Analyzing Unearned Revenue Disclosures

Receive cash from customers, $15,000. Pay cash for employee salaries, $9,000. Pay cash for rent, $3,000. Receive cash from sale

Alexeev081 [22]

Answer:

Part 1

Cash Account

$

Debit :

Receive cash from customers 15,000

Sale of Equipment 8,000

Bank Loan 4,000

Totals 27,000

Credit :

Pay cash for employee salaries 9,000

Rent 3,000

Utilities 1,000

Advertising 7,000

Ending Balance 7,000

Totals 27,000

Part 2

Ending Balance is $7,000

Explanation:

Only Cash related purchases and receipts are posted to Cash Account. Thus ignore non-cash related transactions.

The Cash Account : Receipts are posted at the Debit side of this Account and Payments at the Credit Side.

The Balance : After determining the Totals of the Debit and Credit, the shortfall of any of that side represents the Balance.

7 0

3 years ago

For each of the following pairs of goods, state whether the cross-price elasticity is likely positive, negative, or zero. Explai

ioda

Answer:

a. Hulu and Netflix.

Positive. They are close substitutes

Hulu and Netflix both provides television shows, so a consumer can choose between them. They are good substitutes

b. Tortilla chips and salsa.

Negative. They are complements.

Tortilla chips are consumed with salsa sauce. So a demand for salsa increases so does demand for tortilla chips.

c. Movie and popcorn.

Negative. They are complements.

The more people watch movies the more they will want to buy popcorn.

d. Running shoes and high heels

Close to zero. While they are substitutes they are not close substitutes.

Each has its own time of use. Consumers by them independently.

Explanation:

Cross price elasticity is a measure of the quantity demanded of one good to changes in price of another good.

So when a good's demand reduces with increase in price of another it is negative cross price elasticity. This is common with complements.

When quantity demanded of a good increases with increase in price of another, they are substitutes.

However when there is little effect on the quantity demanded with increase in price of the other good they are unrelated

4 0

3 years ago

You are offered an annuity that will pay you $200,000 per year, at the end of the year, for 25 years. The first payment will arr

maksim [4K]

Answer:

I am willing to pay $1,202,235.89 for this annuity.

Explanation:

Calculate Present value of future cash flow to calculate the price for the annuity should be paid now.

Monthly receipt = PMT = $200,000

Number of years = n = 25 years

Rate of return = r = 16.25% = 0.1625

PV = PMT x [ 1- ( 1 + r )^-n )] / r

PV = $200,000 x [ 1 - ( 1 + 0.1625 )^-25 ) ] / 0.1625

PV = $200,000 x [ 1 - ( 1.1625 )^-25 )] / 0.1625

PV = $1,202,235.89

7 0

3 years ago

Which channel function is most visible to the customer

tatyana61 [14]

Answer:

retailers

Explanation:

In order to get our goods to the market, we have to use a marketing channel. Rarely does a company create an isolated marketing channel in order to reach the customers. Instead, companies reach out to wholesalers, distributors and retailers.

Retailers are closely related to the customer, as the customer always goes to the retailer first, in order to find a particular good.

On the other hand, wholesalers and distributors are the precursor in the goods' road to retailers, as the retailers reach out to these two channels to get the goods'. Wholesalers and distributors are never visible to the end user (consumer).

5 0

2 years ago

A regional airline owns 10 aircraft and employs 20 pilots. The airline makes an average of three trips per day with each of its

marishachu [46]

Answer:

a short-run decision because the number of aircraft is held constant while the labor input is changed.

Explanation:

In the short run, at least one variable or factor of production is fixed and cannot be changed. In the long run, all factors of production can be changed.

In this case, the number of aircraft is the fixed factor of production (capital) while labor is variable because more pilots can be hired. Regulation state that pilots must rest a certain amount of time in between flights, so if you want to increase the amount of flights you need to hire more pilots and cabin crews since regulations do not require planes to rest.

6 0

2 years ago