Answer: Option D
Explanation: In simple words, short run refers to the time frame in which all the factors of production are fixed while in the long run all of them are variable.
This happens due to the fact that in the short run if the company goes for changing the level of inputs than the opportunity that were availing in that time period will be gone by then leading to losses as the total time frame is very less in short run.
On the other hand, firms tends to have greater life in the market and keeps developing themselves with the changing forces of market.
Answer and Explanation:
According to the given situation, the income statement and balance sheet as per parts is shown below:-
<u>Accounts Account Title Financial statements </u>
<u>For Part A</u>
Debit Accounts receivable Liability account Balance sheet
Credit Consulting service Income statement
revenue
<u>For Part B</u>
Debit Interest receivable Liability account Balance sheet
Credit Interest revenue Income statement
<u>For Part C</u>
Debit Accounts receivable Assets account Balance sheet
Credit Service Revenue Income statement
<u>For Part D</u>
Debit Janitorial expense Income statement
Credit Janitorial expense Liability account Balance sheet
Payable
<u>For Part E</u>
Debit Rent expenses Income statement
Credit Rent expenses Liability account Balance sheet
payable
Answer:
Total debt ratio will be 44 %
So option (c) will be the correct option
Explanation:
We have given monthly principal and interest on mortgage loan = $635
Monthly Tax and insurance payments = $125
Car lease payment = $350
Now total monthly obligations = $625+$125+$350 = $1100
Gross monthly income = $2500
We have to find the total debt ratio
We know that total debt ratio is given by
Debt ratio
%
So option (c) will be the correct option
Answer:
Explanation:
Date Particulars Amount (Dr) Amount (Cr)
6/30/17 Stock dividends
(60,000 × 20% × 15) 180000
Common stock dividend
distributable 120000
Paid-in Capital in Excess of Par
common stock 60000
7/15/17 No entry
7/31/17 Common stock dividend distributable 120000
Common stock 120000
12/1/17 No entry
12/15/17 No entry
Particulars
1. Common stock = (72000 × 2 × 5) $720,000
2. Number of shares outstanding (60000+12000)×2 144000
3. Par value per share (10/2) $5
4. Paid-in capital in excess of par (150000+60000) $210000
5. Retained earnings (150000+190000-180000) $160000
6. Total stockholders' equity $1090000
Income taxes, payroll taxes, and corporate income taxes