Answer:
Productivy would go up only as long as some of the workers can become competent managers.
Explanation:
The problem with worker ownership of the means of production (the firm), which is what socialism is about, is that workers do not necessarily have managerial skill, and as result, are likely to be unable to run the company efficiently.
In case this does not happen, and the workers manage to run the company well, GDP would increase because productivity in the firm would rise. Inflation would likely fall down because more productivity means more output of goods and services, and inflation tends to have a inverse relationship with output (although it also depends on other variables like the rate of growth of the money supply).
Finally, another macroeconomic variable that would positively affected is employment rate, because a more efficient company would likely require new workers.
Answer:
Paradise Travel Service
Balance Sheet as of May 31, 20Y6:
Assets:
Cash $52,000
Accounts receivable 38,000
Supplies 3,000
Land 450,000
Total assets $543,000
Liabilities and Equity:
Accounts payable 18,000
Common Stock 100,000
Retained Earnings 425,000
Total liabilities and
equity $543,000
Explanation:
a) Data and Calculations:
Paradise Travel Service
Income Statement for the year ended May 31, 20Y6:
Fees earned $900,000
Office expense 300,000
Miscellaneous expense 15,000
Wages expense 450,000
Total expenses 765,000
Net Income $135,000
Statement of Retained Earnings for the year ended May 31, 20Y6:
Retained Earnings, June 1, 20Y5 $300,000
Net Income 135,000
Dividends 10,000
Retained Earnings, May 31, 20Y6 $425,000
b) The balance sheet shows the balances of assets, liabilities and equity at the end of an accounting period. It derives its name from the accounting equation, which states that assets = liabilities + equity. This equation implies that the two sides always balance each other.
Answer:
Total profit for week = $57360
Explanation:
To calculate the profit for one-week period, we first need to calculate the revenue for one week period based on the given occupancy.
We will first calculate the revenue for every day and add it to calculate the revenue for the week.
Sunday = 60 * 80 + 90 * 64 + 50 * 48 => $12960
Monday = 60 * 80 + 90 * 64 + 50 * 48 => $12960
Tuesday = 60 * 80 + 90 * 64 + 50 * 48 => $12960
Wednesday = 60 * 80 + 90 * 64 + 50 * 48 => $12960
Thursday = 60 * 80 + 90 * 64 + 50 * 48 => $12960
Friday = 50 * 48 + 130 * 56 => $9680
Saturday = 50 * 48 + 130 * 56 => $9680
Total revenue for one week = 12960 * 5 + 9680 * 2 => $84160
To calculate the profit, we will first calculate the total cost.
Total cost = 20000 + (5 * 200 * 5 + 5 * 180 * 2)
Total cost = $26800
Total profit for week = 84160 - 26800
Total profit for week = $57360
Answer:
1. Determine the amount of the adjusting entry for uncollectible accounts. $850
Dr Bad debt expense 850
Cr Allowance for doubtful accounts 850
2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense.
- accounts receivable $430,000
- allowance for doubtful accounts $4,850
- bad debt expense $4,850
3. Determine the net realizable value of accounts receivable.
- $430,000 - $4,850 = $425,150
Explanation:
accounts receivable balance $430,000
allowance for doubtful accounts balance $4,000
total sales for the year $1,940,000
total bad debt expense = 0.25% x $1,940,000 = $4,850
adjusting entry = $4,850 - $4,000 = $850
