Question Completion:
Since the Trial Balance was not provided, we assume that the Supplies account had a beginning balance of $120 for the purpose of this exercise. Any other figure can be substituted for this balance.
Answer:
Adjusted Trial Balance as of December 31: Income Statement Balance
Debit Credit Expense Revenue Sheet
a. Depreciation expense $18 $18
Accumulated Depreciation $18 -$18 assets
b. Accrued Salaries $21 $21
Salaries Payable $21 $21 liabilities
c. Unearned Revenue $27 -$27 Liab.
Earned Revenue $27 $27
d. Supplies Expense $30 $30
Supplies $30 -$30 assets
e. Insurance Expense $30 $30
Prepaid Insurance $30 -$30 assets
Explanation:
Company B with the adjusting events above, usually recorded through the adjusting journal, can also be adjusted directly in the trial balance with their effects on the financial statements clearly demonstrated. Expenses have debit accounts while liabilities have credit accounts. Expenses reduce the net income, revenues increase the net income, while liabilities and assets can be reduced or increased as the case may be.
Answer:
$122,800
Explanation:
For computing the after-tax cash flow, first we have to determine the loss on sale a fixed asset which is shown below:
Loss on sale of the fixed asset would be
= Selling Price - Book Value
= $115,000 - $135,000
= -$20,000
And the tax rate is 39%
So the tax credit would be
= $20,000 × 39%
= $7,800
Now the after-tax cash flow of this sale would be
= Sale price + tax credit
= $115,000 + $7,800
= $122,800
To determine the breakeven point in units, divide the fixed
costs by the contribution margin ratio.
To add, the contribution margin ratio is the
percentage ofcontribution margin to net sales.
Said differently, it is the difference between a company's sales and variable
expenses, expressed as a percentage.
Answer:
B. Contributory negligence
Explanation:
Contributory negligence may be defined as a defense to the tort claim that is based on the negligence of the plaintiff in some law jurisdiction. And if contributory negligence is available defense completely bars the person who files the suit from any recovery if the plaintiff contributes to their own injury and harm from any negligence.
In the context, a person buys a lawn mover form a store. The lawn mover contains a instruction book where it was written that the lawn mover should not be moved over any stones or gravels or areas mixed with grass and stones.
The consumer though remembers the warning but he moves the lawn mover over land filled with loose stones and rocks. Unfortunately, a rock flies and hits him on his face resulting in serious damage of his face. And so the consumer sues the manufacturer for selling a defective lawn mover.
But the court will dis-miss the case as it was a case of contributory negligence of the consumer as the manufacturer warned the consumer with a written instruction not to use the product over areas covered with stones and rocks. Thus the defense that will give the manufacturer the best chance of having dismissing the case by the court is the Contributory negligence of the consumer.
