Answer:
Please see below
Explanation:
Jan 2.
Dr Cash $13,100
Cr Owner equity $13,100
(Being owner's capital contribution to the business in form of cash)
Jan 3.
Dr Vehicle $3,930
Cr Cash. $3,930
(To record the purchase of used car in form of cash)
Jan 9
Dr Supplies. $655
Cr. Accounts payable $655
(To record supplies purchased on account )
Jan 16
Dr Account receivable $3,144
Cr Revenue $3,144
(Being the record of revenue earned on credit)
Jan 16
Dr Advertising expenses $459
Cr Cash $459
(Being the record of advertising expenses paid in cash)
Jan 20
Dr Cash. $917
Cr Account receivable $917
(Being the record of partial collection receivables)
Jan 23
Dr Account payables $393
Cr Cash $393
(Being the record of payment made to creditors)
Jan 28
Dr. Owner equity $1,310
Cr. Cash $1,310
(To record owner's withdrawal of capital in form of cash)
Answer: $7200
Explanation:
From the question, we are informed that most home insurance policies cover jewelry for $1,000 and silverware for $2,500 unless items are covered with additional insurance. If $4,700 worth of jewelry and $6,000 worth of silverware were stolen from a family.
The amount of claim that would not be covered by the insurance will be:
= ($4,700 - 1,000) + ($6,000 - 2,500)
= $3,700 + $3,500
= $7,200
Answer:
S/N ACCOUNT DEBIT CREDIT
1 Equipment $22,000
Cash $22,000
Being payment for new component expected to increase the
equipment’s productivity by 10% a year
2. Equipment Repairs expenses $6,250
Cash $6,250
Being payment for equipment repair
3. Equipment $14,870
Cash $14,870
Being payment for equipment repair to prolong the useful life
the asset
Explanation:
The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.
Capitalization is the recognition of an expense as an asset in the balance sheet rather than expenses in the income statement.
The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is expected to increase the equipment’s productivity by 10% a year.
The $6,250 paid for normal repair is a revenue items which is to be expensed against the earning of that period.
The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.
Answer:
C
Explanation:
<em>A breach of contract occurs when one of the parties to a contract decides not to honor all or some of the terms spelled out in the contract. In other words, a breach of contract occurs when actionable terms in the contract are neglected by one of the parties to the contract.</em>
The actionable term in the contract signed by both Diary Farm and EZ Serve Ice Cream Company is for Diary Farm to supply milk to EZ Serve Ice Cream Company. <u>Hence, not supplying milk as agreed represents a breach of the contract, all other things being equal.</u>
Correct option: C
Answer:
B
Explanation:
Payback period is the total time it takes an organization to recover the initial capital incurred in acquiring an asset.
It is expressed in years and fraction of years.
Initial investment 20,000
Year 1 3000 17000
Year 2 8000 9000
Year 3 15,000
9000/15000= 0.6 years
The payback period = 2.6 years
