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Pavel [41]
3 years ago
11

Novak Company had the following two transactions related to its delivery truck. 1. Paid $150 for an oil change. 2. Paid $700 to

install a special gear unit, which increases the operating efficiency of the truck.Prepare Novak's journal entries to record these two transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) No Account Titles and Explanation Debit Credit 1. 2.
Business
1 answer:
Lorico [155]3 years ago
6 0

Answer and Explanation:

The Journal entries are shown below:-

1. Maintenance and Repairs Expense Dr, $150

             To Cash $150

(Being cash paid is recorded)

For recording this we debited the maintenance and Repairs Expense as there is increased in expenses and credited the cash as assets are decreased

2) Equipment $700

        To Cash $700

(Being cash paid is recorded)

For recording this we debited the equipment as it increased the assets and credited the cash as assets are decreased

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"Lyla is a little more efficient at making potato soup than Jose. She is a lot more efficient than Jose at making bread. They de
uysha [10]

Answer:

Making bread

Explanation:

Lyta has to specialize in making bread. By specialization, it means that lyta should focus it's productive efforts on making bread, because from the question she clearly has an absolute advantage in making bread Since the question says she is more efficient in making bread compared to the other product. It means she can produce bread in larger quantities at same cost or she can produce same quantity of bread at lower cost.

5 0
3 years ago
Is the U.S. airline industry attractive? Describe Southwest Airlines’ strategy. What are the most important strategic choices? W
MA_775_DIABLO [31]

Answer:

Yes, the US airline Industry is attractive. Southwest Airline's has a unique business model with an efficient operational strategy.

Explanation:

The most important strategic choices for Southwest Airline is a low-cost operational structure that achieves high returns on capital due to a unique

The unique thing about southwest strategy is, the company has good credit rating which has positioned them strategically compared to its competitors.

The components of Southwest's strategy that are VRIO is as follows

!. The management keeps the balance sheet strong by being financially conservative.

2. Investors concentrates on earnings volatility and short term stock prizes

3. They are specific about their staff specifications

4. They are deliberate in their branding and public image.

No, it would not be easy to imitate the strategy like the one they employed to mitigate the tragic incident that occurred seven months ago that had one person killed.

Yes, their strategy is sustainable because it is both cost effective, efficient and produces result.

The threats they are likely to face include

1. Unfavorable Legislation: Regulatory changes in commercial aviation that directly influences their current business model will directly affect their impeccable record.

2. They will be at a disadvantage position if pitted against larger airline companies.

3. Their pilot population is limited.

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From the foregoing, it is evident that southwest has a sustainable business model that should make them become an international airline

7 0
3 years ago
In its first year of operations Acme Corp. had income before tax of $400,000. Acme made income tax payments totaling $150,000 du
sasho [114]

Answer:

$10,000 (Credit balance)

Explanation:

Given that,

Income before tax = $400,000

Income tax payments during the year = $150,000

Income tax rate = 40 percent

Therefore,

The balance in income  tax payable at the end of the year:

= Tax liability - Income tax paid

= ($400,000 × 40%) - $150,000

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= $10,000 (Credit balance)

8 0
3 years ago
When automakers offer special price reductions on all their automobiles during holiday shopping seasons, they are using the ____
ICE Princess25 [194]
Discount pricing strategy
7 0
2 years ago
Landrum Corporation is considering investing in specialized equipment costing​ $250,000. The equipment has a useful life of 5 ye
aalyn [17]

Answer: ARR = Average profit/Initial outlay x 100

               ARR = $19,000/$250,000 x 100

               ARR = 7.60%

The correct answer is C

               

               Depreciation = Cost - Residual value/Estimated useful life

                                       = $250,000 - $20,000/5 years

                                       = $46,000 per annum

               Average profit = Total profit/No of years

                                         = $325,000/5

                                         = $65,000

                                                                       $

              Average profit                           65,000

        Less: Depreciation                           46,000

       Average profit after depreciation   19,000

Explanation: In determining the accounting rate of return of the investment, there is need to calculate depreciation using straight line method. The amount of depreciation would be deducted from the average profit so as to obtain the average profit after depreciation. The average profit would be divided by the initial outlay in order to obtain the accounting rate of return.

5 0
2 years ago
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