Answer:
The biggest opportunity cost regarding liquidity has to do with the chance that you could miss out on a prime investment opportunity in the future becse you can't get your hands on your money that's tied up in another investments.
Explanation
Answer:
Issued Bond was the liabilities for Transanomics Corp. It receives cash against the issuance of bonds.
Initial Journal Entry by Transanomics Corp.
Dr. Cr.
January 1, 2015
Cash $500,000
Note Payable $500,000
Answer:
Sole proprietorship:
Advantage: is very easy to establish, and gives total control to the owner.
Disadvantage: the sole owner is personally liable in case of bankruptcy.
Partnership:
Advantage: involve two or more people, meaning that capital is likely to be higher. Gives tax benefits to partners.
Disadvantage: partners are also personally liable in case of bankruptcy.
Corporation:
Advantage: a corporation is legally, a separate entity from its stockholders, meaning that stockholders are not personally liable in case of bankruptcy. Corporations can also grow to include a large number of people (stockholders).
Disadvantage: they are more difficult to start than other types of business entities, and are more closely inspected.
Limited Liability Company:
Advantage: they combine the pass-through characteristics of partnerships with the limited liability of corporations.
Disadvantage: they are not necessarily as profitable as corporations.
Answer:
a. Calculate the predetermined overhead rate based on capacity.
- predetermined overhead rate = $26,190 / 279 hours = $93.87 per hour
b. Calculate the manufacturing overhead applied.
- applied manufacturing overhead = $93.87 per hour x 240 hours = $22,528.80 ≈ $22,529
c. Calculate the cost of unused capacity.
- cost of unused capacity = (279 hours - 240 hours) x $93.87 per hour = 39 x $93.87 per hour = $3,660.93 ≈ $3,661
or
- $26,190 - $22,529 = $3,661
