Based on the amount paid by Olive Company for the two year period, the adjusting entry on December 31 would be a debit to an expense and a credit to prepaid expense for $2,050.
<h3>What would be the adjusting entry?</h3>
Based on the accrual method, only costs for the year can be recorded as expenses.
If any costs are for other periods, those costs would be credited to prepaid expenses.
The expense for this year for management services would be:
= Number of months from July to December x Amount paid / number of months in contract
= 6 months x 8,200 / 24 months
= $2,050
In conclusion, expenses will be debited $2,050.
Find out more on prepaid expenses at brainly.com/question/9270086.
Answer:
A) $0, no cash paid in 2016, both interest and principal were paid on March 31, 2017.
B) = [($90,000 x 8%) / 12] x 3 months = ($7,200 / 12) x 3 = $600 x 3 = $1,800
C) = $90,000 + $1,800 = $91,800
D) = ($600 x 6 months) + $90,000 = $3,600 + $90,000 = $93,600
E) = $600 x 3 months = $1,800
Answer:
The correct answer is B
Explanation:
Controllable cost is the one which can be altered or changed in the short term and it is considered to be controllable when the decision incur it reside with the person. But if the cost is imposed by the third party on the organization, will not be considered as the controllable cost.
So, it is that cost which is directly influenced by the manager within a stated period of time.
Answer:
set above the equilibruim price
