Buying goods or services instead of producing or providing them in-house is called:

North Star prepared the following unadjusted trial balance at the end of its second year of operations ending December 31. Accou

Nikolay [14]

Answer:

North Star

Adjusting Journal Entries:

December 31:

Rent Expense $1,280

Prepaid Rent $1,280

To accrue rent for the period.

Depreciation Expense $1,080

Accumulated Depreciation $1,080

To accrue Depreciation charge for the year.

Utilities Expense $9,800

Utilities Payable $9,800

To accrue unpaid utilities.

Income Tax Expense $470

Income Tax Payable $470

To accrue income tax liability.

Explanation:

Adjusting entries are journal entries that are made at the end of an accounting period to ensure that all expenses and incomes pertaining to the period are recognized in accordance with the accrual concept and the matching principle. These accounting concepts require that all expenses incurred whether paid for or not and income whether received or not, which relate to the period, are matched respectively.

7 0

2 years ago

You can invest in an account that pays simple interest or an account that pays compound interest. In either case, you plan to in

trasher [3.6K]

Answer:

You will receive $201.38 more interest if the investment is made with a compound interest rate rather than a simple interest rate.

Explanation:

Simple interest rate

We can calculate how much interests you'd obtain if you deposited the $2,600 in a simple interest rate account.

We start using the following formula for calculating the simple interests:

$I=P * r$

Where:

I are the interests per year,

P is the amount being invested,

r is the interest rate.

Replacing in the formula with the given values we have:

$I=2600*0.05=130$

We then proceed to multiply this result by the given number of years, which is 8. We get $130*8=1040$ .

Finishing with the simple interest rate, if we wanted to know how much is the investment worth at the end of a 8 year period, we must merely add the principal (the $2,600) to the total interests after the end of the period ($1040). So $2600+1040= 3640$ .

We'll use these results later.

Compound interest rate

The formula for compound interests is the following:

$I=P(1+r)^n$

Where:

I is the value of the investment after n years,

P is the principal amount being invested,

r is the interest rate,

n are the number of years the investment is compounded.

Replacing in the formula with the given values we have:

$I=2600*(1+0.05)^8=3841.38$

After the 8 year period, the investor will have $3841.38 in it's compounded interest account.

Comparing these results

We can simply substract the value of both investments at the end of a 8 year period, to determine how much more interest does the compound interest rate account give in relation to a simple interest rate account.

The values we've gotten were:

$3,640 for the simple interest rate account, and

$3,841.38 for the compounded interest rate account.

$3841.38-3640=201.38$ . Therefore the answer is: the account that pays compounded interests will pay $201.38 more to this invididual, compared to an account that pays simple interest.

8 0

3 years ago

Suppose that smoking creates a negative externality. If the government imposes a per-cigarette tax equal to the per-cigarette ex

lapo4ka [179]

The after-tax equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. The correct option is C.

<h3>What is the externality of smoking?</h3>

The externalities of smoking refers to the costs imposed by smoking on people other than smokers themselves, in particular through the health effects of passive smoking and the effects of smoking on health care costs and productivity.

Therefore, The after-tax equilibrium quantity of cigarettes smoked will equal the socially optimal quantity of cigarettes smoked. The correct option is C.

Learn more about externality of smoking:

brainly.com/question/17093736

#SPJ1

4 0

1 year ago

Write an essay on 'teachers and students'

faust18 [17]

Answer:

A teacher is a beautiful gift given by god because god is a creator of the whole world and a teacher is a creator of a whole nation. A teacher is such an important creature in the life of a student, who through his knowledge, patience and love gives a strong shape to student's whole life.

8 0

2 years ago

"when the number of units produced exceeds the number of units sold, net income under absorption costing will be:"

r-ruslan [8.4K]

Answer:

The answer is that the net income under absorption costing would be higher than the net income under variable costing.

Explanation:

Absorption costing and variable costing are terms used in accounting contexts. Absorption costing, also known as full costing, incurs overhead costs when the product is sold; not before it. Variable costing, also referred to as direct costing, would include overhead costs during the period the costs occurred. In this condition, net income would be higher using absorption since overhead costs would not be included until the product is sold.

5 0

2 years ago