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Natali [406]
3 years ago
14

On July 1, 2019, Sheffield Corp. pays $20,700 to Kalter Insurance Co. for a 3-year insurance contract. Both companies have fisca

l years ending December 31. For Sheffield Corp., journalize and post the entry on July 1 and the annual adjusting entry on December 31. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)
Business
1 answer:
11111nata11111 [884]3 years ago
3 0

Explanation:

The journal entries are as follows:

On July 1

Prepaid Insurance A/c Dr $20,700

           To Cash A/c $20,700

(Being prepaid insurance is paid)

On December 31

Insurance expense A/c Dr $

          To Prepaid insurance A/c $1,110

(Being the insurance expense is recorded)

The insurance expense is shown below:

= $20,700 ÷ 3 years × 6 months ÷ 12 months

= $3,450

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cost variance Tercer reports the following for one of its products. Direct materials standard (4 lbs. @ $2 per lb.) $ 8 per fini
maksim [4K]

Answer:

Total direct materials cost variance is $66,000 and it is favorable.

Explanation:

Actual cost = Actual Quantity × Actual Price

= 300,000  × $1.78

= $534,000

Actual cost with selling price = Actual Quantity  × Selling Price

= 300,000  × $2.00

= $600,000

The total direct materials cost variance is computed as:

Total direct materials cost variance = Actual cost with selling price - Actual Cost

= $600,000 - $534,000

= $66,000

It is favorable.

Working Note:

Actual Price per lbs = $534,000 / 300,000

= $1.78

8 0
3 years ago
MONEY Deanna and Lise are playing games at the arcade. Deanna started with $15, and the machine she is playing costs $0.75 per g
goblinko [34]

Answer:

The answer is: after 8 games

Explanation:

You can solve this problem in two ways:

                                        Deanna                        Lise

Start with                            $15                            $13

After 1 game                      $14.25                       $12.50

After 2 games                   $13.50                       $12.00

After 3 games                   $12.75                        $11.50

After 4 games                   $12.00                        $11.00

After 5 games                   $11.25                         $10.50

After 6 games                   $10.50                        $10.00

After 7 games                    $9.75                         $9.50

After 8 games                   $9.00                        $9.00

Or you can solve this equation:

= (price of arcade D - price of arcade L) / (Deanna's money - Lise's money)

= ($0.75 - $0.50) / ($15 - $13) = $0.25 / $2 = 8

7 0
3 years ago
Which of the following accounts are normally reported as current liabilities on a classified balance sheet?
IRISSAK [1]

Answer:

d. Income Taxes Payable and Salaries Payable

Explanation:

Current liabilities are short term obligations of an entity due for repayment within a period of 12 months.

From the options given d. Income Taxes Payable and Salaries Payable both presents current liabilities.

7 0
3 years ago
According to liquidity preference theory investment spending would rise if the price level
ANTONII [103]

Answer:

A.rose making the interest rate fall

Explanation:

According to the liquidity preference theory developed by John Keynes, if the money supply rises, price level also rises, interest rate falls. If interest rate falls, the price of bond rises which would increase capital gains. People would prefer to hold bonds instead of money, therefore, investment spending would rise.

The liquidity preference theory states that we hold money for transactive, speculative and precautionary motives.

4 0
3 years ago
Why do some workers lose their job when the minimum wage is​ increased?
Julli [10]
The company can't afford to pay their employees. If you have 100$ you can have ten people working for 10$ an hour and pay everyone for one hour. You can't have 10 people getting paid 20$ because the company would lose money. So if they are paid 20$ per hour, the company can only afford to hire 5 employees. 
4 0
3 years ago
Read 2 more answers
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