Answer: See explanation
Explanation:
The appropriate entries for Maywood on January 1, 2021 and December 31, 2021, related to the lease goes thus:
January 1, 2021:
Debit Right of use asset $368291
Credit Lease payment $368291
December 31, 2021:
Debit Ammortization expense $92073
Credit Rights of use asset $92073
Debit Interest expense $25780
Debit Lease payable $78220
Credit Cash $104000
The working to the above entries has been attached
Yes, I have.
“confused problems with symptoms" refers to a situation when we see the side effect of a problem as the most crucial thing to handle rather than the core of the problem itself.
For example, let's say that you cannot find fit clothings because you're overweight. If your solution to this problem is to write a letter of complain to the company and demanding so they could produce suitable sized clothing for you (rather than losing weight), You're confusing problems with the symtoms.
Answer:
A decrease in inventory
Explanation:
Inventory refers to the finished goods that a company has in its warehouse, and are meant of sale. The value of inventory is recorded as a current asset. If sold on a cash basis, it converts to cash or account receivable if sold on credit.
A reduction in inventory signals that some sales transaction has happened. A sale contributes directly to the net come income of a business. Sales generate or increase cash to the business. Its a cash inflow in the cash flow statement. Reduction in inventory is, therefore, an indirect communication in the increase of net income.
D: Debit withdrawals; credit cash.
Answer:
Location 1
Payback period
= Cash outflow/Cash inflow
= $255,000/$51,000
5 years
Location 2
Year Cashflow Cumulative cashflow
$ $
0 (255,000) (255,000)
1 82,000 (173,000)
2 61,000 (112,000)
3 41,000 (71,000)
4 33,000 (38,000)
5 20,000 (18,000)
6 18,000 0
7 89,000
8 64,000
Payback period = 6 years
Explanation:
In location 1, we will divide the initial outlay by the annual cash inflows in order to obtain the payback period since the cash inflows are constant
In location 2, we deduct the initial outlay from the cashflow for each year until the cash inflow is fully recovered.