Answer:
Asset exchange transaction
Explanation:
Prepaid rent is an asset exchange transaction because cash (asset) is credited while prepaid rent (also an asset) is debited.
Rent paid in advance is recorded as follows:
Dr Prepaid rent
Cr Cash
As the months go by, the prepaid rent is credited and rent expenses is debited.
Dr Rent expense month 1
Cr Prepaid rent month 1
GOVERNMENT SUBSIDIES are long-term, low-interest loans, cash grants, and tax deductions used to develop and protect companies or special industries.
Government subsidies are assistance given by the government to a person or a group of individuals in support of an enterprise that is for the public interest.
Answer:
909.09
Explanation:
Breakeven quantity are the number of units produced and sold at which net income is zero
Breakeven quantity = fixed cost / price – variable cost per unit
$20,000 / 58 - 36 = 909.09
Answer:
The death benefit or cash accumulation will be reduced by the partial withdrawal.
Explanation:
Answer:
A. -$272,638
Explanation:
Firstly, we need to calculate the total present value of initial investment plus all operating cost of the project. Then we will use that amount to solve for equal-amount annual operating cost.
Total present value of the project is -689,000 - 41,000/(1+13%) - 41,000/(1+13%)^2 + ... + 41,000/(1+13%)^4, or -810,953.32 (negative sign mean cost).
So, the equivalent annual cost of an oven is -272,638.
The equation solving problem can be made easily using Excel or BA II plus calculator.
