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3 years ago

Disadvantages of opening a new store location

1 answer:

7 0

You might struggle through delayed profitability where the market maynot already be established , it might take a long time to come profitable

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On January 2, 2015, Moser, Inc., purchased equipment for $100,000. The equipment was expected to have a $10,000 salvage value at

OLEGan [10]

Answer:

a. Debit Depreciation expense $6,400

Credit Accumulated depreciation $6,400

b. $33,600

Explanation:

Depreciation is the systematic allocation of cost to an asset. It is given as

Depreciation = (Cost - salvage value)/estimated life

When accumulated over time, it is known as accumulated depreciation which is deducted from the cost to get the carrying amount of the asset.

Depreciation

= (100000 - 10000)/6

=$15,000

Between 2015 and start of 2019 is 4 years hence

accumulated depreciation at start of 2019

= $15,000 × 4

= $60,000

Net book value = $100,000 - $60,000

= $40,000

If the asset life is to be extended by 3 years, the remaining useful life changes from 2 to 5 years.

New depreciation rate

= (40,000 - 8000)/5

= $6,400

To record this for 2019,

Debit Depreciation expense $6,400

Credit Accumulated depreciation $6,400

The book value of the equipment at the end of 2019

= $40,000 - $6,400

= $33,600

4 0

3 years ago

Sadie owns a hair salon. She gives her hairdressers two options for using her facility, equipment, and salon products: Option

Sonja [21]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

Option 1: they can pay Sadie $5 per haircut plus 20% of their revenue.

Option 2: they can pay a flat chair rental of $1,000 per month.

The hairdressers charge their customers $40 per haircut.

Option1= 5*cut + 8*cut= $13 per cut

Option 2= $1000

1000= 13x

77=x

77 haircuts.

8 0

3 years ago

Bad Debt Expense info:Allowance for Doubtful Accounts has a credit balance of $1,000. Credit sales are $500,000. Cash sales are

kow [346]

Answer:

Bad Debt Expense $24,000 Dr

Allowance for Doubtful Accounts $24,000 Cr

Explanation:

Data:

BB = Beginning Balance = $1,000

CS = Credit Sales = $500,000

CH = Cash Sales = $500,000

SM = Percentage Sales Method = 5% = 0.05

U = Uncollectible = $25,000

AR = Accounts Receivable = $200,000

ADA = Allowance for Doubtful Accounts = ?

Calculations:

ADA = U - BB = $25,000 - $1,000 = $24,000

Net Realizable Cash Value = AR - ADA = $200,000 - $24,000 = $176,000

Balance in the Allowance Account after the adjusting entry = BB + ADA = $1,000 + $24,000 = $25,000

Journal entry:

Bad Debt Expense $24,000 Dr

Allowance for Doubtful Accounts $24,000 Cr

Hope this helps!

8 0

3 years ago

Express the following comparative income statements in common-size percents. (Round your percentage answers to 1 decimal place.)

Mariulka [41]

Answer:

GOMEZ CORPORATION

Comparative Income Statements

For Years Ended December 31

Current Year Prior Year

$ % $ %

Sales $785,000 100 $640,000 100

Cost of goods sold 568,100 72.4 288,800 45.1

Gross profit 216,900 27.6 351,200 54.9

Operating expenses 130,400 16.6 221,600 34.6

Net income $86,500 11.0 $129,600 20.3

The figure used to calculate the percentages is that of sale revenue. Each figure is expressed as a percentage of sales to determine the percent of expenses , profits etc.

5 0

3 years ago

A country opens up to trade and becomes an exporter of wheat. In the wheat market, domestic consumer surplus will ________, dome

Alik [6]

Answer:

The correct option is increase; decrease; increase

Explanation:

First, we will define the following terms:

Consumer surplus
Producer surplus
Total surplus

Consumer surplus refers to the difference between the price that consumers pay and the price that they are willing to pay. Consumer surplus always increases as the price of a good falls and decreases as the price of a good rises. Therefore, in this scenario, as the country exports wheat, more wheat will be available in the market, leading to a fall in price, thereby leading to an increase in consumer surplus.

Producer surplus refers to the difference between how much a producer would be willing to accept for given quantity of a good against how much they can receive by selling the good at the market price. The difference or surplus amount is the benefit the producer receives for selling the good in the market. When prices rise, producer surplus increases, and when price falls, producer surplus decreases. There a decrease in price spurred by more wheat in the market will lead to a decrease in producer surplus.

Total surplus in a market refers to the measure of the total well-being of all participants in a market. Therefore, with more wheat in the market, there will be a drop in price, and consumers will be able to buy more, leading to more supply. This will lead to an increase in total surplus.

7 0

3 years ago