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4 years ago

If a company uses $1,300 of its cash to purchase supplies, the effect on the accounting equation would be:

Business

1 answer:

Over [174]4 years ago

7 0

Answer:

no impact

Explanation:

The journal entry to purchase the supplies for cash

Supplies Dr $ 1,300

To Cash A/c $ 1,300

(Being the purchase of supplies is recorded)

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

Therefore there is no impact on the accounting equation

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You are setting up a part-time business with an initial investment of $27,000. The unit cost of the product is $11.30, and the s

Oksanka [162]

Answer:

A. The function to express the cost is:

C(X) = $11.3*X + $27,000

The function to express the revenue is:

R(X) = $18.8*X

B. The break-even point is obtained for 3600 units

C. It is needed 3734 units to yield a profit of $1,000.

Explanation:

The expression for the cost of bussines is obtained by adding the initial investment to the cost of production of X units:

C(X) = $11.3*X + $27,000

Meanwhile the revenue for selling X is units is represented as:

R(X) = $18.8*X

Then the break-even point is found by equalling C(X) with R(X):

R(X) = C(X)

$18.8*X = $11.3*X + $27,000

$18.8*X - $11.3*X = $27,000

$ 7.5*X = $27,000

X = $27,000 / $7.5

X = 3,600 units

The profit of the bussines P(X) can be expressed sustracting the cost C(X) to the revenue R(X):

P(X) = R(X) - C(X)

P(X) = $18.8 * X - ($11.3*X + $27,000)

Equalling the profit to $1000 we will find the amount of units for selling:

$1,000 = $18.8*X - ($11.3*X + $27,000)

$1,000 = $18.8*X - $11.3*X - $27,000

$1,000 = $7.5*X - $27,000

$1,000 + $27,000 = $7.5*X

$28,000 = $7.5*X

$28,000 / $7.5 = X

X = 3734 units

4 0

3 years ago

Multiple choice.

klio [65]

Answer:

1 d

2 c

3 a

4 b

5 c

6 a

7 b

8 d

9 a

10 a

8 0

3 years ago

What is prohibited in a command economy ?

Alex787 [66]

A command or planned economy occurs when the government controls all major aspects of the economy and economic production. In a command economy, it is the government that decides what to produce, how to produce goods and how to distribute goods and services within the economy

7 0

4 years ago

An insurance company is obligated to pay a policyholder $500 in one year and $2,000 in 3 years. The insurance company has decide

vladimir2022 [97]

Answer:

The total cost of establishing the portfolio is $2054.95.

Explanation:

The present value of a bond is given as

$PV=FV\times\dfrac{1}{(1+r)^n}$

For 1 year zero-coupon bond is

FV is 500
r is 7% or 0.07
n is 1

So the value is

$PV=FV\times\dfrac{1}{(1+r)^n}\\PV=500\times\dfrac{1}{(1+0.07)^1}\\PV=500\times\dfrac{1}{(1.07)}\\PV=500\times0.9346\\PV=\$ 467.29$

Similarly, for 3 years zero-coupon bond is

FV is 2000
r is 8% or 0.07
n is 3

So the value is

$PV=FV\times\dfrac{1}{(1+r)^n}\\PV=2000\times\dfrac{1}{(1+0.08)^3}\\PV=2000\times\dfrac{1}{(1.08)^3}\\PV=2000\times0.7938\\PV=\$ 1587.66$

So the total cost is

Total Cost=Cost of 1-year zero-coupon bond+Cost of 3-years zero-coupon bond

Total Cost=$ 467.29+$ 1587.66

Total Cost= $ 2054.95

So the total cost of establishing the portfolio is $2054.95.

6 0

3 years ago

A company reports merchandise inventory on December 31 at $250,000 but LCM applied to items is $200,000.Record the journal entry

ahrayia [7]

Solution:

In order to record the merchandise inventory on LCM with the correct amount, the following Journal entry will be passed in the books of account:

Date account and explanation debit credit

Dec 31 The cost of goods sold (250000-200000) 50000

Merchandise inventory 50000

(To record inventory on LCM)

Therefore, the cost of goods sold will be debited with an amount of $50000 and the Merchandise inventory will be credited with the same amount of $50000.

4 0

3 years ago