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3 years ago

On January 1, 2019, Oriole Company purchased the following two machines for use in its production process.

Business

1 answer:

Zarrin [17]3 years ago

5 0

Answer and Explanation:

The journal entries are shown below:

1 Equipment $53,420

To Cash $53,420

(Being the equipment is purchased for cash is recorded)

The computation is given below:

= Cash price of machine + sales tax + shipping cost + insurance during shipping + installation and testing cost

= $49,500 + $3,650 + $100 + $60 + $110

= $53,420

2. Depreciation expense $9,614

To Accumulated Depreciation - Equipment $9,614

(Being the depreciation expense is recorded)

The computation is shown below:

= ($53,420 - $5,350) ÷ ( 5 years)

= $9,614

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Sheryls's business sells a single product. The following information was gathered from Sheryls's records: Price $97.00 per unit

VLD [36.1K]

Answer:

12,497 units

Explanation:

Break even unit = Fixed Cost ÷ Contribution per unit

= $400,000 ÷ $97.00 x 33%

= 12,497 units

Sheryls's business need to sell 12,497 units to break even

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3 years ago

16) If the supply of iPads increases, then

trasher [3.6K]

Answer: The market demand curve for soft drinks will shift to the left and the market supply curve will shift to the left as well: equilibrium quantity will decrease and the equilibrium price may rise, fall, or remain the same. The graphs below illustrate this idea.

Explanation:

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3 years ago

During 2021, its first year of operations, Pave Construction provides services on account of $124,000. By the end of 2021, cash

7nadin3 [17]

Answer:

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

Explanation:

During 2021, Pave Construction provides services on account of $124,000. By the end of 2021, cash collections on these accounts total $92,000.

The balance of uncollected accounts on December 31, 2021 = $124,000 - $92,000 = $32,000

Pave estimates that 30% of the uncollected accounts will be uncollectible.

Estimated uncollectible = 30% x $32,000 = $9,600

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

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3 years ago

A government policy that sets the highest price that can be charged for a good or service is a __________.

trasher [3.6K]

Answer:

B. price ceiling.

A government policy that sets the highest price that can be charged for a good or service is a price ceiling.

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3 years ago

Equipment was acquired on January 1, 2019 at a cost of $190,000. The equipment was originally estimated to have a salvage value

Sophie [7]

Answer:

Journal:

Dec. 31, 2022:

Debit Depreciation Expense $18,600

Credit Accumulated Depreciation $18,600

To record depreciation expense for the year.

Explanation:

a) Depreciation charge for each of the 3 years, calculated as ($190,000 - $22,000)/10 = $16,800

2019: $16,800

2020: $16,800

2021: $16,800

Accumulated Depreciation to date = $50,400 ($16,800*3)

b) Book Value on January 1, 2022 = $139,600 ($190,000 - $50,400)

c) New Depreciation charge from 2022 = $18,600 ($139,600 - $28,000) /6 years, the remaining useful life based on the revised estimate.

d) There is adjusting journal entry. Depreciation is an estimate based on judgement and past events. Judgement can change to address current events. So, there is no need adjusting the entries for the previous three years.

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3 years ago