Answer: Supply of cocoa will fall; Demand rises; Price increases.
Explanation:
A drought is when there is little or no rainfall in a particular area. When countries that are producing cocoa experience a drought, this will lead to a reduction in the supply of cocoa as there will be lesser cocoa available for farmers to supply.
Then, due to the new study which is released demonstrating the health benefits of cocoa, this will lead to an increase in the demand for cocoa. The demand will rise and since there's increase in demand and reduction in supply, the price will rise.
If a computer virus spreads rapidly through a company's computer system and threatens to shut down all internal and external lines of communication, the company will likely put a contingency <span>plan into effect.
</span>A contingency <span>plan is part of the risk management that deals with risks that</span> have catastrophic consequences. In this case the computer virus is a risk with catastrophic consequences: shut down communication.
Answer:
a) Received a $795 deposit from a customer who wanted her piano rebuilt in February.
Account Debit Credit
Cash $795
Unearned Revenue $795
b) Rented a part of the building to a bicycle repair shop: $545 rent received for January.
Account Debit Credit
Cash $545
Rent Revenue $545
c) Delivered five rebuilt pianos to customers who paid $14,425 in cash.
Account Debit Credit
Cash $14,425
Service Revenue $14,425
d) Delivered two rebuilt pianos to customers for $7,600 charged on account.
Account Debit Credit
Accounts Receivable $7,600
Service Revenue $7,600
e) Received $6,400 from customers as payment on their accounts.
Account Debit Credit
Cash $6,400
Accounts Receivable $6,400
f) Received an electric and gas utility bill for $750 for January services to be paid in February.
Account Debit Credit
Utilities Expense $750
Utilities Payable $750
g) Ordered $1,140 in supplies.
Account Debit Credit
Supplies Expense $1,140
Supplies Payable $1,140
h) Paid $3,400 on account in January.
Account Debit Credit
Cash $3,400
Accounts Payable $3,400
i) Paid $16,900 in wages to employees in January for work done this month.
Account Debit Credit
Cash $16,900
Wage Expense $16,900
j) Received and paid cash for the supplies in (g).
Account Debit Credit
Cash $1,140
Supplies Payable $1,140
Present value is $21094.13
<u>Explanation:</u>
The present value is calculated in the table below:
<u>Year Investment ($) PV Factor Present Value ($)
</u>
1 2138 0.917431 1961.47
2 2138 0.841680 1799.51
3 2138 0.772183 1650.93
4 11545 0.708425 8178.77
5 11545 0.649931 7503.45
Total 21094.13
Present value is $21094.13
<u>Where: </u>PV = present vale
The present value factor is calculated by taking or considering the 9 percent of discount rate.
<u>NOTE: </u>the present value in dollars is calculated by multiplying the investment with the present value factor
Answer:
The amount of the sales discount is $60.
Explanation:
The with payment terms of 2/10, n/30 imply that Drafke will enjoy 2% discount if he pays within 10 days; but after the first 10 days, the full invoice amount payable will be due for payment in 30 days without the 2% discount.
From the question, we have:
Total credit sales = $5,000
Sales return = $2,000
Net credit sales = Total credit sales - Sales return = $5,000 - $2,000 = $3,000
If Drafke pays his account in full within ten days of the invoice date, he will enjoy the 2% discount rate. Therefore, we have:
Discount amount = Net credit sales * Discount rate = $3,000 * 2% = $60
Therefore, the amount of the sales discount is $60.
