Sabrina Company recorded an adjusting entry for salaries owed to employees at the end of the year. As a result of this entry, Sabrina Company's equity decreases and liabilities increase.
<h3>What is equity?</h3>
Equity in finance refers to ownership of assets that may be accompanied with debts or other liabilities. Liabilities are subtracted from asset value to calculate equity for accounting reasons.
<h3>What is liabilities?</h3>
A liability is an obligation that a person or business has, typically financial in nature. Over time, liabilities are resolved by the transmission of economic advantages like cash, products, or services.
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Answer:
At the end of period the allowance for uncollectible debts will be: 15000-3000 = $ 12000 because 3000 account receivable is written off.
Explanation:
(Opening) Allowance for uncollectible accounts = 3000 (Dr)
During the year company estimates = $ 15000
Entry : Dr Bad debts expense 15000
Cr Allowance for bad debts 15000
( To record uncollectible accounts)
The Labor cost = Units Produced * Direct Labor hours per Unit * Direct Labor rate per Hour is <u>$ 1,200,000.</u>
= 15,000 * 4 * $20
= $ 1,200,000
Answer: $ 1,200,000
Production is the process of combining various tangible and intangible inputs (plans, knowledge) to produce things for consumption (outputs). It is the act of creating output, goods, or services that are of value and contribute to an individual's benefit.
An example of production is the manufacture of automobiles. A car is made up of parts. For example, rubber tires are added to a metal body to create a seat before the car leaves the assembly line. “Production is the organized activity of transforming resources into final products in the form of goods and services. The goal of production is to meet the demand for such transformed resources.
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Answer:
Indenture
Deferred call provision
Explanation:
Indenture is defined as the contract that describes the terms of a borrowing arrangement between a firm that sells a bond issue and the investors who purchase the bonds.
A call provision is defined as the right that the issuer of a security has to call or redeem the security at certain times and under specific conditions.
The call provision in which the issuer is prevented from calling a portion or the entire issue for several years during the early years of the bond issue is called deferred call provision.
Answer:
She should stay open, because the revenue of from dog grooming ($30 per dog), is still high enough to cover her variable cost of $20 per dog, even though she is operating at a loss.
Explanation:
Profit = Revenue - Total costs
Total costs = Fixed costs + variable costs
Profit = $30 - $35 = -$5 per dog
This shows she is operating at a loss of $5 per dog.
If a company does not make enough revenue to cover its total costs, then it is operating at a loss.
However such a company must consider its variable cost before deciding whether to shut down.
A company should only shut down if it is unable to make enough revenue to cover its variable cost.
If a company is operating at a loss but can at least cover its variable cost, then it should stay open at least in the short run.
