On basis of straight-line depreciation method,
Yearly depreciation expense = [Cost of investment - Salvage value] / life
In the current case, salvage vale is assumed to be $0 and the life is 7 years.
Total investment = $4 m + $ (15,000/1,000,000) m + $3 m = $7.015 m
Therefore,
Yearly depreciation expense = 7.015/7 ≈ $1.002 m
Answer:
Entries are posted
Explanation:
We will record assets and expenses on the debit as they increase during the year and will record liabilities and capital on the credit side as they increase during the year or vice versa.
January 1 (Cash fund being recorded in petty cash)
Account Debit Credit
Petty Cash $140
Cash $140
January 8
Postage $46
transportation-in $14
delivery expenses, $16
miscellaneous expenses, $35
Cash $111
January 8 ( petty cash funds being increased )
Pettcash $50
Cash $50
Answer:
852 units
Explanation:
The break-even point is number of unit produced whereas the cost of in house produced equal to selling price of similar products
Selling price of similar products = fixed cost per unit + variable cost per unit
$5.75 = $3,750/ number of unit produced + $1.35
number of unit produced = $3,750/($5.75-$1.35) = 852 units
Answer:
The estimated bad debt expense for the year amounts to $9,400
Explanation:
The estimated bad debt expense for the year is computed as:
As the percentage of credit sales method is used for estimating the bad debt expense. Therefore, it is computed as:
Bad debt expense = Net Credit Sales × Estimate Percent
where
Net credit sales amounts to $188,000
Estimate percent is 5%
So, putting the values above:
Bad debt expense = $188,000 × 5%
Bad debt expense = $9,400
Therefore, the bad debt expense amounts to $9,400
The answer is C. If the future price of a good is expected to rise, that means consumers would want to buy more NOW before the price increases. This causes the immediate demand to rise.