Answer: Foreign direct investment
Explanation: This would be an example of a foreign direct investment according to the U.S. Department of Commerce. A foreign direct investment is one such as a business or individual in one country buying into business interests in another country and usually occurs when such entities establish foreign business operations or is engaged in the acquisition of foreign business assets in a foreign company.
Foreign direct investments are of three types (horizontal, vertical and conglomerate) are are carried out to expand the investment base in a country, create employment through the creation of newer job opportunities, the introduction of advanced technology and so on.
Answer:
Soundgarden Company
Journal Entries:
July 10, 2020:
Debit Cash Account (or Accounts Receivable) $800,000
Credit Sales Revenue $800,000
To record the sale of 200 copiers at $4,000 apiece.
July 10, 2020:
Debit Warranty Expense $66,000
Credit Warranty Liability $66,000
To record the estimated warranty maintenance on copiers sold.
December 31:
Debit Warranty Liability $17,000
Credit Inventory $17,000
To record actual warranty costs incurred.
Explanation:
Soundgarden should record these transactions according to the matching principle, whereby warranty expense is recognized in the period that matches the sale so that all expenses related to sales are recognized when the sales are recognized. This is achieved by creating a warranty liability account after the sales and recording a warranty expense as the debit entry. When actual warranty costs are incurred, the Soundgarden Company will debit the warranty liability and credit the inventory actual for the actual costs.
Answer:
1. $ 136,500
2. $70000
3. Medical market
Explanation:
1. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the MEDICAL MARKET
First is to calculate the sales
Sales = (400 000 + 70 000)
Sales = $470 000
Second step is to calculate the profit
Variable cost =$470 000 *65%
Variable cost=$305 500
Contribution =$470 000*35%
Contribution =$164,500
Fixed Expense= $28 000
Profit = $ 136,500
Now let calculate the Difference made by advertisement
Difference = 136500 - 120000
Difference=16500
2. Calculation to determine How much would the company's profits increase (decrease) if it implemented the advertising campaign in the
DENTAL MARKET
vcr Of The Dental market = 50%
Variable cost =50% $260 000
Variable cost = $130 000
Contribution = $130 000
Fixed expenses = $60 000
Profit = $70000
Now let determine difference made by the advertisement
Difference =(70000) - 48000
Difference= 22000
3. Based On the above calculation the markets I would recommend that the company focus its advertising campaign is medical market
Explanation:
The computation is shown below:
Year Depreciation Book value
0 $1,200,000
1 $125,000 $1,075,000
2 $125,000 $950,000
3 $125,000 $825,000
4 $125,000 $700,000
5 $125,000 $575,000
6 $125,000 $450,000
7 $125,000 $325,000
8 $125,000 $200,000
The depreciation expense is
= ($1,200,000 - $200,000) ÷ (8 years)
= $125,000
C. The adjusting entry for accrued interest on a note receivable would include a credit to interest revenue
