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makkiz [27]
4 years ago
13

Paid $40,000 cash to replace a motor on equipment that extends its useful life by four years. Paid $200 cash per truck for the c

ost of their annual tune-ups. Paid $175 for the monthly cost of replacement filters on an air-conditioning system. Completed an addition to a building for $225,000 cash. 1. Classify the above transactions as either a revenue expenditure or a capital expenditure. 2. Prepare the journal entries to record transactions a and d.
Business
1 answer:
Oksi-84 [34.3K]4 years ago
8 0

Answer and Explanation:

1. Event Nature of expenditure

The capital expenditure is the expenditure which is incurred for one time or we can say it is spent on long term assets. While on the other hand, the revenue expenditure is expenditure  which is incurred on frequent basis

Based on this, the treatment is as follows  

i. Capital expenditure

ii. Revenue expenditure

iii. Revenue expenditure

iv. Capital expenditure

2. The Journal entry is shown below:-

a. Equipment Dr, $40,000

             To Cash $40,000

(Being replacement of compressor is recorded)

Here we debited the equipment as it increased the assets and we credited the cash as  it decreased the assets

b. Building Dr,  $225,000

                 To Cash $225,000

Here we debited the equipment as it increased the assets and we credited the cash as  it decreased the assets

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Global location decisions are made to optimize the performance of the supply chain and be consistent with the firm's competitive
Flura [38]

Answer:

True

Explanation:

Supply Chain Management is the integrated management of material, information and money flow that enables the customer to reach the right product at the right time, at the right place, at the right price, at the lowest possible cost for the entire supply chain. In other words, creating strategies and business models that will increase customer satisfaction by integrating the basic business processes in the chain. A supply chain is a set of relationships and links that enable the movement of products between suppliers, manufacturers, wholesalers, distributors, retailers and ultimately consumers. It covers all successive rings from the procurement stage of goods and services to production and delivery to the final consumer. In terms of business processes, supply chain; sales process, production, stock management, material supply, distribution, procurement, sales forecasting and customer service.

Consequently, the location is the one of the most important factors of supply chain in the profitability terms. If the company is on the perfect location in the meaning of proximity to customers, or other supply channels it would be great asset for the firm or company. That's why it is pretty important for companies in the global markets to make decisions about the location. Of course, this will optimize the performance of supply chain and make consistent with the firm's or company's competitive strategy.

5 0
4 years ago
Indicate whether these receivables are reported as accounts receivable, notes receivable, or other receivables on a balance shee
kumpel [21]

Answer:

Indicating how each receivable is reported on the balance sheet:

(a) Advanced $10,000 to an employee = Other Receivable

(b) Received a promissory note of $34,000 for services performed = Notes Receivable

(c) Sold merchandise on account for $60,000 to a customer = Accounts Receivable

Explanation:

The advance to an employee is reported as Other Receivable, while the credit sale to a customer is reported as an Accounts Receivable.  Finally, the promissory note received from a client for services rendered on credit is reported as Notes Receivable.  This classification of receivables shows the true nature of the underlying transactions.

3 0
3 years ago
The era in marketing history characterized by the notion that the consumer is king is known as the ________ era.
marta [7]

Answer:

The Selling Era

Kotler refers to this as businesses "selling what they make, rather than making what the market wants to buy." ... Selling-era tactics can be risky for companies, as the hard sell can turn off consumers, perhaps even push them into the arms of a competitor.

Explanation:

6 0
3 years ago
may be used when the shipped goods are minerals in short supply, or when the product has been heavily subsidized by the governme
stiks02 [169]

Answer:

may be used when the shipped goods are minerals in short supply, or when the product has been heavily subsidized by the government

Explanation:

Export taxes are imposed by the government to earn revenues. There are certain conditions which are applied when taxing imports and exports. In the above scenario, the correct option is, import tax may be imposed when the shipped goods are minerals that too in small quantity or when the product is subsidies by the government.

3 0
3 years ago
Last year, you purchased a stock at a price of $64.00 a share. Over the course of the year, you received $2.20 per share in divi
Alecsey [184]

Answer:

8.55%

Explanation:

Calculation to determine your approximate real rate of return on this investment

First step is to calculate the Nominal return

Nominal return = ($69 - $64+ $2.20)/$64

Nominal return=7.2/$64

Nominal return= 0.1125

Now let calculate the Approximate real return

Approximate real return = 0.1125 - 0.027

Approximate real return= 0.0855*100

Approximate real return=8.55%

Therefore your approximate real rate of return on this investment is 8.55%

7 0
3 years ago
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