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notka56 [123]
4 years ago
11

Wendy leaves her job as a dancer to start her own dance studio. As a dancer, she made $34,000 per year. During the studio's firs

t year she paid $4,300 per year for insurance, $1,846 for music and licensing fees, $150 for a boom box, and $11,300 for rent and utilities. She received $60,480 in tuition payments. Wendy's economic profit was:_______.
Business
1 answer:
brilliants [131]4 years ago
4 0

Answer:

$8,884

Explanation:

The computation of the economic profit is shown below:

= Received amount - dance earnings - insurance paid - music and licensing fees - boom box - rent and utilities

= $60,480 - $34,000 - $4,300 - $1,846 - $150 - $11,300

= $8,884

The economic profit is come from subtracting the explicit cost, implicit cost from the revenue earned and the same is reflected above

You might be interested in
The Landry Company has developed standards for labor. During June, 69 units were scheduled and 100 were produced. Data related t
kupik [55]

Answer:

$25 favorable

Explanation:

(standard\:rate-actual\:rate) \times actual \: hours = DL \: rate \: variance

std rate           $ 3.40

actual rate   $ 3.30  (825 total cost / 250 labor hours)

actual hours 250

(3.4-3.3) \times 250 = DL \: rate \: variance

difference  $0.10

250 x 0.1 = rate variance

rate variance  $25.00

The diference between the actual cost per hour of the employee and the standard we considered is positive, it cost less to have the employee working on the product. the variance is favorable.

7 0
3 years ago
The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7. StoreAll Inc.
VMariaS [17]

Answer:

The correct answer is option A.

Explanation:

The average cost of production for a bottle of vitamin water in the industry is $4 while its average price is $7.

StoreAll Inc. manufactures the same product for $3 per bottle and sells it for $7 per bottle.

The store Inc manufacturers is able to produce at a lower cost than the other firms. This implies that it has a competitive advantage in the production of mineral water.

Competitive advantage refers to the conditions that help a firm outperform its competitors.

8 0
3 years ago
Gibson Energy Ltd.’s general ledger account for Cash in Bank showed the following at December 31, 2019:
viktelen [127]

Answer:

1. Adjusted cash balance = Adjusted bank statement balance = $133,620.

2. See the adjusting journal entries and explanation in part 2. below.

Explanation:

Note: The data in the question are merged and they are first sorted in the attached excel file before the questions are answered as follows:

1. Complete the bank reconciliation at December 31, 2019.

The bank reconciliation is presented in two ways as follows:

<u>a) Starting with cash book balance</u>

Gibson Energy Ltd.

Bank Reconciliation  

at 31 December 2019  

<u>Particulars                                                                  Amount ($)    </u>

Cash book bal. at 31 Dec. yet to be reconciled          62,000

Add:

Collected note receivable from XYZ Corp                  80,000

Less:  

Dishonored NSF check                                                 (7,000)

Overdraft interest expense                                            (1,320)

Bank service charge                                                 <u>         (60)   </u>

Adjusted cash balance at Dec 31                           <u>   133,620   </u>

<u>b) Starting with bank statement balance</u>

Gibson Energy Ltd.

Bank Reconciliation  

at 31 December 2019  

<u>Particulars                                                                       Amount ($)    </u>

Bank statement bal. at Dec 31 yet to reconciled              131,620

Add:  

Cash deposited on December 9th yet be credited          85,000

Cash deposited on December 31 yet be credited            15,000

Check #52094 wrongly drawn                                           62,000

Less:

Outstanding checks 233                                                    (83,000)

Outstanding checks 239                                                <u>    (77,000)   </u>

Adjusted bank statement balance at Dec. 31             <u>     133,620   </u>

2. Prepare the adjusting journal entries required to make the Cash in Bank account in the general ledger agree with the adjusted cash balance on the December 31 bank reconciliation. Include descriptions.

<u>Date      Accounts title & explanation              DR ($)           CR ($)  </u>

31 Dec 19    Cash                                                80,000  

                   Note Receivable                                                     78,049

                   Interest on note receivable                                       1,951

<em><u>                   (To record note receivable & int. collected from XYZ)     </u></em>

31 Dec 19   Overdraft interest expense                1,320

                  Service charge                                        60

                  Cash                                                                           1,380

<em><u>                    (To record interest expense and bank charges)                   </u></em>

31 Dec 19   Account Receivable                           7,000

                    Cash                                                                           7,000

<em><u>                   (To record NSF check dishonored)                                       </u></em>

Download xlsx
3 0
3 years ago
Prior to June 30, a company has never had any treasury stock transactions. A company repurchased 100 shares of its $1 par common
Viktor [21]

Answer:

June 30, repurchase of 100 shares:

Dr Treasury stock 4,000

    Cr Cash 4,000

Explanation:

The other journal entries should be as follows

July 20, resale of 50 shares:

Dr Cash 2,300

    Cr Treasury stock 2,000

    Cr Additional paid in capital 300

August 1, resale of 20 shares:

Dr Cash 760

Dr Additional paid in capital 40

    Cr Treasury stock 800

3 0
3 years ago
An accounting clerk for Chesner Co. prepared the following bank reconciliation:
cricket20 [7]

Answer:

A. Adjusted balance $17,760

Adjusted balance $17,760

B. $17,760

Explanation:

A. Preparation of a new bank reconciliation for Chesner Co.

Cash balance according to bank statement l

$14,220

Add Deposit in transit on August 31 $6,690

Deduct Outstanding checks $3,150

Adjusted balance $17,760

Cash balance according to company's records $6,570

Add Error by Chesner Co. in recording Check No. 1056 as $820 instead of $280 540

Add Note for $10,300 collected by bank, including interest 10,710

Less Bank service charges 60

Adjusted balance $17,760

B. Based on the above bank reconciliation If a balance sheet were prepared for Chesner Co. on July 31, 2016 the amount that should be reported for cash is $17,760

From the data prepared by the accounting clerk,

b. If a balance sheet were prepared for Chesner Co. on July 31, 2016, what amount should be reported for cash?

5 0
3 years ago
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