Answer:
S/N ACCOUNT DEBIT CREDIT
1 Equipment $22,000
Cash $22,000
Being payment for new component expected to increase the
equipment’s productivity by 10% a year
2. Equipment Repairs expenses $6,250
Cash $6,250
Being payment for equipment repair
3. Equipment $14,870
Cash $14,870
Being payment for equipment repair to prolong the useful life
the asset
Explanation:
The initial cost incurred in acquiring an asset is debited to asset account, subsequently every other cost spent on the assets are either expenses against the earning of that period or expensed over many years over the useful life of the asset.
Capitalization is the recognition of an expense as an asset in the balance sheet rather than expenses in the income statement.
The payment of $22,000 paid for the equipment productivity must be capitalized, that is added to the cost of the asset because it is a cost that is expected to increase the equipment’s productivity by 10% a year.
The $6,250 paid for normal repair is a revenue items which is to be expensed against the earning of that period.
The $14,870 paid for repairs which will increase the useful life of the equipment from four to five years is a capital expenditure which should capitalized, that is added to the cost of the asset.
Answer:
$371,700
Explanation:
The computation of the cost of goods sold is shown below:
Cost of goods manufactured = Direct materials used + Direct labor cost + Manufacturing overhead cost + beginning work in process inventory - ending work in process inventory
where,
Manufacturing overhead cost is
= Depreciation on plant + Factory supplies used + Property tax on plant
= $61,000 + $29,300 + $21,800
= $112,100
The cost of goods manufactured is
= $126,400 + $113,500 + $112,100 + $14,600 - $16,700
= $349,900
Now the cost of goods sold is
= Beginning finished goods + Cost of goods manufactured - ending finished goods
= $70,900 + $349,900 - $49,100
= $371,700
The correct answer is: "I would recommend her not to increase the price, because with an elastic demand function this will cause a great decrease in the quantity demanded by consumers".
The demand function represents the quantity of a certain good or service that consumers are willing to purchase in the market at different price levels. The law of demand states that there is an inverse relationship between price and quantity demanded (ceteris paribus, hence, given that the rest remains equal). <u>Therefore, when the price charged decreases, the amount that consumers are willing to purchase increases. </u>
In turn, the elasticity of the demand function measures the sensitiveness of the quantity demanded by consumers when there is a certain price change. If the demand function is elastic it means that a price variation would generate an even larger variation (in the inverse direction of course!) in the quantity demanded. <u>This is the case of the lemonade stand therefore the girl should not increase prices because this will not help her to reach her objective quicke</u>r, as she would loss a greater proportion of units sold than the size of the price increase that would have allowed her to earn more per unit.
Banks are for-profit, meaning they are either privately owned or publicly traded, while credit unions are nonprofit institutions. ... This means members generally get lower rates on loans, pay fewer (and lower) fees and earn higher APYs on savings products than bank customers.
hope this helped
Answer:
circulation audit
Explanation:
A circulation audit is a term that describes a distinct form of audit which validates publisher's real printing and distribution, and at the same time, verifies publisher's books, records, and documents relating to circulation.
In other words, it is considered as a standardized, authoritative statement of a publication's printing, distribution, and readership.
Hence, CIRCULATION AUDIT refers to a thorough analysis of the circulation procedures, outlets of distribution, readers, and other factors by companies such as ABC
