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bazaltina [42]
3 years ago
11

Rowland & Sons Air Transport Service, Inc., has been in operation for three years. The following transactions occurred in Fe

bruary:
Feb. 1 Paid $200 for rent of hangar space in February.
Feb. 4 Received customer payment of $800 to ship several items to Philadelphia next month.
Feb. 7 Flew cargo from Denver to Dallas; the customer paid in full ($900 cash).
Feb. 10 Incurred and paid $1,200 in pilot wages for flying in February.
Feb. 14 Paid $100 for an advertisement run in the local paper on February 14.
Feb. 18 Flew cargo for two customers from Dallas to Albuquerque for $2,505; one customer paid $795 cash and the other asked to be billed $1,710.
Feb. 25 Purchased on account $1,730 in supplies for future use on the planes.

Required:
Prepare accrual basis journal entries for each transaction.
Business
1 answer:
dedylja [7]3 years ago
3 0

Answer:

Explanation:

Feb. 1

prepaid rent   200

           Cash           200

To record the advance rent payment

Feb. 4

Cash  800

   Advance liability 800

To record received for future supplies

Feb. 7

Cash 900

     Contract liability 900

Payment for the service to be provided

Feb. 10

Advance wages      1200

                Cash              1200

Advance wages payment to pilot

Feb. 14

Adv to Advertise  100

      Cash                       100

Advance payment for advertisement expense.

Feb. 18

Cash  795

Account receiveable 1710

                     Revenue                2510

To record the accrued revenue

Feb. 25

inventory  1730

  Account payable 1730

purchases on credit

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The fiscal 2016 financial statements for Walgreens Boots Alliance, Inc., report net sales of $117,351 million, net operating pro
sertanlavr [38]

Answer:

D. 2.97

Explanation:

The net operating asset turnover ratio is used to measure the efficiency of operating assets and to determine how well these assets are used to generate sales. The assets that are tested here are operating assets that are those assets which are required to run the day-to-day operations of the business. For instance, Property, plant, and equipment, inventory, and cash etc. Investments and unutilized assets do not fall under this category.

Here are are required to calculate the net operating asset turnover ratio, which is calculated as follows:

        Net operating asset turnover = Net sales / Net operating assets

⇒ Net operating asset turnover for 2016 = 117,351 m / 39,502 m = 2.97.

It means that for each dollar invested in the operating assets generates $2.97 of revenue.  

3 0
3 years ago
Read 2 more answers
Your company manufactures and sells tennis rackets and would like to start selling outside the United States. You are in charge
RideAnS [48]

Answer:

Germany

Explanation:

Tennis rackets are in a way, a luxury item that is only often bought by people who enjoy a middle-high, or high income. This is because Tennis as a whole tends to be an expensive sport to practice, since most tennis courts are located in private clubs, need to be rented for the practice, and the rest of the equipment associated with the sport: the footwear, and even the clothing, tends to be expensive as well.

For this reason, I would target a high income country first, and the most straightforward proxy to measure the average income of a nation is its GDP Per Capita, which is the GDP divided by the total population of the country.

According to the CIA Factbook, we have the following GDP Per Capita figures for the countries listed:

Brazil: $15,600

China: $18,200

Germany: $53,209

Italy: $38,200

Japan: $42,900

As a result, I would choose Germany, because it has the highest GDP per capita among the lot.

5 0
3 years ago
What role should government play in a free market economy?
igor_vitrenko [27]
Economists, however, identify six major functions of governments in market economies. Governments provide the legal and social framework, maintain competition, provide public goods and services, redistribute income, correct for externalities, and stabilize the economy.
8 0
3 years ago
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Peterson Company purchased machinery for $960,000 on January 1, 2014. Straight-line depreciation has been recorded based on a $6
Molodets [167]

Answer:

198,000

Explanation:

(960000 - 60,000) / 5 = 180k

Deprecation expense = 180,000 x 5 = 720,000

Deprecation expense from January to April = 4/12 x 180000

720 + 75h

4 0
3 years ago
Suppose that demand for a product is Q = 1200 − 4P and supply is Q = −240 + 2P. Furthermore, suppose that the marginal external
eimsori [14]

Answer: 16 units more than social optimum.

DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96

Explanation:

Q=1200 - 4P and Q=-240 + 2P

In a free market quantity demand =quantity supplied

1200 -4P = -240 +2P

P =240

Sub P

Q* = 240

Socially optimal quantity is

Marginal social benefit (MSC)= marginal social cost(MSC), including external damage =MEC

MPC= marginal private cost =inverse of supply function

MPC = (1/2)*Q + 120

MEC=12

MSC =(MPC +MEC) = (1/2)Q +120 +12

MSC= MPB where MPB is marginal private benefit = inverse of demand functn

MPB = 300 -(1/4)Q

(1/2)Q + 132 =300 - (1/4)Q

Q° = 224

Difference btw Q* & Q° = 16 units more than social optimum.

DWL = dead weight loss = (1/2)*(Q* - Q°) 12 =96

4 0
3 years ago
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