Answer:
B) debit to Accounts Receivable for $200.
Explanation:
Since Jefferson Cleaning has only performed half a month of cleaning, they can record an accounts receivable for half the months regular bill. The revenue recognition principle allows this, but generally it would be done because it is December 31 and the revenue account needs to be closed. If not, Jefferson should probably wait until the 15 of the following month before recording the total monthly bill.
The journal entry should be:
December 31, cleaning services performed at Willis Co.
Dr Accounts receivable 200
Cr Sales revenue 200
Answer: $1,195,200
Explanation:
Net sales = $1,440,000
Expenses = $504,000
Reductions = $604,800.
We then calculate the initial mark up which will be the addition of the net sales, expenses and the reduction. This will be:
= $1,440,000 + $504,000 + $604,800
= $1,195,200
Answer:
Distribution systems allocate endless goods and services.a.)
Coca-Cola acquired its bottlers and created a national vertically integrated business operation in 2010. After spending 12.3 billion USD to acquire Coca-Cola Enterprises, its largest bottling partner, it reversed course in 2015 and sold off all its bottling operations. This is an example of a <u>failed diversification effort</u>.
<u>Explanation</u>:
Diversification efforts are taken by the organizations to achieve desired outcomes but sometimes they fail in it. The following are the reason for failure of diversification effort:
- failing to integrate acquisitions
- unable to understand how the acquired organization’s assets would fit with their own lines of business
- paying high premium for the target's common stock
- not acting in best interest of shareholders
The diversification strategy is adopted by many organizations to develop its business. In the above scenario, Coca-Cola Enterprises adopted diversification effort but failed in it.
Answer:
As a result of the political unrest in Libya, the supply of oil would fall, As a result the supply curve would shift to the left. This would lead to fall in equilibrium quantity and a rise in price.
The increased demand for oil would shift the demand curve to the right. The equilibrium price and quantity would increase
Taking these two effects together, equilibrium price would rise and there would be an indeterminate effect on equilibrium quantity
Please check the attached image for a graph showing these shifts
b. As a result of the change in supply, supply would increase. This would increase equilibrium quantity and equilibrium price would fall. in addition with the increase in demand for oil, equilibrium quantity would rise and there would be an indeterminate effect on equilibrium quantity
Explanation:
