It should be Option B since entrepreneurs main aim is usually profit making.
Answer: A. debit of $3,745 to Premium on Bonds Payable.
Explanation:
The carrying value of the bonds at redemption date is $103,745.
The bonds retired however, had a face value of $100,000.
The company therefore paid a premium on these bonds which is:
= 103,745 - 100,000
= $3,745
This amount will be debited to the Premium on Bonds Payable account.
Answer:
a. $21
b. $1,890,000
Explanation:
a. The computation of the predetermined overhead rate is shown below:
Predetermined overhead rate = (Total estimated manufacturing overhead) ÷ (estimated computer hours)
= $2,100,000 ÷ 100,000 hours
= $21
b. Now the applied overhead which equals to
= Actual computer hours × predetermined overhead rate
= 90,000 hours × $21
= $1,890,000
Answer:
$7500
Explanation:
An expense stop is a tool used by landlords to limit their operating costs and maintain predictable operating costs over the terms of the lease. Hence, even though the operating expense is $6.50, the landlord is only accountable for $6.
The operating costs annually would be: 1500 x 6 = 9000
(Even though the office space is vacant for one month of the year, maintenance costs will still be incurred throughout the year, whether leased or vacant)
Annual income :
1500 x 12 = $18000 (12 months)
It should be noted though that the office space is vacant for one month. Hence, landlord only receives 11 months worth of leased rent. Actual income : (18000/12) x 11 = $16500
Net operating income annually : Total income - Total expenses = $16500 - $9000 = $7500
The answer to this is 0.08 hope that this helped
