It should be Option B since entrepreneurs main aim is usually profit making.
it's half a year out of 5, so 1/10 of the useful lifetime of the van
$61,000 - $4,900 is $56.1000
one tenth of that will be what we are looking for, so option b. should be just right to fit here
Answer:
Accounting rate of return is 10%
Explanation:
Given data
new machine = $48,000
sales = $16,000
time = 10 year
depreciation = $4,000 / year
factory overhead = $8,000 + depreciation $4,000
net income = $2400
tax rate = 40%
to find out
accounting rate of return for the machine
solution
we know that
Accounting rate of return = after tax net income / average investment
so here we know net income after tax = $2400
so we find investment first
Average investment = (Initial investment) / 2
Average investment = 48000 / 2 = $24000
so
Accounting rate of return = after tax net income / average investment
Accounting rate of return = 2400 / 24000 = 0.1 = 10%
Accounting rate of return is 10%
This question has a three part answer, with each part broken out below:
A. To record the purchase there is a debit to Purchases and a credit to Accounts Payable, each for $75,000.
B. To record the return there is a debit to Accounts Payable and a credit to Purchases Returns and Allowances, each for $9,000.
C. The amount of the payment is $75,000 - 9,000, which is $64,000. They are paying during the discount period, so will only be paying 98% of this amount, which is $62,720.
The entry is a debit to Accounts Payable for $64,000, a debit to Purchases Discounts for $1,280, and a credit to Cash for $62,720.
Answer:
Explanation:
The journal entry is shown below:
On December 31,2016
Salary Expense A/c Dr $3,960 ($1,320 × 3 days )
To Salary Payable A/c $3,960
(Being adjusted salary is recorded)
On January 2
Salary Expense A/c Dr $2,640 ($1,320 × 2 days )
Salary Payable A/c $3,960 ($1,320 × 3 days)
To Cash A/c $6,600
(Being cash is paid)
