. Hence the cash collected in advance will be recorded as
Debit Cash $6,400
Credit Deferred revenue $6,400
Being cash collected on October 1 for lease to run for 8 months.
Between October 1 and December 31 is 3 months.
Hence, amount earned
= $800 × 3
= $2,400
To recognize this amount, Debit Unearned/Deferred revenue, credit revenue with the amount earned.
Answer:
b) Nothing, because you are already minimizing cost
Explanation:
cost of producing one additional unit by hiring more workers = $10 / 50 units = $0.20 per unit
cost of producing one additional unit by buying the machine = $200 / 1,000 units = $0.20 per unit
Since labor exhibits a diminishing return, the next unit of labor will produce less than 50 units. This means that if you want to increase production, you should buy the machine.
Using the same logic, the previous units of labor were able to produce more than 50 units, which means that the average total cost was lower using labor than the machine. So if the company's concern is to minimize costs, then they are already doing so.
Answer:
$56,000
Explanation:
Given the above information, we will calculate first the total cash flow.
Total cash flow = Opening cash receivable + Sales - Ending cash receivables
= $196,000 + $880,000 - $226,000
= $850,000
Ending cash balance = Opening cash balance + Total cash flow - Cash disbursement
= $146,000 + $850,000 - $940,000
= $56,000
Answer:
(c) Interview customers to get their opinion about the checkout process
Explanation:
Customers are those who buy goods or receive services from a business owner. Customers may sometimes not be the consumers because the customers may buy from the company and sell to other people to consume. The customers may also be the consumers at times when they consume what they bought. If customers do not buy from the business owners, they won't be consumers, thou consumers are gods in today's market and life wire of any business.Once customers are satisfied with the products and services provided to them by the company, they will continue to patronize the company and never substitute it for another company.Most companies start having problems or loose customers due to nonsatisfaction of goods and services render by the company. Therefore, interviewing the customers to get their opinion about the checkout process is the best approach for gaining more insight into the problem because they are in the best position to state why they are not patronising the company's product again.
Answer:
$4,000
Explanation:
The computation of the interest expense is shown below:
= Borrowed amount × rate of interest × number of months ÷ (total number of months in a year)
= $100,000 × 12% × ( 4 months ÷ 12 months)
= $4,000
The four months is taken from Jan 2022 to May 2022
We simply applied the simple interest formula to determine the interest expense and the same is shown above
