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astraxan [27]
3 years ago
6

Linda sells 100 bottles of homemade ketchup for $10 each. The cost of the ingredients, the bottles, and the labels was $700. In

addition, it took her 20 hours to make the ketchup and to do so she took time off from a job that paid her $20 per hour. Linda's accounting profit is _____________ while her economic profit is ______________.a. $700;$400b. $300;$100c. $300 negative $100d. $1000 negative $1100
Business
1 answer:
Leto [7]3 years ago
5 0

Answer: Option C : $300; Negative $100

Linda's accounting profit = $300

Economic Profit= -$100

Explanation:

Total money generated = cost price x number of units = $100 x 10 = $1000

Profit = Total revenue generated - Cost of production = $1000 - $700 = $300

Linda's accounting profit = $300

Economic Profit = $300 - ($20 x 20hours)

Economic Profit= $300 - $400 = -$100

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Answer and Explanation:

The Journal entries are shown below:-

a. Accounts receivable Dr, $2,000  

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(Being service revenue is recorded)

b. Wages expenses Dr, $1,000  

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(Being wage expenses is recorded)

c. Interest expenses Dr, $400  

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    To Accounts payable $500

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3 0
3 years ago
Name and define the early leadership theories. which theory is more acceptable to you​
Vsevolod [243]
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7 0
3 years ago
Malden corporation has assets of $1,000,000 and liabilities of $400,000. What is its stockholder equity balance?
Mumz [18]

$600,00 is the Stakeholder Equity Balance.

Stakeholder Equity Balance  = Total Assets - Total Liabilities

                                                 = $1,000,000 - $400,000

                                                 = $600,000

<h3>What is Stakeholder Equity?</h3>

The balance sheet account for stockholders' equity, sometimes referred to as shareholders equity is made up of share capital plus retained earnings. It also symbolizes the difference between the value of assets and obligations. Assets = Liabilities + Stockholders Equity is the original accounting formula, however, it can also be written as

Stockholders Equity = Assets - Liabilities.

Components of the stakeholder Equity are:

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Therefore, $600,000 is the stakeholder equity balance.

For more information on Stakeholder Equity balance, refer to the given link:

brainly.com/question/24601429

#SPJ4

5 0
1 year ago
LO 4.7In a job order cost system, overhead applied is debited to which account?
BaLLatris [955]

Answer:

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3 years ago
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