Answer:
Annual Depreciation expense = $15695.7692 rounded off to $15695.77
Explanation:
We first need to calculate the cost of the equipment. The cost at which an equipment or asset should be recorded should include all the costs incurred to bring the asset into the place and condition necessary for its use as intended by the management. Thus the cost of the equipment will be,
Cost = 165891 + 42172
Cost = $208063
Now we can calculate the depreciation expense per year based on the straight line depreciation method using the following formula,
Annual Depreciation expense = (Cost - Salvage Value) / Estimated useful life
Annual Depreciation expense = (208063 - 4018) / 13
Annual Depreciation expense = $15695.7692 rounded off to $15695.77
Answer:
a. Journal entries to record the reinstatement of the account receivable
Account Title and Description Debit Credit
Account receivable account $600
Allowance for Doubtful Accounts account $600
(Reinstatement of the account receivable)
b. Journal entries to record the receipt of cash
Account Title and Description Debit Credit
Bank Account $600
Account receivable account $600
(Receipt of cash)
Answer:
A) variable costing
Explanation:
acording to a citated text the variable costing excluded all fixed manufacturing costs is the Variable costing
Answer:
The correct answer is accounting profit is positive.
Explanation:
Economic profits are the difference between the total revenue earned by selling the goods and total costs incurred in the production process. It includes both implicit as well as explicit costs.
The explicit costs are the direct costs incurred in the production process. There is an actual payment involved.
The implicit costs are the indirect costs incurred. They are generally the opportunity cost of sacrificing the alternative option. There is no actual payment involved.
The accounting profits include only explicit costs incurred in the production process. It is the difference between total revenue earned and explicit cost.
A normal profit means zero economic profits. But accountable profits is higher than economic profits, so there will be some positive accountable profit.
<span>The statement "A 15-year mortgage typically requires higher monthly payments than a 30-year mortgage but the total interest over the life of the loan will be less" is true.
The statement "Buying a single company's stock usually provides a safer return than a stock mutual fund" is true.</span>
