Answer:
The Journal entries are as follows:
(1)
Equipment A/c Dr. $71,890
To cash $3,790
To accounts payable $68,100
(To record the purchase of equipment)
Workings:
Equipment value:
= Purchase price + Sales tax + Freight charges for shipment of equipment + Installation of equipment
= 64,000 +4,100 + 890 + 2,900
= $71,890
Cash Paid:
= Freight charges for shipment of equipment + Installation of equipment
= 890 + 2,900
= $3,790
Accounts payable = Purchase price + Sales tax
= 64,000 +4,100
= $68,100
(2)
Prepaid Insurance A/c Dr. $1,090
To cash A/c $1,090
(To record any expenditures not capitalized in the purchase of equipment)
The descriptions to cases that will possibility be addressed by a Trial Balance are:
- can detect the accuracy of the accounting process(possible)
- can help check whether the debit side is equal to the credit side(possible)
- can help prepare the income statement(possible)
- helps serve as a proof of the application of the double-entry system(not possible)
- can help check whether a particular transaction has been completely omitted(not possible)
<h3>What is trial balance?</h3>
A trial balance can be regarded as bookkeeping worksheet which contains the ledger that is arranged into debit and credit account column .
Therefore, with trial balance, one can check whether the debit side is equal to the credit side.
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Answer:
There is a loss on buying from outside supplier ,Peach's offer should not be accepted.
Explanation:
Variable cost is a cost that varies with number of units produced or sold so it is always a relevant cost while making decision.
Fixed cost remains constant irrespective of number of units so it is a irrelevant cost unless avoidable.So in the given case ,fixed cost $70 is irrelevant since same will be incurred whether purchased or manufactured.
Incremental savings
Saving in variable cost 220
saving in fixed cost 25
Total saving 245
less: Incremental cost (270)
Incremental profit /(loss) on buying from outside supplier (25)
Total loss 25*5900= -147500
Therefore, There is a loss on buying from outside supplier ,Peach's offer should not be accepted.
Price and awareness positioning are the right response.
BUYING CRITERIA AND IMPORTANCE ARE NOT THE SAME.
Most individuals will respond "safety" when asked what factor they consider most important when picking an airline. The same person won't say "safety" when you ask what factors they consider when buying a ticket because safety is taken for granted. Security is a given. A buyer's criterion could include a wide range of factors, including cost, delivery time, service accessibility, place of manufacture, etc. Additionally, you need to comprehend the relative importance that each criterion has in the industry. Although the quickness of delivery is given more importance than the low price, it may still be a factor.
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Answer:
6.88%
Explanation:
cost of equity = (next period dividend / by price) + growth rate in dividends.
cost of debt = yield to maturity x (1 - tax rate)
WACC = weight of debt x cost of debt + weight of equity x cost of equity.
cost of equity = ($0.25 / $40) + 0.07
= 0.07625
cost of debt = 0.09 x (1 - 0.4)
=0.054
WACC = ($40Billion x 0.07625) / 60billion + ($20 billion x 0.054) / $60billion
= 0.05083 + 0.018
= 0.0688 or 6.88%
