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Varvara68 [4.7K]
2 years ago
14

On January 1, a company purchased equipment that cost $10,000. The company has not yet recorded depreciation, which is estimated

at $1,800 per year. The company will prepare financial statements at the end of January. Complete the necessary adjusting entry by selecting the account names and dollar amounts from the drop-down menus.
Business
1 answer:
finlep [7]2 years ago
3 0

Answer:

The adjusting entry is:

Debit Depreciation Expense - Equipment $1,800

Credit Accumulated Depreciation - Equipment $1,800

To record depreciation expense.

Explanation:

The adjusting journal entry records the depreciation expense for the year and adds the expense to the accumulated depreciation account.  The accumulated depreciation account is a contra account to the Equipment account.  The purpose that this contra account serves is to keep the Equipment account at its cost value while the gradual write-off of its value is reflected in an opposite account.

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Suppose there exists a market for coffee that is in equilibrium at 500 cups brewed per week for $3/cup. Now suppose the demand f
Anton [14]

Answer:

Increase in Substitute good price , Decrease in Complementary Good price, Fall in Income , Taste & preferences change in favour of good.

Explanation:

Demand is the ability & willingness of consumer to buy a product at a price , period of time.

There are four factors affecting Demand with following relationships with it : Price of Good (inversely related) , Price of related goods (substitutes-directly related) & (complements-inversely related), Income (directly related) , Taste & preferences (depends).

Any Change in 'Quantity Demanded' due to change in good's own price leads to movement on the demand curve (contraction or expansion). Any 'Change in Demand' due to factors other than price shifts the demand curve (rightwards or leftwards).

So : Increase in substitute good's price (eg- tea) price makes coffee relatively cheaper, Decrease in complementary good's price (eg - sugar/milk) makes coffee altogether cheaper, taste & preference change in favour of coffee consumption (eg- people learning advantages of caffaine consumption). All these mentioned Increase the Demand for coffee & shifts its curve rightwards.

7 0
3 years ago
Edwards Auto Body uses a job order cost system. Overhead is applied to jobs on the basis of direct labor hours. During the curre
-BARSIC- [3]

Answer:

C) $6.40 per direct labor hour.

Explanation:

The overhead application rate is used to estimate the manufacturing overhead for a specific project or reporting period.

overhead application rate = direct labor cost per hour / (total direct labor costs / total overhead costs)  

overhead application rate = $16 / ($475 / $190) = $16 / $2.50) = $6.40

7 0
3 years ago
Puritan Corp. reported the following pretax accounting income and taxable income for its first three years of operations: 2017 $
dangina [55]

Answer:

Net loss in 2018 reported in Puritan’s income statement = $360,000

Explanation:

Net Loss:

Net loss is the amount by which a company's total costs are more than its total sales during a particular period.

Formula:

Net loss = -taxable income + Income tax benefit

As taxable income for 2018 = $600,000 and Puritan's tax rate is 40% for all years

Therefore by putting the values in the above formula, we get

Net loss in 2018 in Puritan’s income statement = -$600,000 +  ($600,000 * 40%)

Net loss in 2018 reported in Puritan’s income statement =  -$600,000 + 1500000

Net loss in 2018 to be reported in Puritan’s income statement = $360,000

3 0
3 years ago
7. Choose if the product is a Good, a Service, or Both.
Papessa [141]

Answer:

1 buying a bicycle it's a good

2 getting a back message it's a service

3 getting the plumbing fixed in your house it's a service

4 use of a smartphone app it's a service

5 buying a new Ac unit for your house it's a service

6 buying a hamburger it's a good

7 getting your taxes completed by a tax firm it's both

5 0
2 years ago
E-Flix rents DVDs that are mailed out to customers upon demand. E-Flix has identified three activities involved in getting the v
bulgar [2K]

Answer:

b. $1.87

Explanation:

Number of order taking costs = $20,592

Number of orders = 187,200

Cost of activity

= $20,592 ÷ 187,200

= $0.11

The Statement of overhead allocated is given below:-

Number of orders = 17

Cost per activity = $0.11

Cost

= 17 × $0.11

= $1.87

Therefore, the overhead is applied to the Tucker family account for order taking costs $1.87

8 0
3 years ago
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