Explanation:
The adjusting journal entry to record the given adjustment is shown below:
At the year-end
Insurance expense A/c Dr. A/c $800
To Prepaid Insurance A/c $800
(Being insurance expense is recorded)
The computation is given below:
= Prepayment done for 6 months insurance policy - expired insurance
= $1,200 - $400
= $800
Answer:
-The technology that is available for the market.
- The nature of the products
Explanation:
Latest technology often able to produce larger amount of products with significantly lower time. This will help reduce the overall cost of production in the long run. Business owner need to consider this and calculate whether the initial investment that needed to be made to install the technology will worth the value in the long run.
Nature of the products consisted of all the characteristics that our products process. For example food products tend to not have a long shelf life unlike fashion product. This difference in characteristics influence the type of production method that business owners could implement.
For example, It is impossible for business owners to mass produce produce food products with the expectation that it can maintain their quality in the warehouse, but producer of fashion products could make that expectation.
Answer:
False
Explanation:
Natalie can return the washing machine without being liable for any replacement costs. Natalie is a minor, and minors cannot legally sign a contract except for purchasing necessities, e.g. food, clothes.
Since the washing machine probably had a significant cost, there should have been a written contract between the parties. The rental company should have requested Natalie some type of legal identification before renting the washing machine and signing the contract. Their only possible defense is that Natalie used a forged ID when she rented the machine, and that they were ticked by it.
But if the rental company cannot prove that Natalie tricked them using some fake ID, then Natalie has the right to void the contract and return the item. It doesn't matter if the washing machine suffered damages or not, Natalie is not liable for any reparation or replacement costs.
Answer:
(1) $19,500
(2) $142,000
(3) $27,000
(4) $15,000
Explanation:
Depreciation is the systematic allocation of the cost of an asset to the p/l over the useful life of the asset. It may be computed as
Depreciation = (cost - salvage value)/useful life
Annual depreciation = ($220,000 - $25,000)/10
= $19,500
4 years later
Carrying amount of the equipment
= $220,000 - 4 * $19,500
= $220,000 - $78,000
= $142,000
If the asset is impaired
An asset is said to be impaired when the carrying amount is higher than recoverable amount where the recoverable amount is the higher of the fair value less cost to sell or the value in use of the asset which is the present value of the future expected inflow from the use of the asset.
Value in use = $115,000
Fair value = $85,000
Value in use = $115,000
Impairment loss = $142,000 - $115,000
= $27,000
Remaining number of years is 6
New carrying amount = $115,000
the annual depreciation expense = ($115,000 - $25,000)/6
= $90,000/6
= $15,000
Answer:
d. All of the above are correct.
Explanation:
- If the current price exceeds equilibrium price, suppliers are willing to sell more units than in equilibria conditions (Qs in the picture below) , and consumers are willing to buy less units than in equilibria conditions (Qd in the picture below), as shown in the graph that has been attached.
- Then, quantity supplied is greater than quantity demanded (Qs>Qd).
- Equilibrium quantity (Q* in the picture) exceeds quantity demanded at $30 price (Qd in the picture), which is related to the decreased in quantity demanded when prices increases: in equilibrium prices are lower than $30, then consumers are willing to buy more.
- Because quantity supplied is greater than quantity demanded, there is a surplus of blue jeans at $30 price (the different between the amount that consumers are willing to buy and the amount suppliers are willing to sell is positive, and its magnitude equals the surplus of blue jeans).
- See picture attached.
