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3 years ago

How do businesses and not-for-profit organizations help create our standard of living?

Business

1 answer:

Phoenix [80]3 years ago

8 0

Answer:

Businesses are the engine room of any economy, businesses are established to make profits, but before a business can make a profit it would have to produce goods or render services that help solve a problem or satisfy a need in society. Also, in carrying out their activities businesses create employment by employing people to work with them, and create demand through the wages paid to their employees which they spend on things, the company buys input for its processes, and both the businesses and its employees pay taxes to the government.

With regards to not-for-profit organizations, they fill the gap where the government and the for-profits organisation cannot operate. They provide assistance to the needy and fight the rights of people, amongst other things.

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Ayayai Company issued $612,000 of 10%, 20-year bonds on January 1, 2017, at 102. Interest is payable semiannually on July 1 and

nata0808 [166]

Answer:

(a)The issuance of the bonds.

January 1, 2017, bonds are issued

Dr Cash 624,260

Cr Bonds payable 612,000

Cr Premium on bonds payable 12,260

(b)The payment of interest and related amortization on July 1, 2017.

July 1, 2017, first coupon payment

Dr Interest expense 30,497

Dr Premium on bonds payable 103

Cr cash 30,600

(c)The accrual of interest and the related amortization on December 31, 2017.

December 31, 2017, accrued interest

Dr Interest expense 30,492

Dr Premium on bonds payable 108

Cr Interest payable 30,600

Explanation:

We must first determine the market price of the bonds:

PV of face value = $612,000 / (1 + 4.88525%)⁴⁰ = $90,818.5814

PV of coupons = $30,600 x 17.43274 (PV annuity factor, 4.88525%, 40 periods) = $533,441.844

market price = $90,818.5814 + $533,441.844 = $624,260

amortization for first coupon payment:

= ($624,260 x 4.88525%) - ($612,000 x 5%) = $30,496.68194 - $30,600 = $103.31806

amortization for second coupon payment:

= ($624,156.6819 x 4.88525%) - ($612,000 x 5%) = $30,491.6143 - $30,600 = $108.3856955

6 0

3 years ago

Is the cost of an off-airport warehouse considered to be a unit-level, batch-level, product-level, or facility-level cost as it

Anna007 [38]

Answer:

a. Facility Level

b. Facility Level

Explanation:

Facility level costs are costs incurred to maintain the company in its entirety. It is not directly ascribable to any specific products or product lines.

In the case of the Airport store, the off-airport warehouse will be used to store all their storable products so this relates to an activity that benefits the entire store.

For the individual bottle of water, this is also a facility level cost as the off-airport warehouse will be used to store a number of bottles and as such is for the benefit of the entire company producing the bottles.

6 0

4 years ago

In the context of the environment, globalization critics argue that Select one: A. manufacturing enterprises are put at a compet

ss7ja [257]

Answer:

C) adhering to labor and environmental regulations significantly increases the costs of manufacturing enterprises.

Explanation:

Many times large corporations move their production facilities to countries with very few or nonexistent environmental regulations. That way they can lower production costs and avoid any type of fine or penalty associated with polluting the environment. The same happens with labor laws, corporations look for countries with cheap labor and the fewest or weakest labor laws. In the US labor is restricted to a certain number of hours per week and a minimum wage, while that operate in some Asian countries force their workers to work 12-16 hours per day and pay them only a few cents per day.

But somehow this scenario seems to work for some poor countries, e.g. China has grown a lot and is currently leaving behind certain practices specially by enforcing a minimum wage on factories. But the leaders of other poor countries apparently are fine with the situation and are not interested in changing it. They probably fear that if they apply strict labor and environmental laws, foreign corporations will leave.

8 0

4 years ago

At the end of a company's first year of operations, 2,000 units of inventory are on hand. Variable costs are $100 per unit and f

Scilla [17]

Answer:

absorption income higher by $60000

Explanation:

given data

inventory on hand = 2,000 units

Variable costs = $100 per unit

fixed manufacturing costs = $30 per unit

to find out

higher net income of what amount

solution

we know that Absorption cost and variable cost are different in their treatment of the fixed manufacturing costing

so we use of absorption cost that carry over in fix cost into ending inventory is here

absorption cost that carry over = fixed manufacturing costs × inventory on hand

absorption cost that carry over = $30 × 2000

absorption cost that carry over = $60000

so that here this amount is use for variable costing and absorption income higher by $60000

4 0

4 years ago

A small business loan is used to pay for the costs associated with starting your own company? True or false

DENIUS [597]

Answer: True

Explanation:

A small business loan is known to be a loan given to an individual in order to start a business. The loan is used for running the day today activities of the business. The borrower that is the business owner reaches an agreement with the lender to repay the loan with interest over a specified period of time.

3 0

3 years ago

Read 2 more answers